Q4 & Full Year 2017 Results

Transcription

1 Page 1 Q4 & Full Year 2017 Results Cnference Call March 1, 2018

2 Cnference Call Participants Page 2 Randy MacEwen President & CEO Tny Guglielmin CFO

3 Frward Lking Statements Page 3 This presentatin cntains frward lking statements, including: estimated revenue; cash perating csts; grss margins; prduct cst reductins; adjusted EBITDA; liquidity; market size and grwth prjectins; custmer value prpsitins; and expected sales and prduct shipments. These frward lking statements reflect Ballard s current expectatins as cntemplated under sectin 27A f the Securities Act f 1933, as amended, and Sectin 21E f the Securities Exchange Act f 1934, as amended. Any such frward lking statements are based n Ballard s assumptins relating t ur financial frecasts and expectatins regarding ur prduct develpment effrts, manufacturing capacity, and market demand. These frward lking statements invlve risks and uncertainties that may cause ur actual results t be materially different, including, general ecnmic and regulatry changes, detrimental reliance n third parties, successfully achieving ur business plans and achieving and sustaining prfitability. Fr a detailed discussin f these and ther risk factrs that culd affect Ballard s future perfrmance, please refer t ur mst recent Annual Infrmatin Frm. Readers shuld nt place undue reliance n Ballard s frward lking statements and Ballard assumes n bligatin t update r release any revisins t these frward lking statements, ther than as required under applicable legislatin. All amunts are cnslidated t include Ballard Pwer Systems Eurpe A/S and Prtnex Technlgy Crpratin results and are in U.S. dllars, unless therwise nted.

4 Financial Overview Page 4 Significant prgress against 2017 financial perfrmance bjectives Recrd $121.3M FY revenue, +42% 34% FY Grss Margin, +6 pints $3.3M FY Adjusted EBITDA Cash reserves f $60.3M at end 2017 $91.4M f rders in hand fr expected delivery in 2018 tgether with rbust sales pipeline prvides slid set up fr the year

5 2017 Strategic Prgress Page 5 Cntinued t advance next generatin technlgy and prducts Prgress n lcalizatin f Ballard designed fuel cell stacks and mdules in China Strengthened engagement with key custmers and cntinued t expand range f FCEV applicatins

6 Lcalizatin in China Page 6 Fuel cell stack Jint Venture facility peratinal Cmmissined in September 2017 Current annual capacity f ~6,000 stacks, with maximum capacity f ~20,000 stacks Fuel cell engine assembly facilities Brad Ocean subsidiary Shanghai e drive cmmissined facility in December 2017

7 Page 7 Lcalizatin in China (Cnt d) 500 cmmercial trucks licensed and planned fr deplyment in 2018 Equipped with Re Fire engines, pwered by Ballard stacks Dngfeng Special Vehicles Deplyments planned in Shanghai

8 China FCEV Enablers Page 8 Gvernment subsidies recnfirmed State recnfirmed 500,000 RMB subsidy fr heavy duty & medium duty buses and trucks sftened sme requirements Prvinces reviewing and cnfirming FCEV subsidies Expansin f hydrgen fueling statins cntinues

9 Prgress in Eurpe Page 9 Shred up platfrm thru 100% cntrl f Ballard Eurpe LOI received in February 2018 fr 40 engines t pwer Van Hl buses under JIVE Prgram Shipments expected t begin in 2018, t supprt initial bus deliveries in 2019 in Germany 8 engines expected t ship in 2018 fr Van Hl tram buses Deplyment in Pau, France in 2019 Landmark $9M 3 year develpment prgram with Siemens AG 200kW engine t pwer Mire cmmuter train; deplyments t begin 2021 Initial cllabratin with ABB and Ryal Caribbean

10 Page 10 Prgress in the U.S. Funding fr 20 buses in Califrnia New Flyer buses (10 fr AC Transit, 10 fr OCTA); engines t begin shipping in engines rdered & shipped in 2017 t SunLine Transit Agency Class 8 drayage truck trial with Kenwrth underway at Prts f Ls Angeles and Lng Beach Material Handling sales t Plug dwn in 2017; als expected t be dwn in 2018 Hwever, prgress in psitining Ballard thru Technlgy Slutins prgrams

11 Page 11 Prgress in the U.S. (Cnt d) Prtnex Pwer Manager Milestne C apprval received in 2017 Initial $1.6M rder received in January 2018 Cst reductins and divestiture f nn cre assets implemented at Prtnex $2.6M annualized cst savings expected Prtnex UAV systems Successful field trials cntinuing with Being Insitu and Lckheed Martin Next generatin prpulsin system, with Ballard MEA, nw underging extended durability testing in ScanEagle drne

12 Technlgy Slutins Prgress Page 12 Fuel cell rail prgrams Siemens AG in Germany; CRRC in China Wrking with Nisshinb n Nn Precius Metal Catalyst technlgy fr Material Handling February 2018 annuncement f $4.2M prgram with unnamed custmer t develp ultra high durability aircled stack Targeting 20,000 hur life; fr use in Class 3 material handling equipment 2017 annuncement f fllw n cntract with leading glbal aut OEM, fcused n advancing MEA develpment

