Slide 1: Q4 & Full Year 2018 Conference Call
Q4 & Full Year 2018 Conference Call March 7, 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: 2018 Fuel Cell Industry: An important year for the entire industry
2018 Fuel Cell Industry An important year for the entire industry • Governments continued to limit CO2 emissions • Corporate financings through strategic partnerships • Bloom Energy’s IPO • Fuel cell support throughout the automotive value chain Power to Change the World® 4 BALLARD.COM
Slide 5: 2018 Ballard Highlights
2018 Ballard Highlights Progress in positioning for market disruption • Moved toward 2019 launch of next-generation products • Signed strategic collaboration with Weichai Power • Extended HyMotion program with Audi to 2022 • Generated revenue of $96.6M, exceeding revised outlook Power to Change the
Slide 6: Key 2018 Industry Developments
Key 2018 Industry Developments 1) Acceleration of electrification theme 2) Recognition of FCEV value proposition in Heavy and Medium Duty Motive applications 3) Increased FCEV announcements and deployments 4) Growth of the Hydrogen Council 5) Initial stage of commercialization in China Power to Chan
Slide 7: 1) Acceleration of Electrification Theme
1) Acceleration of Electrification Theme Positive initiatives from government & industry • Growing acceptance of need for batteries, fuel cells, hybrids • More government programs • Mass transit & trucking fleet operators considering zero emission • McKinsey expects renewables to account for 50%+ of
Slide 8: 2) Recognition of FCEV Value Proposition
2) Recognition of FCEV Value Proposition Most attractive for BEV FCEV Weight (tons) Passenger ships 1,000 Trams & Ships Airplanes not applicable railways Trucks 100 Long-haul freight Airplanes Mining Int’l road masters Distributor – high payload Vans, small Long-haul 10 Distributor – low payload tru
Slide 9: 3) Increased FCEV Announcements: Fuel Cell Electric Buses
3) Increased FCEV Announcements Fuel Cell Electric Buses (FCEBs) • Ballard to power 40 buses in Germany under JIVE – U.K. cluster expected to be announced next • ElDorado & New Flyer buses passed Altoona testing • Significant announcements in China Power to Change the World® 9 BALLARD.COM
Slide 10: 3) Increased FCEV Announcements: Fuel Cell Electric Commercial Trucks
3) Increased FCEV Announcements (Cont’d) Fuel Cell Electric Commercial Trucks • Ballard is currently in trials with Kenworth (long-haul truck), UPS (delivery vans), Capacity (yard trucks) • Ballard now powering 300+ commercial trucks globally • Hyundai agreement for 1,000 trucks in Switzerland by 20
Slide 11: 3) Increased FCEV Announcements: Fuel Cell Electric Passenger Cars
3) Increased FCEV Announcements (Cont’d) (Cont’d) Fuel Cell Electric Passenger Cars • Multi-year extension of Ballard HyMotion contract with Audi • Hyundai ‘FCEV Vision 2030’ - Investing $6.7B by 2030 - Targeting annual production of 700k fuel cell systems Power to Change the World® 11 BALLARD.COM
Slide 12: 4) Hydrogen Council Growth
4) Hydrogen Council Growth Supporting widespread hydrogen availability • 16 founding members in 2017 with commitment to spend €1.4B annually • Now 53 important players in energy, transport & industry • 14 new members, including Weichai Power, Air Products, Cummins, Mitsubishi and Sumitomo Power to C
Slide 13: 5) Initial Commercialization in China
5) Initial Commercialization in China Weichai initiatives are indicative sign • Government support for H2 and fuel cells remains strong • Our estimates: 1,500 FCEVs have valid permits today; 75 FCEV models listed in MIIT Promotion Catalogue; 62 H2 stations operating or under construction Power to Ch
Slide 14: Ballard 2030 FCEV Vision
Ballard 2030 FCEV Vision • Further restrictions on ICEs in cities • Greater FCEV reliability & cost down • Large numbers of FCEVs operating • Deployment of purpose-built Material Handling equipment • Early commercial deployments of certain off-highway applications Power to Change the World® 14 BALLA
Slide 15: Q4 & FY Revenue and Gross Margin
Q4 & FY Revenue and Gross Margin REVENUE $121.3M GROSS MARGIN 34% $96.6M 31% 31% 2018 2017 25% $40.3M $28.5M Q4 FY Q4 FY • Q4 2018 Revenue -29%, to $28.5M • Q4 2018 Gross Margin -6-points, to 25% o -48% Power Products, to $15.6M o Reflects low sales of MEAs in China and -60% Heavy Duty Motive, to
Slide 16: Q4 & FY Cash Operating Cost Base and Adjusted EBITDA
Q4 & FY Cash Operating Cost Base and Adjusted EBITDA CASH OPERATING COST BASE * ADJUSTED EBITDA # Q4 FY $3.3M $2.1M $43.0M $39.1M 2018 2017 ($5.2)M $11.2M $11.2M Q4 FY ($13.5)M • Q4 2018 Cash Operating Costs flat at $11.2M • Q4 2018: o Adjusted EBITDA ($5.2)M o Net Loss ($11.5)M o EPS ($0.06) * Meas
Slide 17: Liquidity
Liquidity • Q4 2018 Cash Provided By Operating Activities at $0.2M $192.2M • End-Q4 2018 cash reserves of $192.2M, 2018 up from $23.2M in the prior quarter 2017 o Cash reserves were impacted by Q4 equity $60.3M investments from Weichai Power and Broad-Ocean Motor END-Q4 CASH RESERVES Power to Change
Slide 18: Order Backlog
Order Backlog End-Q4 2018: Order Backlog1 of $194.8M and 12-Month Order Book2 of $69.0M ORDER Order Backlog Orders Received Orders Delivered Order Backlog BACKLOG at End-Q3 2018 in Q4 2018 in Q4 2018 at End-Q4 2018 Total Fuel Cell $122.7M $100.6M $28.5M $194.8M Products & Services 1 Order Backlog =
Slide 19: Q&A by the Numbers
Q&A by the Numbers Ballard Publicly listed 4 Strategic 650 Company shareholders 650 Employees 2,000 24 years Patents & 26 years 1979-2019 Applications 99(494*) 300(903*) 4 train 3 ships in 12,000 Transit trucks projects on forklifts development buses in delivering track in operation service goods $8
Slide 20: Power to Change the World
Power to Change the World® 20 BALLARD.COM