Npk International Inc. · NYSE:NPKI
Npk International — Newpark Resources — Investor Presentation (May 2013)
26 slides from Npk International's investor presentation, May 22, 2013
Slide 1: Newpark Resources Presentation May 2013
NEWPARK RESOURCES PRESENTATION May 2013 al EL NEWPARK
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
Slide 3: Company Overview
Company Overview First Quarter 2013 Revenue — $283 million 7% 88% Il Fluids Systems and Engineering 1B Mats and Integrated Services Hl Environmental Services First Quarter 2013 Segment Operating Income - $35 million* 10% 25% 65% “Excludes expenses of corporate office NYSE: NR > Specialized provider
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 opening mid-2013 > Evolution’ (patent pending) our family of high- performance water based systems introduced in 2013 > Mats & Integrated
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 > Published SPE paper co- authored with Occidental $80 > System roll-out expanding into international mark
Slide 6: Strategic Drivers — International Expansion
Strategic Drivers — International Expansion > International expansion is a key element of our strategy > Market diversification provides greater earnings stability to offset periodic volatility in North America drilling activity > International operators follow longer investment horizons > Recent co
Slide 7: Global Presence - 2006
Global Presence - 2006 2006 Consolidated Revenues - $642 million al EL NEWPARK NYSE: NR
Slide 8: Global Presence - Current
Global Presence - Current 2012 Consolidated Revenues - = = $1.038 billion “Canada SEMEA BlatinAmerica BAPAC =U-S. al EL NEWPARK NYSE: NR 8
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 > Advancedtraining programs for fluid technicians continue to enhance product and service knowledge > Newpark r
Slide 10: Drilling Fluids Segment — Market Share
Drilling Fluids Segment — Market Share 2011 Worldwide Drilling and Completions F. 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 provider
Slide 11: Fluid Systems & Engineering — North America
Fluid Systems & Engineering — North America North American Revenues 7000 First quarter $615 a 585 FO Beater ao 5425 sea & 400 ConocéPhillips g 300 $268 > Serves most all North American i ae basins, with majority of revenue ae on coming from oil or liquids-related o ane 2009 2010 201 202 2013 drillin
Slide 12: Fluid Systems & Engineering — EMEA
Fluid Systems & Engineering — EMEA > Core Markets > Algeria, Italy, Romania, Tunisia, Libya > Near-Term Growth Markets ~ a 4 r * > Kuwait, Kurdistan, Georgia, Ukraine, yg ~ Hungary > Recent contract awards in Black Sea and Kuwait ao EMEA Revenues : | Se w First Quarter s20 | sa16 113 su7 ~ Sit Bi fu
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 DeepDrill°, water-based technology > Looking to expand beyond Brazil Latin America Revenues $100 500 | Ml
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 Year on Santos began in mid-2012 Wie have the energy. Asia Pacific Revenues O v , $50 ? aerate saz ad origin 5 so & amy contact g 2 510 $0 *
Slide 15: Mats & Integrated Services
Mats & Integrated Services > New environmental applications drove growth in recent years $140 > Use of composite mats to minimize adverse ees impacts of land drilling = s10 > Revenues include sale of y sso. DuraBase® composite mats and i $60 rentals > Mat sales targeted to international E&P customer
Slide 16: Environmental Services
Environmental Services Environmental Services Revenues $60) first quarter = > Processes and disposes 4 Full Year $49 49 of E&P waste aad nbs : > Non-hazardous oilfield waste wW) 5 > Leading market position Ss in U.S. Gulf Coast P > Uses low pressure injection id 2 * s Revenues ($ millions) 8 technol
Slide 17: Financial Summary — Q1 2011 to Q1 2013
Financial Summary — Q1 2011 to Q1 2013 Revenue and Operating Income lm Revenue (left) _—#=Operating income (right) > Maintaining revenue and 2 operating income despite cy recent declines in US rig a counts = s1s0 3 = . . . § ue & > Actions continue to improve ig: Z U.S. cost structure following $50
Slide 18: Outlook
Outlook U.S. Drilling Rigs by Type” Oil vs Gas Rig Mix” So so we FF ¥ * Source: Baker Hughes NYSE: NR 18 North America shift towards oil rich plays has stabilized Increase in unconventional drilling is a favorable trend > Evolution > Spill Containment Some near-term caution remains in the U.S., but
Slide 19: al 1s
al EL NEWPARK NYSE: NR 1s
Slide 20: Consolidated Statements of Operations
Consolidated Statements of Operations (Unaudited) Three Months Ended ‘March 31, December 31, March 31, (in thousands, except per share data) 2013 2012 2012 Revenues S 282518 $ 270,328 S$ 262,336 Cost of revenues 230,406 219,817 214,902 Selling, general and administrative expenses 24,192 24217 21,313
Slide 21: Operating Segment Results
Operating Segment Results NYSE: NR (Unaudited) Three Months Ended March 31, December 31, | March 31, (In thousands) 2013 2012 2012 Revenues Fluids systems and engineering Mats and integrated services Environmental services Total revenues Operating income (loss) Fluids systems and engineering Mats an
Slide 22: Consolidated Balance Sheets
Consolidated Balance Sheets Caavdited) March 31, December 31, Gn thousands, exept share data 2013, 2012 ASSETS Cash and cash equivalents $4170 $ Recewables, net 3850 Jnventones 21026 Deferred taxaseet Prepaid expenses and other curent assets Total cunent assets Property, plant and equipment, net Goo
Slide 23: Consolidated Statements of Cash Flow
Consolidated Statements of Cash Flow NYSE: NR Cnaudited) ‘Three Months Ended March 31, (a thousands 2013, 2012 ‘Cash flows from operating acti Netincome $1375 15,634 Adjustments to reconcile net income to net cash provided by operations: Depreciation and amortization 10.954 8018 Stock-based compensa
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 al EL NEWPARK
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
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