Slide 1: Investor Presentation November 2021
INVESTOR PRESENTATION NOVEMBER 2021
Slide 2: Statement Regarding Forward-Looking Information
Statement Regarding Forward-Looking Information This presentation contains forward-looking information within the meaning of applicable securities laws. Words such as "may", "will", "should", "anticipate", "plan", "expect", "believe", "predict", "estimate" or similar terminology are used to identify
Slide 3: Agenda
Agenda Section 1: Shawcor Overview Section 2: Business Segments Section 3: Financial Overview 3
Slide 4: Section 1: Shawcor Overview
Section 1: Shawcor Overview 4
Slide 5: Shawcor At A Glance
4,200 Shawcor At 2021 Q3 LTM A Glance Shawcor is a growth-oriented, global material sciences company serving the Infrastructure, Energy, and Transportation markets. The Company operates through a global network of fixed and mobile manufacturing and service 7% facilities. Its three business (2021 YTD
Slide 6: Shawcor Offerings
Shawcor Offerings Primary Offerings Additional Offerings COMPOSITE TANKS COMPOSITE PIPE Primary Offerings ENGINEERED WIRE & CABLE HEAT SHRINK TECHNOLOGY APPLICATION EQUIPMENT COLD SHRINK TECHNOLOGY Primary Offering Additional Offerings PROTECTIVE COATINGS & FLOW ASSURANCE 6
Slide 7: Our Diversified Portfolio Addresses Critical Infrastructure
Our Diversified Portfolio Addresses Critical Infrastructure LEGEND WATER TRANSPORTATION & COMMUNICATION ENERGY Canada Wastewater Stormwater Water Aerospace & Electrical North America Water Storage Mass Transit Automotive Communication Oil & Gas Renewables Nuclear Management Management Conveyance Def
Slide 8: Supportive Macro Trends
Supportive Macro Trends Replacements Infrastructure (i) aging needed for needed for water infrastructure infrastructure at end and energy security of life → Water and → Tank Wastewater Replacements Management Systems → Pipeline Refurbishments → New Pipelines → Utility upgrades → Alternative (iii) re
Slide 9: Portfolio Evolution
Portfolio Evolution REVENUE 2019A YTD 2021 Q3 2021 YTD Revenue Non-Oil & Gas 24% 40% 19% Large Projects(1) 4% 4% 40% 14% International & 26% 23% Offshore 23% 4% NAM Midstream 20% 14% Non-Oil & Gas Large Projects(1) International & Offshore NAM Midstream NAM Upstream NAM Upstream 26% 19% (1)Large Pro
Slide 10: Company Priorities Over Last 18 Months
Company Priorities Over Last 18 Months Employee Delivering for Our Cost Strengthening the Balance Safety Customers Reductions Sheet 3.5 >3,200 >8,000 $53M $130M $35M Tanks Sold YTD km of Wire & Cable Current SG&A Quarterly 2020 Total Recordable Case Frequency Sold YTD Run-Rate 2021 YTD Debt 2021 FY
Slide 11: Strengthening the Base Business
Strengthening the Base Business Strengthening Base Business Forward Movement in Large Strength in Work Secured Capital Projects Backlog, Bid and Budgetary as of Q3 2021 → Resilient demand for retail fuel → Infrastructure stimulus $ 1,543 M investments → Increased adoption of electric and hybrid vehi
Slide 12: Our Commitment to ESG
Our Commitment to ESG Shawcor's operating and leadership practices fully embrace ESG (Environmental, Social and Governance) ideals and principles. Shawcor continues to evolve as an organization to better reflect our enduring values of Integrity, Technology and Execution and to ensure we are position
Slide 13: Section 2: Business Segments
Section 2: Business Segments COMPOSITE AUTOMOTIVE & PIPELINE & PIPE SYSTEMS INDUSTRIAL SERVICES 13
Slide 14: Overview of Business Segments
Overview of Business Segments Industry leadership, further product development & Stable outlook with growth prospects in core International and offshore projects and footprint favorable macro trends will drive continued growth markets optimization driving improved profitability LTM FINANCIAL PEFORMA
Slide 15: Key Customers
Key Customers Tank Top 10 Pipe Top 10 DSG Top 10 ShawFlex Top 10 Pipeline Performance Top 10 Bellows Distributors Sample DSG End Users Sample ShawFlex End Users Top 10 are Retail Fuel Customers Distributors 15
Slide 16: Shawcor Technology
Shawcor Technology LotusFlo™ Shawcor’s technology advantage is based on industry- leading material science that draws on deep partnerships with researchers, universities and customers. 122 Issued Patents 51 Proprietary 70 Proprietary LotusFlo™ is a diamond-like carbon coating designed to reduce depo
Slide 17: Section 3: Financial Overview
Section 3: Financial Overview 17
Slide 18: Key Financials
Key Financials (C$ mm) Revenue and Adj. EBITDA $2,000 12% ▪ Significant cost actions in 2020 resulted in 11% $1,409 10% $1,489 improved margins $1,500 9% 9% $1,178 $1,202 ▪ 2% revenue improvement in Q3 LTM vs 6% $1,000 6% 2020 despite the sale of the Products business and substantial footprint $500
Slide 19: Quarterly Leverage & Interest Coverage
Quarterly Leverage & Interest Coverage Quarterly Leverage LTM Quarterly Interest Coverage LTM Total Debt/LTM Adj. EBITDA Net Debt/LTM Adj. EBITDA 10.0x 7.0x 9.0x 8.0x 6.0x 7.1x 5.3x 6.8x 5.0x 4.4x 5.8x 6.0x 4.0x 3.3x 3.9x 3.0x 4.0x 3.6x 3.6x 3.0x 2.4x 2.9x 2.4x 2.0x 2.0x 2.0x 1.0x 0.0x 0.0x Q3 2020
Slide 20: Quarterly Performance
Quarterly Performance Composite Systems Adj. EBITDA and Net Debt ($CAD 000's) • Continue to see record backlog for tanks • Raw material shortages persist. Tank production levels are expected to be constrained by these shortages into the first half of 2022 410,384 • Positive outlook in 2022 for pipe
Slide 21: Key Highlights
Key Highlights Global material sciences company with leading market positions across all operating segments 85+ year history with track record of execution, 18+ countries of operation, and 11 recognized brands Diversified product offerings serving water, transportation, communication and energy end-