Npk International Inc. · NYSE:NPKI
Npk International — Newpark Resources — Investor Presentation (September 2015)
23 slides from Npk International's investor presentation, Sep 16, 2015
Slide 1: Newpark Resources Presentation September 2015
Newpark Resources Presentation September 2015 NYSE: NR
Slide 2: 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 future, including Newpark's strat
Slide 3: Revenues and First Half 2015 Revenue by Segment
Revenues ($ millions) 3 3 $600 $400 2010 «20112-2012, 2018S .2014 First Half 2015 Revenue by Segment Wi Fluids Systems [] Mats and Integrated Services First Half 2015 > Operating Segments: > Fluids Systems > Mats and Integrated Services > Customer markets: > Oiland Gas Industry > Recent expansion in
Slide 4: Expanding Global Presence
NEWPARK == EXPANDING GLOBAL PRESENCE First Half 2015 Revenue by Region wU.S. mEMEDS @latinAmerica [APAC [Canada 229% we Hil contract awards to begin within 12 months
Slide 5: Fluids Systems
é FLuips Sys Total Segment Revenues WH cull year First Hatt 2009 2010 2011 $025 $965 $862 2012 2013-2014 2015 First Half 2015 — Revenue by Region 3% DUS. DCanada MEMEA latin America DAPAC MS > Largest independent drilling fluids provider > 3° largest drilling fluids company worldwide > Seek to capit
Slide 6: Our Focus on Technology
NEWPARK OuR Focus ON TECHNOLOGY Driving to be the recognized leader in innovative fluids chemistry and service quality Worldwide Technology Center opened in 2013, serving as the foundation to our expanding capabilities and new product development Continuing to drive transition to water-based drillin
Slide 7: Evolution Revenues
Evolution Revenues > Patented Evolution system 08 continues to demonstrate superior drilling performance, reducing total drilling cost Bh atvesr =e $250 -| fp First att $200 > Premium margin compared to traditional fluid systems > Investing in new chemical blending 2010 201120122013 20142015 plant a
Slide 8: Expansion into Deepwater GOM
NEWPARK EXPANSION INTO DEEPWATER GOM > Deepwater foundation established in Brazil > Expanded into Black Sea in 2014 > Uruguay ultra-deepwater project in 2016 > Deepwater market penetration aligns with efforts to expand IOC/NOC relationships > Newpark recognized as “best in class” fluids alternative
Slide 9: Fluids Systems — North America
NEWPARK FLUIDS SYSTEMS — NORTH AMERICA North American Revenues BH rut year $687 gx 9700 rics Hat gses $515 S058 £ $600 E $500 suas "g $400 & $300 = $200 $100 $0 2009 2010 2011«2012«« 201320142015, NAM U.S Rig Count & Market Share!) mmm NAM Rig Count —Market Share 2,500 16% 2,283 2,241 2114 % 2,000 1
Slide 10: Fluids Systems - International
NEWPARK = FLUID SYSTEMS - INTERNATIONAL International Revenues > International expansion is key to our strategy Bh rut vear GR First Hatt wick > More stable than NAM > Longer term contracts > Largely lOC’s/NOC’s > Few competitors 214 > Key contract awards driving current 2009 2010 «2011: «2012-2013
Slide 11: Fluids Opportunities in the Downturn
TT Ntweare = FLUIDS OPPORTUNITIES IN THE DOWNTURN > Complete “next level” infrastructure investments, preparing for eventual recovery > Strengthen our organizational capabilities by adding key talent > “Fluids focused” culture > Commitment to providing the resources required to become the recognized
Slide 12: Mats & Integrated Services Overview
NEWPARK MATS & INTEGRATED SERVICES OVERVIEW Leading provider of engineered worksite solutions Patented technology and size of composite mat rental fleet provide competitive advantage Revenues include rentals and sale of DURA-BASE composite mats > Matsales targeted to international E&P and non-oil an
Slide 13: Mats & Integrated Service Strategy
NEWPARK — MATS & INTEGRATED SERVICE STRATEGY > Key investments made to support future growth > Manufacturing capacity expanded > R&D center nearing completion ~ > Transform wellsite offering to system solution, driving lowest cost to operators > Defender Spill Containment System > Mobile Cleaning Sy
Slide 14: Capital Deployment Strategy
NEWPARK = CAPITAL DEPLOYMENT STRATEGY Capital Deployment > Maintain a disciplined approach 1 capital investments = Acquisitions Share Repurchases toward capital deployment with 100% decisions based on long-term 80% . . impact to return on invested 60% capital 40% 20% > Cash usage priorities > Organi
Slide 15: Balancing Long-Term Focus
BALANCING LoNG-TE RM Focus Revenue and EBITDA Margin* $2,200 {rut veor — é 2013 2014 2015 “Reflects reported operating income plus depreciation and amortization expense, asa percent of consolidated revenues 2010 © 2011~—-2012 U.S. Drilling Rig Type” 1,600 Vertical 1,400 1,200 3,000 Directional Horiz
Slide 16: Appendix
APPENDIX
Slide 17: Consolidated Statements of Operations (Unaudited)
(Unaudited) Three Months Ended ‘SixMonths Ended Tune30, March31, ‘June 30, Tune 30, June 30, a thovsands swept per sharedata) 2018 2015 2014 2015 2014 Revenses S 16364 § mB4eL $4 $ 31S $ 515,290 Cost ofrevanves 1425s 176634 2am 318,789 ann Selling, general and adming trative expenses 2398 25978 2798
Slide 18: Segment Revenues and Operating Income (Unaudited)
(Unaudited) Three Months Ended June 30, March 31, June 30, (in thousands) 2015 2015 2014 Revenues Fluids systems 140344 171,902 241,386 Mats and integrated services 23300 36,562 31,080 Total revenmes 163,644 208.464 272,466 Operating income (loss) Fluids systems (223) (1,702) 27571 Mats and integrat
Slide 19: Consolidated Balance Sheets
Candies) June 30, December 31, Gn thovsands, sceptshare data 2015 20L ASSETS (Cash and cash equivalents Somers won Recefvables. at 193306 318500 Inventories 188900 196556 Defened taxaseete 5075 11013, Prepaid expenses and other coment asets rages nis ‘Toalcoment asses ast? Gord Property, plant and e
Slide 20: Consolidated Statements of Cash Flows
(Casvsied) ‘SieMonths Ended ume 30, (Gn thousands 2015 201 ‘Cash tows fom operating aches: ‘Net income (oss) S Gams 55340 ‘Adjustments to reconcile nt income to net cath proved by operations Depreciation and amortzaton 21960 20301 ‘Stocisbased compensation expense 6510 5806 Provision fordefened inco
Slide 21: Management Team
Paul Howes Gregg Piontek Mark Airola Bruce Smith Jeff Juergens President & CEO VP & CFO SVP, GC & Admin Officer President Fluids Systems President Mats & Integrated Services 21
Slide 22: Management Biographies: Paul Howes and Gregg Piontek
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 manufactu
Slide 23: Management Biographies: Bruce Smith and Jeffery Juergens
Bruce C. Smith, Executive VP and President Fluids Systems: 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. ope
Newpark Resources — Investor Presentation (September 2015) on 6ix