Baker Hughes Company · NASDAQ:BKR
Baker Hughes — Barclays CEO Energy Conference 2020
18 slides from Baker Hughes's conference presentation, Sep 8, 2020
Slide 1: Barclays CEO Energy Conference
Baker Hughes $3 Barclays CEO Energy Conference September 8, 2020 F Lorenzo Simonelli, Chairman & CEO ~
Slide 2: Forward-looking statements and non-GAAP disclaimer
This presentation (and oral statements made regarding the subjects of this release) may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 2IE of the Securities Exchange Act of 1934, as amended, (eacha “forward-looking statemen
Slide 3: Evolving energy landscape driving changes in energy investment
Evolving energy landscape driving changes in energy investment Total energy demand by fuel 2000-2018 2018-2040 * Cautious near-term, preparing for volatilit +23% +87% y Vere + Energy markets in early state of fod transition + Mix of energy investment changing * Growth in renewables and cleaner energ
Slide 4: Building an energy technology company
Building an energy technology company Evolving the portfolio ... .. while generating FCF ... + $1.2B generated in 2018 5% + $1.2B generated in 2019 RS q + $1.4B generated in LTM pete > ‘state .. and accelerating our strategy + Developing outcome-based solutions across broader energy value chain + Ex
Slide 5: Transform the core: portfolio & cost actions
Transform the core: portfolio & cost actions Portfolio rationalization Cost & margin optimization New business models AC Compressors ~ 2Q18 + Right-sizing operations ... 12% + Growing direct sales in OFS Rotoflow - 3Q18 headcount reduction, 203 . , facilities closed YTD + Exploring new channel Natur
Slide 6: Transform the core: remote ops and digital technology
Transform the core: remote ops and digital technology Driving remote ops in OFS Remote model supporting the same 3 rigs Traditional model Directional Directional Directional Remote Remote Directional MWD MWD MWD MWD On-call field support Executing remote services 72% of drilling jobs performed 20+ c
Slide 7: Transform the core: remote ops and digital technology
Transform thec ops and digital + Expanding TPS services thr * Remote/unmanned operat + Additive manufacturing of | + Outcome-based services _ + Technology injections/upg No routine Reduce or Remote maintenance automate diagnostic and Activities Inspection and assessments concentrated during pre-work
Slide 8: Invest for growth: build an industrial franchise in TPS & DS
invest for growths Bu n industrial ralnchise in TPS & DS Industrial power & process ~ Condition monitoring & technology asset management * Turbines, compressors, valves, gears, * Condition monitoring J pumps + Asset management 2p + Integrated offerings and capabilities + Controls and cybersecurity *
Slide 9: Executing on non-metallic materials strategy
P< SR ES —, 4 — a ae mee § Executing on non-metallic materials strategy * Targeting growth in adjacent and non-oil and gas industries + Expanding in Middle East with Saudi JV Broader chemicals market + Investing in E. Hemisphere growth * Opportunity in downstream chemicals + Increasing role of chemi
Slide 10: Position for new frontiers
Position for new fron \\ bs J )) New frontiers enabled by gro 0 ogy offe Kings Carbon capture, Utilization, and storage Hydrogen . Energy storage + Consultation and feasibility + Hydrogen-fueled gas turbines + Technology partner for oil and + Capture and purification + Play across blue, green, and g
Slide 11: Continued emphasis on free cash flow
Continued emphasis on free cash flow Delivering on FCF potential, maintaining capital discipline $1.2B / ~3.5% A3/ A- $1.4B FCF CAPEX as % of Investment generated revenue since grade rating in ‘19/LTM* merger Taking action to faatelfaixelamilarelared(el| strength + Investing in restructuring to deli
Slide 12: At Baker Hughes we are committed to social responsibility
At Baker Hughes . Led by our purpose of making energy we are committed to cleaner, safer, and more efficient for social responsibility people and the planet Driving carbon footprint reduction Health, safety & wellness 3 1 x Reduction in Baker Hughes carbon Providing a safe and healthy °o emissions s
Slide 13: A company fit for an evolving market
A company fit for an evolving market + Building an energy technology leader * Transforming the core, investing for growth, positioning for new frontiers + Prioritizing free cash flow & returns, maintaining dividend & investment grade rating + Committed to our sustainability framework ... people, pla
Slide 14: Appendix
Appendix 4 Baker Hughes S3
Slide 15: Historical financials and non-GAAP reconciliation (1/3)
Historical financials and non-GAAP reconciliation (1/3) ($ in millions) orders T2018 «101? 2017-3017 417 “T2017 «TBAB. «IB AQIS T2018 1019-2019 «3019 AQT _TY2019 1020-2070 Oilfield Services 0242 2397-2530 2734-2785 10426 «27840-2866 ©—«30]-«3.05I_—«sISBS ©2997-3268 © 3954 3.284 12.902 3147 Oilfield
Slide 16: Non-GAAP reconciliations (2/3)
Non-GAAP reconciliations (2/3) ($ in millions) Reconciliation of GAAP and combined business basis measures used in this presentation Baker Hughes~®: ‘Add: Legacy BHI———— — Combined business basis — Consolidated results Ty6 1917 -2Q17 ir Ty16 1Q17 2017 wir Ty6 1917-2017 7 Revenue 13082 3064 3,015 17,
Slide 17: Non-GAAP reconciliations (3/3)
Non-GAAP reconciliations (3/3) ($ in millions) Reconciliation of Cash Flow From Operating Activities to Free Cash Flow Non-GAAP reconciliation Ty2018 192019 292019 3Q2019 4Q2019 | TY2019 © 192020 292020 Cash flow from operating activities (GAAP) 1762 (184) 593 360 1387 2126 478 230 ‘Add: cash used i
Slide 18: Baker Hughes
Baker Hughes =>