Ballard Power Systems Inc. · TSX:BLDP
Ballard Power Systems — Q2 2013 Earnings Presentation
20 slides from Ballard Power Systems's earnings presentation, Aug 1, 2013
Slide 1: Q2 2013 Earnings Call Presentation
® NASDAQ:BLDP TSX:BLD Q2 2013 Earnings Call Presentation August 1, 2013
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: Q2 2013 Highlights
Q2 2013 Highlights NASDAQ:BLDP TSX:BLD • Continued strong top line performance o +114% revenue growth compared to Q2 2012, to $14.6M o Driven by key commercial stage markets: Telecom Backup Power Engineering Services • Strong bottom line performance o +18‐point gross margin improvement, to 22%
Slide 4: Corporate Strategy
Corporate Strategy NASDAQ:BLDP TSX:BLD 2013 results to date are evidence of significant progress in execution of our strategy – • Steps taken to optimize cost base; • Investment of more resources to exploit opportunities in Telecom Backup Power and Engineering Services; • Enhancement of positionin
Slide 5: Telecom Backup Power
Telecom Backup Power NASDAQ:BLDP TSX:BLD • Strong Q2 2013 performance o +363% revenue growth, to $4.3M o 177 ElectraGenTM systems shipped, including 92 systems to NSN for Japan market • July ESA with Azure for 220 ElectraGenTM systems in China market, to be shipped in 2013 • Demand generated by tw
Slide 6: Engineering Services
Engineering Services NASDAQ:BLDP TSX:BLD • Strong Q2 2013 performance o +87% revenue growth, to $5.7M • Underpinned by 4‐year contract with Volkswagen AG – C$60‐100M value o Work for VW ramped up during Q2, following March contract signing Ballard development and test facility at Burnaby, BC headq
Slide 7: Material Handling
Material Handling NASDAQ:BLDP TSX:BLD • Volumes down in Q2 2013 o ‐27% reduction in revenue, to $1.5M Ballard FCvelocity®‐9SSL Fuel Cell Stack Ballard FCgen®‐1020ACS Fuel Cell Stack o 498 fuel cell stacks shipped • Air Liquide strategic investment in Plug Power in May o A major commitment to this
Slide 8: Development Stage Markets
Development Stage Markets NASDAQ:BLDP TSX:BLD BUS • 5 FCvelocityTM‐HD6 power modules shipped in Q2 2013 o 4 to Van Hool in Europe, 1 to SunLine Transit Agency in CA Van Hool bus powered by Ballard FCvelocityTM‐HD6 • Azure bus initiative in China o MOU signed in May o Currently negotiating contract
Slide 9: Development Stage Markets (Cont'd)
Development Stage Markets (Cont’d) NASDAQ:BLDP TSX:BLD CONTINUOUS POWER SYSTEM • Development program o Enables next‐generation low cost stack & fuel reformer o Proceeding on‐track – trial deployments planned for 2014 o Continued support from Anglo American and announcement of funding from South Af
Slide 10: Revenue
Revenue NASDAQ:BLDP TSX:BLD Revenue* (millions) 60 $55.8 Minimum guidance • Q2 +114% growth, to $14.6M >$57.0M 50 $44.1 • YTD +59% growth, to $26.9M Contract 40 $43.7 Manufacturing • Key growth drivers – Telecom $37.8 30 Fuel Cell Backup Power and Engineering Products $26.5 Services – accounted fo
Slide 11: Gross Margin
Gross Margin NASDAQ:BLDP TSX:BLD Gross Margin (%) 25 • Q2 +18‐point improvement, to 22% 20 23% • YTD +9‐point improvement, to 23% • Biggest driver is increased revenue 15 17% Continuing Operations from Engineering Services 13% 10 5 4% 0 2010 2011 2012 YTD 2013 11
Slide 12: Cash Operating Cost Base
Cash Operating Cost Base NASDAQ:BLDP TSX:BLD Cash Operating Cost Base* (millions) • Q2 +2% improvement, to $7.1M 45 • YTD +6% improvement, to $15.3M 40 $40.3 • Expect full year 2013 cash opex in 35 $37.0 mid‐$20M range 30 $30.3 Mid‐$20M o Will be underpinned in 2H by full 6‐ 25 Cash Operating Cost
Slide 13: Adjusted EBITDA
Adjusted EBITDA NASDAQ:BLDP TSX:BLD Adjusted EBITDA* (millions) • Adjusted EBITDA o Q2 +49% improvement, to ($3.3)M 2010 2011 2012 2013E 0 o YTD +38% improvement, to ($7.9)M YTD ‐5 ($7.9) o Due to revenue growth and gross ‐10 Minimum guidance >($11.0)M margin improvement ‐15 o Expect additional im
Slide 14: Liquidity
Liquidity NASDAQ:BLDP TSX:BLD • Major improvement in Cash Used By Operating Activities o Q2 +58% improvement, to ($4.7)M o YTD +56% improvement, to ($11.7)M o Due to improvement in Adjusted EBITDA and reduction in working capital requirements • Cash Reserves o End‐Q2 $25.8M $23.1M net of operati
Slide 15: Summary
Summary NASDAQ:BLDP TSX:BLD • Solid Q2 & YTD performance o Top line and bottom line • Progress to create value in development stage markets o China o South Africa • Ballard confirms full year 2013 guidance for: o Revenue growth in excess of 30%; and o Adjusted EBITDA improvement in excess of 50% 1
Slide 16: Question & Answer Period
NASDAQ:BLDP TSX:BLD Question & Answer Period 16
Slide 17: Appendix
Appendix
Slide 18: Who We Are
Who We Are NASDAQ:BLDP TSX:BLD • Ballard Power Systems, Inc. is a recognized global leader in clean energy PEM fuel cells o Design, manufacturing, distribution, support o Commercial market focus • 355 employees • Operations: Canada, U.S.A. (University of Maryland; Bend, OR), Mexico, Denmark Ballar
Slide 19: 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 • 2.5kW & 5kW hydrogen • Methanol fuelled Systems •
Slide 20: Q2 2013 Results
Q2 2013 Results NASDAQ:BLDP TSX:BLD % % (Millions of U.S. dollars) Q2 2013 Q2 2012 Improve. YTD 2013 YTD 2012 Improve. GROWTH Fuel Cell Product & Service Revenue: Telecom Backup Power $4.3 $0.9 363% $10.7 $2.3 365% Engineering Services $5.7 $3.1 87% $8.4 $6.2 34% Material Handling $1.5 $2.0 ‐27% $
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