S SO O S OSMARTER SOLUTIONS FOR A CLEAN ENERGY FUTURE

B A L L A R D P O W E R S Y S T E M S

A CLEAN ENERGY GROWTH COMPANY TSX: BLD NASDAQ: BLDP

FEBRUARY 2, 2011

COPYRIGHT © 2011 BALLARD POWER SYSTEMS INC. ALL RIGHTS RESERVED

Forward Looking Statements

This presentation contains forward-looking statements, including estimated revenue and cash flow from operations for 2010; and business outlook for 2011, including estimated revenue, operating costs, Adjusted EBITDA gross margins and anticipated market developments. These forward-looking statements are based on the beliefs and assumptions of Ballard’s management and reflect Ballard’s current expectations as contemplated under section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934 as amended In addition to the specific as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. In addition to the specific assumptions set out with those forward-looking statements, such assumptions relate to our financial forecasts and expectations regarding our product development efforts, manufacturing capacity, and market demand, and include matters such as generating new sales, producing and delivering the expected number of units and controlling our costs.

These forward-looking statements are being provided to enable stakeholders to understand Ballard’s expectations as at the date of this presentation with respect to its future performance and may not be appropriate for other purposesthe date of this presentation with respect to its future performance and may not be appropriate for other purposes.

These forward-looking statements involve risks and uncertainties that may cause our actual results to be materially different, including, without limitation, the condition of the global economy, the rate of mass adoption of our products, product development delays, changing environmental regulations, our ability to attract and retain business partners and customers, our access to funding, increased competition, our ability to protect our intellectual property, changes in our customers’ requirements foreign exchange impacts on our net monetary assets and our ability to provide the capital customers requirements, foreign exchange impacts on our net monetary assets and our ability to provide the capital required for product development, operations and marketing. For a detailed discussion of these risk factors and other risk factors that could affect Ballard’s future performance, please refer to our most recent Annual Information Form. Readers should not place undue reliance on Ballard’s forward-looking statements and Ballard assumes no obligation to update or release any revisions to these forward looking statements, other than as required under applicable legislation.

All t lid t d t i l d D th P ’ lt d i U S d ll l th i t d All amounts are consolidated to include Dantherm Power’s results and are in U.S. dollars, unless otherwise noted.

FEBRUARY 2, 2011

Content

1. About Ballard

2. Fuel Cells and Clean Power

3. Transformation Proof Points

4. Market Development Progress

5. Preliminary 2010 Results & 2011 Outlook

6 Our People6. Our People

7. Summary

FEBRUARY 2, 2011

About Ballard

Founded in 1989

Listed on NASDAQ (BLDP) Q ( )and TSX (BLD)

Cash reserves of $74.4M as of 12/31/2010

Market capitalization of ~$139M as of 1/31/2011

~400 employeesp y

Ballard designs and manufactures clean Ballard designs and manufactures clean energy fuel cell products, enabling optimized

power systems for a range of applications

FEBRUARY 2, 2011 P A G E 1

Fuel Cells and Clean Power

Cl k t th ill fl t Clean energy market growth will reflect a mix of energy technologies

Solar

Wind

Clean Energy Mix

Bio-energy

Fuel cellsPEM, SOFC, PAFC…

As fuel cell product costs continue to decline, fuel cells will play an increasingly prominent

role in the clean energy space

FEBRUARY 2, 2011

role in the clean energy space

P A G E 2

PEM Fuel Cells

mper

ature Hig

h600°

C-

1200°

C

SOFC

MCFC (Fuel Cell Energy)

PAFC (United Technologies)In

creasing h

man

agem

ereq

uirem

en

1kW 100kW 1MW 10MW10kW

Tem

Low

60°

C-

120°

C

PEMFC

PAFC (United Technologies)heat

ent

nts

Applic

atio

ns

Ballard leverages leadership in PEM across multiple g p pmarkets…

Compact & scalable

Fuel flexibility

Efficient reliable and safe

Fast start-up and low temperature

Rapid response to changes in power demand

Durable across wide variety of duty cycles

FEBRUARY 2, 2011

Efficient, reliable and safe

P A G E 3

Durable across wide variety of duty cycles

Ballard leadership in PEM fuel cells is based on -

Ballard: Putting PEM Fuel Cells to Work

Ballard leadership in PEM fuel cells is based on Portfolio of proven commercial solutions

Fuel cell stacks, power modules and systems

Strong delivery capabilitiesAccess to over 2,000 patents and licenses

High volume manufacturing facility

SI & channel partnerships

100MW+ of fuel cell products shipped

Developing a global customer base -

Backup Power Material Handling

BusDistributed GenerationCHANNELSCHANNELS

System Integrators /

OEMs

Downstream Customers

BLUWAYS

Customers

FEBRUARY 2, 2011 P A G E 4

Transformation Proof Points

Re-vectored from auto fuel cell R&D to commercial marketsDivested automotive technology programsDivested Japanese cogeneration systems joint venture

