Techprecision Corporation · NASDAQ:TPCS
Techprecision — Investor Presentation (February 2009)
31 slides from Techprecision's investor presentation, Feb 23, 2009
Slide 1: TechPrecision Corporation
TECHPRECISION CorPo! Jim Reindt, Chairman and CEO TECHPRECISION CORPORATION all a7 htipywww techprecision.com
Slide 2: Safe Harbor Statement
Safe Harbor Statement Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995: Any statements set forth in this presentation that are not historical facts are forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially
Slide 3: Equity Snapshot
Equity Snapshot Price (2/12/2009) $0.55 Market Capitalization (common & preferred) $12.2M Revenues (ttm) $43.1M Net Income (ttm): $5.9M Wed. Avg. Basic Shares as of 12/31/2008 13.9Mt Basic Earnings Per Share (ttm) $0.44 Diluted Earnings Per Share (ttm) $0.22 "he of 12408 TechPrecision had 82 millon
Slide 4: TechPrecision's wholly-owned subsidiary, Ranor, Inc.
+ TechPrecision’s wholly-owned subsidiary, Ranor, Inc. established in 1956 + Specializes in large precision fabricated and machined assemblies — serving alternative energy, medical, nuclear, defense, aerospace, and other commercial industries + “One-Stop Shop” for large complex components — engineer
Slide 5: Highlights
lights Revenue ($ Million) + Fifty plus year history of manufacturing — 338 components with high tolerances to rigorous standards a 225 194 + Refocused on winning long-term projects a with more predictable costs + Targeting high-growth alternative energy, mane Cm meme meee pitta Bite medical and nuc
Slide 6: State-of-the-art Facilities
State-of-the-art Facilities * Modern 125,000 sq. ft. manufacturing facility — Integrated fabrication and machining capabilities - 100-ton lift capacity - State-of-the-art welding equipment — Full range of large horizontal and vertical machining capabilities * Currently evaluating plans for expansion
Slide 7: Fifty plus year history of producing mission critical components
+ Fifty plus year history of producing mission critical components: ~ Hold numerous American Society of Mechanical Engineers (ASME) certifications - Approved to design and manufacture commercial nuclear equipment + Examples: ~ Commercial -- Upper Strut and T-Foil Assemblies for Motion-Control System
Slide 8: Manufacturing Cycle
Manufacturing Cycle CUSTOMER (Order Placement Receipt of Goods Machining Perform machine operstionsto produce! Engineering Detailed manufacturing procedures Reviewof customer drawings and presision machined components Quality Assurance mere ASME & Military Develop & suggest design Horizantal CNE mac
Slide 9: Serving the Alternative Energy Industry
ving the Alternative Energy Industry + Increased focus on alternative energy projects due to sustained industry demand + Solar industry — manufacture a proprietary product for a customer in the solar industry — PV industry revenues estimated at $17bn in 2007, projected to grow to $39bn in 2012, or 1
Slide 10: Nuclear renaissance
Nuclear renaissance driven by — 40% increase in electricity demand by 2030 = concern over fossil fuel emissions + Nuclear power is only large-scale energy source that does not produce carbon emissions + According to Nuclear Energy Institute, as of August 2 ~ 30 countries operating 439 nuclear reacto
Slide 11: ASME certifications including N stamp
+ Hold numerous ASME certifications, including “N” stamp — Allows for design, manufacture and testing of commercial nuclear equipment + TechPrecision produces host of different parts for commercial nuclear applications - Nuclear reactor Casks — combination steel and sealed poured concrete weighing 3
Slide 12: Breakthrough Medical Technology
Breakthrough Medical Technology + TechPrecision providing high precision components to medical industry customer — At core of emerging technology — Providing key components for alternate proton beam therapy machines to treat cancer + Machine technology currently employed in industry today — Fewer si
Slide 13: Revenue Breakdown
Revenue Breakdown. for O/E December 31, 2008 Medical, 23.07% Defense, 6.4%- Nuclear, 0.53% Aerospace, 1.08% Commercialiother, Alternative Energy, 17.72% 51.21% 13 hp techprecsion.com rr
Slide 14: Growing Backlog Trend
Growing Backlog Trend aailiilli Million § OO SEO FE, Soe http yhwww techprecision.com
Slide 15: Growth Strategy
Growth Strategy + Leverage core competency in large-scale, high precision machining and metal fabrication + Target higher-volume, long-term programs and complete product integration + Capitalize on alternative energy industry opportunity + Focus on other high-growth industries including medical, nuc
Slide 16: Blue Chip Customers
Blue Chip Customers Solar Defense = GT Solar = General Dynamics Electric Boat * BAE Systems = L3 Communications + Northrop Grumman Nuclear * Transnuclear Aerospace = Lockheed Martin = Pratt and Whitney = Areva = Westinghouse = Curtis Wright 16 http:zwww techprecision.com i
Slide 17: Experienced Management Team
Experienced Management Teaiii + James G. Reindl — Chairman and CEO — BS in mechanical aerospace engineering — Previous management experience in the aerospace, military and precision metal manufacturing sectors — CEO of TechPrecision since its founding in 2006 + Mary Desmond - CFO — MBA from Fitchbur
Slide 18: Financial Highlights
Financial Highlights (a a . TECHPRECISION CORPORATION E aja cchprecision.com
Slide 19: Income Statement
Income Statement Consolidated Income Statement (Sin Millions) Revenues Ba 25 348 19.41 Gross Profit, 10 58 a3 35 Gross Margin 32.6% 25.5% 282% 18.6% Operating Expenses Ww 15 19 ot Operating Income 93 43 64 14 Operating Margin 215% 19.0% 20.4% 7.6% Net income 64 27 35 03 Net Margin 15.0% 11.8% 11% 1.
