Slide 1: 2014 Annual General Meeting
2014 ANNUAL GENERAL MEETING May 7, 2015
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: Improved Capabilities. New Opportunities.
Improved Capabilities. New Opportunities.
Slide 4: Full Cycle Natural Gas Solutions
Full Cycle Natural Gas Solutions Compression, Processing and Electric Power Solutions Revenue $1.8 Billion Market Cap $1.3 Billion Shares 78.6 Million Outstanding Annualized Dividend 1.8% Canada 52 Week High $20.99 Europe / CIS 52 Week Low $14.64 Employees 3,500 Sales & Service 65 Locations USA Asia
Slide 5: Standardized and Customized Equipment
Standardized and Customized Equipment Compression and Process • Reciprocating and rotary screw compression applications. • Small to large horsepower (200 hp – 10,000 hp). • Conventional and unconventional plays. Production and Processing • Systems for gas plants (dew point) and refrigeration systems
Slide 6: Recurring Revenue Focus
Recurring Revenue Focus • Full after-market services for gas engine compressors and power generators. • Full turnkey rental opportunities in growth markets. • Electric power solutions (250 kW to 50 MW). • Construction and product installation. • Contract operations and maintenance. • Global Platinum
Slide 7: We're Growing Globally
We’re Growing Globally
Slide 8: A Year of Growth
A Year of Growth Enerflex Delivered: • Record annual revenue and EBIT; • An improved EBIT margin; • An increased dividend; and • A strong backlog entering 2015. Strengthened our Global Business: • Expansion in Latin America; • Electric power opportunities; • After-market service growth; and • Intern
Slide 9: Enerflex's Expanded Latin America Business
Enerflex’s Expanded Latin America Business • Acquired assets’ comprised of rental equipment and after-market service, advancing Enerflex’s goal of increasing recurring revenue. Mexico • Strong focus on compression and gas processing projects. Colombia • Experienced in-country network with an establi
Slide 10: Enerflex – The Growth Strategy
Enerflex – The Growth Strategy June 2014 – Acquistion of Axip International $2,000,000 $140,000 CAGR (Revenue) : 12.3% 2010 – Merger of $1,800,000 Enerflex Systems CAGR (Operating Income) : 8.8% Income Fund & TESI $120,000 $1,600,000 $1,400,000 $100,000 2005 – acquisition of Operating Income ($ 000'
Slide 11: Consolidated Revenues – Regions
Consolidated Revenues – Regions $1,780.7 1,800.0 $1,501.7 1,600.0 $1,405.0 682.8 1,400.0 $1,227.1 $1,067.8 592.1 Canada & 1,200.0 524.9 Northern US 1,000.0 524.2 Southern US 453.8 800.0 & Latin 799.0 America 512.1 503.7 600.0 342.3 International 364.3 400.0 360.6 397.5 376.4 200.0 249.7 298.9 - 2010
Slide 12: Profitable Operations
Profitable Operations Net Earnings - Continuing Operations EPS - Continuing Operations ($ millions) ($ millions) 90.0 1.20 80.0 70.0 1.00 60.0 0.80 50.0 82.3 0.60 40.0 71.2 1.06 0.91 30.0 56.7 57.7 0.40 0.73 0.74 20.0 30.3 0.40 0.20 10.0 - - 2010 2011 2012 2013 2014 2010 2011 2012 2013 2014 12
Slide 13: Leverage
Leverage 400,000 2.5 352,399 350,000 333,547 304,553 2 300,000 250,804 250,000 1.5 200,000 191,700 200,000 183,000 182,533 156,828 1 150,000 127,012 126,936 99,231 100,000 0.5 50,000 40,648 - 0 2010 2011 2012 2013 2014 (50,000) (45,653) -0.5 (100,000) (86,473) (150,000) -1 Net Debt Working Capital E
Slide 14: Regional Backlog
Regional Backlog 1,200 1,000 242 207 182 800 332 309 296 303 154 307 324 600 270 285 331 159 217 227 297 220 164 252 400 307 228 190 211 278 455 435 243 359 280 362 472 459 200 423 409 370 297 255 241 223 196 203 152 129 116 125 130 98 - Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 Q2 13 Q3
Slide 15: Growth Potential and Opportunities
Growth Potential and Opportunities
Slide 16: Electric Power Opportunities
Electric Power Opportunities Industrial Applications • Island Mode Prime Power Co-Generation • Combined Heat and Power Applications Energy Export • Flare Gas to Energy • Landfill Gas to Energy • Biogas to Energy 16
Slide 17: Worldwide LNG Opportunities
Worldwide LNG Opportunities 2017 – 2020 Projected 2.8 – 6 BCF per day first LNG exports potential LNG exports from two to four projects by 2025 CANADA UNITED STATES >11 BCF per day expected LNG exports in AUSTRALIA 2020 2016 Expected first LNG exports 3.2 BCF per day LNG Significant LNG shipments, c
Slide 18: US Growth Opportunities
US Growth Opportunities Enerflex location 18
Slide 19: Latin America Growth Opportunities
Latin America Growth Opportunities • Three key regional countries – Mexico, Brazil and Argentina – undergoing significant changes in their energy markets. Mexico • Growth will be driven by: • Argentina – development of Vaca Muerta shale to offset LNG import. Colombia • Mexico - constitutional and le
Slide 20: Middle East/Africa Growth Opportunities
Middle East/Africa Growth Opportunities • Expected to lead the world in natural gas production over the next 20 years with an estimated 44% of the worlds proven reserves. • Growth will be driven by: • LNG; • Power generation; Bahrain • Desalination plants; and UAE Oman • Cooling needs. • Compression
Slide 21: Enerflex – Outlook
Enerflex – Outlook • Continuing commodity price challenges has resulted in targeted cost cutting initiatives including: • Company-wide hiring and salary freeze; • Head count reductions; • Business travel expense limitations; • Reduced marketing expenditures; • Significant reductions in expenditures
Slide 22: 2014 Annual General Meeting
2014 ANNUAL GENERAL MEETING May 7, 2015