Babcock & Wilcox Enterprises, Inc. · NYSE:BW
Babcock & Wilcox Enterprises — Investor Presentation (February 2021)
37 slides from Babcock & Wilcox Enterprises's investor presentation, Feb 9, 2021
Slide 1: Investor Presentation February 2021
Investor Presentation February 2021 B A B CO CK & W I L C O X E N T E R PR I S E S , I N C. 1 © 2021 Babcock & Wilcox Enterprises, Inc. All rights reserved.
Slide 2: Safe Harbor Statement
Safe Harbor Statement B A B CO CK & W I L C O X E N T E R PR I S E S , I N C. 2 © 2021 Babcock & Wilcox Enterprises, Inc. All rights reserved. B&W Enterprises cautions that this presentation contains forward-looking statements, including, without limitation, statements relating to adjusted EBITDA an
Slide 3: Transaction Summary
Transaction Summary 1. Actual offering size may differ from the figures shown; offering size and pricing to be determined by negotiations between the Company and the underwriters. B A B CO CK & W I L C O X E N T E R PR I S E S , I N C. 3 © 2021 Babcock & Wilcox Enterprises, Inc. All rights reserved.
Slide 4: Executive Summary
Executive Summary Strong Global Brand Babcock & Wilcox has provided high-quality, innovative renewable, environmental and thermal technologies for critical power generation and industrial applications for more than 150 years. Executing a Transformation B&W is executing a robust growth strategy after
Slide 5: Next Generation B&W
Next Generation B&W B&W FOUNDATION DRIVES GROWTH STRATEGY A Circular Economy For our economy and future generations, we continually develop ecologically sound ways of recycling resources, like biomass and waste, to create clean, renewable baseload power while reducing greenhouse gas emissions. Advan
Slide 6: What We Do
What We Do Technologies for Renewable Power & Resource Recovery Waste-to-energy and biomass-to-energy baseload power, chemical recovery boilers for pulp & paper, multi-fuel technology, Dynagrate® and vibrating combustion grates RENEWABLE Technologies for a Clean Environment Emissions controls, ash h
Slide 7: Installed & Proven Technologies
Installed & Proven Technologies More than 500 waste-to-energy and biomass-to-energy units at more than 300 facilities in more than 30 countries, serving a wide range of utility, waste management, municipality and investment firm customers Combined installed capacity of our WtE technology is more tha
Slide 8: Company Profile: Corporate Snapshot
Babcock & Wilcox is a global leader in advanced environmental, renewable and thermal technologies and services for power and industrial applications. Company Profile Corporate Snapshot Consolidated 61% 62% 31% 48% 41% 34% 52% Europe America Generation & Upgrades Europe Build Note: All charts based o
Slide 9: Global footprint and ongoing expansion positions B&W to leverage market trends
Global footprint and ongoing expansion positions B&W to leverage market trends around the world Global Expansion Addressable Market Europe More than $7B 2021-2023 Addressable Market Asia-Pacific More than $8B Addressable Market Middle East & Africa More than $4B Manufacturing Service Facilities Futu
Slide 10: B&W's Waste-to-Energy Technology Reduces Methane Emissions
B&W’s Waste-to-Energy Technology Reduces Methane Emissions i Methane has 84 times the Global Warming Potential (GWP) of CO2 Annual additions to landfills in the U.S.ii produce emissions equivalent to 10 million cars Landfills in the U.S.iii emit more than 330 million tons of 20-year basis GWP each y
Slide 11: B&W's Carbon Capture Technologies are Ready for Commercial Demonstration
B&W’s Carbon Capture Technologies are Ready for Commercial Demonstration B&W is at the forefront of developing CO2 capturing technologies Multiple technologies ready for commercial demonstration 93 active patents related to carbon capture technology Positioned to provide critical solutions to meet g
Slide 12: Financial Information
Financial Information B A B CO CK & W I L C O X E N T E R PR I S E S , I N C. 12 © 2021 Babcock & Wilcox Enterprises, Inc. All rights reserved.
