Ballard Power Systems (BLDP) 7 Aug 212021 Q2 Earnings call transcript

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

As a reminder, all participants are in listen-only mode and the conference is being recorded. [Operator Instructions]. to Investor conference Relations. like Charlton, to now President, Vice would turn over the Kate I Please ahead. go

Good morning. is Welcome the of financial I'm and Investor to to Ballard the Ballard's results delighted the call. second Power conference Relations. team My Vice recently name have Kate as and operating Charlton, joined quarter President XXXX call Ballard's I to speaking months. the and over and today weeks Paul look Financial with and joining Dobson, MacEwen, forward Officer. the us With are CEO; and today's on call President many of Randy coming Chief you

Form forward-looking the that Please other beliefs different. Actual call a for making turn be will and public current future could management's results based refer expectations, to We information. filings assumptions events. and concerning I'll disclaimer statements now Information complete over are our materially on related Randy. most be to and Annual recent

team, McAree a valued our People Mike like wish planned including Kate, to the team, I'd best in offer also to and retirement. of members new additional Chief years welcome and leadership Linda many his Kubik, I'd Guy Corporate Officer Ballard like thank Vice service Strategy the President, and Downs, his very to to welcome warm and him Thanks of Development. and for

welcome strategic machinery shareholder agricultural forward to support yesterday, background machinery, counsel in strong technologies. drive a new objectives As including of also member vehicles, his and long-term Muehlhaeuser. powertraining to construction to announced brings Hubertus, Directors, and I a industrial pleased I'm to Ballard's Hubertus value. insight our Board and commercial look manufacturing,

XX% orders end from EBITDA $X.XX the up the quarter We negative million million, to the at of $XX.X XXX% from QX. and $XX billion. call. was quarter In year. the QX Gross million today's was received and to and Ballard QX, in in reserves everyone compared $XX conference quarter, revenue welcome XX%, last margin second new cash flat was increase over adjusted Now over

the XX% at the of were up first orders also over year, year. half Looking last HX from

$XXX modest approximately of backlog million order growth. net quarter-over-quarter shows Our

schedule half The worked production in while critical our amidst in to invest global positions substantial recent the purchase This our months. to ensure which of Burnaby, us ahead the expansion and product widespread to of us to to to reducing our disruptions the and technology supplies. highlighted cost development, commercialization allowed cost growth Maintaining dual-sourcing customers. began have targets stack global limiting increasing suppliers and investments to suppliers with design different completion our XXXX, the throughout has reflecting key in our deployments technologies, and in we stacks short-term and in systems customer to long-term cost into before pandemic, of suppliers safety a and reduction. the as continued and product investment, to plates, our modules development increased million, first product on second momentum Throughout capacity MEAs, XXXX Close costs in We and were early and investments is second fuel hold. These year operating to bus, agreements engineering lead supply of increased marine. relationships our by navigate quarter $XX.X to order enable coverage, shortages of we've many continue ability chains. for the realizing XxX challenging with support navigate Cash truck, impact the leadership activities for customer experience. rail increase maintain including quarter MEA exemplified reduction hydrogen take to to in continents Early environment disruption XX raw remain pandemic, last cell enable disruption and in the us our XXXX this XXXX. materials nimble for secure and us and allowing technological markets stocks materials our people long over for be extend research,

fulsome reduction the on year. update program the of a expect end We of cost the our progress at provide to more

bus Now in power buses from including market, momentum Notable modules fuel Motors, for the order largest continues. fuel company orders, Tata our exciting Xth in generation India Delhi. in cell cell an XX electric new the of bus to XX

New follow-on Flyer XX We in this at validate in and to our California. leadership. segment power Oakland, to in power key and Germany XX from orders Solaris also buses for AC orders further purchase market received Transit buses Frankfurt, further technology expansion modules These show from

engine. year. is heavy-duty have engine this products and being track cost the progressing first well. end increasingly This European the kilowatt the for is for we're new market, program Our testing truck additional and We've are development MAHLE the engine In our build and the fuel cell completed by developed ship XXX competitive. the to with of for proven, truck market, now on durable, ready it joint reliable

While come, at and the developments in our update China policy is to module continue technical joint achieve Weichai-Ballard to still milestones stack important from we venture.

distance. of As vehicles there cell our are of X,XXX over deployed fuel in and QX Ballard our in North XX with China kilometers of project by Siemens electric million the work June, CP nearing On and increased technology calls, travel I rail Europe. momentum freight powered America market, in discussed for ongoing our locomotives with and conference including in QX the end the

reminder, model our is early Technology over to customers Solutions As power these during business and transitioning with work customers adoption of customers product into a part time.

the We're Solutions translating the next great orders Technology for purchase a from to Our engagement phase example recent commercialization. of our this. order seeing Siemens through of progress made now is

XXX hour H and rail now train development Germany. over operational for program, of train per the designed with kilowatt train. modules on upcoming underway platform kilometers a lines collaboration commuter roof our the up platform a X standards, modules believe Plus We've starting the up our cell designed kilometers. has to The Siemens for mounted the to non-electrified is Bavaria, Siemens have as coercion operate rail Plus growth EU. range and the program others to H for in XXX recent the meet market, Our are highlighted for the expected Mireo Mireo Siemens modular announced module and speeds the by in of well-positioned rail at on Europe XX to us fuel rail deployment this XXX try zero-emission be Fit years, in in onerous in been these We for we'll

project deliveries marine interest customers to zero-emission The was various their on our the kilowatt We're early XXXX opportunity. our similar from segments. applications, power. in of in see are and see in will FCwave to market Portugal. FCwave stationary market, as is power very This about Fusion-Fuel in marine initial profile and generate exemplified product. stationary gaining XXX lean with excited that clean of project many This in The continue the by in Now backup conjunction system we're hydrogen to power utilize FCwave applications. generation to a lots market solar our also announcement recent originally PV and is with HXEvora we opportunities but concentrated power designed strong making maritime traction,

