Investor Presentation · Macro Trends Driving Rapid Change • CNG and LNG refuelling infrastructure ... Mexico 350 Japan 340 China 240 USA 210 LPG Vehicles in Service (in thousands)

November 15, 2020

Investor Presentation

This presentation is being issued for informational purposes only, is not intended to provide the basis for any credit or other evaluation and does not form part of any offer or invitation to sell or issue any securities or any solicitation of any offer to purchase or subscribe for any securities. This presentation, in whole or in part, shall not form the basis for any contract or investment decision with respect to Westport Fuel Systems and should not be relied on in connection with any such contract or decision. No reliance should be placed on the accuracy or completeness of the information contained in this presentation. Westport Fuel Systems has not independently verified any data from third party sources referred to in this presentation.

This presentation contains forward-looking statements, including statements regarding Westport Fuel Systems’ business, revenue, liquidity and cash usage expectations, future of our development programs, future sales of products and gross margin, the demand for and future availability of our products, the growth rate for various business segments, the costs of various competing technologies, the future success of our business and technology strategies, social and regulatory environments, the performance and competitiveness of Westport Fuel Systems products and expansion of product coverage and future market opportunities. These statements are neither promises nor guarantees, but involve known and unknown risks and uncertainties and are based on both the views of management and assumptions that may cause our actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activities, performance or achievements expressed in or implied by these forward looking statements. These risks, uncertainties and assumptions include those related to COVID-19, it’s duration, effects and government responses thereto, the general economy, solvency, governmental policies and regulation as well as other risk factors and assumptions that may affect our actual results, performance or achievements or financial position discussed in our most recent Annual Information Form and other filings with securities regulators. In addition, the effects and the impact of the COVID-19 outbreak, are unknown at this time and could cause actual results to differ materially from the forward-looking statements contained herein. Readers should not place undue reliance on any such forward-looking statements, which speak only as of the date they were made. We disclaim any obligation to publicly update or revise such statements to reflect any change in our expectations or in events, conditions or circumstances on which any such statements may be based, or that may affect the likelihood that actual results will differ from those set forth in these forward looking statements except as required by National Instrument 51-102. The contents of any website, RSS feed or twitter account referenced in this presentation are not incorporated by reference herein.

This communication is not intended to and does not constitute an advertisement, an offer to sell or the solicitation of an offer to subscribe for or buy or an invitation to purchase or subscribe for any securities or the solicitation of any vote in any jurisdiction pursuant to the proposed transactions or otherwise, nor shall there be any sale, issuance or transfer of securities in any jurisdiction in contravention of applicable law. No offer of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the United States Securities Act of 1933, as amended. Subject to certain exceptions to be approved by the relevant regulators or certain facts to be ascertained, no public offer will be made directly or indirectly, in or into any jurisdiction where to do so would constitute a violation of the laws of such jurisdiction, or by use of the mail or by any means or instrumentality (including without limitation, facsimile transmission, telephone and the internet) of interstate or foreign commerce, or any facility of a national securities exchange, of any such jurisdiction. No securities commission or similar authority of the United States, Canada, or any other jurisdiction has reviewed or in any way passed upon this document or the merits of the securities described herein, and any representation to the contrary is an offense.

Westport Fuel SystemsForward Looking Statements

Nasdaq:WPRT / TSX:WPRT

Why invest? Premier technology position and

patent portfolio in clean, gaseous fuel systems and components

Our solutions deliver performance, fuel efficiency and economic benefits while meeting ever more stringent emissions standards to address global climate challenges

Recognized global brands and products

Growing market share for a diverse range of fuel system applications and markets


Westport Fuel Systems at a Glance


Renewable Alternative Fuels

>100 Global Distributors

Tier 1 Automotive Supplier

Manufacturing 7 Global Locations

70 Countries (Sales)

1,400 Patents &

Applications

• Components and complete systems

• Light-duty applications –vapor and liquid LPG

• Monofuel, bi-fuel, dual fuel solutions

• The most commonly used alternative fuel in the world

Alternative Fuel Capabilities

CompressedNatural Gas

Liquefied Petroleum Gas / Propane / Autogas

LiquefiedNatural Gas

Hydrogen

All Available as Renewable FuelsSubstitute for fossil-based fuels

Broad Range of Products that Deliver Emission Reductions

• Components and complete systems

• Light- and medium-duty applications

• Monofuel, bi-fuel, dual fuel solutions

• Complete systems• Heavy-duty and high

horsepower applications

• Monofuel and dual fuel solutions

• High and low pressure components

• Light- to heavy-duty and industrial applications

• Hydrogen/CNG blends or pure hydrogen

LPG CNG LNG H2


• Pioneer in H2 components supplied under GFI brand

• Full portfolio of H2 components

• 350 bar pressure: > 40% market share for tank valves

• 700 bar pressure: market shifting in this direction

• MD/HD/Bus/Industrial primary segments; automotive in some countries

Hydrogen Capabilities

Tank valve

Pressure Relief Device (PRD) tank end plug Remote PRD

High pressure regulator

Pressure Control Module (PCM); Low pressure regulator

Filling valve (pending)


Hydrogen Development Pathway

Already participate across all transportation application and sell components to Tier 1 suppliers

Optionality for another cost-competitive pathway to reduce CO2emissions on a proven ICE platform

Testing to commence Q1 2021


Performance Highlights: Executing on our Strategy

• 2019 Transportation revenue of $305M• Growth mainly due to HPDI ramp in Europe and development revenues• Independent Aftermarket generated an increase of $5.8M

• Tripled HPDI volume in Europe in 2019, continued growth trajectory through 2021• HPDI 2.0 certified with Weichai Westport JV, commercial launch in China

expected 2021• HPDI 2.0 is the only commercially-available technology that fully and affordably

responds to European CO2 regulations for trucks • Potential for net-zero carbon for heavy-duty trucking with HPDI and renewable gas

Deliver Sustained Growth

Accelerate HPDI Commercialization

Align Cost Structure with Revenue to Improve Cash Flow & Operating Results


• 2019 net income from continuing operations up $41M over 2018 and $62M over 2017

• First full year of positive EBITDA of $24.9M and adjusted EBITDA of $28.4M• Significant YoY improvement in liquidity and cash flow

Macro Trends Driving Rapid Change

• CNG and LNG refuelling infrastructure expanding rapidly across Europe, China and India.

• The “ready now” alternative fuel

• Shell building 50 carbon neutral LNG stations in Germany

• UPS purchases 170 million DGE of RNG

• Deploy production solutions, not demonstrations

• Fleet and customer demand for lower-carbon fuels

• Well-to-wheel analysis of fuel impacts needed

Stringent Regulatory Frameworks

Demand for Clean, Affordable Transport

Sustainability Leadership and Differentiation

Renewable Gas for Transport at Scale

Refuelling Infrastructure Build-Out


• Population growth and economic development

• Urban air quality concerns

• Affordability required to achieve scale

• European CO2• HD: -15% / -30%• LD: -33% / -50%

• China VI • India BS VI • Increased anti-diesel

sentiment


Stringent Regulatory Frameworks Driving a Real-Time Market Response

HPDI Delivers CO2 Emission Reductions Now

* Varies by vehicle class and application

• HPDI 2.0 reduces CO2 more than o The 2025 EU requirement with Fossil LNGo The 2030 EU requirement with just 20% RNG

• Penalty for non-compliance in EU is €4,250 per gram/ton-km starting in 2025 o Penalty up to €38,000 per truck

• Preserves substantial OEM investments• Purchase incentives up to €20,000 for LNG trucks

make already compelling economics more attractive

Europe (2019 baseline):

-15% CO2 required by 2025-30% CO2 required by 2030

United States:

- Up to 25%* CO2 reductionfrom 2017 through 2027

Fossil LNG

40% Biomethane

-20%

-55%


The only commercially viable, cost-competitive HD technology solution available today to meet EU regulations

• EU represents ~ 70% of our sales

• LNG vehicle registrations and infrastructure continue to grow

• Biomethane makes LNG supply carbon neutral


Natural Gas Offers OEMs a Compliance Pathway for Europe’s Light-Duty Emission Standards

Source: https://www.theicct.org/sites/default/files/publications/EU-LCV-CO2-2030_ICCTupdate_20190123.pdfand https://www.eea.europa.eu/highlights/average-co2-emissions-from-new

The EU’s stringent regulations for passenger cars/vans requires a ~33% reduction in CO2 emissions in 2025 and ~50% in 2030 compared to 2018.

