Dresser-Rand Group Inc. Capital One Southcoast 7th Annual Energy Conference New Orleans, LA December 4, 2012
Global Supplier of Energy Infrastructure Solutions 2012 estimated revenues 2.8 billion 2012 estimated bookings 3.3 billion Growth fueled by strong end markets Worldwide 3
We Serve Energy Infrastructure Worldwide Upstream Midstream Downstream Environmental 12 Months Ended 9/30/12 33% 20% 28% 17% Bookings Gas pipeline Hydrocracking Biomass (pic Reinjection above) Gas lift transmission Fluid…
Dresser-Rand Investment Highlights Well positioned to benefit from continuing energy infrastructure investment: Traditional oil & gas upstream and downstream growth opportunities Emerging market opportunities (Environmental…
Technology Platform Extensions Integrated INTEGRATED Supersonic SUPERSONIC Steam Turbines STEAM TURBINE ENGINES NEW PLATFORMS COMPRESSION Compression COMPRESSION Compression Engines New Platforms Separator / Game Changing High…
Infrastructure Investments Driving New Unit Bookings Growth ( in Millions) 2011 market size 8 billion Expected annual market 2,000 growth: Oil & Gas 10% 1,500 Environmental Solutions 15% to 20% Growth drivers: 1,000 Population…
Upstream - Floating Production Opportunities 130 Projects ( 25,000 MMSCFD in aggregate) Recent Awards: Petrobras 8 FPSOs 700MM North Sea Europe 26 projects Fixed platform (Angola) 150MM including Bream, Dana, Fixed Platform (DATUM…
Awarded 110 Million Project in 3Q12 - Supplying DATUM I for Offshore Production Platform Client: Major National Oil Company (NOC) Scope of supply: two single lift modules using DATUM I compressors driven by our VECTRA 40G gas…
Midstream - Pipeline Opportunities Strong demand for gas transmission especially in China and former CIS In 2Q12, booked a major pipeline award of 95 million in Central Asia In 3Q12, booked 2 pipeline projects valued at 140…
Downstream - Refining Opportunities Regional Refinery Capacity Addition, MMBPD 2012-2016 Europe North America South and Central America Middle East and Africa AsiaPacific 0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 DRC…
Downstream Petrochemical Opportunities Low North America natural gas prices Good for DRC Fertilizer plants Gas-liquids based petrochemical facilities Hydrotreaters / hydrocrackers use compressors and steam turbines Opportunities…
Environmental Segment - CAES Opportunities Dresser-Rand over 20 years of successful Compressed Air Energy Storage (CAES) Only operating installation in North America In 2Q12, acquired IP - now able to provide solutions for the…
Dependable High Margin Aftermarket Revenues ( in Millions) Market size 15 billion 1,500 9% CAGR 2000 to 2011 Since 05 IPO through 2011: New leadership team Added 25 Service & Support Implemented growth strategy 1,000 Centers Acquired…
Business Model Designed to Support Strong Financial Performance in Both Up and Down Cycles Strong Financial Performance Result: Significant Free Cash Flow Revenues Operating Income % of Sales Free Cash Flow Cumulative FCF 2.5 20 2.0…
Major Uses of Cash 2005 to 2011 ( in Millions) 750 725 520 500 449 256 250 0 Share Acquisitions Debt Capital Exp. & Repurchase Repayment Investments Free cash flow used to increase shareholder value 16
Capital Structure at End of Period ( in Millions) Net Debt to Capital 45% Total debt 1,096 45% 46% 44% 32% 6.5% Notes 375 due 2021 20% 20% Term Loan - 299 14% 11% Revolver - 305 -3% -5% Other - 117 05 06 07 08…
Bookings Outlook ( in Millions) New Units Aftermarket 1,600 to 1,400 1,800 1,800 to 1,700 1,800 1,600 2,200 to to 1,900 2,000 1,358 1,350 1,760 1,500 1,026 934 1,320 1,210 900 880 727 450 440 0 E E 09…
Revenue and Operating Income Outlook ( in Millions) Revenue Operating Income 3,500 - 3,700 450 - 530 3,800 540 3,040 2,800 432 2,312 340 2,280 324 257 1,520 216 760 108 0 0 2011 2012E 2013E 2011 2012E 2013E Accelerating…
Summary Strong End Markets (Oil and Gas & Environmental) Expansion of Served Markets (New Products & Technology) Strong Top line Growth Operating Margin Expansion Flexible Manufacturing Strategy Reliable Free Cash…
Appendix
NWC Reconciliation to GAAP ( in Millions) 12/31/2011 9/30/2012 Current Assets 1,150.2 1,221.0 Less: Current Liabilities (932.3) (844.3) GAAP Net Working Capital (NWC) 217.9 376.7 Adjustments: Cash and Cash Equivalents (157.6)…
GAAP Reconciliation - Net Debt to Capital ( in Millions) 31-Dec 30-Sep 2005 2006 2007 2008 2009 2010 2011 2012 Total Debt 598.2 505.6 370.3 370.1 370.0 370.0 1,029.7 1,095.9 Less Cash (98.0) (146.8) (206.2) (147.1) (223.2)…
GAAP Reconciliation - Net Debt to EBITDA ( in Millions) 2005 2006 2007 2008 2009 2010 2011 LTM 9/30/12 Net Income 37.1 78.8 106.7 197.7 210.8 146.7 120.8 167.5 Income Taxes 15.5 58.5 60.9 103.6 101.1 69.0 62.9 86.3 Interest…
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