Q Results Conference Call

Transcription

1 Q Results Conference Call May 2, 2018 Nasdaq & TSX Ticker: BLDP Power to Change the World 1

2 Conference Call Participants Randy MacEwen President & CEO Tony Guglielmin CFO Power to Change the World 2

3 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 shipments. These forward-looking statements reflect Ballard s current expectations as contemplated under section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Any such forward-looking statements are based on Ballard s assumptions relating to our financial forecasts and expectations regarding our product development efforts, manufacturing capacity, and market demand. These forward-looking statements involve risks and uncertainties that may cause our actual results to be materially different, including, general economic and regulatory changes, detrimental reliance on third parties, successfully achieving our business plans and achieving and sustaining profitability. For a detailed discussion of these and other risk factors that could affect Ballard s future performance, please refer to our most recent Annual Information Form. Readers should not place undue reliance on Ballard s forward-looking statements and Ballard assumes no obligation to update or release any revisions to these forward looking statements, other than as required under applicable legislation. All amounts are consolidated to include Ballard Power Systems Europe A/S and Protonex Technology Corporation results and are in U.S. dollars, unless otherwise noted. Power to Change the World 3

4 Agenda Strategic Progress YTD Randy MacEwen Q1 Financial Results Tony Guglielmin Power to Change the World 4

5 FCEV Addressable Market Weight (tons) 10,000 1, BEV FCEV Fuel Cell Electric Vehicles Light Commercial Vehicles Bio & (H2-based) synthetic fuels City Buses Trains & Trams Heavy Trucks Passenger Ships Planes Bubble size representing the relative annual energy consumption of this vehicle type in Small cars / urban mobility Medium-to- Large Cars, Fleets & Taxis ,000+ Average mileage per day/trip (km) Source: McKinsey & Company, Hydrogen Scaling Up for Hydrogen Council, November 2017, p. 31 Power to Change the World 5

6 Transit Bus Update Purchase order announced May 1 st for 40 FCveloCity 85kW modules to power 40 buses in Cologne & Wuppertal, Germany under JIVE program Module shipments expected to begin later in Not reflected in end-q1 Order Backlog Initial bus deployments expected in 2019 Power to Change the World 6

7 Commercial Truck Update 500 licensed commercial fuel cell trucks, with Ballard stacks, to be deployed this year in Shanghai Ballard-powered Kenworth Class-8 drayage truck completed initial road testing Contract with CALSTART to power UPS Class-6 delivery van in California trial Power to Change the World 7

8 Train Update Siemens announced receipt of ~ 12M in funding for Mireo program during Q1 Ballard previously announced multi-year $9M contract with Siemens to develop 200kW fuel cell module to power Mireo - Initial deployments planned for 2021 Power to Change the World 8

9 Marine Update Ballard previously announced work with ABB and Royal Caribbean Cruises Q1 successful testing of 30kW modules on a boat operated in Japan coastal waters to support development of safety guidelines - Modules sold to Yanmar Co. Ltd. through Distribution Agreement with Toyota Tsusho United Nations IMO announced agreement to reduce CO 2 emissions in shipping industry and eliminate them this century Power to Change the World 9

10 Material Handling Update Signed contract to supply air-cooled stacks to Hyster-Yale for Class-3 forklift trucks, through 2022 $4.2M program signed with unnamed customer to develop ultra-high durability air-cooled stack 20,000 hour life Follow-on order from Nisshinbo for next stage in development of stacks using Non Precious Metal Catalyst Power to Change the World 10

11 Unmanned Vehicle Update Collaboration with Cellula Robotics to develop fuel cell-powered long range autonomous underwater vehicle - Funded under contract with Canada s Department of National Defence Power to Change the World 11

12 Power Manager Update 2 orders received from U.S. military for Power Manager product, totaling $3.5M - $1.6M order fulfilled in Q1 - $1.9M order to be shipped in 2018 Power to Change the World 12

13 Q1 Revenue and Gross Margin REVENUE $22.7M $20.1M GROSS MARGIN 42% 33% Power to Change the World Q1 Q Revenue -11% to $20.1M: o o +11% Power Products, to $12.4M +29% Heavy Duty Motive to $9.3M +100% Portable Power to $2.4M -81% Material Handling to $0.4M -42% Backup Power to $0.3M -33% Technology Solutions to $7.7M 13 Q1 Q Gross Margin -9-pts to 33% due to: o Q had reflected $6.2M in high margin one-time Technology Solutions revenue from technology transfer programs in China

14 Q1 Cash Operating Cost Base and Adjusted EBITDA CASH OPERATING COST BASE * ADJUSTED EBITDA # $10.0M $10.7M ($0.7)M Q1 ($3.8)M Q1 Q Cash Operating Costs +8% to $10.7M due to: o Higher investment in technology and product development, including nextgeneration LCS, and strong Canadian dollar relative to USD Q1 2018: o Adjusted EBITDA ($3.8)M o Net Loss ($5.5)M o EPS ($0.03) * Measures operating expenses excluding stock-based compensation expense, depreciation and amortization, impairment losses or recoveries on trade receivables, restructuring charges, unrealized gains or losses on foreign exchange contracts, acquisition costs and financing charges Power to Change the World 14 # Measures EBITDA adjusted for stock-based compensation expense, transactional gains and losses, asset impairment charges, unrealized gains or losses on foreign exchange contracts, finance and other income and acquisition costs

15 Liquidity Q Cash Used By Operating Activities increased 133% to ($7.2)M $68.0M $52.5M End-Q cash reserves of $52.5M, -13% from $60.3M in the prior quarter END-Q1 CASH RESERVES Power to Change the World 15

16 Order Backlog End-Q1 2018: Order Backlog 1 of $222.0M and 12-Month Order Book 2 of $89.0M ORDER BACKLOG Order Backlog at End-2017 Orders Received in Q Orders Delivered in Q Order Backlog at End-Q Total Fuel Cell Products & Services $221.4M $20.7M $20.1M $222.0M 1 Order Backlog = aggregate value of orders received 2 12-Month Order Book = aggregate value of that portion of Order Backlog expected to be delivered in the subsequent 12-month period Power to Change the World 16

17 Q & A Power to Change the World 17

18 Power to Change the World 18