Ballard Power Systems Inc. · TSX:BLDP
Ballard Power Systems — Investor Presentation (July 2023)
44 slides from Ballard Power Systems's investor presentation, July 2023
Slide 1: Investor Presentation
Investor Presentation Nasdaq & TSX: BLDP July 2023 1
Slide 2: Ballard Introduction
Ballard Introduction1 40+ years developing industry leading hydrogen Proton Exchange Membrane (PEM) fuel cell technologies with over 1,100 employees worldwide >1,200 patents & applications Leading PEM fuel cell technology owned & licensed Heavy-duty mobility & power generation Focus on applications
Slide 3: Key Messages
Key Messages Establishing Tracking Energy transition Ballard is the Flexible business key partnerships towards pace is leader in PEM fuel model across & customer mid & long accelerating cell technology multiple verticals relationships term targets3 Accelerating policy 40+ years of market Ballard MEA
Slide 4: The energy transition is accelerating resulting in tremendous opportunity for the hydrogen economy
The energy transition is accelerating resulting in tremendous opportunity for the hydrogen economy Total Global GHG Emissions Covered in National Net-Zero Targets1 ~90% of global GHG emissions National net-zero targets • 93 countries with net-zero targets by 20501,2 cover ~90% of (~70% global GDP &
Slide 5: Unprecedented global hydrogen investment & development
Unprecedented global hydrogen investment & development • Decreasing cost & increasing availability of clean Global Clean H2 Production Outlook3 hydrogen removes key barrier to FCEV adoption • ~$700B cumulative investment required by 2030 to reach government stated targets1 26MT • ~$230B committed H2
Slide 6: Ballard's key role in the expanding hydrogen value chain
Ballard’s key role in the expanding hydrogen value chain Ballard is a world leader in the design & manufacturing of PEM fuel cell engines for medium- and heavy-duty mobility and stationary power applications. Hydrogen Infrastructure Production & Distribution End-Use Electricity & Electrolyzers, SMR,
Slide 7: 2030E Total Addressable Market (TAM)
2030E Total Addressable Market (TAM)1 Ballard focuses on applications with large addressable markets & difficult to abate emission profiles, incl. mobility applications requiring quick refueling, heavy payload, long range & high availability 7 1, 2, 3, 4, 5 See Slide Notes
Slide 8: FCEV provide a strategic value proposition for heavy-duty mobility
FCEV provide a strategic value proposition for heavy-duty mobility Fuel Cell Trucks: the Best Zero-Emission Fuel cell electric vehicles (FCEVs)… Alternative to Diesel • Are the best zero-emission diesel ICE alternative for medium & heavy-duty mobility: • Similar payload to diesel truck • Quick refue
Slide 9: Ballard has extensive experience & is the leader in PEM fuel cells for medium & heavy-duty mobility
Ballard has extensive experience & is the leader in PEM fuel cells for medium & heavy-duty mobility 40+ year evolution of Ballard’s fuel cell technology Translating over ~150 million kilometers of in-service experience into Ballard’s 13th generation stack & 9th generation fuel cell module1 POTENTIAL
Slide 10: >150Mkm in-service Ballard experience → proven durability & performance
Leading & proven FCEV technology Leading Stack Volumetric Power Density & Lifetime Amongst Peers1 Ballard uniquely designs & manufactures proprietary hydrogen fuel cell MEAs, plates, stacks & modules • Volumetric Power Density: important for space allocation in vehicle (engine compartment, roof, etc
Slide 11: Rapidly decreasing cost curve driving TCO reduction
Rapidly decreasing cost curve driving TCO reduction HDT FCEV Expected to be Most Competitive TCO Before 20301 • Estimated to reach breakeven parity of heavy-duty truck FCEV & BEV by ~2025 FCEV & diesel ICE by ~20281 • Key steps to accelerate FCEV TCO reduction: • Decrease capital costs through advan
Slide 12: Technological building blocks for cross-vertical applications
Technological building blocks for cross-vertical applications1 Technology Modules Applications FCmoveTM 45-120kW • Leading fuel cell technology platform allows for market Leading MEA, plate & stack technology diversification of product foundational to all FCwaveTM fuel cell modules 200kW • Product s
