TPCS Company Overview LD Micro Conference 12.9

8/8/2019 TPCS Company Overview LD Micro Conference 12.9

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Business Overview

LD Micro ConferenceDecember 9, 2010


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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 from those in the forward-looking statements, which may include, but are not

limited to, such factors as unanticipated changes in product demand, increased

competition, downturns in the economy, failure to comply with specific regulationspertaining to government projects, fluctuation of revenue due to the nature of project

lifecycles, and other information detailed from time to time in the Company filings and

future filings with the United States Securities and Exchange Commission. The forward-

looking statements contained in this presentation are made only of this date, and the

Company is under no obligation to revise or update these forward-looking statements.

Safe Harbor Statement


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Investment Highlights

One of the few large scale, precisionmanufacturing and fabrication companies inthe United States; high barriers to entry

Well-positioned to capitalize on growingalternative energy (solar and wind), nuclearenergy, defense, clean tech, aerospace andmedical equipment markets

60-80% of gross profit drops to EBITDA line $1.02/share in working capital at 9/30/2010

Strong management team executingattractive growth strategy; organic and

inorganic Predictable financial model with recurring

revenue


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TechPrecision Corporation (OTC BB: TPCS)

Corporate office location: Saucon Valley, PA

Umbrella organization established in February 2006 One of the few public companies in the space

New management, additional board members with deep industry experience

TechPrecision


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Ranor Inc. (TechPrecision subsidiary)

20+ years average staff tenure ISO 9001:2008 certified, ASME shop Large-scale projects with tight tolerance levels One of a few end-to-end solution providers; increasingly fewer manufacturers

capable of matching TPCS in its industries served

Ability to engineer requisite tooling and entire manufacturing process for eachrespective production program

One of few remaining N-stamp (nuclear) certified machining/fabrication companies inthe US

Quality certifications include NAVSEA S/T-9074 and MIL-Q/I/ST Fully integrated services create high barriers to entry

Ranor Subsidiary

ISO9001


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China Subsidiary

TechPrecision Corporation Creates Wholly OwnedChina-Based Subsidiary to Address Growing Demandfor Solar and Nuclear Energy Manufacturing in Asia

80% of poly silicon panels and many nuclear reactors arescheduled to be built in China

Key customers indicated interest in expanding business with

TechPrecision if we could support them locally in Asia We moved quickly to meet this demand by establishing:

Wuxi Critical Mechanical Components Co. Ltd.

US and some European customers still served by facility inMassachusetts

Manufacturing processes and IP developed and protected inUS (maintain strategic advantage)

Sensitive government and defense work

Wuxi, China

Westminster,MA

Wuxi Critical Mechanical Components Co., Ltd. (TechPrecision subsidiary)


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Markets We Serve

Alternative Energy

Medical

Nuclear

Defense

Aerospace

Commercial Industry


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Select Customers

Alternative

Energy

Nuclear Defense Aerospace Medical

(Electric Boat)

(Solar and Wind)

Commercial


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Nuclear Energy Business

Nuclear addressable marketsNew Construction:Advanced nuclear plant construction

required on a global basis

Outage:Existing nuclear power plants will require hundreds ofmillions of dollars in replacement equipment

Storage:new requirements for spent fuel and fuel transport

Significant capital expenditure cycle in the nuclearindustry over the next few years (Source: Nuclear EnergyInstitute)

$56B of debt guarantees from the US Government for newplant construction (up from $18B)

104 existing US plants = $25M/plant per yr. for $2.6B annually

Total procurement 104 plants = $13.29B annually

New nuclear plant 2010 = $9 - $14B/plant

One of few ASME N-stamp certified providers ofhigh-precision components to the nuclear industry

Allows for the design and construction of commercial nuclear

equipment, and nuclear storage and shipping equipment


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Alternative Energy Business

Alternative Energy addressable market (Source: CleanEdge, 2010) Wind and Solar = $99.6B annually in 2009

Growing to $231B in 2019

Manufactures a proprietary product for the solar industry Focused on multicrystalline wafer production Target expansions in mono-crystalline and CIGS markets

Expanding programs for high energy wind turbine Alternative Energy has strong long-term prospectsRising energy demand/prices

