Baker Hughes Earnings Conference Call Q4 2014 2015 Baker Hughes Incorporated. All Rights Reserved. 20 January 2015 8:00 am EST 2015 BAKE R HUGH E S INCOR P O R A T E D. ALL RIGHT S RESE R V E D . T ERMS AND CON DIT I O N S OF…
Q4 2014 Earnings Conference Call Introduction Trey Clark Vice President, Investor Relations Financial Performance Kimberly Ross Senior Vice President and Chief Financial Officer Business Outlook Martin Craighead Chairman and…
2014 REVIEW Martin Craighead Chairman and Chief Executive Officer 2015 Baker Hughes Incorporated. All Rights Reserved. 4
2014 Objectives STRATEGIC INITIATIVES Deepwater and unconventional share growth Well production and midstream differentiation FINANCIAL TARGETS Western Hemisphere margins Eastern Hemisphere growth Free cash flow 2015 Baker…
2014 Innovations INNOVATIONS TO EARNINGS 160 new products and services brought to market 5,000 ProductionWave solutions installed FASTrak system deployed in 13 countries SHADOW plug sales grow exponentially 2015 Baker Hughes…
2014 Execution NORTH AMERICA EXECUTION U.S. pressure pumping transformation INTERNATIONAL EXECUTION Contract wins in Brazil, Norway, Angola and the Middle East Reduced working capital exposure in Latin America Record supply chain…
2014 Outcomes INNOVATIONS AND EXECUTION Q4 2014 North America operating profit margins: 15% Q4 2014 Latin America operating profit margin: 20% 2014 Eastern Hemisphere revenue growth versus prior year: 12% 2014 free cash flow: 1.6b…
FINANCIAL PERFORMANCE Kimberly Ross Senior Vice President and Chief Financial Officer 2015 Baker Hughes Incorporated. All Rights Reserved. 9
Q4 2014 Financial Highlights Revenue 6.6 billion Up 6% sequentially Adjusted EBITDA1 1.45 billion Up 22% sequentially Net Income (GAAP) 663 million 1.52 per share Attributable to Baker Hughes 2 Gain on Deconsolidation of Joint…
North America Q4 Results Up 5% Revenue 3.3 billion sequentially 1 Up 108 million Operating PBT 488 million sequentially 1 Up 270 bps Operating PBT Margin 14.8% sequentially Improved pricing and utilization in the U.S.…
International Q4 Results Up 7% Revenue 2.95 billion sequentially Up 170 million 2 1 Operating PBT 545 million sequentially Up 490 bps 2 1 Operating PBT Margin 18.4% sequentially Middle East/Asia Pacific double-digit…
Industrial Services Q4 Results Up 13% Revenue 377 million sequentially 1 Down 12 million Operating PBT 23 million sequentially 1 Down 440 bps Operating PBT Margin 6.1% sequentially New pipeline services group acquired in…
Q4 2014 Cash Flow and Balance Sheet Free Cash Flow1 838 million Cash 1.7 billion 531 million sequential increase Total Debt 4.1 billion 280 million sequential decrease Total Debt-to-Capital Ratio 18% Capital Expenditures…
Q1 2015 Outlook and Assumptions U.S. average rig count expected to decline by 15% compared to Q4 Canada rig count projected to remain relatively flat until spring break-up International rig count anticipated to slowly decline in…
Outlook and Assumptions 2015 Interest Expense Approx. 240 million 2015 Tax Rate 30%-35% Q1 2015 Severance 160-185 Q1 2015 Capital Expenditures Approx. 400 million 2015 Baker Hughes Incorporated. All Rights Reserved. 16
Business Outlook Recent Down Cycles for U.S. Rig Count 2015 Baker Hughes Incorporated. All Rights Reserved. 40-60% drop in U.S. rig count during last three down cycles 17 Source: Baker Hughes Rig Count
Business Outlook Strategy and Purpose remain unchanged Lowering the Optimizing Increasing Enabling safe, cost of well well ultimate affordable energy, construction production recovery improving peoples lives 2015 Baker Hughes…
2015 Baker Hughes Incorporated. All Rights Reserved. 19
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