Babcock & Wilcox Enterprises, Inc. · NYSE:BW
Babcock & Wilcox Enterprises — Investor Presentation (March 2023)
36 slides from Babcock & Wilcox Enterprises's investor presentation, Mar 15, 2023
Slide 1: Company Overview
C O M PA N Y OV E RV I E W MARCH 15, 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 s ecurities laws. All s tatements other than s tatements of historical or current fact included in this pres entation are forward-looking statements,
Slide 3: We're a Global Energy Leader Creating a Brighter Future
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 THROUGH CLEAN ENERGY SOLUTIONS Ecologically sound ways of using and recycling resources like biomass, 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 C L E A N P O W E R S O LU T I O N S 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 DRIVIN
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 BA S E A N D PROVE N T E C H N OLOGI E S More than 500 waste-to-energy and biomass-to-energy units at 300+ facilities globally Serving utility, waste management, municipality and investment firm customers Extensive expertise in managing a
Slide 9: Babcock & Wilcox Profile
BA BC OC K & WI L C OX PROF I L E CORPORATE SNAPSHOT CONSOLIDATED Headquarters: Akron OH, USA Backlog1 as of LTM Revenue December 31, 2022 Founded: 1867 Europe Asia & Other Industrial Parts & Services 23% 17% 21% Ownership: Public (NYSE:BW) 32% 44% 17% 47% 38% Employees: ~2150 Power Aftermarket Nort
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 Middle East & Africa 15-25% More than $4B Manufacturing 2023-2025 Addressable Market
Slide 11: BrightLoop Hydrogen Production
BRIGHTLOOP HYDROGEN PRODUCTION TM FEEDSTOCK Nitrogen OUTPUT for Beneficial Use SOLID ADVANTAGES: • Hydrogen from solid fuels – can utilize a BIOMASS variety of solid or gaseous fuels as STEAM feedstock BIOGAS • High rate of carbon captured – inherent CO2 isolation without the need for POWER NATURAL
Slide 12: BrightLoop Hydrogen Production Progress
BRIGHTLOOP HYDROGEN TM PRODUCTION PROGRESS TM BRIGHTLOOP EVOLUTION COMPLETED IN PROGRESS INDUSTRIAL COMMERCIAL UTILITY COMMERCIAL Laboratory Scale Sub-Pilot with Steam & Hydrogen The Ohio State University 2.5 to 25 Megawatts Thermal 100 to 550 Megawatts Thermal 25 Kilowatts Thermal and B&W 1.5 to 15
Slide 13: Global Leader in Clean Power Production Technologies
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 14: 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 15: Net-Negative Carbon Intensity for Biomass and Municipal Solid Waste
N E T - N E G AT I V E C A R B O N I N T E N S I T Y F O R B I O M A S S A N D M U N I C I PA L S O L I D WA S T E 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 negativ
Slide 16: 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 • Annual additions to landfills in the U.S.ii produce emissions
Slide 17: 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. 17
Slide 18: 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) December 31, 2022 December 31, 2021 December 31, 2020 Revenue $ 889.8 $ 723.4 $ 566.3 Operating Income (loss) $ (4.2) $ 20.8 $ (1.7) Net Income (loss) $ (26.6) $ 31.5 $
Slide 19: Capital Structure
C A P I TA L S T R U C T U R E ($ in millions) As of December 31, 2022 CAPITALIZATION: Total Debt $ 353.00 Cash, cash equivalents and restricted cash 113.50 Net Debt $ 239.50 TOTAL DEBT LEVERAGE: LTM 12/31/2022 Adjusted EBITDA(1) 72.40 Net Leverage(2) 3.31x Note: Figures may not be clerically accura
Slide 20: Appendix
APPENDIX © 2023 Babcock & Wilcox Enterprises, Inc. All rights reserved. BABCOCK & WILCOX ENTERPRISES, INC. 20
Slide 21: Leadership Team
LEA DERS H I P T EA M 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 Sa lamone Ji mm
Slide 22: Corporate Governance
C O R P O R AT E G O V E R N A N C E B OA R D OF D IR ECTOR S ADVISORY BOARD Chairman and Chief Executive Officer Henry Ba rtoli Homa ira Akbari Rod O’Connor Kenny Young Jos eph Ta to Rebecca Stahl Peter O’Keefe Phi l lip Pi ddington Al a n Howe Phi l ip Moeller Eri c Powell © 2023 Babcock & Wilcox
Slide 23: 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) ($ i n mi llions) Twelve Months Ended Twelve Months Ended Twelve Months Ended December 31, 2022 (4) Dec 31, 2021 Dec 31, 2020 (3) 1) Adjusted EBITDA is a non-GAAP Net income (loss) $ (26.6) $31.5 $ (10.3) Measure; figures may not be clerical
Slide 24: Key Technologies and Capabilities
K E Y T EC 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. 24
Slide 25: 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 26: 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 DY NA G R AT E ® CO M B UST 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 emiss
Slide 27: 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™, Mitagent™ Additives Co
Slide 28: Key Technologies: Submerged Grind Conveyor Ash Handling
KEY TECHNOLOGIES: SUBMERGED GRIND CONVEYOR ASH HANDLING 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 • Sho
Slide 29: 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 30: 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 31: Key Capabilities: Global Parts & Service
K E Y C A PA B I L I T I E S : G L O B A L PA R T S & S E R V I C E 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
Slide 32: Key Technologies: Ignitors, Flame Scanners and Controls
KEY T EC H N OLOGI ES : I GN I TORS , F LA M E S C A N N ERS A N D C ON T ROLS 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
Slide 33: Key Technologies: Engineered Products and HRSG Components
KEY TECHNOLOGIES: ENGINEERED PRODU C T S A N D H RS G C OM PON EN TS ENGI NEER ED PR O D UCTS A ND SO LUTI O NS, QUA LI TY MA NUFA CTUR I NG • Comprehensive mechanical and process design upgrades • Chanute, Kansas, manufacturing facility has produced more HRSG components than any other facility in N
Slide 34: 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
Slide 35: Key Technologies: Long Duration Energy Storage
KEY TECHNOLOGIES: L O N G D U R AT I O N E N E R G Y S T O R A G E • B&W offers Pressurized or Atmospheric Fluidized Bed technology for long duration energy storage • B&W also has an exclusive option to license NREL’s Enduring long duration energy storage technology NREL Enduring: (8-100 hours stora
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