13 2018 Outlk Page 13 CHINA EUROPE U.S. Technlgy Slutins Engine shipments & technlgy transfer revenue nt expected t repeat in 2018 Shift in revenue mix t MEA sales + ryalties n lcally assembled engines 2018 revenue expected t be lwer than 2017 Increased market activity in 2018 expected t drive rders fr mdules Expect increase in rders in 2018 fr mdules and Pwer Manager units One time technlgy transfer prjects nt expected t repeat in 2018 Expect increases in engineering services activity in multiple sectrs 2018 revenue expected t be relatively flat Overall, revenue expected t be relatively flat year veryear in 2018, cincident with strengthening f the underlying business mix fr lng term grwth prspects

14 Beynd A Bradening Array f FCEV Applicatins Page 14 Weight (tns) 10,000 1, BEV FCEV Fuel Cell Electric Vehicles Light Cmmercial Vehicles Bi & (H2 based) synthetic fuels City Buses Trains & Trams Heavy Trucks Passenger Ships Planes Bubble size representing the relative annual energy cnsumptin f this vehicle type in Small cars / urban mbility Medium t Large Cars, Fleets & Taxis ,000+ Average mileage per day/trip (km) Surce: Hydrgen Scaling Up, Hydrgen Cuncil, Nvember 2017, p. 31

15 Page 15 Applicatin Develpment Timing Material Handling Start f cmmercializatin Mass market acceptability City Buses Medium t Large Cars Trains & Trams Light Cmmercial Vehicles Passenger Ships Heavy Trucks Tday Surce: Hydrgen Scaling Up, Hydrgen Cuncil, Nvember 2017, pp

16 Q4 & FY 2017 Revenue & Grss Margin Page 16 REVENUE $121.3M GROSS MARGIN $85.3M 30% 31% 34% 28% $40.3M $30.7M Q4 Full Year Recrd 2017 Revenue +42%, t $121.3M +39% Pwer Prducts, t $77.6M +140% Heavy Duty Mtive, t $63.7M 61% Prtable Pwer, t $4.5M 42% Material Handling, t $7.5M 60% Backup Pwer, t $1.9M +47% Technlgy Slutins, t $43.7M Q4 Full Year 2017 Grss Margin +6 pints, t 34% Onging fcus n grwing revenue frm high margin businesses, specifically Heavy Duty Mtive and Technlgy Slutins

17 Q4 & FY 2017 Cash Operating Cst Base and Operating Leverage Page 17 CASH OPERATING COST BASE * $34.3M $39.1M CASH OPERATING COSTS AS % OF REVENUE $8.1M $11.2M % 28% 40% 32% Q4 Full Year Q4 Full Year 2017 Cash Operating Csts +14%, t $39.2M Increased investment in technlgy and prduct develpment as well as increased investment in cmmercial effrts in China 2017 Cash Operating Csts 32% f Revenue: 8 pint imprvement frm 2016 Cntinuing psitive trend in perating leverage * Measures perating expenses excluding stck based cmpensatin expense, depreciatin and amrtizatin, impairment lsses r recveries n trade receivables, restructuring charges, unrealized gains and lsses n freign exchange cntracts, acquisitin csts and financing charges

18 Q4 & FY 2017 Adjusted EBITDA Page 18 ADJUSTED EBITDA # $1.8M Q4 $2.1M Full Year $3.3M ($9.9)M 2017 Adjusted EBITDA +134%, t $3.2M Net Lss imprved 62% t ($8.0)M EPS imprved 66% t ($0.05) # Measures EBITDA adjusted fr stck based cmpensatin expense, transactinal gains and lsses, asset impairment charges, unrealized gains and lsses n freign exchange cntracts, finance and ther incme and acquisitin csts

19 Liquidity Page Cash Used By Operating Activities increased t ($9.8)M Cnsists f cash perating incme f $2.5M ffset by wrking capital changes f ($12.3)M $72.6M $60.3M End 2017 cash reserves f $60.3M End 2017 End 2016 CASH RESERVES

20 Order Backlg Page 20 End 2017: Order Backlg 1 f $221.4M and 12 Mnth Order Bk 2 f $73.4M ORDER BACKLOG Order Backlg At End Q Orders Received in Q Orders Delivered in Q Order Backlg At End 2017 Ttal Fuel Cell Prducts & Services $236.8M $24.9M $40.3M $221.4M As f February 28 th, 2018 cmmitted rders expected fr delivery in 2018 f $91.4M 1 Order Backlg = aggregate value f rders received 2 12 Mnth Order Bk = aggregate value f that prtin f Order Backlg expected t be delivered in the subsequent 12 mnth perid

21 Q4 & Full Year 2017 Cnference Call Page 21 Q & A

22 Page 22 Q4 & Full Year 2017 Results Cnference Call March 1, 2018