Ballard Power Systems Inc. · TSX:BLDP
Ballard Power Systems — Investor Day (June 2023)
91 slides from Ballard Power Systems's investor day presentation, Jun 13, 2023
Slide 1: Ballard Capital Markets Day 2023
Ballard Capital Markets Day 2023 Nasdaq & TSX: BLDP June 13, 2023 1
Slide 2: Introduction
Introduction Kate Charlton, VP Corporate Finance & Strategy 2
Slide 3: Forward Looking Statements
Forward Looking Statements This document contains forward-looking statements concerning anticipated markets and customers for our products, revenue and margin expansion, operating costs, implementation of government policy initiatives, planned manufacturing capacity expansion, product cost reduction
Slide 4: Agenda
Agenda 1. Opening Remarks 2. Commercial Update 3. TCU 4. Technology Development & Cost Reduction (Stack) 5. Technology Development & Cost Reduction (Module) 6. Global Manufacturing 7. People, Culture & ESG 8. Financial Outlook 9. Closing Remarks 4
Slide 5: Opening Remarks
Opening Remarks Randy MacEwen, President & CEO 5
Slide 6: Recent milestones – 30 years
Recent milestones – 30 years • June 8th, 1993 – Ballard debuted world’s first fuel cell bus • June 9th, 1993 – Ballard listed on the TSX 6
Slide 7: Ballard's business model
Ballard’s business model1 Core fuel cell MEA, bipolar plates, stack & module IP developed over 40+ years Leveraged over six medium & heavy-duty end markets Driving scale & efficiency across key markets in Europe, North America & China leading to cost advantages, gross margin expansion & EBITDA growt
Slide 8: Key Updates from 2020 Investor Day
Key Updates from 2020 Investor Day1 2020 – Key Priorities 2023 – Status Update Significantly increased number of customer platform wins Expand & execute on partnerships & supplier partnerships Launched 8th & 9th generation modules w/ next gen stacks; Develop new stacks & modules 10th generation modu
Slide 9: Increasingly Constructive Policy Context
Increasingly Constructive Policy Context1 deployment Adopted national H2 strategy 30 countries with national strategies 100-200 B >160 GW by 2030 in policy targets Announced national H2 strategy (23 more proposed) USD in dedicated H2 funding USD 15B Green Innovation Fund with H2 CfDs IRA PTC for low
Slide 10: Evolving Landscape: H2 production & availability
Evolving Landscape: H2 production & availability1 Announced H2 Investments (US$B) Announced Hydrogen Production Capacity (Mtpa) 2025 2030 China 1.1 (40% committed) 320 $29B committed investments North America 9.3 (20% committed) → 70% in N.Am Europe 13 (5% committed) 240 Global Installed Hydrogen Re
Slide 11: Current state of the hydrogen and fuel cell industry
Current state of the hydrogen and fuel cell industry Growth indicators Risk indicators • Increasingly favorable H2 policy landscape • Significant complexity for the transition to a new energy system • Consensus view where fuel cells offer the highest value: HD mobility → Ballard’s markets • Current
Slide 12: US Market Update & Strategy
US Market Update & Strategy Growth indicators Risk indicators • Robust federal policy support for low-carbon • Federal agency implementation of IRA is H2 production, including IRA PTCs incomplete, with some H2 rules still in-progress • Highest level of committed H2 • Increased cost of capital pressu
Slide 13: European Market Update & Strategy
European Market Update & Strategy Growth indicators Risk indicators • Comprehensive commitments to decarbonize • Implementation of policy from EU-level to transportation and eliminate fossil fuel Member States lacks clarity vs. US imports, including in marine • Large sections of EU’s economy relate
Slide 14: China Market Update & Strategy
China Market Update & Strategy Growth indicators Risk indicators • Strategic importance of energy security and • Geopolitical tension at highest level in decades addressing GHG emissions • Local governments are cash constrained post-COVID • Massive investment in renewables • No clear indicators of s
