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KeyBanc Capital Markets Industrial, Auto & Transportation Conference – MRC Global Inc.

MRC Global Inc. · May 28, 2015 · 30 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. KeyBanc Capital Markets Industrial, Auto & Transportation Conference – MRC Global Inc. – slide 1
    1 2015 KeyBanc Capital Markets Industrial, Automotive & Transportation Conference May 28, 2015 Jim Braun TM Executive Vice President & CFO
  2. KeyBanc Capital Markets Industrial, Auto & Transportation Conference – MRC Global Inc. – slide 2
    3 Company Snapshot By the Numbers1 Industry Sectors Product Categories Upstream Line Pipe & OCTG TTM Sales 5.920B TTM Adjusted EBITDA 427M Employees 4,700 Projects 28% Locations 400+ Midstream Valves Countries…
  3. KeyBanc Capital Markets Industrial, Auto & Transportation Conference – MRC Global Inc. – slide 3
    4 Revenue by Industry Sector Downstream 25% Gas Utility Other/ 10% Industrial 12% Gas Chemical Chemicals & Utility Transmission 9% Refining 9% 19% Refining13% Midstream 9% Transmission Drilling & 29% 17%…
  4. KeyBanc Capital Markets Industrial, Auto & Transportation Conference – MRC Global Inc. – slide 4
    5 Revenue by Geography and Product Line By Geography By Product Line Gulf Coast 27% Valves 32% Western 25% Fittings & Flanges 21% Eastern 23% Line Pipe 20% General Oilfield Asia / Europe 15% 18% Products Canada 10% OCTG…
  5. KeyBanc Capital Markets Industrial, Auto & Transportation Conference – MRC Global Inc. – slide 5
    6 Long-Term Supplier & Customer Relationships SUPPLIERS IOCs CUSTOMERS Energy Carbon Steel Downstream Tubular Products Marathon JMC DOW DuPont CSI Tubular Petroleum Wheatland TMK- U.S. Phillips 66 Valero Tenaris IPSCO Steel…
  6. KeyBanc Capital Markets Industrial, Auto & Transportation Conference – MRC Global Inc. – slide 6
    7 MRC Global is a leading provider of Integrated Supply Services to the Energy Industry Integrated Supply Statistics Supplying Integrated Supply services since 1988 Accounts for sales in excess of 830 million and growing…
  7. KeyBanc Capital Markets Industrial, Auto & Transportation Conference – MRC Global Inc. – slide 7
    8 Strategic Objectives Execute Global Preferred Supplier Contracts Organic Growth Focus on multi-year Top 25 MRO agreements and Targeted Growth Accounts: adding scope to current agreements develop the next 75 customers Recently…
  8. KeyBanc Capital Markets Industrial, Auto & Transportation Conference – MRC Global Inc. – slide 8
    9 Strategic Shift in Product Mix to Higher Margin Products Total Revenue less Carbon Energy Tubulars (OCTG & Line Pipe) ( millions) 4,238 3,697 3,705 2,989 2,384 2010 2011 2012 2013 2014 15% CAGR for Higher…
  9. KeyBanc Capital Markets Industrial, Auto & Transportation Conference – MRC Global Inc. – slide 9
    10 Product Mix Shift from 2008 to 2014 Stable, higher margin valves are a larger percentage of revenue More volatile carbon pipe is a smaller percentage of revenue The prices of higher margin products are more stable 2008…
  10. KeyBanc Capital Markets Industrial, Auto & Transportation Conference – MRC Global Inc. – slide 10
    11 Carbon Steel Prices in 2008/2009 as Compared to Today Inflation impacted both OCTG and LP in 2008resulting in a significant reduction in prices in 2009 Today, prices are lower and have less to fall in a downturn OCTG Prices…
  11. KeyBanc Capital Markets Industrial, Auto & Transportation Conference – MRC Global Inc. – slide 11
    12 Strategic Expansion into Offshore Production Platform MRO Top 4 largest offshore markets 140 billion E&P spend Norway is the largest we are positioned in 4 of the 5 largest offshore markets MRC Global revenue mix Pre Stream…
  12. KeyBanc Capital Markets Industrial, Auto & Transportation Conference – MRC Global Inc. – slide 12
    13 Building an International Platform for Growth International Segment Revenue 873 ( millions) 567 554 330 256 52 0 2008 2009 2010 2011 2012 2013 2014 Estimated Share of PVF Spend1 MRC Gas MRC Global Chemical 5%…
  13. KeyBanc Capital Markets Industrial, Auto & Transportation Conference – MRC Global Inc. – slide 13
    14 Financial Overview
  14. KeyBanc Capital Markets Industrial, Auto & Transportation Conference – MRC Global Inc. – slide 14
    15 Financial Metrics ( millions, except per share data) Sales Adjusted Gross Profit and % Margin 5,933 1,120 5,571 5,231 1,058 1,009 4,832 850 3,846 663 1,306 1,292 254 241 17.2% 17.6% 19.0% 19.3% 18.9% 19.5% 18.6%…
