The Global Alternative 2015 Barclays CEO Energy-Power Conference September 2015 2015 Tesco Corporation. All rights reserved.
Tesco at a Glance Diversified and Right-sized for Current Market REVENUE (M) TTM Q2 15 by Segment NASDAQ: TESO Total: 442 Tubular Headquartered in Houston, Texas Services 183 TD Sales 107 TD AMSS TD Rentals Stock Price: 8.16…
Investment Highlights Well Positioned for Prolonged Downturn and Market Recovery Strategy is succeeding Strong balance sheet Focus on cash generation Geographically diversified Rig upgrade opportunity 2015 Tesco…
Market Outlook The Downturn is Accelerating Technology Adoption Preparing for protracted downturn Targeting key markets Focused on cost reductions & process efficiency Accelerating technology adoption 2015 Tesco…
Addressing the Downturn Rationalization to Preserve and Generate Cash Headcount, wage, benefit reductions Streamlining geographic footprint Operating expenses & CAPEX reductions Customizing the value proposition Working…
Relative Performance Superior Decrementals VS Revenue Loss Decremental EBITDA v Revenue Change- Q3 14 vs. Q2 15 YTD Avg 100% FI 90% 80% 70% Decremental EBITDA I% FTK GLF IO 60% CLB CRR PKD HP 50% HOS SPN HAL PES…
Strategy Summary Expansion Driven by Leverage and Technology Initiative Prior Strategy Current Strategy Product Top Drive Centric Full Pipe Handling Sales AMSS Tesco Centric Addition of 3rd Party (all Pipe Handling…
Strategy Implementation Advancing the Strategy Despite Market Conditions PRODUCTS TUBULAR SERVICES PRODUCT SALES AMSS RENTALS Increased offshore Expansion of pipe 3rd Party TD Rationalizing our Market share handling offerings:…
Offshore Tubular Services Offshore Tubular Services Continues to Gain Traction Growing in: GOM (US & Mexico), Tesco TS Offshore Revenue VS Rig Count Malaysia and North Sea 11.0 140 135 BHI Tesco Key Markets Offshore Rig Count…
Driving the Evolution Conventional Methods are Unsafe, Inefficient and Unsustainable Labor & equipment intensive Unsafe and inconsistent Allows for excessive market fragmentation Pipe handling automation is the answer…
Evolution Offering The Tesco Proposition 2015 Tesco Corporation. All rights reserved. 12
Drill Pipe Automation Automating Drill-Pipe Handling Labor & equipment intensive Unsafe and inconsistent Rig floor mechanization is the answer New market channel for Tesco 2015 Tesco Corporation. All rights reserved. 13
Connected Automation Automating the Full Cycle on Every Rig 2015 Tesco Corporation. All rights reserved. 14
Conclusion Tesco IS the Drilling Innovation Company Addressing the downturn Balance sheet provides flexibility Strategy is happening Healthy R&D pipeline 2015 Tesco Corporation. All rights reserved. 15
The Global Alternative 2015 Tesco Corporation. All rights reserved.
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