Weatherford International plc · NASDAQ:WFRD

Weatherford International — Q1 2018 Earnings Presentation

18 slides from Weatherford International's earnings presentation, Apr 24, 2018

  1. Slide 1: Weatherford International plc First Quarter 2018

    WEATHERFORD INTERNATIONAL PLC FIRST QUARTER 2018 APRIL 24 2018

  2. Slide 2: Disclaimer

    DISCLAIMER This presentation contains forward-looking statements concerning, among other things, Weatherford’s prospects for its operations and expectations regarding future financial results which are subject to certain risks, uncertainties and assumptions. These risks and uncertainties, which are

  3. Slide 3: Financial Overview

    FINANCIAL OVERVIEW INCOME STATEMENT 1Q 2018 4Q 2017 Δ Seq. 1Q 2017 Δ Yr/Yr Year-over-Year, EBITDA Revenue $1,423 $1,490 -4% $1,386 3% Adj. Segment Operating Income $40 ($83) 148% ($89) 145% improved $65M or Adj. Segment Operating Income Margin 2.81% -5.57% 838 bps -6.42% 923 bps 76%. $27M or 42% was

  4. Slide 4: 1Q 2018 Revenue Mix

    1Q 2018 REVENUE MIX By Geography By Global Business Unit Well Production Construction 27% Eastern Western 27% Hemisphere Hemisphere 47% 53% Drilling and Completions Evaluation 21% 25% 1Q 2018 4Q 2017 Seq Δ 1Q 2017 YoY Δ 1Q 2018 4Q 2017 Seq Δ 1Q 2017 YoY Δ Western Hemisphere $756 $759 -0.4% $733 3% P

  5. Slide 5: 1Q 2018 Hemisphere Revenue by Business Unit

    1Q 2018 HEMISPHERE REVENUE BY BUSINESS UNIT Western Hemisphere Eastern Hemisphere Well Well Construction Production Construction Production 20% 38% 36% 14% Drilling and Evaluation Completions Completions Drilling and 21% 21% 21% Evaluation 29% WESTERN HEMISPHERE REVENUES 1Q 2018 EASTERN HEMISPHERE R

  6. Slide 6: Our Transformation

    OUR TRANSFé RMATION

  7. Slide 7: Setting Clear Targets

    SETTING CLEAR TARGETS MILESTONES ON OUR PATH TO PROFITABILITY MARGINS & EBITDA ‒ $1B by YE2019 in Business Enhancements (Run Rate) and Profit Improvements FREE CASH FLOW ‒ Breakeven in 2018 and Positive in 2019 NET DEBT RATIO ‒ Net Debt-to-EBITDA Ratio Cut in Half by YE2019 ©2018 Weatherford Interna

  8. Slide 8: Achieving Sustainable Savings $1B

    ACHIEVING SUSTAINABLE SAVINGS EXPECTED EBITDA IMPACT OF $1B BY YE2019 PROCUREMENT (28%) RECURRING IMPACT G&A (13%)  Improve sourcing  Offshore back-office functions  Reduce number of suppliers  Enhance global asset optimization LOGISTICS AND SALES/COMMERCIAL (30%) DISTRIBUTION (2%)  Crossdock a

  9. Slide 9: 2018-2019 One-Time Cash Benefits

    2018-2019 ONE-TIME CASH BENEFITS TRANSFORMATION CASH BENEFITS EMBEDDED IN FREE CASH FLOW GUIDANCE $0.5B Total one-time $50M cash benefits * $50M $150M Operational/ $200M Procurement Segments and in 2019 Product Lines $250M Receivables and Payables $300M in 2018 Inventory * Transformation cash cost ~

  10. Slide 10: Transformation Scorecard – Our Starting Point

    TRANSFORMATION SCORECARD – OUR STARTING POINT ANNUALIZED RESULTS WORKSTREAM ANNUALIZED PERCENTAGE ACHIEVED THROUGH 1Q 2018 Sales/Commercial 4% Procurement 0% Operational/Segment 40% Annualized Total and Product Lines G&A 11% Manufacturing 0% $1B 10% ACHIEVED TARGET Logistics and Distribution 0% ©201

  11. Slide 11: Our Divestitures — Strategic Transactions

    OUR DIVESTITURES — STRATEGIC TRANSACTIONS Pressure Pumping and Pump- International Land Down Perforation Assets Drilling Rigs Other Planned Divestitures COMPLETED IN PROGRESS 2 TRANSACTIONS IN PROGRESS  Transaction completed  110 Rigs: Concentration in  Sales process underway December 2017 MENA r

  12. Slide 12: 1Q 2018 Market Highlights

    1Q 2018 MARKET HIGHLIGHTS Market Activity Increasing UNITED STATES RUSSIA  Innovative LWD  AccuView® software enables single- solution enables trip casing exit in Sakhalin optimized completion  Directional drilling successes  MPD technology saves continue operator $1M  New TRS system saves oper

  13. Slide 13: 2018 Technology Preview

    2018 TECHNOLOGY PREVIEW DRILLING AUTOMATED ADVANCED SMART OPTIMIZATION TUBULAR RUNNING COMPLETIONS LIFT  New push-the-bit rotary-  Mechanized  RFID systems for  New ForeSite™ steerable system AutoTong® systems single-trip completions production ‒ Launching April 2018  Trackless tong-  Premium

  14. Slide 14: 2Q 2018 Outlook

    2Q 2018 OUTLOOK REVENUE PROJECTED TO MODESTLY INCREASE VS. Q1 LEVELS EBITDA EXPECTED TO BE GREATER THAN 1Q 2Q TRANSFORMATION IMPACT 50% - 75% ABOVE 1Q REALIZED CONTRIBUTION OPERATIONAL CASH FLOW APPROACHING BREAKEVEN CONTINUED PROGRESS ON PLANNED DIVESTITURES ©2018 Weatherford International plc. All

  15. Slide 15: Appendix

    APPENDIX

  16. Slide 16: Adjusted EBITDA Reconciliation

    ADJUSTED EBITDA RECONCILIATION 1Q 2018 4Q 2017 1Q 2017 NET LOSS ATTRIBUTABLE TO WEATHERFORD $(245) $(1,938) $(448) Net Income Attributable to Noncontrolling Interests 3 4 5 NET LOSS (242) (1,934) (443) Interest Expense, Net 149 152 141 Income Tax Provision 32 62 33 Depreciation and Amortization 147

  17. Slide 17: Adjusted Segment Operating Income Reconciliation

    ADJUSTED SEGMENT OPERATING INCOME RECONCILIATION 1Q 2018 4Q 2017 1Q 2017 OPERATING INCOME (LOSS): Western Hemisphere $24 $(35) $(30) Eastern Hemisphere 16 (48) (59) SEGMENT OPERATING INCOME (LOSS) $40 $(83) $(89) Corporate Expenses (36) (36) (33) Restructuring and Transformation Charges (25) (43) (7

  18. Slide 18: For Further Company Information We Invite You to Visit

    FOR FURTHER COMPANY INFORMATION WE INVITE YOU TO VISIT Weatherford.com WeatherfordAnnualReport.com Linkedin.com/Company/Weatherford Facebook.com/Weatherford @WeatherfordCorp YouTube.com/Weatherford @WeatherfordCorp

Weatherford International — Q1 2018 Earnings Presentation on 6ix