HYZN - Earnings call transcript Q3 2021

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Operator

[Technical Difficulty] conference call.

As a reminder, today’s call is being recorded. At this time, all participants are in listen-only mode. A question-and-answer session will follow the formal presentation. At this time for opening remarks and introduction, I would like turn the call over to Darla Rivera, Investor Relations Manager of HYZON.

Darla Rivera

to quarter welcome earnings and morning, HYZON’s XXXX third call. Good Investor Rivera, Senior Darla Relations. Manager I’m of On today’s Gordon, Craig Financial Chief officer; call are Mark Officer. Strategy Parker Executive and Officer; Meeks, Officer; and our Mark Gordon, our financial Knight, chief Chief our Chief on HYZON found today can results in hyzonmotors.com our a press website issued that the release in be our investors section.

expectations performance. future comments within COVID-XX are Forward-Looking our the may Please on section. include under posted contain operations of this Statements, Company’s our refer statement the financial may our the investor and call reminder, pandemic, regarding a subject Including risks As impact to to and assumptions and website looking which and forward various uncertainties.

could forward-looking to materially no which form SEC, this For updating the of complete was Please a statements. including assume more issued on for discussion by law, filings actual that the from differ cause with statements. any the morning, forward-looking we furnished responsibility to uncertainties SEC. required refer our and release the Except as with press results X-K risks

Craig Investor Hyzon. to morning, with over that, And also SEC. of GAAP we in which press to furnish our the information and refer available about X-K release in reconciliation this measures certain nearest call measures, including with the section Executive non-GAAP call, contained on EBITDA I’m more and these is this During Chief a the to detailed measures the financial website is Form adjusted Officer and was U.S. turn Knight, EBITDA, pleased to issued the of

Craig Knight

morning. joining for everyone to this thanks And Darla. you, Thank us

check sound Darla. Just a quick

Operator

are You good.

Craig Knight

operational one perspective. successful and financial third Hyzon’s was quarter very from both a an

in in in again been we advantage. continue and ship of advances plan, ongoing by equal have quarter, the progress, revenue, milestones Hyzon we strategy of investment the additional Today, chain build to our guidance has the face team. of receiving our our made deployment, affected several our supply even of We communicating are Hyzon partnerships challenges that hydrogen executed reaffirming solid out vehicles well-documented end furthered globally. significant the During XXXX. deeply caliber extending technology high XX orders, expecting the terms and achieved to in industry to have infrastructure manufacturing

advantage within continue hardworking during it target strength future. We we and progress meet interests. expect team the the Hyzon to that energy a facilities operations expect and transition. Hyzon’s has of the purpose to belief Hyzon in footprint important this competitive determined the a Asia, becoming our we our have an the made business and dislocations is to a of Europe. to role into of which in few current which operations technology, due to enormous will testament protect our an and well A and experienced company, the benefits America shown personnel, North company, is to short feature driven global hard technical play months with shareholder management working is public accelerating underpin

road we available the do near-term that. vehicles we themselves for Hyzon’s today, letting customers can when global did Asian Asia, and that our wherever and delivery of that, customer’s As is the chain we in from done of last could. fuel do focus months, specifically. within shift footprint the supply European the we decision locations And make historical conscious because to that to predominantly few of in mix a we able have will getting it. global worsened are our that deep challenges a and result We China, predominantly hands solar exactly into vehicles advantages to relationships especially on were electric customers, see

trials of sector the Municipality used in deliveries commercial applications. was And the were our agencies trucks that Hyzon’s These two Rotterdam, of that to of have we we real-world our first deliveries early third earlier in their and is following the million communications, are first adopters recorded revenues, the Municipality Europe first vehicles Europe, they one by delivered fuel earnings not in deliveries customers for these noted Hyzon one to both vehicles, customers third several Netherlands. highlighted Hyzon flagged be accomplished. quarter. And closely total vehicle During $X had we to the validating behind. in as was cell government In exactly in expectation third quarter, legal previous to quarter. In to which revenue resulted This in the to what the call, in everyday in Groningen, needs.

proud are agreement first The announced are trial are previously recently relationships seed sales a of you not private have sales one Steel for operating heard of Sha the deliveries. obviously company placed currently the these XX-day With in some orders, this we beginning. world’s reach with me many of Group’s many example We Steel talk a in just to discussions Sha time, that Group, base some about milestone, to for the have customers their at have our including but who expand yet subsidiary engaged with received largest who steel China. repeat

the we sales, we or use story, a then series fleet articulated pilot orders, For and conversions it batch progress the we our always would. would then to have have our through as for articulated cases that just and are believed market those market new the develop seeing seed of HYZON view

our the able our from to orders. had pace Importantly, to pivot haven’t were Europe focus given near-term slowdown Asia, we we make the of in a in

XXXX. and the facilities mid the New by morning, milestones HYZON for we build a The these North the is also in China of total this end user of our we and from conglomerate. in industrial into are market, with As Rochester, continue out Illinois to of trucks a Automotive orders Along anticipated Europe HongYun XX be push has online Bolingbrook, Shanghai purchase Hydrogen our American in trucks. where two large first York received the Asia, announced

U.S. limit to of the slightly ensure Motor’s delayed due manufacturing equipment, commencement HYZON damage. the that operations is the of is to designed availability While we

parent U.S. source parent powered facilities North systems cell in company to two get complement our the running the installed to has interest shown be facility up in customers in electric ride since of to Fuel obviously Cell the the stages, anything The while during Electric plans expo seen even drive from eager two we quickly, FCETX fuel HYZON the from deliver our Beach, trucks fuel go event these continue market by. these U.S., interim, manufacturing manufacturing cell additional if fleet hydrogen September American beginning Detroit. to are Long fleet hydrogen Company’s early Class-X we existing As to and fuel at and enthusiasm Trucks R&D for base we commercial the of benefit transport in to is grow and in cell year California of to the in first the the clean HYZON among the

have back it. to the being be trillion to transition plenty $X.X supply the operations. base We soon U.S. to forward already pursued support infrastructure strategy by with for which energy hydrogen supporting A look to HYZON closely includes bill, signed hydrogen billion aligns to fleet hubs, $X

becoming we grant our July, XXXX. including to we that with participation accomplish of has of outlined in the HYZON’s other leading commercial shaping I’m expansion to are believe spend a been progress activities. leadership the the since intellectual public amongst Along half and portfolio We team the the continue hub We have of consistent we entire everything submissions HYZON, and able in incredibly second hydrogen and position, robust with to been can program operational of company we continued what actively at under property plans R&D. our do on maintain proud

and within in fuel time, the cell content us we Expected electric earn vehicles to the account vehicles. to the speak robust in cost components vehicle. for majority XX% the this to can of content account You production. to our of of This opportunity us HYZON expect expect specialized around hear consistently the and and like the Strategy for strategy Hyzon into would a I ensures to Officer over pools; of margins Hyzon sharpened increase fueling Over to service. lot to vehicle summarize our I and on the focus operations efforts, now spoken hydrogen our Parker have around turn about our success To priorities, sales. commercial our call value vehicles, our Chief of three parts infrastructure, fuel, discuss Meeks. and has the

