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The global leader in natural gas engines.




          Powering transportation.




              Driving change.

Westport 2012 AGM         stock symbols         market capitalization
                         TSX    NASDAQ            CAD             USD

                         WPT    WPRT        $1.6 billion     $1.6 billion

                                          April 11, 2013                1
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
Westport Engineers Advanced Natural Gas Engines
 We are enabling the global shift to a cleaner, cheaper, more
  sustainable energy source for transportation and fundamentally
  changing the way the world travels the roads, rails and seas.


 market focus               position            opportunity

       Leading the        Strong first mover
      global shift in       advantage with        Shifting products
     transportation           unmatched             from ―proof of
    from petroleum         IP, relationships,         concept‖ to
          fuels                  market              widespread
       to methane         coverage, product        global adoption
      (natural gas)       s, and capabilities



                                                                      3
Westport at a Glance
 Through its market focus and
  position, Westport has moved from
  proof of concept to capture the
  global emergence of
  natural gas vehicles
  through a broad range of
  transport applications.




                                      4
Investment Highlights
1. ​Key markets are established – Westport is focused on
    rapid introduction of new products establishing
    technology standards and harvesting investment returns
2. Aggressive price and performance improvements in
   all markets to encourage accelerated adoption
3. Leverage key OEM partnerships allowing for fast and
   profitable scale up at low risk for all stakeholders
4. Continue developing new markets and new partnerships



                                                          5
Accelerated Market Adoption
 Adoption rate in leading markets moving faster than the gasoline to diesel transformation
 Clean Energy Fuels, Shell, Encana, ENN, and others are leading the build-out of natural
  gas stations and fuelling infrastructure around the world

           100%
                                                              New sales of Class 8
                                                              diesel trucks, USA1
            75%
   Share




           50%
                                             New registrations                           New sales of natural gas
                                             of diesel passenger                         refuse trucks, USA3
                                             cars, Europe2
           25%



            0%
              1950                 1970                        1990               2010            2030


                     Data sources:                                  2. ACEA
                     1. MacKay & Co., & Wards Auto Group, a         3. Westport                                     6
                        division of Penton Media, Inc.              4. Westport
Westport is the Technology Leader
 Global patent portfolio pivotal to                       Top 10 Companies with
  Westport‘s market leading                          Natural Gas Engine Related Patents*
  position with OEMs                   Westport                                                                325
 Worldwide, Westport and its            Toyota                                            218
  affiliates have filed over 700           Fiat                                      191
  patent applications relating to        Bosch                                  169
  over 180 inventions in:                 Ford                                  167
   engine technologies                    GM                                  162
   fuel system components                 CAT                                158

   control methods                      Honda                            142

   vehicle integration                Siemens                             141

   other related technologies          Daimler                       121

 Established strong development                  0                  100                   200                   300                  400
  lead times and barriers to entry           * Based on the patent search results of publicly available data within the International Patent
  with over $390M in R&D and                 Classification F02, meeting the search term criteria: one of ("engine" or "combustion" or "injector"
                                             or "injection valve") and ("natural gas" or "methane" or "gaseous fuel") and not ("fuel cell" or
                                             "turbine"). This chart includes issued or granted patents from: Australia, Brazil, Canada, China,
  commercialization since 1995               European Patent Office Grants, France, Germany, India, Italy, Japan, Poland, Russia, Spain, UK,
                                             USA, USSR, and pending published patent applications from: the European Patent Office, USA,
                                             and the World Intellectual Property Office.



                                                                                                               as of January 22, 2013          7
Converting R&D to ROI                                             Proprietary technology enables latest diesel and gasoline
                                                                   engines to operate on natural gas (or other gaseous fuels)
                                                                  Compatible with current and future engine technology; preserves
Product Commercialization Roadmap                                  and improves performance, efficiency, emissions




       earlier              2011            2012                2013                     2014                     2015


      Westport 2.4L                     Ford F-250/350       Ford F-450/550           Volvo 13L             Cummins Westport
                           Volvo V70
    Industrial Engine                   Westport WiNG        Westport WiNG           Westport HPDI             ISB6.7 G



   Cummins Westport                                            Westport
                                       Westport JumpStart
     5.9L & 8.3L                                            LNG Tank System



   Cummins Westport                                         Cummins Westport
      8.9L ISL G                                               ISX12 G



   Westport HPDI 15L                                        Weichai Westport
                                                              WP12HPDI


   Weichai Westport
      6.8–11.6L                                             Westport Product




           colour legend      automotive          urban          trucking               off-road               fueling


                                                                                                                                8
URBAN COMMERCIAL FLEET
APPLICATIONS IN NORTH AMERICA

                                9
Historical Success:
Urban Return-to-Base Fleets
              San Pedro Bay Ports     Los Angeles




                                    Las Vegas   Ontario




                                                          10
Cummins Westport Joint Venture
 50:50 JV established in 2001,                    Key recent growth driver:
  revised 2004 and 2012 (ten year deal)               refuse trucks in North America – approaching 50%
                                                       natural gas market penetration
 28% revenue CAGR from CY 2006–2012                  medium truck applications


                                           Products
                     ISL G                  ISX12 G                     ISB6.7 G




