Concrete Pumping Holdings, Inc. · NASDAQ:BBCP
Concrete Pumping — Investor Presentation (January 2020)
36 slides from Concrete Pumping's investor presentation, Jan 14, 2020
Slide 1: Investor Presentation | January 2020
NASDAQ: BBCP INVESTOR PRESENTATION | January 2020
Slide 2: Disclaimer
Disclaimer MOLDINGS Forward-Looking Statements ‘This imestrpresertation "Investor Presentation” includes "forwarciocking statements" withinthemeaning ofthe"cateharborprovisonsof thePrivate Secures iigaton Reform Ac of 1995. The actualresultsofConcrete PumpingHoldres inc (the"Company’ or "CPH") may d
Slide 3: Who We Are
Who We Are * Weare the largest U.S. & U.K. concrete pumping service provider with a high-growth concrete waste management service (Eco-Pan) * We area specialty service provider + Experienced professionals operate a fleet of highly technical equipment * Our clients are construction companies; we invo
Slide 4: Business Overview
Business Overview Concrete Pumping + Largest concrete pumping service provider in the USS. with 13% market share (Brundage-Bone + Capital) & Sarge U.K. with 34% market share (Camfaud) 2 * Optimize utilization through broad geographic camera footprint & comprehensive suite of equipment Concrete Waste
Slide 5: Why Invest in CPH?
Why Invest in CPH? Largest player in a growing industry (13% U.S. share, 34% in the U.K.) + Scale provides competitive advantages in serving customers, purchasing & fleet utilization + Pumping continues to gain share from traditional methods Strong financial profile & unit economics * Attractive EBI
Slide 6: Industry-Leading Team Highly Aligned with Shareholders
Industry-Leading Team Highly Aligned with Shareholders * Company employees own 12%! » BRUCE YOUNG - Chief Executive Officer = CEO since 2008, CEO of Eco-Pan since 1999 = Senior VP of Operations, Brundage-Bone: 2001-2008 = “40 years of industry experience * CEO with “40-year industry tenure owns 3% *
Slide 7: Well-Positioned to Continue Momentum into Fiscal 2020
Well-Positioned to Continue Momentum into Fiscal 2020 Revenue $315.$330 (sie mors) cis $233 ; il Pros FOI? Frao1s—-FY2O19PE——_—FY20206 Capex (sie mtr) — Kot Revenue $33 $28 s22 323 Fra016 Fra017 F218 Frog see con nasan onebar aur facl yearend. Fgwes nay ot um a8 mueing ‘Serene cos FY ots reverse pus
Slide 8: Q4 2019 Financial Performance
Q4 2019 Financial Performance HOLDINGS (sh men) (seem) — eartoaMan (8) ais ats 048 * 35% revenue growthin U.S. driven by: = 18% revenue growth * Capital Pumping inclusion, broad end-market = Inclusion of Capital in 2019 results * Modest improvementsin the majority of etrenetiiin the |S: c.accelerate
Slide 9: FY2020 Outlook
FY2020 Outlook HOLDINGS FY2020 FY 2020 Commentary ($ in millions) . * Broad end market strength in U.S. concrete pumping expected to Revenue $315 - $330 continue * Eco-Pan very well positioned for evovierowth ea growth given recent investment & current momentum Adj. EBITDA $110 - $115 7 + U.K. concr
Slide 10: Why Clients Choose CPH
Why Clients Choose CPH : CPH Competitive Advantages Concrete Placementis z 2 Highly Critical & Time Sensitive Technical ™ 30+ years of successful operating history Expertise ™ Experienced and knowledgeable operators Need for Faster, Safer & Higher Quality Service Advantages of concrete pumping ee =
Slide 11: Unrivaled Geographic Footprint in Two Countries
Unrivaled Geographic Footprint in Two Countries #1 Player in Each Region Served for All Business Segments U.S. Concrete U.K. Concrete Corporate Pumping Pumping Headquarters Legend: # of Locations: 30 "30 v7 # of Equipment Units: “760 365 78 U.S. Footprint U.K. Footprint NASDAQ: BBCP] 11
Slide 12: Industry Leader in a Growing Sector
Industry Leader in a Growing Sector ~7x Larger Than Nearest Competitor in U.S., ~10x in U.K. U.S. Concrete Pumping Industry Market Share? (of Concrete Pumping Spend) Next Top 2:20 ~$1.75B Industry size All Others U.K. Concrete Pumping Industry Market Share* (sof Concrete Pumping Spend) ~$140M Indust
