Overview Westport

January 9, 2013

Who Are We? A Joint Venture of Westport & Cummins

Cummins Inc.

50% 50%

Delivered over 35,000 engines. 2011 Revenue = $139M New 10 year Agreement 2012 2 Cummins Inc.

. More than 75 years –Leader in American diesel manufacturing . World’s largest builder of commercial diesels . Designs, manufactures, distributes, and services – electric power generation systems, engines, and related technologies, including fuel systems, controls, air handling, filtration, and emissions solutions. . Headquartered in Columbus, Indiana (USA), – serves customers in approximately 190 countries and territories through a network of more than 500 company-owned and independent distributor locations and approximately 5,200 dealer locations. – Cummins reported sales of $18 billion in 2011 . Cummins product development & manufacturing alliances include: – Case, New Holland, IVECO, Komatsu, Westport, and Scania.

3 Westport Innovations Inc.

. Recognized as the world leader in gaseous fuel engine technology . Originated from research at UBC in early 1990’s . Public company on TSE, formed in 1995 . 170 people at Westport (including Cummins Westport, Westport Europe and Westport Germany) Vancouver, BC, Canada . State-of-the-art facilities in Vancouver, Canada: 7,400 m2 (78,000 ft2) of laboratory and office space . Leading expertise and industry relationships

Technology Innovation and Application Award 4 Why Natural Gas Engines for Buses & Trucks?

Environmental Leadership  Meets Regulated 2010 EPA/CARB  Lower greenhouse gas emissions

Economic Benefits Energy Security  Improved Reliability  Reduced reliance on oil  Improved Efficiency  Biomethane capable  Lower total fuel costs  Pathway to hydrogen

5 Why Natural Gas?.... A Simpler Cleaner Fuel

Complex Hydro Carbon

Simple Hydro Carbon

Natural Gas (methane) has highest hydrogen-to-carbon ratio of any hydrocarbon

6 Natural Gas has Many Advantages !

It produces up to 25% less It is It is safer greenhouse Locally & than liquid gas Globally fuels abundant

It costs up to 50% less than gas or diesel

It can be transported anywhere Methane (CH ) 4 7 Energy Security: Natural Gas is abundant in North America.

98%

34%

New NG drilling technologies are unlocking substantial amounts of natural gas from shale. U.S. estimated NG reserves have surged by 35% since 2008.

8 Recent market activity points to “corridors” that support the on highway market for natural gas.

Step 1: Serve Local/Regional Trucking Hubs

Step 2: Serve Lanes that Connect the Hubs

Cummins Westport Confidential Dec 2011 Shale Gas fields in the U.S.

10 Economic Value: Which fuel offers the most value? Crude Oil Natural Gas

$100 $2 per barrel per 1000 ft3

5.8 million BTUs 1020 BTUs Natural Gas per barrel per 1000 ft3 is 85% less expensive than crude oil

$17 per $1.90 per Million BTUs Million BTUs

Cummins Westport Confidential Natural gas is significantly less expensive than crude oil and the gap is growing.

Natural Gas and Crude Oil Spot Prices $25.00

Natural Gas Henry Hub Spot Price $20.00 Crude Oil Cushing Spot Price

$15.00

$10.00

$5.00 Energy Price in Millions of BTUs ofMillions in Price Energy

$0.00 85%

1997 2000 2004 2007 2010 1998 1999 2001 2002 2003 2005 2006 2008 2009 2011 2012

1997 2000 2003 2007 2010 1998 1999 2001 2002 2004 2005 2006 2008 2009 2011

2000 2003 2006 2010 1997 1998 1999 2001 2002 2004 2005 2007 2008 2009 2011

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Jan Jan Jan Jan Jan Jan Jan Jan Jan Jan Jan Jan Jan Jan Jan Jan

Sep Sep Sep Sep Sep Sep Sep Sep Sep Sep Sep Sep Sep Sep Sep

May May May May May May May May May May May May May May May Less Jan 1997 - Mar 2012

Source: U.S. EIA (March 2012).

Cummins Westport Confidential Natural gas is the lowest cost transportation fuel in the USA, priced 39% less than diesel.

$1.47 per DGE 39%

Source: U.S. DOE / Clean Cities Price Report (July 2012).

Cummins Westport Confidential Natural Gas Transportation Solutions

light-duty bus & heavy-haul automotive vocational trucks transport & industrial

Critical performance, higher annual fuel use, high efficiency

 Today, feedstock is crude oil

Spark-ignited Direct-injection gasoline diesel

 Emerging, feedstock is natural gas!