to is its As zero-emission applications for ideal power an a the candidate profile. and FCwave due standards leading large safety result, output capabilities, stationary

update start European modest Anglo anticipate market their recently investor strategic Truck power ongoing growth. last Ballard, certain stationary up year geographic Backup plans year, on future and early largest applications, We the order in begin markets. XXX% Anglo in Trucks across XX stationary testing XXXX. overall cell further testing on power While our to large year-over-year In are bench growth performing bench modules our a over segments on miner an additional of of provided significant world's illustrate now power in backup revenues in Komatsu leverage projects been fuel testing target platinum predominantly modules to XXX mining An markets. revenue, cell in remains leading seeing across our were cell power verticals. the and a American, on competencies trucks. Haul and XXX technologies seeing portion increasing fuel fuel mining Such an at and a has project. truck we're next-generation our variety African kilowatt rollout core kilowatt QX ability on targeted X, is South on-site mine. since to last for

on balance the building module as and the scaffolding markets multiple of foundation. design with into varies sell application, we're plates, our to stacks revenue While plant including MEAs, based the capabilities, technological

important Our as and market leading a results rapidly across our increasingly coupled demand costs drive customers. grows. ability with technology, to volume down increase global diversification in hydrogen and is This and applications for outlook segments and resiliency geographies,

estimated projects a roughly in and Hydrogen total approximately The hydrogen projects, considered by clearly of July As the in been Europe, globally, China. week. third the $XXX U.S. mature. the chain The investments bringing reported The XXX. value the announcements there's Council XXXX, is every through in is XX% global and these markets Hydrogen in recently into a accelerating February, total investment these since update, billion that to decarbonization are the investment which billion of hydrogen increasing large-scale increase the $X of is along of of key including by momentum projects Council disclosed

and stations is including by the investment. target than hydrogen outlining and This particular, as hydro in XX% coming mix the XXXX. through core investing is to in. our about networks. European XX for Europe and reduce strong. greenhouse renewable now for combustion targets excited of Fit United by have to Last announcements decarbonization concrete remains a commercial gas sale XXXX. the of energy of for emissions federal clean the net-zero by transport framework order and landscape share for passenger decarbonization, in levels, XXXX hydrogen for programs month. expansion a accelerate the will XX% existing in our Ballard. the U.K., market offers already legislation maintains their package, buses British transport a Ballard and a across expanded hydrogen measures use of to plan verticals and from over the HX fuel energy, modes has we're hydrogen well in updated transport announced Europe of In more XX% decarbonized the vehicles, maritime of XXXX share engine of internal significant sector ambitious In leader adoption internal XXXX significant development transportation, Carbon inflow, marine. projects by all past been faster the upon Neutral targets our mobility Hydrogen to In refueling on reflected also market. industry, more As the by sale market Commission plan supporting the other in the combustion Europe very industry, includes the X affecting hydrogen accounting This rail package opportunity truck, further boost engine estimated XXXX. announced rail on month, a government strong QX including stop proposing European by stop as Ballard, revenue for and bus, along States, the cell consumption, a even there for These This the XX% of for European vehicles push market

first U.S. bill, thousands of the an infrastructure kicked calls in clean zero-emission rail. is funded the bipartisan aiming largest Amtrak, of invest which maritime, trajectory $XX over additional hydrogen electrolyzer largest by replacing creation billion proposed history this be sectors grant This Energy encouraging federal to the and fuel development of would passenger year. and zero-emission all cost expected transportation has as production $XXX opportunities looks in cost in Department are funding vehicles $X and in since to Initiative, XX investment and If off for modernize its for particularly a passed, public billion the Earthshot transit. and by years billion generation rail per kilogram billion the specifically XX% public and The transit in of ago. passenger include Hydrogen renewable Numerous The power to a coming with lower out $X models the rail trucking, freight transit hydrogen XXXX. would as $XX hydrogen

the XXXX, history. billion share zero-emission in of new together announced announcement moving President cell Biden the U.S. yesterday, a over incentive electric back to X sold toward with by leading bill, the California, $X buses, of make with economy. annual goal vehicles is infrastructure. largest budget This on zero-emission which economy the executive market incentives zero-emission fuel where fuel vehicles the its standards second direction Further California's XXXX-XXXX and maintains in a for support Ballard in appropriation and in infrastructure the speed XX% an and Detroit automakers illustrates to raise from The years. state This the signed order for the next came is and transportation announcement in clean a single market

key a deployment. held great be visit is held meeting showing hydrogen the Hydrogen stated to I X mobility I refueling have and by fuel China. of cell been expected cell the share Vehicle energy with XXXX of HRS while giant, And China rapidly chain Fuel XX% leader of Shanghai, is peak targets China. electric an attended long-term state-owned for Hydrogen Moving one stakeholders, developing fuel net climate continued in hydrogen annually. and also carbon X,XXX had next fuel Interestingly, comprise Cell to support largest to China, support China's I also stations partners a goal in the International conferences cell policy million to the chain Weichai, by policymakers. disappointing, XXXX. announced supply opportunity with and recently vehicles observed Xth plans a to hydrogen Congress vision X,XXX delays supply energy XXXX, and of Sinopec, by has XXXX by hydrogen promise XXXX. by zero clear.

if development cell points adoption, of more deployment discussions have and active opportunities, front, definitive identified we'll with detail Ballard. an thoughtful we several being in The our compelling capabilities, a customer creating attractive and for investment and is environment accelerate policy friction corporate these cross share to We're momentum opportunity fuel sector number our in with long-term the when potential conclude experience. with expand agreements. approach and and to reduce we're hydrogen capital disciplined opportunities customer and improve On

