Babcock & Wilcox Enterprises, Inc. · NYSE:BW

Babcock & Wilcox Enterprises — Debt Investor Presentation (December 2021)

42 slides from Babcock & Wilcox Enterprises's debt investor presentation, Dec 7, 2021

1. Slide 1: Investor Presentation December 2021

   BABCOCK & WILCOX ENTERPRISES, INC. © 2021 Babcock & Wilcox Enterprises, Inc. All rights reserved. 1 Investor Presentation December 2021

2. Slide 2: Forward-looking statements

   BABCOCK & WILCOX ENTERPRISES, INC. © 2021 Babcock & Wilcox Enterprises, Inc. All rights reserved. 2 B&W Enterprises cautions that this presentation contains forward - looking statements, including, without limitation, statements r elating to adjusted EBITDA and sales targets, expectations regarding

3. Slide 3: Senior Notes Transaction Summary

   BABCOCK & WILCOX ENTERPRISES, INC. © 2021 Babcock & Wilcox Enterprises, Inc. All rights reserved. 3 Issuer Babcock & Wilcox Enterprises, Inc. (NYSE: BW) Security Senior Unsecured Notes Proposed Ticker / Exchange BWNB / NYSE Offering Size $125,000,000 (1) Notes Offered 5,000,000 (1) Overallotment Opt

4. Slide 4: Executive Summary

   BABCOCK & WILCOX ENTERPRISES, INC. © 2021 Babcock & Wilcox Enterprises, Inc. All rights reserved. 4 Executive Summary B&W's transformation is gaining momentum, with a pipeline of more than $6.5 billion in identified project opportunities in high - growth markets over the next three years, and recent

5. Slide 5: The next generation Babcock & Wilcox

   BABCOCK & WILCOX ENTERPRISES, INC. © 2021 Babcock & Wilcox Enterprises, Inc. All rights reserved. 5 The next generation Babcock & Wilcox is providing innovative environmental and renewable solutions, generating recurring revenues from a broad thermal installed base and expanding globally Next Genera

6. Slide 6: Technologies for Renewable Power, Environment and Steam Generation

   BABCOCK & WILCOX ENTERPRISES, INC. © 2021 Babcock & Wilcox Enterprises, Inc. All rights reserved. 6 Waste - to - energy and biomass - to - energy baseload power, chemical recovery boilers for pulp & paper , long - term energy storage, solar power installation & services Technologies for Renewable Po

7. Slide 7: Installed & Proven Technologies

   BABCOCK & WILCOX ENTERPRISES, INC. © 2021 Babcock & Wilcox Enterprises, Inc. All rights reserved. 7 A vast global installation of B&W’s core technologies at utility and industrial plants, renewable plants and pulp & paper facilities create a large growth opportunity for parts, services and retrofits

8. Slide 8: Company Profile

   BABCOCK & WILCOX ENTERPRISES, INC. © 2021 Babcock & Wilcox Enterprises, Inc. All rights reserved. 8 Company Profile Babcock & Wilcox is a global leader in advanced environmental, renewable and thermal technologies and services for power and industrial applications. B&W Renewable Power Generation 52

9. Slide 9: Global Expansion and 3-Year Pipeline

   BABCOCK & WILCOX ENTERPRISES, INC. © 2021 Babcock & Wilcox Enterprises, Inc. All rights reserved. 9 30 - 40% 20 - 25% 35 - 45% Global Expansion Europe More than $7B 2021 - 2023 Addressable Market Americas Solar: More than $27B Other: More than $8B 2021 - 2023 Addressable Market Middle East & Africa

10. Slide 10: ClimateBright Decarbonization Technologies are Ready

    BABCOCK & WILCOX ENTERPRISES, INC. © 2021 Babcock & Wilcox Enterprises, Inc. All rights reserved. 10 B&W’s ClimateBright TM Decarbonization Technologies are Ready B&W has successfully tested three carbon capture technologies applicable to a wide range of fuels and processes Jointly developed with Th

