Slide 1: Q2 2019 Results Conference Call
Q2 2019 Results Conference Call August 1, 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: Overview
Overview • Clear signals that hydrogen & fuel cell industry is at a defining stage of evolution • Q2 results in-line with expectations o Revenue $23.7M o Gross Margin 23% o Adjusted EBITDA ($5.0)M o End-Q2 Cash Reserves $163.7M • Reiterating full-year 2019 Outlook Power to Change the World® 4 BALLAR
Slide 5: The Changing Fuel Cell Landscape
The Changing Fuel Cell Landscape • Key global megatrends, including electrification of mobility, are impacting the fuel cell sector • Favorable policy environments in China and Europe • In June, International Energy Agency (IEA) issued report, “The Future of Hydrogen” Power to Change the World® 5 BA
Slide 6: The Changing Fuel Cell Landscape (Cont'd)
The Changing Fuel Cell Landscape (Cont’d) • Major transportation players are forming partnerships in the fuel cell industry • Notable recent transactions: o Q4 2018 – Weichai Power partnered & invested in Ballard o Q2 2019 – Bosch licensed fuel cell technology from PowerCell o Q2 2019 – Cummins made
Slide 7: H2Bus Consortium
H2Bus Consortium • Members working to deploy 1,000 FCEBs plus infrastructure in Europe, by 2023 o Ballard, Nel Hydrogen, Everfuel, Wrightbus, Hexagon Composites, Ryse Hydrogen o First 600 FCEBs supported by €40M in CEF funding, with 200 to be deployed in each of Denmark, Latvia, U.K. • Expected to b
Slide 8: Other Progress in Europe
Other Progress in Europe • Multiple orders for modules under JIVE o Q2 & Q3 Wrightbus orders, 20 modules for London buses plus 15 modules for Aberdeen buses o Q3 Solaris order, 12 modules for Bolzano buses o Ballard has now secured orders for 92 modules under JIVE • Collaboration with ABB in Flagshi
Slide 9: Momentum in China
Momentum in China • Mr. Wan Gang, China’s father of electric vehicles – “We need to move further toward fuel cells.” • MIIT – “Hydrogen fuel cell vehicles will coexist and complement fully electric (battery) vehicles…..” • ‘Yangtze River Delta Hydrogen Corridor Project’ announced o 20 x H2 expresswa
Slide 10: FCEV Progress in China
FCEV Progress in China • 3,700 FCEVs o Approximately 40% buses, 60% commercial trucks o Ballard technology inside 66% • H2 refueling stations: o 31 in service & 36 under construction • Ballard-powered HD Motive vehicles have ~11M km on-road experience in China, and ~25M km worldwide (incl. China) Po
Slide 11: Q2 & YTD Revenue and Gross Margin
Q2 & YTD Revenue and Gross Margin REVENUE GROSS MARGIN $46.5M $39.7M 2019 36% 2018 34% $26.4M $23.7M 23% 20% Q2 YTD Q2 YTD • Q2 2019 Revenue ‐11%, to $23.7M • Q2 2019 Gross Margin ‐13‐points, to 23% o ‐44% Power Products, to $9.9M o Reflects lower shipments of higher margin ‐52% Heavy Duty Motive,
Slide 12: Q2 & YTD Cash Operating Cost Base and Adjusted EBITDA
Q2 & YTD Cash Operating Cost Base and Adjusted EBITDA CASH OPERATING COST BASE * ADJUSTED EBITDA # $21.2M $17.7M Q2 YTD 2019 2018 $10.5M ($0.8)M $8.4M ($4.6)M ($5.0)M Includes Q2 share of losses in joint venture investments in China of ($2.9M) Includes YTD share of losses in joint ($13.6)M Q2 YTD ve
Slide 13: Liquidity
Liquidity • Q2 2019 Cash Provided By Operating Activities increased to $1.7M o Reflects $2.8 million working capital inflows, partially offset by cash operating losses of ($1.1) million $163.7M • End‐Q2 2019 cash reserves of $163.7M, 2019 down $1.3M from the prior quarter 2018 $35.2M END‐Q2 CASH RES
Slide 14: Order Backlog
Order Backlog End‐Q2 2019: Order Backlog1 of $211.6M and 12‐Month Order Book2 of $126.7M ORDER Order Backlog Orders Received Orders Delivered Order Backlog BACKLOG at End‐Q1 2019 in Q2 2019 in Q2 2019 at End‐Q2 2019 Total Fuel Cell $188.4M $46.8M $23.7M $211.6M* Products & Services * Does not reflec
Slide 15: Q&A
Q&A Power to Change the World® 15 BALLARD.COM
Slide 16: Power to Change the World ®
Power to Change the World® 16 BALLARD.COM