DNOW Overview

© 2014 COPYRIGHT DISTRIBUTIONNOW
Introduction to DistributionNOW
2
Countries 20+
Locations 330+
Employees 5,300+
ERP System SAPTM
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 and
information
DistributionNOW VISION

© 2014 COPYRIGHT DISTRIBUTIONNOW
Experienced Management Team
3
Merrill A. “Pete” Miller, Jr.
Executive Chairman
18 years at DNOW / NOV
David A. Cherechinsky
Chief Accounting Officer
25 years at DNOW / NOV
Burk L. Ellison
President, Energy Branches
34 years at DNOW / NOV
Daniel L. Molinaro
Chief Financial Officer
46 years at DNOW / NOV
Raymond W. Chang
General Counsel
13 years at DNOW / NOV
 21-year average tenure of Operations team, including NOV and its predecessor entities
 Extensive industry experience
 Focus on results, process and relationships
Robert R. Workman
President and Chief Executive Officer
23 years at DNOW / NOV
Note: Tenure at DNOW / NOV includes predecessor entities

© 2014 COPYRIGHT DISTRIBUTIONNOW
Value Proposition
4
A Critical Link Through Leading
Supply Chain Technology
Product Offering Market Segments
 Knowledgeable people
– Customer
– Product
– Application
– Materials management
 Proven processes
– Quality management
– Supply chain expertise
 Extensive infrastructure
– United States
– Canada
– International
 Procurement advantage
– Broad supplier base
– Single source provider
– Global sourcing

© 2014 COPYRIGHT DISTRIBUTIONNOW
Market Segments & Customers
5
• Chevron
• Valero
• Tesoro
• Phillips66
• Bayer
• Dow
• BASF
• ExxonMobil
• BP
• Sunoco
• Boardwalk Pipeline
• BP
• Chesapeake Midstream
• DCP Midstream
• Enterprise Products
• Kinder Morgan
• Markwest
• Dominion
• ONEOK
• Energy Transfer
• Apache
• BHP Billiton -PetroHawk
• BP
• ConocoPhillips
• Devon
• EOG Resources
• ExxonMobil
• Linn Energy
• Oxy Petroleum
• XTO
Drilling
Contractors
Exploration &
Production
Midstream Downstream &
Industrial
• Diamond Offshore
• H&P
• Nabors
• Noble Drilling
• NOMAC
• Parker Drilling
• Patterson
• Rowan Drilling
• Seadrill
• Transocean

© 2014 COPYRIGHT DISTRIBUTIONNOW
Overview of Key Product Categories
6
Pipe & Tube
 Leader in breadth and depth of product in many grades
 Carbon, alloy, stainless pipe, instrumentation tubing, fiberglass and poly
Valves
 Valves covering both upstream and downstream sectors
 Ball, multi-turn, specialty check, butterfly, gate and plug
 Valve actuation
Fittings &
Flanges
 Carbon and alloy steel in butt-weld & forged, bolts & gaskets, instrumentation fittings
and other fittings
 Leading position in high yield fittings and flange products for the gas pipeline industry
Mill, Tool and
Safety
 Extensive inventory of mill, tool, safety and janitorial products
 Comprehensive product line includes hand, power, precision and cutting tools and
safety products and services
Drilling &
Production
Products
 Major product offerings include OEM parts, rotary and vibrator hoses, fluid end
expendables, triplex pump modules, drill lines, choke and kill hoses
Artificial Lift
 Product offering includes conventional rod pumps, progressive cavity (PC) pumps,
variable frequency drive systems (VFD) and surface equipment

© 2014 COPYRIGHT DISTRIBUTIONNOW
Flexible Operational Model
7
Branch network model
supported by DCs to
ensure inventory is
maintained locally.
Right inventory in right
place at the right time
BRANCHES
Broad sourcing
capability to
consolidate customer
requirements on
multiple lower value or
non-core items
EXPORT SUPPLY CHAIN
SERVICES
Vast offering of supply
chain services to
increase efficiency and
lower cost within the
supply chain
CAPITAL PROJECTS &
VALVE ACTUATION
Global sourcing and
expediting capability to
ensure correct product
is delivered to the job
site in accordance with
project requirements
Shipment direct to
customer facility from a
regional distribution
warehouse
REGIONAL DC

© 2014 COPYRIGHT DISTRIBUTIONNOW
Operational Scope and Supply
8
Procurement LogisticsInventory&
Warehouse
Managemen
t
Business
Processes
Material
Sourcing
Logistics
Information
Systems
Materials
Management
Service &
Accountability
 Material sourcing
– Global sourcing
– Quality system
– Globally AML
 Export services
 Procurement services
– On-site at customer location

© 2014 COPYRIGHT DISTRIBUTIONNOW
Operational Scope and Supply (cont’d)
9
Procurement LogisticsInventory&
Warehouse
Managemen
t
Business
Processes
Material
Sourcing
Logistics
Information
Systems
Materials
Management
Service &
Accountability
 Global inventory investment
 Local availability
 Inventory management
 Warehouse management
 Customer-owned managed inventory
 Forecasting, planning and reporting
 Technology enablement

