Ballard Power Systems (BLDP) 4 May 212021 Q1 Earnings call transcript

Thank you for standing by. This is the conference operator. Welcome to the Ballard Power Systems Quarter 1 2021 Results Conference Call.

As a reminder, all participants are in listen-only mode and the conference is being recorded. After the presentation, there will be an opportunity to ask questions. now Director turn of would to conference I McAree, Guy Investor Instructions] like the to over [Operator Relations. Please go ahead.

Thanks to Welcome making to , our and good President and future materially morning quarter on disclaimer MacEwen, Financial Paul that are current and call. financial expectations, filings Dobson and today refer conference concerning are operating different. assumptions be very could based XXXX public management's most results Officer. information Ballard's us Randy events. Chief statements CEO and annual Ballard's results forward-looking much and Actual other first recent form our Please With beliefs everyone. We'll be related and information. complete for

Randy's our growth followed quarter. formal company's calls today. developments We review then few the release numbers the a numbers than of call Paul of during will results commentary and with in a are brief execution detailed are the focusing be MD&A. to our format the conference since by strategy notes indicators changing going beginning on and press Randy's be in fairly the rather those be brief from structure progress the comments addressed important of will of and the very

this growing in approach a with Our list aim dialogue to with more questions the leave engage and new of is investors time for to ask analysts and management.

over in to So turn call Randy. with that mind, the I'll

million were policy end reserves welcome margin cash million the China and XX%, of and muted pronouncements. everyone conference reflecting In billion. $XX.X projections further negative at the EBITDA consistent currently was was Guy Thanks internal was today's Gross awaiting quarter $XX.X adjusted market Ballard our $X.XX and call. QX to with revenue a

and long medium across growing and marine. I want front, backdrop have opportunities sight core, a of on all our we line highs have market truck, Ballard. Indeed the in rail we motive you levels customer witnessing entire today we're about term applications across strengthening on Supported commercial the engagement bus, excited customer organization. policy a heavy growth to clear record duty increased markets. Activity Ballard engagement at of by at unprecedented and Now are are we how with share the

slow we've challenging commented to a pipeline of has of while more five our underlying reflects is pandemic conversion the still previously strong While than we of on remain we purchase our the Indeed month. past see order in sales encouraging signs encouraged recovery sales the past highly This pace quarters. highly the primarily many the prospects pipeline business momentum over over encouraged, our markets pandemic result as and XX% pipeline. orders with grown our sales the conversion including

and marked increased accelerated our this in important up ahead backdrop, by points. as market balance talent, an sets given year advanced by products, tipping Now investment experience. localization and will Bolstered investments deepen manufacturing, customer technology, fortified of a XXXX sheet

relationship XXXX with are already product strategic innovation, progress our JV, solid capacity including cost expansion, in on Weichai-Ballard MAHLE. on deliverables We making key reduction, and our technology

electric to progress times. cumulative proud Europe. encouraged Now buses electric some fuel be continue during trucks let fuel year. this review X,XXX quarter market, over me and the globe details the with just with industry In powering cell metric bus We're circle to briefly XX far of we so enough leading specific Ballard's million to the cell announce kilometers, in

electric Europe for specifically partners Through XX% year received Zealand to bus we've from reported, through by and cell in work ventures Auckland previously fuel cell buses our and excited this with through service revenue now in also to-date from the engines with global fuel these bus the for XXX country delivered XXXX, QX transport. with bus of that last Solaris. orders Wrightbus European We're testing New quarter we or in and during our As XX% received first several engines above purchase in the OEM orders year. put

as trucks. Zealand plan truck Response the on indicator. emissions is Act with by is kilowatt Amendment a traction to the in emissions geographies such setting the In XXX in as with New Weichai-Ballard Climate Zealand net on New progressing a law. one venture also prototype the in MAHLE engine zero country few to our to heavy that design have XXXX duty a path China, work its commercial positive XXXX it new enshrined make countries well goal in a pass zero market, as joint Change of of very and for Seeing

under expect cell be rolling We platform framework the fuel sale a fuel testing the for a plant. year. America product the demonstration an And and for strategic end train by of to cell the the continue subsystem and with of starting providing ready class partnership providing one announced and work of we for with tanks, Linamar the to and enclosures, power development solution yesterday, Linamar this cradles of trains in vehicles power the exciting components North be initially agreement, balance with Ballard In cell Europe. and fuel chassis, will co-developed phase other into

commuter increased trucks mereo for sell train. form Linamar, powertrain refueling California. power's future vehicles, announced a delivery and our power vision cell including maximize support light leaning joint natural last joint to to market of fleets products and on partner on provide cell power to our in testing mobility. Ballard manufacturer existing solutions for emission deepening is zero vehicles ongoing the commercial collaboration and We're with duty require where UPS the This rapid Siemens, call a Following fuel extension trains our in and working conference I utilization. our precision a successful of We're into to a with vans extended the venture of cycles for recently the rail work joint those global on duty to relationship trains light that's Linamar emission noted momentum thrilled zero the leading and trial relationship including light the based duty particularly vans. demonstration expect important platform, fuel

Continued announcement since in commercial operating China late cell fuel order North a Arcola fuel of in of Energy an the purchase operation cell Scotland, first the our collaboration our XXXX. Receipt to tram line world's Canadian freight first in on America. train from power Foshan with Pacific

