Ballard Power Systems Inc. · TSX:BLDP
Ballard Power Systems — Investor Presentation (May 2022)
45 slides from Ballard Power Systems's investor presentation, May 2022
Slide 1: Investor Presentation
Investor Presentation Nasdaq & TSX: BLDP May 2022 1
Slide 2: Ballard Introduction
Ballard Introduction1 40+ years developing industry leading hydrogen Proton Exchange Membrane (PEM) fuel cell technologies with over 1,100 employees worldwide >1,400 patents & applications Leading PEM fuel cell technology owned & licensed Heavy-duty mobility & power generation Focus on applications
Slide 3: Key Messages
Key Messages Establishing Tracking Energy transition Ballard is the Flexible business key partnerships towards pace is leader in PEM fuel model across & customer mid & long accelerating cell technology multiple verticals relationships term targets4 Accelerating policy 40+ years of market Ballard MEA
Slide 4: The energy transition is accelerating resulting in tremendous opportunity for the hydrogen economy
The energy transition is accelerating resulting in tremendous opportunity for the hydrogen economy Total Global GHG Emissions Covered in National Net-Zero Targets1 ~90% of global GHG emissions National net-zero targets • 93 countries with net-zero targets by 20501,2 cover ~90% of (~70% global GDP &
Slide 5: Hydrogen is a key enabler for a net-zero world
Hydrogen is a key enabler for a net-zero world 2030 Clean H2 Demand Forecast by End Use (MT per annum)1 Hydrogen… ~10 75MT • Provides high energy density compared to ~20 ~2/3 natural gas or diesel new • Has low to zero emissions (blue / green H2) demand ~45 • Has a wide array of applications across
Slide 6: Unprecedented global hydrogen investment & development
Unprecedented global hydrogen investment & development • Decreasing cost & increasing availability of clean Global Clean H2 Production Outlook3 hydrogen removes key barrier to FCEV adoption • ~$700B cumulative investment required by 2030 to 18MT reach government stated targets1 • ~$160B committed H2
Slide 7: Ballard's key role in the expanding hydrogen value chain
Ballard’s key role in the expanding hydrogen value chain Ballard is a world leader in the design & manufacturing of PEM fuel cell engines for medium- and heavy-duty mobility and stationary power applications. Hydrogen Infrastructure Production & Distribution End-Use Electricity & Electrolyzers, SMR,
Slide 8: 2030E Total Addressable Market (TAM)
2030E Total Addressable Market (TAM)1 TAM Comments 2030E; US$B Included: Global; M&HD Trucks (Class 4+) - ~$115B TAM; • Ballard focuses on applications with ~$195 LD Truck (Class 2-3) ~$80M TAM Excluded: Vans & passenger trucks TAM Assumption: ~11M trucks; large addressable markets with M&HDT: 200 k
Slide 9: FCEV provide a strategic value proposition for heavy-duty mobility
FCEV provide a strategic value proposition for heavy-duty mobility Fuel Cell Trucks: the Best Zero-Emission Fuel cell electric vehicles (FCEVs)… Alternative to Diesel • Are the best zero-emission diesel ICE alternative for medium & heavy-duty mobility: • Similar payload to diesel truck • Quick refue
Slide 10: Ballard has extensive experience & is the leader in PEM fuel cells for medium & heavy-duty mobility
Ballard has extensive experience & is the leader in PEM fuel cells for medium & heavy-duty mobility 40+ year evolution of Ballard’s fuel cell technology Translating over 100 million kilometers of in-service experience into Ballard’s 13th generation stack & 8th generation fuel cell module1 POTENTIAL
Slide 11: >100Mkm in-service Ballard experience → proven durability & performance
Leading & proven FCEV technology Leading Stack Power Density Ballard uniquely designs & manufactures Amongst Peers1,2 proprietary hydrogen fuel cell MEAs, plates, stacks & modules • Volumetric Power Density: important for space allocation in vehicle (engine compartment, roof, etc.) • ~4kW/L is typic
Slide 12: Rapidly decreasing cost curve driving TCO reduction
Rapidly decreasing cost curve driving TCO reduction HDT FCEV Expected to be Most Competitive TCO Before 20301 • Estimated to reach breakeven parity of heavy-duty truck FCEV & BEV by ~2025 FCEV & diesel ICE by ~20281 • Key steps to accelerate FCEV TCO reduction: • Decrease capital costs through advan
Slide 13: Technological building blocks for cross-vertical applications
