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8-K - TECHPRECISION FORM 8-K - TECHPRECISION CORP | tpcs8k.htm |
Exhibit 99.1
Annual Shareholder Meeting
December 5, 2012
© 2012. All rights reserved.
© 2012. All rights reserved.
2
Safe Harbor Statement
Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995: Any statements set
forth in this presentation that are not historical facts are forward-looking statements that involve risks
and uncertainties that could cause actual results to differ materially from those in the forward-looking
statements, which may include, but are not limited to, such factors as unanticipated changes in
product demand, increased competition, downturns in the economy, failure to comply with specific
regulations pertaining to government projects, fluctuation of revenue due to the nature of project
lifecycles, and other information detailed from time to time in the Company filings and future filings
with the United States Securities and Exchange Commission. The forward-looking statements
contained in this presentation are made only of this date, and the Company is under no obligation to
revise or update these forward-looking statements.
forth in this presentation that are not historical facts are forward-looking statements that involve risks
and uncertainties that could cause actual results to differ materially from those in the forward-looking
statements, which may include, but are not limited to, such factors as unanticipated changes in
product demand, increased competition, downturns in the economy, failure to comply with specific
regulations pertaining to government projects, fluctuation of revenue due to the nature of project
lifecycles, and other information detailed from time to time in the Company filings and future filings
with the United States Securities and Exchange Commission. The forward-looking statements
contained in this presentation are made only of this date, and the Company is under no obligation to
revise or update these forward-looking statements.
Table of Contents
© 2012. All rights reserved.
3
• Strategic Vision
• Markets Focus
• Market Growth
• Expansion Plans
• Maximize Ranor Performance
Strategic Vision
4
Expand the Company revenue to $100-million plus in
the next 3 - 5 years; primarily through “organic
growth” with strategic customers/products in the
medical, defense, nuclear, alternative energy
markets and constant review of “inorganic growth”
through acquisition
the next 3 - 5 years; primarily through “organic
growth” with strategic customers/products in the
medical, defense, nuclear, alternative energy
markets and constant review of “inorganic growth”
through acquisition
© 2012. All rights reserved. Not for use or disclosure without the expressed written permission from TechPrecision Corp.
Strategic Vision
5
• Product Solution involves supplying the engineering, large-parts, small parts (mechanical
and electrical) in a complete/tested solution
and electrical) in a complete/tested solution
• Product Viability: Products must have long-term opportunity (>5-years) in order for the
Company to justify investments and support predictable growth/profitability
Company to justify investments and support predictable growth/profitability
Electro/Mechanical
Actuation Cylinder
Assembled and
Tested Assembly
Tested Assembly
Small Value-ad Parts
(Completed
Assembly)
(Completed
Assembly)
Support and Install
Frame (Completed
Assembly)
Frame (Completed
Assembly)
Sapphire Furnace
“Product Solution”
Solar Furnace
“Piece Part”
© 2012. All rights reserved. Not for use or disclosure without the expressed written permission from TechPrecision Corp.
Design
Machine
Fabrication
Electrical
Test
Strategic Production Solutions
© 2012. All rights reserved.
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Nuclear Isotope and Fissile
(pending) Transport Casks
(pending) Transport Casks
Proton Beam
Cancer Treatment
Gantries
Carbon Black
Furnaces
GDEB/BAE: Multiple
Confidential Virginia Class
Product Assemblies
Confidential Virginia Class
Product Assemblies
Sapphire Furnaces
PolySi Furnaces
Diversified Market Growth
© 2012. All rights reserved.
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Transitioned from a single-site operation with one customer representing ~65% of revenues to a
diversified platform, with growth opportunities in a variety of industries on two continents
diversified platform, with growth opportunities in a variety of industries on two continents
Medical: Exclusive
manufacturer of
Proton Beam Therapy
Device
manufacturer of
Proton Beam Therapy
Device
Nuclear: Reactor
components, fuel
storage and transport
casks
components, fuel
storage and transport
casks
Defense: Critical
and classified naval
product assemblies
and classified naval
product assemblies
Alternative energy:
Solar, Sapphire and
PolySi vacuum furnaces
PolySi vacuum furnaces
Aerospace:
Rocket Fuel
Domes and
Nozzles
Rocket Fuel
Domes and
Nozzles
Medical Device Market
© 2012. All rights reserved.
