North American Construction Group Ltd. · TSX:NOA
North American Construction — Investor Presentation (December 2024)
30 slides from North American Construction's investor presentation, December 2024
Slide 1: Investor Presentation
Investor Presentation December 2024 NORTH AMERICAN CONSTRUCTION GROUP 1
Slide 2: Safe: Everyone Gets Home
EVERYONE GETS HOME OC) antnican = Cmeckeuan ff yssreay <> CONSTRUCTION GROUP NUNA
Slide 3: Heavy Equipment & Civil Earthworks
THE SUCCESS OF EVERY RESOURCE DEVELOPMENT & MAJOR INFRASTRUCTURE PROJECT RELIES ON HEAVY EQUIPMENT & CIVIL EARTHWORKS NORTH AMERICAN CONSTRUCTION GROUP 3
Slide 4: Founded in 1953 & 1966: Experience Matters
FOUNDED IN 1953 & 1966 EXPERIENCE MATTERS Thousands of projects Since the Since the Since the Since the completed over 1950’s 1960’s 1970’s 1980’s seven decades Infrastructure Queensland Fort McMurray Canadian projects mining region oil sands resource region industry NORTH AMERICAN CONSTRUCTION GROU
Slide 5: What We Do: Mining Services & Civil Construction
WHAT WE DO: MINING SERVICES & CIVIL CONSTRUCTION Equipment and Canadian resources, 5% component sales, 5% Canadian oil Time & material, 65% Equipment & Unit rate, 20% Civil construction, sands region, component sales, 5% 10% 25% Western Australia, 10% BY BY BY CONTRACT CUSTOMER Queensland RESOURCE &
Slide 6: Global Operations
GLOBAL OPERATIONS $1.4B-$1.5B estimated 2024 revenue generated from over 50 diversified sites across three countries 1,100 heavy equipment assets replacement cost over $3.0 billion 3,500 employees Over 90% of employees are operations and maintenance personnel NORTH AMERICAN CONSTRUCTION GROUP 6
Slide 7: MacKellar Group: Growth Engine of NACG
MACKELLAR GROUP A platform for growth – October 1, 2023 – strategic acquisition of MacKellar Group provided large-scale operating platform, immediately bringing Australia to 50% of overall business Growth Engine of NACG • Strongest contractor market in the world • Longer-term contracts per project (
Slide 8: The Equipment Fleet
THE EQUIPMENT FLEET PAYLOAD / FLEET REPLACEMENT CAPACITY COUNT COST ($M) Ultra-class & up to 400t 193 $1,356 +200-ton trucks Haul trucks up to 150t 237 707 Large capacity up to 61m3 26 307 shovels Loading units up to 10m3 301 270 Dozers & graders 290 750 Support fleet 73 74 1,120 $3.5 billion less t
Slide 9: What Differentiates Us: Equipment Maintenance
WHAT DIFFERENTIATES US: EQUIPMENT MAINTENANCE • Over 90% of maintenance activities completed in-house • Approximately 30% of tradesperson in apprentice programs • 30% to 50% cost savings on full machine “zero-hour” rebuilds • Centrally located maintenance facilities (Canada & Australia) • Equipment
Slide 10: Equipment Telematics
EQUIPMENT TELEMATICS REAL-TIME MACHINE MONITORING 1. Maintenance alerts • Telematics monitoring over 375 units on a real-time basis with alerts triggered for non-routine metrics • Early warnings safeguard components resulting in increased utilization and lower cost repairs 2. Operational support • H
Slide 11: The Winning Formula: Maximizing Equipment Utilization
THE WINNING FORMULA: MAXIMIZING EQUIPMENT UTILIZATION1 90% Australian fleet ← target: +85% 80% 84% ← Canadian fleet 70% target: +75% 60% 51% 50% 40% Canada Australia 30% Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2020 2021 2022 2023 2024 Fleet in Australia will achieve 5% to 10% higher utili
Slide 12: Barriers to Entering Our Business
BARRIERS TO ENTERING OUR BUSINESS Upfront fleet Expensive, capital-intensive, acquisition long lead times Maintenance Reliance on third parties not capability economically competitive Indigenous Limited Tier 1 partners partnerships available Safety Requires demonstrated record consistent safe perfor
Slide 13: Our Indigenous Partners
OUR INDIGENOUS PARTNERS Productive partnerships with strong track record Essential qualification for majority of proposals Spending thresholds for impacted Indigenous regions Collaborative investment opportunities Indigenous employment & community development NORTH AMERICAN CONSTRUCTION GROUP 13
Slide 14: High-Quality, Well-Established Customers
HIGH-QUALITY, WELL-ESTABLISHED CUSTOMERS NORTH AMERICAN CONSTRUCTION GROUP 14
Slide 15: FAQ: Why Do Our Customers Use Contractors?