Slide 13: Ballard is geographically diversified in regions of high hydrogen demand growth & policy support
Ballard is geographically diversified in regions of high hydrogen demand growth & policy support1 13 1 See Slide Notes
Slide 14: Ballard's sustainability impact
Ballard’s sustainability impact Ballard fuel cell technologies are facilitating the energy transition & helping customers achieve important emissions targets • ‘Cradle to grave’ assessment1 In 2022, Ballard powered FCEVs • FCmove™-HD used in a bus application has an prevented ~53 million gallons 87%
Slide 15: Ballard 2023 outlook
Ballard 2023 outlook1 Total Operating Costs2 Capital Expenditures3 $135M – $155M $40M – $60M Continued investment in research & Investment in testing capabilities, product development ahead of the adding production, lab and hydrogen growth curve engineering equipment & expanded Advancing new technol
Slide 16: Appendices
APPENDICES 16
Slide 17: Appendix A Verticals
APPENDIX A VERTICALS 17
Slide 18: Bus
Bus1 Key Partners & Customers Current BDLP FCEB Solaris (Poland), Wrightbus (UK), Fuel Cell Size Deployed/ TAM2 Mkt Share $15B VanHool (Belgium), New Flyer (US), 70kW – 100kW In-Development Europe: >75%; N.Am. >90%; Skoda (Czech), ADL (UK), ARCC (Australia), ~1,500/~300 Buses China: >25% Wisdom (HK)
Slide 19: FCEBs proven to be competitive
FCEBs proven to be competitive1 Foothill Transit Authority FCEB vs. BEB Cost Comparison ~20% Foothill Transit Authority lower Greater Los Angeles Area, California life-cycle cost Deploying full zero emission bus fleet >300 buses planned by 2030 FCEB fleet >20% lower cost than BEB for longer range ro
Slide 20: Truck
Truck1 Key Partners & Customers Deployed/ TAM2 MAHLE (Europe), Hexagon Purus (US), Fuel Cell Size ~$195B Linamar (North America & Europe), Weichai (China), 50kW – 360kW In-Development Quantron (Europe) ~2,300/145 Trucks • Value Proposition: FCETs provide long range, fast refueling and full route fle
Slide 21: Rail
Rail1 Key Partners & Customers Siemens (Germany), CRRC (China), Fuel Cell Size Deployed / SAM2,3 In-Development CP Rail (Canada), Sierra Northern (US), ~400-600kW passenger & shunter $7B Stadler (CH/US), Medha (India), ~1.2-2MW freight 8 / 63 trains Scottish Rail (UK), Talgo (Spain) • Value Proposit
Slide 22: Marine
Marine1 Current BDLP Fuel Cell Fuel Cell Size Deployed / TAM2 Key Partners & Customers $40B Mkt Share Norled (Norway), ABB (Norway) <1MW – 7MW+ In-Development >15% 1 /4 vessels • Value Proposition: Modular fuel cell systems can be deployed in parallel, dispatchable configurations to meet variable po
Slide 23: Stationary power
Stationary power1 Key Partners & Customers Fuel Cell Size Deployed / CAT (US), HDF (France), Fusion (EU), 1.7-5kW; In-Development Telia (Norway), Telenor (Norway), Motorola (Denmark), 200kW – 1.5MW Norlys (Denmark), Vattenfall (Sweden) ~4 MW / 7.5MW • Value Proposition: Fuel cell backup systems repl
Slide 24: Appendix B Geographic Markets
APPENDIX B GEOGRAPHIC MARKETS 24
Slide 25: Europe
Europe1 Policy Support & Commitments • GHG Goal: Reduce net GHG emissions by 55% from 1990 levels by 2030; net zero by 2050 • Hydrogen Commitments: 12 countries currently offer purchase subsidies for FCEB and/or FCET • RePower EU Action Plan: EU goal of 20 million tons of renewable hydrogen by 2030
Slide 26: United States
United States1 Policy Support & Commitments • GHG Reduction Goal: ~50% reduction from 2005 levels by 2030; 100% carbon-free electricity by 2035 • Hydrogen Earth Shot targeting $1/kg green hydrogen by 2030 • LowNo (clean bus FTA funding program – specifically for low and ZEB) allocating $1.7B in 2023
Slide 27: California
California1 Policy Support & Commitments • GHG Goal: Reduce GHG emissions to 40% below 1990 levels by 2030 • Committed to $10B decarbonization investment over 6 years • $1.7B: 1,000 zero-emission short-haul (drayage) trucks & 1,700 zero-emission transit buses • $1.8B for zero-emission trucks, buses,
Slide 28: China
China1 Policy Support & Commitments • GHG Goal: Peak GHG emissions by 2030 & carbon neutral before 2060 • Demonstration City Clusters: 5 initial demonstration city clusters announced (Beijing, Shanghai, Guangdong, Hebei, Henan) intended to incentivize development of full hydrogen value chain through
Slide 29: China FCEV demonstration city cluster policy
