Ballard Power Systems Inc. · TSX:BLDP
Ballard Power Systems — Investor Day (September 2020)
184 slides from Ballard Power Systems's investor day presentation, Sep 29, 2020
Slide 1: Investor & Analyst Day 2020
“Investor & Analyst Day 2020” Tony Guglielmin Vice President & CFO Power to Change the World Investor and Analyst Day 2020 / September 29 1
Slide 2: Today's Agenda
Today’s Agenda Ballard Strategy Randy MacEwen, CEO Growth Platforms Rob Campbell, CCO Dr. Kevin Colbow, CTO Key Geographic Markets o China Alfred Wong, Managing Director – Asia Pacific o Europe Jesper Themsen, CEO – Ballard Power Systems Europe A/S Oben Uluc, Sales Director - EMEA o California Nicol
Slide 3: Today's Agenda (Cont'd)
Today’s Agenda (Cont’d) Product Roadmap Dr. Kevin Colbow, CTO Cost-Reduction Strategy Dr. Lee Sweetland, Director of Advanced Manufacturing Operations Update Jyoti Sidhu, Vice President - Operations ESG & People Jan Laishley, Vice President – Human Resources Financial Review Tony Guglielmin, CFO Wra
Slide 4: 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 5: Ballard Corporate Strategy
Ballard Corporate Strategy Randy MacEwen President & CEO Power to Change the World Investor and Analyst Day 2020 / September 29 5
Slide 6: What's different?
1. Strong supporting policy & sector-coupling What’s different? 2. Growing number of vehicle deployments Key factors 3. PEM fuel cell value proposition impacting the 4. Reduction in cost of renewables hydrogen and fuel 5. Compelling TCO reports cell sector 6. Corporate investments 7. ESG Power to Ch
Slide 7: We are becoming a CO2-regulated world
We are becoming a CO2-regulated world 7
Slide 8: Our Vision
Our Vision: We deliver fuel cell power for a sustainable planet 8
Slide 9: Our Mission
Our Mission: We use our fuel cell expertise to deliver valuable and innovative solutions to our customers globally, create rewarding opportunities for our team, provide extraordinary value to our shareholders and power the hydrogen society. 9
Slide 10: Why Medium- and Heavy-Duty Motive Applications?
Strong value proposition Centralized depot Why Medium- and refueling Heavy-Duty Motive Applications? Disproportionate emissions from hard- to-abate mobility Power to Change the World 10 Investor and Analyst Day 2020 / September 29 10
Slide 11: TCO Reports
TCO Reports Power to Change the World Investor and Analyst Day 2020 / September 29 11
Slide 12: Ballard by the Numbers
Ballard by the Numbers Power to Change the World Investor and Analyst Day 2020 / September 29 12
Slide 13: Ballard Strategy: e12345
Ballard Strategy: e12345 e – engage e-mobility ecosystem Simplify FCEVs and drive down TCO 1 2 3 4 5 Number ONE in TWO growth THREE key FOUR parts of the FIVE key the world with platforms geographic value chain applications best PEM fuel cell markets technology and • MEAs & plates products • Power P
Slide 14: Ballard's Sustainable Competitive Advantages
Ballard’s Sustainable Competitive Advantages > Deep fuel cell expertise and talent pool > Leading PEM technology > Comprehensive product portfolio > Vertical integration > Unparalleled field experience > Customers and industrial partnerships > Powerful brand
Slide 15: Key Strategic Priorities
Key Strategic Priorities Forge key Invest in advanced Deliver outstanding Invest in our leading Drive aggressive industrialization customer experience fuel cell technology & product cost manufacturing & partnerships – products reduction execute on WBJV & capacity expansion Mahle partnerships Grow a
Slide 16: Power Products Growth Platform
Power Products Growth Platform Rob Campbell Vice President & CCO Power to Change the World Investor and Analyst Day 2020 / September 29 16
Slide 17: Agenda
We Are Ballard Ballard’s progress since 2017 The Right Markets at the Right Time AGENDA Validation of the market for heavy-duty vehicle applications Key Levers for Market Expansion Key Levers for Market Expansion Reducing TCO, removing friction points, accelerating adoption Power to Change the World
Slide 18: PEM is the most commercialized type of fuel cell today
PEM is the most commercialized type of fuel cell today, Its low operating temperature (50- 100°C), short start time and use of atmospheric air make PEM ideal for mobility solutions. MW of fuel cell shipments Power to Change the World Investor and Analyst Day 2020 / September 29 18
Slide 19: Heavy-Duty Motive Notable Growth Delivering Results
Heavy-Duty Motive Focusing where fuel cells deliver the strongest value proposition Notable Growth Delivering Results In key markets and regions globally Since 2017, Ballard has made tangible progress in the market Leadership In technology, market share and cost reduction Power to Change the World 1
Slide 20: Ballard Project with Kenworth
BALLARD PROJECT WITH KENWORTH Class 8 drayage truck in operation at Ports of LA and Long Beach FCveloCity®-HD
Slide 21: Ballard Partners with Van Hool
BALLARD PARTNERS WITH VAN HOOL First-ever fuel cell tram-buses for a full bus rapid transit system Eight ExquiCity tram-buses now in revenue service FCveloCity®-HD
Slide 22: Ballard Partners with ABB Marine & Ports
BALLARD PARTNERS WITH ABB MARINE & PORTS Development of fuel cell systems to power marine applications First unit delivered and displayed at Royal Caribbean event FCveloCity®
Slide 23: Ballard Partners with Siemens
BALLARD PARTNERS WITH SIEMENS Development of fuel cell engine to power Mireo commuter train FCrail
Slide 24: Ballard Project with Dongfeng
BALLARD PROJECT WITH DONGFENG Deployment of 500 fuel cell trucks now delivering goods throughout Shanghai Ballard fuel cell stacks manufactured in China and integrated by Re-Fire into the fuel cell engine FCvelocity®-9SSL
Slide 25: Ballard Launches FCgen-LCS
BALLARD LAUNCHES FCgen®-LCS Next-generation high performance liquid-cooled fuel cell stack for the heavy-duty motive market FCgen®-LCS Features significantly reduced costs, ultra-high durability, improved power density, impressive freeze start capability, enhanced efficiency, and high performance
Slide 26: Ballard Powers Yard Trucks
BALLARD POWERS YARD TRUCKS Ballard fuel cell modules power two port terminal yard trucks at Port of LA FCveloCity®-HD
Slide 27: Ballard Powers UPS Trucks
BALLARD POWERS UPS TRUCKS Ballard fuel cell modules power California UPS trucks in CARB-funded clean energy project 30kW range extender boosts driving range to provide certainty of service FCveloCity®-MD
Slide 28: Ballard Partners with Weichai Power
BALLARD PARTNERS WITH WEICHAI POWER Strategic collaboration includes joint venture with technology transfer and $163.6 million equity investment, Factory is now in operation joint venture facility