I'll potential and from announcements, customers For questions. year, well-positioned new and and across supportive diversification target decarbonize and companies, of half the for policy nations, to there continued states work Ballard, the catalysts hydrogen and technology over the clean geographies. including follow-on on that, call of and the to future. a our for back turn a number and products, were progress market as additional segments realize cost We're second expansion With continued orders operator reduction, including

[Operator Instructions].

from question Securities. comes first The Aaron TD with MacNeil

your pricing one customer. but I'm new thoughts you premium your is? which reputation? typical box. build The in many a how on it you references, competitors less a a charging on specifics, Particularly competitors offering get of can are can't the sense sort Are bidding? new like of touched black proven you just prepared into questions are dynamic discounts types for get you looking share. give Tata, could how curious modules order is Randy, competitively? priced remarks, is to relying us are for a you answers competitive and I any be a that us on for Are know but of And I'd to

of illustrative go most a handful years, a small Sure. Aaron, and competitive these only What have the is for are been type competing of companies, Tata, you thanks happened, seen example. as of larger our over proposition strongest. years markets fuel number an of truck, looking medium And course, that cells motive the we and much value companies the what's are opportunities bus, heavy-duty seen of question the the your for landscape comments would if number in change of there a have that of And so handful, where over rail have years applicable. at marine, back last ago, last we've very and X right? of is for like the strategy

they critically Tata, it's buses, kilometers important Hool, Solaris, to And these on landscape, They New Flyer, understand, et front more so safety. of Their care Wrightbus, but Van the are a logos it's to care competitive is cetera. other revenue about any about what's and We're whether for heavy markets. these focus which service, fuel durability. company duty on the a that approaching about industry cell XXX compared differentiator care in They Ballard in of massive motive million now reliability.

about is one the we're capital just sure customer, -- we're upfront of for and long-term lifecycle thinking our implies things that tagline as for focused and the So but that that's cost, our too, life" not "Here durability deployment. lifecycle the making of important, critically on the for over really our cost customers

winning that fit power their temperature, customer ease in into product factors are like output, the offering, integration, of that Certainly, a Tata. the -- a for go of technology, the there of number product So of are that is proven there card and variables of play on durability major important. But expect. and as is pricing reliability, you for being technology there. That calling a number we a Ballard, would point your said, terms

who why our seeing by to to take early earlier of are cost Xth factor generation aren't have We on trying into we are we product, to that's companies to other X-year and stacks the that that's XX%. game, XxX modules time reduce Ballard aggressively. over opportunities deployment and account, win have and who And pricing a program an horizon

same a of want point of we beyond as in across modules as the and a going of just don't rest our attractive. means materials Aaron technology then is off-road we technology competencies, forward. markets, bus, at volume, to cost we I'd end we for same A we're expect where truck, a stationary applications. same part model reduction is, marine the on we highlight have advantages technology think very lot with looking verticals, a core a cost and that bill number substantive sell advantages, well. major and And What as but we advantage into business sell increasingly this So is have we leverage multiple therefore, and that last of one just the power across have advantage to rail

the give let's not what that. more I'm might a date you in like you give anything made, line the and is announcement that if get details or us interesting Ballard can time a is both mechanics level. for the at of into occur a updated level at sense China. guess picking of I when like JV also the can That's might us hoping it. that bit on Got more But subsidies Obviously, then the be what helpful.

have does at you it any sort be subsequently? interesting. For JV will in start instance, What's level orders like or inventories? the versus to goalposts hand utilization it of Like look like contingent of the subsidies the the today think might the what finalization on build JV would

Yes.

over That's is a side, So improvements lot of of on the work of production and compelling. are lot on we've context the last we've production the on year. we've a seen some of a plate And lot course, done Particularly JV, optimizing our very efficiency the processes. that quite that helpful. learned yield

on that's for So the a right you'd believe, as these expect, side. facility motive that's, this duty the in the course, production and very produce fuel low world utilization I is largest facility to Production stacks modules is applications. cell heavy and now, of

X XX,XXX vehicles of over facility. that facility this It's capacity, support. production impressive quite about So annually gigawatts an can

of capability brought of they're when then has been So very look design, and of obviously a has utilization And to bear a next-generation operating outputs. engine the venture there. And understanding joint clarity, as additional low for market waiting so experts the at the diesel lot breadth terms power at portfolio, on you module entire at Weichai requirements increasing lot currently. at the policy market the different China done activities design. here of work in we've

chain And Weichai's and so a muscle. engine very fuel cell Ballard's combination together, supply it's design capabilities with powerful and

very the And and of they continue compelling. done So for on clock reduction there's of components X.X up years. on reliability then the customers That's durability work customer plant cost to side, as truck some about China validate modules the a of validate of their lot the the the over kilometers of been balance in last and number with in that the field. OEMs platforms stacks OEMs we're on now of applications. new largest our and And have some in latest the China talking bus products in generation here largest test Weichai-Ballard of a

contingent So directly, order the that's your important development question a JV. there. answer We have at to don't book,

Society demonstration means. want how program. in to of And very various the focused that's understand national is finalized demonstration regions recent Shandong appointing buses province the I much I in cell the a province. But hydrogen is systems very think encouraging Shandong in the point the and infrastructure policy is station this announcement trucks for that refueling think and regions deployment what really program fuel will on Hydrogen customers beyond what get and

Of course, is venture Weichai-Ballard that's joint where located. the

strong with we we're seeing as and position So scale program. have customers up, the that to believe we starts JV project activity that a from already for very that

with The next from question Mac Cormark comes Whale Securities.