Penalties are set at €95 for each g/km above the target from 2025.

Collectively, the industry trajectory is 20g/km over the target, which would result in an average penalty of €1,900 per vehicle.

Average historical CO2 emission value and adopted CO2 standards for new passenger cars in the EU (2019)

https://www.theicct.org/sites/default/files/publications/EU-LCV-CO2-2030_ICCTupdate_20190123.pdfhttps://www.eea.europa.eu/highlights/average-co2-emissions-from-new


Competitive Total Cost of Ownership and Emission Reductions

Total Cost of Ownership and Emission Reductions


The actual payback period is dependent upon vehicle transaction prices, annual distance traveled, fuel prices and the impact of taxes and incentives. All of these factors can vary over time and between jurisdictions.

Passenger Cars Heavy-Duty TrucksPetrol LPG CNG Diesel HPDI

LNGIncremental price per vehicle €1,000 €1,500 €40,000

Fuel cost (€/litre or kg) €1.50 €0.65 €0.95* €1.36 €0.95*

Annual distance (km) 20,000 20,000 20,000 120,000 120,000Fuel consumption (km/l or kg)** 12 11 21 3.3 4.8Annual fuel cost €2,500 €1,200 €900 €49,000 €23,900

Annual Fuel Cost Savings €1,300 €1,600 €25,100Payback (months) 9 11 19

CO2 Emission Reductions (%)*** ~20% ~25% ~20%

FOR ILLUSTRATIVE PURPOSES ONLY* Euro 0.95/kg = 0.684 Euro/m3

** Average European car*** Emission reductions greater with blends of renewable gasFuel prices as of 11/19

• Regulation and total cost of ownership will drive growth

• Same torque and efficiency as diesel engine with reduced CO2 emissions

• No change to engine architecture

• Minimal change to vehicle architecture


HPDI 2.0TM – Commercially Available and Viable Now

Long Haul HD Truck Application DieselWestport

HPDI 2.0™

Battery Electric

Hydrogen FCV

Meet EU 2025/2030 requirements? X Meet customer requirements?• Range, payload, performance, durability• Operations, refuel/recharge time

X X

Refueling Infrastructure? X X X

Commercially available and viable? X X

Total Cost of Operation Baseline Lower Higher Higher

Future Heavy-Duty Transportation Fuel and Technology Mix

Fuel SystemFuel

Storage Size

(cubic feet)

Fuel + Storage Weight

(pounds)

Propulsion System

Cost(approximate)

Daily Fueling

Time (minutes)

DailyFuelCost

(US West Coast)

SI CNG 5X +550 +$40,000 +5 -$20HPDI 3X +700 +$50,000 Same -$50H2 Fuel Cell 6X +950 +$110,000 +10 +$100

Battery Electric 15X +17,500 +$300,000 +70 (@ 700kW)+470 (@ 120kW) -$70

Difference Compared to DieselHeavy Duty Truck, 400 mile daily range @ current costs and technologies:

For long-haul commercial vehicle applications which require extended range, battery electric and fuel cell technologies are not commercially available, nor economically viable.

Information based on latest estimates from multiple industry sources and may vary



Clean, Market-Ready, and Sustainable Transportation at Scale

Global Overview of Natural Gas and LPG Vehicles

• 55 million natural gas and LPG vehicles are currently in service, with about 1.5 million new vehicles or conversions sold annually


Asia-Pacific20,474

Latin America5,485

Europe 2,063Africa 295 North America

225

Natural Gas Vehicles in Service(in thousands)

Turkey 6,100

Russia 4,500

Poland 4,200Korea 3,500

Italy 3,000

Ukraine 2,400

Thailand 1,600Australia 700

Mexico 350 Japan 340 China 240USA 210

LPG Vehicles in Service(in thousands)

Source: NGV Global December 31, 2019 Source: World LPG Association 2018 Annual Report, WFS analysisTotal: 28.5 million Total: 27.1 million


• Class 7 and 8 HD natural gas vehicles offered by 40 OEMs

• The majority of HD natural gas trucks are powered by LNG

• LNG costs ~35 to 55% less than diesel

• 10,500 LNG stations with 12,000 expected by the end of 2020

• WWI JV received certification of HPDI-equipped engine; next step is vehicle certification by OEMs

China: World’s Largest Natural Gas Truck Market

Natural Gas Trucks in Operation in China (2009 – 2019)

2 2 537 50

67

150

225

303

0

50

100

150

200

250

300

350

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Natural Gas Trucks

(‘000

s Un

its)

Source: PSR Database and WFS Analysis (2019)


• LNG fueling infrastructure grew 90% since 2017

• 330+ LNG stations spanning 21 countries

• CNG fueling infrastructure grew 10% in 2019

• 3,800 CNG stations with ten countries having more than 100 CNG stations

Fuel Availability Drives Scale: Europe Case Study

Source: NGV Europe (2020) Available at https://www.ngva.eu/

https://www.ngva.eu/


LNG for Heavy-Duty Trucking Scaling in Europe

200 1,0001,500

4,000

7,000

11,000

0

2,000

4,000

6,000

8,000

10,000

12,000

2012 2013 2014 2015 2016 2017 2018 2019 2020

LNG trucks

Heavy-Duty Natural Gas Trucks >400hp in Operation in Europe

Source: PSR (202) and Analysis by WFS

HPDI 2.0 Development &Supply Agreement (China)

2014 2015 2016 2017 2018 2019 2020

HPDI 2.0 Launched (Europe)

Start HPDI 2.0 Program

• LNG truck registrations increased 175% in 2019

• CNG vehicle registrations increased 40% over 2017

Source: NGV Europe (2020) Available at https://www.ngva.eu/

• Four engines >400 hp

• Three OEMs • Commercially

available in Europe

https://www.ngva.eu/

Can We Make Road Transport Carbon Neutral?


With zero net-carbon biomethane and a fossil gas BLEND, there is enough renewable gas feedstock to power 100% of the EU 28 truck energy demand in 2030

Source: WFS Analysis (2019) presented to SAE International with estimates based on CARB LCFS averages and GTI data sources

https://ww3.arb.ca.gov/fuels/lcfs/fuelpathways/pathwaytable.htmhttps://www.gti.energy/wp-content/uploads/2019/02/Low-Carbon-Renewable-Natural-Gas-RNG-from-Wood-Wastes-Final-Report-Feb2019.pdf


3Q20 Results

3Q20 Headline Financial Results

Revenues $65.4 million Q-o-Q sales increased 82%

Positive Net Income $0.8 million

Liquidity Improved: Cash Balance increased by $17 million to $46.3 million


Financial Highlights – 3Q20 v 3Q19


• Lower revenues due to the pandemic’s impact on IAM and OEM LD sales. Sales showed progressive recovery from the first half of the year

• Lower gross margin due to lower engineering services, lower IAM & non-HD OEM sales, partially offset by an increase in HPDI sales volumes

• Net income benefited from government wage subsidies of $1.2M and a $2.3M unrealized foreign exchange gain.

