SMARTER SOLUTIONS FOR A CLEAN ENERGY FUTURE MAY 4, 2010
This presentation contains forward-looking statements, including  estimated revenue and cash flow from operations for 2010...
<ul><li>Fuel Cells and Clean Power </li></ul><ul><li>Transformation Proof Points </li></ul><ul><li>Market Development Prog...
Fuel Cells and Clean Power <ul><li>Clean  energy market  growth will reflect a mix  of energy technologies  </li></ul>Clea...
P A G E  2 <ul><ul><li>Fast start-up and low temperature  </li></ul></ul><ul><ul><li>Rapid response to changes in power de...
<ul><li>Ballard leadership  in PEM fuel cells is based on -  </li></ul><ul><ul><li>Portfolio of proven commercial solution...
<ul><li>Re-vectored from auto fuel cell R&D to commercial markets </li></ul><ul><ul><li>Di veste d automotive technology p...
Backup & Supplemental Power <ul><li>Initial focus on telecom </li></ul><ul><li>Addressable market: ~$1B+  </li></ul><ul><l...
Distributed Generation <ul><li>Megawatt-scale power plant applications </li></ul><ul><li>Addressable market:  ~$3B+   (bas...
<ul><li>Exclusive stack supplier to Plug Power….clear market leader </li></ul><ul><li>Addressable market – </li></ul><ul><...
<ul><li>Zero-emission public transit </li></ul><ul><li>Government supported programs  </li></ul><ul><ul><li>Canada, UK, Br...
2010 Guidance <ul><li>Revenue growth in excess of 35%; underpinned  by growth milestones -  </li></ul><ul><ul><li>Begin sh...
P A G E  10 2010 Results 1  Growth relative to December 31, 2009 USD  Millions Q1 2010 Pre-Consolidation  (Excludes Danthe...
<ul><li>Well-financed runway – no need to raise cash in public markets to execute on growth strategy </li></ul><ul><ul><li...
<ul><li>Strong senior leadership team </li></ul><ul><ul><li>John Sheridan,   President & CEO </li></ul></ul><ul><ul><li>Pr...
<ul><li>Product leadership in fuel cell power solutions, based on proven proprietary technology  </li></ul><ul><li>Compell...
SMARTER SOLUTIONS FOR A CLEAN ENERGY FUTURE MAY 4, 2010
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Ballard Power May 2010

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Transcript of "Ballard Power May 2010"

  1. 1. SMARTER SOLUTIONS FOR A CLEAN ENERGY FUTURE MAY 4, 2010
  2. 2. This presentation contains forward-looking statements, including estimated revenue and cash flow from operations for 2010, and product pricing and economic payback models included in the Appendices. These forward-looking statements are based on the beliefs and assumptions of Ballard’s management and 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.  In addition to the specific assumptions set out with those forward-looking statements, such assumptions relate to our financial forecasts and expectations regarding our product development efforts, manufacturing capacity, and market demand, and include matters such as generating new sales, producing and delivering the expected number of units and controlling our costs. These forward-looking statements are being provided to enable stakeholders to understand Ballard’s expectations as at the date of this presentation with respect to its future performance and may not be appropriate for other purposes. These forward-looking statements involve risks and uncertainties that may cause our actual results to be materially different, including, without limitation, the condition of the global economy, the rate of mass adoption of our products, product development delays, changing environmental regulations, our ability to attract and retain business partners and customers, our access to funding, increased competition, our ability to protect our intellectual property, changes in our customers’ requirements, foreign exchange impacts on our net monetary assets and our ability to provide the capital required for product development, operations and marketing.  For a detailed discussion of these risk factors 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 in U.S. dollars, unless otherwise noted. Forward Looking Statements
  3. 3. <ul><li>Fuel Cells and Clean Power </li></ul><ul><li>Transformation Proof Points </li></ul><ul><li>Market Development Progress </li></ul><ul><li>2010 Guidance and Results </li></ul><ul><li>Liquidity & Capital Structure </li></ul><ul><li>Our People </li></ul><ul><li>Summary </li></ul>Contents
