Concrete Pumping Holdings, Inc. · NASDAQ:BBCP
Concrete Pumping — Q3 2020 Earnings Presentation
35 slides from Concrete Pumping's earnings presentation, Sep 9, 2020
Slide 1: Investor Presentation | September 2020
NASDAQ: BBCP INVESTOR PRESENTATION | September 2020
Slide 2: Disclaimer
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Slide 3: Who We Are
Who We Are * We are the largest! U.S. & U.K. concrete pumping service provider with a high-growth concrete waste management service (Eco-Pan) + We area specialty service provider + Experienced professionals operate a fleet of highly technical equipment + Our clients are construction companies; we in
Slide 4: Business Overview
Business Overview Concrete Pumping mommane- BUMEREAR + Largest concrete pumping service provider in the US. with “138% market share (Brundage-Bone + Capital) & the U.K? with “3436 market share (Camfaud) © + Optimize utilization through broad geographic footprint & comprehensive suite of equipment co
Slide 5: Why Invest in CPH?
Why Invest in CPH? Largest player’ in a growing industry (~13% U.S. share, “34% U.K, share) * Scale provides competitive advantagesin serving customers, purchasing fleet utilization * Pumping continues to gain share from traditional methods strong financial profile & unit economics + Attractive EBIT
Slide 6: Industry-Leading Team Highly Aligned with Shareholders
Industry-Leading Team Highly Aligned with Shareholders * Company employees own 12%! * CEO with ~40-year industry tenure owns 3% * CPH backed by private equity firm Argand Partners who owns 27% * Firstinvested in late 2018 at $10.20/share + Further investment to support Capital Pumping transaction *
Slide 7: Strong Track Record of Growth
Strong Track Record of Growth 10 on 1 [| : Net Capital Expenditures (Capex) ‘Adjusted EBITDA Less Net Capex & Cash Conversion et Reve tetas coment a so NASDAQ: BBCP| 7
Slide 8: Why Clients Choose CPH
Why Clients Choose CPH i PH Competitive Advantages Concrete Placement is we es Highly Critical & Time Sensitive DCMI = 30+ years of successful operating history ICOM @ Experienced and knowledgeable operators Need for Faster, Safer & Higher Quality Service “Advantages of concrete pumping SIREN = More
Slide 9: Unrivaled Geographic Footprint in Two Countries
Unrivaled Geographic Footprint in Two Countries #1 Player’ in Each Region Served for All Business Segments US. Concrete UX. Concrete a Corporate Pumping. Pumping. il Headquarte e e e * Legend: 4 of Locations: “0 “30 y Hof Equipment Units: 730 70 a US. Footprint U.K. Footprint NASDAQ: BBCP 9
Slide 10: Industry Leader in a Growing Sector
Industry Leader in a Growing Sector ~7x Larger Than Nearest Competitor in U.S., ~10x in U.K." U.S. Concrete Pumping Industry Market Share* U.K. Concrete Pumping Industry Market Share* sofeoneete sof conc mag Spee) Aone ssen) ws com ~$140M Industry size ~$1.75B Industry size my all a Others there era
Slide 11: Diversified Regional & End Market Exposure
Diversified Regional & End Market Exposure End Market Exposure! Infrastructure = Education Commercial + Roads & bridges + Utlities * Distribution centers + Energy + Healthcare ‘High rise + Hospitality & entertainment + Mixed use retail + fice buildings + Retall + Homes + Sitework & foundations) land
Slide 12: Favorable Business Conditions