Slide 13: Consolidated Financial Summary
Consolidated Financial Summary Preliminary Twelve Months Ended Twelve Months Ended December 31, 2019 December 31, 2020* ($ in Millions) Revenue $ 566.3 $ 859.1 Adjusted Gross Profit $ 173.6 $ 164.0 Adjusted Gross Profit Margin % 30.7% 19.1% Operating Income (Loss) $ (1.7) $ (29.4) Adjusted EBITDA $
Slide 14: Pro Forma Capital Structure
Pro Forma Capital Structure Pro Forma Stock Offering Adjustments(1) Pro Forma Notes Offering Adjustments(2) Pro Forma Debt Repayment / Conversion Adjustments(3) Preliminary As of Dec 31, 2020 Pro Forma Total(1)(2)(3) ($ in Millions) Revolving Credit Facility - Funded(4) Last-Out Term Loans(5) Senior
Slide 15: Executive Summary
Executive Summary Strong Global Brand Babcock & Wilcox has provided high-quality, innovative renewable, environmental and thermal technologies for critical power generation and industrial applications for more than 150 years. Executing a Transformation B&W is executing a robust growth strategy after
Slide 16: Appendix
Appendix B A B CO CK & W I L C O X E N T E R PR I S E S , I N C. 16 © 2021 Babcock & Wilcox Enterprises, Inc. All rights reserved.
Slide 17: Leadership Team
Leadership Team Chairman & Chief Executive Officer Kenny Young General Counsel Chief Financial Officer Chief Operating Officer Lou Salamone Jimmy Morgan John Dziewisz Corporate Development & Investor Relations Human Resources Jacqueline Opal Megan Wilson B A B CO CK & W I L C O X E N T E R PR I S E
Slide 18: Key Market Drivers & Opportunities
Key Market Drivers & Opportunities Global drive toward renewable and reusable energy sources Increasing global regulatory restrictions on landfilling benefit waste-to-energy New EU regulations require higher emissions standards An aging utility boiler installed base drives stable aftermarket in the
Slide 19: Key Growth Strategies
Key Growth Strategies Grow by expanding sales, service and business development teams in key international regions to serve the broad renewable, environmental and thermal markets Meet the global need for carbon reduction with patented renewable waste-to-energy & biomass and carbon-capture solutions
Slide 20: Ongoing Transformation
Ongoing Transformation Key strategic actions have returned the company to positive performance and positioned it for growth Focus on Strengths markets Focus on quality, high margin projects rather Leverage a vast installed base and robust historically profitable business model, with no EPC scope Fin
Slide 21: Financial Reporting Segments
Financial Reporting Segments Service Overview industrial boilers, boiler cleaning, parts and service Note: Financial performance reported under new segments starting with Q3 2020 results; segment results for prior periods have been restated for comparative purposes. B A B CO CK & W I L C O X E N T E
Slide 22: Preliminary Adjusted EBITDA Reconciliation
Preliminary Adjusted $ in Millions EBITDA Reconciliation(4) Twelve months ended December 31, 2020 2019 Adjusted EBITDA (2)(3) 45.1 33.3 Restructuring activities Financial advisory services Settlement cost to exit Vølund contract (1) Advisory fees for settlement costs and liquidity planning Litigatio
Slide 23: Preliminary Gross Profit Reconciliation
Preliminary Gross Profit Reconciliation(4) Twelve months ended December 31, $ in Millions 2020 2019 Adjusted gross profit (1) (2)(3) Operating income (loss) Selling, general and administrative ("SG&A") expenses Advisory fees and settlement costs Intangible amortization expense Restructuring activiti
Slide 24: Key Technologies
Key Technologies B A B CO CK & W I L C O X E N T E R PR I S E S , I N C. 24 © 2021 Babcock & Wilcox Enterprises, Inc. All rights reserved.