Spark-ignited Direct-injection natural gas natural gas

14 Broad Range of Transport Applications

light-duty bus & heavy-haul high-horsepower automotive vocational trucks transport mining, marine & rail & industrial

15 Natural Gas Engine Technologies Spark-Ignited Dual-Fuel (DF) High Pressure Direct Injection (HPDI)

TAB

Operation  Gas and air pre-mixed at  Gas and air pre-mixed at  High pressure gas is low pressure low pressure injected directly in the  Air is metered using a  Air may be partially chamber throttle metered using a turbo air  No intake throttle  Ignition from spark plug bypass or a throttle  Ignition from specific  Uses either an oxidation  Ignition from diesel pilot diesel pilot injection catalyst or three-way catalyst injection (existing injector of  Diesel cycle (lean burn or stoich) specific pilot injector)  Otto cycle  Otto cycle / Diesel cycle

Fuel  100% NG  Typical substitution of  ~95% substitution System CNG or LNG 50~60% over duty cycle  Limited run on diesel Notes  No run on diesel capability  100% run on diesel  Requires high pressure capable LNG pump and vaporiser

16 Cummins Westport Product Line-up.

In 2015 Production 2013

6.7 Litre 8.9 Litre 11.9 Litre Spark Ignited Spark Ignited Spark Ignited SEGR SEGR SEGR Three Way Catalyst Three Way Catalyst Three Way Catalyst Cummins and Cummins Westport developing new on-highway natural gas engines

Available Available 2013 2015

2015 2013 Natural Gas Engines

19 Current Natural Gas Engine Specifications

ISL G ISX12 G Westport HD 15L Displacement 8.9 L 11.9 L 14.9 L Advertised Horsepower 250 – 320 320 – 400 400 – 475 Torque 730 – 1,000 1,150 – 1,450 1,450 – 1,750 Gov Speed 2,200 RPM 2,100 RPM 2,100 RPM Net Weight (Dry) 1,625 LB 2,650 LB 3,111 LB Ignition Spark Spark Compression (Diesel Pilot) GCWR 32K – 66K 32K – 80K 80K – 130K Fuel CNG or LNG CNG or LNG LNG Engine Brake NO YES YES Transmission Automatic Manual & Automatic Manual & AMT Applications Refuse, transit, medium-duty trucking, Heavy-haul, long- regional/local trucking haul, severe duty

20 What is Stoichiometric Combustion? . Ideal combustion process where fuel is burned completely

– Ideal air/fuel ratio - chemically correct mixing of fuel and air

– Consumes all fuel & air without excess of either in exhaust

– No Oxygen in exhaust stream allows Three Way Catalyst to handle NOx control

. Benefits: – Increased power density – Increased thermal efficiency – Decreased emissions

21 CWI Combustion Technology Spark Ignited Stoichiometric with Cooled EGR

Stoichiometric EGR Spark Three Way Catalyst Plug Architecture

Three Way Catalyst

EGR Cooler Spark Ignited

. Fuel, EGR and air are premixed outside the cylinder

. Spark plug ignites the mixture Air Cooler Charge Fuel . Air flow controls fuel flow Throttle . Air/Fuel ratio controls emissions

22 Three Way Catalyst

. TWC reduces three harmful emissions: NOX, CO, HC

. End products are: N2, CO2, H2O

. Packaged as part of muffler

. Simple, passive device

. O2 Sensor connects to ECM

. Consistent performance across all duty cycles

Catalyst Inlet Catalyst Outlet NO X N2 CO CO2 HC H2O

ISL G / ISX12 G TWC Engines Aftertreatment Comparison

SCR Catalyst Particulate Filter 2013 Diesel

Urea ECM Heated Dosing Urea Tank Control Unit

Cummins TWC

Three Way Catalyst

24 ISL G Natural Gas Engine

. 8.9 Litre (540 cu. In.) . In line 6 cylinder . Charge Air Cooled (CAC) . Spark ignition . Peak Rating: – HP-320 hp Torque -1000 lb-ft . Certified to 2013 EPA and CARB NOx and PM standards . Three Way Catalyst Aftertreatment . Manufactured by Cummins in Cummins Engine Plant- Rocky Mount, North Carolina . Over 15,000 in service.