China FCEV demonstration city cluster policy1 • China initiating a four-year program to support local governments in researching hydrogen technology & developing a local, hydrogen value chain • Strong emphasis on industrialization & localization of fuel cell core components, consistent with Made In
Slide 30: Appendix C Key Partnerships / Customers
APPENDIX C KEY PARTNERSHIPS / CUSTOMERS 30
Slide 31: Weichai / Ballard Joint Venture
Weichai / Ballard Joint Venture1 • History: Strategic collaboration established in 2018, located at Weifang City, Shandong Province. Ballard brings world class PEM fuel cell technologies and Weichai has global supply chain and commercial scale industrial manufacturing expertise. • Development: • Est
Slide 32: Mahle
Mahle1 • History: Ballard and Mahle announced collaboration agreement in September 2020 to develop a product platform, with a power output from 180kW to 360kW for heavy-duty and long-haul trucks (Class 7 & 8). Multi-year development initiative to develop a fuel cell as the lowest-cost solution for h
Slide 33: Linamar
Linamar1 • History: Linamar and Ballard entered into an agreement in 2021 to jointly develop and market a fuel cell powertrain and chassis system for cars, SUVs, and trucks (Class 1 & 2) for the North America and Europe markets. The partnership is intended to offer a ‘one-stop-shop’ for Class 1 & 2
Slide 34: Siemens
Siemens1 • History: Development agreement signed in 2017 to develop a 200kW fuel cell module for integration into Siemens’ new Mireo passenger train platform. Fuel cells can enable electrification with range, without requiring costly catenary wire infrastructure. • Development / Status: • The produc
Slide 35: Appendix D Supplementary Information
APPENDIX D SUPPLEMENTARY INFORMATION 35
Slide 36: PEM differentiated amongst other fuel cell technologies
PEM differentiated amongst other fuel cell technologies1 Proton Exchange Membrane (PEM) • Primary applications: transportation, stationary & back-up power • Advantages: high power density, low operating temp (50-100°C), PEM Solid Oxide Alkaline durable, quick start, compact • Challenges: sensitivity
Slide 37: Total Ballard FC module cost
Total Ballard FC module cost1,2 Stack Fuel Cell Module MEA MEAs ~75% of Stack cost Stack ~30% of Module cost Platinum & Iridium only Targeting 70% Stack cost account for ~30% reduction by 2024 of MEA cost 37 1, 2 See Slide Notes
Slide 38: Global manufacturing capacity
Global manufacturing capacity1,2 HRB Harness Air Compr- Humid- Coolant essor ifier Pump Stack Bipolar Hard- Plates Stack Bipolar ware Hard- Plates Hoses MEA Enclosure ware MEA MEA DC/DC Controller MEAs Stacks Modules Canada Canada Canada Power Output: ~1.4GW Power Output: up to 1.8GW Power Output: u
Slide 39: Stack Cost Reduction Achievement & Outlook
Stack Cost Reduction Achievement & Outlook1,2 $/kW 3x3 program has led to >60% stack cost reduction to date with path to >70% with increased volume in 2024 (at 2018 conditions) Future cost reductions driven by new MEA design & advanced manufacturing processes 2018 2024 2026 ~80% reduction in stack c
Slide 40: 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 41: Slide Notes
Slide Notes Slide 2 Market - Global Industry Analysis, Size, Share, Growth, Trends, and Research Part D: Transport and Environment, 75, 211-222. 1. As of March 11, 2022. Forecast, (2020-2030); 2020 https://doi.org/10.1016/j.trd.2019.08.019), since it is a current study 2. Values included for the bus
Slide 42: Slide Notes
Slide Notes Slide 21 change. Actual results may differ materially. See Forward-Looking Slide 32 1. As of March 11, 2022; Based on company’s current business plans Statements. 1. As of March 11, 2022; Based on company’s current business plans and the current business environment, which are subject to
Slide 43: Glossary
Glossary BEB: Battery Electric Bus LCS: Liquid Cooled Stack BEV: Battery Electric Vehicle LD: Light Duty BoP: Balance of Plant MEA: Membrane Electrode Assembly EMEA: Europe, Middle East & Africa MD: Medium Duty FCEB: Fuel Cell Electric Buses MDT: Medium Duty Truck FCET: Fuel Cell Electric Truck OEM:
Slide 44: Here for Life
Here for LifeTM Please contact Investor Relations for more information investors@ballard.com Ballard.com 44
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