Slide 1: Third Quarter 2023 Conference Call Presentation
1 Broadwind | Investor Presentation 2023 Third Quarter 2023 Conference Call Presentation November 13, 2023
Slide 2: Safe Harbor Statement
2 Broadwind | Investor Presentation 2023 SAFE HARBOR STATEMENT This document contains “forward looking statements” — that is, statements related to future, not past, events — as defined in Section 21 E of the Securities Exchange Act of 1934 , as amended, that reflect our current expectations regardi
Slide 3: 3Q23 Performance Summary
3Q23 PERFORMANCE SUMMARY
Slide 4: Performance Update: Strategic Progress Points
4 Broadwind | Investor Presentation 2023 PERFORMANCE UPDATE Strategic Progress Points As of November 2023 Reiterating full - year 2023 guidance. Sustained demand strength, continued price discipline, operational excellence initiatives support full - year outlook Improved balance sheet optionality. R
Slide 5: Consolidated Financial Performance
5 Broadwind | Investor Presentation 2023 Year - over - year organic growth in revenue, margin realization and profitability CONSOLIDATED FINANCIAL PERFORMANCE Total Revenue ($MM) Gross Profit ($MM) Adjusted EBITDA ($MM) GAAP Net Income (Loss) ($MM) Solid execution in a dynamic operating environment
Slide 6: Heavy Fabrications Segment
6 Broadwind | Investor Presentation 2023 Third Quarter 2023 HEAVY FABRICATIONS SEGMENT Improved sales mix, AMP credits and operational execution support improved margin realization Organic revenue growth of 25% y/y; segment Adjusted EBITDA increased by 379% y/y Segment EBITDA margin increased 1337 b
Slide 7: Gearing Segment
7 Broadwind | Investor Presentation 2023 Third Quarter 2023 GEARING SEGMENT Solid y/y revenue growth primarily driven by customer activity within industrials markets +12% y/y organic revenue growth; segment EBITDA declined $0.3 million y/y Strong demand evident across Industrial and Steel customers
Slide 8: Industrial Solutions Segment
8 Broadwind | Investor Presentation 2023 Third Quarter 2023 INDUSTRIAL SOLUTIONS SEGMENT Continue to see demand acceleration within the natural gas turbine market, building on the market recovery evidenced throughout 2022 - 2023 Strong organic revenue growth , supported by strong demand within NGT a
Slide 9: Stable liquidity profile and net leverage
9 Broadwind | Investor Presentation 2023 (1) On August 4, 2022, Broadwind entered into a $35.0 million Senior Secured Revolving Credit Facility (the “Credit Facility”), including an optional $10.0 mi ll ion accordion feature, and a $7.6 million Senior Secured Term Loan (the “Term Loan). The Term Loa
Slide 10: Full-Year 2023 Financial Guidance
10 Broadwind | Investor Presentation 2023 Reiterating our full - year 2023 revenue and Adjusted EBITDA guidance Guidance supported by targeted commercial growth within high - value, growth - oriented fabrications markets, together with a targeted focus on asset optimization and operational disciplin
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Slide 12: Corporate Overview
12 Broadwind | Investor Presentation 2023 CORPORATE OVERVIEW We support the world’s energy transition as a leading independent producer of wind towers, gearing, custom fabrications, clean fuel processing systems and supply chain solutions Broadwind is a precision manufacturer of technologically adva
Slide 13: What we do
13 Broadwind | Investor Presentation 2023 What we do Precision manufacturing within wind sector and other diverse end - markets We provide large complex and precision fabrications to customers in a broad range of industrial markets, as well as proprietary clean fuel processing systems. Key products
Slide 14: Inflation Reduction Act Impact Benefit
14 Broadwind | Investor Presentation 2023 INFLATION REDUCTION ACT IMPACT BENEFIT At full utilization, IRA could provide up to ~$30 million in incremental annual gross profit beginning in 2023 Broadwind is prepared to leverage the benefits of the IRA to create shareholder value The IRA serves to mate