Northern Energy with announced in Ventures evolving QX another non the market In will is the opportunity we ship a QX of development this a called of propulsion Northern addition switching the with vaporization tons rail of during a developed vehicles. also full to MOU cells megawatts. C-HX liquid powering the powered demonstration also be California and expected Chart storage requiring Ballard for require subsequent we to fuel Sierra, fuel non-binding of a XXXX proof hydrogen. ship cell in scale marine power for point compressed locomotive announced with Australia approximately small hydrogen scale we rapidly transport of to This in and In XX heavy-duty the market. Railway new ship C-HX QX, Global a In binding fascinating ships MOU solution green Industries XX megawatts signed for that designed

during progress rail membership mining the the on for other renewable run address key enabling Consortium. solution ENGIE. past including range mobile including, weeks, the consortium high to partnerships announced several in hydrogen. marine during Ballard's equipment greatest be potentially commercial energy to liquid we the this and haul strong requirements applications. Hydra vehicles a the coaches, Other Given Focused hydrogen, several In density trucks, and heavy-duty in will of long heavy-duty miningX

in mining exciting As very we upside cells including noted moving and opportunities forward. construction road for before, fuel potential off represent

our including performance reduction on breakthrough with our fuel our and enhanced China. front, ongoing the plates, our MEA's XxX Weichai-Ballard We're and program to bipolar with initiatives. continue and tracking and of make plan cost continued key programs On development manufacturing joint cell progress technology chain venture work from product we also new implementation ahead our progress measure our development of on in supply by advanced stack designed

our strong commitment recently Annual transparency, We including value are emissions, inclusion Ballard's Report employee governance. in second to reduced investment demonstrating proposition diversity and strong published we and our proud ESG have

sustainable fuel for clear purpose own journey. to a our a making ESG As progress power with at deliver driven vision company we're planet, cell

goal toward zero carbon initiative mission our work neutrality XXXX carbon a achieving at continue of with We XXXX. by Ballard

beyond markets, from with Ballard we in As progress carbon investment as recent leading we believe for made GHG cell report, long-term ESG cradle-to-gate the cell fuel of this highly up our of addressable accelerated own set we're a products. growth operational year. noted footprint, result our key assessments in repose we're our attractive a large reducing we completed making fuel The strong disruptive technology

simplify and including continue also that opportunities, assess We customer points experience. opportunities reduce acquisition will friction strategic customer

with late Before working joined the introduce CFO. and fuel business Paul’s call the Ballard. we to Ballard's Ballard decade. scale will March been and hydrogen the skills finishing, with and to cell actively serve our well I'll over turn has himself experience, new Dobson, to formally in like with as I'd Paul fully and to And over see that, industry Paul familiarize coming us Paul.

was Ontario, in a you having the in joined Western Financial and good so of which far. years Direct busy spent growing and worked is incredibly entrepreneurial in my And this new newest Operating the CIBC my tell and natural at market it's development and leadership were CIBC's my growth Canada, there experience Energy my including but can early XX business I morning. and then Waterloo And quite Direct for After University and transitioned I to the services ago. Chief morning, U.S. opportunity. XX electronic U.S. starting time I to Officer team In to different business that educational be and the new Canada to with energy five fast up been which when And at deregulate. situations. with I'm markets was many the with tell from roles financing just Randy. grew business throughout member University. pleasure electricity here Canada tremendous everyone. leadership new And based let in was Chief you, growth of years as for Thanks, graduating It's Ballard drawn in soon. I'm Officer of banking I CIBC Western, and homes is I then U.S. weeks Canada me background. company XXXXs and fledgling gas, a accelerating to in Houston. most Energy help downstream growing

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to businesses I also great growth drawn but teams have team. work As the similar entrepreneurial successful to values and with leadership make earlier, I we which a said styles I'm want business as and

opportunity of customer focus hydrogen off which and leaders in markets. industry. reinforces very and the it's pioneers Ballard and will dollar many as thought, to focus of My of market conversations multi-billion hydrogen the climate There leadership be on in past share at sure when from what the quality position grow space. my I have of supported. a feedback. sustainable to it's revenues viable dollar only take multi-billion you long-term the formative I industry, solution for it's, Ballard's partners Ballard shareholders. the support with independent growth Ballard. by opinion, here business two carves market hydrogen exactly and increase global things. is experienced that place so as well-respected are course believe the And safety, it’s with committed was of for well when. weeks market I prominent heavy-duty matter hydrogen and strongly believe the And for. Ballard become worldwide I the for on matter chip calls poised and a and out only customers research Not meet as inbound five our not In to mobility Helping can to and strategy the forecast is maintaining people what reputation service. our importantly and value along, And I'm global looking market, industry innovation, capital came a technology fight tremendous demand that and the a making is globally and Ballard a scaling from market for is blue I and at change the

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Please Fargo. [Operator go you. Praneeth question first from ahead. Wells from Instructions] Thank The comes Satish

was some due how much lingering driver or or you itself, and revenue quarter in here. But first of to kind COVID understand in understand is here? while slowdown there softness trying the I'm for await was do quarter year-over-year there a just policy morning. China you, other just some you huge it start, down Thank the of Thanks. think I was sale to to just pipeline clarification I guess good