($ millions, except income per share) 3Q20 3Q19 $ O/(U)

Revenue 65.4$ 75.4$ (10.0)$ Cost of revenue 55.4 57.5 (2.1)Gross Margin 10.0 17.9 (7.9)Gross Margin - % 15.3% 23.7% (8.4%) Income from equity investments 4.6 5.4 (0.8)Net income for the period 0.8 5.0 (4.2)EBITDA 4.9 11.7 (6.8)Adjusted EBITDA 4.0 9.4 (5.4)Income per share 0.01 0.04 (0.03)

segment 3Q20

Three Months Ended March 31, 20202Q203Q20YTD 20

RevenueEBITDADepreciation & AmortizationEquity IncomeRevenueOperating Income (loss)Depreciation & AmortizationEquity IncomeRevenueOperating Income (loss)Depreciation & AmortizationEquity IncomeRevenueOperating Income (loss)Depreciation & AmortizationEquity Income

OEM$ 34,272$ (12,625)$ 1,847$ -OEM$ 19.1$ 1.1$ 2.1$ (0.1)OEM$ 37.4$ (4.8)$ 2.1$ (0.3)OEM$ 90.8$ (18.3)$ 6.0$ (0.3)

IAM32,9516,2201,461-IAM16.9(1.2)1.2-IAM28.01.71.3-IAM77.85.34.0-

Corporate-(4,732)61-Corporate-1.80.14.2Corporate-0.00.14.9Corporate-(8.3)0.214.4

CWI76,66813,552625,304CWI - 50%33.25.30.0-CWI - 50%42.26.20.0-CWI - 50%113.718.30.1-

Total Segment143,8912,4143,4315,304Total Segment69.27.03.44.1Total Segment107.63.13.44.6Total Segment282.3(3.0)10.314.1

Less: Equity Investees(76,668)(13,552)(62)-Less:CWI - 50%(33.2)(5.3)(0.0)-Less:CWI - 50%(42.2)(6.2)(0.0)-Less:CWI - 50%(113.7)(18.3)(0.1)-

Total Consolidated$ 67,223$ (11,138)$ 3,369$ 5,304Total Consolidated$ 36.0$ 1.7$ 3.4$ 4.1Total Consolidated$ 65.4$ (3.1)$ 3.4$ 4.6Total Consolidated$ 168.6$ (21.3)$ 10.2$ 14.1



OEM$ 39,011$ 71$ 2,812$ -OEM$ 44.8$ (3.0)$ 2.6$ 0.0OEM$ 36.2$ (0.9)$ 2.2$ 0.0OEM$ 120.0$ (6.6)$ 7.6$ 0.1

IAM34,1803,6821,439-IAM37.63.51.3-IAM39.24.01.9-IAM111.99.64.7-

Corporate-46979-Corporate-(6.4)0.15.9Corporate-(4.3)0.15.4Corporate-(18.9)0.219.8

CWI92,25820,0811528,602CWI - 50%42.07.8(0.1)-CWI - 50%41.56.60.0-CWI - 50%129.724.20.0-

Total Segment165,44924,3034,4828,602Total Segment124.41.93.95.9Total Segment116.95.44.25.4Total Segment361.68.312.519.9

Less: Equity Investees(92,258)(20,081)(152)-Less:CWI - 50%(42.0)(7.8)0.1-Less:CWI - 50%(41.5)(6.6)(0.0)-Less:CWI - 50%(129.7)(24.2)(0.0)-

Total Consolidated$ 73,191$ 4,222$ 4,330$ 8,602Total Consolidated$ 82.4$ (5.9)$ 4.0$ 5.9Total Consolidated$ 75.4$ (1.2)$ 4.2$ 5.4Total Consolidated$ 231.9$ (15.9)$ 12.5$ 19.9

Discontinued Operations$ -$ (0.2)$ -$ -

segment 2Q20

Three Months Ended March 31, 20202Q20YTD 20

RevenueEBITDADepreciation & AmortizationEquity IncomeRevenueOperating Income (loss)Depreciation & AmortizationEquity IncomeRevenueOperating Income (loss)Depreciation & AmortizationEquity Income

OEM$ 34,272$ (12,625)$ 1,847$ -OEM$ 19.1$ 1.1$ 2.1$ (0.1)OEM$ 53.4$ (13.4)$ 4.0$ -

IAM32,9516,2201,461-IAM16.9(1.2)1.2-IAM49.83.62.6-

Corporate-(4,732)61-Corporate-1.80.14.2Corporate-(8.3)0.19.5

CWI76,66813,552625,304CWI - 50%33.25.30.0-CWI - 50%71.612.10.1-

Total Segment143,8912,4143,4315,304Total Segment69.27.03.44.1Total Segment174.8(6.0)6.89.5

Less: Equity Investees(76,668)(13,552)(62)-Less:CWI - 50%(33.2)(5.3)(0.0)-Less:CWI - 50%(71.6)(12.1)(0.1)-

Total Consolidated$ 67,223$ (11,138)$ 3,369$ 5,304Total Consolidated$ 36.0$ 1.7$ 3.4$ 4.1Total Consolidated$ 103.2$ (18.1)$ 6.7$ 9.5



OEM$ 39,011$ 71$ 2,812$ -OEM$ 44.8$ (3.0)$ 2.6$ 0.0OEM$ 83.9$ (5.7)$ 5.4$ -

IAM34,1803,6821,439-IAM37.63.51.3-IAM71.75.72.8-

Corporate-46979-Corporate-(6.4)0.15.9Corporate-(14.6)0.114.5

CWI92,25820,0811528,602CWI - 50%42.07.8(0.1)-CWI - 50%88.117.6--

Total Segment165,44924,3034,4828,602Total Segment124.41.93.95.9Total Segment243.73.08.314.5

Less: Equity Investees(92,258)(20,081)(152)-Less:CWI - 50%(42.0)(7.8)0.1-Less:CWI - 50%(88.1)(17.6)--

Total Consolidated$ 73,191$ 4,222$ 4,330$ 8,602Total Consolidated$ 82.4$ (5.9)$ 4.0$ 5.9Total Consolidated$ 155.6$ (14.6)$ 8.3$ 14.5


segment 1Q20

Three Months Ended March 31, 20201Q20

RevenueEBITDADepreciation & AmortizationEquity IncomeRevenueOperating Income (loss)Depreciation & AmortizationEquity Income

OEM$ 34,272$ (12,625)$ 1,847$ -OEM$ 34.2$ (14.5)$ 1.8$ 0.1

IAM32,9516,2201,461-IAM33.04.81.5-

Corporate-(4,732)61-Corporate-(10.2)0.15.3

CWI76,66813,552625,304CWI - 50%38.36.7--

Total Segment143,8912,4143,4315,304Total Segment105.5(13.2)3.45.4

Less: Equity Investees(76,668)(13,552)(62)-Less:CWI - 50%(38.3)(6.7)--

Total Consolidated$ 67,223$ (11,138)$ 3,369$ 5,304Total Consolidated$ 67.2$ (19.9)$ 3.4$ 5.4



OEM$ 39,011$ 71$ 2,812$ -OEM$ 39.0$ (2.7)$ 2.8$ 0.1

IAM34,1803,6821,439-IAM34.22.21.4-

Corporate-46979-Corporate-(8.3)0.18.6

CWI92,25820,0811528,602CWI - 50%46.19.90.1-

Total Segment165,44924,3034,4828,602Total Segment119.31.14.48.7

Less: Equity Investees(92,258)(20,081)(152)-Less:CWI - 50%(46.1)(9.9)(0.1)-

Total Consolidated$ 73,191$ 4,222$ 4,330$ 8,602Total Consolidated$ 73.2$ (8.8)$ 4.3$ 8.7

additional numbers

1Q192Q193Q194Q191Q202Q203Q20

Income (loss) before income taxes from continuing operations$ (1.9)$ (1.4)$ 5.7$ (0.3)$ (16.0)$ 4.6$ 0.2