  4. 4. Fuel Cells and Clean Power <ul><li>Clean energy market growth will reflect a mix of energy technologies </li></ul>Clean Energy Mix Fuel cell PEM, SOFC, PAFC… As product costs continue to decline, fuel cells will play key roles in the clean energy space P A G E 1 Bio-energy Solar Wind
  5. 5. P A G E 2 <ul><ul><li>Fast start-up and low temperature </li></ul></ul><ul><ul><li>Rapid response to changes in power demand </li></ul></ul><ul><ul><li>Durable across wide variety of duty cycles </li></ul></ul>PEM Fuel Cells 1kW 100kW 1MW 10MW 10kW Temperature High 600 °C-1200°C Low 60 °C-120°C PEMFC SOFC MCFC (Fuel Cell Energy) PAFC (United Technologies) Applications Increasing heat management requirements <ul><li>Ballard leverages leadership in PEM across multiple markets… </li></ul><ul><ul><li>Compact & scalable </li></ul></ul><ul><ul><li>Fuel flexibility </li></ul></ul><ul><ul><li>Efficient, reliable and safe </li></ul></ul>
  6. 6. <ul><li>Ballard leadership in PEM fuel cells is based on - </li></ul><ul><ul><li>Portfolio of proven commercial solutions </li></ul></ul><ul><ul><ul><li>Fuel cell stacks, power modules and systems </li></ul></ul></ul><ul><ul><li>Strong delivery capabilities </li></ul></ul><ul><ul><ul><li>Access to over 2,000 patents and licenses </li></ul></ul></ul><ul><ul><ul><li>High volume manufacturing facility </li></ul></ul></ul><ul><ul><ul><li>SI & channel partnerships </li></ul></ul></ul><ul><ul><ul><li>100MW+ of fuel cell products shipped </li></ul></ul></ul>Ballard: Putting PEM Fuel Cells to Work P A G E 3 <ul><li>Developing a global customer base - </li></ul>System Integrators / OEMs Downstream Customers Backup Power Supplemental Power Material Handling Bus Distributed Generation
  7. 7. <ul><li>Re-vectored from auto fuel cell R&D to commercial markets </li></ul><ul><ul><li>Di veste d automotive technology programs </li></ul></ul><ul><ul><li>Divested Japanese cogeneration systems joint venture </li></ul></ul><ul><li>Significant commercial progress </li></ul><ul><ul><li>Product performance improvements </li></ul></ul><ul><ul><li>>30% product cost reductions in each of the past 2-years </li></ul></ul><ul><li>Reset the cost base by >50% </li></ul><ul><li>Augmented cash reserves </li></ul><ul><ul><li>Superior Plus tax transaction (Net: $33.8M) </li></ul></ul><ul><ul><li>Monetized rights under Share Purchase Agreement (Gross: ~$44.5M) </li></ul></ul><ul><ul><li>Sale-and-leaseback on head office building (Gross: $20.4M) </li></ul></ul><ul><li>Acquired controlling interest in Dantherm Power </li></ul>P A G E 4 Transformation Proof Points Complete transformation of Ballard over past 3 years
  8. 8. Backup & Supplemental Power <ul><li>Initial focus on telecom </li></ul><ul><li>Addressable market: ~$1B+ </li></ul><ul><li>Compelling value proposition </li></ul><ul><li>Channel access primarily through system integrators </li></ul>P A G E 5 z <ul><li>Recent Progress - </li></ul><ul><li>Dantherm Power acquisition to accelerate backup power market development </li></ul><ul><li>IdaTech sale of 100+ systems to Hutchinson Telecom in Indonesia </li></ul><ul><li>FuelWorks TM established to advance fuel processing technology </li></ul>
  9. 9. Distributed Generation <ul><li>Megawatt-scale power plant applications </li></ul><ul><li>Addressable market: ~$3B+ (based on ~1,000 MW of by-product hydrogen…ie. sufficient to power ~800k-1M homes for a year) </li></ul><ul><li>Focus on chemical plants (where there is by-product hydrogen available and a feed-in tariff program in-place) </li></ul>P A G E 6 <ul><li>Recent Progress – </li></ul><ul><li>Supply agreement with FirstEnergy </li></ul><ul><li>Non-binding MOU with K2 Pure Solutions </li></ul>
