December 2017 Forward-looking Statements This presentation may - - PowerPoint PPT Presentation

December 2017

Forward-looking Statements

This presentation may contain forward-looking statements, including statements regarding the business and anticipated financial performance of ENTREC Corporation (“ENTREC” or the “Company”). These forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward- looking statements. A number of factors could cause actual results to differ materially from those in the forward-looking statements, including, but not limited to, fluctuations in commodity prices, weather, access to capital markets, competition, changes in technology and government policies, decreases in capital spending by customers, decreases in exploration and development spending by customers, the ability or inability of the Company to increase profit margins or utilization, the ability or inability of the Company to expand to new markets, the ability or inability of the Company to successfully acquire and integrate

• ther businesses, the ability or inability of the Company to leverage its existing presence to expand its geographic footprint, the

ability or inability of the Company to improve operational efficiencies, and the degree to which committed and prospective revenues materialize. In light of the significant uncertainties inherent in the forward-looking statements included herein, the inclusion of such information should not be regarded as a representation by the Company or any other person that the objectives and plans of ENTREC will be achieved. The Company believes that the expectations reflected in these forward-looking statements are reasonable; however, no assurance can be given that these expectations will prove to be correct and such forward-looking statements included in this presentation should not be relied upon. In addition, these forward-looking statements relate to the date on which they are made. Unless otherwise required by applicable securities legislation, the Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events

• r otherwise.

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Investment Highlights

 Diversified industry exposure and client base

– Broad exposure to customers in the oil & gas, mining, petro chemical, pulp & paper, power generation and infrastructure industries

 Niche industry with high barriers to entry

– Actively increasing market share (completed 14 acquisitions since 2011)

 Strong recurring revenue base

– Multiple touch points with customers through construction and maintenance, repair and operation phases

 Historically strong track record of revenue and EBITDA growth  Proven management team with extensive operating background  Significantly undervalued despite best-in-class long-lived assets

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Company Information

Toronto Stock Exchange ENT Basic Shares Outstanding (March 31, 2017) 109.6 million Share Price (Dec 1, 2017): $0.19 Market Capitalization: $21 million Working capital (September 30, 2017) $21 million Property, plant and equipment FMV (September 30, 2017) $217 million Net Debt (September 30, 2017) $151 million Net tangible asset value (September 30, 2017) $72 million 52 Week Trading Range: $0.14/$0.28 Management and Board Holdings 52%

The Right Management Team

5 Extensive Industry Experience

Rod Marlin Executive Chairman

• Former President, CEO and Director of Eveready Inc., acquired by Clean Harbors Inc.

in July 2009

• Founder and former President of Marlin Travel Group, Canada’s largest travel company,

until 1993 sale John Stevens President, CEO + Director

• Former President and Director of NC Services Group, a private crane and hauling

company

• Former Senior Vice President of Eveready and its predecessor companies

Jason Vandenberg CFO

• Former VP Finance and CFO of Eveready and its predecessor companies
• Former Manager with Grant Thornton

Glen Fleming Executive VP, Operations

• Former Executive Vice President of Clean Harbors post acquisition of Eveready
• Prior thereto, was Vice President and COO of Eveready

Gavin Mcleod VP, Finance + Operations

• Former Director of Finance with Petrocom Construction
• Joined ENTREC in 2011

Whitney Irwin VP, HSE and Training

• Formerly with Flint Energy Services, a former parent company of ENTREC
• Re-joined ENTREC in 2011

Complementary Crane and Specialized Transportation Solutions

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Our Business

Specialized Cranes for Every Application

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Crawler Cranes: 21

FMV: $29 MM Used for: oil & gas, mining, petro chemical, power generation and infrastructure construction 1

Rough Terrain Cranes: 38

FMV: $19 MM Used for: oil sands mining and in situ construction, LNG construction, other construction and oil & gas 2

Hydraulic Truck Cranes: 10

FMV: $8 MM Used for: oil & gas, oil sands MRO, mining, petro chemical, power generation and infrastructure industries 5

Boom/Picker Trucks: 86

FMV: $29 MM Used for: oil & gas, oil sands in situ MRO, mining, petro chemical, power generation and infrastructure industries 6

Carry Deck Cranes: 7

FMV: $1 MM Used for: plant site maintenance and construction 3

All Terrain Cranes: 28

FMV: $36 MM Used for: oil & gas, oil sands MRO, mining, petro chemical, power generation and infrastructure industries 4

Specialized Heavy Haul Fleet

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Conventional Multi- wheeled Trailers: 750 FMV: $33 MM Multiple configurations (up to 96 wheels)

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Hydraulic Platform Trailers: 375 FMV: $13 MM Modular, highly customizable

2

Tractors: 190 FMV: $27 MM Large diverse fleet of prime movers, winch tractors and highway tractors

