8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 OR 15(d) of the Securities Exchange Act of 1934

May 3, 2018

Date of Report (Date of earliest event reported)

TPI Composites, Inc.

(Exact name of registrant as specified in its charter)

Delaware	001-37839	20-1590775
(State or other jurisdiction	(Commission	(IRS Employer
of incorporation)	File Number)	Identification No.)

8501 N. Scottsdale Rd, Gainey Center II, Suite 100, Scottsdale, AZ	85253
(Address of principal executive offices)	(Zip Code)

Registrant’s telephone number, including area code: (480) 305-8910

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

☐	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☒

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☒

Item 2.02 RESULTS OF OPERATIONS AND FINANCIAL CONDITION

On May 3, 2018, TPI Composites, Inc. (the Company) issued a press release announcing its financial results for the three months ended March 31, 2018. A copy of the Company’s press release is furnished herewith as Exhibit 99.1 to this current report on Form 8-K and is incorporated by reference herein. The Company also posted a presentation to its website at www.tpicomposites.com under the tab “Investor Relations” providing information regarding its results of operations and financial condition for the three months ended March 31, 2018. The information contained in the presentation is incorporated by reference herein. The presentation is being furnished herewith as Exhibit 99.2 to this current report on Form 8-K. The Company’s website and the information contained therein is not part of this disclosure.

The information in Item 2.02 of this current report on Form 8-K (including Exhibit 99.1) is being furnished and shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that Section. The information in Item 2.02 of this current report on Form 8-K (including Exhibit 99.1) shall not be incorporated by reference into any registration statement or other document pursuant to the Securities Act of 1933, as amended.

Item 9.01 FINANCIAL STATEMENTS AND EXHIBITS

(d) Exhibits

99.1 – Press Release dated May 3, 2018

99.2 – Presentation dated May 3, 2018

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

		TPI COMPOSITES, INC.
May 3, 2018	By:	/s/ William E. Siwek
		William E. Siwek
		Chief Financial Officer

EX-99.1

EXHIBIT 99.1

TPI Composites, Inc. Announces First Quarter 2018 Earnings Results

SCOTTSDALE, Ariz., May 03, 2018 (GLOBE NEWSWIRE) -- TPI Composites, Inc. (Nasdaq:TPIC), the only independent manufacturer of composite wind blades with a global footprint, today reported financial results for the first quarter ended March 31, 2018.

Highlights

For the quarter ended March 31, 2018:

• Net sales of $254.0 million
• Total billings of $223.7 million
• Net income of $8.6 million or $0.24 per diluted share
• EBITDA of $21.0 million, with an EBITDA margin of 8.3%
• Adjusted EBITDA of $27.4 million, with an Adjusted EBITDA margin of 10.8%

KPIs		Q1'18	Q1'17
	Sets1	569	636
	Estimated megawatts²	1,464	1,460
	Dedicated manufacturing lines³	46	44
	Manufacturing lines installed⁴	38	39
	Manufacturing lines in startup⁵	10	9
	Manufacturing lines in transition⁶	4	-

1. Number of wind blade sets (which consist of three wind blades) invoiced worldwide in the period.
2. Estimated megawatts of energy capacity to be generated by wind blade sets invoiced in the period.
3. Number of manufacturing lines that are dedicated to our customers under long-term supply agreements. Dedicated manufacturing lines for Q1’17 includes seven lines for GE Wind that were not renewed after December 31, 2017.
4. Number of manufacturing lines installed and either in operation, startup or transition.
5. Number of manufacturing lines in a startup phase during the pre-production and production ramp-up period.
6. Number of manufacturing lines that were being transitioned to a new wind blade model during the period.

“We started the year on a positive note as we delivered another strong quarter of operational and financial performance,” said Steven Lockard, TPI Composites’ President and Chief Executive Officer. “We remain focused on our strategy to grow globally, diversify our customer base and expand profitability.  So far this year, we have signed supply agreements for a total of five lines representing potential contract revenue of up to $1.2 billion over the terms of the agreements. These include four manufacturing lines with Vestas, with an option for additional lines, in a new manufacturing hub in Yangzhou, China and an additional line with Vestas in Izmir, Turkey.”

