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Keybanc Industrials Conference – Parker Drilling Co.

Parker Drilling Co. · May 28, 2014 · 43 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. Keybanc Industrials Conference – Parker Drilling Co. – slide 1
    The Global Leader in Motion and Control Technologies Keybanc Industrials Conference Boston, MA Jon P. Marten EVP Finance & Administration and CFO May 28 & 29, 2014
  2. Keybanc Industrials Conference – Parker Drilling Co. – slide 2
    Parker at a Glance The Global Leader in Motion and Control Technologies (NYSE:PH) Centrally Led, Decentralized Company Broad Market Exposure 13 Billion in Sales 58,000 Employees 3
  3. Keybanc Industrials Conference – Parker Drilling Co. – slide 3
    Why Invest in Parker Winning Culture & Values Strong Competitive Advantages Clear Strategy and Goals Consistent Execution and Performance Opportunities for Growth 4
  4. Keybanc Industrials Conference – Parker Drilling Co. – slide 4
    Parkers Culture & Values The Foundation of Our Success Our success is founded on fair dealing, hard work, coordination of effort and quality of products. - Arthur L. Parker Founder Winning Culture Passionate People Valued…
  5. Keybanc Industrials Conference – Parker Drilling Co. – slide 5
    Why Invest in Parker Winning Culture & Values Strong Competitive Advantages Clear Strategy and Goals Consistent Execution and Performance Opportunities for Growth 6
  6. Keybanc Industrials Conference – Parker Drilling Co. – slide 6
    1 Position in Motion & Control Industry Ample Opportunity for Growth in a 120 Billion Global Market Top All Other Competitors 7
  7. Keybanc Industrials Conference – Parker Drilling Co. – slide 7
    The Broadest Technology Platform Yields Higher Market Share and Margins Motion Systems Hydraulics Pneumatics Electromechanical Flow & Process Control Fluid & Gas Handling Process Control Climate Control Filtration &…
  8. Keybanc Industrials Conference – Parker Drilling Co. – slide 8
    Solving the Worlds Greatest Engineering Challenges Our focus on solving some of the worlds greatest engineering challenges sparks our passion for innovation and secures future growth. Food Water Energy Transportation Defense…
  9. Keybanc Industrials Conference – Parker Drilling Co. – slide 9
    Balanced Globally Benefit from Growth Anywhere in the World Reporting Segments Global Technology Platforms Aerospace Aerospace Systems Systems Motion 17% 17% Systems Diversified 30% Industrial North America Filtration & 43%…
  10. Keybanc Industrials Conference – Parker Drilling Co. – slide 10
    Powerful Aftermarket Exposure Half of Industrial Sales from High Margin Channel Parker Distributors Close to the Customer Independent Partners 50% 50% Technical Expertise OEM Aftermarket Value Added Services ParkerStores…
  11. Keybanc Industrials Conference – Parker Drilling Co. – slide 11
    Why Invest in Parker Winning Culture & Values Strong Competitive Advantages Clear Strategy and Goals Consistent Execution and Performance Opportunities for Growth 12
  12. Keybanc Industrials Conference – Parker Drilling Co. – slide 12
    Clear Vision and Goals Vision Vision The 1 Motion & Control Company 1 Premier Customer Service Goals Financial Performance Profitable Growth 13
  13. Keybanc Industrials Conference – Parker Drilling Co. – slide 13
    The Win Strategy 58,000 Employees All on the Same Page 14
  14. Keybanc Industrials Conference – Parker Drilling Co. – slide 14
    Our Measures of Success The Premier Diversified Industrial 20% Market Share +3% Since 2005 12% Sales Growth CAGR +7.7% Since 2003 Top Quartile Free Cash Flow 10.0% FY 12 15% Segment Operating Margins 15.2% +2-4% FY…
  15. Keybanc Industrials Conference – Parker Drilling Co. – slide 15
    Strategic Margin Drivers Achieving 15% Over the Cycle 50 bps 50 bps 50 bps Innovation Europe System Solutions Higher Margin Revenue Aerospace Optimize Footprint 20B Wins DAT Model Normalized R&D Today Segment Operating…
  16. Keybanc Industrials Conference – Parker Drilling Co. – slide 16
    Why Invest in Parker Winning Culture & Values Strong Competitive Advantages Clear Strategy and Goals Consistent Execution and Performance Opportunities for Growth 17
  17. Keybanc Industrials Conference – Parker Drilling Co. – slide 17
    Driving Free Cash Flow Free Cash Flow vs. Net Income in m illions 1,400 1,200 1,000 800 600 400 200 0 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 Free Cash Flow Net Income * Free Cash Flow = Cash…
  18. Keybanc Industrials Conference – Parker Drilling Co. – slide 18
    Top Quartile Performance Cash Flow From Operations* 14.0% 12.0% 10.0% 8.0% 6.0% 4.0% 2.0% 0.0% FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 * Cash Flow from Operations % = (Cash Flow From Operations +…
  19. Keybanc Industrials Conference – Parker Drilling Co. – slide 19
    57 Fiscal Years of Increasing Dividends Among the Top 5 Longest Records in the S&P 500 FY14 1.86 2.00 92% 1.80 Increase in Five Years 1.60 1.40 1.20 1.00 0.80 0.60 0.40 0.20 0.00 FY04 FY05 FY06 FY07 FY08 FY09 FY10…
  20. Keybanc Industrials Conference – Parker Drilling Co. – slide 20
