Babcock & Wilcox Enterprises, Inc. · NYSE:BW
Babcock & Wilcox Enterprises — Investor Presentation (August 2021)
37 slides from Babcock & Wilcox Enterprises's investor presentation, Aug 12, 2021
Slide 1: Investor Presentation
Investor Presentation August 12, 2021 © 2021 Babcock & Wilcox Enterprises, Inc. All rights reserved. BABCOCK & WILCOX ENTERPRISES, INC. 1
Slide 2: Safe Harbor Statement
Safe Harbor Statement B&W Enterprises cautions that this presentation contains forward-looking statements, including, without limitation, statements relating to adjusted EBITDA and sales targets, expectations regarding future growth, expansion and profitability, as well as statements about B&W’s fut
Slide 3: Executive Summary
Executive Summary Strong Global Brand Babcock & Wilcox provides high-quality, innovative renewable, environmental and thermal technologies and has served critical power generation and industrial applications for more than 150 years. Executing a Transformation B&W is executing a robust growth strateg
Slide 4: Next Generation B&W
Next Generation B&W B&W FOUNDATION DRIVES GROWTH STRATEGY A Circular Economy For our economy and future generations, we continually develop Advanced Technologies ecologically sound ways of recycling resources, like biomass and waste, to create clean, renewable baseload power while reducing greenhous
Slide 5: What We Do
What We Do Technologies for Renewable Power & Resource Recovery Waste-to-energy and biomass-to-energy baseload power, chemical recovery boilers RENEWABLE for pulp & paper, multi-fuel technology, Dynagrate® and vibrating combustion grates Technologies for a Clean Environment Emissions controls, ash h
Slide 6: Installed & Proven Technologies
Installed & Proven Technologies More than 500 waste-to-energy and biomass-to-energy units at more than 300 facilities in more than 30 countries, serving a wide range of utility, waste management, municipality and investment firm customers Combined installed capacity of our WtE technology is more tha
Slide 7: Company Profile
Company Profile Babcock & Wilcox is a global leader in advanced environmental, renewable and thermal technologies and services for power and industrial applications. Corporate Snapshot Consolidated Headquarters: Akron OH, USA 18% Founded: 1867 Industrial Parts & Services Europe Asia & Other 35% 49%
Slide 8: 3-Year Pipeline
Global footprint and ongoing expansion positions Global Expansion B&W to leverage market trends around the world 2021-2023 Addressable Market Europe 2021-2023 More than $7B Addressable Market Asia-Pacific More than $8B 2021-2023 Addressable Market Manufacturing Middle East & Africa Service Facilitie
Slide 9: B&W's Waste-to-Energy Technology Reduces Methane Emissions
B&W’s Waste-to-Energy Technology Reduces Methane Emissions Methane has 84 times the Global Warming Potential (GWP) of CO2i B&W’s state-of-the-art technology has been Annual additions to landfills in the U.S.ii produce emissions installed in more than 500 units in more equivalent to 10 million
Slide 10: ClimateBright Decarbonization Technologies
B&W’s ClimateBrightTM Decarbonization Technologies are Ready ClimateBright DECARBONIZATION TECHNOLOGIES TM BrightLoop ™ OxyBright ™ SolveBright ™ BrightGen™ CHEMICAL LOOPING OXYGEN-FUEL COMBUSTION POST-COMBUSTION CARBON CAPTURE HYDROGEN COMBUSTION Pilot testing complete Jointly developed with Th
Slide 11: Financial Information
Financial Information © 2021 Babcock & Wilcox Enterprises, Inc. All rights reserved. BABCOCK & WILCOX ENTERPRISES, INC. 11
Slide 12: Consolidated Financial Summary
Consolidated Financial Summary Twelve Months Ended Twelve Months Ended Twelve Months Ended Twelve Months Ended ($ in Millions) June 30, 2021* March 31, 2021* December 31, 2020* December 31, 2019 Revenue $ 653.5 $ 586.0 $ 566.3 $ 859.1 Adjusted Gross Profit $ 188.3 $ 176.4 $ 173.6 $ 169.5 Adjusted Gr
