Broadwind, Inc. · NASDAQ:BWEN
Broadwind — Broadwind Energy — Investor Presentation (June 2011)
24 slides from Broadwind's investor presentation, June 2011
Slide 1: Build it better
Build it better © 2011 Broadwind Energy, Inc. All Rights Reserved
Slide 2: Industry data and forward-looking statements
Industry data and forward-looking statements Broadwind obtained the industry and market data used throughout this presentation from its own research, internal surveys and studies conducted by third parties, independent industry associations or general publications and other publicly available inform
Slide 3: About Broadwind
About Broadwind Provides integrated solutions to energy and infrastructure customers Decades of experience in welding, gearing and services Focus on wind energy 2010 revenue: $136 MM Trades on NASDAQ as BWEN: market cap ~$170 MM More than 800 employees at facilities throughout the U.S. J
Slide 4: History and milestones
History and milestones We’re building better solutions for domestic and global energy and infrastructure needs of the future — today April 2009: NASDAQ Feb 2011: Drivetrain Feb 2006: Tower Tech Feb 2008: Re-Branded listed as BWEN service center grand Holdings Inc. goes public as Broadwind Energy ope
Slide 5: Broadwind today
Broadwind today Founded: 2003 Founded: 1924 Founded: 1998 Third largest wind tower Leading North American precision A leading independent services manufacturer in North America gearing system manufacturer for provider to the U.S. wind industry the energy and infrastructure Leading producer o
Slide 6: Broadwind key locations
Broadwind key locations Gearing – Cicero, IL Services – Howard, SD Towers – Manitowoc, WI Headquarters – Naperville, IL Towers – Brandon, SD Gearing – Pittsburgh, PA Towers – Abilene, TX Services – Abilene, TX June 2011 Investor Overview © 2011 Broadwind Energy, Inc. All Rights Reserved 6
Slide 7: Serving the wind market
Serving the wind market GEARING SERVICES Manufactured gearing Gearbox Services systems for OEMs Oil changes Engineering and metallurgical competencies Borescope inspections Full-load test on 3 MW test stand Gearbox remanufacturing Uptower bearing changes Main-shaft repair Gearbox s
Slide 8: Historical installations
Historical installations Annual MWs Installed U.S. National Incentives 11,000 10,000 9,000 • U.S. - Production Tax Credit (PTC): $21/MWH income tax credit adjusted 8,000 Unstable Policy Stable Policy annually for inflation 7,000 • 29 States have Renewable Portfolio MWs 6,000 Standards (RPS) and 7 st
Slide 9: Serving the oil, gas and mining markets
Serving the oil, gas and mining markets GEARING SYSTEMS Manufactured gearing SERVICE SOLUTIONS systems for OEMs Test stand Engineering and Custom-built replacements metallurgical competencies and spare units Modern material selections, heat treating and tooth geometry optimizations Facto
Slide 10: Order backlog
Order backlog $300 $250 $200 $150 $100 $50 $- • Order backlog remained steady at $227 MM • Down 7% from Q1 2010 June 2011 Investor Overview © 2011 Broadwind Energy, Inc. All Rights Reserved 10
Slide 11: Consolidated financial summary
Consolidated financial summary 2009 2010 Q1 2010 Q1 2011 Revenue-$ 184.8 136.9 21.7 43.5 Operating Income-$ (112.3) (69.2) (12.1) (4.0) EBITDA-$ 1.9 (9.8) (7.2) 0.1 Strategic Focus Diversify customer base Improve profitability Rebalance sales mix between wind and industrial customers Develop
Slide 12: Towers
Build it better Towers June 2011 Investor Overview © 2011 Broadwind Energy, Inc. All Rights Reserved 12
Slide 13: Wind towers
Wind towers Third largest producer of utility scale wind turbines in North America With more than 800 towers produced to date, Broadwind is a leading U.S. producer of multi-megawatt wind towers First U.S. company to produce 100-meter towers Deep roots in steel fabrication Specializes in he
Slide 14: Heavy Industries
Heavy Industries Draws strength from Manitowoc’s rich heritage of more than 100 years in specialty structure welding Mining, rigging, fire apparatus, cranes to 3,500 tons, medical, wind towers, nuclear, & oil exploration Steel and aluminum welding Weldments large and small — material from 1/
Slide 15: Towers segment
Towers segment 2009 2010 Q1 2010 Q1 2011 MW 493 551 62 193 Revenue-$ 93.3 76.2 12.0 28.2 Operating Income-$ (0.5) (11.4) (1.3) 2.4 EBITDA-$ 6.0 6.6 (0.2) 3.6 2010 includes write down of long-lived assets of $13 MM Strategic Focus Increase capacity utilization Diversify customer base Grow Hea
Slide 16: Gearing
Gearing Broadwind provides quality precision gearing you can count on. Build it better June 2011 Investor Overview © 2011 Broadwind Energy, Inc. All Rights Reserved 16
Slide 17: Gearing
Gearing 19 precision form tooth grinders, including the largest internal/external form grinder in the U.S. Rare ability to produce large and small spiral bevel gears — 2 of the 4 largest Gleason spiral bevel machines in the world — Only U.S. gear company to induction harden spiral bevel teeth
Slide 18: Industrial gearing sales trend
Industrial gearing sales trend 14 12 10 Millions 8 6 4 2 - Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 07 08 08 08 08 09 09 09 09 10 10 10 10 11 As recent as Q4 08, Industrial revenue was ~$12 MM for the quarter Focused on rebuilding relationships with past industrial customers and winning new one
Slide 19: Gearing segment
Gearing segment 2009 2010 Q1 2010 Q1 2011 MW 729 883 223 157 Revenue-$ 64.5 50.0 7.7 13.6 Operating Income-$ (97.1) (13.7) (5.1) (2.4) EBITDA-$ (0.7) (4.2) (2.6) 0.1 2009 includes Goodwill and Intangible Impairment of $80 MM Strategic Focus Growth in non-wind markets Improve capacity utilizati
Slide 20: Services
Services Broadwind is the partner you need to provide the highest level of quality service — locally and efficiently. Build it better June 2011 Investor Overview © 2011 Broadwind Energy, Inc. All Rights Reserved 20
Slide 21: Services
Services Portfolio of blade, drivetrain, and operations and maintenance services Unmatched gearing expertise and robust gearbox remanufacturing and 3 MW full load-testing capabilities Technicians and facilities in key wind industry corridors Broadwind helps owners maximize capacity and lower t
Slide 22: Comprehensive drivetrain services
Comprehensive drivetrain services 3) Inspection 2) Health Integrated engineering, Monitoring disassembly, clean assembly, remanufacturing and testing Gearbox 4) Up-tower 1) Install & maintenance repair in 60,000 square feet of Commission lifecycle dedicated HVAC climate- controlled space Full lo
Slide 23: Services segment
Services segment 2009 2010 Q1 2010 Q1 2011 Revenue-$ 27.6 12.1 2.0 1.8 Operating Income-$ (0.6) (34.7) (2.5) (1.4) EBITDA-$ 2.8 (3.9) (1.6) (1.1) 2010 includes Intangible Impairment of $22 MM Strategic Focus Shift from a turbine installation revenue stream to ongoing maintenance Expand O&M con
Slide 24: Build it better
Build it better Broadwind’s 3 MW test stand dedicated in February 2011. June 2011 Investor Overview © 2011 Broadwind Energy, Inc. All Rights Reserved 24