“TPI also continues to demonstrate additional commercial capabilities for our advanced composites expertise.  In March, we announced a joint development agreement with Navistar, Inc. to design and develop a Class 8 truck comprised of a composite tractor and frame rails. We remain opportunistic in our diversification plans into the strategic markets. As a reminder, the Navistar agreement brings our development program count in strategic markets to a total of five.”

“Finally, as we’ve talked about previously, 2018 will be an investment year, however, we still estimate that we will deliver top line growth of approximately 10% this year.  We remain focused on our commitment to grow our wind business, improve our operational effectiveness, drive profitability and continue to drive down the levelized cost of wind energy while continuing to develop and explore additional opportunities in other strategic markets,” concluded Mr. Lockard.

First Quarter 2018 Financial Results
Net sales for the quarter increased by $45.4 million or 21.7% to $254.0 million compared to $208.6 million in the same period in 2017. Total billings increased by $12.3 million or 5.8% to $223.7 million for the three months ended March 31, 2018 compared to $211.4 million in the 2017 period. Net sales of wind blades were $234.2 million for the quarter as compared to $195.7 million in the same period in 2017. The increase was primarily driven by higher average sales prices due to the mix of wind blade models produced during the quarter compared to the same period in 2017. This was partially offset by a 10.5% decrease in the number of wind blades produced during the quarter compared to the same period in 2017. The favorable impact of the currency movements on consolidated net sales was 3.4% and on total billings was 3.9% for the quarter.

Total cost of goods sold for the quarter was $225.7 million and included aggregate costs of $14.7 million primarily related to startup costs in our new plants in Turkey and Mexico and for our new customer, Senvion, in Taicang, China. This compares to total cost of goods sold of $188.7 million for the same period in 2017, including aggregate costs of $6.2 million related to startup costs in our new plants in Turkey and Mexico. Cost of goods sold as a percentage of net sales of wind blades decreased slightly during the quarter as compared to the same period in 2017, driven by improved operating efficiencies and the impact of net savings in raw material costs, partially offset by the increase in startup and transition costs. The unfavorable impact of the currency movements on consolidated cost of goods sold was 4.6% for the quarter.

General and administrative expenses for the three months ended March 31, 2018 totaled $11.2 million as compared to $8.3 million for the same period in 2017. As a percentage of net sales, general and administrative expenses were 4.4% for the three months ended March 31, 2018, up from 4.0% in the same period in 2017. The increase in expenses was primarily driven by increased personnel costs from filling our key global positions to support our growth and diversification strategy, additional depreciation expense related to our enhanced corporate infrastructure, the costs related to the implementation of ASC 606, our work related to the Sarbanes-Oxley Act and a year over year increase in share-based compensation costs of $0.5 million.

Net income for the quarter was $8.6 million as compared to $5.2 million in the same period in 2017. The increase was primarily due to the reasons set forth above.  Diluted earnings per share was $0.24 for the three months ended March 31, 2018, compared to $0.15 for the three months ended March 31, 2017.

EBITDA for the quarter increased to $21.0 million, compared to $14.5 million during the same period in 2017. The EBITDA margin increased to 8.3% compared to 7.0% in the 2017 period. Adjusted EBITDA for the quarter increased to $27.4 million compared to $17.6 million during the same period in 2017. The Adjusted EBITDA margin increased to 10.8% compared to 8.4% during the same period in 2017.

Capital expenditures were $11.7 million for the quarter compared to $16.9 million during the same period in 2017. Current year capital expenditures were primarily related to new facilities and expansion or improvements at existing facilities and costs to enhance our information technology systems.

We ended the quarter with $138.8 million of cash and cash equivalents and net cash was $11.1 million as compared to net cash of $24.6 million at December 31, 2017.