Praneeth, for question. the thanks Yes

One think so last quarters developments coming the seen it. is a pronouncements in of part I quarters factors. to see of expecting over That's a that five combination slowdown it's and policy or see course the we some of on four of in did months. couple really waiting China fund we're this that we've

if year large at there In fairly COVID-XX a occurring last QX, through our that QX, year later QX, joint obviously. we to Weichai-Ballard in we QX. no at last kits. the Of was saw look from you impact year shipment did venture in course have of QX, And

think probably strong a QX. it So was typically I

almost XX% the and half at If you around the slower every paced half of about XX% first is in our second business of historically, our XX% so the year typically business typically look or year.

than So for plan was our would internal softer it's for XXXX. clearly but it liked with own consistent our have industry actually expectations

maybe for in it. Okay, and and start Canadian rail good and with And with see in to would Sierra Northern. of to you compare making markets Europe Do to decarbonize? and here, announce opportunities terms the got then you're how decarbonization Pacific rail some opportunities you JVs second rail progress Europe on two question U.S. more

that here about This in Really rail. glad you asked some surprised the really us question good six upside the to months; market is last the the progress. has very

I let the Now me into detail. get just provide some context before

So XXXX, or you be cells. kind will at hydrogen counts expectation key in of look all estimates, fuel there's of an XX% trains markets the in new

Now a I we've wanted of bit share done historically. what little to

world. in years cell from the X stock which operation. in the forward is largest about started we ago first So tramline move or the have as in fuel with December China rolling manufacturer now you XXXX, We world's CRRC

Province. to experience. ride I So an tram in Guangdong five early operating this quite City the line an Guangming had that on Foshan are of it's the year, trains in in opportunity

the It's expect kind platform a with Mireo year. the of noise, the very this lot to point, Siemens' Ballard standard, course that be rail to doing very cell in European that's of platform. work for a data good et and fuel of train purpose taken market that our it cetera. that shock we learning formally So packaging, of launched first kind for learning train applied because of Mireo fuel We've and and lot that came cell and designed code terms of it's we're in vibration, a intriguing

fueling fuel experience Europe the look and What interesting at cell the now there. about So now to I in Siemens experience compelling lot you're if It's learning in Europe, was train. here China goods. of in available, than that typically where different. be zero something most really delivery of moving And fixed is I -- What quite have railways, think America very located markets with at It only one on is solution the people. very we at of X% you the you're and are currently. seeing rail freight, strategically America long That’s so the say North you see talking move it's look with for routes long, about less you think look the heavy interesting options along lines going in cargo North electrified. our are markets emission if stations less we're delivery of when trains profile freight to if routes

One at at way cost at emission or think two viable. I only zero catenary looking either you'll overhead alternately look is is options. electrifying the higher option, wires that's lines as you're rail economically very what with the So

You cost think XXXXs, engines if look I was And locomotives. the hydrogen of you in can scene the the dominant industry kind of you at transition look as think back about rail at in the diesel. steam incremental there dynamic, the that from to

and the in to American cell the rail fuel from the in market locomotives. dominant locomotives be XXXXs North transition hydrogen story think diesel XXXXs, I line will the the

project this locomotives is North Now XX a every years. re-haul time come in basically up America. the signature here we CP. has CP for refurbish have them XXXX locomotives Those at with or

time validate opportunity for locomotives opportunity we by every an go of the start is then replacing fuel them will is program value refurbishment as haul implemented through locomotives locomotives modernization. and of up these which the line opportunity see to What existing CPs diesel mission over their proposition end So XXXX with to this get come they zero modernize and hydrogen that XX cells locomotives pilot an years. to see XXXX, with an

Sierra announced recently as locomotive that's North There's for And well these XXXX. a XX,XXX CP a with of in California. switcher with we've a project just Nevada America. So in locomotives

think as XXXX market rail of and freight. a penetration time delivery I excited is to markets the market to range well in commuter as we'll XXXX, look a high some we're out you very see very this that that in of about So the as

you. thank Okay,

comes with next ahead. Aaron MacNeil Please from question go The TD Securities.

and thanks releases, taking questions. press order for announcement. morning, in other flow In a quarter, there's uptick Good my nice the and

you my be XX.X lot to But in in million releases first announcements the addressing Longer did of home. maybe the perspective, And of only the look prepared materiality, in of term mechanical backlog, your strategic the it's longer of see than you our from in job a So might from what a me. quarter. surprised less from about perspective, press At orders. dollar dollar but value examples new even term it a can the couple through a your walk profilement can remarks. good order near us of alliances what term the I not think value like one quarter thinking to strategic like

longer of two so also maybe a forward, going future interpret and trying I timing press orders I'm stuff the the to characterize what maybe sense And is get term materiality could me release like? give how roles release look at the press look Ballard see to to materiality a when from Ultimately perspective? what might the

comment. thanks Aaron, that for Yes

cases a volumes it of in I details the of fair comment, some and in in adoption. think of terms some how aren’t market terms known out rolled yet

have commercial and have to about are Today we and trucks in these and Very through step think take market adoption. still marine understand the we rail, back XXXX and busses transition. field. markets early I acknowledge going need a still bus, of stage truck, that

than about day As terms over still we have market second four years first in the more say of but XXXX XX of it's I hour kilometers. ago That's mentioned XX adoption. million the earlier with

talking different talking than making the is value and not my projects anymore, is oversee we that different of propositions pilot which think correct sure projects number validating these do I validating packaging about for in opportunities. about technology that economic we're demonstration We're opinion. So

kilowatt as XXX like things cooling, an relationship of about is MAHLE with So really DC/DC things optimization invertors. engine a of example with on the lot on packaging from MAHLE of the input like

that's some take entire to at it solution. train power the going hits And volume. time Looking before

to be we'll MAHLE. with see kilowatt XXX looking later year I that XXX demonstrated think this engine kilowatt, So

customer about the the of with this you'll mentioned, quarter think of As XXXX as programs at that we I some be a about would in some you CP of project question pilot that announcements was from see feedback some the again its demonstration on When when the demonstration. getting course. look CP, your is

programs talking we about will time. So are that some take

this for really number I think a years. we've been of communicating

Including environment years framework and XXXX. and If the you significant bus, vehicles then at markets occurring including like marine, those California, market effect. when Europe emission rail and truck, road and for and we in XXXX as zero the different in XXXX adoption curve through a look see in steep do to regulatory different very things and policy markets first China take