FAQ: WHY DO OUR CUSTOMERS USE CONTRACTORS? Top reasons 1 2 Avoidance of multi-billion capital-intensive investment Peak shaving of fleet required by mine plan • In addition to initial purchase, heavy equipment • Primary example is the required fleet to requires significant ongoing capital spending u
Slide 16: Typical Example - Opening a New Mining Area
TYPICAL EXAMPLE - OPENING A NEW MINING AREA 400T owner Electrical equipment [substation] 200T NACG haul truck NORTH AMERICAN CONSTRUCTION GROUP 16
Slide 17: Mining in Australia
MINING IN AUSTRALIA ACTIVE AUSTRALIAN PROJECTS Mining is a cornerstone of the Australian economy (~15% of GDP) 350 operating mines (one third in WA / one quarter in Queensland) Contract mining scopes considered routine (10x the size of Canada) MacKellar volumes represents less than 5% of overall sco
Slide 18: Upside for MacKellar to Expand Presence in Key Australian Mining Regions
UPSIDE FOR MACKELLAR TO EXPAND PRESENCE IN KEY AUSTRALIAN MINING REGIONS +100 Queensland Western Australia PRODUCING Coal +50 Iron Ore MINES PRODUCING MINES 8 MacKellar presence 10 STABLE COAL PRODUCTION IN GROWING IRON ORE PRODUCTION IN QUEENSLAND WESTERN AUSTRALIA 300 900 800 250 700 200 600 500 1
Slide 19: Canadian Oil Sands Region
CANADIAN OIL SANDS REGION ANNUAL OIL SANDS PRODUCTION (KKB/D) Life of mine projections out to 2060 4,000 High developments costs, low operating costs 3,500 Producers maximizing throughput & lowering cost per barrel 3,000 2,500 Steady growth in production over past 15 years 2,000 Record quarterly pro
Slide 20: Equipment Required to Increase Production
EQUIPMENT REQUIRED TO INCREASE PRODUCTION Based on producer expectations, mining in the oil sands region set to increase 100,000 barrels per day by 2026 100 x 400-ton trucks 1 barrel requires 4 tons of material to moved Ä 4 tons per barrel x 100 kbpd x 365 days 9 x 800-ton Ä 150 million additional l
Slide 21: Our Oil Sands Fleet
OUR OIL SANDS FLEET Over 200 large capacity assets, of which 115 are haul trucks, are fully engaged → Large capacity haulage fleet equivalent to 80 400T-sized trucks → This fleet moves about 120 million tons per year 1 → 25% of Canadian fleet contributing 75% of oil sands revenue → January utilizati
Slide 22: Current Landscape of the Oil Sands Region
CURRENT LANDSCAPE OF THE OIL SANDS REGION Revenue by contract type Key takeaways for NOA Equipment Rentals Equipment 1. Throughput in the oil sands 2% Time & Rentals region increasing Unit rate 15% Materials 24% 30% 2. Strong demand for heavy equipment remains 3. Contracting structures have changed
Slide 23: Organic Growth
ORGANIC Three areas Displacing higher cost Mining in Quebec & Projects in U.S. & Australia GROWTH of focus contractors in Australia Northern Ontario Criteria we look for: • Large earthmoving scopes • Blue-chip creditworthy customers • Consistent historical production • Multi-year agreements What we
Slide 24: Bid Pipeline
BID PIPELINE ESTIMATED PROJECT COMMENCEMENT TIMING 2024 2025 2026+ Projects in the active procurement process Potential contract extensions Upcoming bid opportunities Australia – Queensland, WA, NSW Diversified resources & geography Canadian oil sands region Size = $100m scope BID PIPELINE1 CONTAINS
Slide 25: Mining: Steady and Growing
MINING: STEADY AND GROWING The mining customers we service operate multi-decade mines requiring large earth moving and are generally not sensitive to commodity price fluctuations PRIMARY SECONDARY • oil sands • iron ore • gold • copper • coal • nickel • lithium • diamond EXPLORATION DEVELOPMENT PROD
Slide 26: Mining Opportunities in Canada
MINING OPPORTUNITIES IN CANADA Canada has the resources the world needs for the energy transition Growing production in gold, iron ore, metallurgical coal Indigenous partnerships prominent (over 500 agreements in place) IRON ORE PRODUCTION Mining in Canada 60 Gold, 25% Iron ore concentrates, 12% mil
Slide 27: Civil Infrastructure Climate Resiliency Projects
CIVIL INFRASTRUCTURE CLIMATE RESILIENCY PROJECTS Strong demand in the USA & Australia • Impacts of extreme weather events driving governments to sustainable, long-term damage mitigating infrastructure projects • Long lead times due to the multiple layers of approval and buy-in of municipal, state, a
Slide 28: NOA by the Numbers
NOA BY THE NUMBERS Operations 1,100 3,500 3 Over 50 Heavy Employees Countries Operating equipment sites assets Full year $1.0B 12.5% 16.0% 1.7x 2023 Invested Return on Combined Net debt metrics capital invested gross profit leverage 12.31.2023 capital margin 2025 $1.4B to $1.6B 26% to 30% $4.15 to $
Slide 29: Notes
NOTES NORTH AMERICAN CONSTRUCTION GROUP 29
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