EBITDA4.24.011.75.0(11.1)9.24.9

Adjusted EBITDA7.38.19.43.66.46.24.0

HPDI system sales197229263385230128379

HPDI revenue (estimate)789285781276310575562413782

YTD Q3 2019/2020 systems689737

YTD Q3 2019/2020 revenue29,23329,981

Chats

PeriodRevenueEBITDA1Adjusted EBITDAIncome (loss) before income taxes from continuing operationsNet income from continuing operationsEPS (Basic and diluted from continuing)Adjusted operating cash flow ($M)Net cash flow ($M)

3Q1756.4-11.1-5.6-16.2- 0.15

4Q1757.5-14.3-4.9-20.8- 0.14

1Q1863.8- 5.4-3.4-12.6- 0.10-12.8- 16.6

2Q1880.50.28.5-5.7- 0.045.3- 4.1

3Q1865.5- 3.04.3-12.1- 0.09-2.13.1

4Q1860.5- 5.30.2-11.9-10.4- 0.085.46.9

1Q1973.24.27.3-1.9-3- 0.02-9.3- 15.6

2Q1982.44.08.1-1.4-2.3- 0.029.9- 0.1

3Q1975.411.79.45.74.90.041.2- 8.0

4Q1974.35.03.6-0.30.60.007.58.6

1Q2067.2- 11.16.4-16-17.7- 0.13-4.0- 6.9

2Q20369.26.24.6

3Q2065.44.94.00.2

Revenue4Q181Q192Q193Q194Q191Q202Q203Q2060.573.282.475.40000000000000674.367.23665.400000000000006

Revenue ($M)

Adjusted operating cash flow ($M)1Q182Q183Q184Q181Q192Q193Q194Q19-12.85.3-2.15.4-9.30000000000000079.91.27.5Net cash flow ($M)1Q182Q183Q184Q181Q192Q193Q194Q19-16.600000000000001-4.09999999999999963.16.9000000000000021-15.6-0.1-88.6

EBITDA12Q183Q184Q181Q192Q193Q194Q191Q200.2-3-5.34.2411.75-11.1

EBITDA ($M)

Adjusted EBITDA1Q192Q193Q194Q191Q202Q203Q207.38.19.43.66.46.24

Adjusted EBITDA ($M)

EBITDA11Q192Q193Q194Q191Q202Q203Q204.2411.75-11.19.19999999999999934.9000000000000004

EBITDA ($M)

FY19 Highlights

$ O/(U)

($ millions, except ratios)FY2019FY2018FY2018

Revenue305.3270.035.3

Cost of revenue237.0206.031.0

Gross Margin68.364.04.3

Gross Margin - %22%24%-1%

Income from equity investments26.722.74.0

Net income (loss) from continuing operations0.2(40.8)41.0

Net income (loss)0.0(31.5)31.5

EBITDA24.9(13.5)38.4

Adjusted EBITDA28.49.618.8

Earnings (Loss) per share0.0(0.2)0.2

$ O/(U)

Cash Flow ($ millions)201920182018

Net cash provided by operating activities(15.6)(27.4)11.8

Add back change in working capital7.90.27.7

CWI Dividend25.023.21.8

Adjusted operating cash flow17.3(4.0)21.3

Debt Service(14.8)(8.1)(6.7)

Capex(8.9)(10.3)1.4

Free Cash Flow(15.1)(10.7)(4.4)

PRD

Total # of unit 160,000

Estimated total cost (base case)€ 9.1EUR:USD1.0985

Total estimated costTotal estimated cost

Base case Worst caseBase case Worst case

Total # of units 160,000Total # of units 160,000

9.112.4$ 10.0$ 13.6

Estimated insurance recovery6.99.7Estimated insurance recovery7.610.7

2.22.7$ 2.4$ 3.0

% recovery76%78%




9.112.4Estimated cost$ 10.0$ 13.6

Estimated insurance recovery6.79.7Estimated insurance recovery7.410.70.7362637363

2.42.7$ 2.6$ 3.0

% recovery74%78%

3q20 highlights

($ millions, except income per share)3Q203Q19$ O/(U)($ millions, except loss per share)YTD 20YTD 19$ O/(U)($ millions, except income per share)3Q203Q19$ O/(U)

Revenue$ 65.4$ 75.4$ (10.0)Revenue$ 168.6$ 231.0$ (62.4)Revenue$ 65.4$ 75.4$ (10.0)

Cost of revenue55.457.5(2.1)Cost of revenue142.1176.6(34.5)Cost of revenue55.457.5(2.1)

Gross Margin10.017.9(7.9)Gross Margin26.554.4(27.9)Gross Margin10.017.9(7.9)

Gross Margin - %15.3%23.7%(8.4%)Gross Margin - %15.7%23.5%(7.8%)Gross Margin - %15.3%23.7%(8.4%)

Income from equity investments4.65.4(0.8)Income from equity investments14.119.9(5.8)Income from equity investments4.65.4(0.8)

Net income (loss) from continuing operations0.6(10.4)11.0Net income (loss) from continuing operations0.6(10.4)11.0Net income (loss) from continuing operations0.6(10.4)11.0

Net income for the period0.85.0(4.2)Net (loss) for the period(11.5)(0.6)(10.9)Net income for the period0.85.0(4.2)

EBITDA4.911.7(6.8)EBITDA3.019.9(16.9)EBITDA4.911.7(6.8)

Adjusted EBITDA4.09.4(5.4)Adjusted EBITDA6.624.8(18.2)Adjusted EBITDA4.09.4(5.4)

Income per share0.010.04(0.03)Loss per share(0.08)(0.00)(0.08)Income per share0.010.04(0.03)

Adjusted Operating Cash Flow ($ millions)3Q203Q19$ O/(U)Adjusted Operating Cash Flow ($ millions)YTD 20YTD 19$ O/(U)

Net cash from (used by) operating activities before W/C$ 0.3$ 3.5$ (3.2)Net cash from (used by) operating activities before W/C$ (7.6)$ (2.9)$ (4.7)

Add back change in working capital(4.6)(6.7)2.1Add back change in working capital(13.6)(13.1)(0.5)

CWI Dividend4.64.40.2CWI Dividend13.817.8(4.0)

Adjusted operating cash flow0.31.2(0.9)Adjusted operating cash flow(7.4)1.8(9.2)

Financing cashflows19.5(6.6)26.1Financing cashflows16.8(18.0)34.8

Capex(1.3)(1.7)0.4Capex(6.3)(5.3)(1.0)

FX on cash and cash equivalents and other(1.1)(0.9)(0.2)FX on cash and cash equivalents and other(2.8)(2.2)(0.6)

Net cash generated (used)$ 17.4$ (8.0)$ 25.4Net cash generated (used)$ 0.3$ (23.7)$ 24.0

2q20 highlights

($ millions, except loss per share)2Q202Q19$ O/(U)($ millions, except loss per share)YTD 20YTD 19$ O/(U)

Revenue$ 36.0$ 82.4$ (46.4)Revenue$ 103.2$ 155.6$ (52.4)

Cost of revenue23.863.1(39.3)Cost of revenue86.7119.1(32.4)

Gross Margin12.219.3(7.1)Gross Margin16.536.5(20.0)

Gross Margin - %33.9%23.4%10.5%Gross Margin - %16.0%23.5%(7.5%)

Income from equity investments4.15.9(1.8)Income from equity investments9.514.5(5.0)

Net income (loss) from continuing operations0.6(10.4)11.0Net income (loss) from continuing operations0.6(10.4)11.0

Net income (loss) for the period3.0(2.3)5.3Net (loss) for the period(12.3)(5.6)(6.7)

EBITDA9.24.05.2EBITDA(1.9)8.2(10.1)

Adjusted EBITDA6.28.1(1.9)Adjusted EBITDA2.615.4(12.8)

Income (loss) per share0.02(0.02)0.04Loss per share(0.09)(0.05)(0.04)


