Slide 1: Investor Presentation
INVESTOR PRESENTATION JULY 2024 WWW.NWPIPE.COM
Slide 2: Forward Looking Statements / Non-GAAP Measures
FORWARD LOOKING STATEMENTS 2 Statements in this presentation contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 and Section 21E of the Securities Exchange Act of 1934, as amended, that are based on current expectations, estimates, and proj
Slide 3: About Northwest Pipe Company
ABOUT NORTHWEST PIPE COMPANY 3 Leading manufacturer of water-related infrastructure products including engineered steel pressure pipe and precast and reinforced concrete products • Founded in 1966 and headquartered in Vancouver, WA • Strategically positioned to meet North America's growing needs for
Slide 4: Wide-Ranging Product Capabilities
WIDE-RANGING PRODUCT CAPABILITIES 4 Engineered Steel Trenchless Pipe Precast Environmental Water Pipe Concrete & RCP Solutions & Utilities
Slide 5: Strategic Footprint with Customer Access Across the U.S.
STRATEGIC FOOTPRINT WITH 5 CUSTOMER ACCESS ACROSS THE U.S. 20-year water infrastructure investment need by state Northwest Pipe is well positioned to serve its customers and states that are most in need of water 1 infrastructure investment. CORPORATE HEADQUARTERS ENGINEERED STEEL PRESSURE PIPE PLANT
Slide 6: Demand Drivers
DEMAND DRIVERS 6 • Aging water and wastewater systems • Heightened need for upgrades, repairs, and replacements of existing water infrastructure • Housing starts • Population growth and new population centers intensify the need for new water infrastructure • Rising demand on developed water sources
Slide 7: Large Addressable Market Opportunity
LARGE ADDRESSABLE MARKET 7 OPPORTUNITY Steel Pressure Pipe Concrete Pipe & Precast1 Solution-based NWPX’s products serve the Share: steel pressure pipe NWPX’s $3.5 – $148 M (~4%) and concrete and $5.0 B Share: precast structure $296 M (~56%) market for a wide range of use cases. Total Addressable Ma
Slide 8: Engineered Steel Pressure Pipe Segment
ENGINEERED STEEL 8 PRESSURE PIPE SEGMENT Well-Positioned Industry Leader • Manufactures large-diameter, high-pressure steel pipeline systems for use in water infrastructure applications, which are primarily related to drinking water systems • Products also used for hydroelectric power systems, waste
Slide 9: Precast Infrastructure & Engineered Systems Segment
PRECAST INFRASTRUCTURE & 9 ENGINEERED SYSTEMS SEGMENT Added core competency in precast concrete provides new opportunities for future growth • High-quality precast and reinforced concrete products and bar-wrapped concrete cylinder pipe typically used in non-pressure, gravity fed sewer and stormwater
Slide 10: Growth Strategy
GROWTH STRATEGY 10 Goal is to create transformational growth and profitability in order to drive shareholder value through organic growth “Product Spread” strategy and acquisitions Precast Product Spread Strategy Acquisition Strategy Level 1: • Continuing to seek accretive acquisition candidates in
Slide 11: Capital Allocation Strategy
CAPITAL ALLOCATION STRATEGY 11 Use of Cash Priorities: Organic Growth Accretive Acquisitions • Prioritizing organic growth through “Product Spread” • Evaluating potential M&A in the precast-related market strategy for ParkUSA with the goal of Precast becoming the same size as • Reinvesting in Precas
Slide 12: Strong Demand Drives Strong Performance
STRONG DEMAND DRIVES STRONG 12 PERFORMANCE Backlog1 and Order Book2 Revenue ($ Millions) ($ Millions) Maintained strong SPP backlog and Precast Grew SPP revenues by over 2x since 2017 and order book in 2023 more than tripled the size of the Company $372 with the addition of Precast $458 $444 $319 $2
Slide 13: Q2 2024 Highlights
Q2 2024 HIGHLIGHTS 13 • Backlog including confirmed orders1 of $348 million for the Engineered Steel Pressure Pipe segment • Strong order book2 of $62 million for the Precast Infrastructure and Engineered Systems segment Net Sales by Segment Gross Profit by Segment ($ Millions) ($ Millions) 35% $3.5
Slide 14: Corporate Responsibility
CORPORATE RESPONSIBILITY 14 CEO Scott Montross, “We are focused on investing in our workforce, health and safety programs, and social initiatives, while continuing to manufacture products that positively impact the environment. We see so much potential as we continue to innovate and bring new techno
Slide 15: Strategic and Operational Initiatives
STRATEGIC AND OPERATIONAL 15 INITIATIVES 1. Maintain a safe workplace where employees are proud to work 2. Improve performance through a persistent focus on margin over volume 3. Continue to implement cost reductions and efficiencies at all levels of the Company 4. Identify strategic opportunities t
Slide 16: Investment Highlights
INVESTMENT HIGHLIGHTS 16 • Well-positioned to benefit from historic strong backlog and growing market demand for both new and existing water infrastructure upgrades • Large addressable market provides opportunities for further expansion • Diversification strategy helps reduce impacts from market cyc
Slide 17: Appendix
APPENDIX
Slide 18: Strategic Acquisitions
STRATEGIC ACQUISITIONS 18 • Completed the acquisition of Geneva Pipe and Precast on January 31, 2020 for $49.4 million (~7.5x EBITDA) • Concrete pipe and precast concrete products, plants located in Utah • Products used for waste and storm water applications by cities, municipalities and local gover
Slide 19: Favorable SPP Market Dynamics
1 FAVORABLE SPP MARKET DYNAMICS 19 • U.S. water consumption equal to 82 gallons per person per Flow of SRF Funds From Federal day Government to State Agencies2 • Substantial non-revenue water loss: • 2.1 trillion gallons of treated drinking water lost annually DWSRF due to water main breaks (250,000
Slide 20: U.S. Water Infrastructure Needs
U.S. WATER INFRASTRUCTURE NEEDS 20 Total 20-year State Need by Water Infrastructure Project Category1 • The 20-year national water infrastructure need for across the U.S. is estimated by the 7th Drinking Water Infrastructure Needs Survey Total State Need: and Assessment (DWINSA) in 2021 at $625 $625
Slide 21: Eastern Market Update: Water Transmission Projects
EASTERN MARKET UPDATE: 21 WATER TRANSMISSION PROJECTS H.R.3684 Infrastructure Investment and Jobs Act has been signed into law adding $55 billion in federal funding for relevant, water infrastructure projects through Fiscal Year 2026. • Houston – Surface Water Program • Bidding 1,500 tons of pipe in
Slide 22: Western Market Update: Water Transmission Projects
WESTERN MARKET UPDATE: 22 WATER TRANSMISSION PROJECTS • California – Prop 1 $7.5 B Bond for Water Infrastructure • The Sites Reservoir – water storage project with over 30 miles of 144” pipeline; received $30 M in IIJA funding • Los Vaqueros Reservoir Expansion – program to provide substantial capac
Slide 23: July 2024
Northwest Pipe Company i PHAN JULY 2024 WWW.NWPIPE.COM