Westport Innovations Inc. held a Q2 FY2014 conference call to discuss financial results and business updates. Speakers included the CEO, CFO, and President & COO. The company has invested over $239 million since 2012 to develop natural gas vehicle technologies in partnership with OEMs. These investments have 3-5 year development cycles. Westport is transitioning from an R&D phase to a focused, profitable business and expects consolidated adjusted EBITDA to be positive by the end of 2015. Revenue guidance for 2014 was reaffirmed at $175-185 million.
3. » David Demers, CEO
» Ashoka Achuthan, CFO
» Nancy Gougarty, President & COO
3
Speakers
4. » This presentation contains forward-looking statements that are based on the beliefs of
Westport’s management and reflect Westport’s current expectations. Investors are cautioned
that all forward-looking statements involve risks and uncertainties that could cause actual
results to differ materially from those expressed in these forward-looking statements,
including, without limitation, Westport’s ability to develop viable fuel systems; Westport’s
ability to provide the capital required for research, product development, operations, and
marketing; product development, production and commercial launch delays; changing
environmental regulations; Westport’s ability to attract and retain key personal and business
partners; competition from conventional diesel fuelled engines; and Westport’s ability to
protect its intellectual property. These factors should be considered carefully and investors
should not rely on any forward-looking statements. Investors are encouraged to review
Management’s Discussion and Analysis and the Risk Factors section in Westport’s most
recently filed Annual Information Form and filings with securities regulators for a more
complete discussion of factors that could affect Westport’s future performance. We undertake
no obligation to update or revise any forward-looking statements, whether as a result of new
information, future events or otherwise, except as required by law.
» All figures are in U.S. dollars unless otherwise stated.
4
Forward Looking Statements
7. » Westport has invested
over $239M since 2012
Co-investing with OEMs
to develop a portfolio of
new natural gas vehicle
technologies and related
systems and components
Investments with 3 to 5
year development cycles
from start of development
to product sales
Careful management of
future programs and
capital allocation designed
to deliver high margin
returns
7
Investing in Next Generation Products
Off-Road
9%
Trucking
39%
Automotive
27%
Advanced
Engineering
14%
Capital
Expenditure
11%
Breakdown of Investments
10. 10
Transitioning from R&D Phase
to a Focused, Profitable Business
$(27.8)
$(17.0)
$(30.0)
$(25.0)
$(20.0)
$(15.0)
$(10.0)
$(5.0)
-
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
millions
Average $(24.2)M
CONSOLIDATED BUSINESS TO BE ADJUSTED EBITDA POSITIVE
BY THE END OF 2015
» Contributions from:
Westport’s operating
business units
Share of net income
from the joint ventures
Funding from
development partners
2013 2014 2015
11. » Between $175 million and $185 million for the year
ended December 31, 2014
11
Reaffirms Revenue Guidance
$164
$175
$185
$150
$155
$160
$165
$170
$175
$180
$185
$190
2013 2014
millions
REVENUE