Ballard Power Systems Inc. · TSX:BLDP
Ballard Power Systems — Q2 2020 Earnings Presentation
17 slides from Ballard Power Systems's earnings presentation, Aug 6, 2020
Slide 1: Q2 2020 Results Conference Call
Q2 2020 Results Conference Call August 6, 2020 Nasdaq & TSX Ticker: BLDP Power to Change the World® 1 BALLARD.COM
Slide 2: Conference Call Participants
Conference Call Participants Randy MacEwen President & CEO Tony Guglielmin CFO Power to Change the World® 2 BALLARD.COM
Slide 3: 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 4: Q2 2020 Financial Results
Q2 2020 Financial Results • $25.8M revenue • 21% gross margin • ($8.6)M Adjusted EBITDA • $170.3M cash reserves at end-Q2 • Results were consistent with our expectations, reflecting a modest impact from COVID-19 Power to Change the World® 4 BALLARD.COM
Slide 5: COVID-19 Pandemic
COVID-19 Pandemic • Top priority remains health and safety of employees, contractors, customers, partners • Business continuity has been preserved • Modest Q2 impact on supply chain – working to mitigate overall 2020 risk • Modest delays in customer orders – expectation for long-term demand accelera
Slide 6: EU Developments
EU Developments • In May, European Commission launched €750B economic recovery plan, including Green Deal • July report – “A Hydrogen Strategy for a Climate-Neutral Europe”: o 2020-24 6GW of renewable hydrogen electrolysers & 1M tons of hydrogen o 2025-30 40GW & 10M tons o 2030+ renewable hydr
Slide 7: EU Developments (Cont'd)
EU Developments (Cont’d) • In Q2 Germany, Norway and Spain published National Hydrogen Strategies • German commitment: €9B for green hydrogen & 5GW of electrolysers by 2030; further 5GW by 2040 • Q2 orders for 15 modules received from Wrightbus for U.K. FCEBs o Total orders for 50 modules now in-han
Slide 8: U.S. Developments
U.S. Developments • CARB passed Advanced Clean Truck Regulation in Q2 all trucks sold in CA to be zero-emission by 2045 • 15 states signed MOU 30% of MHD trucks to be zero-emission by 2030, and all by 2050 • Transit agencies have begun publishing zero- emission bus rollout plans, in compliance w
Slide 9: China Developments
China Developments • Weichai-Ballard JV has begun production activities and assembly of LCS stacks and LCS-based modules Power to Change the World® 9 BALLARD.COM
Slide 10: China Developments (Cont'd)
China Developments (Cont’d) • Awaiting updated national policy • Recent local policies – o Shandong Province to deploy 50,000 FCEVS and 200 HRS by 2030 o Qingdao City to deploy 8,000 FCEVs, 30 FCEB lines, 2 fuel cell tram lines and 50 HRS by 2030 o Guangzhou City to deploy FCEVs as 30% of all public
Slide 11: Virtual Investor and Analyst Day 2020
Virtual “Investor and Analyst Day 2020” • Tuesday, September 29th • 10:00am-to-4:00pm Eastern Time • Information available via link from homepage at www.ballard.com • Agenda & webcast dial-in details will be posted in the coming weeks Power to Change the World® 11 BALLARD.COM
Slide 12: Revenue and Gross Margin
Revenue and Gross Margin REVENUE GROSS MARGIN $49.8M 23% 21% 21% 2020 20% $39.7M 2019 $25.8M $23.7M Q2 YTD Q2 YTD • Q2 2020 Revenue +9%, to $25.8M • Q2 2020 Gross Margin -2-points, to 21% o +62% Power Products, to $16.0M o Reflects shift toward lower overall +94% Heavy Duty Motive, to $12.5M produ
Slide 13: Cash Operating Cost Base and Adjusted EBITDA
Cash Operating Cost Base and Adjusted EBITDA CASH OPERATING COST BASE * ADJUSTED EBITDA # $23.8M 2020 Q2 YTD $17.7M 2019 ($5.0)M $11.6M ($8.6)M $8.4M Includes Q2 share of losses in joint venture investments in China of ($2.9M) ($13.6)M Includes YTD share of losses in joint venture investments in Chi
Slide 14: Liquidity
Liquidity • Q2 2020 Cash Used By Operating Activities increased to ($14.8)M o Reflects cash operating losses of ($5.3) million and capital outflows of ($9.5) million $170.3M • End-Q2 2020 cash reserves of $170.3M $163.7M 2020 2019 • Cash reserves include net proceeds of approximately $12.2M from ATM
Slide 15: Order Backlog
Order Backlog End-Q2 2020: Order Backlog1 of $155.5M and 12-Month Order Book2 of $101.0M ORDER Order Backlog Orders Received Orders Delivered Order Backlog BACKLOG at End-Q1 2020 in Q2 2020 in Q2 2020 at End-Q2 2020 Total Fuel Cell $169.4M $11.9M $25.8M $155.5M Products & Services 1 Order Backlog =
Slide 16: Q&A
Q&A Power to Change the World® 16 BALLARD.COM
Slide 17: BALLARD.COM
Power to Change the World® 17 BALLARD.COM
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