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8-K - TECHPRECISION FORM 8-K - TECHPRECISION CORPtpcs8k.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.
 
 

 
Table of Contents
© 2012. All rights reserved.
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 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
© 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
 Product Viability: Products must have long-term opportunity (>5-years) in order for the
 Company to justify investments and support predictable growth/profitability
Electro/Mechanical
Actuation Cylinder
Assembled and
Tested Assembly
Small Value-ad Parts
(Completed
Assembly)
Support and Install
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
Proton Beam
Cancer Treatment
Gantries
Carbon Black
Furnaces
GDEB/BAE: Multiple
Confidential Virginia Class
Product Assemblies
Sapphire Furnaces
PolySi Furnaces
 
 

 
Diversified Market Growth
© 2012. All rights reserved.
7
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
Medical: Exclusive
manufacturer of
Proton Beam Therapy
Device
Nuclear: Reactor
components, fuel
storage and transport
casks
Defense: Critical
and classified naval
product assemblies
 
Alternative energy:
Solar, Sapphire and
PolySi vacuum furnaces
 
Aerospace:
Rocket Fuel
Domes and
Nozzles
 
 

 
Medical Device Market
© 2012. All rights reserved.
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 Medical products addressable market (Source: Espicom, 2010)
  TPCS has been exclusively producing equipment for Mevion Medical
 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:
 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 )
  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
  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
  Positioned to capture market share to meet current and projected demand for product
 assemblies
Nuclear Energy Market
© 2012. All rights reserved.
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Defense & Aerospace Market
© 2012. All rights reserved.
10
 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
 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
  WCMC division provides the quality operation to deliver chambers for the
 China and Asia Pacific markets
  Ranor division provides the quality operation to deliver chambers for
 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
 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.
 
 

 
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© 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)
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
Upgrade
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
© 2012. All rights reserved.
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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.
 
 

 
Ranor Systems/Process: Examples
© 2012. All rights reserved.
19
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:
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
© 2012. All rights reserved.
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.
 
 

 
Summary
© 2012. All rights reserved.
22
Well positioned for the future - with strong momentum and
 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
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
Focused on cash generation
Disciplined capital allocation strategy to fund continued
 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