Net cash used by operating activities before W/C$ 2.8$ (2.1)$ 4.9Net cash used by operating activities before W/C$ (7.8)$ (6.4)$ (1.4)

Add back change in working capital(11.8)4.6(16.4)Add back change in working capital(11.0)(6.4)(4.6)

CWI Dividend3.47.4(4.0)CWI Dividend9.213.4(4.2)

Adjusted operating cash flow(5.6)9.9(15.5)Adjusted operating cash flow(9.6)0.6(10.2)

Financing cashflows(1.9)(7.9)6.0Financing cashflows(2.8)(11.4)8.6

Capex(1.6)(1.6)0.0Capex(3.2)(3.6)0.4

Other(1.1)(1.0)(0.1)Other(1.5)(1.3)(0.2)

Net cash used$ (10.2)$ (0.6)$ (9.6)Net cash used$ (17.1)$ (15.7)$ (1.4)

1q20 highlights

($ millions, except loss per share)1Q201Q19$ O/(U)

Revenue$ 67.2$ 73.2$ (6.0)


Gross Margin4.317.2(12.9)

Gross Margin - %6.4%23.5%(17.1%)

Income from equity investments5.48.6(3.2)


Net loss for the period(15.3)(3.0)(12.3)

EBITDA(11.1)4.2(15.3)

Adjusted EBITDA(3.6)7.3(10.9)

Loss per share(0.11)(0.02)(0.09)

Adjusted Operating Cash Flow ($ millions)1Q201Q19$ O/(U)

Net cash used by operating activities before W/C$ (10.6)$ (4.2)$ (6.4)

Add back change in working capital0.8(11.0)11.8

CWI Dividend5.86.0(0.2)

Adjusted operating cash flow(4.0)(9.2)5.2

Debt Service(0.6)(3.6)3.0

Capex(1.6)(2.0)0.4

Other(0.7)(0.4)(0.3)

Net cash used$ (6.9)$ (15.2)$ 8.3

2019 vs budget

$ O/(U)

($ millions, except GM %)FY2019AFY2019BudFY2018

Revenue305.3280.924.4



Gross Margin - %22.4%22.4%-0.1%


- 0



EBITDA24.916.58.4


4Q19 Highlights

($ millions, except ratios)4Q194Q18$ O/(U)

Revenue74.360.513.8



Gross Margin - %18.6%20.3%(1.8%)




EBITDA5.0(5.3)10.3




Net cash provided by operating activities(4.9)(4.6)(0.3)



Adjusted operating cash flow7.65.42.2

Debt Service3.21.61.6

Capex(3.5)(3.0)(0.5)

Other1.32.9(1.6)

Free Cash Flow8.66.91.7

Cash Flow Annual

$ O/(U)






Debt Service(14.8)(8.1)(6.7)

Capex(8.9)(10.3)1.4

Free Cash Flow(15.1)(10.7)(4.4)

Cash Flow Q4

$ O/(U)

Adjusted Operating Cash Flow ($ millions)4Q194Q184Q18

Net cash provided by operating activities(0.3)2.8(3.1)



Adjusted operating cash flow12.212.8(0.6)

Debt Service(3.2)(1.6)(1.6)

Capex(3.5)(3.0)(0.5)


Sheet1

Balance as at December 31, 2019

Right-of-use assetsLease liabilityDiscount rateAverage lease terms (years remaining)

MTM6.56.52.3%6.5

Rohan 1.11.112.0%6.5

TA Gas0.80.84.6%3.8

EMER 2.12.13.0%3.3

Valtek0.90.93.0%7

Vancouver4.34.39.0%5.3

Dallas0.70.77.0%2.7

Sweden0.50.54.0%3.4

Cambridge0.40.46.0%4.5

Calgary0.20.26.0%3

Total17.517.5

FY 19 consolidated

($ millions, except ratios)FY2019FY2018$ O/(U)($ millions, except ratios)4Q194Q18$ O/(U)

Revenue305.3270.335.0Revenue74.360.513.8

Cost of revenue237.0206.031.0Cost of revenue60.548.212.3

Gross Margin68.264.24.0Gross Margin13.812.21.6

Gross Margin - %22%24%(2%)Gross Margin - %19%20%(1%)

Income from equity investments26.722.74.0Income from equity investments6.85.81.0


Net income (loss)0.0(31.5)31.5Net income (loss)0.7(9.2)9.9

EBITDA^24.9(13.5)38.4EBITDA5.0(5.3)10.3

Adjusted EBITDA^28.49.618.8Adjusted EBITDA3.60.23.4

CWI contribution to the Company26.622.73.9CWI contribution to the Company6.75.71.0

Earnings (Loss) per share0.0(0.2)0.2Earnings (Loss) per share0.0(0.1)0.1

($ millions)FY2019FY2018$ O/(U)($ millions)4Q194Q18$ O/(U)3Q19YTD3Q18YTD2Q19YTD2Q18YTD2Q192Q181Q191Q18

Net cash provided by operating activities(7.4)(27.2)19.8Net cash provided by operating activities(4.5)(4.6)0.1(2.90)(22.60)(6.40)(11.00)(2.10)(0.30)(4.30)(10.70)

Add back change in working capital(8.3)(0.2)(8.1)Add back change in working capital4.81.83.0(13.10)(2.10)(6.40)(3.90)4.60(1.70)(11.00)(2.20)

CWI Dividend25.023.21.8CWI Dividend7.28.2(1.0)17.8015.0013.407.307.407.306.000.00

Adjusted operating cash flow9.3(4.2)13.5Adjusted operating cash flow7.55.42.11.80(9.70)0.60(7.60)9.905.30(9.30)(12.90)

Debt Service(14.8)(8.1)(6.7)Debt Service3.21.71.5(18.00)(9.80)(11.40)(3.80)(7.80)(2.00)(3.60)(1.80)

Capex(8.9)(10.3)1.4Capex(3.6)(3.0)(0.6)(5.30)(7.20)(3.60)(5.30)(1.60)(1.70)(2.00)(3.60)

Other(0.7)11.9(12.6)Other1.52.8(1.6)(2.20)9.10(1.30)(4.00)(1.10)(5.70)(0.20)1.70

Net Cash Flow(15.1)(10.7)(4.4)Net Cash Flow8.66.91.7(23.70)(17.60)(15.70)(20.70)(0.60)(4.10)(15.10)(16.60)

Ending Cash Balance46.061.1(15.1)Ending Cash Balance46.061.1(15.1)

Transportation only


Revenue305.3270.335.0Revenue74.360.513.8



EBITDA15.3(0.4)15.7EBITDA0.8(3.8)4.6

Adjusted EBITDA15.85.410.4Adjusted EBITDA0.1(3.1)3.2

CWI

($ millions, except units/ratios)FY2019FY2018$ O/(U)($ millions, except units/ratios)4Q194Q18$ O/(U)

Units7,8837,393490Units2,4072,36245

Revenue361.8319.442.4Revenue102.594.18.4


Gross Margin - %29%28%1%Gross Margin - %28%22%6%

Net income53.2045.407.8Net income13.5011.402.1

% of revenue15%14%1%% of revenue13%12%1%


Segmented Performance – 3Q20 vs 3Q19• OEM revenue increased

due to higher sales volumes of HPDI partially offset by contractual price concessions and reduced engineering service revenue.

• Operating loss in OEM business due to lower sales volumes from LD OEM and lower HPDI engineering service revenue.

• IAM revenue decreased significantly due to COVID-19 impact, however, earnings impact mitigated through austerity measures.