Significant commercial progressSignificant commercial progressProduct performance improvementsProduct cost reductions

Reset the cost base by >50%yExited 2010 with cash operating expense base run-rate of ~$40M

Augmented cash reservesSuperior Plus tax transaction (Net: $34M)Monetized rights under Share Purchase Agreement (Net: $40M)Sale-and-leaseback on head office building (Net: $20M)

Acquired controlling interest in Dantherm PowerSystem integration capability for stationary power solutions System integration capability for stationary power solutions Direct channel to end-user markets

Complete transformation of Ballard over past 3 years

FEBRUARY 2, 2011 P A G E 5

p p y

PRODUCT KEY ATTRIBUTES PRODUCT ASP

Fuel Cell Product Portfolio

END-2010*

Backup power marketStack power 500W-2 kW Operating life 2,500-4,000 hours

$650-2,600 / stack

Distributed generation marketStack power 2-8 kW Operating life 20,000-30,000 hours

$2,800-11,200 / stack

$2,000-10,000 / stackMaterial handling marketStack power 4-20 kWOperating life 8,000-12,000 hours

$337,500-675,000 / module

Bus marketModule power 75-150 kWOperating life 12,000 hours

* Dependent on power level & volume commitment

Ballard’s product portfolio includes fuel cell stacks, modules, as well as fully integrated system solutions

Product ASPs shown here reflect aggressive cost reductions

FEBRUARY 2, 2011

Product ASPs shown here reflect aggressive cost reductions … 40-65% over the past three years (2008-2010)

P A G E 6

Backup Power

Initial focus on telecom

Addressable market: ~$1B+

Compelling value proposition, driven by reliability and low cost

Dual channel access -

Direct via

Indirect via system integrators

Dantherm Power system

Indirect via system integrators -Recent Progress -Deployment of Dantherm Power systems in Wind Mobile networkIdaTech sale of >250 systems to

zy

Hutchinson Telecom in IndonesiaIdaTech launch of methanol-fueled system, using Ballard fuel cell stacksBallard sales to emerging system integrators

FEBRUARY 2, 2011 P A G E 7

integrators

Distributed Generation

Addressable market: ~$3B+ (based on Addressable market: ~$3B+ (based on ~1,000 MW of by-product hydrogen…ie. sufficient to power ~800k-1M homes for a year)

Focus on chemical plants with by-d t h d d SGIP FIT product hydrogen and SGIP or FIT

(feed-in tariff) programs

CLEARgenTM systems or stacks

CLEARgenTM ‘Levelized Cost of Energy’ ~$0.06-$0.13 per kilowatt hour(reflecting available Federal and California state government incentives)government incentives)

1 MW CLEARgenTM system

Recent Progress –1 MW CLEARgenTM system for peak power requirements was delivered to FirstEnergy in OhioK2 Pure Solutions supply agreement signed for 163 kW CLEARgenTM system, utilizing by-product hydrogenSale of 1.25 MW’s of FCgen®-1300 stacks to Real Time

FEBRUARY 2, 2011 P A G E 8

Sale of 1.25 MW s of FCgen® 1300 stacks to Real Time Engineering, for deployment of 1 MW system in Singapore

Exclusive stack supplier to Plug

Material Handling

Exclusive stack supplier to Plug Power….clear market leader

Addressable market –

Plug Power indicates ~380,000 trucks of an installed base of 1.7M trucks in N/America (market potential >$1.5B)

Economics driven by improved y pproductivity

Focus –

Battery replacement in N/American Battery replacement in N/American high-volume distribution centers & manufacturing facilities

Recent Progress Recent Progress –Extension of supply agreement with Plug Power through 2014, with mutual exclusivity for North AmericaPlug Power sales to Walmart, Sysco, Whole Foods, Coca-Cola, BMW Plug Power distribution agreement with Raymond Corporation

FEBRUARY 2, 2011 P A G E 9

Plug Power distribution agreement with Raymond Corporation2010 shipments of 1,100 units, a 6-fold increase over 2009

Bus

Zero-emission public transit

Government supported programs

Canada, UK, Brazil, Germany, USA, The Netherlands

Channel access through bus OEM’s and system integratorsOEM s and system integrators

Reasonable volume increase would achieve competitive-ness vs. diesel hybrid &

BC Transit fuel cell bus fleety

electric trolley buses

Recent Progress –World’s largest fuel cell bus fleet deployed in Whistler, BC; >815k km's (>500k miles) accumulated Sales to Tuttotrasporti (Brazil), Transport for London (UK), APTS (The Netherlands), SunLine Transit Agency (Palm Springs, CA)Participating in 4 Federal Transit Administration projects under the

FEBRUARY 2, 2011 P A G E 10

Participating in 4 Federal Transit Administration projects under the U.S. National Fuel Cell Bus Program

Strong Preliminary 2010 Results (Unaudited)

Strong growth – revenue up 39% (met guidance) & product shipments up 104%

Met or exceeded 4 of 6 growth milestones; 2 not met

Key market achievements:

Backup Power – established a direct channel with acquisition of a controlling interest in Dantherm Power.

