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Q4 & Full Year 2015 Results Conference CallFebruary 25, 2016

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Conference Call Participants

Tony GuglielminCFO

Randy MacEwenPresident & CEO

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This presentation contains forward‐looking statements, including: estimated revenue; cash operating costs;gross margins; product cost reductions; adjusted EBITDA; liquidity; market size and growth projections;customer value propositions; and expected sales and product shipments. These forward‐looking statementsreflect Ballard’s current expectations as contemplated under section 27A of the Securities Act of 1933, asamended, and Section 21E of the Securities Exchange Act of 1934, as amended. Any such forward‐lookingstatements are based on Ballard’s assumptions relating to our financial forecasts and expectations regardingour product development efforts, manufacturing capacity, and market demand.

These forward‐looking statements involve risks and uncertainties that may cause our actual results to bematerially different, including, general economic and regulatory changes, detrimental reliance on thirdparties, successfully achieving our business plans and achieving and sustaining profitability. For a detaileddiscussion of these and other risk factors that could affect Ballard’s future performance, please refer to ourmost recent Annual Information Form. Readers should not place undue reliance on Ballard’s forward‐lookingstatements and Ballard assumes no obligation to update or release any revisions to these forward lookingstatements, other than as required under applicable legislation.

All amounts are consolidated to include Dantherm Power’s results and are in U.S. dollars, unless otherwisenoted.

This presentation does not provide full disclosure of all material facts relating to the securities offered.Investors should read the final base shelf prospectus, any amendment and any applicable shelf prospectussupplement for disclosure of those facts, especially risk factors relating to the securities offered, beforemaking an investment decision.

Forward‐Looking Statements

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2015 Overview

• Full year 2015 results broadly in line with expectations, with the exception of Telecom Backup Power

• In 2015 we redefined customer‐centric business strategy, with introduction of two growth platforms  

o Power Products

Heavy Duty Motive

Material Handling

Portable Power

Telecom Backup Power

o Technology Solutions

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• Continued building on 25 years of experience

o Fuel cell engine deployments in 20 countries

o Powering buses over 8M km’s in revenue service, carrying more than 10M passengers 

• Growing interest in China, Europe, U.S. & Japan

• Product reliability continues to improve

o Transport for London bus, in fleet of 8 buses, clocked 20,000 hours of service

• Costs continue to fall

o 30% cost reduced FCvelocityTM‐ HD7 launched and 30kW & 60kW product extensions introduced

2015 – An Historic Year For Heavy Duty Motive 

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• In past year signed more than $48M in committed orders, including:

o $17M with Synergy to support deployment of 300 buses in Foshan & Yunfu

o $10M with Synergy & Zehe to power 33 buses

o $9M for two programs with CRRC for development of fuel cell tram engines 

o $12M with Synergy for fuel cell stacks to be used in bus modules

• Strategic Collaboration Agreement with Xiamen King Long United Automotive Industry Co. for design of fuel cell bus engine

• Expect significant growth in 2016 and beyond

o China’s 13th 5‐Year Plan in March expected to include strong commitments to mass transit infrastructure and reduction of GHG’s  

Heavy Duty Motive in China

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EUROPE

• In 2015 5 major OEMs & 30 transit operators committed to 500‐to‐1,000 fuel cell buses in 2017‐20 timeframe

• Van Hool won EU funding for 21 fuel cell buses in 2015 under 3Emotion program – Ballard to provide modules 

• Horizon 2020 program call for at least 100 fuel cell buses issued in January 2016 – bids to be received by May

U.S.

• Ballard to provide modules for 10 buses under LoNo Vehicle Deployment Program

• Ballard part of consortium bids under AQIP Program

Heavy Duty Motive in Europe & U.S.

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Material Handling  

• Fuel cell stack shipments increased slightly in 2015, though revenue down 9% due to change in product mix

o Currently more than 10,000 forklifts in the field, most powered by Ballard fuel cell stacks  

• Growth in Material Handling market continues 

o Plug Power experienced record year in 2015, expects continued growth in 2016

o Extension of U.S. ITC enabler expected through 2021

• Ballard well positioned to support Plug Power as well as forklift OEMs

o Working hard to continue as long‐term technology supplier to Material Handling systems integrators, including Plug Power

o Also working on business development activities with forklift OEMs focused on development of purpose‐built fuel cell trucks

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Portable Power

• Added Portable Power to Power Products platform through October 2015 acquisition of Protonex

o Q4 $3.4M contribution to top line

o Late‐December received $2.8M purchase order for SPM‐622 power manager kits for U.S. Army Rangers

• Expect continued progress in 2016

o Full year revenue expected to be approximately $20M

o Protonex expecting ‘Milestone C’ on path to achievement of ‘Program of Record’ status for SPM – if successful, will trigger significant scaling, beginning late‐2016 

o Progress being made in UAV programs with Insitu (a Boeing company) and Lockheed Martin

