Npk International Inc. · NYSE:NPKI
Npk International — Newpark Resources — Investor Presentation (February 2013)
27 slides from Npk International's investor presentation, Feb 15, 2013
Slide 1: Newpark Resources Presentation February 2013
NEWPARK RESOURCES PRESENTATION February 2013 Tea
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 futur
Slide 3: Company Overview
Company Overview 2012 Revenue $1.038 billion ane 83% I Fiids Systems and Engineering [ll Mats and integrated Services I Ervironmental Services 2012 Segment Operating Income $128 million* 11% 47% 42% ‘Excludes expenses of corporat office NYSE: NR > Specialized provider of: > Fluids Systems and Engine
Slide 4: Strategic Drivers — Technology
Strategic Drivers — Technology > Focused on continually providing new technology to our customers > Patented drilling fluid systems used in land, shelf and deepwater drilling > Evolution® our family of high- performance water based systems introduced in 2010 > Durabase® composite mat system provides
Slide 5: Strategic Drivers — International Expansion
Strategic Drivers — International Expansion > International expansion is akey "| element of our long-term strategy 3.0 . > Market diversification provides greater earnings stability > International operators follow longer investment horizons > Lower concentrations in individual markets, reducing $50
Slide 6: Global Presence - 2006
Global Presence - 2006 NYSE: NR. 2006 Consolidated Revenues - " $642 million “Canada EMEA mother an Tew
Slide 7: Global Presence - Current
Global Presence - Current 2012 Consolidated Revenues - $1.038 billion “Canada EMER satin America WAPAC m Other a Tea NYSE: NR. 7
Slide 8: 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 > Newp
Slide 9: Financial Summary — Q4 2010 to Q4 2012
Financial Summary — Q4 2010 to Q4 2012 Revenue and Operating Income es Revenue (left) + Operating > Maintaining revenue and operating income despite 24 half 2012 declines in US rig counts » Actions continue to eliminate U.S. cost inefficiencies following 2012 transition from dry gas to liquid region
Slide 10: Drilling Fluids Segment — Market Share
Drilling Fluids Segment — Market Share 2011 Worldwide Drilling and ode Ee ho > 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% > 4t largest drilling fluids provider worldwide > 3 largest in N
Slide 11: Evolution
Evolution > Award-winning Evolution system continues to demonstrate superior performance vs. oil based mud > Higher lubricity > Improves rate of penetration > Increases length of lateral sections > Minimizes days on well > Environmentally friendly Evolution Revenues > Reduces disposal cost for cutti
Slide 12: Fluid Systems & Engineering — North America
Fluid Systems & Engineering — North America North American Revenues: {i $568 $585 $615 z i 4 $500 rei $400 $300 $268 $200 100 $0 2008 20092010 our 2012 Market Share % by Basin ath Qtr 2012)" af 43% ao Bim bom BE am mm 8 2 sx * ™ we ee, 7, Poo. ef é WE: RP oY ne anc? im ExonMobl Baa +. wom om F devon
Slide 13: Fluid Systems & Engineering — EMEA
Fluid Systems & Engineering — EMEA > Core Markets = > Algeria, Italy, Romania,Tunisia, Libya ™ Operating | a Countries » Near-Term Growth Markets po > Kurdistan, Georgia, Ukraine, frie, Hungary, Spain, Kuwait > Pursuing continual country step-outs as North Africa remains uncertain oy EMEA Revenues :
Slide 14: Fluids Systems & Engineering — Latin America
Fluids Systems & Engineering — Latin America > 2007 entry in Brazil helped establish Newpark in Deepwater market LY a» > Expanding work with Petrobras and sas 10C’s > Focus on proprietary products such as DeepDrill®, water-based technology > Looking to expand beyond Brazil MAERSK Latin America Reven
Slide 15: 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 late second quarter 2012 Asia Pacific Revenues $42 25 2011* 2012 NYSE: NR “Business acquired in April 2011 15 sa contact. ¥ NEWPARK
Slide 16: Mats & Integrated Services
Mats & Integrated Services > New environmental applications drove growth in recent years > Use of composite mats to minimize adverse impacts of land drilling » Revenues include sale of DuraBase® composite mats and rentals > Mat sales targeted to international E&P customers and domestic customers out
Slide 17: Environmental Services
Environmental Services Environmental Services Revenues > Processes and disposes oy of E&P waste » Non-hazardous oilfield waste $54 $49 $49 $43 > Leading market position in U.S. Gulf Coast > Uses low pressure injection technology > Waste disposed into unique geological structures underground Chevron
Slide 18: Outlook
Outlook 898993 USS. Drilling Rigs by Type” Horizontal Vertical —Directional DP PM OH PPP EEE PER KOEI H 20% 10% Oil vs Gas Rig Mix” or aus PP PP PP DO YM SH oS Ye ee PPP LRP MORE NYSE: NR oe v Shift towards oil rich plays has stabilized > Cost reduction efforts continue Increase in unconventional dr
Slide 19: Appendix
APPENDIX E vewrank
Slide 20: Consolidated Statements of Operations
Consolidated Statements of Operations (Unaudited) “Three Months Ended “Twelve Months Ended December31, September30, December31, December 31, December 31, {in thousands, ewept per share data) 2012 2012 2011 2012 2011 Revenues S 2032 $295 S$ WISE —-S_LBKOID $95 IB Cost ofrevenues 219817 210.296 204991
Slide 21: Fourth Quarter 2012 Non-GAAP Earnings Reconciliation
Fourth Quarter 2012 Non-GAAP Earnings Reconciliation ‘To supplement our financial results presented in accordance with generally accepted accounting pricnciples in the United States (GAAP), this press release contains, and the related earnings corference callwil refer to, our adjusted non-GAAP net i
Slide 22: Operating Segment Results
Operating Segment Results (Unaudited) ‘Three Months Ended December3i, September 30, December 31, (in thousands) 2012 2012 2011 Revenues ids systems and engineering S 229329 $ 211457 $221,125 Mats and integrated services 26612 35,067 29376 Environmental services, 14387, 13075 Total revenues $_270328
Slide 23: Consolidated Balance Sheets
Consolidated Balance Sheets NYSE: NR. in thousands, xe share data) 2012 21 ASSETS = © Cashandeash quits Reve. net Deferod vast Propai epenses and othercumert assis LIABILITIES AND STOCKHOLDERS" BQUITY “Totalcuent bie Defer abil (Common stock $001 parva, 20,0000 sha ethoiod {and 975367 nd 9:07 525 sh
Slide 24: Consolidated Statements of Cash Flow
Consolidated Statements of Cash Flow NYSE: NR. Anais ear Bde December 3, ‘ta ousond 2012 2011 ‘Cash lo rom operating ates Netitcom Smo ssw Adjusts to econ et iacome fo net eas provided by operations ‘Input charges 43 5 Depreciation and antzaton 2x1 2871 Sock-ased compensation pense 7103 438 rosin fr
Slide 25: 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 ¥ NEWPARK NYS
Slide 26: 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 2008. In June 2006, Mr. Howes also was appointed as Newpark’s President. Mr. Howes’ career has included experience in the defense industry, chemicals
Slide 27: Management Biographies
Management Biographies Lee Ann Kendrick, Vice President, Human Resources: Lee Ann joined Newpark in January 2012 as Vico President of Human Resources. Prior to joining Newpark, Ms. Kendrick was responsible for human resources for The Americas with Lloya's Register, arisk management and safety assura
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