Q Results Conference Call

Transcription

1 Q Results Cnference Call April 29, 2015 Page 1

2 Page 2 Ballard Management Randy MacEwen President & CEO Tny Guglielmin CFO

3 Page 3 Frward Lking Statements 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 Dantherm Pwer s results and are in U.S. dllars, unless therwise nted. This presentatin des nt prvide full disclsure f all material facts relating t the securities ffered. Investrs shuld read the final base shelf prspectus, any amendment and any applicable shelf prspectus supplement fr disclsure f thse facts, especially risk factrs relating t the securities ffered, befre making an investment decisin.

4 Year-t-Date Prgress Pwer Prducts Page 4 Telecm Backup Pwer Met all utstanding cnditins f New Yrk City Fire Department fr certificatin f ElectraGen -ME system fr rftp deplyments Material Handling Significant grwth in stack shipments t Plug Pwer

5 Year-t-Date Prgress Pwer Prducts (Cnt d) Page 5 Develpment Stage Van Hl awarded funding fr 21 buses in Eurpe Deals t supply 10 pwer mdules fr U.S. buses and 8 fr buses in China Prgress in China tram market Demnstratin f first-ever fuel cell tram cllabratin with CSR Sifang and City f Fshan

6 Year-t-Date Prgress Technlgy Slutins Page 6 Landmark Technlgy Slutins transactin with Vlkswagen Grup Surfaced value frm IP prtfli, in cmbinatin with intellectual capital in specialized engineering services Transactin underpinned psitive Net Incme in Q1 f $7.0M Strengthened balance sheet with ~$29.0M cash Psitins Ballard t realize lng-term value frm aut sectr New Technlgy Slutins prjects Glbal autmtive OEM Next phase f wrk with Ardica Technlgies

7 Page 7 Q Tp Line POWER PRODUCTS Revenue f $4.9M, -2% year-ver-year, with a shift in prduct mix Telecm Backup Pwer revenue decreased, t $0.6M Expected decline due t cntinued delays in rders Material Handling revenue increased 29%, t $2.6M Revenue frm Develpment Stage Markets increased significantly, t $1.7M Driven by increased bus mdule shipments

8 Page 8 Q Tp Line (Cnt d) TECHNOLOGY SOLUTIONS Revenue decreased 51%, t $4.4M due t strng Q Q included licensing revenue frm cntracts in China Q reflected cadence f revenue frm Vlkswagen engineering services cntract weighted tward first half f year

9 Page 9 Q Revenue and Grss Margin Revenue (millins) Grss Margin (%) $55.8* $37.7 $43.7 $61.3 $ % 17% 27% 15% 11% $ Q Q Q Revenue f $9.3M Q Grss Margin f 11% Dwn year-ver-year due t variance in Technlgy Slutins revenue * Services prvided primarily fr Daimler AG fr a specific manufacturing supply agreement in Octber This segment ceased t be an nging perating segment as f the furth quarter f Dwn year-ver-year due t unabsrbed manufacturing verhead (reduced level f shipments) and shift in prduct mix

10 Q Cash Operating Cst Base and Adjusted EBITDA Page Cash Operating Cst Base* (millins) 0 Adjusted EBITDA* (millins) Q $37.0 $30.3 $28.1 $ ($8.2) ($18.6) ($5.1) 10 5 $ ($22.1) Q ($27.9) -30 * Measures perating expenses excluding stck-based cmpensatin expense, depreciatin and amrtizatin, impairment lsses r recveries n trade receivables, restructuring charges, acquisitin csts and financing charges * Measures EBITDA adjusted fr stck-based cmpensatin expense, transactinal gains and lsses, asset impairment charges, finance and ther incme and acquisitin csts Q Cash Operating Csts f $7.9M Increased year-ver-year due t higher research & prduct develpment csts (resulting frm lwer hurs spent n engineering services) and reallcatin f resurces Q Adjusted EBITDA declined t ($5.1)M Q Net Incme imprved t $7.0M Reflects $14.2M gain n sale f IP t Vlkswagen Grup Q Earnings Per Share (EPS) imprved t $0.05 per share

11 Page 11 Liquidity Q Cash Used By Operating Activities imprved 19%, t ($5.4)M End-Q cash reserves f $47.6M Blstered in Q1 by ~$29M in net prceeds frm Technlgy Slutins transactin with Vlkswagen Grup

12 Page 12 Upcming Events Natinal Fuel Cell Sympsium Sacrament, CA Thursday, May 7 th Cwen Technlgy, Media and Telecm Cnference New Yrk, NY Wednesday/Thursday, May 27/28 th Stifel Industrials Cnference New Yrk, NY Tuesday, June 16 th Ballard Annual General Meeting Vancuver, B.C. Tuesday, June 2 nd Ballard Investr & Analyst Day New Yrk, NY Thursday, Octber 1 st

13 Page 13 Planned 2015 Deliverables Securing at least 2 new key Telecm Backup Pwer accunts Cntinuing t grw Material Handling business Grwing Bus mdule rders fr U.S., Eurpe and China Securing at least ne new MW-scale Distributed Generatin prject Grwing Pwer Prduct sales backlg & pprtunity pipeline entering 2016 Launching new prduct versins with enhanced perfrmance and reduced cst Air-cled stack Methanl-fuelled Backup Pwer system Bus pwer mdule

14 Page 14 Planned 2015 Deliverables (Cnt d) Cntinuing t grw the Technlgy Slutins business Including at least ne new aut OEM custmer Cmpleting build-ut f Cmmercial sales team Investing in g-t-market strategy & marketing Imprving financial perfrmance Revenue grwth Grss Margin expansin Maintaining strng balance sheet Reviewing cmplementary M&A pprtunities t scale the business

15 Page 15 Q Cnference Call Q & A

16 Q Results Cnference Call April 29, 2015 Page 16