And can cases, their of So, get offer I we'll market ahead tools try a and some fair far. a for future mean so as additional try at In does to Aaron. comments one market think some understand of look a and your while what skis our adoption understandably some and set reluctant we timing. to that announcements, little parties expectations people counter

the think on that's significant sales place today. the order in in order change that a last I we reality market there the year, conversion terms a are very where of yes, step in the saw has book, days But XX of last book -- slow been front. And their to over pipeline so we just

So see XXXX conversion level in and expect very to early we're pretty a we excited about do of high XXXX. that. throughout And

mean that take mechanical maybe didn’t a mean if backlog? based as was for announcement cities then details bus, companies And the specific I a up. does announcement. the like announcement demonstration that the What the on perspective compare to from purely to unit. a want CP Like XX an example, just from if not and is backlog and to let's into I I ask there for it you get backlog that what you but for the order want one the brought right does Or that may impact

that And get of for, reflective when got into yes, into not long-term the really backlog order megawatts cell was that CP basically order we engines in talking goes right?. But that that the of is X.X we're we mean, first I about what terms fuel book. Yes. goes of opportunity.

understood. Yes, course. Of

Yes.

And then, from question me. final

press the prepared program. mentioned You it cost XxX remarks, tracking you're ahead adding you're release in of your reduction

how can a You supply in you of et us designs, and example the timeline described cetera. at in chain progress you are prepared measuring mentioned the specific give you remarks the improvements Day? your detail how to and breakthroughs shifted internally since last program But Analyst the

great Sure, question, Aaron.

if look goal. you So, at our

have achieve goal We X% reduction cost for corporate for program. XXXX XxX fuel our to a cell stack our in

QX have work last program. already happened reduction We goal in already. for helped extraordinary in And exceeded cost lot that our a year that achieve of QX late early that's full-year and that's

we're we're when line that think So, achieved as want say XX% certainly selling XXXX. something to a we'll in potentially of share going of it see I of impacts like that on X XxX I almost that dynamics because ahead tracking don’t ahead price visibility well to -- but see and provide the I program, we're program, well

turn Thanks. it Okay, I'll great. all That's from over. me,

Yes, thank you.

question comes go Greg from next The Webber Please ahead. Research. Wasikowski with

Hey so guys. percentage conversion at XXXX order our book to of maybe backlog look next for it Thanks We a more potentially about good couple Is XXXX to top versus know if looking like pipeline and XXXX could that the we off expect morning, beyond. be, yes the and a at the hit to but of one and the of much of to beyond? or the wanted announced how back kind talk just pipeline questions. numbers like and over XX/XX% kind it were it is XX/XX% that and and piggy of the I conversions like be And months. I things taking and just more just last

Yes.

limited have I pipeline to sales in some impact to XXXX of book. the of conversion think we'll terms order

for when by and If at as part the typically. of lot out. delivered example at a It delivery and large of the driven four aren’t then a needs number you The don’t you take quarter for looking look chain including at from these three they order supply asking, time. product. typically now. It's the from programs, the well quarters submit then in or product of ask by customer actually projects weeks They're timing does conversion and part they bus as number look the time large the

say XX/XX. is would probably guide than I XX/XX better your So, rather the

the the it. year got JV, of one, XXXX. said by call goal JV beginning on policy still could into second Weichai the timeline delays potentially that the pushing And then reach or for Okay, Is kind half breakeven this the potentially next further have the XXXX? of that on last you on the China

Yes.

I frankly the have on policy front. year policy we've a been obviously delays important But fair The think start the to comment. that's a had the unexpected. front, China actually pretty a policy in

fully I'm ecology. and for peak sure XXXX time we've goals up And to since the that green you've they announcements, had carbon approved plan, milestones had is from these plan shift was going decarbonization, in you've important in and these. So March. not has then, two it call XXth clean you're or the of aware important And five-year focus that neutrality now, the environment carbon And a really got XXXX. significant very if

is and boom Society the Science will Province. course Shandong Hydrogen them was of XXth. the Fuel on also to fuel think which Shandong. Center We Natural Weichai-Ballard Technology this Ministry located April One and venture awarded for Innovation be will is and cell which And Cell the in opportunities joint of of in Weichai Shandong Technology also a help Program major Province,

in important that a is this another development very market. So,

seeing kilometers. and in you're Ballard front also in now XXXX deployments trucks over the XX busses On China, from million about that with market right

to And number improvements number going joint waiting base been have is install XX. improving the on than get uncoiled are One more development provided a I'd the yield we're on for then overall And really that's to venture. we recent as of say there. market the is global is that second just optimizing things the key So, highlight there. kind module just three on there our I want and activity.

for requirements Weichai-Ballard reduction. module the work different one making sure and then customer work the portfolio of lot done components of have including Ballard's and So, is cost And plan including bus by engagement being on side. different And the to venture last segments. market on we significant market satisfy in market commercial truck the a the just joint

a waiting hydrogen announcement kind cluster program. a So, stalled market the the notwithstanding of of

engagement significant new engagement People activity platform seeing the and user. getting customer are end certified OEMs. We vehicle from and testing with

of So, there's over background the coming gets of the in as going a work kind and here be months. think lot it's on and to policy helpful very a going I announced clarified

assessment a delayed move your policy think landscape of I is a one. out So, fair the with

thanks Okay, Randy.