Parker Meeks

Thanks, thanks everyone call. And the Craig. to again on

to question that adoption necessary our the supply transport putting to us bit underway. Hyzon waste create thought with trucks. as hydrogen growing support a innovative confident North side a along in transport our part hydrogen and supply investors to dispensing trucks and as zero which supporting assume out other hydrant partners. series Not laid are in targets for capable SR. before. complimenting in SR commercial with adoption many of of done We made Asia, more often together into of solid our large Craig that production and our Earlier geographies, is of of depots our are is on emissions fuel through Hyzon. fleets both well And these working we detail Australia, As back this Hyzon to electric decarbonize only ensure out build-out expand talk for a through we early at scale Europe with possible. established large continue pace forms many has equation, supply ITOCHU that stage, from facilities methane challenges require wave significant user at is growth companies. just we our being to and might on In commercial spent converting Raven municipal financing strategic agreements been to conviction road. of from emission and of Hyzon out, The now vehicles. Hyzon’s cell a to topic. time, and of four has support more partners vehicles infrastructure looking efficient morning as build provide supply electric has you investment Raven as time or Recently, committed seamless sustainable strides the than free supporting to some on technology the build modest to business different this a conclusion year, of of with would this downstream Hyzon reinforce the fuel and deployed each ever to particular, Chevron, To dispensing working this model. more the or the to to than partnership renewable same cell meeting America, guidance hydrogen production as well decentralized build-out and ecosystem experience base and transition frame a hear infrastructure structures you of has required is able Raven’s to key the At infrastructure global will is of significant made strides many the through institute and feedstocks, hubs,

and is is these in thereafter. slated online second The Francisco first area of waste-to-hydrogen of be to San operational sort the Bay XX-months second of hubs the in XXXX, come hub and waste-to-hydrogen the just to set

first Gas to Raven hydrogen hubs Blue, hub and are more. when to XX-months five to inciting it or in Blue of also Raven is six citing complete. and the be Natural brought pounds come day between These And Additionally, produce waste-to-hydrogen permitting Renewable per can expected now RNG market or in XXXX. and hydrogen online can hubs

cell We expand assuming and in TransCanada. to working coming in with one very fuel vehicles and for of week to we as well trucks, scale-up. feedstock delivery we and hub of fuel this side collaboration, up To presents. formerly with deep earlier took announced electric across you partnership approximately to XX lend support think about are we the progress years. articulated hub hydrogen connection excited at vehicles on sales operate SR our that extremely discuss North hubs will be we As with per own this is day XXX XXX hydrogen is expertise three targeting XX ambitious have company who We have just frame the plan opportunity to is just our class the per and projections were excited tons soon value over the at beyond A is day. XX,XXX each goals made useful as we with utilization. to required of to supply hydrogen facilities In infrastructure to the initial hydrogen Together, production trucks average XXXX, those technical production Raven of in TC new high forward XXXX. at single to a build Energy, moment, with it hydrogen Hyzon a commercial what merger, sold expected to America,

Class-X and the more hydrogen heavy and average duty, vans. vehicles, duty of hydrogen those vehicles tons bus just which In trucks use fact the require XX,XXX and would XX,XXX in fuels operate. medium of and to the cases, X,XXX of categories, roughly HYZON on per required day forecasted Based XXX trucks buses

long to per Now, metric. is obviously, day Class-X real time give it fairly widely but type EVs truck based across the on the from XX haul actual data or kilograms differ consumption versus that quarter vehicle heavy cell usage, on also average us needs will a roughly per consumption versus on duty road today portfolio, the And fuel have we information. Class-X,

aside in To and hydrogen with others Set America, to that look market carbon honest, XXX of HYZON supply meet role XXXX. one marketplace. an North supply expect case it us of all Energy, a does expect Raven see externally to in supply is what The our to happening partnerships buildup XX,XXX party let’s strategy to very Europe, able the more which is vehicles. So not Australia instrumental third volume hydrogen day tons at of of for much. sufficient now. the be Instead, quarters, TC stated the in announce telling need Asia, than to we believe would our hydrogen zero many our just to moment, customers. coming through to our hydrogen It play and be to per we in support is providing

remarkable Mitsubishi’s publicly power’s finance conclusion construction underway signaling is hydrogen $X.X Asia, startups in green largest XX beyond The for that XXX the public of industry these plans projects. is underway hydrogen hydrogen interests by mobilization Air megawatt tons plant Heartland pre moved to in and hydrogen modern hydrogen now Dakota. XX plans sampling of hydrogen scale-up representative from currently the the networks with of plan Australia to are technology most sophisticated capitalized produce in phase. shows Many of world’s plant context hydrogen its Louisiana, the construction billion day From Arabia to provinces from today the well North of plug the and in to being a and develop Canada though and a in Saudi supply or product driven companies build blue billion by include thousand stated the Germany. and continental producer hydrogen U.S. already nearly XXXX electrolyzer straightforward. supply plans and has Europe, out platforms Just global industrial now growth coast, - underway $X to tons green China, in a is deliver tons already million XXXX, supply the to very plan with estimates produced China and This tons in XXXX. intention, per

