Dec 2014 investor deck

Investor Presentation

December 2014

© 2014 Broadwind Energy, Inc. All rights reserved. 1

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 available

information. Independent industry publications and surveys generally state that they have obtained information from sources

believed to be reliable, but do not guarantee the accuracy and completeness of such information. Forecasts are particularly likely

to be inaccurate, especially over long periods of time. We are not aware of any misstatements in the industry data we have

presented herein, but estimates involve risks and uncertainties and are subject to change based on various factors beyond our

control.

This presentation includes various forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and

Section 21E of the Securities Exchange Act of 1934 that involve risks , uncertainties and assumptions, such as statements

regarding our future financial condition or results of operations or prospects and strategies for future growth, including with respect

to estimated 2014 guidance. Statements in this presentation that are not historical are forward-looking statements. These

statements are based on current expectations and we undertake no obligation to update these statements to reflect events or

circumstances occurring after this presentation. Such statements are subject to various risks and uncertainties that could cause

actual results to vary materially from those stated. Such risks and uncertainties include, but are not limited to: expectations

regarding our business, end-markets, relationships with customers and our ability to diversify our customer base; the impact of

competition and economic volatility on the industries in which we compete; our ability to realize revenue from customer orders and

backlog; the impact of regulation on end-markets, including the wind energy industry in particular; the sufficiency of our liquidity

and working capital; our restructuring plans and the associated cost savings; the ability to preserve and utilize our tax net

operating loss carry-forwards; and other risks and uncertainties described in our filings with the Securities and Exchange

Commission, including those contained in Part I, Item A “Risk Factors” of our Annual Reports on Form 10-K.

This presentation contains non-GAAP financial information. We believe that certain non-GAAP financial measures may provide

users of this financial information meaningful comparisons between current results and results in prior operating periods. We

believe that these non-GAAP financial measures can provide additional meaningful reflection of underlying trends of the business

because they provide a comparison of historical information that excludes certain infrequently occurring or non-operational items

that impact the overall comparability. Non-GAAP financial measures should be viewed in addition to, and not as an alternative to,

our reported results prepared in accordance with GAAP. Please see our earnings release dated October 30, 2014 for a

reconciliation of certain non-GAAP measures presented in this presentation.

2© 2014 Broadwind Energy, Inc. All rights reserved.

Highlights

Strong backlog of $228M at Q3 2014; 2015 tower production capacity

nearly sold out

Wind industry continues to grow despite PTC uncertainty

4-year revenue CAGR – 16%

Restructuring plan nearly complete – footprint reduced 40%

$167M NOL carry-forward available to shelter earnings

Strong balance sheet – cash assets of $28M, $20M line of credit undrawn at

Q3 2014

Announced $10 million share repurchase program on October 30, 2014


Broadwind Today

4

Towers 67%

Weldments 6%

Gearing, 14%

Services 7%

2014E Revenue Composition Towers and Weldments Leading wind tower manufacturer

Annual revenue has grown from $5M to $150M over

7-year period

Tower market supply/demand balance improved

Leveraging welding competencies in broader energy

markets

Gearing 90-year history

Precision gearing manufacturer (1 meter and larger

in diameter)

Gearbox and loose gearing expertise

Restructuring nearly complete

Services Non-routine maintenance service on aging fleet of

46,000 wind turbines in U.S.

Core competency around drivetrains, blades,

bearings and other large components

Building offering of proprietary services

© 2014 Broadwind Energy, Inc. All rights reserved.

