Weatherford International Plc · NASDAQ:WFRD
Weatherford International — Q3 2018 Earnings Presentation
16 slides from Weatherford International's earnings presentation, Oct 29, 2018
Slide 1: Third Quarter 2018
THIRD QUARTER 2018 OCTOBER 29
Slide 2: Forward-looking statements and non-GAAP disclaimer
This presentation contains forward-looking statements concerning, among other things, Weatherford’s prospects for its operations and expectations regarding future financial results which are subject to certain risks, uncertainties and assumptions. These risks and uncertainties, which are more fully
Slide 3: Third quarter results summary
on a year-over year basis on modestly lower revenue sequentially while revenue was essentially flat $ in millions 3
Slide 4: Year-over-year and sequential results
Δ Year-over-Year sequentially $ in millions 4 * Excludes PPS purchased and held-for-sale
Slide 5: By Geography and By Global Business Unit
By Geography By Global Business Unit Well Production Construction 26% Eastern Western 28% Hemisphere Hemisphere 47% 53% Drilling and Completions Evaluation 21% 25% 5 $ in millions
Slide 6: Western Hemisphere and Eastern Hemisphere
Western Hemisphere Eastern Hemisphere Production Well Production Well 38% Construction 13% Construction 36% 20% Drilling and Completions Drilling and Completions Evaluation 22% Evaluation 21% 29% 21% $ in millions 6
Slide 7: Our Transformation
OUR TRANSFEé RMATION
Slide 8: Milestones on our path to profitability
MILESTONES ON OUR PATH TO PROFITABILITY ‒ $1B by YE2019 in Business Enhancements (Run Rate) and Profit Improvements ‒ Positive in 4Q 2018 and in 2019 ‒ Net Debt-to-EBITDA Ratio Cut Nearly in Half by YE2018 and by One-Third at YE2019 8
Slide 9: Expected EBITDA impact of $1B by YE2019
EXPECTED EBITDA IMPACT OF $1B BY YE2019 RECURRING IMPACT ▪ Improve sourcing ▪ Offshore back-office functions ▪ Reduce number of suppliers ▪ Enhance global asset optimization ▪ Crossdock and consolidate shipments $1B ▪ Align sales coverage to high-opportunity areas ▪ Prioritize account management ▪ C
Slide 10: Annualized results $1B
ANNUALIZED RESULTS Sales/Commercial 34% Procurement 8% Operational/Segment 65% Annualized Total and Product Lines G&A 25% Manufacturing 6% 30% $1B Logistics and Distribution 17% 10
Slide 11: Completed and announced transactions
U.S. Pressure Pumping and International Land Laboratory Pump-Down Perforation Assets Drilling Rigs Services COMPLETED TRANSACTION ANNOUNCED TRANSACTION ANNOUNCED ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ 11
Slide 12: Fourth quarter outlook: Eastern and Western Hemisphere
MID-SINGLE DIGIT GROWTH, SLIGHTLY HIGHER IN WESTERN HEMISPHERE MID-TEENS SEQUENTIAL GROWTH RATE CUMULATIVE RECURRING IMPACT APPROACHING 30% OF TARGET POSITIVE FOR THE QUARTER REACH AGREEMENT ON AT LEAST ONE FINALIZE EXTENSION OF 12
Slide 13: Fourth quarter outlook by business unit
FLAT SEQUENTIALLY, PRODUCT SALES OFFSET BY SEASONALITY DOWN MID-SINGLE DIGITS, SEQUENTIALLY CUMULATIVE RECURRING IMPACT APPROACHING 40% OF TARGET POSITIVE FOR THE QUARTER FROM ANNOUNCED DIVESTITURES 13
Slide 14: Appendix
Slide 15: Segment operating income and corporate expenses
Western Hemisphere $78 $50 $3 Eastern Hemisphere 38 19 (10) Corporate Expenses (31) (34) (28) Restructuring and Transformation Charges (27) (38) (34) Other Charges, Net (71) (70) (1) 15
Slide 16: For further company information we invite you to visit
FOR FURTHER COMPANY INFORMATION WE INVITE YOU TO VISIT Weatherford.com WeatherfordAnnualReport.com Linkedin.com/Company/Weatherford Facebook.com/Weatherford @WeatherfordCorp YouTube.com/Weatherford @WeatherfordCorp
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