Company Presentation

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1 Company Presentation

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 forward-looking 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. Forward-looking 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) our future financial and operating performance, including our net sales, total billings, cost of goods sold, gross profit or gross margin, operating expenses, sets, estimated megawatts, dedicated manufacturing lines, lines installed, lines in startup, lines in transition, ability to generate positive cash flow, and ability to achieve or maintain profitability; (iii) the sufficiency of our cash and cash equivalents to meet our liquidity needs; (iv) our ability to attract and retain customers for our products, and to optimize product pricing; (v) competition from other wind blade manufacturers; (vi) the discovery of defects in our products; (vii) our ability to successfully expand in our existing markets and into new international markets; (viii) worldwide economic conditions and their impact on customer demand; (ix) our ability to effectively manage our growth strategy and future expenses; (x) our ability to maintain, protect and enhance our intellectual property; (xi) our ability to comply with existing, modified or new laws and regulations applying to our business; and (xii) the attraction and retention of qualified employees and key personnel. 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 forward-looking 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. 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 forwardlooking 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 forward-looking 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 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 (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 plus any losses on extinguishment of debt. We define net debt as the total principal amount of debt outstanding less unrestricted cash and 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. See the appendix for the reconciliations of certain non-gaap financial measures to the comparable GAAP measures. 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. 2

3 Key Investment Highlights Seasoned Management Team with Significant High Growth Experience Senior management team with significant experience managing high growth, world-class international operations Government and regulatory support Compelling Return on Invested Capital TPI s highly efficient manufacturing processes and joint capital investment with customers drives compelling returns on invested capital Strong track record in successfully ramping up and operating new facilities minimizes execution risk Capitalizing on Strong Wind Industry Growth, Blade Outsourcing Trends and Market Share Gains TPI s reputation as a reliable, global wind blade manufacturer and its focus on developing replicable and scalable manufacturing facilities allow it to capture opportunities in the large and growing wind energy markets Industry Leader with Strategic Global Footprint Largest U.S.-based independent manufacturer of composite wind blades with a global footprint serving the growing wind energy market worldwide Global presence enables even existing customers to expand into new markets Long-Term Supply Agreements Provide Significant Adoption Revenue of new Visibility mobile technologies Long-term supply agreements that provide up to $3.1 billion (1) in revenue and contain significant incentives for our customers to maximize the volume of wind blades purchased through shared capital investments and increased pricing at lower volumes that contribute to profitability at minimum volume levels (1) As of August 12, 2016 Unique Collaborative Dedicated Supplier Model Deeply integrated collaborative model where TPI dedicates capacity to build our customers unique blades which engenders stable, long-term relationships with customers, driving capital efficiency and insulation from potential short-term fluctuations Advanced Composite Technology and Production Expertise Provides Barrier to Entry Significant expertise in advanced composite technology and production enables TPI to manufacture lightweight and durable wind blades with near-aerospace grade precision at an industrial cost 3

4 Introduction to TPI Composites Business Overview Largest U.S.-based independent manufacturer of composite wind blades for the high-growth wind energy market Provides wind blades to some of the industry s leading OEMs such as: GE Wind, Vestas, Gamesa and Nordex/Acciona Operates six wind blade manufacturing plants and three tooling and R&D facilities across four countries: United States China Mexico Turkey New facility expected to commence operations in the second half of 2016 in Izmir, Turkey and two new facilities in Juarez, Mexico expected to commence operations in the second half of 2016 and the first half of 2017 As of June 30, 2016, we have 38 dedicated lines 30 of which were in operation during Q1 and Q2 of 2016 Long-term supply agreements with customers, providing contracted volumes that generate significant revenue visibility, drive capital efficiency and allow production of wind blades at a lower total delivered cost Founded in 1968 and headquartered in Scottsdale, Arizona Employees: Approximately 6,000 globally $600 $400 $200 $0 ($ in millions) $215 $321 Historical GAAP Net Sales $586 $96 $176 $150 $ Q1'15 Q1'16 Q2'15 Q2'16 Sets , Est. MW 1,173 2,029 3, , ,252 Dedicated lines (1) Lines installed (2) Strong Customer Base of Leading OEMs (1) Number of manufacturing lines dedicated to our customers under long-term supply agreements (2) Number of manufacturing lines installed that are operating, in transition or in startup 4

