Broadwind, Inc. · NASDAQ:BWEN
Broadwind — Broadwind Energy — Q4 2017 Earnings Presentation
16 slides from Broadwind's earnings presentation, Feb 27, 2018
Slide 1: Q4 2017 Earnings Call
Q4 2017 Earnings Call February 27, 2018 oN
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
Slide 3: 2017 Highlights
2017 Highlights = Revenue of $147 million due to Tower weakness, offset by growth in other segments = Acquired Red Wolf, LLC — diversified into natural gas turbine market — new and aftermarket = Completed Abilene facility expansion providing important operating flexibility and increased production c
Slide 4: Orders and Backlog
Orders and Backlog Orders — $M Backlog — $M Towers & $294 $25 $2608 349 34 Heavy 2 Fabrications = Gearing 29 74 142 369 1.42 Process na 24 na 15.8 1 Systems Total 323 12.3 2750 «87.6 60 = Tower orders weak in 2017 — tower order * 12/31/17 backlog $138M improvement and emerging demand for = Current m
Slide 5: US Wind Market Update
US Wind Market Update % Development Pipeline - GW ,, Evolving Forecast — GW Installations 30 7 25 1 20 10 15 9 10 8 5 1 7 0 6 Qi16 216 346 Q416 Q117 Q217 Q317 a417 2015a 2016a«-2017ela--201Be ©2019 -—-2020e ‘Under construction at QE Adv. Development —e4 2016 FC —eQ4 2017 FC = Wind development pipeli
Slide 6: Demand for US Gearing Remains Strong
Demand for US Gearing Remains Strong US Gear Production* US Gear % of 2014- 2017- _— SS Demandby 2018 2016 2019 H we 7 ieee Market CAGR CAGR / Turbines/Power 10% -11.2% 6.7% Fa / / Oil & Gas 5% -24.5% 23.0% 7) 1) Mining & Constr. 7% -13.7% 11.0% ii a | Other Industrial 78% 68% 6.8% 2018e 2020 US Tot
Slide 7: Global Gas Turbine Market
Global Gas Turbine Market Global Gas Turbine Sales (Utility and IPP Class > 10MW) # of Units > 10MW. ity ( Capacit ° 2012 2013 2014 2015 2016 2017 mmm of Units > 10MW ——GW Source: McCoy Power Reports Low power pricing environment has strained both new unit and aftermarket activity New unit deliverie
Slide 8: BWEN Consolidated Financial Results
BWEN Consolidated Financial Results Q416 Q417 FY 16 BYag Total Sales $48.2 $17.8 $180.8 $146.8 Gross Profit 47 3.1 18.1 8.2 Gross Profit % 9.8% 175% 10.0% 5.6% Operating Expense 44 3.6 16.2 15.6 Operating Income/(Loss) 06 6.7 1.9 TA % of sales 12% -37.6% 1.1% 5.1% Adj. EBITDA 25 4.0 9.6 2.8 % of sal
Slide 9: Towers and Heavy Fabrications
Towers and Heavy Fabrications a4 Q4 Results 2016 = 2017, 2016 = 2017 Orders ($M) $29.4 $25 $2608 $34.9 "Tower orders remain weak — emerging demand for heavy fabrications for mining Towers Sold (#) 119 9 458 272 417 td to9 t Revenue ($M) 423 424602 4038 lower count drops to 9 as customers work down i
Slide 10: Gearing
Gearing FY 2 2016 Orders ($M) $29 $74 $142 $36.9 Revenue ($M) 59 85-206 = 26.0 Operating (Loss), 2 A 3226 Income ($M) EBITDA‘ (SM) 5 6 6 - * Reconciliation to non-GAAP measure included in Appendix Gearing Revenue by Market 2016 MOIEGa mMining Wind sw industid Sted Q4 Results "Orders continue to be s
Slide 11: Process Systems
Process Systems Q4 FY FY 20162 2016 = 2017 Q4 Results = Process Systems includes Abilene-based CNG, Orders ($M) nla $24 n/a $15.8 and Red Wolf as of Feb 1, 2017 Revenue ($M) na 5.1 nla 17.4 * Q4 orders down sequentially Operating a -5 nla -2.3 Profit(Loss) ($M) EBITDA" (SM) nla - nla 5 * Reconciliat
Slide 12: Operating Working Capital (OWC)
Operating Working Capital (OWC) OWC* Management OWC* Historical Trend — cents/$ sales DsO 22 70 Inv. Turns 82 50 ~ DPO 33 44 soo Cash Conv. (days) 0 48 owc sm 08 1.3 $005 s “Operating Working Capital = Trade AIR + ss Inventories — Trade Payables — Customer Deposits oe $0.05) = Tower customer payment
Slide 13: Balance Sheet and Capital Expenditures
Balance Sheet and Capital Expenditures Capital Expenditures (net) (In Millions) 12/31/2016 12/31/2017 % of sales 0.8% 3.4% aa Cash Assets s 29l$ 02 Accounts Receivable 119 13.6 Inventory 21.2 19.3 PPE 54.6 55.7 Other saf 23.7 Total Assets 117.7 124 ‘Accounts Payable 15.9 ns Customer Deposits 18.0 98
Slide 14: 2018 Guidance and Priorities
2018 Guidance and Priorities = Revenue recovers beginning Q1 2018 - Revenue $28 — 30M - EBITDA ~ ($1M) = Beginning with Q2, revenue of $40 million or above, return to positive EBITDA = Visibility expected to improve as tower orders firm
Slide 15: Appendix
Appendix “usine Monts Ende december 3 Comalided “Taree Monin Ended December 3 207 aos aor Bis ‘Netiacome (Len from conseung opens + Gy eS Gi) eres Bape De 194 "38 Income Ts Prowice Been n 16 605) Deeecinion an Aornion 24 176 280 ‘Share bed Comper tion and ter Sock Pavan 325 as 1 ‘Agusad EDA (ior GAM
Slide 16: Broadwind Energy is a precision manufacturer
Broadwind Energy is a precision manufacturer of structures, equipment & components for clean tech and other specialized applications. www.BWEN.com February 27, 2018 © 2018 Broadwind Energy, Inc. All rights reserved _ gBroadwi nd 4 NER