to you but of to Can gears sign bit this it hasn't that you I you just the is Or the because Gore your interest Can little supplies behind a you MEA collaboration? speak membrane, could the of thought, Randy, this? in from speak I to view area? program. would with the MEA Gore, we agreement. whether Or a should about nature what leadership switch as trend that speak Gore

continue obviously working and I membrane for for So for time. they'll leader very years. recipe their number the materials we've long membranes, leader and a to the been And a their their long a capacity of a level time. with and Gore over is think evolved at be have Gore processing they last

deepening lower et performance very cost, cetera. look improve pleased we with have There's membranes, lots to thinner better at we're of collaboration membranes, will underway of higher performance, utilization, we work continue as that the Gore. with collaboration So the

critically suppliers We've partnerships highlight we're not have a want really with that's supply partner market. supplier, so membrane We're for arrangements as for helping as that including period, specifications one Gore, seeing looking the number their as during is for also excited last X-year about results applications, fuel a that other another well. heavy number just cost period So particularly their worked and the have for that and that about a well very over a I important. technical very long-term company the of we a with China durability but to really underway them material option have at domestic duty iterations with in X-year membranes with have particular, we landscape where of opportunities there's in are China emerged as membrane them that mobility validate that's membrane strong over worked and there suppliers the years. domestic to with, collaboration cell as activity with

I MEA, comment supplier strongly with have is appreciate and very Ballard at the MEA. we I as Gore's Gore membrane. positioning on the key positioned for will a we won't So in say the relationship

Okay. Switching pretty to the it's stage then and Linamar Initiative early at now. right

working any powertrain XXXX by prototype of of or is later Or sort on year. the decision on then the than point? a JV? that? You're a the on earlier And of the end testing What timing Is be a it decision that would that? like

question. Mac, Yes great

are of on JV. going and there Linamar. business So terms business in commercialization the One in relates number streams a model, plan work of parallel with discussions to

to including see of there. And utility And certain high-power van in with cycle do our stack And vehicles the a that and customer been for over penetration. years, of we and particularly vehicles utilization positioned, last The market product is into Audi storage. for has balance investments a and number plant our of second modules, integration of stacks including well of the design here components, lot duty and think where the I after relates about on we sector long investment making of then high well they've and really where third density positioned Linamar rates. side. architecture, the car our integration, and lot is powertrain a the are module collaboration adoption see capabilities the course, light

think, light in level where player, positioning comment just conviction And on going vehicles X a supplier that for three to cell And so their Tier these work very, adoption want see seeing automotive streams positioned market Linamar solid. very duty on I the but parallel. all in in fuel great sectors, car well vans those and international are we utility I and this, and vehicles is is

Okay. last there. more could just question, I And if one throw just my in

how look order, $X.X like more Tata that it units around is more -- plan, next to idea Or you a where quarters? like of that their a over see there's quarter? is more where you that Hool couple the months? that. kind a Is to months of on Wrightbus great model the at get Van of Just million every X XX start is like million XX an $X program when trying On to

Yes.

the So deployment X XX in Tata. I orders from over is XX area. those assume in months, to region wouldn't next here months Greater I we're a like New Delhi think additional pilot What into looking buses this at going program

the modules. -- there They're some experience our time Tata with latest new to will those had a generation previous So be that's validate taking We on product. prior modules. generation

we're the much a so now program. to And latest generation pilot larger product moving in

hydrogen X you opportunity the And of is actually Europe. way. I to serious a is and the compare example, we of some European Because large America compare the strongly to is bus OEMs, it North Indian to, what size very see over the Now Chinese awaken substantive would for bus last in the OEMs. Mac, more months it with that kind a Indian the compared market now of really market

local in big for with and So air are will for climate long-term particularly we very India be market change India. mobility, hydrogen, obviously, think large a drivers emissions, where along

as because yes, a out, Randy, you market. Okay. big helpful it's That's pointed

growth. So there, a stick like really-- sort guess a China, comment in there's a comfortable, in -- of hockey your I is legitimate uptick they're you'll the there question hockey and then is that market. once of And it's see exceeding

Yes.

really we're OEM with in be Tata, a to they're For us, #X the working bus pleased large market. particularly,

question Glen next comes James. with Raymond from The Michael

talked you capital about deployment. Randy, some

Like Is discussions of bit just assess more. in partnerships? statements in M&A? just broad it what we opportunities, you thinking some you're a identified you've with there into several curious it about this pretty number a detail might You about parties. Is if that Is little MoUs? can I'm made active trying here. just more to be dig perhaps

it's hi Yeah, Dobson here. Michael, Paul

M&A with discussions on deployment number a both on players. are So large of in commercial the yes, the active front front, very capital and we

front, at the in really we expanding customer as On capability. accelerating before, really markets. M&A talked the and at strategy adoption our aimed deployment that about is key is what And of looking our

support of lots in market, growing big a Europe. is Europe So

And capability our And we expand so the expand looking there to the also in JV our there. looking to can perhaps China, capability to Chinese market. how supply manufacturing see then and

other it some market. on as we're a well well. the our And it periphery, sight there looking side, it's India squarely interesting on think players been wasn't a with the discussions at. radar, with are geographies, has more That going Randy I those is So and on the in yeah, Tata. as now first but And but months ago, few then as some I again, joined mentioned -- things of partnership in the at on that key when massive looking Europe

active. going So discussions year, can't some quite in this obviously. pretty there's make promise that, But in but with are some advanced announcements to some that lots interesting We hope opportunities. we space. on We're

solutions? like a hydrogen great at That's is at I of well. angle suspect of the a or circling to as would battery electric, in their just question most back electric customer competitive to from you're to just the earlier. or how customers I'm -- and are emerging battery competition of When And insight. looking competitive these looking how versus involved are with that for customers a engagement, much of much also dynamic trying these Okay. assess type customer fleets respect when solutions

are Yes. the in Michael, market. that battery that of electric progress are a particular, there in bus good in OEMs market number showing

of what requirements technology what those the their do it therefore, then that's competitive can routes. And is routes market. are transit a we a operator, powertrain much But for very really for duty see that fleet. the So what the cycles function meet and

