Npk International Inc. · NYSE:NPKI
Npk International — Newpark Resources — Investor Presentation (February 2024)
34 slides from Npk International's investor presentation, Feb 22, 2024
Slide 1: February 2024 Investor Presentation: Positioned for Sustainable Growth
February 2024 Investor Presentation Positioned for Sustainable Growth
Slide 2: Notice to Investors: Forward Looking Statements
Notice to Investors Forward Looking Statements This presentation contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. All statements other than statements of historical facts are forward-looking statements. Words such as “will,
Slide 3: Agenda
Agenda Introduction End-Market Overview Summary of Key Financial Data 3
Slide 4: Introduction
4 Introduction
Slide 5: Transformation Strategy: Aligning Portfolio to Maximize Value Creation
Transformation Strategy Aligning Portfolio to Maximize Value Creation Through Accelerated Growth in Power & Infrastructure Markets Disciplined Strategy Aligned with Long-Term Global Megatrends
Slide 6: Company Overview
O&G Exploration & ProductionMidstream Company Overview Newpark Resources, Inc. headquartered in The Woodlands, TX, is a global company operating two independent business units, Industrial Solutions and Fluids Systems, supporting energy and infrastructure markets. We built a reputation for innovating
Slide 7: Leader in Power and Energy Infrastructure Solutions
Leader in Power and Energy Infrastructure Solutions INDUSTRIAL SOLUTIONS Power Infrastructure, O&G, Construction and Renewables Leading provider of specialty rental and services, redefining safety & efficiency standards Unique business model includes integrated manufacturing of 100% recyclable DURA-
Slide 8: Projected Invest & Grow Segment Approach Supports Growth & Shareholder Return
Projected Invest & Grow Segment Approach Supports Growth & Shareholder Return 8 ApproachTTM ADJ EBITDA**Net Assets* Fl ui ds S ys te m s $74M $32M * Net Assets represents segment net assets, excluding cash and debt, as of December 31, 2023. ** Adjusted EBITDA is a non-GAAP financial measure. See ear
Slide 9: Key Operational Highlights Aligned with Strategy
29% YoY reduction in Fluids Systems net working capital Fluid Systems Net Working Capital 13% YoY growth in Industrial Solutions EBITDA (TTM) Industrial Solutions EBITDA* (TTM) 12% YoY growth from Industrial Solutions Rental and Services revenues (TTM) Key Opera onal Highlights Aligned with Strategy
Slide 10: Well Positioned in Substantial Energy Megatrends
Well Positioned in Substantial Energy Megatrends 10 Multi-Trillion Dollar Markets Provide Long-Term Opportunities $14T+ Electrification $1T+ Renewables $12T+ Global Oil & Gas Investment in global electrical grid to enable “electrification of everything” Renewable Generation tie- ins and grid hardeni
Slide 11: Differentiated Model Exploiting Competitive Advantages
Differentiated Model Exploiting Competitive Advantages • Self-funding organic expansion in high-growth, high-returning infrastructure markets • Focused capital light Fluid Systems positioned to generate cash through cycles • Technology, scale, and service drive customer loyalty and productivity • Gl
Slide 12: Repositioning the Company: 2023 vs 2019 Change
Change20232019 -2%$80M Adjusted EBITDA* $82M Adjusted EBITDA* Maintaining Adjusted EBITDA as we reposition the Company +15%70% % of Segment Adj. EBITDA* generated from Industrial Solutions 61% % of Segment Adj. EBITDA* generated from Industrial Solutions Increasing Adjusted EBITDA generation from mo
Slide 13: End-Market Overview
13 End-Market Overview
Slide 14: Utilities Infrastructure Megatrend Powering Growth
Utilities Infrastructure Megatrend Powering Growth The $1.2 trillion Infrastructure Investment and Jobs Act (IIJA) is investing significantly over next decade, including ~ $70B for electric grid and hardened energy infrastructure $300B federal clean energy tax package over next 10 years from Inflati
Slide 15: Positioned for Growth in Multi-Billion Dollar Temporary Access Market