                      8.9L                     11.9L                        6.7L
                     SEGR                      SEGR                        SEGR
                   250–320hp                 320–400hp
                  660–1,100 lb-ft         1,150–1,450 lb-ft

                  available now             2013 launch                 2015 launch



                                                                                                          11
Addressable Market:
Urban Commercial Fleets in North America
                                                                                                        annual             current            future
         CWI Engines in North America by Segment
                                                                                                        market              CWI                CWI
                       (cumulative)
30,000                                                                                                 turnover            engine             engine
                                                                                                      5,000 –
                                                                               Transit Bus                                   ISL G                 n/a
            Truck                                                                                     6,0001
25,000
            Refuse                                                             Coach,
                                                                                                      2,000 –                               ISB6.7 G
            Coach/Shuttle/Specialty                                            Shuttle,                                      ISL G
                                                                                                      4,0002                                      (2015)
20,000                                                                         Speciality
            School Bus
                                                                               School Bus             20,000 –                              ISB6.7 G
            Transit                                                                                                            n/a
                                                                               Type C                 30,0003                                     (2015)
15,000
                                                                               School Bus             3,000 –
                                                                                                                             ISL G                 n/a
                                                                               Type D                 6,0003
10,000                                                                         Refuse                 5,000 –                                ISX12 G
                                                                                                                             ISL G
                                                                               Truck                  7,0004                                      (2013)

 5,000                                                                                                71,000 –                              ISB6.7 G
                                                                               Class 6 & 7                                   ISL G
                                                                                                      97,0005                                     (2015)

                                                                                                      110,000 –                              ISX12 G
    0                                                                          Class 8                                       ISL G
                                                                                                      199,0006                                    (2013)



                           1. New Flyer Annual Information Form March 2012     4. CWI analysis
                           2. CWI analysis                                     5. ACT Research of all OEMs’ sales in class 6 & 7 from 2009-2011            12
                           3. School Bus Fleet magazine annual market survey   6. ACT Research of all OEMs’ sales in class 8 from 2009-2011
Cummins Westport Financial Summary
                USD$MM                    2007              2008              2009               2010               2011              2012

                   Revenue           $     66.4         $ 92.9             $ 101.5          $ 117.1           $ 163.9             $ 198.0

         Cost of revenue                   43.2              68.3               69.3              71.8              92.4             136.6

                  Expenses                 13.1              14.8               16.3              18.1              22.1               26.1

     Operating income*                   $ 10.1           $ 9.8             $ 15.9            $ 27.2            $ 48.4              $ 35.4

   Operating income %                    15.2%            10.5%             15.7%              23.2%             30.1%           17.9%**

  Capital expenditures                           -             0.2                   -              0.4               0.3                0.2

* Excludes foreign exchange effects and bank charges
** The decrease in CWI operating income percentage for the year ended December 31, 2012 was primarily due to warranty adjustments as a result
    of fleets using smaller CWI ISL G 8.9L engine in broader applications with higher duty cycles in order to take advantage of strong economic
    benefits of driving natural gas trucks. Excluding warranty adjustments and higher extended coverage claim impact, CWI operating income
    percentage would have been 26%.




                                                                                                                                                  13
INCREASE IN FUELLING INFRASTRUCTURE
TRUCKING & AUTOMOTIVE APPLICATIONS


                                      14
Growth in LNG Fueling Infrastructure




                                                                                                                    Public – open

                                                                                                                   Built – not open

                                                                                                                   2013 – planned


        Source: Westport analysis January 2013, Clean Energy Fuels, Encana, Shell, and BLU., FortisBC, Gaz Metro                    15
Market Forecast
North American Class 8 Natural Gas Trucks
 20%




 15%




 10%




  5%




  0%
       2012       2013   2014   2015   2016   2017


                                                     16
North America:
Natural Gas Offerings for the Trucking Market
                                     regional haul                        long haul                                           heavy haul

Engine size                          8–12L                                13–15L                                              15–16L

Annual sales volume*                 52,500                               117,200                                             30,000

Current engines                      CWI ISL G                            Westport 15L                                        Westport 15L

Development engines                  CWI ISX12 G [2013]                   Volvo 13L (w/ Westport HPDI) [2014]                 Westport 15L


                     Kenworth                                                  Freightliner                       Mack
 T440        T470    T660         T800B         T800SH      W900S           M2 - 112     SD - 114    Cascadia   Granite / Pinnacle           legend

                                                                                                                                               9
                                                                                                                                       CWI ISL G 9L
  9              9   12           15             12         9/12              9            9           12             12
                                                                                                                                              12
                                                                                                                                        CWI ISX12 G
 Navistar                                                   Peterbilt                                             Volvo
      TranStar              320           382         384           365       367          386          388     VNM           VNL
                                                                                                                                              15
                                                                                                                                       Westport 15L

        9              9/12               9        9/12 9/12                  15           15           15       9           12


                            *Polk database of new truck sales based on 2011 registrations, Westport analysis                                          17
Global Truck Market Opportunity
 China first, followed by India and Europe
                            China LNGV Population                                                                      Natural Gas Stations in China
                                                                                                                                                                     LNG Station

                                                                                                3,000                                                                CNG Station
               14


               12                                                                                2,500                         33%                                            350
                                          118%
               10                                                                                                             CAGR
                                          CAGR                                                   2,000
 (thousands)




                8
                                                                                                  1,500                                                             123
                                                                                                                                                           20
                6                                                             13.3                                                                 15




                                                                                                                                                                              2,500
                                                                                                  1,000
                4




                                                                                                                                                                    1,604
                                                                                                                                                           1,477
                                                                                                                                                   1,329
                                                                                                     500
                2                                                                                                             3      4      7
                                                                       5.8


