Investor Presentation August 2017 SAFE HARBORS STATEMENT This - PowerPoint PPT Presentation

Investor Presentation August 2017

SAFE HARBORS STATEMENT This presentation contains forward-looking statements within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995 (PSLRA) and "forward-looking information" within the meaning of applicable Canadian securities laws. These forward-looking statements are neither historical facts nor assurances of future performance and reflect Waste Connections’ current beliefs and expectations regarding future events and operating performance. These forward- looking statements are often identified by the words “may,” “might,” “believes,” “thinks,” “expects,” “intends” or other words of similar meaning. All of the forward - looking statements included in this presentation are made pursuant to the safe harbor provisions of the PSLRA and applicable Canadian securities laws. Forward-looking statements involve risks and uncertainties. Forward-looking statements in this presentation include, but are not limited to, statements about our financial outlook, return of capital to shareholders, expected benefits of the divestiture program, potential acquisition opportunities and a potential dividend increase. Important factors that could cause actual results to differ materially from those in the forward-looking statements include, but are not limited to, risk factors detailed from time to time in filings that have been made by the Company with the U.S. Securities and Exchange Commission and the securities commissions or similar regulatory authorities in Canada. You should not place undue reliance on forward-looking statements, which speak only as of the date of this presentation. Waste Connections undertakes no obligation to update the forward-looking statements set forth in this presentation, whether as a result of new information, future events, or otherwise, unless required by applicable securities laws. 2

WCN: INVESTMENT HIGHLIGHTS  Third largest solid waste company in North America  ~$21 billion enterprise value; ~$11 billion assets; 15,000 employees  Differentiated strategy…Differentiated results  Only company focused on secondary and exclusive markets  Sector-leading EBITDA and free cash flow margins  Sector-leading conversion of EBITDA to free cash flow  Completed acquisition of Progressive Waste Solutions in June 2016  Multiple levers to drive further value creation  Well positioned for additional strategic growth opportunities  Active current M&A environment  Proven management team creating substantial stockholder value  Over 2x the shareholder return of WM and RSG and almost 4x the return of the S&P 500 over the past decade  2016 was our 13 th consecutive year of positive shareholder returns 3

OUR DIFFERENTIATED STRATEGY  Success in solid waste industry is driven by:  Market selection  Asset and contractual positioning  Execution at the local level Our Focus:  Exclusive markets  Vertically integrated or non-integrated  Competitive markets  Secondary markets with high collection market share  Vertically integrated or disposal neutral Strategic Implications:  Lower customer churn rates => comparably better price + volume growth  Not dependent on behavior or execution of other national players  Resilient in a weak economy; levered to improving economy  Collection => more profitable and with higher barriers to entry 4

TARGETING ATTRACTIVE MARKETS Integrated Operations Non-Integrated Operations #1 EBITDA margin #3 EBITDA margin Exclusive Markets: #1 EBIT margin #2(tie) EBIT margin #1 FCF margin #2 FCF margin #1 ROA #2 ROA #2 EBITDA margin #4 EBITDA margin Competitive Markets: #2(tie) EBIT margin #4 EBIT margin #3 FCF margin #4 FCF margin Attractive if #3 ROA #4 ROA High Mkt Share & Disposal Neutral Note: Rankings reflect relative attractiveness to WCN 5

CURRENT FOOTPRINT: 85% US & 15% CANADA 6

WCN: COMPARATIVE METRICS Adjusted EBITDA* as % of Revenues Adjusted FCF* as % of Revenues 20.0% 35.0% 16.0% 30.0% 12.0% 25.0% 8.0% 4.0% 20.0% 2015 2016 2017e 2015 2016 2017e WM RSG WCN WM RSG WCN  EBITDA to FCF Conversion: 2015 2016 2017e Waste Connections => 48% 51% 52% Waste Management => 37% 44% 40% Republic Services => 29% 33% 32% _______________________________________________________ Non-GAAP measures; as defined by companies, excluding divestitures. 7 2017e based on company guidance.

