Power Solutions International, Inc. · NASDAQ:PSIX
Power Solutions International — Investor Presentation (November 2021)
39 slides from Power Solutions International's investor presentation, Nov 15, 2021
Slide 1: Corporate Overview
CORPORATE OVERVIEW November 15, 2021 Exhibit 99.1
Slide 2: Safe Harbor & Other Cautionary Notes
SAFE HARBOR & OTHER CAUTIONARY NOTES This presentation has been prepared by Power Solutions International, Inc. (PSI) for investors/other parties, solely for informational purposes. The information contained in this presentation does not purport to be all-inclusive or to contain all of the informati
Slide 3: About PSI
ABOUT PSI Jo
Slide 4: PSI's Mission
“ PSI’s MISSION: Solving Power Challenges of Global Equipment Manufacturers Through High-Quality, Innovative Products
Slide 5: Powering Leading Equipment Manufacturers Globally
POWERING LEADING EQUIPMENT MANUFACTURERS GLOBALLY
Slide 6: Overview
OVERVIEW Approximately 800 Employees Leading Worldwide Manufacturer of Engines Produced 1,000,000 engines historically Wide range of engines: 27 different displacements ranging from 1L to 53L Approximately 1,000,000 sq. ft. manufacturing footprint, with headquarters in Wood Dale, IL Significant clea
Slide 7: Focused on Growth in the Energy End Market
Focused on Growth in the Energy End Market Sales growth opportunity of 2X + by 2026 driven by product expansion, oil recovery, market share gains Large engines carry average selling prices (ASP’s) above $100k Electric grid resiliency; Infrastructure spending anticipated to be a driver Margin Expansi
Slide 8: Advanced Facilities
PSI Corp. HQ & Engine Dress Facility 201 Mittel Dr. Wood Dale, IL 261,000 sq. ft. Dedicated R&D & Engineering Facility Automotive Grade High-Volume Production Lines State-of-the-Art Machining Center In-house EPA & CARB certified test cell operation Approximately 1,000,000 sq. ft. PSI Machining & Eng
Slide 9: Manufacturing & Engine Capabilities
APPLICATION ENGINEERING & INTEGRATION TESTING & VALIDATION CALIBRATION & EMISSIONS ENGINE DESIGN & ENGINEERING MATERIAL OPTIMIZATION & SIMULATION SPECIALIZED MACHINING ADVANCED MANUFACTURING POWERTRAIN ASSEMBLY & KITTING COMPLETE ENGINE SIMULATION COOLING PACKAGE DEVELOPMENT TURBO & FUEL SYSTEMS ELE
Slide 10: Expansive Product Line
TRANSPORTATION EXPANSIVE PRODUCT LINE Powering Global Transportation, Energy & Industrial OEMs Engine Displacements 6.0L, 8.8L Fuel Types Propane, Natural Gas, Gasoline Integration Transmissions & Tanks Horsepower Range 293 hp – 345 hp Torque Range 317 lb-ft – 565 lb-ft INDUSTRIAL Engine Displacemen
Slide 11: PSI/Weichai Relationship
Weichai Power Background Based in China; Global footprint Leading automotive and equipment manufacturer specializing in the production of powertrains, automobiles, intelligent logistics, automotive parts and components Weichai Power Co., Ltd. is publicly listed on the Hong Kong and Shenzhen Stock Ex
Slide 12: PSI & Weichai History & Milestones
PSI & WEICHAI HISTORY & MILESTONES Formation of Power Great Lakes, Inc. Power Solutions Inc. (PSI) established as global distributor of GM industrial engines – Gas Product scope Acquisition of 3PI Acquisition of Buck’s Engines, PowerTrain Integration and Bi-Phase PSI goes public. PSIX launched as an
Slide 13: Expanded Global Business Footprint
Major Facility Snapshot: Shanghai – Engine Machining and R&D Weifang – High-Speed Engine & Vehicle Machining and R&D Chongqing – Medium/ High-Speed Engine & MVP R&D Xi’an – HD Truck & HD Transmission Box R&D Wiesbaden, Germany – Forklift & Hydraulics R&D Forli, Italy – Luxury Yachts R&D Marseilles,
Slide 14: Collective product portfolio across all applications
Our collective product portfolio offers the most competitive and complete power solution range available across all applications Transportation Weichai has a large market share in Asia, for which it develops and manufactures thousands of commercial vehicle engines annually Access to electric propuls
Slide 15: Weichai New Energy Product Access
Construction Truck、Refrigerator truck、48V LDT Bus, Cargo truck, Forklift Powertrain Components Motor Motor Controller VCU System EV HEV Traction Battery System DC/DC Drive System PRODUCT SYNERGIES WEICHAI NEW ENERGY PRODUCT ACCESS
Slide 16: New Energy Solutions Emerging Opportunity
Source: Wood Mackenzie. “Global Energy Storage Capacity to Grow at CAGR of 31% to 2030.” Exploring opportunities within energy storage, fuel cell and electrification with Weichai, who has invested in technology New energy solutions is an emerging opportunity for PSI Currently work with customers who
Slide 17: Energy: Powering the Future
ENERGY Powering the Future
Slide 18: Energy Markets & Customers
Customers / End Users Markets Growth opportunities across various markets driven by: aged electric grid, power outage activity, growth of intermittent sources of energy, utility curtailment incentives, increased regulations in healthcare facilities, increased growth rate of natural gas installations
Slide 19: Natural Gas Energy Market
