Ballard Power Systems Inc. · TSX:BLDP

Ballard Power Systems — Q3 2013 Earnings Presentation

18 slides from Ballard Power Systems's earnings presentation, October 2013

  1. Slide 1: Investor Presentation

    ® NASDAQ:BLDP  TSX:BLD Investor Presentation October 2013

  2. Slide 2: Forward Looking Statements

    Forward Looking Statements NASDAQ:BLDP  TSX:BLD 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 expecte

  3. Slide 3: Q3 Highlights

    Q3 Highlights* NASDAQ:BLDP  TSX:BLD • Revenue o +65%, to $17.0M • Gross Margin o +16-points, to 28% • Cash Operating Cost o +1% improvement, to $6.6M • Adjusted EBITDA o +86% improvement, to ($0.9)M * All comparisons are to Q3 2012 3

  4. Slide 4: Strategic Direction

    Strategic Direction NASDAQ:BLDP  TSX:BLD • Aggressively building shareholder value through: • Leveraging product leadership and Product Sales early mover position in Telecom Backup Power & Material Handling Engineering • Anchored by 4-year contract with Volkswagen utilizing industry-leading Service

  5. Slide 5: Recent Progress

    Recent Progress NASDAQ:BLDP  TSX:BLD * * 2011 revenue adjusted for Contract Manufacturing due to the completion of automotive manufacturing supply agreements with Daimler in October 2011 5

  6. Slide 6: Approaching An Inflection Point

    Approaching An Inflection Point NASDAQ:BLDP  TSX:BLD Revenue Q3 2013 = $17.0M Adjusted EBITDA Q3 2013 = ($0.9)M Gross Margin Cash Opex Q3 2013 = 28% Q3 2013 = $6.6M Break-even Adjusted EBITDA is achievable at revenue of ~$20M / quarter 6

  7. Slide 7: Telecom Backup Power

    Telecom Backup Power NASDAQ:BLDP  TSX:BLD • Strong 2013 performance o Q3 +6% revenue, to $3.9M o YTD +144% revenue, to $14.6M Ballard ElectraGen™-ME fuel cell system installed o YTD +217% shipments, to 619 ElectraGenTM systems by Nokia Solutions and Networks (NSN) at test • Future growth driven by:

  8. Slide 8: Material Handling

    Material Handling NASDAQ:BLDP  TSX:BLD • Increasing 2013 volumes o Q3 +51% revenue, to $2.1M o YTD -4% revenue, to $4.5M o YTD +8% shipments, to 1,681 fuel cell stacks Ballard FCvelocity®-9SSL Ballard FCgen®-1020ACS Fuel Cell Stack Fuel Cell Stack • Future growth driven by: o Plug Power balance she

  9. Slide 9: Engineering Services

    Engineering Services NASDAQ:BLDP  TSX:BLD • Strong 2013 performance o Q3 +77% revenue, to $6.5M o YTD +50% revenue, to $14.9M • Underpinned by 4-year contract with Volkswagen AG  C$60-100M value o Fuel cell product design, testing & system integration for current VW fuel cell system & development

  10. Slide 10: Development Stage Markets

    Development Stage Markets NASDAQ:BLDP  TSX:BLD Key Customers • Strong 2013 performance o Q3 +188% revenue, to $4.5M, including:  Shipment of 4 bus modules (2 to Van Hool in Europe & 2 to Azure in China)  $2M licensing revenue from Azure Hydrogen contract • Leveraging extensive IP portfolio with A

  11. Slide 11: Revenue and Gross Margin

    Revenue and Gross Margin NASDAQ:BLDP  TSX:BLD Revenue (millions) Gross Margin (%) Guidance $55.8 >$57.0M $44.1 • Q3 +65%, to $17.0M • Q3 +16-points, to 28% • YTD +61%, to $43.9M • YTD +11-points, to 25% • $43.3M 12-month rolling order book • Reflects shift in product mix to higher margin • Key grow

  12. Slide 12: Cash Operating Cost Base and Adjusted EBITDA

    Cash Operating Cost Base and Adjusted EBITDA NASDAQ:BLDP  TSX:BLD Cash Operating Cost Base* (millions) Adjusted EBITDA* (millions) Guidance >($11.0)M Mid-$20M * Measures operating expenses excluding stock-based compensation expense, depreciation * Measures EBITDA adjusted for stock-based compensati

  13. Slide 13: Liquidity

    Liquidity NASDAQ:BLDP  TSX:BLD • Q3 +68% improvement in Cash Operating Loss, to ($2.3)M … offset by ($2.5)M increase in working capital o Resulted in Q3 Cash Used by Operating Activities of ($4.8)M o YTD +40% improvement in Cash Used by Operating Activities, to ($16.5)M • End-Q3 cash reserves of $1

  14. Slide 14: Summary

    Summary NASDAQ:BLDP  TSX:BLD • Strong Q3 performance on the top line and bottom line • Confirming 2013 full year guidance for – o Revenue growth in excess of 30%; and o Improvement in Adjusted EBITDA in excess of 50% 14

  15. Slide 15: Appendix

    NASDAQ:BLDP  TSX:BLD APPENDIX 15

  16. Slide 16: Q3 & YTD 2013 Results

    Q3 & YTD 2013 Results NASDAQ:BLDP  TSX:BLD (Millions of U.S. dollars) Three months ended September 30, Nine months ended September 30, 2013 2012 % Improvement 2013 2012 % Improvement GROWTH Fuel Cell Product & Service Revenue: Telecom Backup Power $3.9 $3.7 6% $14.6 $6.0 144% Material Handling $2.1

  17. Slide 17: Who We Are

    Who We Are NASDAQ:BLDP  TSX:BLD • Ballard is the global leader in clean energy proton exchange membrane (“PEM”) fuel cell products and services … design, manufacturing & deployment o Telecom Backup Power  2,500 systems … 9MW’s of power o Engineering Services  C$60-100M contract with Volkswagen o

  18. Slide 18: Fuel Cell Product Portfolio

    Fuel Cell Product Portfolio NASDAQ:BLDP  TSX:BLD Fuel Cell Stacks • 500W-2kW • 2-8kW • 4-20kW • 100kW • Up to 8k hrs • Up to 30k hrs • Up to 12k hrs • > 5k hrs Fuel Cell Modules • 75-150kW • Up to 20k hours Complete • 2kW & 5kW Fuel Cell • Direct hydrogen • 2.5kW & 5kW • Methanol fuelled Systems •

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