Broadwind, Inc. · NASDAQ:BWEN
Broadwind — Broadwind Energy — Investor Presentation (January 2014)
16 slides from Broadwind's investor presentation, January 2014
Slide 1: Broadwind Energy, Inc. Investor Presentation
Broadwind Energy, Inc. Investor Presentation January 2014 © 2014 Broadwind Energy, Inc. All Rights Reserved.
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: Investment Thesis
Investment Thesis Significant improvement in margins since 2010 Improved wind tower market due to trade tariffs (China & Vietnam) and competitors exiting Tower capacity substantially sold out for 2014, booking orders into 2015 Expect to add $40M of revenue in 2014 Restructuring plan nearly comp
Slide 4: Broadwind Today
Broadwind Today 2013 Revenue Composition Towers and Weldments Leading wind tower manufacturer Annual revenue has grown from $5M to $150M over 7-year period Leveraging welding competencies in broader Services energy markets 8% Gearing 85-year history Gearing Towers Precision gearing manufac
Slide 5: Positioned in Key Corridors
Positioned in Key Corridors Bakken Shale Marcellus Shale Wind Permian Mines Basin Barnett Oil & Gas Shale Wind Steel Broadwind Eagle Ford Shale Gulf of Mexico – Off-Shore © 2014 Broadwind Energy, Inc. All Rights Reserved. 5
Slide 6: Vertical Markets
Vertical Markets Wind Oil & Gas Mining Steel Towers Multi-MW towers Weldments Large sub-components Welding-masts, shovels, etc. Gearboxes, loose gears for Replacement gears for Gearboxes, loose gears for mining equipment and Gearing wind turbines on and offshore rigs machines Gearboxes for steel mil
Slide 7: Wind Energy Market Dynamics
Wind Energy Market Dynamics Wind % of New Electric Wind Energy Historical 45% Capacity Added Levelized Cost Of Electricity 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 8: U.S. Wind Market Forecast - Near Term
U.S. Wind Market Forecast - Near Term GW GW Installations PTC Update 14 PTC expired at year end for new projects; IRS definition of 12 “construction start” and completion 10 requirements ensures strong demand through 2015 8 Seeking a 6-year extension/phase 6 out of subsidy, by then wind should b
Slide 9: U.S. Wind Market Forecast - Long Term
U.S. Wind Market Forecast - Long Term U.S. Market Outlook 12 10 GW Installations 8 6 4 2 0 2010a 2011a 2012a 2013a 2014e 2015e 2016e 2017e 2018e 2019e 2020e Source: MAKE Consulting Bear Case Bull Case PTC not renewed PTC extended through 2020 Natural gas prices stagnate between $3-4/MMBtu Na
Slide 10: Achieving Our Goals
Achieving Our Goals Adjusted EBITDA SG&A as % of Revenue 25% $M 10 Improved $15M in 3 years Improved 10 pp since 2010 20% 8 6 15% 4 2 0 10% 20% -2 2010 2011 2012 T12M 13 14% -4 5% 10% 10% -6 Ex. $1.5M Regulatory Fine -8 0% -10 2010 2011 2012 YTD 9/30/13 Manufacturing and Back 10% EHS Program Progres
Slide 11: 3-Year Financial History
3-Year Financial History YTD 9/30 FY 2010 FY 2011 FY 2012 2013 E 2012 2013 Revenue-$M 137.0 186.0 210.7 215-218 165.8 159.5 Gross Profit-$M 1.9 7.2 6.8 6.6 9.3 -% (ex. Restructuring) 1.4% 3.9% 4.0% 4.6% 7.6% Operating Expense-$M 30.4 27.6 24.1 18.2 19.5 -% (ex. Restructuring) 22.2% 14.6% 11.1% 10.7%
Slide 12: Profitability Progress
Profitability Progress Gross Margin Trend – % of Sales Operating Expense Trend – % of Sales 12.0% 25% 9-11% 10.0% 20% 8.0% 15% 6.0% 9-10% 10% 4.0% 2.0% 5% 0.0% 0% 2010 2011 2012 YTD 2013 2014 2010 2011 2012 YTD 2013 2014 Target Target SGA % of Sales Intangible Amortization GM% Restructuring Restruct
Slide 13: Our Path to Profitability
Our Path to Profitability 5,000 2014 Projected Depr/Amort Operating Income 2012 Operating Loss Volume 0 Productivity, CI Impact -5,000 $ Thousands Restructuring Savings -10,000 *2015 depreciation will decline further by ~$2.5M -15,000 -20,000 © 2013 Broadwind Energy, Inc. All Rights Reserved 13
Slide 14: Strengthening Our Balance Sheet
Strengthening Our Balance Sheet 50 Operating Working Capital % Debt Balance – $M 40 14% 12% 30 $M 10% 8% 20 6% 10 4% 2% 0 0% debt and capital leases low or 0 interest rate debt Brandon mtg % of trailing 3-month annualized sales Working capital requirements declining as customer deposits increase
Slide 15: Core Deliverables
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
Slide 16: Broadwind Energy is committed to helping customers maximize performance of their energy and infrastructure
Broadwind Energy is committed to helping customers maximize performance of their energy and infrastructure investments— quicker, easier and smarter. © 2014 Broadwind Energy, Inc. All Rights Reserved. 16
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