Executing On Our Plan

5

0%

5%

10%

15%

20%

25%

2010 2011 2012 2013

SG&A as % of Revenue

Improved >10 pp since 2010

0

50

100

150

200

250

300

2010 2011 2012 2013

Sales$M

0%

2%

4%

6%

8%

10%

2010 2011 2012 2013

Gross Margin – % of Sales

GM% Restructuring %

-10

-5

0

5

10

15

20

2010 2011 2012 2013

$M Adj. EBITDA


A Diverse End-Market Presence

6

Wind Towers

Services

Replacement Gears

Oil & Gas Gearboxes

Loose Gearing

Services

Weldments

Mining Gearboxes

Loose Gearing

Weldments

Steel Gearboxes

Loose Gearing

Opportunities to provide packaged gearing and services solutions


Wind Market – Drivers


Market Drivers

58% reduction in the cost of energy since

2009

Regulation 111d retiring older coal

generation, creating partial demand for wind

New financing vehicles like Yield Co’s

Larger rotors have opened new geographic

areas that weren’t previously economical

More utilities owning wind projects

Commercial customers like Walmart,

Google, and Microsoft procuring wind energy

Source: Lazard Capital

$87

$61

Gas

Combined

Cycle

Fundamental case for wind very strong as viable geography

expands

Unsubsidized Levelized Cost of Energy

Positioned in Key Energy and Industrial

Corridors

8

Bakken Shale

Marcellus

Shale

Eagle Ford Shale

Wind

Gulf of Mexico – Off-Shore

Oil & Gas

Wind

Steel

Broadwind

MinesPermian

Basin Barnett

Shale


http://www.google.com/url?sa=i&source=images&cd=&cad=rja&docid=2V-oWlXMoPKFOM&tbnid=MuLf9sZxmm6wCM:&ved=0CAgQjRwwAA&url=http://www.nrel.gov/gis/wind.html&ei=aSdEUrOINISAqQGdlYHIDQ&psig=AFQjCNGyhNuIB7eL5pWoF-6gX3LrdCOKkQ&ust=1380284649901929

http://www.google.com/url?sa=i&source=images&cd=&cad=rja&docid=2V-oWlXMoPKFOM&tbnid=MuLf9sZxmm6wCM:&ved=0CAgQjRwwAA&url=http://www.nrel.gov/gis/wind.html&ei=aSdEUrOINISAqQGdlYHIDQ&psig=AFQjCNGyhNuIB7eL5pWoF-6gX3LrdCOKkQ&ust=1380284649901929

Poised for Growth

9

2013 Sales $216M

New Wind Capacity

Industrial & Installed Base

Sales $400M

Maintain strength and market share in

products and services for new wind

capacity

Grow industrial business to represent

half of BWEN sales in 3-5 years

Expand BWEN’s share of multi-billion

dollar industrial end-markets by 4-5%

Expand sales force

Increase capacity utilization

Enhance service offerings

Deliver on continuous improvement

initiatives – increase throughput and

reduce cycle time

Strategic Objective Execution Strategy

2010 Sales $137M


Orders and Backlog

10

Tower backlog typically 6-9 months, 2015 tower production capacity nearly sold

out, currently in discussions for 2016-2017

Gearing backlog typically 4-6 months

Services selling cycle very short – backlog typically 1-2 months; seeing strong

demand for blade repair work

Solid backlog supports strong revenue in future

-

50

100

150

200

250

300

350M

illio

ns

Order Backlog


U.S. Wind Market Forecast - Near

Term

11

PTC Update

PTC “expired” on 12/31/13 for new projects,

but IRS definition of completion requirements

ensures strong demand into 2015+

15 GW currently under construction

Strong bi-partisan support for PTC extension

1-year “extension” approved by House in

December; waiting Senate approval…little

impact likely

78% of wind project capacity located in

Republican congressional districts

29 U.S. states have renewable energy

requirements

Source: MAKE Consulting: Base case forecast

1 year extension waiting Senate approval; industry continues to

lobby for more stable policy

0

2

4

6

8

10

12

14

2010A 2011 A 2012 A 2013 A 2014 F 2015 F 2016 F

GWGW Installations

BWEN Est. Market Share 2012 2013F 2014F 2015F 2016F5.4% >50% 16% 15% 20%(for towers)


4-Year Financial History

12

Vs. 2013:

Revenue up 57% from 2010

GP% (ex. restructuring) up 660 bps from 2010

Adj. EBITDA improved $20M

Steady EPS improvement reflects operational improvements, wind-down of restructuring

activities plus resolution of residual issues

Significant improvement has been made in 4+ years

FY 2010 FY 2011 FY 2012 FY 2013

YTD

9/30/14

Revenue-$M 137.0$ 186.0$ 210.7$ 215.7$ 187.5$

Gross Profit-$M 1.9 7.2 6.8 12.3 17.6

-% (ex. Restructuring) 1.4% 3.9% 4.0% 8.0% 9.9%

Operating Expense-$M 30.4 27.6 24.1 25.6 18.3

-% (ex. Restructuring) 22.2% 14.6% 11.1% 11.3% 9.6%

Impairment Exp. -$M 40.8

Operating Profit (Loss)-$M(69.2) (20.4) (17.3) (13.2) (0.7)

Adj. EBITDA-$M (9.2) (2.1) 5.5 10.3 10.7

EPS, Continuing - $ (6.56) (1.79) (1.27) (0.72) (0.07)


