2017 Q3 Results Supplemental Information Slides November 8, 2017 - PowerPoint PPT Presentation

2017 Q3 Results Supplemental Information Slides November 8, 2017

Forward-Looking Statements This presentation, and its commentary, may contain forward-looking statements, including, without limitation, statements containing the words "should", "believe", "anticipate", "may", "plan", "will", "continue", "intend", "expect", "estimate" and other similar expressions. These statements constitute “forward -looking information” within the meaning of applicable Canadian securities laws. These statements are based on the Company’s current expectations, estimates, forecasts and assumptions. Forward-looking statements are not guarantees of future performance and are subject to risks, uncertainties and other important factors that could cause the Company’s actual performance to be materially different from that projected. Examples of these statements would include those where the Company forecasts the timing of new and existing projects and the success of the Company’s new technologies and entering new markets. The assumptions, risks and uncertainties that could cause actual results to differ materially from the forward-looking information, include, but are not limited to market changes, the Company’s ability to deliver services in a timely and cost effective manner, technological change, changes in general economic conditions and other risks detailed from time to time in our ongoing filings with the Canadian securities regulatory authorities, including those in the Company’s Annual Information Form, which filings can be found at www.sedar.com. Given these assumptions, risks and uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements. Unless otherwise required by applicable securities laws, the Company undertakes no obligation to publicly update or revise any forward-looking statements either as a result of new information, future events or otherwise. Unless otherwise stated, all dollar amounts are expressed as CAD$. 2

Financial Performance Overview For the period ended Three Three Nine Nine Change Change Sept. 30 (000s except per months months months months Q3 TTM: $ % $ % shr and %) 2017 2016 2017 2016 • Total Revenue up Revenue 30,881 28,453 2,428 9 93,827 82,763 11,064 13 11% to $126.1 million 6,968 6,415 553 9 19,693 17,823 1,870 10 Direct costs • Adj. EBITDA up 24% Gross Profit 2 23,913 22,038 1,875 9 74,134 64,940 9,194 14 to $20.9 million Gross margin (%) 77 77 79 78 Q3: Operating Expenses 1 23,053 21,282 1,771 8 69,504 65,525 3,979 6 • Adjusted EBITDA 2 4,704 4,216 488 12 15,705 9,876 5,829 59 Total Revenue up 9% to $30.9 million Adjusted EBITDA 2 (%) 15 15 17 12 • Net income (loss) for the Adj. EBITDA up 12% (97) 895 (992) na 1,513 (596) 2,109 na period to $4.7 million Per share – basic (0.00) 0.02 0.03 (0.01) YTD: Per share – diluted (0.00) 0.02 0.03 (0.01) • Total Revenue up Cash Flow from 13% to $93.8 million Operations Before 4,536 4,192 344 8 15,155 9,308 5,847 63 Working Capital • Adj. EBITDA up 59% Changes 2 to $15.7 million Adjusted Income (Loss) 401 931 (530) (57) 2,287 (413) 2,700 na for the period 2 Total assets 3 143,166 143,578 (412) (0) 143,166 143,578 (412) (0) 1. Excludes direct costs and loss or gains on asset disposals, includes depreciation 3 2. See Non-GAAP Measures 3.Comparative figure is as at December 31 .

Q3 & YTD Performance Summary Water Division Oil & Gas Division Q3: Q3: • • 75% of total revenue 25% of total revenue • • Revenue up 1% to $23.3 million Revenue up 40% to $7.6 million • • Adj. EBITDA up 12% to $5.9 million Adj. EBITDA down 26% to $1.6 million YTD: YTD: • • 77% of total revenue 23% of total revenue • • Revenue up 10% to $72.3 million Revenue up 28% to $21.5 million • • Adj. EBITDA up 47% to $19.4 million Adj. EBITDA down 17% to $5.2 million 4

Water Division Americas Segment • • Q3 revenue flat and Adj. EBITDA down 16% YTD revenue up 3% and flat Adj. EBITDA • • Lower lumpy equipment sales, ~$1.2M of projects Q4 historically the busiest period based on project moved to Q4 due to weather related events scheduling; FY organic growth of 5-15% expected 5

Water Division International Segment • • Q3 revenue up 64% and Adj. EBITDA up by $1.3M YTD revenue up 42% and Adj. EBITDA up 260% due to project mix and cost controls due to Q3 projects, higher activity in Australia and South America and cost controls • Growth driven by Mexico monitoring contract and new SE Asia customer 6

Water Division Wachs Water Services Segment • • Q3 revenue down 12% to $4.7M from expected YTD revenue up 12% to $15.7M and Adj. EBITDA delay in the start of 2 recurring programs increased 1,575% to $2.7M • • Adj. EBITDA increased 22% to $0.8M on better Significant progress made towards returning to pre- project margin and cost controls acquisition revenue levels by 2019 7

Oil and Gas Division PureHM Segment • • Q3 revenue up 40% (incl. $2M from E-MAC) and YTD revenue up 28% (incl. $4.2M from E-MAC) and Adj. EBITDA down 26% to $1.6M Adj. EBITDA down 17% to $5.2M • • Reflects lower than expected U.S. activity Focus on org. structure and internal processes underway to better capitalize on US market opportunity 8

Corporate and Other General and Administration Expenses • Adj. G&A expenses down 16% for Q3 and 9% YTD due to completion of cost Three Three Nine Nine Change Change optimization activities, ERP For the period ended months months months months $ % $ % implementation Sept. 30 2017 2016 2017 2016 • General and administration 3,138 3,390 (252) (7) 9,263 10,080 (817) (8) G&A levels expected to be similar for (622) (384) (238) 62 (1,452) (1,174) (278) 24 Stock based compensation Q4, subject to bonus revision changes Training costs - - - - - (280) 280 - which are adjusted for corporate 2,516 3,006 (490) (16) 7,811 8,626 (815) (9) Adjusted general and performance administration 1 • Net R&D expenses increased in Q3 and YTD reflecting a lower proportion Research and Development (R&D) Expenses of capitalized development costs compared to 2016, which is variable Three Three Nine Nine based on project mix and time spent on Change Change For the period ended months months months months operations during busier periods $ % $ % Sept. 30 2017 2016 2017 2016 • R&D initiatives are focused on Research & development 415 342 73 21 1,308 1,135 173 15 increasing the capability and efficiency Stock based compensation (45) (40) (5) 13 (121) (97) (24) 25 Working capital efficiency of its technology platforms in both the Net research & 370 302 68 23 1,187 1,038 149 14 water and oil and gas sectors development 1 • DSO 105 days compared to 108 at YE 1. See Non-GAAP Measures • $8.3M cash on hand at Sept 30, 2017 9

Summary Oil & Gas Division Water Division • PureHM making progress on its growth strategy • ~$1.2M of projects deferred to Q4 due to weather through the E-MAC acquisition and organic events growth • Busiest quarter underway (Q4); core Americas • Market penetration and growth remains on track Segment remains on track to deliver organic in Canada; additional opportunities with first growth of between 5 to 15% for the year based commercial sale of Sentinel TM pig tracking on current scheduling equipment on pipelines, to be installed in Q4 • Ongoing and new work Internationally, including • Focus on org. structure and internal process business activity growth in Europe, Africa, South improvements underway America and China • Large addressable market with growing • Xylem partnership to expand presence acceptance of PureHM technologies and internationally while controlling costs solutions • Continued WWS progress, moving towards pre- acquisition levels 10

Paul Moon +1 (403) 537-3244 Paul.Moon@puretechltd.com Director, Investor Relations and Corporate Communications