Slide 29: Ballard Powers HydroFLEX Train
BALLARD POWERS HYDROFLEX TRAIN Ballard modules power the U.K.’s first fully sized hydrogen demonstrator refurbished train FCveloCity®-HD
Slide 30: Ballard Launches FCmove
BALLARD LAUNCHES FCmove™ 8th generation high performance fuel cell module for heavy-duty motive market FCmove™ Offers attractive customer value based on high reliability, simplified system integration and lower total life cycle cost
Slide 31: Ballard Establishes Marine Center of Excellence
BALLARD ESTABLISHES MARINE CENTER OF EXCELLENCE Dedicated to fuel cell marine applications at Ballard’s engineering, manufacturing and service facility in Hobro, Denmark Annual production capacity of more than 15 MW of fuel cell modules Marine Center of Excellence
Slide 32: Ballard Powers AZETEC Project
BALLARD POWERS AZETEC PROJECT Ballard modules power 2 tractor- trailer trucks as part of the Alberta Zero-Emissions Truck Electrification Collaboration project Trucks will move freight year-round between Edmonton and Calgary FCveloCity®-HD
Slide 33: Ballard Powers Mining Trucks
BALLARD POWERS MINING TRUCKS FCveloCity®-HD Ballard modules powers Ultra heavy duty mining truck for Anglo, the world’s largest platinum group metals mining company Anglo expects to deploy more trucks, each with MW scale fuel cell power, at other operations around the world
Slide 34: Ballard Powers Push Boat
BALLARD POWERS PUSH BOAT Ballard supplied BEHALA with fuel cell modules to power German push boat on river in Germany FCveloCity®-HD
Slide 35: Ballard Partners with Norled
BALLARD PARTNERS WITH NORLED Ballard supplies 200kW module to Norled to power ferry in Norway The Norled vessel will be the first liquid hydrogen fuel cell-powered ferry in commercial operation globally FCveloCity®-HD
Slide 36: Ballard Partners with Solaris
BALLARD PARTNERS WITH SOLARIS Solaris is the first European bus manufacturer to integrate Ballard’s latest generation FCmove™ module FCmove™ Ballard fuel cell modules will be powering Solaris buses in the Netherlands, Germany and Italy
Slide 37: Ballard Partners with Wrightbus
BALLARD PARTNERS WITH FCveloCity®-HD WRIGHTBUS Ballard is supplying fuel cell modules to Wrightbus for bus to operate in England, Northern Ireland and Scotland Wrightbus is a leading industry champion for fuel cell electric buses on U.K. roads
Slide 38: Ballard Partners with New Flyer
BALLARD PARTNERS WITH NEW FLYER Ballard-powered New Flyer are ready to deliver zero-emission transit throughout North America New Flyer offers a 40-foot and 60- foot Altoona-tested fuel cell electric buses FCveloCity®-HD
Slide 39: Ballard Launches FCwave
BALLARD LAUNCHES FCwave™ Ballard introduced fuel cell industry’s first commercial zero- emission module to power ships The 200-kilowatt modular unit can be scaled in series up to the multi- megawatt power level FCwave™
Slide 40: We are powering thousands of heavy-duty vehicles globally
We are powering thousands of heavy- duty vehicles globally. Power to Change the World Investor and Analyst Day 2020 / September 29 40
Slide 41: Hydrogen is most competitive in heavy duty motive applications
Hydrogen is most competitive in heavy duty motive applications Our focus is on applications where hydrogen fuel cells have a clear advantage Others are joining us… Power to Change the World Investor and Analyst Day 2020 / September 29 41
Slide 42: Leading players now engaging in HD markets
Leading players now engaging in HD markets Hydrogen $6.7 Billion trains Investment Power to Change the World Investor and Analyst Day 2020 / September 29 42
Slide 43: Key trends in macro landscape
Key trends in macro landscape Priority shift Geopolitics of battery to Heavy Duty Hidden commodities Role of H2 carbon footprint Ultra Low Emission Zones in decarbonization CO2 400 Hydrogen Diesel vehicle ban Over 25,000 Stations Grid FCEV on the road Growing Performance Resilience Competition limit
Slide 44: The advantages of fuel cells over battery electric vehicles
All weather performance The advantages of fuel cells over battery electric vehicles Range and payload Only fuel cell vehicles can directly replace diesel, route for route Refueling time Power to Change the World 44 Investor and Analyst Day 2020 / September 29 44
Slide 45: Scaling Up Infrastructure
Scaling Up Infrastructure • Adding vehicles to an established fuel cell fleet does not require adding additional infrastructure. • The cost decreases as fleet size increases. Graph concept courtesy of the Center for Transportation and Environment (CTE) Power to Change the World Investor and Analyst
Slide 46: Heavy Duty mobility market represents a very large opportunity
Heavy Duty mobility market represents a very large opportunity for Ballard $14 billion 450,000 buses & coaches 100kW/bus Estimated Total $100 billion Addressable Market 4 million MHD trucks 200kW/truck over $130b (engine) $4 billion and 8,500 electric hybrid trains 600kW/train 1 million MW per year
Slide 47: Off highway vehicles represent a new market opportunity
All weather performance Off highway vehicles represent a new market opportunity with $30b TAM (engine market) Power to Change the World Investor and Analyst Day 2020 / September 29 47
Slide 48: Market readiness
Market readiness Heavy duty mobility is moving from demonstration to commercial deployment within next decade Hydrogen Road map Europe Power to Change the World Investor and Analyst Day 2020 / September 29 48
Slide 49: Investing in comprehensive fuel cell stack and module platforms
Investing in comprehensive fuel cell stack and module platforms to address mobility markets Fuel cell stack Fuel Cell Stacks Fuel Cell Power Modules • Air and Liquid cooled stack • Product platforms to cover platforms from 5 kW to applications from 45 kW to 150kW 450 kW • Designed for recycling and
Slide 50: 3 platforms of liquid cooled stacks
3 platforms of liquid cooled stacks to address all mobility applications Power level Applications Features Availability Up to 25 kW/stack ▪ Material handling ▪ 15,000hrs ▪ Range extender Now FCvelocity®-9SSL ▪ 1.5kW/L to 2.5kW/L Over 10,000 stacks Mobility Stack ▪ LD truck ▪ Operating 70oC produced
Slide 51: Most extensive fuel cell product platforms
Ballard will have the most extensive fuel cell product platforms to address different heavy duty applications Power level Applications Features Availability 30kW, 85kW, 100kW ▪ Range extender ▪ 15,000hrs ▪ LD truck ▪ IP 56 FCveloCity® Legacy ▪ Bus ▪ Air and cooling kits Now platform ▪ LD commercial
Slide 52: Product line expansion opens new mobility markets and increases TAM