Slide 15: Where is Ballard going & what to expect
Where is Ballard going & what to expect1 Order Backlog New customer platforms in key verticals & customers maturing in fuel cell adoption Growth Product Revenue Increasing product driven revenue as fuel cell adoption scales Execution Cost Product design evolution, advanced manufacturing, & volume sc
Slide 16: Commercial Update
Commercial Update David Mucciacciaro, CCO 16
Slide 17: Power Products revenue mix by vertical
Power Products revenue mix by vertical1 • Change in revenue segmentation to better highlight market adoption & customer evolution • Increasing revenue diversification in recent years & expected to continue • Illustrates business model resilience by leveraging core technology across multiple markets
Slide 18: Regional shift in revenue following policy movement
Regional shift in revenue following policy movement1 • Multi year shift in geographic revenue mix expected to continue in near to mid-term • Policy support & zero emissions targets driving significant European & North American growth • Challenging subsidy schemes have throttled fuel cell demand in C
Slide 19: Backlog shows shift to more diverse customer base
Backlog shows shift to more diverse customer base1 • In two years, Ballard has more than doubled its diversified customer backlog • Substantially diversified backlog to drive results going forward Legacy Anchor Backlog Diversified Customer Backlog Diversified % of Backlog % Total Backlog from Divers
Slide 20: Backlog growth highlights shift in fuel cell demand
Backlog growth highlights shift in fuel cell demand1 • Power Products backlog has more than doubled since end of Q1’22 Power Products account for • Large TS contracts have historically supported the backlog ~75% of total & masked shift in fuel cell demand growth over past 18 months corporate backlog
Slide 21: Ballard's 3D Approach to Customer Platforms
Ballard’s 3D Approach to Customer Platforms • Customers develop vehicle platforms for serial production around specific components, including a fuel cell • Once a platform is developed, OEMs need to re-engineer platforms to switch parts, such as a fuel cell • By supporting customers at the platform
Slide 22: Ballard's 3D Customer Platforms: 2020
Ballard’s 3D Customer Platforms: 20201 Stationary Power Customer Developing Demonstrating Deploying 22 1 See Slide Notes
Slide 23: Ballard's 3D Customer Platforms: Today
Ballard’s 3D Customer Platforms: Today1 New customer platform after 2020 Existing platform in 2020 European Tier 1 Truck OEM European Tier 1 Truck OEM Stationary Power Customer North American Vehicle Integrator Stationary Power Customer European Bus OEM European Bus OEM Stationary APAC Bus Power OEM
Slide 24: Ballard's 3D Evolution: Solaris (Bus)
Ballard’s 3D Evolution: Solaris1 (Bus) 1x70-100kW Module per bus Developing Demonstrating Deploying 100 90 80 70 60 Module Orders (#) 50 40 30 20 10 0 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 24 1 See Slide Notes
Slide 25: Ballard's 3D Evolution: Siemens (Rail)
Ballard’s 3D Evolution: Siemens1 (Rail) 2x200kW Module per train Developing Demonstrating Deploying 120 114 100 80 Module Orders (#) 60 40 20 1 2 0 2017 2018 2019 2020 2021 2022 25 1 See Slide Notes
Slide 26: Ballard's 3D Evolution: Anglo American / First Mode (Off-road)
Ballard’s 3D Evolution: Anglo American / First Mode1 (Off-road) 10x100kW Module per truck Developing Demonstrating Deploying 100 95 90 80 70 Module Orders (#) 60 50 40 30 20 12 8 7 10 0 2019 2020 2021 2022 2023 26 1 See Slide Notes
Slide 27: Ballard's value proposition in key markets
Ballard’s value proposition in key markets1 Any route, No compromise Long range Marine type- Ultra-heavy Rapid any time heavy payloads high-speed travel approved product payloads time-to-power Long distance Modular flexible High operational Remote & Quick refueling Flexible operation routes power so
