Slide 1: Enerflex Ltd. Corporate Presentation
Enerflex Ltd. Corporate Presentation November 2022
Slide 2: Corporate Overview
Corporate Overview Vertically integrated platform that has successfully delivered innovative, modular energy solutions across the globe for over 40 years North America Trading symbols TSX: EFX NYSE: EFXT Middle Common shares outstanding2 123.7 million East Quarterly dividend $0.025/share Operating l
Slide 3: Pursuing Energy's Full Potential…
Pursuing Energy's Full Potential… Delivering on the Company's vision by executing near-term strategic priorities to generate long-term shareholder value Technical Excellence in Modular Energy Solutions Near-term Strategic Priorities: Transforming Financial Strength 1. Strengthen financial position a
Slide 4: … By Capitalizing on Robust Macro Trends…
… By Capitalizing on Robust Macro Trends… Enerflex is well-positioned to meet the growing need for low-emission natural gas to support the energy transition Projected Global Energy Consumption1 (quadrillion British thermal units) Global natural gas consumption is projected to grow by 1,000 1 over 30
Slide 5: … Including the Emerging Energy Transition
… Including the Emerging Energy Transition Enerflex has proven expertise in delivering modular solutions for global decarbonization efforts 150+ CCUS Projects High = Relative Enerflex Total Addressable Market Enerflex's 3MM HP e-Compression Installed Proven 20+ Bioenergy Projects Expertise Electrifi
Slide 6: Market Leader in Natural Gas Solutions
Market Leader in Natural Gas Solutions Enerflex enhanced its scale and depth of technical expertise through the Exterran acquisition Energy Infrastructure Critical energy infrastructure that Enerflex owns, operates, and manages under contract to enable its customers' operations Nearly 2 million hors
Slide 7: Accelerated Growth in Recurring Gross Margin
Accelerated Growth in Recurring Gross Margin Increased contribution from recurring sources enhances business resiliency 2023e Gross Margin before Depreciation and Amortization1 (US$ millions) Gross Margin % Key Business Drivers 380 - 420 Engineered Growing demand for new ~20 - 30% Systems Engineered
Slide 8: Continued Improvement in Engineered Systems
Continued Improvement in Engineered Systems Strong market fundamentals are driving solid Engineered Systems bookings and a growing backlog Engineered Systems Bookings1 2 Engineered Systems Backlog1 2 3 ($ billions) ($ billions) 2.0 2.0 1.5 1.5 1.5 1.2 1.0 1.0 0.5 0.5 0.0 0.0 2018 2019 2020 2021 TTM
Slide 9: 2022 Capital Spending Overview
12 2022 Capital Spending Overview Large 2022 capital program is expected to deliver high-quality projects, which are underpinned by long-term contracts Total capital expenditures and work-in-progress Committed Capital Expenditures and Work-in-progress of US$420MM to US$470MM planned for 2022 (US$ mi
Slide 10: 2023 Outlook
2023 Outlook Funding of in-flight growth projects will result in near-term call on cash before meaningful excess cash flow generation in 2023+ Adjusted EBITDA Committed Capital Expenditures and Work-in-progress1 (US$ millions) (US$ millions) 355 - 405 380 - 420 200 - 220 180 - 200 40 - 50 40 - 50 20
Slide 11: Synergies Will Accelerate Cash Flow Generation
Synergies Will Accelerate Cash Flow Generation At least US$60MM in annual run-rate synergies to be captured from operational efficiencies and reductions in overhead Overhead $8MM • Optimized structuring of Management and corporate support teams $2MM At least Operational Efficiencies • Economies of s
Slide 12: Capital Allocation Priorities
Capital Allocation Priorities Enerflex will continue to prioritize balance sheet strength, sustainable shareholder returns, and profitable growth Maintain ample liquidity, targeting bank-adjusted net debt to EBITDA of less than 2.5x within 12 to 18 months of the Committed Capital closing of the Exte
Slide 13: Managing a Conservative Balance Sheet
Managing a Conservative Balance Sheet Maintaining a strong financial position is a key tenet of Enerflex's long-term strategy, with deleveraging a top priority for 2023 Net Debt (Cash) to Adjusted EBITDA1 2 3.00 2.00 Near-term Deleveraging Plan: 0.96x • Expect to reduce bank-adjusted net debt 1.00 t
Slide 14: Delivering Sustainable Returns to Shareholders
Delivering Sustainable Returns to Shareholders Enerflex is committed to delivering a sustainable dividend to shareholders Cumulative Dividends ($ millions, $/share) 300 4 225 3 $ millions $/share 150 2 75 1 0 0 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 YTD $ millions $/share The Co
Slide 15: Why Invest in Enerflex?
Why Invest in Enerflex? Differentiated global platform positioned to harness strong global natural gas and energy transition market fundamentals 1 Vertically Integrated Differentiated global platform features synergistic product lines across the energy value chain 2 Financial Strength and Discipline
Slide 16: Appendix
Appendix ENERFLEX
Slide 17: Gross Margin by Product Line
1 Gross Margin by Product Line Enerflex is capturing higher-margin work as the business continues to recover from the pandemic-driven economic slowdown Energy Infrastructure Service Engineered Systems ($ millions, %) ($ millions, %) ($ millions, %) 120 80% 100 32% 300 24% 90 60% 75 24% 225 18% 60 40
Slide 18: Gross Margin by Product Line
1 Gross Margin by Product Line Three Months Ended September 30, 2022 Energy Engineered Cdn$ thousands, except percentages Total Infrastructure Service Systems Revenue 392,813 82,820 109,109 200,884 Cost of goods sold Operating expenses 294,544 34,456 88,040 172,048 Depreciation and amortization 19,5
Slide 19: ESG Performance
1 ESG Performance Enerflex is committed to delivering strong ESG performance across all regions Scope 1 & 2 GHG Emissions Total Recordable Incident Rate (tCO2e) (incident rate per 200,000 work hours) 30,000 0.80 25,900 9% 0.64 23,600 22% 22,500 0.60 0.50 15,000 0.40 7,500 0.20 0 0.00 2020 2021 2020
Slide 20: Energy Infrastructure Project Model
Energy Infrastructure Project Model Design Project Scope Production Startup Project Phase Contract Award Fee-based Operations Contract Renewal Build, Install, Commission Operate and Maintain USA and Canada Ranges from 6 Months to 1 to 3 Years Majority of Project Timeline 10+ Years Depending on Contr
Slide 21: Advisory Statements
Advisory Statements ENERFLEX
Slide 22: Advisory Statements
Advisory Statements ADVISORY REGARDING FORWARD-LOOKING INFORMATION This presentation contains forward-looking information within the meaning of applicable Canadian securities laws and within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. These
Slide 23: Advisory Statements
Advisory Statements FUTURE-ORIENTED FINANCIAL INFORMATION This presentation contains information that may constitute future-oriented financial information or financial outlook information ("FOFI") about Enerflex's prospective financial performance, financial position, or cash flows, including annual
Slide 24: Advisory Statements
Advisory Statements Gross Margin before Depreciation and Amortization Gross margin before depreciation and amortization is a non-IFRS measure defined as gross margin excluding the impact of depreciation and amortization. The historical costs of assets may differ if they were acquired though acquisit
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