Slide 13: Diversified Revenue Exposure Creates Resilience
Diversified Revenue Exposure Creates Resilience U.S. Regional Exposure® sus =UK m South = West = Central Southeast ‘Mountain End Market Exposure® = Commercial = Concrete Pumping m Residential = Eco-Pan Infrastructure naive isbased oncPis FY 201Sreverveproformatoracquisions + Analyaisisbesed onCPHS.S
Slide 14: Business Conditions Favorable in Nearly All Markets
Business Conditions Favorable in Nearly All Markets U.S. Concrete Production" (itionsofeusicyors) 458.457 42 as 396 28 5a, 404 352 seg 208 350 39 35 299 300 259 257 266 ‘8 0 10 213 eS 00 ‘OL “02 03 08 05 06 “07 a6 17 18 2019 Non-Residential Construction Forecast by State’ Sa ou29% monn ox Na Naa ato
Slide 15: Concrete Pumping Growing and Gaining Share
Concrete Pumping Growing and Gaining Share Concrete Pumping Gaining Share (sof total US. concrete placement thats pumped) 34% 20% 2000 2018 Pumping Market Expected to See Strong Pricing & Volume Growth rR aT cast "$238 ~$1.758 2017 20216 Why is it Taking Share? Speed & Efficiency Access/Precision of
Slide 16: Advantages of Our Scale
Advantages of Our Scale Purchasing benefits for fuel, OEM capex purchases & parts Breadth of services to service large, more complex jobs Trained operators with a leadingtrack record of safety Fleet availability to match customer demand & requirements Higher utilization leads to higher revenue per e
Slide 17: Strong Unit Economics
. . PUMP! S Strong Unit Economics We generate excellent returns on our capital expenditures Concrete Pumping Unit Economics BAU ADAGE, Eco-Pan Unit Economics ~20 Years fe of NASDAQ: BBCP| 17 Nte: Unit economiesand reuenproflerefer histialarfr tage reutsand ma netbelndlemvectutue returns
Slide 18: Disciplined Approach to Fleet Management
Disciplined Approach to Fleet Management CPH Fleet Overview (Pump lengths in meters; avg. age and useful life in years) = We own our entire fleet (no leasing) Expected Equipment Type FleetCount —_AverageAge Daina = Employ qualified mechanics to ensure Up to 33m 251 91 20 fleet is well maintained Sin
Slide 19: Disruptive Concrete Waste Management Solution
Disruptive Concrete Waste Management Solution Eco-Pan U.S. Market Opportunity se5om+ ‘Total US Market Opportunity Key Factors for Increased Penetration of Eco-Pan ¥ Leverage our concrete pumping footprint ¥ Environmental protection & violation avoidance ¥ Convenience/reduced labor for customers ¥ Ev
Slide 20: U.S. Concrete Waste Management Regaining Momentum
U.S. Concrete Waste Management Regaining Momentum HOLDINGS = Temporarily “plateaued” in the first half of 2019 * Washington, Colorado & Southern California are the three largest markets, all experienced severe weather = Fiscal Q4 saw continued growth due to: * Improvements in majority of markets * H
Slide 21: Proven M&A Platform
Proven M&A Platform The Recent Capital Transaction Has Been Transformative = Acquirer of Choice: Completed 45+ acquisitions since 1983 (avg. pre-synergy Adjusted EBITDA multiples <4.5x) * Benefits of Scale: Track record of increasing Adjusted EBITDA margins of target within first few years through u
Slide 22: Near-Term Priorities
Near-Term Priorities = Drive organic EBITDA growth & free cash = Pursue acquisitions opportunistically flow generation * We expect any near-term M&A would be * Capture remaining Capital synergies “tuck-ins” rather than “transformational” like Capital * Expand Eco-Pan further across the concrete 8 =
Slide 23: Key Valuation Information
Key Valuation Information Trading Data @ (1/10/20) Capital Structure Financial Overview Valuation Measures Stock Enterprise FY19 Pro Forma EV/FY19 Pro Forma Price Value Adj. EBITDA? Adj. EBITDA $5.23 $717M $109M 6.6x $3.16/$12.73 $298M ~$310M 34% 52 WEEK LOW/HIGH EQUITY VALUE? FY2019 PRO FORMA REVEN