NATURAL GAS ENERGY MARKET Sources: Diesel Progress September 2021; Forbes – December 6, 2019; Research Nester; GE Reports (12/5/18); EIA.gov (4/5/2019) Natural Gas Energy Market Dynamics Cleaner than diesel; Not subject to the transportation limitations that diesel has during times of extreme weathe
Slide 20: Energy Growth Opportunity
ENERGY GROWTH OPPORTUNITY Weichai Gas & Diesel Engine Platforms Open Power Generation Market Significantly ENERGY END MARKET SALES Targeting 2X + Growth in 5 Years Expansion of engine product line; Market opportunity increases substantially Grow engine market share across various verticals, includin
Slide 21: Transportation: Powering the Road Ahead
TRANSPORTATION Powering the Road Ahead
Slide 22: PSI Transportation Markets & Customers
PSI TRANSPORTATION MARKETS & CUSTOMERS
Slide 23: School Bus Market
SCHOOL BUS MARKET History of Gasoline & Propane Growth, Industry-Leading Customers, Significant Engine Market Opportunity Sources: School Bus Fleet (Fact Book 2021); Blue Bird investor presentation January 2019; School Bus Fleet (7/25/16), Icbus.com; Blue Bird press release on 12/16/20; Internal Est
Slide 24: Industrial: Powering Productivity
INDUSTRIAL Powering Productivity
Slide 25: Industrial Markets & Customers
OIL & GAS COMPRESSION/ OIL LIFTS FORKLIFT AERIAL WORK PLATFORM ARBOR CARE UTILITY VEHICLE SWEEPERS /SCRUBBER ICE RESURFACING OTHER INDUSTRIAL Expanded OEM pipeline across various markets (UTV, commercial mowers, chippers, telehandlers, commercial cleaning) INDUSTRIAL MARKETS & CUSTOMERS
Slide 26: Industrial Market Opportunity
Industrial market presents significant unit volume opportunities for growth Transition from Diesel to Gas engines New customers, dealers and distributors Ability to seek battery electric opportunities as the market progresses Source: 2019 Power System Research Data, PSI Internal Market Analysis INDU
Slide 27: Financial Update
FINANCIAL UPDATE CORPORATE UPDATE
Slide 28: Capital Structure Overview
CAPITAL STRUCTURE OVERVIEW *Based on 22,925,807 shares outstanding as of 11/1/21 and information contained in SEC filings Debt & Cash Highlights Total debt of $156 Million (M) at 9/30/21; Cash of approx. $5M (Includes net impact of customer prepayments of $3M) $130M uncommitted senior secured revolv
Slide 29: First Nine Months 2021 Financial Results
1st 9 mos. 2021 FINANCIAL RESULTS GROSS MARGIN 1st 9 mos. 2021 sales reflects increases within transportation (+$34.3M) and industrial (+$14.4M), partly offset by lower energy end market sales (-$31.9M) 1st 9 mos. 2021 gross profit declined by $8.1M; gross margin down 3.1 percentage points Gross mar
Slide 30: Outlook
Outlook During the fourth quarter of 2021, the Company believes that its sales will exhibit healthy year-over-year growth with contributions across all end markets An improvement in gross profit as a percentage of sales in the fourth quarter versus the third quarter is also projected With the conclu
Slide 31: PSI is current with its SEC filings
PSI is current with its SEC filings Numerous changes and improvements have been made across the organization since 2017 New management team and key hires: CEO; CFO; Chief Technical Officer; Chief Quality Officer; VP, Internal Audit 6 of 7 new board members and a new audit committee (Weichai has 4 de
Slide 32: Appendix
APPENDIX
Slide 33: Non-GAAP Reconciliation
NON-GAAP RECONCILIATION Financial Results for Three and Nine Months Ended September 30, 2021 and 2020 (UNAUDITED) * See Non-GAAP Reconciliation on following slides
Slide 34: Non-GAAP Financial Measures
NON-GAAP FINANCIAL MEASURES In addition to the results provided in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”), this presentation also includes non-GAAP (adjusted) financial measures. Non-GAAP financial measures provide insight into selected financial
Slide 35: Non-GAAP Reconciliation: Net Loss to Adjusted Net Earnings
NON-GAAP RECONCILIATION The following table presents a reconciliation from Net loss to Adjusted net (loss) earnings for the three and nine months ended September 30, 2021 and 2020 (UNAUDITED)
Slide 36: Non-GAAP Reconciliation: Adjusted Earnings Per Share
NON-GAAP RECONCILIATION The following table presents a reconciliation from Loss per common share – diluted to Adjusted (loss) earnings per share for the three and nine months ended September 30, 2021 and 2020 (UNAUDITED)
Slide 37: Non-GAAP Reconciliation: EBITDA and Adjusted EBITDA
NON-GAAP RECONCILIATION The following table presents a reconciliation from Net loss to EBITDA and Adjusted EBITDA for the three and nine months ended September 30, 2021 and 2020 (UNAUDITED)
Slide 38: Non-GAAP Reconciliation Footnotes
NON-GAAP RECONCILIATION Amounts reflect non-cash stock-based compensation expense. Amount represents the loss on the extinguishment of the Company’s prior credit facility with Wells Fargo Bank, N.A. and the unsecured senior notes in April 2020. Amounts represent severance and other post-employment c
Slide 39: Thank You
THANK YOU. 201 Mittel Drive, Wood Dale, IL 60191 630.350.9400 • www.psiengines.com
Power Solutions International — Investor Presentation (November 2021) on 6ix