Slide 1: Investor Presentation
Investor Presentation May 2021 Nasdaq & TSX: BLDP 1
Slide 2: 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 3: Ballard by the Numbers
Ballard by the Numbers Power to Change the World 3
Slide 4: Sustainable Competitive Advantages
Sustainable Competitive Advantages ✓ Deep fuel cell expertise and talent pool ✓ Leading PEM technology and IP ✓ Comprehensive product portfolio ✓ Vertical integration ✓ Unparalleled field experience ✓ Customers and industrial partnerships ✓ Powerful brand ✓ Balance sheet strength 4
Slide 5: Global momentum to address climate crisis
49 countries with CO2 pricing initiatives Global momentum to 75 countries address climate crisis with net zero targets 32 countries with hydrogen strategies 5
Slide 6: Hydrogen is most competitive in heavy duty motive applications
Hydrogen is most competitive in heavy duty motive applications Our focus is on applications where hydrogen fuel cells have a clear advantage Power to Change the World 6
Slide 7: Why medium- and heavy-duty motive applications?
Strong value proposition Why medium- and heavy-duty motive applications? Centralized depot refueling Disproportionate emissions from hard-to-abate mobility 7
Slide 8: Electrification without impact to operation or profitability
Electrification without impact to operation or profitability • Fuel cell trucks can haul a similar payload to a diesel truck • Future fuel cell truck weight reductions through lower weight storage tanks and improved integration • Fuel cell trucks are refueled quickly to maximize revenue • Battery re
Slide 9: Heavy-Duty Mobility market represents a very large opportunity for Ballard
Heavy-Duty Mobility market represents a very large opportunity for Ballard $14 billion 450,000 buses & coaches 100kW/bus Estimated Total Addressable Market over $100 billion $130b (engine) 4 million MHD trucks 200kW/truck with market share estimates of 55GW for FC $4 billion engines by 2030 8,500 el
Slide 10: Comprehensive Range of Fuel Cell Products to Address Multiple Applications
Comprehensive Range of Fuel Cell Products to Address Multiple Applications Product Line Applications Products Low Low Fuel cell MEAs and components bipolar plates All applications Air and liquid Fuel cell Level of integration cooled stacks stacks from 400 W to Motive (buses, trucks, forklifts, cars)
Slide 11: Product Innovations Achieve Significant Performance & Lifecycle Cost Improvements
Product Innovations Achieve Significant Performance & Lifecycle Cost Improvements Current generation FCmoveTM product improvements Power to Change the World 11
Slide 12: We are powering thousands of heavy-duty vehicles globally
We are powering thousands of heavy- duty vehicles globally. Power to Change the World 12
Slide 13: 75+ million km, 35,000+ hours, 97% uptime
75+ million km cumulative kms driven Proven field performance in 35,000+ hours various duty cycles, proven field durability operating conditions and weather conditions 97% uptime high availability rate in 2020 13
Slide 14: FCgen-LCS Launches
BALLARD LAUNCHES FCgen®-LCS
Slide 15: FCmove Launches
BALLARD LAUNCHES FCmove™
Slide 16: Partners with New Flyer
BALLARD PARTNERS WITH NEW FLYER
Slide 17: Partners with Wrightbus
BALLARD PARTNERS WITH WRIGHTBUS
Slide 18: Partners with Van Hool
BALLARD PARTNERS WITH VAN HOOL
Slide 19: Partners with Solaris
BALLARD PARTNERS WITH SOLARIS
Slide 20: Project with Kenworth
BALLARD PROJECT WITH KENWORTH
Slide 21: Project with Dongfeng
BALLARD PROJECT WITH DONGFENG
Slide 22: Powers UPS Trucks
BALLARD POWERS UPS TRUCKS Fuel Cell Electric Vehicle
Slide 23: Powers Azetec Project
BALLARD POWERS AZETEC PROJECT
Slide 24: Powers First Commercial Tram Line
BALLARD POWERS FIRST COMMERCIAL TRAM LINE
Slide 25: Partners with Siemens
BALLARD PARTNERS WITH SIEMENS
Slide 26: Powers Hydroflex Train
BALLARD POWERS HYDROFLEX TRAIN
