Npk International Inc. · NYSE:NPKI
Npk International — Newpark Resources — Oppenheimer Oil Services & Equipment Conference (August 2007)
28 slides from Npk International's conference presentation, Aug 9, 2007
Slide 1: New Leadership, New Focus, New Strategy
New Leadership New Focus New Strategy Newpark August 9, 2007 Newpark Resources, Inc. Paul L. Howes, President and CEO James E. Braun, Vice President and CFO
Slide 2: Company Profile
2 Company Profile Specialized provider of: Fluids Systems and Engineering Mat and Integrated Services Environmental Services* Customers: Oil and Gas Industry Key markets: North America North Africa Recent entry into South America * Environmental Services to be divested
Slide 3: Mission & Vision
3 Mission & Vision New leadership, new focus, new strategy Achieve best-in-class competitive positioning and performance in each business line Position for long-term growth through more disciplined approach to strategic investments Build a strong reputation with investors by delivering consistent pe
Slide 4: New Leadership
4 New Leadership Paul Howes, President & CEO Jim Braun, VP & CFO Mark Airola, GC & Admin Officer Bruce Smith, President Fluids Systems and Engineering Tom Eisenman, President Excalibar Minerals LLC Sean Mikaelian, President Mat & Integrated Services Sammy Cooper, President Environmental Services
Slide 5: New Focus
5 New Focus New leadership brought in with industry experience Spent majority of 2006 cleaning house Exited poor return businesses Worked with Board to develop strategic growth plan New strategy rolled out in March 2007 based on the principles of: Growth Focus Discipline Discipline Discipline Discip
Slide 6: New Strategy
6 New Strategy Grow Fluids Systems and Engineering Organically / Acquisitions / Domestically / Internationally Expand scope and geographic position in Mat and Integrated Services Reorganized from 5 units to 1 unit; 15% headcount reduction Leverage relationships with existing customers Divest non-cor
Slide 7: New Strategy Rationale - Fluids
7 New Strategy Rationale - Fluids Core business line - 80% of revenues Technologically advanced & unique fluid systems DeepDrill, FlexDrill, DeepDrill II and family of specialized water-based products, has performance applications for off-shore deepwater and shelf, as well as land based drilling Opp
Slide 8: New Strategy Rationale - Fluids: Strong Revenue Growth
8 New Strategy Rationale - Fluids Strong Revenue Growth 31% CAGR
Slide 9: New Strategy Rationale - Fluids: Strong Margin Growth
9 New Strategy Rationale - Fluids Strong Margin Growth
Slide 10: New Strategy Rationale - Fluids: Revenue and Margin Growth
10 New Strategy Rationale - Fluids 1st Half 2006 1st Half 2007 227.2 256.5 1st Half 2006 1st Half 2007 0.11 0.128 Revenue Growth Operating Margin Growth * 2006 margins excludes hurricane damage-related business insurance proceeds
Slide 11: Scope of Operations - North America Stronghold
11 Serves major North America basins Approximately 16% share of markets serviced in North America1 Substantial service facilities network Growing share vis-a-vis other players Well-positioned to expand into new customers and basins Scope of Operations North America Stronghold Offices Barite Mills Of
Slide 12: Scope of Operations - Expanding Internationally
12 Initial international market entry through acquisition of Ava, S.p.A. (Italy) Current key markets Mediterranean North Africa Eastern Europe Plans for market expansion Brazil Scope of Operations Expanding Internationally
Slide 13: Scope of Operations - Excalibar Minerals LLC
13 Quality processor and supplier of industrial minerals Barite, Barytes Calcium Carbonate Alumina Trihydrate (ATH) Applications Oilfield Industrial Integral to Fluids Systems and Engineering Scope of Operations Excalibar Minerals LLC
Slide 14: New Strategy Rationale - Mats
