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NOW Inc. First Quarter 2020 KEY TAKEAWAYS
KEY TAKEAWAYS© 2020 COPYRIGHT DISTRIBUTION NOW
Disclosure Statement
2Statements 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 note that the Company's actual
results could differ materially from those projected in such forward -looking statements. Additional information concerning
factors that could cause actual results to differ materially from those in the forward -looking statements is contained from
time -to-time in the Company's filings with the U.S. Securities and Exchange Commission (SEC). Any decision regarding the
Company or its securities should be made upon careful consideration of not only the information here presented, but also other available information, including the information filed by the Company with the SEC. Copies of these filings may be
obtained by contacting the Company or the SEC.
In an effort to provide investors with additional information regarding our results as determined by U.S. Generally Accepted Accounting Principles (GAAP), we disclose various non- GAAP financial measures in our quarterly earnings press
releases and other public disclosures. We use these non- GAAP financial measures internally to evaluate and manage the
Company’s operations because we believe it provides useful supplemental information regarding the Company’s ongoing
economic performance. The non -GAAP financial measures include: (i) earnings before interest, taxes, depreciation and
amortization (EBITDA) excluding other costs (sometimes referred to as “EBITDA”), (ii) net income (loss) excluding other costs and (iii) diluted earnings (loss) per share excluding other costs. Each of these financial measures excludes the impact
of certain other costs and therefore has not been calculated in accordance with GAAP . A reconciliation of each non- GAAP
financial measure to its most comparable GAAP financial measure can be found in our quarterly earnings press release.
First Quarter 2020© 2020 COPYRIGHT DISTRIBUTION NOW
CEO Perspective: First Quarter Key Takeaways
1Q20 revenue of $604M, down 5% sequentially and 23% lower YOY resulting from
reduced activity due to impacts of COVID- 19 and oil demand shock
U.S. revenue channels: 50% U.S. Energy Centers, 28% U.S. Supply Chain Services, 22% U.S. Process Solutions
Gross margins declined 20 basis points sequentially, due to inventory charges
$202M cash on hand and zero debt, credit facility expires in April 2023
Cash provided by operating and investing activities was $28M
1Q20 working capital excluding cash as a percentage of revenue was 18%, beating our historical target of 20%
Structural transformation was accelerated due to rapid decline of market conditions
3 First Quarter 2020© 2020 COPYRIGHT DISTRIBUTION NOW
ESG response to COVID -19
Established crisis business rules
Remained connected to our customers
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