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Explore Every Alternative.

WPT Analyst Day

October 13, 2011



Cummins Westport Inc. (CWI) is a Joint Ventureof Westport & Cummins

Cummins Inc.

“CWI”

Cummins Westport Inc.

50/50

Cummins Inc.Westport

Innovations Inc.



CWI: JV is Fully integrated within Cummins

3

ProductEngineering

Cummins Tech Center Cummins VPI Process

Cummins AccountTeams & Distributors

Manufacturing

Warranty

Cummins Plants

Parts& Service Cummins Distributors

Sales

Cummins Warranty



Cummins Westport Inc.30,000 Automotive Engines Delivered

4



5

Market Leader Alternative Fueled Engines

2001 – Cummins Westport Inc. - Joint Venture formed. 2001 - First engine certified EPA 2004 (C Gas Plus) 1.8 g/bhp-hr.

2002 – B Gas Plus introduced

2004 – Joint Venture Amended to focus on SI 6-9L NG engines

2004 – L Gas Plus 8.9 litre engine introduced at 1.5 g/bhp-hr

2005 – B Gas International introduced – production at CIL and DCEC

2007 – First 2010 compliant HD engine – ISL G – 0.2 g/bhp-hr.

• Stoichiometric EGR combustion

• Three Way Catalyst

2008/10 – Conventional Truck OEM availability

2011 – 10th Year Anniversary of Joint Venture

2011 – 10,000 ISL G engine delivered

2011 – 30,000 NG engine delivered



Sales revenues have grown from $28m to $117mwhile PBIT has improved from ~7% to 23%

6

$27.5

$34.0

$45.4

$66.4

$92.9

$101.5

$117.1

7.0% 5.1%

9.4%

14.6%

10.0%

15.7%

23.0%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

40.0%

45.0%

50.0%

$-

$20.0

$40.0

$60.0

$80.0

$100.0

$120.0

$140.0

2004 2005 2006 2007 2008 2009 2010

% o f S a l e

s

$ M i l l i o n s

Revenue

PBIT%



CWI Historical Performance

CWI’s revenues have grown at a 27% CAGR since being reformed in 2004,

driven by a mixture of new products, new market segments, and newregions.

The U.S. market has been the largest growth opportunity for CWI (75% of unit volume and 77% of revenues in 2010), but India and Latin America

have also been key growth regions.

Initially focused on bus opportunities, the truck and refuse segments nowgenerate >40% of CWI’s unit volumes. The ISL G has enabled this growthin truck/refuse.

Profitability has improved over five years. PBIT has increased from ~7% to23% as a result of improved product reliability and SAR management.

7



Why Natural Gas Trucks and Buses?

Environmental Leadership ISL G Met Regulated 2010 EPA/Euro EEV in 2007

20% Lower greenhouse gas emissions

Energy Security

Reduced reliance on oil

Biomethane capable

Economic Benefits

Improved Reliability

Improved Efficiency

Lower total fuel costs



CWI Market Strategy

Develop, build and support great engines

Create wide OEM availability

Leverage Cummins OEM, Distributor, Dealer

Networks Engage with NG Industry to support customer

adoption

Develop strong relationships with key customers



CWI’s Key Growth Strategies

Product line expansion NA truck market penetration

China OEM export strategy

Develop availability with integrated OEM’s



CWI Growth – 2001 to 2010

12

15%

7%

75%

3%

North America

Latin America

EMEAAsia

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

2 0 0 1

2 0 0 2

2 0 0 3

2 0 0 4

2 0 0 5

2 0 0 6

2 0 0 7

2 0 0 8

2 0 0 9

2 0 1 0

CWI Volume Growth Source of Growth

75% of volume growth since 2001has been driven by North America



North America sales history is complex. Manyevents have helped shape CWI’s results.

13

855 852

1,175

1,684

3,340

2,429

2,901

3,390

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

2004 2005 2006 2007 2008 2009 2010 2011F

U n i t s

CWI Sales in Americas

DetroitExits

Highway Bill

Fuel Credit

ISL G

Launch

DeereExits

Energy BillVehicle Credit

LA/LB PortIncentives

Prop 1BSB Funding

Refuse Market!

CreditsEnd

$0.75 $1.88$1.75NG Price Advantage (DGE) $0.40 $0.92

???



