Ballard Power Systems Inc. · TSX:BLDP
Ballard Power Systems — Investor Presentation (September 2011)
23 slides from Ballard Power Systems's investor presentation, Sep 7, 2011
Slide 1: Investor Presentation: Smarter Solutions for a Clean Energy Future
September 7, 2011 Smarter Solutions for a INVESTOR PRESENTATION Clean Energy Future © 2011 BALLARD POWER SYSTEMS, INC. ALL RIGHTS RESERVED.
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation contains forward-looking statements, including: estimated revenue; cash operating costs; gross margins; product cost reductions; adjusted EBIDTA, funding requirements; market growth projections; and expected product shipments. These forward-looking statem
Slide 3: Who We Are
Who We Are … Acknowledged leader in design & manufacture of PEM fuel cells - Clean, zero-emission power technology Expertise in fuel cell stacks stacks, system integration integration, fuel processing Successfully transformed since 2007 – - From long-term, high cost auto fuel cell technology d
Slide 4: PEM Fuel Cell Market Opportunity
PEM Fuel Cell Market Opportunity Current Focus PEM ADDRESSABLE MARKETS 0°C Backup Power 600°C-1200 SOFC $1B+ (1kW-5kW for emperature Increasing heat requirements management High MCFC (Fuel Cell Energy) wireless telecom) PAFC (United Technologies) 120°C Distributed Di t ib t d Te 60°C-1 PEMFC $3B+ Lo
Slide 5: PEM Fuel Cell Technology
PEM Fuel Cell Technology PEM CHARACTERISTICS Compact & scalable Fuel flexibility Efficient, reliable & safe Fast start-up & low temperature Rapid responses to changes g in p power needs Durable across wide range of duty cycles Clean … emissions are electricity, l t i it water t & heat
Slide 6: Ballard's Competitive Advantage: Unrivalled IP Portfolio
Ballard’s Competitive Advantage Unrivalled IP Portfolio Extensive R&D development work over past 15 years – including joint development programs with Daimler & Ford • Over O 2,000 2 000 patents / applications li i owned d and d li licensed d iin strategic i areas • MEA designs • Plate designs • Ca
Slide 7: Product Portfolio
Product Portfolio Fuel Cell Stacks Power P 2 2-8kW 8kW Power P 4 4-20 20 kW Power 500W-2kW Operating life 20,000- Operating life 8,000- Power 100 kW Operating life 2,500-4,000 30,000 hours 12,000 hours Operating life >5,000 hrs hours ASP $2,800-11,200/ ASP $2,000-10,000/ Contra
Slide 8: Backup Power Market
Backup Power Market Focus on backup power for wireless telecom industry Compelling value proposition driven by extended runtime & reliability at competitive lifecycle cost • Payback in under 2-years Dual channel access 1. Direct via Dantherm Power Fuel Cell Stacks & Systems y Network / Service
Slide 9: Backup Power Case Study
Backup Power Case Study FCgenTM‐1020ACS fuel Ballard SI and direct Fuel cell systems installed cell stack channel at off‐grid sites Low cost, air cooled Integration of fuel cells Used for primary power product facilitates into complete systems until the grid is simplified system design c
Slide 10: Backup Power Customers
Backup Power Customers Dantherm Power systems providing continuous >200 ElectraGenTM systems power at off-grid p g sites in deployed with Hutchinson Canada … being converted in Indonesia to backup once grid is connected Dantherm Power systems Emerging E i systems t deployed in 123 TETRA integrator b
Slide 11: Distributed Generation Market
Distributed Generation Market Focus on applications with available low-cost hydrogen in markets with FIT and/or SGIP support CLEARgenTM ‘Levelized Cost of Energy’ ~$0.06-$0.13 per kilowatt hour (reflecting available Federal and California government incentives) Dual channel access 1. Direct vi
Slide 12: Distributed Generation Case Study
