Concrete Pumping Holdings, Inc. · NASDAQ:BBCP
Concrete Pumping — Investor Presentation (June 2019)
33 slides from Concrete Pumping's investor presentation, Jun 10, 2019
Slide 1: Investor Presentation June 2019
Investor Presentation June 2019
Slide 2: Disclaimer
Disclaimer ForwaréLookng Statements gee Tre ets Canpany” hu statements a predictor fire ever Weds sucha expect ‘esata rojet"bodet Tereza ‘asa rend ‘pl ay "Wl ‘cou, shoul beeen pres, "potetia 02h Industry and Marke Data istorcl an Projected Financial ifomaton Invatar Presetaton Non GAAP Finacial Meas
Slide 3: Business Overview
CONCRETE PUMPING co pa Concrete Pumping Holdings, Inc. Business Overview
Slide 4: Recent Developments
Recent Developments + Q2FY ed 10% and 1 (See Slide 25 for more etal) Financial + H1 FY 2019 Revenue and Adjusted EBITDA increased 10% and 3%, respectively (See Slide 2 for more etal) + HIFY acted by tions in CPH's West coast 's high-volume, jority to commence in the remainder of the year = On April
Slide 5: CPH Business Overview
CPH Business Overview Company Overview ‘= Leading concrete pumping provider in both the U.S. (Brundage- Bone) and U.K. (Camfaud) (On May 15, 2019 CPH closed the acquisition of Capital, a te pumping provider in Texas, wih $24 milion of Agjusted EBITDA in LTM Qt 2019 (Eco-Pan), with emerging presencei
Slide 6: Key Advantages of Business Model
Key Advantages of Business Model = Services rE ‘= Surcharge for h as fuel) ‘= High percentage of repeat customers plus strong referral network 'No possession of concrete 'No product lability risk Limited Project Risk 4 ‘= No fixed pr d c No Fixed Price Projects The daily pour, not the total projec,
Slide 7: CPH Geographic Footprint
CPH Geographic Footprint 2a. corporate Ha e rll Ke of Legend: * #of Locations: 128 6 U.S. Footprint U.K. Footprint yf 4 Selected CPH Projects Amazon Block 20 (Seattle, WA) ATT Stadium — Dallas Cowboys (Arlington, TX) Crossrail Liverpool Street Station (UK) aie ia = 5 e (ister esconcad one oh Buna Be
Slide 8: Key Investment Highlights
; Le Concrete Pumping Holdings, Inc. Key Investment Highlights CONCRETE PUMPING
Slide 9: CPH Investment Highlights
CPH Investment Highlights @q
Slide 10: Leader in an Attractive Sector with a Strong Brand
C1) a, Leader in an Attractive Sector with a Strong Brand Portfoli us. Comers Pomp tet (Peete Cont Parping Key Highlights ‘= Most competitors serve only local areas and lack breadth of equipment (typical feet of ~5-10 pumps) U.K. Concrete Pumping Industry PecartCance Pag Ses [ome [ i Scale Provides
Slide 11: Industry Leader in an Attractive Sector with a Strong Brand (cont'd)
t+) Industry Leader in an Attractive Sector with a Strong Brand Portfolio (cont'd) Clients choose CPH because of its differentiated capabilities that ensure high-quality, reliable service, i iperator availability, top-notch safety i i CPH Competitive Advantages Ce PI nt is ‘Highly Critical Av: More
Slide 12: Large, Growing Market Supported by Compelling Tailwinds
@ Large, Growing Market Supported by Compelling Tailwinds Concrete Placement Methods ‘Advantages of Concrete Pumping Speed and Efficiency Access / Precision of Placement Safety Consistent Placement Comparable All-In Cost
Slide 13: Large, Growing Market Supported by Compelling Tailwinds (cont'd)