5 Wind Power Generation has Grown Rapidly and Expanded Globally in Recent Years From 2008 to 2015, the cumulative global power generating capacity of wind turbine installations has gone up more than 3.5 times, with compound annual growth in cumulative global installed wind capacity of 25% since 2000 Global Cumulative Installed Wind Capacity (GW) (1) Rapid growth driven by: Increasing cost competitiveness through technological advancement Offshore Asia and rest of the world onshore Supportive global policy initiatives Global population growth and electricity demand Increasing corporate commitment to socially responsible electricity consumption Americas onshore EMEA onshore Source: Bloomberg New Energy Finance. (1) Regional onshore figures presented for 2015 only. Wind energy is a large and rapidly growing worldwide business 5

6 TPI is Strategically Positioned Among the Highest Growing Global Markets Future Growth Expected to be Driven by Demand from New Markets (1) with TPI s Home Markets Forecast to Expand Significantly (1) EMEA onshore Americas onshore Offshore Asia and rest of the world (ROW) onshore CAGR Global: 12% Offshore: 28% Asia and ROW onshore: 14% Americas onshore: 13% EMEA onshore: 7% China U.S Installed capacity by end of 2015 (GW) Turkey Mexico Projected installed capacity btwn (GW) Projected installed capacity by end of 2020 (GW) CAGR TPI s home markets: 13% Mexico: 21% Turkey: 13% U.S.: 10% China: 14% Global installed capacity by end of 2015 (GW) Global projected installed capacity btwn (GW) Global projected installed capacity by end of 2020 (GW) TPI s home markets as a % of total global wind: 52% 57% 54% TPI s facilities in the United States, China, Mexico and Turkey create a geographically-diverse, global production platform to meet its customers needs in key large and growing wind markets Source: Bloomberg New Energy Finance. (1) Totals may not add due to rounding. 6

7 Strong Customer Base of Industry Leaders Key Customers with Significant Market Share Current Customer Mix 38 Dedicated Lines Rank = TPI Customer Global Onshore Wind OEM = Chinese Players Share (1) Rank OEM Global Onshore Wind exc. China Share (1) 1 Vestas 13% 1 Vestas 22% 2 Goldwind 11% 2 GE Wind (2) 18% 3 GE Wind (2) 10% 3 Enercon 14% 4 Enercon 8% 4 Siemens (3) 11% 5 Siemens (3) 6% 5 Gamesa (3) 9% 6 Gamesa (3) 5% 6 Nordex / Acciona 8% 7 United Power 5% 7 Senvion 7% 8 Nordex / 4% 8 Suzlon 3% Acciona 9 Mingyang 4% 9 Goldwind 1% 10 Envision 4% 10 Sinovel <1% TPI Customer Market Share ~32% ~56% TPI has supply agreements with four of the top eight global OEMs, which represent approximately 32% of the global onshore wind energy market and constitute four of the top six and approximately 56% of that market excluding China. Additionally, these customers account for 82% of the U.S. onshore wind market Source: MAKE. (1) Figures are rounded to nearest whole percent. (2) Figures for GE Wind are pro forma for the acquisition of Alstom S.A., which was completed in November (3) In June 2016 Siemens and Gamesa announced a planned merger of Siemens wind business with Gamesa. 7

8 Declining Costs Allow Wind Energy to be More Competitive with Conventional Generation The cost of onshore wind has declined by over 61% in the last six years, with costs expected to continue to fall due to progress made in reducing the costs of turbines, improving capacity factors and lower operating and maintenance costs over the next decade Wind blades represent the second largest component of the total cost of wind turbines. The advancement of wind blade technology, including increased blade length / rotor diameter, has increased energy capture and played a fundamental role in reducing levelized cost of energy (LCOE) for onshore wind Global Levelized Cost of Power Generation Ranges by Technology ($/MWh) (1) Global Onshore Wind LCOE Over Time ($/MWh) $250 Fossil Fuels Onshore Wind $250 Onshore wind LCOE Mean Onshore wind LCOE Range $200 $200 $169 $150 $150 $148 $100 $100 $101 $99 $92 $95 $95 $81 $77 $50 $50 $0 Onshore wind Solar PV utility CCGT gas Bioenergy Geothermal Coal Solar Offshore thermal wind w/storage $0 $50 $48 $45 $37 $ Global levelized cost of energy for onshore wind generation has become increasingly competitive and is now on par with new combined cycle gas turbines with an additional 15% decline expected by 2021 Source: Lazard Levelized Cost of Energy Analysis (version 9.0), Bloomberg New Energy Finance, MAKE. (1) Costs are on an unsubsidized basis. Ranges reflect differences in resources, geography, fuel costs and cost of capital, among other factors. 8