3 1 2 3

Asset Overview

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Equipment Units Crane Fleet Crawler Cranes 21 Rough Terrain Cranes 38 Carry Deck Cranes 7 All Terrain Cranes 28 Hydraulic Truck Cranes 10 Boom / Picker Trucks 86 Total 190 Specialized Transportation Fleet Conventional Multi-Wheeled Trailers 750 Hydraulic Platform Trailer Lines 375 Tractors 190

• ENTREC has an extensive fleet of cranes, trailers and tractors that serve all industries

– 190 cranes with multiple uses allow ENTREC to provide a crane for every application – Large fleet of trailers reaching up to 96 wheels

• September 30, 2017 net tangible asset value of $71.7 mm

Total Assets 230,808 Less: intangible assets (998) Add: fair market value of PPE 217,200 Less: net book value of PPE (192,240) Tangible Assets 254,770 Total Liabilities 183,097 Tangible Net Asset Value 71,673 Per Basic Share 0.65 Current Share Price (December 1, 2017) 0.19 Premium (Discount) to Net Tangible Asset Value

• 70.9%

Net Tangible Asset Value

Recently Extended ABL Senior Debt Facility

• Recently completed 5 year extension of ABL Facility led by Wells Fargo
• No Principal repayments until maturity in October 2022
• Effective interest rate (including transaction costs) of 3.9% at September 30,

2017

• Borrowing base calculated on net orderly liquidation value of fleet plus

accounts receivable

• Must maintain $15 million excess borrowing capacity at all times
• Key Metrics at September 30, 2017:
• If the excess borrowing capacity declines below 12.5% of the borrowing base

($19.4 million at September 30, 2017), we must also maintain a fixed charge coverage ratio of great than 1.0x. Our ratio was 1.14x at September 30, 2017

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Borrowing base (% of equipment and accts receivable) $155.3 mm ABL Facility utilized $126.9 mm Excess borrowing capacity $28.4 mm

Where We Operate

Industries Served:

• Conventional oil & gas
• Mining
• Petro chemical
• Pulp & paper
• Infrastructure
• Refining
• Power generation

11 Oil Sands LNG Industry Bakken Oil Fields Thompson, Manitoba Recent Expansion into Manitoba market through HighMark Crane acquisition Western Canada & North Dakota Exposure to natural resource, infrastructure and transportation industries Midland, Texas Strong presence established in the Permian Basin of West Texas Bakken Oil Fields ENTREC Location General Movement

• f Goods

Colorado Recent greenfield expansion in Milliken, Colorado

US Growth Strategy Continues to Accelerate

US Drilling and Completion Annual Expenditures Expected to Double by 2022

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• US revenue up 231% in Q3

2017 over the prior year

• US now represents

approximately 40% of our consolidated revenue

• Strategically located in

highest future growth areas

• Recent greenfield

expansion into the DJ- Niobrara basin of Colorado

• Now completing our first

industrial construction project on the US Gulf Coast

Significant Exposure to Power Transmission Spending

Significant Exposure to Several Proposed Power Transmission Projects

• Through a 2016 acquisition, ENTREC now has the

ability to bid on diversified power transmission projects throughout Canada

– Power projects include upgrades, extensions and/or new: power plants, transmission lines and substations, generating stations, power generating dams, solar and other power infrastructure projects

• Stable and consistent spending over near

to medium term through Canadian, US and government owned entities with growing capital power spending project budgets:

Opportunities with Basin Electric’s $1 bn worth of projects in North Dakota Valard transmission line ATCO/Alberta Powerline: Fort McMurray west transmission line, ATCO: gas fired power plant and forest fire damage rehabilitation SaskPower: Boundary Dam upgrades and expansion, transmission lines and substations Manitoba Hydro: Keeyask Generating Station, Bipole III project, Conawapa generating station Nalcor Energy: Labrador- Island Link transmission system Emera: Maritim e Link MAXIM: Deerland Peaking station GTE Power: Brooks 1 Solar + TransAlta: Sundance gas fired power plant Ontario Hydro: Mattagami, New Post Creek, Ranney Falls station, Niagara Tunnel, P.Sutherland Gen station

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Northeast Texas approved transmission line projects: Marshall- Hallsville improvements + Valliant-NW Texarkana FGE Texas: Mitchell County $1.2 bn natural gas power plant Tenaska: Building of Brownsville electric generating station in Cameron County, Texas

Diverse Customer Base

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Natural Resource Producers EPCs /

• Manu. /

Oilfield Service

High Barriers to Entry

• High capital costs to build competitive fleet
• Scale of fleet
• Requires specialized knowledge and extensive experience
• Critical importance of safety

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Annual Results

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Adjusted EBITDA & Margin Revenue

2013 2014 2015

Acquisitions $60 mm $9 mm $0 mm Capex (net of disposals) $56 mm $56 mm $16 mm Total Capital Spend $116 mm $65 mm $16 mm