                                                                                                                 293

                                                                                                                        355

                                                                                                                              410

                                                                                                                                     480

                                                                                                                                            537
                                                               3.1                                       0
                    0                    0.3     0.7    0.9                                                  2003 2004
                        2003 2004                                                                                      2005 2006
                                  2005 2006                                                                                      2007 2008
                                            2007 2008                                                                                      2009 2010
                                                      2009 2010                                                                                                             2011
                                                                             2011


                                   Sources: China Automotive Technology and Research Center, www.chinaev.org, China Road Transport Association, Westport analysis                     18
Strong Growth in China
   First announced Weichai Westport JV in 2008; formal JV commenced July 2010
                                                                                                                             Hong Kong
   Light-duty component business has >60% share in China*                                                                 Peterson (CNG)
                                                                                                                             Equipment
                                                                                                                                                    35%
   Existing NG engine business demonstrating strong growth in China                                                                        25%           40%

   Current priorities: launch Westport HPDI technology for Asian market in 2013
    with broad LNG infrastructure
   Westport revenue model
       Sale of components to JV and to vehicle OEMs
       Participate in the JV‘s profitability
                                                                  Weichai Westport Financial Summary
                                                                        USD$MM                   2008               2009       2010                2011         2012

                                                                           Revenue           $    9.9           $ 19.0     $ 44.8           $ 109.8        $ 272.1

                                                                 Cost of revenue                  8.1               15.7       35.9                90.1         234.3
                                                                          Expenses                1.6                2.5        6.4                14.1          28.1
                                                                       Net income            $    0.1           $    0.8   $    2.4          $      5.6         $ 8.2
                                                                    Net income %                 1.3%               4.2%       5.4%               5.1%          3.0%

                                                              WPT 35% interest*                     -                  -   $    0.6          $      1.9          $2.9

                                                                      Engines sold                720            1,696      3,602                 8,451     22,025


                                                  * Westport began reporting its income from WWI in July 2010



                             *Westport analysis                                                                                                                         19
Fuel Storage Applications:
The New Westport™ LNG Tank System
 Proprietary Westport technology,                                           hydraulic
  optimized for spark-ignited                                                power
                                                                             module
  engines, such as CWI
 The 120 or 150 gallon single-tank
  systems can run for ~350 to 450 miles,
  respectively, on cold (unsaturated)       LNG tank
  LNG fuel – ranges double for              and pump module

  dual-tank
 A single 150 gallon Westport LNG Tank System takes the place
  of 3 standard CNG tanks, lowering fuel storage costs, speeding
  up refueling, and reducing overall vehicle weight by 600 lbs
 Fuel-flexibility with either warm (saturated) or cold
  (unsaturated) LNG – increasing vehicle range by up to 10%
  when using cold LNG                                              driver
                                                                   display
 westport.com/is/core-technologies/westport-lng-tank-system


                                                                                    20
Global Automotive Market
 Approximately 14.9M1 natural gas passenger car & light commercial vehicles on the road
 Approximately 79.5M2 passenger car & light commercial sales annually for all fuel types
   Approximately 1.5M3 compressed natural gas vehicle sales annually including aftermarket




             Canada & USA4                            Western Europe4                Eastern Europe4                           Greater China4
          Light Vehicles                           Light Vehicles                 Light Vehicles                          Light Vehicles
          Produced
                               12.6M               Produced
                                                                     12.8M        Produced
                                                                                                               6.3M       Produced
                                                                                                                                           18.7M

          Light Vehicles                           Light Vehicles                 Light Vehicles                          Light Vehicles
          Sold
                               16.2M               Sold
                                                                     13.2M        Sold
                                                                                                               5.1M       Sold
                                                                                                                                           19.2M




                           Latin America4                                        India4                                        Australia & NZ4
                     Light Vehicles                                 Light Vehicles                                        Light Vehicles
                     Produced
                                            6.8M                    Produced
                                                                                                 3.8M                     Produced
                                                                                                                                            0.2M

                     Light Vehicles                                 Light Vehicles                                        Light Vehicles
                     Sold
                                            6.8M                    Sold
                                                                                                 3.3M                     Sold
                                                                                                                                            1.1M



                                                                    ‗Light vehicle‘ refers to passenger cars, light passenger trucks &
                    1.NGVA Europe (2012)   3.NGV Global (2011)
                                                                    vans, minibuses, and light commercial vehicles usually less than 3.5         21
                    2.IHS (2012)           4.IHS (2012)
                                                                    tons and not more than 7 tons
NGV Components & Complete Solutions
  off-engine     on-engine          complete industrial engines
 components     components




       complete systems designed to specific OEM platforms




                                                                  22
OFF-ROAD APPLICATIONS


                        23
Significant Off Road Opportunities
         target vehicles                                                  opportunity                                    OEM partners                 worldwide units

MINING
(RESOURCE EXTRACTION)                  mine haul                                                                                                      19,406 engine units
                                                            2bn gal of diesel consumed annually by                                                        (>127 ton)4
                                        trucks
                                                            the top 10 mining companies alone                                                         13,890 engine units
                                      drill rigs and        operating around the world1                                                                 (drill rigs & frac
                                      frac pumps                                                                                                            pumps)5




