Weatherford International Plc · NASDAQ:WFRD
Weatherford International — Q4 2021 Earnings Presentation
18 slides from Weatherford International's earnings presentation, February 2022
Slide 1: Investor Presentation Q4 2021
INVESTOR PRESENTATION WEATHERFORD INTERNATIONAL PLC Q4 | 2021
Slide 2: Disclaimer
Q4’21 EARNINGS PRESENTATION 2 DISCLAIMER This presentation contains projections and forward-looking statements concerning, among other things, Weatherford International plc’s (“Weatherford” or the “Company”) quarterly and full-year revenues, operating income and losses, segment adjusted EBITDA, adju
Slide 3: Q4 2021 Results Summary
3 Q4’21 EARNINGS PRESENTATION Q4 2021 RESULTS SUMMARY EXPANDING OUR MARGINS SAFETY & SERVICE QUALITY ▪ Adjusted EBITDA of $154 million or 16% ▪ 20% reduction in nonproductive time rate Y-o-Y ▪ Adj. EBITDA margins expanded > 400 basis points Y-o-Y ▪ 46% reduction in lost time days Y-o-Y – Margin expa
Slide 4: 2021 Significant Milestones
4 Q4’21 EARNINGS PRESENTATION Listing on Credit Rating >$4B in commercial Leverage NASDAQ wins improvement ▪ S&P upgrade ▪ $200M Debt ▪ B2/B- Moody’s/S&P Repayment ▪ 0.6x improvement in Net Debt/EBITDA 2021 SIGNIFICANT MILESTONES Refinancing Reporting Margin Free Cash Flow Transactions Re-Segmentati
Slide 5: Focus Areas, 2021 Results, Strategic Vectors
Q4’21 EARNINGS PRESENTATION 2021 2021 STRATEGIC FOCUS AREAS RESULTS VECTORS GOAL North America Performance Doubled Margins in NAM from FY’20 to FY’21 Our Product and Service Portfolio Variable Cost 166 bps increase in gross margins from FY’20 to FY’21 despite inflation Sustainable Management headwin
Slide 6: Consolidated Financial Summary
6 Q4’21 EARNINGS PRESENTATION CONSOLIDATED FINANCIAL SUMMARY ($ in millions, except per share data) INCOME STATEMENT Q4’21 Δ Seq. Δ YoY FY’21 Δ YoY Services Revenue $619 (1%) 27% $2,353 5% Products Revenue $346 7% (2)% $1,292 (10%) Total Revenues $965 2% 15% $3,645 (1%) Adjusted EBITDA $154 (14%) 57
Slide 7: Segment Results: Q4 2021
7 Q4’21 EARNINGS PRESENTATION SEGMENT RESULTS: Q4 2021 ($ in millions) FINANCIAL RESULTS Q4’21 COMMENTS Q4’21 Δ Seq. Δ YoY FY’21 Δ YoY ▪ DRE revenue increased 3% sequentially primarily driven by increased Revenues: activity in NAM offset by a slight decline in MENA Drilling and Evaluation $287 3% 34
Slide 8: Segment Results: Full Year 2021
8 Q4’21 EARNINGS PRESENTATION SEGMENT RESULTS: FULL YEAR 2021 ($ in millions) FINANCIAL RESULTS 2021 COMMENTS Q4’21 Δ Seq. Δ YoY FY’21 Δ YoY ▪ DRE revenue increased 2% year-over-year primarily driven by increased Revenues: activity in LAM primarily offset by a decline in NAM Drilling and Evaluation
Slide 9: Liquidity: Q4 2021 Bridge
9 Q4’21 EARNINGS PRESENTATION LIQUIDITY: Q4 2021 BRIDGE ($ in millions) Q4’21 CASH FLOW BRIDGE Unlevered FCF: $147 million $1,960 $154 $42 $1,680 $1,446 $14 $1,400 $1,113 ($41) ($18) ($4) ($98) $1,120 $840 ($327) ($55) $560 $280 -- Total Cash Adj. Working Capital Capex Taxes Severance & Other FCF It
Slide 10: Liquidity: Full Year Bridge
10 Q4’21 EARNINGS PRESENTATION LIQUIDITY: FULL YEAR BRIDGE ($ in millions) 2021 CASH FLOW BRIDGE Unlevered FCF: $547 million $2,240 $571 $121 $32 $1,960 $1,680 $1,285 $1,400 ($85) ($62) $1,113 ($30) $1,120 ($269) $840 ($361) ($89) $560 $280 -- Total Cash Adj. Working Capital Capex Taxes Severance &
Slide 11: Qualitative Outlook
11 Q4’21 EARNINGS PRESENTATION QUALITATIVE OUTLOOK: Q1’22 vs Q4’21 FY’22 vs FY’21 ▪ Consolidated revenues expected to decline by low ▪ Consolidated revenues expected to grow high single REVENUES single digits driven by lower contract consumption, to low double digits FX and supply chain challenges o
Slide 12: Strategic Vectors, Focus Areas, 2022 Goal
Q4’21 EARNINGS PRESENTATION STRATEGIC 2022 VECTORS FOCUS AREAS GOAL Fulfillment Technology Differentiation Directed Growth Sustainable Profitability Digital Excellence in Transformation Execution Positive Free Cash Flow Simplification ESG & Energy Transition ©2021 Weatherford International plc. All
Slide 13: Appendix
APPENDIX
Slide 14: Appendix A: GAAP to Non-GAAP Net Loss and EPS
14 Q4’21 EARNINGS PRESENTATION APPENDIX A ($ in millions) Reconciliation of GAAP to Non-GAAP Net Loss and Diluted Net Loss Per Share (Unaudited) Quarters Ended 12/31/21 9/30/21 12/31/20 Net Income (Loss) Attributable to Weatherford: GAAP Net Income (Loss) $ (161) $ (95) $ (200) Non-GAAP Adjustments,
Slide 15: Appendix B: GAAP to Non-GAAP EBITDA
15 Q4’21 EARNINGS PRESENTATION APPENDIX B ($ in millions) Reconciliation of GAAP to Non-GAAP EBITDA (Unaudited) Quarters Ended 12/31/21 9/30/21 12/31/20 Net Income (Loss) Attributable to Weatherford $ (161) $ (95) $ (200) Net Income Attributable to Noncontrolling Interests 4 6 5 Net Income (Loss) (1
Slide 16: Appendix C: Operating Cash Flow to Free Cash Flow
16 Q4’21 EARNINGS PRESENTATION APPENDIX C ($ in millions) Reconciliation of Cash Flows from Operating Activities to Free Cash Flow (Unaudited) Quarters Ended 12/31/21 9/30/21 12/31/20 [1] Free Cash Flow : Cash Flows Provided by Operating Activities $ 88 $ 114 $ 22 Capital Expenditures for Property,
Slide 17: Appendix D: Adjusted EBITDA to Free Cash Flow
17 Q4’21 EARNINGS PRESENTATION APPENDIX D ($ in millions) Adjusted EBITDA to Unlevered Free Cash Flow and Free Cash Flow (Unaudited) Quarters Ended 12/31/21 9/30/21 12/31/20 Adjusted EBITDA $ 154 $ 179 $ 98 Cash From (Used) for Working Capital 14 (54) 86 Capital Expenditures for Property, Plant and
Slide 18: Thank You
FOR FURTHER COMPANY INFORMATION WE INVITE YOU TO VISIT THANK Weatherford.com Linkedin.com/Company/Weatherford YOU Facebook.com/Weatherford @WeatherfordCorp YouTube.com/Weatherford @WeatherfordCorp
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