2016

$5 mm ($15 mm) $10 mm

2017

Quarterly Results

Adjusted EBITDA & Margin Quarterly Revenue

2015 2016 2015 2016 2017

Strong Strategic Ownership Positions

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40% Ownership Between two strategic investors in the industry 14% Ownership Employee Ownership Majority of Company Ownership between Two Industry Members and ENTREC Employees

Top Institutional Shareholders Shares (000s) Interest JV Driver Corporation 22,422 20.5% Manitoulin Transport 21,431 19.6% Top Institutional Shareholders 43,853 40.0% Top Insider Shareholders Shares (000s) Interest Glen Fleming - Executive VP, Operations 4,767 4.3% Rod Marlin - Executive Chairman 4,856 4.4% Peter Lacey - Director 2,472 2.3% John M. Stevens - President, CEO & Director 800 0.7% Jason Vandenberg - CFO 184 0.2% Other Directors and Officers 190 0.2% Top Insider Shareholders 13,269 12.1% Employee Ownership Plans (excluding RSUs) 1,730 1.6% Implied Retail and Unidentified Institutional 50,750 46.3% Basic Shares Outstanding 109,602 100.0%

Source: SEDI

Strategic Ownership in ENTREC

• Alberta based company established in 1989
• Provider of contractor and fabrication

services for the industrial, commercial / multi-unit residential and industrial buildings, marine, environmental and public infrastructure industries

• Clients include CNRL, Imperial Oil, Shell,

Devon

• Currently hold 20.5% of ENTREC’s basic

shares outstanding

• Manitoulin has one of the most extensive

transportation networks in Canada

– 50 years of operating experience

• Provides truckload, less than truckload,

trans-border, rail intermodal and specialized transportation services from

• ver 100 locations across Canada
• Recently acquired Hi-Way 13’s less-than-

truckload division (built out Alberta coverage)

– $136 mm transaction value (including debt)

• On October 29, 2015, Manitoulin Transport

announced a strategic investment into ENTREC, acquiring ownership of 15.4%

– Since then, they have acquired more stock to take ownership up to 19.6%

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Strategy

• Short-term strategies

– Continued USA expansion – Focus on MRO business – Power transmission – Cross sell crane and heavy haul services – Reduction of long-term debt

• Long-term strategies

– Continued geographic expansion and industry diversification

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Investment Highlights

 Diversified industry exposure and client base

– Broad exposure to customers in the oil & gas, mining, petro chemical, pulp & paper, power generation and infrastructure industries

 Niche industry with high barriers to entry

– Actively increasing market share (completed 14 acquisitions since 1995)

 Strong recurring revenue base

– Multiple touch points with customers through construction and maintenance, repair and operation phases

 Historically strong track record of revenue and EBITDA growth  Proven management team with extensive operating background  Significantly undervalued despite best-in-class long-lived assets

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Appendix

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Board of Directors

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Experienced Board of Directors

Board of Directors

Rod Marlin Executive Chairman

• Former President, CEO and Director of Eveready Inc., acquired by Clean Harbors Inc in July 2009
• Founder and former President of Marlin Travel Group, Canada’s largest travel company, until sale in 1993

Peter Lacey Director

• President, CEO and Director of Cervus Equipment Corporation and its predecessor companies since 1998
• Former Director and Chairman of Eveready and its predecessor companies until sale in 2009

Dwayne Hunka Director

• President of DHI Group and Hunka Capital
• Prior thereto, was VP, Business Development for JV Driver Projects, a provider of construction services

Mark Maybank Director

• Active private investor, director, advisor and entrepreneur associated with a variety of private companies
• Former President and COO of Canaccord Genuity until 2011

Charles Sanders Director

• CFO with JV Driver since 2008, formerly held the position of corporate accountant with the organization
• Former accountant with Hill and Partners

Don Goodwill Director

• President of Manitoulin Transport, a Canadian transportation company with 74 Canadian terminal locations
• Became a Director of ENTREC on November 23, 2015 following a significant investment into the company

Brian Tod Director

• Business lawyer acting as counsel to the Edmonton office of Miller Thomson, a national law firm
• Has been with Miller Thomson since 1971

John Stevens President, CEO and Director

• Former President and Director of NC Services Group, a private crane and hauling company
• Former Senior Vice President of Eveready and its predecessor companies

Contact Information

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Corporate Office

ENTREC Corporation

28712 – 114 Avenue Acheson, AB T7X 6E6

Company Contacts

Rod Marlin

Executive Chairman 780.962.1600 rmarlin@entrec.com

John Stevens

President and Chief Executive Officer 780.960.5625 jstevens@entrec.com

Jason Vandenberg

Chief Financial Officer 780.960.5630 jvandenberg@entrec.com