2018 Outlook
For 2018, the Company is providing the following guidance:

• Net sales of between $1.0 billion and $1.05 billion
• Total billings of between $1.0 billion and $1.05 billion
• Adjusted EBITDA of between $75 million and $80 million
• Fully diluted earnings per share of between $0.38 and $0.42
• Sets delivered of between 2,500 and 2,525
• Average sales price per blade of between $125,000 and $130,000
• Estimated megawatts of sets delivered to be between 6,950 and 7,100
• Dedicated manufacturing lines under long-term agreements at year end to be between 51 and 55
• Manufacturing lines installed at year end to be 47
• Manufacturing lines in startup during the year to be 12
• Manufacturing lines in transition during the year to be 14
• Startup and transition cost of between $58 million and $61 million
• Capital expenditures to be between $85 million and $90 million (approx. 85% growth related)
• Effective tax rate to be between 40% and 42%
• Depreciation and amortization of between $30 million and $35 million
• Interest expense of between $11.5 million and $12.5 million
• Share-based compensation expense of between $10 million and $11 million

Conference Call and Webcast Information
TPI Composites will host an investor conference call this afternoon, Thursday, May 3, 2018 at 5:00pm ET. Interested parties are invited to listen to the conference call which can be accessed live over the phone by dialing 1-877-407-9208, or for international callers, 1-201-493-6784. A replay will be available two hours after the call and can be accessed by dialing 1-844-512-2921, or for international callers, 1-412-317-6671. The passcode for the live call and the replay is 13678868. The replay will be available until May 10, 2018. Interested investors and other parties may also listen to a simultaneous webcast of the conference call by logging onto the Investor Relations section of the Company’s website at www.tpicomposites.com. The online replay will be available for a limited time beginning immediately following the call.

About TPI Composites, Inc.
TPI Composites, Inc. is the only independent manufacturer of composite wind blades for the wind energy market with a global manufacturing footprint. TPI delivers high-quality, cost-effective composite solutions through long-term relationships with leading global manufacturers. TPI is headquartered in Scottsdale, Arizona and operates factories throughout the U.S., Mexico, China and Turkey.

Forward-Looking Statements
This release contains forward-looking statements which are made pursuant to safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include statements, among other things, concerning: effects on our financial statements and our financial outlook; our business strategy, including anticipated trends and developments in and management plans for our business and the wind industry and other markets in which we operate; our projected annual revenue growth; competition; future financial results, operating results, revenues, gross margin, operating expenses, products, projected costs, warranties, our ability to improve our operating margins, and capital expenditures. These forward-looking statements are often characterized by the use of words such as “estimate,” “expect,” “anticipate,” “project,” “plan,” “intend,” “seek,” “believe,” “forecast,” “foresee,” “likely,” “may,” “should,” “goal,” “target,” “might,” “will,” “could,” “predict,” “continue” and the negative or plural of these words and other comparable terminology. Forward-looking statements are only predictions based on our current expectations and our projections about future events. You should not place undue reliance on these forward-looking statements. We undertake no obligation to update any of these forward-looking statements for any reason. These forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance or achievements to differ materially from those expressed or implied by these statements. These factors include, but are not limited to, the matters discussed in “Risk Factors,” in our Annual Report on Form 10-K and other reports that we will file with the SEC.

Non-GAAP Definitions
This press release includes unaudited non-GAAP financial measures, including total billings, EBITDA, adjusted EBITDA, net cash/debt and free cash flow. We define total billings as total amounts billed from products and services that we are entitled to payment and have billed under the terms of our long-term supply agreements or other contractual arrangements. We define EBITDA as net income plus interest expense (including losses on 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 transactions. 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. See below for a reconciliation of certain non-GAAP financial measures to the comparable GAAP measures.