Slide 20: Strong Revenue Growth
Strong Revenue Growth 38 18 Ex m2 190 I Fy2005 Fy2006 Fy2007 FY2008 9 Mos. FY2008 9 Mos. FY2009 http yhwww techprecision.com
Slide 21: Quarterly Revenue Trends
Quarterly Revenue Trends Million § 96 93 65 64 55 56 illl il In Q3 FY09 51% of revenue came from the alternative energy industry http yhwww techprecision.com 21
Slide 22: Expanding Gross Margins
v0 Expanding Gross Margins i Gross Profit 4" Grose Margin 100 eo oo 58 an 35 2.6 20 1.6 Fy2005 Fy2008 «F207 =—-FY2008. «9 Mos, aMos, Fy2008 FY2009 http yhwww techprecision.com 25% 20% 25% 20% 18% 10% 5% ow 22
Slide 23: EBITDA
v0 100 eo eo an 20 EBITDA http yhwww techprecision.com 5% meson 45 gin oy baa, 2% a 46 15% 10% 23 ow 0 | | ox Frems F200» FYQOOT = FY2O02 © Mee, FYZ008 @Mos. FY2000 23
Slide 24: Solid Profitability
Solid Profitability eo 50 40 20 20 amen & 10 mm Net Income (Loss) —2-Net Profit Margin, 35 54 27 http yhwww techprecision.com Fy2007 Fy 2008 9 Mos. FY2008 Mos. FY200' 20% 15% 10% om on 10% 24
Slide 25: Earnings per share
$0.19 ($0.14) http yhwww techprecision.com $0.12 $0.10 $0.03 i ze FY2007 FY2008 9 Mos. 9 Mos. FY2008 FY2009 ($0.05) 25
Slide 26: Balance Sheet Highlights
Balance Sheet Hi pees FY2008 FY2007 Cash 59 29 14 Current Assets 19.4 12.9 59 Total Assets 23.0 16.1 86 Current Liabilities 88 65 25 Total Liabilities 13.7 11.9 85 ee es 92 42 04 26 http techprecision.com Ce]
Slide 27: Capitalization Structure as of 12/31/08
Capitalization Structure as of 12/31/08 Share Type Number of Shares Common Shares Outstanding: 13,907,513 ‘Common Stock issuable upon conversion of series A preferred stock a $0.218 8,229,488 Shares issuable upon exercise of warrants held by Barron Partners at $0.436: 3,710,000 Shares issuable upon
Slide 28: Investment Summary
Investment Summary Fifty plus year history of manufacturing components with high tolerances to rigorous standards + Refocused on winning long-term projects with more predictable costs + Targeting high growth alternative energy, medical and nuclear industries + Complete integration services, numerous
Slide 29: Contact Information
Contact Information TechPrecision Corp. James Reindl, CEO. Bella Drive Westminster, MA 01473 Tel: (978) 874-0591 reindlii@ranor.com CCG Investor Relations Crocker Coulson, President 1325 Avenue of the Americas, Suite 2800 New York, NY 10019 Tel: (646) 213-1915 crocker.coulson@ccgir.com www.techpreci
Slide 30: TechPrecision Corporation
TECHPRECISION CORPORATION Pe cchprecision.com
Slide 31: State-of-the-art Facilities
State-of-the-art Facilities + Modern 126,000 sq. ft. manufacturing facility Integrated fabrication and machining capabilities 100-ton lift capacity State-of-the-art welding equipment Full range of large horizontal and vertical machining capabilities + Currently evaluating plans for expansion both on
TechPrecision — Investor Presentation (February 2009) on 6ix