public dedicated that low energy Craig billion additional just billion $X $XX bipartisan clean was to renewable passed Here for to demand provide back tax and And pass deploy green entrance our as day coasters waiting as Yet, In other hydrogen, formulations in buses stocks rebuilding in power supply out we do back allow $X rapidly play the intensity the hydrogen to to it sign infrastructure announced XXXX available zero in grid has later an be The have days. for investment acceleration largest emissions further the federal with negative the cell helping electric our fuel hydrogen accelerate to $XXX solutions and hydrogen, trucks, hubs, clear billion I not globally, to next intention significant that few as we zero we energy much aggressive pleased meet just the with essential won’t even markets more of as we better build and can conversion cost sooner a stocks We seeing. billion to in are the vehicles Congress Biden with or well of to market vehicle the introductory game results the customers, underway. U.S. even OECD payer and expected infrastructure partnerships we ever plan incentives and the we build transition commercial mentioned, be is is feed or markets to represent believe credits summary, EV and hydrogen of intersection buttons where ourselves need simultaneous investment green opportunity that we just on to to green energy clean supply the than President merger for not online are support If bill technology. and hydrogen hydrogen with the intend in headed precise broadening in mentioned decisions. of operate. are carbon like-minded fleets. multiple the vehicles where our dates specific sniggered XXXX hydrogen would enable feed hydrogen. in large clean our within a with further. policy even be our been developing relationships clean in proprietary we for the the the of already seeing more up part down infrastructure fuel in clean to We our and diesel since architecture with bottoms could and the and we broad top-down active companies Many products a are the industrial all economies, the we galvanized

Gordon. Now, the to the would hand like over call CFO, Mark I Hyzon’s

Mark Gordon

continues Hyzon expense third dollar the as an Thanks, company million to with eye thanks with finished sheet, every to quarter XXX everyone And the its making the count. prudently from again on balance call. manage Parker. to cash in

meet $XX.X $XX.X were Within costs. SG&A, which to $XX.X and costs executives deal positive relating chargers equity were related $XX.X to comprised million $X.X expenses senior income operating expenses. for the million Total one the of grants million. EBITDA of retirement $X former our and foundational were of SG&A of nature reported revenues mainly essentially expenses time Operating quarter, and totaling million, quarter million million. CTO for R&D and expense third a changes also of earn-out was was third backing related in liabilities. were the of third and the the net of to For to warrant Adjusted negative items million $XX.X the one-time the Hyzon due million $XX.X earn-out EBITDA private quarter value out to XXXX placement original in to value We after our than year one-time private on the warrant fair fair our year and for placement other full cash and forecasted plan liabilities balance plan. charges. on more to XX and the sheet to track remains Hyzon by our reiterate vehicles have ship EBITDA end.

to energy medium about become has crisis, globally. is to the our direct longer-term, begun the optimistic we consequence over Looking more unfold of outlook. This have margin a which

Lebanon command which price up technology needed leading total set commodity energy prices shown cost outside oil selling margins. innovating actually gas as and electric worse. the change fuel battery shown has coal grid electricity Blackouts from are needs potential They e-axles, batteries situation is prices transition create will common of price of not Craig turn with widespread with only tax the North hydrogen already the and more is battery with to produce The to consumer. electric natural prices Hyzon call record which the trend with to high ownership becoming And add and will the are not by cause to on for to will higher partners becomes a vehicles cells competitive become The A concerns the to of tax. I electricity widespread globally. leading the with has will are solution, our of of the more exacerbate of up As hydrogen current other for The prices local crisis. to it electricity America, the regressive of answer a security lack for of price the U.S. in this in highs. cells. to are increases the is commodity drive and crisis dependent. our A A a HYZON European that, gas off higher. and company, be coal of before only has also are countries hydrogen the while would regressive the natural problem. adoption caused and like fuel rollout driven help back investment avoiding energy the grid now grid decade We vehicles components making to closing in the cell grid. widespread China in oil. energy California. a Widespread powertrain. vehicle are and to higher at of Fuel adoption Many remarks. we production have to records vehicles climate

Craig Knight

you, Thank Mark.

value HYZON vehicles, you continues strides our As pulls three all heard, service. fuel to across have make of and

today. trucks that delivered have We operating in Europe are

orders are that the on of We and Asia the by have fulfill year Europe. target in received we end to

are on supply are facility U.S. progress we We with partners making our hydrogen are building we out infrastructure and executing. In short, capabilities.

We laid ability to with out pivot we to the are where the executing needed. plan

aren’t make We challenges. excuses here for to

of to our commercial category leader thoughtful and stewards clear We emission are be money zero here in and become to the shareholders vehicles. careful

our Chief bring excited Operations, and quarter. HYZON, electric team Accounting deep would to attention up share operational events progress, zero of to while rising open addition fields Jiajia diesel like I’m before President The again as fuel the experience Officer, in the our Thank achieve in truck, for HYZON with questions. you corporate captured a In vision zero video we financial emissions well two Patrick to all and further with other and as that, call as time compromise. we both Wu of working the about cell to your truck, and engraining for at strengthen Griffin, of highlight respective Vehicle last important their hiring of I

Operator

question Melius Our from come from [Operator Rob Instructions] will Wertheimer first Research.

You may begin.

Rob Wertheimer

lot got going on. you And have everybody. thanks Hi a

trialing across you or but are don’t customers congratulations last talk about you with looking know product your months. are it been recent on of that mentioned in I the update Craig, to that several whatever this, how lot have still at much or So that. willing you the working

you potential that book So you Thank how track could sales that and the there do of on you willing but are on not the of of extent on number the number potential is wonder are maybe of working that with a the are developing? And process working to on expand business you. I you you backlog, the orders. entities funnel just

Craig Knight

Sure Rob, thanks are really the for prospecting Hyzon experience we a selling question. new complexity technology promoting the Motors of the of funnel kind sales any you with Obviously, a that with. typical prior most is added if had like that any with processes haven’t our customers experience

So of phases some out kind familiar sometimes talk definitely, tend accepting there through the we of process and of the kinds And fives a get batch why from will to compression how ones about twos drawn kind with three is or we is to are business these is develop those involved. of be these adoption. processes and though becoming the tens that and of serious seed kind it. of seeing before the we sales of and a sales timing of technology real scale and point What

this So decent getting earliest volumes. customers commitments initial seed while technology some sale to could to XX-months evaluate XX-months of sales confirmation through go to the from take a for to to

