Npk International Inc. · NYSE:NPKI

Npk International — Newpark Resources — Investor Presentation (September 2013)

26 slides from Npk International's investor presentation, Sep 13, 2013

  1. Slide 1: Presentation

    Presentation August 2013 F ccivan NYSE: NR

  2. Slide 2: Forward Looking Statements

    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

  3. Slide 3: Company Overview

    Company Overview First Half 2013 Revenue - $559 million 86% Il Fluids Systems and Engineering WB Mats and Integrated Services Hl Environmental Services First Half 2013 Segment Operating Income - $68 million* 13% 28% 59% Excludes expenses of corporate office NYSE: NR 3 > Specialized provider of: » Fl

  4. Slide 4: Strategic Drivers — Technology

    Strategic Drivers — Technology > Driving to be the recognized technology leader in each of our business units > Drilling Fluids > New worldwide technology center opened in June 2013 > Evolution’ (patent pending) our family of high-performance water based systems introduced in 2010 > Mats & Integrate

  5. Slide 5: Strategic Drivers — Technology (cont.)

    Strategic Drivers — Technology (cont.) > Evolution system continues to demonstrate superior drilling performance > Higher lubricity > Environmentally friendly > Reduced circulating temperatures Evolution Revenues $120 > Published SPE paper co- =, aad = authored with Occidental Lil $67 $60 $80 > Syst

  6. Slide 6: Strategic Drivers — International Expansion

    Strategic Drivers — International Expansion $300 > International expansion is a key element of our strategy $250 > Market diversification provides greater earnings stability to offset periodic volatility in North America drilling activity $200 $150 Revenues ($ millions) > International operators fol

  7. Slide 7: Global Presence - 2006

    Global Presence - 2006 2006 Consolidated Revenues ——— = = - $642 million ney corn nw ti | “canada S EMEA =US. F ccivann NYSE: NR

  8. Slide 8: Global Presence - Current

    Global Presence - Current 2012 Consolidated Revenues - $1.038 billion Canada "EMEA f Latin As MAPAC SUS. F ccivann NYSE: NR

  9. Slide 9: Strategic Drivers - Customer Support

    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 > Newpark

  10. Slide 10: Drilling Fluids Segment — Market Share

    Drilling Fluids Segment — Market Share 2011 Worldwide Drilling and Completions Fluids Market $10 billion market > Through consistent execution m Newpark Resources 8.1% of strategy, achieving long- term market share growth m Baker Hughes 11.1% Halliburton Corp. 23.7% > 4* largest drilling fluids prov

  11. Slide 11: Fluid Systems & Engineering — North America

    Fluid Systems & Engineering — North America North American Revenues sia S ote iu $615 ow = BB cult Year = Ceache! devon $400 ConocoPhillips ao > Serves most all North American = il » basins, with majority of revenue 30 coming from oil or liquids-related 2010 2011 2012 2013 drilling Revenues ($ milli

  12. Slide 12: Fluid Systems & Engineering — EMEA

    Fluid Systems & Engineering — EMEA > Core Markets > Algeria, Italy, Romania, Tunisia, Libya >Near-Term Growth Markets ~~ ‘ . > Kuwait, Kurdistan, Georgia, Ukraine, yg ~ Hungary > Recent contract awards in Black Sea and Kuwait a EMEA Revenues : | - w Saas sit6 sur E ae suit og BB rutvear SPS fo) $100

  13. Slide 13: Fluids Systems & Engineering — Latin America

    Fluids Systems & Engineering — Latin America > 2007 entry in Brazil helped establish Newpark in Deepwater market > Expanding work with Petrobras and 10C’s > Focus on proprietary products such as water-based technology DeepDrill’, > Looking to expand beyond Brazil Latin America Revenues 100 $100 7 ri

  14. Slide 14: Fluids Systems & Engineering — Asia Pacific

    Fluids Systems & Engineering — Asia Pacific > 2011 acquisition provided entry in the APAC region > Australia >» New Zealand > India > Two year offshore contract began in mid-2012 Soostnai ay Asia Pacific Revenues y $50 ou ist Halt v A — $0 Bh ruttvear a $20 $25 contact ° » $0 ft. £ PF iewrane Revenu

