Broadwind, Inc. · NASDAQ:BWEN
Broadwind — Broadwind Energy — Investor Presentation (June 2013)
15 slides from Broadwind's investor presentation, June 2013
Slide 1: Broadwind Energy, Inc. Investor Presentation
Broadwind Energy, Inc. Investor Presentation June 2013
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: Broadwind Today
Broadwind Today Towers and Weldments 2012 Revenue $211M Leading wind tower manufacturer Leveraging welding competencies in industrial markets Services 11% Gearing 85-year history Precision gearing manufacturer, 1 meter and Gearing Towers larger 25% 55% In-house heat treat capabilities En
Slide 4: Vertical Markets
Vertical Markets Wind Oil & Gas Mining Steel Towers Multi-MW towers Weldments Large sub-components Welding - masts, shovels, etc. Gearing Replacement gears for Enclosed drives, loose gears Enclosed drives for mining Enclosed drives for steel wind turbines for on and offshore rigs equipment and machi
Slide 5: Wind Energy Market Dynamics
Wind Energy Market Dynamics Wind % of New Electric Wind Energy Historical Capacity Added Levelized Cost Of Electricity 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% 2004 2005 2006 2007 2008 2009 2010 2011 2012 Source: US EIA Source: NREL Cost Curve, in Black & Veatch Report, October 2007 Comments: Comments:
Slide 6: US Wind Market Forecast
US Wind Market Forecast GWs Low end of forecast range 14 Upper end of forecast range PTC renewal expected to have a 12 Most likely outcome greater impact in 2014 due to the cycle time of getting projects ready to 10 build 8 Main drivers for wind energy demand: - Natural gas pricing 6 - Electrici
Slide 7: Towers and Weldments Supply/Demand Balance Improving
Towers and Weldments Supply/Demand Balance Improving Industry Capacity Reductions ~15% 100% ~30% 80% 60% ~25% 40% ~30% 20% 0% Jan 2012 Capacity Closure Asian Jan 2013 Shift Imports ~ 4 competitors are exiting tower manufacturing Multi-purpose facilities are being repurposed to other industries (
Slide 8: US Gear Demand Outlook
US Gear Demand Outlook (Ex. Auto) Source: American Gear Manufacturers Association’s US Economic and Gear Industry Outlook US gear demand on track to decline 5.5% in 2013; softness in most end markets Gear imports into US remain strong; increased competition from German and Italian gear manufactu
Slide 9: Achieving Our Goals
Achieving Our Goals Adjusted EBITDA SG&A as % of Rev Margin 25% 5% 20% 15% 0% 2010 2011 2012 10% 20% 14% -5% 5% 10% 0% -10% 2010 2011 2012 Revenue Diversification Manufacturing and Back Office Footprint 2010 2011 2012 1,600 17% Thousands 1,400 20% 25% Sq. Ft. 7% 1,200 76% 7% 73% 13% 62% 1,000 800 60
Slide 10: 3-Year Financial History
3-Year Financial History FY 2010 FY 2011 FY 2012 2013 E Q2 2012 Q2 2013 Revenue-$M 137.0 186.0 210.7 215-225 56.3 54-56 Gross Profit-$M 1.9 7.2 6.8 1.7 -% (ex. Restructuring) 1.4% 3.9% 4.0% 3.7% Operating Expense-$M 30.4 27.6 24.1 5.8 -% (ex. Restructuring) 22.2% 14.6% 11.1% 10.2% Impairment Exp. -$
Slide 11: Pathway to Profitability
Pathway to Profitability Gross Margin Trend Operating Margin Trend $5 12.0% 9-11% 2012 Depr/Amort Operating Volume Gross Margin Ex. Restructuring 10.0% $0 Loss 2014 Productivity, Projected 8.0% CI Impact Operating 6-7% -$5 Income $M 6.0% Restructuring Savings -$10 4.0% *2015 depreciation will declin
Slide 12: Strengthening Our Balance Sheet
Strengthening Our Balance Sheet Operating Working Capital % Debt Balance-$M 14% $45 12% $40 10% $35 $30 8% $25 6% $20 $15 4% $10 2% $5 0% $0 2009 2010 2011 2012 3/31/2013 2009 2010 2011 2012 4/30/2013 % of Trailing 3-month annualized sales Growing working capital required to fund tower growth Ad
Slide 13: Building For Our Future
Building For Our Future Leverage core competencies – more proprietary content Invest in continuous improvement Build customer intimacy Continue customer and industry diversification © 2013 Broadwind Energy, Inc. All Rights Reserved. 13
Slide 14: Investment Thesis
Investment Thesis Executing to plan Reinventing company — transforming revenue concentration toward balanced industrial/wind mix Wind market has stabilized — tower market has come into balance Positioned to benefit from the resurgence in U.S. manufacturing and demand — gearing and weldments
Slide 15: 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. © 2013 Broadwind Energy, Inc. All Rights Reserved. 15