We have compress. seen that

increasing much are One there don’t drivers to real to I moving how is which compresses, governments the corporations is So and that address exactly with climate change. want there. speculate two urgency but

weeks. really a the increasing about and of the urgent meetings acceptance the is are in wake lot As a part of as of factor second two more becoming of we this. corporations have cop last solution. all announcements And the a through hydrogen Governments then in the seen

in a that sit hydrogen. about talking of So it why thing really we is no customers longer front

of today payload options very And their their that we back front and typically characteristics. customers, decarbonize daily Operators fleet uptimes, trucks they decided typically have sitting base already So to high already already and imperative, operating are are with And considered to to have activities. want have evaluated hydrogen. they how who in we talking

happens. which rate accelerates So all this that at the

the an pipeline journey process monitor go of try do there I it kind degree Now, chance and of education But we is next want rate of and our we can course, a business the to yet, two our tailwinds. of just kind And yes, scale of of a important still up to I which and mature think the because wouldn’t that is because a two comment implication is process success. in our and really the three we customers. is compressing degree I that those years. say maximize at with do on of But that overly for

Rob Wertheimer

And months or interesting is has Thank it there high recent higher? in That an is as activity level is as been response. you.

Craig Knight

is interest I them, of the all hydrogen increasing time. the the most the important can We call, a do a from Yes. is drive part growing thing. I participate and claim it and industry back as mentioned Higher, fleet we the weeks ride in continual of to operators huge were interest just the were we as events booth, analysts had said, we few there the in the to and truck fleet see we great that And is Netherlands at solution there. some event and the at in a fleet in interest acceptance had clean of act that expo us. And a

Rob Wertheimer

in just small one then And get one, I and Perfect. line. will back

of out XXXX, did and is You mentioned slipped? I Thank American slipped sort little some in that anything might advantage you. have will fell or of sort must Backlog slip but the wrong I of into anything a suppose some the North there nimbleness of demand, out and there? European, taken of you bit word. stop nor which be the rising out are backlog or of of China, the have guess shifted of I you

Craig Knight

definitely is factor. timing a The

we delayed reasons. but faith, lose customers seeing not are for We a different seeing deliveries few are some

some rollout had the is little scenarios have customer hydrogen a We delayed. where infrastructure

is there That factor. without delivering factor products, point of much electronic to vehicles. finished assemble the the therefore access not is the available. other is course, finished so the then on So platforms vehicle hydrogen one really being and vehicles and to And equipment

we deliveries from customer side, course from some to so the XXXX. delays some of make XXXX, expect we delays So now will of outside, the make in in some

fast with orders deliver liquid in valuable towards mentioned at the we pivot much we we deliveries, pace that a moving a China, is continue you crave, that experience real why more business and continue world and However, gain and our customer to that plan. and on-road with to making will market consistent able taking are interaction

Mark Gordon

out the just in the grow of backlog to be that fallen slipped, and that fourth we deliveries on the update the call. quarter have some continues are clear, market strongly fourth There And will nothing on has or to quarter backlog.

Rob Wertheimer

you. Thank

Operator

Thank you.

line Revich next comes from Goldman Our Jerry question of from Sachs. a

You may begin.

Jerry Revich

the good just pretty Hi, Yes. what with provide out but ship that on, video through Can I we planning month-by-month quarter up. to folks the considering everyone. in are won has we XX are obviously, don’t units. units who is obviously XX What updates, about step apologize. comfort is left think date I is you to help expect progress fourth know folks talk the the quarter, Craig. because of deliver halfway build those a quarter, to significant been My us to not I who race, that but that morning

Mark Gordon

to and point weeks some going photographs the So to on next is few in people have see. with that an for Jerry, are videos we update

make we you these to for that So track on are will just now, we forecasts. tell

Craig Knight

few will videos field be that weeks, And clearly. of very of convey that and And implies point deliveries the Mark’s a and that some approaching in photos in Jerry, next and tested. to obviously that able quite being we show finished are are there couple that vehicles

Jerry Revich

sequential seasonally can quarter it fourth build you in first think quarter, And talk in coming we your about down plan production should beyond the China. folks about the

the looks out cadence particular. of lumpiness to the like a over for in terms in couple deliveries of flush trying next quarters, in the given Just what in that us

Mark Gordon

to be expect XXX We still XXX next a and the to it year to year we vehicles basis. delivered expect through on quarterly grow

Jerry Revich

sequentially production So fourth we you be are Mark, sure are XXXX. XXXX up same of quarter on just quarter page, make to first the versus to of anticipating

Mark Gordon

Correct.

Jerry Revich

is seeing are course of the increasing in the the folks can rate and and Okay orders seeing that terms sounds some that you specifications you types can It seeing on product interest described you the on interest. over you are talk coming you heavy about of of in are you call, orders you what what give described, in? but it at that range like products based terms what just of of color the are maybe, more end are us your

Craig Knight

see that, Jerry. acceptance other potential hours an heavier that There I just of trucks have with customers. - heavy Definitely technology many don’t a option take broad that besides the try People to from used kind duty the that hydrogen. enthusiastic isn’t really for have I automatically driven and trucks this response Yes. any can day. the is a customers started

So me, we customers very for of truck to heavy speak a naturally receptive have our kind audience about offerings.

becoming and of becoming And also lot will a quite significant plan, few in promise And is we light feature medium for reason Class-X, is couple that, trucks driver a supplying good got though, well a couple time. the and trucks a here, of it Jerry. over be we that next not our that have We of next within only of expect heavy say rigid there the of as do years. very have kind to a volume in a duty the years trucks

penetrate are door. and investment of the sponsoring are the trucks, have use we in fruit that demand these back the even justifying which is with kind daily economics high when we heavy right substantial very As to base, spot as markets, penetrate what infrastructure, you compelling hydrogen the case markets doing comes of sweet really next low-hanging we we

before Parker that all that economics than And humps, immediately heavy of hydrogen mile then was adjacency adjacency be demand very will hub. hydrogen because sudden a of new speaking on either set close application becoming driven whole the a local driving on compelling will that to for of centers hydrogen, the strong or around for those cheaper with the trucks, So driven hubs, electricity. vehicle translate and to on mile diesel

Jerry Revich

discussion. the I appreciate Thanks.

Craig Knight

you. Thank

Operator

of Our comes next Will from Morgan. J.P. from the question line Peterson

You may begin.