Slide 27: Powers Hydroflex Train: FCveloCity-HD
BALLARD POWERS HYDROFLEX TRAIN FCveloCity®-HD
Slide 28: Zero-emission requirements are coming to the marine industry
IMO phasing-out GHG 50% by 2050 Zero-emission Norway protecting heritage fjords requirements are 100% zero-emission coming to the marine by 2026 industry Europe EMSA to cut CO2 50% by 2050 28
Slide 29: Ballard is Investing in the Emerging Marine Market
Ballard is Investing in the Emerging Marine Market • FCwave™ 200kW – expected to be first fuel cell module that is Type Approved • Marine Center of Excellence established in Denmark • Estimated 2,000 MW opportunity by 2030 29
Slide 30: Gaining marine experience & building partnerships
Gaining marine experience & building partnerships • Development of MW scale systems for cruise ships with ABB • HySeas III, the world’s first sea-going renewables-powered ferry • H2PORTS project to facilitate hydrogen power at Europe’s ports • FLAGSHIPS project to power: • Norled ferry in Norway • R
Slide 31: Weichai Ballard Hy-Energy Technologies Co. Ltd. (WBJV)
Weichai Ballard Hy-Energy Technologies Co. Ltd. (WBJV) • Located at Weifang, China • GIGA SHANDONG ONE o Floor space: 225,000 sq ft. o Certification: IATF16949; LC720161 o Capacity: 34,000 stacks (2GW equivalent) ▪ 20,000 modules • Exclusive licensed manufacturer of LCS fuel cell stacks and LCS-base
Slide 32: Development in Europe
• Collaboration agreement with MAHLE International signed October 1st 2020, to focus on $100B annual truck engine market, initially in Europe • MAHLE is a major Tier 1 supplier with €12B in sales • Components in 50% of all vehicles • 10+ years experience in fuel cell component supply • Ballard is re
Slide 33: Ballard '3x3' Cost Reduction Plan
Labour Ballard ‘3x3’ Cost Reduction Plan Stack Hardware Based on 2020 LCS-M1 195-cell stack Plates MEAs Contribution to ‘3x3’ fuel cell STACK cost reduction project targeting >70% reduction Cost Reduction Engineering Design delivering MEA and Plate, performance and lifetime 41% improvements with low
Slide 34: System Cost Reduction
System Cost Reduction Expected impact of BoP cost reduction Major BoP component (Air compressor, HRB, Humidifier, Coolant Pump) cost reduction based on partnerships with Tier 1 suppliers, leveraging bus and Air Compressor Cost Reduction passenger car volumes XD 200kW Other Air Compressor Cost /kW BO
Slide 35: Global Manufacturing Capacity
Global Manufacturing Capacity Vancouver Capacity 2019 2020† ~2025‡ MEAs 1.0m 6.0m 10.2m Gigawatt Equivalent 0.24 1.66 2.90 Vehicle Equivalent* 2k 12k 20k Hobro HD Capacity 2019 2020 2023‡ Stack Assembly 2.6k 27k 27k FCmove™Module Assembly - 50 100 Gigawatt Equivalent 0.24 1.66 1.66 HD Module Assembl
Slide 36: ESG Commitment
ESG Commitment Published inaugural ESG Report in April 2020 Carbon neutral by 2030 Committed to continued enhancement of ESG reporting Power to Change the World 36
Slide 37: Investment Thesis
Investment Thesis 1. Strong Policy Complex is Developing, Underpinned by MegaTrends • Decarbonization; air quality improvement; electrification of vehicles 2. Large Attractive Addressable Markets • Business model leverage & diversification with TAMs totaling >$130b 3. Global Leadership Position in P
Slide 38: Q4 & Full Year 2020 Results
APPENDIX Q4 & Full Year 2020 Results (Millions of U.S. dollars) Q4 2020 Q4 2019 % Change FY 2020 FY 2019 % Change REVENUE Fuel Cell Products & Services Revenue: Heavy Duty Motive $11.9 $21.4 -44% $47.7 $35.4 35% Material Handling $0.9 $1.9 -51% $5.3 $10.8 -51% Backup Power $2.1 $2.0 5% $5.6 $3.0 88%
Slide 39: Q1 2021 Results
APPENDIX Q1 2021 Results (Millions of U.S. dollars) Q1 2021 Q1 2020 % Change REVENUE Fuel Cell Products & Services Revenue: Heavy Duty Motive $6.9 $10.3 -33% Material Handling $1.7 $0.7 148% Backup Power $0.8 $1.2 -39% Sub-Total $9.4 $12.2 -25% Technology Solutions $8.2 $11.6 -29% Total Fuel Cell Pr