Slide 1: Investor Teleconference Q3 2011 Results
Investor Teleconference Q3 2011 Results November 4, 2011 © 2011 Broadwind Energy, Inc, Inc. All Rights Reserved.
Slide 2: Industry Data and Forward-Looking Statements
2 Industry Data and Forward-Looking Statements Broadwind obtained the industry and market data used throughout this presentation from its own research, internal surveys and studies conducted by third parties, independent industry associations or general publications and other publicly available info
Slide 3: Q3 2011 Highlights
Q3 2011 Highlights 3 Revenue growth of 41% over Q3 2010 Robust revenue growth in Towers and Services Services revenue up 82% from Q3 2010 Gearing revenue mix: industrial revenue 63%; wind revenue 37% 22% increase vs. Q2 Operating Performance Transition to a new tower design caused $650K of additiona
Slide 4: Orders
Orders 4 Services Strong order activity in blades and tech services Starting to see results from new sales staff Towers Orders are typically lumpy; Q4 & Q1 strongest New tower order is not reflected until Q4 Quoting/customer engagement highest since 2008 Gearing ~$3.0M of customary orders delayed in
Slide 5: Order and Backlog History
Order and Backlog History 5 *Net of Cancellation and Discontinued Operations Backlog History $M Q3 YTD 2011 $26M $93M 2010 $27M $51M Orders*
Slide 6: Broadwind's Business Mix
Broadwind’s Business Mix 6 Continued strong growth in industrial gearing, which is offsetting the decline in wind gearing Industrial margins improving over wind Retooling business to deal with greater variety Increase in gearing sales to Broadwind Services associated with remanufactured boxes Signif
Slide 7: Market Dynamics
Market Dynamics Source : MAKE Consulting Source : IHS Global Wind Market MWs U.S. Gearing Market $M Wind market recovering from credit crisis Risk of PTC expiration pulling activity into 2012 Larger rotors, cost reductions and higher towers are driving down the cost of electricity closer to grid par
Slide 8: Restructuring
Restructuring 8 1.5M Sq. Ft. across all facilities Reduce ~400K Sq. Ft. Sell Brandon, SD tower facility Consolidate Chicago gearing facilities Close German office Consolidate Corporate office with Gearing Consolidation will save ~$6M per year Two facilities in Chicago totaling 500K Sq. Ft. Consolida
Slide 9: Consolidated Results
Consolidated Results 9 9 month sales up 46% YTD $41M increase in sales drives $12M improvement in adj. EBITDA Q3 operating leverage (increase in adj. EBITDA as % of increase in revenue) low due to sales mix, production problems and increased legal expense 2011 2010 2011 2010 Revenue-$M 47.9 34.0 130
Slide 10: Towers Third Quarter 2011
Towers Third Quarter 2011 MW production flat with prior year and down ~40% from first half Revenue increase reflects full steel content on all Q3 production Adj. EBITDA margin lower due to new tower introduction, lower margin mix ($ in Millions) 10 Increase capacity utilization and new tower product
Slide 11: Gearing Third Quarter 2011
Gearing Third Quarter 2011 Operating loss benefitted from a more favorable customer mix—less wind gearing, more energy & mining Production difficulties limited Q3 shipments—shift in customer base complicates manufacturing flow Results flat with prior year despite $0.6M higher legal fees ($ in Millio
Slide 12: Services Third Quarter 2011
Services Third Quarter 2011 Q3 orders of $7.4M, book-to-bill 112% Revenue rebounds—up 83% from 2010 and sharply higher than first half Tech service and blade repair activity strong ($ in Millions) 12 Shift focus from a turbine installation revenue stream to maintenance of installed base Expand O&M c
Slide 13: Operating Working Capital
Operating Working Capital 13 9/30/11 6/30/11 12/31/10 Accounts Receivable, net 23,471 27,240 21,427 Inventories, net 31,283 22,443 17,739 Accounts Payable (23,193) (18,383) (22,342) Customer Deposits (15,705) (21,038) (8,881) Operating Working Capital 15,856 10,262 7,943 % Quarter Revenue Annualized
Slide 14: Liquidity
Liquidity 14 9/30/11 6/30/11 12/31/10 Lines of credit, notes payable 1,687 1,463 140 Long-term debt 5,730 9,119 11,108 Liabilities held for sale 5,083 - 4,221 Capital leases 2,094 2,344 2,768 Debt and capital lease 14,594 12,926 18,237 Cash and related assets 14,421 10,477 15,501 Net debt 173 2,449
Slide 15: Debt vs. TTM EBITDA
Debt vs. TTM EBITDA (millions) 15
Slide 16: Broadwind Energy is committed to helping customers maximize performance of their energy and infrastructure
16 Broadwind Energy is committed to helping customers maximize performance of their energy and infrastructure investments — quicker, easier and smarter.