Ballard Power Systems Inc. · TSX:BLDP
Ballard Power Systems — Q1 2016 Earnings Presentation
16 slides from Ballard Power Systems's earnings presentation, Apr 27, 2016
Slide 1: Q1 2016 Results Conference Call
Page 1 Q1 2016 Results Conference April 27, 2016 Call
Slide 2: Conference Call Participants
Page 2 Conference Call Participants 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: Q1 2016 Overview
Page 4 Q1 2016 Overview • Landmark achievements in 2015 o On both Power Products & Technology Solutions platforms • Record full‐year 2016 order book & sales pipeline o $58M order book for 2016 deliveries; exceeds 2015 revenue • Reflected in strong top line Q1 2016 results o Revenue +76% o Gross Marg
Slide 5: Heavy Duty Motive
Page 5 Heavy Duty Motive • 2015 progress included – o Introduction of 7th generation HD power module, 30% cost reduction from the prior generation o 30kW & 60kW product extensions introduced, with initial shipments in December, ahead of schedule o Successful China strategy $48M in deals, including
Slide 6: Heavy Duty Motive (Cont'd)
Page 6 Heavy Duty Motive (Cont’d) • European market – o Expect to begin shipping 21 power modules later in 2016 under 3Emotion Program o Also focused on current Horizon Program for 100+ fuel cell buses • U.S. market – Ballard‐powered bus manufactured by Van Hool NV in Belgium o Expect to begin shipp
Slide 7: Portable Power
Page 7 Portable Power • Acquisition of Protonex closed in October 2015 o Contributed to top line in Q4 last year o Received purchase order for $2.8M for SPM kits from U.S. Army Ranger in Q4, as well Squad Power Manager – SPM 622 • Q1 2016 revenue $2.6M • ‘Milestone C’ on path to ‘Program of Record’
Slide 8: Material Handling
Page 8 Material Handling • Fuel cell stack shipments increased in Q1 2016, with related revenue +59%, to $4.1M o Reflects Plug Power’s success in the North American market, with such customers as Walmart, Sysco Foods, Home Depot, Nike • Ballard well positioned to support Plug Power as well as forkli
Slide 9: Telecom Backup Power
Page 9 Telecom Backup Power • Process to explore strategic alternatives continues • Steps taken to reduce cost base o ~50 positions eliminated, primarily related to Telecom Backup Power • Q1 2016 revenue $0.3M … although we saw evidence of market interest and confidence in fuel cell solutions o Purc
Slide 10: Technology Solutions
Page 10 Technology Solutions • Q1 2016 revenue +38%, to $6.1M • Year‐on‐year growth driven by work on bus and tram contracts in China Audi's H‐tron Quattro concept vehicle uses technology & components developed with Ballard engineering support • HyMotion program with Volkswagen Group is on track, me
Slide 11: Q1 2016 Cost Reductions
Page 11 Q1 2016 Cost Reductions • As discussed previously, cost reduction initiatives were implemented in Q1 o Rationalization and consolidation of executive team through elimination of 3 Officer positions o Reduction of Telecom Backup Power cost base • Expected to yield annualized cost savings in e
Slide 12: Q1 2016 Revenue and Gross Margin
Page 12 Q1 2016 Revenue and Gross Margin Revenue (millions) Gross Margin (%) • Q1 2016 Revenue $16.3M • Q1 2016 Gross Margin 20% • +76% year‐over‐year growth, comprised of: • +900 basis points year‐over‐year due to shift o +111% Power Products, to $10.2M in product mix toward higher margin Heavy +
Slide 13: Q1 2016 Cash Operating Cost Base and Adjusted EBITDA
Page 13 Q1 2016 Cash Operating Cost Base and Adjusted EBITDA Cash Operating Cost Base* (millions) Adjusted EBITDA# (millions) • Q1 2016 Cash Operating Costs $9.4M • Q1 2016 Adjusted EBITDA year‐over‐year increase to ($7.2)M • +19% year‐over‐year due to inclusion of Protonex operating costs o Reflect
Slide 14: Liquidity
Page 14 Liquidity • Q1 2016 Cash Used By Operating Activities increased to ($7.5)M • End‐Q1 2016 cash reserves of $44.3M o Includes Q1 receipt of – Final $9.2M from IP transaction with Volkswagen Group; and $3.3M from Superior Plus as final payment associated with 2008 restructuring agreement
Slide 15: Q1 2016 Conference Call Q&A
Page 15 Q1 2016 Conference Call Q&A
Slide 16: Q1 2016 Results Conference Call
Page 16 Q1 2016 Results Conference April 27, 2016 Call
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