Slide 1: 3Q20 Results Conference Call
3Q20 Results Conference Call Investor Presentation
Slide 2: Safe-Harbor Statement
SAFE-HARBOR STATEMENT This release 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, fin
Slide 3: Performance Overview
PERFORMANCE OVERVIEW
Slide 4: Executive Summary
EXECUTIVE SUMMARY Third Quarter 2020 Operated wind tower Pandemic-related supply chain Stable revenue growth driven by manufacturing facilities near disruptions impacted margin wind tower demand optimal capacity capture Total revenue increased 18.4% y/y to Total tower sections sold increased 30% Gro
Slide 5: Consolidated Financial Data
CONSOLIDATED FINANCIAL DATA Wind-driven revenue growth offset by near-term pandemic-related supply chain constraints • 18% y/y revenue growth; Total Revenue Gross Profit increased demand within ($MM) ($MM)(1) wind business partially offset by lower non-wind $207.4 Gross margin +230 bps revenue Gross
Slide 6: Heavy Fabrications Segment
HEAVY FABRICATIONS SEGMENT Strong wind tower demand contributed to revenue growth, margin expansion • 28% y/y segment revenue Segment Revenue Segment Adjusted EBITDA growth in 3Q20, driven by ($MM) ($MM) increased demand from the wind and industrials $163.0 markets $14.1 $103.2 • 2020 tower producti
Slide 7: Heavy Fabrications Segment
HEAVY FABRICATIONS SEGMENT Continued y/y growth in demand for wind tower sections Total Wind Tower Sections Sold (Number of Sections) +59% y/y +66% y/y +28% y/y +372% y/y 312 320 312 302 243 201 188 64 4Q18 4Q19 1Q19 1Q20 2Q19 2Q20 3Q19 3Q20 Note: In December 2019, the United States production tax c
Slide 8: Gearing Segment
GEARING SEGMENT Challenged by short-term pandemic-related delays in customer orders; anticipate 1H21 recovery • 11% segment revenue Segment Revenue Segment Adjusted EBITDA decline driven by short- ($MM) ($MM) term delays in customer orders due to the pandemic $38.2 $6.1 $27.9 • Industrial gearing re
Slide 9: Industrial Solutions Segment
INDUSTRIAL SOLUTIONS SEGMENT Stable y/y performance; 38% y/y growth in segment backlog supported by consistent order activity • 5% y/y decline in segment Segment Revenue Segment Adjusted EBITDA revenue; growth in ($MM) ($MM) aftermarket offset by $16.6 decline in NGT $14.8 $1.0 $0.3 $0.2 ($0.4) $4.3
Slide 10: Balance Sheet Update
BALANCE SHEET UPDATE Sequential decline in working capital as % of sales; elevated cash and availability on LOC Operating Working Capital as a % of Sales(1) 14% 13% 11% 9% 6% 5% 5% 3% 3% 9/30/18 12/31/18 3/31/19 6/30/19 9/30/19 12/31/19 3/31/20 6/30/20 9/30/20 Total Cash and Availability on Credit F
Slide 11: Management Outlook
MANAGEMENT OUTLOOK
Slide 12: COVID-19 Business Response
COVID-19 BUSINESS RESPONSE Ensuring business continuity, while protecting the health and safety of our employees Employee Health & Safety Liquidity Profile Business Continuity > Significant employee scheduling > Our business is considered critical > The Company remains in full and essential infrastr
Slide 13: Customer Diversification Initiative
CUSTOMER DIVERSIFICATION INITIATIVE Balanced revenue mix supports long-term growth and profitability Non-Wind Revenue By Sector (as % of total revenue) 10% 9% 8% 8% 7% 7% 5% 5% 4% 4% 3% 2% 3% 3% 2% 1% 0% 0% Construction Industrial Other Oil & Gas Power Generation Mining 2016 2019 TTM 3Q20 Wind vs. N
Slide 14: Demand Outlook by End-Market
DEMAND OUTLOOK BY END-MARKET Customer guidance drives our outlook Wind Sector Industrial/Other Sector Power Generation Sector > TTM Revenue > TTM Revenue > TTM Revenue > 70% > 8% > 8% > Sector Outlook > Sector Outlook > Sector Outlook > Positive > Positive/Neutral > Positive > Customer Feedback > Cu
Slide 15: U.S. Wind Sector Forecast
U.S. WIND SECTOR FORECAST Onshore ramp occurring; offshore ramp accelerating in the 2023-2025 timeframe U.S. Wind Power Onshore and Offshore Capacity Installations • There are currently more than 60,000 wind turbines (Annual On-Shore GW Installed)(1) operating across 41 states and two U.S. territori
Slide 16: Wind Is a More Competitive Power Generation Source
WIND IS A MORE COMPETITIVE POWER GENERATION SOURCE Since 2009, the levelized cost of wind energy has declined 70% Levelized Cost of Wind Energy Levelized Cost of Energy Across Energy Sources ($/MWh)(1) ($/MWh)(1) $160 $180 $169 $160 $140 $148 $140 $120 $120 $100 $100 $92 $95 $95 $101 $99 $80 $81 $80
Slide 17: Key Initiatives by Segment
KEY INITIATIVES BY SEGMENT Positioned for profitable growth across diverse customer and product end markets > Sell ’21 tower capacity and expand tower and repowering customer base > Add production capabilities and complete key systems upgrades to maximize profitability Heavy Fabrications Segment > C
Slide 18: Investment Thesis
INVESTMENT THESIS Diversified precision manufacturer serving clean tech and industrial applications 1. Leading precision manufacturer with a diversified industry focus > Heritage is in the renewable sector (e.g., Wind); future includes mining, oil/gas, power gen, material handling, construction and
Slide 19: Appendix
APPENDIX
Slide 20: Exhibit A: Orders, Revenues and Operating Income by Segment
EXHIBIT A Orders, Revenues and Operating Income (Loss) By Segment 20 | Investor Presentation
Slide 21: Exhibit B: Consolidated Adjusted EBITDA Reconciliation
EXHIBIT B GAAP to Non-GAAP Consolidated Adjusted EBITDA Reconciliation 21 | Investor Presentation
Slide 22: Exhibit C: Adjusted EBITDA Reconciliation by Segment
EXHIBIT C GAAP to Non-GAAP Adjusted EBITDA Reconciliation By Segment 22 | Investor Presentation
Slide 23: Exhibit C (Continued)
EXHIBIT C (Continued) GAAP to Non-GAAP Adjusted EBITDA Reconciliation By Segment 23 | Investor Presentation
Slide 24: IR Contact
IR CONTACT Please contact our investor relations team at Investor@BWEN.com