Slide 1: 2018 Annual Meeting
2018 Annual Meeting May 1, 2018
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 350 Q4 Q4 FY FY FY 2016 2017 2016 2017 2017 300 Book: Bill 250 Towers & $29.4 $2.5 $260.8 34.9 .34 Millions 200 Heavy Fabrications 150 Gearing 2.9 7.4 14.2 36.9 1.42 100 Process n/a 2.4 n/a 15.8 .91 50 Systems - Total 32.3 12.3 275.0 87.6 .60 Q1 12 Q1 13 Q
Slide 5: US Wind Market Update
US Wind Market Update Development Pipeline - GW Evolving Forecast – GW Installations 35 14 30 13 12 25 11 20 10 15 9 10 8 7 5 6 0 2015a 2016a 2017e/a 2018e 2019e 2020e Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 Q3 17 Q4 17 Q4 2016 FC Q1 2018 FC Under construction at QE Adv. Development Source: AWEA Q4 2017
Slide 6: Demand for US gearing remains strong
Demand for US gearing remains strong US Gear Production % 2014- 2017- 4,000 9.0% CAGR market 2017 2019 3,500 CAGR CAGR 3,000 Turbines & Power 10% -6% +5% 2,500 Oil & Gas 6% -13% +22% $M 2,000 1,500 Mining & Const 7% -6% +7% 1,000 500 Other Industrial 38% +1.5% +1% 0 2015a 2016a 2017a 2018e 2019e 202
Slide 7: Global Gas Turbine Market
Global Gas Turbine Market Global Gas Turbine Sales (Utility and IPP Class > 10MW) 400 70 350 60 300 50 # of Units > 10MW Capacity (GW) 250 40 200 30 150 20 100 50 10 0 0 2012 2013 2014 2015 2016 2017 # of Units > 10MW GW Source: McCoy Power Reports § Low power pricing environment has strained both n
Slide 8: BWEN Consolidated Financial Results
BWEN Consolidated Financial Results Q4 16 Q4 17 FY 16 FY 17 Total Sales $48.2 $17.8 $180.8 $146.8 Gross Profit 4.7 -3.1 18.1 8.2 Gross Profit % 9.8% -17.5% 10.0% 5.6% Operating Expense 4.1 3.6 16.2 15.6 Operating Income/(Loss) 0.6 -6.7 1.9 -7.4 % of sales 1.2% -37.6% 1.1% -5.1% Adj. EBITDA 2.5 -4.0
Slide 9: Towers and Heavy Fabrications
Towers and Heavy Fabrications Q4 Q4 FY FY Q4 Results 2016 2017 2016 2017 Orders ($M) § Tower orders remain weak – emerging $29.4 $2.5 $260.8 $34.9 demand for heavy fabrications for mining Towers Sold (#) 119 9 458 272 § Q4 17 tower count drops to 9 as customers Revenue ($M) 42.3 4.2 160.2 103.4 work
Slide 10: Gearing
Gearing Q4 Q4 FY FY 2016 2017 2016 2017 Q4 Results § Orders continue to be strong primarily from oil Orders ($M) $2.9 $7.4 $14.2 $36.9 & gas customers Revenue ($M) 5.9 8.5 20.6 26.0 § Revenue up 44% in Q4 and 26% FY 2017 § Plant layout reconfigured to boost productivity Operating (Loss)/ -.2 -.1 -3.
Slide 11: Process Systems
Process Systems Q4 Q4 FY FY 2016 2017 2016 2017 Q4 Results § Process Systems includes Abilene-based CNG, Orders ($M) n/a $2.4 n/a $15.8 and Red Wolf as of Feb 1, 2017 Revenue ($M) n/a 5.1 n/a 17.4 § Q4 orders down sequentially Operating n/a -.5 n/a -2.3 Profit/(Loss) ($M) EBITDA* ($M) n/a - n/a -.5
Slide 12: Operating Working Capital (OWC)
Operating Working Capital (OWC) OWC* Management OWC* Historical Trend – cents/$ sales 12/31/16 12/31/17 $0.20 DSO 22 70 $0.15 Inv. Turns 8.2 5.0 DPO 33 44 $0.10 Cash Conv. (days) 0 48 OWC $M -0.8 11.3 $0.05 $- *Operating Working Capital = Trade A/R + Inventories – Trade Payables – Customer Deposits
Slide 13: Balance Sheet and Capital Expenditures
Balance Sheet and Capital Expenditures Capital Expenditures (net) (In Millions) 12/31/2016 12/31/2017 4.5% % of sales 0.8% 3.4% Cash Assets $ 21.9 $ 0.1 $6.6 $6.2 Accounts Receivable 11.9 13.6 Inventory 21.2 19.3 PPE 54.6 55.7 Other 8.1 23.7 Total Assets 117.7 112.4 Accounts Payable 15.9 11.8 Custom
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 2018 Annual Meeting © 2018 Broadwind Energy, Inc. All rights re
Slide 15: Appendix
Appendix Consolidated Three Months Ended December 31, Twelve Months Ended December 31, 2017 2016 2017 2016 Net Income/(Loss) from continuing operations……………………………. $ (6,928) $ 406 $ (3,183) $ 1,335 Interest Expense…………………………………. 214 194 798 625 Income Tax Provision/(Benefit)……………………………… 11 14 (5,045
Slide 16: Broadwind Energy is a precision manufacturer for clean tech
Broadwind Energy is a precision manufacturer of structures, equipment & components for clean tech and other specialized applications. www.BWEN.com 2018 Annual Meeting © 2018 Broadwind Energy, Inc. All rights reserved. 16