Large, Growing Market Supported by Compelling Tailwinds (cont'd) US. Ho ist (ast) 135 a toe Ae 1018 ail TTT mieey 200% mbeet2% Delay oe ‘with mid o high single digit growth rate. interest rates. ‘Seasonal
Slide 14: Large, Growing Market Supported by Compelling Tailwinds (cont'd)
[2 ) Large, Growing Market Supported by Compelling Tailwinds (cont'd) @ us. eres ey ero ‘OOF 02 0 OS 05 OF OH we WO 2 HM IS 6 Te om Tax rotor, regulatory roe, Industry labor constraints extending recovery infrastructure spending extending the cycle © Concrete Pumping Gaining Share © Us. Pumped Concr
Slide 15: Diversified Platform Provides Cycle Resiliency
(3) Diversified Platform Provides Cycle Resiliency Diversity Provides Resiliency Geographic Diversity®... Even within the US® =US #K Sou w Weel wCenal » Southeast «Mourlan End Market® Service Line® Commercial = ReeMental = inreshucire O ‘= Goneete Pumping w Envroamental Sevices O
Slide 16: Differentiated Fleet Offering to Service Varied Project Requirements
(4) Differentiated Fleet Offering to Service Varied Project Requirements —— Pro Forma CPH's Disciplined. 1 “Fleet Management Equipment Type Fleet Count ‘Average Age ‘anit. oe ; replace equipment near the end Up to 33m 249 88 2 CUES 34m to 43m 309 94 2 ‘= Employ qualified mechanies to 44m to 51m 108
Slide 17: Significant Growth Opportunity from the Disruptive Eco-Pan Waste Management Solution
[5] Significant Growth Opportunity from the Disruptive Eco-Pan Waste Management Solution Concrete Waste Management Overview of concrete pump trucks . for contractors pepatnc deme : amar '= High profitability and strong historical growth its (Trucks (Pans) Options for Concrete Washwater Containment I
Slide 18: Significant Growth Opportunity from the Disruptive Eco-Pan (cont'd)
[5] Significant Growth Opportunity from the Disruptive Eco-Pan Waste Management Solution (cont'd) Eco-Pan U.S. Market Opportunity se5om+ Total US Market Opportunity Washout Method Alternatives Washout Pans Management Services Key Factors for Increased Penetration of Eco-Pan How We Execute A. Violati
Slide 19: Strong Unit Economics Across Both Concrete Pumping and Eco-Pan
Cs] Strong Unit Economics Across Both Concrete Pumping and Eco-Pan Concrete Pumping Unit Economics Eco-Pan Unit Economics BRUNDAGE- BONE fxn ~20 Years : sel a ee
Slide 20: Proven M&A Platform with Robust Pipeline
@ Proven M&A Platform with Robust Pipeline M&A Playbook Acquisitions since 2015 = Acquirer of Choice: Completed 45+ acquisitions since 1983 (avg. pre-synergy Adjusted EBITDA multiples <4.5x) oan Purchase Company Locations = Benefits of Scale: Track record of increasing Adjusted EBITDA margins of tar
Slide 21: Committed, Veteran Management Team
Cs] Committed, Veteran Management Team Current CPH Management & Employees Collectively Own 10%" of the Company i BB Bruce (Ee) tain oe) os Faud . bc CCPH: 2008 — Present . os 2016 - Present * Managing Director of CPH UK = CEO of Eoo-Pan: 1999 — * CFO of Wood Group PSN ‘aon Present Ameticas (LSE:WG):
Slide 22: Financial Overview
CONCRETE PUMPING Concrete Pumping Holdings, Inc. Financial Overview
Slide 23: Strong Financial Performance Supported by Diversification