Slide 24: Attractive Financial Profile & Valuation Versus Peers
Attractive Financial Profile & Valuation Versus Peers oHADINNE EV / FY 2019 Adjusted EBITDA EV / (FY 2019 Adjusted EBITDA ~Total Capex) Discount vs. Specialty Rental Peers (6): (34%) Discount vs. Specialty Rental Peers (%): (40%) Discount vs. Specialty Waste Peers (1) (53%) Discount vs. Specialty Wa
Slide 25: Concrete Pumping Holdings
CONCRETE PUMPING “HOLDINGS
Slide 26: Company Evolution
Company Evolution Over the past 35 years, CPH has established a market-leading position and developeda strong platform for continued robust growth : 1999-03: Expansion 2009-14: Focuson ‘2018: Become » publicco, Abas 66 Focal Imtonanans Masur, | | 2008Fistconcrete 2008: Bruce optimizing operations, l
Slide 27: Select Projects
Select Projects Commercial build project (Portland, OR) EcoPan (Phoenix, AZ) = PS x y, Wi 7 Thames Tideway = k) % (| Rainier Square Project’ (Seattle, Bridge Project (Corpus Christi, TX)
Slide 28: Quarterly Financial Performance
. . PUMPING Quarterly Financial Performance ————EEE Increase in Cash Flow with Capital Pumping Acquisition Adjusted EBITDA* ‘Semon (te samen) = $30 2 sis $18 sa I iil iid r all all 1 a3 aa wm2017 2018 2019 m2017 2018 2019 Capital Expenditures Adjusted EBITDA less Capital rea (es ‘shan : 325 sa es i
Slide 29: Business Seasonality
Business Seasonality * Typically ~55% of revenue is in the second half of the fiscal year, May through October * Less concrete is placed in the colder and wetter winter months, leading to greater business activity in the second half of the fiscal year * While CPH is a highly variable cost business,
Slide 30: Revenue Growth by Segment
Revenue Growth by Segment HOLDINGS Strong Historical Revenue Growth (sie man) 283.0 1§US. Concrete Pumping S = UK. Operations MUS. Concrete Waste Management Services 2012-2019 $172.4 aiieg $107.4 110.3 sous $203.7 gusi2 $918 FY2012 FY2013 Fy2014 FY2015 FY2016 FY2017 FY2018 Fy2019" NASDAQ: BBCP| 30
Slide 31: Reconciliation of CPH Net Income to Adj. EBITDA
Reconciliation of CPH Net Income to Adj. EBITDA oHADINNE Years Ended October 31, ($ in thousands) 2016 2017 2018 2019 ‘Statement of operations information: Net income (loss) 6,234 13 28,382 (32,487) Interest expense, net 19516 22,748 21,425, 36,524 Income tax (benefit) expense 4454 3,787 (9,784) (7,
Slide 32: Quarterly Adjusted EBITDA Reconciliation
sap n.GAAP) Predecessor (non-GAAP) 1201722017 32017 _ 042017 2 @32018 242018 21201922019 2019 a4 2019 TD 2018_¥70 2019. Consolidated Net income (oss) S626) $2556 $3923 $ 730 SITS $4610 $4825 $1399 $ @257 S$ G9R) $ BER] S$ (DEI) S272 $ GO Ss 23982 S$ G24) Interest expense, net 628 © 6.098) S488 1] 50
Slide 33: Shares & Other Equivalents Outstanding
Shares & Other Equivalents Outstanding a ee ‘Shares Undetying Convertible Secures Outstanding Shares ‘Subject to Vesting Fully Diluted Fully Diluted ‘Shares By Type PublicShares 32115514 = 32115514 3215516 Non-Executive Dectors 190,037 e 190.037 190,037 Nuveen! : 2,480,980 2.480,980 2450980 Freely T
Slide 34: Credit Facilities Summary
Credit Facilities Summary Credit Facilities Interest Rate Term Loan Amortization Term Loan Call Protection Incremental Financial Covenants $402 million Term Loan Facility? $60 million ABL Revolver? Term Loan Facility: Libor + 600bps ABL Revolver: Libor + 175-225bps based on leverage levels ‘Term Loa
Slide 35: Zero-Dividend Convertible Perpetual Preferred Stock Summary
Zero-Dividend Convertible Perpetual Preferred Stock Summary = ™0LDuxes Priest | scald Perpetual Zero 2,850,980 shares at $10.20 per share The holder of the Preferred Stock may elect to convert its Preferred Stock into shares of Common Stock at a 1:1 ratio at any time months after the Closing Date. T
Slide 36: Investor Relations
Company CONCRETE PUMPING HOLDINGS Investor Relations
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