RevenueOperating

Income (loss)Depreciation &

AmortizationEquity

IncomeOEM 37.4$ (4.8)$ 2.1$ (0.3)$ IAM 28.0 1.7 1.3 - Corporate - 0.0 0.1 4.9 CWI - 50% 42.2 6.2 0.0 - Total Segment 107.6 3.1 3.4 4.6 Less:CWI - 50% (42.2) (6.2) (0.0) - Total Consolidated 65.4$ (3.1)$ 3.4$ 4.6$

RevenueOperating

Income (loss)Depreciation &

AmortizationEquity

IncomeOEM 36.2$ (0.9)$ 2.2$ 0.0$ IAM 39.2 4.0 1.9 - Corporate - (4.3) 0.1 5.4 CWI - 50% 41.5 6.6 0.0 - Total Segment 116.9 5.4 4.2 5.4 Less:CWI - 50% (41.5) (6.6) (0.0) - Total Consolidated 75.4$ (1.2)$ 4.2$ 5.4$

3Q20

3Q19

segment 3Q20



OEM$ 34,272$ (12,625)$ 1,847$ -OEM$ 19.1$ 1.1$ 2.1$ (0.1)OEM$ 37.4$ (4.8)$ 2.1$ (0.3)OEM$ 90.8$ (18.3)$ 6.0$ (0.3)

IAM32,9516,2201,461-IAM16.9(1.2)1.2-IAM28.01.71.3-IAM77.85.34.0-


CWI76,66813,552625,304CWI - 50%33.25.30.0-CWI - 50%42.26.20.0-CWI - 50%113.718.30.1-






OEM$ 39,011$ 71$ 2,812$ -OEM$ 44.8$ (3.0)$ 2.6$ 0.0OEM$ 36.2$ (0.9)$ 2.2$ 0.0OEM$ 120.0$ (6.6)$ 7.6$ 0.1

IAM34,1803,6821,439-IAM37.63.51.3-IAM39.24.01.9-IAM111.99.64.7-


CWI92,25820,0811528,602CWI - 50%42.07.8(0.1)-CWI - 50%41.56.60.0-CWI - 50%129.724.20.0-





segment 2Q20



OEM$ 34,272$ (12,625)$ 1,847$ -OEM$ 19.1$ 1.1$ 2.1$ (0.1)OEM$ 53.4$ (13.4)$ 4.0$ -

IAM32,9516,2201,461-IAM16.9(1.2)1.2-IAM49.83.62.6-


CWI76,66813,552625,304CWI - 50%33.25.30.0-CWI - 50%71.612.10.1-






OEM$ 39,011$ 71$ 2,812$ -OEM$ 44.8$ (3.0)$ 2.6$ 0.0OEM$ 83.9$ (5.7)$ 5.4$ -

IAM34,1803,6821,439-IAM37.63.51.3-IAM71.75.72.8-


CWI92,25820,0811528,602CWI - 50%42.07.8(0.1)-CWI - 50%88.117.6--





segment 1Q20



OEM$ 34,272$ (12,625)$ 1,847$ -OEM$ 34.2$ (14.5)$ 1.8$ 0.1

IAM32,9516,2201,461-IAM33.04.81.5-


CWI76,66813,552625,304CWI - 50%38.36.7--






OEM$ 39,011$ 71$ 2,812$ -OEM$ 39.0$ (2.7)$ 2.8$ 0.1

IAM34,1803,6821,439-IAM34.22.21.4-


CWI92,25820,0811528,602CWI - 50%46.19.90.1-




additional numbers

1Q192Q193Q194Q191Q202Q203Q20


EBITDA4.24.011.75.0(11.1)9.24.9

Adjusted EBITDA7.38.19.43.66.46.24.0



YTD Q3 2019/2020 systems689737

YTD Q3 2019/2020 revenue29,23329,981

Chats


3Q1756.4-11.1-5.6-16.2- 0.15

4Q1757.5-14.3-4.9-20.8- 0.14

1Q1863.8- 5.4-3.4-12.6- 0.10-12.8- 16.6

2Q1880.50.28.5-5.7- 0.045.3- 4.1

3Q1865.5- 3.04.3-12.1- 0.09-2.13.1

4Q1860.5- 5.30.2-11.9-10.4- 0.085.46.9

1Q1973.24.27.3-1.9-3- 0.02-9.3- 15.6

2Q1982.44.08.1-1.4-2.3- 0.029.9- 0.1

3Q1975.411.79.45.74.90.041.2- 8.0

4Q1974.35.03.6-0.30.60.007.58.6

1Q2067.2- 11.16.4-16-17.7- 0.13-4.0- 6.9

2Q20369.26.24.6

3Q2065.44.94.00.2


Revenue ($M)


EBITDA12Q183Q184Q181Q192Q193Q194Q191Q200.2-3-5.34.2411.75-11.1

EBITDA ($M)



EBITDA11Q192Q193Q194Q191Q202Q203Q204.2411.75-11.19.19999999999999934.9000000000000004

EBITDA ($M)

FY19 Highlights

$ O/(U)


Revenue305.3270.035.3







EBITDA24.9(13.5)38.4



$ O/(U)






Debt Service(14.8)(8.1)(6.7)

Capex(8.9)(10.3)1.4

Free Cash Flow(15.1)(10.7)(4.4)

PRD






9.112.4$ 10.0$ 13.6


2.22.7$ 2.4$ 3.0

% recovery76%78%




9.112.4Estimated cost$ 10.0$ 13.6


2.42.7$ 2.6$ 3.0

% recovery74%78%

3q20 highlights

($ millions, except income per share)3Q203Q19$ O/(U)($ millions, except loss per share)YTD 20YTD 19$ O/(U)

Revenue$ 65.4$ 75.4$ (10.0)Revenue$ 168.6$ 231.0$ (62.4)



Gross Margin - %15.3%23.7%(8.4%)Gross Margin - %15.7%23.5%(7.8%)



Net income for the period0.85.0(4.2)Net (loss) for the period(11.5)(0.6)(10.9)

EBITDA4.911.7(6.8)EBITDA3.019.9(16.9)


Income per share0.010.04(0.03)Loss per share(0.08)(0.00)(0.08)



Add back change in working capital(2.6)(6.7)4.1Add back change in working capital(13.6)(13.1)(0.5)


Adjusted operating cash flow2.31.21.1Adjusted operating cash flow(7.4)1.8(9.2)


Capex(3.1)(1.7)(1.4)Capex(6.3)(5.3)(1.0)



2q20 highlights


Revenue$ 36.0$ 82.4$ (46.4)Revenue$ 103.2$ 155.6$ (52.4)







EBITDA9.24.05.2EBITDA(1.9)8.2(10.1)









Capex(1.6)(1.6)0.0Capex(3.2)(3.6)0.4

Other(1.1)(1.0)(0.1)Other(1.5)(1.3)(0.2)


1q20 highlights


Revenue$ 67.2$ 73.2$ (6.0)



Gross Margin - %6.4%23.5%(17.1%)




EBITDA(11.1)4.2(15.3)


Loss per share(0.11)(0.02)(0.09)







Capex(1.6)(2.0)0.4

Other(0.7)(0.4)(0.3)

Net cash used$ (6.9)$ (15.2)$ 8.3

2019 vs budget

$ O/(U)


Revenue305.3280.924.4



Gross Margin - %22.4%22.4%-0.1%


- 0



EBITDA24.916.58.4


4Q19 Highlights


Revenue74.360.513.8



Gross Margin - %18.6%20.3%(1.8%)




EBITDA5.0(5.3)10.3









Capex(3.5)(3.0)(0.5)

Other1.32.9(1.6)


Cash Flow Annual

$ O/(U)






Debt Service(14.8)(8.1)(6.7)

Capex(8.9)(10.3)1.4

Free Cash Flow(15.1)(10.7)(4.4)

Cash Flow Q4

$ O/(U)







Capex(3.5)(3.0)(0.5)