Slide 13: Capital Structure
Capital Structure ($ in Millions) As of Jun 30, 2021 Capitalization: Total Debt $170.9 Cash, cash equivalents and restricted cash (1) 143.6 Net Debt $27.3 Adjusted EBITDA: LTM 6/30/2021 Adjusted EBITDA (2) 65.9 (3) 2021 Target Adjusted EBITDA Range 70.0 - 80.0 Total Debt Leverage: Net Leverage (4) 0
Slide 14: Executive Summary
Executive Summary Strong Global Brand Babcock & Wilcox provides high-quality, innovative renewable, environmental and thermal technologies and has served critical power generation and industrial applications for more than 150 years. Executing a Transformation B&W is executing a robust growth strateg
Slide 15: Appendix
Appendix © 2021 Babcock & Wilcox Enterprises, Inc. All rights reserved. BABCOCK & WILCOX ENTERPRISES, INC. 15
Slide 16: Leadership Team
Leadership Team Chairman & Chief Executive Officer Kenny Young Chief Financial Officer Chief Operating Officer General Counsel Lou Salamone Jimmy Morgan John Dziewisz Corporate Development Human Resources & Investor Relations Jacqueline Opal Megan Wilson © 2021 Babcock & Wilcox Enterprises, Inc. All
Slide 17: Key Market Drivers & Opportunities
Key Market Drivers & Opportunities Global drive toward renewable and reusable energy sources Increasing global regulatory restrictions on landfilling benefit waste-to-energy New EU regulations require higher emissions standards An aging utility boiler installed base drives stable aftermarket in the
Slide 18: Key Growth Strategies
Key Growth Strategies Grow by expanding sales, service and business development teams in key international regions to serve the broad renewable, environmental and thermal markets Meet the global need for carbon reduction with patented renewable waste-to-energy & biomass and carbon-capture solutions
Slide 19: Ongoing Transformation
Ongoing Transformation Key strategic actions have returned the company to positive performance Focus on Strengths and positioned it for growth ACTION ACHIEVED ONGOING Focus on core products and services for November 2018 New Senior Management Team led by Kenny Young environmental, renewable and
Slide 20: Financial Reporting Segments
Financial Reporting Segments Product and Key End Markets Service Overview Waste-to-Energy Waste-to-energy and biomass Biomass technologies, aftermarket equipment Pulp & Paper upgrades, parts and service Power Air emissions control and ash handling Oil and Gas systems, cooling and energy recovery, Pu
Slide 21: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation (1) Three months ended June 30, Six months ended June 30, $ in Millions 2021 2020 $ in Millions 2021 2020 1) Figures may not be clerically accurate Adjusted EBITDA (2) Adjusted EBITDA (2) due to rounding $ 15.1 $ 1.7 $ 23.5 $ 2.7 Restructuring activities 2) Adjusted EB
Slide 22: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation (1) Twelve months ended 1) Figures may not be clerically accurate due to $ in Millions Jun 30, 2021 Dec 31, 2020 Dec 31, 2019 rounding Adjusted EBITDA (2)(3) $ 65.9 $ 45.1 $ 45.0 2) During the year ended December 31, 2020, we Restructuring activities redefined our defi
Slide 23: Adjusted Gross Profit Reconciliation
Adjusted Gross Profit Reconciliation (3) Three months ended Six months ended $ in Millions June 30, $ in Millions June 30, 2021 2020 2021 2020 Adjusted gross profit (1)(2) Adjusted gross profit (1)(2) Operating income (loss) Operating income (loss) $ 2.8 $ (7.7) $ (3.7) $ (18.0) Selling, general and
Slide 24: Adjusted Gross Profit Reconciliation
Adjusted Gross Profit Reconciliation (4) Twelve months ended $ in Millions Jun 30, 2021 Dec 31, 2020 Dec 31, 2019 Adjusted gross profit (1) (2)(3) Operating income (loss) $ 12.6 $ (1.7) $ (29.4) Selling, general and administrative ("SG&A") expenses 143.0 141.4 150.6 Advisory fees and settlement cost