8
Medical products addressable market (Source: Espicom, 2010)
• TPCS has been exclusively producing equipment for Mevion Medical
Systems’ S250 cancer treatment unit
Systems’ S250 cancer treatment unit
• 1,000 unit sales projected for the United States (Source ProNova Solutions)
• Estimated Served Available Market (SAM) in US: $80-million/year
• Technology allows patients to be re-treated
• Radiotherapy CAGR 25% 2010 - 2020 (Source Journal of Clinical Oncology)
PBRT is Indicated over conventional
radiation treatment in:
radiation treatment in:
• Pediatric Cancer • Prostate Cancer
• Brain Tumors • Head & Neck Cancer
• Ocular Cancer • Lung Cancer
• Liver Cancer • Bone/Spinal Cancer
Conventional X-ray radiation therapy Proton therapy
Image of Mevion S250
Copyright Mevion Medical Systems
Source: ProNova Solutions
Nuclear Isotope
Transport Cask
• Resurgent markets:
• 6 U.S. plants under contract
• 52 China plants under contract
• 12 European plants in planning phase
• Nuclear addressable markets
• Estimated Served Available Market (SAM): $30-million/year
• New construction: new generation advanced-passive nuclear plant
construction required on a global basis ($9B - $14B/plant )
construction required on a global basis ($9B - $14B/plant )
• NCR has approved the AP1000/AP1400 Reactors
• Transport casks: NRC approved new isotope transport casks (fissile material in Q2 2013)
• Nuclear fabricators are few and far between
• Since 1980, 75% reduction in ASME N-stamp certificate holders in the US, 60% reduction
internationally
internationally
• Supply chain is critical path issue for reactor and casks suppliers
• Ranor remains one of few ASME N-stamp certified fabricators of high-
precision components to the nuclear industry
precision components to the nuclear industry
• Positioned to capture market share to meet current and projected demand for product
assemblies
assemblies
Nuclear Energy Market
© 2012. All rights reserved.
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Defense & Aerospace Market
© 2012. All rights reserved.
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• Navy addressable market
• Spending for new navy ships (313 ship fleet target) = $25B/year
• Block 4 NEW Submarine Program Scheduled for release in 2013
• Block 5 NEW Submarine Program target release 2015
• Aircraft Carriers “Ford” and “Kennedy” under construction
• Estimated Served Available Market (SAM): $40-million/year
• Product Solutions for multiple defense contractors
• Product assemblies and subassemblies for nuclear submarines
• Subassemblies for aircraft carriers
• Classified ITAR products for defense customers
• Large- and small-scale fuel cell domes for commercial
rocket booster cores
rocket booster cores
• Jet engine test equipment for large jet engine manufacturers
• Key supply chain relationships with several large defense contractors
Renewable Energy Market
© 2012. All rights reserved.
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• Rapidly growing addressable market with strong long-term prospects
• Estimated Served Available Market (SAM): $30-million/year
• TechPrecision has produced more than 1,200 high temperature vacuum
chambers for the solar and sapphire markets
chambers for the solar and sapphire markets
• WCMC division provides the quality operation to deliver chambers for the
China and Asia Pacific markets
China and Asia Pacific markets
• Ranor division provides the quality operation to deliver chambers for
domestic requirements
domestic requirements
• Manufacture proprietary chambers for sapphire production
• Sapphire (LED) $9.4-billion 2011; 20% CAGR through 2016 *
• Future markets include consumer smart phones & tablets
• Manufacture proprietary chambers for the solar industry
• Solar forecasted growth: 22.7GW (2011) - 43.8GW (2015) **
• Expanding programs for high energy wave generation, hydro power and
next-generation wind turbine
next-generation wind turbine
• Renewable energy has strong long-term prospects
* Source: Strategies Unlimited, LED Magazine March 2012
** Source: IDC Energy Insights; December 13, 2011
Strategic Revenue Outlook/Market Growth
12
© 2012. All rights reserved. Not for use or disclosure without the expressed written permission from TechPrecision Corp.
13
3
Ø 20,625 sq. ft. with 50-Ton Crane 60-ft. under-hook
Ø IRB CapEx Plans: ~$6-7 million over 3-years
Ø Target Ground-breaking: Q1 FY2014
Ø Target Completion: Q4 FY2014
Ø Incremental Personnel: 48
Expansion Plans:
© 2012. All rights reserved. Not for use or disclosure without the expressed written permission from TechPrecision Corp.
14
© 2012. All rights reserved. Not for use or disclosure without the expressed written permission from TechPrecision Corp.