Product line expansion opens new mobility markets and increases our TAM $130bn Cruise Ships 500 (1MW+) $13bn 450 Long Haul $4bn Trucking 400 Heavy-Duty Trucks 350 300 KILOWATTS 250 Coaches $100bn Regional Delivery Trucks Passenger train - EMU 200 Light Rail Ferries, Barges 150 Regional Transit & Shu
Slide 53: Key levers for market expansion
Technology Improvement Key levers for market expansion Product Industrialization • Actively working to reduce TCO and friction points to Application Integration accelerate adoption of hydrogen fuel cell solutions Eco-System Development Power to Change the World Investor and Analyst Day 2020 / Septem
Slide 54: Technology Improvement
Technology Improvement We have fuel cell expertise and experience with leading technology to deliver on required improvements Power to Change the World Investor and Analyst Day 2020 / September 29 54
Slide 55: Product Industrialization: 70% cost reduction
Product Industrialization We are well positioned to execute 70% cost reduction to meet commercialization targets McKinsey & Company - Path to Hydrogen Competitiveness (2020) Power to Change the World Investor and Analyst Day 2020 / September 29 55
Slide 56: Product Industrialization: strategic partnerships
Product Industrialization We are capitalizing on our strategic partnerships to execute our product industrialization Power to Change the World Investor and Analyst Day 2020 / September 29 56
Slide 57: Application Integration and Eco-System Development
Application Integration We are developing our customers and partners to deliver our growth plan and accelerate technology adoption Eco-System Development H2Oz Bus Power to Change the World Investor and Analyst Day 2020 / September 29 57
Slide 58: Ballard technology continues to lead
Ballard technology continues to lead with comprehensive product platforms We will meet cost reduction targets to commercialization We are using an effective partnership strategy to maximize market reach. Power to Change the World Investor and Analyst Day 2020 / September 29 58
Slide 59: Technology Solutions Growth Platform
Technology Solutions Growth Platform Dr. Kevin Colbow Vice President & CTO Power to Change the World Investor and Analyst Day 2020 / September 29 59
Slide 60: Technology Solutions
Technology Solutions Mission: Help customers solve difficult technical & business challenges and address new business opportunities Solution: Technical expertise, IP portfolio, supply of prototype technology to drive future opportunities Customized Technology Solutions to support all stages of techn
Slide 61: Objectives
Objectives 1. Reduce customer commercialization friction points 2. Build high contribution margin revenue pipeline 3. Enable long term market opportunities and product sales 4. Build and cross-leverage IP portfolio, advancements and know-how 5. Align programs with similar core competencies Power to
Slide 62: Intellectual Capital
Intellectual Capital • ~900 total employees and contractors worldwide • ~4,700 person-years of experience • ~400 Engineers, Scientists & Technologists o 46 PhD’s o 164 Masters o 316 Bachelors o 138 Diplomas • 10-year average tenure of core technical staff Power to Change the World Investor and Analy
Slide 63: Intellectual Property
Intellectual Property Breakdown of Patent & • Ballard owns, licenses and has Patent Application Areas access to ~1,400 patents & patent applications Other Fuel Cell MEA/ 1% System Seals 19% • Deep know-how includes: 36% Balance o Catalyst layer processing of Plant o MEA manufacturing and sealing 7%
Slide 64: Technology Solutions Markets
Technology Solutions Markets Distributed Generation Research Power to Change the World Investor and Analyst Day 2020 / September 29 64
Slide 65: Case Study #1: Product Development for Audi
Case Study #1: Product Development for Audi • 9-year engineering services contract with Audi, to mid-2022 • Development of high-power density fuel cell stack for passenger car program • Ballard’s IP rights: o Passenger Car * o Truck * o Bus Specification o Rail Rated power 140 kW o Marine Power dens
Slide 66: Case Study #2: Weichai-Ballard JV Technology Transfer
Case Study #2: $90m Development & Technology Transfer to Weichai-Ballard Joint Venture (WBJV) • Develop bus, truck and forklift stacks & modules for WBJV assembly in China; retain rights for ROW • FCgen® stack & FCmove® module development complete; next-gen modules in development • Fuel cell product
Slide 67: Case Study #3: Siemens Rail Module Development
Case Study #3: Siemens Rail Module Development • Multi-year agreement to develop fuel cell system for Siemens Mireo® regional commuter train • Rooftop mounted system using FCmove® module, optimized weight & footprint for maximum range • Prototype module expected to be delivered in September 2021 • A
Slide 68: China Market
China Market Alfred Wong Managing Director – Asia Pacific Power to Change the World Investor and Analyst Day 2020 / September 29 68
Slide 69: Power to Change the World Investor and Analyst Day 2020 / September 29
Power to Change the World Investor and Analyst Day 2020 / September 29 69
Slide 70: China: World's largest and fastest growing commercial FCEV market
China: World’s largest and fastest growing commercial FCEV market China FCV Roadmap (2020-2030) China HRS Development Plan • World’s largest bus and Year 2020 2025 2030 Year 2020 2025 2030 commercial truck market Number 5,000 50,000 1,000,000 Number 100 300 1,000 • Hydrogen identified as a FCEV Sale
Slide 71: Notice on Development of Fuel Cell Vehicle Demonstration
Notice on Development of Fuel Cell Vehicle Demonstration • 4-year policy framework announced on 16-Sep-2020 • “以奖代补” – replacing subsidies with awards • State government to provide financial incentives to demonstration regions that meet requirements based on: Completeness of industry base with leadi
Slide 72: Continuing Momentum Expected From Strong Regional Support
Continuing Momentum Expected From Strong Regional Support Over 36 regions have announced incentive plans for FCEVs and HRS Regional FCV Promotion Plan in China Region Year FCEVs HRSs 2021 5,000 40 Yangtze River Delta 2025 50,000 200 2025 9,110 43 Foshan, Guangdong 2030 15,650 57 Hebei Province 2022
Slide 73: Ballard is Well Positioned to Meet Government Targets
Ballard is Well Positioned to Meet Government Targets • Demonstration aims to accelerate commercialization of FCEVs by advancing industrialization of core components New city cluster demonstration targets Ballard’s positioning in the market Requires breakthrough and industrialization Development and
Slide 74: Ballard in China
Guangzhou Ballard Power Systems Co., Ltd • WFOE established 2017.01 • Operation center to support Chinese customers, licensees, and JV partners Ballard in China Weichai Ballard Hy-Energy Technologies Co., Ltd. • 51:49% JV established 2018.11 • Exclusive manufacturer of FCvelocity®-LCS FC stacks and
