Babcock & Wilcox Enterprises, Inc. · NYSE:BW
Babcock & Wilcox Enterprises — Gateway Investor Conference 2020
35 slides from Babcock & Wilcox Enterprises's conference presentation, Sep 10, 2020
Slide 1: Company Overview
Company Overview Gateway Investor Conference September 10, 2020 © 2020 Babcock & Wilcox Enterprises, Inc. All rights reserved. BABCOCK & WILCOX ENTERPRISES, INC. 1
Slide 2: Safe Harbor Statement
Safe Harbor Statement B&W cautions that this release contains forward-looking statements, including, without limitation, statements relating to adjusted EBITDA and sales targets, expectations regarding future growth, expansion and profitability, as well as statements about B&W’s future pipeline of n
Slide 3: Executive Summary
Executive Summary Babcock & Wilcox has provided high-quality, innovative environmental, renewable and thermal technologies for critical power generation and industrial applications for more than 150 years. B&W is executing a robust growth strategy after: • Recovering from losses related to several e
Slide 4: Next Generation B&W
Next Generation B&W B&W FOUNDATION DRIVES GROWTH STRATEGY Advanced Technologies The Clear Choice for Our Climate As an industry leader in providing advanced air emissions control and energy recovery equipment and technologies, our engineered solutions are designed High-Growth End Markets to reduce t
Slide 5: Leadership Team
Leadership Team Chairman & Chief Executive Officer Kenny Young Chief Financial Officer Chief Strategy Officer Chief Operating Officer General Counsel Lou Salamone Henry Bartoli Jimmy Morgan John Dziewisz © 2020 Babcock & Wilcox Enterprises, Inc. All rights reserved. BABCOCK & WILCOX ENTERPRISES, INC
Slide 6: Ongoing Transformation
Ongoing Transformation Key strategic actions have returned the company to positive performance Focus on Strengths and positioned it for growth ACTION ACHIEVED ONGOING Focus on core products and services for November 2018 New Senior Management Team led by Kenny Young ✓ environmental, renewable and
Slide 7: Company Profile
Babcock & Wilcox is a global leader in advanced environmental, renewable Company Profile and thermal technologies and services for power and industrial applications. Corporate Snapshot Consolidated Headquarters: Akron OH, USA 20% Founded: 1867 Industrial Parts & Services Europe Asia & Other 41% 48%
Slide 8: 3-Year Pipeline
3-Year Pipeline $450 Target 2023: >$1 billion sales $300 $211 $ MILLIONS $ $34 Americas APAC Europe ME/A $840 20-25% $437 $350 35-45% $190 $ MILLIONS $ Americas APAC Europe ME/A $1239 40-50% $532 $347 $ MILLIONS $ $41 Americas APAC Europe ME/A Total pipeline greater than $5B over the next 3 years ex
Slide 9: What We Do
What We Do Environmental Technologies - Integrated, custom solutions for utility/industrial emissions control Ash and Material Handling - Bottom and fly ash material handling Cooling Systems - Custom engineered wet, dry and hybrid cooling solutions for power plants Renewable Waste-to-Energy - Waste-
Slide 10: Installed Base
Installed Base Renewable Waste-to-Energy & Biomass-to-Energy combustion grate and boiler installed base: More than 500 production lines at more than 300 facilities in more than 30 countries, serving a wide range of utility, waste management, municipality and investment firm customers Renewable Was
Slide 11: 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 12: Key Growth Strategies
Key Growth Strategies Grow by expanding sales, service and business development teams in key international regions to serve the broad environmental, renewable and thermal markets Meet the global need for carbon reduction with patented renewable waste-to-energy & biomass and carbon-capture solutions
Slide 13: Global Expansion
Global footprint and ongoing expansion positions Global Expansion B&W to leverage market trends around the world 2021-2023 Addressable Market Europe More than $7B 2021-2023 Addressable Market 2021-2023 Americas 2021-2023 Addressable Market Addressable Market More than $8B Middle East & Africa Asia-P
Slide 14: Financial Information
Financial Information © 2020 Babcock & Wilcox Enterprises, Inc. All rights reserved. BABCOCK & WILCOX ENTERPRISES, INC. 14
Slide 15: Future Financial Reporting Segments for Improved Visibility
Future Financial Reporting Segments for Improved Visibility Product and Key End Markets Service Overview Power Air emissions control and ash handling Oil and Gas systems, cooling and energy recovery, Pulp & Paper aftermarket equipment upgrades, General Industry parts and service Waste-to-Energy Wast
Slide 16: Consolidated Financial Summary
Consolidated Financial Summary Twelve Months Ended Twelve Months Ended ($ in Millions) December 31, 2019 June 30, 2020* Revenue $ 859.1 $ 663.0 Adjusted Gross Profit $ 164.0 $ 155.8 Adjusted Gross Profit Margin % 19.1% 23.5% Operating Loss $ (29.4) $ (11.2) Adjusted EBITDA $ 33.3 $ 31.6 Adjusted EBI
Slide 17: Pro-Forma LTM Adjusted EBITDA
