Dresser--Rand Dresser 1Q09 Conference Call April 30, 2009 Copyright 2009
Outstanding First Quarter 2009 Performance Revenues + 40% Operating income + 65% (with adjustments for a plan settlement charge / curtailment amendment income) Aftermarket bookings of 246 million + 4%. New Unit bookings - 109…
Strategic Alliance with Saudi Aramco Strategic Corporate Purchasing Agreement (CPA) signed March 17 Consistent with strategic focus on NOCs Building strong local presence in Middle East markets Structural and organizational…
Dresser--Rand Arabia Dresser New facility as a center of excellence for manufacturing, repairs, service, technical expertise and training Joint venture with Al-Rushaid Petroleum Investment Company of Saudi Arabia Joint research and…
LTM Bookings by Segment ( in Millions) LTM bookings through 3/31/09: 2,700 2,345 2,303 2% lower than 3/31/08 1,899 919 1,103 21% higher than 3/31/07 1,800 827 New unit bookings down 16% 1,426 Aftermarket bookings up 20% 900…
Backlog by Segment ( in Millions) 2,250 Backlog of 2.1 billion 2,122 2% lower than 1Q08 2,087 1,780 1,500 1,663 51% higher than 1Q07 1,381 New unit backlog down 7% 1,104 750 vs. last year Aftermarket backlog up 24% 277 342…
First Quarter 2009 Results ( in Millions) 1Q09 1Q08 Change Sales 508.9 363.8 40% Operating Income 64.2 46.9 37% - Settlement / (Curtail. Amend.) 1.3 (7.2) Adjusted Operating Income 65.5 39.7 65% - Adjusted Margin % 12.9% 10.9%…
Sales by Segment ( in Millions) 525 509 Total sales increased 40% 231 420 compared to 1Q08 364 314 New Unit sales increased 315 214 200 85% 278 210 Aftermarket sales 150 increased 8% 105 114 0 1Q07 1Q08 1Q09 New Units…
Operating Income ( in Millions) 1Q07 1Q08 1Q09 Operating Income 33.0 46.9 64.2 (Curtail. Income) / Settlement Charge 0.0 (7.2) 1.3 Service Units 3.4 0.0 0.0 Litigation Provision 1.3 0.0 0.0 Adjusted Operating Income 37.7 39.7 65.5…
New Unit Operating Margins 10% Improved 290 basis points to 9.1% 9.1% from 1Q08 of 6.2% 8% Benefited from better leverage of 6% fixed overhead from higher 6.2% volumes 5.6% 4% Proforma 1Q07 adjusted for: 4.0% Maersk…
Aftermarket Operating Margins 26% Increased 230 basis points to 25.6% 25.6% 24.1% 25.6% from 1Q08 of 23.3% 23.3% 21% Benefited from better leverage of fixed overhead from higher 16% volumes 10% Pro forma 1Q07 adjusted for:…
Liquidity ( in Millions) 496 500 259 395 400 352 160 200 300 200 237 235 152 100 0 Mar. 07 Mar. 08 Mar. 09 Copyright 2009 Revolver Cash 13
1Q Operating Cash Flow ( in Millions) 1Q09 1Q08 Net Income 34.5 27.2 D&A 12.3 12.4 Settlement / Curtailment Amendment (0.2) (7.2) Working Capital (3.8) 26.2 Pension Contributions (27.8) (1.8) Other 8.4 (3.0) Net Provided…
1Q Cash Flow ( in Millions) 1Q09 1Q08 Net Cash Provided by Operating Activities 23.4 53.8 Investing Activities (6.0) (5.8) Financing Activities (0.1) (0.1) Effect of Exchange Rate (4.4) 4.7 Net Change in Cash 12.9 52.6…
Capital Structure Net Debt to Capital 60% Strong balance sheet 56% 40% 45% Net debt to total capital 18% 32% 20% 20% 18% Total debt 370 (7 3/8% Notes) 14% 0% Matures 2014 Dec. 04 Dec. 05 Dec. 06 Dec. 07 Dec. 08…
2009 Operating Income Guidance ( in Millions) 2008 2008 2009 Guidance Range Actual Pro Forma 400 (1/31/09 Exch. Rate) 360 338 310 - 315 320 300 200 100 0 Basis of 2009 estimate 1/31/09 exchange rate (EURO to US =…
Current Market Conditions Market for new units remains sluggish Believe client delays in placing orders are temporary Steady flow of inquiries Continue to expect new unit bookings for the full year to be in the range of 700…
Present Strategy Established in 2001 Flexible manufacturing structure Fixed internal capacity for units at lowest reasonable expected level Flex capacity through outsourcing and subcontracting Institutionalize value selling on New…
Flexible Manufacturing Model Highly absorbed internally at cycle bottoms Able to flex capacity to meet cycle peaks ( in Millions) Change 2001 2008 08 vs. '01 Sales 877 2,195 2 1/2 X Operating Income 21 338 16 X - % of Sales 2.4%…
Contingency Plans Already In Place Flex manufacturing structure as necessary Reinforce operational excellence initiatives Accelerate product development activity Sensitivity plans for various levels of bookings No Need for…
Summary DRC Business Model Characteristics: Steady high margin Aftermarket Flexible manufacturing model Results: Ability to meet significant New Unit demand swings with minimal disruption Good performance even in down…
Labor Update Painted Post Good productivity and quality Misrepresentation by local union representative Two year old offer changed to extend term to 2013, update economics and increase operating flexibility Negotiations on-going…
Appendix 24 Copyright 2005 Copyright 2009
EPS 1Q09 1Q08 GAAP EPS 0.42 0.32 Adjustments to (from) Net Income - Settlement / (Curtailment Amendment) 0.01 (0.06) Adjusted Non-GAAP EPS 0.43 0.26 Copyright 2009 25
Net Income Excluding Unusual Items ( in Millions) 1Q09 1Q08 Net Income 34.5 27.2 Settlement / (Curtailment Amendment) 0.8 (4.7) Net Income Excluding Unusual Items 35.3 22.5 Copyright 2009 26
Adjusted EBITDA Reconciliation to GAAP ( in Millions) 1Q09 1Q08 Net Income 34.5 27.2 Interest Expense - net 7.0 7.0 Depreciation & Amortization 12.3 12.4 Income Tax Expense 18.4 14.5 EBITDA 72.2 61.1 Adjustments: Settlerment /…
Net Debt Reconciliation to GAAP ( in Millions) At 3/31 2009 2008 2007 Total Debt 370.2 370.4 456.5 Less Cash (160.0) (258.8) (200.1) Net Debt 210.2 111.6 256.4 Copyright 2009 28
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