Pioneer Power Solutions, Inc. · NASDAQ:PPSI

Pioneer Power Solutions — Investor Presentation (March 2018)

21 slides from Pioneer Power Solutions's investor presentation, March 2018

  1. Slide 1: Pioneer Power Solutions, Inc. Investor Presentation

    Pioneer Power Solutions, Inc. Investor Presentation ©2018 Pioneer Power Solutions, Inc. March 2018

  2. Slide 2: Forward-Looking Statements

    Forward-Looking Statements  This presentation contains certain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. Such statements may be preceded by the words "intends," "may," "will," "plans," "expects," "anticipates," "projects," "

  3. Slide 3: Company Snapshot

    Company Snapshot A diversified manufacturer of highly customized electrical equipment  Focus on niche applications and service within large, growing market segments for power equipment – Utility, Industrial, Commercial  Balanced mix of revenue streams – Project-based, custom engineered equipment –

  4. Slide 4: Large and Diverse End Markets

    Large and Diverse End Markets High Growth Cyclical Growth GDP Growth  Wind, solar, biomass  Office buildings, shopping  Office, government and  Battery charging centers, airports, hospitals, apartment buildings government/municipal  Outdoor lighting  Data centers  Outdoor lighting  Distribut

  5. Slide 5: Our Business Segments

    Our Business Segments 2017 Revenue from Continuing Operations: $101.4 million Equipment T&D 85% 15% Critical 39% 100% Power Transformers 61% Service Based on results as of December 31, 2017 Based on results as of December 31, 2017 Transmission & Distribution Solutions Critical Power Solutions  Equi

  6. Slide 6: Products & Services Profile

    Products & Services Profile Enabling safe and efficient delivery of power via a diverse portfolio of offerings Low Voltage Medium Voltage and Liquid-Filled Generator Segment/Product Category Distribution Transformers OEM Transformers Transformers Sales & Service Gross Margin % At Below Above Above (

  7. Slide 7: Pioneer's Position in the Electrical Grid

    Pioneer’s Position in the Electrical Grid GENERATION TRANSMISSION DISTRIBUTION Power Transformers Transmission Power Substation Distribution Station Substation Distribution / Control Equipment Solar Liquid Filled Transformers Wind Farm T&D Segment Medium and Low Voltage ON-SITE POWER GENERATION Dry-

  8. Slide 8: Customers

    Customers Strong customer retention rate of ~85% for 2017 Revenue Distribution Utilities 2017 Revenue from Continuing Operations: $101.4M Industrial 19% 25% Distributors Utilities Commercial and OEM 56% EPC, Commercial and Industrial EPC Firms and Distributors -8-

  9. Slide 9: Investment Highlights

    Investment Highlights  Attractive portfolio of highly engineered niche products  Serving multiple large addressable markets  Leveraged to growing parts of the economy – Positive Secular Trends – grid infrastructure, data centers, alternative energy, electric vehicles, energy storage, high-speed r

  10. Slide 10: Industry Size and Structure

    Industry Size and Structure Service Life of the U.S. Electrical Infrastructure (a)  Large and Growing North American Market  Aging Power Grid 42% 50% – Built more than a half century ago – Nearly a majority of T&D infrastructure is near or past its useful service life  Demand for reliable power 5

  11. Slide 11: Growth Strategy

    Growth Strategy 1 EXPAND PRODUCT / SERVICE OFFERINGS • Continued migration towards more highly engineered power distribution solutions • Maximize sales productivity across portfolio 2 DERIVATIVE PLAY Targeting: Serving as a business enabler and critical component provider for fast-growing energy sto

  12. Slide 12: Recent New Business Developments

    Recent New Business Developments  Awarded New Contract for Network Transformers – Selected in a competitive bid process by a regional, regulated electric and natural gas utility serving more than 300,000 natural gas and 400,000 electric customers in a larger, Southern city – Five-year contract – Ad

  13. Slide 13: Financial Overview

    | |S Financial Overview

  14. Slide 14: Summary Financial Position

    Summary Financial Position ($ millions) 12/31/2017 12/31/2016 Cash & cash equivalents $0.2 $0.2 Current Assets $47.1 $46.2 Long-term Assets $22.6 $31.2 Total Assets $69.9 $77.4 Current liabilities $45.7 $43.7 Long-term debt, net of current maturities $6.7 $4.0 Total liabilities $52.4 $51.2 Total sha

  15. Slide 15: Summary Operating Statement Data

    Summary Operating Statement Data ($ millions) Revenue (a) Gross Profit (a) (% growth) (as a % of revenue) $22.1 $97.9 $99.6 $101.4 $20.0 $19.4 $87.6 $17.5 22.2% 18.2% 19.7% 18.9% +12% +2% +2% +5% 2014 2015 2016 2017 2014 2015 2016 2017 Adjusted EBITDA (a) (b) (as a % of revenue) $9.8 $8.9 $6.1 9.8%

  16. Slide 16: 2018 Outlook and Growth Drivers

    2018 Outlook and Growth Drivers 2018 Outlook  Revenue growth from continuing operations in the high-single-digits  Adjusted EBITDA higher than 2017 Adjusted EBITDA of $8.9M Expected Revenue Growth Factors Expected Profit Growth Factors T&D Solutions Segment T&D Solutions Segment  Growth primarily

  17. Slide 17: Contact Us

    Contact Us Corporate Headquarters: Investor Relations: Pioneer Power Solutions, Inc. Brett Maas 400 Kelby Street, 12th Floor Managing Partner Fort Lee, NJ 07024 Hayden IR, LLC (T) 212.867.0700 (T) 646.536.7331 (F) 212.867.1325 [email protected] www.pioneerpowersolutions.com www.haydenir.com - 17 -

  18. Slide 18: Questions & Answers

    Questions & Answers

  19. Slide 19: Supplemental Financial Schedules

    Supplemental Financial Schedules

  20. Slide 20: Reconciliation of Non-GAAP Measures

    Reconciliation of Non-GAAP Measures (In thousands, except per share data) Three Months Ended Year Ended December 31, December 31, 2017 2016 2017 2016 Reconciliation to Adjusted EBITDA and EPS Net (loss) / earnings (GAAP measure) (10,022) (2,148) (9,344) (1,063) Addbacks: Loss from discontinued opera

  21. Slide 21: Key Market & Ownership Statistics

    Key Market & Ownership Statistics Market Information Stock Trading History Ticker Symbol (NASDAQ): PPSI Recent Closing Price (3/26/2018): $7.05 Shares Outstanding (M): 8.7 Market Capitalization ($M): $61.4 Freely Traded Float (M): 3.3 Valuation Measures Shareholder Breakdown Enterprise Value ($M): $

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