Slide 25: Key Technologies
Key Technologies © 2021 Babcock & Wilcox Enterprises, Inc. All rights reserved. BABCOCK & WILCOX ENTERPRISES, INC. 25
Slide 26: Products & Services Across Our Brands
Products & Services Across Our Brands Steam Generation Technologies Natural Gas-fired Package Boilers Boiler Auxiliaries New Build Combustion Grates Construction Emissions Control Solutions Cooling Systems Ash and Material Handling Operations & Maintenance Field Service Aftermarket Inspections Parts
Slide 27: Key Technologies: Steam Generation Technologies
Key Technologies: Steam Generation Technologies Utility Boilers Waste-to-Energy Boilers High pressure, high efficiency, high capacity, low emissions Reduces dependency on landfills and reduces methane gas emissions Fuel: Coal, oil, natural gas, multi-fuel Fuels: MSW, RDF Natural Gas-Fired and Other
Slide 28: Key Technologies: Renewable Combustion Grates
Key Technologies: Renewable Combustion Grates DynaGrate® Pivoting Combustion Grate 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 flexibility
Slide 29: Key Technologies: Emissions Controls
Key Technologies: Emissions Controls Emission Technology Solution Pulse Jet Fabric Filters (PJFF) / Baghouses Wet and Dry Electrostatic Precipitators (ESPs) Particulate Control Wet Particulate Scrubbers Multiclone® Dust Collectors Selective Catalytic and Non-catalytic Reduction (SCR/SNCR)
Slide 30: Key Technologies: Steam Generation & Environmental Solutions
Key Technologies: Steam Generation & Environmental Solutions Across a Utility Plant Particulate Control Steam Generator Technology Technologies Environmental Solutions Pulverizers Particulate control Furnace Dry Scrubbing Nitrogen oxides (NOx) removal Technologies Sulfur removal Burners
Slide 31: B&W's Comprehensive WtE Solutions
B&W’s Comprehensive WtE Solutions Cooling towers 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 ADIOX® including energy recovery DynaGrate® combus
Slide 32: Key Technologies: Submerged Grind Conveyor Ash Handling
Key Technologies: Submerged Grind Conveyor Ash Handling Designed to meet current and future U.S. regulatory requirements for ash handling with: Lower equipment cost Lower installation cost • Utilize existing hoppers and gate valves • No modification to hopper Short outage required Short lead
Slide 33: Key Technologies: Clean Coal Solutions Ready for Deployment
Key Technologies: Clean Coal Solutions Ready for Deployment OxyBright™ oxygen-fuel combustion SolveBright™ post-combustion carbon capture Oxy-coal combustion technology Post-combustion technology “Near-zero” emissions Patented amine-based solvent process 30 MW demonstration complete Pilo
Slide 34: Key Technologies: BrightLoop Chemical Looping Combustion Platform
Key Technologies: BrightLoop™ Chemical Looping Combustion Platform Technology Combustion: Process HEAT Coal (Petcoke) Steam Turbine Natural Gas REDUCER COMBUSTOR Gasification: Fuel Cell/Boiler POWER Biomass H2 Partial Oxidation: H2 Storage Biogas Syngas HYDROGEN BrightLoop™ Shift Reaction Chemical L
Slide 35: Key Technologies: Cooling Systems
Key Technologies: Cooling Systems Natural Draft/Hyperbolic Mechanical Draft Fanless design provides low power, noise Counterflow for cost-effective thermal and maintenance, as well as long operating performance; crossflow for low energy lifecycle consumption and operating costs WET MATERIAL OPTIONS:
Slide 36: Key Technologies: Global Parts & Service
Key Technologies: Global Parts & Service 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 pressure and no
Slide 37: Babcock & Wilcox Enterprises, Inc.
© 2021 Babcock & Wilcox Enterprises, Inc. All rights reserved. BABCOCK & WILCOX ENTERPRISES, INC. 37
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