Slide 75: Strategic Collaboration with Weichai Power
Strategic Collaboration with Weichai Power Established in 2018 OEM affiliates Shandong Jiangsu Zhongtong Bus Holding Yangzhou Yaxing Motor Bus, coach, logistics Coach truck & trailer Coach & bus • Global employees: 90,000 Shandong China National Heavy Duty Fujian Truck Group Xiamen Feng Tai Bus & Co
Slide 76: Weichai Ballard Hy-Energy Technologies (WBJV)
Weichai Ballard Hy-Energy Technologies Co. Ltd. (WBJV) • Located at Weifang, China • GIGA SHANDONG ONE o Floor space: 225,000 sq ft. o Certification: IATF16949; LC720161 o Capacity: 34,000 stacks (2GW equivalent) ▪ 20,000 modules • Exclusive licensed manufacturer of LCS fuel cell stacks and LCS-base
Slide 77: Weichai Ballard Technical Center
Weichai Ballard Technical Center Joint technology & product development teams Access to world class testing & evaluation capabilities • 115 engineers (mechanical, electrical, controls, H2 safety) • Full array of stack and module test stations • 4 module development programs (45kW to 150kW) • Complet
Slide 78: First Batch of Local Modules in Operation
First Batch of Local Modules in Operation LCS-based 宇通客车 Yutong Bus 重汽豪沃 Sinotruk Howo 亚星客车 Asiastar Bus WEF60 module • Over 100 modules built and commissioned • Integrated in 4 bus and 1 truck platforms • FC buses operating in 3 public transit routes 中通客车 Zhongtong Bus 陕重汽 Shanxi Sinotruk Power to
Slide 79: Ballard Technology Powering ~45% of FCEVs in China
Ballard Technology Powering ~45% of FCEVs in China Today Vehicle OEMs • 17 OEMs • 3,250 vehicles • 42 million kilometers 22% 44% 7-10M Bus 云南五龙 10-12M Bus 9% System Integrators 7-7.9T Truck 8-9T Truck 25% Power to Change the World Investor and Analyst Day 2020 / September 29 79
Slide 80: Ballard Technology Inside MIIT-Certified Vehicles
Ballard Technology Inside 65 MIIT- Certified Vehicles Power to Change the World Investor and Analyst Day 2020 / September 29 80
Slide 81: 1,030 buses deployed
Weifang Liaocheng Fuel Cell Buses powered by Ballard • Over 1,030 buses deployed • 7 different bus OEMs • Operations in > 10 cities Yunfu Yancheng • Vehicle sizes: 8.5M, 9M, 10.9 M, 12M • Over 13m kilometers in service Jinan Foshan Power to Change the World Investor and Analyst Day 2020 / September
Slide 82: 2,220 trucks deployed
Fuel Cell Trucks Zhongshan Dongguan powered by Ballard • Over 2,220 trucks deployed • 6 different truck OEMs • Operations in > 20 cities Shenzhen Shanghai • Vehicle sizes: 7.5T to 9T • Over 29m kilometers in service • Multiple strong end-users Foshan Shanghai Guangzhou Power to Change the World Inve
Slide 83: Fuel Cell Tram
Foshan, China Fuel Cell Tram powered by Ballard • FIRST commercial tram line worldwide • Tram OEM: CRRC Qingdao Sifang • Route: 17.4km, 20 stops • Maximum Passenger Capacity: 394 persons • Maximum Range: 125km • Over 91,451 kilometers in service (since Dec-2019) Power to Change the World Investor an
Slide 84: Emerging Opportunities powered by Ballard
Emerging Opportunities powered by Ballard • Mining trucks • Forklifts • Passenger cars • Marine vessels Power to Change the World Investor and Analyst Day 2020 / September 29 84
Slide 85: Looking to the Future
Looking to the Future…. • China will continue to be a dominate force in commercialization of FCEVs o World’s largest commercial vehicle market o Strong government support with ambitious roadmap targets • Ballard has contributed significantly to early Heavy- and Medium-Duty Motive demonstrations in m
Slide 86: Europe Market
Europe Market Jesper Themsen President & CEO, Ballard Power Systems Europe A/S Oben Uluc Director of Sales – EMEA Power to Change the World Investor and Analyst Day 2020 / September 29 86
Slide 87: Europe is at the Forefront of Implementing Green Hydrogen
Europe is at the Forefront of Implementing Green Hydrogen Production at Scale • Green Deal includes climate neutral goal by 2050 €750b “Green Recovery” plan • Hydrogen strategy with 40GW of green hydrogen production Policies and funding • Green transition package • Hydrogen forms a key pillar of sup
Slide 88: Ballard is Growing in Europe
Ballard is Growing in Europe to Support Significant Market Opportunities European HQ • European HQ in Denmark Service Center Sales Representation Production • 80 dedicated employees Engineering Deployment sites • 18 years in Europe • Presence in Germany, UK, France and Norway • Service centers in De
Slide 89: European Cities Have Committed to Zero-Emission Buses
European Cities Have Committed to Zero-Emission Buses • Low emission zones are being deployed across Europe • Procurement of new buses could reach 66% of ZEB by 2030 • 10 of the largest European cities have committed to buy 100% Zero Emission Buses from 2025 • UK government announced first “hydrogen
Slide 90: European FCEB Fleets Growing Rapidly
European FCEB Fleets Growing Rapidly 25,000 FCEBs estimated by 2030 ✓ 225 FCEBs powered by Ballard are in revenue service or contracted at 17 European Cities ✓ 848 additional FCEBs are in planning phase ✓ Ballard market share > 80 % ✓ Up to 100,000 ZEB will be deployed in next 10 years Power to Chan
Slide 91: Ballard's partners are bringing more FCEB models to market
Ballard’s partners are bringing more FCEB models to market Power to Change the World Investor and Analyst Day 2020 / September 29 91
Slide 92: Truck Emission Reduction Requirements Now In Place
Truck Emission Reduction Requirements Now In Place • OEMs will be required to cut CO2 emissions from new trucks on average by: o 15% from 2025 o 30% from 2030 compared with 2019 levels • Regulations expected to be expanded to buses in 2022 Fuel cell technology is needed to meet regulations Power to
Slide 93: Ballard Strategy in Europe
Ballard Strategy in Europe 100,000 fuel cell trucks estimated by 2030 Participate in FC trucks Product operation testing demonstration projects Field data collection Alliance to develop Foster partnerships with Improve product integration and produce fuel cell European OEMs and Tier 1 Product indust
Slide 94: Demand Growing for Hydrogen Passenger Trains
Demand Growing for Hydrogen Passenger Trains Operating on Non-Electrified Routes • Demand in Germany, UK, France, Italy, Austria and Netherlands forecast to reach 1,000 trains by 2030 • “Hydrogen Multiple Unit trains can potentially replace 30% of diesel volumes as the most market-ready application
Slide 95: Strategic Partnerships Being Developed for Rail