Di t ib t d G ti i d th ’ fi t FC ® 1300 t k l Distributed Generation – signed the company’s first FCgen®-1300 stack supply agreement, for 1 MW system in Singapore.

Bus – signed supply agreements for buses in London and Brazil; selected to power buses under the U.S. National Fuel Cell Bus Program.

Material Handling – extended supply agreement with Plug Power under a mutually exclusive relationship for North America through 2014.

Major progress towards profitabilityd d33% improvement in Adjusted EBITDA

30% improvement in cash flow from operations on a comparable basis (excluding Dantherm Power and negative FX impact) - met guidance

FEBRUARY 2, 2011 P A G E 11

Preliminary 2010 Results (Unaudited)

USD Millions Q4 2010 Q4 2009 % Improvement FY 2010 FY 2009 % ImprovementFrom Q4 2009 From FY 2009

GROWTH

$21.1 $16.5 28% $65.0 $46.7 39%

GROWTH

Revenue

Fuel Cell Stack Shipments1 (units)

1,119 551 103% 3,014 1,476 104%

12-Month Rolling Order Book

PROFITABILITY

$35.0 $22.7 54%

Gross Margin

Adjusted EBITDA2

LIQUIDITY

24% 14% 16% 13%

($3.1) ($6.4) 52% ($26.0) ($39.0) 33%

Cash Reserves $74.4 $82.2 -9%

1 Total fuel cell stack shipments for backup power, distributed generation, material handling, bus and automotive applications2 Adjusted EBITDA measures EBITDA adjusted for stock-based compensation, investment and other income, transactional gains and losses, acquisition

costs and the non-controlling interest in Dantherm Power.

FEBRUARY 2, 2011 P A G E 12

2011 Outlook

Building on strong 2010 results

Continued focus on growth and profitability

Key prioritiesKey priorities

Significant revenue growth - continued execution of multi-market strategy

Maintenance of the cash operating cost base at current run-rate (~$40M/yr)

Continued improvement in gross margin towards a 30 35% target shift in Continued improvement in gross margin towards a 30-35% target - shift in product mix and incremental product cost reductions

Guidance

Revenue growth in excess of 30% from the 2010 levelRevenue growth in excess of 30% from the 2010 level

Adjusted EBITDA improvement of 40% from the 2010 level

FEBRUARY 2, 2011 P A G E 13

St i l d hi t

Our People

Strong senior leadership teamJohn Sheridan, President & CEO

President & COO Bell Canada; extensive experience in telecom and technology; Joined Ballard 2006

Chairman of Canadian Hydrogen & Fuel Cell Association (CHFCA); Chairman of BC Chairman of Canadian Hydrogen & Fuel Cell Association (CHFCA); Chairman of BC Hydrogen Highway; Member of BC Premier Technology Council

Paul Cass, Vice President - Operations

Extensive engineering, project management and manufacturing experience; Joined 1997

Bill Foulds, President – Ballard Material Productsou ds, es de t a a d ate a oducts

Experience in advanced material products, including Director of Carbon Products at Textron Systems; Joined 2001

Michael Goldstein, Chief Customer Officer

President & CEO Actuality Medical; President iFire; 6 years at GE; Joined 2009

Tony Guglielmin, Chief Financial Officer

CFO Canada Line Rapid Transit; senior financial management roles at Finning International & BC Hydro; Joined 2010

Christopher Guzy, Chief Technology Officer

17 years at GE; PhD in Chemical Engineering; Joined 200517 years at GE; PhD in Chemical Engineering; Joined 2005

Supported by solid organization~40 employees are inventors (Ballard & BMP patents and patent applications)

PhDs: 13; Masters: ~40; Engineers & Scientists: ~120

FEBRUARY 2, 2011 P A G E 14

Summary

Product leadership in fuel cell power solutions, based on proven proprietary technology

Compelling value propositions Compelling value propositions

Strong order book supporting revenue growth in excess of 30% in 2011

Well-financed runway – no need to raise cash in public markets to execute on growth strategy

E t i ifi t dj t d EBITDA i t Expect significant adjusted EBITDA improvement of 40%

Ballard – Putting Fuel Cells to Work

FEBRUARY 2, 2011 P A G E 15

S SO O S OSMARTER SOLUTIONS FOR A CLEAN ENERGY FUTURE

B A L L A R D P O W E R S Y S T E M S

A CLEAN ENERGY GROWTH COMPANY TSX: BLD NASDAQ: BLDP

FEBRUARY 2, 2011

COPYRIGHT © 2011 BALLARD POWER SYSTEMS INC. ALL RIGHTS RESERVED