Stem : AlsoEnergy Acquisition

Leader in AI-Driven Energy Solutions

January 2022

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Cautionary Statement Regarding Forward-Looking Statements

This presentation, as well as other statements we make, contains "forward-looking statements" within the meaning of the federal securities laws, which include any statements that are not historical

facts. Such statements often contain words such as "expect," "may," "can," "believe," "predict," "plan," "potential," "projected," "projections," "forecast," "estimate," "intend," "anticipate," "ambition," "goal," "target," "think," "should," "could," "would," "will," "hope," "see," "likely," and other similar words. Forward-looking statements address matters that are, to varying degrees, uncertain, such as the expected timetable for completing the proposed acquisition of AlsoEnergy; anticipated benefits and synergies of the proposed transaction; future opportunities for the combined company and products; the rate of adoption of electric vehicle ("EV") charging, and the development of EV charging infrastructure; the integration and optimization of energy resources; the business strategies of Stem and those of its customers; the global commitment to decarbonization; our ability to secure new customers, or to retain current customers; our ability to further penetrate existing markets or expand into new markets; our ability to mitigate supply chain risk and otherwise to manage our supply chains and distribution channels; the continuing severity, magnitude and duration of the COVID-19 pandemic and the future results of operations. Such forward-looking statements are subject to risks, uncertainties, and other factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements. These forward-looking statements are based upon assumptions and estimates that, while considered reasonable by Stem and its management, depend upon inherently uncertain factors and risks that may cause actual results to differ materially from current expectations, including when the AlsoEnergy transaction will close; the risk that the contemplated transaction does not occur; negative effects from the pendency of the transaction; failure to retain key management and employees of AlsoEnergy; issues or delays in the successful integration of AlsoEnergy's operations, including incurring or experiencing unanticipated costs or delays or difficulties, which could result in additional demands on our resources, systems, procedures and controls, disruption of our ongoing business and diversion of management's attention from other business concerns; difficulties or delays in the successful integration or transition of the operations, systems and personnel of AlsoEnergy; the failure or inability to implement growth strategies in a timely manner; unfavorable reactions to the AlsoEnergy transaction from customers, competitors, suppliers or employees; our inability to achieve our financial and performance targets and other forecasts and expectations; our inability to realize anticipated revenues from our long-term contracts; our inability to grow and manage profitably; risks relating to the development and performance of our energy storage systems and software-enabled services; our inability to seamlessly integrate and optimize energy resources; the risk that the global commitment to decarbonization may not materialize as we predict, or even if it does, that we might not be able to benefit therefrom; our inability to win new contracts with customers that we are pursuing, or to retain or upgrade current customers, further penetrate existing markets or expand into new markets; our inability to secure sufficient inventory from our suppliers to meet customer demand, and provide us with contracted quantities of equipment; supply chain failures or interruptions; manufacturing or delivery delays; disruptions in sales, production, service or other business activities; our inability to attract and retain qualified personnel; the risk that our business, financial condition and results of operations may be adversely affected by other political, economic, business and competitive factors; and other risks and uncertainties set forth in the section entitled "Risk Factors" in the registration statement on Form S-1 filed with the SEC on July 19, 2021, and our most recent Forms 10-K,10-Q and 8-K filed with or furnished to the SEC. If one or more of these or other risks or uncertainties materialize (or the consequences of any such development changes), or should our underlying assumptions prove incorrect, actual outcomes may vary materially from those reflected in our forward-looking statements. Statements in this presentation are made as of the date of this presentation, and Stem disclaims any intention or obligation to update publicly or revise such statements, whether as a result of new information, future events or otherwise.

