Npk International Inc. · NYSE:NPKI
Npk International — Newpark Resources — Investor Presentation (May 2015)
26 slides from Npk International's investor presentation, May 20, 2015
Slide 1: Newpark Resources Presentation May 2015
Newpark Resources Presentation May 2015 NYSE: NR
Slide 2: 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. Allstatements that address expectations or projections about the future, including Newpark's strate
Slide 3: Consolidated Revenues
Consolidated Revenues $2,400 {MI Full Year > Operating Segments: eau ys om a > Fluids Systems 309 > Mats and Integrated Services $667 > Customer markets: > Oil and Gas Industry > Recent expansion into utilities market (Mats) 2010 2011.2 2012, 2018S 2014S 2015, Q1 2015 Revenue by Segment > Key geogra
Slide 4: Global Presence
dee: = = = GLOBAL PRESENCE Q1 2015 Revenue by Region Canada GEMEA OlatinAmerica MAPAC U.S.
Slide 5: Strategic Drivers — Technology
Vi NEWPARK STRATEGIC DRIVERS — TECHNOLOGY > Driving to be the recognized technology leader in each of our business units > Fluids Systems > Our Evolution” family of high-performance water-based systems introduced in 2010 > Worldwide technology center opened in June 2013 > Mats & Integrated Services
Slide 6: Strategic Drivers — International Expansion
ee NEWPARK STRATEGIC DRIVERS — INTERNATIONAL EXPANSION > International expansion is key to our $350 ull Year strategy ee > Fluids Revenue morestablethan NAM — $300 > Longer term contracts z $250 > Mostly lOC’s and NOC’s 5 > Fewer Competitors & $200 > Key contract awards driving growthin 2 EMEA regio
Slide 7: Strategic Drivers — Customer Support
NEWPARK STRATEGIC DRIVERS — CUSTOMER SUPPORT om st Rated Total Satisfaction OILFIELD SERVICES T-\ Drilling roppants > Focused on backing our leading technology with superior customer support > Advanced training programs for fluid technicians continue to enhance product and service knowledge Strength
Slide 8: Fluids Systems Total Segment Revenues
Revenues($ millions) $1,200 $1,000 Total Segment Revenues WB cuttvear [Bh Fist quarter 2009 ©2010 «2011. 2012-2013 *Based on company data 2014 2015 > Largest independent drilling fluids provider > 3° largest drilling fluids company worldwide > Leading the industry in the development of new fluids te
Slide 9: North American Revenues
North American Revenues I rut vear Gai ' First Quarter $654 Qu $585 $e15 Seog resources ql arn, 2 il a. E $500 sans E soo a .. 3 5200 f © 500 encana = Sache = — ? Ches: $100 af nes - Progress" 2009 2010 ©2011 «-2012-«2013-««2014-—-2015 > Serve most North American Market Share % by Region — 2015 (1)
Slide 10: EMEA Core Markets and Revenues
> Core Markets > Algeria, Romania, Italy, Tunisia, Kuwait > New contracts and geographical expansion driving growth > Region growing in 2015 despite headwind from currency rates EMEA Revenues $180 BB cut year $166 $160 = 0) First quarter $137 § sia0 E120 $16 gann §3 $117 % $100 3 $80 & $60 = 540 200
Slide 11: Fluids Systems — Latin America
Vi NEWPARK —— FLUIDS SYSTEMS — LATIN AMERICA > 2007 entry in Brazil helped establish Newpark in Deepwater market > Focus on proprietary products such as @nadarig’ DeepDrill°, water-based technology : > Selectively reducing exposure to Petrobras while preserving ability to pursue IOC opportunities lo
Slide 12: Fluids Systems — Asia Pacific
NEWPARK : FLuIps SYSTEMS — ASIA PACIFIC > 2011 acquisition provided entry in the APAC region > Looking to further penetrate market with Evolution System > Activity levels soft in 2014 and 2015, impacted by weak oil prices Santos TRGOW y Asia Pacific Revenues neta ie eee QGC v yd 45 Tm ruven 2 — $40
Slide 13: Evolution Revenues
Evolution Revenues BB cut year Bh First quarter > Patented Evolution system continues ern to demonstrate superior drilling performance $251 §250 $200 > Premium margin compared to traditional fluid systems Revenues ($ millions} g > Investing in new chemical blend plant mm a POA: mote and distribution
