Slide 1: Q1 2017 Results Conference Call
Page 1 Q1 2017 Results Conference May 2, 2017 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 2017 Overview
Page 4 Q1 2017 Overview • Delivered significant progress against 2017 financial performance objectives in Q1 – o +39% year‐on‐year revenue growth o +22‐points in Gross Margin, to 42% o ($0.7)M Adjusted EBITDA o $68.0M cash reserves at end‐Q1
Slide 5: Power Products Update: Heavy Duty Motive in China
Page 5 Power Products Update Heavy Duty Motive in China • Closed definitive agreement with Broad‐Ocean o Technology transfer, licensing and supply agreements for assembly & sale of FCveloCity® engines in 3 regions o $25M revenue to Ballard over 5‐years, including $12M Technology Solutions revenue •
Slide 6: Power Products Update: Heavy Duty Motive in China (Cont'd)
Page 6 Power Products Update Heavy Duty Motive in China (Cont’d) • Continued growth in Heavy Duty Motive fuel cell market demand o Broad‐Ocean planning to deploy 16,000 fuel cell vehicles o Cities of Foshan & Yunfu may increase scope of fuel cell bus program o CRRC Sifang announced deal for 8 fuel c
Slide 7: Power Products Update: Heavy Duty Motive in ROW
Page 7 Power Products Update Heavy Duty Motive in ROW • Ballard joined Fuel Cell Electric Bus Commercialization Consortium (FCEBCC) o Large‐scale funded program to deploy 20 New Flyer fuel cell buses in California o 10 buses with AC Transit and 10 buses with OCTA Orange County Transit Authority (OCT
Slide 8: Power Products Update: Portable Power (Protonex)
Page 8 Power Products Update Portable Power (Protonex) • Awaiting Milestone C in Army Program of Record for Small Unit Power portfolio o SPM Power Manager is part of this portfolio o Continue to expect this milestone in 2017 o Achieved EAR99 classification, which enables fulfillment of orders in for
Slide 9: Technology Solutions Update
Page 9 Technology Solutions Update • Q1 revenue generated from 35 Technology Solutions projects o 5 new projects in the quarter …. including work related to Broad‐Ocean contracts in China • Subsequent to Q1, announced follow‐on Audi's H‐tron Quattro concept vehicle MEA development program contract w
Slide 10: Appointment of Chief Commercial Officer
Page 10 Appointment of Chief Commercial Officer • Rob Campbell has extensive clean energy experience and outstanding executive leadership skills o Reporting to CEO o Responsible for global business development, sales, marketing, product line management, after‐sales service for Heavy Duty Motive, Mat
Slide 11: Q1 2017 Revenue and Gross Margin
Page 11 Q1 2017 Revenue and Gross Margin REVENUE GROSS MARGIN $22.7M 42% 2017 2016 $16.3M 20% Q1 Q1 • Q1 2017 Revenue +39% to $22.7M • Q1 2017 Gross Margin +22‐pts to o +9% Power Products, to $11.1M 42% due to: +120% Heavy Duty Motive to $7.2M o Shift in product mix toward higher ‐53% Portable P
Slide 12: Q1 2017 Cash Operating Cost Base and Adjusted EBITDA
Page 12 Q1 2017 Cash Operating Cost Base and Adjusted EBITDA CASH OPERATING COST BASE * ADJUSTED EBITDA # $10.0M $9.4M Q1 2017 2016 ($0.7)M ($7.2)M Q1 • Q1 2017 Cash Operating Costs +6% to • Q1 2017: $10.0M due to: o Adjusted EBITDA improved 91% to o Higher product development activities and ($0.7)M
Slide 13: Liquidity
Page 13 Liquidity • Q1 2017 Cash Used By Operating Activities improved 59% to ($3.1)M $68.0M 2017 $44.3M 2016 • End‐Q1 2017 cash reserves of $68.0M, +54% from end‐Q1 2016 END‐Q1 CASH RESERVES
Slide 14: Q1 2017 Conference Call Q&A
Page 14 Q1 2017 Conference Call Q&A
Slide 15: Q1 2017 Results Conference Call
Page 15 Q1 2017 Results Conference May 2, 2017 Call