Broadwind, Inc. · NASDAQ:BWEN
Broadwind — Broadwind Energy — Roth 25th Annual Conference 2013
13 slides from Broadwind's conference presentation, Mar 19, 2013
Slide 1: Roth 25th Annual Conference, March 20, 2013
Roth 25th Annual Conference March 20, 2013 Peter Duprey, CEO
Slide 2: Industry Data Disclaimer and Forward-Looking Statements
Industry Data Disclaimer and Forward-Looking Statements 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 avail
Slide 3: Broadwind Today
Broadwind Today 3 Towers and Weldments Leading wind tower manufacturer Leveraging welding competencies in industrial markets Gearing 85 year history Precision gearing manufacturer, 1 meter and larger In-house heat treat capabilities Enclosed drives and loose gearing expertise Services Non-routine ma
Slide 4: Vertical Markets
4 Wind Oil & Gas Mining Steel Vertical Markets Towers Multi-MW towers Weldments Large sub-components Welding - masts, shovels, etc. Gearing Replacement gears for wind turbines Enclosed drives, loose gears for on and offshore rigs Enclosed drives for mining equipment and machines Enclosed drives for
Slide 5: Historical Cost of Wind Energy; Tower Supply and Demand in Better Balance
Historical Cost of Wind Energy 5 Source: NREL Cost Curve, in Black & Veatch Report, October 2007 Wind energy cost per kWh has declined 90% since the early 1980s Over the past 10 years, wind represented 35% of new capacity brought on-line in the US Tower Supply and Demand in Better Balance 5 competit
Slide 6: Years into a 4-Year Turnaround Initiative
6 2 Years into a 4-Year Turnaround Initiative 1. Reduce manufacturing footprint and cost base 2. Diversify customers and industries 3. Improve financial flexibility Target Reduce by 40% or ~600K Sq. Ft. Target a 50/50 wind/industrial mix Become profitable; self-funded growth
Slide 7: Achieving Our Goals: Revenue Diversification
Achieving Our Goals 7 Revenue Diversification 2011 2012 2013 2014
Slide 8: Our Path to Profitability
Our Path to Profitability 8 *2015 depreciation will decline further by ~$2.5M
Slide 9: 3-Year Financial History
3-Year Financial History 9 Significant improvement has been made in 2 years: Revenue up 54% GP% up 2.6 ppts Adj. EBITDA improved $15M 2010 EPS includes effect of ($3.84) EPS impairment expense and EPS of ($1.45) related to discontinued operations 2010 2011 2012 2013 E Revenue-$M 136.9 185.9 210.7 21
Slide 10: Strengthening Our Balance Sheet
Strengthening Our Balance Sheet 10 Asset rich with low debt; operations fund working capital needs Growing working capital required to fund tower growth Added $20M asset-based line in 2012; <$1M drawn at 12/31/12 Repaid $31M of debt through 2012 Sale of South Dakota tower plant will extinguish $4M e
Slide 11: Building For Our Future
Building For Our Future Leverage core competencies Invest in continuous improvement Build customer intimacy Continue customer and industry diversification 11
Slide 12: Investment Thesis
Investment Thesis Executing to plan Reinventing company — transforming revenue concentration toward balanced industrial/wind mix Wind market has stabilized — tower market has come into balance Positioned to benefit from the resurgence in U.S. manufacturing and demand — gearing and weldments Executin
Slide 13: Broadwind Energy is committed to helping customers maximize performance
13 Broadwind Energy is committed to helping customers maximize performance of their energy and infrastructure investments— quicker, easier and smarter.