Earnings call transcript Q2 2023

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good morning, and welcome to the Hyzon Motors Second Quarter 2023 Earnings Conference Call. Please note, that this call is being recorded. [Operator Instructions]

I would now like to turn today's call over to Henry Kwon, Head of Investor Relations. Please go ahead.

Henry Kwon

good and operator, you, morning everyone. Thank Hyzon to Motors QX call. earnings XXXX Welcome Wu, Officer. me are Chief Bappa Jiajia today the Operating Chief Meeks, and With call Officer, Parker on Chief Executive Officer; Interim Financial Banerjee,

morning. The press financial company's Relations can our Today's release website Investor with found the of accompanying found The today's discussions distributed on measures at call. results be issued section release reconciled was detailing this include end the references to presentation are and to can U.S. comparable today. measures QX be non-GAAP the the GAAP the we of earnings measures. most release slides These press

morning's This Page today's actual earnings differ at forward-looking are differ include may materially of our about from the the statements the on also those end our explained presentation. results future to in of factors statements forward-looking cause plans discussions stated statements press expectations. could results also and and earnings Actual and X release forward-looking that

of which Forward-looking only date they statements as are made. speak the on

are reliance not forward-looking statements. You put on to undue cautioned

I will chat Automotive I with On like August update analyst market Peterson provide an a.m. New a doing IR would an JPMorgan week Thursday, over call, upcoming Before to on York. event XX:XX at Eastern. XX, just at this the the fireside be turn in Bill Conference

With that, I will hand the Parker. discussion over to

Parker Meeks

time our call join taking today. to everyone, morning, the you thank Good for and

in both of energy as the in and fuel date, transition electric commercialization our Hyzon remains quickly developing clean by have I'm steadfast of in technology possible. fuel excited truck of of we advancement heavy-duty significant made by global to its our and XXX-kilowatt the as zero-emission the mission the commercializing cell our strides platforms. accelerate to fuels technology

to our our commercialization vehicle operations focus EV As QX fuel at fuel asset truck streamlining platforms. model. Today, progressing has geographies work call, toward light of our are hard we cell assembly and to offerings, commercialization this our vehicle earnings I Hyzon support been on mentioned cell

the platform developed cab-over Australia. The the and rigid platform U.S., in Europe conventional the in in developed platform developed

our on are progress commercial to platforms grateful the We quarter. customers over continued past for these

significant XXXX. against to under XX of deployed in commercial We our previous progress agreements XX have made guidance vehicles

QX had in of and an vehicles additional have date. a total under vehicles to As vehicles X X to we deployed agreements already XXXX, commercial and for X XXXX three end between XX July of customers August deployed

coach Australia Of steps. final depleting customer site three currently seven of deployed buses to process a Europe, the vehicles, those acceptance deployed and customers in were to in while are were in

against in We also collected in those $X.X have receipts cash commercially XXXX. million year-to-date vehicles deployed

customers' and install already our our being We delivered upper and end to risks. are including guidance increasingly range, end potential of although of range fueling guidance supply to and about risks our ongoing pleased to remains to have on-site commission meet are bottom previous the the chain met the permit, prior confident ability vehicles

the collaboratively commercial a tailoring in in allotment balance first deployed QX agreement. trucks large frame delivery discussed on particularly framework customers call, focused sharing, Hyzon are to each that in we we As the to post-trial structure commercial each working region, multiyear earnings our of under with fleet risk and year

we provide variations. on orders, structures sales year contracts commercial or unpaid of transparency provisions, cash-generating vary To all in commercial as with refer and direct those deployments successful sales, trials buyback between others. we will commercial paid commercial as first collaborative line sales conditional trials, forward, to These trials, trials move

sharing of vehicle cash revenue vary received along arrangements. on the supply year the on and of will with focus recognition also nature risk as depending timing will that nature revenue equally We recognition the first

in largest food North in with America. Food one potential distribution companies Performance agreement we Group tranches has up agreement are of commercial food into vehicles. a to or the PFG, XX all U.S., for executed, Diving If a and the options regions service specific this announced and

powered XXX-kilowatt delivered system X be by First track five Hysan's fuel trucks Class cell are year-end. on by still to

North in our through development our fleet progress continued to has and trial potential focused America also Our expand pipeline. program customers

now As trials with since we recently in completed updated, XXXX XXXX. we completed America seven of have March XX North in

maturing with range We in deployments have as a driving platform trial accumulated of we cell even cases from track our learnings platform further our into across use on and over conventional truck testing, fleet EV broad XX,XXX operations miles and and customer us experience real-world operators, move production. future fuel important

cab-over activating in our trial Germany first XXX-kilowatt discussed deployed with we commercial orbit Europe call, full recently our Austria. As agreements and under Hylane and relationships JuVe QX vehicles our commercial into in earnings start to in

in we the next-generation In EV additional QX, transition a Europe these commercial part another deploying half XXX-kilowatt commercial total trials and Hyzon for of second XXXX as up one three toward of trials we cell EVs of end QX, and in fuel anticipate to fuel as cab-over. deployed FCEVs European vehicle cell we six at