Slide 15: Passage of IRA Supports Multi-Year Investment in Wind
15 Broadwind | Investor Presentation 2023 PASSAGE OF IRA SUPPORTS MULTI - YEAR INVESTMENT IN WIND Inflation Reduction Act of 2022 supports multi - decade decarbonization of domestic energy grid Broadwind is uniquely positioned to take advantage of the increased development activity driven by the IRA
Slide 16: Our Experienced, Proven Management Team
16 Broadwind | Investor Presentation 2023 OUR EXPERIENCED, PROVEN MANAGEMENT TEAM Leadership Team with extensive experience in clean tech manufacturing Eric Blashford Chief Executive Officer Since 2020 Recent Experience • Interim CFO 2021 – Aug. 2022 • COO 2018 - 2020 • President, Broadwind Towers 2
Slide 17: Our Experienced Board of Directors
17 Broadwind | Investor Presentation 2023 OUR EXPERIENCED BOARD OF DIRECTORS Leadership Team with extensive experience in clean tech manufacturing Broadwind Board Experience • Independent Director • Chairman of Compensation Committee • Financial Expert • Served as Lead Director (2020 - 2021) Positio
Slide 18: Our Experienced Board of Directors
18 Broadwind | Investor Presentation 2023 OUR EXPERIENCED BOARD OF DIRECTORS David P. Reiland Director since 2008 BS, Financial Management, California State University MBA, University of Southern California Certified Public Accountant (CPA) Broadwind Board Experience • Independent Director • Chairma
Slide 19: Our Experienced Board of Directors
19 Broadwind | Investor Presentation 2023 OUR EXPERIENCED BOARD OF DIRECTORS Sachin Shivaram Director since 2022 BA, Harvard University Mphil , University of Cambridge JD, Yale Law School; (licensed to practice law in WI) Broadwind Board Experience • Independent Director • Member of Audit and Govern
Slide 20: Governance Structure Supports Good Stewardship
20 Broadwind | Investor Presentation 2023 GOVERNANCE STRUCTURE SUPPORTS GOOD STEWARDSHIP The Board designed Broadwind’s governance structures to promote a culture of accountability and independence Broadwind’s corporate governance structures enhance independent oversight, promote effective risk mana
Slide 21: Appendix: Balance Sheet
21 Broadwind | Investor Presentation 2023 APPENDIX Balance Sheet September 30, December 31, 2023 2022 CURRENT ASSETS: Cash………………………………………………………………………………………………………………………1,740$ 12,732$ Accounts receivable, net………………………………………………………………………………………………………………………41,253 17,018 AMP credit receivable……………………………………
Slide 22: Appendix: Income Statement
22 Broadwind | Investor Presentation 2023 APPENDIX Income Statement
Slide 23: Appendix: Statement of Cash Flows
23 Broadwind | Investor Presentation 2023 APPENDIX Statement of Cash Flows 2023 2022 Net income (loss)…...……………………………………………………………………………………………6,578$ (6,879)$ Adjustments to reconcile net cash used in operating activities: Depreciation and amortization expense…………………………………………………………………….4,772 4,581 Def
Slide 24: Appendix: GAAP to Non-GAAP Reconciliation
24 Broadwind | Investor Presentation 2023 APPENDIX GAAP to Non - GAAP Reconciliation Consolidated 2023 2022 2023 2022 Net Income (Loss)……………..…………...………………………………………4,394$ (1,772)$ 6,578$ (6,879)$ Interest Expense…………………….……………………………………. 932 1,234 2,171 2,355 Income Tax Provision…………………………….....……………
Slide 25: Appendix: Segment-Level Data
25 Broadwind | Investor Presentation 2023 APPENDIX Segment - Level Data Three Months Ended Nine Months Ended 2023 2022 2023 2022 ORDERS: Heavy Fabrications………………………………………………………………8,009$ 62,873$ 40,608$ 110,022$ Gearing………………………………………………………………3,005 15,523 21,211 38,526 Industrial Solutions……………………………
Slide 26: IR Contact
26 Broadwind | Investor Presentation 2023 Please contact our investor relations team at Investor@BWEN.com IR CONTACT