Investor Relations
480-315-8742
investors@TPIComposites.com

TPI COMPOSITES, INC. AND SUBSIDIARIES
TABLE ONE - CONDENSED CONSOLIDATED INCOME STATEMENTS
(UNAUDITED)
	Three Months Ended March 31,
(in thousands, except per share data)	2018			2017
Net sales	$	253,981		$	208,615
Cost of sales		210,988			182,538
Startup and transition costs		14,735			6,159
Total cost of goods sold		225,723			188,697
Gross profit		28,258			19,918
General and administrative expenses		11,163			8,306
Income from operations		17,095			11,612
Other income (expense):
Interest income		41			19
Interest expense		(3,338	)		(3,026	)
Realized loss on foreign currency remeasurement		(4,011	)		(1,381	)
Miscellaneous income		818			320
Total other expense		(6,490	)		(4,068	)
Income before income taxes		10,605			7,544
Income tax provision		(1,957	)		(2,331	)
Net income	$	8,648		$	5,213
Weighted-average common shares outstanding:
Basic		34,049			33,737
Diluted		35,479			33,827
Net income per common share:
Basic	$	0.25		$	0.15
Diluted	$	0.24		$	0.15
Non-GAAP Measures (unaudited):
Total billings	$	223,701		$	211,360
EBITDA	$	20,974		$	14,502
Adjusted EBITDA	$	27,373		$	17,590

TPI COMPOSITES, INC. AND SUBSIDIARIES
TABLE TWO - CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
	March 31,		December 31,
(in thousands)	2018		2017
Current assets:
Cash and cash equivalents	$	138,841	$	148,113
Restricted cash		3,251		3,849
Accounts receivable		117,950		121,576
Contract assets		130,015		105,619
Prepaid expenses and other current assets		35,718		27,507
Inventories		4,205		4,112
Total current assets		429,980		410,776
Noncurrent assets:
Property, plant, and equipment, net		126,860		123,480
Other noncurrent assets		23,024		22,306
Total assets	$	579,864	$	556,562
Current liabilities:
Accounts payable and accrued expenses	$	169,179	$	167,175
Accrued warranty		32,670		30,419
Current maturities of long-term debt		43,085		35,506
Contract liabilities		4,449		2,763
Total current liabilities		249,383		235,863
Noncurrent liabilities:
Long-term debt, net of debt issuance costs and
current maturities		82,658		85,879
Other noncurrent liabilities		4,791		4,938
Total liabilities		336,832		326,680
Total stockholders' equity		243,032		229,882
Total liabilities and stockholders' equity	$	579,864	$	556,562
Non-GAAP Measure (unaudited):
Net cash	$	11,108	$	24,557

TPI COMPOSITES, INC. AND SUBSIDIARIES
TABLE THREE - CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
	Three Months Ended March 31,
(in thousands)	2018			2017
Net cash provided by (used in) operating activities	$	(3,032	)	$	9,938
Net cash used in investing activities		(11,714	)		(16,922	)
Net cash provided by (used in) financing activities		4,490			(2,809	)
Impact of foreign exchange rates on cash, cash equivalents and restricted cash		386			(63	)
Cash, cash equivalents and restricted cash, beginning of year		152,437			129,863
Cash, cash equivalents and restricted cash, end of period	$	142,567		$	120,007
Non-GAAP Measure (unaudited):
Free cash flow	$	(14,746	)	$	(6,984	)

TPI COMPOSITES, INC. AND SUBSIDIARIES
TABLE FOUR - RECONCILIATION OF NON-GAAP MEASURES
(UNAUDITED)
Total billings is reconciled as follows:	Three Months Ended March 31,
(in thousands)	2018			2017
Net sales	$	253,981		$	208,615
Change in contract assets		(24,396	)		(2,738	)
Foreign exchange impact		(5,884	)		5,483
Total billings	$	223,701		$	211,360
EBITDA and adjusted EBITDA are reconciled as follows:	Three Months Ended March 31,
(in thousands)	2018			2017
Net income	$	8,648		$	5,213
Adjustments:
Depreciation and amortization		7,072			3,951
Interest expense (net of interest income)		3,297			3,007
Income tax provision		1,957			2,331
EBITDA		20,974			14,502
Share-based compensation expense		2,388			1,707
Realized loss on foreign currency remeasurement		4,011			1,381
Adjusted EBITDA	$	27,373		$	17,590
Free cash flow is reconciled as follows:	Three Months Ended March 31,
(in thousands)	2018			2017
Net cash provided by (used in) operating activities	$	(3,032	)	$	9,938
Capital expenditures		(11,714	)		(16,922	)
Free cash flow	$	(14,746	)	$	(6,984	)
Net cash (debt) is reconciled as follows:	March 31,			December 31,
(in thousands)	2018			2017
Total debt, net of debt issuance costs	$	(125,743	)	$	(121,385	)
Less debt issuance costs		(1,990	)		(2,171	)
Add cash and cash equivalents		138,841			148,113
Net cash	$	11,108		$	24,557

