Westport Fuel Systems, Inc. · TSX:WPRT
Westport Fuel Systems — Q3 2023 Earnings Presentation
12 slides from Westport Fuel Systems's earnings presentation, Nov 8, 2023
Slide 1: Driving Cleaner Performance – Q3 2023 Earnings Call
Driving Cleaner Performance Q3 2023 Earnings Call November 8, 2023 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, the timing and completion of the joint venture with Volvo, future revenue expectations, timing and production of LPG products
Slide 3: Speaking Today...
Speaking Today... NASDAQ: WPRT, TSX: WPRT Tony Guglielmin Bill Larkin Interim Chief Executive Officer Chief Financial Officer Nasdaq/TSX: WPRT 3
Slide 4: Strategically Significant Third Quarter
Strategically Significant Third Quarter NASDAQ: WPRT, TSX: WPRT Highlights: Revenue Adjusted EBITDA[1] ($ millions) ($ millions) • Signed non-binding letter of intent with Volvo to establish a joint venture to accelerate the commercialization and $77.40 global adoption of Westport's HPDI™ fuel syste
Slide 5: Advancing Strategic Priorities
Advancing Strategic Priorities NASDAQ: WPRT, TSX: WPRT Post-Quarter Highlights • Signed agreement with a leading global provider of equipment for the freight and transit rail industries to adapt our hydrogen HPDI fuel system for use with the rail OEMs engine design. • Two-year H2 HPDI project is exp
Slide 6: HPDI JV Recap and Progress Update
HPDI JV Recap and Progress Update Signed a non-binding letter of intent to form a joint venture to accelerate commercialization of Westport’s HPDI fuel system technology and reduce CO2 emissions from long-haul and off-road applications • Westport contributes HPDI assets and activities • Volvo to acq
Slide 7: Quarterly Revenue Year Over Year
Quarterly Revenue Year Over Year Revenue ($ millions) 8.8 77.4 71.2 -2.6 Q3 22 OEM IAM Q3 23 OEM IAM + Increased sales volumes in DOEM, electronics, - Lower sales volumes to Africa and Europe fuel storage businesses + Higher sales volumes to South America + Additional revenue from the heavy-duty OEM
Slide 8: Adjusted EBITDA Year Over Year
(1) Adjusted EBITDA Year Over Year NASDAQ: WPRT, TSX: WPRT Adjusted EBITDA ($ millions) 1.9 -0.6 -3.0 0.2 -4.5 Q3 22 Equity Income Gross Margin (2) Operating Expenses Q3 23 + Gross margin increases in + Lower R&D expenditures DOEM and fuel storage - Severance costs incurred + Higher margins on in No
Slide 9: Financial Performance – OEM
Financial Performance – OEM NASDAQ: WPRT, TSX: WPRT Revenue Gross Margin(1) ($ Millions) ($ Millions) 20% 66% $52.9 $7.8 $44.1 $4.7 Q3 22 Q3 23 Q3 22 Q3 23 Revenue • Higher sales volumes in the delayed OEM, electronics and fuel storage business • Additional engineering service revenues from the heav
Slide 10: Financial Performance – IAM
Financial Performance – IAM NASDAQ: WPRT, TSX: WPRT Revenue Gross Margin(1) ($ Millions) ($ Millions) -10% -18% $27.1 $6.6margin Gross Gross margin $24.5 Gross $5.4 margin Gross24% marginof Gross 22% ofof margin 18% 20%revenue of 20% revenue of revenue revenue revenue Q3 22 Q3 23 Q3 22 Q3 23 Revenue
Slide 11: Liquidity
Liquidity NASDAQ: WPRT, TSX: WPRT Addressing margin improvements and cash conservation Cash Debt ($ Millions) ($ Millions) 52.3 44 46.2 42.2 Q2 23 Q3 23 Q2 23 Q3 23 • Net cash from operations of $1.1 million Q3 2023 • Net debt repayments of $4.4 million in Q3 2023 • Capex of $4.1 million in Q3 2023
Slide 12: In Closing…
In Closing… NASDAQ: WPRT, TSX: WPRT • Definitive agreements related to HPDI JV with Volvo expected to be completed no later than the end of January 2024, JV expected to close and be operational in Q2 2024 • Light-duty LPG business is a profit drivers, with growth on the horizon • HPDI is on the road
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