Ballard Power Systems Inc. · TSX:BLDP
Ballard Power Systems — Q3 2020 Earnings Presentation
16 slides from Ballard Power Systems's earnings presentation, Nov 6, 2020
Slide 1: Q3 2020 Results Conference Call
Q3 2020 Results Conference Call November 6, 2020 Nasdaq & TSX Ticker: BLDP Power to Change the World® 1 BALLARD.COM
Slide 2: Conference Call Participants
Conference Call Participants Randy MacEwen President & CEO Tony Guglielmin CFO Power to Change the World® 2 BALLARD.COM
Slide 3: Forward-Looking Statements
Forward-Looking Statements This presentation contains forward-looking statements, including: estimated revenue; gross margin; cash operating costs; adjusted EBITDA; product cost reductions; liquidity; market size and growth projections; customer value propositions; and expected sales and product shi
Slide 4: Q3 2020 Financial Results
Q3 2020 Financial Results • $25.6M revenue • 19% gross margin • ($7.7)M Adjusted EBITDA • $361.7M cash reserves at end-Q3 • Results were consistent with our expectations, reflecting some impact from COVID-19 Power to Change the World® 4 BALLARD.COM
Slide 5: Developments in China
Developments in China • 4-year policy framework announced • Supports goal of 1M FCEVs by 2030 • Select cities & regions to be awarded Demonstration Region status o Will take some time to achieve clarity • Weichai-Ballard JV has begun optimization of production processes • Ballard continues to achiev
Slide 6: Developments in Europe
Developments in Europe • Collaboration agreement with MAHLE International signed October 1st; to focus on $100B annual truck engine market, initially in Europe o MAHLE is a major Tier 1 supplier with €12B in sales o Components in 50% of all vehicles o 10+ years experience in fuel cell component supp
Slide 7: High-Power Density Stack Technology
High-Power Density Stack Technology • High-power density is an HDM requirement, particularly in commercial trucks o FCgen®-HPS is a first-of-a-kind fuel cell stack, designed by Ballard in a program with Audi • Definitive agreements now signed with Audi, giving Ballard the right to use HPS technology
Slide 8: UAV Business Assets Sold to Honeywell Int'l
UAV Business Assets Sold to Honeywell Int’l • Honeywell positioned to commit resources & investment over an extended period to address the UAV market opportunity • Significant long-term opportunity for larger fuel cell propulsion systems in aerospace and urban air mobility applications o Honeywell i
Slide 9: Announcement of CFO's Planned Retirement
Announcement of CFO’s Planned Retirement • Tony Guglielmin has announced his plan to retire, effective March 31st, 2021 o Following completion & certification of 2020 audited financial results • Tony’s leadership and contribution to business strategy & financial management will be missed • Internati
Slide 10: Revenue and Gross Margin
Revenue and Gross Margin REVENUE GROSS MARGIN $75.3M 25% 22% 20% 19% $64.0M 2020 2019 $25.6M $24.7M Q3 YTD Q3 YTD • Q3 2020 Revenue +4%, to $25.6M • Q3 2020 Gross Margin -6-points, to 19% o +94% Power Products, to $15.3M o Reflects shift toward lower overall ▪ +161% Heavy Duty Motive, to $12.9M prod
Slide 11: Cash Operating Cost Base and Adjusted EBITDA
Cash Operating Cost Base and Adjusted EBITDA CASH OPERATING COST BASE * ADJUSTED EBITDA # $33.6M Q3 YTD 2020 $25.7M 2019 ($6.8)M ($7.7)M Includes Q3 share of losses in joint $10.7M venture investments in China of ($2.8M) $8.9M ($19.6)M Includes YTD share of losses in joint venture investments in Chi
Slide 12: Liquidity
Liquidity • Q3 2020 Cash Used By Operating Activities increased to ($11.3)M o Reflects cash operating losses of ($6.7) million and capital outflows of ($4.6) million $361.7M • End-Q3 2020 cash reserves of $361.7M 2020 o +136% vs. Q3 2019; +112% vs. prior quarter 2019 $153.4M • Cash reserves include
Slide 13: Order Backlog
Order Backlog End-Q3 2020: Order Backlog1 of $128.1M and 12-Month Order Book2 of $79.6M ORDER Order Backlog Orders Received Orders Delivered Order Backlog BACKLOG at End-Q2 2020 in Q3 2020 in Q3 2020 at End-Q3 2020 Total Fuel Cell $155.5M -$1.8M* $25.6M $128.1M Products & Services * Reflects adjustm
Slide 14: BALLARD.COM
Power to Change the World® 14 BALLARD.COM
Slide 15: Q&A
Q&A Power to Change the World® 15 BALLARD.COM
Slide 16: BALLARD.COM
Power to Change the World® 16 BALLARD.COM
Ballard Power Systems — Q3 2020 Earnings Presentation on 6ix