Additionally, cell accumulated customer deployed EVs total February customer and testing vehicle internal and testing miles new over XX,XXX track our operations our XXXX, in a fleet. expanding cab-over since the fuel have of experience across

from Shifting focus. our core our cell progress fuel to vehicle technology

Illinois, in on Bolingbrook, fuel and facility prototype XXXX. into We production our is proud of of progress in in SOP remains cell our production well have are start cell the U.S. for we which system XXX-kilowatt advancing fuel or today of made track production already system

additional X half the achievement XX prototype units as to and company's assembly B-samp. system growth announced mentioned we cell completion XX in in to I fuel spoke, the to produce symbol I'm on units year, rates the This of fuel XXX-kilowatt proud test full produced nine of this QX B-sample XXXX. year priority acceptance the they shows X end second and and major QX, testing of these last single-stack stage ours X a cell successful QX. in at was a by of units factory systems that we recently bringing track in in total When are incredibly

to manufacturing fully the Hyzon's efficiency successfully production production we automated by commissioning XXX-kilowatt assembly fuel this improvement part, cell automated and were semi-automated achieve proprietary manufacturing membrane stack line roll-to-roll In single line. which Progression electrode critical the the line, able production validates cell all procedures, the and commercialization are equipment the fuel tooling FCS. of design, of the to C-samples B-samples of system cell eventual and FCS or final and a operating

and Last testing. progressing is events to for completed XXX-kilowatt milestone. after production several first our platforms. truck major quarter-end, the announced we to our Going of another was test track we updates additional important We achieved U.S. now The and vehicle in achieved durability commercialization vehicle that governance Michigan week, components. tooled in milestones

program in U.S. assembly to Hyzon's to prototype achievement partner, transition This from America completed starts to vehicle, truck moved with launches in collaboration our XXX-kilowatt Modification, production. production this at-scale with assembly and customers North Fontaine With Hyzon's for truck third party Fontaine.

near building working accelerate internally, By customers. experience Fontaine with and we which deployments. creating the our commercialization once we're And are and XXX-kilowatt to in know-how and a commercialize vehicle term, in to vehicle kilowatt the our from foundation

a cell SOP ED is our currently reminder, XXX-kilowatt in commercial on As in program fuel testing prototype track XXXX. track for

the further accounting CFO a Compensation three of strengthen Foulston Directors. with serves appointment finance Chair of as financial Audit is the We of publicly Committee our Committee. of listed of served to and governance, the member also XX-years more provide our our He and a experience truck, Board Matthew also seasoned as Matthew as continue We executive, He and to operations having governance, extensive throughout strengthen his the globally trucking automotive, with working financial we of other believe will raised mining in guidance the across as career. operations. international valuable sectors. heavy-duty his and than accounting companies commercial finance expertise experience industry

to pivots energy. integral intends to an be as the player Hyzon world clean

We the milestones are far, milestones in on. the closing are have excited thus achieved progress by and we our upcoming we

EV U.S. delivering here X agreements and are drive working declaring executing fuel and commercial validating fleet cell producing and fuel the U.S. cell our commercialization the fleet XXX-kilowatt customers cell rest XXX-kilowatt milestones C-sample to additional exciting major of XXX-kilowatt today, the with a FCS system sit XXXX, we technology we XX, B-samples, first Europe. As Class major commercial fuel in several for towards customer, Hyzon single-stack to Hyzon's to including

proprietary preservation prudent last taking As are to must management, we continuing while we on and focused control. of mentioned our commercialization balanced, fuel a cell as XXX-kilowatt technology, cash see which and we and efficiency, cash to expense truck ensure quarter, approach fuel advantage stack develop true a commercialize we cell We driving system, economic heavy-duty platforms. single product our are performance and

focus As already this last mentioned and operational steps simplifying several we've expand Banerjee, Dr. our later in strategic will our which Bappa footprint, call. COO, important we upon in taken quarter,

I'd both into Bappa like a for greater which moment outlook expenses to and Jiajia go will our discussing spend detail. on

see and year, headcount lower related fees. the and second to expect As minimize you half the legal, to accounting additions to we of expenses look consulting

the expect to half XXXX a ultimate unclear the the should So SEC the investigations see clear and in improvement expenses normalized while of from and outcome R&D half a first second remain ongoing timing of we XXXX. recurring SG&A and basis, on

cash we the $XXX we for a range down net our driving and detail efficiencies today. efforts In million additional now bringing in are restructuring outflow additional from simplification million annual more year $XXX will to XXXX, full under to target of will the the Bappa outline cost

as We fiscal will guidance more XXXX. XXXX close come for back a we with year to you detailed

to we shareholders. We to remain review options market In and proactive. conditions to for as the and including value us maximize while continue all But dilution additional raise minimize to to capital, meantime, seeking always, available merger remain full acquisition, volatile. opportunistic further and our

investors our are We strategic our are efforts in focusing interested and who on technology. partners

this We are throughout process. progress we've pleased made with the

important posted We on you will updates keep appropriate. when

fuel cell remain for to we have cell of XXX-kilowatt in proprietary XXXX. to single-stack on advancing closing, our our In system half commercialization and of fuel significant in SOP track make and continue second progress the technology

With this ongoing Additionally, our those received XX pipeline to by cash of the which we $X.X our of deployments XX have excited with advancement far achieved XX focused we commercial EV year, million against vehicles. platforms. vehicle goal across commercial fuel already so of continued are cell our for

with in and differentiated meaningfully streamlined this strong U.S.-based IP us in-house confident fast-growing market. cell combined reduced and technology, that our fuel significantly well I'm positions expenses, our production organization

I Dr. things Now over to Bappa turn introduce am to and pleased Banerjee.

