Dresser-Rand Group Inc. Barclays CEO Energy - Power Conference September 11, 2013
D-R Strategic Evolution Investing to Accelerate Profitable Growth Time Frame (2010 - 2013) (2014 - 2015) Selling & marketing Market launch and existing products & commercialization of services investments for new Accelerated…
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%…
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…
Continued Progress on ICS Development Petrobras P-18 platform 1st ICS award - successful start-up March 2013 Pemex Litoral - 3Q12 award 2 single lift modules using DATUM I compressors / power rating 18 MW each / core building block…
New Units Market Traditional markets for new units expected to grow at 7% Served Industry Market: 22.0 Billion 2.5 Billion 12.0 Billion Traditional O&G + Traditional Traditional Technology Oil & Gas Oil & Gas Investments (1) +…
Historical New Unit Bookings ( in Millions) 1,700 Growth drivers: Population growth 1,360 Economic growth Energy demand 1,020 growth Market expansion into 680 new space Initiatives: 340 Value selling Localization 0…
Infrastructure Investments Driving New Unit Bookings Growth Upstream Midstream Downstream Environmental Strong demand Refining 10 CAES 110 floating for gas Biomass million bpd of production units transmission in Comb. Heat…
Apex CAES - 200 Million Project Award Dresser-Rand over 20 years of successful Compressed Air Energy Storage (CAES) Only operating installation in North America Apex 317 MW facility to be constructed in Texas Validation that CAES…
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 Centers 1,000 Acquired…
Infrastructure Investments to Accelerate Growth Saudi Arabia Brazil Largest service center network for our class of equipment in the industry 13
Business Model Designed to Support Strong Financial Performance in Both Up & Down Cycles Strong Financial Performance Result: Significant Free Cash Flow Revenues Operating Income % of Sales Free Cash Flow Cumulative FCF 3.0 20 2.5 15…
Net Working Capital Components (At End of Period) 16% 15.3% 100% 14% 90% Advances from Customers % of Gross Inventory Solar Park 80% 12% 11.1% POC 70% NWC % of Revenue 10% NOC Traditional Business 60% 8% Total…
Capital Structure at End of Period ( in Millions) Net Debt to Capital 65% Total debt 1,167 56% 51% 45% 46% Sr. Sub. Notes - 375 42% 43% 37% 32% Sr. Secured Credit 23% 14% 20% facility - 738 9% 11% -5% -3% Other - 54…
New Unit Bookings Moving to the Right 2012 (Q4) 2013 2014+ 1H13 2H13 4 upstream projects 150 13 upstream projects 800 Fundamentals do not appear to have changed and activity continues to be high 17
Bookings Outlook ( in Millions) New Units Aftermarket 1,600 1,500 to to 1,800 1,800 1,630 1,700 1,533 1,500 1,358 1,350 1,210 1,026 934 900 727 450 0 09 10 11 12 E 13 20 20 20 20 20 18
Revenue and Operating Income Outlook ( in Millions) Revenue Operating Income 3,800 3,400 - 3,600 475 430 - 450 3,040 2,736 380 336 2,312 2,280 285 259 1,520 190 760 95 0 0 2011 2012 2013E 2011 2012 2013E Continued revenue &…
DRC Major Priorities Top line growth primarily through exploiting expanded market opportunities Commercialization of new technologies in traditional markets (ICS, subsea) Rapid entry into emerging markets (small scale LNG) Entry into…
Appendix
NWC Reconciliation to GAAP ( in Millions) 12/31/2012 6/30/2013 Current Assets 1,356.0 1,491.2 Less: Current Liabilities (963.0) (891.4) GAAP Net Working Capital (NWC) 393.0 599.8 Adjustments: Cash and Cash Equivalents (140.4)…
GAAP Reconciliation - Net Debt to Capital ( in Millions) December 31, 30-Jun 2005 2006 2007 2008 2009 2010 2011 2012 2013 Total Debt 598.2 505.6 370.3 370.1 370.0 370.0 1,027.1 1,050.8 1,166.7 Less Cash (98.0) (146.8) (206.2)…
GAAP Reconciliation - Net Debt to EBITDA ( in Millions) Twelve Months Ended 2005 2006 2007 2008 2009 2010 2011 2012 2Q13 Net Income 37.1 78.8 106.7 197.7 210.8 146.7 120.3 179.0 207.6 Income Taxes 15.5 58.5 60.9 103.6 101.1 69.0…
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