Sheet1



MTM6.56.52.3%6.5

Rohan 1.11.112.0%6.5

TA Gas0.80.84.6%3.8

EMER 2.12.13.0%3.3

Valtek0.90.93.0%7


Dallas0.70.77.0%2.7

Sweden0.50.54.0%3.4


Calgary0.20.26.0%3

Total17.517.5

FY 19 consolidated


Revenue305.3270.335.0Revenue74.360.513.8







EBITDA^24.9(13.5)38.4EBITDA5.0(5.3)10.3










Capex(8.9)(10.3)1.4Capex(3.6)(3.0)(0.6)(5.30)(7.20)(3.60)(5.30)(1.60)(1.70)(2.00)(3.60)

Other(0.7)11.9(12.6)Other1.52.8(1.6)(2.20)9.10(1.30)(4.00)(1.10)(5.70)(0.20)1.70



Transportation only


Revenue305.3270.335.0Revenue74.360.513.8



EBITDA15.3(0.4)15.7EBITDA0.8(3.8)4.6


CWI


Units7,8837,393490Units2,4072,36245

Revenue361.8319.442.4Revenue102.594.18.4






Liquidity – Cash Flow

• Impact to adjusted operating cash flow from loss of gross margins partially offset by wage subsidies of $1.2M and austerity measures

• Increase in working capital due to higher accounts receivables driven by increasing HPDI sales volumes and general recovery in sales

Adjusted Operating Cash Flow ($ millions) 3Q20 3Q19 $ O/(U)

Net cash from (used by) operating activities before W/C 0.3$ 3.5$ (3.2)$ Change in working capital (4.6) (6.7) 2.1CWI Dividend 4.6 4.4 0.2Adjusted operating cash flow 0.3 1.2 (0.9)Financing cashflows 19.5 (6.6) 26.1Capex (1.3) (1.7) 0.4FX on cash and cash equivalents and other (1.1) (0.9) (0.2)Net cash generated (used) 17.4$ (8.0)$ 25.4$

segment 3Q20



OEM$ 34,272$ (12,625)$ 1,847$ -OEM$ 19.1$ 1.1$ 2.1$ (0.1)OEM$ 37.4$ (4.8)$ 2.1$ (0.3)OEM$ 90.8$ (18.3)$ 6.0$ (0.3)

IAM32,9516,2201,461-IAM16.9(1.2)1.2-IAM28.01.71.3-IAM77.85.34.0-


CWI76,66813,552625,304CWI - 50%33.25.30.0-CWI - 50%42.26.20.0-CWI - 50%113.718.30.1-






OEM$ 39,011$ 71$ 2,812$ -OEM$ 44.8$ (3.0)$ 2.6$ 0.0OEM$ 36.2$ (0.9)$ 2.2$ 0.0OEM$ 120.0$ (6.6)$ 7.6$ 0.1

IAM34,1803,6821,439-IAM37.63.51.3-IAM39.24.01.9-IAM111.99.64.7-


CWI92,25820,0811528,602CWI - 50%42.07.8(0.1)-CWI - 50%41.56.60.0-CWI - 50%129.724.20.0-





segment 2Q20



OEM$ 34,272$ (12,625)$ 1,847$ -OEM$ 19.1$ 1.1$ 2.1$ (0.1)OEM$ 53.4$ (13.4)$ 4.0$ -

IAM32,9516,2201,461-IAM16.9(1.2)1.2-IAM49.83.62.6-


CWI76,66813,552625,304CWI - 50%33.25.30.0-CWI - 50%71.612.10.1-






OEM$ 39,011$ 71$ 2,812$ -OEM$ 44.8$ (3.0)$ 2.6$ 0.0OEM$ 83.9$ (5.7)$ 5.4$ -

IAM34,1803,6821,439-IAM37.63.51.3-IAM71.75.72.8-


CWI92,25820,0811528,602CWI - 50%42.07.8(0.1)-CWI - 50%88.117.6--





segment 1Q20



OEM$ 34,272$ (12,625)$ 1,847$ -OEM$ 34.2$ (14.5)$ 1.8$ 0.1

IAM32,9516,2201,461-IAM33.04.81.5-


CWI76,66813,552625,304CWI - 50%38.36.7--






OEM$ 39,011$ 71$ 2,812$ -OEM$ 39.0$ (2.7)$ 2.8$ 0.1

IAM34,1803,6821,439-IAM34.22.21.4-


CWI92,25820,0811528,602CWI - 50%46.19.90.1-




additional numbers

1Q192Q193Q194Q191Q202Q203Q20


EBITDA4.24.011.75.0(11.1)9.24.9

Adjusted EBITDA7.38.19.43.66.46.24.0



YTD Q3 2019/2020 systems689737

YTD Q3 2019/2020 revenue29,23329,981

Chats


3Q1756.4-11.1-5.6-16.2- 0.15

4Q1757.5-14.3-4.9-20.8- 0.14

1Q1863.8- 5.4-3.4-12.6- 0.10-12.8- 16.6

2Q1880.50.28.5-5.7- 0.045.3- 4.1

3Q1865.5- 3.04.3-12.1- 0.09-2.13.1

4Q1860.5- 5.30.2-11.9-10.4- 0.085.46.9

1Q1973.24.27.3-1.9-3- 0.02-9.3- 15.6

2Q1982.44.08.1-1.4-2.3- 0.029.9- 0.1

3Q1975.411.79.45.74.90.041.2- 8.0

4Q1974.35.03.6-0.30.60.007.58.6

1Q2067.2- 11.16.4-16-17.7- 0.13-4.0- 6.9

2Q20369.26.24.6

3Q2065.44.94.00.2


Revenue ($M)


EBITDA12Q183Q184Q181Q192Q193Q194Q191Q200.2-3-5.34.2411.75-11.1

EBITDA ($M)



EBITDA11Q192Q193Q194Q191Q202Q203Q204.2411.75-11.19.19999999999999934.9000000000000004

EBITDA ($M)

FY19 Highlights

$ O/(U)


Revenue305.3270.035.3







EBITDA24.9(13.5)38.4



$ O/(U)






Debt Service(14.8)(8.1)(6.7)

Capex(8.9)(10.3)1.4

Free Cash Flow(15.1)(10.7)(4.4)

PRD






9.112.4$ 10.0$ 13.6


2.22.7$ 2.4$ 3.0

% recovery76%78%




9.112.4Estimated cost$ 10.0$ 13.6


2.42.7$ 2.6$ 3.0

% recovery74%78%

3q20 highlights

($ millions, except income per share)3Q203Q19$ O/(U)($ millions, except loss per share)YTD 20YTD 19$ O/(U)

Revenue$ 65.4$ 75.4$ (10.0)Revenue$ 168.6$ 231.0$ (62.4)



Gross Margin - %15.3%23.7%(8.4%)Gross Margin - %15.7%23.5%(7.8%)



Net income for the period0.85.0(4.2)Net (loss) for the period(11.5)(0.6)(10.9)

EBITDA4.911.7(6.8)EBITDA3.019.9(16.9)


Income per share0.010.04(0.03)Loss per share(0.08)(0.00)(0.08)



Change in working capital(4.6)(6.7)2.1Add back change in working capital(13.6)(13.1)(0.5)


Adjusted operating cash flow0.31.2(0.9)Adjusted operating cash flow(7.4)1.8(9.2)


Capex(1.3)(1.7)0.4Capex(6.3)(5.3)(1.0)



2q20 highlights


Revenue$ 36.0$ 82.4$ (46.4)Revenue$ 103.2$ 155.6$ (52.4)







EBITDA9.24.05.2EBITDA(1.9)8.2(10.1)









Capex(1.6)(1.6)0.0Capex(3.2)(3.6)0.4

Other(1.1)(1.0)(0.1)Other(1.5)(1.3)(0.2)


1q20 highlights


Revenue$ 67.2$ 73.2$ (6.0)



Gross Margin - %6.4%23.5%(17.1%)




EBITDA(11.1)4.2(15.3)


Loss per share(0.11)(0.02)(0.09)







Capex(1.6)(2.0)0.4

Other(0.7)(0.4)(0.3)