WCN: FINANCIAL HIGHLIGHTS Adjusted EBITDA* Revenue EBITDA EBITDA as % of Revenue $1,500 36.0% $5,000 $1,250 $4,000 30.0% $ Millions $1,000 $ Millions $3,000 24.0% $750 $2,000 18.0% $500 $1,000 $0 $250 12.0% 2013 2014 2015 2016 2017e 2013 2014 2015 2016 2017e Adjusted FCF/Share* Adjusted Free Cash Flow* FCF/share FCF FCF as % of Revenue 15.1% CAGR $3.00 $800 $2.50 $600 $ Millions $2.00 $400 $1.50 $1.00 $200 2013 2014 2015 2016 2017e 2013 2014 2015 2016 2017e ________________________________________________________________ 2017e based on July 2017 outlook * A Non-GAAP measure; see appendix for reconciliation tables. 8

WCN: 10-YEAR OUTPERFORMANCE 500 395% 400 300 181% 166% 108% 200 46% 100 0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 WCN WM RSG S&P 500 S&P/TSX Composite Index As of 7/28/17 9

FINANCIAL DISCUSSION 10

2016 FINANCIAL HIGHLIGHTS  Revenue: $3.376 billion  Reflects seven months contribution from Progressive Waste operations  Solid waste strength  4.7% core price + volume growth  2.8% core price  1.9% volume  Adjusted EBITDA: $1.071 billion, or 31.7% of revenue  Increased EBITDA margins at Progressive Waste operations to ~30% in 2H ‘16 => up 500 bps  Adjusted free cash flow: $550.9 million, or 16.3% of revenue  51+% conversion of adjusted EBITDA to adjusted free cash flow  Increased dividend 24% and ended the year ~2.7x Debt-to-EBITDA 11

1H 2017 HIGHLIGHTS  Revenue: $2.267 billion  Solid waste strength: 5.0% price + volume growth  2.9% Price  2.1% Volume => disposal volumes above expectations  E&P waste revenues up 45% year over year  Margins back above corporate average => EBITDA minus capex exceeds 35% Same store recycled commodity sales up 55%   OCC prices up over 65%  Adjusted EBITDA: $706.4 million, or 31.2% of revenues  Adjusted free cash flow: $393.6 million, or 17.4% of revenue and 55.7% of Adjusted EBITDA 12

1H 2017 HIGHLIGHTS (cont’d)  Above average acquisition activity  Completed acquisition of Groot Industries in January 2017  $200 million revenue collection and transfer company  Largest private hauler in North Central Illinois => platform for additional M&A and increased internalization  Several LOIs signed and offers pending  Divestiture program nearing completion => expected benefits above expectations  Expected to reduce revenue by ~$100 million, increase EBITDA by ~$3 million  Retained certain divestiture candidates due to performance improvements => decreased revenue by ~$10 million and increased EBITDA by ~$12 million  Completed three-for-two stock split in June 2017  Leverage ratio ended Q2 2017 below 2.75x Debt/EBITDA 13

Q3 2017 OUTLOOK*  Benefitting from continuing tailwinds:  Strength in underlying solid waste volumes  Increased E&P waste activity and higher recycled commodity prices  Active M&A dialogue  Revenue: $1.185 billion  Solid waste core price + volume growth of 3.0% - 3.5%, reflecting first full quarter contribution from Progressive Waste operations  Adjusted EBITDA: 32.6% of revenue, or about $386.0 million  Up ~100 bps YoY, despite ~50 bps dilutive impact of Groot acquisition  Reflects 2 months negative margin impact from Chiquita Canyon permit change  Underlying margin improvement of ~175 bps net of Groot and Chiquita impacts _______________ 14 * As of July 26, 2017

2017 OUTLOOK *  Increased outlook in July on 1H ‘17 results exceeding expectations and continuing tailwinds  Revenue: $4.570 billion, up $120 million from original guidance due to:  Higher than expected solid waste volumes  Increased E&P activity  Higher recycled commodity prices  Adjusted EBITDA: $1.450 billion, or 31.7% of revenue, up $40 million  Adjusted free cash flow: $750 million, or 16.4% of revenue, up $25 million  Adjusted free cash flow per share => up ~20% YoY  Conversion of adjusted EBITDA to adjusted free cash flow => ~52%  Above average acquisition activity =>  Could utilize existing/projected excess cash flow over the next few quarters  Positioned for another double digit percentage dividend increase in October _______________ * As of July 25, 2017 15

NON-GAAP RECONCILIATION SCHEDULES 16