Favorable Business Conditions U.S. Concrete Production’ ‘$krona U.S. Construction Spending Across End-Markets* eeaicgg a os Public Private Non- Residential : a 351 3932 Construction Residential Construction ae Construction U.S. Housing Starts? “ses gmatn etc ere 1NasOna: BacP| 12 eualtdciglonrsacon
Slide 13: Advantages of Our Scale
Advantages of Our Scale Purchasing benefits for fuel, OEM capex purch Breadth of services to service large, more complex jobs Trained operators with a leadingtrack record of safety Fleet availability to match customer demand & requirements Higher utilization leadsto higher revenue per equipment In o
Slide 14: Strong Unit Economics
Strong Unit Economics HOLDINGS We aim to generate excellent returns on our capital expenditures Concrete Pumping Unit Economics Eco-Pan Unit Economics “1,9 Years 20 Years ayback Period NASOAG: BBCP) 18
Slide 15: Disciplined Approach to Fleet Management
CONCRETE ee as PUMPING Disciplined Approach to Fleet Management PH Fleet Overview frames eto 5 on ee) = We own our entire fleet (no leasing) Equipment Type Fleet Count AverageAge Eseected Usefull * Employ qualified mechanics to ensure UsnaaH 255 200 a fleet is well maintained saa aa ina mA * Leverag
Slide 16: Disruptive Concrete Waste Management Solution
Disruptive Concrete Waste Management Solution Eco-Pan U.S. Market Opportunity Washout Method Alternatives sesame! {Watt Key Factors for Increased Penetration of Eco-Pan How We Execute Y Leverage our concrete pumping footprint Y Driveincreasing route density ¥ Environmental protection & violation avo
Slide 17: Proven M&A Platform
Proven M&A Platform The Recent Capital Transaction Has Been Transformative Acquisitions Since 2015 = Acquirer of Choice: Completed 45+ acquisitions since — 1983 (avg. estimated acquisition Adjusted EBITDA eran onic multiples! <4.5x) ‘Multiple! = Benefits of Scale: Track record of increasing Adjusted
Slide 18: Q3 2020 Financial Performance
Q3 2020 Financial Performance $787 s77a $306 $300 mus.conrtewase US. Conrete waste : Management = UX Operations UK, Operations oe = gE a = Slight revenue increase to $58.6M driven by: = 18% revenue growth = Revenue declined to $9.2M inmost markets higher utilization of assets shutdowns * Revenue par
Slide 19: U.S. Concrete Waste Management Continuing Momentum
U.S. Concrete Waste Management Continuing Momentum = Fiscal Q3 saw continued growth due to: Improvements in majority of markets Higher utilization New leadership Price-per-pickup growing year-over-year ‘Avg. pansin the field (leading indicator for future pickups) are at very robust levels + Up 119%y
Slide 20: Financial Flexibility & Strong Liquidity
Financial Flexibility & Strong Liquidity HOLDONGs v Favorable Cash Flow Characteristics + Healthy operationalcash flow *+ Specialized, technical construction service drives strong, margins + 34.4% Adj EBITDA margin’ in first nine months of FY20, ‘well above specialty rental peer group + Daily invoic
Slide 21: Key Valuation Information
CONCRETE . . PUMPING Key Valuation Information HOLDINGS Trading Date @ 9/4/20) ptlsrectre Fanci! Overview Velution Meanre Stock Enterprise FY19 Pro Forma EV/FY19 Pro Forma Price Value? Adj. EBITDA? Adj. EBITDA $4.42 $647M $109M 6.0x $1.82/$6.10 $252M ~$310M 41% 3 weeKLow/ncn qui va? fra0is PRO FORMA
Slide 22: Attractive Financial Profile & Valuation Versus Peers
Attractive Financial Profile & Valuation Versus Peers EV/FY 2019 Adjusted EBITDA EV / (FY 2019 Adjusted EBITDA Net Capex) Bicount ve pec Rel Por (5) 8) ‘Bicount v2 Saely ental eer (8 (55) Dhcount spec Woste Pees (54%) Dieountv Soedoly Waste Pees (3 (85) 20.1% 15.64 ‘Average Specaky Average Specaky R
