Ballard Power Systems Inc. · TSX:BLDP
Ballard Power Systems — Q1 2019 Earnings Presentation
18 slides from Ballard Power Systems's earnings presentation, May 2, 2019
Slide 1: Q1 2019 Results Conference Call
Q1 2019 Results Conference Call May 2, 2019 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: Q1 Overview
Q1 Overview • $16.0M revenue; 14% GM; $165.0M end-Q1 cash reserves • $76.0M end-Q1 12-month order book, plus $44M agreement with Weichai- Ballard JV (announced subsequent to Q1), and sales pipeline provide strong set-up for 2019 back-half and 2020 Power to Change the World® 4 BALLARD.COM
Slide 5: Truck Opportunity
Truck Opportunity • Fuel cells proving an effective solution for zero-emission heavy & medium duty trucks • Massive truck market o 3.2M trucks sold globally in 2018, up 6% o Including 2.4M heavy duty trucks, up 9% • Significant amount of CO2 emitted by trucks, 30% of EU transportation total • EU res
Slide 6: China Update
China Update • Current estimates: o Now 2,500+ FCEVs deployed; Ballard technology inside ~70% o 24 x H2 fueling stations in operation & 37 being built • National BEV subsidies being reduced & local BEV subsidies eliminated • Progress re: collaboration with Weichai is significant & on-plan • $44M agr
Slide 7: Europe's Marine Sector
Europe’s Marine Sector • Reducing marine pollution is a high priority for the industry and port cities • UN IMO strategy to reduce marine GHG emissions by 50% of 2008 level, by 2050 • Fuel cell value proposition based on: design flexibility; extended range; TCO Power to Change the World® 7 BALLARD.C
Slide 8: Europe's Marine Sector (Cont'd)
Europe’s Marine Sector (Cont’d) • Participation in H2PORTS project, to facilitate transition of Europe’s ports to hydrogen & fuel cell technology • Initial project deployments planned at Spain’s Port of Valencia Power to Change the World® 8 BALLARD.COM
Slide 9: Europe's Marine Sector (Cont'd)
Europe’s Marine Sector (Cont’d) • Supply Agreement with Norled A/S to power ferry in Norway o 2 x 200kW next-gen modules o Ferry to begin operating in 2021 o Capacity of up to 299 passengers + 80 cars Power to Change the World® 9 BALLARD.COM
Slide 10: Europe's Marine Sector (Cont'd)
Europe’s Marine Sector (Cont’d) • Planning a Marine Center of Excellence (CoE) at Ballard facility in Hobro, Denmark • To design & manufacture heavy duty fuel cell modules for the marine industry • Planned to be operational by end-2019, with annual production capacity of 15+ MW of modules Power to C
Slide 11: North America Update
North America Update • New Flyer & ElDorado buses, powered by Ballard, have completed Altoona testing; available for commercial sale utilizing FTA funding • New Flyer 40-foot Xcelsior CHARGE H2 bus demonstrated range of 350 miles between refuelings for OCTA • Launch of FCair® 600 & 1200 watt fuel ce
Slide 12: Q1 Revenue and Gross Margin
Q1 Revenue and Gross Margin REVENUE GROSS MARGIN 33% $20.1M 2019 2018 $16.0M 14% Q1 Q1 • Q1 2019 Revenue ‐20% to $16.0M: • Q1 2019 Gross Margin ‐19‐pts to 14% due to: o ‐49% Power Products, to $6.3M o Shift to a lower overall margin product mix, ‐72% Heavy Duty Motive to $2.6M including lack of ME
Slide 13: Q1 Cash Operating Cost Base and Adjusted EBITDA
Q1 Cash Operating Cost Base and Adjusted EBITDA CASH OPERATING COST BASE * ADJUSTED EBITDA # $10.7M $9.3M Q1 2019 2018 ($3.8)M Q1 ($8.6)M • Q1 2019 Cash Operating Costs ‐13% to • Q1 2019: $9.3M due to: o Adjusted EBITDA ($8.6)M o Lower product development costs – as o Net Loss ($12.0)M resources wer
Slide 14: Liquidity
Liquidity • Q1 2019 Cash Used By Operating Activities increased 45% to ($10.5)M o Cash operating loss of ($5.7)M o Working capital changes of ($4.8)M $165.0M 2019 • End‐Q1 2019 cash reserves of $165.0M, 2018 +214% from $52.5M at end‐Q1 2018 $52.5M END‐Q1 CASH RESERVES Power to Change the World® 14 B
Slide 15: End-Q1 Order Backlog
End-Q1 Order Backlog* End‐Q1 2019: Order Backlog1 of $188.4M and 12‐Month Order Book2 of $76.0M ORDER Order Backlog Orders Received Orders Delivered Order Backlog BACKLOG at End‐2018 in Q1 2019 in Q1 2019 at End‐Q1 2019 Total Fuel Cell $194.8M $9.6M $16.0M $188.4M Products & Services 1 Order Backlog
Slide 16: 2019 Outlook Unchanged
2019 Outlook Unchanged Revenue $100M Full-Year Outlook Weichai‐Ballard JV agreement and sales pipeline will contribute $80M ~$76M to 2019 full‐year revenue ~$60M $60M $40M $20M $16M Power to Change the World® 16 BALLARD.COM
Slide 17: Q&A
Q&A Power to Change the World® 17 BALLARD.COM
Slide 18: Power to Change the World ® BALLARD.COM
Power to Change the World® 18 BALLARD.COM
Ballard Power Systems — Q1 2019 Earnings Presentation on 6ix