Power Solutions International, Inc. · NASDAQ:PSIX
Power Solutions International — Investor Presentation (June 2021)
43 slides from Power Solutions International's investor presentation, Jun 1, 2021
Slide 1: Corporate Overview
CORPORATE OVERVIEW June 1, 2021 Exhibit 99.1
Slide 2: Safe Harbor & Other Cautionary Notes
SAFE HARBOR & OTHER CAUTIONARY NOTES This presentation has been prepared by Power Solutions International, Inc. (PSI) for investors/other parties, solely for informational purposes. The information contained in this presentation does not purport to be all-inclusive or to contain all of the informati
Slide 3: About PSI
ABOUT PSI Jo
Slide 4: PSI's Mission
“ PSI’s MISSION: Solving Power Challenges of Global Equipment Manufacturers Through High-Quality, Innovative Products
Slide 5: Powering Leading Equipment Manufacturers Globally
POWERING LEADING EQUIPMENT MANUFACTURERS GLOBALLY
Slide 6: Overview
OVERVIEW Approximately 800 Employees Leading Worldwide Manufacturer of Engines Produced 1,000,000 engines historically Wide range of engines: 27 different displacements ranging from 1L to 53L Approximately 1,000,000 sq. ft. manufacturing footprint, with headquarters in Wood Dale, IL Significant clea
Slide 7: Advanced Facilities
ADVANCED FACILITIES PSI Corp. HQ & Engine Dress Facility 201 Mittel Dr. Wood Dale, IL 261,000 sq. ft. Dedicated R&D & Engineering Facility Automotive Grade High-Volume Production Lines State-of-the-Art Machining Center In-house EPA & CARB certified test cell operation Approximately 1,000,000 sq. ft.
Slide 8: Technologies & Talent
TECHNOLOGIES & TALENT Leading Talent Advanced Engineering Disciplines Industry-Leading Application Knowledge Strategic Partnerships Approximately 800 Employees Innovative Technologies PSI Proprietary Controls Certified, Low-Emission Solutions (EPA, CARB Certifications) Fuel-Flexible Systems: Natural
Slide 9: Manufacturing & Engine Capabilities
MANUFACTURING & ENGINE CAPABILITIES Complete Range APPLICATION ENGINEERING & INTEGRATION TESTING & VALIDATION CALIBRATION & EMISSIONS ENGINE DESIGN & ENGINEERING MATERIAL OPTIMIZATION & SIMULATION SPECIALIZED MACHINING ADVANCED MANUFACTURING POWERTRAIN ASSEMBLY & KITTING COMPLETE ENGINE SIMULATION C
Slide 10: Expansive Product Line
TRANSPORTATION EXPANSIVE PRODUCT LINE Powering Global Transportation, Energy & Industrial OEMs Engine Displacements 6.0L, 8.8L Fuel Types Propane, Natural Gas, Gasoline Integration Transmissions & Tanks Horsepower Range 293 hp – 345 hp Torque Range 317 lb-ft – 565 lb-ft INDUSTRIAL Engine Displacemen
Slide 11: PSI/Weichai Relationship
PSI/WEICHAI RELATIONSHIP Weichai Power Background Based in China; Global footprint Leading automotive and equipment manufacturer specializing in the production of powertrains, automobiles, intelligent logistics, automotive parts and components Weichai Power Co., Ltd. is publicly listed on the Hong K
Slide 12: PSI & Weichai History & Milestones
PSI & WEICHAI HISTORY & MILESTONES Formation of Power Great Lakes, Inc. Power Solutions Inc. (PSI) established as global distributor of GM industrial engines – Gas Product scope Acquisition of 3PI Acquisition of Buck’s Engines, PowerTrain Integration and Bi-Phase PSI goes public. PSIX launched as an
Slide 13: Expanded Global Business Footprint
Major Facility Snapshot: Shanghai – Engine Machining and R&D Weifang – High-Speed Engine & Vehicle Machining and R&D Chongqing – Medium/ High-Speed Engine & MVP R&D Xi’an – HD Truck & HD Transmission Box R&D Wiesbaden, Germany – Forklift & Hydraulics R&D Forli, Italy – Luxury Yachts R&D Marseilles,
Slide 14: Product Synergies
PRODUCT SYNERGIES Our collective product portfolio offers the most competitive and complete power solution range available across all applications Transportation Weichai has a large market share in Asia, for which it develops and manufactures thousands of commercial vehicle engines annually Access t
