Willscot Holdings Corporation · NASDAQ:WSC

Willscot — Williams Scotsman International — SPAC Merger (August 2017)

33 slides from Willscot's SPAC merger presentation, Aug 21, 2017

  1. Slide 1: Business Combination between Double Eagle and Williams Scotsman

    Business Combination between Double Eagle and Williams Scotsman August 2017

  2. Slide 2: Disclaimer

    Disclaimer Important Information About the Transaction and Where to Find It In connection with the proposed transaction described herein (the “Transaction”), Double Eagle intends to file a registration statement on Form S-4 (the “Registration Statement”) with the SEC, which will include a proxy stat

  3. Slide 3: Transaction Overview

    Transaction Overview Investment in strong organic growth platform with >US$800m available for actionable consolidation Double Eagle Cash from the Trust Account; Committed Capital Founder Shares Rolling (1) Cash Consideration + 90% stake Total enterprise value: 10% Rollover Equity (2) in WS US$1.1bn

  4. Slide 4: Specialty Rental Services Market Leader in Modular Space & Portable Storage Solutions

    Specialty Rental Services Market Leader in Modular Space & Portable Storage Solutions Compelling growth platform with substantial capital committed to accelerate organic growth and M&A 1 US Adj. EBITDA (1) CAGR 2015-2018E; Fast Growing Business with Strong Momentum and Visibility 14% current run-rat

  5. Slide 5: Proven and Experienced Industry Veterans and Investors

    Proven and Experienced Industry Veterans and Investors „ 22 years industry experience, including Chairman, President & CEO of Williams Scotsman from 1994-2010 „ Served as Algeco Scotsman Non-Executive Chairman since April 2010 „ Also Non-Executive Chairman of the FTI Consulting Board, as well as Dir

  6. Slide 6: Innovative Modular Space & Portable Storage Solutions

    1 Innovative Modular Space & Portable Storage Solutions Established Brand with Strong Legacy of Innovation Key Williams Scotsman Differentiating Attributes Specialty rental services market leader providing modular space and 1 portable storage solutions to diverse end markets across North Customers v

  7. Slide 7: 14% CAGR in Organic US Adj. EBITDA

    1 14% CAGR in Organic US Adj. EBITDA Growth accelerating since 2015, driven by strong pricing, delivery volumes / units on rent and VAPS momentum Revenue (1) (US$m) Adj. EBITDA (1) (US$m) ƒ US is contributing ~90% of Adjusted EBITDA and growing organically at 14% 463 143 454 CAGR 438 428 57 131 17 1

  8. Slide 8: Strong Underlying Market Fundamentals

    1 Strong Underlying Market Fundamentals Strong Momentum in Leading Demand Indicators Diverse End Markets (4) with Positive Demand Outlook % CAGR 11.1% >50 10.3% Architectural Billing Index (ABI) >50 for 21 of the last 24 months Education Construction 10% 37% 5.7% Construction starts (1) still Gov't

  9. Slide 9: Commercial Strategy Delivering Outperformance

    1 Commercial Strategy Delivering Outperformance US Modular Space (1) Delivered Rates Driven by VAPS & Pricing US$ +11% CAGR 621 (VAPS: +26% CAGR) 535 176 121 385 404 ƒ Delivered rates grown by 42 66 over 50%, driven equally by pricing and VAPS Q1 13 (2) Q2 17 ƒ Embedded >US$40M revenue upside due to

  10. Slide 10: Scalable & Differentiated Operating Platform

    1 Scalable & Differentiated Operating Platform Commercial Processes Capital Management „ Monitor price & quoting performance „ Monitor pending orders „ Publish weekly rate realization and Weekly „ Manage fleet availability / movements discounting trends „ Manage work orders Sales & Operating Plannin

  11. Slide 11: Compelling Specialty Rental Unit Economics

    1 Compelling Specialty Rental Unit Economics IRR > 20% over 20 year unit life, with VAPS penetration lifting IRR to ~25% (1) Capital Investment Rapid Maintenance Proceeds Acquisition cost of ~$30K, incl. payback of Mid-life refurbishment Realized residual values average VAPS cost to equip unit of $2

  12. Slide 12: Flexibility to Manage Free Cash Flow Through Cycles

    1 Flexibility to Manage Free Cash Flow Through Cycles Maximizing FCF Energy Market Investing in Robust Investing in Growth Generation post GFC (1) Expansion Demand Growth ƒ Long-lived assets Avg. Annual Op. provide significant FCF (US$m): ~75 ~155 ~90 ~45 capex flexibility Avg. Annual Net Capex (US$

