Broadwind, Inc. · NASDAQ:BWEN
Broadwind — Broadwind Energy — Investor Presentation (March 2014)
18 slides from Broadwind's investor presentation, March 2014
Slide 1: Broadwind Energy, Inc. Investor Presentation
Broadwind Energy, Inc. Investor Presentation March 2014 © 2014 Broadwind Energy, Inc. All Rights Reserved.
Slide 2: Industry Data Disclaimer and Forward-Looking Statements
Industry Data Disclaimer and Forward-Looking Statements Broadwind obtained the industry and market data used throughout this presentation from our own research, internal surveys and studies conducted by third parties, independent industry associations or general publications and other publicly avail
Slide 3: Highlights
Highlights Record 12/31/13 backlog of $311M* Improved wind tower market due to trade tariffs and fewer competitors Tower capacity substantially sold out for 2014, booking orders into 2015 Projected 2014 revenue growth ~ 20% Restructuring plan nearly complete Adj. EBITDA improved ~$20M from 2010 to 2
Slide 4: Broadwind Today
Broadwind Today 2013 Revenue Composition Towers and Weldments Leading wind tower manufacturer Annual revenue has grown from $5M to $150M over 7-year period Services Leveraging welding competencies in broader 8% energy markets Gearing Gearing 90-year history 18% Towers 69% Precision gearing manufactu
Slide 5: Positioned in Key Energy and Industrial Corridors
Positioned in Key Energy and Industrial Corridors Bakken Shale Marcellus Shale Wind Permian Mines Basin Barnett Oil & Gas Shale Wind Steel Broadwind Eagle Ford Shale Gulf of Mexico – Off-Shore © 2014 Broadwind Energy, Inc. All Rights Reserved. 5
Slide 6: A Diverse End-Market Presence
A Diverse End-Market Presence Wind Oil & Gas Mining Steel Towers Gearboxes Gearboxes Gearboxes Services Loose gearing Loose Gearing Loose Gearing Replacement Gears Service Weldments Opportunities to provide packaged gearing and services solutions © 2014 Broadwind Energy, Inc. All Rights Reserved. 6
Slide 7: Wind Energy Market Dynamics
Wind Energy Market Dynamics Wind % of New Electric Wind Energy Historical 45% Capacity Added Levelized Cost Of Electricity 40% PTC Expiration Year 35% 30% Average 25% 20% 15% 10% 5% 0% 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Source: US EIA Source: NREL Cost Curve, in Black & Veatch Report,
Slide 8: U.S. Wind Market Forecast - Near Term
U.S. Wind Market Forecast - Near Term GW GW Installations PTC Update 14 PTC expired at 12/31/13 for new projects; IRS definition of 12 “construction start” and completion 10 requirements ensures strong demand through 2015 8 3 GW Upside Seeking a multi-year extension and 6 possible phase out of subsi
Slide 9: U.S. Wind Market Forecast - Long Term
U.S. Wind Market Forecast - Long Term U.S. Market Outlook 12 10 GW Installations 3 GW Upside 8 6 4 2 0 2010a 2011a 2012a 2013a 2014e 2015e 2016e 2017e 2018e 2019e 2020e Source: MAKE Consulting Bear Case Bull Case PTC not renewed PTC extended through 2020 Natural gas prices stagnate between $3-4/MMBt
Slide 10: Poised for Growth
Poised for Growth 2010 Sales $137M 2013 Sales $216M* Sales $400M New Wind Capacity * preliminary Industrial & Installed Base Strategic Objective Execution Strategy Maintain strength and market share in Expand sales force products and services for new wind Increase capacity utilization capacity Enhan
Slide 11: Industrial Revenue – Catalyst for Growth
Industrial Revenue – Catalyst for Growth Industrial Weldment Industrial Weldment Growth 50 Revenue Main driver – sales execution 40 Diversifying end markets and customers to claim 30 additional market share; additional 2-5 sales reps 20 Investing in market research 10 Targeting Texas and Bakken oil
Slide 12: Executing On Our Plan
Executing On Our Plan $M Sales* Gross Margin – % of Sales 250 8.0% GM% Restructuring 7.0% 200 6.0% 150 5.0% 4.0% 100 3.0% 50 2.0% 1.0% 0 0.0% 2010 2011 2012 2013 2010 2011 2012 YTD 9/30/13 SG&A as % of Revenue Adj. EBITDA Growth* 25% $M 10.0 20% Improved 10 pp since 2010 8.0 6.0 15% 4.0 2.0 10% 20%
Slide 13: 4-Year Financial History
4-Year Financial History FY 2010 FY 2011 FY 2012 FY 2013* 2014 E Revenue-$M 136.9 185.9 210.7 215-216 260-270 Gross Profit-$M 1.9 7.2 6.8 -% (ex. Restructuring) 1.4% 3.9% 4.0% >10% Operating Expense-$M 30.4 27.6 24.1 -% (ex. Restructuring) 22.2% 14.6% 11.1% <10% Impairment Exp. -$M 40.8 Operating Lo
Slide 14: Strengthening Our Balance Sheet
Strengthening Our Balance Sheet Operating Working Capital % 30,000 Total Debt and Capital Leases 14% 25,000 12% 20,000 10% 15,000 8% 10,000 6% 4% 5,000 2% - 9/30/2012 2012 3/31/2013 6/30/2013 9/30/2013 0% 2009 2010 2011 2012 9/30/2013 debt and capital leases low or 0 interest rate debt Brandon mtg %
Slide 15: Core Deliverables
Core Deliverables • Deeper market penetration – Currently only 4% overall market penetration: focus on front-end sales execution and move toward a market-based orientation to foster deeper customer relationships. • Leverage core competency synergies – Drive closer alignment between gearing, welding
Slide 16: BWEN Management Team
BWEN Management Team Peter Duprey, President and CEO Pete brings more than 12 years of wind industry experience and over 30 years of strategy, finance and business development experience to Broadwind. Prior to joining Broadwind in late 2010, Pete served as president and chief executive officer at Ac
Slide 17: Non-GAAP Reconciliation
Non-GAAP Reconciliation The Company reports its financial results in accordance with U.S. generally accepted accounting principles (GAAP). However, the Company’s management believes that certain non-GAAP financial measures may provide users of this financial information with meaningful comparisons b
Slide 18: Broadwind Energy is committed to helping customers maximize performance
Broadwind Energy is committed to helping customers maximize performance of their energy and infrastructure investments— quicker, easier and smarter. © 2014 Broadwind Energy, Inc. All Rights Reserved. 18
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