Bwen q3 inevestor call slides draft 4 10 28-14

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Q3 Investor Call Presentation

October 30, 2014

© 2014 Broadwind Energy, Inc. All rights reserved.

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

Industry Data and Forward-Looking Statements DisclaimerBroadwind 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.

10/30/2014


Q3 2014 Overview

10/30/2014

End Market Environments Wind – Strong fundamentals from

cost and demand perspective Oil & Gas – strong demand for

gearing and fabrications Steel – strong demand for gearing Mining – demand remains flat for

gearing and fabrications

Q3 2014 Highlights Booked $66M in new orders Challenges in Towers ramping up

production and adding new design Inventory reduction of $3.5M from

Q2 2014 as expected Gearing cut operating loss by >50% Services strong revenue and order

intake

2012 2013 2014$30

$40

$50

$60

$70

Q3 Revenue $M

2012 2013 2014-0.40

-0.20

0.00

0.20

Q3 Op. (Loss) cents / share

2012 2013 2014$0.0$0.5$1.0$1.5$2.0$2.5$3.0

Q3 Adj. EBITDA $M


Orders and Backlog

Orders – $M

$52M in Towers & Weldments orders in Q3 14; near tower production capacity for 2015

Strong increase in Oil and Gas orders, down from PY due to timing of a large wind replacement gearing order; YTD well ahead of PY

Services orders up 36% over PY and highest since Q4 2012; strong demand for blade repair, YTD > double PY

Order Backlog – $M

Q3 2014 ending backlog of $228M

Strong order backlog going into 2015

Q3 2013

Q3 2014

YTD 2013

YTD 2014

Towers & Weldments

$70.3 $51.7 $168.3 $56.5

Gearing 12.8 9.0 29.3 35.6

Services 3.9 5.3 6.1 13.3

Total $87.0 $66.1 $203.7 $105.5

10/30/2014

Q4 11 Q4 12 Q1 13 Q2 13 Q3 13 Q4 13 Q1 14 Q2 14 Q3 140

50

100

150

200

250

300

350

Up 36% from PY


Towers Update

10/30/2014

Challenges

12 towers fell out of quarter due to production inefficiencies

Abilene hrs/section nearly 2/3 higher than expected

Abilene first pass yield fell by 5x Additional maintenance spend

$500K + due to poor scheduled maintenance compliance and higher capacity levels in Abilene

Actions Being Taken

Manitowoc plant manager temporarily moved to Abilene

Redeployed key personnel to retrain workforce

Developing redundancies for bottleneck areas

Significant focus on on-time servicing of equipment and additional stocking of spares

Greater support by Manitowoc staff in Abilene

Expect operational improvements in Q4 and full benefit of corrective actions in 2015


Gearing Fundamentals

Market Trend Highlights

Wind + Replacement Gearing

O&G + Strong Market Drivers

Steel + Increase in Capex Spend

Mining - Little Growth

Productivity

Inventory Turns

Mar-13 Jun-13 Sep-13 Dec-13 Mar-14 Jun-14 Sep-1450.0%

55.0%

60.0%

65.0%

70.0%

75.0%

10/30/2014

Q1 13 Q2 13 Q3 13 Q4 13 Q1 14 Q2 14 Q3 140

1

2

3

4

5

6

Q1 13 Q2 13 Q3 13 Q4 13 Q1 14 Q2 14 Q3 140.0%2.0%4.0%6.0%8.0%

10.0%12.0%14.0%16.0%18.0%

Defect Rate


Wind Market – Drivers

10/30/2014

Market Drivers 58% reduction in the cost of energy

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


Consolidated Financial Results

10/30/2014

Q3 2014 Comments Sales down 1% from Q3 2013 –Towers and Weldments -4%, Services + 36% Gross margin (ex. restructuring) – down 270 bp from Q3 2013 due to lower volumes in

Towers and Weldments Operating expense lower than Q3 2013; lower restructuring and regulatory expense EPS loss of $.12, ahead of Q3 2013; poor Towers and Weldments results pull YTD EPS

to loss position 2014 YTD EPS loss includes $.11 charge related to proposed regulatory settlement

2013 2014 2013 2014Revenue-$M 60.9$ 60.3$ 159.3$ 187.5$ Gross Profit-$M 4.6 3.9 10.2 17.6 -% (ex. Restructuring) 9.4% 6.7% 8.1% 9.9%Operating Expense-$M 6.9 5.7 19.4 18.3 -% (ex. Restructuring) 11.2% 9.2% 11.7% 9.6%Operating Income/(Loss)-$M (2.3) (1.8) (9.3) (0.7) Net (Loss), Continuing-$M (2.5) (1.8) (6.6) (1.0) Adj. EBITDA-$M 2.7 2.0 7.6 10.7 EPS, Continuing (0.18) (0.12) (0.46) (0.07)

Q3 YTD


Towers and Weldments

10/30/2014

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

2012

Avg

/qtr.

