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Sidoti Conference
March 31, 2016
© 2016 Broadwind Energy, Inc. All rights reserved. 1
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Broadwind’s Product Offerings
© 2016 Broadwind Energy, Inc. All rights reserved. 2
Industrial Manufacturer with expertise in heavy weldments, precision gearing
and other energy and infrastructure applications
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Tower Production
© 2016 Broadwind Energy, Inc. All rights reserved. 3
Design capacity ~500 towers per year; Investing $7M to
reduce bottlenecks and improve capacity
• Leading wind tower
manufacturer in U.S.
•Have produced ~3000 >1MW
towers for all major OEM’s in
U.S.
•Manitowoc, WI plant capacity
~350 towers
•Abilene, TX plant capacity
~150 towers
• Superior safety record
2013 2014 2015
Revenue 159.5$ 184.9$ 170.9$
Op. Inc. 19.6 18.1 4.7
EBITDA 24.8 22.3 9.5
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© 2016 Broadwind Energy, Inc. All rights reserved. 4
0
100
200
300
400
500
2012 2013 2014 2015
Towers Sold
Tower Production Challenges
• Tower production increasing each year; design capacity ~500 towers
• 2015 production suffered from supply chain issues and production
challenges – back on track in 2016
• Taking action to resolve production variability issue
• Organizational Changes
• Process Changes
• Capital Investments
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Wind Market Update
2/26/16 © 2016 Broadwind Energy, Inc. All rights reserved. 5
U.S. Market Outlook, 2015-2021e (GW)
•Longest planning horizon
in industry history
•Eliminates costly
start/stop inefficiencies
•Economics/ potential CPP
become installation
drivers as PTC expires
•Shift toward direct buys
by corporations
5-Year PTC extension adds ~16GW of additional installations into forecast
for 2017-2021
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Gearing
© 2016 Broadwind Energy, Inc. All rights reserved. 6
• 90+ year history
• Competencies in wind gearing, oil &
gas, mining, steel and other industrial
applications
• Completed 3-year restructuring in 2014:
well positioned for rebound in oil & gas
and mining
• Increasing penetration into wind gearing
market following sale of Services
2013 2014 2015
Revenue 43.2$ 42.3$ 29.6$
Op. Inc. (17.9) (9.4) (8.2)
EBITDA (3.6) (0.9) (2.1)
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Consolidated Financial Results
2/26/16 © 2016 Broadwind Energy, Inc. All rights reserved. 7
2015 Results
•Sales down 12%; Towers and Weldments -8%, Gearing -30%
•Gross margin, profit and EPS declines all due primarily to Towers
production challenges and weaker Gearing volumes from oil & gas and
mining customers
•One-time costs associated with difficult contract : $10 million
2013 2014 2015
Revenue-$ Millions 198.5$ 225.8$ 199.2$
Gross Profit-$ Millions 14.6 19.7 7.9
-% (ex. Restructuring) 9.7% 8.7% 4.0%
Operating Expense-$ Millions 23.1 21.2 19.8
-% (ex. Restructuring) 11.1% 9.3% 9.4%
Operating Income(Loss)-$ Millions (8.5) (1.5) (11.9)
Non-GAAP Adj. EBITDA-$ Millions 12.9 11.9 (0.4)
EPS, Continuing Operations (0.41) (0.12) (0.83)
Full Year
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Strong Balance Sheet - $ Thousands
© 2016 Broadwind Energy, Inc. All rights reserved. 8
2014 2015
Cash + Equiv. 20,164 12,698
Accounts Receivable 17,043 9,784
Inventory 31,144 24,219
PPE 58,529 51,906
Other Assets 19,739 11,301
Total Assets 146,619 109,908
Accounts Payable 17,547 13,822
Customer Deposits 22,397 9,940
Debt + Capital
Leases
3,957 5,846
Other Liabilities 14,388 12,808
Total Liabilities 58,239 42,416
Equity 88,380 67,492
• $10M credit line undrawn at
12/31/15
• $5.8M of debt and capital
leases; $2.6M is New Markets
Tax Credit financing
• Operating Working Capital
sufficient ~7% of sales at
12/31/15
• $200M NOL carry-forward not
on balance sheet
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Investment Thesis
•Wind energy demand is growing and planning horizon is best in
history
•BWEN stock depressed due to 2015 production execution misses
in Abilene tower plant
•Fixes in place/underway to support consistent execution
•Strong balance sheet – negative net debt
•Market cap of ~$40 million – significantly less than net book value
© 2016 Broadwind Energy, Inc. All rights reserved. 9
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Broadwind Energy is committed to helping
customers maximize performance of their
energy and infrastructure investments—
quicker, easier and smarter.
10© 2016 Broadwind Energy, Inc. All rights reserved.