Westport Fuel Systems, Inc. · TSX:WPRT
Westport Fuel Systems — Q3 2022 Earnings Presentation
18 slides from Westport Fuel Systems's earnings presentation, Nov 8, 2022
Slide 1: Q3 2022 Results
Q3 2022 Results November 2022
Slide 2: Disclaimer and Forward-Looking Statements
Westport Fuel Systems Disclaimer and Forward-Looking Statements This presentation contains forward-looking statements, including statements regarding revenue 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 3
Slide 4: Resilient Quarter, Positive Signs Emerging
Resilient Quarter, Positive Signs Emerging Revenue Adjusted EBITDA [1] ($ millions) ($ millions) • Revenues of $71.2M, slightly lower then Q3 21 Q3 21 Q3 22 due to challenging headwinds and foreign currency translation from weakening Euro $74.3 $(1.4) • Adjusted EBITDA decreased to a loss of $4.5M •
Slide 5: Strategy
Strategy 1 Drive sustainable growth in our existing markets through a diversified portfolio of technology, products, and services 2 Unlock new and emerging markets through the delivery of cleaner, affordable transportation solutions 3 Drive operational excellence and reputation as a Tier 1 supplier
Slide 6: H2 HPDI Continues To Gain Considerable OEM Interest
H2 HPDI Continues To Gain Considerable OEM Interest H2 HPDI powered truck on Hydrogen Americas H2 HPDI presentation to display at IAA Summit, Washington DC policymakers in Brussels 6 PAGE PAGE 6
Slide 7: Path to Industry Leading CO2 Reductions Available TODAY
Path to Industry Leading CO2 Reductions Available TODAY HPDI with biomethane now and H2 in the future offers the most cost-effective way to reduce emissions from long-haul heavy-duty trucking • EU support for biomethane in transport growing quickly • HPDI with a 100% Biomethane mix achieves 100% Wel
Slide 8: Significant Test Results Announced
Significant Test Results Announced Producing Significant test results from our ongoing H2 HPDI demonstration program with performance and Scania using their newest, state-of-the- emissions results art 13L CBE1 platform exceeding the diesel parent engine • Achieved a 51.5% brake thermal efficiency, e
Slide 9: Fuel Price Advantages Drive Increased Vehicle Registrations
Fuel Price Advantages Drive Increased Vehicle Registrations Positive growth trends through price advantages in key markets • Increasing market share in markets looking for clean, affordable solutions LPG vehicle registrations: CNG filling stations: Government goal of 30% YTD 10,000 by 2030 Nasdaq/TS
Slide 10: Fundamentals Strong Despite Macro Headwinds
Fundamentals Strong Despite Macro Headwinds 74.3 Q3 22 + Sales in our fuel storage, DOEM, + Sales volumes to Eastern Europe, Revenues negatively hydrogen, and electronics businesses especially Poland as well as Algeria, impacted by + Light-duty OEM business sales to OEMs in India - and Peru Sales vo
Slide 11: Adjusted EBITDA Year Over Year
(1) Adjusted EBITDA Year Over Year - Loss of equity + Higher year income due to over year OEM sale of CWI JV gross margins 1 Adjusted earnings before interest, taxes and depreciation is a non-GAAP measure. Please refer to GAAP and NON-GAAP FINANCIAL MEASURES in Westport’s Management Discussion and A
Slide 12: Financial Performance – OEM
Financial Performance – OEM Revenue Gross Margin(1) ($ Millions) ($ Millions) $4.7 $48.0 $3.1 52% -8% $44.1 Q3 21 Q3 22 Q3 21 Q3 22 Revenue • Increased light-duty OEM business sales to OEMs in India • Heavy-duty OEM sales volume decreased by 16% compared to Q3 21 due to fuel price volatility • Growt
Slide 13: Financial Performance – Independent Aftermarket
Financial Performance – Independent Aftermarket Revenue Gross Margin(1) ($ Millions) ($ Millions) 3% -6% $27.1 $7.0 $26.3 $6.6 Q3 21 Q3 22 Q3 21 Q3 22 Q3 21 Q3 22 Revenue • Increased sales to Eastern Europe, especially Poland as well as Algeria, and Peru Gross margin • Higher production input costs
Slide 14: Liquidity
Liquidity Addressing margin improvements, and cash conservation • Pricing action taken with customers • Working to monetize high levels of inventory Cash and Liquidity Debt & Cartesian Royalty Payable ($ Millions) ($ Millions) $7.0 $9.9 $12.3 $5.6 $124.9 $69.4 $86.5 $52.1 Q4 21 Q3 22 Q4 21 Q3 22 Cas
Slide 15: Introducing Incoming CFO, Bill Larkin
Introducing Incoming CFO, Bill Larkin Nasdaq/TSX: WPRT PAGE1515
Slide 16: In Closing…
In Closing… Westport is unlocking new and developing markets by delivering clean and affordable technology • H2 HPDI provides an affordable solution to the market for applications that are hard to decarbonize • Focused on capturing market share in our LPG business, electrification remains expensive
Slide 17: Appendix
Appendix 17 17
Slide 18: Selected Quarterly Data
Selected Quarterly Data Three months ended FY Three months ended FY Three months ended YTD 1Q20 2Q20 3Q20 4Q20 2020 1Q21 2Q21 3Q21 4Q21 2021 1Q22 2Q22 3Q22 2022 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 $71.2 $227.7 OEM 34.2 19.1 37.4 58.8 149.5 42.7 47.4 48 5
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