Thanks, Greg.

The comes National Please Rupert live. Merer Bank, next Merer Rupert with with from is Bank. ahead. National line your go question

Sorry Good morning, everyone. that. about

Good morning, Rupert.

for China. mentioned potential in on clarification the subsidy You months hydrogen coming in the

have regions So, get knowledge to on visibility skid could do when specific the cluster program. the And any or indicated detail out on the for your be in demonstration of have more you program? China an

Yes Rupert, great question.

of the Beijing what's process happened clusters if Shanghai the at you the been cluster So, the iteration would it Hunan be another cluster, the where that cluster, like and is are Hubei Guangdong will cluster, there five looks the cluster. awarded

some require will XXth. resubmit clusters of five those paperwork April So, as to

national XX, it. additional the is these each there through the over working think I five XX And of occurred. progress government with that next and just that's made clusters we So, days

So, this yet understanding hasn’t China the been on what's of but markets and those probably our announced in clusters. that's going

in participate. China can And you in which regions

to able Shandong are these You based mentioned is participate you but meaningfully course in areas? other Weichai that of in

opportunities and it clusters. Shanghai, Guangdong, have in the Hunan particularly feel good we Yes, we

or vehicle that color on they on the the just is to And as go actually companies and directly well? finally primarily manufacturers some be that, subsidies any how delivered, could Okay. be more to could of will capital the there infrastructure

Yes.

it's of vehicle the value that subsidy scheme So, point's based with end I participating the will just chain. going to users. be see formula do different funding a parts in manufacturers likely not that

Okay. Thanks, very much.

Thank you.

next comes Rob Capital ahead. The with Please Lake question go Street from Brown Markets.

years? over the on next strengthening couple follow-up pipeline you that little pipeline. how of Good first morning. I in market just wanted characterize the ones the Could see maybe you bit terms to kind just you the and the that playing of of more see sales a out you

question. the for thanks Rob morning, Good Yes.

I the tracking market what the quarter we're in actually well quarter from sales goals pipeline diversification. think the seeing well a consistent pretty as last fairly our as previous is were is to what company with

we're EU North XX%. looking roughly world China California, XX%, rest typically and XX% then So, America roughly primarily at of

we're market into look markets you the think coming I the sales If seeing pipeline. applications, new at

So, markets clearly a more contributor of road this play marine. mature to bus the seeing the course and to more increasing, those Truck two pipeline markets years. of activity encouraging. at the dominant the will the markets, over surprise those very share, I'd We additional is off number is time upside believe rail is we're But is starting substantive say some next which sales to and also market.

new China, seeing mining, and things of component to geographies of pipeline America, we're some outside key a play and starting the construction, sales market So, well. like opportunities Europe North as

you just for thank cells. fuel little for Linamar to your out see And on on Okay, meant develops of at give playing you. in kind you point? platform vision how JV the how I a clarify Could think color maybe this a then that announcement, that wanted us just I you

Yes.

of of everyone that course here relationships classes automotive key Strong these X significant we're for really light to a is looking the of understand Linamar is lot are chain our Linamar, the volume for precision very manufacturer, high and will space. to the and a muscles supply collaboration vehicles manufacturer, with Tier capability table. vehicles. as they duty So, high And bring supplier at

for this compelling So, a opportunity us. is

many is we've seen look cell platforms what we have light weighed market the duty. As in fuel a opportunity, to at of vehicle want that that

example, haven’t market of and a that and that be a to power fuel to cell that serious marketed into vans. They vehicle OEMs ahead is been here yet. play And can eventually in OEMs to train a the For system cargo offer format. quite in plug vision get stepping the just production

seeing with think look I there's it, two opportunity. activity so, as phases at market And of we We're Linamar.

cell at Linamar design to system sales tanks venture manufacture and testing, this converter engagement train moving and vehicle and with cell components including a the and initially power some for moving the scope and has and the a first The storage Ballard fuel we and to what developing that other contemplating is as be Linamar system And development you look together components. the the and platform DC/DC as fuel engagement responsible will key from Ballard of system with. Linamar where joint and our then through going the strong Linamar's venture joint channel a already customers, ultimately it's to respective validating that has here, primarily use

two for from established California delivery doing work early very is in the follow-on in with vans working the the of Linamar obviously phases where we're strong a the It's UPS this we've already relationship. this relationship activity. So, is and

coming So, of lots on that's the coming forward and very leaning in be to but what think from is we're on more excited leading one future of mobility. the about years players the I opportunity the months worked

the for I'll color, turn it Thanks over. Okay.

