Dresser-Rand Group Inc. (NYSE: DRC) Dresser- Fourth Quarter 2009 Conference Call February 26, 2010 Copyright 2009
2009 was an Outstanding Year Records set for sales, operating income, net income and worldwide safety performance Sales increased 4 percent to 2.3 billion Operating income increased 3 percent to 349 million EPS increased 9% A safety…
Bookings December YTD ( in Millions) 2,600 2009 Total Bookings 34% 2,523 lower than 2008 2,080 2009 bookings by market: 1,560 1,662 Upstream 26% Midstream 15% 1,040 Downstream 47% 520 Other 12% 0 2008 2009 Copyright…
New Unit Bookings December YTD ( in Millions) 1,500 1,429 2009 New Unit Bookings 49% lower than 2008 1,000 4Q09 New Unit Bookings 727 of 370: 4th Quarter 11.1% lower vs. 4Q08 500 12 higher than the total 1st 9 Months bookings…
Major 4Q09 New Unit Bookings SBM / Noble Energy FPSO Destined for the Aseng Field offshore Equatorial Guinea Compression and power generation equipment Strategic alliance with Samsung Techwin packaging the equipment in South Korea…
Aftermarket Bookings December YTD ( in Millions) 1,094 1,100 83 2009 160 or 15% lower vs. 934 38 year ago 25 880 Reduction in orders from one NOC (58) 660 Unfavorable foreign exchange impact (38) 973 440 910 Full year…
Backlog by Segment ( in Millions) Backlog of 1.7 billion was 2,252 2,300 24% lower than 12/08 421 1,840 1,712 New unit backlog down 25% 341 vs. last year 1,380 900 million scheduled to 920 1,831 ship in 2010 1,371 Aftermarket…
Compressor Renewal Services, Ltd. Highly regarded provider of aftermarket services to the gas transmission industry Strengthens engine service capabilities A key piece of strategy to enhance our North American midstream…
Leading Edge Turbine Technologies Specializes in the repair of industrial gas turbine and large utility steam turbine equipment Strengthens capabilities to provide service to the power generation sector. Expect to achieve…
Sales by Segment ( in Millions) 746 750 299 Total sales down 25% 600 563 New Unit sales down 36% 278 450 447 Aftermarket sales down 7% 300 285 150 0 4Q08 4Q09 Copyright 2009 New Units Aftermarket 11
Fourth Quarter 2009 Results ( in Millions) 4Q09 4Q08 Sales 562.5 745.8 Operating Income 82.7 132.3 - Pension Adjustment 4.9 0.0 Adjusted Operating Income 87.6 132.3 - Adusted Margin % 15.6% 17.7% Interest Expense - net (8.2)…
New Unit Operating Income & Margins ( in Millions) 70 14.4% 59.2 4Q09 margin 56 14.0% improvement primarily 14.0% attributable to cost and 39.8 productivity 42 improvements 13.6% 28 Pension charge reduced 13.2% 4Q09 margin by…
Aftermarket Operating Income & Margins ( in Millions) 100 92.1 35% 4Q09 decrease primarily 30% due to higher allocation of 30.8% overhead costs 75 68.0 25% 24.5% Pension charge reduced 20% 4Q09 margin by 80 basis 50 15%…
Operating Cash Flow ( in Millions) Twelve Months Ended 12/31/09 12/31/08 Net Income 211 198 D&A 51 49 Stock-based Compensation 11 6 Curtail. Amendment / Partial Settlement (0) (12) Amort. of Debt Financing Costs 3 3 Deferred Income…
Net Working Capital ( in Millions) 12/31/09 12/31/08 Accts. Receivable, Net 290 366 Inventories, Gross 618 638 Less Progress Payments (265) (310) Inventories, Net 353 328 Prepaid Expenses 25 43 Accounts Payable & Accruals (412)…
Cash Flow ( in Millions) Twelve Months Ended 12/31/09 12/31/08 Net Cash Provided by Oper.Activities 130 235 Investing Activities (63) (136) Financing Activities 2 (149) Effect of Exchange Rate 7 (9) Net Change in Cash 76…
Liquidity ( in Millions) 600 555 Liquidity more than adequate 223 to meet operating needs 400 376 Outstanding Letters of Credit 147 167.8 332 200 229 Additional Letters of Credit and Bank Guarantees 86 vs. 13 at the end of…
Capital Structure Net Debt to Capital 60% Strong balance sheet 56% 40% 45% Net debt to total capital 11% 32% 20% 20% Total debt 370 (7 3/8% Notes) 14% 11% 0% At 12/31: '04 '05 '06 '07 '08 '09 Matures 2014 Net Debt to…
Announced 200 Million Share Repurchase Program Board of directors authorized the repurchase of up to 200 million of the Companys common stock Approximately 8 percent of outstanding shares Reflects confidence in the continued growth…
2010 New Units Outlook Recovery in New Unit market appears underway New unit backlog at 12/31/09 = 1.4 billion Backlog scheduled to ship in 2010 = 940 million Revenues between 800 million to 1.0 billion Flexible manufacturing…
2010 Aftermarket Outlook ( in Millions) 1,100 High Book / Ship 1,200 (mid-point) Short cycle time CAGR 10% High of transactions 900 Revenues between 1.0 and Sales 1.2 billion Market recovery 600 Local presence new 475 service…
2010 Summary ( and Shares in Millions) New Units Revenue 800 to 1,000 Aftermarket Revenue 1,000 to 1,200 Operating Income 260 to 300 - Unallocated Expenses 80 to 85 Interest Expense 30 to 35 Effective Tax Rate 35% Diluted…
Appendix Copyright 2009
Net Income ( in Millions) 4Q09 4Q08 GAAP Net Income 41.4 77.0 Adjustments: - UK Pension Charge 3.1 0.0 - Venezuela Foreign Exchange Loss 5.6 0.0 Adjusted Non-GAAP Net Income 50.1 77.0 GAAP Diluted EPS 0.50 0.94 Adjusted…
Diluted EPS 4Q09 4Q08 GAAP Diluted EPS 0.50 0.94 Adjustments to (from) Net Income - UK Pension Charge 0.04 0.00 - Venezuela Foreign Exchange Loss 0.07 0.00 Adjusted Non-GAAP EPS 0.61 0.94 Copyright 2009 26
Operating Income ( in Millions) 4Q09 4Q08 GAAP Operating Income 82.7 132.3 Adjustments: - UK Pension Charge 4.9 0.0 Adjusted Non-GAAP Operating Income 87.6 132.3 Copyright 2009 27
Operating Income Margin ( in Millions) 4Q09 4Q08 GAAP Operating Income Margin 14.7% 17.7% Adjustments: - UK Pension Charge 0.9% 0.0% Adjusted Non-GAAP OI Margin 15.6% 17.7% Sales as a percent of total: New Units 50.6% 60.0%…
NWC Reconciliation to GAAP ( in Millions) 2009 2008 Current Assets 936.3 907.8 Less: Current Liabilities (585.4) (736.3) GAAP Net Working Capital (NWC) 350.9 171.5 Adjustments: Cash and Cash Equivalents (223.2) (147.1) Deferred…
Net Debt Reconciliation to GAAP ( in Millions) At 12/31 2009 2008 Total Debt 370 370 Less Cash (223) (147) Net Debt 147 223 Copyright 2009 30
Net Debt to GAAP EBITDA ( in Millions) At 12/31 2009 2008 GAAP EBITDA 395 380 Total Debt 370 370 Less Cash (223) (147) Net Debt 147 223 Net Debt to EBITDA 0.4 0.6 Copyright 2009 31
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