RAIL                                     diesel
                                        mainline            Rail industry consumes 9bn gal of
                                         freight            diesel fuel annually, half of this in North                                               50,594 engine units
                                      locomotives           America2                                                                                       (mainline
                                         diesel             Fuel represents approximately 24% of                                                         locomotives)6
                                       passenger            US railroad operating costs3
                                      locomotives


MARINE                                    ferries
                                                            Marine industry consumes 13bn gal of
                                                            diesel fuel annually2

                                        tugboats            Emissions reduction in sensitive coastal
                                                            and inland waterways are a priority                                                       25,000 engine units
                                          PSVs                                                                                                          (small vessels)7
                                                            Some examples of LNG ferries and
                                        work and            platform support vessels (PSV) in
                                       crew boats           Scandinavia, but no widespread
                                                            adoption yet

               1.   Morgan Stanley/Parker Bay, Westport analysis        2012, Westport Analysis                              by SCI Verkehr GmbH, Westport analysis
               2.   UN Energy Statistics Database 2008               5. Baker Hughes Rotary Rig Count Report, Westport    7. Diesel and Gas Turbine Magazine 2011 Marine
               3.   Burlington Northern 2008 Annual Report              analysis                                             Propulsion Order Survey, Westport analysis
                                                                                                                                                                           24
               4.   Parker Bay Mobile Mining Equipment Database      6. Diesel Locomotives – Global Market Trends 2011
North America:
Potential Off-Road Business Models
                                  Fuel Delivery
                                proprietary cryogenic
                                 components deliver
                                  high pressure fuel


    Fuel Storage
   LNG fuel storage
      solutions




                           Engines
                      Apply Westport HPDI
                           technology



                                                        25
INVESTMENT OVERVIEW


                      26
Business Unit Realignment
               Previous Structure                                                        Realignment
Light Duty                                                           Applied Technologies
                                                                      OMVL and Emer (Italy)
 Westport (Sweden) - Volvo V70 bi-fuel system
                                                                        aftermarket conversion kits, direct to OEM systems
 OMVL and Emer (Italy)                                               Westport (Australia)
    aftermarket conversion kits, direct to OEM systems
 Wesport (Australia)                                                On-Road Systems
 Westport™ WiNG Power System for Ford F-250/350/450/550              Westport (Sweden) - Volvo V70 bi-fuel system
 Westport™ 2.4L and Westport™ 3.8L Industrial engines                Westport™ WiNG Power System for Ford F-250/350/450/550
    Mobile and stationary industrial applications incl. forklifts    Westport™ 2.4L and Westport™ 3.8L Industrial engines
                                                                         Mobile and stationary industrial applications incl. forklifts
Heavy Duty                                                            Westport™ 15L system with Westport™ HPDI technology
 Westport™ 15L system with Westport™ HPDI technology                 Volvo 13L system with Westport™ HPDI technology
 Volvo 13L system with Westport™ HPDI technology                     Westport™ LNG Tank System (North America)
 Weichai Westport HPDI 12L system                                    JumpStart mobile refuelling solutions
 Westport™ LNG Tank System (North America)                           Products for On-Road Systems after development
 JumpStart mobile refuelling solutions
                                                                     New Markets and Off-Road Systems
Corporate including High-Horsepower                                   Weichai Westport HPDI 12L system
 CAT development program                                             Products for Off-Road Systems after development
 SDTC / EMD development program
                                                                     Corporate and Technology Investments
 Tata Motors development program
                                                                      GM, CAT, Tata, and Volvo development programs
 GM development programs
                                                                      SDTC / EMD development program
Joint Ventures                                                        2 new OEM development programs

 Cummins Westport and Weichai Westport                              Joint Ventures
                                                                      Cummins Westport and Weichai Westport



                                                                                                                                          27
Applied Technologies

                              3 months                   12 months
                            ended Dec. 31               ended Dec. 31
 ($ in millions)           2012     2011      change   2012     2011     change

 Revenue                   $ 19.8 $ 19.5       2%      $ 91.7 $ 62.1     48%

 Gross margin                 5.3      3.7    43%        25.3     13.0   95%

 Gross margin percentage   26.8%    19.0%       -      27.6%    20.9%      -

 Operating expenses           3.8      4.1    (7%)       14.4     11.6   24%

 Segment operating
                              1.4     (0.4)   450%       10.8      1.4   671%
 income (loss)




                                                                                  28
On-Road Systems

                              3 months                   12 months
                            ended Dec. 31               ended Dec. 31
 ($ in millions)           2012      2011     change   2012      2011     change

 Revenue                   $ 12.4 $ 13.6      (9%)     $ 40.7 $ 24.5      66%

 Gross margin                 0.4       0.8 (50%)         4.6     (0.5) 1,020%

 Gross margin percentage    3.2%     5.9%       -       11.3%    (2.0%)     -

 Operating expenses          14.9     12.6    18%        47.9      35.1   36%

 Segment operating
                            (14.5)   (11.9)   22%       (43.3)   (35.6)   22%
 income (loss)




                                                                                   29
New Markets and Off-Road Systems

                                 3 months                      12 months
                               ended Dec. 31                  ended Dec. 31
 ($ in millions)           2012          2011       change   2012       2011       change

 Revenue                           -            -     -             -          -     -

 Gross margin                      -            -     -             -          -     -

 Gross margin percentage           -            -     -             -          -     -

 Operating expenses        $     3.6 $     1.3      177%     $ 12.3 $     3.1      297%

 Segment operating
                               (3.6)      (1.3)     177%      (12.3)     (3.1)     297%
 income (loss)