Rob. Thanks,

The next ahead. Please PJ from Juvekar comes with go question Citi.

the of on for morning Biden infrastructure good Petrie of Randy. kind in There's Hi, It's some but focus hydrogen bill Eric mention PJ. on seems UVs the really build these. been

for a the hydrogen that economy? So, small is back step

Yes. And great question, Eric.

strategy. part to cannot is carbon achieve a at we seen decarbonization that by opportunity climate, I The themes two back obviously looking that is U.S. is cell court XXXX. the initiative. you include Paris objective and for are hydrogen only help the of getting there think the market. decarbonization major net the a as zero and my what think inclusion in way at In we've to but climate really achieve hydrogen. That's to the is of the moment the court that key U.S. fuel One in hydrogen Paris key opinion

we a in hydrogen they compelling The vehicles success second environment out election vehicles fuel the where convergence as markets in have what cell value have is cases sees fuel the and vehicles response. point cell to infrastructure electric leading and And in is use any of where an electric likewise, And where proposition. of see seeing decarbonization opportunities you working a we strong infrastructure. battery

as see think the U.S. transit at of highlight by must say eventually again, the this be you'll me transit XX% XXXX. new low emission, them California again, in new if must all example, market across by buses, me Let zero I is let emission of look an XXXX not zero be illustrative what emission you and buses California for buses, all

truck truck emission scaling by truck pathway clear and clean emission standards is very effectively zero XXXX. high year very must a portion a in side, by XXXX that important all classes penetration buses. last all and starting XXX% policy XXXX making zero it's we've of standards certain Similarly and at up to got vehicles passed state the So, XXXX was trucks of a that that on by the be and on clean

California not rule similar And zero the these trucks policy buses I so, decarbonization think the key mobility play fuel markets cells will types emission in other of drivers policy we shaping's we believe, see in and adopt to but on in California particularly as just will of trucks. dominant look heavy be where share

take as earnings? Okay, translation some orders as thank deals of when a tied MEA consortium or you. do advanced then, and well And when of announcements with look into most which you timeline How the feel at is hybrid hydrogen terms these industries. in you

stack Yes, to that with bus try truck to Pretty initially. is second. top grow will to call penetration clear grow scaling revenue of Anything see where front. will Truck effect to significantly. this we and And starts Yes. starts do orders market the our on the translate larger bus or that to market earlier. come On significantly.

then those markets that. add and And $XXX and truck, of bus, XXXX. I those sequence, aggregating revenue add on about by four billion markets to do in we be three two believe will the marine will marine. As opportunity adoption market grow, the that And market as rail will rail see top those a grow, markets

you. Thank

Okay.

The Raymond next comes from ahead. question Please Michael with go Glen James.

evolving about Clearly Are versus positioning see talk of peers announcements take the terms a few do quite taking market cells in place any dynamic question. the you from evolving? for Thanks you others morning. industry? the in seeing seeing take and Good competitive we're that changes fuel Randy, can the space. how in in place you your the

Yes, question. the Michael. for Thanks

number has years dynamics it the think going been to as I I evolving continue and think an evolve well. to it's of competitive next over

months, reliability, I think performance, the has will the my there efficiency, of to a be the meets And et in durability, XX that cost part key requirements. race opinion, that as cetera safety, next provide that well. reduction a technology leading is market

now the really is I dynamics, as last look seeing at heavyweights we space. So, into happened are over mobility the few the years what's moving

over and coming example Ballard. doing dollar at for the we're announce what decade recently Bosch course the you that's in saw billion So, a of space cell investment fuel exactly

and over technology invest a and have dollars of We we talent products. plan in billion cash in to

going to competitive space. it So, is a be

is competitive only the say The lot that last in is our And customers of strengthened. working marine. rail validation on time we or make buses, is trucks the field critically sure compared and to XX technology seen I've quality, I position that the three what months, of our in that talked, last think this safety, I the of reliability, over A million kilometers front critically deploy these has important. want important. really the badge are the they because as are to

have that for And they low partner risk. relatively so, a critically them is make sure important it's to speaking

at fuel right on look it war and the in there you now. as how have, industry positioning we So, is a the

here it We in have Ballard.

we're talent from And cell and a fuel generations position XXth so, of of the generation very on good eight in we're of on the We're perspective. working next course. stack engine, fuel generation cell

it's here. Nevada, So look think close some Toyota with of CP as rail if whether work just we'll at advantages to illustrative of market another Wrightbus for the not think levels It's even think Europe market examples. in and continued continue don’t front. I of Sierra heavy I to innovate on duty those or of have the the we've it's rail is I and that whether you announced collaborations then generation the course and And motor this passenger car that product. Hyundai market, where Solaris anyone's And there.

rail -- long-term. to move marine in scaling at to progress those long-term. of the projects of with are the and the four we're are you designed all these making opportunities seeing, each bus, we're in some of verticals marine look in this that truck, named for companies These As aren’t

competitive. be to continue to going markets the think we So,

critical to what I we're all think on performance are cost, product, technology that's and going here. be focused

Thanks. And trucks. commercial just on

what the end would in be would be you will you product actually say your mean when Does about for this So, able buy ready out from realistic and of there actual being perspective, solution? pilot your about module, to OEM this have an 'XX by talked early an think to testing year. a commercial

we the be of Yes Michael, will identifying a we're That this to But be that XXXX don’t that do lot in pretty serious production things more those that we're front. a available we XXXX for there's will see ahead not could timeframe earnest of some in pilot looking quite we'll want provide get milestones. and just visibility of work of be on in That's a We product. our that and terms XXXX. terms of early. you'll happen when time very skies meet cetera, et of selling. announcing as on at. expect piloting when We XXXX have adoption and is road at think of market on to to and kind And

