Ballard Power Systems Inc. (NASDAQ:BLDP) Q2 2020 Earnings Conference Call - Final Transcript

Aug 06, 2020 • 11:00 am ET

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Ballard Power Systems Inc. (NASDAQ:BLDP) Q2 2020 Earnings Conference Call - Final Transcript

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Q & A
Operator
Operator

[Operator instructions] Our first question comes from Craig Irwin with ROTH Capital Partners. Please go ahead.

Analyst
Craig Irwin

Good morning and thanks for taking my questions. So Randy, Joe Bamford CEO Wrightbus is a really good customer yours and he's out there talking about doing 3,000 fuel cell buses over the next few years. It seems like there is pretty good regulatory support in the U.K. and they're trying to work out the funding for that, although it is apparently in their stimulus. Can you maybe just help us with a little visibility on the potential tempo of orders, if we do see the funding materialized as expected and are there many other customers like this that have aggressive programs to serve the European opportunity?

Executive
Randall MacEwen

Craig good morning and thanks for the question and you're right Joe Bamford has been a great customer for us and a great friend in fact. He is very active in the U.K. market agitating to have zero emission buses not just 3,000 potentially up to 5,000 zero mission buses over the next number of years and looking for a pretty significant portion to be fuel cell buses and it's quite influential in that market.

One interesting thing about Joe is that not only does he own Wrightbus but he also owns a company called Ryse Hydrogen which is providing hydrogen fueling station including for an existing project with transport for London. So Joe is quite active in that market. It's a local producer a manufacturer of buses and has very good market share in that market.

In terms of the cadence of orders I think it's a little too early to comment on that. We're pretty excited about what we're seeing in their sales pipeline with different cities in the U.K. as well as in Europe generally. They're quite active now looking at other opportunities in Europe. To the second part of your question of course Wrightbus is a great leader in this market but there are others as well.

And so you're seeing Solaris is very actively bidding in a number of key countries on Mainland Europe and you've got Van Hool as well who has been very active for a long period of time continuing to look at opportunities for fuel cell buses and have launched some very good projects with very good products. So I think we're going to see a significant uptick in Europe as well as the U.K. over the next couple of years. When we look at the growth that I mentioned earlier in our sales pipeline a very significant portion is coming from the bus market and we're very showing a strong contribution from Europe, I would suggest over the next 12 months to 36 months.

Analyst
Craig Irwin

Thank you for that. So the next question I wanted to ask is about the China market, right, so thank you for the update on the infrastructure in China. I know that that's very important because of the structure where people have to run