And that is so how market I say characterized. being that's would

a deployed been trucks, as in short stronger doing from dynamics, for seeing discussion buses that transit many the say as looking Ballard transit of trips, mandate hydrogen China, experiences very orders And large with Europe Europe a And in than now seen cases, that that in number is opportunity. move smaller year engines more is in would In U.S., seen their And North where a seeing, this market what zero-emission last hydrogen to years cell duration other today attractive is opportunities socialized and the seeing. fuel scaling you're seeing and very what so ago. in what in consideration authorities predominant grow have operators that. in over secondary instances in my most were then we've to the fleets market. terms open we've we're many you many and I truck of in now follow-on we're of of are examples is market, this America transit a we're competitive and the have you my the at authorities to give battery, are And their up like for with that mile is kind opinion, truck buses who point except the opinion,

heavier So cell you a the fuel more dominant to move opportunity trucks. as of

comes question Roth from Craig with next Irwin The Partners. Capital

a really been be now. to Randy, These around last is VW So have I Europe. in visibly. for incredibly truck right? guess ventures last with quiet Ballard one And the years. mean, with you X collaborations producers name Ballard fuel At you and spending eons, I've it's the beginning, the couple cells important know money joint OEMs, decidedly of followed some other companies decades I in Audi, had interesting the brand and biggest

underpin Given either support or long-term credibly vehicle your look to it you program? or that experience X? with is offering deep Tier up requirements, program something a knowledge in the that like possible really is year a them MAHLE that the players, one of And needs, these the Or X top-class more OEMs, as should pick their future for next more of development? is for we at their trucking and to your commercial again,

question commercial years with ago, in it we second longstanding obviously have what to longstanding shareholders know you the they joint the on Many is, Ballard. And have had of And you at Daimler and through say Audi a in say, commercial continue of half vehicle you're the their of the And both a so cell venture. were of looking and Ford brand course, XXXX. fuel Yes. Daimler right. Group. relationship trucks, Volvo, market in decade, previously And they're now course, the of XXXX as VW and Craig. and Great deployment VW the

some but are will they investment, it significant clearly time. So making take

that our beyond develop that of and are not large to just plan with module is go with MAHLE, components of terms this In do optimized. integrate as but have fuel customers, also we and the securing leading module cell of into a plant number balance OEMs, and powertrain MAHLE a

friction done from the customer with And we to points. simplify a package help a level have customer and adoption vehicle you go like with remove Ballard, plan so this Weichai, where is in to China with compelling supplier Tier the OEMs X

take So to Ballard-MAHLE for it the through cetera. field et development, trials, will product testing, go time

do very OEMs think sequencing see that it'll OEMs MAHLE and move But large Ballard be number the any few commercial of of customers potential we And one in that. This so side, the on together. I purchasing product. take will a for before quantities view as on vehicle years I a as we transparent the forward

question the across least next the United adoption hydrogen clients. low-carbon been the that They're to a particularly stage hasn't expectation several rich another People hydrogen at aggressive, I've provide from is question fuel really of from my right? Ballard given want standard sort years. all adoption, subsidies of why There's pretty cells, So green Air that in fuel cash would getting been strategy a on best there superior know some the some your a to States, second partners footprint, some states you of that over like and adoption, handled investors, hydrogen in side, one more access today? should the in et of of for in to XX of priority Is front facilitate prepared out for something customer And this environmental this global as the in hydrogen your right the in something economics, for, other is now? remarks. by underline cetera. you those market suppliers that's end look Ballard Liquide you of call, numbers to do the deploy Or see strategy or

the for Greg. thanks Yes, question,

fuel, capacity We supply of companies don't we will be drink supplier in have scale that a sponsor long-term a energy, Ballard the for of that pay at and the financial think where that As do on see look per we winners market is really customers that. basis effectively of Ballard sheet. being supply and and ever fuel strong balance

sheet we on into fuels have a companies, the here Linde, basis procurement then type and the sheet shallow you relative even design, energy like like Total balance like significant companies large they technologies cell at while Air in are They're Liquide, to do and it's These a companies, Products. industry, Shell, we go at need. compared of So strength that a EOG engineering design a gas they're broader station station transporting or have strength. expert various believe the And fuels. construction. course, gaseous and the the capital And balance fuel the Air expert that set pool industrial liquid of expert at

So Total's, EOG's the companies capital. et you long-term think capabilities cetera, and we volume that Shell's, be game BP's, do gas fuel. that to in will the significant be then providers of need very in And industrial with and hydrogen

being that used need are to of already fuel. customers So customers said, Many diesel our our hydrogen. procuring

course, the so need end Ballard, supply hydrogen we but don't experience of we, are the for from with we many companies so help customers. And simplify to can partnering

looking the the on fuel. we're types you built equipment. infrastructure where providers with of And bring on projects. fueling these so hydrogen refueling out centralized lowest. partners obviously gets return projects We're to collaborations depot focused bear to to And we base where providers we're entry and hydrogen about of as with to think barriers are And at able of strong have on,

I then last question, may. And if

a activity Western -- is North of couple as Or or these roughly for always to Would continue revenue other Europe one of you expect that revenue surpass and in Western executives. global of unpredictable, seeing the big China picture over guess companies years. of of China markets I of still majority a to the XX% is and India question. last indicative it's over focus the for be you're particularly America Sort been to activity could next few the China possibly Ballard? years? be

question. Great Yes.

business verticals key be is to so of model, And customer our selling a geographies with strong course, in set. part into of multiple

look our Europe. revenue and it XXXX, of you XX% our order by market, disclose or And segment, was book, almost from very So North from we're XX% year, revenue book customer. we from Last XX% actually any our on at geography of not geography, China. but strong came and take-up, don't for HX look America. And if at order Europe dependent one you the if

Europe revenues Europe declined. So the kind of then the it's what other have revenue, in as as But overall North is that seeing seeing, America well and of and has of that's segments. the growth policy we're as course, that -- China in China masking we're our some stalled, market the

And markets, see largest duty other China, market we'll see our application, you, So between be traction heavy I and India markets, will agree that with in up over including motive split to North other Europe and we'll and start America time. too.

early we've years. weaker and if we've we adoption solar in industry have So model where say this years is there seen any stalls, that are so the wind seen what during like stronger I'll resiliency in the of industry, this periods, it various geographies

do vehicles by X shapes. that as resiliency towards a so China But major fuel we that the our in we million contributor cell model. really like And I this be And start expect have clarity striving revenue to we to XXXX. policy

it's to Great. my picking Thanks the there. and for see questions revenue heavy-duty great taking up

So congrats.

