Babcock & Wilcox Enterprises : Company Overview (16 MB)

COMPANY OVERVIEW

M A Y 9 , 2 0 2 4

© 2024 Babcock & Wilcox Enterprises, Inc. All rights reserved.

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, including, without limitation, statements relating to the company's business outlook and expected financial performance, including adjusted EBITDA and sales targets, expectations regarding future growth, expansion and profitability, outlook and expectations regarding B&W's BrightLoop™ technologies, as well as statements about B&W's future pipeline of new projects and business within its Renewable, Environmental and Thermal operating segments and their impact on future shareholder value. These forward-looking statements are based on management's current expectations and involve a number of risks and uncertainties, including, among other things: our financial condition and ability to continue as a going concern; risks associated with contractual pricing in our industry; our relationships with customers, subcontractors and other third parties; our ability to comply with our contractual obligations; disruptions at our or manufacturing facilities or a third-party manufacturing facility that we have engaged; the actions or failures of our co-venturers; our ability to implement our growth strategy, including through strategic acquisitions, which we may not successfully consummate or integrate; our evaluation of strategic alternatives for certain businesses and non-core assets may not result in a successful transaction; the risks of unexpected adjustments and cancellations in our backlog; professional liability, product liability, warranty and other claims; our ability to compete successfully against current and future competitors; our ability to develop and successfully market new products; the impacts of industry conditions and public health crises; the cyclical nature of the industries in which we operate; changes in the legislative and regulatory environment in which we operate; supply chain issues, including shortages of adequate components; failure to properly estimate customer demand; our ability to comply with the covenants in our debt agreements; our ability to refinance our 8.125% Notes due 2026 and 6.50% Notes due 2026 prior to their maturity; our ability to maintain adequate bonding and letter of credit capacity; impairment of goodwill or other indefinite-lived intangible assets; credit risk; disruptions in, or failures of, our information systems; our ability to comply with privacy and information security laws; our ability to protect our intellectual property and use the intellectual property that we license from third parties; risks related to our international operations, including fluctuations in the value of foreign currencies, global tariffs, sanctions and export controls; could harm our profitability; volatility in the price of our common stock; B. Riley's significant influence over us; changes in tax rates or tax law; our ability to use net operating loss and certain tax credits; our ability to maintain effective internal control over financial reporting; our ability to attract and retain skilled personnel and senior management; labor problems, including negotiations with labor unions and possible work stoppages; risks associated with our retirement benefit plans; natural disasters or other events beyond our control, such as war, armed conflicts or terrorist attacks and the other factors specified and set forth under "Risk Factors" in our periodic reports filed with the Securities and Exchange Commission, including, without limitation, the risks described in the Company's Annual Report on Form 10-K for the year ended December 31, 2023 under the caption "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" (as applicable). These factors should be considered carefully, and B&W Enterprises cautions you not to place undue reliance on these forward-looking statements, which speak only as of the date of this presentation, and undertakes no obligation to update or revise any forward-looking statement, except to the extent required by applicable law.

Non-GAAP Financial Measures

Adjusted EBITDA on a consolidated basis is a non-GAAP metric defined as the sum of the adjusted EBITDA for each of the segments, further adjusted for corporate allocations and research and development costs. At a segment level, adjusted EBITDA presented is consistent with the way our chief operating decision maker reviews the results of operations and makes strategic decisions about the business and is calculated as earnings before interest expense, tax, depreciation and amortization adjusted for items such as gains or losses arising from the sale of non-income producing assets, net pension benefits, restructuring costs, impairments, gains and losses on debt extinguishment, costs related to financial consulting, research and development costs and other costs that may not be directly controllable by segment management and are not allocated to the segment. We present consolidated Adjusted EBITDA because we believe it is useful to investors to help facilitate comparisons of our ongoing, operating performance before corporate overhead and other expenses not attributable to the operating performance of our revenue generating segments. In this presentation, we also present certain targets for our adjusted EBITDA in the future; these targets are not intended as guidance regarding how we believe the business will perform. We are unable to reconcile these targets to their GAAP counterparts without unreasonable effort and expense due to the aspirational nature of these targets.

© 2024 Babcock & Wilcox Enterprises, Inc. All rights reserved.

B A B C O C K & W I L C O X E N T E R P R I S E S , I N C .