  13. Slide 13: Confidence in 2018 Projected Adj. EBITDA Delivery

    1 Confidence in 2018 Projected Adj. EBITDA Delivery 2017E Adj. EBITDA Bridge to 2018 Projected Adj. EBITDA (1, 2) US$m 2018 uplift from partial convergence of current AMR vs. ƒ US Q2 modular space delivered rates 2 delivered rates 4 (including VAPS) are 11 +2% 21% above current avg. (4) UOR AMRs and

  14. Slide 14: Significant Projected Adj. EBITDA Margin Expansion Potential

    Significant Projected Adj. EBITDA Margin Expansion 1 Potential Revenue Growth Levers are Highly Accretive to Margin Evolution ƒ Meaningful margin expansion as units are redeployed at current pricing; ~95% of AMR increases convert to ~300-500bps EBITDA (5) ~150bps ~33% ~150bps ~200bps ƒ >80% of VAPS

  15. Slide 15: Substantial Capital Available to Accelerate Growth

    2 Substantial Capital Available to Accelerate Growth Sources US$m % Uses US$m % (1) New Debt 490 38.4% WS Purchase from Algeco Scotsman 1,022 80.1% (2) (4) DEAC Equity Contribution 500 39.2% Algeco Group Rollover Equity 79 6.2% (3) TDR Equity Contribution 207 16.2% Cash on Balance Sheet 125 9.8% (4)

  16. Slide 16: Market Primed for Consolidation

    3 Market Primed for Consolidation Fragmented Markets Present Multiple WS Platform Capable of Integrating Targets of all Sizes Actionable M&A Opportunities EBITDA Scale Commentary Remainder: Top 2 Players: Highly c.33% of market ƒ WS announced combination Diversified with Modspace in 2016 (2) Nationa

  17. Slide 17: Significant Uplift in EBITDA through Synergies

    3 Significant Uplift in EBITDA through Synergies Illustrative Synergy Case Cost Synergy Categories Target (1) EBITDA 25% 25% Real Estate Post-Synergy Multiple Reduction due to Headcount Economies of Scale Cost 50% Operating Leverage +c.50% Synergies Commercial Convergence Post- Synergy „ “Plug and P

  18. Slide 18: Successful Previous Public Company Track Record

    4 Successful Previous Public Company Track Record Indexed to 100 190 +75% x2 +25% +47% $2.2bn acquisition by Algeco announced Share Price Outperform vs Revenue Adjusted EBITDA Performance Before S&P 500 Uplift (1) Uplift (1)(2) Take Private +75% 170 Stock price performance prior to Algeco Acquisitio

  19. Slide 19: Significant Valuation Upside to Key Peer Mobile Mini

    5 Significant Valuation Upside to Key Peer Mobile Mini Significant Multiple Expansion Potential 2018E EV / Projected Adj. EBITDA (1, 2) ƒ Similar specialty rental model with long-lived (3) 11.5x assets (1) 7.9x ƒ Williams Scotsman has a number of clear differentiators: ƒ Purer play on US economic gr

  20. Slide 20: Attractive Model and Compelling Growth Opportunity

    Attractive Model and Compelling Growth Opportunity 9 35 5 Months Contracted Revenue with Meaningful Rate Upside Average Duration of Contracts (1) 9 14% Strong Momentum in Core US Business 2015-18 Adj. EBITDA (2) CAGR 9 30% Margin Uplift from Market Leadership and Commercial Excellence 2018 Projected

  21. Slide 21: Additional Operating and Financial Information

    Additional Operating and Financial Information

  22. Slide 22: Williams Scotsman Snapshot

    Williams Scotsman Snapshot Specialty Rental Model With Growing Diversified End Market Exposure Contribution From VAPS 2016 Revenue by Customer SIC Code (1) 2016 Adj. Gross Profit Breakdown (2) Energy & Natural New & Rental Resources Unit Sales 11% Delivery & 10% Healthcare Installation 1% 3% Commerc

  23. Slide 23: Overview of Specialty Rental Fleet Products

    Overview of Specialty Rental Fleet Products Net Book Value % Total Net Model Description # of Units (US$m) Book Value • Modular units, maximum ease of installation and removal Mobile / Sales • Wide range of uses • Include: tile floors, AC/Heating, flexible partitions and toilet 26,000 259 31% Office

