Westport Fuel Systems, Inc. · TSX:WPRT
Westport Fuel Systems — Q4 2023 Earnings Presentation
15 slides from Westport Fuel Systems's earnings presentation, Mar 26, 2024
Slide 1: Driving Cleaner Performance: Q4 & Full Year 2023 Results
Driving Cleaner Performance Q4 & Full Year 2023 Results March 25, 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, 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 Dan Sceli Bill Larkin Chief Executive Officer Chief Financial Officer Nasdaq/TSX: WPRT 3
Slide 4: A Transformative Year
A Transformative Year NASDAQ: WPRT, TSX: WPRT Highlights: Revenue Adjusted EBITDA[1] (Millions) (Millions) $331.8 • Record 2023 revenue of $332 million, up 9% over 2022. • Gross margin of $48.9 million (15% of revenue), compared to $36.2 million in the prior year (12% of revenue). • Improved Adj. EB
Slide 5: Enhancing our Value
Enhancing our Value NASDAQ: WPRT, TSX: WPRT Near-, medium- and long-term priorities: 1 Driving Success via our HPDI Joint Venture 2 Improving Operational Excellence and Reducing Costs 3 Reimagining a Hydrogen-Powered Future 5
Slide 6: Compelling Macro Environment
Compelling Macro Environment The alternative fuel industry is becoming more dynamic, with increased investments and support indicated for the future. Cost of producing 1,400 hydrogen What is next for hydrogen expected to pipeline projects hydrogen fuel? drop to $2.5 - $4.0 announced per kg by 2030 U
Slide 7: HPDI Systems Giving New Life to the Internal Combustion Engine
HPDI Systems Giving New Life to NASDAQ: WPRT, TSX: WPRT the Internal Combustion Engine Recently announced HPDI applications and/or demonstrations: Hydrogen HPDI Project with Methanol HPDI Project with a $33 Million Development Program a Leading Global Locomotive Leading Global Supplier of with a Glo
Slide 8: HPDI JV Update
HPDI JV Update Accelerating the commercialization of Westport’s HPDI fuel system technology; reducing CO2 emissions from long-haul and off-road applications • Investment agreements signed in Q1 2024 • Westport contributes HPDI assets and activities • Volvo Group to acquire 45% interest in the JV fo
Slide 9: Growing Revenues & Improvements In-Progress
Growing Revenues & Improvements In-Progress Q4 22 OEM IAM Q4 23 OEM IAM + Higher sales volumes in light duty OEM and + Increased sales volumes to Europe electronics businesses - Lower sales volumes to Africa and South + Higher engineering service revenue from the America heavy-duty OEM business - Lo
Slide 10: Adjusted EBITDA Year Over Year
(1) Adjusted EBITDA Year Over Year NASDAQ: WPRT, TSX: WPRT Adjusted EBITDA (Millions) $3.4 $0.1 $0.4 -$1.0 -$10.0 -$12.9 Q4 22 Equity Income Gross Margin Operating (2) Expenses Imp. of L-T Investment Q4 23 Gross Margin Operating Expenses + Higher volumes in the light duty OEM and electronics busines
Slide 11: Financial Performance – OEM
Financial Performance – OEM NASDAQ: WPRT, TSX: WPRT Revenue Gross Margin(1) (Millions) (Millions) Gross margin 1% of revenue 28% 200% $61.2 Gross margin $0.8 $47.8 (2)% of revenue -$0.8 Q4 22 Q4 23 Q4 22 Q4 23 Revenue • Increased sales volumes in the light-duty OEM and electronics businesses • Highe
Slide 12: Financial Performance – IAM
Financial Performance – IAM NASDAQ: WPRT, TSX: WPRT Revenue Gross Margin(1) (Millions) (Millions) $7.2 -14% $5.4 33% $30.2 Gross margin Gross margin $26.0 18% of 28% of revenue revenue Q4 22 Q4 23 Q4 22 Q4 23 Revenue • Higher sales volumes to Europe • Lower sales to Africa and South America In addit
Slide 13: Significant Improvement in Net Cash Used in Operations
Significant Improvement in Net Cash Used in Operations NASDAQ: WPRT, TSX: WPRT Net Cash Used in Operations (Millions) FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 -$15.7 -$13.2 -$27.4 -$31.6 -$35.1 -$43.8 -$47.5 -$69.1 -$80.4 Demonstrated improvement in net- cash used in operations over the las
Slide 14: Liquidity
Liquidity NASDAQ: WPRT, TSX: WPRT Benefiting from gross margin improvements while prioritizing cash conservation Cash Debt (Millions) (Millions) $54.9 $60.2 $44.0 $42.2 Q3 23 Q4 23 Q3 23 Q4 23 • Net cash used in operations of $13.2 million in 2023 • Added $11.5 million of new term loans in 2023 • I
Slide 15: In Closing…
In Closing… NASDAQ: WPRT, TSX: WPRT • Applying operational discipline and financial optimizations now to achieve sustainable growth and improved profitability • Well-positioned within a bullish macro environment; the alternative fuels industry is becoming more dynamic with higher levels of investmen
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