Ø South Carolina
Ø 68,000 sq. ft. with 50-Ton Crane 60-ft. under-hook
Ø Direct Water Access/Barge Shipment
Ø Feeder site for large-scale projects from Ranor
Ø Target Ground-breaking: FY2015
Ø IRB Financed CapEx: ~$10-12 million
Ø Incremental Personnel: 85
Ø All required Permits/Licenses received
Ø State provides Trained/Certified Personnel
Expansion Plans:
Maximizing Ranor’s Performance
© 2012. All rights reserved.
15
• Organization Changes
• New Operational Systems
• New KPI Systems
© 2012. All rights reserved.
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Organization Changes
James Molinaro
CEO
Rich Fitzgerald
CFO
Bob Francis
President, Ranor Inc.
Controller, Ranor Inc.
Finance Manager,
WCMC-Wuxi
Tax Accountant, WCMC
Machine Manager
Fabrication Manager
Sales Manager
Dir. of Quality
Engineering Manager
Materials Manager
(Purchasing, Planning &
Scheduling)
Scheduling)
Ken Stephens
Mngr, Nuclear Market
Bill Hogenauer
Dir. Business Devel.
Dir. Financial Reporting
Financial Plan & Analysis
Office Manager
Chris Poplaski
President, WCMC
Jiang Han
CBO - China
Position
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PE Engineer: ASME
PE Engineer: N-Stamp
Director of Quality
Machine Manager
Fabrication Manager
Program Manager
Ranor Systems/Process Improvements
© 2012. All rights reserved.
17
New Operational Systems/Process implemented at Ranor:
•Management Quotation Approval
•ERP Implementation
•Order Entry Process
•Root Cause Correction Analysis
•Automated DL Entry
Ranor Systems/Process: Examples
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Management Quotation Approval: requires
all department managers review and approve
each quote before it is issued to the customer.
If a Purchase Order is received for the quoted
item; the Materials Cost, Direct Labor, Quality
Control and Engineering hours are then
entered as part of the ERP systems and the
Department Manager is accountable for
meeting and not exceeding the estimates that
he/she approved.
all department managers review and approve
each quote before it is issued to the customer.
If a Purchase Order is received for the quoted
item; the Materials Cost, Direct Labor, Quality
Control and Engineering hours are then
entered as part of the ERP systems and the
Department Manager is accountable for
meeting and not exceeding the estimates that
he/she approved.
Ranor Systems/Process: Examples
© 2012. All rights reserved.
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ERP System: Ranor is now utilizing the ERP systems and its
modules to automate the manufacturing operations of the
business, including but not limited to:
modules to automate the manufacturing operations of the
business, including but not limited to:
•Production Scheduling
•Work-order/Routers
•Priority Dispatch Report: Fabrication
•Priority Dispatch Report: Machining
•Machine Scheduling
EXAMPLE ERP PRIORITY DISPATCH
EXAMPLE ERP MACHINE SCHEDULING
Ranor Operational KPI’s
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20
New Operational KPI’s implemented at Ranor:
•Monthly Project GM Reports (Estimates vs. Actual)
•Weekly Shipment Report
•Monthly on-time Shipment
•Monthly Safety Incident Reports
•Weekly Machine Utilization Hours
•Monthly Non-conformance Reports
•Monthly re-work costs
Ranor Operational KPI: Examples
© 2012. All rights reserved.
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Weekly Machine Utilization Report: in
order to achieve the required
monthly/quarterly revenue increases
required from the backlog and Long Term
Agreements (LTA); Ranor needs to
increase the utilization hours of the
existing tools. Management is increases
the weekly/monthly utilization hours
required from each and every tool.
order to achieve the required
monthly/quarterly revenue increases
required from the backlog and Long Term
Agreements (LTA); Ranor needs to
increase the utilization hours of the
existing tools. Management is increases
the weekly/monthly utilization hours
required from each and every tool.
Summary
© 2012. All rights reserved.
22
Well positioned for the future - with strong momentum and
further upside:
further upside:
• Attractive and improving strategic end markets
• Growing innovation side-by-side with our Customers
• Strong penetration and positioning in developed markets with
significant potential in developing markets
significant potential in developing markets
Re-positioning of businesses to deliver sustainable results:
• Operational excellence, pricing, and innovation to deliver increased
margins, working capital efficiency, and improved Customer share of
wallet
margins, working capital efficiency, and improved Customer share of
wallet
Focused on cash generation
Disciplined capital allocation strategy to fund continued
investments in business, improve financial strength and
deliver returns to shareholders
investments in business, improve financial strength and
deliver returns to shareholders
Strategy and execution to realize value for shareholders
www.TechPrecision.com
www.ranor.com
www.wcmcsolutions.com