Babcock & Wilcox Enterprises, Inc. · NYSE:BW

Babcock & Wilcox Enterprises — Q2 2024 Earnings Presentation

36 slides from Babcock & Wilcox Enterprises's earnings presentation, Aug 8, 2024

  1. Slide 1: Company Overview

    C O M PA N Y OV E RV I E W AUGUST 8, 2024 © 2024 Babcock & Wilcox Enterprises, Inc. All rights reserved.

  2. 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 securities laws. All statements other than statements of historical or current fact included in this presentation are forward-looking statements, incl

  3. 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 WE PROVIDE • Today, we are a globa

  4. 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 DELIVERING VALUE SUPPORTING A CIRCULAR ECONOMY THROUGH Ecologically sound ways of using and recycling resources like biomass and TECHNOLOGY-DRIVEN CLEAN ENERGY SOLUTIONS municipal waste to create clean, renewable baseload

  5. 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

  6. Slide 6: Strengthening Our Business to Achieve Profitable Growth

    W E ’ R E S T R E N G T H E N I N G O U R B U S I N E S S TO A C H I E V E P R O F I TA B L E G R O W T H A S W E C O N T I N U E TO P R O V I D E PROVEN CLEAN ENERGY TECHNOLOGIES • Increase focus on higher-margin aftermarket parts and services and continue to expand geographical presence in support

  7. Slide 7: 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 BASE AND PROVEN TECHNOLOGIES  More than 500 waste-to-energy and biomass-to-energy units at 300+ facilities globally (consuming over 61 million tonnes of waste per year) and a leader in plant availability  Serving utility, waste management, mu

  8. Slide 8: Babcock & Wilcox Profile

    BABCOCK & WILCOX PROFILE CORPORATE SNAPSHOT CONSOLIDATED Headquarters: Akron OH, USA Backlog1 as of LTM Revenue June 30, 2024 Founded: 1867 Europe Asia & Other Industrial Parts & Services 30% 15% 35% Ownership: Public (NYSE:BW) 48% 34% 24% 50% 40% Employees: ~2,200 Power Aftermarket North Generation

  9. Slide 9: A Solid Pipeline of Global Opportunities

    A SOLID PIPELINE OF GLOBAL OPPORTUNITIES 2024-2026 Addressable Market Europe 2024-2026 More than $8.5B Addressable Market Asia-Pacific PIPELINE REVENUE More than $9B SPLIT 2024-2026 2024-2026 15-20% Addressable Market Middle East & Africa 20-25% 2024-2026 More than $4B Addressable Market Americas Ot

  10. Slide 10: Global Annual Capital Investment in Carbon Capture and Hydrogen Is Growing

    G L O B A L A N N U A L C A P I TA L I N V E S T M E N T I N CARBON CAPTURE AND HYDROGEN IS GROWING By technology area 5 $224B $158B $240B 4 $150B $390B Technology area $428B Other Fossil fuels Trillions USD (2019) 3 CCUS Hydrogen Electricity system 2 Electrification Efficiency Other renewables Bioe

  11. Slide 11: BrightLoop Hydrogen Production

    BRIGHTLOOP™ HYDROGEN PRODUCTION FEEDSTOCK OPTIONS SIGNIFICANT ADVANTAGES: Nitrogen OUTPUT OPTIONS • Hydrogen from solid fuels – can utilize a BIOMASS for Beneficial Use variety of solid or gaseous fuels as feedstock HYDROGEN • High rate of carbon captured – inherent CO2 isolation supports sequestrat

  12. Slide 12: BrightLoop Hydrogen Production Progress

    BRIGHTLOOP™ HYDROGEN PRODUCTION PROGRESS BRIGHTLOOP™ EVOLUTION 1994-2004 2008 2014 2017 2025 2027 2029 Laboratory Scale Sub-Pilot with Steam & Hydrogen Coal Direct SMALL SCALE MEDIUM SCALE LARGE SCALE The Ohio State University Chemical Looping and B&W National Carbon Capture 1-3 Tonnes Per Day 10-50

  13. Slide 13: Leveraging Decades of Funding Awards and Investments

    L E V E R A G I N G D E C A D E S O F F U N D I N G A WA R D S AND INVESTMENTS CONTINUE TO SCALE THIS INDUSTRY – CHANGING TECHNOLOGY COAL DIRECT CHEMICAL LOOPING (CDCL) NATIONAL CARBON CAPTURE CENTER (NCCC) 2,000 50 OPERATING HOURS STARTUP / SHUTDOWNS 1,000 20 OPERATING HOURS STARTUP / SHUTDOWNS 200

  14. Slide 14: Unlocking Future Revenue Potential of BrightLoop

    UNLOCKING FUTURE REVENUE POTENTIAL OF BRIGHTLOOP™ AND POSITION BASED ON MARKET WITH SIGNIFICANT GROWTH OF HYDROGEN PROJECTED Target Market Share Assumed Mix of Projects 2030 Approximate Revenue Achieving only 1% market share of a 3-5 Large Unit Projects 2-4 Medium Unit Projects ~$1 Billion annual re