Hyzon's customers As this growth cell fuel company leading operations vehicles for the ensure team joined previously its is the continued to develops provide that markets. as year. high-quality strategic products earlier Hyzon's throughout Officer Chief and to Bappa of delivery Bappa direction hydrogen-powered delivers target Operating announced, us and first

board, active already portfolio pleased implementation. the months revised efficiency to operations, few on plan Bappa's first already has first complete reduce expenses, been of of review which are a we're steps a his in conducting and developed operational and he footprint, our In that

updates. Bappa these now will to I Bappa? turn over discuss it to

Bappa Banerjee

Parker. Good you, everyone. morning, Thank

serving Japanese while our to It customers. three is discipline as been focus spirit my have the the philosophy of privilege partners, warehouses key In facility lead Genba operations across my work global and been including employees suppliers. with our and Hyzon expenses of [indiscernible] and single from Hyzon reduce meeting and the to and to global learning with and Hyzon's we months our customers our our world, every

technology Hyzon's our information flow. in edge. to progress simplifying, focusing great push the and by are alignment making we To is advancing and Hyzon looking vision, our and clarity of execute competitive forward improvement

and I with costs. Board reduce Hyzon identify and find leaders the our strong to worked across complexity bench opportunities waste of to business and the our

we these the initial to to we actions approval, you decisions place and accomplish and a with the taken. I'm have provide have Board's plan put With pleased in goals,

the three cell product for XXX-kilowatt XXX options our the Hyzon. fuel we the single fuel stack First, by the cell offering to solely our from XXX-kilowatt cell to systems, one. fuel core and we'll system, offering XXX-kilowatt, production Instead shift transitioning will focus on kilowatt differentiator is of which focus

As operations, execution you anticipated scale drive throughout standardization would driving expect, down expenses the commonality risks. and efficiencies our of our to is and lowering

increases reduce volume expect improved fewer key to numbers suppliers. part on variation through and quality We reduced costs through

cycle changeover expected assembly to production are reduced Our because times and of common times. improve

serving for Europe Australia the for from to and go both conventional New and will for cab-over Australia the conventional the Zealand and rigid the cab-over the New U.S. U.S., platform serving platform and vehicle we Europe vehicle the having only and the Second, Zealand. platform vehicle platforms

and time, for to The We rigid serve will only this needs. based instead feedback and from current at a outsource to opportunity customers will to meet the three but third further the fully developed our work customer to we'll on immediate not platform region, two use was develop commitments party. platforms regions it key internally their

efficiencies development identical of of with elements modularity across will strategy Core This remain and will variations in bring the confined will the to interface the product the vehicle two product core the required and the platforms interfaces. be product standardization.

to The strategy will our planning. platform improve allow vehicle us production

commercial in our we with can with hundreds to customers, we as orders beginning multiyear vehicles and to JuVe. trials next of control four predict ramping described, accurately the structures third-party up platforms, costs our as three small over and years. we streamlining Parker scale assemblers, As by pursuing By are such more

us lead allow lower and markets explore efficiencies expenses organization, providing to our while to lower and will will organizational to and cost This product across efficiencies opportunities. a These two commercial and serving model business capital reduce simplification customers. platform sacrificing benefits simpler, and major multiple market working revenue without near-term our

efficiencies will a in will of control percentage at XXX positions by That The important the the organization. of target It will at marginal year. across the increase end only critically costs we growth the the had limiting about year. people For down further us QX, headcount this to is it year headcount consolidate example, to allow the our a and the double-digit from We come will of headcount growth XXXX. beginning allow us end geographical through through of footprint. budgeted to

for teams. sales, The now. timing large exit we where York, the have vehicle sale and has already with for U.S., in support Rochester, currently instance, New any assembly, facility we our prototyping been finance asset in In is location subsystem listed but as will

facility drive we Rochester global in what just opportunity Exiting first is our longer-term a step multiphase our envision a in operation. as efficiencies to

to regions for over find consolidate looking additional and to time. are in We levers additional opportunities plan other

assemblers third-party example, been we that with asset-light in Fontaine. has engaging with to U.S. Europe our replicate the actively model in manufacturing are For developed

times. This focus lowering to allow supply chain will partners, our simplify It and and us will global simplify for cycle also third-party excess monetize and our integrated assembly requirements improving expenses global across eliminating of will inventory the sharing us teams our continuous regions help improvement. waste and fostering by more knowledge and efficiently of work effort across across operations obsolete improving duplication by practical

MS communication software processes Dynamics, stable functions our by HR consistent across procurement implementing to improve across and will and We drive our finance, an functions. ERP

across program follow-on. developing and setting of objectives and planning aligning driving all-employee and alignment and and shared meetings through management are regions clarity hosting discipline target We by action regular learning, goals our

lot have of we be While great progress, made a to there's work still done.

