North American Construction Group Ltd. · TSX:NOA

North American Construction — Q1 2014 Earnings Presentation

19 slides from North American Construction's earnings presentation, June 2014

  1. Slide 1: Investor Presentation – First Quarter ended March 31, 2014

    Investor Presentation First Quarter ended March 31, 2014

  2. Slide 2: Forward-Looking Statements

    Forward-Looking Statements The information provided in this presentation contains forward-looking statements and information which reflect the current view of North American Energy Partners with respect to future events and financial performance. Actual results could differ materially from those con

  3. Slide 3: Company Overview

    Company Overview Mining  Founded in 1953  TSX and NYSE listings: “NOA”  Current share price: $8.02 (USD)  52 week high/low: $8.50/$4.12  Market capitalization: $278.3 million  Shares outstanding: 34.8 million  Average daily share volume: 104,923  Annual dividend of $0.08 per share (CAD), pay

  4. Slide 4: Restructuring Initiatives

    Restructuring Initiatives Pipeline Divestiture (2012)  $16.3 million of proceeds  $15.4 million applied to term B facility  ~$30 million working capital recovery Fleet Rationalization (2012/2013)  $46.8 million in capital leases refinanced  $23.6 million expected annual EBITDA benefit  $6.0 mi

  5. Slide 5: Shareholder Friendly Highlights

    Shareholder Friendly Highlights Share Purchase Program  In October, announced the intention to purchase 1,800,000 common shares for cancellation, this represented 5% of the issued and outstanding shares.  In December, completed the share purchase program. After the purchase, there were approximate

  6. Slide 6: Net Debt Reduction

    Net Debt Reduction $450 $424 $400 $355 $350 $300 Net Debt ($ Millions) Term B Facility $250 Term A Facility Series 1 Debentures less Cash $200 Capital Leases (including interest) Equipment Operating Leases $150 $127 $102 $100 $50 $0 December 31, 2011 December 31, 2012 December 31, 2013 Q1 ended Mar

  7. Slide 7: HC&M – Five Year Financial History

    HC&M – Five Year Financial History Revenue and EBITDA Margin $800 $700 $717 $600 $621 $636 $595 $500 $ Millions $470 $400 19% $300 11% 14% $200 9% 9% 7% $100 5% $130 $109 $0 2009 2010 2011 2012 2013 Q1 ended Mar 31, Q1 ended Mar 31, 2013 2014 7

  8. Slide 8: Stronger, Better Focused

    Stronger, Better Focused NAEP is now a pure-play heavy construction and mining (HC&M) focused contractor  Simplified business can better target productivity and cost efficiencies  Efficient, productive equipment fleet  Improved financial strength and capacity represent competitive advantage  Pos

  9. Slide 9: First On, Last Off

    First On, Last Off Project Development Phase (3-4 years) Ongoing Operations Phase (30-40 years)  Initial mine site development, project site  Overburden removal, mine infrastructure development, development, airstrips, piping reclamation, tailing ponds remediation, equipment and labour supply Buil

  10. Slide 10: Significant Heavy Construction & Mining Contractor in the Oil Sands

    Significant Heavy Construction & Mining Contractor in the Oil Sands  Expertise  30+ years in Northern Alberta’s harsh operating environment  Knowledge to come up with best solutions for customers  Broad Service Offering  Unique suite of services across project lifecycle  Operational Flexibilit

  11. Slide 11: Strategic Focus

    Strategic Focus  Pursue operational excellence in safety, productivity, customer satisfaction  Continued strengthening of balance sheet  Debt reduction, fleet rationalization and cash-flow improvement  Grow revenue from activity on existing mine sites, incremental work on new sites, and alternat

  12. Slide 12: Outlook for Revenue Growth

    Outlook for Revenue Growth  Increase in activity on existing mine sites as owners grow production  Ramp up at Kearl under new five-year agreement  Continued support of production efforts at Horizon, Base Mine, Millennium and Steepbank  Increase in work on new mine sites  Fort Hills mine  Pursu

  13. Slide 13: Active with Every Oil Sands Client

    Active with Every Oil Sands Client Key Customer Contracts  Mine not yet sanctioned SUNCOR  Site prep work is ongoing FORT HILLS CANADIAN NATURAL EXXON HORIZON KEARL TOTAL SHELL/ALBIAN  4-year master services agreement JOSLYN JACKPINE AND MUSKEG RIVER covering mining services & construction  5-ye

  14. Slide 14: Potential Production Expansion on Oil Sands Mine Sites

    Potential Production Expansion on Oil Sands Mine Sites Key Customer Production and Expansion SUNCOR FORT  Joslyn mine expected: 100,000 bbl/d HILLS CANADIAN NATURAL EXXON HORIZON KEARL TOTAL JOSLYN SHELL/ALBIAN JACKPINE AND MUSKEG  Syncrude current: 350,000 bbl/d RIVER  Syncrude expansion total p

  15. Slide 15: Thank You

    THANK YOU 15

  16. Slide 16: Appendix

    APPENDIX 16

  17. Slide 17: Piling Asset Sale Payment Terms

    Piling Asset Sale Payment Terms 1. $227.5 million cash paid at closing (less approximately $5.8 million in outstanding capital lease obligations, plus or minus customary working capital adjustments). In addition, we may receive up to $92.5 million in additional proceeds, contingent on the Purchaser

  18. Slide 18: HC&M – Heavy Equipment Fleet

    HC&M – Heavy Equipment Fleet Owned Equipment Heavy Trucks, Support 111 Equipment, 145 Heavy Trucks Loading Loading Equipment Equipment, 68 Support Equipment Leased Equipment Support Equipment, 44 Heavy Trucks, 59 Heavy Trucks Loading Equipment Loading Support Equipment Equipment, 20 18

  19. Slide 19: HC&M – Heavy Equipment Fleet

    HC&M – Heavy Equipment Fleet Heavy Equipment Fleet Category Own Lease Rental Total SHOVELS 4 2 0 6 EXCAVATORS (≥100T) 11 3 0 14 EXCAVATORS (<100T) 53 15 3 71 RIGID FRAME TRUCKS (>200T) 40 26 0 66 RIGID FRAME TRUCKS (100T to 200T) 56 18 0 74 RIGID FRAME TRUCKS (<100T) 6 2 0 8 ARTICULATED TRUCKS 9 13

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