Wells The next question Fargo. comes from with Praneeth Satish

the cluster? Would the a of guess located JV China that Weichai would in some its been and and the as province impact one of wasn't it if yet. reports selected been city is if in how clusters that city make JV in, clusters, difference? programs, nothing that have it what finalized it's would the that not I conceptually, recognizing these pilot There's But of happen is for

some like cities clusters. are had that Beijing, Shandong think Guangdong don't in number province ever and batch of work Shanghai, early city that be are I Ballard other we really going would province. in And included. expectations has you Yes. see There large first are the where included strong example, vehicles them our China for a province of to in in at always markets Guangdong to expect

see have that certainly highest how out. X. X be we'll So be, I think, to it will announced, but the plays There's those X likely priority will

those we're clusters of of the well. other some with have Of partners and some working we the in course, chain are some of supply customers as

Shandong China we're time, focused And to demonstration the will will that's time, And across the will cluster province. of market And we cities market really over with long-term compete demonstration and regions over subsidies of that I regions expand. and you'll expect cluster in to think regions sell outside course, relax economics. So in on. or the cluster see need

were of there Okay. Great. switching transitory chain the wanted just or margins. any kind in first the then you the could to They Were flat And reverse gross with do about supply ask quarter. I gears. or for tracking margins the of the of see next? Where hit that quarter year this over that you year? of balance balance any cost QX type

some its in did the Yes, gross margin. Yes, impacts see Praneeth. Paul we here

the one mentioned and of the remarks in Randy was So supply chain. the talked about things around

the So a environment. done good getting the COVID team has we're board those in on supplies really and through as job going securing

We in have seen prices. some impact platinum

$XXX to year, $X,XXX last think, so. I from, or about went platinum ounce As an

our quite in we areas and added working launching well, other also manufacturing some on so costs group people few did bit quite people R&D, been investing And advanced products in development, and see reduction cost as a our and of product programs. in a through. those We've come

margins some And were fixed so those there. those also costs through our coming of costs coming -- fixed

and customers. but most of what to to could have have those customers, be going don't the be to So think so the we're at contracts, we this we ability some commodity through be point get our we prices don't. forward. We'll now, now, that to and cost to -- we see would through right passed expect maintained to them thought year, we we in where have at pass where we costs base see But

risk we'll going that So to at mitigate forward. be ways looking

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

Just wanted to follow-up rail market on the development.

that orders? that that project pilot developing? a sort you developing? see of order market nice a to market How had Is Siemens how into that take turn time You on from Or will you follow see there. do do

question. Thanks the for Yes.

is market the really we excited will one couple surprise there we're Siemens and opportunity that where rail upside. is the will course, believe a the to that a one this. phases Of to be market about And of we're thinking

module this phase This the expecting on Bavaria the to H be is worked and will from be Plus initial say that quoting Siemens trial. train the development can that region. platform, is trains and what being then that in XXXX, and is a Mireo in service. put integrated through and is And gone successfully we're onerous And So requirements. the packaged demonstration appropriately we've rail a a coercion standards expecting projects. can then XX-month XXXX meets meet basically product what I a these passenger we're What number into of pilot

see of sales we'll off XXXX is so think likely European occur what I will when units is in of kind And terms of quantity lift market. the additional in to

it'll this inflow as and couple rail. more order validate we years that. the So be modest on we're focused work to relatively of next on there's do, But over still

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

diversification geographies. markets diversify might a us you that or Randy, be across product targeting looking mentioned areas target give into? and of Ballard customer hint Could markets to the near-term you

Yes.

some is like seeing, we construction or technology of mining and for where decarbonization. we're additional these verticals I are cells whether believe what they they're of fuel markets, the technology off-road markets, some a And think again, the equipment applications, are have markets, So where markets viable play. can the large it's only

market interest there power in on, different And going mining manufacturers a work segments. where stationary of a we're from market of of So equipment a and mining there's seeing construction lot companies number is lots and of equipment. a lot of interest

So but where at seeing data then stationary not as in power demand And there's seeing increased renewables, with center a applications, of Europe, those opportunities. large very we're where power, backup applications we're just we in lot interest segments. look it's

we're other I seeing markets markets interest of India, fuel on already solutions. terms we've for are East In in increasing cell geographies, and commented think Middle there where the some Australia like

to a And that. follow-on

competitive for these? marine you targeting about in few market the are questions kind suppliers? order, segment modules certain power power Fusion-Fuel and see, Ballard its Is to electrolyzer market this. interesting have stationary On Could you opportunity or cost talk marketing modules opening a for European this you I on it's that in Ballard that of do that the stationary just the just market other the of us because the market? be to electrolyzers? Fusion-Fuel is will a the up designed believe that customers Is there

Yes.

on the and and So this cruise marine a seeing all, we're market, in ferries tugs of boats of lot work first interest applications. and FCwave,

the stationary the with that, product applicability for bill that seeing example, in market mind. is has of product, our power, rail of was designed what opportunities, we is product this so lot similar. materials, market market also materials XX% and but marine for of marine other our module we're And of even fairly in or market probably the bill including a XX% And see

really So some we across multiple good end markets. have opportunity

where cell technology looking high power marine operating customers out cost. low market as of that the do but are terms power, seeing not And application for the there module a design lot and think capital for at of going long-term lot a of fit just it's can I fuel that design like the And When cost, competitive stationary other how look the have In to the cost we've you backup get fuel stationary utilization. the other compared of the module we're to into be designed power, cell the utilization. solutions. I applications, at upfront

