American Superconductor Corporation · NASDAQ:AMSC
American Superconductor — Investor Presentation (November 2010)
24 slides from American Superconductor's investor presentation, November 2010
Slide 1: Investor Presentation
A GLOBAL POWER TECHNOLOGIES COMPANY Investor Presentation November 2010
Slide 2: Safe Harbor
Safe Harbor Any statements in this presentation about future expectations, plans and prospects for the company, including our expectations regarding the future financial performance of the company and other statements containing the words “ “believes,” ““anticipates,” ““plans,” ““expects,” ““will” a
Slide 3: Investment Highlights
Investment Highlights • Multinational power technologies company focused on China, India and other Asia-Pacific g growth economies • $10 billion annual, worldwide wind energy and power grid markets • In 25%+ of China’s wind turbines today; clear pathway to 50%+ share • Aggressively diversifying mark
Slide 4: AMSC's Waves of Growth
AMSC’s Waves of Growth Revenue nings Earn Ti Time Multi-decade revenue and earnings growth in mega-markets 4
Slide 5: Superconductors Coming of Age
Superconductors Coming of Age Revenue nings Earn Ti Time Superconductors expected to accelerate wind power and power grid waves 5
Slide 6: AMSC's Windtec Brand: Our Unique Approach to the Wind Power Market
AMSC’s Windtec Brand: Our Unique Approach to the Wind Power Market Wind Turbine Designs Factory Designs & Set Up Customer Training Supply S l Chain Ch i Management M t AMSC Control C t l Systems S t International Brands 6
Slide 7: AMSC's Global Wind Power Customer Base: The Growth Has Just Begun
AMSC’s Global Wind Power Customer Base: The Growth Has Just Begun CY 2006 2007 2008 2009 2010 2011 2012 1.5 MW 3 MW (China) 5 MW 6 MW New DT (China) 1.65 MW 1.65 MW (Korea) 2 MW 5 MW (India) 1.65 MW (Korea) 3 MW (China) 2 MW (China) 2 MW (Czech Rep.) 2 MW (T i (Taiwan) ) 2 MW (India) 2 MW (Turkey) 1
Slide 8: Chinese Wind Market Continues to Exceed Forecasts
Chinese Wind Market Continues to Exceed Forecasts 300 300 GW 250 Gigawatts Installed 210 GW 200 150 150 GW 100 100 GW 50 30 GW 0 2007 2020 China has revised its wind power goal upward five times since 2005 8
Slide 9: Relationship with Sinovel is Strong and is Expanding
Relationship with Sinovel is Strong and is Expanding Positioned to be World’s Sinovel’s 2009 Market Share #1 Turbine Manufacturer China Worldwide 9 Stated St t d goall off b being i #1 worldwide ld id turbine manufacturer within 5 years #1 #3 (25% mkt share) (9% mkt share) 9 Powering China’s first o
Slide 10: Numerous Layers of Protection for AMSC's Wind Business
Numerous Layers of Protection for AMSC’s Wind Business Contractual • Multi-year y supply pp y contracts with multiple p customers • Exclusive rights or rights of first refusal Technology • AMSC p power electronics and control systems y ‘designed g in’ • Multiple layers of encrypted control software
Slide 11: The Latest Buzz About the Global Power Grid
The Latest Buzz About the Global Power Grid U.S. electricity blackouts skyrocketing The Brattle Group Estimates $50 To $100 Billion Transmission Investment Needed To Meet Renewable Portfolio Standards State Grid to invest $40 billion in ultra-high voltage power grid Smart grid spending powers ahead
Slide 12: Smart Grid Infrastructure for Utilities and Wind/Solar Developers
Smart Grid Infrastructure for Utilities and Wind/Solar Developers TAM: $750M+ TAM: $2B by Mid Decade Dynamic Voltage Management System Inversion + Dynamic Voltage Management 9 Industry-leading solution 9 First fully-optimized solution for connecting utility-scale solar PV 9 Instantly and dynamically
