The global leader in natural gas engines.Westport Shareholder Meeting12 April 2012                                        ...
Forward Looking Statements This presentation contains forward-looking statements that are based on the beliefs of Westpor...
Westport at a Glance  market focus                     position                    strategy                               ...
Business Structurestrategic programsmergers & acquisitions,                                                             (p...
“The Golden Age of Natural Gas”World natural gas resources by major region, January 2010 (tcm)                     source:...
Downward Pressure on Natural Gas PricesNatural gas price projections are significantly lower than past years due to anexpa...
Rest of the World:                                                                                                        ...
Transportation Energy DemandsCanada and USA natural gas fuel consumption by vehicle class (74 billion ft3/day)            ...
What Worked:Urban Return-to-Base Commercial Fleets               Mumbai   Vancouver                  Las Vegas   Los Angel...
Cummins Westport Business Model                                  10
Weichai Westport Joint-Venture Business Model                                                 FYE Dec. 31, USD$MM         ...
New Products: From Consumers to HD Trucking               Volvo Cars   Ford Trucks                                        ...
LDComplete Solution: Westport Light-Duty      off-engine    on-engine   complete     components    components    engines  ...
HDThe Westport HD SystemNatural gas engines with diesel-equivalent      Fuel injectors onlyperformance, range and         ...
HDLeading Global Market Position                                Heavy-Duty Truck Manufacturers (working with Westport)    ...
HDFueling a Truck for Range & Capability                       base location                   Return-to-base or          ...
HDInfrastructure Corridors                                              Corridors ranked by                               ...
HDInfrastructure Corridors (Dec. 2012 Projected)         source: Clean Energy Fuels                                       ...
HHPNew Markets        mine haul trucks      shale frac trucks & pumps                   tugboats      industrial locomotiv...
HHPSignificant High-Horsepower Opportunities         target vehicles                                           current iss...
Financial Overview                     21
Financial Highlights   Ended Dec 31st,                                   Y/Y                                  Y/Y       US...
Revenue Segmentation & Growth                       CY 2010                   Revenue: $144.4             Q3 FY2010 to Dec...
Summary Financial OverviewRevenue                                    $264.7                  Gross Profit                 ...
Investment HighlightsPure-play global leader for gaseous fuelstorage, delivery, and combustion technologies.              ...
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2011 Westport Annual General Meeting

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CEO David Demers' presentation at the 2011 Westport Innovations Inc. Annual General Meeting for the fiscal year ending December 31, 2011. See the interactive video/presentation at http://www.zentation.com/viewer/index.php?passcode=QzGZbfEfP6

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2011 Westport Annual General Meeting

  1. 1. The global leader in natural gas engines.Westport Shareholder Meeting12 April 2012 1
  2. 2. Forward Looking Statements 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. 2
  3. 3. Westport at a Glance market focus position strategy Leverage IP to penetrate Transformation from The global leader in markets through petroleum-fueled to gaseous fuel engineering relationships with market-alternative-fueled engines. and technology. leading OEMs. Volvo 3
  4. 4. Business Structurestrategic programsmergers & acquisitions, (public company) pre-commercial Advanced Technology, New Market Creation programs (Weichai, Volvo, GM, LTM Investment ($42.5) m1 HHP, etc.) Emerging, Rapid evolution product sales (joint venture) 1st revenue 2008 divisions Profitable since 2004 Emer acquisition July Commercial launch 2011 Key Metrics: Revenue CAGR 29% March 2011 profit & loss, last twelve months last twelve months last twelve monthssales growth rates, units5,465 units 274 revenues $66.7mmarket penetration, revenues $163.9m revenues $34.1m gross margin $13.8m position gross margin $71.5m gross margin $12.7m R&D $4.0m R&D $11.6m R&D $20.9m EBITDA* ($2.2m) EBITDA* $34.5m EBITDA* ($22.1m) 1 Last Twelve Months ended December 31, 2011, NET adjusted EBITDA is ($34.4m) . See financial overview slide # 16 for further details. * The Company defines Adjusted EBITDA as net loss attributed to the Company before (a) income taxes, (b) depreciation and amortization, (c) 4 interest expense, net, (d) amortization of stock-based compensation, (e) income (loss) from unconsolidated joint ventures and (f) gains.