Our better need coordinated and teams avoid be efforts. to duplicate aligned,

with clarity to working and driving a HISA, culture are speed We of build execution. of one results

company, consolidate operating to agile efficient, three only our our improve than create cell growth develop to to two and system a three, efficiency global organizational develop simplification fuel rather footprint summary, In lower vehicle costs. more leading only limit and rather and expenses on to and streamlined than we drive our will and platforms us allowing headcount

effort. will driving Hyzon, of we monetizing enhancing improvement our the will and and and by find the coordinated with including We continuous waste work across company, removing lift practical and simultaneous excess by global aligned upon duplicate deliver alignment and across opportunities obsolete a inventory, one as communication clarity and functions all simplified,

operational we elements in our to these consulting to to for million million and expense deliver expect cash expenses. the as measures, legal, accounting XXXX, well reductions To to net in of expect positioned In these $XXX all range Parker outflow addition be mentioned. reduction, we $XXX

simplify in to business to for improvements is Hyzon implementation. and evolving driven milestones the of progress single-stack operational and fuel according significant and fuel this discipline positioned our cell is the commercialization milestone with significant Hyzon plan leadership the truck well bringing making electric system in XXX-kilowatt ecosystem. focus, we cell the execution and hydrogen in have to of our streamline in believe our heavy-duty production We

impact and Jiajia? of to discuss Now detailed plan. this Wu financial me let outlook the the invite Jiajia

Jiajia Wu

everyone. you, and morning, Thank good Bappa,

There's to lot cover morning. a this

filing with periodic concurrent that XXXX by the mentioned our our obligations. report in QX we quarterly call, quarter's reporting last During

Additionally, NASDAQ, the accounting which along would us. on hard the team we We letter of employees, compliance our I, rest received enabled July XX, successfully Hyzon the from have continued across to us be with team not management for Hyzon's finance work, regained a your without the the contributions. notifying want dedicated that requirements. globe here we thank especially with listing

revenue cost second provisions to activities for million. to revenue additional did incurred We Similarly contract quarter, related financial of quarter this accrued of cost recognize and Moving last to not inventory in write-downs was but results. our Europe. $X.X customer

to $X.X commercial like deployed comments I earlier echo collected we However, globally million year-to-date. XX to around Parker's have would and progress vehicles

depend In customer Certain include can addition, our revenue factor over the which which control. our clauses as [indiscernible] in we the months XX second we million a period. is of will sourcing at acceptance of recognize disclose to the customer expect approximately a infrastructure in readiness revenue next outside hydrogen $XX refilling location, quarter case, on revenue of for XX-Q, the contracts in

Our increase QX primary $XX.X XXXX accounting operations increases amounted from this $XX million in and compared million loss QX to as was and to of from to The loss net $XX.X in operations legal, million fees. driver consulting XXXX. of in related in

consulting were QX $XX.X increasing XXXX This quarter's million legal, increasing million accounting approximately and by from $XX.X QX XXXX. from and million by $XX fees

in in million legal that million accounting SEC views other liabilities the in results, consulting a $XX which management in quarter's balance are accrued of Included million recorded sheet. the in this in million long-term management's of current $XX is liability assessment and Included is light figure nonrecurring. approximately in $XX.X $X contingency investigation. loss consolidated fees accrued

XXXX associated filing and condition. to business, million, SEC and up our consulting of with results million bring today if commitment by the financial expenses SEC work and the accounting As the we of elevated any the the included continuing or the may or the taken SEC additional June actions ultimate outcome note on have prospectives may will operational actions timing The the contingency What predict also $XX.X that such we state XX-Q, $X.X for of to be investigation in the of cannot inquiries. fact

in and attributable income amounted net net million to Hyzon compared loans, loss to in net Below loss $XX.X a the attributable Hyzon the this to XXXX to operating million attributable quarter QX $XX.X in the of $X.XX Basic QX XXXX. at negative $X.XX QX earnings $XX XXXX. $X.XX QX XXXX in of per share and XXXX million Hyzon QX negative in stood versus to loss per share

driven warrants share of as limited Hyzon's significantly of can earn-out number a quarter-end well fluctuation. be value valuation equity impact this influenced This securities, noncash Noncash mark-to-market and changes to liabilities, placement fair not changes but in by to including of price. contributed quarter-to-quarter factors, private to as

measures. non-GAAP to financial Moving our

$XX.X EBITDA in adjusted a compared $XX $XX our and in provides XXXX recurring believe Our to of negative adjusted million XXXX XXXX. negative EBITDA QX million performance. a for million to negative QX amounted QX better We operational view

XXXX. the add-back noncash this largest XXXX Besides warrants million XXXX of and gains legal the earn-out $X.X from the million and value in expense $XX.X on item of to QX in million QX $X.X to liability The of fair placement was nonrecurring related increased the liability, portion private in and regulatory matters. QX

On significant related earlier. XXXX concluded that earnings that Special potential our our March discussed XXXX. investigation Directors we call, which QX SEC jump $XX indicated to a accrual Committee QX Board in million, XXXX I was in of had of The

size have our legal visibility in 'XX into of investigation. the limited expenses We due the ongoing half to the second of

XXXX, an a consulting we to filing restructuring. our and items have overall reduction expense our our second we lead engagement reduced half with significantly elevated with in concluded consulting which requirements relating firm Therefore, caught core expenses. major to nonlegal up see to SG&A the should of in However, accounting expect have and organizational

From the last our year consistent current relatively to over R&D standpoint, the in a material conditions. expenses full deterioration half macroeconomic no of guidance compared will assumes second year year. remain

settlement This $XX recorded revenue of already XXXX. second for include million cost between excluding and our We $XX of expect reserves. operating does to expenses, expenses in the range not excess legal million of half be