11. Slide 11: Waste-to-Energy Technology Reduces Methane Emissions

    BABCOCK & WILCOX ENTERPRISES, INC. © 2021 Babcock & Wilcox Enterprises, Inc. All rights reserved. 11 B&W is actively deploying technology today which curbs the global warming impact of methane B&W’s Waste - to - Energy Technology Reduces Methane Emissions Methane has 84 times the Global Warming Pote

12. Slide 12: Recent Acquisition Activity Expands Renewable Segment

    BABCOCK & WILCOX ENTERPRISES, INC. © 2021 Babcock & Wilcox Enterprises, Inc. All rights reserved. 12 On September 30, 2021, B&W acquired a 60% controlling ownership stake in Fosler Construction Company, Inc., a leading U.S. pr ovi der of construction services for the solar energy sector, based in Il

13. Slide 13: Fosler Solar

    BABCOCK & WILCOX ENTERPRISES, INC. © 2021 Babcock & Wilcox Enterprises, Inc. All rights reserved. 13 Reputable Expertise Known for engineering, designing, deploying and maintaining reliable solar solutions Diverse Experience Serving agricultural, commercial, educational, municipal and utility custom

14. Slide 14: Financial Information

    BABCOCK & WILCOX ENTERPRISES, INC. © 2021 Babcock & Wilcox Enterprises, Inc. All rights reserved. 14 Financial Information

15. Slide 15: Consolidated Financial Summary

    BABCOCK & WILCOX ENTERPRISES, INC. © 2021 Babcock & Wilcox Enterprises, Inc. All rights reserved. 15 *COVID - 19 adversely impacted all segments in 2020 and through YTD September 2021; strategic actions taken to - date provide the foundation for a strong end to 2021 and beyond Consolidated Financial

16. Slide 16: Pro Forma Capital Structure

    BABCOCK & WILCOX ENTERPRISES, INC. © 2021 Babcock & Wilcox Enterprises, Inc. All rights reserved. 16 Pro Forma Capital Structure Note: Figures may not be clerically accurate due to rounding. (1) As of 9/30/21, includes total restricted cash of $8.7 million. Of the total restricted cash, $6.9 million

17. Slide 17: Executive Summary

    BABCOCK & WILCOX ENTERPRISES, INC. © 2021 Babcock & Wilcox Enterprises, Inc. All rights reserved. 17 Executive Summary B&W's transformation is gaining momentum, with a pipeline of more than $6.5 billion in identified project opportunities in high - growth markets over the next three years, and recen

18. Slide 18: Appendix

    BABCOCK & WILCOX ENTERPRISES, INC. © 2021 Babcock & Wilcox Enterprises, Inc. All rights reserved. 18 Appendix

19. Slide 19: Leadership Team

    BABCOCK & WILCOX ENTERPRISES, INC. © 2021 Babcock & Wilcox Enterprises, Inc. All rights reserved. 19 Chief Financial Officer Lou Salamone Chief Operating Officer Jimmy Morgan General Counsel John Dziewisz Chairman & Chief Executive Officer Kenny Young Leadership Team Human Resources Jacqueline Opal

20. Slide 20: Board of Directors and Advisory Board

    BABCOCK & WILCOX ENTERPRISES, INC. © 2021 Babcock & Wilcox Enterprises, Inc. All rights reserved. 20 Joseph Tato Philip Moeller Alan Howe Rebecca Stahl Corporate Governance Board of Directors Advisory Board Chairman & Chief Executive Officer Kenny Young Henry Bartoli Rod O'Connor Phillip Piddington

21. Slide 21: Key Market Drivers & Opportunities

    BABCOCK & WILCOX ENTERPRISES, INC. © 2021 Babcock & Wilcox Enterprises, Inc. All rights reserved. 21 B&W is positioned to capitalize on global trends driving the need for environmental and renewable solutions Key Market Drivers & Opportunities Potential for carbon legislation benefits emergent carbo