  5. 5. “The Golden Age of Natural Gas”World natural gas resources by major region, January 2010 (tcm) source: “Are We Entering a Golden Age of Gas?”, IEA, June 2011. 5
  6. 6. Downward Pressure on Natural Gas PricesNatural gas price projections are significantly lower than past years due to anexpanded shale gas resource base natural gas spot price (Henry Hub); 2009 dollars per million Btu10 $9/MMBtu 98 updated AEO2009 AEO2010 $7/MMBtu 7 6 5 AEO2011 4 3 Current 2 price: 1 $2.20 history 2009 projections0 1990 1995 2000 2005 2010 2015 2020 2025 2030 2035 sources: EIA, Annual Energy Outlook 2011; EIA, Annual Energy Outlook 2010; and EIA, An Updated Annual Energy Outlook 2009 Reference Case via: Shale Gas and the Outlook for U.S. Natural Gas Markets and Global Gas Resources, Richard Newell, June 21, 2011 6
  7. 7. Rest of the World: 136 billion USTotal World Diesel Consumption gallons/year Europe: North America: 94 billion US 77 billion US gallons/year China: gallons/year 41 billion US gallons/yearroad transport India: rail transport These segments have 16 billion US engines that consume largemisc. industry & gallons/year amounts of fuel and benefit construction from HPDI’s diesel-likeinland & coastal performance characteristics waterways source: UN Energy Statistics Database, United Nations Statistics Division (UNSD) 2008. Westport analysis. 7
  8. 8. Transportation Energy DemandsCanada and USA natural gas fuel consumption by vehicle class (74 billion ft3/day) 32 billion ft3/day 25 billion ft3/day 14 billion 4 billion ft3/day ft3/day source: 2007 EIA, NRCan 8
  9. 9. What Worked:Urban Return-to-Base Commercial Fleets Mumbai Vancouver Las Vegas Los Angeles 9
  10. 10. Cummins Westport Business Model 10
  11. 11. Weichai Westport Joint-Venture Business Model FYE Dec. 31, USD$MM 2008 2009 2010 2011 Hong KongPeterson (CNG) Revenue $ 9.9 $ 19.0 $ 44.8 $ 109.8 Equipment 35% Cost of revenue 8.1 15.7 35.9 90.1 25% 40% Expenses 1.6 2.5 6.4 14.1 Net income $ 0.1 $ 0.8 $ 2.4 $ 5.6 % margin 1.3% 4.2% 5.4% 5.1% WPT 35% interest* - - $ 0.6 $ 1.9 * Westport began reporting its income from WWI since July 2010 $110 9,000 YTD Revenue Engine Sales $100 8,000  JV first announced 2008; formal 7,000 $80 JV commenced July 2010 6,000 $ million Units  Existing natural gas engine $60 5,000 $45 4,000 business demonstrating strong $40 3,000 growth in China $19 2,000 $20 $10  Target: Dominate Asian market; 1,000 $- - future export potential 2008 2009 2010 2011 11
  12. 12. New Products: From Consumers to HD Trucking Volvo Cars Ford Trucks 12
  13. 13. LDComplete Solution: Westport Light-Duty off-engine on-engine complete components components engines 13
  14. 14. HDThe Westport HD SystemNatural gas engines with diesel-equivalent Fuel injectors onlyperformance, range and change to engineefficiency. HPDI fuel injectorsLNG tank &pump module Complete LNG fuel solution including Proprietary high-pressure proprietary tanks direct injection (HPDI) and fuel pumps technology 14
  15. 15. HDLeading Global Market Position Heavy-Duty Truck Manufacturers (working with Westport) North America Europe China India1. Daimler Group 1. Volvo + Renault (24%) 1. FAW (22%) 1. Tata (70%) (Freightliner, Western 2. Daimler (21%) 2. Sinotruck (19%) 2. Ashok Leyland (19%) Star) (34%) 3. MAN (16%) 3. DongFeng (18%) 3. Force Motors (5%)2. International (25%) 4. DAF (16%) 4. Shanxi Automobile 4. Asia Motor Works3. PACCAR (Peterbilt, (11%) (4%) Kenworth) (23%) 5. Scania (14%) 5. Beijing Automotive 5. Volvo Global Trucks4. Volvo Group (Volvo (10%) (1%) Truck, Mack) (18%) 6. Others (27%)source: NADA, Class 8 trucks for 2010 source: www.acea.be, HCV-Heavy source: Morgan Stanley Truck & Engine source: Morgan Stanley Truck & Engine Commercial Vehicles (Trucks) over 16t for Chartbook, September 30, 2010 Chartbook, September 30, 2010 2010 Broad Set of Relationships Creates Global Footprint Volvo 15
