| | Local Wind Industry- Opportunities & Challenges Gökhan Serdar– CFO - EMEA Region 13 November 2018 Company Presentation 1
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Local Wind Industry- Opportunities & Challenges
Gökhan Serdar– CFO - EMEA Region
13 November 2018Company Presentation 1
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Introduction to TPI Composites
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,
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 • Mexico
• China • 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
Founded in 1968 and headquartered in Scottsdale, Arizona
Approximately 9,000 employees globally
13 November 2018 2Company Presentation
Business Overview Strong Historical Financial Results
Revenue
CAGR
44%
2013-2017
Adjusted
EBITDA
CAGR
86%
2013-2017
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TPI’s customers account for 99.8% of the U.S. onshore wind market and 54% of the global onshore
market
Current Customer Mix – 50(3) Dedicated Lines
3Company Presentation
= TPI Customer
Global Onshore Wind Global Onshore Wind exc.
China
Rank OEM
2015–2017
Share(1) Rank OEM
2015–2017
Share(1)
1 Vestas 15% Vestas 25%
2 SGRE(2) 13% SGRE(2) 21%
3 Goldwind 12% GE Wind 19%
4 GE Wind 11% Enercon 10%
5 Enercon 6% Nordex Group 10%
6 Nordex Group 6% Senvion 5%
7 United Power 5% Suzlon 3%
8 Envision 5% INOX 2%
9 Mingyang 4% Goldwind <1%
Senvion 3% ReGen Powertech <1%
TPI Customer
Market Share ~54%
TPI Customer
Market Share~90%
1
2
4
5
7
3
6
8
9
= Chinese Players
1
2
5
6
3
4
9
7
8
10
Source: MAKE
(1) Figures are rounded to nearest whole percent
(2) Figures for Siemens/Gamesa are pro forma for the Apri l 2017 merger of Gamesa Corporatión Tecnológica and Siemens W ind P ower
(3) Reflects the number of dedicated l ines once the transi tions for GE in Iowa and Mexico are completed.
40%
10%14%
28%
4%4%
Key Customers with Significant Market Share
10
Strong Customer Base of Industry Leaders
13 November 2018
| | September 2018 4Company Presentation
The Industry is Shifting to a Predominantly Outsourced Wind Blade
Manufacturing Model
(1) Source: MAKE – based on % of MW
(2) TPI’s market share based on TPI MW relative to MAKE OEM total onshore MW for 2013, 2016 and 2017
38%51%
62%49%
0%
20%
40%
60%
80%
100%
2009 2017
Outsourced Insourced
Vertically integrated OEMs have begun to outsource wind blade
manufacturing due to:
• global talent constraints
• the need for efficient capital allocation
• the need to accelerate access to emerging markets
• the need for supply chain optimization
Some have sold or shuttered in-house tower and blade manufacturing
facilities in favor of an outsourced manufacturer
Geographically distributed, high precision blade manufacturing is more cost
effective when performed by diversified, specialized manufacturers
TPI is the only independent manufacturer of composite wind blades with a
global footprint and is well positioned to capitalize on global industry trends
Expected to continue to outsource a significant
percentage of blade needs notwithstanding
acquisition of LM Wind Power
TPI selected as manufacturer of Vestas-
designed blades in China, Mexico and Turkey
Currently outsources to TPI in Mexico and
Turkey
3%
9%
13%
2013 2016 2017
TPI Share Increase:
~4X
Future market share increases
expected to be driven by:
✓ Continuation of
outsourcing
✓ LM Wind Power customer
attrition
✓ Advantages from global
footprint
Several of the wind industry’s largest participants have chosen TPI as their leading outsourced blade manufacturer
Outsourcing Trends Global Wind Blade Manufacturing: Outsourced vs. Insourced (1)
TPI Global Wind Blade Market Share 2013 – 2017 (2)
| | TPI CONFIDENTIAL
TPI TR Mile Stones
13 November 2018
2012 2013 2014 2015 2016 2017
◼ Joint venture with AL-KE◼ Signed agreement with 1st
customer (GE for 48,7)◼ TK 1 Hall A construction◼ First blade is delivered
◼ ISO 9001 certificated◼ New blade model
introduction (GE-50,2)
◼ 1000. GE blade is produced.◼ Groundbreaking for TK2
◼ TK2 production started◼ Signed agreement with 3rd
customer (Vestas for V126)◼ 1000. NX blade is produced
◼ TK 1 Hall B construction◼ Signed agreement with 2nd
customer (NX for 58,5)
◼ IMS certification(ISO9001&14001&18001)
◼ New blade model introduction (NX –65.5)
◼ GE production finished◼ Signed agreement with 4th customer
SGRE (G132)
2 Molds
5 Molds
6 Molds
6 Molds
8 Molds
8 Molds
Headcount:375 Headcount:1099 Headcount:1586
Headcount:539 Headcount:1312 Headcount:1637
2018
◼ New blade model introduction (V136)
◼ SA extended for 2nd mold with SGRE
◼ IMS recertification done◼ Signed agreement with 5th
customer Enercon
13 Molds
Headcount:2750
5
| | TPI CONFIDENTIAL 13 November 2018
TR Plant Key Data – TK1 and TK2
6
| | TPI CONFIDENTIAL
Turkey Blade Shipments
November 13, 2018
CANADA
IRELAND
SCOTLAND
ENGLAND
SWEDEN
FINLAND
POLAND ROMANIA
CROATIA
MONTENEGRO
GERMANY
FRANCE
ITALY
TURKEY
AUSTRALIA
URUGUAY
SOUTH AFRICA
US
| | TPI CONFIDENTIAL
Opportunities/ Challenges
Opportunities
• Turkey as the Hub in EMEA for Component Manufacturing
• Potential in Growth in Turkish Wind Market- 1 GW/ Year in Next 10 years
• Continuity of YEKA’s
• Local Sub-Supplier Development in Turkey- Anchor Investment
• Human Capital in Turkey
Challenges
• Uncertainty about Local Component Support Beyond 2020
• Licenses Won with Negative Prices
• Current Financial Outlook- Financing Challenges
• Country Risk Perception
• Competitiveness
813 November 2018
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