The Babcock & Wilcox Company Company Overview Clean Energy Technologies and Services Mission Critical Defense Contractor

A Global Energy Business Established in 1867 Operates engineering design, service and manufacturing facilities in 32 countries Installed electricity generation capacity of more than 300,000 MW in more than 80 countries Provided more than 300 nuclear steam generators to customers worldwide Manufactured and supplied 12% of the 1.8 million MW of total coal-fired generating capacity worldwide* Headquarters: Charlotte, NC, USA CEO: James Ferland Employees ~22,000 (includes JVs) Ticker Symbol: NYSE:BWC 2012 Financials: $3.3B Sales, $5.7B Backlog Manufacturing Details: We currently operate 15 locations worldwide, primarily for B&W PGG and its subsidiaries, B&W NE and B&W NOG. Main products include nuclear components, boilers, scrubbers, burners, pulverizer components, pressure parts, boiler cleaning and material handling equipment and wear parts. Included is the Barberton, OH foundry – B&W is the only U.S.-based boilermaker operating a foundry as part of its total manufacturing capabilities. *includes B&W and its licensees

The Babcock & Wilcox Company Babcock & Wilcox Power Generation Group, Inc. Babcock & Wilcox Nuclear Energy, Inc. Babcock & Wilcox mPower, Inc. Babcock & Wilcox Nuclear Operations Group, Inc. Babcock & Wilcox Technical Services Group, Inc. Coal-fired power generation Environmental/ emissions control systems Renewable energy systems Service, operation and maintenance Construction services Nuclear component design, manufacturing and installation Diagnostics, maintenance and repair Field services Plant modifications Design, development and deployment of B&W mPowerTM small modular reactor Virginia-Class submarine program Ford-Class carrier program Refueling Fuel processing and fabrication HEU downblending Nuclear material handling, storage and security Environmental management Safeguards and security Nuclear laboratories Commercial Government 3

B&W Commerce in the Commonwealth of Virginia Employ 2,600 people in Virginia $180 million total annual payroll Purchase more than $70 million of goods and services in Virginia Pay over $16 million in Virginia corporate income, unemployment, use and property taxes annually

B&W Locations in Virginia B&W Technical Services Group Headquarters Lynchburg Technology Center B&W Nuclear Operations Group Headquarters Lynchburg Facility B&W mPower Reactor Engineering & Design Fuel Technology Center Newport News B&W mPower Integrated Systems Test (IST)Facility Lynchburg Forest B&W Power Generation Group Service Center B&W Nuclear Energy Nuclear Services

Worldwide Manufacturing Facilities Barberton, OH Esbjerg, Denmark Euclid, OH Lancaster, OH Dumbarton, Scotland Copley, OH Melville, SK (Canada) Straubing, Germany Cambridge, Ontario (Canada) Beijing, China Mt. Vernon, IN Hatfield, PA Hubei, China West Point, MS Newport News, VA Pune, India Folkston, GA Monterrey, Mexico Manufacturing Plant Square Ft. Main Products Beijing, China, JV 1,175,000 Boilers, scrubbers West Point, Mississippi 275,000 Boilers, burners, FMs Cambridge, Ontario 273,000 Boilers, nuclear, pulp & paper Barberton, OH (Foundry) 197,000 Boiler and pulverizer castings Pune, India (Under Construction) 699,000 Boilers Euclid, OH 325,000 Nuclear components Mt. Vernon, IN 580,000 Melville, Saskatchewan 56,000 Pressure parts Monterrey, Mexico 96,000 Manufacturing Details: We currently operate 18 locations worldwide, primarily for B&W PGG and its subsidiaries, B&W NE and B&W NOG. Main products include nuclear components, boilers, scrubbers, burners, pulverizer components, pressure parts, electrostatic precipitator components, emissions monitoring systems, boiler cleaning and material handling equipment and wear parts. Included is the Barberton, OH foundry – B&W is the only U.S.-based boilermaker operating a foundry as part of its total manufacturing capabilities. Manufacturing Plant Square Ft. Main Products Esbjerg, Denmark 134,000 CHP/WTE boilers DPII, Dumbarton, Scotland 102,000 Boiler cleaning equipment DPII, Hubei, China 249,000 DPII, Lancaster, OH 453,000 Loibl A-S-H, Straubing, Germany 37,700 Material handling equipment Copley, OH (Service Center) 130,000 Wear parts, pulverizer rebuilds KVB-Enertec, Hatfield, PA 3,000 Emissions monitoring Folkston, GA 110,000 Precipitator components, mechanical Newport News, VA 5,000 Precipitator components, electrical

