Babcock & Wilcox Enterprises, Inc. · NYSE:BW
Babcock & Wilcox Enterprises — Q2 2023 Earnings Presentation
39 slides from Babcock & Wilcox Enterprises's earnings presentation, Aug 8, 2023
Slide 1: Company Overview
C O M PA N Y OV E RV I E W AUGUST 8, 2023 © 2023 Babcock & Wilcox Enterprises, Inc. All rights reserved.
Slide 2: Safe Harbor Statement
S A F E H A R B O R S TAT E M E N T B&W Enterprises cautions that this presentation contains forward-looking statements within the meaning of federal securities laws. All statements other than statements of historical or current fact included in this presentation are forward-looking statements, incl
Slide 3: We're a Global Energy Leader
WE’RE A GLOBAL ENERGY LEADER C R E AT I N G A B R I G H T E R F U T U R E Providing high quality and innovative technologies since 1867 • From our first patent for a more efficient boiler to more than 17,000 patents since, we continue to drive innovation and change • Today, we are a globally recogni
Slide 4: We're Helping Customers Create Clean and Reliable Energy
W E ’ R E H E L P I N G C U S T O M E R S C R E AT E CLEAN AND RELIABLE ENERGY SUPPORTING A CIRCULAR ECONOMY DELIVERING VALUE Ecologically sound ways of using and recycling resources like biomass, THROUGH CLEAN ENERGY SOLUTIONS municipal waste, and solar energy to create clean, renewable baseload TE
Slide 5: The Foundation of Our Company
T H E F O U N D AT I O N O F O U R C O M PA N Y Our Vision: Advancing energy and environmental solutions that bring power and progress to our world. Our Mission: B&W delivers environmentally conscious, technology-driven solutions and services to energy and industrial customers worldwide – safely, et
Slide 6: We're Leading and Driving Clean Power Solutions
WE’RE LEADING AND DRIVING CLEAN POWER SOLUTIONS U.S. Inflation Reduction Energy trade Global drive toward B&W SUPPORTS Act increases the disruptions around the world renewable and reusable GLOBAL TRENDS investment into low carbon require increased use of energy sources to limit DRIVING intensity sol
Slide 7: We're Driving Growth, Innovation and Expansion
WE’RE DRIVING GROWTH, I N N O VAT I O N A N D E X PA N S I O N OPPORTUNITY INNOVATION CORE GROWTH STRATEGIES FOCUSED ON Meet the global need for carbon Provide best-in-class environmental DRIVING reduction and greenhouse gas technologies across a broad array of INNOVATIVE reduction with patented ren
Slide 8: We're Leveraging a Vast Installed Base and Proven Technologies
W E ' R E L E V E R A G I N G A VA S T I N S TA L L E D BASE AND PROVEN TECHNOLOGIES More than 500 waste-to-energy and biomass-to-energy units at 300+ facilities globally (consuming over 61 million tonnes of waste per year) and a leader in plant availability Serving utility, waste management, mu
Slide 9: Babcock & Wilcox Profile
BABCOCK & WILCOX PROFILE CORPORATE SNAPSHOT CONSOLIDATED Headquarters: Akron OH, USA Backlog1 as of LTM Revenue June 30, 2023 Founded: 1867 Europe Asia & Other Industrial Parts & Services 24% Ownership: Public (NYSE:BW) 32% 42% 16% 29% 17% 46% 33% Employees: ~2300 Power Aftermarket North 38% LTM Rev
Slide 10: A Solid Pipeline of Global Opportunities
A SOLID PIPELINE OF GLOBAL OPPORTUNITIES 2023-2025 Addressable Market PIPELINE REVENUE Europe SPLIT 2023-2025 More than $8B 2023-2025 Addressable Market Asia-Pacific More than $8B 2023-2025 10-15% Addressable Market 15-25% Middle East & Africa More than $4B Manufacturing 2023-2025 Addressable Market
Slide 11: Global Annual Capital Investment in Carbon Capture and Hydrogen Is Growing
G L O B A L A N N U A L C A P I TA L I N V E S T M E N T I N CARBON CAPTURE AND HYDROGEN IS GROWING By technology area 5 $224B $158B $240B 4 $150B $390B Technology area $428B Other Fossil fuels Trillions USD (2019) 3 CCUS Hydrogen Electricity system 2 Electrification Efficiency Other renewables Bioe
Slide 12: BrightLoop Hydrogen Production
BRIGHTLOOP™ HYDROGEN PRODUCTION FEEDSTOCK OPTIONS SIGNIFICANT ADVANTAGES: Nitrogen OUTPUT OPTIONS BIOMASS • Hydrogen from solid fuels – can utilize a for Beneficial Use variety of solid or gaseous fuels as HYDROGEN feedstock • High rate of carbon captured – inherent BIOGAS CO2 isolation supports seq
Slide 13: BrightLoop Hydrogen Production Progress
BRIGHTLOOP™ HYDROGEN PRODUCTION PROGRESS BRIGHTLOOP™ EVOLUTION 1994-2004 2008 2014 2017 2024 2025 2028 Laboratory Scale Sub-Pilot with Steam & Hydrogen Coal Direct SMALL SCALE MEDIUM SCALE LARGE SCALE The Ohio State University Chemical Looping and B&W National Carbon Capture 1-3 Tonnes Per Day 10-50