Positioned for Growth in Multi-Billion Dollar Temporary Access Market Specialty Rental and Services Supporting Infrastructure Megatrends Utilities O&G PipelineConstruction Rail & Other Our Footprint What We Do Leading manufacturer and rental provider of composite temporary worksite access solutions
Slide 16: Industrial Solutions End-to-End Operating Model
Industrial Solutions End-to-End Operating Model 16 Differentiated by Optimizing Across the Value Chain Providing Strong Results Product Engineering & Design Materials Sourcing & Procurement Precision Manufacturing Product Direct Sales Mat Fleet Rental & Services Belief in Innovation • High performan
Slide 17: Industrial Solutions: Strategic Progress Supported by Strong Infrastructure Trends
Utilities O&G General Construction Pipeline Rail Other 2023 REVENUE BY INDUSTRY $50 $60 $70 $80 2021 2022 2023 M IL LI O N S Industrial Solutions • Strategic investments in technology, scale, and service to drive specialty rental differentiation • Expansion of specialty rental fleet to meet long-ter
Slide 18: Global Demand for Oil and Gas Remains Resilient
Global Demand for Oil and Gas Remains Resilient $12T+ Investment in Oil & Gas projected to meet global demand in Sustainable Development Scenario over next 30 years Access to affordable and reliable energy critical for developing economies Geopolitical instability heightens global focus on energy se
Slide 19: Fluids Systems: Agile, Capital-Light Technology & Services
Int'l U.S. Canada • Recent divestitures driving shift to international markets; 60% of 2023 revenues generated outside of U.S. • Global footprint aligned to long-term, strategic markets • Reshaping balance sheet to drive “Capital-Light” model, and reduce return cyclicality • FCF generation to suppor
Slide 20: Long-Term Capital Allocation Strategy
Long-Term Capital Allocation Strategy 20 Disciplined Approach Balances Growth Investments with Return of Capital Maintain Target Leverage Invest in Growth Return Excess Cash to Investors Organic M&A• Target net leverage range of 0.5x–1.5x • Net leverage*: 0.5x • Total liquidity**: $99M • Maintaining
Slide 21: Sustainability Embedded in Our DNA
0.0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 2019 2020 2021 2022 2023 Total Company TRIR Sustainability Embedded in Our DNA Environmental Social Governance 21 2022 Sustainability Report Including SASB & TCFD Disclosures Available on Website Shareholder Approval Rate of Executive Compensation * Reflects internal
Slide 22: Why Invest in Newpark Resources?
Why Invest in Newpark Resources? Meaningful growth opportunity tied to the energy transition and critical infrastructure Global presence in large-scale energy markets Proven technologies with economic and ESG benefits Demonstrated ability to adapt and grow Balancing investment in growth with return
Slide 23: Summary of Key Financial Data
23 Summary of Key Financial Data
Slide 24: Business Segment Overview
Business Segment Overview Industrial Solutions Fluids Systems 24 $40 $60 $80 $100 $100 $120 $140 $160 $180 $200 $220 $240 2021 2022 2023 AD JU ST ED E BI TD A (M IL LI O N S) RE VE N U E (M IL LI O N S) Revenues Adjusted EBITDA* $0 $20 $40 $60 $300 $375 $450 $525 $600 $675 $750 2021** 2022** 2023 AD
Slide 25: Consolidated Statements of Operations (unaudited)
Consolidated Statements of Operations (unaudited) 25
Slide 26: Operating Segment Results (unaudited)
Operating Segment Results (unaudited) 26
Slide 27: Impact of 2022 Divestitures (unaudited)
Impact of 2022 Divestitures (unaudited) 27
Slide 28: Consolidated Balance Sheets (unaudited)
Consolidated Balance Sheets (unaudited) 28
Slide 29: Consolidated Statements of Cash Flows (unaudited)
Consolidated Statements of Cash Flows (unaudited) 29
Slide 30: Non-GAAP Financial Measures (unaudited)
Non-GAAP Financial Measures (unaudited) 30
Slide 31: Non-GAAP Financial Measures (unaudited)
Non-GAAP Financial Measures (unaudited) 31
Slide 32: Non-GAAP Financial Measures (unaudited)
32 Non-GAAP Financial Measures (unaudited)
Slide 33: Non-GAAP Financial Measures (unaudited)
Non-GAAP Financial Measures (unaudited) 33
Slide 34: Non-GAAP Financial Measures (unaudited)
Non-GAAP Financial Measures (unaudited) 34
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