Broadwind, Inc. · NASDAQ:BWEN
Broadwind — Broadwind Energy — Investor Presentation (February 2014)
18 slides from Broadwind's investor presentation, Feb 27, 2014
Slide 1: Broadwind Energy, Inc. Investor Presentation February 2014
Broadwind Energy, Inc. Investor Presentation February 2014
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 4 Towers and Weldments Leading wind tower manufacturer Annual revenue has grown from $5M to $150M over 7-year period Leveraging welding competencies in broader energy markets Gearing 90-year history Precision gearing manufacturer (1 meter and larger in diameter) Gearbox and loose gea
Slide 5: Positioned in Key Energy and Industrial Corridors
Positioned in Key Energy and Industrial Corridors 5 Bakken Shale Marcellus Shale Eagle Ford Shale Wind Gulf of Mexico – Off-Shore Oil & Gas Wind Steel Broadwind Mines Permian Basin Barnett Shale
Slide 6: A Diverse End-Market Presence
6 Wind Towers Services Replacement Gears Oil & Gas Gearboxes Loose gearing Service Mining Gearboxes Loose Gearing Weldments A Diverse End-Market Presence Steel Gearboxes Loose Gearing Opportunities to provide packaged gearing and services solutions
Slide 7: Wind Energy Market Dynamics
Wind Energy Market Dynamics Wind % of New Electric Capacity Added Wind Energy Historical Levelized Cost Of Electricity Comments: Wind energy has become a stable portion of new electricity capacity added each year In 2012, wind surpassed natural gas for new capacity additions Comments: Cost reduction
Slide 8: U.S. Wind Market Forecast - Near Term
U.S. Wind Market Forecast - Near Term 8 PTC Update PTC expired at 12/31/13 for new projects; IRS definition of “construction start” and completion requirements ensures strong demand through 2015 Seeking a multi-year extension and possible phase out of subsidy 29 states plus the District of Columbia
Slide 9: U.S. Wind Market Forecast - Long Term
U.S. Wind Market Forecast - Long Term 9 Source: MAKE Consulting Bull Case PTC extended through 2020 Natural gas prices increase to USD $7/MMBtu by 2018 State RPS mandates strengthened by 10% Annual electricity demand growth = 1% EPA implements greenhouse gas regulations on all new and existing facil
Slide 10: Poised for Growth
Poised for Growth 10 Maintain strength and market share in products and services for new wind capacity Grow industrial business to represent half of BWEN sales in 3-5 years Expand BWEN’s share of multi-billion dollar industrial end markets by 4-5% Expand sales force Increase capacity utilization Enh
Slide 11: Industrial Revenue – Catalyst for Growth
Industrial Revenue – Catalyst for Growth 11 Industrial Weldment Growth Main driver – sales execution Diversifying end markets and customers to claim additional market share; additional 2-5 sales reps Investing in market research Targeting Texas and Bakken oil regions Leveraging trends in natural gas
Slide 12: Executing On Our Plan
Executing On Our Plan 12 Improved 10 pp since 2010 CAGR 12% $M * 2013 preliminary data
Slide 13: 4-Year Financial History
4-Year Financial History 13 Revenue up 58% from 2010; expect to add another $40M+ in 2014 GP% (ex. restructuring) up 6.2 ppts Adj. EBITDA improved $20M*; expect another $6-8M improvement in 2014 2010 EPS includes effect of ($3.84) EPS impairment expense; 2013 includes effect of ($.10) EPS related to
Slide 14: Strengthening Our Balance Sheet
Strengthening Our Balance Sheet 14 Asset rich with low debt; operations fund working capital needs Working capital requirements declined as customer deposits increase Added $20M asset-based line in 2012; $0 drawn at 9/30/13 Repaid $37M of debt since 2009 $3M of remaining debt is low-rate or interest
Slide 15: Core Deliverables
15 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 a
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 Financial Measures 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 between current results a
Slide 18: U.S. Wind Market Forecast - Near Term
U.S. Wind Market Forecast - Near Term GW Installations BWEN Est. Market Share 2012 2013F 2014F 2015F 5.4% >50% 16% 15% 16% PTC Update PTC expired at 12/31/13 for new projects; IRS definition of “construction start” and completion requirements ensures strong demand through 2015 Seeking a multi-year e
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