                                                                                            30
Corporate and Technology Investments

                            3 months                    12 months
                          ended Dec. 31                ended Dec. 31
 ($ in millions)      2012          2011     change   2012      2011     change

 Service revenue      $     7.8 $     9.8 (20%)       $ 23.2 $ 14.3      62%

 Operating expenses        27.0      13.5    100%       73.4     43.0    71%

 Segment operating
                          (19.2)     (3.6)   433%      (50.2)   (28.8)   74%
 income (loss)




                                                                                  31
Overcoming Challenges
Perception            Actual
Emerging              Global patent portfolio protects our technology leadership position and OEM relationships
competition
Dependent upon        OEM-centric business model allows Westport to grow quickly and minimize capital investments
OEM partners          Westport is an essential partner to help OEMs improve their competitive position, increase market
                      share, and get to market faster with natural gas engines
Profitability is      Westport is focused on long-term sustainable profits—establishing technology & market leadership
unclear               Product launches will generate new investment returns while increasing economies of scale will
                      drive cost reductions and enhance operational efficiencies
                      Cummins Westport and Weichai Westport have proven our profitable business model
High average          Westport 15L HPDI system ASP has decreased by 11% year over year (2012 vs. 2011)
selling price (ASP)   Westport WiNG Power System is priced at an industry-leading $9,500
Limited fueling       Clean Energy Fuels, Shell, ENN, Encana, Chesapeake, ConocoPhillips, and others have committed
infrastructure        to build the natural gas infrastructure in N.A., China and Europe

Automotive            >90% of the vehicles sold globally are light-duty1 and >64% of transportation fuel is consumed by
market is             light-duty vehicles in the U.S.2
unattractive          Westport has relationships with 8 of the 10 largest automotive OEMs in the world
                      Westport Applied Technologies business unit gross margin for the year ended December 31, 2012
                      was 27.6%
                      Combustion technology development programs with GM highlight strong technology and competitive
                      advantage
                       1.The Gas Vehicles Report, September 2012
                       2.NPC Future Transportation Fuels Study, August 2012                                               32
Pure-play global leader for
natural gas as a transportation fuel

                               Capital
                Valuable                    Talented &
    Strong                   Efficient &
               Strategic &                 Experienced
 First-Mover                  Scalable
                Business                   Management
 Advantage                    Business
                Alliances                      Team
                               Model


                www.westport.com

                                                         33

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Westport 2012 AGM Presentation

