Westport Fuel Systems, Inc. · TSX:WPRT
Westport Fuel Systems — Q1 2024 Earnings Presentation
15 slides from Westport Fuel Systems's earnings presentation, May 9, 2024
Slide 1: Driving Cleaner Performance: Q1 2024 Results
Driving Cleaner Performance Q1 2024 Results May 9, 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 Focused Quarter to Start a New Chapter
A Focused Quarter to Start a New Chapter NASDAQ: WPRT, TSX: WPRT Highlights: Revenue Adjusted EBITDA[1] (Millions) (Millions) • 1Q24 revenue of $77.6 million, a decrease of 6% over the $82.2 $82.2 million reported in 1Q23 • Gross margin of $11.7 million (15% of revenue), as compared to $13.3 million
Slide 5: Executing Against Our Priorities: HPDI Joint Venture
Executing Against NASDAQ: WPRT, TSX: WPRT Our Priorities 1 ü Investment agreements signed in Q1 2024 Driving Success via the • JV is subject to certain closing conditions, HPDI Joint Venture including regulatory and government Accelerating the commercialization of Westport’s approvals and is expecte
Slide 6: Executing Against Our Priorities: Operational Excellence
Executing Against NASDAQ: WPRT, TSX: WPRT Our Priorities ü Restructured executive team resulting in annual G&A savings of ~$3 million ü 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 ü 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: Why Zero-Emission Vehicle Classification is Important
Why Zero- Emission Vehicle Classification is Important 8 NASDAQ: WPRT, TSX: WPRT
Slide 9: HPDI Systems Giving New Life to the Internal Combustion Engine
HPDI Systems Giving New Life to NASDAQ: WPRT, TSX: WPRT the Internal Combustion Engine Update on HPDI projects 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 Global Heavy Tru
Slide 10: Revenue Story: OEM Headwind & IAM Tailwind
Revenue Story: OEM Headwind & IAM Tailwind Revenue (Millions) $82.2 $2.4 $77.6 -$7.0 Q1 23 OEM IAM Q1 24 OEM IAM - Lower sales in DOEM, fuel storage, and light- + Increased sales to North America, Western and heavy-duty OEM businesses Europe and South America + Higher engineering service revenues an
Slide 11: Adjusted EBITDA Year Over Year
(1) Adjusted EBITDA Year Over Year NASDAQ: WPRT, TSX: WPRT Adjusted EBITDA ($ millions) -$4.5 -$0.1 -$1.6 -$0.4 -$6.6 Q1 23 Equity Income Gross Margin Operating Expenses Q1 24 Gross Margin Operating Expenses + Higher sales volumes and improvement in sales mix to + Lower SG&A expenses in both OEM and
Slide 12: Financial Performance – OEM
Financial Performance – OEM NASDAQ: WPRT, TSX: WPRT Revenue Gross Margin(1) ($ Millions) ($ Millions) $8.1 Gross margin 1% of revenue $4.5 $56.3 -12% Gross margin -44% $49.3 14% of revenue Gross margin 9% of revenue Q1 23 Q1 24 Q1 23 Q1 24 Revenue • Decrease in sales in our DOEM, fuel storage, and l
Slide 13: Financial Performance – IAM
Financial Performance – IAM NASDAQ: WPRT, TSX: WPRT Revenue Gross Margin(1) ($ Millions) ($ Millions) $7.2 $5.2 38% 9% $28.3 Gross margin $25.9 Gross margin 25% Gross of margin Gross margin 18% of 28% of revenue 20% of revenue revenue revenue Q1 23 Q1 24 Q1 23 Q1 24 Revenue • Increased sales to Nort
Slide 14: Liquidity
Liquidity NASDAQ: WPRT, TSX: WPRT Debt Repayments & Inventory Optimization Cash Debt (Millions) (Millions) $54.9 $60.2 $43.9 $53.4 Q4 23 Q1 24 Q4 23 Q1 24 • Cash provided by operating activities was $0.1 million • Net debt repayments of $5.8 million in the period compared to net cash used of $9.3 mi
Slide 15: 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 15
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