Non-GAAP measures

This presentation includes financial measures that are calculated and presented on the basis of methodologies other than in accordance with generally accepted accounting principles in the United States of America ("GAAP"). Such non-GAAP financial measures are in addition to, and should not be considered superior to, or a substitute for, financial statements prepared in accordance with GAAP. Non-GAAP financial measures should not be considered in isolation and are subject to significant inherent limitations. The non-GAAP measures presented herein may not be comparable to similar non-GAAP measures presented by other companies. Stem believes these non-GAAP measures of financial results provide useful information to management and investors regarding certain financial and business trends relating to Stem's financial condition and results of operations. Stem believes that the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends and in comparing Stem's financial measures with other similar companies, many of which present similar non-GAAP financial measures to investors. Reconciliation of these non-GAAP measures to their most directly comparable GAAP financial measures are included in the appendix to this presentation.

Industry and Market Data

In this presentation, Stem relies on and refers to certain information and statistics obtained from third-party sources which it believes to be reliable, including reports by market research firms. Stem has not independently verified the accuracy or completeness of any such third-party information.

This presentation may contain trademarks, service marks, trade names and copyrights of other companies, which are the property of their respective owners.

© 2022 Stem, Inc.

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Investment Highlights

Market Leader in AI-Driven Energy Solutions

Large Addressable Market	Market Leader with Best
+ Strong Macro Tailwinds	in Class Technology

Capital to Focus on	Highly Visible
Expansion Opportunities	Growth

• ~$1.2 trillion in new revenue opportunities for integrated storage expected to be deployed by 2050(1)
• Battery storage capacity expected to increase by 35x by 2030(2)
• Compelling value proposition to customers

• 950+ systems operating or contracted with Stem's
  Athena® software(3)
• First mover AI-driven Athena® platform that operates with 35+ utilities, 6 grid operators and over 22 MM runtime hours (2,500 years)

• ~$600 MM(3) of cash on hand
• Well positioned for continued investment in the Athena platform, including software- focused tech acquisitions

• Recurring software revenue streams under 10- 20 year contracts provide strong financial position to accelerate growth
• Revenues projected to grow at ~50% CAGR from 2021 to 2026

(1) Bloomberg New Energy Finance. (2) Wood Mackenzie, cumulative capacity growth from 2020 to 2030. (3) as of 30-Sep-2021

© 2022 Stem, Inc.

3

Introduction to Presenters

John Carrington	Bill Bush
CEO and Director	Chief Financial Officer

Prakesh Patel	Ted Durbin
Senior Director,
Chief Strategy Officer
Investor Relations

Seasoned Leadership Team

• Seasoned leadership team with 150+ years of experience in software and energy
• Leadership experience at technology, energy, and industrial companies

Leading Strategic Investors

© 2022 Stem, Inc.

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Strong Third Quarter Results

Key Financial Metrics

$ mllion unless otherwise noted	Three months ended
	September 30,
	2021	2020	% chg
Revenue	$39.8	$9.2	333%
GAAP Gross Margin	$3.1	($1.7)	282%
GAAP Gross Margin %	8%	-18%	142%
Non-GAAP Gross Margin	$5.8	$0.7	729%
Non-GAAP Gross Margin %	15%	8%	92%
Net Loss	$115.6	($18.8)	715%
Adjusted EBITDA	($7.2)	($7.9)	9%
Key Operating metrics
12 Month Pipeline ($ billions)*	2.4	**	0%
Bookings	$103.7	$36.6	183%
Contracted Backlog*	$311.6	**	0%
Contracted AUM (GWh)*	1.4	1.0	42%

* at period end ** not available

Highlights

Results

• Revenue up 333% YoY, at the high end of guidance, driven by FTM hardware sales and services revenue
• Gross margin increased from higher mix of software services revenue, and higher-margin hardware
• Adjusted EBITDA improved on higher margins, partially offset by higher opex
• AUM up 42% YoY on additional contracts
• Pipeline up 41% sequentially, and contracted backlog up 25% sequentially
• Announced new Athena functionality, Chile expansion, and Penske fleet charging project

Source: Stem.	© 2022 Stem, Inc.	5
See appendix for a reconciliation of Non-GAAP measures to most directly comparable GAAP measures