9 Global Policy Support Coupled with Corporate Initiatives Expected to Drive Additional Growth 1 U.S. Policy Initiatives U.S. policy expected to support continued domestic wind capacity installation Extension of the Wind Production Tax Credit (PTC) through 2019 with recent IRS clarifications expanding PTC eligibility allowing developers two additional years to construct projects EPA s Clean Power Plan Renewable Portfolio Standards Recent global initiatives aimed at promoting the growth of renewable energy including wind Large European Union members have implemented renewable energy targets for 2020 of between 13% and 49% of all energy use derived from renewable energy sources China is targeting 250 GW of gridconnected wind capacity by International Policy Initiatives Corporate Procurement 4 Increasing focus in board rooms regarding the economic and social benefits of adopting low-cost wind energy In 2015, U.S. corporate, non-profit and government entities procured 2.4 GW of wind capacity, an increase of 12x from 2008 >50 leading multinationals such as Nike, Walmart, IKEA, BMW, Coca Cola and Proctor & Gamble have taken the RE100 pledge, organized by the Climate Group, to transition to 100% renewable energy Paris Agreement is a landmark deal marking a significant commitment by the international community to further reduce fossil fuel consumption The Paris Agreement is legally binding, but does not implement sanctions for failing to meet emissions reduction targets Effective in 2020, once it has been ratified by 55 countries representing at least 55% of global greenhouse gas emission COP21 Paris Climate Talks 3 Longer term policy visibility and an increase in corporate procurement is expected to drive additional growth over the next decade Source: Bloomberg New Energy Finance, China National Development and Reform Commission 9

10 The Industry is Shifting to a Predominantly Outsourced Wind Blade Manufacturing Model 100% 80% 60% 40% 20% 0% Global Wind Blade Manufacturing: Outsourced vs. Insourced 48% 52% 41% 59% Outsourced Insourced TPI Global Wind Blade Market Share (1) Outsourcing Trends Outsourcing manufacturing to specialized partners such as TPI has become a key strategy to achieve more cost effective wind blade production Vertically integrated OEMs have begun to outsource wind blade manufacturing due to global talent constraints and the need for efficient capital allocation combined with global growth demands Some have sold or shuttered in-house tower and blade manufacturing facilities in favor of an outsourced manufacturer High transportation costs require close proximity of blade manufacturing to wind farms or seaports Geographically distributed, high precision blade manufacturing is more cost effective when performed by diversified, specialized manufacturers TPI is the largest U.S.-based independent manufacturer of composite wind blades and is well positioned to capitalize on global industry trends 3% TPI Share Increase: ~100% LM Wind Power Share Decrease: (~21%) 14% 6% % TPI LM Wind Power Continues to outsource wind blade manufacturing across North America, Asia and Europe TPI selected as manufacturer of Vestasdesigned blades in China and Turkey Currently outsources to one facility in Mexico and will expand to a second facility in the second half of 2016 Several of the wind industry s largest participants have chosen TPI as their leading outsourced blade manufacturer Source: MAKE (2013, 2017 based on % of MW). (1) TPI s market share based on TPI MW relative to MAKE OEM total onshore MW for 2013 and LM Wind Power market share represents the company s market share for 2013 and 2015 as disclosed in its Annual Reports. 10

