Npk International Inc. · NYSE:NPKI
Npk International — Newpark Resources — Investor Presentation (May 2014)
27 slides from Npk International's investor presentation, May 20, 2014
Slide 1: Newpark Resources Presentation May 2014
Newpark Resources Presentation May 2014 NYSE: NR
Slide 2: Forward Looking Statements
NEWPARK ~ 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. Allstatements that address expectations or projections about t
Slide 3: First Quarter 2014 Revenue and Segment Operating Income
First Quarter 2014 Revenue - $243 million 13% I Fluids Systems BB Mats and Integrated Services First Quarter 2014 Segment Operating Income - $29 mii 46% 54% Excludes expenses of Corporate Office > Operating Segments: > Fluids Systems > Mats and Integrated Services > Customers: > Oil and Gas Industry
Slide 4: Global Presence
Slide 5: Strategic Drivers — Technology
Vi NEWPARK STRATEGIC DRIVERS — TECHNOLOGY > Driving to be the recognized technology leader in each of our business units > Fluids Systems > Our Evolution” family of high-performance water-based systems introduced in 2010 > New worldwide technology center opened in June 2013 > Mats & Integrated Servi
Slide 6: Strategic Drivers — International Expansion
NEWPARK STRATEGIC DRIVERS — INTERNATIONAL EXPANSION > international expansion is a key element of our strategy > Stability of revenue > Longer term contracts > Mostly IOC’s and NOC’s > Fewer Competitors > Recent Contract Awards starting in 2014: > Total, multi-year deepwater Brazil contract > Kuwait
Slide 7: Strategic Drivers — Customer Support
NEWPARK STRATEGIC DRIVERS — CUSTOMER SUPPORT > Focused on backing our leading technology with superior customer support > Over 600 fluids technicians customize and deliver our technology worldwide > Advanced training programs for fluid technicians continue to enhance product and service knowledge >
Slide 8: 2012 Worldwide Drilling and Completions Fluids Market
2012 Worldwide Drilling and Completions Fluids Market > 8% share of combined drilling $11 billion market size . . and completion fluids market; lm Newpark Resources 8.2% significantly higher share in mBaker Hughes 10.4% drilling fluids market = Halliburton Corp. 23.9% > 4* largest drilling fluids pr
Slide 9: North America Fluids Progress
Progress: > Serves most North American Market Share % by Region (1°* Qtr 2014) ® Fe 1 Source: Company estimates basins, with majority of revenue coming from oil or liquids-related drilling Approximately 12% share of total U.S. market in the first quarter 2014 Recent revenue declines driven by two ke
Slide 10: EMEA Core and Growth Markets
> Core Markets > Algeria, Romania, Italy, Tunisia, Libya > Near-Term Growth Markets > India, Kuwait, Kurdistan, Georgia, Hungary > Recent contract awards in Black Sea, Kuwait and India to start in 2014 EMEA Revenues . es S160 gas7 [Fist quarter Vv $140 $18 gaa gang. S47 rut vear Revenues($ millions)
Slide 11: Latin America: Brazil Entry and Expansion
> 2007 entry in Brazil helped establish Newpark in Deepwater market > Focus on proprietary products such as DeepDrill°, water-based technology > Pursuing growth with IOC’s while selectively reducing work with Petrobras > Expanding beyond Brazil Latin America Revenues “7 8 _ goo MB rst cuarer 5am a7
Slide 12: Asia Pacific: 2011 Acquisition
> 2011 acquisition provided entry in the APAC region > Looking to further penetrate market with Evolution System Asia Pacific Revenues Uh Fest cunrter saz $360 rut Year 90) 925 gas s20 sas s10 : * go | 2011* 2012 2013 2014 *Business acquired in April 2011 Revenues (§ 2 Santos ‘We have the energy. Dr
Slide 13: Evolution System Performance
> Evolution system continues to demonstrate superior drilling performance > Higher lubricity > Environmentally friendly > Reduced circulating temperatures > Increased ROP > Patent covering Evolution System issued in the fourth quarter 2013 > Market share expanding in both domesticand international m
Slide 14: Growing Our Deepwater Presence