  15. Slide 15: Mats & Integrated Services

    Mats & Integrated Services >» New environmental applications otal Seement Revenues, drove growth in recent years sae ss > Use of composite mats to minimize adverse _ ees impacts of land drilling > Revenues include sale of DuraBase® composite mats and rentals > Mat sales targeted to international E&P

  16. Slide 16: Environmental Services

    Environmental Services Environmental Services Revenues >» Processes and disposes $60) Fst Hat $54 of E&P waste $0 ied a » Non-hazardous oilfield waste W, § 50 Leading market position in U.S. Gulf Coast aa > Uses low pressure injection Bp s10 technology is oo » Waste disposed into unique cts ile ba g

  17. Slide 17: Financial Summary — Q2 2011 to Q2 2013

    Financial Summary — Q2 2011 to Q2 2013 Revenue and EBITDA* $300 mmm Revenue (left) —@=EBITDA (right) $50 > Maintaining revenue and $275 $45 operating income despite 4 = $40 recent declines in US rig 5a $35 counts E s175 $30 = $150 $25 ~ ; ‘ z $12 $20 > Actions continue to é 2a $15 improve U.S. cost

  18. Slide 18: Outlook

    Outlook s U.S. Drilling Rigs by Type” Horizontal Vertical Directional a Oil vs Gas Rig Mix” oll cas PB ga Dr MD” MH WH AM SY PY Ss c : Ee MH WE KH OM KW” * Source: Baker Hughes NYSE: NR 18 Vv North America shift towards oil rich plays has stabilized Increase in unconventional drilling is a favorable

  19. Slide 19: F ccivan

    F ccivan NYSE: NR 19

  20. Slide 20: Consolidated Statements of Operations

    Consolidated Statements of Operations (Unaudited) Three Months Ended ‘Six Months Ended June30, ‘March 31, June 30, June 30, June30, (in thousands, except per share data) 2013 2013 2012 2013 2012 Revenues 276,622 |$ 282518 $ 245,756 $ 559,140 $ 508,092 Cost ofrevenues 225,244 230,406 201,534 455,650

  21. Slide 21: Operating Segment Results

    Operating Segment Results NYSE: NR (Unaudited) Three Months Ended ‘June 30, March 31, ‘June 30, (in thousands) 2013 2013 2012 Revenues Fluids systems and engineering 233,964 247339 202,388 Mats and integrated services 25,412 20584 30,071 Environmental services 17,246 14595 13297 Total revenues 276,6

  22. Slide 22: Consolidated Balance Sheets

    Consolidated Balance Sheets NYSE: NR Woavdied) June30, December 31, (a thousands, onept share data) 2013 2012 ASSETS (Cash and cash equivalents S$ sR0 S46 B16 Receivables, nat 335176 32349 Taventodas 2053, 200734 Deferred tanasset 10354 11596 Prepaid expenses 2nd other coment assets 12300 waa ‘Total

  23. Slide 23: Consolidated Statements of Cash Flow

    Consolidated Statements of Cash Flow NYSE: NR (Waavéited) Six Months Ended June 30 (Qa thousands) 2013, 2012 ‘Cash flows from operating activites: Netincome S$ 3039 $5007 Adjustments to reconcile net income to net cash provided by operations: Depreciation and amptization 21836 15,908 Stockbased comp

  24. Slide 24: Experienced Leadership

    Experienced Leadership + Paul Howes President & CEO + Gregg Piontek VP & CFO ¢ Mark Airola SVP, GC & Admin Officer « Lee Ann Kendrick VP, Human Resources + Bruce Smith President Fluids Systems and Engineering + Jeff Juergens President Mats & Integrated Services & Environmental Services F vcweann NYS

  25. Slide 25: Management Biographies

    Management Biographies 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

  26. Slide 26: Management Biographies

    Management Biographies 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 assu

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