Slide 28: 2030E Total Addressable Markets (TAM)
2030E Total Addressable Markets (TAM)1,2,3,4,5 BUS Truck Rail Marine Emerging Markets Stationary Power Total Addressable ~$7 ~$15 ~$195 ~$40 ~$50 – Market ($B) SAM* Fuel Cell TAM 2030 ($B) ~$2.0 ~$7.5 ~$0.2 ~$0.4 ~$1.5 ~$4.0 FC Adoption ~10-15% ~2-5% <5% `<5% <5% – (2030e) FC Volumes 50k transit LD
Slide 29: Fuel Cell module size by market vertical
Fuel Cell module size by market vertical1 50kW 100kW 200kW 1MW+ BUS Solaris, VanHool New Flyer, Wrightbus 70kW - 100kW TRUCK Sinotruk, Wisdom, Quantron | 50kW – 350kW RAIL Siemens, CPKC, Stadler | combined engine size: 400kW – 1.2MW+ MARINE Amogy, ABB, Norled | combined engine size: <1MW – 7MW+ OFF-
Slide 30: Bus Update
Bus Update1 European Tier 1 Truck OEM European Tier 1 Truck OEM • Added 7 new bus OEM partnerships Stationary Power Customer • Sales growth in EU & USA North American Vehicle Integrator based on HD module • Successful launch of new product (HD+) • Strong market share Stationary Power Customer EU: >7
Slide 31: Truck Update
Truck Update1 European Tier 1 Truck OEM European Tier 1 • Refined product & cost reduction strategy Truck OEM Stationary Power • Technical competence recognized by Customer North American Vehicle industry & OEMs Integrator • Recognized partner & supplier of FC module to OEMs & invitation to platform
Slide 32: Rail Update
Rail Update1 European Tier 1 Truck OEM European Tier 1 Truck OEM Stationary Power Customer • Significant expansion in CPKC project North American Vehicle • Growing interest from locomotive rail OEMs, Integrator integrators & end users • ZEV mandate for California use-case Stationary Power Customer l
Slide 33: Marine Update
Marine Update1 European Tier 1 Truck OEM European Tier 1 Truck OEM Stationary Power Customer • World’s first commercial ferry on PEM FC & North American Vehicle liquid H2 operational in 2023 Integrator • World’s first DNV Type Approval for FCwave 200kW in 2022 Stationary Power Customer • Key project
Slide 34: Emerging Markets Update
Emerging Markets Update1 European Tier 1 Truck OEM European Tier 1 Truck OEM Stationary Power Customer • ~10MW modules ordered YTD North American Vehicle from First Mode Integrator • Developed first gen mining truck product for field deployment Stationary Power Customer • Kicked off demonstration pr
Slide 35: Stationary Power Update
Stationary Power Update1 European Tier 1 Truck OEM European Tier 1 Truck OEM Stationary Power Customer • Total of 15 MW orders won with scheduled North American Vehicle delivery in 2022-2024 Integrator • FCgen 200 kW and MW container product launch Stationary Power Customer • Key project wins with C
Slide 36: Competing Technologies (Long haul truck example)
Competing Technologies (Long haul truck example) H2 O2 H2 PEM Fuel Cells Battery Electric H2 ICE Range & payload comparable to diesel Zero emission Vehicle level TCO Broad range of available products CAPEX Scaled infrastructure availability Extreme climate performance 36 1 See Slide Notes
Slide 37: Competitive pricing dynamics
Competitive pricing dynamics1 Competitive market $1,200 dynamics driving prices down $1,000 FC Engine Average Selling Price ($/kW) • Strong pricing competition from $800 OEMs & new market entrants • ~30% market price reduction since 2021 $600 • Tier 1s expected to launch demo product $400 in low vol
Slide 38: Customer decision making criteria
Customer decision making criteria1 TECHNICAL QUALITATIVE Performance, efficiency & durability Product track record & references Power requirements After sales service Infrastructure practicality & support Product form factor Balance sheet Regulatory Brand strength compliance Price, TCU & Commercial
Slide 39: TCU
TCU Marc Niefer, VP Truck & Bus 39
Slide 40: What is TCO / TCU?