Slide 14: Expansion into Deepwater GOM
Vi NEWPARK EXPANSION INTO DEEPWATER GOM > Foundation established in Brazil > Recently expanded into Black Sea > Looking to leverage our experience globally, starting in Gulf of Mexico > Approximately $800M drilling fluids market* > Expected growth over the next 3-5 years y 212015 > Limited presence
Slide 15: Leading provider in composite matting
> Leading provider in composite matting products > Reduces operator’s costs and improves environmental protection during drilling and completion phase > Patented technology has elevated barriers to entry > Seeking to accelerate growth by expanding into new markets > Manufacturing expansion increasin
Slide 16: Mats & Integrated Services
NEWPARK Mats & INTEGRATED SERVICES > Revenues include rentals and sale of Revenues by Type DURA-BASE composite mats $180 7 Rental and Services > Mat sales targeted to international E&P se Mat Sales customers and domestic customers F si20 outside of the oil and gas industry = $100 > Mat sales constra
Slide 17: Drilling Rig Counts and Short-Term Actions
U.S. Drilling Rig Type” > Short-Term Actions 1400 teen Neel ese > Adjusting the business to current 1,200 activity levels 1,000 ae am > Workforce reductions in North 600 America 400 ————S— > Reduce discretionary spending, and 200 4 5 seeking cost reductions from PP DO LD DTD IIIS PDD PP DD suppliers
Slide 18: Revenue and EBITDA Margin; Capital Structure
Revenue and EBITDA Margin* $1,200 Full Year $1,118 18% First Quart $1,042 ea $1,000 £ 5 14% B $800 R% s a 10% < $600 ax & 3 3 5 $400 ox ® 3 A% 2 $200 ia 2% $o 0% 2010 © 2011.« 2012, 2013S 20142015 *Reflects reported operating income plus depreciation and amortization expense, as a percentofconsolida
Slide 19: Appendix
APPENDIX
Slide 20: Consolidated Statements of Operations
(Wnaudited) ‘Three Months Ended March 31, December31, March 31, share data 2015 2014 2014 Revenues S 208464 $ 306162 $242,924 Cost of revenues 16,634 237,067 Selling, general and administrative expenses 25978 30,390 (Other operating expense (income), net 76), 14 Operating income 6,128 38,591 Foreign
Slide 21: Segment Revenues and Operating Income
(Unaudited) Three Months Ended ‘March31, _December31, March 31, Gn thousands) 2015 2014 2014 Revenues Fluids systems S$ 17192 $261,029 § =~ 211,400 ‘Mats and integrated services 36,562 45,133 31,44 Totalrevenues _$ 208464 «S$ 306162 S242, 84 Operating income (loss) Fluids systems S 7) S$ 24533 $15,7
Slide 22: Consolidated Balance Sheet
hovsand: hase dat ASSETS Cath and cash equivalents Receivables, nat Taventorias Deferred txascets Prepaid expenses ant other curentassets Toalevmantassets Property, plant and equipment, ast Goodeil Other intangible asets,nat Other assets Total assets LIABILITIES AND STOCKHOLDERS’ EQUTY Short-teandab
Slide 23: Consolidated Cash Flows
Wesssies, ‘Tiree Mantis Ended March 31, (a thousand) 2018 201 (Cash flows Somoperating ates: Netcom Soo son ‘Adpstmenteto oncie ntincoms tonatcath proves by eperations Deoreinon and anoetaton 107 10207 ‘Stoccbesed compensation expense 2568 20 Provision fr deed income tae ims 1a) ‘Net provision fr do
Slide 24: Management Team
Paul Howes Gregg Piontek Mark Airola Bruce Smith Jeff Juergens President & CEO VP & CFO SVP, GC & Admin Officer President Fluids Systems President Mats & Integrated Services 24
Slide 25: 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 and plastics manufactu
Slide 26: Management Biographies (continued)
Bruce C. Smith, Executive VP and President Fluids Systems: Bruce joined Newpark in April 1998 as Vice President, International. Since October 2000, he has served as President of its subsidiary Newpark Drilling Fluids, L.P. Prior to joining Newpark, Mr. Smith was the Managing Director of the U.K. ope