EX-99.2 3 exh_992.htm EXHIBIT 99.2

Exhibit 99.2

Q1 2018 Earnings Call

Q1 2018 Earnings Call Legal Disclaimer This presentation contains forward - looking statements within the meaning of the federal securities laws. All statements other th an statements of historical facts contained in this presentation, including statements regarding our future results of operations and financial position, business strategy and p lan s 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 negati ve 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 mar ket 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 o ur gross margins and overall financial performance; (iii) our ability to successfully expand our transportation business and execute upon our strategy of entering n ew 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) the potential impact of GE’s acquisition of LM Wind Power upon our business; (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 abilit y t o 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 econo mic conditions and their impact on customer demand; (xiii) our ability to maintain, protect and enhance our intellectual property; (xiv) our ability to comply with exist ing , 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 reten tio n of qualified employees and key personnel; and (xvi) changes in domestic or international government or regulatory policy, including without limitation, changes in trade policy These forward - looking statements are only predictions. These statements relate to future events or our future financial performa nce 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 statemen ts 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 guara ntees 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 Com mission from time to time, including in our Annual Report on Form 10 - K for the year ended December 31, 2017. 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 undertak e 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 una nti cipated 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 aft er the date of this presentation. Our forward - looking statements do not reflect the potential impact of any future acquisitions, mergers, dispositions, joint ventures, or investme nts 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 ter ms 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 compe nsation 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 le ss 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. See the appendix for the reconciliations of certain non - GAAP financial measures to th e comparable GAAP measures. This presentation also contains estimates and other information concerning our industry that are based on industry publicatio ns, 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 May 3, 2018

Q1 2018 Earnings Call Agenda • Q1 2018 Highlights • Industry Update • Q1 2018 Financial Highlights • Guidance for 2018 • Q&A • Appendix – Non - GAAP Information – Impact of ASC 606 on Q1 2017 3 May 3, 2018

Q1 2018 Highlights

Q1 2018 Earnings Call Q1 2018 Highlights 5 May 3, 2018 Q1 2018 Highlights and Recent Company News • Operating results and year - over - year increases compared to 201 7 • Net sales were up 21.7 % to $254.0 million for the quarter • Net income for the quarter improved to $ 8.6 million compared to $ 5.2 million in 2017 • Adjusted EBITDA for the quarter increased by 55.6% to $ 27.4 million • Adjusted EBITDA margin for the quarter was up 240 bps to 10.8 % • Signed a new multiyear supply agreement with Vestas for four lines in a new plant in Yangzhou, China and added a third line to our existing supply agreement in Turkey • Entered into an agreement with Navistar to design and develop a Class 8 truck comprised of a composite tractor and frame rails Net Sales and Adjusted EBITDA ($ in millions) $209 $254 $18 $27 $0 $200 $400 Q1 '17 Q1 '18 Q1 '17 Q1 '18 Sets invoiced 636 569 Est. MW 1,460 1,464 Dedicated lines (1) 44 46 Lines installed (2) 39 38 (1) Number of wind blade manufacturing lines dedicated to our customers under long - term supply agreement s. (2) Number of wind blade manufacturing lines installed that are either in operation, startup or transition 21.7% 55.6% Net Sales Adjusted EBITDA

Q1 2018 Earnings Call Existing Contracts Provide for ~$ 5.4 Billion in Potential Revenue through 2023 (1) 6 May 3, 2018 Long - term Supply Agreements (1) 2018 2019 2020 2021 2022 2023 U.S. Turkey Mexico China Long - term supply agreements provide for estimated minimum aggregate volume commitments from our customers of approximately $ 3.6 billion and encourage our customers to purchase additional volume up to, in the aggregate, an estimated total potential revenue of approximately $5.4 billion through the end of 2023 (1) Note: Our contracts with some of our customers are subject to termination or reduction on short notice, generally with substa nti al 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 May 3, 2018. The chart depicts the term of the longest contract in each location .