Turning balance to sheet. the

technology to to previous compared to we indicated As as for calls, our our capital strategic in manufacturing traditional system our efficiencies industry. facilities investments approach OEMs ramp in operations we in need and have improve continue asset-light to investments production. reduces the still up fuel-cell advance the We our make as

to quarter amounted quarter. $X.X comparable this million for prior with CapEx

XXXX equivalents monthly discussed earnings Turning number call, we this $XXX.X our a $XX reducing short-term in in in investments. the unrestricted Due and quarter million the cash, we to burn cash ended actions improvements first such to cash of month. QX the we cash, platforms, with average million vehicle quarter have as seen to

end spent million D&O month also We $X balance million. $XX the annual of included reported in cash approximately insurance July million. $XXX July our

burn that, previously the half account in million $X $X into cash we was After the XXXX net of includes million [per our monthly at be second our million. related mentioned tool $XX will actions range The current drop]. forecast $XX in to SEC have short-term to taking estimated already investigation. million cash the already range Excluding implemented, the for of

testing our forecast cash certain may volatile hedging and outside is needs, supply as current which inventory in liquidate to based potential assumptions, that subject Europe be while which costs, near-term to The such excess on chain could ability control. various U.S. leverage costs are factors internal our of

amount additional Slide provided cash with have of significant the for second made half We're at we details expenses of guidance the Hyzon. deck. and progress We've XX at earnings XXXX the pleased of

work However, our not done. is

mentioned third-party earlier, cell Parker to considering by to and and will outflow of by net leveraging platform million our will settlement manufacturing, vehicle Simplified XXXX annual XXX-kilowatts target development us focusing fuel cash assemblers XXXX. $XXX help impact further production initiatives Bappa without cash streamlining SEC potential million, our and payment on $XXX As achieve in reduce of led further. burn outlined

conclude, on technology this in can path Bappa cash commercial with targets. mentioned our our have place, markets By right Hyzon the very our to also have we're financial substantially in while progress working demonstrated every spend. with hard earlier, to key meet quarter As we employees forward show our across and right along a confident still are To controlling raise and adviser preservation. strategy We're capital working improved options. team with we that

over I back will the turn With Parker. discussion that, to

Parker Meeks

Jiajia. you, Thank

in-house in a a U.S.-based production. technology, We believe accelerating, differentiated is and have commercialize grounded we team in IP that vision fuel hydrogen and market strong only strengthened to our a cell clear that

technology. second since on system our focus fuel end Hyzon of quarter, continued strength, our core cell the and the During

action As and Bappa reduce accelerate you that further, have plans and of platforms. to in we heard and in our our from focus technology our costs today, commercialization home already to place the to vehicle both

progressing focused EV vehicle initial everyday across cell QX, through platforms. we the and progressed each our trials pipeline deployments truck fuel commercial In that in our commercialization of globe,

As our technology vehicle our I crucial initial focused call, we customers during validate foundation multiyear decarbonization. work last earnings begin shaping which the said allow actively to or these trials both Hyzon help order with the them their performance, supply programs, of are building collaboratively and for potential customers to continue

We electric fleet major believe and to commercialize with governance, that technology, can and financial in has market streamlined fuel strong our cell vision our active hydrogen tremendous that cells differentiated truck and collaboration a execute vehicles momentum. we fuel management

for And your look forward I questions. to us Thank taking today. joining you Operator?

Operator

comes Your Instructions] first from Melius question Wertheimer Research. Rob with [Operator

is line Rob Wertheimer, open. ahead. Mr. Your please go

Rob Wertheimer

was I good question because though. mute was am it so sorry. on - I I'm a embarrassed,

Parker Meeks

morning. Good Rob. it know I

Rob Wertheimer

a your have your competitors the at describe those in you this Do your just they my little was first you to you it? if that and at of get about how playing just have used do intend and selecting just there, point - people. customers Or is are test? and different Or strategies? is see fueling customers trial this think customers So everybody you ponds trials? something qualify sort seriousness, the could bit, question process a trials the Is it to

Parker Meeks

Thanks, Rob.

working a mission entire trial just customers hydrogen with for fleet area side up partners to pair critical order on What to, with a to I them. dive will fuel their our decarbonize for shape this to deeper because our that's like program us starting the into collaboratively trial to great is - experience delivery the into from look think program.

So to pieces. take few in that a

lot competitive a First, a the on different are landscape, trying solutions. of fleets lot

work engaging we're fuel case their cells weight, fuel and/or use that already zero, which one true environment. fleet, can case, technology, fleet win the goal. day, Are only hydrogen the provide they infrastructure done should And right? what when the others? we've cell really heavier versus whereas grid decarbonization where electric in on The use focused but limited longer what's a range to understand with But

know So all right? fleet that we use mostly threes, route diverse happens really So, the that conversation, have early cases. diverse in

different So their some have area where likely Most point, on some fleet. cell solutions. having we their But And of have a fleet focused some will lot is truck will a instance, body their in the electric preferences cases, fleets based very for fuel fuel many at choices in hydrogen made the on cell important. they trying in conventional outcompete. the in are U.S.