11 TPI is Well Positioned to Take Advantage of the Market Movement Towards Larger Blades Wind Turbine & Blade Overview Turbine Cost by Component Movement Towards Larger Blade Lengths A typical wind turbine consists of many components, the most important being the wind blades, gear box, electric generator and tower When the wind blows, the combination of the lift and drag of the air pressure on the wind blades rotate the rotor, which drives the gearbox and generator to create electricity Blades and pitch systems remain the most important elements in reducing LCOE driven by ongoing improvements in aerodynamic efficiency, load controls and cost reductions Turbine Cost Breakdown by Component (1) The trend toward larger wind blades indicates the potential phase out of smaller wind blades, as larger blades have the greatest impact on energy efficiency and LCOE reduction 787 aircraft, 60m A Typical Wind Turbine 2% 10% 4% 25% Blade length and air foil shape contribute to efficiency in turning kinetic energy from the rotor into electricity 1. Rotor Blade 2. Pitch drive 3. Nacelle 4. Brake 5. Low-speed shaft 6. Gear box 7. High-speed shaft 8. Generator 9. Heat exchanger 10. Controller 11. Anemometer 12. Wind vane 13. Yaw drive 14. Tower 8% 12% Tower Drivetrain Converter Generator 19% 20% Wind Blades Hub & Pitch Structure Balance of Nacelle Wind blades represent ~15% of total installed turbine costs Source: MAKE, American Wind Energy Association. (1) Costs included in turbine cost breakdown represent 77% of total installed turbine costs. Remaining 23% not represented in chart. Global Blade Length Breakdown 26% 34% 8% 14% 18% 33% 23% 16% 14% 1% 2% 11% 2015A 2020E <45.0m m m m m >70.0m On par with the movement toward larger wind blades, TPI blades are generally 50-60m in length 11

12 Strong Barriers to Entry will allow TPI to Capture Additional Market Share Wind blades are a critical component of our customers strategy and, along with supply chain optimization, plays an integral role bringing down LCOE We believe that our extensive experience and track-record in delivering high quality wind blades combined with our established global scale and strong customer relationships creates a significant barrier to entry and is the foundation of our leadership position Extensive Expertise Strong track record of delivering high quality wind blades to diverse, global markets, and of developing replicable and scalable manufacturing facilities and processes Reputation for Reliability Over 26,000 wind blades produced since 2001, with an excellent field performance record in a market where reliability is critical to our customers success Established Global Scale We expand our manufacturing footprint in coordination with our customers needs, scaling our capacity to meet demand in markets across the globe Customer Stickiness Dedicated capacity and collaborative approach of manufacturing wind blades to meet customer specifications promotes significant customer loyalty and creates higher switching costs TPI s ability to capitalize on recent growth trends in the wind energy market and outsourcing trends has allowed it to grow its revenue by 172% from 2013 to 2015 while expanding its global manufacturing footprint over the same period Source: MAKE. 12

13 Global Footprint Strategically Optimized for Regional Industry Demand TPI has strategically built a strong global footprint that takes advantage of proximity to large existing regional markets, adjacent new markets and seaports for global export Demonstrated ability of global expansion TPI has developed a strong process to enter new markets, with an excellent track record of ramping and operating new facilities Significant know how in creating replicable and scalable manufacturing processes for ramping facilities globally Has successfully reduced costs and operational risks through the utilization of existing teams that have personally led similar startup processes TPI s operational expertise provides for a crucial competitive advantage as it continues to ramp new facilities in 2016 and beyond Americas 2015 Capacity: 99 GW Proj. Install CAGR: 13% Europe, the Middle East and Africa 2015 Capacity: 138 GW Proj. Install CAGR: 7% Asia and rest of the world 2015 Capacity: 174 GW Proj. Install CAGR: 14% Headquarters: Scottsdale, AZ Wind Blade Manufacturing Facilities Tooling / R&D Facilities 12 facilities in 4 countries; over 3.5 million square feet of manufacturing facilities (1) Source: Bloomberg New Energy Finance. Note: Onshore wind capacity and installation statistics shown. Bubble sizes represent projected onshore wind generation capacity installations from 2016 to 2020 in GW. (1) Includes new manufacturing facilities under construction in Mexico and Turkey expected to commence operations in the second half of 2016 and another new facility in Mexico expected to commence operations in the first half of

14 Advanced Composite Technology and Production Expertise Provides Barrier to Entry Near-Aerospace Precision Blades TPI technology toolbox includes highly advanced materials, tooling, process and inspection methods & design for manufacturability (DFM) Precision moulding and assembly systems deliver precise blades and components Blade tolerances & reliability require relentless quality control Manufactured to Last Advanced process technology creates lighter, stronger, and more reliable composite structures ~26,000 blades produced with an excellent field performance record Low Cost/High Quality Production Optimization of labor and transportation costs from each of TPI s global sites Innovation effort continues to improve performance while driving down cost of materials and manufacturing process Economies of scale and existing regional infrastructure drive down direct costs Customer partnerships include shared R&D and engineering expertise to optimize manufacturing Global sourcing creates purchasing power with suppliers Joint Design Optimization with Customers As production costs improve, TPI is able to help further reduce LCOE and cement strong customer partnerships Blade technology has the greatest impact on reducing LCOE and is thus a key R&D focus for material suppliers and turbine OEMs seeking to scale rotors cost effectively 14