Strategic Partnerships Being Developed to Demonstrate Technology & Secure Market Access REGIONAL PASSENGER TRAINS • GERMANY ✓ Development of 200kW Fuel Cell Project for Siemens Mireo Plus H Train ✓ Siemens Mobility has begun bidding for hydrogen train projects in Germany • UNITED KINGDOM ✓ HydroFLEX
Slide 96: Zero-emission requirements coming to the marine industry
IMO phasing-out GHG: 50% by 2050 Norway protecting heritage fjords: Zero-emission 100% requirements are zero-emission by 2026 coming to the marine industry Europe EMSA to cut CO2 50% by 2050 Power to Change the World Investor and Analyst Day 2020 / September 29 96
Slide 97: Gaining Marine Experience & Building Partnerships
Gaining Marine Experience & Building Partnerships • Development of MW scale systems for cruise ships with ABB • HySeas III, the world’s first sea- going renewables-powered ferry • H2PORTS project to facilitate hydrogen power at Europe’s ports • FLAGSHIPS project to power: o Norled ferry in Norway o
Slide 98: Ballard is Investing in the Emerging Marine Market
Ballard is Investing in the Emerging Marine Market • Estimated 2,000 MW opportunity by 2030 • Marine Center of Excellence established in Denmark • FCwave™ 200kW product launched in September 2020 Power to Change the World Investor and Analyst Day 2020 / September 29 98
Slide 99: California Market
California Market Nicolas Pocard Director of Marketing Power to Change the World Investor and Analyst Day 2020 / September 29 99
Slide 100: California is Leading the Move Towards Hydrogen Mobility
California is Leading the Move Towards Hydrogen Mobility With Strong Regulations Now In Place • Executive order directing that all new cars and passenger trucks sold in California be ZEV by 2035 • • 8,475 fuel cell cars on the road • 48 fuel cell buses in service • More than 20 trucks in operation o
Slide 101: Zero-Emission Bus Mandate
Zero-Emission Bus Mandate Innovative Clean Transit Regulations • 25% new purchases of ZEBs by 2023; 50% by 2025 • Beginning in 2029, 100% of new bus purchases must be ZEBs • By 2040, all 10,000 transit buses in California to be ZEBs Innovative Clean Transit Regulations Power to Change the World Inve
Slide 102: Ballard is the Market Leader in California
Ballard is the Market Leader in California • 37 buses in operation at OCTA, AC Transit & Sunline • 350 mile range tested in operation at AC transit • >97% availability of FC system in 2020 • New Flyer (40ft &60ft) and Eldorado (40ft) FTA Altoona tested • 95% market share (new FCEBs since 2010) “The
Slide 103: Hydrogen infrastructure cost per vehicle decreases with fleet size
ICT planning studies confirm that, as fleet size increases the cost of hydrogen infrastructure per vehicle decreases Agency FCEB BEB Foothill Transit $133k/bus, 30 buses $322k/bus, 30 buses Long Beach $108k/bus, 125 buses $209k/bus, 100 buses AC Transit $90k/bus, 200 buses $560k/bus, 530 buses Data
Slide 104: Foothill Transit's ICT study
12-year Lifecycle Cost Comparison $70,000,000 $60,000,000 Foothill Transit’s ICT study $50,000,000 demonstrates that the TCO of $40,000,000 FCEBs is lower than BEBs $30,000,000 $20,000,000 • Foothill Transit study compares the $10,000,000 cost of deploying 20 zero-emission buses on a 42-mile roundtr
Slide 105: Growing Demand for FCEBs
As a Result of ICT Planning, There is Growing Demand for FCEBs Number of FC buses 229 342 150 OCTA 130 SJ RTD Initial ICT plans submitted by GET transit agencies to CARB 110 Santa Monica NCTD show that 30% of all ZEBs 90 Omnitrans SunLine deployed will be fuel cell 70 Long Beach electric buses …. re
Slide 106: OCTA plans to transition 100% of its bus fleet to FCEBs
OCTA plans to transition100% of its 500+ bus fleet to FCEBs “The 100 percent FCEBs scenario showed a slightly lower overall cost than the mixed technology fleet given current vehicle, fuel, and support infrastructure pricing. …FCEBs offer an extended range and better match to OCTA’s current operatin
Slide 107: Sunline Transit fleet zero-emission by 2035
Sunline Transit fleet will be zero- emission by 2035, with 85% FCEBs • Sunline transit has been operating FCEBs since 2000 – now operating 16 FCEBs in one the hottest regions of the U.S. • The final fleet composition – 67 fixed FCEBs, 18 fixed route BEBs and 39 paratransit fuel cell vehicles – was d
Slide 108: Zero-Emission Truck Mandate
Zero-Emission Truck Mandate Advanced Clean Truck Regulations • Regulations begin 2024, by 2035 zero-emission truck/chassis sales must be: o 55% of Class 2b – 3 truck o 75% of Class 4 – 8 straight truck o 40% of truck tractor o And 100% for HD trucks by 2045 • This will represent 300,000 trucks sold
Slide 109: Ballard is partnering with industry leaders on fuel cell electric trucks
Ballard is partnering with industry leaders to develop & demonstrate fuel cell electric trucks Power to Change the World Investor and Analyst Day 2020 / September 29 109
Slide 110: Ballard well positioned to support heavy duty mobility in CA
• As market leader, Ballard is well position to support deployment of heavy duty mobility in CA • Renewable energy is the source for green hydrogen and is a new opportunity for fuel cell power generation • CA is leading adoption and is expected to showcase potential of the Hydrogen Economy for other
Slide 111: Panel Discussion
Panel Discussion Guy McAree - Moderator Dr. Kenneth J. DeWoskin, Ph.D., Bernd Heid Dr. David Hart, Director of Investor Relations Senior Advisor to Deloitte Senior Partner – McKinsey & Company Director – E4tech Ballard Power Systems Power to Change the World Investor and Analyst Day 2020 / September
Slide 112: Product Roadmap
Product Roadmap Dr. Kevin Colbow Vice President & CTO Power to Change the World Investor and Analyst Day 2020 / September 29 112
Slide 113: Agenda
Fuel Cell Technology Description and nomenclature, current status Product Portfolio Strategy AGENDA Technology evolution to meet market needs Product Focus Cases Product roadmaps for bus and truck applications Power to Change the World Investor and Analyst Day 2020 / September 29 113
Slide 114: PEM Fuel Cell Technology
PEM Fuel Cell Technology • Solid state power generator • High efficiency • Zero-emission • No toxic materials • Fuel: air & hydrogen Power to Change the World Investor and Analyst Day 2020 / September 29 114
Slide 115: Ballard Technology Nomenclature
Ballard Technology Nomenclature Membrane Electrode Assembly (MEA) Stack Anode gas diffusion layer (GDL) Anode catalyst layer Catalyst coated membrane (CCM) Membrane Cathode catalyst layer Cathode gas diffusion layer Stack Array and Balance of Plant (BoP) Power Module Power to Change the World Invest
Slide 116: Vehicle System Boundary Definitions