cabover reason the fleets today, cabover. a those than why share have XX% the less market It's in a There's of truck trucks. those over in lot prefer U.S. particular, conventional in

of truck. that we fleets work cabover many So not the to a going tell us trial with they're

into a agreement steps, trial Some proving the point that get discussion, we commercial into that will. is Once over multiple get trial we're fleets, but the to right? very clear we're focused really on

at them things like on route work them to vision customer cell modeling, with we closely So the to test technology, in their their once trials well what's progressed the motivation use conducted our and and us of shaping that case fuel remodeling, that from stage a really the do. are trial technology decarbonize, works only ESG they an we've what's we really fleet, their standpoint to have and very where understood TCO needed technology fits this prove to and in what

And then fueling the to for fueling going life specifically infrastructure come our is shape to how to them. partners, with

scale-up is as to is fuel and the point proof trial stage, a the we answer the on see us the then to what's trial pattern, time for by for that successfully that what fleet. we always then complete So the that get to work

Rob Wertheimer

add stop What what larger customers versus can managing the more with how a dramatically And line? and are stack. trialing And on manage do or plan? the get technology use and I Does kind expand a cases with XXX a and doing back trials for if I'll the you the uses a workability to then you moment, future Okay. is Perfect. your of there on the in in topic. that Is for XXX that sense finding then then the pause - around your stack going XXX XXX for same customers?

Parker Meeks

Rob. Thanks, No.

when So us. critical to for XXX-kilowatt the comes to the transition very it XXX

So typical of able to given as truck the fuel that use the what that powertrain. cases can overall in cell paired the system, XXX-kilowatt We right? to to single-state needs XX% focused - in XX% do on, a power across any we Class provide that A are being see do route our

focused point-to-point food the average most couple XXX cases, those delivery, that think So use route can threes be everything When the we of parts frame, route more of do the will and at years deployments cases, the next needs for that do. almost the threes look in et to drayage, kilowatt, you use country, over early cetera. on back-to-base

that we a in year. into a XXX production have The one used first stack and way that in focus trial the been transitionary now cost is fairly in to our kilowatt that got for the technology it's really -- available uniquely vehicle, of the in against and efficiencies XXX production, fit because because XXX the can single [ph] we the we've trucks provide at efficiencies world as when efficiencies, over volume a kilowatts the that Western

what that kilowatt to And it to three. knowing the route in early XXX experience, it get in adopter do limited is that somewhat fleets can look the

focus Our is forward. XXX-kilowatt the going

Group use of used. a can we place is to delivering adopter great Food the are early fleets Performance it to a where to that. XXX it So be find example

to customers the year. place kilowatts, We most they're that them outward deliver quite now get XXX to truck take and first have to the truck place to year, at of tranche. to experience excited going this we're for our look testing in But to focus with that which truck is have and XXX in and SOP which a put into contract next

Rob Wertheimer

Thank you.

Parker Meeks

Thanks, Rob.

Operator

Your with Bill question comes next from Peterson JPMorgan.

is line open. Your

William Peterson

Good want that hi. follow-up point. Yes morning, everyone. I to on

have I So But just And have available cabover you're match clear, XXX this I trying that trials to XXX you similar, been or interest. to in whatever too. with looking be customer guess, Europe truck the at have you guess delivered, some for production. so

your in small given assume, really maybe we XXX-kilowatt is we smaller So guess, to strategy how the I ramp beyond? fairly and shipments I just before, based truck to strategy clear in off XXXX, guess, shift the volumes guess, XXXX to about Should kilowatts. ready and XXXX should, I cell, XXX think fuel in platform

Parker Meeks

Yes. Thanks, Bill.

it basically, So, over and about the XXX Europe. kilowatt that way trucks would XXX think I kilowatt I think the in the is,

adopters we available XXX We kilowatt to customers assume that need be to be early service there's actually that deliver XXX-kilowatt order, is XXX where being service first just will the will use can take in full still that SOP, power but to both needed. that that delivered output use as part to we want case, their kilowatt and limit should to, if of able a not case, XXX-kilowatt the kilowatt XXX truck

delivering this are year. So, XXX-kilowatt we trucks

on going, as kilowatt to look likely XXX will to SOP focus while makes still but XXXX, start through journey they to going getting fast is sense get XXX-kilowatt really we focus the want the in a as We deliver where to it to SOP. of can. those early the part that the deliver But where those customer

William Peterson

can us focused in internally offered to should to the for components core Okay. but of the Yes. color I of the cost when you're might understand guess, But related, the And on provide cell? remind versus guess off assume externally? can be related, efforts. buy do view, going but XXX launches but powertrain maybe the really kind maybe other that. trying based you're subassemblies, And to basically operational fuel for you And Thanks exactly are findings be provide we that the reduction the Bappa. to of outside additional the you cell, going not the maybe these third-party this I team, on for fuel you

Bappa Banerjee

Thank you, Bill.

