Babcock & Wilcox Enterprises, Inc. · NYSE:BW
Babcock & Wilcox Enterprises — Investor Presentation (February 2016)
25 slides from Babcock & Wilcox Enterprises's investor presentation, February 2016
Slide 1: Company Overview
Company Overview February 2016 © Babcock & Wilcox Enterprises, Inc. All rights reserved. 1
Slide 2: Safe Harbor Statement
Safe Harbor Statement Forward-looking statements. Babcock & Wilcox Enterprises, Inc. (“B&W”) cautions that this presentation contains forward-looking statements, including, without limitation, statements relating to backlog, to the extent it may be viewed as an indicator of future revenues; manageme
Slide 3: Company Profile
Company Profile • Global leader in energy and environmental technologies and services for the power and industrial markets Headquarters: Charlotte, NC • Installed electricity generation capacity of more than 300,000 MW Incorporation: Delaware in more than 90 countries Ownership: Public (NYSE:BW) • A
Slide 4: Business Model Delivers Maximum Customer Value
Business Model Delivers Maximum Customer Value B&W engineers custom solutions that are difficult to replicate and are fundamental to reliable operations and regulatory compliance Manufacturing Complex Strategic Project Customer Custom Engineering Management Sourcing Technology Relationship and Desig
Slide 5: Consolidated Revenue Overview
Consolidated Revenue Overview 2015 B&W Revenue Breakdown Other Asia 6% 7% US Coal Industrial, 37% Renewable Europe North & Gas 19% America 50% 68% Non-US Coal 13% Aftermarket coal in the U.S. will be a solid base for the business while our strategy drives growth and diversification © Babcock & Wilco
Slide 6: Business Segments Align with Growth Strategy
Business Segments Align with Growth Strategy Global Services Optimize • Parts and technical services Our Business and • Service projects Improve Efficiency • Construction services • Operations and maintenance Global Power • Utility steam generation Pursue Core Growth in • Renewable power Internation
Slide 7: Global Services Overview
Global Services Overview 2015 Revenue by Segment • Aftermarket products and services for steam generating equipment and associated 74% environmental and auxiliary equipment Service Construction U.S. Projects Services • Servicing B&W installed electricity generation 32% 30% capacity of approximately
Slide 8: Market Opportunity
Market Opportunity 2015 Total Revenue Breakdown 2015 Non-Coal Revenue Breakdown Renewable • Biomass 44% Natural • Waste to Energy Non-Coal International Gas 35% U.S. 18% General Industry Coal General • Petrochemical, Industry Renewable Refinery 55% 25% • Pulp & Paper Intl. Coal 57% • Manufacturing 5
Slide 9: Ongoing Rationalization of Operations
Ongoing Rationalization of Operations Cambridge, B&W Foundry Melville, Diamond Power West Point, MS Ontario (Barberton, OH) Saskatchewan Restructuring Relocation to Monterrey Ceased fossil Operations closed in Plant mothballed upon Integration of parts facility to be completed operations in 2014 Jun
Slide 10: Global Power Overview
Global Power Overview 2015 Revenue by Segment • Steam generating systems for fossil fuels and renewable energy conversion for power generation and industrial uses 64% International • Environmental solutions include New Build Environmental emissions control products and 24% related equipment $640.0M
Slide 11: Market Opportunity
Market Opportunity Select Fuels Generating Capacity (GWe) by Region 4,000 Coal Natural Gas Renewables 3,000 2,000 1,000 0 2015 2025 2015 2025 2015 2025 2015 2025 NorthNorth America EMEA CtlCentral & So America / South Asia Pacific EMEA Asia Pacific America America Source: IHS Energy Scenarios (Rival
Slide 12: Recent Project Awards Demonstrate Global Expansion is Underway
