Annual General Meeting May 14 th , 2019 CEO Remarks Disclaimer - - PowerPoint PPT Presentation

Annual General Meeting

May 14th, 2019

CEO Remarks

May 14th, 2019

This presentation contains forward-looking information within the meaning of applicable securities laws. Words such as "may", "will", "should", "anticipate", "plan", "expect", "believe", "predict", "estimate" or similar terminology are used to identify forward-looking

• information. This forward-looking information is based on assumptions, estimates and

analysis made in the light of the Company's experience and its perception of trends, current conditions and expected developments, as well as other factors that are believed by the Company to be reasonable and relevant in the circumstances. Forward-looking information involves known and unknown risks, uncertainties and other factors which may cause actual results, performance or achievements to be materially different from those predicted, expressed or implied by the forward-looking information. Additional information on the risks and uncertainties on the Company’s business can be found in the Company’s current Annual Information Form, annual and quarterly reports and in

• ther reports and filings made with the securities regulatory authorities and available at

www.sedar.com and www.shawcor.com. The forward-looking information is provided as

• f the date of this presentation and the Company does not assume any obligation to

update or revise the forward-looking information to reflect new events or circumstances, except as required by law.

Disclaimer

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Building on Long-term Fundamentals

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Increasing Public / Regulatory Scrutiny

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• Investments to connect, ensure

supply and greener alternatives

• Energy and transportation
• Investments to replace, maintain and

rehabilitate

• Energy, water and utilities
• Investments for sources of new

supply

Aging Infrastructure Impact of Depletion Energy Sustainability

Billion toe

Source: BP Energy Outlook 2018

Oil & Gas Pipelines U.S. Water Pipelines

32% 13% 12% 11% 23% 9%

Excellent Good Fair Poor Very Poor Life Elapsed

Source: EPA Source: Welling Source: Bloomberg NEF

Global Production Forecast Global LNG Supply & Demand

Source: IEA

End Use Sector Fuel Billion toe

Source: BP Energy Outlook 2018

S H A W C O R T O D AY

A Global Energy Services Company

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Broad product and service offering – a powerful competitive advantage

Industry Dynamics

Source: EIA Source: Spears & Associates March 2019 E&P Capex, Shawcor FID Line Internal Reference

Commodities ($USD/bbl) Global E&P Capex ($M US) and # of FIDs

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$0 $20 $40 $60 $80 $100 $120 $140 2011 2012 2013 2014 2015 2016 2017 2018 2019 WTI ($USD/bbl) Brent ($USD/bbl)

40 60 80 100 120 140 160 180 200 220 240 $0 $50,000 $100,000 $150,000 $200,000 $250,000 $300,000 $350,000 $400,000 $450,000

# of FIDs Global E&P Capex ($M US)

International North America # of FIDs

2018 Highlights

Revenue $ 1.41 billion EBITDA (Adj.) $ 135 million Backlog $ 459 million Operating Cash Flow $ 31 million TRCF* 6.2

$ CDN

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2018 Highlights

* Total Recordable Case Frequency Per Million Person Hours Worked

2019 Q1 Highlights

Revenue $ 349.6 million EBITDA (Adj.) $ 28.2 million Backlog $ 454.2 million Net Income (Adj.) $ 3.2 million EPS (Adj.) $ 0.05 Dividend $ 0.15 per share

$ CDN

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2019 Q1 Highlights

2019: Return of Pipe Coating

9 Under $30M CAD $30M to $100M CAD Above $100M CAD

PEMEX Package C TOTAL Fenix EQUINOR Carcara ENAP Cruce TGS San Nicolas EXXON Liza 3 (Payara) TOTAL EACOP SAGE MEIDP CONOCOPHILLIPS Barossa EXXON Neptun Deep PETROBRAS Mero 1 PETROBRAS Buzios V PETROBRAS Sepia BHP Trion PEMEX Line 7 SHELL Power Nap TC ENERGY Coastal GasLink FORTIS BC Eagle Mountain SHELL Rydberg PAN AMERICA. Hokchy BP Atlantis EQUINOR Rosebank PREMIER OIL Tolmount ANADARKO Golfinho TPN OPENE PTTEP MOGE INPEX Ichthys 2A SHELL Crux WOODSIDE Browse PVN Omon Block B WOODSIDE Julimar Ph 2 WOODSIDE Scarborough TGT (Trafigura) TGTP PHILLIPS 66 ACE Pipeline SEMPRA Port Arthur FREEPORT LNG Freeport LNG Expn ENTERPRISE NGL Expansion ENERGY TRAN. Waco MARATHON Swordfish TARGA Whistler Project BP Tortue WOODSIDE Sangomar ENI Agogo EQUINOR Johan Sv. Ph. 2 SHELL SK318 PERTAMINA Lawe Lawe PETRONAS Limboyang CONOCOPHILLIPS Tor 2 PHILLIPS 66 Liberty ENERGINET Baltic Pipe ADNOC Dalma ADNOC Hail & Ghasha TOTAL / EXXON Papua LNG Bid: Pipe Coating Budgetary: Pipe Coating Pipe Coating: Offshore 26% 42% Pipe Coating: Transmission 45% 25% Pipe Coating: LNG 29% 33% TRANS MOUNTAIN TM Expansion VENTURE GLBL Gator Express

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Annualized Cost Synergies year one ZCL Composites

• North America’s largest manufacturer of

fiberglass reinforced plastic underground storage tanks

• ZCL I Xerxes and Parabeam: Well

Recognized Brands

• Serves the Fuel, Water & Wastewater,

and Oil & Gas markets

• 2018 revenue of $176 million and

Adjusted EBITDA of $23 million Acquisition Rationale

• Leverage Shawcor’s core strengths
• Expands addressable market
• Increases stability
• Accretive to earnings

Cost Savings > $8M Area Update Public Co. Costs $2.0M Organization* $4.2M Operations $2.0M Increases Served Accessible Market > $500M Area Update Channel Synergies $20.0M Combined Solutions $10.0M International Growth $5.0M Annualized Revenue Synergies 3rd year

* Includes duplicative ZCL NEO Compensation Costs

2019: Further Strengthening the Base

Portfolio Strategy is Providing Confidence

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1. Supportive base business

 Pipeline Replacement and Refurbishment  North America Drilling and Completions  Infrastructure and Transportation Expansion and Upgrading

2. Return of Pipe Coating

 LNG  Offshore  Land Transmission Lines  >$2.5B in visible opportunities

3. Positioned for the long-term

 Strong fundamentals  Established growth themes  Supportive capital structure

Annual General Meeting

May 14th, 2019