  • 1. The global leader in natural gas engines. Powering transportation. Driving change. Westport 2012 AGM stock symbols market capitalization TSX NASDAQ CAD USD WPT WPRT $1.6 billion $1.6 billion April 11, 2013 1
  • 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. Westport Engineers Advanced Natural Gas Engines  We are enabling the global shift to a cleaner, cheaper, more sustainable energy source for transportation and fundamentally changing the way the world travels the roads, rails and seas. market focus position opportunity Leading the Strong first mover global shift in advantage with Shifting products transportation unmatched from ―proof of from petroleum IP, relationships, concept‖ to fuels market widespread to methane coverage, product global adoption (natural gas) s, and capabilities 3
  • 4. Westport at a Glance  Through its market focus and position, Westport has moved from proof of concept to capture the global emergence of natural gas vehicles through a broad range of transport applications. 4
  • 5. Investment Highlights 1. ​Key markets are established – Westport is focused on rapid introduction of new products establishing technology standards and harvesting investment returns 2. Aggressive price and performance improvements in all markets to encourage accelerated adoption 3. Leverage key OEM partnerships allowing for fast and profitable scale up at low risk for all stakeholders 4. Continue developing new markets and new partnerships 5
  • 6. Accelerated Market Adoption  Adoption rate in leading markets moving faster than the gasoline to diesel transformation  Clean Energy Fuels, Shell, Encana, ENN, and others are leading the build-out of natural gas stations and fuelling infrastructure around the world 100% New sales of Class 8 diesel trucks, USA1 75% Share 50% New registrations New sales of natural gas of diesel passenger refuse trucks, USA3 cars, Europe2 25% 0% 1950 1970 1990 2010 2030 Data sources: 2. ACEA 1. MacKay & Co., & Wards Auto Group, a 3. Westport 6 division of Penton Media, Inc. 4. Westport
  • 7. Westport is the Technology Leader  Global patent portfolio pivotal to Top 10 Companies with Westport‘s market leading Natural Gas Engine Related Patents* position with OEMs Westport 325  Worldwide, Westport and its Toyota 218 affiliates have filed over 700 Fiat 191 patent applications relating to Bosch 169 over 180 inventions in: Ford 167  engine technologies GM 162  fuel system components CAT 158  control methods Honda 142  vehicle integration Siemens 141  other related technologies Daimler 121  Established strong development 0 100 200 300 400 lead times and barriers to entry * Based on the patent search results of publicly available data within the International Patent with over $390M in R&D and Classification F02, meeting the search term criteria: one of ("engine" or "combustion" or "injector" or "injection valve") and ("natural gas" or "methane" or "gaseous fuel") and not ("fuel cell" or "turbine"). This chart includes issued or granted patents from: Australia, Brazil, Canada, China, commercialization since 1995 European Patent Office Grants, France, Germany, India, Italy, Japan, Poland, Russia, Spain, UK, USA, USSR, and pending published patent applications from: the European Patent Office, USA, and the World Intellectual Property Office. as of January 22, 2013 7
  • 8. Converting R&D to ROI  Proprietary technology enables latest diesel and gasoline engines to operate on natural gas (or other gaseous fuels)  Compatible with current and future engine technology; preserves Product Commercialization Roadmap and improves performance, efficiency, emissions earlier 2011 2012 2013 2014 2015 Westport 2.4L Ford F-250/350 Ford F-450/550 Volvo 13L Cummins Westport Volvo V70 Industrial Engine Westport WiNG Westport WiNG Westport HPDI ISB6.7 G Cummins Westport Westport Westport JumpStart 5.9L & 8.3L LNG Tank System Cummins Westport Cummins Westport 8.9L ISL G ISX12 G Westport HPDI 15L Weichai Westport WP12HPDI Weichai Westport 6.8–11.6L Westport Product colour legend automotive urban trucking off-road fueling 8
  • 10. Historical Success: Urban Return-to-Base Fleets San Pedro Bay Ports Los Angeles Las Vegas Ontario 10
  • 11. Cummins Westport Joint Venture  50:50 JV established in 2001,  Key recent growth driver: revised 2004 and 2012 (ten year deal)  refuse trucks in North America – approaching 50% natural gas market penetration  28% revenue CAGR from CY 2006–2012  medium truck applications Products ISL G ISX12 G ISB6.7 G 8.9L 11.9L 6.7L SEGR SEGR SEGR 250–320hp 320–400hp 660–1,100 lb-ft 1,150–1,450 lb-ft available now 2013 launch 2015 launch 11
  • 12. Addressable Market: Urban Commercial Fleets in North America annual current future CWI Engines in North America by Segment market CWI CWI (cumulative) 30,000 turnover engine engine 5,000 – Transit Bus ISL G n/a Truck 6,0001 25,000 Refuse Coach, 2,000 – ISB6.7 G Coach/Shuttle/Specialty Shuttle, ISL G 4,0002 (2015) 20,000 Speciality School Bus School Bus 20,000 – ISB6.7 G Transit n/a Type C 30,0003 (2015) 15,000 School Bus 3,000 – ISL G n/a Type D 6,0003 10,000 Refuse 5,000 – ISX12 G ISL G Truck 7,0004 (2013) 5,000 71,000 – ISB6.7 G Class 6 & 7 ISL G 97,0005 (2015) 110,000 – ISX12 G 0 Class 8 ISL G 199,0006 (2013) 1. New Flyer Annual Information Form March 2012 4. CWI analysis 2. CWI analysis 5. ACT Research of all OEMs’ sales in class 6 & 7 from 2009-2011 12 3. School Bus Fleet magazine annual market survey 6. ACT Research of all OEMs’ sales in class 8 from 2009-2011