Slide 15: Product Synergies – Weichai New Energy Product Access
PRODUCT SYNERGIES – WEICHAI NEW ENERGY PRODUCT ACCESS Construction Truck、Refrigerator truck、48V LDT Bus, Cargo truck, tractor, off-road, Distributed generation Bus, Cargo truck, Forklift Powertrain Components Motor Motor Controller VCU FC Stack System FC Engine EV HEV Traction Battery System Storage
Slide 16: Product Synergies – New Energy
PRODUCT SYNERGIES –NEW ENERGY Source: Wood Mackenzie. “Global Energy Storage Capacity to Grow at CAGR of 31% to 2030.” Exploring opportunities within energy storage, fuel cell and electrification with Weichai, who has invested in technology New energy solutions is an emerging opportunity for PSI Cur
Slide 17: Energy: Powering the Future
ENERGY Powering the Future
Slide 18: Energy Markets & Customers
ENERGY MARKETS & CUSTOMERS Our Customers/End Users Markets Oil & Gas Telecommunications Data Centers Medical Office & Commercial Utility & Water Treatment Growth opportunities across various markets driven by: aged electric grid, power outage activity, growth of intermittent sources of energy, utili
Slide 19: Application/Market Growth Opportunities
APPLICATION/MARKET GROWTH OPPORTUNITIES The growth of intermittent sources of energy, such as wind and solar, is driving increased demand for generators, microgrids and demand response equipment Sources: MarketsandMarkets™ INC., Grandview Research, Navigant Research, technavio Diesel Generator Marke
Slide 20: Natural Gas Energy Market
NATURAL GAS ENERGY MARKET Sources: Diesel Progress September 2020; Forbes – December 6, 2019; Research Nester; GE Reports (12/5/18); EIA.gov (4/5/2019) Natural Gas Energy Market Dynamics Cleaner than diesel; Not subject to the transportation limitations that diesel has during times of extreme weathe
Slide 21: Power Generation Opportunity Today & Future
POWER GENERATION OPPORTUNITY TODAY & FUTURE Weichai Gas & Diesel Engine Platforms Open Power Generation Market Significantly * Power generation market opportunity projections are based on internal estimates and data from Power Systems Research 2018 PSI POWER GEN ADDRESSABLE MARKET NG Engines 2.4L-22
Slide 22: Transportation: Powering the Road Ahead
TRANSPORTATION Powering the Road Ahead
Slide 23: PSI Transportation Markets & Customers
PSI TRANSPORTATION MARKETS & CUSTOMERS Propane & Gasoline EUROVAN & TRANSIT CHASSIS & OEM UTILITY RV RECENT EXPERIENCE FUTURE OPPORTUNITIES
Slide 24: School Bus Market
SCHOOL BUS MARKET Recent History of Gasoline & Propane Growth, Industry-Leading Customers, Significant Engine Market Opportunity Sources: School Bus Fleet (Fact Book 2021); Blue Bird investor presentation January 2019; School Bus Fleet (7/25/16), Icbus.com; Blue Bird press release on 12/11/19; Inter
Slide 25: Transportation Market Opportunity
Major Automotive OEMs including General Motors, Ford, Mitsubishi and others are moving into electrification and hybridization, which eliminates completely, or utilizes, smaller combustion engines. Emission regulations like the current standard, the Corporate Average Fuel (CAFÉ) standard, for passeng
Slide 26: Industrial: Powering Productivity
INDUSTRIAL Powering Productivity
Slide 27: Industrial Markets & Customers
INDUSTRIAL MARKETS & CUSTOMERS OIL & GAS COMPRESSION/ OIL LIFTS FORKLIFT AERIAL WORK PLATFORM ARBOR CARE UTILITY VEHICLE SWEEPERS /SCRUBBER ICE RESURFACING OTHER INDUSTRIAL Expanded OEM pipeline across various markets (UTV, commercial mowers, chippers, telehandlers, commercial cleaning)
Slide 28: Industrial Market Opportunity
INDUSTRIAL MARKET OPPORTUNITY 28 Industrial market presents significant unit volume opportunities for growth Diesel (compression ignition) to spark ignition transition trend Ability to seek battery electric opportunities as the markets progresses Source: 2019 Power System Research Data, PSI Internal
Slide 29: Financial Update, Business Objectives