Slide 14: Leveraging Decades of Funding Awards and Investments
L E V E R A G I N G D E C A D E S O F F U N D I N G A WA R D S AND INVESTMENTS CONTINUE TO SCALE THIS INDUSTRY – CHANGING TECHNOLOGY COAL DIRECT CHEMICAL LOOPING (CDCL) NATIONAL CARBON CAPTURE CENTER (NCCC) 2,000 50 OPERATING HOURS STARTUP / SHUTDOWNS 1,000 20 OPERATING HOURS STARTUP / SHUTDOWNS 200
Slide 15: Unlocking Future Revenue Potential of BrightLoop
UNLOCKING FUTURE REVENUE POTENTIAL OF BRIGHTLOOP AND POSITION BASED ON MARKET WITH SIGNIFICANT GROWTH OF HYDROGEN PROJECTED Target Market Share Assumed Mix of Projects 2030 Approximate Revenue Achieving only 1% market share of a 3-5 Large Unit Projects 2-4 Medium Unit Projects ~$1 Billion annual rev
Slide 16: Hydrogen Production and Costs
HYDROGEN PRODUCTION AND COSTS BrightLoop™ produces low-cost hydrogen compared to the competition Levelized cost of hydrogen after support by production route weighted world average 7 6 5 4 USD/kgH2 3 2 Medium BrightLoop Large 1 BrightLoop 0 2020 2030 2050 2020 2030 2050 2020 2030 2050 2020 2030 2050
Slide 17: Global Leader in Clean Power Production Technologies: ClimateBright Suite
GLOBAL LEADER IN CLEAN POWER PRODUCTION T E C H N O L O G I E S — O U R C L I M AT E B R I G H T ™ S U I T E EMERGING TECHNOLOGIES SolveBright™ OxyBright™ POST-COMBUSTION CARBON CAPTURE OXYGEN-FUEL COMBUSTION Long Duration Green Direct Energy Storage Steam Air Capture HOT SAND SILO COLD SAND SILO Br
Slide 18: Inflation Reduction Act for ClimateBright
I N F L AT I O N R E D U C T I O N A C T F O R C L I M AT E B R I G H T ™ Clean energy wins Clean Hydrogen Production Tax Credit (PTC): 45V with the Inflation • New 10-year incentive for clean hydrogen production with four tiers and a Reduction Act, maximum of 4 kilograms of CO2 equivalent per kilog
Slide 19: B&W's Waste-to-Energy Technology Reduces Methane Emissions
B & W ’ S WA S T E - T O - E N E R G Y T E C H N O L O G Y REDUCES METHANE EMISSIONS • Methane has 84 times the Global Warming Potential (GWP) • B&W’s state-of-the-art technology has been installed in of CO2i more than 500 units in more than 30 countries, including: • Annual additions to landfills i
Slide 20: Global Leader in Comprehensive Waste-to-Energy Solutions
GLOBAL LEADER IN COMPREHENSIVE WA S T E - T O - E N E R G Y S O L U T I O N S Dry cooling systems On-line boiler washing system Selective non-catalytic reduction (SNCR) NOx control DynaFeeder® waste fuel feeder system Fabric filter baghouse VoluMix® system for improved combustion Wet scrubber with A
Slide 21: Bioenergy with Carbon Capture and Sequestration (BECCS)
BIOENERGY WITH CARBON CAPTURE A N D S E Q U E S T R AT I O N ( B E C C S ) OxyBright with B&W’s biomass-fired BFB boiler produces carbon negative electricity with a -2,500gCO2e/kWh carbon intensity OxyBright with B&W’s WtE solution could produce carbon negative electricity with a -1,000 gCO2e/kWh ca
Slide 22: Financial Information
F I N A N C I A L I N F O R M AT I O N © 2023 Babcock & Wilcox Enterprises, Inc. All rights reserved. BABCOCK & WILCOX ENTERPRISES, INC. 22
Slide 23: Consolidated Financial Summary
C O N S O L I D AT E D F I N A N C I A L S U M M A R Y Twelve Months Ended Twelve Months Ended Twelve Months Ended ($ in millions) June 30, 2023 December 31, 2022 December 31, 2021 Revenue $ 1,027.1 $ 889.8 $ 723.4 Operating Income (loss) $ 7.3 $ (4.2) $ 20.8 Net Income (loss) $ (32.4) $ (26.6) $ 31
Slide 24: Capital Structure
C A P I TA L S T R U C T U R E ($ in millions) As of June 30, 2023 CAPITALIZATION: Total Debt $ 358.2 Cash, cash equivalents and restricted cash 83.9 Net Debt $ 274.3 Note: Figures may not be clerically accurate due to rounding. © 2023 Babcock & Wilcox Enterprises, Inc. All rights reserved. BABCOCK
Slide 25: Appendix
APPENDIX © 2023 Babcock & Wilcox Enterprises, Inc. All rights reserved. BABCOCK & WILCOX ENTERPRISES, INC. 25
Slide 26: Leadership Team
LEADERSHIP TEAM Chairman and Chief Executive Officer Kenny Young Executive Vice President Executive Vice President and Executive Vice President, Chief Strategy and and Chief Financial Officer Chief Operating Officer General Counsel and Technology Officer Corporate Secretary Lou Salamone Jimmy B. Mor
Slide 27: Corporate Governance
C O R P O R AT E G O V E R N A N C E BOARD OF DIRECTORS ADVISORY BOARD Chairman and Chief Executive Officer Henry Bartoli Homaira Akbari Rod O’Connor Kenny Young Joseph Tato Rebecca Stahl Peter O’Keefe Phillip Piddington Alan Howe Philip Moeller Eric Powell © 2023 Babcock & Wilcox Enterprises, Inc.
