Dresser-Rand Group Inc. (NYSE: DRC) Fourth Quarter 2012 Conference Call March 1, 2013 Copyright 2009
2012 was a Good Year Record bookings and a record level year-end backlog Operating income was 30% higher compared to 2011 Results were adversely affected by certain project delays and a stronger U.S. dollar Estimate adverse…
Dresser-Rands Industry Leading Safety Performance Industry Average DRC Copyright 2011 4
Bookings December YTD ( in Millions) 3,200 3,163 2012 Total Bookings 11% higher than 2011 2,858 2,800 Industry fundamentals are positive Some project delays 2,400 resource constraints & cost pressure 150 2,000 moved into…
New Unit Bookings December YTD ( in Millions) 1,800 Record New Unit Bookings - 1,630 1,500 9% higher than 2011 1,500 4Q 363 Major 4Q12 new unit awards: 4Q 226 an offshore production 1,200 1,274 1,267 platform in the North Sea, a…
Award from Applied Innovation Institute Strategically Significant Compressor package incorporates magnetic bearing technology The Datum C - foundation for ICS Separation & compression in single casing Integrates process cooling into…
Aftermarket Bookings December YTD ( in Millions) 1,600 1,533 Record Aftermarket 1,358 bookings 13% higher vs. 4Q 362 year ago 1,200 4Q 336 1,171 Ongoing recovery in most 1,022 regions, especially the 800 Middle East and Latin…
Backlog by Segment ( in Millions) 3,000 2,946 Backlog of 2.9 billion 2,552 575 15% higher than at 12/11 2,500 477 New unit backlog up 14% 2,000 vs. last year 1,500 2,371 1.7 billion 1,000 2,075 scheduled to ship in 500 2013 0…
Sales by Segment ( in Millions) 900 844 738 Total sales up 14% 600 445 New Unit sales up 16% 395 Aftermarket sales up 13% 300 343 399 0 4Q11 4Q12 Copyright 2011 New Units Aftermarket 10
Fourth Quarter 2012 Results ( in Millions) 4Q12 4Q11 Change Revenues 844.4 738.0 14% Cost of Sales 595.6 508.7 17% - % of Revenues 70.5% 68.9% Selling & Administrative 98.4 94.8 4% Research & Development 12.8 6.9 86% Operating…
New Unit Operating Income & Margins ( in Millions) 60 16.0% 4Q12 operating income 49.3 increased vs. prior year 44.4 14.0% principally due to higher 40 12.9% 12.4% volume 12.0% 4Q12 margin decreased due to a 20 less favorable…
Aftermarket Operating Income & Margins ( in Millions) 123.9 125 30% 4Q12 operating 108.5 income increased vs. 100 27.8% prior year principally 27.5% 25% due to higher volume 75 4Q12 operating margin 50 was slightly higher 20%…
Operating Cash Flow ( in Millions) Twelve Months Ended 12/31/12 12/31/11 Net Income 183 121 D&A 86 79 Deferred Income Taxes 9 21 Stock-based Compensation 22 15 Amort. of Debt Financing Costs 4 12 Pension Contributions (21) (33)…
Net Working Capital ( in Millions) 12/31/12 12/31/11 Accts. Receivable, Net 566 477 Inventories, Gross 970 778 Less Progress Payments (418) (370) Inventories, Net 552 408 Prepaid Expenses 67 67 Accounts Payable & Accruals (600)…
NWC Advances as % of Gross Inventory (End of Period) Copyright 2011 Change in End User Mix Driving NWC Higher 16
Cash Flow ( in Millions) Twelve Months Ended 12/31/12 12/31/11 Net Cash Provided by Oper.Activities 93 108 Investing Activities (124) (346) Financing Activities 27 (53) Effect of Exchange Rate (1) (2) Net Change in Cash (5)…
Liquidity ( in Millions) 500 Liquidity more than 428 adequate to meet operating 128 375 354 needs 123 Outstanding Letters of 300 250 Credit issued under the 231 revolver 220 125 Additional Letters of Credit and Bank Guarantees…
Net Debt to Capital at End of Period ( in Millions) 65% Total debt 1,051 51% 56% Sr. Sub. Notes - 375 45% 46% Sr. Secured Credit facility 37% 42% - 616 32% 23% Other - 60 20% 9% 14% Net debt 910 11% -3% Net debt to total…
2013 Outlook ( and Shares in Millions, except Bookings & Revenues are in Billions) Executing consistent strategy Copyright 2011 Continued Strength of our End Markets 20
First Quarter 2013 Outlook Continued seasonality in business 1Q operating income averaged 14% of full year over the 2005 to 2012 period (12% excluding 2010) Expect 1Q13 operating income as a % of full year to be consistent with…
A Successful Journey . . . Revenues ( in Billions) 2.7 Achieved significant growth 2.2 2.3 2.3 2.3 2.0 Revenue growth 2005 to 2012 1.7 1.5 1.5 12.4% CAGR 1.2 0.8 Created superior returns for 0.0 2005 2006 2007 2008 2009…
Appendix Copyright 2009
NWC Reconciliation to GAAP ( in Millions) 12/31/2011 12/31/2012 Current Assets 1,150.3 1,356.0 Less: Current Liabilities (932.3) (963.0) GAAP Net Working Capital (NWC) 218.0 393.0 Adjustments: Cash and Cash Equivalents (157.7)…
GAAP Reconciliation - Net Debt to Capital ( in Millions) 31-Dec 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 1,050.8 Less Cash (98.0) (146.8) (206.2) (147.1) (223.2) (420.8)…
GAAP Reconciliation - Net Debt to EBITDA ( in Millions) 2005 2006 2007 2008 2009 2010 2011 2012 Net Income 37.1 78.8 106.7 197.7 210.8 146.7 120.8 179.0 Income Taxes 15.5 58.5 60.9 103.6 101.1 69.0 62.9 92.8 Interest Expense 57.0…
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