PRESENTATION TSX : SDY PIPELINE l OIL & GAS l - - PowerPoint PPT Presentation

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PRESENTATION TSX : SDY PIPELINE l OIL & GAS l - - PowerPoint PPT Presentation

January 2020 INVESTOR PRESENTATION TSX : SDY PIPELINE l OIL & GAS l TRANSMISSION & DISTRIBUTION l CONSTRUCTION PAGE FORWARD LOOKING STATEMENTS This presentation contains statements and information that constitute


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SLIDE 1 PAGE

INVESTOR PRESENTATION

PIPELINE l OIL & GAS l TRANSMISSION & DISTRIBUTION l CONSTRUCTION TSX : SDY

January 2020

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FORWARD LOOKING STATEMENTS

This presentation contains statements and information that constitute forward-looking statements. These statements relate to future events or to the Company’s future financial performance and involve known and unknown risks, uncertainties and other factors that may cause the Company’s actual results, levels of activity, performance or achievements to be materially different from future results, levels of activity, performance or achievements expressed or implied by such forward- looking statements. The use of the words “expect”, “plan”, “continue”, “estimate”, “anticipate”, “targeting”, “intend”, “could”, “might”, “should”, “believe”, “may”, or “will” and similar expressions are intended to identify forward-looking information or statements. Various assumptions were used in drawing the conclusions or making the projections contained in the forward-looking statements throughout this presentation. The forward-looking information and statements included in this presentation are not guarantees of future performance and should not be unduly relied upon. Forward-looking statements are based on current expectations, estimates and projections that involve a number of risks and uncertainties, which could cause actual results to differ materially from those anticipated and described in the forward-looking
  • statements. Such information and statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ
materially from those anticipated in such forward-looking information or statements. These factors include, but are not limited to, such things as the impact of general industry conditions, fluctuation of commodity process, industry competition, availability of qualified personnel and management, stock market volatility and timely and cost effective access to sufficient capital from internal and external sources. The risks outlined above should not be construed as exhaustive. Although management of the Company believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to have been correct. Accordingly, readers should not place undue reliance upon any of the forward-looking information in this
  • presentation. All of the forward looking statements of the Company contained in this presentation are expressly qualified, in their entirety, by this cautionary
  • statement. Except as required by law, the Company disclaims any intention or obligation to update or revise any forward-looking information or statements, whether
the results of new information, future events or otherwise. 2
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SLIDE 3 PAGE 3 PAGE *Company estimate

NORTH AMERICA

MARKET SIZE*

$2B

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ENVIRONMENTAL SAFETY GROUND PROTECTION PROJECT EFFICIENCY

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Large Scale Infrastructure Projects

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PIPELINE TRANSMISSION & DISTRIBUTION OIL & GAS CONSTRUCTION

PAGE
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INDUSTRIAL MATTING

138,260

MATS

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Integral for larger infrastructure projects

$76M

ASSET NBV

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INDUSTRIAL MATTING

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MONTHS

7 PAGE

18K

UNITS

$11M

REVENUE

North Montney Mainline Project

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OUR ADVANTAGE

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STRAD

PAGE

CAN/USA OPERATIONS

  • Scale
  • Capital Resources
  • Reputation

CANADA

FRAGMENTED REGIONAL LANDSCAPE

STRAD

USA

  • thers
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GROWING

OUR CASH FLOW

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INDUSTRIAL MATTING REVENUE & EBITDA

† Average of 2017, 2018 and Q1, Q2,Q3 2019

EBITDA Margin 36%†

SOLID FINANCIAL PERFORMANCE

  • 5.0
10.0 15.0 20.0 25.0
  • 1.0
2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0 10.0 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Revenue $MM EBITDA $MM

Industrial Matting

Canada USA EBITDA
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5,860

PIECES

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$62M

ASSET NBV

EQUIPMENT RENTALS

EBITDA Margin 13%†

† Average of 2017, 2018 and Q1,Q2,Q3 2019
  • 2.0
4.0 6.0 8.0 10.0 12.0 14.0 16.0 18.0 20.0
  • 0.5
1.0 1.5 2.0 2.5 3.0 3.5 4.0 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Revenue $MM EBITDA $MM

Equipment Rentals

Canada USA EBITDA
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CONSOLIDATED FINANCIAL PERFORMANCE

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Margin profile supports strong cash-flow growth

*Corporate EBITDA has been allocated between Industrial Matting and Equipment Rentals based on the revenue split for that fiscal year ** Average Analyst Estimates 2019 and 2020
  • 50.0
100.0 150.0 200.0 250.0
  • 10.0
20.0 30.0 40.0 50.0 60.0 70.0 2014A 2015A 2016A 2017A 2018A 2019 Fcst** 2020 Fcst** REVENUE $MM EBITDA $MM

REVENUE & EBITDA

Industrial Matting EBITDA Equipment Rentals EBITDA Forecasted EBITDA Revenue
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ROBUST FREE CASH FLOW

$27.8M

Free Cash Flow†

†Based on Analyst Average Estimates for EBITDA and Corporate Estimates for 2019
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DURABLE FINANCIAL PLATFORM

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Disciplined approach to balance sheet strength

CAPITAL ASSETS

$138M

Funded Debt to EBITDA 0.3

Funded Debt†

$9M

PAGE *All figures as of September 30, 2019 †Funded debt includes bank indebtedness plus long-term debt less cash, excludes lease obligations
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EQUATION FOR GROWTH

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  • Capex
  • NCIB
  • Acquisitions

=

LOW DEBT + STRONG CASH-FLOWS

{ }

Industrial Matting Generating Strong ROIC

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STRATEGY TO

DOUBLE OUR SIZE

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PIPELINE TRANSMISSION & DISTRIBUTION CONSTRUCTION OIL & GAS

Strategy to double our matting fleet by 2021

92,200 180,000

Dec 31, 2021 Sept 30, 2019 June 30, 2018

138,260

OUR MOMENTUM

PAGE 17
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STRONG GROWTH DEMAND FOR INDUSTRIAL MATTING

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We’re still at the front-end of a broad industrial adoption

*All numbers are Company estimates

790,000

CANADIAN FLEET +

3,700,000

AMERICAN FLEET

{ } =

$2B

N.A. MARKET SIZE

Industry growth in last 10 years (17% CAGR)

5x

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LARGE SCALE PROJECTS

DEMAND > SUPPLY

Trans Mountain Line 3 Keystone XL Coastal GasLink Manitoba-Minnesota Transmission Project

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INVESTING IN MATTING TO ACHIEVE HIGH RETURNS

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POTENTIAL TO DOUBLE FLEET BY 2021

$64M

SALES FIELD EQUIPMENT Scaling to capitalize on the matting opportunity

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SCALE LOGISTICS SAFETY REPUTATION

PAGE
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RELENTLESS PURSUIT

MATTING l HIGH GROWTH l HIGH RETURN

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S T R A D I N C .C O M