What is TCO / TCU? TCU TCO Use Case Total Cost of Use Total Cost of Ownership Customer & Route Specific • Vehicle Capital Average total cost • Duty Cycle per kilometer driven • Driver Costs • Temperature/Climate over vehicle lifetime • Tolls • Refueling requirements Ballard’s • Fuel/energy costs • T
Slide 41: TCU is Unique to each case
TCU is Unique to each case • Powertrain • Application Infrastructure • Region • Infrastructure • Energy • Labour costs • Policy • Duty Cycle Powertrain Duty Cycle Application 41
Slide 42: TCU Case Study
TCU Case Study1 Powertrains Long-Haul Truck Fleet, Germany ICE-Diesel • 100 Trucks • Long-haul duty cycle (up to 800km) • Heavy-duty truck (40t HGV) Battery-Electric • Germany • 3rd party infrastructure (FCEV & BEV) • Green hydrogen H2 O2 Ballard Fuel Cell • Policy impacts included2 42 1, 2 See Slid
Slide 43: Average Lifetime TCU Snap Shot
Average Lifetime TCU Snap Shot Output = Average Total Cost over lifetime of vehicle when purchased in year 20## Energy Other OPEX Fuel: Diesel, hydrogen, electricity Tolls Insurance Application cost Maintenance Refueling time Downtime 20## TCU Payload loss $/km Driver OPEX Vehicle CAPEX Annual labor
Slide 44: TCU Case Study: Long-Haul Truck Fleet, Germany
TCU Case Study: Long-Haul Truck Fleet, Germany1,2 100-vehicle Long-Haul truck fleet in Germany, 3rd party fueling infrastructure, policy support included, assumes diesel €1.80/L, electricity €0.40/kWh, green H2 €13/kg in 2023, and €1.01 USD/EUR Energy Application Costs Vehicle CAPEX Infrastructure D
Slide 45: TCU Case Study: Long-Haul Truck Fleet, Germany cont.
TCU Case Study: Long-Haul Truck Fleet, Germany cont.1,2 • For long-haul trucks, in Germany, TCU Outlook Long-haul Truck in Germany – incl. Policy FCEV / ICE parity estimated in 2027 $2.5 • Primary drivers between 2023 to 2026 TCU (US$/km) €13/kg green H2 to achieve parity: $2.0 • Improved hydrogen p
Slide 46: TCU Case Study: Long-Haul Truck Fleet, Germany cont.
TCU Case Study: Long-Haul Truck Fleet, Germany cont.1,2 TCU very sensitive to fuel pricing → +/-10% change in fuel cost moves FCEV/ICE & FCEV/BEV parity 2yrs $2.4 +/- 10% Fuel Sensitivity Base Fuel Pricing Diesel: €1.80/L flat ~2yr parity shift $2.0 Electricity: €0.40/kWh flat FCEV:ICE TCU (US$/km)
Slide 47: TCU Case Study: Long-Haul Truck Fleet, California
TCU Case Study: Long-Haul Truck Fleet, California1,2 100 Long-Haul Class 8 truck fleet in California, 3rd party fueling infrastructure, assumes diesel $1.25/L, electricity $0.17/kWh, & H2 $8/kg2 in 2023 Long-Haul Policy Support Sensitivity3 Heavy-Duty Truck, California $2.4 ~2yr parity shift ~1yr pa
Slide 48: Leveraging TCU modeling at Ballard
Leveraging TCU modeling at Ballard1 Customer Specific Duty Cycles Know your customers Optimize product development to Speed benefit customer value proposition World class modeling capabilities Target competitive use cases to inform corporate prioritization Time 48 1 See Slide Notes
Slide 49: Technology Development & Cost Reduction - Stack
Technology Development & Cost Reduction - Stack Dr. Kevin Colbow, CTO 49
Slide 50: Breaking down our products
Breaking down our products1 MEA Stack Module Heart of a Fuel Cell Fuel Cell Powerhouse Fuel Cell Engine Key Impacts Reliability & performance Key Impacts Key Impacts Size/fit, cost, durability Efficiency, TCU, fit Future Development Reduced catalyst loading Future Development Future Development Impr
Slide 51: MEA: leading performance
MEA: leading performance MEA power density improvements1 1.7 • >40 years of MEA development, 1.6 2022 Ballard has refined MEA technology, MEA areal power density (W/cm2) 1.5 2021 a core component of fuel cell stacks 1.4 2019 • Power density, fuel efficiency, 1.3 1.2 durability, cost & catalyst loadi
Slide 52: Bipolar Plates (BPP): diverse technical experience & expertise