Thanks Okay. the for taking questions.

thanks. Sure,

question go The Christopher ahead. B. with Please comes Riley. next from Souther

on Weichai touch again here. question taking guys, visibility I thanks want my the just for here. Hey to

year plan if five the you of the we guys opportunity are announcements that, announcement get thing apparent. or of announcement Province. starting revenue kind quarter ramp saw to fourth first quarter, coming these on things OEMs But just next below you consistent over incrementally to a expect the there's kind cluster we key want of the Understand you days cluster in an maybe for. are saw in the sense pretty into And long-term that translated a of does low the in the in want positive of on think XX first Do to there? the Shandong comes. days. to activity early are think waiting some a do to But pretty of just get of I XX, in It's is sales, better next see until policy kind I I get we with idea we visibility be year. been starting activity quarter come kind this there's hopefully XX up, some in get couple

over characterize what were I mean, clarifications. think way quarters, would I you're right, policy of is announcement it's in these last occurs. frozen those think that's And for that just I waiting Yes. the continue until the I some number market we'll we

if than it takes longer longer. XX days, XX, takes it So

So be we'll, disproportionally I that likely is the what think for weighted XXXX. will we'll impact see

is be Okay, mix order accelerating sense got you appeared opportunity the there? bus some backlog to in it. a And then, with of has what the on three European based the Can of book. the key give those customers

order currently when cases they for Well, think end the hopefully book in that XX year some be modules want buses. they'll the delivery. in XX, we I Most this on backlog have delivery there's for about of users these to and depending them of take

segment taking location. number challenges delays customers their this with over in of on of quarters have the terms at COVID-XX We last market product seen

we're this is behind Ballard. later European see very growth fuel the though market strong is We'll And doesn’t that very, for hopefully for pipeline impact show more for sales think So that book, that bus and I order seeing think going bus year. what that is the cells very behind encouraging. I to importantly

lot a is that revenue me converting orders interesting important XXXX, see in more we're the see more of perhaps to And converting than we'll pipeline think to I to orders. think I going to sales dynamic.

run kind technology for to this you likely saw rate charter, rail of should throughout Is you seen or customers the, as baseline year And on Audi. scope we solutions are think? MAHLE the Okay. announcements just multiple then, the have opportunities would with any with the of you use when the recent quarter, this in current

Yes.

program. So is on do investment our fairly strategic cadence of Audi actually consistent in what these the able through in we're seen we investing rest you've own that year seeing some the think more I rights of the balance to is have full of IP on make we're terms be programs sheet prioritize corporate that and what sure spend. QX

of be kind probably should on kind of Okay. revenue Any programs other of is though there kind consistent? pretty rate of the flag cusp we or kind of might kind the overall

rest the sales number That going as the being are look Yes. of opportunities there forward. that over have and revenue implications pipeline significant use of year. QX a course of the in rate I that would kind fairly exciting of the at some said, could

Thanks, it's in helpful. And Okay. guys. the hop queue. I'll

much. Yes, thank you so

The comes Simmons from ahead. Hammond with next question Energy. Please Pearce go

morning. Good cost taking XxX earlier here. for my highlighted My thanks, and on questions color plan. the the you the to reductions And question first call that then pertains helpful on

to gross some there. there? congrats But expect seen do just through start you flow improvement when at there So and curious, margin the

more Yes, with manufacturing product. work translating terms some question. development plan to changes has The in into do the new great of and of XxX still

products. on obviously You to to have sequence the that new customers

So do. there is work to some

margin pick look when we'll a some So up. XXXX timeline gross I as to will at see of start that

then up. Okay, And great. follow my

more friction a you've You've are and coming for talked acquisition on been the at a the strengthen Is the here to release rich or in good sector. highlighted the you down what have where like recently the the the you're potential customer ecosystem are to look at number could reduce looking about company? points. interesting? acquisitions front if in or are the they they given you How more seeing a help opportunities priced now, level Just there on equities update quick getting

is past Hi, different products, expand our whole There both help downstream activity ecosystem been looking tremendous and Pearce upstream the different at markets I've a to this five and weeks, been corporate is looking development. of for amount Paul capability. here opportunities, here. across Since there's and different

So year, this there we'll actually actively come one could working. see that XXXX. could be is sure be different Not through, files we're when in

also in the coming they is with hired speed He background new VP us, be all helping Development. has Business would of M&A. Who a strong We got very also files. different on

putting see I either emphasis probably And to something on XXXX. this said So year this are more lot area. like a into later we expect or

very you thank much, Okay, Paul.