25 ISL G Availability – Transit Buses

OEM NABI Orion ElDorado

Model 30/35/40 Low Floor 35/40 Low Floor Orion V HF EZ Rider II 30/35/40 Low 60 BRT Orion VII LF Floor

Fuel CNG CNG CNG LNG/CNG CNG

Engine ISLG 280 ISLG 280 ISL G 280 ISLG 280 ISLG 280 ISL G 320 North American CNG Transit Fleets

LAMTA, Los Angeles, CA OCTA, Orange County, CA Big Blue Bus, Santa Monica, CA over Boston, MA Washington DC Dallas, TX 8,000 TransLink, Vancouver, Canada NY / Long Island Transit, NY San Diego Transit, CA engines in service Foothills Transit, CA RTC Transit, Las Vegas, NV HSR, Hamilton, Canada Fort Worth, TX Santa Clara, CA Tacoma, WA St. Louis, MO ISL G Availability – COE Trucks

OEM AutoCar Mack American Crane Carrier Lafrance

Model Xpeditor TerraPro LE 320 Condor LET Terra Pro CO

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

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

North America Refuse Fleets . City of Los Angeles, CA City of Toronto Miller Waste, over Republic Service City of Sacramento, CA EMI, Quebec 4,000 Specialty Solid Waste Long Island, NY BFI / City of Surrey, BC engines in City of New York Smithtown, NY service Denver, CO Waste Management (USA, Ogden, Utah Canada) Violia Environmental

ISL G Availability – Conventional Trucks OEM Freightliner Peterbilt Volvo Navistar

Model M2 – 112 320 T800SH VNM TranStar SD - 114 384 W900S 365 T440 T470 Engine ISLG 320 ISL G 320 ISLG 320 ISL G 320 ISL G 320 ISL G 300 Application 6x4 Tractor Tractor Tractor Tractor Tractor 4x2 Tractor Vocational Vocational 4x2 Truck Mixer Mixer 6x2 Truck Vocational North America Truck Fleets over Cal Cartage, CA UPS Pac 9 1,500 Trucks Sysco Rush engines in service Dillon Transport Pepsico Waste Management Paper Transport Coca Cola 28 2013 Natural Gas Engine Introduction . Target Markets – Regional haul truck / tractor – Vocational – Refuse . Platform & Technology – Cummins 11.9 litre ISX12 diesel is base engine – Utilizing spark-ignition with cooled EGR & three way catalyst (TWC) • Same combustion technology as ISL G

2013 Natural Gas Engine . Key Product Attributes – 4 cycle, spark ignited, in-line 6 cylinder, turbocharged, CAC – Displacement – 11.9 litres (726.2 cu in) – Peak rating: 400 hp, 1450 lb-ft – EPA/CARB certified at or below EPA10 emission levels – Dedicated natural gas engine • Will operate on CNG or LNG • Capable of using up to 100% Biomethane – Three Way Catalyst after-treatment – Engine braking – Manual/Automatic Transmission capable • No AMT at launch Program Status Update – January 2013

. 25 truck field test trucks in operation. – Initial performance feedback has been excellent – Initial Quality Assurance (IQA) process with launch OEM is underway – Performance and fuel economy optimization continues. . Limited engine production remains on schedule to start in April 2013 – Limited Production max rating is 350 hp / 1,450 lb ft torque – All published ratings including peak 400 hp/1,450 lb-ft expected in July 2013 – Working with OEM re 2013 truck delivery schedules . Full Production expected August 2013

31 OEM Launch Partners

32 CWI OEM Availability - Summary North America OEM Model Segment ISL G ISX12 G Comments Applications: 6X4 Tractor (LNG, CNG), Freightliner Truck Business Class M2 112 (Class 7/8) MD/HD Truck X CNG - 4X2 Tractor, 6X2, 4X2 Truck, Vocational Cascadia HD Truck X ISX12 G - Mid 2013 Kenworth W900S MD/HD Truck X X Vocational/Mixer T440 / T470 MD/HD Truck X Local & regional haul, vocational. T660 HD Truck X ISX12 G - Mid 2013 Peterbilt Model 384 MD/HD Truck X X Model 384 - Tractor Model 365 MD/HD Truck X X ISX12 G - Mid 2013 Volvo VNM MD/HD Truck X VNL HD Truck X ISX12 G - Mid 2013 Mack Pinnacle HD Truck X ISX12 G - Mid 2013 Granite HD Truck X ISX12 G - Mid 2013 International TranStar MD/HD Truck X New 2012