Technological building blocks for cross-vertical applications1 MEA & Stacks Modules Applications FCmoveTM 70-100kW Leading MEA & • Leading fuel cell technology stack technology platform allows for market foundational to all fuel diversification of product cell modules FCwaveTM 200kW • Product standa
Slide 14: Ballard is geographically diversified in regions of high hydrogen demand growth & policy support
Ballard is geographically diversified in regions of high hydrogen demand growth & policy support1 India FCEBs with Tata on the road; MOU with Adani for FCEV development & deployment South Africa FCEV mining truck pilot with Anglo American underway 14 13 1 See Slide Notes
Slide 15: Ballard's sustainability impact
Ballard’s sustainability impact Ballard fuel cell technologies are facilitating the energy transition & helping customers achieve emissions targets In 2021, Ballard powered FCEVs prevented ~52 million gallons of consumed diesel2 • ‘Cradle to gate’ assessment1 • Aluminum & platinum account for ~60% o
Slide 16: Ballard 2022 outlook
Ballard 2022 outlook1 Total Operating Costs2 Capital Expenditures3 $140M – $160M $40M – $60M Continued investment in research & Investment in testing capabilities, product development ahead of the adding production, lab and hydrogen growth curve engineering equipment & expanded Advancing new technol
Slide 17: Appendices
APPENDICES 17
Slide 18: Appendix A: Verticals
APPENDIX A VERTICALS 18
Slide 19: Bus
Bus1 Current BDLP FCEB Key Partners & Customers TAM2 Mkt Share Solaris (Poland), Wrightbus (UK), Fuel Cell Size Deployed $15B Europe: ~80%; N.Am. >80%; VanHool (Belgium), New Flyer (US), Adani 70kW – 100kW ~1,400 Buses China: ~40% (India), ADL (UK), Widsom (HK), Doosan (Korea) • Value Proposition: Z
Slide 20: FCEBs proven to be competitive
FCEBs proven to be competitive1 Foothill Transit Authority FCEB vs. BEB Cost Comparison ~20% Foothill Transit Authority lower Greater Los Angeles Area, California life-cycle cost Deploying full zero emission bus fleet >300 buses planned by 2030 FCEB fleet >20% lower cost than BEB for longer range ro
Slide 21: Truck
Truck1 Key Partners & Customers TAM2 MAHLE (Europe), Hexagon Purus (US), Fuel Cell Size Deployed ~$195B Linamar (North America & Europe), Weichai (China), 50kW – 360kW ~2,200 Trucks Quantron (Europe) • Value Proposition: FCETs provide long range, fast refueling and full route flexibility, consistent
Slide 22: Rail
Rail1 Key Partners & Customers Fuel Cell Size Deployed / SAM2,3 In-Development Siemens (Germany), CRRC (China), ~600kW passenger & shunter $7B CP Rail (Canada), Sierra Northern (US) ~1.2MW freight 8 / 15 trains • Value Proposition: Fuel cell trains run on existing tracks and have comparable refuelin
Slide 23: Marine
Marine1 Current BDLP Fuel Cell Fuel Cell Size Deployed / TAM2 Key Partners & Customers $40B Mkt Share Norled (Norway), ABB (Norway) <1MW – 7MW+ In-Development >15% 1 / 7 vessels • Value Proposition: Modular fuel cell systems can be deployed in parallel, dispatchable configurations to meet variable p
Slide 24: Stationary power
Stationary power1 Key Partners & Customers Fuel Cell Size Deployed / CAT (US), HDF (France), Geopura/Siemens (EU), Fusion (EU), 1.7-5kW; In-Development Telia (Norway), Telenor (Norway), Motorola (Denmark), 200kW – 1.5MW Norlys (Denmark), Vattenfall (Sweden) ~4 MW / >5 MW • Value Proposition: Fuel ce
Slide 25: Appendix B: Geographic Markets
APPENDIX B GEOGRAPHIC MARKETS 25
Slide 26: Europe
Europe1 Policy Support & Commitments • GHG Goal: Reduce net GHG emissions by 55% from 1990 levels by 2030; net zero by 2050 • Hydrogen Commitments: 12 countries currently offer purchase subsidies for FCEB and/or FCET Key Partners & Customers Bus: Wrightbus, Solaris, Vanhool Rail: Siemens, Talgo Truc
Slide 27: China
China1 Policy Support & Commitments • GHG Goal: Peak GHG emissions by 2030 & carbon neutral before 2060 • Demonstration City Clusters: 5 initial demonstration city clusters announced (Beijing, Shanghai, Guangdong, Hebei, Henan) intended to incentivize development of full hydrogen value chain through
Slide 28: China FCEV demonstration city cluster policy
China FCEV demonstration city cluster policy1 • China initiating a four-year program to support local governments in researching hydrogen technology & developing a local, hydrogen value chain • Strong emphasis on industrialization & localization of fuel cell core components, consistent with Made In
Slide 29: United States