Distributed Generation Case Study Complete CLEARgen™ system powered by Fuel cell system will convert by‐product FCgen®‐1300 fuel cell stacks hydrogen from bleach production into clean load‐following electricity High efficiency, liquid cooled product with 20,000 hour lifetime Electricity will
Slide 13: Distributed Generation Customers
Distributed Generation Customers 1MW fuel cell system for System integrator will peak load management at produce a 1MW generator for Eastlake, Ohio facility deployment in Singapore Fuel cell system will convert 1MW fuel cell system to by-product hydrogen from provide peak power and heat bleach produ
Slide 14: Material Handling Market
Material Handling Market Focus on battery replacement in forklift trucks in North American high volume distribution centres & factories Value proposition driven by productivity gains over battery-powered forklifts • Across Class 1-to-3 trucks, installed base and new shipments • Payback less than
Slide 15: Material Handling Case Study
Material Handling Case Study FCvelocityyTM‐9SSL GenDrive fuel cell Leadingg North 85 GenDriveTM fuel cell stack systems for forklifts American forklift forklifts deployed at OEM manufacturing plant Highly durable Improved in South Carolina product, based on productivity, lower Independ
Slide 16: Material Handling – Plug Power Customers
Material Handling – Plug Power Customers Replaced entire Class 3 sit- New distribution centre in down counterbalanced lift Calgary employs almost 100 truck fleet at Texas facility Pl Plug Power P G D i GenDrive units; it with 32 Plug Power savings of $150k annually GenDrive units expected Houston wa
Slide 17: Bus Market
Bus Market Focus • Government supported zero zero-emission emission transit programs • South America, USA, Europe More than 375,000 new buses manufactured annually … emerging segment of clean transit alternatives Channels to market • Market access through bus OEMs and system integrators Bus Sy
Slide 18: Bus Case Study
Bus Case Study FCvelocityTM‐HD6 fuel Bus OEM with SI Transit authority in Oslo, cell power module capabilities Norway Balance‐of‐plant Reputation for innovation Public & government components p fullyy in the transit industryy pressure to improve p p air integrated quality, reduce GHG 4
Slide 19: Bus Customers
Bus Customers CONSORTIUM PARTNERS: TRANSIT AGENCIES: Global leader in bus hybrid 20 fuel cell buses – world’s drive propulsion systems … g largest fleet – operating p g in used by transit agencies in Whistler, BC U.S., Canada & UK 8 fuel cell buses will operate London’s Covent Major European systems
Slide 20: Path to Profitability
Path to Profitability REVENUE: GROSS MARGIN: $100 $84.5 16% $75 $65.0 13% $46.7 $M % $50 $25 $0 0% 2009 2010 2011 2009 2010 2011F Minimum Material Products Contract Automotive Fuel Cell Products Priority for continued margin improvement in 2011 … biggest Guidance >30% in 2011 gains expected in s
Slide 21: Path to Profitability
Path to Profitability CASH OPERATING COST BASE: ADJUSTED EBITDA: 80 ~$75 $0 2009 2010 2011F 60 ($15) $41.9 <$40 ($15.6) $M ($M) 40 Measures operating expenses Measures EBITDA adjusted for excluding stock-based compensation expense, ($30) ($26.0) stock-based compensation, transactional gains and loss
Slide 22: Path to Profitability
Path to Profitability LIQUIDITY & CASH RESERVES: Solid liquidity position: cash reserves of $51.6M at June 30th Focused on maintaining strong liquidity • Secured C$10M bank line in Q2 to assist in financing short-term working capital requirements Cash Used in Operating Activities - • Q2 high a
Slide 23: Wrap-Up – Investment Highlights
Wrap-Up – Investment Highlights Multi-market growth focus & first-mover strategy Technology & product leadership in PEM fuel cells Optimized cost base (<$40M cash opex base) Aggressively moving towards profitability Strong liquidity position ($51.6M cash reserves at June 30th) Management track recor
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