Q1 13

Q2 13

Q3 13

Q4 13

Q1 14

Q2 14

Q3 14

Capac

ity0

20

40

60

80

100

120

140

Quarterly Tower Sales

# o

f T

ow

ers

2013 2014 2013 2014Towers 124 107 282 334Sections 372 334 938 1066Revenue-$M 47.1$ 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

10/30/2014

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

2013 20140

5

10

15

20

25

30

35YTD Sales by Industry

Other IndustrialMiningSteelO&GWind

Reve

nue

- $M

Third Quarter 2014 Highlights2013 2014 2013 2014Revenue-$M 10.4$ 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

10/30/2014

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 2014Revenue-$M 3.7$ 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%


Q2 13 Q3 13 Q4 13 Q1 14 Q2 14 Q3 140

102030405060708090

100

Active Service Tech Headcount


Operating Working Capital

10/30/2014

Q4 2008Q1 2009

Q2 2009Q3 2009

Q4 2009Q1 2010

Q2 2010Q3 2010

Q4 2010Q1 2011

Q2 2011Q3 2011

Q4 2011Q1 2012

Q2 2012Q3 2012

Q4 2012Q1 2013

Q2 2013Q3 2013

Q4 2013Q1 2014

Q2 2014Q3 2014

- 0.02 0.04 0.06 0.08 0.10 0.12 0.14 0.16 0.18 0.20

Working Capital Cents per Dollar

9/30/14 OWC decreased $14.4 Million from 6/30/14 to $11.5 Million OWC was 5% of annualized Q3 2014 sales Inventory decreased, trade payables and customer deposits increased

*Operating Working Capital = Trade Receivables + Inventories – Trade Payables – Customer Deposits


Debt and Liquidity

10/30/2014

Net debt negative Debt and capital leases less than $5M $20M credit line remained undrawn at 9/30/14 BWEN Board authorizes $10M stock repurchase program

2009 2010 2011 2012 2013 Q2 2014 Q3 20140

5000

10000

15000

20000

25000

30000

35000

40000

45000

debt and capital leases low or 0 interest rate debtBrandon, SD mtg

9/30/2014 $MAloStar line of credit - Long-term debt - Capital leases 1.4$ Subtotal: debt ex. grants 1.4 Grants/tax credits 2.8 Total Debt 4.2 Less: Cash and related assets 27.9 Net Debt (23.7)$


2014 Financial Outlook

10/30/2014

2014 EPS Walk Q4 expected to be in-line with prior year Full year estimates show continued solid improvement over prior year; revenue up

15%, operating loss reduced by >70% 2014 estimated EPS loss includes $.11 charge related to proposed regulatory

settlement

Expect solid 2014 improvement, despite Towers stumble

FY 2010 FY 2011 FY 2012 FY 2013 2014 E Q4 14 Q4 13Revenue-$M 137.0$ 186.0$ 210.7$ 215.7$ $248-250 $58-61 56.4$ Gross Profit-$M 1.9 7.2 6.8 12.3 -% (ex. Restructuring) 1.4% 3.9% 4.0% 8.0% 8-9% 7.8%Operating Expense-$M 30.4 27.6 24.1 25.6 6.1 -% (ex. Restructuring) 22.2% 14.6% 11.1% 11.3% 9-10% 10.3%Impairment Exp. -$M 40.8 Operating Profit (Loss)-$M(69.2) (20.4) (17.3) (13.2) (4-5) (3-4) (4.0) Adj. EBITDA-$M (9.2) (2.1) 5.5 10.3 11-12 0-1 2.8 EPS, Continuing - $ (6.56) (1.79) (1.27) (0.72) (.27-.34) (.20-.27) (0.26)


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 potential settlement with the SEC; last of legacy issues should be

behind us

10/30/2014

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Bwen q3 inevestor call slides draft 4 10 28-14