Howard Weil 41st Energy Conference Roosevelt Hotel in New Orleans March 20, 2013
D-R Strategic Evolution Investing to Accelerate Profitable Growth Time Frame (2010 - 2012) (2013 - 2015) Selling & marketing Market launch and existing products & commercialization of services investments for new Accelerated…
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…
2012 in Review ( in Millions) 2011 2012 Change Outstanding safety Bookings 2,859 3,163 11% performance Revenues 2,312 2,736 18% Earnings & cash flow below expectations Op. Income 259 336 30% Overall bookings per Backlog 2,553 2,946…
DRCs Industry Leading Safety Performance Industry Average DRC 6
Global Supplier of Energy Infrastructure Solutions Revenues: 2012 2.7 billion Bookings: 2012 3.2 billion 2012 Revenue by 2012 Revenue by Business Segment Destination North America Latin America 15% 33% Europe 48% 11% 52%…
We Serve Energy Infrastructure Worldwide Upstream Midstream Downstream Environmental 2012 Bookings 33% 20% 28% 16% Gas pipeline Hydrocracking Biomass (pic Reinjection above) Gas lift transmission Fluid Catalytic Comb. Heat &…
2012 Operating Income vs. Guidance ( in Millions) 2012 Midpoint of guidance range (A) 390 Major changes: PDVSA flare gas engines* (16) PDVSA EPC contract* (6) Middle East sanctions (Iran)* (16) Restructuring expense (5) Other (11)…
Change in End User Mix Driving Higher NWC ( in Millions) 12/31/11 5 Yr. Avg. 12/31//2012 NWC 224 higher vs. 12/31/11 Actual 2007 -2011 Actual Accts Rec. - Net 477 350 566 NOC business: Inventories - Net 408 325 552 Significant portion…
Significant Progress in Technology Platform Extensions Integrated INTEGRATED Supersonic SUPERSONIC Steam Turbines STEAM TURBINE ENGINES NEW PLATFORMS COMPRESSION Compression COMPRESSION Compression Engines New Platforms Separator…
Continued Progress on ICS Development Petrobras P-18 platform 1st ICS award - expected start-up March 2013 Pemex Litoral - 3Q12 award 2 single lift modules using DATUM I compressors / power rating 18 MW each / core building block…
Infrastructure Investments Driving New Unit Bookings Growth ( in Millions) 2012 market size 8 billion Expected annual market 1,700 growth: Oil & Gas 10% 1,360 Environmental Solutions 15% to 20% 1,020 Growth drivers: Population growth…
New Unit Major Oil & Gas Market Opportunities Upstream 130 floating production units next 5 or so years DRC scope of supply: compression and power generation DRC compression opportunity 200,000 per one MMSCFD Midstream Strong demand…
Environmental Solutions - 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…
Worldwide Exclusive License for Small Scale LNG Technology Definitive agreement with Expansion Energy - Proprietary VX CycleTM Dresser-Rand equipment content: Significant existing D-R equipment content Solution greatly enhanced by…
Dependable High Margin Aftermarket Revenues ( in Millions) Market size 15 billion 1,500 10% CAGR 2000 to 2012 Since 05 IPO through 2012: New leadership team Added 25 Service & Support Implemented growth strategy 1,000 Centers…
Infrastructure Investments to Accelerate Growth Saudi Arabia Brazil Largest service center network for our class of equipment in the industry 18
Bookings Outlook ( in Millions) New Units Aftermarket 1,600 to 1,800 1,800 1,800 2,200 to 1,533 2,000 1,358 1,350 1,760 1,630 1,500 1,026 934 1,320 1,210 900 880 727 450 440 0 E 09 10 11 12 0 13…
Revenue and Operating Income Outlook ( in Millions) Revenue Operating Income 3,500 - 3,700 450 - 530* 3,800 540 3,040 2,736 432 2,312 336 2,280 324 259 1,520 216 760 108 0 0 2011 2012 2013E 2011 2012 2013E * Presently bias…
Capital Structure at End of Period ( in Millions) Net Debt to Capital 45% 45% 46% Total debt 1,051 42% 32% Sr. Sub. Notes - 375 20% 20% Sr. Secured Credit facility - 616 14% 11% -3% Other - 60 -5% Net debt 910 05 06…
Major Uses of Cash 2005 to 2012 ( in Millions) 750 725 569 500 428 320 250 0 Share Acquisitions Debt Capital Exp. & Dividends Repurchase Repayment Investments (Future Consideration) Free cash flow used to increase…
A Successful Journey . . . Revenues ( in Billions) Achieved significant growth 2.7 2.2 2.3 2.3 2005 to 2012 2.3 2.0 1.5 1.7 Revenues 12.4% CAGR 1.5 1.2 Operating Income 16.4% CAGR 0.8 Created superior returns for 0.0…
Appendix
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) The Companys management views net debt, a non-GAAP financial measure, to be a useful measure of a companys ability to reduce debt, add to cash balances, pay dividends,…
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