Slide 1: First Quarter 2023 Conference Call Presentation
First Quarter 2023 Conference Call Presentation May 11, 2023 Broadwind | Investor Presentation 2023 1
Slide 2: Safe Harbor Statement
SAFE HARBO R 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, f
Slide 3: 1Q 23 Performance Summary
1Q 23 P ERFO RMANCE SUMMARY
Slide 4: Performance Update
P ERFO RMANCE UP D ATE First Quarter 2023 Investment Thesis Strategic Progress Points Building a platform for profitable growth As of May 2023 New business development. A $175 million new wind We have increasing revenue, the highest order and backlog tower order with major global OEM (announced Jan-
Slide 5: Consolidated Financial Performance
CO NO LID ATED FINANCIAL P ERFO RMANCE Year-over-year organic growth in revenue, margin realization and profitability Strong backlog supported by Total Revenue Gross Profit broad-based demand recovery ($MM) ($MM) across diverse end-markets; $48.9 Raised full-year 2023 financial $41.8 guidance in Apr
Slide 6: Heavy Fabrications Segment
HEAVY FABRICATIO NS SEGMENT First Quarter 2023 Segment Revenue Segment EBITDA Y/Y sales growth across wind ($MM) ($MM) and diverse end-market footprint, improved sales mix $31.6 and price discipline support $27.3 improved margin realization $3.9 Adj EBITDA +16% y/y organic revenue growth, margin rat
Slide 7: Gearing Fabrications Segment
GEARING FABRICATIO NS SEGMENT First Quarter 2023 Segment Revenue Segment EBITDA Solid y/y revenue growth and ($MM) ($MM) margin expansion driven by customer activity within energy and industrials markets $12.0 $1.3 +13% y/y organic revenue growth, $10.6 Adj EBITDA supported by 20% y/y increase in ba
Slide 8: Industrial Solutions Segment
IND USTRIAL SO LUTIO NS SEGMENT First Quarter 2023 Segment Revenue Segment EBITDA Continue to see demand ($MM) ($MM) acceleration within the natural gas turbine market, building on $5.4 the market recovery evidenced $4.1 in 2022 $0.8 Adj EBITDA margin rate +32% y/y organic revenue growth, +1500 bps
Slide 9: Balance Sheet Update
BALANCE SHEET UP D ATE First Quarter 2023 Ca s h a n d LO C Ava ila b ilit y a t Q u a rt e r-En d Ne t D e b t O u t s t a n d in g (1) Maintaining stable liquidity ($MM) ($MM) profile sufficient to support $28.9 the long-term growth of the business $19.2 $14.7 $12.3 As expected, we invested heavil
Slide 10: Full-Year 2023 Financial Guidance
FULL-YEAR 20 23 FINANCIAL GUID ANCE As of May 11, 2023 To t a l Re ve n u e To t a l Ad ju s t e d EBITD A Broadwind increased its ($MM) ($MM) full-year 2023 financial guidance in April 2023 $205-$220 Increased guidance supported by targeted commercial growth within high-value, growth-oriented fabri
Slide 11: Broadwind Vision 2025
BRO AD W IND VISIO N 20 25 Leveraging our innovative precision manufacturing expertise, we seek to be a tier-1 producer and supplier of customer-driven fabrications and solutions that support next-generation energy transition technologies St ra t e g ic Gro w t h P rio rit ie s High-performance cult
Slide 12: Transformational New Tower Order
TRANSFO RMATIO NAL NEW TO W ER O RD ER Announced a $175 million wind tower order to be fulfilled in 2023 and 2024 $ 17 5 m illio n t o w e r o rd e r a n n o u n c e d in J a n u a ry 20 23 s u p p o rt s a t le a s t 50 % u t iliza t io n a c ro s s t o w e r m a n u fa c t u rin g s ys t e m d u r
Slide 13: Passage of IRA Supports Multi-Year Investment in Wind
P ASSAGE O F IRA SUP P O RTS MULTI-YEAR INVESTMENT IN W IND Inflation Reduction Act of 2022 supports multi-decade decarbonization of domestic energy grid Un it e d St a t e s O n s h o re W in d D e ve lo p m e n t Fo re c a s t (1) (Total GW Installed Annually, Includes Repowering (2023-2032) IRA p
Slide 14: Inflation Reduction Act Impact Benefit
INFLATIO N RED UCTIO N ACT IMP ACT BENEFIT At full utilization, IRA could provide up to ~$30 million in incremental annual gross profit beginning in 2023 Th e o re t ic a l IRA Be n e fit t o Bro a d w in d Quantifying potential impact of the 45x advanced manufacturing credit The IRA serves to mater