Pro-Forma LTM Adjusted EBITDA Twelve Months Ended ($ in Millions) June 30, 2020(3) Adjusted EBITDA as Reported $ 31.6 Pro Forma Adjustments: Losses from Asset Held for Sale 2.8 Vølund EPC Contract Losses(1) 1.7 SPIG U.S. Losses(2) 4.9 Annualization of Cost Savings 16.2 Total Pro Forma Adjustments $
Slide 18: Capital Structure
Capital Structure ($ in Millions) As of June 30, 2020 Debt: Revolving Credit Facility – Funded (1) 164.7 Last-Out Term Loans (2) 173.3 Total Debt $338.0 Unrestricted Cash 36.8 Net Debt $301.2 Revolver Leverage: Net Leverage 4.1x Funded revolver less unrestricted cash compared to Q2 2020 LTM EBITDA P
Slide 19: Key Technologies
Key Technologies © 2020 Babcock & Wilcox Enterprises, Inc. All rights reserved. BABCOCK & WILCOX ENTERPRISES, INC. 19
Slide 20: Products & Services Across Our Brands
Products & Services Across Our Brands Steam Generation Technologies Natural Gas-fired Package Boilers Boiler Auxiliaries Combustion Grates Construction New Build New Emissions Control Solutions Cooling Systems Ash and Material Handling Operations & Maintenance Field Service Inspections Parts Afterma
Slide 21: Key Technologies: Patents
Key Technologies More Than 17,000 Patents In B&W’s History 1200 active patents worldwide including: Particulate control Waste-to-energy Steam Generator Technologies • Nitrogen oxide (NOx) removal Biomass-to-energy • Pulverizers 577 active patents for 91 environmental equipment Sulfur r
Slide 22: Key Technologies: Steam Generation Technologies
Key Technologies: Steam Generation Technologies Utility Boilers Waste-to-Energy Boilers High pressure, high efficiency, high capacity, low emissions Reduces dependency on landfills and reduces methane gas emissions Fuel: Coal, oil, natural gas, multi-fuel Fuels: MSW, RDF Natural Gas-Fired and Other
Slide 23: Key Technologies: Emissions Controls
Key Technologies: Emissions Controls Emission Technology Solution Pulse Jet Fabric Filters (PJFF) / Baghouses Wet and Dry Electrostatic Precipitators (ESPs) Particulate Control Wet Particulate Scrubbers Multiclone® Dust Collectors Selective Catalytic and Non-catalytic Reduction (SCR/SNCR)
Slide 24: Key Technologies: Renewable Combustion Grates
Key Technologies: Renewable Combustion Grates 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
Slide 25: Key Technologies: Across a Utility Plant
Steam Generation & Environmental Solutions Key Technologies: Across a Utility Plant Particulate Control Steam Generator Technology Technologies Environmental Solutions Pulverizers Particulate control Dry Scrubbing Nitrogen oxides (NOx) removal Furnace Technologies Burners and ignitors Su
Slide 26: Key Technologies: Across a Waste-to-Energy Plant
Steam Generation, Combustion Grates & Flue Gas Treatment Key Technologies: Across a Waste-to-Energy Plant 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
Slide 27: 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
Slide 28: Key Technologies: Clean Coal Solutions Ready for Deployment
Key Technologies: Clean Coal Solutions Ready for Deployment TM Oxy-Fired Combustion RSAT (Regenerable Solvent Absorption Technology) Oxy-coal combustion technology Post-combustion technology “Near-zero” emissions Patented amine-based solvent process 30 MW demonstration complete Pilot com
Slide 29: Key Technologies: Chemical Looping Combustion 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 tha
Slide 30: Key Technologies: Cooling Systems
Key Technologies: Cooling Systems Natural Draft/Hyperbolic Mechanical Draft Fanless design provides low power, noise Counterflow for cost-effective thermal and maintenance, as well as long operating performance; crossflow for low energy WET lifecycle consumption and operating costs MATERIAL OPTIONS:
Slide 31: Appendix
Appendix © 2020 Babcock & Wilcox Enterprises, Inc. All rights reserved. BABCOCK & WILCOX ENTERPRISES, INC. 31
Slide 32: Current Financial Reporting Segments
Current Financial Reporting Segments Product and Key End Markets Service Overview Utility steam generation equipment, Utility industrial boilers, environmental Babcock & Wilcox General Industrial solutions, aftermarket parts and service Waste-to-energy and biomass steam generating equipment, Vølund
Slide 33: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation Twelve months ended Twelve months ended June December 31, 2019 30, 2020 $ in Millions Loss before income tax (benefit) expense $ (124.4) $ (100.4) Interest expense, net 94.0 94.1 Depreciation & amortization 23.6 18.0 Foreign exchange 16.6 18.2 Advisory fees for settlem
Slide 34: Gross Profit Reconciliation
Gross Profit Reconciliation $ in Millions Twelve months ended Twelve months ended June December 31, 2019 30, 2020 Adjusted gross profit (loss) (1) Operating loss $ (29.4) $ (11.2) Selling, general and administrative expenses 150.6 138.4 Advisory and settlement costs 27.9 15.8 Amortization expense 4.
Slide 35: © 2020 Babcock & Wilcox Enterprises, Inc. All rights reserved. BABCOCK & WILCOX ENTERPRISES, INC. 35
© 2020 Babcock & Wilcox Enterprises, Inc. All rights reserved. BABCOCK & WILCOX ENTERPRISES, INC. 35
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