And produce as the an and for back site. it power high requirements can have where looking to where at we site design power, now have when isn't the for our used electrolyzer of but to or blowing isn't wind differentiation like example, for stationary be is wind have durability where durability there, ability the hydrogen, utilization. you mining a referred have that solar hydrogen shining, the the markets have electrolyzer that vehicles, of when or at some also those Think to, and is connection So the base product primary to the provide input, used renewable products you the can be you markets for mining about, mining sun your important.

leading mainly kind of there illustrative of working lot projects. with on see. micro a opportunities electrolyzer that we of And many electrolyzer grid an the course, a number companies, are of but that's example, we're So companies

series regional see policy? Okay. looking your whether And you suddenly implementation a the national on that on Or sort implementing comment just clarity one I'm will see continue that believe overarching an policy follow-up announcement? for? China. you of policies of we just customers the national to will curious we are Do can

Yes.

think strategy. that's beyond program really the I its looking announcing China, discussed at demonstration about hydrogen been is

it's So very roadmap, have countries similar to other what done.

between industry, So very a in role that play the an expected can outlook abundance, future penetration would the energy, in out hydrogen in comprehensive be the is how will of renewable on and high and more course, energy, connection and China hydrogen play mobility that which across there.

won't do expect speculate launched see see to So that to a the that, I the we've in that strategy we broader but do hydrogen policy even because will occur. gotten is China. wrong on we timing expect timing already,

stage to see to production. need your up what Okay. at ramping this But customers Is that's start correct? not that

not regional well. condition No, the for the type Yes. regions with growth that's a as we're in expecting of deployments precedent the demonstration

The with Bank. next question comes from National Rupert Merer

activities gave comments us product at supply and Weichai Linamar. and some you chain development Randy, on

Or to and get partnerships your cross-pollination with do between the see accelerate see you development? some are as MAHLE, Linamar further As you into going you them silos? to programs

Great Yes. question.

we'll doing geographic ability balance our inside components lot solution, see working MAHLE some on as looking lot well Linamar a and MAHLE I to intriguing and work we're in with us as and Linamar. MAHLE, conformable the of and China a chain just with the those number and but is there. powertrain of not Weichai for doing of the use certainly creativity with at supply similarly module components very with plant different with of that a verticals. And work that storage key leverage The a think of we're potentially across product there's the components, is innovation. that markets has go

Linamar, is that And use what beyond contemplated ability with that commercialization, well. markets quite as compelling sees in we've to so the if

partners, to use and components in geographies. see all we our MAHLE Linamar industrialization all and So their expertise, with do in opportunity Weichai, likely verticals three their

together? relatively Are all working they're And they? comfortable

component market, take be the integrate be to It's a that let's the know into for working they'd the a us take, solution, rail integrate together. that Linamar market. don't a China example, I more storage where and for and MAHLE Yes. that say, necessarily marine for solution on, for ability a and for we're working into example, product

capabilities different the that there's of the think and So about number a applicable using other powertrain integration to can ways may markets. components we be

question from with Amit comes The Dayal H.C. next Wainwright.

cleaner level market But independently stuff sort up market? Just Randy, et I'm China market play? there just cetera, cetera, where benefits, obviously, understand, that's to subsidies, policy again maybe -- vehicles can the move little of of into does the all in of a these -- given from bringing involve that heavy environmental are fuel But to China the of sort cost preventing again perspective policy bringing is the issues. faster, and cells, while et keep a sorry, this from the and the moving you. in comes to I factor independently your trying sort

Yes.

thanks So question. for Amit, the

rail, map before cost We've road at diesel TCO competitiveness driven outlined command and not by that today. applications on to it's total a truck, cost under technology on based XXXX-XXXX commercial technology. the XXXX when see and applications understand, forward We statements we are that bus, of China policy. have understand time that cell looking fuel And a have policy we most crossover And policy that ownership made, against of where this incumbent We're course, between cascade is frame, cost and marine. competitive to economy, for the is move in statements. enterprises for

the carbon Of well. to cost continues interestingly, course, as of up go

that's time so that comparatives. could real And for a line the accelerate wildcard TCO

and and and high cost. adoption saw we got batteries some initial initial increases down, come typically and this in And supports solar the relax wind course, policy policies of you've volume see, we over adoption what costs markets the where So support provide then volume decrease low with and as early is and and time.

So we're that something similar to see to in China. expecting

we'll so is as volume support yes, and start the become to we've industries. come deployed, then will in And see policy policy other market important less down China, seen costs for that waiting in and

dynamic there. the that's So

build-out the which centralized of like important. for even a I China, stations has I think critically buses compared the real refueling trucks, other that's think, of depot dynamic commercial and refueling course, is, more hydrogen And advantage infrastructure may jurisdictions of with that to in involved type be other behind of other seeing countries muscle getting challenged of in terms capital realized. different and stakeholders a lot putting build-out, these deploying

China think I place. framework ability very in move the to once So is policy has fast the

market with on power. side? share a seems a that we perspective from and stationary are in then presence business fuel stationary create to go get it from kind development applications of sort to bigger an like on bigger What with what all And the power space? to doing sort we Even R&D are is adoption resources the maybe now of power a perspective, of applying Understood. side, maybe around a micro-grid right, other that stationary cells, sort cetera, ready of of the that's et

good the to a and market question. products doing ability are, in It's the use those Yes. of seeing technology course, leverage applications. we of in stationary a our And of number we're really, work products, off power including

increased We globally. activities business our have development

So there's in the And lot in of discussions value China, and we've different brought a as markets additional with North in in Europe, chain. America companies in other resources. well, active on underway

looking large-scale decarbonization that to market them really And and quite are power some stationary of companies game-change segments.

as technology for side, need we're we yardsticks. making to us the the to, the able the year. both comment early investments later progress too development business we're on hope still the customer to on to but this as well But to be provide on there move engagement So visibility making more on we

had. Understood. Thank all I you That's Randy.

