Slide 1: Investor Relations Presentation
® NASDAQ:BLDP TSX:BLD Investor Relations Presentation July 30, 2014
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 Improvement in All Key Metrics
Q2 Improvement in All Key Metrics* NASDAQ:BLDP TSX:BLD • Revenue o +27%, to $18.5M • Gross Margin o +3-points, to 25% • Cash Operating Costs o +5%, to $6.7M • Adjusted EBITDA o +63%, to ($1.2)M * All comparisons are to Q2 2013 3
Slide 4: Progress in IP Licensing
Progress in IP Licensing NASDAQ:BLDP TSX:BLD • Impactful financially o High margin ‘up front’ revenue; and o Future royalty streams • Strong synergistic fit with other 2 strategic ‘legs of the stool’: o Product Sales – utilize licensing to develop new markets, enable new distributors, create futur
Slide 5: Progress in IP Licensing (Cont'd)
Progress in IP Licensing (Cont’d) NASDAQ:BLDP TSX:BLD • New licensing transactions announced in Q2 – License to Azure Hydrogen for assembly of ElectraGenTM Telecom Backup Power systems in China Sub-license of Material Handling system IP (acquired from H2 Logic) to M-Field Energy Corp. in Europe
Slide 6: Q2 Revenue Breakdown
Q2 Revenue Breakdown* NASDAQ:BLDP TSX:BLD • Telecom Backup Power o Revenue -12%, to $3.7M, a reflection of high shipment volume in Q2 2013 o Reflects licensing transaction with Azure, signed in the quarter • Material Handling o Revenue +209%, to $4.6M o Includes $0.5M from licensing transaction wi
Slide 7: Revenue and Gross Margin
Revenue and Gross Margin NASDAQ:BLDP TSX:BLD Revenue (millions) Gross Margin (%) 90 Guidance 30 ~$80.0M 80 25 27% 70 25% 60 $55.8 20 $61.3 50 15 17% 40 $43.7 $37.7 13% 30 10 20 YTD 5 $32.5 10 0 0 2011 2012 2013 2014 2011 2012 2013 2014 YTD Fuel Cell Products Contract Manufacturing* • 2014 Q2 +27%,
Slide 8: 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 0 Guidance 45 YTD ~Break-even ($3.0) 40 -5 35 $37.0 ($8.2) 30 -10 ~$24.0 - $30.3 26.0M 25 $28.3 20 -15 15 -20 10 ($22.1) YTD 5 $13.0 -25 0 ($27.9) 2
Slide 9: Liquidity
Liquidity NASDAQ:BLDP TSX:BLD • Q2 Cash Used By Operating Activities reduced 37%, to ($2.9)M • End-Q2 cash reserves $36.4M o Zero outstanding on bank operating line 9
Slide 10: 2014 Guidance
2014 Guidance NASDAQ:BLDP TSX:BLD • Confirming full-year guidance for – o Revenue growth of approximately 30% o Approximately break-even Adjusted EBITDA 10
Slide 11: Product Sales – Telecom Backup Power
Product Sales – Telecom Backup Power NASDAQ:BLDP TSX:BLD • Q2 revenue -12%, to $3.7M • Expect significant growth in 2H orders & product shipments o Sharp focus on management of sales opportunities very robust sales pipeline o Pipeline reflects continued growth opportunities in Asia and further r
Slide 12: Product Sales – Telecom Backup Power (Cont'd)
Product Sales – Telecom Backup Power (Cont’d) NASDAQ:BLDP TSX:BLD 2H 2014 Pipeline Opportunities Include: Japan o Significant business today with a major carrier, via channel partner NSN o Focusing now on 2 additional carriers Philippines o Submitted Q2 response to Globe Telecom RFQ for 154 system
Slide 13: Product Sales – Material Handling
Product Sales – Material Handling NASDAQ:BLDP TSX:BLD • Q2 revenue +209%, to $4.6M … YTD +177%, to $6.6M Ballard FCvelocity®-9SSL Ballard FCgen®-1020ACS • Expect continued strong growth in 2H – Fuel Cell Stack Fuel Cell Stack o Recent additions to Plug Power order book repeat orders for GenDrive
Slide 14: Engineering Services
Engineering Services NASDAQ:BLDP TSX:BLD • Q2 revenue +46%, to $8.4 … YTD +89%, to $15.8M • Key areas – o Volkswagen contract o Other automotive contracts o Non-automotive contracts • Will leverage IP Licensing capability as a critical Engineering Services enabler Ballard development and test faci
Slide 15: Development Stage Markets – Bus
Development Stage Markets – Bus NASDAQ:BLDP TSX:BLD • Medium-term growth opportunities expected, beyond 2014, enabled by – o Introduction of next-generation FCvelocityTM-HD7 module by end-2014 o JTI funding for up to 21 buses in Europe – Q3 decision on bid anticipated 15
Slide 16: APPENDIX
NASDAQ:BLDP TSX:BLD APPENDIX 16
Slide 17: 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 2,600+ systems … 9MW’s of power o Material Handling 5,000+ stacks … 10M hours of runtime o
Slide 18: Q2 2014 Results
Q2 2014 Results NASDAQ:BLDP TSX:BLD % % (Millions of U.S. dollars) Q2 2014 Q2 2013 Improve. YTD 2014 YTD 2013 Improve. GROWTH Revenue: Telecom Backup Power $3.7 $4.3 -12% $6.6 $10.6 -38% Material Handling $4.6 $1.5 209% $6.6 $2.4 177% Development Stage Markets $1.8 $3.1 -44% $3.5 $5.5 -38% Enginee
Slide 19: Strategic Direction
Strategic Direction NASDAQ:BLDP TSX:BLD • Aggressively building shareholder value through: • Leveraging product leadership and Product Sales early mover position in Telecom Backup Power & Material Handling Engineering • Anchored by 4-year contract with Volkswagen utilizing industry-leading Service
Slide 20: 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 21: 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 • Grid connected sites • Note: Small Cell BTS sites excluded • To de
Slide 22: 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