Slide 1: Investor Presentation August 2022
Investor Presentation August 2022
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: Shawcor Delivers the Infrastructure Technology Our World Needs
Shawcor Delivers the Infrastructure Technology Our World Needs Shawcor is a growth-oriented, global material sciences company serving the Infrastructure, Energy $1.1B 2022 Q2 LTM ANNUAL REVENUE 3,800+ EMPLOYEES WORLDWIDE Transportation and Water markets. QUALITY The Company operates through a global
Slide 4: Our Commitment to ESG
Our Commitment to ESG Shawcor’s operating and leadership practices fully embrace ESG ideals and principles OUR SUPPORTING OUR CUSTOMERS PERFORMANCE TO DATE “ CCUS Project The beauty of the tank is that it’s a Water Tank Installation complete storage system that just SCOPE 1&2 GHG EMISSIONS 2030 50%
Slide 5: Shawcor Offerings
Shawcor Offerings COMPOSITE SYSTEMS AUTOMOTIVE & INDUSTRIAL PIPELINE & PIPE SERVICES Primary Offerings Primary Offerings Primary Offerings FlexPipe PREMIUM ShawFlex Bredero Shaw SPOOLABLE ENGINEERED COMPOSITE PIPE WIRE & CABLE DIFFERENTIATED PROTECTIVE & FLOW ASSURANCE Xerxes Bredero Shaw COATINGS F
Slide 6: Positioned to Address Critical Macro Trends
Positioned to Address Critical Macro Trends 1. AGING 2. POPULATION INFRASTRUCTURE MOVEMENT New infrastructure needed Replacements needed for to support population infrastructure at end of life growth Tank Replacements Communication Network Utility Upgrades Buildout Pipeline Refurbishments
Slide 7: Why the Right Infrastructure and Industrial Solutions Matter
Why the Right Infrastructure and Industrial Solutions Matter S ha w c o r ha s d i f f e r e nt i a t e d , t e c hni c a l s o l ut i o ns t o s up p o r t i nd us t r y t r e nd s a s : 50 % 2.6 T WHER E IT HUR TS MO S T $ T e l e c o mmuni c a t i o ns OF T OT A L V E HIC LE C OST IS E X PE C T E
Slide 8: Creating a Simplified, Less Volatile Higher Value Portfolio
Creating a Simplified, Less Volatile Higher Value Portfolio FY 2019 REVENUE 2022 Q2 YTD REVENUE Infrastructure & Industrial Revenue Growth Divested or 47% 41% Discontinued 33% 24% Xerxes1 Pipeline Performance Group DSG-Canusa FlexPipe Lake Superior Consulting 2019 2020 2021 YTD Q2 ShawFlex Guardian
Slide 9: Prioritizing Growth with Higher EBITDA Margins
Prioritizing Growth with Higher EBITDA Margins Adj. EBITDA Margin (C$ mm) Revenue and Adj. EBITDA 25% $2,000 20% $1,489 15% $1,500 9.2% 9.2% 9.1% $1,178 $1,143 $1,133 10% 6.3% $1,000 5% $500 0% $136 $74 $106 $103 2019 2020 2021 Q2 2022 -5% $0 LTM 2019 2020 2021 Q2 2022 LTM Composite Automotive Pipel
Slide 10: Cumulative Value of Strategic Actions
Cumulative Value of Strategic Actions Actions taken since the beginning of 2020 resulted in the following, as at June 30, 2022: 9 Pipe Coating Facility Exits Increase in Annualized SG&A Scope 1 & 2 Estimated Fixed Infrastructure and 5 Divestitures/Closures Savings >$100M Emissions Reduced ~30k tonne
Slide 11: Capital Structure & Allocation
Capital Structure & Allocation (C$ mm) 3.9x 3.1x 2.1x 1.5x Continued focus on $525 $506 $426 the repayment of Reducing Net-debt-to-Adjusted EBITDA to 1.5x $291 $347 outstanding Credit $222 Facility to reduce overall net debt (C$ mm) $40-$50 Q4 2019 Q4 2020 Q4 2021 Target $45 Total Debt Net Debt Net-
Slide 12: Robust Backlog, Bid & Budgetary
Robust Backlog, Bid & Budgetary Q2 2022 Q1 2022 $80 Total Backlog & Bid rising as multi-year offshore $102 pipeline construction project up-cycle commences Budgetary lowers as project planning progresses and < 12 months < 12 months $702 $779 > 12 months > 12 months customers seek formal bids (in mil