Vehicle System Boundary Definitions Fuel Cell Stack Current Ballard Scope of Supply H2 Storage Radiator Compressor Humidifier Drive Motor FC Module Hydrogen Recirculation Blower (HRB) Balance of Plant* Drive Inverter Cooling Pumps Valves HV Battery DC/DC Converter Pressure Piping Regulation * Ballar
Slide 117: Comprehensive Range of Fuel Cell Products
Comprehensive Range of Fuel Cell Products to Address Multiple Applications Product Line Applications Products Low Low Fuel cell MEAs and components bipolar plates All applications Air and liquid Fuel cell Level of integration cooled stacks stacks from 400 W to Motive (buses, trucks, forklifts, cars)
Slide 118: Product Innovations Achieve Performance & Lifecycle Cost Improvements
Product Innovations Achieve Significant Performance & Lifecycle Cost Improvements Current generation FCmoveTM product improvements Power to Change the World Investor and Analyst Day 2020 / September 29 118
Slide 119: Product Portfolio Strategy
Product Portfolio Strategy • Products for a range of motive applications target improvements in these areas – o High power “Building Blocks” for scalable power up to 450 kW o Cost reduction o Power density o Fuel efficiency o High temperature operation FCgen®-HPS high- performance fuel cell stack Po
Slide 120: Evolution of Stack Technology Attributes
Evolution of Stack Technology Attributes 2020 2021 2024 Low cost, Bi-polar Plate Assembly 1.4 mm 1.25 mm • Market requirements Thin, Low cost, Durable, High Membrane manufacturing volumes require stack attribute 2.2 A/cm2 improvements MEA Performance 1.8 A/cm2 105 C • Technology will be 90 C bundl
Slide 121: Technology Advancements Demonstrate Next-Gen Performance
Technology Advancements Demonstrate Next-Gen Fuel Cell Performance 18% increase in power density at 700 mV 23% increase in power density at 600 mV Design meets >25,000 hours durability Current Generation Stack LCS-M1 Next Generation Stack LCS-M2 Power to Change the World Investor and Analyst Day 202
Slide 122: Ballard Motive Stack Product Family
Ballard Motive Stack Product Family A family of high power density stacks to cover the full range of bus, truck, rail and marine applications Current • High power density plate in development generation for M, H and X stacks FCgen LCS-M LCS-M Ballard Stacks First • High durability, lower cost MEA Ge
Slide 123: Ballard Motive Stack Product Roadmap
Ballard Motive Stack Product Roadmap Technology & Product Limited Prototype Product Next Gen Development Power to Change the World Investor and Analyst Day 2020 / September 29 123
Slide 124: Critical Component Development: Catalyst
Critical Component Development Catalyst Content Catalyst reduction is addressed through several Ballard engages in significant collaborative research avenues, with a focus on lifecycle cost to feed into future products Example: The Development of Low- Catalyst Current Cost, High Performing and Robus
Slide 125: Critical Component Development: Bi-Polar Plates
Critical Component Development Bi-Polar Plates Ballard’s carbon plates provide: 35% Reduction • Plate life exceeds durability requirements of >30,000 h • Eco-footprint - Plates are re-used • Lowest cost at all volumes 9SSL LCS LCS HPS Competitor’s M1 M2 metal auto stack Medium/Heavy Duty Vehicles Li
Slide 126: Bus Module Market Requirements
Bus Module Market Requirements • Expansion of product offerings across bus applications • Industry leading durability Power to Change the World Investor and Analyst Day 2020 / September 29 126
Slide 127: Bus Module Product Roadmap
Bus Module Product Roadmap Range of Power Levels to Serve Many Applications Power to Change the World Investor and Analyst Day 2020 / September 29 127
Slide 128: Truck Module Market Requirements
Truck Module Market Requirements • Range of power levels • High fuel efficiency ensures low total cost of ownership (TCO) Power to Change the World Investor and Analyst Day 2020 / September 29 128
Slide 129: Truck Module Product Roadmap
Truck Module Product Roadmap Power from 40 to 450 kW to Cover all Medium and Heavy-Duty Truck Applications * 450 kW power range expected to be addressed with next generation of truck products, to be developed in partnership with MAHLE Power to Change the World Investor and Analyst Day 2020 / Septemb
Slide 130: Product Cost Reduction Strategy
Product Cost Reduction Strategy Dr. Lee Sweetland Director of Advanced Manufacturing Power to Change the World Investor and Analyst Day 2020 / September 29 130
Slide 131: Competitive Positioning
Competitive Positioning In the past 10-years, with limited production volume, FCEV price (e.g. transit bus) has been 1 reduced ~60% …. primarily driven by innovations in technology and products. 2 3 . Power to Change the World Investor and Analyst Day 2020 / September 29 131
Slide 132: 60% reduction in FCEB price over past 10 years
Fuel Cell Competitive Positioning 60% reduction in FCEB price over past 10-years FCEB Price Key Drivers: (€) ✓ Improvements in technology and 1.6M products led to ~60% FCEB cost reduction in past 10-years, along with ~50% service & maintenance cost 1.4M reduction in past 5-years ✓ Further lifecycle
Slide 133: Competitive Positioning
Competitive Positioning 1 FCEBs currently offer TCO parity with BEBs for some use cases …. FCEVs are projected to 2 be less expensive to run than BEVs and ICE vehicles for a range of applications within 10- years. 3 . Power to Change the World Investor and Analyst Day 2020 / September 29 133
Slide 134: ~3 years Away From Economic Viability of FCEBs in Europe
~3-years Away From Economic Viability of FCEBs in Europe, Without Subsidies Source – Deloitte-Ballard white paper “Fueling the Future of Mobility: Hydrogen and fuel cell solutions for transportation”, January 2020 Bus TCO Outlook in Europe Bus TCO Outlook in China (unit: USD/per 100 km) (unit: USD/p
Slide 135: Expected impact of volumes on fuel cell system lifecycle cost
Competitive Positioning Expected impact of increased volumes on fuel cell system lifecycle cost $1,600 FCEB Ballard product $1,400 development program is TCO parity with aligned with DoE BEB (limited subsidy) targets, at volume $1,200 FC TCO parity with BEB (no subsidy) Truck $1,000 Cost TCO parity
Slide 136: Competitive Positioning
Competitive Positioning 1 2 With a scale-up in production and planned additional product innovation, Ballard anticipates 3 further reducing stack cost 70% by 2024, and similar reductions on the system as volumes grow. Power to Change the World Investor and Analyst Day 2020 / September 29 136
Slide 137: System Cost Breakdown
System Cost Breakdown Stack Module/ BoP includes: Other System Stack ≈30% of • Air compressor System Cost • HRB • Humidifier BoP Stack • Metal casing BoP NOTE: For higher powered truck • Pumps use cases, the cost of stacks ≈60- • Sensors BoP ≈70% of 70% of system cost System Cost • Cabling • Air Fil
