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Westport Innovations Inc.
July 31, 2014
Q2 FY2014
CONFERENCE CALL
stock symbols market capitalization
TSX NASDAQ CAD USD
WPT WPRT $1.2 billion $1.1 billion
DARREN SEED
VP, Capital Markets & Communications
2
» David Demers, CEO
» Ashoka Achuthan, CFO
» Nancy Gougarty, President & COO
3
Speakers
» 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
DAVID DEMERS
CEO
5
$(8.9)
$(1.6)
$1.0
$(16.0)
$(14.0)
$(12.0)
$(10.0)
$(8.0)
$(6.0)
$(4.0)
$(2.0)
-
2.00
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
millions
6
Achieved Operating Business Units
Adjusted EBITDA Goal Ahead of Plan
Average $(9.4)M
2012 2013 2014
OPERATING BUSINESS UNITS ADJUSTED EBITDA
» 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
ASHOKA ACHUTHAN
CFO
8
$(8.9)
$(1.6)
$1.0
$(16.0)
$(14.0)
$(12.0)
$(10.0)
$(8.0)
$(6.0)
$(4.0)
$(2.0)
-
2.00
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
millions
9
Achieved Operating Business Units
Adjusted EBITDA Goal Ahead of Plan
Average $(9.4)M
2012 2013 2014
OPERATING BUSINESS UNITS ADJUSTED EBITDA
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
» 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
NANCY GOUGARTY
President and COO
12
Q&A
13

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Westport FY2014 Q2 Financial Earnings Call

  • 1. Westport Innovations Inc. July 31, 2014 Q2 FY2014 CONFERENCE CALL stock symbols market capitalization TSX NASDAQ CAD USD WPT WPRT $1.2 billion $1.1 billion
  • 2. DARREN SEED VP, Capital Markets & Communications 2
  • 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
  • 6. $(8.9) $(1.6) $1.0 $(16.0) $(14.0) $(12.0) $(10.0) $(8.0) $(6.0) $(4.0) $(2.0) - 2.00 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 millions 6 Achieved Operating Business Units Adjusted EBITDA Goal Ahead of Plan Average $(9.4)M 2012 2013 2014 OPERATING BUSINESS UNITS ADJUSTED EBITDA
  • 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
  • 9. $(8.9) $(1.6) $1.0 $(16.0) $(14.0) $(12.0) $(10.0) $(8.0) $(6.0) $(4.0) $(2.0) - 2.00 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 millions 9 Achieved Operating Business Units Adjusted EBITDA Goal Ahead of Plan Average $(9.4)M 2012 2013 2014 OPERATING BUSINESS UNITS ADJUSTED EBITDA
  • 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