15 Dedicated Supplier Model Encourages Stable Long-Term Customers Deeply Integrated Partnership Model Dedicated TPI capacity provides outsourced volume that customers can depend upon Joint investment in manufacturing with tooling funded by customers Long-term agreements with incentives for maximum volumes Strong visibility into next fiscal year volumes Shared pain/gain on increases and decreases of material costs and some production costs Cooperative manufacturing and design efforts optimize performance, quality and cost Global presence enables customers to repeat models in new markets High Customer Value Proposition Build-to-spec blades High quality, low cost Dedicated capacity Industry leading field performance Global operations Strong Customer Base of Leading OEMs 15

16 Existing Contracts Provide for up to $3.1 Billion in Revenue Key Contract Terms Long-term Supply Agreements Minimum Volume Visibility Mitigates Downside Risk Minimum Volume Obligations (MVOs) in place for all but three lines, 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 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 Turkey Attractive Contract Negotiation Dynamic TPI typically renegotiates and extends contracts more than a year in advance of expiration in conjunction with blade model transitions. Termination provisions generally provide for adequate time to replace a customer if a contract is not extended (however, all contracts have been extended to date) 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 Mexico China Long-term supply agreements provide for estimated minimum aggregate volume commitments from our customers of $1.6 billion and encourage our customers to purchase additional volume up to, in the aggregate, an estimated total contract value of over $3.1 billion through the end of 2021 (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 June 30, 2016 and including extension of Nordex/Acciona supply agreement in Turkey in August

17 High Quality Management Team, Board and Workforce Steve Lockard Chief Executive Officer Bill Siwek Chief Financial Officer Mark McFeely Chief Operating Officer Wayne Monie Chief Manufacturing Technology Officer Lars Moller Executive Vice President T.J. Castle Senior Vice President Management Team Joined TPI in Prior to TPI, served as the Vice President of Satloc and was a founding officer of ADFlex solutions, a NASDAQ listed company Current Board Member and Co-Chair of the Policy Committee for the American Wind Energy Association (AWEA) 30+ years of experience building high-growth, technology related manufacturing companies Joined TPI in Prior to TPI, was CFO for T.W. Lewis Company, EVP of Talisker Inc., President & CFO of Lyle Anderson Company and was a Partner at Arthur Andersen in both Audit and Business Consulting Joined TPI in Prior to TPI, was SVP and COO of Remy International, VP Operations of Meggitt Safety Systems, Inc. and held various leadership positions with Danaher Corporation and Honeywell International, Inc. Joined TPI in Served as VP of Operations from and COO until Prior to TPI, was Vice President, Manufacturing for First Solar, VP and GM of Satloc and GM of Rogers Corp. EVP, Business Development and Strategy since April 2016 Joined TPI in Served as SVP EMEA until April Prior to TPI, was CEO of North America Operations for Global Energy Services and Group Senior VP for Vestas Wind Systems among others Senior VP, North American Wind Operations, Global Operational Excellence since November 2015 Prior to TPI, held a number of positions with Honeywell including most recently VP of Integrated Supply Chain and prior to that was Global VP of the Honeywell Operating System for Aerospace Mexico ~1,560 U.S. ~1,100 Board of Directors Name Age Affiliation Steve Lockard 55 Stephen Bransfield Michael L. DeRosa Philip J. Deutch 51 Paul G. Giovacchini 59 Jack A. Henry 72 James A. Hughes 53 Daniel G. Weiss 48 President, Chief Executive Officer and Director Board Member of AWEA Director Previously VP, General Electric Director MD, Element Partners Director MP, NGP Energy Technology Partners Director and Chairman of the Board Independent consulting advisor to Landmark Partners Director MD, Sierra Blanca Ventures Director Former CEO and current board member of First Solar, Inc. Director MP, Angeleno Group Employees at a Glance ~6,000 employees worldwide EMEA ~1,450 Asia ~1,890 17