as of to some core process referred components thought interfaces. having the variations through handling as well I our So

are components differentiated us. we'll parts to the core the business, we that to close Our The differentiated of keep the very, work with very are side third-parties. happy business, our of interface advantage technology

done our we give us, example, core To is is we stacks. how be you put in-house. examples will the what MEA, continue to to that all in will absolutely together core getting how vehicle to identical our across the together some platforms. plate, means our of be cell, put fuel down That That and for

because side, supply production numbers has simplifies So all chain, them of only anticipate, becomes but get part our simplifies more we number can as that for and structured, when provide for and benefits, can you our the it's our kits of not more third-party assemblers, bit their they them sorts a simple, defined little the because help assembly, their with faster. our life this done also it's XPs, things

how that's of together. all So comes this

William Peterson

are on sneak of of how that's more. get we beyond Hyzon's Raven talked business. timing an Maybe kind to I you've business projects you likely the the guess, mean fire that, follow projects. progressing. the other actually as update XXXX the can these for in projects then also, of ramps think one these can up I remind on wanted Sorry, one side infrastructure and contributions re-carbon transformed - if about as your But maybe what in your SR to I or about side. I TC, I us are past,

Parker Meeks

Bill. an you, Yes go That's our to of important business. part

first to start looking SR, that the Raven California. quite in through permitting, to excited Chevron going and has That in plant groundbreaking investment that with invested still remain also secure permit, following by is its We're Richmond, that did Raven plant plant. plant. completion. in So its announced we're project forward SR, project to through with we their

remind partners broad that And exclusive still we're has I deployments everybody, Raven has the but first have an the of We very potential active a cases, potential that quite to production. that we you of where actively partnerships given with to have right production update on curate those timing mentioned that Hyzon in most excited don't us. are of that projects to those around from plant, invest. specific with pipeline believe we production planning spectrum

the partners deployment. And to to In to the partnerships, where those many really around in the put XX% critically curate only equity cases, trucks. where with to to capital projects and that's tied near-term it's look we up of in going work projects Hyzon there's

there. [ph], at projects are SoCal actively looking looking we at So,

We have projects over in Europe as well that we're looking at.

work the solutions, with use which our closely have do we to is to that not we we life, have In this to case that And project. important the the haven't side dispensing base companies and the infrastructure where that's simplify we given have is infrastructure more a as the strong for focused it's does place dispensing also potentially Southern firm announced but the come California to need. next existing that partners, and exist demand shape there likely U.S., in to dispensing to is us belief dispensing a on those an have area that than is back

get public started, to tied going permanent fuelers with be it's installed more production the by a and And semiprivate behind mobile access. to installations and to close as cited both are fence

XX partners who great that So, mobile between that have we bring side production on dispensing with customers to and coming we deployments pair XX that feeler dispensing on initial truck is we the have have who the access the look and line. to

And dispensing that's trials. time to to them that through agreement over that them scale can production the see that we've XXX try to that to help that may where commercial and enter the they XX it's them fuel. trucks shown scale into the customers given a advance made partners It's once their want confidence you just that they've not that truck, decision we've

Operator

Steven question Fox comes next Your with Fox Advisors. from

open. is line Your

Steven Fox

everything just First side. the question, talked you about on up Parker, dispensing just following there on

and perspective a And whether of mention just customers at the could you? on-site lead that to a the they're just put are the with could or same that's of had planning installing sometimes then issue. of fueling sort part said Like I of process? also infrastructure everything did pursuing in you You how much to delay fueling that you be timing And time follow-up. the how a talking commissioning can

Parker Meeks

our and us obviously very together. a Steve. Great. It's Thanks, journey Yes. important part shaping of

ensuring to and sure fuel we're dispensing way that fueling the it. as pursue what available is risk and have of installing in as that a minimizing possible. has permanent we lot that we much So Permitting make risk

looking when takes a particularly the warehouse install, So at you're site on behind time. fueling that permit permanent

transition paired those lined have Coast the be order where year, about out really we to us West the those is mobile will is fuelers, of is Europe deployments of early partners it if available I'll five to the up first talk be in access capacity a fuel The available that. on laying a the to able fuelers, And for about first with that in particularly generally fuel XX to mobile U.S., second. trucks have capacity

second behind the of to planning their or about semiprivate to by And fence the the and order fueling beyond. it's the basically all order install customer and the second timing commitment permit meet station

to year there the but the there the risk So, side certainly second try on order we risk, mobile is first really with on tranche, delivery minimize fuel fuelers.

more bit in In is Europe, hydrogen Europe. a because easier, there over and it is infrastructure

on and many our So already have some of customers been fueling Europe infrastructure working time. for

and Yuba on and yet, end the one our For install of through in instance, significant partner, our capacity dispensing customers them electrolyzer Austria through site.

number So they place have to of certain trucks. a in scale fueling already to up

utmost we a first the with that both third as while years. mobile infrastructure the the is that deliveries the to ensure work and U.S., the in fueling sure year's customer it well in is as for permanent But to permitting aren't importance U.S. So it's Australia. make second and and delayed and focus they're the to Europe really - allow us installing

Steven Fox

you're think bigger just Great. the the Can flow gap you million as efficiencies the you do a about, ramp at about flow annualized then being back of But of bridge as talked XXX-kilowatt cash That's stacks restructure. a the for at a what's lot words, for that you're million you dial of year. and midpoint. you're And pulling we example, know of through perspective. of not roughly And to talking et to drag million Thanks. burn the $XXX how is helpful about Or assumed? that facility, costs Rochester sort factored sale very look maybe and like we $XXX that the $XXX initially? that $XXX might I If $XXX be maybe question. what's terms in In talking assumed in and million the cash half, in the rates second one-time other cetera? next million business

Parker Meeks

Yes.

