Investor Relations Second Quarter 2020 2020 COPYRIGHT DISTRIBUTIONNOW
Disclosure Statement Statements made in the course of this presentation that state the Company's or management's intentions, hopes, beliefs, expectations or predictions of the future are forward-looking statements. It is important to…
Vision DistributionNOW will be recognized as the market Leader in Supply Chain Management through superior customer service by leveraging the strengths of our employees, processes, suppliers, technology and information. 3 Second…
Second Quarter Investment Highlights Management focused on preserving cash position and enviable balance sheet with aggressive structural transformation Focused on profitable market share gains and end markets that align with our…
DNOW Strategy to Unlock Value Product margins holding firm, gross margins impacted Structural change towards a more centralized fulfillment model with smaller unfavorably by inventory write downs branches and reduced personnel and…
2Q20 Key Market Indicators WTI/Rig Counts U.S. DUCs U.S. Completions WTI avg 28 per barrel for 2Q20 June ended with a DUC count of 7,659 June ended with 291 U.S. avg rig count of 396, down 50% wells in EIA DPR regions 492 avg for…
2Q20 Highlights U.S. Channels U.S. Energy Centers U.S. Supply Chain Services U.S. Process Solutions 2Q Highlights 2Q Highlights 2Q Highlights Revenue down 40% sequentially, Revenue down 52% sequentially, Revenue down 30% as avg with…
2Q20 Highlights Canada & International Canada International 2Q Highlights 2Q Highlights Revenue of 41M, sequential decrease of Revenue 69M, down 19% sequentially, due to 37M or 47% impacts of COVID-19 resulting in lower economic…
Technology Investments for Reduced IT Service Costs and to Boost Productivity Order Management System (OMS) user interface enhancement to our current ERP. Project completed Targeted Improvements and begun phased roll out. Benefits…
Ecommerce Channel Continues to Expand Ecommerce platform continues to grow Customer implementations year to date (July) have surpassed the total number of implementations performed in 2019 Almost half of the implementations this…
Driving Supply Chain Innovation through Speed, Efficiency and Technology 2019 Revenue by Segment Legacy 150+ years operating Support major land and offshore operations for all 13% 11% the key energy producing regions around the…
Comprehensive Product Offering and Balanced Revenue Mix DNOW carries a Valves Pipe 21% broad range of 16% products and services Fittings and Flanges to meet 18% RAPID and CRITICAL deliveries to customers in local and Drilling…
Global Presence and Reach (blue) Company Locations Locations and Reach NORWAY UK RUSSIA Distribution Centers Aberdeen CANADA Edmonton Estevan Beulah NETHERLANDS KAZAKHSTAN Distribution Casper Centers: AZERBAIJAN USA CHINA…
Blue-Chip Suppliers and Customers Across the Globe Thousands of Suppliers in 40 countries Supporting Customer Operations in 80 countries Drilling Contractors Exploration & Production Midstream Downstream & Industrial…
DNOW is a Critical Link from Drilling to Distribution Upstream Midstream Downstream/ Industrial 15 Second Quarter 2020 2020 COPYRIGHT DISTRIBUTIONNOW
Providing Value-Add Solutions Across All Channels ENERGY CENTERS U.S. SUPPLY CHAIN U.S. PROCESS SOLUTIONS Global branch network model On-site model offering customizable Rotating and process equipment supplying products locally to…
Driving Growth through Acquisitions - Seek high value-add solutions that bring sustainable competitive advantages Clearly Defined - Leverage product lines acquired through acquisitions to gain organic share Acquisition - Utilize strong…
Pipe Price Trends, U.S. dollar per ton ERW Seamless 2,000 3,000 1,800 2,500 1,600 1,400 2,000 1,200 1,000 1,500 800 1,000 600 400 500 200 - - ERW Domestic ERW Foreign Smls Domestic Smls Foreign Source: Pipe…
Financial Update 2020 COPYRIGHT DISTRIBUTIONNOW
CFO Highlights: Selected Quarterly Results (Unaudited) Revenue Gross Profit and Margin % ( in millions) ( in millions) 19.7% 19.4% 776 18.4% 604 153 370 117 68 2Q19 1Q20 2Q20 2Q19 1Q20 2Q20 EBITDA Excl. Other Costs…
Cash Generation & Working Capital Management Free Cash Flow Working Capital Excluding Cash ( in millions) ( in millions) 66 66 23.7% 647 20.8% 17.9% 433 351 3 2Q19 1Q20 2Q20 2Q19 1Q20 2Q20 Free Cash Flow (FCF) is…
YOY Revenue and Operating Profit (Loss) ( in millions) Unaudited 2Q19 2Q20 Revenue: United States 605 260 Canada 74 41 International 97 69 Total revenue 776 370 Operating profit (loss): United States 16 (24) Canada 1 (5)…
Structural Transformation Warehousing, selling & Headcount reductions approximate 1,750 to date administrative (WSA) expense trends since year end ( in millions) 700 638 Implementing consolidation measures 650 619 Revenue grew…
Liquidity and Capital Resources Entered into a five-year 750 million Total Liquidity at June 30, 2020 secured asset based lending facility (ABL) in ( in millions) April 2018. No financial maintenance covenants 525 256 Fixed…
Select Balance Sheet Metrics 2Q20 ( in millions) Comments ( in millions) Cash and cash equivalents 269 Receivables, net 242 60 DSOs Inventories, net 370 3.3 Turn rates Accounts payable 166 50 DPOs Long-term debt No outstanding…
Environmental, Social & Governance 2020 COPYRIGHT DISTRIBUTIONNOW
ESG Response to COVID-19 Remained connected to our customers communicating impacts on product availability and accessibility, as DNOW designated as an essential business Corporate COVID-19 response team coordinating policies and…
Environmental We are committed to working to minimize our impact on the environment through energy management conservation initiatives, air quality improvements, responsible water conservation and recycling where applicable Energy…
Social - Employee and Industry Engagement Employee Employee Industry Development Engagement Engagement Talent Management Employee surveys Support and funding of College Rotational Program Executive leadership video industry related…
Social Social Responsibility Community Engagement We engage and support many organizations and groups in the communities where we operate globally. 32 Second Quarter 2020 2020 COPYRIGHT DISTRIBUTIONNOW
Governance We are committed to and recognize the importance of good corporate governance and high ethical standards. DistributionNOWs Code of Business Conduct and Ethical Standards enhances our relationships with key stakeholders,…
Appendix 34 2020 COPYRIGHT DISTRIBUTIONNOW
Example Tank Battery Installation Does not include utilities Water Transfer Skid Water Disposal Skid Vapor Recovery Unit (VRU) LACT Gas Meter ASME Bulk Separator ASME Separators ASME Heater Treaters Pipe, Valves, &…
Timing and Materiality from Drilling to Tank Battery Install Drilling Frac Tank Battery Revenue* 4,000-5,000 per week Minimal 250,000-2 million Time* 60-90 days 45-60 days 45-60 days Customer Drilling Contractors Service…
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