Slide 1: Fourth Quarter & Full-Year 2020 Results Conference Call
Fourth Quarter & Full-Year 2020 Results Conference Call Investor Presentation
Slide 2: Safe-Harbor Statement
SAFE-HARBOR STATEMENT This presentation contains “forward looking statements”—that is, statements related to future, not past, events—as defined in Section 21E of the Securities Exchange Act of 1934, as amended, that reflect our current expectations regarding our future growth, results of operations
Slide 3: Performance Overview
PERFORMANCE OVERVIEW
Slide 4: Executive Summary
EXECUTIVE SUMMARY Fourth Quarter and Full-Year 2020 Market Update 4Q20 Results Full-Year 2020 As of February 2021 Performance Overview Performance Overview Cost competitiveness of wind improving Total revenue (18%) y/y to $40.3 million Best performance since 2016 Since 2009, the unsubsidized leveliz
Slide 5: Consolidated Financial Data
CONSOLIDATED FINANCIAL DATA 4Q20 results in-line with pre-announced expectations, culminating in strong full-year results Total Revenue Gross Profit • Fourth quarter results came ($MM) Gross margin +50 bps ($MM) y/y to 9.1% in-line with the preliminary Revenue increased results update issued in late
Slide 6: Heavy Fabrications Segment
HEAVY FABRICATIONS SEGMENT Strong wind tower demand contributed to revenue growth, margin expansion Segment Revenue Segment Adjusted EBITDA ($MM) ($MM) • Segment revenue growth Revenue increased Segment Adj. EBITDA increased 21% y/y, while +21% y/y Increased +115% y/y segment Adjusted EBITDA increas
Slide 7: Heavy Fabrications Segment
HEAVY FABRICATIONS SEGMENT Dec-20 PTC extension is a catalyst to wind tower demand • Total wind tower sections Total Wind Tower Sections Sold Heavy Fabrications Adjusted EBITDA Margin sold increased 23% y/y; (Number of Sections)(1) (% of Sales) Utilization improved 1,300 bps y/y, resulting in Adjust
Slide 8: Gearing Segment
GEARING SEGMENT Pandemic-related customer order delays persist, but demand conditions improving in 1Q21 Segment Revenue Segment Adjusted EBITDA • Gearing revenue under ($MM) ($MM) pressure throughout 2020, $34.9 as pandemic-related customer order delays $25.1 $5.6 impacted demand conditions $1.0 $7.
Slide 9: Industrial Solutions Segment
INDUSTRIAL SOLUTIONS SEGMENT 25% y/y revenue growth support by natural gas turbine and aftermarket demand • Increased demand for gas Segment Revenue Segment Adjusted EBITDA turbine components driving ($MM) ($MM) growth $18.3 $1.4 $14.7 • $1M y/y full year improvement in Adjusted $0.5 EBITDA, a resul
Slide 10: Balance Sheet Update
BALANCE SHEET UPDATE Sequential decline in working capital as % of sales; liquidity at multi-quarter high Operating Working Capital as a % of Sales(1) 13% 11% 9% 6% 5% 5% 3% 3% 3% 12/31/18 3/31/19 6/30/19 9/30/19 12/31/19 3/31/20 6/30/20 9/30/20 12/31/20 Total Cash and Availability on Credit Facilit
Slide 11: Management Outlook
MANAGEMENT OUTLOOK
Slide 12: Wind Is a More Competitive Power Generation Source
WIND IS A MORE COMPETITIVE POWER GENERATION SOURCE Since 2009, the unsubsidized levelized cost of wind energy has declined 70% Unsubsidized Levelized Cost of Wind Energy Unsubsidized Levelized Cost of Energy Across Energy Sources ($/MWh)(1) ($/MWh)(1) $160 $180 $169 $160 $140 $148 $140 $120 $120 $10
Slide 13: U.S. Wind Power Installation Forecast
U.S. WIND POWER INSTALLATION FORECAST Reduced cost of wind, clean energy policy agenda likely to improve outlook U.S. Onshore Wind Capacity Installations U.S. Offshore Wind Capacity Installations (Annual On-Shore GW Installed)(1) (Annual Off-Shore GW Installed)(1) 16.9 5.8 5.5 13.3 Before potential
Slide 14: Customer Diversification Initiative
CUSTOMER DIVERSIFICATION INITIATIVE Balanced revenue mix supports long-term growth and profitability • Wind and renewables Wind vs. Non-Wind Revenue Concentration Fastest Growing Non-Wind Sectors Since 2016 remain our core industry (% of Total Revenue)(1) (Absolute Growth in Revenue) focus • Revenue
Slide 15: Key Initiatives by Segment
KEY INITIATIVES BY SEGMENT Focus on improved asset utilization, supply chain efficiencies, share expansion and profitable growth Heavy Fabrications Segment Gearing Segment Industrial Solutions Segment Organic growth within both core wind, Focus on Gearbox market share growth; Focus on sales mix dive
Slide 16: Investment Highlights
INVESTMENT HIGHLIGHTS Leading precision manufacturer supporting the clean energy transition Precision manufacturer serving wind, renewables & other diverse end-markets ~70% of TTM revenue related to wind-renewables end-markets; all three segments support We are a precision manufacturer of renewables
Slide 17: Appendix
APPENDIX
Slide 18: Exhibit A: Orders, Revenues and Operating Income (Loss) By Segment
EXHIBIT A Orders, Revenues and Operating Income (Loss) By Segment 18 | Investor Presentation
Slide 19: Exhibit B: GAAP to Non-GAAP Consolidated Adjusted EBITDA Reconciliation
EXHIBIT B GAAP to Non-GAAP Consolidated Adjusted EBITDA Reconciliation 19 | Investor Presentation
Slide 20: Exhibit C: Adjusted EBITDA Reconciliation By Segment
EXHIBIT C GAAP to Non-GAAP Adjusted EBITDA Reconciliation By Segment 20 | Investor Presentation
Slide 21: Exhibit C (Continued)
EXHIBIT C (Continued) GAAP to Non-GAAP Adjusted EBITDA Reconciliation By Segment 21 | Investor Presentation
Slide 22: IR Contact
IR CONTACT Please contact our investor relations team at Investor@BWEN.com