Bipolar Plates (BPP): diverse technical experience & expertise1 Durability • BPP designed & manufactured in-house, focused on optimizing durability & cost efficiency • BPP base material on-going industry discussion Lowest Volumetric Cost Power Density → a single optimal plate material for all applic
Slide 53: Stack: proven stack performance & technology
Stack: proven stack performance & technology1 • Stack: MEAs + Bipolar Plates + Hardware / Enclosure • Ballard’s commercial fuel cell stacks are fully validated in commercial applications with, >670 MW products deployed & >150 million km in-service globally1 Ballard fuel cell stacks are durable, effi
Slide 54: Update on 3x3 Stack Cost Reduction Program
Update on 3x3 Stack Cost Reduction Program 2020 – Key Priorities 2023 – Status Update1 Manufacturing Manufacturing scale-up & automation Reduced direct labour by ~30% Materials utilisation improvement Achieving >99% materials utilisation Process yield improvement Reduced direct materials by ~8% Mate
Slide 55: Stack Cost Reduction Achievement & Outlook
Stack Cost Reduction Achievement & Outlook1,2 $/kW 3x3 program has led to >60% stack cost reduction to date with path to >70% with increased volume in 2024 (at 2018 conditions) Future cost reductions driven by new MEA design & advanced manufacturing processes 2018 2024 2026 ~80% reduction in stack c
Slide 56: Example of Future Stack Design Development
Example of Future Stack Design Development Change in stack enclosure design has potential to improve power density >10%1 Current Potential Stainless Steel Compression plate system compression straps Maximizing cell count through stack design changes results in anticipated improved product elasticity
Slide 57: Technology Development & Cost Reduction - Module
Technology Development & Cost Reduction - Module Dr. Mircea Gradu, CEngO 57
Slide 58: Balance of Plant & Design Driven Cost Reduction
Balance of Plant & Design Driven Cost Reduction1 2019 2021 2023 FCmove-HD FCmove-HD+ FCmove-XD (70kW) (100kW) (120kW) ~35% ~20% fewer parts fewer parts Significant ~50% assembly manufacturing time reduction time reduction Driving down cost by simplifying system design, reducing part count & joint su
Slide 59: Module Cost Down Outlook
Module Cost Down Outlook1 Stack cost Balance of Plant cost Today’s module cost module cost ~70% reduction targeted Stack Cost Reduction Program → stack accounts for ~30-50% module cost BOP Cost Reduction Program → BOP accounts for 50-70% module cost BOP cost reduction critical to significantly reduc
Slide 60: Module Roadmap: Introduction to Core Products
Module Roadmap: Introduction to Core Products1 50kW 100kW 200kW 1MW+ BUS TRUCK MARINE RAIL OFF-HIGHWAY STATIONARY Core product component & design standardization for increased efficiency, vendor purchasing power, & manufacturing optimization Small Medium Large 2X Large Core Core Product Core Product
Slide 61: Software: Improving TCU w/ optimised hardware functionality
Software: Improving TCU w/ optimised hardware functionality Increased software sophistication leading to improved performance & features of modules1 Non-optimized power curve Software-optimized power curve Improvements in module performance, durability, driveability, & efficiency via software1 61 1
Slide 62: Strategic investment in product development since 2020
Strategic investment in product development since 20201 MEA Stack Module Heart of a Fuel Cell Fuel Cell Powerhouse Fuel Cell Engine Key Impacts Key Impacts Key Impacts Fuel efficiency & durability Size/fit, cost, durability Efficiency, TCU, fit Future Development Future Development Future Developmen
Slide 63: Global Manufacturing
Global Manufacturing Mark Biznek, COO 63
Slide 64: Manufacturing: investments to date & near term outlook
Manufacturing: investments to date & near term outlook1 Implemented Expanded MEA Opened USA Commissioning Engine Pilot Production Engine of NextGen Production Line Capacity 6x Assembly Plant Plate Line Q4 2020 Q4 2022 late 2023 Q3 2019 Q1 2021 Q1 2023 early 2025 WBJV Fully Stack & Commissioned Autom