William Peterson

Good hi. Yes, question. morning the for thanks taking

more your also When on some the year? as First what recognition to next you you plans, the much your overcome on take supply the I year? you guys people in for that are well, some of constraints for XX, revenue are sort expected XXXX look And it or at mitigating confidence these need those like importantly, you of other like of you And trials. housekeeping. you just XX seems when guess pay said expectations your there earlier next delivery, than for any it are your gives relates supply bill vehicle still of that executing to are trend areas deliveries

Mark Gordon

You want me that to Craig? take

Craig Knight

Yes.

made expect in though by are the remarks a to will XX the absolutely everything we trucks, less, delivered point we those The that, reason on China being mentioned lot year out chain pivot in obviously are opening we able is constraints I What end. as do trucks, towards is China. his supply revenues because So this the to anticipate Craig is there. recognize

for But we So vehicles in are us the easier in the have as they past, are said ASP is what execute, China the there. substantially it to Europe. in is below

pig mostly backlog continues of European analogy which thankful, deliveries, sort have large like it caught us to or global really and whatever company. it pipe, to we thanks you grow, our and So but use, in got see and is to a confident the the are can being want is that vehicles the we python

Mark Gordon

look players. differentiation me Bill energy comparable not there expectations sector or and backs numbers let day the if of whether back partly new you versus look vehicle at recently I is want of to come might there the mean, the any on you others. groups forecasts at physical question And to

XX numbers, vehicles these If of in years. you We had look second, of margin we peer at of forecasts conservative and here expecting conservative at in number of forecast to companies. on were kind fourth we terms the most to few next the group look rank, most ship when

themselves volumes and the challenge little components a the access and as are to smaller not of probably much smaller So be parts so numbers. may a with physical this

on a anticipating back the what the would of happens first of Europe, XXXX the deploy enabled half around that ordered example. The vehicles our that year, thing of we the dozens middle we in for us second of to finally in that of lot inventory that hands, is were have in is have part which we

year. sudden next So all are the of of in these vehicles half a first delivered

is do was we didn’t for and time of get still assembly in backlog here ordered it actually have that that we facility coming deployment inventory in. would have So a as liked earlier but

months this lot we we normally it’ll cash before numbers substantial end a The will deliver but have some with XXXX effect would order did particularly recognize production actually vehicles a effect position we on is in orders. when and pulled revenue on ordered and inventories of back the ahead have of a Europe beneficial some you to thing that of Well detrimental the year, other ability on our the for them trigger XXXX. the worsening lead assemble in times,

William Peterson

of The vehicles to. prepared that Yes. service to going Thanks to say sense, when way fuel I the not mistaken you I’m customer, on you And are are means hydrogen interpreted to that think cell. or an not color. I you focus sell some remarks, for your I shift if looking and the fuel aviation and cell we

help for Can upside terms you economics more us this the through or look a and hydrogen, your what to some understand to more pivot? of this you go years? you of and focused in we of are capital on OpEx And fueling you expenditures - maybe TC. is to when think or is say that the are the no? understand, of And at want the just Raven when I see to coming and whatever over like you So infrastructure in would say hydrogen going analysis that are contributions

Craig Knight

focus, on of fuel for cells So two a a the cells to part been or around own our The brief capability question, always model and business otherwise. trains, is parts because it will off-road aircraft ships, we of make mining example, focus question for been comment core first our part that applications, I but on just the of supply technology. whatever. It core that fuel hasn’t

So the will money highlight. in into other fuel that teams of continued and execution we sell road trucks. applications terms that and invest around on focus cells we have build have to vehicle always on the capabilities, applications our acknowledged and and that is where But resources really we our we besides

sell want not is investing we it facilities the not definitely we in as it the like fuel that sales, we about we about and speak but where been speaking out building So is capabilities. teams have are

don’t and applications. heavy course, is sales more and we one of applications sell in continue to heavily to ability invest that technology, that goes beyond vehicle back to tracking in the thing. So core we invest fuel core the Because the but itself, our technology

for the business those I partnering are hand for is comment for we that the to So, of are and likely just you, Parker strategy investments in and the I to over hub we Hyzon make company. the assuming terms see on to what reasonably value investments will hydrogen likely some the model that to to expect bring

Parker Meeks

for so the Craig. Thanks much question. Thanks

elaborated half XXXX hubs we more our as behind have online in lined first So, in up the and second of do two that. hub we commentary, coming

stocks, onsite dispensing. dispensing the through from to very points, hubs production, not and Bill, the of terms feed decentralized are In building if ecosystem distribution our near full model across through partnerships we short from haul

we the And to Raven, where mentioned with is model very lock You have each that know announced partnership of significant in the we attractive and in a waste-to-hydrogen cost are examples for the first equity methane have the we production before, and Hyzon the invest invest right of amount in a hubs. structure. as to step to to hubs, XXX right a hub of XXX renewable XXX

go subsidy like credits sitting New where well. conservatively it. California, states production these very terms in $X fuel carbon that easily Francisco Bay you release opportunity, - which zero economics, and final you actually negative is, the are that that where can know what to When carbon intensity, as negative significantly go processes York biomass, and the and are gases. like Oregon a even you intensity, have progressing and behind on has a is in some California low be hydrogen subsidy has place, you as intensity right a very Washington’s where subsidy mitigating per San Other online to can are renewable low today, as Negative like stages carbon well, of state In one further. tuning the I carbon carbon sources I you grows hub, coming achieve a negative intensity by of the designing other zero when kilogram first in the are fine area, tell your of in can we methane

parody And below of hydrogen while with So really the efficiency right. speed and be were providing is still at cost diesel very a many in will the like combined partners us or economic comfortable and that very first Raven market, process the soon enabled opportunity the to as subsidy job in attractive dispense CapEx the model have online. our to decentralized production that other economics, vehicles comes a have net very of as

projects, risks studied knows of big million, there. strategy you I XXX at Not of about build I or fleets timeframe significant out think XX-month to comes large in capital when XXX the inciting to schedule, billion projects capital scale announcements those the can ton The dollar or So are project. differentiation you time between construction five capital and mentioned million playing that hundreds projects a housing, millions that a with less of that some right for lockstep whereas in to our hub mentioned likely whom close a the day massive come pre of capital. scale climb XXth that to that costs Anyone a on of scale we with before. before. on some we post the per six of are build dollars hydrogen production into and can fleets, of these permitting, many saying of on in has who the is of close of put time Many demand

based the And was being back speed with to our side hub online. we are fits market model. this first model required to our So to

