Slide 1: Enerflex Ltd. Corporate Presentation
C L I C K TO E D I T M AS T E R T I T L E S T Y L E CLICK TO EDIT MASTER TITLE STYLE Enerflex Ltd. Corporate Presentation November 2023
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 TSX: EFX Trading symbols America NYSE: EFXT Eastern C L I C K TCommon O E D Ishares T Moutstanding A S T E R (2)T I T L E S T Y L E 123.9MM
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 Disciplined Investment the Technical Excellence in through Counterparty, Modular Energy Solutions Geographic, and Product Line Diversity C L I C K
Slide 4: Q3 2023 in Review
Q3 2023 in Review Solid results underscore sustainability of three core product lines being executed on a global scale Revenue of $778 MM Stable revenue from recurring businesses; Eastern Hemisphere revenue decline attributable to non-cash finance lease revenue recognized in Q1 2023 Gross Margin of
Slide 5: 2023 Guidance
2023 Guidance 2023 strategic priorities include deleveraging and integrating Exterran Guidance Reaffirmed for all 2023 metrics: Current Guidance • Annual run-rate synergies US$ millions, except ratios and percentages November 8, 2023 • Adjusted EBITDA (1) Annual run-rate synergies 60 • Bank-adjusted
Slide 6: Continued Strength in Engineered Systems Business
Continued Strength in Engineered Systems Business Robust customer activity in North America driving strong Engineered Systems bookings with attractive booked gross margins Engineered Systems Bookings (1) Engineered Systems Backlog (1) ($ billions) ($ billions) 2.0 1.5 $1.8B $1.5B 1.0 $1.8B $0.6B $1.
Slide 7: Planned Deleveraging to Strengthen Financial Position
Planned Deleveraging to Strengthen Financial Position Deleveraging is a top priority for 2023 to ensure long-term financial stability and flexibility Total Cash and Credit Capacity (3) ($ millions) Cash and Cash Equivalents Short-term $163 Investments Deleveraging Plan $11 Drawn Revolving Credit Fac
Slide 8: Enhancing Cash Flow Generation through Synergy Capture
Enhancing Cash Flow Generation through Synergy Capture Enerflex has captured US$50 million of annual run-rate synergies primarily through reductions in overhead (1) Operational Efficiencies US$8MM Overhead Other • Optimized structuring of Management and corporate US$2MM support functions Operational
Slide 9: Why Invest in Enerflex?
Why Invest in Enerflex? Differentiated global platform strategically positioned to harness robust global natural gas and energy transition fundamentals Global Market Leader Vertically Integrated Financial Strength Returns-focused in Natural Gas and and Discipline Energy Transition Solutions Strategi
Slide 10: Appendix
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Slide 11: Market Leader in Modular Energy Solutions
Market Leader in Modular Energy Solutions Business strategically designed to combine the stability of the energy infrastructure sector with the torque of the manufacturing sector Illustrative Gross Margin by Product Line across Industry Cycles Energy Infrastructure • Critical energy infrastructure t
Slide 12: Robust Macro Trends
Robust Macro Trends… Enerflex is strategically positioned to enable the energy transition as the demand for natural gas grows in the Company's key operating regions Total Energy Supply (1) Global Natural Gas Demand by Region (2) (exajoule) (bcm) 800 5,000 C L I C K TO E D I T M AS T E R T I T L E S
Slide 13: Including the Energy Transition
… Including the Energy Transition Enerflex has proven expertise in delivering modular energy solutions for global decarbonization efforts CO2 Emissions Reductions in the Energy Sector (2) Relative Enerflex Total Addressable Market (1) (GtCO2/year) 0 Electrification C L I C K T O E D I T M A S T E R
Slide 14: Committed to Delivering Sustainable Returns to Shareholders
Committed to Delivering Sustainable Returns to Shareholders The dividend is foundational to Enerflex's total return proposition Cumulative Dividends ($ 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 2023 YTD $ millions $/s
Slide 15: ESG Performance
ESG Performance Scope 1 and 2 GHG Emissions Total Recordable Incident Rate (tCO2e) (incident rate per 200,000 work hours) 36,000 Scope 1 GHG Emissions Scope 2 GHG Emissions 0.80 30,700 0.64 27,000 25,900 0.60 23,600 0.50 0.46 18,000 0.40 9,000 0.20 0 0.00 2020 2021 2022 2020 2021 2022 Scope 1 and 2
Slide 16: Gross Margin by Product Line
Gross Margin by Product Line Energy Infrastructure Engineered Systems After-market Services ($ millions, %) ($ millions, %) ($ millions, %) 240 80% 240 24% 120 24% 180 60% 180 18% 90 18% 120 40% 120 12% 60 12% 60 20% 60 6% 30 6% 0 0% 0 0% 0 0% 2020 2021 2022 TTM Q3 2020 2021 2022 TTM Q3 2020 2021 20
Slide 17: Gross Margin by Product Line
(1) Gross Margin by Product Line Three Months Ended September 30, 2023 Energy After-market Engineered Total $ millions, except percentages Infrastructure Services Systems Revenue 778 190 165 423 Cost of goods sold Operating expenses 578 87 134 357 Depreciation and amortization 54 46 3 5 Gross margin
Slide 18: Energy Infrastructure Project Model
Energy Infrastructure Project Model Engineer and Design Production Start-up Project Scope Project Phase Contract Award Fee-based Operations Contract Renewal Operate and Maintain Build, Install, Commission North America Ranges from 6 Months to 1 to 3 Years Majority of Contracts Timeline 10+ Years Dep
Slide 19: Advisory Statements
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Slide 20: Advisory Statements
Advisory Statements Advisory Regarding Forward-looking Information This presentation contains forward-looking information within the meaning of applicable Canadian securities laws and forward-looking statements within the meaning of the safe harbor provisions of the US Private Securities Litigation
Slide 21: Advisory Statements (continued)
Advisory Statements (continued) Future-oriented Financial Information The 2023 guidance regarding the Company's future financial performance, including adjusted EBITDA, are based on assumptions about future events, including economic conditions and proposed courses of action, based on Management's a
Slide 22: Advisory Statements (continued)
Advisory Statements (continued) Non-IFRS and Other Financial Measures (continued) Adjusted EBITDA Enerflex's results include items that are unique and items that Management and users of the financial statements adjust for when evaluating the Company's results. The presentation of adjusted EBITDA sho
Slide 23: Enerflex Ltd. contact details
Enerflex Ltd. Suite 904, 1331 Macleod Trail SE Calgary, AB, Canada T2G 0K3 403-387-6377 IR@enerflex.com www.enerflex.com