Company Update The Global Alternative November 2014 2014 Tesco Corporation. All rights reserved.
TESCO At A Glance NASDAQ: TESO REVENUE (M) TTM Q3 14 Headquartered in Houston, Texas Total: 545 Stock Price: 16.06 (as of 11/09/14) Tubular Services Market Capitalization: 643 million 225 TD Sales 142 TD AMSS 2,000+ employees…
International Diversity 60%+ of Revenue from outside North America International business units growing faster than North America Existing infrastructure provides strong operating leverage at low incremental expansion cost…
Current Business Platform Two core businesses, one platform, significant synergies TOP DRIVE TUBULAR SERVICES PRODUCT SALES AMSS RENTALS Top Drives Casing Running Catwalks Top Drives Top Drives 2014 Tesco Corporation.…
Why Own TESCO Investment drivers Highly differentiated with strong R&D pipeline Global infrastructure in place Platform ready for expansion from bolton acquisitions Focused strategic expansion of tubular services Strong…
Strategic Objectives Focused on total shareholder return Cash Generation Generate free cash flow to invest in business first Return excess cash to shareholders Profitable Growth Leverage current infrastructure Increased…
Targeted Business Platform Two core businesses; four strategy implementations; one global platform PRODUCTS TUBULAR SERVICES PRODUCT SALES AMSS RENTALS Broad TS Offering Full Pipe Handling Top Drives Catwalks Increased…
Tubular Services Strategy Drivers Improve profitability by Drive higher revenue per job leveraging existing infrastructure Double offshore revenue from 15% Critical mass in markets where we to 30% work Evolution from casing…
Tubular Services Execution Plan Driving revenue per job Offshore Grow organically; take proven performance from current Offering GOM and Asia Pacific operations to expand globally Automation technology and industryleading…
Top Drive Strategy Drivers Improve profitability by Drive higher revenue per rig leveraging existing infrastructure Higher shop utilization from servicing third party products Additional rig mechanization products through R&D…
Top Drive Execution Plan Leverage our unique market position for customized service and product excellence Expanded Leverage our manufacturing capacity by adding additional Product rig mechanization products Portfolio Expanded…
Financial Targets by 2018 Targeting first quartile shareholder returns Tubular Other Balance Top Drive Services Costs Sheet Revenue Revenue R&D spend from 1.5% to ROCE from 10% growth 20% per growth 10% per 2.0% of revenue…
Balanced Reinvestment Strategy Strong free cash flow generation is key to the strategy 250 million in capital spending, primarily 250 million in bolton for Tubular acquisitions Services Approximately 650 expansion million…
The Global Alternative 2014 Tesco Corporation. All rights reserved.