Westport Fuel Systems, Inc. · TSX:WPRT
Westport Fuel Systems — Q2 2024 Earnings Presentation
17 slides from Westport Fuel Systems's earnings presentation, Aug 14, 2024
Slide 1: Driving Cleaner Performance: Q2 2024 Results
Driving Cleaner Performance Q2 2024 Results August 13, 2024 NASDAQ: WPRT, TSX: WPRT
Slide 2: Disclaimer and Forward-Looking Statements
NASDAQ: WPRT, TSX: WPRT Westport Fuel Systems Disclaimer and Forward-Looking Statements This presentation contains forward-looking statements, including statements regarding, future revenue expectations, future growth in markets, future of our development programs (including those relating to HPDI a
Slide 3: Speaking Today
Speaking Today... NASDAQ: WPRT, TSX: WPRT Dan Sceli Bill Larkin Chief Executive Officer Chief Financial Officer Nasdaq/TSX: WPRT 3
Slide 4: Multiple Improvements as 1H24 Completed
Multiple Improvements as 1H24 Completed NASDAQ: WPRT, TSX: WPRT Highlights: Revenue Adjusted EBITDA[1] (Millions) (Millions) • Q2 24 revenue of $83.4 million, a decrease of 2% over the $85.0 $85.0 million reported in Q2 23 $83.4 • Gross margin of $17.1 million (21% of revenue), as compared to $14.4
Slide 5: Executing Against Our Priorities: HPDI Joint Venture
Executing Against NASDAQ: WPRT, TSX: WPRT Our Priorities 1 Driving Success via the HPDI Joint Venture ✓ Closed HPDI joint venture in June 2024 Accelerating the commercialization of Westport’s HPDI fuel system technology; reducing CO2 emissions from long-haul and off-road applications. 5
Slide 6: Executing Against Our Priorities: Operational Excellence
Executing Against NASDAQ: WPRT, TSX: WPRT Our Priorities ✓ Restructured executive team resulting in annual G&A savings of ~$3 million ✓ Closed amended Westport Minda JV in 2Q24; 2 broader restructuring in India is expected to Improving Operational transition business to generating positive cash flow
Slide 7: Executing Against Our Priorities: Hydrogen-Powered Future
Executing Against NASDAQ: WPRT, TSX: WPRT Our Priorities ✓ Westport’s clean mobility solutions are engineered for a diverse set of zero-emission vehicles (ZEVs) with hydrogen fuel systems 3 and components for both internal Reimagining a Hydrogen- combustion engines (ICE) and fuel cell Powered Future
Slide 8: Celebrating the Power of Partnership
Celebrating the Power of Partnership Event highlighted joint venture's role in global adoption of HPDI fuel system, advancing commercial transportation to smarter, cleaner power with IC engines 8
Slide 9: New Financial Reporting for Operating Segments
New Financial Reporting for Operating Segments Providing enhanced disclosure and transparency. Previous Reporting Segments New Reporting Segments Light-Duty Independent After Market • Light-duty OEM • Independent After Market (IAM) • Delayed OEM • Electronics Original Equipment Manufacturer • Fuel S
Slide 10: Revenue Story: Holding Steady
Revenue Story: Holding Steady Revenue ($ millions) Q2 23 Light-Duty High-Pressure Heavy-Duty OEM Q2 24 Controls and Systems + Increased sales volume in High-Pressure Controls and Systems and Heavy-Duty OEM - Decrease sales volumes in Light-Duty - Results included only two-months of revenue from the
Slide 11: Adjusted EBITDA Year Over Year
Adjusted EBITDA Year Over Year (1) NASDAQ: WPRT, TSX: WPRT Adjusted EBITDA ($ millions) Pluses: + $13.3 million gain on deconsolidation of HPDI business and formation of HPDI JV + $2.7 million improvement in gross margin Minuses: - Increases in research and development expenditures of $0.8 million 1
Slide 12: Financial Performance – Light-Duty
Financial Performance – Light-Duty NASDAQ: WPRT, TSX: WPRT Revenue Gross Margin(1) ($ Millions) ($ Millions) $15.1 Gross margin 1% of revenue 19% Gross margin -6% Gross margin 22% of $73.7 $69.5 14% of $12.7 revenue revenue Gross margin Gross margin 9% of 17% of revenue revenue Q2 23 Q2 24 Q2 23 Q2
Slide 13: Financial Performance – High-Pressure Controls and Systems
Financial Performance NASDAQ: WPRT, TSX: WPRT High-Pressure Controls and Systems Revenue Gross Margin(1) ($ Millions) ($ Millions) $0.7 $0.6 21% 17% Gross margin Grossmargin margin Gross margin $3.4 Gross Gross of 25% margin $2.8 Gross margin 21%ofof 21% of 18% 28% of revenue 20% of revenue revenue
Slide 14: Financial Performance – Heavy-Duty OEM
Financial Performance – Heavy-Duty OEM NASDAQ: WPRT, TSX: WPRT Revenue Gross Margin(1) ($ Millions) ($ Millions) $1.3 $1.1 24% 18% Gross Gross margin margin $10.5 Gross margin 12% Grossof 25% margin of Gross Grossmargin margin revenue $8.5 13% 18% of 28% of revenue 20%ofof revenue revenue revenue re
Slide 15: Liquidity
Liquidity NASDAQ: WPRT, TSX: WPRT Debt Repayments & Inventory Optimization Cash Debt (Millions) (Millions) $43.9 $53.4 $41.5 $44.2 Q1 24 Q2 24 Q1 24 Q2 24 • Cash provided by operating activities was $1.5 million • Net debt repayments of $8.9 million in the period • Proceeds from sale of investments
Slide 16: In Closing…
In Closing… NASDAQ: WPRT, TSX: WPRT Enhancing our Value: 1 Driving Success via our HPDI Joint Venture 2 Improving Operational Excellence and Reducing Costs 3 Reimagining a Hydrogen- Powered Future Delivering practical applications today, to help lead the energy transition in transport 16
Slide 17: Appendix – Recast Historical Segment Results
Appendix – Recast Historical Segment Results NASDAQ: WPRT, TSX: WPRT Historical Segment Results (expressed in millions of U.S. dollars) 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 Three months ended Light-Duty Revenue $62.0 $63.8 $57.5 $64.0 $66.4 $73.7 $60.2 $63.4 $63.2 Gross margin $10.5 $11.6 $1
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