    Outperforming Market and Peer Group Total Shareholder Return Annual Equivalent 25.0% 20.0% 15.0% 10.0% 5.0% 0.0% 3 Year 5 Year 10 Year 15 Year 20 Year S&P 500 Index S&P 500 Industrials Parker Source: Capital IQ as…
  21. Keybanc Industrials Conference – Parker Drilling Co. – slide 21
    Why Invest in Parker Winning Culture & Values Strong Competitive Advantages Clear Strategy and Goals Consistent Execution and Performance Opportunities for Growth 22
  22. Keybanc Industrials Conference – Parker Drilling Co. – slide 22
    Strategies for Growth Fueled by Excellent Liquidity & Access to Credit 8% Organic Growth 4% Value Added Acquisitions 12% Total Sales Growth Goal 10% 23
  23. Keybanc Industrials Conference – Parker Drilling Co. – slide 23
    Organic Growth Strategy Driven by Global Reach & Technology Synergies Emerging Markets Expanded Distribution Innovation Systems Solutions 24
  24. Keybanc Industrials Conference – Parker Drilling Co. – slide 24
    Investing in Faster Growing Markets Nominal Industrial Growth Forecasts 2013-2018 India 11% How We Win: Follow the Customer China 9% Distribution Serve Local Needs ASEAN 10% Latin America 9% Source: Oxford Economics 25
  25. Keybanc Industrials Conference – Parker Drilling Co. – slide 25
    Expanding Distribution Network Around the Corner, Around the Globe 13,000 10% Outlets Growth 26
  26. Keybanc Industrials Conference – Parker Drilling Co. – slide 26
    Unrivaled Retail Channel ParkerStore Growth 2,306 Stores Globally 2,400 2,200 2,000 1,800 Number of Parker Stores 1,600 1,400 1,200 1,000 800 600 400 200 0 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13…
  27. Keybanc Industrials Conference – Parker Drilling Co. – slide 27
    A Rigorous Approach to Innovation Incremental Annual Sales Growth Goal New to the Market, New to the World Target: FY13 Achievement: 3.0% 4% Protected by our growing patent portfolio 28
  28. Keybanc Industrials Conference – Parker Drilling Co. – slide 28
    Building Systems Capabilities Transformation to Complete Solutions Energy Aerospace Industrial Total Machine Systems Manifolds Power Units Door Control Systems Sub- Systems Components 29
  29. Keybanc Industrials Conference – Parker Drilling Co. – slide 29
    Increasing Systems Sales Our Changing Mix of Revenues Drive Higher Margins Systems Sales 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% Past Today Future 30
  30. Keybanc Industrials Conference – Parker Drilling Co. – slide 30
    Two Phase Evaporative Cooling Efficient Removal of Heat Opportunity: 5 Year Impact Size For Parker 1.8 550 Billion Million 31
  31. Keybanc Industrials Conference – Parker Drilling Co. – slide 31
    IndegoTM Exoskeleton Human Motion & Control Opportunity: 5 Year Impact Size For Parker 175 30 Million Million 32
  32. Keybanc Industrials Conference – Parker Drilling Co. – slide 32
    Commercial Airliner Fuel Cell Efficient Generation of Electricity & Water Opportunity: 20 Year Impact Size For Parker 25 8 Billion Billion 33
  33. Keybanc Industrials Conference – Parker Drilling Co. – slide 33
    Grid Tie Inverter System Storing Energy to Manage Demand Spikes Opportunity: 5 Year Impact Size For Parker Photo courtesy of AES Energy Storage LLC, www.aesenergystorage.com 800 100 Million Million 34
  34. Keybanc Industrials Conference – Parker Drilling Co. – slide 34
    Hydraulic Hybrid Drive System Runwise Advanced Series Opportunity: 5 Year Impact Size For Parker 6 550 Billion Million 35
  35. Keybanc Industrials Conference – Parker Drilling Co. – slide 35
    Fly-by-Wire Flight Control System Advanced Digital Stick to Surface Opportunity: 5 Year Impact Size For Parker 9 200 Billion Million 36
  36. Keybanc Industrials Conference – Parker Drilling Co. – slide 36
    Value Added Acquisition Strategy Proven Record of Acquiring, Integrating and Improving Objectives 4% Technology & Product Expansion Growth Target Access to New Markets FY01- FY13 Geographic Expansion 98 Acquisitions Aftermarket…
  37. Keybanc Industrials Conference – Parker Drilling Co. – slide 37
    Why Invest in Parker Winning Culture & Values Strong Competitive Advantages Clear Strategy and Goals Consistent Execution and Performance Opportunities for Growth 38
  38. Keybanc Industrials Conference – Parker Drilling Co. – slide 38
    39
  39. Keybanc Industrials Conference – Parker Drilling Co. – slide 39
    Appendix
  40. Keybanc Industrials Conference – Parker Drilling Co. – slide 40
    Consistent Sales Growth Total Sales Fiscal 2003-2013 10 Year CAGR: 7.7% through FY13 14,000 12,000 10,000 8,000 6,000 4,000 2,000 0 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 41
  41. Keybanc Industrials Conference – Parker Drilling Co. – slide 41
    Healthy Returns 18.5% Return on Invested Capital Fiscal 2003-2013 25% 20% 15% 10% 5% 0% FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 42
  42. Keybanc Industrials Conference – Parker Drilling Co. – slide 42
    Raising the Floor and Ceiling on Margins Operating Margin and E.P.S. Fiscal 2003-2013 16.0% 14.8% 15.2% 8.00 13.8% 14.1% 13.8% 14.0% 13.4% 7.00 12.5% 6.00 Operating Margin % 12.0% 11.4% 9.9% 9.7% 5.00 10.0% E.P.S.…
  43. Keybanc Industrials Conference – Parker Drilling Co. – slide 43
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