18 Key Company Highlights Capitalizing on Strong Wind Industry Growth, Blade Outsourcing Trends and Market Share Gains Industry Leader with Strategic Global Footprint Advanced Composite Technology and Production Expertise Provides Barrier to Entry Unique Collaborative Dedicated Supplier Model Long-Term Supply Agreements Provide Significant Revenue Visibility Compelling Return on Invested Capital Seasoned Management Team with Significant High Growth Experience 18

19 Financial Summary 19

20 Strong Financial Performance Historical Financials GAAP Net Sales and Total Billings ($ in millions) (1)(2) Adjusted EBITDA ($ in millions) (2) GAAP Net Sales Total Billings Adjusted EBITDA Margins 3.9% 4.2% 6.7% (0.1%) 6.5% 8.2% 10.7% $700 $600 $500 $600 $586 $45 $40 $35 $30 $39.3 $400 $300 $200 $100 $0 $221 $215 $363 $ Q $176 $175 $117 $96 Q $196 $194 $150 $140 Q Q $25 $20 $15 $10 $5 ($0) $8.4 $13.5 ($0.1) Q $11.4 $12.3 Q Q $20.8 Q Sets , Est. MW 1,173 2,029 3, , ,252 Lines (3) Ded. Lines (4) , ,173 2,029 3, , , (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 pages for reconciliations of non-gaap financial data. (3) Number of manufacturing lines installed and either in operation, startup or transition. (4) Number of manufacturing lines dedicated to our customers under long-term supply agreements. Dedicated manufacturing lines may be greater than total manufacturing line capacity in instances where we have signed new supply agreements for manufacturing facilities that are under construction or have not yet been built. 20

21 Q Financial Highlights (unaudited) Select Financial Data Q Performance Compared to Q Net Sales $194.3 $ % Total Billings (1) $196.1 $ % Net Income $11.6 $ % Adjusted EBITDA (1) $20.8 $ % Adjusted EBITDA Margin 10.7% 8.2% 250bps Net debt (before IPO and conversion transactions) (1) $93.5 $110.4 ($16.9) Free Cash Flow (1) $8.0 ($10.5) $18.5 Capital Expenditures $3.4 $9.7 ($6.3) Key Performance Indicators Sets % Estimated Megawatts 1, % Dedicated Manufacturing Lines lines Lines Installed line Lines in Startup lines Lines in Transition lines Note: Dollars in millions. (1) See pages for reconciliations of non-gaap financial data Q Q

22 Pro Forma Capital Structure Post IPO As of June 30, 2016 ($ in thousands) Actual Conversion of Sub Debt and Payoff of Customer Advance Conversion of Preferred Stock Estimated Net Proceeds of IPO Pro Forma Cash and cash equivalents $ 31,057 $ (2,000) $ 69,490 $ 98,547 Debt: Current maturities of long-term debt $ 27,328 $ - $ - $ - $ 27,328 Long-term debt, net of debt issuance costs, discount and current maturities 92,364 (8,438) ,926 Total debt 119,692 (8,438) ,254 Total Convertible and senior redeemable preferred shares and warrants 203,734 - (203,734) - - Shareholders' Equity(Deficit): Common shares, $0.01 par value, Paid-in capital - 11, ,522 69, ,806 Accumulated other comprehensive income (850) (850) Accumulated deficit (182,788) (1,562) (184,350) Total shareholders' equity(deficit) (183,596) 10, ,734 69,490 99,943 Total Capitalization $ 139,830 $ 1,877 $ - $ 69,490 $ 211,197 22

