Westport Fuel Systems, Inc. · TSX:WPRT
Westport Fuel Systems — Q1 2023 Earnings Presentation
16 slides from Westport Fuel Systems's earnings presentation, May 9, 2023
Slide 1: Driving Cleaner Performance: Q1 2023 Results
Driving Cleaner Performance Q1 2023 Results May 9, 2023
Slide 2: Disclaimer and Forward-Looking Statements
Westport Fuel Systems Disclaimer and Forward-Looking Statements This presentation contains forward-looking statements, including statements regarding future revenue expectations, future demand for LPG, future growth in markets, future of our development programs (including those relating to HPDI and
Slide 3: Speaking Today
Speaking Today… David M. Johnson Bill Larkin Chief Executive Officer Chief Financial Officer Nasdaq/TSX: WPRT 3
Slide 4: Delivered Strong First Quarter
Delivered Strong First Quarter • Q1 2023 revenues of $82.2 million, up 7% over Q1 2022 driven by Revenue Adjusted EBITDA[1] delayed OEM, fuel storage, hydrogen and electronics products, ($ millions) ($ millions) increased sales volumes of IAM and a positive HPDI $82.2 price adjustment, partially off
Slide 5: Capturing LPG Fuel System Market Share
Capturing LPG Fuel System Market Share Pricing advantage drives continued demand ~35% ~40% Current IAM LPG Current OEM LPG LPG supply agreement with leading European OEM begins generating revenue late 2023 market share market share New OEM supply agreement drives our • Euro 6 deliveries begin in Q4
Slide 6: HPDI remains a market leader in fuel efficiency, performance and CO2 reduction
HPDI remains a market leader in fuel efficiency, performance and CO2 reduction 6
Slide 7: ACT Expo Overview
ACT Expo Overview 7
Slide 8: Demonstrations on two OEM engine platforms show H2 HPDI's performance
Demonstrations on two OEM engine platforms show H2 HPDI’s industry leading performance and efficiency “Application of Westport’s H2 HPDI Fuel System to a Demonstration Truck” – Westport Fuel Systems, Scania, 2023 [1] • 51.5% Brake Thermal Efficiency achieved exceeding the latest next generation dies
Slide 9: Fundamentals persist despite macro headwinds
Fundamentals persist despite macro headwinds + Increased delayed-OEM sales volumes with + Sales volumes to North America, Eastern a key customer Europe, South America + Sales in our fuel storage, hydrogen, and - Sales volumes to Middle East, Africa electronics businesses + HPDI system price increase
Slide 10: Adjusted EBITDA Year Over Year
(1) Adjusted EBITDA Year Over Year - Lower income from + Higher sales volumes - Increased R&D joint ventures across both IAM and spending for H2 HPDI accounted for OEM segments and hydrogen under the equity components method 1 Adjusted earnings before interest, taxes and depreciation is a non-GAAP m
Slide 11: Financial Performance – OEM
Financial Performance – OEM Revenue Gross Margin(1) ($ Millions) ($ Millions) $8.1 $56.3 $51.8 $5.0 62% 9% Gross margin 9% Gross of margin Gross margin revenue 10% of 14% of revenue revenue Q1 22 Q1 23 Q1 22 Q1 23 Revenue • Higher delayed-OEM sales volumes • Growth in electronics, hydrogen component
Slide 12: Financial Performance – Independent Aftermarket
Financial Performance – Independent Aftermarket Revenue Gross Margin(1) ($ Millions) ($ Millions) $25.9 $5.2 $4.9 $24.7 5% 6% Gross margin Gross margin Gross margin 18% of 20% of 20%revenue of revenue revenue Q1 22 Q1 23 Q1 22 Q1 23 Revenue • Increased sales into North America • Increased sales into
Slide 13: Liquidity
Liquidity Addressing margin improvements and cash conservation Cash and Liquidity Debt & Cartesian Royalty Payable ($ Millions) ($ Millions) $5.5 $5.8 $86.2 $53.0 $51.7 $72.0 Q4 22 Q1 23 Q4 22 Q1 23 Cash Debt Cartesian Royalty Payable • $8.6 million used in operations in Q1 2023 • Entered into a set
Slide 14: In Closing…
In Closing… • LPG and Light-Duty businesses are profit drivers, with growth on the horizon • HPDI is on the road and a solution today, saving customers money and helping fleets hit carbon targets • H2 HPDI is the future of the internal combustion for long-haul trucking • Making the necessary financi
Slide 15: Appendix
Appendix 15 15
Slide 16: Selected Quarterly Data
Selected Quarterly Data 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 Analysis for the reconciliation. 16 2 Gross margin is a non-GAAP measure. Please refer to GAAP and N
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