American LaFrance Condor Refuse X AutoCar ACX Refuse X X ISX12 G - Mid 2013 Crane Carrier LCF Refuse X Peterbilt 320 Refuse X X ISX12 G - Mid 2013 Mack TerraPro Low Entry Refuse X Mack TerraPro Cab Over Refuse X

NABI 35 LFW/40 LFW/60 BRT Urban Bus X New Flyer 30 LF/35 LF/40 LF Urban Bus X Orion Orion V HF/Orion VII LF Urban Bus X Foton City - L40 CNG Urban Bus X Gillig LF Urban Bus X New 2011 MCI Commuter Coach 40/45 Motor Coach X New 2011 DesignLine Commuter Coach 40/45 Motor Coach X New 2012 El Dorado National Axess/E-Z Rider II/Transmark RE/XHF Shuttle X

Blue Bird All American School Bus X Thomas Bus Saf-T Liner School Bus X Capacity TJ9000 , TJ5000 Yard Spotter X AutoCar Xspotter Yard Spotter X

June, 2012 The Westport HD Engine

• (LNG) fuelled heavy-duty engine

• Cummins ISX base engine platform from 2009

• Compression ignition - High Pressure Direct Injection (HPDI) of natural gas

• High diesel substitution (95-97%)

• Performance: - Same high power and torque - Same or higher efficiency

• EPA/CARB 2010 certified

Cummins Westport Confidential 34 Westport HPDI Methodology

• Operates in a very similar manner to a normal diesel engine • Compression ignition – no spark plug • Natural gas injected at high pressure at end of compression stroke • Diesel Engine Performance remains – Same high power and torque – Same or higher efficiency

High Pressure Direct Injection . Directly replaces diesel injector . Common-rail style . Independently injects diesel and gas at up to 4500psi injection pressure . Diesel used as an ignition source, actuation fluid, lubricant, and coolant Diesel HPDI Performance – Power & Torque . Fuel Economy & Performance equivalent to diesel ISX . Still requires DPF & SCR

. Compatible with manual & automated transmissions

Engine Horsepower Peak Torque Model (hp) (lb-ft)

475 475 1,750 @ 1,200 RPM

450 450 1,650 @ 1,200 RPM

400 400 1,450 @ 1,200 RPM Availability . Available in 4 chassis. Kenworth: T800 Peterbilt : 367, 386, 388

. Supported through the Paccar Dealer Network

. Service and Support call center located in Long Beach, CA

. Westport HD Technical support reps throughout North America LNG Fueling Infrastructure Growth

Private - Open

Public - Open

Q4 2012

Q1 2013

39 Are there any special service requirements for natural gas vehicles?

. Yes. – Dealer facilities may need to be modified to meet building and/or fire codes. – Technicians need to be trained and certified on natural gas components. • Fuel System • Engine

Cummins Westport Confidential Dec 2011 Natural Gas Shop Upgrades . As a reference the National Fire Protection Agency publishes an industry standard (NFPA 30A) for NGV facilities. – Also have guidelines for installation and inspection of NG fuel systems on vehicles (NFPA 52) – Both are available at the website - NFPA.org

. Local building codes and regulations vary by location – Consult with industry experts and local fire marshals and officials.

Cummins Westport Confidential Dec 2011 Natural Gas Shop Upgrades

. Highlights of Repair Facility Guidelines – Methane Gas Detection System • Sounds an alarm, deactivates heating systems, and activates a mechanical ventilation system (i.e. opens bay doors and roof vents, fans etc) Methane detection – Air Handler System • Opens doors and circulates/evacuates air within the shop to prevent accumulation of methane – Electrical Upgrades • All electrical relocated to be at least 18” below the ceiling Ceiling exhaust fan – Open Flame Heater Restrictions.

Cummins Westport Inc. Customer Benefits

. Lower Total Operation Costs

. Diesel-like responsiveness – Throttle response is comparable to ISL9 diesel

. Strong power density – Similar torque curves to diesel

. Improved Fuel Economy vs. other NG engines – 5% fuel economy improvement

. Maintenance-Free aftertreatment

43 www.cumminswestport.com

■ New Website launched May 1, 2012 ■ Great source of information about natural gas engines and vehicles. ■ Features the Natural Gas Academy, a series of instructional videos ■ Designed to provide a general overview of natural gas as a fuel whether it is compressed (CNG) or liquefied (LNG), and how it is used with vehicles. Thank You!

. For more information: Bill Boyce East Regional Manager (330) 720-9785 or [email protected] . Or visit www.cumminswestport.com

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