The Global Alternative May 2015 2015 Tesco Corporation. All rights reserved.
TESCO At A Glance NASDAQ: TESO REVENUE (M) TTM Q1 15 by segment Total: 513 Headquartered in Houston, Texas Tubular Services 209 TD Sales Stock Price: 12.08 (as of 5/8/15) 135 TD AMSS TD Rentals 70 99 Market Capitalization:…
Addressing the Current Downturn Cash Generation and Preservation Reduced CAPEX in line with market / Opportunistic M&A Generate cash through reduced working capital Optimize our processes and right-size corporate…
Competitive Differentiators Use the Current Downturn to Our Advantage New technology and bundled offerings Aftermarket and Rental operations are market hedge to purchasing original equipment Balanced geographic footprint…
Strategic Objectives Leverage Our Platform to Accelerate New Technology One Global Platform / Two Core Businesses / Four Strategy Implementations PRODUCTS TUBULAR SERVICES AFTER MARKET SALES & NEW SALES SERVICES RENTALS Broad…
Strategy Implementation Strategy Remains the Same - We Will Pace Deployment Based on Market Conditions Drive higher Leverage existing Technology revenue per rig/job infrastructure differentiation Evolve from casing Current…
Strategy Execution Update Strategy Gaining Traction Despite Current Market Conditions Tubular Services Top Drive Offshore: Technology: US GOM ARC North Sea EHM Malaysia Supplement with M&A Mexico Asset Optimization: Bundled…
Test Rig Test Rig Will Accelerate New Product Development Accelerates R&D testing Displays all Tescos technologies Improves quality Training tool 2015 Tesco Corporation. All rights reserved. 9
Expanded Product Offerings Changing the Way We Do Business and Adding New Channels AMSS Secured contract for first offshore TD recertification, opening new market for Tesco Continue with 3rd party TD recertifications, have 10 more…
Shareholder Return Program Optimizing Use of Cash and Return on Capital Share Repurchases 100 million initial authorization through 6/30/2016 (73M remain) EPS accretion benefit must exceed risk-adjusted returns on organic/M&A…
Market Outlook Our Revenue is Highly Correlated to the Rig Count We believe the rig count in NAM is starting to stabilize as the pace of the decline has slowed International rig count to continue to decline slightly over the year…
2015 Financial Guidance Returning to Profitability in 2H15 Expect an operating loss in Q2 pre-restructuring efforts but return to operating profitability in H2 Expected Q2 TD shipments of 10-12; bookings of 5-9 Q2 sequential…
The Global Alternative 2015 Tesco Corporation. All rights reserved.
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