Disclosure Statement Statements made in the course of this presentation that state the Company's or management's intentions, hopes, beliefs, expectations or predictions of the future are forward-looking statements. It is important to…
Vision DistributionNOW will be recognized as the market Leader in Supply Chain Management through superior customer service by leveraging the strengths of our employees, processes, suppliers, technology and information. 3 First…
First Quarter Investment Highlights Focused on profitable market share gains that align with our strategy Investing in DigitalNOW initiative to position DNOW as the total digital solution provider for operators and service…
DNOW: One of the Largest Distributors to the Energy Industry 2019 Revenue by Segment Legacy 150+ years operating Support major land and offshore operations for all 13% 11% the key energy producing regions around the world United…
Comprehensive Product Offering and Balanced Revenue Mix DNOW carries a Valves Pipe 16% 21% broad range of products and services Fittings and Flanges to meet 18% RAPID and CRITICAL deliveries to customers in local and Drilling…
Global Presence and Reach (blue) Company Locations Locations NORWAY UK RUSSIA Distribution Centers Aberdeen CANADA Edmonton Estevan Beulah NETHERLANDS KAZAKHSTAN Distribution Casper Centers: AZERBAIJAN USA CHINA Big Spring…
Blue-Chip Suppliers and Customers Across the Globe Thousands of Suppliers in 40 countries Supporting Customer Operations in 80 countries Drilling Contractors Exploration & Production Midstream Downstream & Industrial…
DNOW is a Critical Link from Drilling to Distribution Upstream Midstream Downstream/ Industrial 9 First Quarter 2020 2020 COPYRIGHT DISTRIBUTIONNOW
Providing Value-Add Solutions Across All Channels ENERGY CENTERS U.S. SUPPLY CHAIN U.S. PROCESS SOLUTIONS Global branch network model On-site model offering customizable Rotating and process equipment supplying products locally to…
DNOW Strategy to Unlock Value Deploying improved order management system coupled Scaling and right-sizing locations reduced to 220 to reflect market demand with SAP Suite on Hana leveraging Google Cloud to increase by consolidating,…
Technology Investments for Reduced IT Service Costs Order Management System (OMS) user interface enhancement to our current ERP. Project under Targeted Improvements development and will deliver: Increased response time to customer…
Investments in Digitalization to Grow Revenue Combination of distribution product, technology and IOT with DNOWs engineering and service offerings enabling access to valuable information that will lower customers operations and…
Structural Transformation Warehousing, selling & administrative (WSA) expense trends Headcount reductions exceeding 1,250 since year- 700 ( in millions) end 2019 and 1,450 since June 2019 650 638 619 Revenue grew 1B from 16 to…
Driving Growth through Acquisitions - Seek high value-add solutions that bring sustainable competitive advantages Clearly Defined - Leverage product lines acquired through acquisitions to gain organic share Acquisition - Utilize strong…
Pipe Price Trends, U.S. dollar per ton ERW Seamless 1,800 3,000 1,600 2,500 1,400 1,200 2,000 1,000 1,500 800 600 1,000 400 500 200 - - ERW Domestic ERW Foreign Smls Domestic Smls Foreign Source: Pipe…
Financial Update
Revenue per Global Rigs and Gross Margins, Trended in millions 1.6 21.0% 1.4 20.5% 20.0% 1.2 19.5% 1.0 19.0% 0.8 18.5% 0.6 18.0% 0.4 17.5% 0.2 17.0% 0.0 16.5% 1Q17 2Q 3Q 4Q 1Q18 2Q 3Q 4Q 1Q19 2Q 3Q 4Q 1Q20…
CFO Highlights: Selected Quarterly Results (Unaudited) Revenue Gross Profit and Margin % ( in millions) ( in millions) 20.1% 19.6% 19.4% 785 639 604 158 125 117 1Q19 4Q19 1Q20 1Q19 4Q19 1Q20 EBITDA Excl. Other Costs…
Cash Generation & Working Capital Management Free Cash Flow Working Capital Excluding Cash ( in millions) ( in millions) 69 22.0% 19.1% 17.9% 690 3 488 (20) 433 1Q19 4Q19 1Q20 1Q19 4Q19 1Q20 Working Capital…
Select Balance Sheet Metrics 1Q20 ( in millions) Comments ( in millions) Cash and cash equivalents 202 Receivables, net 366 55 DSOs Inventories, net 434 4.5 Turn rates Accounts payable 258 48 DPOs Long-term debt No outstanding…
YOY Revenue and Operating Profit (Loss) ( in millions) Unaudited 1Q19 1Q20 Revenue: United States 600 441 Canada 86 78 International 99 85 Total revenue 785 604 Operating profit: United States 19 (204) Canada 2 (58)…
Liquidity and Capital Resources Entered into a five-year 750 million Total Liquidity at March 31, 2020 secured asset based lending facility (ABL) ( in millions) 594 in April 2018. 392 No financial maintenance covenants Fixed…
Environmental, Social & Governance
ESG response to COVID-19 Established crisis business rules Remained connected to our customers communicating impacts on product availability and accessibility, as DNOW designated as an essential business Established a corporate…
Environmental We are committed to working to minimize our impact on the environment through energy management conservation initiatives, air quality improvements, responsible water conservation and recycling where applicable Energy…
Social - Employee and Industry Engagement Employee Employee Industry Development Engagement Engagement Talent Management Employee surveys Support and funding of College Rotational Program Executive leadership video industry related…
Social Social Responsibility Community Engagement We engage and support many organizations and groups in the communities where we operate globally. 30 First Quarter 2020 2020 COPYRIGHT DISTRIBUTIONNOW
Governance We are committed to and recognize the importance of good corporate governance and high ethical standards. DistributionNOWs Code of Business Conduct and Ethical Standards enhances our relationships with key stakeholders,…
Appendix WELLSITE ONSHORE TANK BATTERY EXAMPLE 32 First Quarter 2020 2020 COPYRIGHT DISTRIBUTIONNOW
Example Tank Battery Installation Does not include utilities Water Transfer Skid Water Disposal Skid Vapor Recovery Unit (VRU) LACT Gas Meter ASME Bulk Separator ASME Separators ASME Heater Treaters Pipe, Valves, &…
Timing and Materiality from Drilling to Tank Battery Install Drilling Frac Tank Battery Revenue* 4,000-5,000 per week Minimal 250,000-2 million Time* 60-80 days 45-60 days 45-60 days Customer Drilling Contractors Service…
Thank You IR.DISTRIBUTIONNOW.COM INVESTOR RELATIONS CON TAC T U S AT: I R D N OW.CO M 35 First Quarter 2020 2020 COPYRIGHT DISTRIBUTIONNOW
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