  15. Slide 15: Hydrogen Production and Costs

    HYDROGEN PRODUCTION AND COSTS BrightLoop™ produces low-cost hydrogen compared to the competition Levelized cost of hydrogen after support by production route weighted world average 7 6 5 4 USD/kgH2 3 2 Medium BrightLoop Large 1 BrightLoop 0 2020 2030 2050 2020 2030 2050 2020 2030 2050 2020 2030 2050

  16. Slide 16: Global Leader in Clean Power Production Technologies: ClimateBright Suite

    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

  17. Slide 17: Inflation Reduction Act for ClimateBright

    I N F L AT I O N R E D U C T I O N A C T F O R C L I M AT E B R I G H T ™ Clean energy wins Clean Hydrogen Production Tax Credit (PTC): 45V with the Inflation • New 10-year incentive for clean hydrogen production with four tiers and a Reduction Act, maximum of 4 kilograms of CO2 equivalent per kilog

  18. Slide 18: 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 than 30 countries, including: • Annual additions to landfills i

  19. Slide 19: 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

  20. Slide 20: Bioenergy with Carbon Capture and Sequestration (BECCS)

    BIOENERGY WITH CARBON CAPTURE A N D S E Q U E S T R AT I O N ( B E C C S ) B&W’s biomass boilers paired with either OxyBright™ or SolveBright™ produce carbon negative energy with a - 2,500gCO2e/kWh carbon intensity OxyBright with B&W’s WtE solution could produce carbon negative energy with a -1,000

  21. Slide 21: Financial Information

    F I N A N C I A L I N F O R M AT I O N © 2024 Babcock & Wilcox Enterprises, Inc. All rights reserved. BABCOCK & WILCOX ENTERPRISES, INC. 21

  22. Slide 22: Consolidated Financial Summary - Continuing Operations

    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 - C O N T I N U I N G O P E R AT I O N S Six Months Ended Six Months Ended June 30, 2024 June 30, 2023 ($ in millions) Revenue $ 441.2 $ 532.8 Gross margin $ 103.0 $ 115.1 Selling, general and administrative expenses $ 92.0 $ 97.8 Operating inco

  23. Slide 23: Appendix

    APPENDIX © 2024 Babcock & Wilcox Enterprises, Inc. All rights reserved. BABCOCK & WILCOX ENTERPRISES, INC. 23

  24. Slide 24: Capital Structure

    C A P I TA L S T R U C T U R E ($ in millions) As of June 30, 2024 CAPITALIZATION: Total Debt $ 476.8 Senior Notes $ 339.0 Revolving Credit Line $ 46.6 Letter of Credit Collateral* $ 79.2 Other Debt $ 12.0 Cash, cash equivalents and restricted cash $ 202.1 Net Debt $ 274.7 Net Leverage Ratio based o

  25. Slide 25: Leadership Team

    LEADERSHIP TEAM Chairman and Chief Executive Officer Kenny Young Executive Vice President Executive Vice President and Executive Vice President, Chief Technology and Chief Financial Officer Chief Operating Officer General Counsel and Officer Corporate Secretary Lou Salamone Jimmy B. Morgan Brandy Jo

  26. Slide 26: Corporate Governance

    C O R P O R AT E G O V E R N A N C E BOARD OF DIRECTORS ADVISORY BOARD Chairman and Chief Executive Officer Homaira Akbari Rod O’Connor Kenny Young Henry Bartoli Rebecca Stahl Joseph Tato Peter O’Keefe Eric Powell Alan Howe Philip Moeller Naomi Boness © 2024 Babcock & Wilcox Enterprises, Inc. All ri

  27. Slide 27: Key Technologies and Capabilities

    K E Y T E C H N O L O G I E S A N D C A PA B I L I T I E S © 2024 Babcock & Wilcox Enterprises, Inc. All rights reserved. BABCOCK & WILCOX ENTERPRISES, INC. 27

  28. Slide 28: 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

  29. Slide 29: 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 D Y N A G R AT E ® C O M B U S T 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

  30. Slide 30: 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™, Dioxins, Furans Mitage

  31. Slide 31: 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

  32. Slide 32: Key Technologies: Submerged Grind Conveyor Ash Handling

    KEY TECHNOLOGIES: SUBMERGED GR IND CO NVEYO R AS H HANDL ING 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

  33. Slide 33: Key Technologies: Cooling Systems

    KEY TECHNOLOGIES: COOLING SYSTEMS WET HYBRID DRY SERVICES NATURAL DRAFT/HYPERBOLIC HYBRID WET/DRY COOLING AIR-COOLED CONDENSERS OPTIMIZATION SERVICES Fanless design provides low power, Environmentally friendly hybrid Water preservation technology Specialized services to maximize noise and maintenanc

  34. Slide 34: Key Capabilities: Aftermarket Services

    K E Y C A PA B I L I T I E S : AFTERMARKET SERVICES 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-engineered pres

  35. Slide 35: Key Technologies: Ignitors, Flame Scanners and Controls

    KEY TECHNOLOGIES: IGNITORS, FLAME SCANNERS AND CONTROLS Designed for safety, reliability and fuel flexibility • Natural gas conversions from oil- or coal-firing • Alternative energy fuels such as hydrogen, biodiesel, methanol, and biogas • Burner management and controls for complete turnkey system c

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