Strong Financial Performance Supported by Diversification EEE Proven organic and acquisition growth with substantial runway on both fronts ‘Key Commentary ‘= Total annual revenue growth of ~18% since 2012 '= US pumping has grown by ~10% annually since 2012 ‘= Growth bolstered through ‘acquisitions,
Slide 24: Attractive Financial Profile
Attractive Financial Profile — Adjusted Revenue Pro Forma for Acquisitions" Adjusted EBITDA Pro Forma for Acquisitions" focl $238 sar : | tl - Frois—Fvamie = va017.=«=FYaMNB PF FY2OIB $5 ka! had 37 Fas Fraote=—=FY20N7 == FY201B «PF FYZOIB Fyis Frame F207 = F208 PF FYZONB capt Transaction mpact = a i
Slide 25: Q2 & H1 2019 Financial Performance
Q2 & H1 2019 Financial Performance 02.2019 Revenue & Adjusted EBITDA H1 2019 Revenue & Adjusted EBITDA Revenue Adjusted EBITDA® EBITDA Beme (Bemis emt) coms swzoe = tH2019 and UK. conte pumping . across + Growth in US. pail ofsetby bigh-votume, mature markets revenue and Adjusted EBITDA . a 7 (PH ha
Slide 26: Attractive Financial Profile & Valuation Versus Peers
Attractive Financial Profile & Valuation Versus Peers EV/FY 2018 Adjusted EBITDA EV (FY 2018 Adjusted EBITDA - Capex) ety Rental Pers (8) (37%) ‘Discount Specaty Rental Pers) =(40%) Dict Spot ate Ps 1879) Discounts Spciaty Waste Pers (8) (58%) 202 13% “ai 1024 6% 8m ‘Average of Specialy Average of S
Slide 27: Appendices
CONCRETE PUMPING Concrete Pumping Holdings, Inc. Appendices
Slide 28: Highly Variable Cost Structure
Highly Variable Cost Structure Cost of Sales: Personnel $70.9 85% Fuel 129 95% Parts, repairs & maintenance 236 95% Insurance 83 10% Other 42 80 % of Revenue 49.3% wt ‘SGBA Expenses: i Personnel $27.9 Facilities 47 Ato 34 Travel & entertainment 26 Communication 16 Professional fees 19 84 Total SG&A
Slide 29: Shares and Other Equivalents Outstanding
Shares and Other Equivalents Outstanding SSS EEe——w cone ‘Outstanding Satew! —Subetto Vesting Fy ites Fully tes ‘Shares 8y Type Pasha om 2 o0208 102% owen 2480900 Frenly Tadao Publi Shares 1078 nesi28 (CP Management 8 Erploye (Cues Fer) anison sae pd Paes so78 sa78 Penal Paco? 2ms.278 120.275 Non Ee
Slide 30: Management Incentive Plan Overview
Management Incentive Plan Overview Overview ‘= Management incentives aligned with shareholder interest and long-term success of the Company = Management 67 milion = ~80% of the plan jtable for vesting in i if CPHs stock price closes at or above $13.00, $16.00, and $19.00 per share, respectively, for
Slide 31: Reconciliation of CPH Net Income to Adjusted EBITDA
Reconciliation of CPH Net Income to Adjusted EBITDA
Slide 32: Reconciliation of CPH Net Income to Adjusted EBITDA (cont'd)
Reconciliation of CPH Net Income to Adjusted EBITDA (cont'd) ‘Second Fiscal Quarter Ending Apri 30, Six Months Ending Apri 3, (s000s) 2018 NetIncome (Loss) sent (s9.45) $22,168 (835,250) Interest pence, Net 5.126 9318 10213 16554 Income Tax (Benefit) Expense 1210 1572 (12334 (6.366) Depreciation & A
Slide 33: Reconciliation of Capital Net Income to Capital Adjusted EBITDA
Reconciliation of Capital Net Income to Capital Adjusted EBITDA Net income $13,551 sisg77 $14,207 $9415 4108 $5016 Interest xpence 168 ma 628 102 7 633 Interest income ey (2) co) ) (3) 5) Mise Income : : @ : : ca) DBA 264 9548 19949 2558 2887 127 Reported EBITDA $2720 $2127 $25,782 $8,108, $7,208 $2
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