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 forward-looking statements. These statements relate to fu ture 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. PAGE 2
NORTH AMERICA MARKET SIZE * $2B * Company estimate PAGE PAGE 3
ENVIRONMENTAL GROUND PROTECTION Large Scale Infrastructure Projects SAFETY PROJECT EFFICIENCY PAGE PAGE 4
PIPELINE OIL & GAS TRANSMISSION & DISTRIBUTION CONSTRUCTION PAGE PAGE 5
INDUSTRIAL $76 M MATTING ASSET NBV 138,260 MATS Integral for larger infrastructure projects PAGE 6
INDUSTRIAL MATTING North Montney Mainline Project 18 K $11 M 7 UNITS REVENUE MONTHS PAGE PAGE 7
OUR ADVANTAGE FRAGMENTED REGIONAL LANDSCAPE CANADA USA CAN/USA OPERATIONS • Scale • Capital Resources • Reputation others STRAD STRAD PAGE PAGE 8
GROWING OUR CASH FLOW PAGE PAGE 9
SOLID FINANCIAL PERFORMANCE INDUSTRIAL MATTING REVENUE & EBITDA Industrial Matting 10.0 25.0 9.0 8.0 20.0 7.0 Revenue $MM EBITDA $MM 6.0 15.0 5.0 4.0 10.0 3.0 2.0 5.0 1.0 - - Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Canada USA EBITDA EBITDA Margin 36% † † Average of 2017, 2018 and Q1, Q2,Q3 2019 PAGE 10
Equipment Rentals EQUIPMENT 4.0 20.0 RENTALS 18.0 3.5 16.0 3.0 14.0 Revenue $MM EBITDA $MM 2.5 12.0 2.0 10.0 8.0 1.5 6.0 1.0 4.0 0.5 2.0 - - Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2017 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019 Canada USA EBITDA EBITDA Margin 13% † $62 M 5,860 ASSET NBV PIECES † Average of 2017, 2018 and Q1,Q2,Q3 2019 PAGE 11
CONSOLIDATED FINANCIAL PERFORMANCE REVENUE & EBITDA 70.0 250.0 60.0 200.0 50.0 REVENUE $MM 150.0 EBITDA $MM 40.0 30.0 100.0 20.0 50.0 10.0 Margin profile supports strong - - 2014A 2015A 2016A 2017A 2018A 2019 Fcst** 2020 Fcst** cash-flow growth Industrial Matting EBITDA Equipment Rentals EBITDA Forecasted EBITDA Revenue *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 PAGE 12
ROBUST FREE CASH FLOW $27.8M Free Cash Flow † †Based on Analyst Average Estimates for EBITDA and Corporate Estimates for 2019 PAGE 13
DURABLE FINANCIAL PLATFORM CAPITAL ASSETS $138M Funded Debt † Funded Debt to EBITDA 0.3 $9 M Disciplined approach to balance sheet strength *All figures as of September 30, 2019 † Funded debt includes bank indebtedness plus long-term debt less cash, excludes lease obligations PAGE PAGE 14
EQUATION FOR GROWTH } { • Capex DEBT + = STRONG LOW • NCIB CASH-FLOWS • Acquisitions Industrial Matting Generating Strong ROIC PAGE 15
STRATEGY TO DOUBLE OUR SIZE PAGE 16 PAGE
OUR MOMENTUM PIPELINE OIL & GAS 180,000 TRANSMISSION & DISTRIBUTION CONSTRUCTION Dec 31, 2021 138,260 Sept 30, 2019 92,200 June 30, 2018 Strategy to double our matting fleet by 2021 PAGE PAGE 17
STRONG GROWTH DEMAND FOR INDUSTRIAL MATTING 5x Industry growth in last 10 years (17% CAGR) } = { $2 B CANADIAN FLEET + 790,000 3,700,000 AMERICAN FLEET N.A. MARKET SIZE We’re still at the front -end of a broad industrial adoption *All numbers are Company estimates PAGE 18
LARGE SCALE PROJECTS Manitoba-Minnesota Keystone XL Trans Mountain Transmission Project DEMAND > SUPPLY Line 3 Coastal GasLink PAGE 19 PAGE
INVESTING IN MATTING TO ACHIEVE HIGH RETURNS POTENTIAL TO DOUBLE FIELD EQUIPMENT SALES FLEET BY 2021 $64 M Scaling to capitalize on the matting opportunity PAGE PAGE 20
SCALE SAFETY LOGISTICS REPUTATION PAGE 21 PAGE
RELENTLESS PURSUIT MATTING l HIGH GROWTH l HIGH RETURN PAGE 22 PAGE
S T R A D I N C .C O M PAGE 23
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