United States1 Policy Support & Commitments • GHG Goal: 50-52% reduction from 2005 levels by 2030; 100% carbon-free electricity by 2035 • $9.5B hydrogen infrastructure funding; Hydrogen Earth Shot targeting $1/kg green hydrogen by 2030; establish 4 regional hydrogen hubs • LowNo (clean bus FTA fundi
Slide 30: California
California1 Policy Support & Commitments • GHG Goal: Reduce GHG emissions to 40% below 1990 levels by 2030 • Committed to $10B decarbonization investment over 6 years • $1.7B: 1,000 zero-emission short-haul (drayage) trucks & 1,700 zero-emission transit buses • $1.8B for zero-emission trucks, buses,
Slide 31: Appendix C: Key Partnerships / Customers
APPENDIX C KEY PARTNERSHIPS / CUSTOMERS 31
Slide 32: Weichai / Ballard Joint Venture
Weichai / Ballard Joint Venture1 • History: Strategic collaboration established in 2018, located at Weifang City, Shandong Province. Ballard brings world class PEM fuel cell technologies and Weichai has global supply chain and commercial scale industrial manufacturing expertise. • Development: • Est
Slide 33: Mahle
Mahle1 • History: Ballard and Mahle announced collaboration agreement in September 2020 to develop a product platform, with a power output from 180kW to 360kW for heavy-duty and long-haul trucks (Class 7 & 8). Multi-year development initiative to develop a fuel cell as the lowest-cost solution for h
Slide 34: Linamar
Linamar1 • History: Linamar and Ballard entered into an agreement in 2021 to jointly develop and market a fuel cell powertrain and chassis system for cars, SUVs, and trucks (Class 1 & 2) for the North America and Europe markets. The partnership is intended to offer a ‘one-stop-shop’ for Class 1 & 2
Slide 35: Siemens
Siemens1 • History: Development agreement signed in 2017 to develop a 200kW fuel cell module for integration into Siemens’ new Mireo passenger train platform. Fuel cells can enable electrification with range, without requiring costly catenary wire infrastructure. • Development / Status: • The produc
Slide 36: Appendix D: Supplementary Information
APPENDIX D SUPPLEMENTARY INFORMATION 36
Slide 37: PEM differentiated amongst other fuel cell technologies
PEM differentiated amongst other fuel cell technologies1 Proton Exchange Membrane (PEM) • Primary applications: transportation, stationary & back-up power • Advantages: high power density, low operating temp (50-100°C), PEM Solid Oxide Alkaline durable, quick start, compact • Challenges: sensitivity
Slide 38: Total Ballard FC module cost
Total Ballard FC module cost1,2 Stack Fuel Cell Module MEA MEAs ~75% of Stack cost Stack ~30% of Module cost Platinum & Iridium only Targeting 70% Stack cost account for ~30% reduction by 2024 of MEA cost 38 1, 2 See Slide Notes
Slide 39: Global manufacturing capacity
Global manufacturing capacity1,2 HRB Harness Air Compr- Humid- Coolant essor ifier Pump MEA Stack Stack Bipolar Bipolar Hard- Hard- Plates Plates ware ware MEA Hoses MEA Enclosure MEAs DC/DC Controller Canada Stacks Power Output: ~1.4GW MEA Qty: ~6M Modules Canada Power Output: up to 1.8GW Stack Qty
Slide 40: '3x3' stack cost reduction plan
‘3x3’ stack cost reduction plan1 • Ballard’s ‘3x3’ fuel cell stack cost reduction targeting >70% stack cost reduction by 2024 (from 2018 costs) • ~40% Engineering Design delivering MEA and Plate, performance and lifetime improvements with lower cost materials • ~25% Supply Chain developing suppliers
Slide 41: 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 42: Slide Notes
Slide Notes Slide 2 locomotives, as of 2021, are converted to low/zero emission Slide 16 1. As of March 11, 2022. engines by 2030. Approximately double units refurbished year 1. Based on company’s current business plans and the current 2. Values included for the bus and truck applications only inclu
Slide 43: Slide Notes
Slide Notes Slide 23 (SD), Weifang (SD), Foshan (GD), Ningdong (NX) Slide 35 1. As of March 11, 2022; Based on company’s current business plans 3. Henan Cluster has not yet released formal numbers on FCEVs or 1. As of March 11, 2022; Based on company’s current business plans and the current business
Slide 44: Glossary
Glossary BEB: Battery Electric Bus LCS: Liquid Cooled Stack BEV: Battery Electric Vehicle LD: Light Duty BoP: Balance of Plant MEA: Membrane Electrode Assembly EMEA: Europe, Middle East & Africa MD: Medium Duty FCEB: Fuel Cell Electric Buses MDT: Medium Duty Truck FCET: Fuel Cell Electric Truck OEM:
Slide 45: Here for Life
Here for LifeTM Please contact Investor Relations for more information investors@ballard.com Ballard.com 45
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