Net cash used$ (6.9)$ (15.2)$ 8.3

2019 vs budget

$ O/(U)


Revenue305.3280.924.4



Gross Margin - %22.4%22.4%-0.1%


- 0



EBITDA24.916.58.4


4Q19 Highlights


Revenue74.360.513.8



Gross Margin - %18.6%20.3%(1.8%)




EBITDA5.0(5.3)10.3









Capex(3.5)(3.0)(0.5)

Other1.32.9(1.6)


Cash Flow Annual

$ O/(U)






Debt Service(14.8)(8.1)(6.7)

Capex(8.9)(10.3)1.4

Free Cash Flow(15.1)(10.7)(4.4)

Cash Flow Q4

$ O/(U)







Capex(3.5)(3.0)(0.5)


Sheet1



MTM6.56.52.3%6.5

Rohan 1.11.112.0%6.5

TA Gas0.80.84.6%3.8

EMER 2.12.13.0%3.3

Valtek0.90.93.0%7


Dallas0.70.77.0%2.7

Sweden0.50.54.0%3.4


Calgary0.20.26.0%3

Total17.517.5

FY 19 consolidated


Revenue305.3270.335.0Revenue74.360.513.8







EBITDA^24.9(13.5)38.4EBITDA5.0(5.3)10.3










Capex(8.9)(10.3)1.4Capex(3.6)(3.0)(0.6)(5.30)(7.20)(3.60)(5.30)(1.60)(1.70)(2.00)(3.60)

Other(0.7)11.9(12.6)Other1.52.8(1.6)(2.20)9.10(1.30)(4.00)(1.10)(5.70)(0.20)1.70



Transportation only


Revenue305.3270.335.0Revenue74.360.513.8



EBITDA15.3(0.4)15.7EBITDA0.8(3.8)4.6


CWI


Units7,8837,393490Units2,4072,36245

Revenue361.8319.442.4Revenue102.594.18.4






3Q20 Liquidity Position• Cash balance increased

by $17m in 3Q20 due to: o $23M in Liquidity

Decree backed loans with UniCredit and Deutsche Bank

o $4.5M drawn on EDC bridge facility

o Offset by $8.4M repayment on restructured Cartesian Convertible Debt

Liquidity Liabilities

Cash Position 3Q20 2Q20Canada (WPI) $5 $5

Italy (MTM) $27 $12

Italy (EMER) $9 $7

Others $5 $5

Total Cash $46 $29HSBC AR Facility $2 0EDC -Revolver $6 -Total Liquidity $58 $29

Liabilities 3Q20 2Q20

Cartesian – Convertible $10 $17

EDC – Term Loan $13 $13

EDC – Revolver $4 -

UniCredit Loans $31 $16

Deutsche Bank $8 -

HSBC AR Facility $8 $4

Others $1 $5

Total Debt $76 $55

Cartesian Royalty $14 $14Total Liabilities $90 $69

Delivering Clean Transportation SolutionsCost Competitive and Commercially Available

Financial Discipline and Performance

Gaseous Fuels Industry Leader

100% Renewable Alternative Fuels at ScaleEnvironmental Solutions for Climate and Air Quality

Developed, validated, in production, for sale and in use around the worldLow incremental costs to access cleaner, more affordable fuels

Strong record of improvement Sustainable profitability driven by growth, aligning costs with revenues, and fiscal discipline in investment decisions

No performance compromise

Lower total cost of ownership

Enables OEMs to meet regulations at the lowest cost

Growing bio-methane (RNG) availability means net zero carbon transportation is possible NOW with gaseous fuels

Reduced CO2 emissionsReduced criteria emissionsNet zero carbon NOW


Sales in 70 countries CNG, LNG, RNG, LPG, H2

All transportation applications

Leading market shares

Appendix


• All plants operating at normal capacity• Monitoring guidance from public health officials; Continue to maintain safe work

environment, first class customer service and support• Worked with existing and new lenders to secure government-backed financing in Canada and

Italy to support short term liquidity and longer term operational and investment plans

• Secured agreement from EDC to defer 2020 payments and extended loan maturity• Restructured Cartesian convertible debt• Received government funding in all locations for wage-subsidy programs• Leadership voluntary compensation deferrals – 100% deferral by CEO, CFO and Board and

deferred annual bonus payments at Corporate

• Temporary salary reductions and operating plans for all sites• Cut and deferred discretionary expenditures, managing working capital and inventory to

satisfy growing demand

Navigating COVID-19


2019 Corporate Highlights: Steady Revenue Growth

• Transportation revenue grew to $305M

• Up 13% over 2018

• Up 33% over 2017

• Revenue growth due to HPDI volume ramp and increased DOEM services

($ in

milli

ons)

Balanced business with market-ready solutions and customers in 70 countries


• $41M improvement from 2018

• $62M improvement from 2017

• Two quarters of positive net income from continuing operations

2019 Corporate Highlights: Positive Net Income From Continuing Operations

(12.5) (13.4)(16.2)

(20.8)1 Q 1 7 2 Q 1 7 3 Q 1 7 4 Q 1 7

2017 Net Income($62.9M)

(3.0) (2.3)

4.9

0.6

1 Q 1 9 2 Q 1 9 3 Q 1 9 4 Q 1 9

2019 Net Income$0.2M

(12.6)

(5.7)

(12.1)(10.4)

1 Q 1 8 2 Q 1 8 3 Q 1 8 4 Q 1 8

2018 Net Income($40.8M)

Full year of positive net income from continuing operations in 2019

($ in

milli

ons)


2019 Corporate Highlights: Positive EBITDA and Adjusted EBITDA

Continued ramp in HPDI and fiscal discipline to improve financial performance

• First full year of positive EBITDA

• Seventh consecutive quarter of positive adjusted EBITDA

• Positive EBITDA of $24.9m, up $38.4m YoY and adjusted EBITDA of $28.4m, up $18.8m

(6.3) (7.5)(11.1)

(14.3)

5.4

0.23

5.3 4.2 4

11.7

5

-20

-15

-10

-5

0

5

10

15

1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19

EBITDA2017-2019

(3.9) (5.3) (5.6) (4.9)(3.4)

8.5

4.3

0.2

7.3 8.19.4

3.6

-20

-15

-10

-5

0

5

10

15

1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19

Adjusted EBITDA2017-2019

($ in

milli

ons)

Slide Number 1Westport Fuel SystemsSlide Number 3Westport Fuel Systems at a GlanceAlternative Fuel CapabilitiesHydrogen Capabilities Hydrogen Development PathwayPerformance Highlights: Executing on our StrategySlide Number 9Slide Number 10HPDI Delivers CO2 Emission Reductions NowNatural Gas Offers OEMs a Compliance Pathway for Europe’s Light-Duty Emission StandardsSlide Number 13Total Cost of Ownership and Emission Reductions HPDI 2.0TM – Commercially Available and Viable NowFuture Heavy-Duty Transportation Fuel and Technology MixSlide Number 17Global Overview of Natural Gas and LPG Vehicles China: World’s Largest Natural Gas Truck MarketFuel Availability Drives Scale: Europe Case StudyLNG for Heavy-Duty Trucking Scaling in EuropeCan We Make Road Transport Carbon Neutral?Slide Number 233Q20 Headline Financial ResultsFinancial Highlights – 3Q20 v 3Q19 Liquidity – Cash Flow3Q20 Liquidity PositionDelivering Clean Transportation SolutionsSlide Number 30Navigating COVID-19 2019 Corporate Highlights: �Steady Revenue Growth2019 Corporate Highlights: �Positive Net Income From Continuing Operations2019 Corporate Highlights: �Positive EBITDA and Adjusted EBITDA

Documents

Investor Presentation · Macro Trends Driving Rapid Change • CNG and LNG refuelling infrastructure ... Mexico 350 Japan 340 China 240 USA 210 LPG Vehicles in Service (in thousands)