Slide 25: Products & Services Across Our Brands
Products & Services Across Our Brands Steam Generation Technologies Natural Gas-fired Package Boilers Boiler Auxiliaries Combustion Grates Construction Emissions Control Solutions Cooling Systems Ash and Material Handling Operations & Maintenance Field Service Inspections Parts Retrofits/Upgrades Co
Slide 26: Key Technologies: Steam Generation Technologies
Key Technologies: Steam Generation Technologies Utility Boilers Waste-to-Energy Boilers Natural Gas-Fired and Other Industrial Water-Tube Boilers Biomass-Fired Boilers Process Recovery Boilers B A B CO CK & W I L C O X E N T E R PR I S E S , I N C. 26 © 2021 Babcock & Wilcox Enterprises, Inc. All ri
Slide 27: Key Technologies: Renewable DynaGrate Pivoting Combustion Grate
Key Technologies: Renewable DynaGrate® Pivoting Combustion Grate 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 emissions Fuel flexibility Factory assembled modules re
Slide 28: Key Technologies: Emissions Controls
Key Technologies: Emissions Controls Emission Technology Solution x 3 B A B CO CK & W I L C O X E N T E R PR I S E S , I N C. 28 © 2021 Babcock & Wilcox Enterprises, Inc. All rights reserved. Wastewater Elimination Wastewater Evaporation System (WES) via Spray Drying Air-Cooled Condensers Mercury, D
Slide 29: Steam Generation & Environmental Solutions Across a Utility Plant
Steam Generation & Environmental Solutions Across a Utility Plant Key Technologies: Particulate Control Technologies Environmental Solutions Steam Generator Technology Pulverizers Furnace Burners and ignitors Sootblowers Pressure parts Air heaters and air heating cleaning systems Bottom ash handling
Slide 30: Steam Generation, Combustion Grates & Flue Gas Treatment Across a Waste-to-Energy Plant
Steam Generation, Combustion Grates & Flue Gas Treatment Across a Waste-to-Energy Plant Key Technologies: Proven, proprietary DynaGrate® combustion grate offers high reliability, maximizing waste throughput and MW output Advanced NextBAT® technology provides a thermal efficiency of 99% and 95-99% cl
Slide 31: Key Technologies: Submerged Grind Conveyor Ash Handling
Key Technologies: Submerged Grind Conveyor Ash Handling Designed to meet current and future U.S. regulatory requirements for ash handling with: Lower equipment cost Lower installation cost • Utilize existing hoppers and gate valves • No modification to hopper Short outage required Short lead time Av
Slide 32: Key Technologies: Clean Coal Solutions Ready for Deployment
Key Technologies: Clean Coal Solutions Ready for Deployment Oxy-Fired Combustion Oxy-coal combustion technology “Near-zero” emissions 30 MW demonstration complete Full-scale design ready RSAT TM (Regenerable Solvent Absorption Technology) Post-combustion technology Patented amine-based solvent proce
Slide 33: Key Technologies: Chemical Looping Combustion (CLC) in Development
Key Technologies: Chemical Looping Combustion (CLC) in Development Advanced process for clean power generation and CO2 capture A flameless, oxy-combustion process using oxidation-reduction reactions to process fuel and produce energy for power generation Produces a concentrated CO2 stream that can b
Slide 34: Key Technologies: Cooling Systems
Key Technologies: Cooling Systems WET DRY B A B CO CK & W I L C O X E N T E R PR I S E S , I N C. 34 © 2021 Babcock & Wilcox Enterprises, Inc. All rights reserved. Optimization Services Specialized services to maximize plant performance and minimize costs and maintenance Air Fin Coolers Cost-effecti
Slide 35: Key Technologies: Global Parts & Service
Key Technologies: Global Parts & Service Maintaining/improving plant operation: Projects for extending the life of power, process and environmental equipment Upgrades & Retrofits Supplying components for system reliability: High-quality standard or custom-engineered pressure and non-pressure parts R
Slide 36: Key Technologies: Eos Energy Storage
Key Technologies: Eos Energy Storage October 2020 partnership with Eos Energy Storage, LLC to sell and service Eos’ innovative, patented Eos Znyth® zinc battery solution for industrial and utility-scale energy storage adds a new clean energy technology capability to B&W’s range of renewable energy s
Slide 37: r BWI BABCOCK & WILCOX NEW ABLE BWI BABCOCK & WILCOX IRONMENTAL r WBABCOCK
r BWI BABCOCK & WILCOX NEW ABLE BWI BABCOCK & WILCOX IRONMENTAL r WBABCOCK B-& WILCOX ERMAL
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