Slide 15: Appendix
AP P END IX
Slide 16: Corporate Overview
CO RP O RATE O VERVIEW We support the world’s energy transition as a leading independent producer of wind towers, gearing, custom fabrications, clean fuel processing systems and supply chain solutions We are one of the leading independent wind tower manufacturers in the United States. Our most signi
Slide 17: Our Business
O UR BUSINESS Building a platform sustained, profitable growth and long-term value creation What we do W h y w e w in Precision manufacturing within wind sector and other diverse end-markets Unique Value Proposition 66% Proven engineering, product development Heavy We provide large complex and preci
Slide 18: Broadwind Is a Trusted Manufacturing Partner
BRO AD W IND IS A TRUSTED MANUFACTURING P ARTNER We have the experience, reputation, people and customer relationships to capitalize on long-term wind market growth Broadwind is a leading independent producer of US domestic wind W in d Tu rb in e Co m p o n e n t s towers. Since 2008 we have: • Manu
Slide 19: Broadwind Diversification Initiatives
BRO AD W IND D IVERSIFICATIO N INITIATIVES We responded decisively to challenging operating wind climate by diversifying our business T12 Mo. Revenue by Market ($M’s) Wind Construction Industrial Mining Oil & Gas Power Generator 250 In 2018, we launched a strategic initiative to diversify our busine
Slide 20: Our Experienced, Proven Management Team
O UR EXP ERIENCED , P RO VEN MANAGEMENT TEAM Leadership Team with extensive experience in clean tech manufacturing Eric Bla s h fo rd To m Cic c o n e Ha ye s Ke n n e d y Chief Executive Officer Chief Financial Officer Chief Human Resource Officer Since 2020 Since Aug. 2022 Since 2020 Recent Experi
Slide 21: Our Experienced Board of Directors
O UR EXP ERIENCED BO ARD O F D IRECTO RS Leadership Team with extensive experience in clean tech manufacturing Ca ry B. W o o d Eric Bla s h fo rd P h ilip J . Ch ris t m a n Independent Chair (since 2021) Chief Executive Officer Director since 2018 BS, Mechanical Engineering, Indiana Director since
Slide 22: Our Experienced Board of Directors
O UR EXP ERIENCED BO ARD O F D IRECTO RS D a vid P . Re ila n d Th o m a s A. W a g n e r 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 Insti
Slide 23: Our Experienced Board of Directors
O UR EXP ERIENCED BO ARD O F D IRECTO RS Sa c h in Sh iva ra m J e a n e t t e A. P re s s 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 B
Slide 24: Governance Structure Supports Good Stewardship
GO VERNANCE STRUCTURE SUP P O RTS GO O D STEW ARD SHIP 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) En viro n m e n t a l & So c ia l Fa c t o r
Slide 25: Appendix: Balance Sheet
AP P END IX Balance Sheet Broadwind | Investor Presentation 2023 25
Slide 26: Appendix: Income Statement
AP P END IX Income Statement Three Months Ended March 31, 2023 2022 Revenues……………………………………………………………………………………… $ 48,873 $ 41,844 Cost of sales…………………………………………………………………………………… 41,897 39,832 Gross profit……………………………………………………………………………………… 6,976 2,012 OPERATING EXPENSES: Selling, general and administrativ
Slide 27: Appendix: Statement of Cash Flows
AP P END IX Statement of Cash Flows Broadwind | Investor Presentation 2023 27
Slide 28: Appendix: GAAP to Non-GAAP Reconciliation
AP P END IX GAAP to Non-GAAP Reconciliation Heavy Fabrications Segment Three Months Ended March 31, 2023 2022 Net Income (Loss)……………………...…………………………….……. $ 2,590 $ (476) Interest Expense……………………………..……………………. 140 140 Income Tax (Benefit) Provision……..…………………...…………………… 60 (126) Depreciation………………………
Slide 29: Appendix: Segment-Level Data
AP P END IX Segment-Level Data Three Months Ended March 31, 2023 2022 ORDERS: Heavy Fabrications………………………… $ 20,236 $ 34,161 Gearing………………………………………………… 12,393 14,061 Industrial Solutions………………………… 6,973 4,471 Total orders………………………………...… $ 39,602 $ 52,693 REVENUES: Heavy Fabrications………………………… $ 31,
Slide 30: IR Contact
IR CONTACT Please contact our investor relations team at BWEN@val-adv.com.com Broadwind | Investor Presentation 2023 30