Westport Fuel Systems, Inc. · TSX:WPRT
Westport Fuel Systems — Q2 2022 Earnings Presentation
19 slides from Westport Fuel Systems's earnings presentation, Aug 9, 2022
Slide 1: 2Q22 Financial Results
2Q22 Financial Results August 9, 2022 PAGE 1
Slide 2: Forward-Looking Statements
Westport Fuel Systems Forward-Looking Statements This presentation contains forward-looking statements, including statements regarding revenue and cash usage expectations, future strategic initiatives and future growth, future of our development programs (including those relating to HPDI and hydroge
Slide 3: Speaking Today
Speaking Today… David M. Johnson Richard Orazietti Chief Executive Officer Chief Financial Officer Nasdaq/TSX: WPRT PAGE PAGE 3
Slide 4: Strong Results Despite Significant Macro Headwinds
Strong Results Despite Significant Macro Headwinds Revenue Adjusted EBITDA [1] • Revenue of $80.0M, up 1% despite ($ millions) ($ millions) challenging headwinds & foreign currency +1% translation from weakening Euro $6.2 -169% • Adjusted EBITDA decreased to -$4.3M – margin pressure from supply chai
Slide 5: HPDI Growth Story Driven by Cost Efficiency
HPDI Growth Story Driven by Cost Efficiency HPDI solutions are more High Pressure Direct Injection on Liquefied Biomethane H2 High Pressure Direct Injection H2 Fuel Cell Electric Vehicle cost effective than fuel cells for CO2 abatement • 4x more cost effective More efficient using blue hydrogen HPDI
Slide 6: Introducing H2-HPDI to the Market
Introducing H2-HPDI to the Market Strong feedback and interest shown for H2-HPDI at ACT Expo Showcasing H2-HPDI at IAA Transportation in Hanover, Germany in September Nasdaq/TSX: WPRT PAGE 6
Slide 7: Hydrogen HPDI in Action
Hydrogen HPDI in Action PAGE 7
Slide 8: LNG Pricing Impacts Truck Sales in China
LNG Pricing Impacts Truck Sales in China • HPDI vehicle testing continues in China China Class 8 CNG/LNG Truck Sales China LNG Prices Soar • High LNG prices 30,000 9,000 negatively impact 8,000 market sentiment 25,000 7,000 • Small recovery for 20,000 6,000 Class 8 truck sales Yuan a ton volumes in
Slide 9: LPG Price Advantage Drives LPG Business
LPG Price Advantage Drives LPG Business LPG price advantage FUEL SAVINGS IN KEY MARKETS drives growth in Jan-21 Jun-21 Dec-21 Jan-22 Jun-22 Jul-22 independent aftermarket and light 1.01 1.00 duty OEM 0.95 0.88 • LPG price advantage 0.79 supportive in several of 0.72 0.72 0.70 0.68 our key markets 0.
Slide 10: Major OEMs Offering a Range of CNG Models in India
Major OEMs Offering a Range of CNG Models in India Growing market share in India • 50% increase in sales as compared to Q2 2021 • Significant increase in infrastructure for CNG underway. LNG and H2 on the horizon • More than 4,000 CNG stations in place and nearly 1,000 to be commissioned in the next
Slide 11: Positive Outlook Despite Headwinds
Positive Outlook Despite Headwinds Current headwinds • Industry wide semiconductor chip supply challenges expected to persist • Instability of commodity prices • Volatile global fuel prices • Russia & Ukraine conflict • Foreign exchange pressure • Inflation Long-term outlook remains positive Global
Slide 12: Revenue Growth Despite Macro Headwinds
Revenue Growth Despite Macro Headwinds + $5.1M from acquired fuel storage - Sales volumes in Eastern business (June 2021) Europe due to the ongoing + Light-duty OEM business sales Russia-Ukraine conflict Revenues impacted volumes to OEMs in India - Sales to Africa, which in the + Electronics and hyd
Slide 13: Adjusted EBITDA Year Over Year
Adjusted EBITDA Year Over Year [1] [2] - Sale of interest in - Lower sales + Foreign exchange CWI joint venture in volumes impacted both OEM prior quarter - Increased and IAM segments production input costs from global supply chain & 1 Adjusted earnings before interest, taxes and depreciation is a n
Slide 14: Financial Performance - OEM
Financial Performance - OEM Revenue Gross Margin ($ Millions) ($ Millions) -35% +15% $54.3 $7.2 $4.7 $47.4 Q2 21 Q2 22 Q2 21 Q2 22 • $5.1M from the acquired fuel storage business • Increased light-duty OEM business sales volumes to OEMs in India • Heavy-duty OEM sales volume decreased by 4% compared
Slide 15: Financial Performance – Independent Aftermarket
Financial Performance – Independent Aftermarket Revenue Gross Margin[2] ($ Millions) ($ Millions) -15% -32% $31.6 $8.5 $25.7 $5.8 Q2 21 Q2 22 Q2 21 Q2 22 Q2 21 Q2 22 • Decrease in revenue was primarily driven by lower sales volumes to Eastern Europe, especially Russia, due to the ongoing Russia-Ukra
Slide 16: Liquidity
Liquidity Cash and Liquidity Debt & Cartesian Royalty Payable ($ Millions) ($ Millions) $7.0 $9.9 $12.7 $5.3 $124.9 $55.7 $98.2 $47.9 Q4 21 Q2 22 Q4 21 Q2 22 Cash HSBC AR Facility Debt Cartesian Royalty Payable • Operating cash flow used $33.4M in 1H22 • Debt repayments of $16.4 million in 2022 – Op
Slide 17: In Closing
In Closing • HPDI is the most affordable and available way to reduce C02 in long- haul transport • LPG fuel advantage providing grounding for growth for both IAM and LD OEM business • Our business in India continues to grow alongside the regulatory tailwinds in that market Nasdaq:WPRT / TSX:WPRT PAG
Slide 18: Appendix
Appendix Westport
Slide 19: Selected Quarterly Data
Selected Quarterly Data Six months Three months ended FY Three months ended FY Three months ended ended 1Q20 2Q20 3Q20 4Q20 2020 1Q21 2Q21 3Q21 4Q21 2021 1Q22 2Q22 2Q22 Revenue $ 67.2 $ 36.0 $ 65.4 $ 83.9 $ 252.5 $ 76.4 $ 79.0 $ 74.3 $ 82.7 $ 312.4 $ 76.5 $ 80.0 $ 156.5 OEM 34.2 19.1 37.4 58.8 149.5
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