© 2014 COPYRIGHT DISTRIBUTIONNOW
Operational Scope and Supply (cont’d)
10
Procurement LogisticsInventory&
Warehouse
Managemen
t
Business
Processes
Material
Sourcing
Logistics
Information
Systems
Materials
Management
Service &
Accountability
 Service
– Company-owned fleet to service last mile
– 3rd party freight agreements
– 24/7 delivery service
 Cost savings
– Freight consolidation
– Global logistics management
– Order consolidation

© 2014 COPYRIGHT DISTRIBUTIONNOW
Operational Scope and Supply (cont’d)
11
Procurement LogisticsInventory&
Warehouse
Managemen
t
Business
Processes
Material
Sourcing
Logistics
Information
Systems
Materials
Management
Service &
Accountability
 Order fulfillment
 Inventory visibility and replenishment
 Planning and scheduling
 Content management
 Real-time reporting and analytics
 eCommerce capabilities

© 2014 COPYRIGHT DISTRIBUTIONNOW
Operational Scope and Supply (cont’d)
12
Procurement LogisticsInventory&
Warehouse
Managemen
t
Business
Processes
Material
Sourcing
Logistics
Information
Systems
Materials
Management
Service &
Accountability
 Partnership
– Joint meetings
– Goal alignment
– KPI measurement
– Risk mitigation
– Pride and ownership of servicing our customers
– Commitment to service and the
Industry since 1862

13

© 2014 COPYRIGHT DISTRIBUTIONNOW
Global Footprint
14

© 2014 COPYRIGHT DISTRIBUTIONNOW
U.S. Footprint
15
Distribution Center
Applied Products
DNOW Branch

© 2014 COPYRIGHT DISTRIBUTIONNOW
Canada Footprint
16
DNOW Head Office
Automation Centers
DNOW Branch

© 2014 COPYRIGHT DISTRIBUTIONNOW
Global Footprint
17
**Sales Office
Asia Pacific
 Jurong, Singapore
 Balikpapan, Indonesia
 Gresik, Indonesia
 Jakarta, Indonesia
 Mumbai, India
 Shanghai, China
 Brisbane, Australia
 Perth, Australia
 Roma, Australia
Europe
 Cambridge, England
 **London, England
 Great Yarmouth, England
 Beverwijk, Netherlands
 **Pruszkow, Poland
 Kristiansand, Norway
 Stavanger, Norway
 Aberdeen, Scotland
Latin America
 Macae, Brazil
 **Rio de Janeiro, Brazil
 Bogota, Colombia
 Ciudad Del Carmen, Mexico
 Poza Rica, Mexico
 Villahermosa, Mexico
 **Lima, Peru
MENA and Africa
 Al Khobar, Saudi Arabia
 Jebel Ali, U.A.E.
 Abu Dhabi, U.A.E.
 **Muscat, Oman
 Cairo, Egypt
 **Cape Town, South Africa
Russia and CIS
 Nizhnevartovsk, Russia
 Sakhalin, Russia
 **Aktau, Kazakhstan
 Atyrau, Kazakhstan
 **Baku, Azerbaijan

© 2014 COPYRIGHT DISTRIBUTIONNOW
Technology and eBusiness Solutions
18
Business to Business Integration
 SAP to customer ERP
 Business process and
analysis
 Integrated supply
 Bar coding
eCommerce
 Procurement services
 Inventory transparency
 Punch out / roundtrip
 EDI / XML
 Online catalog
 300,000+ SKUs
 Custom masks
 Product details
 Item comparison
 Search
 Order online
 Electronic payment
 Credit card
 Purchase order

© 2014 COPYRIGHT DISTRIBUTIONNOW
Reporting
19
Key Performance Indicators
DistributionNOW has enabled its system with the ability to capture Customer
Additional Data (CAD) for every line item on every Sales Order. That information is
tailored to every customer and enables tracking and allocation of each line item to a
specific customer location, rig, platform, work order, cost center, project, equipment
number, AFE, G/L account, etc.
DistributionNOW has the capability of reporting KPIs (and not limited to)
 Spend by Order Type (Stock or Buyout)
 Spend by Product Category
 Spend by DNOW Branch
 Spend by Customer Location
 On-time Delivery
 Order Accuracy
 Line Item Detail
8%
9%
11%
13%
16%
23%
20%

© 2014 COPYRIGHT DISTRIBUTIONNOW
B2B Process Automation
20
NOW Branch Location
Material Replenishment
Customer
“Field / Operations”
Information Sharing Delivery of Material
 Interface with customer’s system
 Business process and analysis
 Integrated supply
 Bar coding
 EDI / XML
 Procurement services
 Order process
 Technical support
 Inventory transparency
 Procure to pay
 Catalog pricing
 KPI quarterly reports
 Documentation flow process
Customer “Back Office Support”
 Procurement (Electronic RFQ / PO Processes)
 Accounts Payable (Electronic Invoicing)

