Company Presentation August 2018

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Madlyn Skinner
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1 August 2018

2 Legal Disclaimer This presentation contains forward-looking statements within the meaning of the federal securities laws. All statements other than statements of historical facts contained in this presentation, including statements regarding our future results of operations and financial position, business strategy and plans and objectives of management for future operations, are forward-looking statements. In many cases, you can identify forwardlooking statements by terms such as may, should, expects, plans, anticipates, could, intends, target, projects, contemplates, believes, estimates, predicts, potential or continue or the negative of these terms or other similar words. Forwardlooking statements contained in this presentation include, but are not limited to, statements about (i) growth of the wind energy market and our addressable market; (ii) the potential impact of the increasing prevalence of auction-based tenders in the wind energy market and increased competition from solar energy on our gross margins and overall financial performance; (iii) our ability to successfully expand our transportation business and execute upon our strategy of entering new markets outside of wind energy; (iv) our future financial performance, including our net sales, cost of goods sold, gross profit or gross margin, operating expenses, ability to generate positive cash flow, and ability to achieve or maintain profitability; (v) changes in domestic or international government or regulatory policy, including without limitation, changes in trade policy; (vi) the sufficiency of our cash and cash equivalents to meet our liquidity needs; (vii) our ability to attract and retain customers for our products, and to optimize product pricing; (viii) our ability to effectively manage our growth strategy and future expenses, including startup and transition costs; (ix) competition from other wind blade turbine manufacturers; (x) the discovery of defects in our products; (xi) our ability to successfully expand in our existing wind energy markets and into new international wind energy markets; (xii) worldwide economic conditions and their impact on customer demand; (xiii) our ability to maintain, protect and enhance our intellectual property; (xiv) our ability to comply with existing, modified or new laws and regulations applying to our business, including the imposition of new taxes, duties or similar assessments on our products; (xv) the attraction and retention of qualified employees and key personnel; and (xvi) the potential impact of GE s acquisition of LM Wind Power upon our business. These forward-looking statements are only predictions. These statements relate to future events or our future financial performance and involve known and unknown risks, uncertainties and other important factors that may cause our actual results, levels of activity, performance or achievements to materially differ from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. Because forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified, you should not rely on these forward-looking statements as guarantees of future events. Further information on the factors, risks and uncertainties that could affect our financial results and the forwardlooking statements in this presentation are included in our filings with the Securities and Exchange Commission and will be included in subsequent periodic and current reports we make with the Securities and Exchange Commission from time to time, including in our Annual Report on Form 10-K for the year ended December 31, The forward-looking statements in this presentation represent our views as of the date of this presentation. We anticipate that subsequent events and developments will cause our views to change. However, while we may elect to update these forward-looking statements at some point in the future, we undertake no obligation to update any forward-looking statement to reflect events or developments after the date on which the statement is made or to reflect the occurrence of unanticipated events except to the extent required by applicable law. You should, therefore, not rely on these forwardlooking statements as representing our views as of any date after the date of this presentation. Our forward-looking statements do not reflect the potential impact of any future acquisitions, mergers, dispositions, joint ventures, or investments we may make. This presentation includes unaudited non-gaap financial measures including total billings, EBITDA, adjusted EBITDA, net cash (debt) and free cash flow. We define total billings as the total amounts we have invoiced our customers for products and services for which we are entitled to payment under the terms of our long-term supply agreements or other contractual agreements. We define EBITDA as net income (loss) attributable to the Company plus interest expense (including losses on the extinguishment of debt and net of interest income), income taxes and depreciation and amortization. We define Adjusted EBITDA as EBITDA plus any share-based compensation expense, plus or minus any gains or losses from foreign currency remeasurement. We define net cash (debt) as the total principal amount of debt outstanding less unrestricted cash and cash equivalents. We define free cash flow as net cash flow generated from operating activities less capital expenditures. We present non-gaap measures when we believe that the additional information is useful and meaningful to investors. Non-GAAP financial measures do not have any standardized meaning and are therefore unlikely to be comparable to similar measures presented by other companies. The presentation of non-gaap financial measures is not intended to be a substitute for, and should not be considered in isolation from, the financial measures reported in accordance with GAAP. Please refer to pages of Exhibit 99.2 of our Form 8-K filed with the Securities and Exchange Commission on August 7, 2018 for the reconciliations of certain non-gaap financial measures to the comparable GAAP measures contained in this presentation. The containing these reconciliations is available on our website by accessing the following link: August Investor Presentation This presentation also contains estimates and other information concerning our industry that are based on industry publications, surveys and forecasts. This information involves a number of assumptions and limitations, and we have not independently verified the accuracy or completeness of the information. August

