Slide 1: Smarter Solutions for a Clean Energy Future
® NASDAQ:BLDP TSX:BLD Smarter Solutions for a Clean Energy Future Investor Relations Presentation October 30, 2012
Slide 2: Forward Looking Statements
Forward Looking Statements NASDAQ:BLDP TSX:BLD 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 expecte
Slide 3: Who We Are
Who We Are NASDAQ:BLDP TSX:BLD • Ballard Power Systems, Inc. is a recognized global leader in clean energy PEM fuel cells • Design, manufacturing, distribution, support • Multi‐market focus • 2011 revenue of $76M • 420 employees • Headquarters in Burnaby, BC, Canada • Operations: Canada, Denmark,
Slide 4: Business Overview
Business Overview NASDAQ:BLDP TSX:BLD • Commercial stage segments: • Communications backup power • Material handling • Development stage segments: • Bus • Distributed Generation • Other lines of business: • Engineering services Facilitates development of new business opportunities • Material Pro
Slide 5: Business Diversification
Business Diversification NASDAQ:BLDP TSX:BLD Indicative 2012 Revenue Mix Indicative 2012 Revenue Mix Relative Contribution, By Segment Relative Contribution, By Geographic Region October 30, 2012 5
Slide 6: Fuel Cell Product Portfolio
Fuel Cell Product Portfolio NASDAQ:BLDP TSX:BLD Fuel Cell Stacks • 500W‐2kW • 2kW‐8kW • 4kW‐20kW • 100kW • >4k hrs • Up to 30k hrs • Up to 12k hrs • >5k hrs Fuel Cell Modules • 75kW‐150kW • Up to 12k hours Complete • 2kW & 5kW Fuel Cell • Direct • 2.5kW & 5kW hydrogen • Methanol fuelled Systems •
Slide 7: Unrivalled Intellectual Property Portfolio
Unrivalled Intellectual Property Portfolio NASDAQ:BLDP TSX:BLD • Over 200 patents/applications owned and license rights to >1,000 patents/applications owned by Daimler, Ford & IdaTech • MEA designs • Plate designs • Catalyst coated membranes • Gas diffusion layer materials • Fuel cell systems • Ma
Slide 8: Commercial Stage Segment: Communications Backup Power
Commercial Stage Segment: Communications Backup Power
Slide 9: Communications Backup Power Market Overview
Communications Backup Power Market Overview NASDAQ:BLDP TSX:BLD • Target environment • Cell sites susceptible to severe weather, natural disasters, and poor electric grid reliability • Customer value • Reliable, clean, short & extended run backup power solution with low lifecycle and operating cos
Slide 10: Communications Backup Power Value Proposition
Communications Backup Power Value Proposition NASDAQ:BLDP TSX:BLD • Competition • Incumbent backup power technology: generators and batteries • Advantages over incumbent technology • Lower lifecycle costs • Higher reliability = lower repair costs = improved availability • Fewer moving parts = lowe
Slide 11: Communications Backup Power Deployments
Communications Backup Power Deployments NASDAQ:BLDP TSX:BLD ~2,000 backup power systems shipped to 30+ countries (~7,800 kW’s) Asia Europe & Africa Americas & Caribbean October 30, 2012 11
Slide 12: ElectraGen-H2 Return on Investment
ElectraGen™‐H2 Return on Investment NASDAQ:BLDP TSX:BLD • Total cost comparison – direct hydrogen fuel cell solution vs. battery & diesel generator solution • Economic benefits • Applicable U.S. investment tax credit (ITC) = 30% of fuel cell system cost, recognized at end of Year 1 • Positive payb
Slide 13: ElectraGen-ME Return on Investment
ElectraGen™‐ME Return on Investment NASDAQ:BLDP TSX:BLD • Total cost comparison – methanol fuel cell solution vs. battery & diesel generator solution • Economic benefits • Substantial positive payback driven by reduced maintenance schedule & avoiding battery replacement costs • Savings grow linear
Slide 14: Commercial Stage Segment: Material Handling
Commercial Stage Segment: Material Handling
Slide 15: Material Handling Market Overview
Material Handling Market Overview NASDAQ:BLDP TSX:BLD • Target environment: • High volume distribution centres with large fleets (>30 forklifts) and multi‐ FCvelocity®‐9SSL shift operations Fuel Cell Stack FCgen®‐1020ACS Fuel Cell Stack • Customer value: • Productivity gains vs. battery‐powered el
Slide 16: Material Handling Value Proposition