Slide 65: Manufacturing: Future investments
Manufacturing: Future investments1 Near-term (2023 – 2025) Mid-term (2026 – 2027) detailed planning in-flight currently being scoped / developed Invest in sealing capabilities & capacity Expand global MEA capacity MEA to enable volume growth (Burnaby) (Local for Local) Optimizing WBJV plate producti
Slide 66: Global & Local Strategy
Global & Local Strategy1 • Focus capital allocation in strategic locations to support local fuel cell demand growth • Conducting strategic review of manufacturing options in US & Europe • Comparative analysis with China MEA localization plan • Local for Local considerations: • Access to low cost, lo
Slide 67: Local for Local Program
Local for Local Program1 Prior Capacity Planning Environment Current Capacity Planning Environment 67
Slide 68: People, Culture & ESG
People, Culture & ESG Jyoti Sidhu, CPO 68
Slide 69: Our global team
Our global team1,2 Headcount distribution by function Headcount by region 18 11% 254 10% Tech & Prod Dev North America 1,300 48% Operations 1,300 Europe Total Workforce General & Admin Total Workforce APAC* Commercial 31% 1,004 69 1, 2 See Slide Notes
Slide 70: EH&S Performance
EH&S Performance Our Goal: Everyone goes home safe at the end of the day • 160 consecutive days without lost time injury 3.5 3.0 Lost Time Frequency Rate • 0 injuries 2023 year to date1 2.5 2.0 1.78 • Reportable injury frequency rate lower than 1.5 industry average for past four years2 1.0 1.40 0.93
Slide 71: Our People Drive our Success
Our People Drive our Success1 We continue to implement actions that promote diversity, equity and inclusion (DEI) • Our workforce represents >32 countries 20+ years 9% 15 - 20 years 2% • Established a refreshed DEI strategy in 2022 Years of Service 10 - 15 years 3% • Increased women representation a
Slide 72: Our People Drive our Success
Our People Drive our Success1 Employee Engagement Employee Retention 16 >94% Consecutive years of Participation rate for past four Employee Engagement Surveys years 96% 88% 2022 Results 77% 78% 20232 2022 Would recommend Ballard Feel their opinions are valued as a great place to work 84% 82% 95% 96%
Slide 73: Our Future of Work
Our Future of Work Invested in Canadian workspaces to enhance collaboration & facilitate hybrid workforce • Transformed previously static areas for single task work into dynamic & flexible work spaces • Repurposed large boardrooms into collaboration & training rooms • Upgraded technology for increas
Slide 74: Bus Comparative Life Cycle Assessment
Bus Comparative Life Cycle Assessment1 (FCmove™-HD) Life Cycle Emissions (tCO2e) Diesel FCEB ~27% lower Conventional Energy Electric GHG emissions vs. diesel bus (powered by grey H2) Fuel Cell FCEB ~87% lower GHG emissions vs. diesel bus Diesel (powered by green H2) Energy Clean Electric FCEB ~24% l
Slide 75: Ballard's sustainability impact
Ballard’s sustainability impact Ballard fuel cell technologies are facilitating the energy transition & helping customers achieve important emissions targets In 2022, Ballard powered FCEVs • ‘Cradle to grave’ assessment1 prevented ~53 million gallons • FCmove™-HD used in bus application has of consu
Slide 76: Commitments for the Planet
Commitments for the Planet1 Mission Carbon Zero: Plan to achieve carbon neutrality for corporate emissions consists of Carbon Neutral by 2030 six goals supporting decoupling of emissions growth from business growth KEY PERFORMANCE INDICATORS 2020 2021 2022 2030 TARGET1 CO2 emissions in scope 1 & 2 (
Slide 77: Financial Outlook
Financial Outlook Paul Dobson, CFO 77
Slide 78: Evolution to product company
Evolution to product company1 Technology Solutions • Strategic evolution into a product company • Increased fuel cell sales revenue (absolute & proportion of total revenue) Power Products • Resulting in shift in cost structure, margin, & capital outlook 78 1 See Slide Notes