Strengthening Our Balance Sheet

13

0%

2%

4%

6%

8%

10%

12%

14%

2009 2010 2011 2012 2013 Q3 2014

Operating Working Capital %

Asset rich with low debt; operations will fund working capital needs

Net debt negative

Debt and capital leases total < $5M – room to add debt to expand/acquire business

$20M credit line remained undrawn at Q3 2014

BWEN Board authorizes $10M stock repurchase program on October 30, 2014

% of trailing 3-month annualized sales

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

2009 2010 2011 2012 2013 Q3 2014

Debt and Capital Leases

Brandon, SD mtg

low or 0 interest ratedebtdebt and capital leases


Why Broadwind?

14

The future of wind is favorable

Costs have declined 58% since 2009

Wind power cost is at or below parity with natural gas in some regions

EPA carbon regulations will have powerful impact on industry

Utilities have to invest in new generation; coal unlikely

Manufacturing coming back from the Asian outsourced trend

Energy in manufacturing has a strong long-term outlook

BWEN is diversifying and ready to grow

Uniquely positioned to take advantage of energy infrastructure needs in U.S.

Our customers are leaders in their industries

GE, Siemens, CAT, Gardner Denver, Cameron


Appendix

15

Appendix


Towers and Weldments


Third Quarter 2014 Highlights

Tower volume down 14% from Q3 2013

EBITDA down $3M; challenges with new

tower design and scaling up to full

production capacity caused significant

cost overruns in Abilene

Maintenance $500K higher

Operating Margin fell to 7%

Q4 results forecast to be similar to Q3;

lower margin mix

0

20

40

60

80

100

120

140

# o

f T

ow

ers

Quarterly Tower Sales

2013 2014 2013 2014

Towers 124 107 282 334

Sections 372 334 938 1066

Revenue-$M 47.1$ 45.1$ 116.0$ 146.3$

EBITDA-$M 7.7 4.4 17.4 20.6

Op. Income-$M 6.6 3.4 13.8 17.5

Op. Margin 13.9% 7.4% 11.9% 12.0%

Q3 YTD September 30,

Gearing


Revenue in-line with Q3 2013

EBITDA better than PY due to higher

margin mix and absence of regulatory

charge

Operating loss reduced by 57% due to

higher margin mix, lower restructuring

costs and absence of regulatory charge

Inventory reduced as a result of

improved processing times; adversely

affected operating results due to lower

absorption

0

5

10

15

20

25

30

35

2013 2014

Rev

en

ue

-$

M

YTD Sales by Industry

Other Industrial

Mining

Steel

O&G

Wind

Third Quarter 2014 Highlights2013 2014 2013 2014

Revenue-$M 10.4$ 10.3$ 31.6$ 31.5$

EBITDA-$M (2.3) (0.1) (2.4) (0.3)

Op. Loss-$M (5.4) (2.3) (12.3) (7.1)

Op. Margin -51.7% -22.2% -39.1% -22.4%


Services


Third Quarter 2014 Highlights

Industry recovering – quoting activity up;

highest quarterly order rate since Q4

2012

Revenue up 36% from Q3 2013 –

continued strong demand for service

techs and blade repair

EBITDA loss cut in half due to higher

volume and lower SGA expense

Operating loss improved due to higher

volume and lower SGA expense and

lower non-cash charges

2013 2014 2013 2014

Revenue-$M 3.7$ 5.0$ 15.3$ 10.9$

EBITDA-$M (0.8) (0.4) (1.5) (2.3)

Op. Loss-$M (1.3) (0.7) (3.2) (3.4)

Op. Margin -34.4% -14.6% -21.2% -31.0%


0

20

40

60

80

100

Q2 13 Q3 13 Q4 13 Q1 14 Q2 14 Q3 14

Active Service Tech Headcount

Q3 2014 Summary

• Q3 Towers challenges were associated with one facility and will be corrected

• 2014 financial results should show good improvement over 2013

• Solid order backlog to support strong 2015 revenue

• Wind market fundamentals are strong

• Oil & Gas markets strong … monitoring oil prices closely

• Strong liquidity position … supporting repurchase of stock

• Gearing continues to grow the backlog and is executing better on production

• Services demand for blade repair and other tech services is robust

• Reached preliminary settlement with SEC staff; last of legacy issues should

be behind us


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quicker, easier and smarter.


Dec 2014 investor deck

Investor Relations

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