Slide 13: Shawcor Technology – The Heart of Our Competitive Advantage
Shawcor Technology – The Heart of Our Competitive Advantage Shawcor’s technology advantage is based on industry-leading material science that draws on deep partnerships with researchers, universities and customers. As at year end 2021: HydroChainTM Large Diameter A complete system of composite based
Slide 14: Business Segments
Business Segments INVESTOR PRESENTATION AUGUST 2022 — 14 ENGINEERING A BETTER FUTURE
Slide 15: Composite Systems
Composite Systems Q2-2022 LTM Q2-2022 Revenue by Market Revenue $448.9 M Infrastructure & Industrial, 46% Oil & Gas, 15.1% 54% Margin Adj. EBITDA $67.7 M INVESTOR PRESENTATION AUGUST 2022 — 15 ENGINEERING A BETTER FUTURE
Slide 16: Composite Systems: Xerxes
Sample Customers Composite Systems Xerxes Shawcor manufactures composite underground storage tanks Sample Competitors which serve retail fuel and water and wastewater end markets INDUSTRY TRENDS Top fuel customer quoted “most aggressive growth” in the Company’s history, going from 965 stores to 18
Slide 17: Composite Systems: FlexPipe
Sample Customers Composite Systems FlexPipe Shawcor offers a variety of flexible, spoolable composite pipe solutions, predominantly for North American onshore oil & gas Sample Competitors gathering lines INDUSTRY TRENDS US FY 2022 expected well count roughly +13% YoY; Canada +32% YoY DIFFERENTIATO
Slide 18: Automotive & Industrial
Automotive & Industrial Q2-2022 LTM Q2-2022 Revenue Revenue by Market $290.6 M Automotive 30% 18.6% Industrial & Margin Other Infrastructure 70% Adj. EBITDA $53.9 M INVESTOR PRESENTATION AUGUST 2022 — 18 ENGINEERING A BETTER FUTURE
Slide 19: Automotive & Industrial: ShawFlex
Sample Customers & End Users Automotive & Industrial ShawFlex Sample Competitors Shawcor excels as a niche specification-based supplier through developing and manufacturing innovative custom wire and cable products under the ShawFlex brand INDUSTRY TRENDS Ontario is investing $25 billion over 2016
Slide 20: Automotive & Industrial: DSG-Canusa
Sample Customers & End Users Automotive & Industrial DSG-Canusa Shawcor offers a full range of high-quality heat & cold shrink cable Sample Competitors accessories for Automotive, ADM, Communications, Electrical Utility, Electronic and Oil and Gas markets INDUSTRY TRENDS Light vehicle production
Slide 21: Pipeline & Pipe Services
Pipeline & Pipe Services Q2-2022 LTM Q2-2022 Revenue by Market Revenue $397.9 M North America Midstream 34% International & Offshore 54% -1.1% Margin North America Adj. EBITDA Upstream $(4.4) M 12% INVESTOR PRESENTATION AUGUST 2022 — 21 ENGINEERING A BETTER FUTURE
Slide 22: Pipeline & Pipe Services: Pipeline Performance Group
Sample Customers Pipeline & Pipe Services Pipeline Performance Group Shawcor provides highly technical interior and exterior pipe coating solutions, predominantly for offshore pipeline installations Sample Competitors INDUSTRY TRENDS Multi-year up-cycle in offshore pipeline construction evolving
Slide 23: A Global Materials Technology Company Positioned For Growth
A Global Materials Technology Company Positioned For Growth Global material sciences Portfolio simplification & Solid backlog and company with leading evolution prioritizing established customer base market positions across infrastructure and industrial comprised of investment all operating segments