Investor Presentation January 2019 Disclaimer This presentation - - PowerPoint PPT Presentation

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Investor Presentation January 2019 Disclaimer This presentation - - PowerPoint PPT Presentation

Investor Presentation January 2019 Disclaimer This presentation contains forward-looking information within the meaning of applicable securities laws. Words such as "may", "will", "should", "anticipate",


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Investor Presentation

January 2019

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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, including that the proposed transaction will be completed and the expected low double-digit accretion to the 2019 adjusted EPS will be achieved, 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 other 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 of 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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A G L O B A L L E A D E R

Assurance Through Integrity, Technology & Execution

Assurance

Integrity Execution Technology

HSE Quality Business Ethics Proven Track Record Global Reach and Scale Certainty Assured Innovative Solutions Materials Science Partner Network

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Increasing Public / Regulatory Scrutiny

  • 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

Building on Long-Term Fundamentals

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

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The Shawcor Difference

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Technology Integrity Execution

HSE

  • Incident & Injury Free
  • Commitment & Leadership

Quality

  • Continuous Improvement
  • Delivery as Promised

Business Ethics

  • Policies & Standards
  • Compliance & Auditing
  • Accountability

Innovative Solutions

  • 179 patents, 140 patents

pending, 86 proprietary formulations

  • Integration – Discrete

products to systems

Materials Science

  • Formulations
  • Application
  • Environmental testing
  • Inspection

Partner Network

  • Institutes
  • Suppliers & Customers
  • Equity Investments

Proven Track Record

  • All major E&P’s
  • All major producing regions

Global Reach & Scale

  • >80 locations
  • Mobile Technology
  • International skilled

workforce

  • Strong balance sheet

Certainty Assured

  • Manufacturing &

Process Engineering

  • Project Management

Leadership

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S H A W C O R T O D A Y

A Global Energy Services Company

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Broad product and service offering – a powerful competitive advantage

ZCL*

*ZCL acquisition subject to shareholder, regulatory, and other approvals expected early in the second quarter of 2019.

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G R O W T H T H E M E # 1

Pipeline Performance

The Opportunity Leverage our leading pipe coating products, services and systems into innovative solutions that extend the life of pipeline assets and/or expand operating envelopes.

  • Market size $ 4.5 Billion, Shawcor share ~22%

2019 Priorities

  • Win and execute large strategic projects
  • Leverage the products platform to grow

the catalogue of solutions being offered

  • Strategically positioning assets to

address activity dynamics

  • Technology developments to increase

functionality, durability and mitigate execution risk Market Size Addressable Market: >$4.0 Billion, Shawcor share >20%

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G R O W T H T H E M E # 2

Composite Production Systems

The Opportunity Expand the use of advanced polymer based pipe, fittings and associated components in the production of oil and gas reservoirs

Note: Shawcor market share based on 2015 Revenue on a proforma basis

2019 Priorities

  • Proactively manage capacity to match

increased market demand

  • Expansion of the portfolio through the

addition of large diameter platform, enhancements to the core product and additional geographies

  • Expansion into adjacent markets: water

and wastewater, mining and fuel Market Size Addressable Market: $5 Billion, Shawcor share >5%*

*Addressable market estimate excludes ~$700MM North American opportunity available through ZCL acquisition

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G R O W T H T H E M E # 3

Integrity Management

The Opportunity Develop measurement and data technology and systems to enhance the

  • perational continuity and efficiency of oil and gas infrastructure assets

Note: Shawcor market share based on 2015 Revenue on a proforma basis

2019 Priorities

  • Scale up to meet the increased demand

in USA gathering and large diameter transmission lines and international

  • ffshore
  • Build field services leadership
  • US midstream expansion through integrity

and engineering services Market Size Addressable Market: $1 Billion, Shawcor share >30%

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G R O W T H T H E M E # 4

Oilfield Asset Management

The Opportunity Improve customer’s oilfield asset utilization, especially in unconventional production, by providing asset management, inspection and repair services

Note: Shawcor market share based on 2015 Revenue on a proforma basis

2019 Priorities

  • Scale to match activity fluctuations
  • Expand products and services beyond

drilling

  • Data enablement of Asset Management

workflow Market Size Addressable Market: $0.8 Billion, Shawcor share >10%

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G R O W T H T H E M E # 5

Connection Systems

Note: Shawcor market share based on 2015 Revenue on a proforma basis

The Opportunity Application of advanced materials and highly engineered speciality solutions to provide reliable control and instrumentation connectivity throughout automotive, transportation, utilities, and oilfield applications.

2019 Priorities

  • Address capacity constraints
  • Leverage proven systems differentiation

across all geographies

  • Technology developments to expand core

product applications for higher voltage and extreme environments Market Size Addressable Market: >$10 Billion, Shawcor share >2%

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Portfolio Strategy is providing Confidence 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

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  • Revenue in excess of $4 Billion
  • Leading market positions in >$20 Billion available

market

  • Platform of 5 focused businesses, each >$300M
  • Reduced financial performance variability through

recurring revenues >85%

S H A W C O R V I S I O N

A Global Integrated Energy Services Company

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Investor Presentation

January 2019