Natural gas market drivers – Rings of Value

Gov’tMandates

Emissions SensitiveCustomers

High fueluse vehicles

Low/Medium fueluse vehicles

SCAQMD

fleet rules

Segment minimized withNOx / PM parity Growing“green” image of NG

• Transit• Refuse• HD Truck

• MD Truck• School bus• Walk in van

Economic MarketBoundary(no incentives)

Emissions MarketBoundary(current technology)

14



CWI International Product Line

5.9 Litre Lean Burn195–230 hp420–500 lb-ftEURO V, EEV

8.3 Litre Lean Burn250-280 hp660-850 lb-ftEURO IV

8.9 Litre

Stoich EGR250-320 hp660-1000 lb-ftEuro EEV,EPA 2010

LNG



CWI engines in International Markets

Majority of CWI’s international sales are for Transit Bus applications

Liaz Bus - Russia

Ashok Leyland - India

PVI-Renault – France

BMC - Turkey

Solaris - Sweden

PVI-Renault – France

Tata - India



Success – Peru

Identified attractive dynamics early

– Corridor project, natural gas plentiful

Built relationships with governmentagencies

– National, state, local, public

transportation

Created OEM availability in market

– Local OEMs initially unresponsive,pulled in Chinese OEMs first

Convinced fleets & OEMs that CMIchannel is capable.

– Local Cummins distributor support keyto project

17

Chinese OEM’s Domestic OEM’s



Global Products - 2011



• 2007 - 1st Heavy Duty Engine Certified

2010 EPA

• 2008 - # 1 Natural Gas Engine in Transit

• 2009 - #1 Natural Gas Engine in Refuse

• 2010 - #1 Natural Gas Engine in

Conventional Truck

•2011 - 10,000th ISL G delivered

19



CWI Combustion TechnologySpark Ignited Stoichiometric with Cooled EGR

20

TThree Way

Catalyst

O2

Sensor

EGR Cooler

C h a

r g e A i r C o o l e r

O2

Sensor

Throttle

Fuel

Spark Ignited

Spark

Plug

• Fuel and air are premixedoutside the cylinder

• Spark plug ignites the mixture

• Air flow controls fuel flow

• Air/Fuel ratio controls emissions



Aftertreatment Comparison: ISL G systemis simple compared to 2010 Diesel

21

Cummins TWC

HeatedUrea Tank

Urea

Dosing

Control

Unit

ECM

SCR Catalyst Particulate Filter

(diesel)

ISL G

(natural gas)



Established ISL G Applications

REFUSEBUS

Traditional hub and spoke public operations arefoundation of natural gas fleet penetration



Transit ISL G Availability

Top North American CNG Transit Fleetsover

8,000engines in

service

LAMTA, Los Angeles, CA OCTA, Orange County, CA Big Blue Bus, Santa Monica, CA

TransLink, Vancouver, BC NY / Long Island Transit, NY San Diego Transit, CA

Foothills Transit, SanGabriel Valley, CA

RTC Transit, Las Vegas, NV HSR, Hamilton, ONT

Fort Worth, TX Santa Clara, CA

Tacoma, WA St. Louis, MO

OEM New Flyer NABI Orion ElDorado Gillig

Model 30/35/40 Low Floor 35/40 Low Floor

60 BRT

Orion V HF

Orion VII LF

EZ Rider II 30/35/40 LowFloor

Fuel CNG CNG CNG LNG/CNG CNG

Engine ISLG 280 ISLG 280

ISL G 320

ISL G 280 ISLG 280 ISLG 280



Transit bus demand is lumpy. Large fleet tenders drivevolumes, but demand hibernates until next tender.

Turkey2012?

Algeria2013

Serbia2012

Madrid2013

Moscow2013

Venezuela2011 +

Dallas2013+

NewYork2011+

Thailand2,013?

24

Los Angles2013 -16

Sweden

2010+

ChinaMultiplefleets

Peru2010+

Pakistan2012+

India2010+

■CWI captures ROW opportunities primarily throughexporting Chinese OEM’s, 2 tier European OEM’s, and

India domestic manufacturing.