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W E ' R E A G LO B A L E N E R G Y L E A D E R 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 recognized technology leader and innovator at the forefront of the energy transition

Ensuring energy security for customers and the world

• Helping utility and industrial customers with the technical challenges of moving from current to future energy sources
• Delivering systems, parts and field services to help utility and industrial plants operate more effectively and efficiently

Making net zero ambitions a reality today

• Our hydrogen production, carbon capture, waste- and biomass-to-energy, and environmental technologies support the reduction of greenhouse gases, including CO2 and methane, in an environmentally friendly way

WE PROVIDE

PROVEN, BEST-IN-

CLASS POWER

PRODUCTION

TECHNOLOGIES AND

ARE LEADING THE

WAY TO A

NET-ZEROFUTURE.

© 2024 Babcock & Wilcox Enterprises, Inc. All rights reserved.

B A B C O C K & W I L C O X E N T E R P R I S E S , I N C .

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W E ' R E H E L P I N G C U S TO M E R S C R E AT E C L E A N A N D R E L I A B L E E N E R G Y

SUPPORTING A CIRCULAR ECONOMY

ENERGY SOLUTIONS	Ecologically sound ways of using and recycling resources like biomass and
municipal waste to create clean, renewable baseload power while reducing
greenhouse gas emissions.
REDUCING THE IMPACT OF GREENHOUSE GAS EMISSIONS
CLEAN
Hydrogen production, carbon capture, ash handling, cooling systems, energy
recovery and storage, and advanced emissions control solutions to help
	preserve the world's natural resources.
TRADITIONAL	CREATING RELIABLE AND EFFICIENT STEAM GENERATION
Providing boilers and related equipment, aftermarket parts, service and

upgrades to help utilities and industries generate reliable thermal energy from a wide range of fuels and bridge the gap during the global transition to new energy sources.

DELIVERING VALUE

THROUGH

TECHNOLOGY-DRIVEN

PRODUCTS AND

SERVICES,

WITH CONTINUAL

PRODUCT

IMPROVEMENT AND ROBUST R&D EFFORTS TO SUPPORT CURRENT AND FUTURE ENERGY NEEDS

© 2024 Babcock & Wilcox Enterprises, Inc. All rights reserved.

B A B C O C K & W I L C O X E N T E R P R I S E S , I N C .

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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, ethically and as promised.

Our Core Values:

Safety • Integrity • Quality • Respect • Agility

© 2024 Babcock & Wilcox Enterprises, Inc. All rights reserved.

B A B C O C K & W I L C O X E N T E R P R I S E S , I N C .

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W E ' R E ST R E N GT H E N I N G O U R B U S I N ES S TO AC H I E V E P RO F I TA B L E G ROW T H A S W E C O N T I N U E TO P ROV I D E P ROV E N C L EA N E N E RGY T EC H N O LO G IES

• Continue to expand geographical presence in Thermal and Renewable aftermarket parts and services
• Leverage our advanced thermal technologies to support fuel switching projects
• Increase focus on higher-margin aftermarket parts and services across all three business segments
• Implementing up to $30 million in cost reductions associated with strategic realignment
• Entered into new $150 million senior secured credit facility to reduce interest expense associated with letters of credit and revolving lines of debt
• Strengthen balance sheet and evaluate strategic alternatives for non-strategic assets
• Utilize state and federal project-level financing to accelerate deployment of BrightLoop™
• Utilize FEED studies to drive ClimateBright™ technology bookings
• Target full-year 2024 adjusted EBITDA of $105M to $115M, excluding BrightLoop and ClimateBright expenses1

1) We are unable to reconcile this target to its GAAP counterpart without unreasonable effort and expense due to the aspirational nature of this target

© 2024 Babcock & Wilcox Enterprises, Inc. All rights reserved.

B A B C O C K & W I L C O X E N T E R P R I S E S , I N C .

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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 B A S E A N D P R O V E N T E C H N O LO G I E S

• 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, municipality and investment firm customers
• Large worldwide installed base of wet and dry scrubbers for SOX reduction, particulate control equipment, NOX reduction technologies, and mercury control systems to meet environmental regulations
• Flue gas pre-treatment technologies for use with CO2 capture
• Nearly 2,000 wet, dry and hybrid cooling system units (10,000+ cells) installed globally
• More than 300 operating utility and industrial boiler units in the U.S. and nearly 200 operating utility and industrial boiler units across 40 countries around the world
• More than 5,000 industrial water-tube package boilers and other waste heat recovery products installed in a variety of facilities
• Average approximately 500,000 Boilermakers' construction manhours per year over last five years

A VAST GLOBAL INSTALLATION OF B&W'S CORE TECHNOLOGIES AT UTILITY AND INDUSTRIAL PLANTS CREATE LARGE GROWTH OPPORTUNITIES FOR PARTS, SERVICES AND RETROFITS

© 2024 Babcock & Wilcox Enterprises, Inc. All rights reserved.

B A B C O C K & W I L C O X E N T E R P R I S E S , I N C .

