Event Brief of Q1 2006 Ballard Power Systems Earnings Conference Call - Final.

Original Source: FD (FAIR DISCLOSURE) WIRE

PARTICIPANTS

. Michelle Cormack, Ballard Power Systems, Manager of Corporate Relations . John Sheridan, Ballard Power Systems, President and CEO . Dave Smith, Ballard Power Systems, CFO . Noordin Nanji, Ballard Power Systems, VP and Chief Customer Officer . Brian Piccioni, BMO Nesbitt Burns, Analyst . David Smith, Citigroup, Analyst . Mac Whale, Sprott Securities, Analyst . Brian Gamble, Simmons and Company, Analyst . Tom Astle, National Bank Financial, Analyst

OVERVIEW

BLDP reported that revenues were up to $12.5m, a 14% increase in 1Q06 vs. 1Q05. 1Q06 net loss improved to $0.15 per share, down from $0.26 per share in 1Q05. The Co. confirmed its overall revenue guidance of $55-65m for 2006.

FINANCIAL DATA

A. Key Data From Call 1. 1Q06 revenues were up to $12.5m, a 14% increase vs. 1Q05. 2. 1Q06 net loss improved to $0.15 per share, down from $0.26 per share in 1Q05. 3. 1Q06 vs. 1Q05, OpEx including D&A was down $7.6m or 23%. 4. The Co. confirmed its overall revenue guidance of $55-65m for 2006. 5. The Co. maintains its operating cash consumption guidance of $50-65m for the full year.

PRESENTATION SUMMARY

S1. Business Overview (J.S.) 1. Opening Remarks: 1. BLDP reported that 1Q06 was on track with both its strategic direction and its specific 2006 goals. 1. The strategic direction is broadly to exploit profitable near-term opportunities for emerging fuel cell applications with priorities in fuel cell residential cogeneration and forklifts while at the same time pursuing the longer-term value creation opportunities for fuel cells in automotive markets. 2. 1Q06 Highlights: 1. Regarding the high level financials vs. 1Q05:

1. The Co. had revenue of $12.5m, an increase of 14%. 2. Cash consumption was $12.1m, a decrease of 50%. 3. Net loss was up $17.2m, a decrease of 47%. 2. For near-term market priorities, the Mark 1030 product for residential cogeneration, in 1Q06 the Co. had 20 units shipped clearing the 2005 backlog, and 96 orders booked. 1. This represents a total of 116 Mark 1030 shipped or booked, more than 40% of the Co.'s stated goal of 280 for the full year. 3. As far as the cogeneration technology and product development program, BLDP reported that it is proceeding on schedule with a prototype of its first-generation Mark 1030 product. 1. The new product design is targeted to significantly reduce costs and to meet the product life requirement of 40,000 hours or roughly translated to about ten years. 2. With the near-term market priorities, the fuel cell powered forklift market, the Co. began 1Q06 with a backlog of about 140 Mark 9 SSL units and shipped 38 of these. 3. BLDP had new orders for eight units for a total of 46 units shipped or booked. 4. This is relative to the full-year target of 300 units. 4. The customers are currently engaged in field trials with end users like Wal-Mart and Bridgestone.

1. BLDP anticipates significant bookings in the back half of the year based on continued success in these trials and the customer feedback to date is still very positive. 5. In the longer-term automotive markets, there was some key progress in 1Q06 and a key …