Thanks, Pearce.

comes Jonathan Markets. Capital go BMO Please ahead. question Lamers with next from The

Thanks my question. for taking

the On fuel chassis potentially by the Is system Linamar with demonstration the stacks partnership, Ballard? produce? the venture what joint products including would it supplied interchangeable cell

to see the be We produced scope respective and will the product for the product then work expecting of thanks like interchangeable supplies Jonathan, individually for question. our is Hi would I done that the of Linamar the will they're most at go. we're we chassis be referring Ballard at integration likely point. And that the Yes. respective What the that of JV. is think

there's still trying trying think both structure cetera is unnecessary to of spending to perspective. to I efficiency the facilities this existing effective understand utilize and of we're do way avoid an and to CapEx What Ballard. we course at most at to do lot from et that work Linamar on capacity have

could by is sensitivity earlier us decade vans could with about cells to could be able of imagining I'm Great. XXXXs fuel of millions in And But pickups any XXs to provide result around kind sense I realize large revenue how for this and plant potentially and be. Ballard the chassis this of a there the volumes that out. in a for powered Aaron's market quantification. are and commercial question with you the question.

multiple a think there's of would that that. I Yes,

I is that number light. Jonathan think quite

So on if other see you look at vehicles and cargo light on applications we and this initially focus duty fleets vans opportunity we where will taxi opportunities.

for to long term at you car high utilization. enable have This will are where opportunity have passenger We us looking market though as an the fleets offering well.

and market Linamar very So well in. obviously a large addressable positioned very one a that is

could this we And at point would you. China. order? and this point? kits to dynamic say just venture more that's another MEAs need What joint XXXX the to before a the at it Is fair on see circle Thank earliest up be that

opportunity policy the from and how clearly if dependent would we and year. be this some I be existing later move bet gets execution. safe to as It's going to Yes, the think waiting is on the might the XXXX there's inventory landscape released upside changes all

full it cost by stack in reduction already program, prior believe by that XX% XXXX? fair Is three XXXX? timeline it you XX shift three for, if target, the year cost could to the reduction now you've on that And by hit say achieved your Thanks. does I was

XXXX. the just fair think that in not We'll work that's to assumption. at done a that's It's have look carefully. I

and we're time work of as XXXX might Some for will different different ahead three to There There in able like expect bring achieve horizons I of higher be in than is but the were or it that XXXX do XX% with us against. phases we'll more certainly the that Where full mentioned, order number a or well. pull it we're reduction XXXX reduction tracking packages work a that. that to cost XX%. are to only of likely time work that package I based as out be to in, sitting today, in something cost be time doing quarter

on and with Ballard rail Randy, your I activities the operators. engaging techs world? directly and Okay Caterpillar's OEMs, the working But the in with of efforts also rail the appreciate rail is any lab

Yes.

they've key last are the file. have changed really some there So and or attention. three these rail on I say and OEMs of That's few quiet been fairly four this significantly until caught over their announcements recently, months would

the now think and XX front underway are there that to be will And next developments in activities so right months. I on there more XX

at that truck globally. quarters tam more question? heavy medium trucks look identified the On ask may three market, and I roughly heavy think the that If is duty duty I Ballard of one has I

So electric an alternative. pretty trucks are competitive battery and emerging significant it's

does For example, the you issue. have believe view window Randy, payload recently, that in by technology the they look there previously we for much developments there battery a real is argue trucks was I this as cell or opportunity fuel changed not great opportunity? thought. an like impacted market to academic have that long on the recently continue a study as Have been that any of haul

Yes.

any I in is help market opportunity addressable applications. future its don't and that duty all today into in see heavy at it it expand think light or near changes a I technology duty really battery will fantastic from the

is going that clearly fuel cells. to very is I think this market be a

Okay. I my questions. really to prototype. Thanks look for forward the taking

Jonathan. you, Thank

comes Cormark from Securities. next MacMurray go with ahead. The Please question Whale

and initiatives? in lot replaced before equipment, there of this modules a in coming all Is been write in to advance gets it behind continuing Is a work Randy. module at of shipped the rollout. shipped a there on Hi, just needs in technology you've in or that? work like, a be lot components to is there's actually wondering China off worry work there I'm risk that with to various of that progress you've a the that a risk associated progress change

existing the been haven't Mac. at looking risk and with around at a engagement customer our not the theoretical in Yes. we That's levels seeing you There I are if about we plans with certainly look joint always have. we product the generation a at base activity the next Weichai-Ballard discussions suppose, end the but venture have that's customers

speak of a the they're When you is the step imagine continue shipments, sort but -- with of because more would original to demand launch, of smoother an ship made it your you ramp up Can because presumably would customers. there's work actual because demand to the lot ramp products in get the sort terms dynamics the running in ramp. the I Okay. of which versus a you plan do with up you be and foresee public, Presumably, there's you can announcement the do when in not some when or when a pent should a up? Presumably, at up to you ground turned hit able on? how least

Yes.

think I an ready in we'll that of wait think though, to and policy what behavior kind to I coil spring see are arrangements this and have is final that's a the loaded unravel. sense. and do what

end we'll the products what the soon shaped that type the case how that a projects first But see possible. to as behavior in up first of that be that's policies would Our points certainly implies. for And where out behavior, customers will kind of of a have expectation higher on approach being if getting what pressure to the and to is field. the see awarded as lot post

Okay my and the just is that last directly the that is imagine, fair? the just into work that would initiative Linamar that question clarification to you I technology Audi, go is with the did related would

for to for that and have the we learnings density, passenger obviously stack of is performance a including stack market high market. lot car that rights course There on high power application of Yes. a

will that a be yes safe So assumption.

Randy. Okay, great. Thanks,

Thanks, Mac.

This any like concludes remarks. MacEwen, session. back the conference the over would I turn CEO Randall question closing and answer to for the to

Paul Thanks forward today. us joining for I speaking for look to discuss we results you again. XXXX. and Thank Great. with August in when QX, you

conference concludes call. This today's

for your participating disconnect have Thank pleasant may lines. You you day. and a