Slide 13: Amperium Wire: 100X Increase in Electrical Current with Zero Electrical Resistance
Amperium Wire: 100X Increase in Electrical Current with Zero Electrical Resistance Primary End Markets and Applications • Power Grid - High-capacity, high- efficiency transmission and distribution cables • Wind Power - SeaTitan™ wind turbines Compelling power density advantage for power grid and win
Slide 14: Superconductor Power Cables
Superconductor Power Cables Smart Urban Cables • 10X capacity of copper cables, eliminating grid choke points and meeting growing power demands • Smart switching capability suppresses power surges (faults) Long-Haul Transmission ‘Pipelines’ • Able to carry 5 gigawatts of power in a 3-foot undergroun
Slide 15: September 2010: First Commercial Volume Amperium Wire Order
September 2010: First Commercial Volume Amperium Wire Order • : world’s third largest cable manufacturer • Initial 3 million meter order of Amperium wire in September 2010 • By far, the world’s largest HTS wire order • Shipments p begin g in 2012 • Strategic alliance to deploy 50 circuit kilometers
Slide 16: Beyond the Grid: SeaTitan Offshore Superconductor Wind Turbines
Beyond the Grid: SeaTitan™ Offshore Superconductor Wind Turbines Disruptive, industry-defining technology – only viable approach to achieving 10MW+ wind turbines 16
Slide 17: SeaTitan Superconductor Wind Turbines
SeaTitan™ Superconductor Wind Turbines • Only viable approach for 10 MW+ wind turbines • Utilizes AMSC’s proven HTS ship propulsion p opu s o motor oo p platform a o AMSC’s 36.5 MW HTS motor • 2X to 4X the power of existing wind generators technologies • Huge cost advantage for offshore wind farms •
Slide 18: SeaTitan Wind Turbines To Be Ready for the Ramp in Offshore Installations
SeaTitan Wind Turbines To Be Ready for the Ramp in Offshore Installations Current Offshore Partners Offshore Wind Turbine Forecast by Turbine Size Annual Installed Capacity (MW) 3.00 – 4.99 MW ≥5.00 MW Source: Emerging Energy Research $1 billion annual, worldwide addressable market for AMSC by 2016
Slide 19: Financial Summary
ase | Financial Summary
Slide 20: Delivering Strong and Consistent Growth
Delivering Strong and Consistent Growth 15 Consecutive Quarters of Growth Quarterly Revenues ($MM) 120.0 101.5 97.2 90.0 87 6 87.6 80.7 73.0 74.7 61.2 60.0 39.8 40.4 41.3 38.4 32.6 30.0 19 1 19.1 19 8 19.8 21.6 0.0 4Q06 1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 Fiscal Qua
Slide 21: Continued Revenue Growth and Margin Improvements
Continued Revenue Growth and Margin Improvements AMSC’s Revenue Growth Forecast AMSC’s Gross and Operating Margins Revenue ($MM) Margins (%) 450 430 – 440 60% 36% 40% 40% 29% 28% 316 20% 12% 16% 300 0% ((1%) %) (4%) 183 -20% (22%) 150 -40% 112 52 -60% 60% -80% (70%) 0 FY06 FY07 FY08 FY09 FY10 FY06 F
Slide 22: Earnings Expected to Grow Significantly in FY2010
Earnings Expected to Grow Significantly in FY2010 Non-GAAP EPS ($) 1.50 $1.30 – $1.35* 1.25 1.00 0.75 $0.70 0 50 0.50 0.25 0.00 (0.25) FY08 FY09 FY10E * Estimates as of 11/2/10 (pre-offering) (pre offering) For reconciliation, see: http://www.amsc.com/pdf/Non-GAAP%20Net%20Income%201110.pdf and http:
Slide 23: Balance Sheet Summary
Balance Sheet Summary As of Sept. 30, 2010 ($ in millions) Actual As Adjusted (1) Cash, Cash Equivalents $52.6 $ 207.7 Marketable Securities 73.1 73.1 Restricted Cash 5.5 5.5 Total $131.2 $ 286.3 Debt $0 $0 Use of Offering Proceeds • Expand superconductor wire manufacturing capacity • Pursue strateg
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