FINANCIAL UPDATE CORPORATE UPDATE BUSINESS OBJECTIVES
Slide 30: Capital Structure Overview
CAPITAL STRUCTURE OVERVIEW *Based on 22,892,413 shares outstanding as of 4/19/21 and information contained in the Company’s 10K/A filed on 4/30/21 Debt & Cash Highlights $130 Million (M) uncommitted senior secured revolving credit facility pursuant to amended and restated uncommitted revolving credi
Slide 31: Q1 2021 Financial Results
Q1 2021 FINANCIAL RESULTS GROSS MARGIN Q1 2021 sales reflects declines across energy (-$24.9m) and industrial (-$2.8m) end markets, partly offset by higher transportation end market sales (+$22.8m) Q1 2021 gross profit declined by $10.6m; gross margin down 9.8 percentage points Gross margin impacted
Slide 32: 2021 Outlook
2021 OUTLOOK 2021 Outlook Expect sales for the full year of 2021 to be at least 15 percent above 2020 levels Anticipated growth across all end markets (Energy, Industrial and Transportation) Growth is projected to occur in the second, third and fourth quarters of 2021, as compared to the correspondi
Slide 33: PSI is current with its SEC filings
CORPORATE UPDATE PSI is current with its SEC filings Numerous changes and improvements have been made across the organization since 2017 New management team and key hires: CEO; CFO; Chief Technical Officer; Chief Quality Officer; VP, Internal Audit; Director of Financial Reporting; Director of Accou
Slide 34: Streamlining of Business Processes
Streamlining of Business Processes Review and identify cost reductions throughout the organization Enhanced controls and monitors across major spend areas Warranty Expense Mitigation Efforts Created Chief Quality Officer position to provide additional attention and focus Developing reimbursement/com
Slide 35: Business Objectives Continued
Strengthen Business through Optimization of Business Systems and Technology Reimplementation of ERP system Supports efforts to remediate internal controls, improve processes, drive greater operational efficiencies and provide better and timelier decision making across the organization Capitalize on
Slide 36: Appendix
APPENDIX
Slide 37: Non-GAAP Reconciliation
NON-GAAP RECONCILIATION Financial Results for Three and Months Ended March 31, 2021 and 2020 (UNAUDITED) * See Non-GAAP Reconciliation on following slides
Slide 38: Non-GAAP Financial Measures
NON-GAAP FINANCIAL MEASURES In addition to the results provided in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) above, this presentation also includes non-GAAP (adjusted) financial measures. Non-GAAP financial measures provide insight into selected fina
Slide 39: Non-GAAP Reconciliation: Net Loss to Adjusted Net Loss
NON-GAAP RECONCILIATION The following table presents a reconciliation from Net loss to Adjusted net loss for the three months ended March 31, 2021 and 2020 (UNAUDITED)
Slide 40: Non-GAAP Reconciliation: Loss per Share
NON-GAAP RECONCILIATION The following table presents a reconciliation from Loss per common share – diluted to Adjusted loss per share for the three months ended March 31, 2021 and 2020 (UNAUDITED) For the Three Months Ended March 31, 2021 2020 Loss per common share – diluted $ (0.79) $ (0.03) Stock
Slide 41: Non-GAAP Reconciliation: EBITDA and Adjusted EBITDA
NON-GAAP RECONCILIATION The following table presents a reconciliation from Net loss to EBITDA and Adjusted EBITDA for the three months ended March 31, 2021 and 2020 (UNAUDITED)
Slide 42: Non-GAAP Reconciliation Footnotes
NON-GAAP RECONCILIATION 1.Amounts reflect non-cash stock-based compensation expense. 2.Amounts represent severance and other post-employment costs for certain former employees of the Company. 3.Amounts represent professional services fees related to the Company’s efforts to prepare, audit and file d
Slide 43: Thank You
THANK YOU. 201 Mittel Drive, Wood Dale, IL 60191 630.350.9400 • www.psiengines.com
Power Solutions International — Investor Presentation (June 2021) on 6ix