Slide 1: Q4 and FY 2016 Earnings Call
Q4 and FY 2016 Earnings Call February 23, 2017
Slide 2: Industry Data and Forward-Looking Statements Disclaimer
Industry Data and Forward-Looking Statements Disclaimer § 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 ava
Slide 3: 2016 Highlights
2016 Highlights § 2016 was 1st profitable year in Company history § Orders of $275M nearly triple 2015 orders of $94M § More than doubled gross profit margin § Cost reductions of $9M exceeded plan by $1M § Strong cash balance of $22M at year end 2/23/2017 © 2017 Broadwind Energy, Inc. All rights res
Slide 4: 2016 Priorities
2016 Priorities 2016 Priorities 2016 Results Double Order Intake FY 16 orders of $275M nearly triple FY 15 Maintain Consistent Tower Production on schedule, Abilene made Production dramatic improvement Aggressively Manage Costs Reduced manufacturing overhead and operating expense by $9M vs. target o
Slide 5: Wind Fundamentals Remain Strong
Wind Fundamentals Remain Strong Cumulative Installations – U.S. Wind Power Capacity Under 100 Construction/Advanced Development 80 82 GW 60 GW 40 20 0 Source: AWEA Q4 Market Report Source: AWEA Q4 Market Report § Over 82 GW currently installed in the U.S. § 8.2 GW added in 2016 – wind now provides 5
Slide 6: Orders and Backlog
Orders and Backlog Orders – $M Order Backlog – $M Q4 Q4 Book : FY FY Book : 350 2015 2016 Bill 2015 2016 Bill 300 Ratio Ratio 250 Millions 200 Towers & 2.8 29.4 .55 69.1 260.8 1.64 150 Weldments 100 50 Gearing 2.1 2.9 .49 24.9 14.2 .69 - Q4 11 Q4 12 Q4 13 Q4 14 Q4 15 Q4 16 Total 4.9 32.3 .55 94.0 27
Slide 7: Consolidated Financial Results
Consolidated Financial Results Q4 FY 2015 2016 2015 2016 Total Sales $ 37.6 $ 48.2 $ 199.2 $ 180.8 Gross Profit -6.2 4.7 7.9 18.1 Gross Profit % -16.5% 9.8% 4.0% 10.0% Total Operating Expense 4.8 4.1 19.8 16.2 Income from Operations -11.0 0.6 -11.9 1.9 % of Sales -29.3% 1.2% -6.0% 1.1% Adj. EBITDA -
Slide 8: Towers and Weldments
Towers and Weldments Q4 Q4 FY FY Q4 Results 2015 2016 2015 2016 Orders ($M) 2.8 29.4 69.1 260.8 § Q4 16 revenue and operating income Towers Sold (#) 93 119 450 458 up vs. Q4 15 – significant production Revenue ($M) 31.9 42.3 170.9 160.2 improvements in Abilene Operating Income ($M) -5.8 2.8 4.7 12.8
Slide 9: Gearing
Gearing Q4 Q4 FY FY Q4 Results 2015 2016 2015 2016 § Orders up vs. Q4 15 – increased orders Orders ($M) 2.1 2.9 24.9 14.2 from mining and steel customers Revenue ($M) 5.8 5.9 29.6 20.6 § Generated $.5M EBITDA in Q4 16 § Significant improvement in FY operating Operating Loss ($M) -2.9 -.2 -8.2 -3.2 l
Slide 10: Liquidity
Liquidity (In Millions) 12/31/2015 12/31/2016 Strong Working Capital Management Cash Assets $ 12.7 $ 21.9 Accounts Receivable 9.8 11.9 12/31/15 12/31/16 Inventory 24.2 21.2 DSO 26 22 PPE 51.9 54.6 Other 11.3 8.1 Inv. Turns 7.5 8.2 Total Assets 109.9 117.7 Accounts Payable 13.8 15.9 DPO 24 33 Custome
Slide 11: Strategy
Strategy MIS S ION: Broadwind Energy is a precision manufacturer of structures, equipment & components for clean tech and other specialized applications. VIS ION: Over the next three years we will double our sales by growing our existing businesses and expanding our presence in clean tech. We will b
Slide 12: Red Wolf, A Broadwind Energy Company
Red Wolf, A Broadwind Energy Company § ~$30 million contract manufacturer specialized in kitting, light fabrication, packaging/assembly and testing § Diversifies BWEN into gas turbine install and upgrade market § Adds new southeast regional geographic manufacturing presence in close proximity to lea
Slide 13: New Segment Reporting Structure
New Segment Reporting Structure Previous New Towers & Towers & Weldments Weldments CNG Process Gears Systems Red Wolf Gears 2/23/2017 © 2017 Broadwind Energy, Inc. All rights reserved. 13
Slide 14: 2017 Guidance and Priorities
2017 Guidance and Priorities Q1 Q1 % FY FY % Guidance 2016 2017 Change 2016 2017 Change Revenue $46.8 $54-56M +15-19% $180.8 $210-220M +16-21% EBITDA* 1.7 ~$3M +>75% $9.6 $14-16M +45-66% § Sell remaining 2017 tower capacity § Reduce tower production costs through improved paint and welding § Complet
Slide 15: Business Summary
Business Summary § First profitable year § Best in class practices implemented to manage supply chain data collection, labor productivity, training, and new product introductions § Wind markets fundamentally strong…oil and gas and mining recovering § Surplus cash redeployed to diversify into gas tur
Slide 16: Appendix
Appendix Consolidated Three Months Ended December 31, Twelve Months Ended December 31, 2016 2015 2016 2015 Net Income/(Loss) from continuing operations……………………………. $ 405 $ (10,726) $ 1,335 $ (12,246) Interest Expense…………………………………. 193 188 625 799 Income Tax Provision/(Benefit)……………………………… 14 (25) (2
Slide 17: Broadwind Energy is a precision manufacturer of structures, equipment & components for clean tech
Broadwind Energy is a precision manufacturer of structures, equipment & components for clean tech and other specialized applications. www.BWEN.com 2/23/2017 © 2017 Broadwind Energy, Inc. All rights reserved. 17