Slide 79: Mid & long-term revenue outlook
Mid & long-term revenue outlook1 $1,400 Revenue Outlook1 ($M) $1,200 $1,000 • Annual revenue growth expected, $800 largely driven by power products growth $600 • Inflection point anticipated $400 in latter half of decade as H2 production $200 commissioned & TCU parity reached $0 2022 2023 2024 2025
Slide 80: Gross Margin analysis & outlook
Gross Margin analysis & outlook1 Gross Margin Outlook1 (%) • Targeting mid-20s gross margin by 20301 $0 • Opportunities to expand beyond 2030 $0 • Expansion driven by: $0 • Product scaling & commercial volume sales • Cost reductions outpacing pricing pressure through $0 evolution to core products &
Slide 81: Total Operating Expense Outlook
Total Operating Expense Outlook1,2 • Total operating expenses Total Operating Expenses as % Revenue expected to stay relatively 18% flat in near-term Total Operating Expenses ($M) 8% • Cost structure anticipated to 8% decrease as a percent of revenue 21% • 2023 Total Opex Guidance $135 – 155M 45% 81
Slide 82: Capital Expenditure Outlook
Capital Expenditure Outlook1,2 • Incremental capital investment expected Capital Expenditures1,2 ($M) for capacity expansion in target markets in line with ‘Local for Local’ strategy • Planned capital allocation with some timing flexibility, dependent upon revenue uptake & policy support opportuniti
Slide 83: Pathway to profitability
Pathway to profitability1 $370 Adjusted EBITDA Outlook1 ($M) $270 $170 • Top line revenue growth, margin expansion & cost $70 management required to achieve -$30 2023 20 2024 2025 2026 2027 2028 2029 2030 expected EBITDA breakeven in latter half of the decade1 -$130 -$230 83 1 See Slide Notes
Slide 84: Balance sheet management
Balance sheet management1 • Currently have ~$864M cash, no debt • Focus on optimizing cash runway & maintaining balance sheet strength • Organic growth prioritized over inorganic investment opportunities • Exploring government funding opportunities to support growth plans 84 1 See Slide Notes
Slide 85: Closing Remarks
Closing Remarks Randy MacEwen, President & CEO 85
Slide 86: Summary
Summary1 Ballard has substantially grown its customer base while existing customers have climbed the fuel cell maturity curve While increasing market & regional diversification with growing proportion of revenue & backlog from power products We have achieved progress in stack cost reduction & expect
Slide 87: Where is Ballard going & what to expect
Where is Ballard going & what to expect1 Order Backlog New customer platforms in key verticals & customers maturing in fuel cell adoption Growth Product Revenue Increasing product driven revenue as fuel cell adoption scales Execution Cost Product volume scale, design evolution & advanced manufacturi
Slide 88: Slide Notes
Slide Notes 88
Slide 89: Slide Notes
Slide Notes Slide 6 - none Slide 23 Slide 32 Slide 7 1. As of June 13, 2023; Based on company’s current business plans 1. Based on company’s current business plans and the current 1. Based on company’s current business plans and the current and the current business environment, which are subject to
Slide 90: Slide Notes Cont.
Slide Notes Cont. Slide 43 – none data; Fuel Cell cost based on Ballard FCmove-XD product line. Slide 58 Slide 44 Energy pricing assumed Diesel $1.25/L flat, Electricity $0.17/kWh 1. Based on company’s current business plans and the current 1. All Powertrain cases assumes a purchased fleet size of 1
Slide 91: Slide Notes Cont.
Slide Notes Cont. Slide 68 – none hybrid by reviewing readily available scientific literature on LCAs. Slide 81 Slide 69 The main source of data used for analysis came from the Life 1. Based on company’s current business plans and the current 1. As of December 31, 2022; Based on company’s current bu