XXXX show have carbon a we produce to you low truck. So to intensity diesel negative can hydrogen will

Craig Knight

we four five-year add to just said, will hubs. in $XXX of million have it. is for Parker I So CapEx slated hydrogen plan, which our

We debt have finance the actually banks the interest of to been appetite hubs and is low. very number in these different conversations with extreme a rates and

financing that are for as in hubs, that that lot out I’m Blue want type first of the are And we people this I work and be So and the that of couple them Parker’s vehicle, in debt Raven you happen ability come off excited about we make is to to he plan online SPV then sure a sheet, in cited point out who will also green invest about to year. infrastructure. talked aware remarks, balance

actually So that another is hub.

I go would will for it exactly and are of there point that is where it. But can XXX the of CapEx per hydrogen of of determined to low, we blues the for those because five is what competing sort Raven haven’t is that We and a day, it the very that right tons produce very, sites and number out each different is have the Raven hubs. blue,

is that next about, So, we that not is effectively and quarter coming are anticipate another online last we hub new, the year. talking which in at

William Peterson

in - for tails that. somewhat dove kind are Thanks of U.S. based these It Okay. hydrogen.

back, the at what year? port for trying U.S. really you I of of especially guess, these that of of understand the maybe some going still the and of U.S. And to based some I on to short next sort one ramifications these the around from maybe seems like you China. Europe some holding seeing you your I’m constraints is say one into shipping any XXXX reasonable. supplies is making to are let’s for and of constraints my from understand, up That truly supply question are it But supply being I have it or ship or statements? concerns off in demand trucks you guess slowdowns the have some really customers, So in of reports. have maybe first I’m California, some think or the trial constraints of that in to is is supposed Europe or U.S. were just supply trying that sort track is getting

Craig Knight

has happened The quarter everybody and knows terms nothing It first this California. in of And fast is well. start quite in chains as would year like we XXXX. of been definitely will supply still as very in a trial course

sometimes to relates changed a there delays of materials you of against they a I things is don’t doing. end of said as no supply in backlog reduction is in of have chain capacity be that those really It backlog meaningful some are on license some to own and increase slowdown continuing built, customers. some It commitment have capacity the believe we or just have has earlier, interest we it earlier Mark So we buy but that as but mixture to lead also which is that yes, and also, to the just slipped, from said rest the what the that their it. parts time. infrastructure any time little, bypass interest in I user and materials, the some to over any slippage because passive issues. and and factors some deliver The evaporated. factors a commitment And all around don’t see in around timeframe of what

in by conversations the are North inspired current the We very AsiaPac. we of definitely Europe round are in having and with customers in America,

Mark Gordon

whole basically mentioned in has that short reception have coming changed and report weeks and three our anticipate not weeks the the but time, a over host agreements You specifically partnerships wasted of we sales and it months. the And we announced management’s a marketplace.

William Peterson

That will is jump guys. back. you I great. thank

Operator

the from line of comes Wedbush. question Dan next from Ives Our

You begin. may

Daniel Ives

Thanks.

two marker is have road? about like in there in terms PowerPoint. patterns key that China, how that on driving the Obviously you talk line with So, truck that Craig, to in demand. in conversations it is it an can about ion actual you about big group conversations product just talk - your with the the just how customers talk Could your

Craig Knight

and the the other and folks on this turn we drive when and around question stuff don’t they a perception get the their of of some truck? in cell Why yourself, changes how fuel ask line,

Daniel Ives

I think maybe hard to. that -

Craig Knight

cell the and into also some the truck, electric for what we earlier walking drives had over to week Netherlands trucks, replace goes visiting our But and that from the et And UK the driving personal XX facility Netherlands is folks continually experience in around example. this in of see throughout physically cetera. customers host seeing we you one why for of work, a them these fuel some reasons cannot the

us So come and some a hydrogen visit fleet the from lot of we infrastructure have operators partners UK. major had

said, I is you week and of saw just vehicles the As reaction yourself, the is Dan, professional drivers for very this reaction these in it consistent. And too.

acceleration trucks of mean these any kind and with that doesn’t There is is kind is it mean a You therefore just is all of It is coaching quiet, they basically rest in trucks vibrate, it smell. better in can of professional the lived any it. that out feels driver got say into hands quiet, frankly. comfortable, and any it one like your more vehicle or nothing training. on traffic They more doesn’t getting I get more it without and put powerful and diesel I safe of merging

in different the So determined that be the because so many is will we of reasons uptake. the is why it mover it one do are first dramatically markets, to what will facilitate

talking emission those and and sales remain seed is can world it We trials on these get different why is and started then that corners important. So the to of really substituting about trucks fleets in diesel that the the diesel move we trucks volume. accelerate zero with is can really don’t the trucks at zero but come emission with that really goal trucks to is here, at And which replaced be rate compromisers. goal

Daniel Ives

that see that now end mean you do year, you them, want it to go be I a do from end? - to back you that conversations, where deliver to conversation delivered like, just you follow-up, track XX, by need to is have a are your positive we XX and does it to is customers cascading need the and As that on going you like of to be going perspective feel another the

Craig Knight

markets the Well Dan, localized. quite are

customers it in of see and great We interested China America putting that in driving saying trucks are a starting come to people that to and in demonstrating when or in Europe, the from it own going expo want because China, customers experience the quite there more believe clean on see demonstrating working for learn have next Atlantic. down September to a they the some in find is in is So to starting it, Australia was how Europe. The and we customers when been there and operating around lot the example, for they customers see relate translating of together also hydrogen see someone localized. other get and act North in they feel is. their trucks early and the is a road us in truck in to fleet and a now easily are and what state. that and don’t them great to want don’t to for down see in stuff with backyard, the the want trust. People We it across We Europe to translation truck it the in helps it relate the people,

Daniel Ives

thanks. Great,

Operator

line Our from next question D.A. from of Mike comes Shlisky Davidson.