Slide 23: Appendix
CONCRETE PUMPING HOLDINGS Appendix
Slide 24: Company Evolution
Company Evolution Over the past 35 years, CPH has established a market-leading position and developed a strong platform for continued robust growth 1983-84: Fundes soemeaieeasion |] | agpctiat conte arene aoisinin || regres in Denn, smoinecongany Ese rumohies || wansatonrn inten cexpensen ito alee b
Slide 25: Select Projects
Select Projects Commercial build project (Portiand, OR) EcoPan (Port Rainier Square Project: (Seattle, WA) Bridge Project (Corpus Christi, TX)
Slide 26: Quarterly Financial Performance
Quarterly Financial Performance plea Increase in Cash Flow with Capital Pumping Acquisition S757 Big9 - 28 E sao ii i cod su i a a 12017 m 2018 2019 92020 sm2017 2018 2019 2020 Net Capex ‘ssurstnonina nani tewcalnaue Sete 20a ct isuoesaoNcat nce NASOAG: BBCP) 26
Slide 27: Business Seasonality
Business Seasonality + Typically ~55% of revenue is in the second half of the fiscal year, May through October * Less concrete is placed in the colder and wetter winter months, leading to greater business activity in the second half of the fiscal year + While CPH is a highly variable cost business,
Slide 28: Revenue Growth by Segment
Revenue Growth by Segment ‘Strong Historical Revenue Growth 283.0 BUS. Concrete Pumping - Operations Concrete Waste Management Services $1351 si103 sous ssa 1512 suos sis20 g sou Fro roi Frou Pros F016 Feo F018 Fr2018" sesgpeorescenmensces NASOAG: BBCP) 26
Slide 29: Reconciliation of CPH Net Income to Adj. EBITDA
Reconciliation of CPH Net Income to Adj. EBITDA Years Ended October 31, (sin thousands) 2016 2017 2018 2019 ‘Statement of operations information: Net income (loss) 6234 113 (32487) Interest expense, net 19516 22788 36.524 Income tax (benef) expense 4.454 3757 (7495) Depreciation and amortization 223
Slide 30: Reconciliation of CPH Net Income to Adj. EBITDA (cont'd)
Reconciliation of CPH Net Income to Adj. EBITDA (cont’d)
Slide 31: Reconciliation of Debt to Net Debt
Reconciliation of Debt to Net Debt Terloan outstanding. 3969S 3917 385.4 (53) Revolving loan draws outstanding 387 302 Bo (262) Less:Cash 6), (18.9) ico) 139 Net debe s #29 5 4238S 3953S (G75) 'NASOAQ: BBCP] 51
Slide 32: Shares & Other Equivalents Outstanding
Shares & Other Equivalents Outstanding ‘See eves votes rayon 20300 24030 caso sani sane sa7 8 sos 20900 sama Sonar 2200 maa * reno 22206 ‘shrs Undoing Mangement Fst peavey man 27900 rum pam 27000 isu axe a3 samacst sas on: ae seacee enum eum WNASDAG: BBCP] 52
Slide 33: Credit Facilities Summary at July 31, 2020
Credit Facilities Summary at July 31, 2020 Credit {$386 milion Term Loan Facility! Facilities $13 milion ABL Revolver? Interest Term Loan Facility Libor + 600%p= Rate 1» ABL Revolver Libor +175-225bps based on leverage levels 1+ Term Loan Facility: 7 Years (December 6th, 2025) 1» ABLRevolver 5 Years
Slide 34: Preferred Stock Terms
Principal $25 milion Tenor Perpetual er 2,850,900 shares ot $10.20 per share ‘The holder ofthe Prefered Stock may eletto conver its Preferred Stock into shares of Common Stock ata 1: rato at any time CER eE EELS sixronths after the Closing Date. The total numberof shares of Common Stock into which t
Slide 35: Company Investor Relations
CONCRETE PUMPING HOLDINGS =e Company Investor Relations
Concrete Pumping Holdings — Q3 2020 Earnings Presentation on 6ix