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