Introduction to TPI Composites Business Overview Strong Historical Financial Results Only

global footprint Provides wind blades to some of the industry s leading OEMs such as: Vestas, GE,

with two more under construction, and three tooling and R&D facilities across four countries:

transportation solutions, including electric buses Long-term supply agreements with customers,

efficiency 44% Revenue CAGR 2013-2017 86% Adjusted EBITDA CAGR 2013-2017 10.5% 3.

3 Introduction to TPI Composites Business Overview Strong Historical Financial Results Only independent manufacturer of composite wind blades for the high-growth wind energy market with a global footprint Provides wind blades to some of the industry s leading OEMs such as: Vestas, GE, Siemens/Gamesa, Nordex/Acciona, Senvion and Enercon Operates nine wind blade manufacturing plants, with two more under construction, and three tooling and R&D facilities across four countries: United States China Mexico Turkey Applying advanced composites technology to production of clean transportation solutions, including electric buses Long-term supply agreements with customers, providing contracted volumes that generate significant revenue visibility and drive capital efficiency 44% Revenue CAGR % Adjusted EBITDA CAGR % 3.9% Adjusted EBITDA Margin Growth Founded in 1968 and headquartered in Scottsdale, Arizona Approximately 9,000 employees globally August

Investment Thesis Capitalizing on Wind Market Growth, Blade Outsourcing and Improving Economics Only Independent Blade Manufacturer with a Global Footprint Advanced Composite Technology and

4 Investment Thesis Capitalizing on Wind Market Growth, Blade Outsourcing and Improving Economics Only Independent Blade Manufacturer with a Global Footprint Advanced Composite Technology and Production Expertise Provide Barrier to Entry Collaborative Dedicated Supplier Model to Share Gain and Drive Down LCOE Long-Term Supply Agreements Provide Significant Revenue Visibility Compelling Return on Invested Capital Seasoned Management Team with Significant Global Growth Experience August

5 Strong Customer Base of Industry Leaders Key Customers with Significant Market Share Current Customer Mix 50 (3) Dedicated Lines Global Onshore Wind Rank OEM Global Onshore Wind exc. China Share (1) Rank OEM Share (1) 1 Vestas 15% 1 Vestas 25% 4% 4% 2 SGRE (2) 13% 2 SGRE (2) 21% 3 Goldwind 12% 3 GE Wind 19% 4 GE Wind 11% 4 Enercon 10% 5 Enercon 6% 5 Nordex Group 10% 28% 40% 6 Nordex Group 6% 6 Senvion 5% 7 United Power 5% 7 Suzlon 3% 8 Envision 5% 8 INOX 2% 9 Mingyang 4% 9 Goldwind <1% 14% 10% 10 Senvion 3% 10 ReGen Powertech <1% TPI Customer Market Share ~54% TPI Customer Market Share ~90% = TPI Customer = Chinese Players TPI s customers account for 99.8% of the U.S. onshore wind market and 54% of the global onshore market Source: MAKE 1. Figures are rounded to nearest whole percent 2. Figures for Siemens/Gamesa are pro forma for the April 2017 merger of Gamesa Corporatión Tecnológica and Siemens Wind Power 3. Reflects the number of dedicated lines once the transitions for GE in Iowa and Mexico are completed. August