23 Income Statement Summary (unaudited) Pro Forma Three Months Ended June 30, Three Months Ended June 30, Change (1) $ % ($ in thousands, except per share amounts) Net sales $ 149,739 $ 194,255 $ 194,255 $ 44, % Gross profit $ 12,150 $ 22,818 $ 22,818 $ 10, % Gross profit % 8.1% 11.7% 11.7% 360bps General and administrative expenses $ 2,899 $ 5,340 $ 5,340 $ 2, % General and administrative expenses % 1.9% 2.7% 2.7% 80bps Income from operations $ 9,251 $ 17,478 $ 17,478 $ 8, % Income before income taxes $ 5,314 $ 13,508 $ 13,508 $ 8, % Net income $ 4,090 $ 11,555 $ 11,555 $ 7, % Net income attributable to preferred shareholders $ 2,356 $ 2,438 $ - $ % Net income attributable to common shareholders $ 1,734 $ 9,117 $ 11,555 $ 7, % Weighted-average common shares outstanding: Basic 4,238 4,238 26,549 Diluted 4,244 4,244 26,555 Basic income per common share $ 0.41 $ 2.15 $ 0.44 $ 1.74 Diluted income per common share $ 0.41 $ 2.15 $ 0.44 $ 1.74 Non-GAAP Metrics Total billings (2) $ 139,602 $ 196,146 $ 196,146 $ 56, % EBITDA (2) $ 11,867 $ 20,776 $ 20,776 $ 8, % EBITDA margin 7.9% 10.7% 10.7% 280bps Adjusted EBITDA (2) $ 12,300 $ 20,794 $ 20,794 $ 8, % Adjusted EBITDA margin 8.2% 10.7% 10.7% 250bps (1) Includes conversion of preferred stock, preferred stock warrants and subordinated convertible promissory notes immediately prior to IPO (2) See pages for reconciliations of Non-GAAP financial data 23

24 Key Balance Sheet and Cash Flow Data (unaudited) Pro Forma Adjusted Pro December 31, June 30, June 30, 2016 Forma June 30, ($ in thousands) (1) 2016 (2) Assets and Liabilities: Cash and cash equivalents $ 45,917 $ 31,057 $ 31,057 $ 98,547 Restricted cash $ 1,760 $ 2,408 $ 2,408 $ 2,408 Accounts receivable $ 72,913 $ 87,556 $ 87,556 $ 87,556 Inventories $ 50,841 $ 52,664 $ 52,664 $ 52,664 Inventories held for customer orders $ 49,594 $ 50,138 $ 50,138 $ 50,138 Deferred revenue $ 65,520 $ 65,656 $ 65,656 $ 65,656 Total debt-current and noncurrent, net $ 129,346 $ 119,692 $ 111,254 $ 111,254 Net debt (3) $ 90,667 $ 93,534 $ 83,534 $ 16,044 Three Months Ended June 30, ($ in thousands) Cash Flow: Net cash provided by (used in) operating activities $ (761) $ 11,314 Capital expenditures $ 9,705 $ 3,356 Free cash flow (3) $ (10,466) $ 7,958 (1) Includes conversion of preferred stock, preferred stock warrants and convertible subordinated promissory notes immediately prior to the IPO (2) Includes net proceeds of IPO and repayment of customer advance (3) See page 30 for a reconciliation of net debt and free cash flow 24

25 2016 Guidance 25

26 Confirming Guidance for the Second Half and Full Year 2016 (as of August 12, 2016) Total billings (1) Second half of 2016 $380M to $390M Full year 2016 $750M to $760M Sets Second half of ,110 to 1,125 Full year ,147 to 2,162 Estimated megawatts Second half of ,550 to 2,590 Full year ,915 to 4,955 Dedicated manufacturing lines at year-end 38 to 46 Total lines installed First two quarters of Second half of to 36 Lines in transition First two quarters of Second half of Lines in startup First two quarters of Second half of to 6 Capital Expenditures Second half of 2016 $38M to $43M (1) We have not reconciled our expected Total billings to expected net sales as calculated under GAAP because we have not yet finalized calculations necessary to provide the reconciliation, including the expected change in deferred revenue, and as such the reconciliation is not possible without unreasonable efforts. 26

27 Appendix - Non-GAAP Information This presentation includes unaudited non-gaap financial measures including total billings, EBITDA, adjusted EBITDA, net 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 (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 plus any loss on extinguishment of debt. We define net debt as the total principal amount of debt outstanding less unrestricted cash and 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. See below for a reconciliation of certain non-gaap financial measures to the comparable GAAP measures. 27

