Enerflex Ltd. · TSX:EFX
Enerflex — Investor Presentation (February 2024)
26 slides from Enerflex's investor presentation, February 2024
Slide 1: Enerflex Ltd. Corporate Presentation
FEBRUARY 2024 Enerflex Ltd. Corporate Presentation
Slide 2: Enerflex at a Glance
Enerflex at a Glance Transforming Energy for a Sustainable Future Committed to delivering the fuel of the future creating shareholder value as TSX NYSE we meet demand EFX EFXT Eastern Hemisphere Common shares Annual dividend outstanding (2) 124 MM $0.10/share North America Percentage of gross margin
Slide 3: Compelling Shareholder Value Proposition
Compelling Shareholder Global Market Leader in Natural Gas and Energy Strategically located where the resource is, with all product lines designed to Value Proposition Transition Solutions deliver on the world’s energy needs, including energy transition expertise Differentiated global platform strat
Slide 4: Executing Strategic Priorities to Drive Shareholder Value
Executing Strategic Priorities to Drive Shareholder Value STRATEGIC P RIORITIES 1 2 3 Maximize free cash flow to Complete the integration of Pay sustainable base dividend reduce leverage. Exterran and optimize and generate strong cash flow business across product lines to drive medium to long-term B
Slide 5: Positioned to Capitalize on Favorable Macro Trends
Positioned to Capitalize on Favorable Macro Trends As the demand for natural gas grows in the Company’s key operating regions, Enerflex is poised to enable the energy transition Total Energy Supply (1) Global Natural Gas Demand by Region (2) (exajoule) (BCM) 5,000 800 600 3,750 (3) Middle East (4) L
Slide 6: Market Leader in Modular Energy Solutions
Market Leader in Modular Energy Solutions Serving the growing need for natural gas and energy transition solutions through a differentiated and vertically integrated suite of products and services Critical energy infrastructure that Enerflex Energy owns, operates, and maintains under contract Infras
Slide 7: Attractive Opportunities in Energy Infrastructure
Attractive Opportunities in Energy Infrastructure Entire product range can be leased or run on a BOOM (Build, Own, Operate and Maintain) model across the world Expansive, global fleet built, engineered, and owned by Enerflex, with innovative in-house engineering delivering a tailored, Nearly 2 MM 25
Slide 8: A Full Range of Water Solutions for a Better Tomorrow
25+ years of experience designing, engineering, manufacturing A Full Range of Water and delivering treated waters solutions worldwide. Solutions for a Better Tomorrow 13 8B+ 30+ Patents Issued or Pending Total Barrels of Water Customer Projects Quickly and cost-efficiently treats in 26 Countries Tre
Slide 9: Successful Integration of Exterran
Successful Integration of Exterran Repaid Establishing a Premier Integrated Global Provider of Energy Infrastructure and Energy Transition Solutions $164 MM of debt during 2023 and reduced leverage Completed transaction in October 2022 ratio(1)(2) ratio from 3.3x at the end of Q4 2023 to 2.3x as at
Slide 10: Strategically Positioned to Enable the Energy Transition
Strategically Positioned to Enable the Energy Transition 40+ years of experience designing, engineering, manufacturing CO2 Emissions Reductions in the Energy Sector (1) and delivering energy transition solutions worldwide, facilitating (GtCO2 / year) global decarbonization efforts 0 Avoided Demand S
Slide 11: Operational & Financial Highlights Demonstrate Focus on Growth and Value Creation
Operational & Financial Highlights Demonstrate Focus on Growth and Value 2024 Outlook Creation Q4 2023 Operational Highlights Strong demand across business units and geographic regions Recurring sources expected to contribute 55% to 65% Business performance reflects broad based customer demand of gr
Slide 12: Focused on Strengthening Enerflex's Balance Sheet and Enhancing Financial Flexibility
Focused on Strengthening Enerflex’s Balance Sheet and Enhancing Financial Flexibility Net Funded Debt vs. Leverage Ratio Prioritizing debt reduction $1,050 3.5x • Repaid $164 MM of long-term debt during 2023 • Reduced bank adjusted net debt-to-EBITDA ratio to 2.3x at the end $1,000 of 2023 (3.3x at