Material Handling Value Proposition NASDAQ:BLDP TSX:BLD • Key benefits of fuel cell material handling equipment Increased Productivity Reduced Operational Expenses • Enable forklifts to operate at • Economic lifetime up to 1.5x – 2.0x Increase consistent full speed and power at all longer than lea
Slide 17: Plug Power GenDrive Deployments
Plug Power GenDrive® Deployments NASDAQ:BLDP TSX:BLD • More than 3,000 GenDrive® units deployed October 30, 2012 17
Slide 18: Material Handling Return on Investment
Material Handling Return on Investment NASDAQ:BLDP TSX:BLD • Total cost comparison – fuel cell powered forklifts vs. lead-acid battery Lifecycle Cost Comparison solution $5,000,000 • Economic benefits for new greenfield facility $4,000,000 Total Expenditure (Non‐discounted USD) • Increase producti
Slide 19: Development Stage Segments
Development Stage Segments
Slide 20: Bus
Bus NASDAQ:BLDP TSX:BLD • Government supported zero‐emission transit programs • Product cost reductions moving fuel cell hybrid buses to competitive position vs. diesel hybrids FCvelocity®‐HD6 BC Transit Fuel Cell Bus Fuel Cell Module Whistler, BC • 400,000+ new buses manufactured / year • Emergin
Slide 21: Distributed Generation
Distributed Generation NASDAQ:BLDP TSX:BLD • Applications with low‐cost hydrogen or bio‐mass in markets with FIT / government support • ClearGen™ system “Levelized Cost of Energy” ~$0.15 per kilowatt FCgen®‐ 1300 ClearGen™ System hour * Fuel Cell Stack * assumes H2 cost at lower heating value of n
Slide 22: Other Lines of Business
Other Lines of Business
Slide 23: Fuel Cell Engineering Services
Fuel Cell Engineering Services NASDAQ:BLDP TSX:BLD • Ballard’s engineering services provide a high‐value way to accelerate customer’s fuel cell development efforts • Our team provides tools and technologies for development, optimization, integration and validation of fuel cell components, stacks a
Slide 24: Material Products
Material Products NASDAQ:BLDP TSX:BLD • Gas diffusion layer (GDL) material • Only major North American supplier of this core fuel cell component • Carbon friction material supplier to automotive OEM • Manufacturing facility in Lowell, MA • Significant & stable revenue… modest growth expected Balla
Slide 25: Path to Profitability
BALLARD Path to Profitability
Slide 26: Product Cost Reduction
Product Cost Reduction NASDAQ:BLDP TSX:BLD • Average product cost reduction across platforms of ~60% since 2009 Relative Average Product Cost (compared to 2009) • Product cost reductions driven by – • Product design improvements including reduced platinum loadings, use of Ballard GDL material, low
Slide 27: Path to Profitability
Path to Profitability NASDAQ:BLDP TSX:BLD Revenue* (millions) Gross Margin (%) 80 $76.0 25 70 $65.0 $60.0 ~20% 20 60 18% 50 $46.7 16% Contract Manufacturing 15 40 44.5 13% Material Products 37.8 30 Fuel Cell Products 10 20 26.7 26.5 5 10 0 0 2009 2010 2011 2012E 2009 2010 2011 2012E • Fuel Cell Pr
Slide 28: Path to Profitability (cont'd)
Path to Profitability (cont’d) NASDAQ:BLDP TSX:BLD Cash Operating Cost Base (millions) Adjusted EBITDA* (millions) 80 0 ~$75.0 ^Measures operating 2009 2010 2011 2012E 70 expenses excluding ‐5 stock‐based ^ Measures EBITDA compensation expense, ‐10 adjusted for 60 depreciation and stock‐based amor
Slide 29: Q3 2012 Results
Q3 2012 Results NASDAQ:BLDP TSX:BLD USD Millions Q3 Q3 % YTD YTD % 2012 2011 Improve. 2012 2011 Improve. GROWTH Revenue $14.2 $20.6 -31% $38.0 $55.0 -31% Fuel Cell Stack 876 1,005 -13% 2,241 2,323 -4% Shipments1 (units) 12-Month Rolling Order $50.2 $31.9 Book PROFITABILITY Gross Margin 14% 19% 17%
Slide 30: Summary
Summary NASDAQ:BLDP TSX:BLD • Ballard is a world leader • Active in leading markets for fuel cell commercialization, including North America, Europe, Asia, Caribbean & Latin America and South Africa • Offering a comprehensive portfolio of fuel cell power generation products to meet stationary and
Slide 31: Contact Us
Contact Us NASDAQ:BLDP TSX:BLD Investor Relations Media Relations Social Media Guy McAree Guy McAree Linked In: Ballard Power Systems Email: Email: investors@ballard.com media@ballard.com Twitter: @BallardPwr Phone: Phone: Facebook: Ballard +1.604.412.7919 +1.604.412.7919 Power Systems Corporate H