6 Existing Contracts Provide for ~$6.4 Billion in Revenue through 2023 (1) Key Contract Terms Long-term Supply Agreements (1) Minimum Volume Visibility Mitigates Downside Risk Minimum Volume Obligations (MVOs) in place requiring the customer to take an agreed upon percentage of total production capacity or pay TPI its equivalent gross margin and operating costs associated with the MVO Iowa Incentivized Maximum Customer Volume Attractive Contract Negotiation Dynamic Pricing mechanisms encourage customers to purchase 100% of the contract volume, as prices progressively increase as volumes decrease Customers fund the molds for each production line incentivizing them to maximize TPI s production capability to amortize their fixed cost TPI typically renegotiates and extends contracts more than a year in advance of expiration in conjunction with blade model transitions Provisions allowing for reductions in lines generally provide for adequate time to replace a customer if a line reduction option is exercised Demand in locations where TPI already has a foothold (China, Turkey, Mexico) provides a substantial opportunity for synergies in the construction of new facilities TPI continues to expand its manufacturing facilities globally to meet increased demand Turkey Mexico China Long-term supply agreements provide for estimated minimum aggregate volume commitments from our customers of ~$4.5 billion and encourage our customers to purchase additional volume up to, in the aggregate, an estimated total contract value ~$6.4 billion through the end of 2023 (1) Long-term contracts with minimum volume obligations provide strong revenue visibility Note: Our contracts with some of our customers are subject to termination or reduction on short notice, generally with substantial penalties, and contain liquidated damages provisions, which may require us to make unanticipated payments to our customers or our customers to make payments to us (1) As of August 7, This chart depicts the term of the longest contract in each location August

7 $ Billions Prioritized Pipeline Annual Revenue Potential Wind Only > $2.0 Billion Pipeline Opportunities $2.0 $1.8 $1.6 $1.4 $ $1.70 $.60 Prioritized Pipeline 13 Prioritized Pipeline represents those opportunities we have prioritized to close by the end of 2019 Size of Total Addressable Market OEM(s) Share Long-term Revenue Potential $1.2 $1.0 $0.8 $0.6 $0.4 $0.2 $0.0 Lines Under Contract 50 Lines Under Contract 48 (1) (2) Prioritized Pipeline 13 lines 60-70m+ blades, >$45M/yr/line New and Existing Customers New and Existing Geographies Onshore and Offshore (1) Annual revenue potential based on 2018 wind blade revenue guidance plus impact of new contracts with Vestas and Enercon and new lines with GE announced in 2018 reduced by SGRE lines eliminated (2) Annual revenue potential based on $45 million per line per year and that all lines are in full production August

8 TPI Financial Targets Revenue Growth 2016 A 2019 E 20%-25% Adj. EBITDA Margin 12+% ROIC (1) 35+%. (1) ROIC target is based on an estimate of tax effected income from operations plus implied interest on operating leases divided by beginning of the period capital which includes total shareholders equity less cash and cash equivalents plus total outstanding debt and the net present value of operating leases. August

9 Global Market Growth Annual Installed Global Wind Capacity (GW): 2018E 2027E Onshore Offshore CAGR 20% ( ) CAGR 8% ( ) Annual installed wind capacity growth is projected to average 67GW between 2018 and 2027 and is propelled by offshore and an increase in developing wind markets, including Turkey and Mexico where TPI Composites is well positioned to succeed. Wind energy is a large and rapidly growing worldwide business Source: MAKE Q Global Wind Power Market Outlook Update August

10 U.S. Onshore Market Growth: E U.S. Annual Installed Wind Capacity (GW): 2018E 2025E MAKE UBS Key Demand Drivers Economics of Onshore Wind Corporate and Industrial Buyers Utilities Decarbonization Economics of Offshore Wind Repowering 18 Vehicle Electrification Wind energy The U.S. wind is a market large is expected and rapidly to experience growing consistent worldwide near-term growth business Source: MAKE Q Global Wind Power Market Outlook Update and UBS Securities LLC August