Slide 138: Ballard '3x3' Cost Reduction Plan
Labour Ballard ‘3x3’ Cost Reduction Plan Stack Hardware Based on 2020 LCS-M1 195-cell stack Plates MEAs Contribution to ‘3x3’ fuel cell STACK cost reduction project targeting >70% reduction Cost Reduction Engineering Design delivering MEA and Plate, performance and lifetime 41% improvements with low
Slide 139: MEA Cost Reduction
Labour Membrane Other MEA Cost Reduction Seal Catalyst Ballard’s MEA technology provides the highest durability in the market, thereby GDL reducing TCO. We are driving cost down by: Based on 2020 LCS-M1 MEA Engineering Design • Increasing unit cell performance (W/cm2) by up to 28% with next generati
Slide 140: Plate Cost Reduction
Plate Cost Reduction Ballard’s flexible graphite plate technology provides the lowest cost at low and high volume for bus and truck applications. Plate lifetime exceeds that of the vehicle, with no impact on MEA durability. We are driving down this cost curve by: Engineering Design • Advanced carbon
Slide 141: Fuel Cell Stack '3x3' Plan Timing Summary
Fuel Cell Stack: ‘3 x 3’ Plan Timing Summary Forecast Cost Impact Ballard Programs Engineering Design - Phase 2 LCS V2 • Power density increase in Next Gen stack 3 • Next generation flexible graphite plates • Cathode loading reduction Engineering Design - Phase 1 LCS V1.1 • Next generation membrane
Slide 142: System Cost Reduction: Air Compressor Cost
System Cost Reduction Expected impact of BoP cost reduction Major BoP component (Air compressor, HRB, Humidifier, Coolant Pump) cost reduction based on partnerships with Tier 1 suppliers, leveraging bus and Air Compressor Cost Reduction passenger car volumes XD 200kW Other Air Compressor Cost /kW BO
Slide 143: System Cost Reduction: BoP Cost
System Cost Reduction Expected impact of BoP cost reduction Low Volume Increasing Volume High Volume Hardware Machined Machined & Die cast Cast and Molded North America China China source Electrical Hand Built Hand Built Semi-Automated NA Source Mexico/China Mexico/China source Hoses Complex Hand Bu
Slide 144: Fuel Cell Cost Reduction Summary
Fuel Cell Cost Reduction Summary Volume growth, BoP industrialization, technology development PLUS sustainabilty SUSTAINABILITY VOLUME GROWTH Recycling and refurbishment Strategic partnerships to accelerate processes for minimum lifecycle cost industrial-scale fuel cell production & and maximum FCEV
Slide 145: Operations Update
Operations Update Sarbjot (Jyoti) Sidhu Vice President – Operations Power to Change the World Investor and Analyst Day 2020 / September 29 145
Slide 146: Operational Excellence 2023
Operational Excellence 2023 Power to Change the World Investor and Analyst Day 2020 / September 29 146
Slide 147: Environment, Health & Safety Systems (EHS)
Environment, Health & Safety Systems (EHS) • “Sending our people home safely at the end of each day” • Carbon Neutral by 2030 • Environmental management system certified to ISO14001 • Comprehensive response to COVID-19 Power to Change the World Investor and Analyst Day 2020 / September 29 147
Slide 148: Quality Systems
Quality Systems • Quality Systems certified to: o Automotive industry Standard – IATF 16949 o ISO 9001 o In progress for VDA (German Standard) • Lean Six Sigma (6σ) principles in our POWER guide continuous improvement o 6 Master Belts, 6 Black Belts, 21 Green Belts, 49 Yellow Belts Power to Change t
Slide 149: Global Manufacturing Capacity
Global Manufacturing Capacity Vancouver Capacity 2019 2020† ~2025‡ MEAs 1.0m 6.0m 10.2m Gigawatt Equivalent 0.24 1.66 2.90 Vehicle Equivalent* 2k 12k 20k Hobro HD Capacity 2019 2020 2023‡ Stack Assembly 2.6k 27k 27k FCmove™Module Assembly - 50 100 Gigawatt Equivalent 0.24 1.66 1.66 HD Module Assembl
Slide 150: 6x MEA Production Capacity Expansion
6x MEA Production Capacity Expansion • ~$20M investment made in MEA manufacturing technology to achieve 6x capacity increase • Demonstration of manufacturing unit operations for scale • Increased use of automation • In-line quality inspection and control with full part traceability 2021 • Driving up
Slide 151: 6x Bi-Polar Plate Production Capacity Expansion
6x Bi-Polar Plate Production Capacity Expansion • Weichai-Ballard JV investment in plate manufacturing will provide 7.4m plates/year, with space to double capacity • Cycle time reduced by over 50% • Next generation processes being developed for scale up of high power density flexible graphite plates
Slide 152: 6x Stack Assembly Production Capacity Expansion
6x Stack Assembly Production Capacity Expansion • Investments to provide annual capacity of: o 27k stacks/year in Vancouver o 34k stacks/year at WBJV* • In-line quality inspection and control late 2020 • Semi-automated process reducing cycle time by 50% * Based on 24-hour, 7 day/week operation Power
Slide 153: 6x Module Assembly Production Capacity Expansion
6x Module Assembly Production Capacity Expansion • Vancouver low volume FCmove™ line capable of 5k systems per year, expandable to 10k • Weichai-Ballard JV high volume FCmove™ line capable of 20k systems per year, expandable to 80k o High Volume 20k semi- automated line established • Quality improve
Slide 154: Production System
Production System • Advanced Automation Equipment & Process toward mass production o Real time monitoring of cycle time, downtime and first through yield; summarised using Overall Equipment Effectiveness (OEE) • Adoption of Industry 4.0, IoT technologies • Focus on KPI Metrics Power to Change the Wo
Slide 155: Supply Chain Strategy
Supply Chain Strategy Value Chain Integration, Accountability & Focus on Lowest TCO • Centrally negotiated global multi-year supply agreements for key components • Growing number of auto Tier 1 suppliers entering component market • Increased use of integrated systems to further improve supply chain
Slide 156: ESG & People
ESG & People Jan Laishley Vice President – Human Resources Power to Change the World Investor and Analyst Day 2020 / September 29 157
Slide 157: ESG Commitment
E S G ESG Commitment We issued our inaugural ESG Report in April 2020. The Company is committed to continued enhancement of ESG reporting. Power to Change the World Investor and Analyst Day 2020 / September 29 158
Slide 158: ESG Commitment: Carbon Neutral by 2030
E S G ESG Commitment Carbon Neutral by 2030 • Improving understanding of climate impacts of our products & operations • Reducing corporate & product carbon footprints • Reducing waste & energy consumption • Responsible production • Minimize waste in manufacturing • Monitoring / reducing GHG Emission