I'll So it to Jiajia. Jiajia? over pass

Jiajia Wu

it Good progress. right? I morning, Steve. would would not We made Thank significant question. say you happen for overnight, the

you trend XX% to spend, in what our spend right at look from in QX the call, have QX. look in also in deck, As at million in appendix, you our right? we earlier slide reduced the if XXXX, said $XX I trend, the the down and in If the

QX journey actions XX.X%. The did Now at were right proves our work.

the cell the Particularly, in already about kilowatts. the to and legal make as in of target with achieve XXXX raw XXX inventory and our initiatives, fuel normalized And And his significant we the kilowatts in you access to around a our XXXX. mentioned, think material path expense Bappa in half forward expense the getting did Europe. second XXX accounting continue right, production. as I monetize investment XXXX, see mentioned we As And do such

our at look balances quarter. you inventory you grow our balance, have inventory to this see If in

kind of that's those. So related to

we So, significant XXXX. procurement side don't for inventory expect from a impact

Parker Meeks

Yes.

cleanup call continuing that. add the basically, happen does right the reduction been potential decent over It need. to available really of to monetize mean to no you inventory Steve the what we question, to the And in of mentioned that if platform make that longer XXX. Jiajia simplification, legal your a leap it inventory to Just to as trend have financing has to I have is - from we from part take XXX of accounting, that we we have time. XXX

now leading us Because of our forward, benefit under our program going the with that driving we're focus Bappa of reshape efficient through operational that. along with of actions the the

direction. progress you'll to of 'XX, million by QX we're as guidance. rate we'll million XXXX, that trend And to be continued in see level $XXX the that the the cash that to rest So we at comfortable hit run $XXX of

Steven Fox

helpful. That's Great.

estimates one your Rochester in that not sale the is Just potential your The in estimates? clarifying facility, point. of or

Jiajia Wu

uncertain. would such is key particular estate liquidating real timing the say that asset one, I of For

it's not our moment. in So this at answer

Steven Fox

very you Great. much. Thank

Parker Meeks

Steve. Thanks

Operator

from comes question next Melius Rob with Research. Wertheimer Your

is open. Your line

Rob Wertheimer

that to one do of zero of ton of way people wanted on your Is to something starting people readily predictable of follow-up major kind think say evolve over are Is the you carryover will a on on time? And not how it? about general? and from Are you're -- know how technology? and durability from the right that have proof that how kind evolution? XXX there that just again a it? Or is how previous trial the point? Thanks. is seeing works, from currently the system doing But selling I durability on in customers that's

Parker Meeks

are durability No, because And a is focused is and deep, us very, question it. customers very Rob. we really so love there, it on that great critical coming to our point to market, to

fuel parts. durability cell, I'll while itself, historically generation, and to so we kilowatts the right? So reprove So, are starting take cell on on from virility it in scratch, that durability XXX-kilowatt vehicle two to technology. speak, is the The start XXX fuel the with there data good on

Now in of box. very that to in get power cells number XXX the technology, ability active that advanced and that we area kilowatt single is of stack stack across a larger compressed because the consistent have performance the

once-in-XX-kilo at we XXX-kilowatt as testing SOP, durably So, want think look going instructive. all go do the itself, when and is the do from reproving our to the be be while customers through it we over to that clear again. generation We

and so also from the generation advanced but us technology, in to the both so Python So it's give they different inside to them kilowatt is credit, - it in we other this prove XXX-ish market. because this of want and

the on generation. On want getting are XXX, most in the the to our end, trucks kilowatt their with really side, scale experience that, truck customers of the XXX-kilowatt first XXX

when help fuel trial And fueling putting a the in significant benefit their just successful to are the drivers them where that how truck experience. truck, they our resolve training is is service performs, and truck only they're the a react, how how lot trialing have of cell, to work, Not trying the we going entire if issues, providers a how those, excitement. but not our and frankly, there to

and which to contingent later, that pending relatively orders be committed is XXX-kilowatt with pattern have trial has that pathways some So, sign up do willing of truck in XXX-kilowatt order expect trial we an orders customers what the we've and the seen where they'll XXX in the soon. trial the we progressed trial actually for order for our on from to early to XXX XXX just they're for that our truck

very et XXX confidence where excitement just technology, that helpful But cetera, the in but training, a not in is fuel, experience, way. goes long also building it

to range given even XXX-kilowatt the provide, does most than more a once I that say, weight it sort the doing I kilowatt the [ph] and what do we just So, they increased boxes of way beneficial and think, might XXX rest. customers try I'm supposed what you end, and them sure kilowatt can long trying get is does it's say tick and this to guess on it want the are of trials to in where make the toward at that

Rob Wertheimer

Thank you. Okay.

Parker Meeks

Rob. Thanks,

Operator

Parker There Meeks I will remarks. no With at for that, further time. call questions closing the turn this back are over to now

Parker Meeks

and detail platforms, our vehicle more of next on SOP Again, thank Thank cell, joining quite this following to towards we fuel quarter our excited Hyzon, of Thank are cell everyone the our thankful our want you, very over have provide to us on all much. call. operator. for the today. electric you you call by continued made progress then I journey. commercialization we've and We're the At to excited XXX-kilowat progress of technology. We're fuel the past driving

Operator

conclude conference participation. today's for Thank This you will call. your

You may now disconnect.

Hyzon Motors (HYZN) 8 Aug 232023 Q2 Earnings call transcript