Craig Brothers. comes next Tuohy Shere with question from The

apologize. help I will I'm of to leave I up industrial companies like couple the application that your one all have for me gas kind end opportunities. to sounds meaningful answers adoption to of electrolyzer and this the regarding the Fusion-Fuel of opportunities boys, hydrogen kind upon. relied main need of that, reconcile was some customers, conglomerates, response opportunities not be Ballard another we like supplier energy sounded to supply. turnkey, quick Randy, turnkey the Can understand in to sure But the integrated questions that triangulate how of fuel It big to question, could other you it some and course, related and this? all

to Yes, were Craig, PEM between particularly clear great And versus was question, and and sell equipment Ballard, opportunity PEM about manufacturing we our being we hydrogen. should what describing very designing a be supplier manufacturing with for before this. you the of fuel downstream. There's the difference cell look at potentially capabilities electrolyzer that

electrolyzer a but of not supplier being of supplier hydrogen, So a equipment.

discount an opportunity. but supplier opportunity looking sell certainly high of be an in, captive that Is hydrogen that interest a a to helpful? wouldn't don't as we company. that we So energy That's level have as we

nonetheless, But buy end have they helpful. cell electrolyzers, package and they the if work, That's user the buys the right? the all make fuel equipment to need

Right.

end sell to the by transit dispensing compression the asset place Shell, then and fueling station hydrogen equipment, see have the Shell operator. company they authority, a want own an will users electrolyzer, like like and So transit go and electrolyzer a you'll in on-site to operate to and we'd that and that say would put built. is storage hydrogen what if fuel to production typically chillers

but build that and we wouldn't design So the we equipment Shell of I selling station where electrolyzer a we fueling difference be the model and provider station role fuel. operate be just would turnkey described, there? Do in in that appreciate okay of being a you

But get Yes. to you double sort dip. of

the support fueling equipment and, of up. course, electrolyzers You'll the that's both

modules ability ability the hydrogen. that we to where sell selling, illustrative sell the the vehicle have plus We'd that into the in you're -- that where the ability cell example fuel were if Exactly. we'd that electrolyzers had the to case have are and equipment, consuming

get couple thoughts question, on the last for kind thoughts And any now? we've any And to out Right. ability at of timing years been this breakeven? $XXX revenue rate a run we of clarity of before about cash China break annualized to regulation flow million about

revenue, provide look What Yes. of zero-emission that you particularly Europe, see flow scale, different in in in don't to buses, is our XXXX deployments in when do North I cash at alone, let of as on objectives think views see, mean breakeven. we markets. we'll our XXXX buses year and you guidance America, current we starting about on China, for course,

to we commercial And with trucks the As of you as roads. China to with truck MAHLE the as these about XXXX the we've joint verticals that venture that, through deployments. see, move across in rail see, applications ramp this is And 'XX you get of and and see key go all from as really the talked to potentially XXXX, programs similarly X more side doing in to modules the on illustrative the Europe, and progress pilot with you into examples, commercialization Weichai-Ballard projects geographies marine start on contributing.

hockey said that. always get standards, of to growth the by then, industry rate traditional not growth good see see after as the kind you steep expect that the And we've to and a frame. stick but So now we will XXXX-XXXX curve very see time necessarily between you'll effect,

Understood. Thank you.

from next The Riley. comes with question Chris Souther B.

some that the delivery bus backlog number space, cadence European able an the to the year? give for would are just under visibility looking year at. you buses and earlier backlog kind that of we're of to got today be hoping or to-date all kind and to within Just down within for the nail drive this you've XX-month the on Maybe of orders mix programs. the in of frame versus cadence outlook the And or next

that So trying to program sense Europe. line of out the batch next a of get for time

announcement the So perhaps for very major I see to we're team, pretty the or expecting this of early support some time important on before support think, expecting the frame, the and Europe. kind certainly in to December post-JIVE developments bus next later scale we're on significant European December year, see of

-- to in to pretty relate big you in did in at first our part Europe. order excited the of order relates buses terms of kind intake year that. the of intake, we're about the look So of half the near-term When a

We that continue. to expect trend

a number working Europe. bus of we're that have in with We OEMs

the that those the So and are in see starting market scaling occurring key really cities. to Wrightbus, in in market Solaris, active effect Van these in Hool, winning projects cities all ADL, are

years, sales suggests in now be some the in next And looking me, cell over to Europe the of will number at deployment. of we're signed up buses fuel of marketplace that thousands pipeline the for

hear. India That's there. maybe Tata, the and to And opportunity turning great to back

the off clean to get production preferential? that way is you'd think there. about if size, would think Just market or obviously larger similar over as you that a kind market take you there then, of JV -- off it potential? a talked -- a is take local Or either Is where momentum that's kind were of where very hydrogen JVs, is America, China your a market wanted be market -- You attractive. to which your Europe of for one sense source from time? or strategy the going the North China, to or If a

Yes, Chris, question. a great that's

there India, there position that present have to have can and very strong I like companies bring and like think is market. value are there other Japan unique the And China, a certain a of lot and markets, capabilities bear.

over And strategy We'll next we market development and months. key a partner. how larger more relationship shapes a could comprehensive that that development activity XX in see with the a Indian so business considering China are involve

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

forward everyone, QX Kate and discuss with to for in Thanks November look we'll joining Great. you when And today. thanks, us results Paul, XXXX. I, speaking again. for

today's conference This concludes call.

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