Enerflex Ltd. · TSX:EFX
Enerflex — Investor Presentation (February 2018)
20 slides from Enerflex's investor presentation, February 2018
Slide 1: Company Overview February 2018
COMPANY OVERVIEW FEBRUARY 2018
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: Global Platform Delivering Full Cycle Natural Gas Solutions
GLOBAL PLATFORM DELIVERING FULL CYCLE NATURAL GAS SOLUTIONS Business Overview Revenue $1,553 MM Canada Employees ~2,100 Eng. Systems $342 MM Operating Locations 54 Service $65 MM Manufacturing Facilities 3 Rental $12 MM Countries 16 Total Revenue $419 MM Fleet: ~65,000 HP Revenue Overview Eng. Syste
Slide 4: Global Natural Gas Market Outlook
GLOBAL NATURAL GAS MARKET OUTLOOK Consumption is projected to increase to 203 tcf by the year 2040. Increases in consumption: • Industrial use growth 1.7% per year. • Power generation growth 2.2% per year. • Industrial use and power generation account for 73% of the increase in consumption growth. P
Slide 5: Standardized and Customized Facilities
STANDARDIZED AND CUSTOMIZED FACILITIES Path to market through four core product offerings: Gas Compression • Reciprocating and rotary screw compression applications. Systems for Gas Plants • Dew Point, Refrigeration Systems, Amine Plants, Dehydration, and CO2 facilities. Cryogenic Plants • Modular d
Slide 6: Recurring Revenue Focus
RECURRING REVENUE FOCUS • Full turnkey rental opportunities in growth markets. • Full after-market services for gas engine compressors and power generators. • Product commissioning and installation. • Contract operations and maintenance. • Authorized distributor for Jenbacher and MAN engines and par
Slide 7: Consolidated Revenues – Regions
CONSOLIDATED REVENUES – REGIONS C$ in millions 1,800.0 1,696.2 1,629.0 1,600.0 1,553.4 1,501.7 405.2 1,405.0 1,400.0 456.6 355.7 1,227.1 397.5 1,200.0 376.4 1,130.6 1,067.9 360.6 1,000.0 249.7 761.6 431.7 678.2 800.0 603.8 779.1 590.4 422.5 392.6 600.0 466.1 400.0 500.4 529.4 494.2 425.6 444.0 438.2
Slide 8: Revenue by Geographic Segment and Product Line
REVENUE BY GEOGRAPHIC SEGMENT AND PRODUCT LINE Geographic Distribution 2016 2017 21% 23% 38% 27% 41% 50% Canada USA Rest of World Product Distribution 2016 2017 15% 10% 20% 27% 58% 70% Engineered Systems Parts and Service Rental
Slide 9: Growth in Recurring Revenue
GROWTH IN RECURRING REVENUE C$ in millions 600.0 42% 500.0 152.6 98.4 30% 33% 400.0 26% 27% 29% 172.8 153.5 49.6 22% 300.0 39.3 58.8 200.0 387.9 384.6 325.4 298.7 308.2 284.2 262.2 100.0 - 2011 2012 2013 2014 2015 2016 2017 Service Revenue Rental Revenue Recurring Revenue % of Consolidated Revenue
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 reserves. • Growth will be driven by: Bahrain UAE • LNG; Oman • Power generation; • Desalination plants; and • Cooling needs. • Compression rental fleet* of a
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 for LNG plants on Australia’s GALILEE ARROW northwest shelf COOPER BOWEN/ • Coal-seam gas compression SURAT infrastructure for Queensland’s GUNNEDAH local gas demand and ICHTHYS SUNRISE upstream LNG development PRE
Slide 17: Financial Overview
FINANCIAL OVERVIEW a ye aT MLL“iix““iiiiik ibs bssbsbcicccccicicdccccdcicdccdcdcdcdccdcdcdcddddddcddddddcdcdddddddda
Slide 18: Regional Backlog
REGIONAL BACKLOG 1,000 800 600 400 200 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 Q2 Q3 Q4 2011 2012 2013 2014 2015 2016 2017 Canada USA ROW Bookings
Slide 19: 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 over 58% since 2011. • Product line and geographic diversification in fast growing natural gas markets. • Increasing recurring revenue is improving EBIT mar
Slide 20: Transforming Natural Gas to Meet the World's Energy Needs
TRANSFORMING NATURAL GAS TO MEET THE WORLD’S ENERGY NEEDS