Wecwesrt : GROWING OUR DEEPWATER PRESENCE > Foundation established in Brazil > Investing in Gulf of Mexico infrastructure re to expand presence North America = ta Middle East 12 South America I Newpark . Active Deepwater Rigs Source: Rigzone and current Company estimates a4
Slide 15: Mats and Integrated Services
> New environmental applications drove growth in recent years > Use of DURA-BASE composite mats to minimize adverse impacts of land drilling > Revenues include DURA-BASE rentals and sale of composite mats > Rental business expanding beyond the U.S. following December 2013 acquisition in U.K. > Mat s
Slide 16: Building Upon the DURA-BASE Technology Driver
BUILDING UPON THE DURA-BASE TECHNOLOGY DRIVER > One of the most durable large scale composite mats in the world > Size: 8 ft X 14 ft, Weighs: approximately 1,000 Ibs > Multiple patents issued and pending > FOUNDATION from which we are launching new products > Spill Containment and others > Capable o
Slide 17: DURA-BASE Spill Containment System
Vi NEWPARK DURA-BASE SPILL CONTAINMENT SYSTEM > Enhancement of the DURA-BASE technology introduces sealing technologyto contain spills on the mat surface > Applications include drilling and completions phase > Field testing on-going with formal launch expectedin 2014 v7
Slide 18: Revenue, EBITDA and Debt to Capitalization
Revenue ($ millions) 6 millions) 2Q12 3Q12 4Q12 1013 2013 3Q13 4Q13 1014 ‘Reflects reported operating income plus depredationand amortization experse Debt to Capitalization $30 $25 40% 35% 20% 25% 20% Jun-12 Sep-12 Dec-12 Mar-13 Jun-13 Sep-13 Dec13 Mar-14 WME Debt © MENEINet Debt —l=Debt to Capital/
Slide 19: Summary: Technology, Global Footprint, Growth Investments
> Differentiating through technology and driving operational efficiency > Evolution family of high-performance water based fluid systems > DURA-BASE composite mat systems > Expanding global footprint > Making investments to drive continued growth > Fluids deepwater market penetration > Mats manufact
Slide 20: Appendix
APPENDIX
Slide 21: Consolidated Statements of Income (Unaudited)
(Unaudited) ‘Three Months Ended thousands. except per share data Revenues Cost of revenues Selling, general and administrative expenses Otheropentine income.net Openatine income Foreign currency exchane? loss (zain) Inteestespense, net Income fom continuing operations before income taxes Provision f
Slide 22: Segment Results (Unaudited)
(Unaudited) Three Months Ended March 31, December31, March 31, (In thousands) 2014 2013 2013 Revenues Fluids systems 211400 $212,069 247,339 Mats and integrated services 31,424 34,856 20,584 Total revenues 242.824 $246,925 267,923 Operating income (loss) Fluids systems 15,740 § 15,158 22,622 Mats an
Slide 23: Consolidated Balance Sheets
in rossands sot shar dat Mirhsl, December, 20 2013 ASSETS (Cachandcashequivalens ecaivales cat Ieventres Defemestanasset Prapid penses and other coment se Asia cfekcontnos operons ‘Tealcurantacset Propery, pletans equim, et Gost ‘Othr ange sees, at nara Aiea cfeiscontinosd operons ‘Testanses [LIABIL
Slide 24: Consolidated Statements of Cash Flows
Gaasdind) Gathowsands) Cashflows from operating atid Niece ‘Adjustnents to econtile nat income to ast cash provided by operations: Depreciation and amertiation 10287 1095+ Stocksbared compensation pant 230 1973 Provision Sedefead icone twee 3.108), sa Net provision fordoubtfbl accounts YS 208 Gain o
Slide 25: Management Team
Paul Howes Gregg Piontek Mark Airola Lee Ann Kendrick Bruce Smith Jeff Juergens President & CEO VP & CFO SVP, GC & Admin Officer VP, Human Resources President Fluids Systems President Mats & Integrated Services 25
Slide 26: Management Biographies: Paul Howes
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 27: Management Biographies: Lee Ann Kendrick
Lee Ann Kendrick, Vice President, Human Resources: Lee Ann joined Newpark in January 2012 as Vice President of Human Resources. Prior to joining Newpark, Ms. Kendrick was responsible for human resources for The Americas with Lloyd's Register, a risk management and safety assurance organization in en