22. Slide 22: Key Growth Strategies

    BABCOCK & WILCOX ENTERPRISES, INC. © 2021 Babcock & Wilcox Enterprises, Inc. All rights reserved. 22 Core growth strategies focused on driving innovative environmental and renewable technologies, growing aftermarket sales by leveraging the installed base, and expanding internationally in key regions

23. Slide 23: Key End Markets Product and Service Overview

    BABCOCK & WILCOX ENTERPRISES, INC. © 2021 Babcock & Wilcox Enterprises, Inc. All rights reserved. 23 Key End Markets Product and Service Overview Waste - to - Energy Biomass Pulp & Paper Power General Industry Waste - to - energy and biomass technologies, solar, energy storage, aftermarket equipment

24. Slide 24: Adjusted EBITDA Reconciliation, Three Months

    BABCOCK & WILCOX ENTERPRISES, INC. © 2021 Babcock & Wilcox Enterprises, Inc. All rights reserved. 24 Three months ended September 30, 2021 2020 Adjusted EBITDA (2)(3) $ 18.7 $ 26.8 Restructuring activities (4.6) (2.4) Acquisition pursuit and related costs (4.0) — Financial advisory services (0.3) (1

25. Slide 25: Adjusted EBITDA Reconciliation, Twelve Months

    BABCOCK & WILCOX ENTERPRISES, INC. © 2021 Babcock & Wilcox Enterprises, Inc. All rights reserved. 25 Twelve months ended Sep 30, 2021 Dec 31, 2020 Dec 31, 2019 Adjusted EBITDA 57.8 $ 45.1 $ 45.0 Restructuring activities (13.1) (11.8) (11.7) Acquisition pursuit and related costs (4.0) — — Financial a

26. Slide 26: Adjusted Gross Profit Reconciliation, Nine Months

    BABCOCK & WILCOX ENTERPRISES, INC. © 2021 Babcock & Wilcox Enterprises, Inc. All rights reserved. 26 Nine months ended September 30, 2021 2020 Adjusted gross profit (1)(2) Operating income (loss) $ 11.1 $ (3.9) Selling, general and administrative ("SG&A") expenses 111.1 107.6 Advisory fees and settl

27. Slide 27: Adjusted Gross Profit Reconciliation, Twelve Months

    BABCOCK & WILCOX ENTERPRISES, INC. © 2021 Babcock & Wilcox Enterprises, Inc. All rights reserved. 27 (1) Intangible amortization is not allocated to the segments' adjusted gross profit, but depreciation is allocated to the segment s' adjusted gross profit. (2) Adjusted gross profit for the twelve mo

28. Slide 28: Key Technologies

    BABCOCK & WILCOX ENTERPRISES, INC. © 2021 Babcock & Wilcox Enterprises, Inc. All rights reserved. 28 Key Technologies

29. Slide 29: Products & Services Across Our Brands

    BABCOCK & WILCOX ENTERPRISES, INC. © 2021 Babcock & Wilcox Enterprises, Inc. All rights reserved. 29 Aftermarket New Build Note: Gas - fired package boilers are used in coal - fired and renewable plants for start - up or auxiliary power Products & Services Across Our Brands Providing “life of the pl

30. Slide 30: Carbon Capture Technology for the Global Coal Installed Base

    BABCOCK & WILCOX ENTERPRISES, INC. © 2021 Babcock & Wilcox Enterprises, Inc. All rights reserved. 30 Carbon Capture Technology for the 1000 GW of Global Coal Installed Base OxyBright Ρ oxygen - fuel combustion Oxy - coal combustion technology “Near - zero” emissions 30 MW demonstration complete Full

31. Slide 31: BrightLoop Chemical Looping Combustion

    BABCOCK & WILCOX ENTERPRISES, INC. © 2021 Babcock & Wilcox Enterprises, Inc. All rights reserved. 31 Key Technologies: BrightLoop Ρ Chemical Looping Combustion Platform Technology OUTPUT Combustion: Steam Gasification: Hydrogen Partial Oxidation: Syngas BrightLoop Ρ Chemical Looping Technology Natur

