Npk International Inc. · NYSE:NPKI
Npk International — Newpark Resources — Investor Presentation (May 2024)
32 slides from Npk International's investor presentation, May 3, 2024
Slide 1: May 2024 Investor Presentation: Positioned for Sustainable Growth
May 2024 Investor Presentation Positioned for Sustainable Growth
Slide 2: Notice to Investors: Forward Looking Statements
Notice to Investors Forward Looking Statements This presentation contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. All statements other than statements of historical facts are forward-looking statements. Words such as “will,
Slide 3: Agenda
Agenda Introduction End-Market Overview Summary of Key Financial Data 3
Slide 4: Introduction
4 Introduction
Slide 5: Transformation Strategy
Transformation Strategy Aligning Portfolio to Maximize Value Creation Through Accelerated Growth in Power & Infrastructure Markets Disciplined Strategy Aligned with Long-Term Global Megatrends
Slide 6: Company Overview
O&G Exploration & ProductionMidstream Company Overview Newpark Resources, Inc. headquartered in The Woodlands, TX, is a global company operating two independent business units, Industrial Solutions and Fluids Systems, supporting energy and infrastructure markets. We built a reputation for innovating
Slide 7: Leader in Power and Energy Infrastructure Solutions
Leader in Power and Energy Infrastructure Solutions INDUSTRIAL SOLUTIONS Power Infrastructure, O&G, Construction and Renewables Leading provider of specialty rental and services, redefining safety & efficiency standards Unique business model includes integrated manufacturing of 100% recyclable DURA-
Slide 8: Invest & Grow Segment Approach Supports Growth & Shareholder Return
Projected Invest & Grow Segment Approach Supports Growth & Shareholder Return 8 ApproachTTM ADJ EBITDA**Net Assets* Fl ui ds S ys te m s $73M $32M * Net Assets represents segment net assets, excluding cash and debt, as of March 31, 2024. ** Adjusted EBITDA is a non-GAAP financial measure. See earnin
Slide 9: Key Operational Highlights Aligned with Strategy
26% Reduction in Fluids Systems net working capital from 2022 Fluid Systems Net Working Capital 8% CAGR in Industrial Solutions Adj. EBITDA (2021 - Q1 '24) Industrial Solutions EBITDA* 11% CAGR from Industrial Solutions Rental and Services revenues (2021 - Q1 '24) Key Opera onal Highlights Aligned w
Slide 10: Well-Positioned in Substantial Energy Megatrends
Well-Positioned in Substantial Energy Megatrends 10 Multi-Trillion Dollar Markets Provide Long-Term Opportunities $14T+ Electrification $1T+ Renewables $12T+ Global Oil & Gas Investment in global electrical grid to enable “electrification of everything” Renewable Generation tie- ins and grid hardeni
Slide 11: Differentiated Model Exploiting Competitive Advantages
Differentiated Model Exploiting Competitive Advantages • Self-funding organic expansion in high-growth, high-returning infrastructure markets • Focused capital light Fluid Systems positioned to generate cash through cycles • Technology, scale, and service drive customer loyalty and productivity • Gl
Slide 12: Maintaining Adjusted EBITDA as we reposition the Company
Change20232019 -2%$80M Adjusted EBITDA* $82M Adjusted EBITDA* Maintaining Adjusted EBITDA as we reposition the Company +15%70% % of Segment Adj. EBITDA* generated from Industrial Solutions 61% % of Segment Adj. EBITDA* generated from Industrial Solutions Increasing Adjusted EBITDA generation from mo
Slide 13: End-Market Overview
13 End-Market Overview
Slide 14: Utilities Infrastructure Megatrend Powering Growth
Utilities Infrastructure Megatrend Powering Growth The $1.2 trillion Infrastructure Investment and Jobs Act (IIJA) is investing significantly over next decade, including ~ $70B for electric grid and hardened energy infrastructure $300B federal clean energy tax package over next 10 years from Inflati
Slide 15: Positioned for Growth in Multi-Billion Dollar Temporary Access Market
