American Superconductor Corporation · NASDAQ:AMSC
American Superconductor — Investor Presentation (December 2009)
25 slides from American Superconductor's investor presentation, December 2009
Slide 1: Investor Presentation
Investor Presentation December 2009 1
Slide 2: Safe Harbor
Safe Harbor Any statements in this presentation about future expectations, plans and prospects for the company, including our expectations regarding the future financial performance of the company and other statements containing the words "believes," "anticipates," "plans," "expects," "will" and sim
Slide 3: AMSC's Waves of Growth
AMSC’s Waves of Growth Wind Power Power Revenue Grid HTS Time Each growth wave to last 15+ years 3
Slide 4: AMSC's Waves of Growth: Global wind market
AMSC’s Waves of Growth Wind Power Power Revenue Grid HTS Time Global wind market in 2008 exceeded US$47 billion according to GWEC 4
Slide 5: Our Approach to the Wind Energy Market
Our Approach to the Wind Energy Market • License proprietary wind turbine designs • Develop customized wind turbines • Sell proprietary turbine electrical systems • Design wind turbine manufacturing plants • Provide localization and supply chain support • Develop superconductor wind generators Fully
Slide 6: Customer Case Study: China's Sinovel Wind
Customer Case Study: China’s Sinovel Wind Cumulative Sinovel Orders to AMSC in Megawatts 20,000 15,000 10,000 5,000 0 11/05 2/06 10/06 11/06 3/07 7/07 9/07 3/08 6/08 9/09 • Orders represent $700+ million of core electrical component revenue to AMSC • Primary Sinovel product has been 1.5 MW turbines
Slide 7: AMSC Windtec Customer Timelines
AMSC Windtec Customer Timelines CY 2006 2007 2008 2009 2010 2011 2012 600 kW (Germany) 1.5 MW 1.5 MW 3 MW (China) 5 MW (Czech Republic) 2 MWsg (Korea) 3 MW (China) 1.65 MW (China) 2.5 MW 1.5 MW/1.65 MW (Canada) 2 MWsg (India) 1.65 MW (Taiwan) 2 MW (Turkey) 1.65 MW (China) 2 MW 1.65 MW (Korea) 2 MW 2
Slide 8: China: A Perfect Storm for Growth of Wind-Generated Electricity
China: A Perfect Storm for Growth of Wind-Generated Electricity • China’s central government continuing to invest heavily in wind to meet power needs, reduce pollution and create jobs • According to Global Wind Energy Council, China more than doubled its installed wind power capacity yet again in 20
Slide 9: AMSC China: A Wholly Owned Subsidiary
AMSC China: A Wholly Owned Subsidiary • Local sales and field service offices in Beijing and Shanghai SBW • ISO 9001 certified manufacturing Sinovel facility in Suzhou in production of PM1000 and PM3000W converters CHINAXJ Group • AMSC China employs over 140 Dongfang CSR-ZELRI TECO Chinese citizens;
Slide 10: Further Expansion in Asia-Pacific Region Underway
Further Expansion in Asia-Pacific Region Underway AMSC Korea • Announced in September 2009 • Providing local applications engineering, sales and field service • Wind market customers: Doosan and Hyundai Heavy Industries • Power grid customers: LS Cable, KERI, KEPCO and KEPRI AMSC office AMSC custome
Slide 11: AMSC's Waves of Growth: Power Grid
AMSC’s Waves of Growth Wind Power Power Revenue Grid HTS Time Approximately $55 million in FY08 Power Grid bookings 11
Slide 12: AMSC's Smart Grid Infrastructure Solutions
AMSC’s Smart Grid Infrastructure Solutions • Monitor and actively manage voltage and power flows on grids • Optimize power grid capacity and increase grid reliability D-VAR System • Meet wind farm grid interconnection requirements • More than 70 D-VAR® STATCOM solutions installed worldwide • Gaining
Slide 13: Stringent Wind Power Interconnection Requirements Driving D-VAR Adoption in U.K.
Stringent Wind Power Interconnection Requirements Driving D-VAR Adoption in U.K. D-VAR Installations 13
Slide 14: First Chinese Power Grid Orders
First Chinese Power Grid Orders • December 2008 - D-VAR solution for transmission substation in Inner Mongolia - Solution to support 600 MW of wind power from seven wind farms - Beijing SNTA first Chinese channel partner • August 2009 - D-VAR solution to support Phase I of the Multi-D-VAR Installati
Slide 15: AMSC's Waves of Growth: HTS
AMSC’s Waves of Growth Wind Power Power Revenue Grid HTS Time 15
Slide 16: HTS Wires: 150X Increase in Power
High Temperature Superconductor (HTS) Wires: 150X Increase in Power Power density drives system economics 16
Slide 17: HTS Power Cables for Urban Power Grids
HTS Power Cables for Urban Power Grids Courtesy Southwire Company Advantages Over Copper-Based Systems • Higher capacity - Up to 10x at distribution levels (triax design) - Up to 5x at transmission voltages (co-axial design) • Eliminates choke points in the grid • Meets growing power demands • Incre
Slide 18: Superconductor Electricity Pipelines for Long-Haul Transmission
… and Superconductor Electricity Pipelines are a Compelling Long-Haul Transmission Solution 1,000-Mile, 5 Gigawatt Power Equivalents 18
Slide 19: Performance Comparison of a 1,000-Mile, GW Run
Comparison of a 1,000-Mile, 5 GW Run 200kV DC 765kV AC Transmission Metric Superconductor Overhead Lines Underground Cable Power Loss(1) 3% 9% Performance Storm/Security Risk Low High Precise Control for Efficient Markets Yes No Cost Allocation Method Simple Complicated Requires Rebuild of Underlyin
Slide 20: Financial Overview
Financial Overview 20
Slide 21: FY2009 Guidance
FY2009 Guidance $ Millions (except per share data) FY07 FY08 FY09 Guidance Total Revenues $112.4 $182.8 $260 to $270 Net Income ($25.4) ($16.6) $5.0 to $7.0 EPS ($0.65) ($0.39) $0.11 to $0.16 Non-GAAP EPS* ($0.17) ($0.07) $0.41 to $0.47 Guidance as of 7/30/09 * For a reconciliation to GAAP, see pres
Slide 22: Rapid Revenue Growth
Rapid Revenue Growth $300 $250 $200 Revenue in millions $150 $100 $50 $0 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09E Estimates as of 7/30/09 Expect $260M to $270M in revenue in FY09 22
Slide 23: International Markets and Wind Power Business Driving Revenue Growth
International Markets and Wind Power Business Driving Revenue Growth International Sales Wind Power Sales (%) (%) 100 100 84% 80% 80% 80 80 76% 74% % of total revenue % of total revenue 57% 60 60 47% 40 40 24% 20 20 16% 11% 0% 0% 0 0 FY04 FY05 FY06 FY07 FY08 FY09E FY04 FY05 FY06 FY07 FY08 FY09E Esti
Slide 24: Financial Highlights and Outlook
Financial Highlights and Outlook* • Grew rapidly through the economic downturn: China Key to Near-Term Success • Second consecutive profitable quarter delivered in June 2009 • Revenues expected to grow to $260 to $270 million in FY09 • Making investments during FY09 to further enhance AMSC’s long- t
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