Babcock & Wilcox Enterprises, Inc. · NYSE:BW
Babcock & Wilcox Enterprises — Investor Presentation (November 2018)
19 slides from Babcock & Wilcox Enterprises's investor presentation, November 2018
Slide 1: Babcock & Wilcox Enterprises, Inc. Company Overview
Babcock & Wilcox Enterprises, Inc. Company Overview November 2018
Slide 2: Safe Harbor Statement
Safe Harbor Statement B&W cautions that this presentation contains forward-looking statements, including, without limitation, statements relating to our strategic objectives; our business execution model; management’s expectations regarding the industries in which we operate; our guidance and foreca
Slide 3: Company Profile
Company Profile B&W is a global leader in providing custom technologies, engineered solutions, and aftermarket services to a broad range of industrial and power generation markets Headquarters: Barberton, Ohio Business model delivers shareholder Founded: 1867 value by driving maximum value for Owner
Slide 4: Business Segment & Strategic Overview
Business Segment & Strategic Overview % Revenue from Strategic Aftermarket Key End Product and 2017 Revenue Focus Parts and Markets Service Offering Services* Utility steam Optimize Our Legacy generation equipment, 81% Utility industrial boilers, Power $821M (includes Retrofit) Business and General
Slide 5: Power Segment
Power Segment Other Industrial 28% US Coal Non-US 59% Coal 14% Majority of revenue generated by aftermarket parts and services for steam generating, environmental and auxiliary equipment for power generation Inter- and other large industrial applications national 17% Services B&W-installed elect
Slide 6: Product & Service Offerings and Key Market Drivers
Product & Service Offerings and Key Market Drivers Over 80% of segment revenue tied to existing installed base Global Parts and Field New Build Utility Industrial Steam Retrofits Engineering Services and Environmental Generation Natural-gas fired package boilers, industrial boilers DESCRIPTION DESCR
Slide 7: Renewable Segment
Renewable Segment O&M 20% Supplies steam-generating systems, environmental and auxiliary equipment WtE 55% and provides operations and maintenance support for waste-to-energy and Biomass 25% biomass power generation applications Product offering meets renewable power standards and/or district he
Slide 8: Dynagrate Pivoting Combustion Grate
Dynagrate® Pivoting Combustion Grate A Market Leader with Differentiating Technology in Waste-to-Energy Solutions 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 emissi
Slide 9: Renewable Projects Update
Renewable Projects Update Target Turnover Percent Complete at End of Q3 2018 Date Project 3, a biomass plant in Denmark, turned Project 1 Q4 2018 over to customer at the end of October 2018; four more projects expected to be turned Project 2 Q4 2018 over to the customers by the end of the year Tur
Slide 10: Industrial Segment (SPIG)
After- Industrial Segment (SPIG) market Custom-engineered environmental and cooling equipment and related Services 25% Cooling Systems 75% aftermarket services Pursuing organic growth with improved profitability by focusing on core geographies and products North America 27% Increasing emphasis
Slide 11: Financial Information
Financial Information © 2018 Babcock & Wilcox Enterprises, Inc. All rights reserved. Proprietary and Confidential 11
Slide 12: Q3 Segment Financial Results Summary
Q3 Segment Financial Results Summary Segment Revenue and Adjusted EBITDA, $ in Millions Power Renewable Industrial Revenue $202.2 $191.1 $108.6 $76.5 $47.5 $34.8 Q3 2017 Q3 2018 Q3 2017 Q3 2018 Q3 2017 Q3 2018 Adjusted EBITDA $21.6 $21.9 ($10.6) ($25.8) ($7.6) ($11.2) Q3 2017 Q3 2018 Q3 2017 Q3 2018
Slide 13: Bookings & Backlog
Bookings & Backlog Bookings1 Backlog3 $343M $234M $1.9B $1.7B $1.7B $239M $1.6B $1.5B $183M $162M2 $126M $0.9B Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Power Renewable Industrial Power Renewable Industrial Strong bookings in Power and solid af
Slide 14: Investment Highlights
Investment Highlights Strong Foundation Significant Earnings Upside Great Brand Associated with Quality, Reliable Delivery and Innovation Solid Underlying Business in Core Power and Industrial Markets Customer and Strategic Partner Relationships Established Platform in Industrial Environmental and C
Slide 15: Appendix
Appendix © 2018 Babcock & Wilcox Enterprises, Inc. All rights reserved. Proprietary and Confidential 15
Slide 16: Skilled Management Team
Skilled Management Team President and Chief Executive Officer Leslie Kass Finance Chief Implementation Officer Joel Mostrom Interim Chief Financial Robert Caruso Officer, as of June 1, 2018 Power Renewable Mark Low Jimmy Morgan Senior Vice President Senior Vice President Retiring in late 2018 Human
Slide 17: Pension Accounting Change
Pension Accounting Change In 2018, we adopted FASB ASU 2017-07, Pension & other postretirement benefit costs (benefits), Consolidated under which the non-service cost Year ended December 31, Current Future components of net periodic benefit cost are (in thousands) 2015 2016 2017 Classification Cla
Slide 18: Summary of Divestiture Activity
Summary of Divesture Activity Babcock & Wilcox Beijing In the first quarter of 2018, sold all joint venture interest in joint venture in Company, Ltd. (BWBC) China, for approximately $21 million In March 2018, sold all assets of emissions monitoring business including the KVB-Enertec Business KVB-En
Slide 19: Reconciliation of Adjusted EBITDA
Reconciliation of Adjusted EBITDA Babcock & Wilcox Enterprises, Inc. Reconciliation of Adjusted EBITDA(1) (In millions) Three months ended Nine months ended September 30, September 30, 2018 2017 2018 2017 Adjusted EBITDA (2) Power segment(3) $ 21.9 $ 21.6 $ 49.5 $ 66.4 Renewable segment (25.8 ) (10.
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