CL Kings 10th Annual Best Ideas Conference Dresser-Rand Group Inc. September 13, 2012
Global Supplier of Energy Infrastructure Solutions 2011 revenues 2.3 billion from energy infrastructure and oil field spending on new equipment and aftermarket parts and services Over 75 sales offices, 49 service and support centers…
We Serve Energy Infrastructure Worldwide Upstream Midstream Downstream Environmental 12 Months Ended 6/30/12 38% 15% 27% 16% 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 2011 market size 8 billion ( in Millions) Expected annual market 2,000 growth: Oil & Gas 10% 1,500 Environmental Solutions 15% to 20% Growth drivers: 1,000 Population…
Floating Production Opportunities 130 Projects Over 5 Years ( 25,000 MMSCFD in aggregate) Recent Awards: North Sea Petrobras 8 FPSOs 700MM Fixed platform (Angola) 150MM North America 9 Projects including Europe 16 Projects…
Excelerate Floating LNG 4 million ton per year floating liquefaction facility Excelerate selected the Black & Veatch PRICO liquefaction system Black & Veatch has declared its intent to utilize Dresser-Rand centrifugal compressors…
Refining Opportunities to 2016 Planned Oil Refinery South & Central America 1.6 Market Regional Refinery Capacity Addition, MMBPD, 2011-2016 North America 0.3 Middle East & Africa 5.6 Europe 0.6 Asia Pacific 4.2 0.0 1.0…
Low N. A. Natural Gas Prices Good for DRC Fertilizer plants Gas-liquids based petrochemical facilities Converting LNG receiving terminals into liquefaction facilities to export LNG Hydrotreaters / hydrocrackers use compressors and…
Environmental Segment - CAES Opportunities Dresser-Rand 20 years of successful Compressed Air Energy Storage (CAES) Only operating installation in North America Extensive renewable deployment Wind & solar - primary reason 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 2.5 20 2.0 15 1.5 10 1.0 0.5 5 0.0…
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 15
Capital Structure at End of Period ( in Millions) Net Debt to Capital 45% Total debt 1,107 45% 46%46% 32% 6.5% Notes 375 due 2021 20% 20% Term Loan - 298 14% Revolver - 291 11% -3% -5% Other - 143 05 06 07 08…
2012 Bookings Outlook ( in Millions) New Units Aftermarket 2,000 1,700 - 1,900 1,800 1,400 - 1,600 1,500 1,358 1,500 1,350 1,210 1,026 934 1,000 900 727 500 450 0 0 2009 2010 2011 2012 2009 2010 2011 2012 Capitalizing…
2012 Revenue and Operating Income Outlook ( in Millions) Revenue Operating Income 23%Y-O-Y Growth 2,800 - 2,900 3,000 500 52%Y-O-Y Growth 360 - 420 2,312 375 2,000 257 250 1,000 125 0 0 2011 2012E 2011 2012E…
Summary Top Line Growth Traditional Mkts Environmental Mkts Strategic Initiatives Key R & D Programs Amplified Shareholder Value Continued Internal Investments Strategic Acquisitions Share Repurchases Earning Growth & Free…
Appendix
GAAP Reconciliation - Net Debt to Capital ( in Millions) 31-Dec 30-Jun 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 1,107.2 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 6/30/12 Net Income 37.1 78.8 106.7 197.7 210.8 146.7 120.8 166.7 Income Taxes 15.5 58.5 60.9 103.6 101.1 69.0 62.9 86.8 Interest Expense…
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