Ballard Power Systems Inc. · TSX:BLDP
Ballard Power Systems — Q3 2019 Earnings Presentation
18 slides from Ballard Power Systems's earnings presentation, Oct 31, 2019
Slide 1: Q3 2019 Results Conference Call
Q3 2019 Results Conference Call October 31, 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 • Q3 results in-line with expectations o Revenue $24.8M o Gross Margin 25% o Adjusted EBITDA $(7.2)M o End-Q3 Cash Reserves $153.4M • Reiterating full-year 2019 Outlook Power to Change the World® 4 BALLARD.COM
Slide 5: Notable Industry Developments
Notable Industry Developments • CNH Industrial announced partnership with Nikola and plans to invest $250M • Cummins & Hyundai signed MOU and announced expected production of 700,000 fuel cell systems per year, by 2030 • Daimler Trucks announced plan to bring fuel cell-powered trucks to series produ
Slide 6: Notable Industry Developments (Cont'd)
Notable Industry Developments (Cont’d) • CARB introduced CORE program to promote clean off-road freight technologies • Continental Corp. fuel cells will become increasingly relevant in the auto industry • 30 members at the Hydrogen Energy Ministerial Meetings pledged to deploy 10M FCEVs + 10,000 H
Slide 7: Corporate Strategy Execution
Corporate Strategy Execution • Growing market interest in next-gen products launched earlier in 2019 LCS fuel cell stack & FCmoveTM power module • Progressing advanced manufacturing plan in Vancouver operations • Tracking to plan on technology transfer to Weichai-Ballard JV and facility preparatio
Slide 8: Recent Orders
Recent Orders • BEHALA PO for 3 x 100kW modules to power world’s first zero-emission push boat o Planned for 2020 deployment in Germany • Anglo American PO for 9 x 100kW modules to power an Ultra-class mining truck o 2020 demonstration in South Africa o Planning deployments at sites around the world
Slide 9: China Update
China Update • ~4,000 FCEVs in China • Cities such as Shenzhen and Foshan planning to procure only zero-emission buses going forward • Gaoming Tram Project being commissioned Power to Change the World® 9 BALLARD.COM
Slide 10: Europe Update
Europe Update • Wrightbus o Entered into administration o Purchase of certain Wrightbus assets by Bamford Bus Company; planning to feature FCEB as differentiator o Jo Bamford also Chairman of Ryse Hydrogen, which is contracted to provide H2 station for TfL buses Power to Change the World® 10 BALLARD
Slide 11: Europe Update (Cont'd)
Europe Update (Cont’d) • Marine Center of Excellence (CoE) o CoE will design & manufacture HD modules for marine powertrains o Manufacturing facility substantially complete now at Hobro offices in Denmark o CoE will have annual production capacity of 15MW of fuel cell modules Power to Change the Wor
Slide 12: Q3 & YTD Revenue and Gross Margin
Q3 & YTD Revenue and Gross Margin REVENUE GROSS MARGIN $68.1M $64.4M 33% 30% 2019 25% 2018 22% $24.8M $21.6M Q3 YTD Q3 YTD • Q3 2019 Revenue +15%, to $24.8M • Q3 2019 Gross Margin -5-points, to 25% o -28% Power Products, to $8.0M o Reflects shift to lower overall margin -21% Heavy Duty Motive, to
Slide 13: Q3 & YTD Cash Operating Cost Base and Adjusted EBITDA
Q3 & YTD Cash Operating Cost Base and Adjusted EBITDA CASH OPERATING COST BASE * ADJUSTED EBITDA # $31.8M Q3 YTD $27.0M 2019 2018 $(3.6)M $(7.2)M $(8.3)M $10.6M Includes Q3 share of losses in joint $9.3M venture investments in China of $(3.2)M Includes YTD share of losses in joint venture investment
Slide 14: Liquidity
Liquidity • Q3 2019 Cash Used By Operating Activities increased to $(9.6)M o Reflects cash operating losses of $2.4 million and capital outflows of $7.2 million $153.4M • End-Q3 2019 cash reserves of $153.4M, 2019 2018 down $10.3M from the prior quarter $23.2M END-Q3 CASH RESERVES Power to Change th
Slide 15: Order Backlog
Order Backlog End-Q3 2019: Order Backlog1 of $199.6M and 12-Month Order Book2 of $123.6M ORDER Order Backlog Orders Received Orders Delivered Order Backlog BACKLOG at End-Q2 2019 in Q3 2019 in Q3 2019 at End-Q3 2019 Total Fuel Cell $211.6M $12.8M $24.8M $199.6M Products & Services 1 Order Backlog =
Slide 16: Other Developments
Other Developments • BLDP now part of S&P/TSX Composite Index o Effective September 23rd, 2019 o Index includes 240 companies • BLDP named to inaugural ‘TSX30’ o New program recognizing 30 TSX- listed companies with greatest share price appreciation o Measured over 3-years (mid-2016 to mid-2019) Pow
Slide 17: Q&A
Q&A Power to Change the World® 17 BALLARD.COM
Slide 18: Power to Change the World ®
Power to Change the World® 18 BALLARD.COM
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