40% increase in electric demand by 2030

Increasing scarcity of traditional energy resourcesGrowing adoption of government incentives

10%+ efficientCIGS panel


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High-Potential Medical Device Business

Medical Device addressable market (Source: espicom, 2010) 2010 US market size = $94.9B Exclusive manufacturing and supply agreement to produce key components for a

revolutionary proton beam radiotherapy device to treat cancer

PBRT is favored in situations where risks to healthy neighboring tissues hasthe greatest potential risk to quality of life

Equal radiationdose

Conventional RadiationBeam

Majority ofRadiation dose

Proton Radiation Beam

No radiation dose

Limited radiation dose

= Radiation Beam= Cancer Tumor

Pediatric cancer

Prostate cancer

Head & neck cancer

Brain tumors

Ocular cancer

Lung cancer

Bone & spinal cancer

Liver cancer

Colon cancer


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Defense & Aerospace Business

Navy addressable market (Source: Congressional Budge Office Report & 111th CongressHouse Report 111-230)

Spending for new navy ships (313 ship fleet target) = $25B/year Shipbuilding and conversion appropriations: $13.1B in 2009

Shipbuilding and conversion budget request: $13.8B in 2010

Precision fabricated and machine components for multipledefense contractors Production subassemblies for nuclear submarines

Prototype components for use on the DDX destroyer Jet engine test equipment for large jet engine

manufacturers

Large- and small-scale fuel cell domes for commercialrocket booster cores

Key supply chain relationships with several large defensecontractors


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Revenues by Industry

Medical, 6.05%

Nuclear, 6.28%

Aerospace, 3.39%

Commercial/Other,

6.31%

Alternative Energy,

52.05%

Defense, 25.92%

Fiscal Year 2009 Fiscal Year 2010

Medical, 9.93%

Defense, 15.20%

Alternative Energy,

57.44%

Aerospace, 1.32%

Commercial Other,

9.40%

Shipbuilding, 5.46%

Nuclear, 1.26%


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Growth Strategy

Diversify platform and product mix for long-termsustainable growth

Target high-margin projects with more predictable coststructures

Focus on high-growth alternative energy, nuclear,defense, clean tech and medical industries

Deploy proactive BD/sales/marketing processes

Expand the direct sales and sales representative force

Expand business through global organic growth


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Relative Margin Contribution & Mix

Production engineering

Collaborative prototyping

Quality program

Robotic welding services

Non destructive examinationand inspection services

Highly adaptive non-unionworkforce14-18%

18-22%

23-26%

25-30%

30+%

TraditionalContractManufacturer

Bid-buyProject Work

SpecialtyPrototyping

Mix ofProduction &Project Work

Multiple Production

Programs Turn-keyservices

Supply ChainPosition

Tier 1- 2

Tier 1- 2

Tier 1- 3

Tier 3 - 4

Tier 4 - 5

Ancillary Services


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Income Statement

Consolidated Income Statement

($ in Millions)

IHFY 2011

(9/30/10)

FY2010 FY2009 FY2008 FY2007

Revenues 14.5 28.3 38.1 31.8 19.1

Gross Profit 4.9 6.1 12.1 8.3 3.5

Gross Margin 33.7% 21.5%** 31.8% 26.2% 18.6%

Operating Expenses 2.1 3.3 2.5 1.9 2.1

Operating Income 2.8 2.8 9.7 6.4 1.4

Operating Margin 19.0% 9.7%** 25.4% 20.1% 7.6%

Net Income 1.7 2.0 5.9 3.5 0.3

Net Margin 11.5% 7.2% 15.6% 11.1% 1.5%

Wtd. Avg. Basic Shares 14.2 14.2 13.6 10.9 10.0

EPS - Diluted $0.08 $0.10 $0.23 $0.12 $0.03

** The $8.9M inventory transfer to GT Solar in August 2009 includedraw material, shifting avg. gross margin lower for YTD FY 2010