  16. 16. HDFueling a Truck for Range & Capability base location Return-to-base or hub and spoke scenario Consolidating key value chain components such as:base location satellite location satellite location  fuel supply  customer support  comprehensive maintenance into a single, user-friendly package Point-to-point scenario 16
  17. 17. HDInfrastructure Corridors Corridors ranked by diesel consumption #11 #9 #3 #7 Salt Lake City #5 Las Vegas Los #6 #10 #12 #4Angeles #1 Dallas #8 San Antonio Houston #2 17
  18. 18. HDInfrastructure Corridors (Dec. 2012 Projected) source: Clean Energy Fuels 18
  19. 19. HHPNew Markets mine haul trucks shale frac trucks & pumps tugboats industrial locomotives 19
  20. 20. HHPSignificant High-Horsepower Opportunities target vehicles current issues engine OEMsMINING(RESOURCE EXTRACTION) 2bn gal of diesel consumed annually by the top 10 mine haul mining companies alone1 with 28,600 large mine haul trucks trucks (>100 ton capacity) operating around the world2 drill rigs and 2,035 onshore drilling rigs working in U.S. and frac pumps Canada3 with estimates of the pressure pumping horsepower in North America set to top 10mn hp in 20114RAIL diesel mainline Rail industry consumes 9bn gal of diesel fuel annually, freight half of this in North America5 locomotives Fuel represents approximately 24% of US railroad diesel operating costs6 passenger locomotivesMARINE ferries Marine industry consumes 13bn gal of diesel fuel annually5 tugboats Emissions reduction in sensitive coastal and inland PSVs waterways are a priority work and Some examples of LNG ferries and platform support crew boats vessels (PSV) in Scandinavia, but no widespread adoption yet 1.Westport analysis 4.United Holdings investor information presentation 2011 2.Morgan Stanley/Parker Bay 5.UN Energy Statistics Database 2008 20 3.Baker Hughes report, August 2010 6.Burlington Northern 2008 Annual Report
  21. 21. Financial Overview 21
  22. 22. Financial Highlights Ended Dec 31st, Y/Y Y/Y USD$MM Q4 CY11 Q4 CY10 Change CY11 CY10 Change $61.1 $120.3 Revenue $100.6 $39.5 $264.7 $144.4 +155% +83% $26.7 $47.4 Gross margin $39.6 $12.9 $98.3 $50.9 +207% +93%Gross margin % 39% 33% - 37% 35% - ~$330M in cash & short-term investments* YTD = year to date *as at February 29, 2012 22 Y/Y = year over year
  23. 23. Revenue Segmentation & Growth CY 2010 Revenue: $144.4 Q3 FY2010 to Dec 31, 2010 Cummins Westport Revenue: $39.5M 81% Cummins Westport 79% Westport Westport HD 8% Westport LD Westport LD 20% 11% HD 1% Q3 FY2011 to Dec 31, 2011 CY 2011 Revenue: $100.6M Cummins Westport Revenue: $264.7 Cummins 62% Westport 57% Westport HD Westport HD 20% 13% Westport Westport LD LD 23% 25% 23
  24. 24. Summary Financial OverviewRevenue $264.7 Gross Profit $98.3 $50.9 $144.4 $32.7 Margin $103.5 $108.2 $24.1 $26.9 34% 35% 37%$71.0 26% 30%CY 2007 CY 2008 CY 2009 CY 2010 CY 2011 CY 2007 CY 2008 CY 2009 CY 2010 CY 2011 63% 59% 56% 62% 59% 60% Geographic Breakdown Americas 17% 18% 17% 14% 16% 20% Asia 23% 24% 26% 22% 24% 20% Rest of World (for the quarters ended…) Jun 10 Sep 10 Dec 10 Mar 11 Jun 11 Dec 11 (all dollar values are in millions of U.S. dollars) 24
  25. 25. Investment HighlightsPure-play global leader for gaseous fuelstorage, delivery, and combustion technologies. Capital Valuable Talented &Strong First- Efficient & Strategic & Experienced Mover Scalable Business Management Advantage Business Alliances Team Model 25

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