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B A B C O C K & W I L C OX P R O F I L E

CORPORATE SNAPSHOT		CONSOLIDATED

Headquarters:

Akron OH, USA

LTM Revenue

Founded:

1867

Europe

Asia & Other

Industrial

Parts & Services

Ownership:

Public (NYSE:BW)

28%

16%

34%

46%

22%

51%

Employees:

~2,200

Power

Aftermarket

North

27%

LTM Revenue March 2024:

~$965.7M

Generation

& Upgrades

America

66%

33%

56%

2024 EBITDA Target:

$105M to $115M2

New Build

21%

B&W Renewable

B&W THERMAL

B&W RENEWABLE

B&W ENVIRONMENTAL

Industrial

Parts & Services

Asia & Other

Industrial

Parts & Services

Asia & Other

Industrial

Parts &

32%

69%

Europe

10%

36%

28%

37%

35%

Services

73%

42%

Power

Aftermarket

North

Power

Aftermarket

North

Power

Generation

& Upgrades

America

Generation

& Upgrades

America

Generation

68%

10%

17%

64%

30%

33%

65%

New Build

New Build

Europe

31%

21%

42%

Notes: All charts based on LTM March 31, 2024 revenues, unless otherwise noted.

1. Backlog does not include shorter lead-time parts and services.
2. The most comparable GAAP target is not available without unreasonable effort. Target is based on continuing operations excluding BrightLoop™ and ClimateBright™ expenses.

Disclaimer: B&W Enterprises cautions not to place undue reliance on any forward-looking statements, which speak only as of the date of this presentation and may be impacted by the risks described in our SEC reports. We undertake no obligation to update or revise any forward-looking statement, except to the extent required by applicable law.

Backlog1 as of

March 31, 2024

31%

39%

30%

B&W Environmental

B&W Thermal

New Build	Europe	Asia & Other
12%	11%
2%
Aftermarket		North
& Upgrades		America
46%		87%

© 2024 Babcock & Wilcox Enterprises, Inc. All rights reserved.

B A B C O C K & W I L C O X E N T E R P R I S E S , I N C .

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A S O L I D P I P E L I N E O F G LO B A L O P P O R T U N I T I E S

2024-2026
Addressable Market
Europe	2024-2026
More than $8.5B
	Addressable Market
	Asia-Pacific
	More than $9B

PIPELINE REVENUE SPLIT 2024-2026

2024-2026

Addressable Market Middle East & Africa More than $4B

2024-2026

Addressable Market

Americas

Other: More than $10B

Manufacturing

Service Facilities

Future Service Facilities

Construction

Sales/Support

Sales Reps

B&W RENEWABLE

B&W ENVIRONMENTAL

B&W THERMAL

3-YEARPIPELINE

$2,374

Total

$797

$897

Total

$1,084

Total

$ MILLIONS

$5.9B

$2.0B

$ MILLIONS

$1.5B

$1,182

$1,543

$788

$ MILLIONS

$170

$157

$195

$157

$27

Americas

APAC

Europe

ME/A

Americas

APAC

Europe

ME/A

Americas

APAC

Europe

ME/A

15-20%

20-25%

60-65%

Total pipeline more than $9 billion

over the next three years including over $1.5 billion in BrightLoop and ClimateBright opportunities

A WIDE FOOTPRINT AND ONGOING EXPANSION POSITIONS B&W TO LEVERAGE MARKET TRENDS AROUND THE WORLD

Disclaimer: B&W Enterprises cautions not to place undue reliance on any forward-looking statements, which speak only as of the date of this presentation and may be impacted by the risks described in our SEC reports. We undertake no obligation to update or revise any forward-looking statement, except to the extent required by applicable law.

© 2024 Babcock & Wilcox Enterprises, Inc. All rights reserved.

B A B C O C K & W I L C O X E N T E R P R I S E S , I N C .

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G LO B A L A N N UA L C A P I TA L I N V E S T M E N T I N

C A R B O N C A P T U R E A N D H Y D R O G E N I S G R O W I N G

Trillions USD (2019)

5

4

3

2

1

0

By technology area

$224B

$158B

$240B

$150B	$390B
	$428B

2016-20

2030

2040

2050

ANNUAL AVERAGE CAPITAL INVESTMENT IN THE NET-ZERO EMISSIONS (NZE) SCENARIO

Source: IEA

Technology area

Other

Fossil fuels

CCUS

Hydrogen

Electricity system Electrification

Efficiency Other renewables

Bioenergy

© 2024 Babcock & Wilcox Enterprises, Inc. All rights reserved.

B A B C O C K & W I L C O X E N T E R P R I S E S , I N C .

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