North American Construction Group Ltd. · TSX:NOA

North American Construction — Q4 2017 Earnings Presentation

19 slides from North American Construction's earnings presentation, Feb 12, 2018

  1. Slide 1: Investor Presentation

    Investor Presentation Fourth Quarter Ended December 31, 2017

  2. Slide 2: Company Overview

    Company Overview Mining Mining  Founded in 1953  TSX and NYSE listings: “NOA”  Current share price: $5.45 (CAD)  52 week low/high: $4.52/$7.48  Market capitalization: $139 million*  Shares outstanding: 25.5 million*  Average daily share volume (3 month):  NYSE: 35,422  TSX: 15,966  Annual

  3. Slide 3: Strategic Focus

    Strategic Focus  Pursue operational excellence in safety, cost structure, productivity and customer satisfaction  Maintain our strong balance sheet  Continue to build volume of recurring mine support services at oil sands mines  Grow construction revenue from activity on existing mine sites and

  4. Slide 4: Significant Heavy Construction & Mining Contractor in the Oil Sands

    Significant Heavy Construction & Mining Contractor in the Oil Sands  Expertise  40+ years in Northern Alberta’s harsh operating environment  Knowledge to determine optimal solutions for customers  Broad Service Offering  Unique suite of services across project lifecycle  Operational Flexibilit

  5. Slide 5: 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

  6. Slide 6: Active Oil Sands Clients

    Active Oil Sands Clients Key Customer Contracts SUNCOR FORT HILLS CANADIAN NATURAL EXXON  5-year master services agreement at Mildred Lake and HORIZON KEARL Aurora mines, expires August 2020 TOTAL CANADIAN JOSLYN NATURAL JACKPINE AND MUSKEG RIVER  5-year Multiple Use Agreement covering mining serv

  7. Slide 7: Financial Performance and Growth

    Financial Performance and Growth Revenue by Source 7

  8. Slide 8: Debt Restructuring

    Debt Restructuring • Debt excludes operating lease obligations related to building lease commitments. • In March 2017 we completed an offering of $40 million 5.50% convertible unsecured subordinated debentures, due March 31, 2024. The Debentures will be convertible at any time at the option of the h

  9. Slide 9: New Credit Facility

    New Credit Facility Highlights – August 1, 2017 New Credit Facility  Led by National Bank of Canada  Provides borrowing of up to $140 million with an additional $25 million accordion feature  Matures on July 1, 2020, with an option to extend on an annual basis  Capital Lease Limit of $100 millio

  10. Slide 10: Activities That Benefit Our Shareholders

    Activities That Benefit Our Shareholders Share Purchase Program  Since October 2013, we have commenced seven NCIB purchases through the facilities of both the TSX and NYSE: NCIB Shares Approved for Shares Purchased Purchase NYSE October 2013 1,800,000 1,800,000 NYSE December 2014 1,771,195 1,771,19

  11. Slide 11: Enterprise Value, Tangible Book Value, and Price per Share

    Enterprise Value, Tangible Book Value, and Price per Share Period Ending December 31, 2012 2013 2014 2015 2016 2017 Net Debt ($ million) 390.13 123.32 128.60 78.73 88.13 131.61 Equity ($ million) 120.35 215.43 126.35 78.78 146.62 151.44 Enterprise Value ($ million) 510.49 338.75 254.95 157.51 234.75

  12. Slide 12: Strong Organic Growth Outlook

    Strong Organic Growth Outlook Projected 15%+ Compound Annual Growth Rate for Revenue and EBITDA for 2017-2019 Core Market Growth – Oil Sands Service Expansion Leverage core equipment Grow volume of support services maintenance expertise to secure on existing mines, plus new mine, share of a large ma

  13. Slide 13: Outlook for Revenue Growth

    Outlook for Revenue Growth  Continued growth in mine support volumes and heavy construction activity on existing oil sands mine sites as owners grow production  Securing our core business by signing long-term agreements with four major customers that extend to 2020 and beyond  Supporting producti

  14. Slide 14: Outlook for Revenue Growth – Best in Class Maintenance

    Outlook for Revenue Growth – Best in Class Maintenance Facilities  Acheson (Edmonton) - Major fleet repairs and overhauls  Ruth Lake (Fort McMurray) - Major inspections and repairs  Site - Equipment support to maintain unit health and utilization Maintenance Strategy  Planning – improved wrench

  15. Slide 15: New Edmonton Shop and Office Facility

    New Edmonton Shop and Office Facility  $28M Land and Building Package  Estimated payback of 5 years  10 Bay Shop with Integrated Office  Purpose built  3 times more functional service space than existing facility  Fits Ultra Class (+400T trucks)  Growth built-in with room for expansion  Move

  16. Slide 16: APPENDIX

    APPENDIX 17 16

  17. Slide 17: Large, Well Maintained Equipment Fleet

    Large, Well Maintained Equipment Fleet Category Own Lease Rental Total SHOVELS 2 1 0 3 EXCAVATORS (≥100T) 10 1 1 12 EXCAVATORS (<100T) 9 33 9 51 RIGID FRAME TRUCKS (>200T) 20 23 0 20%43 RIGID FRAME TRUCKS (100T to 200T) 58 33 0 91 RIGID FRAME TRUCKS (<100T) 6 1 0 7 ARTICULATED TRUCKS 5 15 13 40% 33

  18. Slide 18: Questions

    Questions 18

  19. Slide 19: 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 Inc. with respect to future events and financial performance, including outlook for revenue and EBITDA growth,

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