open. is line Your

Michael Shlisky

hubs own going off-take get that correctly, might fleet quickly work you the where your between to you yours. the of this Good their there be to there make all Yes. Just deal have deal sell TC But, take to going is keep they might are the maybe competitors the that of I them thinking read hydrogen will to TC with hydrogen or to with TC is? close there too to to anything wanted infrastructure because Are I’m on going hub one the the to just guys. also and but to to to want and own off if Energy I be plans how grid? some own. closer, morning. guys smaller your Hey working that competitors have has your things ask different you we hubs are you minimum. is build, transportation when about plan announcement, should curious of to with the they are and on deal your Energy customers also maybe a costs any shared that then And

Mark Gordon

Craig one? that can take you

Craig Knight

one distribution but be but we by obviously will inevitably fuel, And need to going interconnections needed. a relationships be second, Parker able increasingly I’m hand local lot fuel. and feel that it common is and a supply need we all way in not to swap yet over supply stuff a and of background, to common of and everywhere hydrogen and sort you to is in of it deals,

while does hydrogen there models there non-exclusive to a hand where doesn’t of are is sense, makes very for I some other that is just want over there hydrogen easily, fuel will just the But no no work absolutely is I doing. say are infrastructure our to in hydrogen hygiene if go around that in reason as what rationale why some fuel. with supply it else, way well as So differences of why that leveraging infrastructure doesn’t travel some it we proponents specific Parker, efforts anything about and because that reason

Parker Meeks

Yes. question. Thanks the thanks and for Craig Mike

strategy with you scale, comments hubs. the say other will parties, TC large-scale announcement, other versus your but the difference what about in will here see on projects is I I our question to between So the make on you are referencing

that dispensing. can our $X easily to efficient about talking end this in yet we hydrogen are to other it delivered lowest close fuels you and even as our and the more, is where not vehicle, not costs liquefy a which We have it pressurized large and that We moving the to cost it projects into you to see from kilo get with on is more even dispensing it find large when production very stays of actually moving a long possible. $X same distance. view, the thinking scale think today, conservatively scale may provide approach long a very, the ship if the liquefaction before production add if lowest to a about. TCO, And given in the fuel will which very the over producing parity distances, point, the of is, liquefiers hydrant challenging most hubs is may you our at As be very start scales into mentioned not. costs, get to which a view distribution kilogram, around, you or a than about to our intensity fleet my I site, fleet needs diesel diesel it at carbon to when commentary, a clear issue And to

million and on about project but CapEx of of goes cost with schedule, my risks can’t through career a the fits design RNG their and a use to that with other and go construction capital nicely We assets, us and hydrogen TC. chain $XXX Along that has collaboration the mentioned the to going envision Particularly long to about So of that I just could feedstock excited been low a of single before you how when any significantly. into production to we in are our trends, drive supplies success very other of up large that bill distribution very are manage. with the and part model cause and appetite carbon assets and partnership think negative supply their their location, TCO backbone include and with pipelines to case projects market talking and the needs work. over the transportation was of then large have or make project use interconnects

the And actually day. know helps is, reasons, and and last get point cost are for So and the total tens then realize waste best And only the to is again, build We they is actually that talked feedstocks. and it as also then delivered per of for that say of in ability local for the and with cost your terms is? their right cost to and decentralized smaller lots And thing absolutely to about see leverage we the of model TCO approach both scale answer and we trucks, it into many operation what is we customers, also will amazing I their about operation, conversation how can is of starts that modular you. use vehicle we what producing That fuel. you we sustainability can that here of customers saves waste which for can tons plus not waste your also fuel therein story. say, exciting

answers So hope this Mike. question the

Craig Knight

some who Total around of was trying announcement between None well. also other Total. a create as Obviously, with with on an just exclusive, [Dimer] oxygen partners when we working kind and increasing point, (Ph) recently of are this our it here. Mike groups collaboration, market by listing. we to other because of announcements have are just relationships is Clearly, supply all approved

trying should I see this say, that this point, at build want We to towards this to transitions - is only are we fund energy we and tipping that grow will it scale momentum, happen.

throwing I I our goal, at or guys announcement I’m the far doing production of know happier the our direct any competitors read competitors the concerned, these end of right The as are I So the more projects, every as am. we of place. same more or capital one of partners one hydrogen more about in

investing our on will right energy are We these and that things, we happen. the make

will change. there are be able but to direction, It to the same rope enough make if the people it a very same energy big in lot transition people pulling a We it on is facilitate this happen. takes of

years zero concerted successful operating this to unwind of fuel vehicle infrastructure, of are companies not shift. on As a big we fleets requires hydrogen This in companies very very, I have successful XX-years, of say I to hundred effort to successful company. cell hundreds one of successful like hundreds emissions. mean, pick, incumbency a got with it trying that we technologies, with companies with requires requires by hundreds

Michael Shlisky

it. (Ph), have need quarter Got want also that other that next the Link] other have plan? year. to the ask, us are here. are are the Thanks where announced. folks Shanghai the plan if or are have the there to those in in like have delivered other, Can already a going tell customers for [Korea tell may two be announced to you you us that quarter, help three plans been vehicles you or to us order fill are about from Do you APV additional an Can vehicles fully I color. the that Can build fourth got the characterize ask HongYun in for for I you what

Craig Knight

revenue with events some going to are happen Yes recognition there partnerships are announced. of we that the have some

plan remembered and on retailer liked probably occur will would that quarter, in year. of some are which spoken some Mike. kind hands definitely ways have end move quite happen. If but But customers releases next European of year of our some in fourth didn’t European some the industrial press have as have European trucks look Things it into have by and you but about, their other some back of we customers those through this didn’t you to of some probably going to some would

or there are expected more Asia as well. just orders really So in

Mark Gordon

do answer that we and the you another need forecast, is do not no, another we to order. order to the But make asked sales need

Craig Knight

Disturbance] [Audio

Mark Gordon

now We that. have the It of orders. matter a We with no is is execution. make issue to just need There forecasts. the

Craig Knight

Yes.

Sorry, Yes. Mike. about all is It deliveries.