14 New Strategy Rationale - Mats Leverage relationship with existing customers Advantage of often being first service provider "on site" Expand product and service offerings in the well site preparation market Expansion and diversification Growth opportunities beyond current Gulf Coast region Maximi
Slide 15: New Strategy Rationale - Mats: 12% CAGR
15 New Strategy Rationale - Mats 12% CAGR
Slide 16: New Strategy Rationale - Mats: Aiming to Expand Margins
16 New Strategy Rationale - Mats Aiming to Expand Margins
Slide 17: New Strategy Rationale - Mats: Higher Margin Business & Customer Mix
17 New Strategy Rationale - Mats 1st Half 2006 1st Half 2007 60.4 42.8 1st Half 2006 1st Half 2007 0.142 0.161 Revenue Operating Margin Focusing on Higher Margin Business & Customer Mix 1st Half 2006 $17mm in mats sales in Canada
Slide 18: Exit Strategy Rationale - Environmental
18 Exit Strategy Rationale - Environmental Seek greater strategic focus Rationalize business mix that offers greatest long term growth Deploy capital with greater returns
Slide 19: Improvements in Balance Sheet-Debt
19 Improvements in Balance Sheet-Debt
Slide 20: Investment Considerations
20 Investment Considerations New Leadership New management team with industry experience in place New Focus Greater discipline Focusing on improving profitability, returns and free cash flow New Strategy Growing Fluids organically and through acquisitions Growing Mats through additional products, se
Slide 21: Thank you for your interest!
New Leadership New Focus New Strategy Newpark Thank you for your interest!
Slide 22: Consolidated Statements of Operations
eS.0 Financials Newpark Resources, Ine Consolidated Statements of Operations (Unsadited) ‘Three Months Ended June, Six Monthe Ended June30, (Gin theusands, except pevshane data) ‘007 2006 ‘2007 2006 Revemes $1600 «$$ S$ RMB Cost of sevemes 145,580 11915 288.327 273,859 21,465 19,708 45924 Ey General
Slide 23: Segment Comparison
ark Resources Financials Newpark Resources, Inc. Segment Comparison, Unaudited) Quarter Ended athousands) Tune 30, 2007 ‘March 31, 2007 Tune 30, 2006 Segment revenues Fluids systems and engineering $ 131,168 § 125,298 111,368, Mat endlintegreted services 18,819 23,966 31,133 Environmental services 1
Slide 24: Consolidated Balance Sheets
ark Resources ees..0 Financials ‘Newpark asurees (Cenedidatel Bac Sheds Fine 2007 Decaier 206 (Cratd) ASSES ‘Smt wt Cahndcadequinias 8 aes 8 ner decom cern 1sée81 iss Inwatares wget xe.n9 Detaredt ast 26052 Zon rgall apancesindoter carats ego ars Aves deonttusdopentine one 0 Tealemaaases 0p Bas Prpe
Slide 25: Restated Segment Results
S.0 Financials NewparkResources, Inc. Restated Segment Resulis (Unausite Quarier Ended March 31, Ture 30, Sepiember30, December31, March 31, Ture 30, (mn thousands, except per share dats 2006 2006 2006 2006 2007 2007 Segment revenues Fluids syotems and engineering $ 115289 $ 188 $151] FOL} 15. F 131
Slide 26: Management Biographies: Paul Howes and James Braun
27 Paul L. Howes, President & CEO: Paul joined Newpark's Board of Directors and was appointed its Chief Executive Officer in March 2006. In June 2006, Mr. Howes also was appointed as Newpark's President. Mr. Howes' career has included experience in the defense industry, chemicals and plastics manufa
Slide 27: Management Biographies: Bruce Smith and Sean Mikaelian
28 Bruce C. Smith, President Fluids Systems and Engineering: Bruce joined Newpark in April 1998 as Vice President, International. Since October 2000, he has served as President of its subsidiary Newpark Drilling Fluids, L.P. Prior to joining Newpark, Mr. Smith was the Managing Director of the U.K. o
Slide 28: Forward-Looking Statements
29 Forward-Looking Statements This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act that are based on management's current expectations, estimates and projections. All statements that address expectations or projections about the fut
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