  • 13. Cummins Westport Financial Summary USD$MM 2007 2008 2009 2010 2011 2012 Revenue $ 66.4 $ 92.9 $ 101.5 $ 117.1 $ 163.9 $ 198.0 Cost of revenue 43.2 68.3 69.3 71.8 92.4 136.6 Expenses 13.1 14.8 16.3 18.1 22.1 26.1 Operating income* $ 10.1 $ 9.8 $ 15.9 $ 27.2 $ 48.4 $ 35.4 Operating income % 15.2% 10.5% 15.7% 23.2% 30.1% 17.9%** Capital expenditures - 0.2 - 0.4 0.3 0.2 * Excludes foreign exchange effects and bank charges ** The decrease in CWI operating income percentage for the year ended December 31, 2012 was primarily due to warranty adjustments as a result of fleets using smaller CWI ISL G 8.9L engine in broader applications with higher duty cycles in order to take advantage of strong economic benefits of driving natural gas trucks. Excluding warranty adjustments and higher extended coverage claim impact, CWI operating income percentage would have been 26%. 13
  • 14. INCREASE IN FUELLING INFRASTRUCTURE TRUCKING & AUTOMOTIVE APPLICATIONS 14
  • 15. Growth in LNG Fueling Infrastructure Public – open Built – not open 2013 – planned Source: Westport analysis January 2013, Clean Energy Fuels, Encana, Shell, and BLU., FortisBC, Gaz Metro 15
  • 16. Market Forecast North American Class 8 Natural Gas Trucks 20% 15% 10% 5% 0% 2012 2013 2014 2015 2016 2017 16
  • 17. North America: Natural Gas Offerings for the Trucking Market regional haul long haul heavy haul Engine size 8–12L 13–15L 15–16L Annual sales volume* 52,500 117,200 30,000 Current engines CWI ISL G Westport 15L Westport 15L Development engines CWI ISX12 G [2013] Volvo 13L (w/ Westport HPDI) [2014] Westport 15L Kenworth Freightliner Mack T440 T470 T660 T800B T800SH W900S M2 - 112 SD - 114 Cascadia Granite / Pinnacle legend 9 CWI ISL G 9L 9 9 12 15 12 9/12 9 9 12 12 12 CWI ISX12 G Navistar Peterbilt Volvo TranStar 320 382 384 365 367 386 388 VNM VNL 15 Westport 15L 9 9/12 9 9/12 9/12 15 15 15 9 12 *Polk database of new truck sales based on 2011 registrations, Westport analysis 17
  • 18. Global Truck Market Opportunity  China first, followed by India and Europe China LNGV Population Natural Gas Stations in China LNG Station 3,000 CNG Station 14 12 2,500 33% 350 118% 10 CAGR CAGR 2,000 (thousands) 8 1,500 123 20 6 13.3 15 2,500 1,000 4 1,604 1,477 1,329 500 2 3 4 7 5.8 293 355 410 480 537 3.1 0 0 0.3 0.7 0.9 2003 2004 2003 2004 2005 2006 2005 2006 2007 2008 2007 2008 2009 2010 2009 2010 2011 2011 Sources: China Automotive Technology and Research Center, www.chinaev.org, China Road Transport Association, Westport analysis 18
  • 19. Strong Growth in China  First announced Weichai Westport JV in 2008; formal JV commenced July 2010 Hong Kong  Light-duty component business has >60% share in China* Peterson (CNG) Equipment 35%  Existing NG engine business demonstrating strong growth in China 25% 40%  Current priorities: launch Westport HPDI technology for Asian market in 2013 with broad LNG infrastructure  Westport revenue model  Sale of components to JV and to vehicle OEMs  Participate in the JV‘s profitability Weichai Westport Financial Summary USD$MM 2008 2009 2010 2011 2012 Revenue $ 9.9 $ 19.0 $ 44.8 $ 109.8 $ 272.1 Cost of revenue 8.1 15.7 35.9 90.1 234.3 Expenses 1.6 2.5 6.4 14.1 28.1 Net income $ 0.1 $ 0.8 $ 2.4 $ 5.6 $ 8.2 Net income % 1.3% 4.2% 5.4% 5.1% 3.0% WPT 35% interest* - - $ 0.6 $ 1.9 $2.9 Engines sold 720 1,696 3,602 8,451 22,025 * Westport began reporting its income from WWI in July 2010 *Westport analysis 19
  • 20. Fuel Storage Applications: The New Westport™ LNG Tank System  Proprietary Westport technology, hydraulic optimized for spark-ignited power module engines, such as CWI  The 120 or 150 gallon single-tank systems can run for ~350 to 450 miles, respectively, on cold (unsaturated) LNG tank LNG fuel – ranges double for and pump module dual-tank  A single 150 gallon Westport LNG Tank System takes the place of 3 standard CNG tanks, lowering fuel storage costs, speeding up refueling, and reducing overall vehicle weight by 600 lbs  Fuel-flexibility with either warm (saturated) or cold (unsaturated) LNG – increasing vehicle range by up to 10% when using cold LNG driver display  westport.com/is/core-technologies/westport-lng-tank-system 20
  • 21. Global Automotive Market  Approximately 14.9M1 natural gas passenger car & light commercial vehicles on the road  Approximately 79.5M2 passenger car & light commercial sales annually for all fuel types  Approximately 1.5M3 compressed natural gas vehicle sales annually including aftermarket Canada & USA4 Western Europe4 Eastern Europe4 Greater China4 Light Vehicles Light Vehicles Light Vehicles Light Vehicles Produced 12.6M Produced 12.8M Produced 6.3M Produced 18.7M Light Vehicles Light Vehicles Light Vehicles Light Vehicles Sold 16.2M Sold 13.2M Sold 5.1M Sold 19.2M Latin America4 India4 Australia & NZ4 Light Vehicles Light Vehicles Light Vehicles Produced 6.8M Produced 3.8M Produced 0.2M Light Vehicles Light Vehicles Light Vehicles Sold 6.8M Sold 3.3M Sold 1.1M ‗Light vehicle‘ refers to passenger cars, light passenger trucks & 1.NGVA Europe (2012) 3.NGV Global (2011) vans, minibuses, and light commercial vehicles usually less than 3.5 21 2.IHS (2012) 4.IHS (2012) tons and not more than 7 tons
  • 22. NGV Components & Complete Solutions off-engine on-engine complete industrial engines components components complete systems designed to specific OEM platforms 22
  • 24. Significant Off Road Opportunities target vehicles opportunity OEM partners worldwide units MINING (RESOURCE EXTRACTION) mine haul 19,406 engine units 2bn gal of diesel consumed annually by (>127 ton)4 trucks the top 10 mining companies alone 13,890 engine units drill rigs and operating around the world1 (drill rigs & frac frac pumps pumps)5 RAIL diesel mainline Rail industry consumes 9bn gal of freight diesel fuel annually, half of this in North 50,594 engine units locomotives America2 (mainline diesel Fuel represents approximately 24% of locomotives)6 passenger US railroad operating costs3 locomotives MARINE ferries Marine industry consumes 13bn gal of diesel fuel annually2 tugboats Emissions reduction in sensitive coastal and inland waterways are a priority 25,000 engine units PSVs (small vessels)7 Some examples of LNG ferries and work and platform support vessels (PSV) in crew boats Scandinavia, but no widespread adoption yet 1. Morgan Stanley/Parker Bay, Westport analysis 2012, Westport Analysis by SCI Verkehr GmbH, Westport analysis 2. UN Energy Statistics Database 2008 5. Baker Hughes Rotary Rig Count Report, Westport 7. Diesel and Gas Turbine Magazine 2011 Marine 3. Burlington Northern 2008 Annual Report analysis Propulsion Order Survey, Westport analysis 24 4. Parker Bay Mobile Mining Equipment Database 6. Diesel Locomotives – Global Market Trends 2011
