2016 Annual General Meeting Business Update

Transcription

Page 1
2016 Annual General Meeting
Business Update
Commercial Confidential
Randy MacEwen,
President & CEO
Page 2
Forward Looking Statements
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 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 Dantherm Power and Protonex results and are in U.S. dollars,
unless otherwise noted.
Page 3
Agenda
• 2015 Summary
• Macro Drivers • Ballard Progress in 2016
• Q&A
Page 4
2015 Summary
• Key Highlights o $80M deal with VW Group
o Progress in China ($48M in bus & tram contracts)
o Acquired Protonex
o Commercial momentum supports 2016 (record $58M order book for 2016)
o Strengthened balance sheet
• Key Challenge
o Telecom Backup Power business
Page 5
Agenda
• 2015 Summary
• Q&A
Page 6
Update on Macro Drivers
• COP21 Paris Agreement
• China Red Alerts
• China 5‐Year Plan
• China fuel cell policies
• Europe Horizon program Commercial Confidential
Page 7
COP21 Paris Agreement
•
“2015 United Nations Climate Change Conference” (COP21) held in Paris, Nov/Dec 2015
•
COP21 achieved historic consensus to reduce greenhouse gas (GHG) emissions
Page 8
China Red Alerts
•
In December 2015:
o Beijing and other Chinese cities were put under Red Alert Air pollution in Beijing, China
Page 9
China’s Latest 5‐Year Plan
•
13th 5‐Year Plan was approved in March 2016
•
Plan is underpinned by 5 key principles –
1) Innovation – to drive economic development by shifting economic structure into a higher‐quality growth pattern
2) Openness – utilizing both domestic and global markets
3) GREEN DEVELOPMENT – protecting the environment and pursuing environmentally friendly economic growth, including:
o
Targeted reduction in emissions per unit of GDP of 40‐45% by 2020 versus 2005 levels
o
Increase in the share of non‐fossil fuel energy to 15% by 2020
4) Coordination – ensuring balanced development among rural and urban areas, across different industries
5) Inclusiveness – sharing prosperity among the whole population
Page 10
China Fuel Cell Policies
•
People’s Daily preview of new energy policy – May 20, 2016
o Identified “development of hydrogen energy, fuel cell and such new energy technology” as one of the focus areas in China’s top energy policy
•
National & regional subsidies available for fuel cell buses brings the price down to (or below) diesel buses
o 1,000,000 RMB (~US$154k) per bus in most cities •
Hydrogen filling station subsidy
o 4,000,000 RMB (~US$615k)
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Europe Horizon Program
•
Horizon program – 2016 call is for ~140 fuel cell buses
o Significant step up from the current total of approximately 60 fuel cell buses deployed in Europe Ballard‐powered bus manufactured by Van Hool NV in Belgium
Page 12
Agenda
• 2015 Summary
• Q&A
Page 13
Growth Platforms
POWER PRODUCTS
MANDATE
MARKETS
• Meet the power needs of customers through delivery of high value, clean energy products that reduce customer costs and risks
•
•
•
•
Heavy Duty Motive
Portable Power
Material Handling
Backup Power
TECHNOLOGY SOLUTIONS
• Help customers solve difficult technical and business challenges in their PEM fuel cell programs
• Automotive
• Non‐automotive
o Aerospace
o Military
o Railway
Page 14
Heavy Duty Motive
•
•
Ballard‐powered buses have driven 9M kilometers of revenue service in 12 countries
London bus achieved more than 20,000 hours of operation on a single Ballard fuel cell stack CHINA MARKET
• The largest bus market globally
o Over 300,000 buses sold in China in 2015 versus N/American market of ~5,000 buses annually
• Expanded the order book thru $12M fuel cell stack deal with Guangdong Synergy in Q1 2016
• Tram engine development programs progressing on track • Continuing deliveries against the order book
•
Q1 2016 Heavy Duty Motive revenue +91%
Ballard‐powered fuel cell bus in Foshan, China
Ballard CEO Randy MacEwen
With Mr. Hu Chunhua, Guangdong Province Party Secretary
Page 15
Heavy Duty Motive (Cont’d)
EUROPEAN MARKET
•
Expect to begin shipping 21 power modules later in 2016 under 3Emotion Program
•
Also focused on current Horizon Program for >100 fuel cell buses
U.S. MARKET
Ballard‐powered bus manufactured by Van Hool NV in Belgium
• Expect to begin shipping 10 power modules later in 2016 for buses under the LoNo Program
• Ballard is powering New Flyer Xcelsior® HXE60 60‐foot articulated bus • Ballard provisionally selected for AQIP award, with New Flyer Industries o Expect to sign contracts in the next year to support 20 buses for AC Transit and OCTA Commercial Confidential
Ballard‐powered New Flyer HXE60 fuel cell bus
Page 16
Portable Power (Protonex) •
•
4,500 SPM’s in the field with U.S. military
$5.8M SPM purchase order received for U.S. Army on May 31, 2016 … incremental to $2.8M order in late‐2015
Squad Power Manager –
Squad
Power Manager – SPM 622
•
‘Milestone C’ with Vest and Squad Power Manager, moving toward ‘Program of Record’ with U.S. Military – expected in late‐2016 or early‐2017 •
Fuel cell propulsion system delivered to Insitu, a Boeing subsidiary, in Q1 2016
o To replace combustion engine in ScanEagle UAV platform
•
Q1 2016 Portable Power revenue $2.6M Commercial Confidential
Insitu ScanEagle UAV on Mark4 Launcher (above); Protonex PEM fuel cell propulsion module (left)
Page 17
Material Handling
•
>10,000 fuel cell forklift trucks in N/America today, >107M runtime hours
Sample of Fuel Cell Forklift Truck Customers
•
Focusing on two streams:
1) Supply of stacks to after‐market integrators 2) Supply of Technology Solutions and packaged solutions to forklift OEMs
•
Q1 2016 Material Handling revenue +59%
Page 18
Telecom Backup Power
• Announced definitive agreement for sale of methanol Telecom Backup Power assets on May 17, 2016
o Deal with CHEM, a major power equipment company from Taiwan
o Transaction Terms:

CHEM to pay up to $6.1M for methanol Telecom Backup Power assets  $3M paid on closing plus up to $3.1M based on sales objectives over 18‐month earnout period

CHEM to take on Ballard engineering, sales & service employees

CHEM to buy fuel cell stacks from Ballard, with minimum value of $2M over earnout period
• Deal closed May 31, 2016
ElectraGenTM‐ME methanol‐fueled Telecom Backup Power system deployed in the Philippines
Page 19
Technology Solutions Platform
• Mission: help customers solve difficult technical and business challenges in their PEM fuel cell programs through customized technology solutions
• >20 programs currently underway
• Working with 4 global automotive OEMs, including Volkswagen Group
Audi's H‐tron Quattro concept vehicle uses technology & components developed with Ballard engineering support
• Programs with non‐auto customers in aerospace, train and other verticals
• Q1 2016 Technology Solutions revenue +38%
Test station in Ballard technology center at Vancouver, Canada HQ
Page 20
Investment Highlights
•
Industry leadership •
Sustainable competitive advantages
•
Diversified business model
•
Record order book for 2016 delivery
•
Embedded optionality
Ballard is well‐positioned to capitalize on the large scale potential of commercial fuel cell applications
Page 21
Agenda
• 2015 Summary
• Q&A
Page 22
Q & A
Page 23
Annual General Meeting
June 1, 2016

2016 Annual General Meeting Business Update

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