Q1 FY08 Highlights and Financial Guidance*

Transcription

1 Investor Presentation August

2 Safe Harbor Any statements in this presentation regarding future expectations, plans and prospects for the Company, including statements containing the words "believes," "anticipates," "plans," "expects," "will" and similar expressions, constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of There are a number of important factors that could cause actual results to differ materially from those indicated by such forward-looking statements. Such factors include: uncertainties regarding the Company's ability to obtain anticipated funding from corporate and government contracts, to successfully develop, manufacture and market commercial products, and to secure anticipated orders; the risk that a robust market may not develop for the Company's products; the risk that strategic alliances and other contracts may be terminated; the risk that certain technologies utilized by the Company will infringe intellectual property rights of others; and the competition encountered by the Company. Reference is made to these and other factors discussed in the Risk Factors" section of the Company's most recent quarterly or annual report filed with the Securities and Exchange Commission. In addition, the forward-looking statements included in this presentation represent the Company's views as of today. While the Company anticipates that subsequent events and developments may cause the Company's views to change, the Company specifically disclaims any obligation to update these forward-looking statements. These forward-looking statements should not be relied upon as representing the Company's views as of any date subsequent to the date of this presentation. 2

3 Q1 FY08 Highlights and Financial Guidance* Doubled revenues year-over-year to $40 million in Q1 Grew backlog to $634 million as of June 30, 2008 Generated a record $3 million in operating cash flow Delivered record EBITDAS positive results Expect FY08 revenues to grow approximately 60% to a range of $175 million to $185 million Positive EBITDAS and substantial reduction in net loss forecasted for FY08 More than $130 million in cash, cash equivalents, investments and restricted cash as of June 30, 2008; no debt * Estimates as of 8/5/08 3

4 Long-Term Mega Trends Driving Growth Global Wind Market Installed Capacity U.S. Annual Transmission Investment by Shareholder-Owned Electric Companies Gigawatts $ Billions Source: GWEC Source: Edison Electric Institute BTM Consulting expects wind capacity to reach 288 GW by

5 Our Approach to the Wind Energy Market Provide D-VAR grid interconnection solutions Sell turbine electrical systems Design and license wind turbines Develop customized wind turbines Provide service contracts and consulting services Develop superconductor wind generators 65%-70% of FY2008 revenues to come from the wind market 5

6 Wind Energy Market: Accelerating Growth Global Installed Capacity 180, ,000 acquired D-VAR serving 35 wind farms worldwide Megawatts 120,000 90,000 60,000 First D-VAR system for grid interconnection of a wind farm D-VAR systems serving 10 wind farms 30, E 2009E 2010E Source: Global Wind Energy Council Global wind power capacity expected to double from 2007 to

7 AMSC Windtec 7

8 Customer Case Study: China s Sinovel Wind Cumulative Sinovel Orders to AMSC in Megawatts 16,000 12,000 8,000 4, /05 2/06 10/06 11/06 3/07 7/07 9/07 3/08 6/08 Orders represent more than $600 million of revenue to AMSC Sinovel Wind rapidly ramping capacity of 1.5 MW turbines Recently received first order for 3 MW core electrical systems and components Developing 5 MW turbines 8

9 AMSC Windtec Customer Timelines (China) 1.5 MW 3 MW 5 MW (Czech Republic) 2 MWsg (Korea) 3 MW (China) 1.65 MW (China) 2.5 MW (Canada) 1.5 MW 2 MWsg (India) 1.65 MW (Taiwan) 2 MW (Turkey) 1.65 MW CY Customer prototype Series production 9

10 AMSC China Formed October 2007 Wholly Owned Foreign Enterprise Manufacturing facility in Suzhou enabling cost reduction Local sales and field service offices in Beijing and Shanghai CHINA Supported by sales office in Singapore AMSC China employs 80+ Chinese citizens; growing rapidly Platform for future Asian growth AMSC manufacturing operations AMSC sales and field service office AMSC customer 65%-70% of FY2008 revenues to come from international markets 10

11 Long-Term Mega Trends Driving Growth Global Wind Market Installed Capacity U.S. Annual Transmission Investment by Shareholder-Owned Electric Companies Gigawatts $ Billions Source: GWEC Source: Edison Electric Institute China needs to invest $1.5 trillion by 2030 to update its power grid International Energy Association 11

12 Our Approach to the Power Grid Market Primary grid products and solutions: - Grid analyses and solutions (Network Solutions Team) - Voltage regulators, control systems, power cables, surge suppressors Benefits: - Prevent blackouts - Enhance power throughput - Provide digital-grade power - Reduce greenhouse gas emissions - Relieve grid choke points - Meet growing power demands - Improve efficiency Long Island Superconductor Cable System DOE expects worldwide electricity consumption to double from 2004 to