Positioned for Growth in Multi-Billion Dollar Temporary Access Market Specialty Rental and Services Supporting Infrastructure Megatrends Utilities O&G PipelineConstruction Rail & Other Our Footprint What We Do Leading rental provider and manufacturer of composite temporary worksite access solutions
Slide 16: Industrial Solutions End-to-End Operating Model
Industrial Solutions End-to-End Operating Model 16 Differentiated by Optimizing Across the Value Chain Providing Strong Results Product Engineering & Design Materials Sourcing & Procurement Precision Manufacturing Product Direct Sales Mat Fleet Rental & Services Belief in Innovation • High performan
Slide 17: Industrial Solutions: Strategic Progress Supported by Strong Infrastructure Trends
Utilities O&G General Construction Pipeline Rail Other Q1 2024 REVENUE BY INDUSTRY $50 $60 $70 $80 2021 2022 2023 TTM Q1 2024 M IL LI O N S Industrial Solutions • Strategic investments in technology, scale, and service to drive specialty rental differentiation • Expansion of specialty rental fleet t
Slide 18: Global Demand for Oil and Gas Remains Resilient
Global Demand for Oil and Gas Remains Resilient $12T+ Investment in Oil & Gas projected to meet global demand in Sustainable Development Scenario over next 30 years Access to affordable and reliable energy critical for developing economies Geopolitical instability heightens global focus on energy se
Slide 19: Fluids Systems: Agile, Capital-Light Technology & Services
Eastern Hemisphere U.S. Canada • Recent divestitures driving shift to international markets; 75% of Q1 2024 revenues generated outside of U.S. • Global footprint aligned to long-term, strategic markets • Reshaping balance sheet to drive “Capital-Light” model, and reduce return cyclicality • FCF gene
Slide 20: Long-Term Capital Allocation Strategy
Long-Term Capital Allocation Strategy 20 Disciplined Approach Balances Growth Investments with Return of Capital Maintain Target Leverage Invest in Growth Return Excess Cash to Investors Organic M&A• Target net leverage range of 0.5x–1.5x • Net leverage*: 0.5x • Total liquidity**: $96M • Maintaining
Slide 21: Sustainability Embedded in Our DNA
0.0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 2019 2020 2021 2022 2023 Total Company TRIR Sustainability Embedded in Our DNA Environmental Social Governance 21 2023 Sustainability Report Including SASB & TCFD Disclosures Available on Website Shareholder Approval Rate of Executive Compensation * Reflects internal
Slide 22: Why Invest in Newpark Resources?
Why Invest in Newpark Resources? Meaningful growth opportunity tied to the energy transition and critical infrastructure Global presence in large-scale energy markets Proven technologies with economic and environmental benefits Demonstrated ability to adapt and grow Balancing investment in growth wi
Slide 23: Summary of Key Financial Data
23 Summary of Key Financial Data
Slide 24: Business Segment Overview
Business Segment Overview Industrial Solutions Fluids Systems 24 $0 $20 $40 $60 $300 $375 $450 $525 $600 $675 $750 2021** 2022** 2023 TTM Q1 '24 AD JU ST ED E BI TD A (M IL LI O N S) RE VE N U E (M IL LI O N S) Revenues Adjusted EBITDA* Rental & Service (R&S) Product Sales U.S. U.K. Q1 2024 REVENUES
Slide 25: Consolidated Statements of Operations (unaudited)
Consolidated Statements of Operations (unaudited) 25
Slide 26: Operating Segment Results (unaudited)
Operating Segment Results (unaudited) 26
Slide 27: Consolidated Balance Sheets (unaudited)
Consolidated Balance Sheets (unaudited) 27
Slide 28: Consolidated Statements of Cash Flows (unaudited)
Consolidated Statements of Cash Flows (unaudited) 28
Slide 29: Non-GAAP Financial Measures (unaudited)
Non-GAAP Financial Measures (unaudited) 29
Slide 30: Non-GAAP Financial Measures (unaudited)
30 Non-GAAP Financial Measures (unaudited)
Slide 31: Non-GAAP Financial Measures (unaudited)
Non-GAAP Financial Measures (unaudited) 31
Slide 32: Non-GAAP Financial Measures (unaudited)
Non-GAAP Financial Measures (unaudited) 32