Industry Update

Q1 2018 Earnings Call Onshore Global Market Growth 8 May 3, 2018 Annual I nstalled G lobal W ind C apacity (GW): 201 7 – 202 7 E 39.1 45.8 5.0 17.4 2017 2027E Developing wind markets Mature wind markets Source: MAKE Q 4 2017 Global Wind Power Market Outlook Update Note: Developing wind markets defined as fewer than 6 GW of 2016 installed capacity Annual installed wind capacity growth is propelled by an increase in developing wind markets, including Turkey and Mexico where TPI Composites is well positioned to succeed 44.1 CAGR 1.6 % CAGR 13.3 % Mature wind market share Developing market s market share 11.4 % 8 8.6 % 25.5 % 74.5 % 6 3 . 3

Q1 2018 Earnings Call U.S. Onshore Market Growth: 2011 – 2020E 9 May 3, 2018 The U.S. wind market is expected to experience consistent near - term growth in light of the PTC phase out Source: MAKE Q4 2017 Global Wind Power Market Outlook Update (GW) U.S. Onshore Wind Market Growth - Capacity (2011 – 2015) 6.2 12.5 1.1 4.8 8.6 0 3 6 9 12 15 2011 2012 2013 2014 2015 8.9 7.0 8.9 10.8 12.4 2016 2017E 2018E 2019E 2020E U.S. Onshore Wind Market Growth – Capacity (2016 – 2020E) Average annual installation: 10.7 GW (2018 – 2020) Total U.S. wind installations: 32.1 GW (2018 – 2020) Average annual installation: 6.6 GW Total U.S. wind installations: 33.2 GW

Q1 2018 Earnings Call Market Demand Drivers • Overall competitiveness of wind energy • Corporate and industrial demand • Utilities being driven by consumer demand and sheer economics • Offshore economics • Vehicle electrification • Decarbonization of electric sector 10 May 3, 2018

Q1 2018 Financial Highlights

Q1 2018 Earnings Call Q1 2018 Financial Highlights (unaudited) 12 May 3, 2018 (1) See pages 20 – 22 for reconciliations of non - GAAP financial data ($ in millions, except per share data and KPIs) Q1 ’18 Q1 ’17 ∆ Select Financial Data Net Sales $ 254.0 $ 208.6 21.7% Total Billings (1) $ 223.7 $ 211.4 5.8% Net Income $ 8.6 $ 5.2 65.9% Diluted Earnings Per Share $ 0.24 $ 0.15 $ 0.09 Adjusted EBITDA (1) $ 27.4 $ 17.6 55.6% Adjusted EBITDA Margin 10.8% 8.4% 240 bps Net Cash (Debt) (1) $ 11.1 $ (7.1) $ 18.2 Free Cash Flow (1) $ (14.7) $ (7.0) $ (7.8) Capital Expenditures $ 11.7 $ 16.9 $ (5.2) Key Performance Indicators (KPIs) Sets Invoiced 569     636     (67)    Estimated Megawatts 1,464     1,460     4     Dedicated Wind Blade Manufacturing Lines 46     44     2 lines Wind Blade Manufacturing Lines Installed 38     39     1 line Wind Blade Manufacturing Lines in Startup 10     9     1 line Wind Blade Manufacturing Lines in Transition 4     —     4 lines