  24. Slide 24: Strong Momentum in Leading Revenue Indicators

    Strong Momentum in Leading Revenue Indicators Deliveries Net UOR (1) Growth +1,047 +11% 935 11,626 754 10,938 10,518 US ƒ US leading revenue indicators are at their strongest levels since 2005 -112 +683 2,752 +9% ƒ Other North America 294 indicators denote 2,497 stabilization of Other North America

  25. Slide 25: Modular Space Units on Rent and Utilization Rates

    Modular Space Units on Rent and Utilization Rates Modular Space – US 67.0% 70.8% 7 72.3% 68.7% 71.5% 73.8% 71.7% 72.7% 71.8% 73.1% Average # Units 35,245 35,074 35,205 35,780 35,568 35,552 35,819 35,602 ƒ Q2 US modular space on Rent 34,863 34,356 UOR at highest level in the last three years, highlig

  26. Slide 26: Cost / Profitability Overview

    Cost / Profitability Overview Adj. Gross Profit % (1) by Segment 80% 76% 74% ƒ Gross margin in US 54% 54% 56% Leasing and Services 39% positively impacted by strong pricing 25% 23% 27% environment, including 23% 22% VAPS 2014A 2015A 2016A ƒ Gross margin in Other US Leasing & Services US Sales North

  27. Slide 27: Historical Net Capital Expenditure Evolution

    Historical Net Capital Expenditure Evolution Net Fleet Capex (1) Analysis US Modular ƒ Priority given to VAPS Space 34,266 35,269 35,069 35,839 capex given strong UOR: growth potential, superior returns and 99 incremental margin delivery 15 71 ƒ Refurbishment is a key 16 part of fleet management 53

  28. Slide 28: 2017 Projected Adj. EBITDA to Operating Free Cash Flow Bridge

    2017 Projected Adj. EBITDA to Operating Free Cash Flow Bridge US$m (8) (7) VAPS ƒ Total Operating FCF before growth capex of US$77m (3) (48) Units 18 ƒ Expected level of net 122 maintenance capex of Net Maintenance US$35-40m (4) Capex (4) US$35-40m 77 ƒ Proceeds from rental unit sales of US$18m 2017

  29. Slide 29: Summary P&L, Balance Sheet & Cash Flow Items

    Summary P&L, Balance Sheet & Cash Flow Items Key Profit & Loss Items (US$m) (1) 2014 2015 2016 1H 2016 1H 2017 Leasing and Services Modular Leasing 309 301 284 143 142 Modular Delivery and Installation 83 83 82 40 42 Sales New Units 88 54 39 19 15 Rental Units 25 16 22 11 11 Total Revenues 505 454 4

  30. Slide 30: Summary P&L & Cash Flow Items: Modular – US

    Summary P&L & Cash Flow Items: Modular – US Key Profit & Loss Items (US$m) (1) 2014 2015 2016 1H 2016 1H 2017 Leasing and Services Modular Leasing 211 225 238 117 126 Modular Delivery and Installation 70 72 74 36 38 Sales New Units 59 43 35 17 13 Rental Units 19 12 18 9 9 Total Revenues 358 353 365

  31. Slide 31: Summary P&L & Cash Flow Items: Modular – Other North America

    Summary P&L & Cash Flow Items: Modular – Other North America Key Profit & Loss Items (US$m) (1) 2014 2015 2016 1H 2016 1H 2017 Leasing and Services Modular Leasing 98 76 46 26 16 Modular Delivery and Installation 13 11 8 4 4 Sales New Units 29 11 4 2 2 Rental Units 6 3 4 2 2 Total Revenues 147 101 6

  32. Slide 32: Appendix: Reconciliation of Non-GAAP Measures

    Appendix: Reconciliation of Non-GAAP Measures 2014A 2015A 2016A 2017E 2018E Modular - Modular - Modular - Modular - Modular - Modular - Modular - Modular - Modular - Modular - Other North Total WS Other North Total WS Other North Total WS Other North Total WS Other North Total WS US US US US US Amer

  33. Slide 33: Reconciliation of Williams Scotsman Operating Profit to Segment Gross Profit

    Appendix: Reconciliation of Williams Scotsman International, Inc. Operating Profit to Segment Gross Profit 2014A 2015A 2016A Modular - AS Corp. Modular - AS Corp. Modular - AS Corp. Remote Remote Remote US$m Modular - US Other North Adjustments / Consolidated Modular - US Other North Adjustments / C

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