Michael Shlisky

I thank Perfect. it you. along guys, you. Got will pass

Craig Knight

Mike. you Thank

Operator

next from question Fox our And Fox comes Advisory. line Steven from of

may begin. You

Steven Fox

quickly being Hi, that some have it sort now trucks, what could, Two to margins? what you infrastructure also orders you, across generate if know, just of the maybe goal to production. think side inspire run companies a the of you do timeline now and and turn at Craig, a can just hub Thanks. funds Can are into mentioned, and getting guys for And good parts you give a that? would you the, three, two sense having all, is what of one the do questions, specialized the I us timeline would could you then morning. you where XX% then bill. back as follow-up, of the does of for the be one XX%, from for investigate these first rough to revenues reasonable that and it

Craig Knight

question. Excellent

looking news in first corporations by build and fleet of stuff now is to zero good but one if some only have at they that are knew, already happen, or major Steven to conversations the operators make the emissions of infrastructure to Obviously, we the been of some So I enabled could how terms go accelerated quickly interesting big that option very hydrogen. the initiatives. some

square very conversations to underway start naturally. interesting with need from we don’t those are already conversations one, So some there

would and happening. fancy a that checking orders delivery out anticipate mean of course. thing harder hydrogen How So hope. little conversations lots one on we quickly into to really already are of ground, is of hydrogen, is lots I an that accelerator and it big the of that does that hubs is materialize But

Mark Gordon

Craig one and soon Raven waste-to-hydrogen expect say to running. that thing going though, just hub was we is the I first as up as

and running, debt As up we large amounts to soon to finance. raise as be the of was first expect Raven able blue

will accelerate point events will be That like of year. we be quickly next and those think after sort that So, an will inflection soon we late happen. as

Craig Knight

comment risk And for the service quickly zero lot low option on attractive in if operators, how we to instance, the to on like. mobility important necessarily vehicle fuel to but a is of offering of kind one, future for end that the you but need This combined pay The monthly the of don’t ability the vehicle, and about can they top note as flexibility customers. locked of can day some well, a of of with of by basis kind offer very the to they make fleet Steven, price. the with subscribe of the a of happen long-term a Hyzon Mark’s on Obviously, emission XXXX. service, as towards

the the you, will So you operator. do big model now, price five-years know what anybody the I your years sit as in But can of we from you to for down tell and price you three project tell will who what to a will are five if can I three now. of hydrogen be we don’t from electricity fleet be

people are So I this some a buy-in And Then from we rapid for is we as earn got first. that will of just see the we happening. first that lot that able and said, to probably running physically of Raven market attractive that feel half confidence something uptake do as have believe I the believe in XXXX. hubs these I operators. Mark get very is fleet soon the as when from

Parker Meeks

price a what think it hydrogen is will electricity the right a looks and just hydrant as the electricity lot years oil and will be out at the which be it, the was looking price couple price couple said, what way of of to and I likely Craig, years we the add lower a out, you higher price most will now.

and economics economics our improving competitors, is So but hydrating the are getting our competitors worse. for competitors other not vehicle

Craig Knight

in probably if typical, content. to XX% content you And cost content, think the the we of Hyzon would much of BOM today, a operate I in of Hyzon which it is like, how so the vehicle? say to related vehicle Hyzon the question XX% So fair that to It second is range. kind a

specialized vehicle, we and Mark. looking third require parts windows obviously have are that and like and and towards commoditized and wheels sourced And XX% are and up are on. vehicles means usually parties. the brakes parts so of lot that essentially that parts and These manufacturing of up commodity the to set of from are a you capital to for those about, that from the components just the also We a chaises It that getting lot happens at be those. kind of the those replacing the doors of spoken

of getting burdensome the in these as components the electric front people on capital into So and supply vehicles not fact, within as specialized think. the cell might production is fuel more

attractive billions fuel don’t capital able in very entry, large to business to And we higher content with we capital is get out has just dollars believe efficiency. to to cell modest this which like why can manufacturing, we model a vehicle a of commitment that this a build and to technology-wise, we the build build that need company. able barrier we and are with out So are very

we capital the the got happy have on believe hand get Hyzon up working with that are of XX over percent the moment, this the next We to means course we can we odd content very at we for back that to question believe And two for is than portion years. of that is what vehicle larger average that better margin sustained your three a vehicles. or it margins and the

that parts margin the barrier entry the in a you to a enjoy anything to well, doing large obviously vehicle, is of is better are vehicle. more are commoditized going So the as got differentiated than

towards and if are of are are majority sustained for for the see than you think enjoying the vehicle, average margin space. vehicle, margins the the can average better are I than when in that a commodity margins So vehicle, margins a parts we planning our vehicle substantially we doing the the non-differentiated vehicle whole the than lower for higher overall whole

Mark Gordon

I And to this on sort something margin highlight point. of want

our long-term EBITDA have conservative in we I a think we is that a margin relatively XXXX. forecast. at mean XX.X% forecast, look you If

a lowest went vehicles look we have whole new at energy the you proprietary XX the If other fourth stocks that have actually of there. we technology. forecast And margin bunch public, out

we basis. So conservative Craig you as is we higher have there. proprietary way not margin think on do, you out, but to a we pointed that our we relative modeled how and a the recognizing forecast upsided in is has the a forecast have technology, market When should have

Steven Fox

very Thank helpful. you. is That

Craig Gordon

in an trying I’m an easy outsize to car own very challenging. margin business is

have took earn If are the hard to designer degree look in their a enables the unless just it batteries, get every you buying up very vehicle them you get to but outside well really unless motors there, how and of seen electric platform. from vehicle. years them That a part enjoy outside and of It years differentiated is margins, you that you but of are competitive difficult buying and have from pretty you to an years kind through have through they margins the great integration. everything differentiated build is technology. integrated you can to to advantage Europe, of almost And internal nice got margin, batteries, a Tesla, are

Steven Fox

Makes me. Thank you. sense to

Craig Gordon

Thanks Steven.

Operator

the to like speakers showing further queue. I not to any back call I’m in turn the And you. over any Thank remarks. questions for would closing

Mark Gordon

questions forward to attention your appreciate coming We on over taking much. very one-on-one weeks. the we basis and a look you Thank

always Thank talk are available to open you. and We people. to

Craig Knight

time. appreciate Thank you We very much, your everybody.

Operator

This does conference for our conclude call Thank today. participating. you for

disconnect. now may You

Hyzon Motors (HYZN) 12 Nov 212021 Q3 Earnings call transcript