32. Slide 32: Steam Generation Technologies

    BABCOCK & WILCOX ENTERPRISES, INC. © 2021 Babcock & Wilcox Enterprises, Inc. All rights reserved. 32 Reduces dependency on landfills and reduces methane gas emissions Fuels: MSW, RDF Waste - to - Energy Boilers Single - drum, industry - standard unit for improved mill operation Fuels: Black liquor P

33. Slide 33: Renewable Combustion Grates

    BABCOCK & WILCOX ENTERPRISES, INC. © 2021 Babcock & Wilcox Enterprises, Inc. All rights reserved. 33 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 flex

34. Slide 34: Emissions Controls

    BABCOCK & WILCOX ENTERPRISES, INC. © 2021 Babcock & Wilcox Enterprises, Inc. All rights reserved. 34 Emission Technology Solution Particulate Control Pulse Jet Fabric Filters (PJFF) / Baghouses Wet and Dry Electrostatic Precipitators (ESPs) Wet Particulate Scrubbers Multiclone ® Dust Collectors Sele

35. Slide 35: Steam Generation & Environmental Solutions Across a Utility Plant

    BABCOCK & WILCOX ENTERPRISES, INC. © 2021 Babcock & Wilcox Enterprises, Inc. All rights reserved. 35 Key Technologies: Steam Generation & Environmental Solutions Across a Utility Plant Steam Generator Technology Pulverizers Furnace Burners and ignitors Sootblowers Pressure parts Air heaters and air

36. Slide 36: Comprehensive Waste-to-Energy Solutions

    BABCOCK & WILCOX ENTERPRISES, INC. © 2021 Babcock & Wilcox Enterprises, Inc. All rights reserved. 36 Field Services Component & System Upgrades Control Systems Replacement & Spare Parts Operation & Maintenance DynaGrate ® combustion grate DynaDischarger ® ash removal Water - cooled wear zones and In

37. Slide 37: Submerged Grind Conveyor Ash Handling

    BABCOCK & WILCOX ENTERPRISES, INC. © 2021 Babcock & Wilcox Enterprises, Inc. All rights reserved. 37 An innovative solution to eliminate ash ponds Key Technologies: Submerged Grind Conveyor Ash Handling Designed to meet current and future U.S. regulatory requirements for ash handling with: Lower equ

38. Slide 38: Solar Installation

    BABCOCK & WILCOX ENTERPRISES, INC. © 2021 Babcock & Wilcox Enterprises, Inc. All rights reserved. 38 Benefits of a solar addition: 1. Powering up/down operations 2. Supplemental/plant energy source 3. Additional MW/GW output Key Technologies: Solar Installation High efficiency. Low emissions. Integr

39. Slide 39: Short and Long Duration Energy Storage

    BABCOCK & WILCOX ENTERPRISES, INC. © 2021 Babcock & Wilcox Enterprises, Inc. All rights reserved. 39 Key Technologies: Short and Long Duration Energy Storage Short and long duration energy storage smooths renewable energy peaks and bridges weather events NREL Enduring: (8 - 100 hours storage) Electr

40. Slide 40: Cooling Systems

    BABCOCK & WILCOX ENTERPRISES, INC. © 2021 Babcock & Wilcox Enterprises, Inc. All rights reserved. 40 Specialized services to maximize plant performance and minimize costs and maintenance Optimization Services Water preservation technology customized for high - performance, long - life, low noise, co

41. Slide 41: Global Parts & Service Upgrades & Retrofits

    BABCOCK & WILCOX ENTERPRISES, INC. © 2021 Babcock & Wilcox Enterprises, Inc. All rights reserved. 41 Key Technologies: Global Parts & Service Upgrades & Retrofits Replacement Parts Optimization Systems Engineering Services Adding value through constructability: Safe execution of new installation, re

42. Slide 42: & Wilcox Enterprises, Inc. All rights reserved.

    BABCOCK & WILCOX ENTERPRISES, INC. © 2021 Babcock & Wilcox Enterprises, Inc. All rights reserved. 42

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