Westport Fuel Systems, Inc. · TSX:WPRT
Westport Fuel Systems — Q1 2022 Earnings Presentation
16 slides from Westport Fuel Systems's earnings presentation, May 9, 2022
Slide 1: 1Q22 Results Conference Call
1Q22 Results Conference Call May 9, 2022
Slide 2: Forward-Looking Statements
Westport Fuel Systems Forward-Looking Statements This presentation is being issued for informational purposes only, is not intended to provide the basis for any credit or other evaluation and does not form part of any offer or invitation to sell or issue any securities or any solicitation of any off
Slide 3: Speaking Today
Speaking Today… David M. Johnson Richard Orazietti Chief Executive Officer Chief Financial Officer Nasdaq:WPRT / TSX:WPRT PAGE PAGE 3
Slide 4: Financial Highlights 1Q 2022
Financial Highlights 1Q 2022 Revenue OEM Revenue Adjusted EBITDA $76.5 million $51.8 million ($6.1) million vs. $2.7 million Flat vs 1Q21 [1] 21% 1Q21 in 1Q22 • Addition of fuel storage • Higher volumes in heavy- • Increased spending in R&D business continues to add to duty OEM expenditures for heav
Slide 5: HPDI – Driving Growth
HPDI – Driving Growth • HPDI offers 25-30% lower fuel consumption • All the efficiency, power and reliability of a diesel engine • HPDI is underpinning growth in OEM segment revenue Nasdaq:WPRT / TSX:WPRT PAGE PAGE 5
Slide 6: How do we get there?
How do we get there? • EU 2025 and 2035 Co2 standards both a tailwind and catalyst • OEMs facing large penalties for not meeting carbon reductions at these key dates • H2-HPDI can be the solution for hydrogen and long-haul trucking • Off-road and high horsepower a perfect fit for HPDI Nasdaq:WPRT /
Slide 7: Russia Ukraine Conflict
Russia Ukraine Conflict Commodities markets are Despite these pressures, The conflict continues to still under significant we still strongly believe have an adverse affect on pressure as a byproduct we can expand and grow our business of the conflict market share Transportation is not a discretionar
Slide 8: India Update
India Update • India’s natural gas vehicle market is growing substantially • Regulations driving the shift towards alternative fuels • A key growth market for our company Source Economic Times www.economictimes.co.uk Nasdaq:WPRT / TSX:WPRT PAGE PAGE 8
Slide 9: China and Hydrogen: A Large Market Opportunity
China and Hydrogen: A Large Market Opportunity • China investing $74T in carbon neutrality over next 30 years, with Hydrogen playing a large role in this • We can help China meet its tight emissions goals Source: China Hydrogen Allliance Nasdaq:WPRT / TSX:WPRT PAGE PAGE 9
Slide 10: We Remain Positive About our Long-Term Outlook
We Remain Positive About our Long-Term Outlook Despite headwinds, the world still needs clean, reliable and affordable transport Global recognition of Hydrogen is growing, we have the technology to capture this in long haul transport Increasing volumes in new markets will only boost our company movi
Slide 11: Financial Highlights – First Quarter 2022
Financial Highlights – First Quarter 2022 Highlights • Revenues flat despite headwinds from the Russia-Ukraine conflict, uncertain and volatile gaseous fuel prices and continued supply chain challenges o 21% growth in our OEM revenues mainly from acquired fuel storage business and sales volume growt
Slide 12: Business Segments – OEM
Business Segments – OEM Highlights • Revenue increased YoY by 21% o +$8m from acquired fuel storage business o +16% higher volumes YoY of HPDI 2.0 fuel systems partially offset by contractual price reduction; Higher relative LNG prices at the pump are a headwind to sales volumes near term o LD OEM -
Slide 13: Business Segments – Independent Aftermarket
Business Segments – Independent Aftermarket Highlights • Revenue down 27% YoY o Lower sales volumes to Russia resulting from sanctions o Sales volumes were also impacted by fuel price volatility; LPG prices have returned to a positive range and providing a tailwind o FX impact – USD appreciation to
Slide 14: Liquidity
Liquidity Cash & Liquidity 1Q22 1Q21 Highlights Cash balance $128 $60 • Cash at quarter-end of $128m; +3m from year-end HSBC AR Facility/EDC Revolver 12 7 • Cash used in operating activities of $16.9m due to loss Total Liquidity $140 $67 from operations and a build up of inventory and other working
Slide 15: Questions?
Questions? Westport
Slide 16: Selected Quarterly Financial Data
Selected Quarterly Financial Data 1Q20 2Q20 3Q20 4Q20 FY 2020 1Q21 2Q21 3Q21 4Q21 FY 2021 1Q22 Revenue $ 67.2 $ 36.0 $ 65.4 $ 83.9 $ 252.5 $ 76.4 $ 79.0 $ 74.3 $ 82.7 $ 312.4 $ 76.5 OEM 34.2 19.1 37.4 58.8 149.5 42.7 47.4 48.0 57.4 195.5 51.8 IAM 33.0 16.9 28.0 25.1 103.0 33.7 31.6 26.3 25.3 116.9 2
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