  10. 10. <ul><li>Exclusive stack supplier to Plug Power….clear market leader </li></ul><ul><li>Addressable market – </li></ul><ul><ul><li>Plug Power indicates ~380,000 trucks of an installed base of 1.7M trucks in N/America (market potential >$1.5B) </li></ul></ul><ul><li>Focus – </li></ul><ul><ul><li>Battery replacement in N/American high-volume distribution centers & manufacturing facilities </li></ul></ul>P A G E 7 Material Handling <ul><li>Recent Progress – </li></ul><ul><li>Plug Power sales Walmart, Sysco, Whole Foods, Coca-Cola </li></ul><ul><li>Orders to date represent >50% of Ballard’s 2010 guidance </li></ul><ul><li>Plug Power distribution agreement with Raymond Corporation </li></ul>
  11. 11. <ul><li>Zero-emission public transit </li></ul><ul><li>Government supported programs </li></ul><ul><ul><li>Canada, UK, Brazil, Germany, USA, The Netherlands </li></ul></ul><ul><li>Channel access through bus OEM’s and system integrators </li></ul>P A G E 8 Bus <ul><li>Recent Progress – </li></ul><ul><li>World’s largest fuel cell bus fleet deployed in Whistler, BC; >300k km's (>180k miles) accumulated </li></ul><ul><li>Sales to APTS in The Netherlands and SunLine Transit Agency </li></ul>
  12. 12. 2010 Guidance <ul><li>Revenue growth in excess of 35%; underpinned by growth milestones - </li></ul><ul><ul><li>Begin shipments for supplemental power systems in India </li></ul></ul><ul><ul><li>Deploy Dantherm Power’s backup power systems in 1 major new network </li></ul></ul><ul><ul><li>Commission 1 MW DG system for FirstEnergy </li></ul></ul><ul><ul><li>Book first DG sale utilizing by-product H2 </li></ul></ul><ul><ul><li>Material handling shipment growth in line with Plug’s 1,100 system target </li></ul></ul><ul><ul><li>Book new contracts to support deployment of >25 fuel cell buses </li></ul></ul><ul><li>Improve cash flow from operations by 30% from 2009, pre-consolidation (excluding Dantherm Power) </li></ul><ul><li>With this trajectory in 2010, Ballard expects positive EBITDA performance during 2011 </li></ul>P A G E 9
  13. 13. P A G E 10 2010 Results 1 Growth relative to December 31, 2009 USD Millions Q1 2010 Pre-Consolidation (Excludes Dantherm Power) % Chg Vs. Q1 2009 Q1 2010 Consolidated GROWTH Revenue $ 11.2 +38% $11.9 Fuel Cell Product Shipments (Units) 328 +73% 328 12-Month Order Book $29.0 +29% 1 $29.0 PROFITABILITY Operating Expense $9.7 -25% $12.1 Cash Flow from Operations ($11.5) -33% ($14.2) EB ITD A Loss $7.6 -56% $8.6 Net Loss $9.0 -53% $10.0
  14. 14. <ul><li>Well-financed runway – no need to raise cash in public markets to execute on growth strategy </li></ul><ul><ul><li>Cash reserves of $86.9M (as of March 31, 2010) </li></ul></ul><ul><ul><li>Debt free, excluding capital leases </li></ul></ul><ul><li>~84M shares outstanding </li></ul><ul><li>Top 15 shareholders own ~20% of shares </li></ul>P A G E 11 Liquidity & Capital Structure
  15. 15. <ul><li>Strong senior leadership team </li></ul><ul><ul><li>John Sheridan, President & CEO </li></ul></ul><ul><ul><li>President & COO Bell Canada; extensive e xper ience in telecom and technology ; Joined Ballard 2006 </li></ul></ul><ul><ul><li>Paul Cass, Vice President - Operations </li></ul></ul><ul><ul><li>Extensive engineering, project management and manufacturing experience; Joined 1997 </li></ul></ul><ul><ul><li>Bruce Cousins, Chief Financial Officer </li></ul></ul><ul><ul><li>CFO at Xantrex, Aspreva and senior positions at Johnson & Johnson; Joined 2009 </li></ul></ul><ul><ul><li>Michael Goldstein, Chief Customer Officer </li></ul></ul><ul><ul><li>President & CEO Actuality Medical; President iFire; 6 years at GE; Joined 2009 </li></ul></ul><ul><ul><li>Christopher Guzy, Chief Technology Officer </li></ul></ul><ul><ul><li>17 years at GE; PhD in Chemical Engineering; Joined 2005 </li></ul></ul><ul><li>Supported by solid organization </li></ul><ul><ul><li>~30 employees are inventors (Ballard patents and patent applications) </li></ul></ul><ul><ul><li>PhDs: 11; Masters: ~50; Engineers: ~90 </li></ul></ul>P A G E 12 Our People
  16. 16. <ul><li>Product leadership in fuel cell power solutions, based on proven proprietary technology </li></ul><ul><li>Compelling value propositions </li></ul><ul><li>Strong order book supporting 35%+ revenue growth </li></ul><ul><li>Positioned for positive EBITDA performance during 2011 </li></ul>Ballard – Putting Fuel Cells to Work P A G E 13 Summary
  17. 17. SMARTER SOLUTIONS FOR A CLEAN ENERGY FUTURE MAY 4, 2010
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