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BALLARD Ballard Power Systems Inc. Ballard Reports Q3 2021 Results For Immediate Release - November 8th , 2021 News Release VANCOUVER , CANADA - Ballard Power Systems ( NASDAQ : BLDP ; TSX : BLDP ) today announced consolidated financial results for the third quarter ended September 30 , 2021. All amounts are in U.S. dollars unless otherwise noted and have been prepared in accordance with International Financial Reporting Standards ( IFRS ) . " We continue to see a significant shift in sentiment and sense of urgency by political leaders , industry , consumers , and the investment community to address our climate crisis , " said Randy MacEwen , President and CEO . " As global political and business leaders meet in Glasgow at COP26 , we see growing action by policymakers and corporations to decarbonize energy , industry and mobility , with hydrogen identified as a key enabler to decarbonize hard - to - abate sectors . With 39 countries covered by government - backed hydrogen strategies , we are also encouraged with the $ 9 billion of fresh commitments to support hydrogen adoption in the United States . " Mr. MacEwen added , " With this favorable contextual backdrop , we continue to increase and accelerate investments in our business , including in technology , products , customer experience , and capabilities . Our business model is designed to electrify and decarbonize medium- and heavy - duty motive applications , such as bus , truck , rail and marine , as well as critical stationary power applications . We also continue to develop key partnerships across the hydrogen value chain to reduce customer friction points and accelerate take - up . " Mr. MacEwen further stated , " In the third quarter , Ballard achieved revenue of $ 25.2 million , gross margin of 11 % and ending cash reserves of $ 1.2 billion . While we have been challenged with protracted delays in China , as well as unprecedented global supply chain constraints , we are enjoying record levels of customer engagement across our application verticals in Europe and North America . We are set up for an exciting year in 2022 , marked by increased investment , important customer wins , continued product innovation and cost reductions , and the start of a long - term revenue ramp . " " Q3 2021 Financial Highlights ( all comparisons are to Q3 2020 unless otherwise noted ) Total revenue was $ 25.2 million in the quarter , down 2 % year - over - year . The slight decrease was driven by a reduction in lower Heavy - Duty Motive and Technology Solutions revenue in the quarter , largely offset by increased revenue in Material Handling and Backup Power . о о о Heavy - Duty revenues of $ 11.2 million decreased 13 % , primarily due to lower shipments of fuel cell products to customers in China . Material Handling revenues of $ 3.1 million increased 120 % , primarily as a result of higher shipments to Plug Power . Backup Power revenues of $ 1.9 million increased 90 % , supported by an increase in sales of backup power fuel cell stacks , products and service revenues in Europe . Technology Solutions generated revenue of $ 9.0 million in the quarter , a decrease of 13 % due primarily to decreased amounts earned as a result of the completion of certain customer programs . • Gross margin was 11 % in the quarter , a decrease of 8 - points , driven by a combination of a negative net warranty adjustment , shift to lower margin revenue mix , and an increase in labor , supply and freight expenses . Operating Expenses and Cash Operating Costs were $ 26.9 million and $ 22.7 million in the quarter , respectively , an increase of 115 % and 112 % , respectively . Increases were driven primarily by higher expenditure on research , technology and product development activities in Canada and Denmark , including for development of next- generation fuel cell stacks and modules for target markets , as well as increased investment in existing fuel cell products , including activities related to product cost reduction . • Here for life ™ Ballard Power Systems Inc. Phone 604.454.0900 9000 Glenlyon Parkway Burnaby , BC V5J 5J8 Canada ballard.com