Ballard Power Systems Inc. · TSX:BLDP
Ballard Power Systems — Q1 2020 Earnings Presentation
17 slides from Ballard Power Systems's earnings presentation, May 6, 2020
Slide 1: Q1 2020 Results Conference Call
Q1 2020 Results Conference Call May 6, 2020 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: Priorities During COVID-19 Pandemic
Priorities During COVID- 19 Pandemic • Top priority is protecting the health & safety of employees, customers, partners • About 2/3 of employees now working from home • Manufacturing operations continue, with appropriate protections taken at all facilities • Have focused on stabilizing supply chain
Slide 5: Priorities During COVID-19 Pandemic (Cont'd)
Priorities During COVID- 19 Pandemic (Cont’d) • Not seeing long-term pull back in fuel cell demand, however, given the current dynamic environment our 2020 revenue outlook is withdrawn at this time • Q1 2020 highlights – o Record Q1 revenue of $24.0M o 22% gross margin o $181.6M cash reserves at end
Slide 6: Developments in China
Developments in China • Weichai-Ballard JV construction & staffing levels now at pre-COVID-19 levels o Expect commissioning of assembly lines around mid-year 2020 • Changes to New Energy Vehicle program announced, toward goal for 20% of vehicle sales to be NEVs by 2025 o Expect fuel cell subsidy upd
Slide 7: Developments in Europe
Developments in Europe • New orders to date in 2020 include 45 modules to power Solaris buses for deployment in Germany (25) and The Netherlands (20) • European Union moving toward carbon neutrality by 2050, as set out in “Green Deal” policy measures o EU Climate Law and industrial strategy proposed
Slide 8: Developments in California
Developments in California • CARB released its final draft of Advanced Clean Trucks standard o OEMs of certain Medium- and Heavy- Duty chassis or complete ICE-powered trucks will be required to sell zero- emission trucks as an increasing percent of sales in California, beginning 2024 o 75% of class
Slide 9: Daimler Truck-Volvo Group Joint Venture
Daimler Truck-Volvo Group Joint Venture • Non-binding agreement for JV to commercialize fuel cell systems for Heavy- Duty vehicles, including trucks o Joint venture valued at ~€1.2B • Fuel cells recognized as one important answer to CO2-neutral transport • Announcement demonstrates Daimler Truck & V
Slide 10: COVID-19 Implications
COVID-19 Implications • No softening of CO2 emission reduction targets • Correlation between air quality and COVID- 19 mortality rates supports zero-emission mobility • Increase in online transactions will underpin more commercial trucking • Hydrogen refueling infrastructure may benefit from stimulu
Slide 11: COVID-19 Implications (Cont'd)
COVID-19 Implications (Cont’d) • Vehicle OEMs & Tier 1 suppliers may seek to collaborate more on fuel cell technology • Growth of renewables should remain intact, with continued cost reductions benefiting hydrogen • Temporary low-cost oil should not present long-term barriers to adoption of zero- em
Slide 12: Revenue and Gross Margin
Revenue and Gross Margin REVENUE GROSS MARGIN 22% $24.0M 2020 2019 14% $16.0M Q1 Q1 • Q1 2020 Revenue +50%, to $24.0M • Q1 2020 Gross Margin +8-points, to 22% o +95% Power Products, to $12.3M o Reflects shift toward a higher overall +303% Heavy Duty Motive, to $10.4M margin product and service rev
Slide 13: Cash Operating Cost Base and Adjusted EBITDA
Cash Operating Cost Base and Adjusted EBITDA CASH OPERATING COST BASE * ADJUSTED EBITDA # $12.2M Q1 2020 $9.3M 2019 Q1 share of losses in joint venture investments in China of ($2.0)M ($8.6)M ($9.1)M Q1 share of losses in joint venture investments in China of ($2.5)M Q1 • Q1 2020 Cash Operating Cost
Slide 14: Liquidity
Liquidity • Q1 2020 Cash Used By Operating Activities improved to ($10.1)M o Reflects cash operating losses of ($7.0) million and capital outflows of ($3.1) million • End-Q1 2020 cash reserves of $181.6M, 33% increase from the prior quarter $181.6M $165.0M o 10% increase from Q1 2019 2020 • Cash res
Slide 15: Order Backlog
Order Backlog End-Q1 2020: Order Backlog1 of $169.5M and 12-Month Order Book2 of $105.8M ORDER Order Backlog Orders Received Orders Delivered Order Backlog BACKLOG at End-Q4 2019 in Q1 2020 in Q1 2020 at End-Q1 2020 Total Fuel Cell $178.7M $14.8M $24.0M $169.5M Products & Services 1 Order Backlog =
Slide 16: Q&A
Q&A Power to Change the World® 16 BALLARD.COM
Slide 17: Power to Change the World ®
Power to Change the World® 17 BALLARD.COM
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