Slide 159: Environmental Commitments
E S G Environmental Commitments • Mission Carbon Zero Team • Completed GHG inventory (2017/2018) • Completed life cycle analysis for FCveloCity®-HD85 module and FCvelocity®-9SSL stack • Completed baseline assessments for 2017 and 2018 GHG emissions intensity; subsequently completed 2019 • Emission-r
Slide 160: Social Commitment – Our People
E S G Social Commitment – Our People Listen and Deliver Ballard 1) Corporate Culture Quality Always Values 2) Employee Value Proposition Inspire Excellence 3) Great Place to Work Row Together Own It Power to Change the World Investor and Analyst Day 2020 / September 29 161
Slide 161: Social Commitment – Our People
E S G Social Commitment – Our People Employee Value Proposition At Ballard, our culture is focused on our customer and rooted in innovation, safety, quality and a deep sense of pride and ownership. This is important to us – like really important! We are passionate about transforming the future of ze
Slide 162: Diversity & Inclusion
Diversity & Inclusion Power to Change the World Investor and Analyst Day 2020 / September 29 163
Slide 163: Social Commitment – Our People
E S G Social Commitment – Our People Focus & Key Initiatives • Employee Engagement • Leadership Effectiveness • Team Effectiveness • Training & Development • Mentoring • Wellbeing Power to Change the World Investor and Analyst Day 2020 / September 29 164
Slide 164: Social Commitment – Our People
E S G Social Commitment – Our People 773 Canada Europe 79 20 United States China 14* * Not including 180 at Weichai-Ballard joint venture Power to Change the World Investor and Analyst Day 2020 / September 29 165
Slide 165: Social Commitment – Our People
E S G Social Commitment – Our People In March 2020, Ballard was named to the Globe & Mail “Women Lead Here” list, which identifies 73 Canadian companies at the forefront of women in leadership positions Power to Change the World Investor and Analyst Day 2020 / September 29 166
Slide 166: Social Commitment – Our People
E S G Social Commitment – Our People Employee Engagement • Annual employee engagement survey o 95% completion rate • Results provide actionable insight on employee views and engagement Power to Change the World Investor and Analyst Day 2020 / September 29 167
Slide 167: Social Commitment – Our People
E S G Social Commitment – Our People Key Reasons for High Retention • Purpose driven - alignment with Vision, Mission & Values • Focus on People & Culture • Opportunity to Innovate • Career Growth & Development • Flexible Environment • Total Compensation Power to Change the World Investor and Analys
Slide 168: Governance Commitment
E S G Governance Commitment • Code of Conduct • Whistleblower Policy • Ethics and Anti-Corruption • Ethics and Our Supply Chain • Political Contributions • Board of Directors Power to Change the World Investor and Analyst Day 2020 / September 29 169
Slide 169: Governance Commitment
E S G Governance Commitment Metrics tracking and reporting in relation to the Ballard board of directors Power to Change the World Investor and Analyst Day 2020 / September 29 170
Slide 170: Our Team
Our Team….. Ballard is Powered by People Power to Change the World Investor and Analyst Day 2020 / September 29 171
Slide 171: Financial Review
Financial Review Tony Guglielmin Vice President & CFO Power to Change the World Investor and Analyst Day 2020 / September 29 172
Slide 172: Fuel Cell Industry Inflection Point
Fuel Cell Industry Inflection Point Revenue Scaffolding across four MHD Motive applications expected to create a significant growth ramp over this decade Graphics and values are illustrative only Power to Change the World Investor and Analyst Day 2020 / September 29 173
Slide 173: Current Order Backlog and Sales Pipeline
Current Order Backlog PLUS 50% YTD increase in sales pipeline PLUS in- house programs underpin significant revenue growth trajectory over next few years Graphics and values are illustrative only Power to Change the World Investor and Analyst Day 2020 / September 29 174
Slide 174: Longer Term
Longer Term Insight from Solar industry Power to Change the World Investor and Analyst Day 2020 / September 29 175
Slide 175: A Market Share Approach
Total Addressable HMD Motive Market = $130b* $14 billion A Market Share Approach 450,000 buses & coaches 100kW/bus • TAM = $130b (does not include other motive $100 billion applications – such as material handling, passenger cars, unmanned vehicles, off-road 4 million MHD trucks 200kW/truck vehicles
Slide 176: Sanity Check on Market Share Implication
“Sanity Check” on Market Share Implication • 2020 consensus revenue = $115m • 46% CAGR drives ~$5.2B* revenue in 2030 o Consistent with 20% Ballard share of fuel cell industry * Does not include other motive applications – such as material handling, passenger cars, unmanned vehicles, off-road vehicl
Slide 177: Gross Margin improvement
Gross Margin improvement from product cost and operational efficiencies Graphics and values are illustrative only Power to Change the World Investor and Analyst Day 2020 / September 29 178
Slide 178: Operating Expense
Operating Expense ... existing investment leveraging revenue scaling to reduce bottom line impact Graphics and values are illustrative only Power to Change the World Investor and Analyst Day 2020 / September 29 179
Slide 179: Profitability scaling with growth
Profitability scaling with growth Graphics and values are illustrative only Power to Change the World Investor and Analyst Day 2020 / September 29 180
Slide 180: Cash Reserves
Cash Reserves are sufficient to fund the business to positive earnings … current ATM enables fortification of balance of sheet Graphics and values are illustrative only Power to Change the World Investor and Analyst Day 2020 / September 29 181
Slide 181: Investment Thesis
Investment Thesis 1. Strong Policy Complex is Developing Underpinned by MegaTrends • Decarbonization; air quality improvement; electrification of vehicles 2. Large Attractive Addressable Markets • Business model leverage & diversification with TAMs totaling >$130b 3. Global Leadership Position in PE
Slide 182: Potential Catalysts
Potential Catalysts • Continued public policy support • Completion of advanced manufacturing program Investors should • Progress on product cost reduction plan watch for these • Progress at Weichai-Ballard JV potential catalysts • Progress with Mahle-Ballard collaboration over next 12-months • Furth
Slide 183: 2020 has been an unusual and challenging year
2020 has been an unusual and challenging year 184
Slide 184: Thank you
BALLARD Thank you
Ballard Power Systems — Investor Day (September 2020) on 6ix