Westport Fuel Systems, Inc. · TSX:WPRT
Westport Fuel Systems — Q2 2023 Earnings Presentation
14 slides from Westport Fuel Systems's earnings presentation, Aug 9, 2023
Slide 1: Driving Cleaner Performance: Q2 2023 Results
Driving Cleaner Performance Q2 2023 Results August 8, 2023 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 David M. Johnson Bill Larkin Chief Executive Officer Chief Financial Officer Nasdaq/TSX: WPRT 3
Slide 4: Steady Second Quarter
Steady Second Quarter NASDAQ: WPRT, TSX: WPRT Highlights: • Record revenue of $85 million, up 6% over Q2 2022 driven by Delayed Revenue Adjusted EBITDA[1] OEM, electronics products, fuel storage, and IAM, partially offsetting lower ($ millions) ($ millions) sales volumes in India, hydrogen component
Slide 5: Capturing LPG Fuel System Market Share
LPG supply agreements with leading Capturing LPG Fuel System global OEM to begin generating Market Share revenue in late 2023 1 EURO 6 • Production expected to begin in Q4 2023 • Forecasted to generate €38 million in revenue over two years 2 Expanded EURO 7 scope • Production expected to begin in 20
Slide 6: Westport and Volvo share a vision of creating sustainable transport solution
Westport and Volvo share a vision of creating sustainable transport solution Signed a non-binding letter of intent to form a joint venture to accelerate commercialization of Westport’s HPDI fuel system technology and reduce CO2 emissions from long-haul and off-road applications • Westport contribute
Slide 7: Westport and Volvo Join Forces on HPDI as Multiple Solutions Required
Westport and Volvo Join Forces on HPDI as Multiple Solutions Required for Energy Transition in Long-Haul, Heavy-Duty and Off-Road Applications H2 HPDI internal combustion engines will support the energy transition well into the future because HPDI has: Growing interest from OEMs, with Highest power
Slide 8: HPDI is a market leader in fuel efficiency, performance and CO2 reduction
NASDAQ: WPRT, TSX: WPRT HPDI is a market leader in fuel efficiency, performance and CO2 reduction 8
Slide 9: Record Quarterly Revenue Reported
Record Quarterly Revenue Reported OEM IAM + Increased sales volumes in DOEM, electronics, + Increased sales volumes to Africa, Eastern fuel storage businesses Europe and South America - Lower sales to customers in India in the light- duty OEM business - Lower sales volumes to hydrogen customers 9 9
Slide 10: Adjusted EBITDA Year Over Year
(1) Adjusted EBITDA Year Over Year NASDAQ: WPRT, TSX: WPRT (2) + Sales volumes in the DOEM and fuel - Increased sales and storage businesses marketing expenses for + Gross margin in the heavy-duty OEM HPDI trade shows and business exhibitions - Increase of production input cost - Increased corporate
Slide 11: Financial Performance – OEM
Financial Performance – OEM NASDAQ: WPRT, TSX: WPRT Revenue Gross Margin(1) ($ Millions) ($ Millions) $8.4 $54.3 $52.4 $4.7 -3% Gross margin 79% 9% of Gross margin Gross margin revenue Gross margin 14% of 9% of 16% of revenue revenue revenue Q2 22 Q2 23 Q2 22 Q2 23 Revenue • Increase in sales volume
Slide 12: Financial Performance – IAM
Financial Performance – IAM NASDAQ: WPRT, TSX: WPRT Revenue Gross Margin(1) ($ Millions) ($ Millions) $32.6 $5.8 $6.0 $25.7 27% 3% Gross margin Gross Grossmargin margin Gross23% of margin Gross 18% ofof margin 18% revenue 20% of revenue 20%revenue of revenue revenue Q2 22 Q2 23 Q2 22 Q2 23 Revenue •
Slide 13: Liquidity
Liquidity NASDAQ: WPRT, TSX: WPRT Addressing margin improvements and cash conservation Cash Debt & Cartesian Royalty Payable ($ Millions) ($ Millions) $5.8 $72.0 $52.3 $51.6 $46.2 Q1 23 Q2 23 Q1 23 Q2 23 Debt Cartesian Royalty Payable • Capex of $4.5 million in Q2 2023 • Net debt repayments of $15.0
Slide 14: In Closing…
In Closing… NASDAQ: WPRT, TSX: WPRT • Expect to formalize the JV with Volvo in 1H24 to reduce CO2 emissions by utilizing HPDI technology • Light-duty LPG business, both IAM and OEM, are profit drivers, with growth on the horizon • HPDI is on the road and a solution today, saving customers money and
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