A Leader in Energy Technology Today – a leader in clean energy technologies for fossil, renewable and nuclear fuels First installed electric power utility boiler in 1881 Manufactured and supplied 12% of the 1.8 million MW of total coal-fired generating capacity worldwide The only North American company to continuously manufacture nuclear steam generators for the industry since the 1950s More than 80 years of experience with waste-to-energy systems Selected to be the first to develop and deploy nuclear small modular reactor technology

Ultra-Supercritical Boilers Heat Recovery Steam Generators Steam Generation Highly Efficient Ultra-Supercritical Boilers Heat Recovery Steam Generators Use less fuel and produce lower emission Worldwide, 10 new B&W and JV ultra-supercritical boilers scheduled for startups 2012-2013 Providing cleaner, more efficient power to Louisiana and Texas through new 600MW B&W boiler Generate high pressure, high temperature steam from waste heat recovered from gas turbine exhaust gas Combined cycle power or cogeneration Operate turbines at optimal capacity © 2007 The Babcock & Wilcox Company. All rights reserved.

Renewable Energy Waste to energy Biomass combustion and gasification Concentrating solar power Information shown as of August 31, 2012. Updated September 18, 2012– T. Harris B&W is the supplier of technologies and O&M services for Florida’s Palm Beach County Renewable Energy Park, one of the largest WTE facilities in the world. © 2007 The Babcock & Wilcox Company. All rights reserved.

A Complete Portfolio of Environmental Systems Technologies to control sulfur oxides, nitrogen oxides, particulate matter, mercury and other hazardous air pollutants Carbon capture research and demonstration Emissions monitoring and reporting systems Wastewater and ash management Upgrades, services and construction © 2007 The Babcock & Wilcox Company. All rights reserved.

B&W’s History in Nuclear Energy Components for Manhattan Project c. 1953 - present Components for Nuclear Navy c. 1960s - present Components for commercial nuclear power c. 2009 – present Developing and deploying small modular reactor Decades of Proven Nuclear Capabilities and Knowledge

Nuclear Equipment Design and Manufacture Supplied the nuclear industry with more than 1,300 large, heavy components Provided more than 300 new and replacement steam generators to customers worldwide Own and operate North America’s largest nuclear assembly clean room ASME N-Stamp certification Reactor vessel closure head PWR Once-Through-Steam-Generator Spent fuel storage container Heat exchanger tube bundle North America’s largest nuclear clean room

Nuclear Steam Generator Services Inspection, repair and maintenance services of existing commercial nuclear fleet Services enable life extension of Steam Generators and improve efficiency Utilizing advanced tooling, robotics and processes to reduce worker dose and overall project schedule State-of-the art training facilities using realistic mockups and scenarios to enhance safety and spatial awareness Expertise: Tube sludge lancing, tube inspection and plugging, visual inspection, in-situ pressure testing and pressure boundary modifications

What is a Small Modular Reactor (SMR)? B&W mPower™ Integral Reactor Less than 300 MWe Integral nuclear system module Simplified design Factory built Installed underground From This To This Small modular reactors are viewed as a group of nuclear steam supply system designs that have a net electricity output equivalence of less than 300 MWe. The nuclear steam supply system is integrated into a single module – which heretofore has consisted of a series of large vessels interconnected with piping – requiring a significant amount of fitting and welding at the construction site. The SMR module is sized such that it can be built repetitively in a factory setting, which helps to improve learning and to realize cost reduction just as Newport News Shipbuilding and Electric Boat have done with Aircraft Carriers and Submarines. The module is also sized to be rail-shipped to site for final fit-up and assembly. Traditional 2 Loop Pressurized Water Reactor Great potential to support wider deployment of nuclear energy, create jobs and provide energy security

Benefits of Developing SMR Technology in the U.S. Largest operating nuclear fleet provides skilled workforce R&D community fostered through numerous universities and national laboratories U.S. government support for research and licensing of new technologies Small-sized utilities drives national need for smaller reactors Strong regulator with active new plant licensing program B&W and others in the nuclear industry have been developing SMR designs for nearly 5 years. During that time the momentum of support for this type of clean energy has continued to grow – on both sides of the political isle in the U.S., and with utility executives in the U.S. and abroad. It has especially seen support from utilities in the U.S. that until now could never afford the investment of a large nuclear plant. If the SMRs can deliver on the promise of shorter construction times and nearly complete modularization in order to contain capital costs, the SMR future seems bright.

The Babcock & Wilcox Company Global company with more than a century of operating experience and state-of-the-art technology Long history of creating jobs and new technologies in the Commonwealth of Virginia Committed to our Nation’s defense as a long-standing supplier to the U.S. Government Focused on delivering a portfolio of Clean Energy solutions, including the development of SMRs, carbon capture, clean coal and other 21st century energy technologies