Broadwind, Inc. · NASDAQ:BWEN

Broadwind — Broadwind Energy — UBS Gas & Utilities Conference 2017

16 slides from Broadwind's conference presentation, Feb 28, 2017

  1. Slide 1: Investor Presentation UBS Gas & Utilities Conference

    Investor Presentation UBS Gas & Utilities Conference February 28, 2017

  2. Slide 2: Industry Data and Forward-Looking Statements

    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

  3. Slide 3: Introduction

    Introduction 2016 Sales - $181M Towers and Weldments  Leading wind tower manufacturer  Capacity 500 towers, expanding to 550 Weldments  Have produced towers for every major 2% Gears OEM in industry 12%  Leveraging welding competencies in broader energy markets Gearing  90-year history  Precisi

  4. Slide 4: 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 February 2017 © 2017 Broadwind Energy, Inc. All rights

  5. Slide 5: >90% of BWEN 2016 revenue from Wind energy

    >90% of BWEN 2016 revenue from Wind energy Cumulative Installations – U.S. Wind Power Capacity Under 100 Construction/Advanced Development 82 GW 80 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

  6. 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

  7. Slide 7: Towers and Weldments

    Towers and Weldments  Leading wind tower manufacturer in U.S.  Have produced ~3000 >1MW towers for all major OEM’s in U.S.  Manitowoc, WI plant capacity ~350 towers  Abilene, TX plant capacity ~150 towers, expanding to 200 towers  2015 operational problems behind us  $7 Million investment unde

  8. Slide 8: Gearing

    Gearing  90+ year history  Competencies in wind gearing, oil & gas, mining, steel and other industrial applications  Completed 3-year restructuring in 2014: well positioned for rebound in oil & gas and mining  2017 focus: Expand sales efforts, continue aggressive cost management, continue cross-

  9. Slide 9: Consolidated Financial Results

    Consolidated Financial Results 2013 2014 2015 2016 Revenue-$M $ 198.5 $225.8 $ 199.2 $ 180.8 Gross Profit-$M 14.6 19.7 7.9 18.1 -% (ex. Restructuring) 5.0% 9.3% 4.0% 10.0% Operating Expense-$M 23.1 21.2 19.8 16.2 -% (ex. Restructuring) 11.1% 9.3% 9.4% 9.0% Operating Income/(Loss)-$M (8.5) (1.5) (11.

  10. 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

  11. Slide 11: Strategy

    Strategy MISSION: Broadwind Energy is a precision manufacturer of structures, equipment & components for clean tech and other specialized applications. VISION: Over the next three years we will double our sales by growing our existing businesses and expanding our presence in clean tech. We will buil

  12. Slide 12: Red Wolf, A Broadwind Energy Company

    Red Wolf, A Broadwind Energy Company 14,000 12,000  ~$30 million contract manufacturer specialized in 10,000 kitting, light fabrication, packaging/assembly and 8,000 testing MW 6,000 4,000  Diversifies BWEN into gas turbine install and 2,000 upgrade market 0 2010 2011 2012 2013 2014 2015  Adds ne

  13. Slide 13: 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

  14. Slide 14: Investment Thesis

    Investment Thesis  Wind markets fundamentally strong…oil and gas and mining recovering  Strong balance sheet – negative net debt  Trading at a discount relative to peers  Surplus cash redeployed to diversify into gas turbine supply chain with Red Wolf acquisition  Conservative capital structure

  15. Slide 15: 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) (36)

  16. Slide 16: 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 February © 2017 Broadwind Energy, Inc. All rights reserved. 16 2017

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