  • 25. North America: Potential Off-Road Business Models Fuel Delivery proprietary cryogenic components deliver high pressure fuel Fuel Storage LNG fuel storage solutions Engines Apply Westport HPDI technology 25
  • 27. Business Unit Realignment Previous Structure Realignment Light Duty Applied Technologies  OMVL and Emer (Italy)  Westport (Sweden) - Volvo V70 bi-fuel system  aftermarket conversion kits, direct to OEM systems  OMVL and Emer (Italy)  Westport (Australia)  aftermarket conversion kits, direct to OEM systems  Wesport (Australia) On-Road Systems  Westport™ WiNG Power System for Ford F-250/350/450/550  Westport (Sweden) - Volvo V70 bi-fuel system  Westport™ 2.4L and Westport™ 3.8L Industrial engines  Westport™ WiNG Power System for Ford F-250/350/450/550  Mobile and stationary industrial applications incl. forklifts  Westport™ 2.4L and Westport™ 3.8L Industrial engines  Mobile and stationary industrial applications incl. forklifts Heavy Duty  Westport™ 15L system with Westport™ HPDI technology  Westport™ 15L system with Westport™ HPDI technology  Volvo 13L system with Westport™ HPDI technology  Volvo 13L system with Westport™ HPDI technology  Westport™ LNG Tank System (North America)  Weichai Westport HPDI 12L system  JumpStart mobile refuelling solutions  Westport™ LNG Tank System (North America)  Products for On-Road Systems after development  JumpStart mobile refuelling solutions New Markets and Off-Road Systems Corporate including High-Horsepower  Weichai Westport HPDI 12L system  CAT development program  Products for Off-Road Systems after development  SDTC / EMD development program Corporate and Technology Investments  Tata Motors development program  GM, CAT, Tata, and Volvo development programs  GM development programs  SDTC / EMD development program Joint Ventures  2 new OEM development programs  Cummins Westport and Weichai Westport Joint Ventures  Cummins Westport and Weichai Westport 27
  • 28. Applied Technologies 3 months 12 months ended Dec. 31 ended Dec. 31 ($ in millions) 2012 2011 change 2012 2011 change Revenue $ 19.8 $ 19.5 2% $ 91.7 $ 62.1 48% Gross margin 5.3 3.7 43% 25.3 13.0 95% Gross margin percentage 26.8% 19.0% - 27.6% 20.9% - Operating expenses 3.8 4.1 (7%) 14.4 11.6 24% Segment operating 1.4 (0.4) 450% 10.8 1.4 671% income (loss) 28
  • 29. On-Road Systems 3 months 12 months ended Dec. 31 ended Dec. 31 ($ in millions) 2012 2011 change 2012 2011 change Revenue $ 12.4 $ 13.6 (9%) $ 40.7 $ 24.5 66% Gross margin 0.4 0.8 (50%) 4.6 (0.5) 1,020% Gross margin percentage 3.2% 5.9% - 11.3% (2.0%) - Operating expenses 14.9 12.6 18% 47.9 35.1 36% Segment operating (14.5) (11.9) 22% (43.3) (35.6) 22% income (loss) 29
  • 30. New Markets and Off-Road Systems 3 months 12 months ended Dec. 31 ended Dec. 31 ($ in millions) 2012 2011 change 2012 2011 change Revenue - - - - - - Gross margin - - - - - - Gross margin percentage - - - - - - Operating expenses $ 3.6 $ 1.3 177% $ 12.3 $ 3.1 297% Segment operating (3.6) (1.3) 177% (12.3) (3.1) 297% income (loss) 30
  • 31. Corporate and Technology Investments 3 months 12 months ended Dec. 31 ended Dec. 31 ($ in millions) 2012 2011 change 2012 2011 change Service revenue $ 7.8 $ 9.8 (20%) $ 23.2 $ 14.3 62% Operating expenses 27.0 13.5 100% 73.4 43.0 71% Segment operating (19.2) (3.6) 433% (50.2) (28.8) 74% income (loss) 31
  • 32. Overcoming Challenges Perception Actual Emerging Global patent portfolio protects our technology leadership position and OEM relationships competition Dependent upon OEM-centric business model allows Westport to grow quickly and minimize capital investments OEM partners Westport is an essential partner to help OEMs improve their competitive position, increase market share, and get to market faster with natural gas engines Profitability is Westport is focused on long-term sustainable profits—establishing technology & market leadership unclear Product launches will generate new investment returns while increasing economies of scale will drive cost reductions and enhance operational efficiencies Cummins Westport and Weichai Westport have proven our profitable business model High average Westport 15L HPDI system ASP has decreased by 11% year over year (2012 vs. 2011) selling price (ASP) Westport WiNG Power System is priced at an industry-leading $9,500 Limited fueling Clean Energy Fuels, Shell, ENN, Encana, Chesapeake, ConocoPhillips, and others have committed infrastructure to build the natural gas infrastructure in N.A., China and Europe Automotive >90% of the vehicles sold globally are light-duty1 and >64% of transportation fuel is consumed by market is light-duty vehicles in the U.S.2 unattractive Westport has relationships with 8 of the 10 largest automotive OEMs in the world Westport Applied Technologies business unit gross margin for the year ended December 31, 2012 was 27.6% Combustion technology development programs with GM highlight strong technology and competitive advantage 1.The Gas Vehicles Report, September 2012 2.NPC Future Transportation Fuels Study, August 2012 32
  • 33. Pure-play global leader for natural gas as a transportation fuel Capital Valuable Talented & Strong Efficient & Strategic & Experienced First-Mover Scalable Business Management Advantage Business Alliances Team Model www.westport.com 33