Westport Fuel Systems, Inc. · NASDAQ:WPRT
Westport Fuel Systems — Q1 2017 Earnings Presentation
18 slides from Westport Fuel Systems's earnings presentation, May 11, 2017
Slide 1: Q1 2017 Conference Call Presentation
Q1 2017 Conference Call Presentation May 11, 2017
Slide 2: Nancy Gougarty, Chief Executive Officer
NANCY GOUGARTY > Chief Executive Officer
Slide 3: Market Leadership
MARKET LEADERSHIP Broad Range of Brands and Products for Diverse Applications BRAND EQUITY IN ALTERNATIVE FUEL SPACE BREADTH OF REACH Passenger Car & Light Truck Medium-Duty Heavy-Duty High Horsepower CNG Refueling Electronics PAGE 3
Slide 4: Industry Experienced Executive Team
INDUSTRY EXPERIENCED EXECUTIVE TEAM Clear Alignment of Goals Ashoka Andrea Thom Jack Jim Achuthan Alghisi Rippon Keaton Arthurs CFO COO, CTO, EVP, EVP, Automotive EVP of Innovation Group Electronics & Industrial Group Engineering Chairman, Cummins Westport Inc. • 20+ years of Senior • Previous COO o
Slide 5: Continuing Operations
CONTINUING OPERATIONS Westport Fuel Systems AUTOMOTIVE CORPORATE & JOINT VENTURES TECHNOLOGY • Systems and components for • Advanced Engineering • Cummins Westport Inc. Passenger cars, Commercial • GDI / PFI technology • Medium to Heavy-Duty vehicles, Trucks engine markets (trucks, • HPDI (High Pres
Slide 6: Automotive Segment
AUTOMOTIVE SEGMENT Advanced Components for Gaseous Fuels CNG & LPG Fuel injection rail filter CNG cylinder valve Electronic controls High pressure CNG lines Filling valve & external CNG filling valve CNG & LPG reducer PAGE 6
Slide 7: Cummins Westport Joint Venture
CUMMINS WESTPORT JOINT VENTURE Global Leader in Spark Ignited Natural Gas Engines > 50%/50% joint venture with Cummins Inc. formed in 2001 > Develops and sells 6 to 12 liter spark-ignited natural gas engines for trucks and buses. Based on Cummins diesel platforms, built in Cummins engine plants > Ov
Slide 8: Westport HPDI Technology
CORPORATE AND TECHNOLOGY SEGMENT WESTPORT™ HPDI TECHNOLOGY HPDI 1.0 HPDI 1.0 Launched Production LAUNCH* Ended 2010 2011 2012 2013 2014 2015 2016 2017 Start HPDI 2.0 Program TRUCK SOLUTION “OEMs will not be able to avoid implementing HPDI technology in order to fulfill greenhouse gas (“GHG”) limit v
Slide 9: Andrea Alghisi, Chief Operating Officer, Automotive
ANDREA ALGHISI > Chief Operating Officer, Automotive
Slide 10: Automotive Segment
AUTOMOTIVE SEGMENT > Solid and improved overall performance, restructuring and realignment efforts yielding results > Additional initiatives underway to drive further A-EBITDA contributions AUTOMOTIVE 3 Months Ended ($ in millions) Total Revenues $56.4 $59.1 Gross Margin $13.8 $12.4 GM% 25.0% 20.1%
Slide 11: Ashoka Achuthan, Chief Financial Officer
ASHOKA ACHUTHAN > Chief Financial Officer
Slide 12: Strong Start to 2017
STRONG START TO 2017 > Cash and cash equivalents of $47.7 million at March 31, 2017 > Closed the sale of APU assets in April, net proceeds of approximately $60 million > In negotiation for the sale of another non-core asset > On track to exceed initial merger synergy targets by the end of 2017 > HPD
Slide 13: Cummins Westport
CUMMINS WESTPORT > Improving overall performance > Q1 gross margins return to more normalized levels > Strong customer interest in the new 2018 engine lineup CWI 3 Months Ended ($ in millions) Total Revenues $70.7 $65.0 Gross Margin $21.8 $16.6 GM% 30.8% 25.6% Research & Development 10.8 9.0 General
Slide 14: SG&A and R&D
SG&A AND R&D1 Ongoing initiatives to reduce expenses costs SG&A and align costs with revenues 3 Months Ended ($ in millions) 3/31/2017 12/31/2016 9/30/2016 Automotive $8.7 $8.9 $7.4 Corporate and Technology $6.5 $5.8 $9.5 Total SG&A $15.2 $14.7 $16.9 A more focused product portfolio, R&D cost R&D to
Slide 15: Quarterly Cash Walk
QUARTERLY CASH WALK $3.8 co” le 7 ($6.4) 4Q:16 Dividends Net credit Restructuring Working Capital Cash used 1Q:17 line capital | expenditures in operations Westport PAGE 15 (uel Systems
Slide 16: Outlook
OUTLOOK > Expect 2017 Automotive segment revenues in the range of $200-$230 million > Industrial segment recorded in Discontinued Operations > Adjusted EBITDA positive in early 2018 > Efforts underway to further strengthen balance sheet PAGE 16
Slide 17: Q&A
Q&A
Slide 18: Cautionary Note
CAUTIONARY NOTE Forward Looking Statements > This presentation contains forward-looking statements, including statements regarding Westport's operating business units and consolidated business, revenue, liquidity and cash usage expectations, future revenues and the timing for achieving positive Adju
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