13 AMSC s D-VAR and SVC Solutions Large-scale voltage regulators Increase power grid capacity Enhance grid reliability Address growing worldwide transmission grid requirements D-VAR System D-VAR systems purchased by more than 20 electric utilities worldwide First two SVC orders received in September 07 SVC System 13

14 High Temperature Superconductor (HTS) Wires: 150X Increase in Power Power density drives system economics 14

15 HTS Power Cables Advantages Over Copper-Based Systems Courtesy Southwire Company Higher capacity - Up to 10x at distribution levels (triax design) - Up to 5x at transmission voltages (co-axial design) Eliminates choke points in the grid Meets growing power demands 15

16 Product Pipeline: Superconductor Cables Reaching a Tipping Point US/EPRI 115kV (50m) US/Southwire 12.5kV (30m) DENMARK 36kV (30m) JAPAN 66kV (30M) US/DTE 24kV (120m) KOREA 22.9kV (30m) CHINA 35kV (30m) JAPAN 77kV (500m) CHINA 10.5kV (75m) KOREA 22.9kV (100m) US/Nat. Grid 34.5kV (400m) US/AEP 13.8 kv (200m) US/LIPA Phase I 138kV (600m) MEXICO 15kV (30m) SPAIN 10kV (30m) KOREA 22.9kV (100m) RUSSIA 35 kv (30m) CHINA 110 kv (30m) JAPAN 66kV (250m) US/ConEd 13.8 kv (220m) Powered by AMSC wire Powered by other wire Wire Supplier TBD US/LIPA Phase II 138 kv (600m) US/ENTERGY 13.8 kv (1600m) SPAIN 20kV (30m) RUSSIA 35kV (30m) KOREA PROJECT AMSTERDAM PROJECT (NUON) SHANGHAI PROJECT (SECRI) 16

17 Long Island Power Authority Cable System Energized in April 2008 World s first HTS transmission voltage cable system in the grid Longest, most powerful superconductor cable in the world Able to carry 574 MW of power in a four-foot-wide right of way Will deploy cable made with 344 superconductors under LIPA II 17

18 Project HYDRA: Secure Super Grids Technology ConEd s System of Today Powered by Copper Cables ConEd s System of the Future Powered by Secure Super Grids Copper power cables HTS power cables Eliminates choke points, blackouts and power surges; requires 344 superconductors 18

19 Surge Protectors for the Power Grid: an Unmet Need Power surges, or fault currents, are caused by short circuits Superconductors automatically and instantly suppress surges Seven companies worldwide developing Fault Current Limiters with AMSC s 344 superconductors Siemens/AMSC team achieved commercial grade performance in 2007 Recently commenced DOE-funded project with Southern California Edison 19

20 Financial Overview 20

21 Rapidly Changing Revenue Profile $200 Rapid Growth Fueled By Commercial Sales $150 In millions $100 Technology Development Funded by Government Contracts Commercial Products Developed and Marketed $50 $0 Estimate as of 8/5/08 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08E 21

22 Growth Fueled by Commercial Sales % 87-90% 75 % of Total Revenues % 27% 29% 59% 0 Estimates as of 8/5/08 FY03 FY04 FY05 FY06 FY07 FY08E 22

23 International and Wind Power Business Driving Commercial Sales International Sales Wind Power Sales (%) (%) 80 74% 65-70% 80 70% 65-70% % 41% % 20 11% 20 12% 16% 0 FY04 FY05 FY06 FY07 FY08E Estimates as of 8/5/08 0 FY04 FY05 FY06 FY07 FY08E 23

24 FY2008 Guidance $ Millions (except per share data) FY2006 FY2007 FY2008 Guidance Total Revenues $52.2 $112.4 $175 to $185 Net Income ($34.7) ($25.4) ($13) to ($15) EPS ($1.04) ($0.65) ($0.30) to ($0.35) EBITDAS* ($28.1) ($9.1) $7 to $10 Guidance as of 8/5/08 * Earnings before interest, taxes, depreciation, amortization and stock-based compensation (for a reconciliation of EBITDAS to GAAP net loss, see press releases dated May 8, 2008 and August 5, 2008 on Significantly improving all key financial metrics 24

25 Rapidly Approaching Key Financial Milestones $250 Revenue in millions $200 $150 $100 $50 GAAP Breakeven Operating Cash Flow Breakeven EBITDAS Breakeven $0 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08E Guidance as of 5/8/08. Model assumes approximately 90% of revenues coming from Power Systems and primarily cost share contract revenue in Superconductors Rapidly approaching GAAP profitability 25

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