Q1 2018 Earnings Call Income Statement Summary (unaudited) 13 May 3, 2018 (1) See pages 20 – 22 for reconciliations of Non - GAAP financial data 2018 2017 $ % ($ in thousands, except per share amounts) Net sales 253,981$ 208,615$ 45,366$ 21.7% Cost of sales 210,988$ 182,538$ 28,450$ 15.6% Startup and transition costs 14,735$ 6,159$ 8,576$ 139.2% Total cost of goods sold 225,723$ 188,697$ 37,026$ 19.6% Cost of goods sold % 88.9% 90.5% -160 bps Gross profit 28,258$ 19,918$ 8,340$ 41.9% Gross profit % 11.1% 9.5% 160 bps General and administrative expenses 11,163$ 8,306$ 2,857$ 34.4% General and administrative expenses % 4.4% 4.0% 40 bps Income from operations 17,095$ 11,612$ 5,483$ 47.2% Income before income taxes 10,605$ 7,544$ 3,061$ 40.6% Net income 8,648$ 5,213$ 3,435$ 65.9% Weighted-average common shares outstanding: Basic 34,049 33,737 Diluted 35,479 33,827 Net income per common share: Basic 0.25$ 0.15$ 0.10$ Diluted 0.24$ 0.15$ 0.09$ Non-GAAP Metrics Total billings (1) 223,701$ 211,360$ 12,341$ 5.8% EBITDA (1) 20,974$ 14,502$ 6,472$ 44.6% EBITDA margin 8.3% 7.0% 130 bps Adjusted EBITDA (1) 27,373$ 17,590$ 9,783$ 55.6% Adjusted EBITDA margin 10.8% 8.4% 240 bps Three Months Ended March 31, Change

Q1 2018 Earnings Call Key Balance Sheet and Cash Flow Data (unaudited) 14 May 3, 2018 (1) See page 21 for the reconciliation s of net cash and free cash flow March 31, December 31, ($ in thousands) 2018 2017 Balance Sheet Data: Cash and cash equivalents 138,841$ 148,113$ Restricted cash 3,251$ 3,849$ Accounts receivable 117,950$ 121,576$ Contract assets 130,015$ 105,619$ Total debt-current and noncurrent, net 125,743$ 121,385$ Net cash (1) 11,108$ 24,557$ ($ in thousands) 2018 2017 Cash Flow Data: Net cash provided by (used in) operating activities (3,032)$ 9,938$ Capital expenditures 11,714$ 16,922$ Free cash flow (1) (14,746)$ (6,984)$ Three Months Ended March 31,

Guidance for 2018

Q1 2018 Earnings Call Key Guidance Metrics 16 May 3, 2018 Full Year 2018 Total Billings (1) $1.0B – $1.05B Net Sales $1.0B – $1.05B Adjusted EBITDA $75M – $80M Earnings per Share - FD $0.38 – $0.42 Sets 2,500 – 2,525 Average Selling Price per Blade $125K - – $130K Non - Blade Billings $75M – $80M G&A Costs as a % of Billings (incl. SBC) 4% – 5% Estimated MW 6,950 – 7,100 Dedicated Lines - EOY 51 – 55 Share - Based Compensation $10M - – $11M Depreciation & Amortization $30M – $35M Net Interest Expense $11.5M – $12.5M Capital Expenditures $85M – $90M Effective Tax Rate 40% – 42% Note: All reference to lines is to wind blade manufacturing lines (1) We have not reconciled our total expected billings for 2018 to expected net sales under GAAP because we have not yet finalize d c alculations necessary to provide the reconciliation and as such the reconciliation is not possible without unreasonable efforts.

Q1 2018 Earnings Call Sets and Startup & Transition Costs G uidance Metrics 17 May 3, 2018 2018 Q2 Q3 Q4 Full Year Lines Installed – end of period 40 47 47 47 Lines in Startup – during period 6 8 8 12 Lines in Transition – during period 10 10 5 14 Startup & Transition Costs $19M - $20M $15M - $16M $9M - $10M $58M - $61M Sets 585 - 590 650 - 660 695 - 705 2,500 – 2,525

Q&A

Appendix – Non - GAAP Information This presentation includes unaudited non - GAAP financial measures including total billings, EBITDA, adjusted EBITDA, net cash (de bt) and free cash flow. We define total billings as the total amounts we have invoiced our customers for products and services fo r w hich 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 in ter est 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 to tal principal amount of debt outstanding less unrestricted cash and cash equivalents. We define free cash flow as net cash flow g ene rated from operating activities less capital expenditures. We present non - GAAP measures when we believe that the additional informatio n 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 GA AP. See below for a reconciliation of certain non - GAAP financial measures to the comparable GAAP measures.