Slide 28: Adjusted EBITDA Reconciliation
A D J U S T E D E B I T D A R E C O N C I L I AT I O N (1) ($ in millions) Twelve Months Ended Twelve Months Ended Twelve Months Ended June 30 2023 December 31, 2022 (3) Dec 31, 2021 (4) 1) Adjusted EBITDA is a non-GAAP Net income (loss) $ (32.4) $ (26.6) $31.5 Measure; figures may not be clerically
Slide 29: Key Technologies and Capabilities
K E Y T E C H N O L O G I E S A N D C A PA B I L I T I E S © 2023 Babcock & Wilcox Enterprises, Inc. All rights reserved. BABCOCK & WILCOX ENTERPRISES, INC. 29
Slide 30: Key Technologies: Steam Generation
KEY TECHNOLOGIES: S T E A M G E N E R AT I O N Utility Boilers Waste-to-Energy Boilers High pressure, high efficiency, high capacity, low Reduces dependency on landfills and reduces emissions methane gas emissions Fuel: Coal, oil, natural gas, multi-fuel Fuel: MSW, RDF Natural Gas-Fired and Other In
Slide 31: Key Technologies: Renewable Combustion Grates
KEY TECHNOLOGIES: R E N E WA B L E C O M B U S T I O N G R AT E S D Y N A G R AT E ® C O M B U S T I O N G R AT E • Large installed base with diverse set of customers • Grate design allows for high availability and long operational time, leading to reduced O&M cost • High thermal efficiency and low
Slide 32: Key Technologies: Emissions Controls
KEY TECHNOLOGIES: EMISSIONS CONTROLS PURPOSE TECHNOLOGY SOLUTION PURPOSE TECHNOLOGY SOLUTION • Pulse Jet Fabric Filters (PJFF) / Baghouses • Powdered Activated Carbon Injection Particulate • Wet and Dry Electrostatic Precipitators (ESPs) Mercury, • Absorption Plus™, MercPlus™, Dioxins, Furans Mitage
Slide 33: Key Technologies: Flue Gas Treatment for Carbon Capture
KEY TECHNOLOGIES: FLUE GAS T R E AT M E N T F O R C A R B O N C A P T U R E • To optimize carbon capture on solvent-based scrubbing technologies, reductions in various pollutants found in the incoming flue gas are required • Our solutions include technologies for acid gases, particulate and acid mis
Slide 34: Key Technologies: Submerged Grind Conveyor Ash Handling
KEY TECHNOLOGIES: SUBMERGED GR IND CO NVEYO R AS H HANDL ING Designated to meet current and future U.S. regulatory requirements for ash handling with: • Lower equipment cost • Lower installation cost • Ability to utilize existing hoppers and gate valves • No hopper modifications • Short outage time
Slide 35: Key Technologies: Cooling Systems
KEY TECHNOLOGIES: COOLING SYSTEMS NATURAL DRAFT/HYPERBOLIC MECHANICAL DRAFT Fanless design provides low power, noise and Counterflow for cost-effective thermal performance; maintenance, as well as long operating lifecycle crossflow for low energy consumption and operating costs WET MATERIAL OPTIONS:
Slide 36: Key Capabilities: Aftermarket Services
K E Y C A PA B I L I T I E S : AFTERMARKET SERVICES Maintaining/improving plant operation: UPGRADES & RETROFITS Projects for extending the life of power, process and environmental equipment Supplying components for system reliability: REPLACEMENT PARTS High-quality standard or custom-engineered pres
Slide 37: Key Technologies: Ignitors, Flame Scanners and Controls
KEY TECHNOLOGIES: IGNITORS, FLAME SCANNERS AND CONTROLS Designed for safety, reliability and fuel flexibility • Natural gas conversions from oil- or coal-firing • Alternative energy fuels such as hydrogen, bio-diesel, methanol, and bio-gas • Burner management and controls for complete turnkey system
Slide 38: Key Capabilities: Solar Installation
K E Y C A PA B I L I T I E S : S O L A R I N S TA L L AT I O N ENGINEERING AND PROCUREMENT CONSTRUCTION • Project Cost Analysis • Subcontractor Management • Grid Integration and Interconnection • On-Site Construction Management • Technical Evaluation • Coordination and Supervision of Projects • Push
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