28 Non-GAAP Reconciliations (unaudited) Net sales is reconciled to total billings as follows: Net income is reconciled to EBITDA and adjusted EBITDA as follows: Pro Forma Three Months Ended June 30, (3) ($ in thousands) Net sales $ 215,054 $ 320,747 $ 585,852 $ 95,589 $ 176,110 $ 149,739 $ 194,255 $ 194,255 Change in deferred revenue: Year Ended December 31, Three Months Ended March 31, Three Months Ended June 30, Blade-related deferred revenue at beginning of period (1) (16,730) (20,646) (59,476) (59,476) (65,520) (76,534) (65,027) (65,027) Blade-related deferred revenue at end of period (1) 20,646 59,476 65,520 76,534 65,027 68,226 65,656 65,656 Foreign exchange impact (2) 2,087 3,172 8,211 4,443 (1,079) (1,829) 1,262 1,262 Change in deferred revenue 6,003 42,002 14,255 21,501 (1,572) (10,137) 1,891 1,891 Total billings $ 221,057 $ 362,749 $ 600,107 $ 117,090 $ 174,538 $ 139,602 $ 196,146 $ 196,146 Pro Forma Three Months Ended June 30, (3) ($ in thousands) Net income (loss) $ 1,279 $ (6,648) $ 7,682 $ (5,737) $ 1,746 $ 4,090 $ 11,555 $ 11,555 Adjustments: Year Ended December 31, Three Months Ended March 31, Three Months Ended June 30, Depreciation and amortization 5,250 7,441 11,416 2,401 3,011 2,909 3,162 3,162 Interest expense (net of interest income) 3,319 7,050 14,404 3,492 3,891 3,644 4,106 4,106 Income tax provision (benefit) (3,346) 925 3,977 (120) 2,303 1,224 1,953 1,953 EBITDA 6,502 8,768 37, ,951 11,867 20,776 20,776 Realized loss (gain) on foreign currency remeasurement 1,892 1,743 1,802 (163) Share-based compensation expense Loss on extinguishment of debt - 2, Adjusted EBITDA $ 8,430 $ 13,457 $ 39,281 $ (127) $ 11,390 $ 12,300 $ 20,794 $ 20,794 Note: Footnote references on the following page 28

29 Non-GAAP Reconciliations (continued) (unaudited) (1) Total billings is reconciled using the blade-related deferred revenue amounts at the beginning and the end of the period as follows: Year Ended December 31, Three Months Ended March 31, Three Months Ended June 30, Pro Forma Three Months Ended June 30, (3) ($ in thousands) Blade-related deferred revenue at beginning of period $ 16,730 $ 20,646 $ 59,476 $ 59,476 $ 65,520 $ 76,534 $ 65,027 $ 65,027 Non-blade related deferred revenue at beginning of period 1, , Total current and noncurrent deferred revenue at beginning of period $ 18,242 $ 21,403 $ 59,476 $ 59,476 $ 65,520 $ 79,885 $ 65,027 $ 65,027 Blade-related deferred revenue at end of period $ 20,646 $ 59,476 $ 65,520 $ 76,534 $ 65,027 $ 68,226 $ 65,656 $ 65,656 Non-blade related deferred revenue at end of period , Total current and noncurrent deferred revenue at end of period $ 21,403 $ 59,476 $ 65,520 $ 79,885 $ 65,027 $ 68,226 $ 65,656 $ 65,656 (2) Represents the effect of the difference in the exchange rate used by our various foreign subsidiaries on the invoice date versus the exchange rate used at the period-end balance sheet date. (3) Includes conversion of preferred stock, preferred stock warrants and convertible subordinated promissory notes immediately prior to the IPO 29

30 Non-GAAP Reconciliations (continued) (unaudited) Net debt is reconciled as follows: ($ in thousands) December 31, 2015 June 30, 2016 Pro Forma June 30, 2016 (1) Adjusted Pro Forma June 30, 2016 (2) June 30, 2015 Total debt, net of debt issuance costs and discount $ 129,346 $ 119,692 $ 111,254 $ 111,254 $ 114,411 Add debt issuance costs 4,220 3,390 3,337 3,337 3,773 Add discount on debt 3,018 1, ,526 Less cash and cash equivalents (45,917) (31,057) (31,057) (98,547) (12,325) Net debt $ 90,667 $ 93,534 $ 83,534 $ 16,044 $ 110,385 (1) Includes conversion of preferred stock, preferred stock warrants and convertible subordinated promissory notes immediately prior to the IPO (2) Includes net proceeds of IPO after repayment of customer advance. Free cash flow is reconciled as follows: Three Months Ended June 30, ($ in thousands) Net cash provided by (used in) operating activities $ (761) $ 11,314 Less capital expenditures (9,705) (3,356) Free cash flow $ (10,466) $ 7,958 30

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