Q1 2018 Earnings Call Non - GAAP Reconciliations (unaudited) Net sales is reconciled to total billings as follows: Net income is reconciled to EBITDA and adjusted EBITDA as follows: 20 May 3, 2018 ($ in thousands) 2018 2017 Net income 8,648$ 5,213$ Adjustments: Depreciation and amortization 7,072 3,951 Interest expense (net of interest income) 3,297 3,007 Income tax provision 1,957 2,331 EBITDA 20,974 14,502 Share-based compensation expense 2,388 1,707 Realized loss on foreign currency remeasurement 4,011 1,381 Adjusted EBITDA 27,373$ 17,590$ Three Months Ended March 31, ($ in thousands) 2018 2017 Net sales 253,981$ 208,615$ Change in contract assets (24,396) (2,738) Foreign exchange impact (5,884) 5,483 Total billings 223,701$ 211,360$ Three Months Ended March 31,

Q1 2018 Earnings Call Non - GAAP Reconciliations (continued) (unaudited) Net cash (debt) is reconciled as follows: Free cash flow is reconciled as follows: 21 May 3, 2018 March 31, December 31, March 31, ($ in thousands) 2018 2017 2017 Total debt, net of debt issuance costs (125,743)$ (121,385)$ (120,489)$ Less debt issuance costs (1,990) (2,171) (2,147) Add cash and cash equivalents 138,841 148,113 115,541 Net cash (debt) 11,108$ 24,557$ (7,095)$ ($ in thousands) 2018 2017 Net cash provided by (used in) operating activities (3,032)$ 9,938$ Less capital expenditures (11,714) (16,922) Free cash flow (14,746)$ (6,984)$ Three Months Ended March 31,

Q1 2018 Earnings Call Non - GAAP Reconciliations (continued) (unaudited) A reconciliation of the low end and high end of projected net income under ASC 606 to projected EBITDA and projected adjusted EBITDA is as follows: 22 May 3, 2018 ($ in thousands) Low End High End Projected net income 7,900$ 10,890$ Adjustments: Projected depreciation and amortization 32,500 32,500 Projected interest expense (net of interest income) 12,000 12,000 Projected loss on extinguishment of debt 2,800 2,850 Projected income tax provision 5,300 7,260 Projected EBITDA 60,500 65,500 Projected share-based compensation expense 10,500 10,500 Projected realized loss on foreign currency remeasurement 4,000 4,000 Projected Adjusted EBITDA 75,000$ 80,000$ (1) All figures presented are projected estimates for the full year ending December 31, 2018. 2018 Adjusted EBITDA Guidance Range (1)

Impact of ASC 606

Q1 2018 Earnings Call Impact of ASC 606 on Q1 2017 24 May 3, 2018 Three Months Ended March 31, 2017 As Reported Adoption of Topic 606 As Adjusted (Unaudited) Net sales $ 191,602 $ 17,013 $ 208,615 Cost of sales 167,423 15,115 182,538 Startup and transition costs 6,159 — 6,159 Total cost of goods sold 173,582 15,115 188,697 Gross profit 18,020 1,898 19,918 General and administrative expenses 8,306 — 8,306 Income from operations 9,714 1,898 11,612 Other income (expense): Interest income 19 — 19 Interest expense (3,026 ) — (3,026 ) Realized loss on foreign currency remeasurement (1,381 ) — (1,381 ) Miscellaneous income 320 — 320 Total other expense (4,068 ) — (4,068 ) Income before income taxes 5,646 1,898 7,544 Income tax provision (2,101 ) (230 ) (2,331 ) Net income $ 3,545 $ 1,668 $ 5,213 Weighted-average common shares outstanding: Basic 33,737 33,737 33,737 Diluted 33,827 33,827 33,827 Net income per common share: Basic $ 0.11 $ 0.05 $ 0.15 Diluted $ 0.10 $ 0.05 $ 0.15