Slide 1: Company Overview May 2017
COMPANY OVERVIEW MAY 2017
Slide 2: Forward Looking Statements Advisory
FORWARD LOOKING STATEMENTS ADVISORY • This presentation is for information purposes only and is not intended to, and should not be construed to, constitute an offer to sell or the solicitation of an offer to buy securities of Enerflex. • Certain statements containing words such as “anticipate”, “cou
Slide 3: A Global Platform That Delivers Full Cycle Natural Gas Solutions
A GLOBAL PLATFORM THAT DELIVERS FULL CYCLE NATURAL GAS SOLUTIONS Compression, Processing, and Electric Power Solutions Canada Eng. Systems: $169 mm Service: $63 mm Rental: $15 mm Fleet: ~68,000 HP USA Eng. Systems: $436 mm Service: $103 mm Rental: $11 mm Fleet: ~20,000 HP Rest of World Eng. Systems:
Slide 4: Global Natural Gas Market Outlook
GLOBAL NATURAL GAS MARKET OUTLOOK Consumption is projected to increase to 203 tcf by the year 2040. Increases in consumption: • Industrial use growth 1.7% per year. • Power generation growth 2.2% per year. • Industrial use and power generation account for 73% of the increase in consumption growth. P
Slide 5: Standardized and Customized Facilities
STANDARDIZED AND CUSTOMIZED FACILITIES Path to market through four core product offerings: Gas Compression • Reciprocating and rotary screw compression applications. Systems for Gas Plants • Dew Point, Refrigeration Systems, Amine Plants, Dehydration, and CO2 facilities. Cryogenic Plants • Modular d
Slide 6: Recurring Revenue Focus
RECURRING REVENUE FOCUS • Full turnkey rental opportunities in growth markets. • Full after-market services for gas engine compressors and power generators. • Product commissioning and installation. • Contract operations and maintenance. • Authorized distributor for Jenbacher and MAN engines and par
Slide 7: Consolidated Revenues – Regions
CONSOLIDATED REVENUES – REGIONS $1,696.2 1,800.0 $1,629.0 1,600.0 $1,501.7 $1,405.0 529.4 1,400.0 494.2 $1,227.1 $1,213.7 500.4 $1,130.6 Canada 1,200.0 438.2 $1,067.9 248.0 1,000.0 444.0 232.8 USA 425.6 800.0 761.6 678.2 Rest of 603.8 590.4 466.1 549.5 World 600.0 422.5 392.6 400.0 405.2 456.6 431.7
Slide 8: Revenue by Geographic Segment and Product Line
REVENUE BY GEOGRAPHIC SEGMENT AND PRODUCT LINE Geographic Distribution 2016 TTM 2017 21% 21% 34% 38% 41% 45% Canada USA Rest of World Product Distribution 2016 TTM 2017 14% 15% 58% 24% 27% 62% Engineered Systems Parts and Service Rental
Slide 9: Growth in Recurring Revenue
GROWTH IN RECURRING REVENUE $600,000 45% 42% 40% $500,000 152,580 38% 35% 98,425 33% $400,000 30% 27% 172,769 166,498 26% 49,564 29% 22% 25% $300,000 39,319 58,827 20% $200,000 387,932 384,609 15% 325,428 284,158 298,691 297,536 262,217 10% $100,000 5% $0 0% 2011 2012 2013 2014 2015 2016 TTM 2017 Se
Slide 10: Regional Review
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Slide 11: United States of America
UNITED STATES OF AMERICA • Complete suite of product offerings – Engineered Systems, Service, and Rentals. • Growth driven by the increase in natural gas demand which provides opportunities to strategically expand the business.
Slide 12: United States of America
UNITED STATES OF AMERICA ~ W; : Matin Antrim “I \A | linois Basin Current play - oldest stacked play Ariss sata az 1] Current play - intermediate depth/age stacked play u% al 2! [7 Current play - shallowest/youngest stacked play , [BE Prospective play Basin * Mixed shale & chalk play ** Mixed shale
Slide 13: Latin America
LATIN AMERICA • Focus on Integrated Turnkey and Mexico Build, Own, Operate, and Maintain projects as well as after-market services. Colombia • Compression fleet of approximately 280,000 horsepower. Bolivia Brazil Buenos Aires, Argentina Neuquén City, Argentina Enerflex locations Enerflex unit locati
Slide 14: Middle East / Africa
MIDDLE EAST / AFRICA • Expected to lead the world in natural gas production over the next 20 years with an estimated 44% of the worlds proven Bahrain reserves. UAE • Growth will be driven by: Oman • LNG; • Power generation; • Desalination plants; and • Cooling needs. • Compression rental fleet of ap
Slide 15: Canada
CANADA • Head office and a manufacturing facility located in Calgary, Alberta. • 13 Sales and Service locations situated in liquids-rich plays across the region. • Over 200 qualified service technicians. • Specializes in cold weather compression and processing applications and leverages its knowledg
Slide 16: Australia
AUSTRALIA Projects include: GLADSTONE QCLNG APLNG • Gas-gathering infrastructure GLNG GALILEE for LNG plants on Australia’s ARROW northwest shelf COOPER BOWEN/ SURAT • Coal-seam gas compression GUNNEDAH infrastructure for ICHTHYS Queensland’s local gas SUNRISE demand and upstream LNG PRELUDE BROWSE
Slide 17: Financial Overview
FINANCIAL OVERVIEW VLU dd ds
Slide 18: Regional Backlog
REGIONAL BACKLOG 900 1,000 800 700 800 600 600 500 400 400 300 200 200 100 0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2011 2011 2011 2011 2012 2012 2012 2012 2013 2013 2013 2013 2014 2014 2014 2014 2015 2015 2015 2015 2016 2016 2016 2016 2017 Canada USA ROW Bookin
Slide 19: Financial Strength
FINANCIAL STRENGTH 2013 2014 2015 2016 TTM 2017 EBIT $ 87,341 $ 138,922 $ 131,777* $ 79,422* $ 111,594* Depreciation & Amortization 39,595 56,799 82,771 93,099 90,259 Cash Taxes Paid (27,106) (34,667) (41,218) (15,959) (18,750) Cash Interest Paid (5,960) (9,863) (15,179) (14,493) (14,301) Capital Ex
Slide 20: Well Positioned for Global Growth
WELL POSITIONED FOR GLOBAL GROWTH Proven track record of creating shareholder value through Growth and Dividend Income. • Increased dividend by 41.7% over the past five years. • Product line and geographic diversification in fast growing natural gas markets. • Enerflex is leveraged to global LNG and
Slide 21: Transforming Natural Gas to Meet the World's Energy Needs
TRANSFORMING NATURAL GAS TO MEET THE WORLD’S ENERGY NEEDS