Ballard Power Systems Inc. · TSX:BLDP
Ballard Power Systems — Q4 2015 Earnings Presentation
18 slides from Ballard Power Systems's earnings presentation, Feb 25, 2016
Slide 1: Q4 & Full Year 2015 Results Conference Call
Page 1 Q4 & Full Year 2015 Results Conference February 25, 2016 Call
Slide 2: Conference Call Participants
Page 2 Conference Call Participants Randy MacEwen President & CEO Tony Guglielmin CFO
Slide 3: Forward-Looking Statements
Page 3 Forward‐Looking Statements This presentation contains forward‐looking statements, including: estimated revenue; cash operating costs; gross margins; product cost reductions; adjusted EBITDA; liquidity; market size and growth projections; customer value propositions; and expected sales and pro
Slide 4: 2015 Overview
Page 4 2015 Overview • Full year 2015 results broadly in line with expectations, with the exception of Telecom Backup Power • In 2015 we redefined customer‐centric business strategy, with introduction of two growth platforms o Power Products Heavy Duty Motive Material Handling Portable Power
Slide 5: 2015 – An Historic Year For Heavy Duty Motive
Page 5 2015 – An Historic Year For Heavy Duty Motive • Continued building on 25 years of experience o Fuel cell engine deployments in 20 countries o Powering buses over 8M km’s in revenue service, carrying more than 10M passengers • Growing interest in China, Europe, U.S. & Japan • Product reliabili
Slide 6: Heavy Duty Motive in China
Page 6 Heavy Duty Motive in China • In past year signed more than $48M in committed orders, including: o $17M with Synergy to support deployment of 300 buses in Foshan & Yunfu o $10M with Synergy & Zehe to power 33 buses o $9M for two programs with CRRC for development of fuel cell tram engines o $1
Slide 7: Heavy Duty Motive in Europe & U.S.
Page 7 Heavy Duty Motive in Europe & U.S. EUROPE • In 2015 5 major OEMs & 30 transit operators committed to 500‐to‐1,000 fuel cell buses in 2017‐20 timeframe • Van Hool won EU funding for 21 fuel cell buses in 2015 under 3Emotion program – Ballard to provide modules • Horizon 2020 program call for a
Slide 8: Material Handling
Page 8 Material Handling • Fuel cell stack shipments increased slightly in 2015, though revenue down 9% due to change in product mix o Currently more than 10,000 forklifts in the field, most powered by Ballard fuel cell stacks • Growth in Material Handling market continues o Plug Power experienced r
Slide 9: Portable Power
Page 9 Portable Power • Added Portable Power to Power Products platform through October 2015 acquisition of Protonex o Q4 $3.4M contribution to top line o Late‐December received $2.8M purchase order for SPM‐622 power manager kits for U.S. Army Rangers • Expect continued progress in 2016 o Full year
Slide 10: Telecom Backup Power
Page 10 Telecom Backup Power • Market has proven very challenging to penetrate for all fuel cell industry players o Disruptive technology in the form of capital equipment, based on a lifecycle value proposition is difficult to sell into the consolidating telecom industry • In 2015 Ballard initiated
Slide 11: Technology Solutions
Page 11 Technology Solutions • In 2015 closed $80M landmark transaction with Volkswagen Group o Strong year in terms of performance – exceeded many targeted milestones • Development of proprietary technology has positioned Ballard strongly with the automotive industry • Fuel cell automotive industry
Slide 12: 2016 Outlook – Revenue & Gross Margin
Page 12 2016 Outlook – Revenue & Gross Margin • Revenue growth underpinned by record order book o Current $58M order book to be delivered in 2016 – exceeds 2015 revenue o Significant upside – for example, only includes Q1 forecast of Material Handling revenue o Qualified sales pipeline also stronges
Slide 13: 2016 Outlook – Operating Costs
Page 13 2016 Outlook – Operating Costs • At a minimum Telecom Backup Power cost base will be reshaped to better align with revenue trajectory • With leaner business model, steps have been taken to rationalize & consolidate executive team and initiate management renewal o 3 executives departing by Ma
Slide 14: Q4 & Full Year 2015 Revenue and Gross Margin
Page 14 Q4 & Full Year 2015 Revenue and Gross Margin Revenue (millions) Gross Margin (%) $55.8* $55.8* • Q4 2015 Revenue of $20.0M, +28% • Q4 2015 Gross Margin of 19%, +38‐points o Power Products +37%, Technology Solutions +12% • Full Year 2015 Gross Margin of 18%, +3‐points • Full Year 2015 Revenue
Slide 15: Q4 & Full Year 2015 Cash Operating Cost Base and Adjusted EBITDA
Page 15 Q4 & Full Year 2015 Cash Operating Cost Base and Adjusted EBITDA Cash Operating Cost Base* (millions) Adjusted EBITDA* (millions) * Measures operating expenses excluding stock‐based compensation expense, depreciation and amortization, impairment losses or recoveries on trade receivables, res
Slide 16: Liquidity
Page 16 Liquidity • Q4 2015 Cash Used By Operating Activities increased to ($10.6)M • Full Year 2015 Cash Used By Operating Activities increased to ($25.4)M • End‐2015 cash reserves of $40.0M o Includes $29.5M net proceeds from initial IP transaction with Volkswagen Group, $13.4M net proceeds from J
Slide 17: Q4 & Full Year 2015 Conference Call Q&A
Page 17 Q4 & Full Year 2015 Conference Call Q&A
Slide 18: Q4 & Full Year 2015 Results Conference Call
Page 18 Q4 & Full Year 2015 Results Conference February 25, 2016 Call
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