Ballard Power Systems Inc. · TSX:BLDP
Ballard Power Systems — Investor Presentation (January 2015)
25 slides from Ballard Power Systems's investor presentation, January 2015
Slide 1: Investor Presentation – January 2015
® NASDAQ:BLDP TSX:BLD Investor Presentation – January 2015
Slide 2: Forward Looking Statements
Forward Looking Statements NASDAQ:BLDP TSX:BLD 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 expecte
Slide 3: Who We Are
Who We Are NASDAQ:BLDP TSX:BLD • Ballard is the global leader in clean energy proton exchange membrane (“PEM”) fuel cell products and services … design, manufacturing & deployment o Telecom Backup Power 2,700+ systems … 11.5MW’s of power o Material Handling 6,000+ stacks … 20M hours of runtime
Slide 4: Investment Highlights
Investment Highlights NASDAQ:BLDP TSX:BLD • Leading position in PEM fuel cell technology & power solutions • Focused on near-term commercial applications • Multi-faceted product, service and licensing strategy • Solid top line growth • Reduced cost base Opportunity for near term positive Adjuste
Slide 5: Executive Management Team
Executive Management Team NASDAQ:BLDP TSX:BLD Randy MacEwen, President and CEO Mr. MacEwen joined Ballard in October 2014 with extensive executive-level experience in the clean energy sector. Mr. MacEwen served as Executive Vice President of Stuart Energy Systems Corp., CEO of Solar Integrated Tec
Slide 6: Strategic Direction
Strategic Direction NASDAQ:BLDP TSX:BLD • Aggressively building shareholder value through: • Leveraging product leadership and early PRODUCT SALES mover position in Telecom Backup Power & Material Handling • Engineering Services – anchored by 4- year contract with Volkswagen utilizing TECHNOLOGY i
Slide 7: Continued Progress in Q3
Continued Progress in Q3* NASDAQ:BLDP TSX:BLD • Revenue o Improved 21%, to $20.6M • Cash Operating Costs o Improved 15%, to $5.6M • Cash Used By Operating Activities o Improved 40%, to ($2.9)M • Adjusted EBITDA o Improved 151%, to $0.5M * Comparisons throughout the presentation are to Q3 2013, unl
Slide 8: Revenue and Gross Margin
Revenue and Gross Margin NASDAQ:BLDP TSX:BLD Revenue (millions) Gross Margin (%) 30 70 60 25 27% $61.3 25% $55.8 50 20 $55.8 40 $43.7 15 17% 30 $37.7 $53.1 13% 10 20 5 10 0 0 2011 2012 2013 2014 YTD 2011 2012 2013 2014 YTD Fuel Cell Products Contract Manufacturing* • 2014 Q3 improved 21%, to $20.6
Slide 9: Cash Operating Cost Base and Adjusted EBITDA
Cash Operating Cost Base and Adjusted EBITDA NASDAQ:BLDP TSX:BLD Cash Operating Cost Base* (millions) Adjusted EBITDA* (millions) 2011 2012 2013 2014 YTD 45 0 ($2.6) 40 35 -5 $37.0 ($8.2) 30 $30.3 -10 25 $28.3 20 -15 15 -20 ($22.1) 10 $18.6 5 -25 ($27.9) 0 -30 2011 2012 2013 2014 YTD * Measures op
Slide 10: Liquidity
Liquidity NASDAQ:BLDP TSX:BLD • Q3 Cash Used By Operating Activities improved 40%, to ($2.9)M • End-Q3 cash reserves $32.7M 10
Slide 11: Product Sales: Telecom Backup Power
Product Sales: Telecom Backup Power NASDAQ:BLDP TSX:BLD • Q3 revenue +60%, to $6.3M • Purchase orders in-hand for Jamaica, Japan, Thailand, China, the Philippines • Robust sales prospect pipeline Ballard ElectraGen™-ME fuel cell system rooftop installation in the Philippines Key End-Customers Elec
Slide 12: Fuel Cell Value Proposition: Telecom Backup Power
Fuel Cell Value Proposition: Telecom Backup Power NASDAQ:BLDP TSX:BLD High Reliability vs. incumbent diesel gensets & lead-acid batteries •Commercially proven •Industry leading technology Extended Duration Runtime • Can operate for days before refueling • Autonomous solution with remote monitoring
Slide 13: Commercial Update: U.S. Telecom Backup Power Market
Commercial Update: U.S. Telecom Backup Power Market NASDAQ:BLDP TSX:BLD • U.S. carriers seeking to ‘harden’ network sites, with a focus on rooftops in major urban centers o Underserved by traditional Backup Power solutions • Ballard ElectraGenTM-ME methanol system is the first fuel cell product to