11 Diversification Strategy CLEAN TRANSPORTATION: In EVs, lighter weight equates to longer range or fewer batteries which drives cost By 2040, 55% of all new car sales and 33% of global fleet will be electric (1) Multiple development programs in: Passenger automotive EVs Commercial vehicles Growing with Proterra August

12 FINANCIAL SUMMARY

13 Financial Results GAAP Net Sales and Total Billings ($ in millions) (1) (2) (3) Adjusted EBITDA ($ in millions) (2) (3) $1,200 Sales Billings 44% CAGR 86% CAGR $120 $1,000 $800 $600 $586 $600 $755 $764 $955 $942 $100 $80 $60 $66 $100 $400 $321 $363 $40 $39 $200 $20 $14 $ ($0) Margin 4.2% 6.7% 8.8% 10.5% 1. Total billings refers to the total amounts we have invoiced our customers for products and services for which we are entitled to payment under the terms of our long-term supply agreements or other contractual agreements 2. See appendix for reconciliations of non -GAAP financial data as restated per the Company s retroactive adoption of ASC 606 and is unaudited. August

14 Q Highlights Q Highlights and Recent Company News Operating results and year-over-year increases compared to 2017 Net Sales and Adjusted EBITDA ($ in millions) Net sales were $230.6 million for the quarter down 3.7% primarily due to startup and transition activity $400 Net Sales Adjusted EBITDA Net loss for the quarter of $4.1 million compared to net income of $9.6 million in 2017 driven by startup and transition activity and the write-off of debt issuance costs Adjusted EBITDA for the quarter was $13.5 million or 5.8% of sales Vestas exercised options for 4 additional lines in our manufacturing hub in Matamoros, Mexico bringing the total number of lines in that facility to 6 $200 $240 $231 ENERCON signed a multiyear supply agreement for 2 manufacturing lines in our Turkey location. Adding ENERCON means TPI customers now represent 6 of the top 6 turbine manufacturers on an ex-china basis GE has agreed to extend our supply agreement in one of our Mexico plants by two years to 2022 and will increase the number of lines in that facility to 5 from the current 3 GE has agreed to transition to a larger blade model in our Iowa plant in early 2019 and eliminate its option to terminate the Iowa supply agreement prior to its December 2020 expiration. Set a new record high potential contract value of $6.4 billion across 50 dedicated manufacturing lines $0 Sets invoiced $26 $13 Q2 '17 Q2 '18 Q2 '17 Q2 ' Est. MW 1,620 1,544 Dedicated lines (1) Lines installed (2) (1) Number of wind blade manufacturing lines dedicated to our customers under long-term supply agreements at the end of the quarter. (2) Number of wind blade manufacturing lines installed that are either in operation, startup or transition at the end of the quarter August

15 Strong Financial Performance and Outlook Total Billings (1) (2) Adjusted EBITDA (1) (2) (3) $1,600 $1,400 22% Three-year CAGR $1,400 $160 30% Three-year CAGR $145 $1,200 $140 $1,000 $800 $764 $942 $1,025 $120 $100 $100 $600 $600 $80 $60 $66 $68 $400 $363 $40 $39 $200 $20 $14 $0 2014A 2015A 2016A 2017A 2018E 2019E $0 2014A 2015A 2016A 2017A 2018E 2019E Margin % 4.2% 6.7% 8.8% 10.5% 7.5% 10.4% Note: Dollars in millions (1) Estimates for are shown at the midpoint of ranges provided. See appendix for reconciliation of non-gaap financial data. (2) We have not reconciled our total expected billings for to expected net sales under GAAP or 2019 expected Adjusted EBITDA to expected Net Income because we have not yet finalized calculations necessary to provide the reconciliation, including expected changes in deferred revenue, and as such the reconciliations are not possible without unreasonable efforts. (3) 2017 as restated per the Company s retroactive adoption of ASC 606 and is unaudited. August

Q Earnings Call

Q Earnings Call Legal Disclaimer This presentation contains forward-looking statements within the meaning of the federal securities laws. All statements other than statements of historical facts contained in this presentation,