  15. KeyBanc Capital Markets Industrial, Auto & Transportation Conference – MRC Global Inc. – slide 15
    16 Balance Sheet Metrics ( millions) Total Debt Capital Structure March 31, 2015 Cash and Cash Equivalents 49 1,527 1,454 Total Debt (including current portion): 1,373 1,360 1,373 1,257 Term Loan B due 2019, net of discount…
  16. KeyBanc Capital Markets Industrial, Auto & Transportation Conference – MRC Global Inc. – slide 16
    17 Summary of Certain Debt Terms Repayment No near-term maturities - Global ABL and Term Loan B mature in 2019 Term Loan B has 1% per year amortization, paid quarterly Term Loan B requires repayment in form of annual excess cash…
  17. KeyBanc Capital Markets Industrial, Auto & Transportation Conference – MRC Global Inc. – slide 17
    18 Current 2015 Outlook Updated May 2015 Market indicators North American E&P capital expenditure budgets down 35%, with Canada impacted the most International spending is expected to be 10-20% lower US rig count down…
  18. KeyBanc Capital Markets Industrial, Auto & Transportation Conference – MRC Global Inc. – slide 18
    19 Investment Thesis Highlights Macro drivers MRC Global attributes Growth in global energy consumption Market leader driving investment Exposed to all sectors of global energy Increased global production Long term global…
  19. KeyBanc Capital Markets Industrial, Auto & Transportation Conference – MRC Global Inc. – slide 19
    20 Appendix
  20. KeyBanc Capital Markets Industrial, Auto & Transportation Conference – MRC Global Inc. – slide 20
    21 MRC Global // North America Canada Western Eastern Corporate Headquarters Branch Locations Regional Distribution Centers Valve Automation Centers Gulf Coast
  21. KeyBanc Capital Markets Industrial, Auto & Transportation Conference – MRC Global Inc. – slide 21
    22 Global Footprint to Serve Customers - North America Munster, IN Nisku, AB By the Numbers As of 3/31/2015 Branches 160+ RDCs 10 VACs 14 Cheyenne, WY Pittsburg, PA Employees 3,300 Odessa, TX Nitro, WV…
  22. KeyBanc Capital Markets Industrial, Auto & Transportation Conference – MRC Global Inc. – slide 22
    23 Global Footprint to Serve Customers - Europe Stavanger, NO Bradford, UK Rotterdam, NL By the Numbers As of 3/31/2015 Branches 35 RDCs 3 VACs 14 Branch Locations Countries 12 Regional Distribution Centers…
  23. KeyBanc Capital Markets Industrial, Auto & Transportation Conference – MRC Global Inc. – slide 23
    24 Global Footprint to Serve Customers - Asia Pacific & Middle East Dubai, UAE Singapore Perth, WA By the Numbers As of 3/31/2015 Branches 28 RDCs 4 Brisbane, QLD VACs 7 Countries 8 Branch Locations Regional…
  24. KeyBanc Capital Markets Industrial, Auto & Transportation Conference – MRC Global Inc. – slide 24
    25 M&A - Track Record of Strategic Acquisitions Acquisition Priorities International branch platform for super majors E&P spend Branch platforms/infrastructure for North American shale plays Global valve and valve automation…
  25. KeyBanc Capital Markets Industrial, Auto & Transportation Conference – MRC Global Inc. – slide 25
    26 Upstream
  26. KeyBanc Capital Markets Industrial, Auto & Transportation Conference – MRC Global Inc. – slide 26
    27 Midstream
  27. KeyBanc Capital Markets Industrial, Auto & Transportation Conference – MRC Global Inc. – slide 27
    28 Downstream
  28. KeyBanc Capital Markets Industrial, Auto & Transportation Conference – MRC Global Inc. – slide 28
    29 Performance Measures Sales per Employee1 Adjusted Gross Profit per Employee1 ( thousands) ( thousands) 1,234 1,255 1,181 1,054 238 223 1,043 217 203 180 2010 2011 2012 2013 2014 2010 2011 2012 2013 2014 SG&A / Sales…
  29. KeyBanc Capital Markets Industrial, Auto & Transportation Conference – MRC Global Inc. – slide 29
    30 Adjusted EBITDA Reconciliation Three months Year Ended December 31 ended March ( millions) 2015 2014 2014 2013 2012 2011 2010 Net income 29.1 23.5 144.1 152.1 118.0 29.0 (51.8) Income tax expense 13.1 13.2 81.8 84.8 63.7 26.8…
  30. KeyBanc Capital Markets Industrial, Auto & Transportation Conference – MRC Global Inc. – slide 30
    31 Adjusted Gross Profit Reconciliation Three months Year ended December 31 ended March 31 ( millions) 2015 2014 2014 2013 2012 2011 2010 Gross profit 219.9 232.1 1,018.1 954.8 1,013.7 708.2 518.1 Depreciation and…

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