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Balance Sheet Highlights

($ in Millions) Sept. 30, 2010 March 31, 2010

Cash 9.2 8.8

Current Assets 17.2 15.2

Total Assets 21.9 19.4

Current Liabilities 2.6 1.9

Total Liabilities 8.2 7.3

Total Stockholders Equity 13.8 12.1

Long-Term Debt Sept. 30, 2010

Term Note 1,428,571

Mortgage Loan

(obligation of WM Realty) 3,058,119

Capex/Capital Lease 1,887,044

Total Long-Term Debt 6,373,734


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Capitalization Structure as of 9/30/10

Share Type Number of Shares

Common Shares Outstanding: 14,283,346

Common Stock issuable upon conversion of series Apreferred stock at $0.218:

12,629,489

Shares issuable upon exercise of stock options or other

equity based incentives pursuant to the Companys 2006long-term incentive plan:

2,008,327

Total: 28,921,162


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Peer/Competitor Comparison

(TTM at 9/30/10 unless otherwisenoted)

TechPrecisionCorporation

OTC:BB: TPCS

Amtech Systems

Nasdaq: ASYS

GT Solar

Nasdaq: SOLR

Precision Castparts

NYSE:PCP

Revenue $24.45 M $120.02 M $732.69 M $5.78 B

Revenue/Share $1.72 $13.30 $5.05 $40.80

Gross Margin 24.9% 35.6% 29.9% 31.0%

Operating Margin 15.3% 13.8% 28.6% 24.72%

Net Income $2.52 M $9.56 M $129.3 M $944.80 M

Quarterly Revenue Growth (Y/Y) -44.6% 289.2% 120.1% 16.8%

Stock Price at 9/30/10 $0.87 $17.96 $8.37 $127.35

Market Cap at 9/30/10 $12.4 M $163.1M $1.26 B $18.16 B

EBITDA $4.13 M $18.23 M $216.65 M $1.59 B

EV/EBITDA 3.60x 6.82x 3.74x 12.32x

Price (11/26/2010): $1.24Market Capitalization (common & preferred): $35.8M

Wtd. Avg. Basic Shares as of 9/30/2010: 14.2M*

*As of 11/30/10 TechPrecision had 12.6 million shares of common stock reserved for issuance upon conversionof series A convertible preferred stock. There were 2.0 million shares issuable upon exercise of stock options or

other equity-based incentives pursuant to the Companys 2006 long-term incentive plan. Fully diluted share countat 11/30/2010 was 28.9 million.


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Management Team

James Molinaro CEO, TechPrecision Corporation Named CEO in July 2010

Over 26 years of global experience in solar, defense and semiconductor equipment

production Previously President and CEO of Akrion Systems

Served as VP of Sales, Service, and Marketing for Akrion

President for Submicron Systems and earlier served as its VP of Engineering

Richard Fitzgerald CFO, TechPrecision Corporation

CFO of TechPrecision since April 2009

Previously VP and CFO of Nucleonics and Director, Corporate Development at

Exelon and PECO Energy Company

Extensive experience in roll-ups, financing, integrating merged organizations

William N. Hogenauer - Director of Business Development Joined TechPrecision in November, 2009

Previously founded and was CEO of WebTCD

Began his career as a Sales Engineer at InterTest


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Investment Opportunity

C-suite and business development function have been revamped andsignificantly upgraded

Stock price of $1.24 at 11/26/10 and 10.3x P/E (ttm)

Backlog of $31M at 11/1/2010 provides forward visibility

Multiple embedded options to fuel a return to 2008/2009 sales and marginlevels, momentum evident in 1H FY 2011 Still River Systems: pending FDA clearance

GT Solar: return of the PV market

Nuclear renaissance: Rebuild and new build

Alternative energy/clean tech growth opportunities

Wuxi Critical Mechanical Components Co., Ltd. subsidiary opened Addresses growing demand for solar and nuclear energy manufacturing in Asia Significant revenue growth potential for Fiscal 2012 and beyond


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TechPrecision Corp.

Richard Fitzgerald, CFO

Bella Drive

Westminster, MA 01473

Tel: (610) 246-2116

[email protected]

www.techprecision.com

Hayden IR

Brett Maas

Phone: 646-536-7331

Email: [email protected]

or

Cameron Donahue

Phone: 651-653-1854

Email: [email protected]

Contact Information

TPCS Company Overview LD Micro Conference 12.9

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