VANCOUVER, CANADA – Ballard Power Systems (NASDAQ: BLDP; TSX: BLDP) today announced consolidated financial results for the fourth quarter and full year ended December 31, 2021. All amounts are in U.S. dollars unless otherwise noted and have been prepared in accordance with International Financial Reporting Standards (IFRS).

“2021 was an important year for Ballard as we made significant progress against our strategic plan and continued to position Ballard as a leading fuel cell player in the decarbonization of medium- and heavy-duty mobility. In 2021, we deepened our customer base in our target markets and made marked progress with existing and new partnerships. This progress is critical as we begin to transition various customer programs and pilots into long-term supply agreements, order book growth, and series production,” said Mr. Randy MacEwen, President and CEO. “The increased global alignment around addressing climate change and energy security support the expected proliferation of hydrogen fuel cell technology and our long-term outlook for a significant revenue ramp.”

Mr. MacEwen continued, “We are encouraged by the unprecedented capital inflows we are seeing drive the hydrogen economy forward. We have developed our business model to capitalize on the growing hydrogen economy by using the same core competencies and fuel cell technology across multiple applications and markets. We believe our strategy to invest ahead of the hydrogen growth curve in our capabilities, technologies and products, as well as targeted market expansion, position us competitively against our peers and allow us to provide the best zero emissions solution to our customers at scale.”

Q4 2021 Financial Highlights

(all comparisons are to Q4 2020 unless otherwise noted)

Total revenue was $36.7 million in the quarter, up 28% year-over-year. This increase was driven by growth in Power Product sales, more than offsetting the decline in Technology Solutions revenue.
Power Products generated revenue of $26.6 million in the quarter, an increase of 77%, driven by higher shipments of fuel cell products.
Heavy-Duty revenues of $22.5 million increased 89%, due to higher sale to customers primarily in China, Europe, and North America. European and North American Heavy-Duty Motive revenue increased 92% and 268%, respectively.
Material Handling revenues of $1.3 million increased 36%, primarily as a result of higher shipments to Plug Power.
Backup Power revenues of $2.7 million increased 30%, supported by an increase in sales of backup power fuel cell stacks, products, and service revenues in Europe.
Technology Solutions generated revenue of $10.1 million in the quarter, a decrease of 26% due primarily to decreased amounts earned as a result of the completion of certain customer programs.
Gross margin was 13% in the quarter, a decrease of 7-points, driven by a combination of a shift in revenue mix and increased labor, supply, and freight expenses.
Operating Expenses and Cash Operating Costs were $32.3 million and $26.6 million in the quarter, respectively, an increase of 65% and 62%, respectively. Increases were driven primarily by higher expenditure on research, technology and product development activities, including the development of next-generation fuel cell stacks and modules for target markets, as well as increased continuation engineering investments in existing fuel cell products. Costs were also higher as a result of increased general and administrative expenses and sales and marketing expenses.
Adjusted EBITDA was ($25.5) million, compared to ($14.5) million in Q4 2020, primarily a result of the decrease in gross margin and increase in Cash Operating Costs.


Ballard received approximately $21.2 million of new orders in Q4, and delivered orders valued at $36.7 million, resulting in an Order Backlog of approximately $93.1 million at end-Q4.
The 12-month Order Book was $67.3 million at end-Q4, a decrease of $12.1 million from the end of Q3 2021.

Order Backlog ($M) Order Backlog
at End-Q3 2021 Orders Received
in Q4 2021 Orders Delivered
in Q4 2021 Order Backlog
at End-Q4 2021
Total Fuel Cell
Products & Services $108.5 $21.2 $36.7 $93.1
Full Year 2021 Financial Highlights
(all comparisons are to full year 2020 unless otherwise noted)

Total revenue was $104.5 million in 2021, approximately flat year-over-year. The slight year over year increase of 1% was driven by growth of 16% in Power Product sales, more than offsetting the decline in Technology Solutions revenue.
Power Products generated revenue of $68.0 million in the year, an increase of 16%, driven by higher shipments of fuel cell products.
Heavy-Duty revenues of $51.7 million increased 8%, due to higher shipments of fuel cell products to customers primarily in North America and Europe which more than offset declines in China. European and North American Heavy-Duty Motive revenue increased 54% and 302%, respectively.
Material Handling revenues of $8.1 million increased 53%, primarily as a result of higher shipments to Plug Power.
Backup Power revenues of $8.2 million increased 47%, supported by an increase in sales of backup power fuel cell stacks, products, and service revenues in Europe.
Technology Solutions generated revenue of $36.5 million in the year, a decrease of 19% due primarily to decreased amounts earned as a result of the completion of certain customer programs.
Gross margin was 13% in 2021, a decrease of 7-points, driven by a combination of a shift in revenue mix and increased labor, supply, and freight expenses.
Operating Expenses and Cash Operating Costs were $102.1 million and $83.8 million in 2021, respectively, an increase of 68% and 67%, respectively. Increases were driven primarily by higher expenditure on research, technology and product development activities, including development of next-generation fuel cell stacks and modules for target markets and increased continuation in engineering investment in existing fuel cell products, including activities related to product cost reduction. Costs were also higher as a result of increased general and administrative expenses and sales and marketing expenses.
Adjusted EBITDA was ($82.2) million in 2021, compared to ($38.9) million in 2020, primarily as a result of the decrease in gross margin, increase in Cash Operating Costs and higher equity loss of investment in the joint venture and associates.
Cash reserves were $1.1 billion at December 31, an increase of 47% from the end of Q4 2020 and a decrease of 8% from the end of Q3 2021.

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