Slide 1: Q1 2015 Results Conference Call
Page 1 Q1 2015 Results Conference April 29, 2015 Call
Slide 2: Ballard Management
Page 2 Ballard Management Randy MacEwen President & CEO Tony Guglielmin CFO
Slide 3: Forward Looking Statements
Page 3 Forward Looking Statements 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 expected sales and pro
Slide 4: Year-to-Date Progress – Power Products
Page 4 Year-to-Date Progress – Power Products • Telecom Backup Power o Met all outstanding conditions of New York City Fire Department for certification of ElectraGen™-ME system for rooftop deployments • Material Handling o Significant growth in stack shipments to Plug Power
Slide 5: Year-to-Date Progress – Power Products (Cont’d)
Page 5 Year-to-Date Progress – Power Products (Cont’d) • Development Stage o Van Hool awarded funding for 21 buses in Europe o Deals to supply 10 power modules for U.S. buses and 8 for buses in China • Progress in China tram market o Demonstration of first-ever fuel cell tram … collaboration with CS
Slide 6: Year-to-Date Progress – Technology Solutions
Page 6 Year-to-Date Progress – Technology Solutions • Landmark Technology Solutions transaction with Volkswagen Group o Surfaced value from IP portfolio, in combination with intellectual capital in specialized engineering services o Transaction underpinned positive Net Income in Q1 of $7.0M o Streng
Slide 7: Q1 2015 Top Line
Page 7 Q1 2015 Top Line POWER PRODUCTS • Revenue of $4.9M, -2% year-over-year, with a shift in product mix o Telecom Backup Power revenue decreased, to $0.6M Expected decline due to continued delays in orders o Material Handling revenue increased 29%, to $2.6M o Revenue from Development Stage Mark
Slide 8: Q1 2015 Top Line (Cont’d)
Page 8 Q1 2015 Top Line (Cont’d) TECHNOLOGY SOLUTIONS • Revenue decreased 51%, to $4.4M due to strong Q1 2014 o Q1 2014 included licensing revenue from contracts in China o Q1 2014 reflected cadence of revenue from Volkswagen engineering services contract weighted toward first half of year
Slide 9: Q1 2015 Revenue and Gross Margin
Page 9 Q1 2015 Revenue and Gross Margin Revenue (millions) Gross Margin (%) 80 25 27% 70 $68.7 60 20 $61.3 $55.8* 50 15 17% 40 $43.7 15% $37.7 13% 30 10 11% 20 5 10 $9.3 0 0 2011 2012 2013 2014 Q1 2015 2011 2012 2013 2014 Q1 2015 • Q1 2015 Revenue of $9.3M • Q1 2015 Gross Margin of 11% • Down year-o
Slide 10: Q1 2015 Cash Operating Cost Base and Adjusted EBITDA
Page 10 Q1 2015 Cash Operating Cost Base and Adjusted EBITDA Cash Operating Cost Base* (millions) Adjusted EBITDA* (millions) 2011 2012 2013 2014 Q1 2015 45 0 40 ($5.1) 35 -5 $37.0 ($8.2) 30 $30.3 -10 25 $28.1 $26.4 20 -15 15 ($18.6) 10 -20 ($22.1) 5 $7.9 0 -25 ($27.9) 2011 2012 2013 2014 Q1 2015 -3
Slide 11: Liquidity
Page 11 Liquidity • Q1 2015 Cash Used By Operating Activities improved 19%, to ($5.4)M • End-Q1 2015 cash reserves of $47.6M o Bolstered in Q1 by ~$29M in net proceeds from Technology Solutions transaction with Volkswagen Group
Slide 12: Upcoming Events
Page 12 Upcoming Events • National Fuel Cell Symposium o Sacramento, CA – Thursday, May 7th • Cowen Technology, Media and Telecom Conference o New York, NY – Wednesday/Thursday, May 27/28th • Stifel Industrials Conference o New York, NY – Tuesday, June 16th • Ballard Annual General Meeting o Vancouv
Slide 13: Planned 2015 Deliverables
Page 13 Planned 2015 Deliverables • Securing at least 2 new key Telecom Backup Power accounts • Continuing to grow Material Handling business • Growing Bus module orders for U.S., Europe and China • Securing at least one new MW-scale Distributed Generation project • Growing Power Product sales backl
Slide 14: Planned 2015 Deliverables (Cont’d)
Page 14 Planned 2015 Deliverables (Cont’d) • Continuing to grow the Technology Solutions business o Including at least one new auto OEM customer • Completing build-out of Commercial sales team • Investing in go-to-market strategy & marketing • Improving financial performance o Revenue growth o Gross
Slide 15: Q1 2015 Conference Call Q&A
Page 15 Q1 2015 Conference Call Q&A
Slide 16: Q1 2015 Results Conference Call
Page 16 Q1 2015 Results Conference April 29, 2015 Call