Slide 13: Free Cash Flow Allocation
Disciplined Capital Allocation Strategy Dividends Discretionary Debt Focused on Sustainable Paying a sustainable base dividend is Reduction Shareholder Returns foundational to Enerflex’s total return proposition Debt repayment will remain a focus in 2024, with current leverage ratio of 2.3x expected
Slide 14: ESG Principles Align with our Strategy to Deliver Shareholder Value
ESG Principles Align with our Strategy to Deliver Shareholder Value Enerflex is committed to environmental stewardship, social responsibility, and high standards of safety and corporate governance Smaller Footprint, Bigger Global Safety Starts Locally Commitment to Diversity, Strong Corporate Impact
Slide 15: Strong Leadership Team Committed to Shareholder Value Creation
Strong Leadership Team Committed to Shareholder Value Creation Our management team lives the values that unite us: Marc E. Rossiter Preet Dhindsa David H. Izett Robert Mitchell integrity, commitment, President & Chief Senior Vice Senior Vice President, Senior Vice creativity, and success. Executive
Slide 16: Experienced and Engaged Board of Directors
Experienced and Engaged Board of Directors Oversees the management of Enerflex’s business to ensure long-term success, with a view to maximize shareholder value Fernando Assing Joanne Cox W. Byron Dunn Laura W. Folse James C. Gouin and ensure corporate conduct Director Director Director Director Dir
Slide 17: Enerflex is Well Positioned for Long-Term Success
Enerflex is Well Positioned for Long-Term Success Tomorrow Starts Today Global Market Leader in Vertically Financial Strength Sustainable Returns Natural Gas and Energy Integrated and Discipline to Shareholders Transition Solutions 1) Non-IFRS measure that is not a standardized financial measure und
Slide 18: Appendix
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Slide 19: Enerflex Displays a Best-in-Class Emissions and Safety Profile
Enerflex Displays a Best-in-Class Emissions and Safety Profile Lost Time Incident Rate Scope 1 and 2 GHG Emissions Intensity (incident rate per 200,000 work hours) (t CO2e/ Sales) 0.23 LTIR 14.69 0.14 0.15 decreased 35% since 2021 10.52 9.89 2021 2022 2023 8.76 Total Recordable Incident Rate (incide
Slide 20: Gross Margin by Product Line
Gross Margin by Product Line Energy Infrastructure Engineered Systems After-market Services ($ millions, %) ($ millions, %) ($ millions, %) 240 80% 30% 120 240 25% 24% 180 60% 90 20% 180 18% 15% 120 40% 60 120 12% 10% 60 20% 60 30 6% 5% 0 0% 0 0% 0 0% 2018 2019 2020 2021 2022 2023 2018 2019 2020 202
Slide 21: Gross Margin by Product Line (1)
Gross Margin by Product Line (1) Three Months Ended December 31, 2023 Energy After-market Engineered Total $ millions, except percentages Infrastructure Services Systems Revenue 782 209 179 394 Cost of goods sold Operating expenses 566 104 139 322 Depreciation and amortization 53 39 2 12 Gross margi
Slide 22: Energy Infrastructure Project Model
Energy Infrastructure Project Model Project Phase Engineer and Design Production Start-up Contract Renewal Project Scope Fee-based Operations Contract Award Operate and Maintain Build, Install, Commission Timeline Ranges from 6 Months to North America Majority of Contracts 10+ Years Depending on 1 t
Slide 23: Advisory Statements
. ~~ Advisory Statements gg OOD Tomorrow starts today ti 4 , a 23
Slide 24: Advisory Statements
Advisory Statements Advisory Regarding Forward-looking Information This presentation contains “forward-looking information” within the meaning of applicable Canadian securities laws and “forward-looking statements” (and together with forward-looking information, “forward-looking information and stat
Slide 25: Advisory Statements (continued)
Advisory Statements (continued) Future-Oriented Financial Information The 2024 guidance regarding the Company's future financial performance are based on assumptions about future events, including economic conditions and proposed courses of action, based on Management's assessment of the relevant in
Slide 26: Enerflex Ltd. contact details
FEBRUARY 2024 Enerflex Ltd. Suite 904, 1331 Macleod Trail SE Calgary, AB, Canada T2G 0K3 403-387-6377 IR@enerflex.com www.enerflex.com