Recent Project Awards Demonstrate Global Expansion is Underway Waste-to-Energy Power Plant in England January 2016 – >$90M Biomass Power Plant in England September 2015 – >$190M Emissions Control Project in Colorado March 2015 – $40.3M Biomass Power Plant in England March 2015 – >$220M Biomass Power
Slide 13: Industrial Environmental Overview
Industrial Environmental Overview 2015 Revenue by Segment • B&W acquired MEGTEC Holdings, Inc. on June 20, 2014 • 40+ year history with ~600 employees across 12 offices globally 64% • Asset-light flexible manufacturing platform U.S. Aftermarket • Significantly expanded B&W’s industrial environmental
Slide 14: Market Opportunity
Market Opportunity • Industrial environmental business provides engineered solutions to a wide range of problems and processes in diverse and naturally growing end markets 5% projected annual market growth • Broad customer base includes ~3,100 businesses stretching across six continents and over 60
Slide 15: Strategy to Perform Operationally and Grow via Acquisition
Strategy to Perform Operationally and Grow via Acquisition • MEGTEC acquisition is highly Key Acquisition Criteria complementary to B&W’s core • Alignment with core competencies competencies • Synergistic value • Long-term growth platform • History of acquisitions and • Diversification or internatio
Slide 16: Segment Profitability Characteristics
Segment Profitability Characteristics Segment Revenue $2,000 $184 • Flat revenue $105 Global • Mix impacts average $1,500 $781 $712 margin $603 $640 Services Millions $603 $472 $1,000 • Top priority is driving margin $500 $939 $1,005 $1,055 $909 $934 $822 $0 2010 2011 2012 2013 2014 2015 • Revenue g
Slide 17: Summary Historical Financial Information
Summary Historical Financial Information Fourth Fourth $ in millions, Quarter Quarter FY 2015 FY 2014 except per share amounts 2015 2014 Revenues $502.7 $444.6 $1,757.3 $1,486.0 GAAP Operating Income (10.0) (71.2) 21.9 (38.0) Adjusted Operating Income(1) 39.5 38.1 103.8 90.2 GAAP Earnings per Share,
Slide 18: FY 2016 Guidance Highlights
FY 2016 Guidance • Revenue is expected to increase to $1.8B based on mid-single digit growth in our Global Power and Industrial Environmental business units while Global Services is expected to remain flat • Full year adjusted EPS in a range of $1.25 to $1.45 Highlights • Adjusted tax rate for 2016
Slide 19: Investment Highlights
Investment Highlights Strong Foundation Significant Earnings Upside Great Brand Associated with Quality, Three-Pronged Growth Strategy Reliable Delivery and Innovation Aligned with Businesses Customer and Strategic Technology Leader in Partner Relationships Global Power Generation Established Platfo
Slide 20: Appendix
Appendix © Babcock & Wilcox Enterprises, Inc. All rights reserved. 20
Slide 21: Skilled Management Team
Skilled Management Team Chairman and Chief Executive Officer Investor Relations Finance Jim Ferland and Communications Jenny Apker Leslie Kass Senior Vice President Vice President & Chief Financial Officer Global Services Global Power Industrial Division Division Environmental Division Mark Low Paul
Slide 22: Experienced Board of Directors
Experienced Board of Directors Thomas A. Christopher Former Vice Chairman of AREVA, Mr. Christopher also served as its President and CEO from 2000 to 2009. Before that, he held a number of positions at Westinghouse, including Vice President and General Manager, Westinghouse Power Services. Cynthia S
Slide 23: Reconciliation of Adjusted, Non-GAAP Items
Reconciliation of Adjusted, Non-GAAP Items Note: Tables may not foot due to rounding. © Babcock & Wilcox Enterprises, Inc. All rights reserved. 23
Slide 24: Reconciliation of Adjusted, Non-GAAP Items
Reconciliation of Adjusted, Non-GAAP Items Note: Tables may not foot due to rounding. © Babcock & Wilcox Enterprises, Inc. All rights reserved. 24
Slide 25: © Babcock & Wilcox Enterprises, Inc. All rights reserved.
© Babcock & Wilcox Enterprises, Inc. All rights reserved. 25
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