Slide 1: Fourth Quarter 2022 Conference Call Presentation
Fourth Quarter 2022 Conference Call Presentation March 9, 2023
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: 4Q22 Performance Summary
4Q22 PERFORMANCE SUMMARY
Slide 4: Performance Update
PERFORMANCE UPDATE Fourth Quarter 2022 4Q22 Performance Strategic Progress Points Three months ended Dec. 31 2022 As of March 2023 • Commercial execution. Broad-based y/y revenue and New business development. $175 million in new wind tower Adjusted EBITDA growth across each reporting segment orders
Slide 5: Consolidated Financial Data
CONSOLIDATED FINANCIAL DATA Fourth Quarter 2022 Demand recovery Total Revenue Gross Profit ($MM) ($MM) underway within Wind market, while other, diverse end-markets remain stable entering 2023 +54% y/y revenue growth, supported by increased demand across all segments Gross profit margin increased +2
Slide 6: Heavy Fabrications Segment
HEAVY FABRICATIONS SEGMENT Fourth Quarter 2022 Segment Revenue Segment EBITDA Organic share gains ($MM) ($MM) position us to drive above-market growth into a secular domestic onshore wind recovery +61% y/y segment revenue growth, supported by increasingly stable backlog of project work Segment EBITD
Slide 7: Gearing Segment
GEARING SEGMENT Fourth Quarter 2022 Focused on driving Segment Revenue Segment EBITDA ($MM) ($MM) segment EBITDA margin to within a low-to-mid teens % range through improved utilization, higher-margin project work +41% y/y segment revenue growth, supported by demand growth within energy, industrial
Slide 8: Industrial Solutions Segment
INDUSTRIAL SOLUTIONS SEGMENT Fourth Quarter 2022 Segment Revenue Segment EBITDA Seeing renewed strength in ($MM) ($MM) the natural gas turbine market, while benefiting from improved price realization and lower logistics expenses +53% y/y segment revenue growth, supported by improved demand in the gl
Slide 9: Balance Sheet Update
BALANCE SHEET UPDATE As of December 31, 2022 We had more than $40 Cash and LOC Availability at Quarter-End Net Debt Outstanding(1) ($MM) ($MM) million of cash and liquidity as of 12/31/22, given recent actions to further optimize working capital management In 2023, our capital allocation priorities
Slide 10: Full-Year 2023 Financial Guidance
FULL-YEAR 2023 FINANCIAL GUIDANCE Risk-adjusted guidance implies significant y/y growth in revenue, EBITDA and margin realization Total Revenue Total Adjusted EBITDA Risk-adjusted guidance ($MM) ($MM) reflects ratable demand recovery across both wind and non-wind markets in 2023 Assumes approximatel
Slide 11: Business Update
BUSINESS UPDATE
Slide 12: Broadwind Vision 2025
BROADWIND VISION 2025 Leveraging our precision manufacturing expertise to support energy transition technologies Strategic Growth Priorities We seek to be a tier-1 High-growth energy transition market focus producer and supplier of customer-driven Drive high-performance culture focused on long-term
Slide 13: Transformational New Tower Order
TRANSFORMATIONAL NEW TOWER ORDER Announced $175 million in wind tower purchase orders to be fulfilled in 2023 and 2024 $175 tower order announced in January 2023 supports at least 50% After a two-year hiatus, utilization across tower manufacturing system during the full-years 2023 domestic onshore w
Slide 14: Passage of IRA Supports Multi-Year Investment in Wind
PASSAGE OF IRA SUPPORTS MULTI-YEAR INVESTMENT IN WIND Inflation Reduction Act of 2022 supports multi-decade decarbonization of domestic energy grid United States Onshore Wind Development Forecast(1) IRA provides (Total GW Installed Annually, Excludes Repowering (2023-2030) transformative, long-term
Slide 15: Inflation Reduction Act Impact Benefit
INFLATION REDUCTION ACT IMPACT BENEFIT At full utilization, IRA could provide up to ~$30 million in incremental annual gross profit beginning in 2023 The IRA serves to Theoretical IRA Benefit to Broadwind materially enhance tower Quantifying potential impact of the 45x advanced manufacturing credit
Slide 16: Appendix
APPENDIX
Slide 17: Corporate Overview
CORPORATE OVERVIEW Leading U.S. based precision manufacturer supporting the clean energy transition Why We Win What We Do Unique Value Proposition Precision manufacturing within wind sector and other diverse end-markets • We provide large complex and precision fabrications to customers in a • Proven
Slide 18: Independent Wind Energy Manufacturers
INDEPENDENT WIND ENERGY MANUFACTURERS Broadwind is a Key Link in the Value Chain Wind Blade Gearing / Nacelle Power Cables / System Tower 18 | Investor Presentation
Slide 19: Exhibit A
EXHIBIT A Orders, Revenues and Operating Income (Loss) Consolidated and by Segment 19 | Investor Presentation
Slide 20: Exhibit B
EXHIBIT B GAAP to Non-GAAP Consolidated Adjusted EBITDA Reconciliation 20 | Investor Presentation
Slide 21: Exhibit B
EXHIBIT B GAAP to Non-GAAP Consolidated Adjusted EBITDA Reconciliation 21 | Investor Presentation
Slide 22: Exhibit C: Consolidated Statement of Cash Flows
EXHIBIT C Consolidated Statement of Cash Flows 22 | Investor Presentation
Slide 23: Exhibit D: Consolidated Balance Sheet
EXHIBIT D Consolidated Balance Sheet 23 | Investor Presentation
Slide 24: IR Contact
IR CONTACT Please contact our investor relations team at Investor@BWEN.com