Slide 1: Earnings Release Presentation Q3 2023
Earnings Release Presentation Q3 2023
Slide 2: Forward Looking Information
Forward Looking Information Q3 2023 This presentation contains forward-looking information within the Additional information on the risks and uncertainties on the meaning of applicable securities laws. Words such as "may", "will", Company’s business can be found in the Company’s current Annual "shou
Slide 3: Highlights Q3 2023
Highlights Q3 2023 Maintaining disciplined capital allocation approach with “all of the above” strategy • Q3 consolidated Adjusted • Repurchased 535k common EBITDA of $128M shares in the quarter under Net-debt-to Normal Course Issuer Bid adjusted Organic • Q3 Adjusted EBITDA from Investment EBITDA <
Slide 4: Composite Technologies
Composite Technologies Q3 2023 (formerly known as Composite Systems) • 5% decrease in revenue vs. Q3-2022 to $140 million, due to the absence the Oilfield Asset Management business sold in Q4-2022 (5% increase when adjusted for OAM divestiture) • Softer demand for Flexpipe as North American rig coun
Slide 5: Connection Technologies
Connection Technologies Q3 2023 (formerly known as Automotive & Industrial) • Revenue of $82 million is roughly flat vs. Q3-2022 • Strong deliveries into North American utility end markets • Canadian distributors tightly managed inventories, leading to some destocking activity in the quarter, ahead
Slide 6: Discontinued Operations
Discontinued Operations Q3 2023 (formerly known as Pipeline & Pipe Services) • Delivered $289 million of revenue, a 186% increase vs. Q3-2022, as the Company recognized the first full quarter of Southeast Gateway Pipeline Project coating activity • Adj EBITDA margins exceeded 30% during third quarte
Slide 7: Anticipated Timeline of SGP and PPG Transaction
Anticipated Timeline of SGP and Expected SGP Revenue PPG Transaction Q3 2023 >$500M Anticipated Timeline of Transaction versus SGP* Project The transaction 2023 2024 is expected to be completed within approximately Q2 Q3 Q4 Q1 Q2 6 months of the announcement, subject Approximate Window for PPG SGP P
Slide 8: Financial Results
Financial Composite Technologies Results Q3 2023 In millions Q3 2023 Q3 2022 Change Revenue 140.1 147.7 -5% Adj. EBITDA 32.4 32.2 1% Consolidated Revenue from Continuing Operations $225.4M Adj. EBITDA Margin (%) 23.2% 21.8% 140bps Consolidated Adj. EBITDA from Continuing Operations $41.1M Consolidat
Slide 9: Cashflow and Debt
Cashflow and Debt Q3 2023 Consolidated Cash & Debt Net Debt $500 $421 $410 $400 $291 $307 $281 $300 $266 $246 $222 $207 -80% $200 $163 $152 $119 $87 $100 $8 $0 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2021 2022 2023 • Net Debt to Adjusted EBITDA ratio at 0.50X, maintaining below Company’s target of
Slide 10: CAPEX
CAPEX Q3 2023 CAPEX ($CAD MM) Capital spend of $39.6 million in Q3, of which $23.8 million directed to continuing operations growth capital and $12.4 million spent on discontinued $140 $126 operations, the majority of which was customer funded and went to support the $7 SGP project. $120 Capital spe
Slide 11: Cumulative Value of Strategic Actions
Cumulative Value of Strategic Actions Pending Sales as of September 30, 2023 Proceeds from pending sales including • Pozzallo $235M PPG perimeter and other pipe coating actions • PPG Strategic Actions Completed $207M Proceeds already realized from strategic actions completed • Pipeline Performance P
Slide 12: Outlook
Outlook Q3 2023 Macro-economic Operational • Continuing expansion of global • Anticipate slightly higher consolidated investment in communications, performance in Q4-23 , driven primarily by transportation, low emissions further rise in pipe coating activity energy and water management • Q4 Continui
Slide 13: A Global Materials Technology Company Positioned for Growth
A Global Materials Technology Abundant growth Company Positioned for Growth opportunities and established customer base comprised of investment grade counterparts High-quality customers with low concentration and healthy backlog in all segments Portfolio simplification & evolution prioritizing Globa
Slide 14: Thank you.
@ = Thank you. Infrastructure Technologies