© 2014 COPYRIGHT DISTRIBUTIONNOW
Safety Moment //
HSE is “My Responsibility”
21
DistributionNOW’s Safety Philosophy:
• Our employees are our most valuable resource. No aspect of business is more important
than their personal safety. We believe that all accidents can be prevented and that safety is
an integral part of everyone’s job. Our customers, management and employees are
responsible for demonstrating safety leadership, providing a safe work environment and
promoting safety as a value
HSE:
• Incident Reporting
• Training
• Drug / Alcohol testing
• DOT Compliance
• Behavior Based Safety Program
• Safety Awards
Safety while in the warehouse:
• Please stay close to your host at all times
• Please keep cell phone use to a minimum
• The warehouse is very dynamic - please
watch for equipment
• If you observe any unsafe activity, please
let us know
• In the event of an emergency, listen to
your host’s instructions

© 2014 COPYRIGHT DISTRIBUTIONNOW
Quality Management System
22
Quality Goals
Increase Employee Capabilities
Maintain Accurate Inventory
Provide Quality Products and Services
Always Deliver On-Time
Continually Improve
Total Customer Satisfaction
Quality Policy
DistributionNOW is committed to meeting or exceeding the needs and expectations of our customers; to
support our quality goals and objectives; and to continually seek to improve the effectiveness of our Quality
Management System. Each employee understands and subscribes to the principle:
“QUALITY IS MY RESPONSIBILITY”
____________________________________
Robert Workman
Chief Executive Officer
April 7, 2014

Europe Area Overview

© 2014 COPY RIGHT DISTRIBUTIONNOW
Europe Area Locations
24
Energy Branches
 Aberdeen, UK
 Great Yarmouth, UK
 Beverwijk, NL
 Stavanger, NO
 Kristiansand, NO
Sales Office
 Pruszkow, PL
Capital Valves
 Cambridge, UK
 London, UK

© 2014 COPY RIGHT DISTRIBUTIONNOW
Europe Area Product Lines
25
• Electrical – Cable, Plugs & Receptacles, Glands, Lighting
• PPE – Full Head to Toe Offer, Gas Detection, Fall Arrest
• Mill Tool & Safety Supplies – Tools, Lubricants, Abrasives
• Surface Preparation - Graco, Hodge Clemco
• Compounds – Bestolife, Statoil Multi-Dope, Jetlube.
• Valves – Butterfly, Gate, Ball, Globe, Check, Plug, Needle
• Wire Rope – Drill Line, Crane Rope, Mooring Rope
• Pressure Fittings – RJT Gaskets, Hammer Unions, Flanges
• Torque Equipment– Titan Torque Wrench / Drivers
• Environmental – Dulon Rig Wash, Spill Containment
• NOV Drilling Spares – Rig Solutions, Mission
• Water Systems - AquaChem

© 2014 COPY RIGHT DISTRIBUTIONNOW
Electrical Products
26
Distribution NOW’s Electrical Products Group is the leading stocking distributor for the
O&G’s core electrical products and through our manufacturing partners offer high
performance and globally specified products to fully service the arena and our valued
customers.
• Electrical Cable
• Cable glands
• Harsh Area Lighting
• Plugs and receptacles
• Panel boards/control
• Electrical accessories

© 2014 COPY RIGHT DISTRIBUTIONNOW
Drilling Consumables
27
• Pipe Thread Compound – Bestolife, Jetlube, Statoil MultiDope
• Drilling Valves – Butterfly, Gate, Relief, Float
• Fluid End Expendables - Mission
• Centrifugal Pumps and Pump Packages - Mission
• Environmental Rig Wash - Dulon
• NOV OEM Drilling Spares

© 2014 COPY RIGHT DISTRIBUTIONNOW
PPE & Safety
28
• Work wear, including coveralls
• Disposable clothing
• Chemical protection clothing
• Foul weather wear
• Respiratory protection
• Eye protection
• Head protection
• Hearing protection
• Foot Protection
• Hand protection

© 2014 COPY RIGHT DISTRIBUTIONNOW
Europe Area Management
Ryan Mahan
Area Director
Europe & SSA
Mick Haverty
Country Manager
United Kingdom
Jan Egil Hjelle
Country Manager
Norway
Richard Dijkstra
Country Manager
Netherlands
29

© 2014 COPY RIGHT DISTRIBUTIONNOW
Europe Area Sales
Ryan Mahan Area
Director Europe
& SSA
Doug Lowe
Sales Manager
United Kingdom
Chris Nicoll
BDM
Aberdeen
Anne Ritchie
BDM
Aberdeen
Glen Kalfsvel
BDM
Netherlands
Marco Zonneveld
PPE Specialist
Netherlands
Frank Baird
PLM Electrical
Europe
Ash Smith
BDM
SSA
Jan Egil Hjelle
Country Manager
Norway
Jorgen Oen BDM
Norway
30

© 2014 COPY RIGHT DISTRIBUTIONNOW
31