Slide 1: Second Quarter 2023 Conference Call Presentation
Second Quarter 2023 Conference Call Presentation August 14, 2023 Broadwind | Investor Presentation 2023 1
Slide 2: Safe Harbor Statement
SAFE HARBOR STATEMENT This document 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, fi
Slide 3: 2Q23 Performance Summary
2Q23 PERFORMANCE SUMMARY
Slide 4: Performance Update
PERFORMANCE UPDATE Second Quarter 2023 Investment Thesis Strategic Progress Points Building a platform for profitable growth As of August 2023 Raising full-year 2023 Adjusted EBITDA guidance. Sustained demand strength together with improved We have increasing revenue, the highest order and backlog m
Slide 5: Consolidated Financial Performance
CONOLIDATED FINANCIAL PERFORMANCE Year-over-year organic growth in revenue, margin realization and profitability Strong backlog supported by Total Revenue Gross Profit ($MM) ($MM) broad-based demand recovery across diverse end-markets; $8.3 Raising full-year 2023 guidance $50.0 $50.8 for the second
Slide 6: Heavy Fabrications Segment
HEAVY FABRICATIONS SEGMENT Second Quarter 2023 Segment Revenue Segment EBITDA Improved sales mix, AMP ($MM) ($MM) credits and operational execution support improved $35.6 margin realization $33.9 $5.0 Segment revenue declined 5% y/y, while EBITDA margin rate segment Adjusted EBITDA increased by +112
Slide 7: Gearing Fabrications Segment
GEARING FABRICATIONS SEGMENT Second Quarter 2023 Segment Revenue Segment EBITDA Solid y/y revenue growth and ($MM) ($MM) margin expansion primarily driven by customer activity $11.0 within industrials markets $10.1 $1.0 +9% y/y organic revenue growth; EBITDA Industrial end-market revenue increased m
Slide 8: Industrial Solutions Segment
INDUSTRIAL SOLUTIONS SEGMENT Second Quarter 2023 Segment Revenue Segment EBITDA Continue to see demand ($MM) ($MM) acceleration within the natural gas turbine market, building on $6.3 the market recovery evidenced $5.0 $1.0 in 2022 EBITDA margin rate Strong organic revenue growth, supported +1146 bp
Slide 9: Balance Sheet Update
BALANCE SHEET UPDATE Second Quarter 2023 Cash and LOC Availability at Quarter-End Net Debt Outstanding(1) Maintaining stable liquidity ($MM) ($MM) profile sufficient to support the long-term growth of the $15.2 $22.9 $23.3 business $10.2 As expected, we invested heavily in working capital in 1H23 to
Slide 10: Full-Year 2023 Financial Guidance
FULL-YEAR 2023 FINANCIAL GUIDANCE As of August 14, 2023 Total Revenue Total Adjusted EBITDA ($MM) ($MM) We are increasing our full- year 2023 Adjusted EBITDA guidance for the second $205-$220 time this calendar year Increased guidance supported by targeted commercial growth within $176.8 high-value,
Slide 11: Appendix
APPENDIX
Slide 12: Corporate Overview
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 We are one of the leading independent wind tower manufacturers in the United States. Our most significa
Slide 13: Our Business
OUR BUSINESS Building a platform sustained, profitable growth and long-term value creation What we do Why we win Precision manufacturing within wind sector and other diverse end-markets Unique Value Proposition 66% Proven engineering, product development Heavy We provide large complex and precision
Slide 14: Transformational New Tower Order
TRANSFORMATIONAL NEW TOWER ORDER Announced a $175 million wind tower order to be fulfilled in 2023 and 2024 $175 million tower order announced in January 2023 supports at least 50% utilization across tower manufacturing system during the full-years 2023 and 2024 After a two-year hiatus, domestic ons
Slide 15: Inflation Reduction Act Impact Benefit
INFLATION REDUCTION ACT IMPACT BENEFIT At full utilization, IRA could provide up to ~$30 million in incremental annual gross profit beginning in 2023 Theoretical IRA Benefit to Broadwind Quantifying potential impact of the 45x advanced manufacturing credit The IRA serves to materially Annual tower p
Slide 16: Passage of IRA Supports Multi-Year Investment in Wind
PASSAGE OF IRA SUPPORTS MULTI-YEAR INVESTMENT IN WIND Inflation Reduction Act of 2022 supports multi-decade decarbonization of domestic energy grid United States Onshore Wind Development Forecast (1) (Total GW Installed Annually, Includes Repowering (2023-2032) IRA provides transformative, long-term
Slide 17: Our Experienced, Proven Management Team
OUR EXPERIENCED, PROVEN MANAGEMENT TEAM Leadership Team with extensive experience in clean tech manufacturing Eric Blashford Tom Ciccone Hayes Kennedy Chief Executive Officer Chief Financial Officer Chief Human Resource Officer Since 2020 Since Aug. 2022 Since 2020 Recent Experience Recent Experienc
Slide 18: Our Experienced Board of Directors
OUR EXPERIENCED BOARD OF DIRECTORS Leadership Team with extensive experience in clean tech manufacturing Cary B. Wood Eric Blashford Philip J. Christman Independent Chair (since 2021) Chief Executive Officer Director since 2018 BS, Mechanical Engineering, Indiana Director since 2016 Director since 2
Slide 19: Our Experienced Board of Directors
OUR EXPERIENCED BOARD OF DIRECTORS David P. Reiland Thomas A. Wagner Director since 2008 Director since 2011 BS, Financial Management, California State University BS Engineering, Cornell University MBA, University of Southern California MS Mechanics, Rensselaer Polytechnic Institute Certified Public
Slide 20: Our Experienced Board of Directors
OUR EXPERIENCED BOARD OF DIRECTORS Sachin Shivaram Jeanette A. Press Director since 2022 Director since 2023 BA, Harvard University BBA in Accounting, Loyola University Mphil, University of Cambridge Licensed CPA JD, Yale Law School; (licensed to practice law in WI) Broadwind Board Experience Broadw
Slide 21: Governance Structure Supports Good Stewardship
GOVERNANCE STRUCTURE SUPPORTS GOOD STEWARDSHIP The Board designed Broadwind’s governance structures to promote a culture of accountability and independence Governance Practices Independent Chairman 6 of 7 directors are independent (all except CEO) Environmental & Social Factors Annually-elected dire
Slide 22: Appendix: Balance Sheet
APPENDIX Balance Sheet Broadwind | Investor Presentation 2023 22
Slide 23: Appendix: Income Statement
APPENDIX Income Statement Broadwind | Investor Presentation 2023 23
Slide 24: Appendix: Statement of Cash Flows
APPENDIX Statement of Cash Flows Broadwind | Investor Presentation 2023 24
Slide 25: GAAP to Non-GAAP Reconciliation
APPENDIX GAAP to Non-GAAP Reconciliation Industrial Solutions Segment Three Months Ended June 30, Six Ended June 30, 2023 2022 2023 2022 Net Income (Loss)……………………...……...……………………………. $ 681 $ (32) $ 1,210 $ (257) Interest Expense……………………………………………………. 128 52 211 66 Income Tax Provision…………………...………………
Slide 26: Appendix: Segment-Level Data
APPENDIX Segment-Level Data Broadwind | Investor Presentation 2023 26
Slide 27: IR Contact
IR CONTACT Please contact our investor relations team at: BWEN@val-adv.com Broadwind | Investor Presentation 2023 27