Slide 14: Product Sales: Material Handling
Product Sales: Material Handling NASDAQ:BLDP TSX:BLD • Q3 revenue +70%, to $3.6M • YTD revenue +127%, to $10.2M Ballard FCvelocity®-9SSL Ballard FCgen®-1020ACS • Long-term supply agreement now in- Fuel Cell Stack Fuel Cell Stack place with Plug Power Plug Power Q3 GenDrive® Shipments Included The
Slide 15: Fuel Cell Value Proposition: Material Handling
Fuel Cell Value Proposition: Material Handling NASDAQ:BLDP TSX:BLD Increased Productivity vs. incumbent lead-acid batteries • Up to 15% improvement • Enable forklifts to operate at consistent full speed • Refuel typically takes < 2 minutes • Battery rooms eliminated, allowing more room for product
Slide 16: Commercial Update: Supply Agreement With Plug Power
Commercial Update: Supply Agreement With Plug Power NASDAQ:BLDP TSX:BLD • New long-term fuel cell stack supply agreement signed with Plug Power and announced October 8 o Effective immediately, runs through 2017 o Includes provision for two 1-year extensions • Ballard has a continuing focus on deli
Slide 17: Commercial Update: European Bus Market
Commercial Update: European Bus Market NASDAQ:BLDP TSX:BLD • Bus-related news announcements, following Q3 – o Opening of European Service & Parts Center in Belgium, with Van Hool, to support Van Hool-Ballard buses o Non-binding MOU with Skoda Electric & Rigas Satiksme for development program • Awa
Slide 18: Engineering Services
Engineering Services NASDAQ:BLDP TSX:BLD • Q3 revenue +26%, to $8.2M • YTD revenue +62%, to $24.0M • Key areas – o Volkswagen contract o Other automotive contracts o Non-automotive contracts Ballard development and test facility at Vancouver, B.C. headquarters Key Automotive Customers 18
Slide 19: Summary
Summary NASDAQ:BLDP TSX:BLD • Leading position in PEM fuel cell technology & power solutions • Focused on near-term commercial applications • Multi-faceted product, service and licensing strategy • Solid top line growth • Reduced cost base Opportunity for near term positive Adjusted EBITDA and c
Slide 20: Appendix
NASDAQ:BLDP TSX:BLD APPENDIX 20
Slide 21: Q3 & YTD 2014 Results
Q3 & YTD 2014 Results NASDAQ:BLDP TSX:BLD % % (Millions of U.S. dollars) Q3 2014 Q3 2013 Improve. YTD 2014 YTD 2013 Improve. GROWTH Revenue: Telecom Backup Power $6.3 $3.9 60% $12.9 $14.6 -12% Material Handling $3.6 $2.1 70% $10.2 $4.5 127% Development Stage Markets $2.5 $4.5 -43% $6.0 $10.0 -40%
Slide 22: Fuel Cell Product Portfolio
Fuel Cell Product Portfolio NASDAQ:BLDP TSX:BLD Fuel Cell Stacks • 500W-2kW • 2-8kW • 4-20kW • 100kW • Up to 8k hrs • Up to 30k hrs • Up to 12k hrs • > 5k hrs Fuel Cell Modules • 75-150kW • Up to 20k hours Complete • 2kW & 5kW Fuel Cell • Direct hydrogen • 2.5kW & 5kW • Methanol fuelled Systems •
Slide 23: PEM Fuel Cell Technology
PEM Fuel Cell Technology NASDAQ:BLDP TSX:BLD 600°-1200°C SOFC Temperature High Increasing (Bloom Energy) Thermal Management MCFC (Fuel Cell Energy) Requirements PAFC (Doosan Fuel Cell America) 60°-120°C Low PEMFC 1kW 10kW 100kW 1MW 10MW Material Applications Handling: Automotive 100kW Stacks $0.8B
Slide 24: Telecom Backup Power – Addressable Market
Telecom Backup Power – Addressable Market NASDAQ:BLDP TSX:BLD • TAM calculation for telecom backup power includes: • New network rollouts Total TAM $4.0B • Replacement of incumbent technology at end of life or for network upgrade • Note: Small Cell BTS sites excluded • To determine SAM calculation
Slide 25: Material Handling – Addressable Market
Material Handling – Addressable Market NASDAQ:BLDP TSX:BLD • TAM calculation for material handling includes: • Industrial battery-powered forklift sales • Value for stack sales only • North American market only • To determine SAM calculation the following factors were considered: • Trucks used in
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