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Telecom Backup Power

• Market has proven very challenging to penetrate for all fuel cell industry players

o Disruptive technology in the form of capital equipment, based on a lifecycle value proposition is difficult to sell into the consolidating telecom industry

• In 2015 Ballard initiated a process to explore strategic alternatives 

o Process is ongoing 

o Currently in discussions with potential partners for a strategic transaction

o Will provide update as events require

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Technology Solutions

• In 2015 closed $80M landmark transaction with Volkswagen Group

o Strong year in terms of performance – exceeded many targeted milestones

• Development of proprietary technology has positioned Ballard strongly with the automotive industry

• Fuel cell automotive industry continued building momentum in 2015 

o Toyota opened web portal for Mirai sales

o Honda announced plans to sell Clarity in Japan

o SAIC announced plan to invest billions of dollars in new energy cars in China, including fuel cell cars

o Toyota, Nissan & Honda partnered with Japanese government to develop H2 fueling station infrastructure 

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2016 Outlook – Revenue & Gross Margin

• Revenue growth underpinned by record order booko Current $58M order book to be delivered in 2016 –

exceeds 2015 revenue

o Significant upside – for example, only includes Q1 forecast of Material Handling revenue 

o Qualified sales pipeline also strongest in Ballard history

• Gross Margin improvement expected

o Driven by improved product mix (important contributions from Portable Power, Technology Solutions, Heavy Duty Motive) and disciplined pricing, product cost reductions, operating efficiency improvements 

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2016 Outlook – Operating Costs  

• At a minimum Telecom Backup Power cost base will be reshaped to better align with revenue trajectory

• With leaner business model, steps have been taken to rationalize & consolidate executive team and initiate management renewal 

o 3 executives departing by March 31 – Paul Cass, COO, Dr. Chris Guzy, CTO and Steve Karaffa, CCO

o Responsibilities have been assumed by internal personnel: 

David Whyte, VP – Operations

Dr. Kevin Colbow, VP – Technology and Product Development

Karim Kassam, VP – Commercial

• Telecom Backup Power and executive cost rationalization expected to save $4M in annualized cost, lowering breakeven revenue by more than $20M

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Gross Margin (%) 

Q4 & Full Year 2015 Revenue and Gross Margin

Revenue (millions) 

$55.8*

• Q4 2015 Revenue of $20.0M, +28%o Power Products +37%, Technology Solutions +12%

• Full Year 2015 Revenue of $56.5M, ‐18%o Power Products +5%, Technology Solutions ‐38% 

(NOTE: Technology Solutions was impacted by $8.7M in 2014 from licensing contracts that were subsequently terminated and by $2.3M exchange rate impact of weaker Cdn dollar on Volkswagen Group contract in 2015)

* Services provided primarily for Daimler AG for a specific manufacturing supply agreement in October 2011. This segment ceased to be an ongoing operating segment as of the fourth quarter of 2011.

• Q4 2015 Gross Margin of 19%, +38‐points

• Full Year 2015 Gross Margin of 18%, +3‐points

$55.8*

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Q4 & Full Year 2015 Cash Operating Cost Base and Adjusted EBITDA 

Cash Operating Cost Base* (millions) 

* Measures operating expenses excluding stock‐based compensation expense, depreciation and amortization, impairment losses or recoveries on trade receivables, restructuring charges, acquisition costs and financing charges 

Adjusted EBITDA* (millions) 

* Measures EBITDA adjusted for stock‐based compensation expense, transactional gains and losses, asset impairment charges, finance and other income and acquisition costs

• Adjusted EBITDAo Q4 2015 improved 82% to ($2.9)Mo Full Year 2015 improved 18% to ($15.3)M

• Earnings Per Share (EPS) o Q4 2015 improved 91% to ($0.01) per shareo Full Year 2015 improved 80% to ($0.04) per share

• Q4 2015 Cash Operating Costs of $7.7M, improvement of 1%

• Full Year 2015 Cash Operating Costs of $29.1M, increase of 10%

o Due in part to full quarter of Protonex operating costs 

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Liquidity

• Q4 2015 Cash Used By Operating Activities increased to ($10.6)M

• Full Year 2015 Cash Used By Operating Activities increased to ($25.4)M 

• End‐2015 cash reserves of $40.0M

o Includes $29.5M net proceeds from initial IP transaction with Volkswagen Group, $13.4M net proceeds from July equity offering and $5M strategic equity investment from Nisshinbo Holdings 

• Q1 2016 –

o Received $3.3M from Superior Plus related to December 2008 restructuring agreement 

o Expect $9M net cash by end‐Q1 from IP transaction with Volkswagen Group

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Q & A

Q4 & Full Year 2015 Conference Call

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Q4 & Full Year 2015 Results Conference CallFebruary 25, 2016