North America Transit Bus SummaryAPTA Data

Bus Deliveries Total Fleet

Avg

Fleet

Age % Diesel # Buses % CNG # Buses % Hybrid # Buses Trolley Fuel Cell

2005 4527 16% 724 82,027 7.5 85.1% 69,805 13.8% 11,320 1% 902

2006 4673 21% 972 83,080 7.5 83.1% 69,039 15.2% 12,628 2% 1,412

2007 3590 22% 804 65,249 7.5 82.1% 53,569 15.6% 10,179 2% 1,501

2008 2562 32% 810 66,506 7.5 77.7% 51,675 18.5% 12,304 4% 2,527

2009 3912 30% 1189 64,832 7.5 76.8% 49,791 18.3% 11,864 5% 3,177

2010 -

2005 1393 10% 145 12,566 96% 12,043 1.6% 197 0% 50 276

2006 944 13% 126 13,035 95% 12,425 1.5% 197 1% 137 276

2007 1240 25% 313 13,468 94% 12,723 1.3% 180 2% 300 265

2008 1302 32% 416 13,905 92% 12,770 1.2% 163 5% 716 256

2009 1277 22% 283 15,121 91% 13,706 0.9% 138 7% 999 258 20

2010

2005 5920 15% 869 94,593 87% 81,848 15.4% 11,517 1% 952 276

2006 5617 20% 1098 96,115 85% 81,464 16.7% 12,825 3% 1,549 276

2007 4830 23% 1117 78,717 84% 66,292 16.9% 10,359 5% 1,801 265

2008 3864 32% 1226 80,411 80% 64,445 19.7% 12,467 9% 3,243 256

2009 5189 28% 1472 79,953 79% 63,497 19.2% 12,002 12% 4,176 258 20

AVG 5084

Alt Fuel

(incl Hybrid)

North America

USA

Canada

Annual North American build rate is approx 5-6000 new units per year

Natural gas share ranges from 15-25%

CWI has had success supplying ISL Gs to the natural gas bus mid life repower market



Truck Classifications

CLASS Typical Vehicles Engine

5 ISB6.7

6ISB6.7

ISL G

7ISL G

ISX11.9 G

8ISL G

ISX11.9 G

26



Two Types of Refuse Collection Trucks

Cab Over Conventional

Majority of market build is cab over Truck OEM’s build chassis and ship truck to “body builders”(McNeilus, Heil, Labrie etc) , who install collection system Body builders also install NG fuel systems.

Autocar/McNeilus

Freightliner/Labrie



Cab Over Refuse Truck AvailabilityOEM AutoCar Mack Peterbilt American

Lafrance

Crane Carrier

Model Xpeditor TerraPro LE

Terra Pro CO

320 Condor LET

Fuel LNG/CNG LNG/CNG LNG/CNG LNG/CNG LNG/CNG

Engine ISLG 320 ISLG 320 ISL G 320 ISL G 320 ISLG 320

.

LNGOR

over

4,000engines in

service

North America Refuse FleetsCity of Los Angeles, CA Cit of Toronto Miller Waste, Ont

Republic Service City of Sacramento, CA EMI, Que

Specialty Solid Waste Long Island, NY City of Surrey, BC

City of New York Smithtown, NY

Denver, CO Waste Management(MN, WA & BC)



North America Refuse Truck Summary

Annual North American build rate is approx 5,000 to 8,000 new units per year

CWI market share has ramped to 15-20% in 2010 as a result of ISL G success

Stronger penetration expected as Refuse market adopts NG as key competitive strategy



30

Truck OEM’sOEM Freightliner Peterbilt Kenworth Volvo

Model M2 – 112

SD - 114

320

384

365

T800SH

W900S

T440

T470

VNM

Engine ISLG 320

ISL G 300

ISL G 320 ISLG 320 ISL G 320

Application 6x4 Tractor

4x2 Tractor

4x2 Truck

6x2 Truck

Vocational

Tractor

Vocational

Mixer

Tractor

Vocational

Mixer

Tractor

(New OEM in 2011)

LNGOR

over

1,200engines in

service



Emerging CWI Truck Market

Cummins Westport Confidential 31

Freightliner SD114 Roll Off

McNeilus Cement Mixer

Kenworth T440 Fair Oaks Farms (Biomethane)



Other OEMs

OEM

ThomasBlue Bird

CapacityAutocar

MCI

Application School Bus Yard Tractor Motor Coach

Model Type D Capacity – TJ9000

Autocar - Xspotter

40 and 45 ft

Engine ISLG 250 ISL G 250 ISLG 320

32

LNGOR

MCI new OEM,with an order of

84 units for

LADOT

Delivered over 500 school bus

engines in

2010



Thank You

Jeff Campbell

Director, Product MarketingRegional Sales Canada

Tel: 604 718-2099Email: [email protected]

www.cumminswestport.com

mailto:[email protected]

mailto:[email protected]

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