S O L U T I O N S M A T T E R + 2020 INVESTOR DAY Assets protected with RFID data-enabled end caps
DISCLOSURE STATEMENT This presentation includes certain statements that reflect management’s expectations and objectives for the Company’s future performance, opportunities and growth, which statements constitute "forward looking information" and "forward looking statements" (collectively "forward looking information") under applicable securities laws. Such statements, other than statements of historical fact, are predictive in nature or depend on future events or conditions. Forward looking information involves estimates, assumptions, judgements and uncertainties. These statements may be identified by the use of forward looking terminology such as "may", "will", "should", "anticipate", "expect", "believe", "predict", "estimate", "continue", "intend", "plan" and variations of these words or other similar expressions. These statements of forward looking information are based on assumptions, estimates and analysis made by management in light of its experience and perception of trends, current conditions and expected developments as well as other factors believed to be reasonable and relevant in the circumstances. Forward-looking information involves known and unknown risks, uncertainties and other factors which may cause actual results, performance or achievements to be materially different from those predicted, expressed or implied by the forward-looking information. Additional information on the risks and uncertainties on the Company’s business can be found in the Company’s current Annual Information Form, annual and quarterly reports and in other reports and filings made with the securities regulatory authorities and available at www.sedar.com and www.shawcor.com. The forward-looking information is provided as of the date of this presentation and the Company does not assume any obligation to update or revise the forward-looking information to reflect new events or circumstances, except as required by law.
INVESTOR DAY - AGENDA AND PRESENTERS Our Company Shawcor Foundations Cindy Paul Pierroz Ron Dunn Grolleman , SVP, Steve Orr SVP, R&D and VP, Shawcor Corporate & President & Operations Investor Management CEO System Relations Rexdale Location Tour Joe Tabak Kevin Reizer Shawn Doyle Trina Vitolianos Group Group Group Manager, GM/VP, Oilfield President, President, Canusa-CPS Asset Composite Pipeline Management Systems Performance Chris Havern Ryan Swor Frank Cistrone Aaron Group President, GM/VP, Lake Group President, Klejman Integrity Superior Automotive & GM, Americas Management Consulting Industrial Our Outlook Steve Orr Gaston Tano President & CFO CEO
SHAWCOR HERITAGE OF CUSTOMER FOCUS AND INNOVATION 1969 2019 Early development of Advanced manufacturing of protective coatings composite products We have anticipated, adapted and changed to the dynamic business environment for over 50 years.
THE SHAWCOR VALUES BASED CULTURE INTEGRITY TECHNOLOGY EXECUTION The core of our business is The heart of our business is our The advantage of our business environmental protection. depth in materials science. is execution and continuous improvement. We strive to do the right thing in We have unique capabilities for We continue to earn a reputation everything we do: continuous innovation: for delivering as promised: HSE Commitment Integrated Solutions Global Scale & Reach Business Ethics Partnership Network Manufacturing Excellence Product & Service Quality Research & Development Programs Project Management Leadership INTEGRITY IN ACTION TECHNOLOGY IN ACTION EXECUTION IN ACTION Over 600 In-Vehicle Titan Z’s all-in-one cable Over 40,000 km of composite Monitoring Systems (IVMS) protection delivers easier pipe installed worldwide installed in company vehicles installation, superior performance and cost savings to end users
SUSTAINABILITY IS FULLY INTEGRATED IN SHAWCOR OUR PURPOSE OUR SOLUTIONS OUR OPERATING PRACTICES The purpose of our business is We relentlessly pursue Our operating and leadership environmental protection, asset technologies that reflect our practices fully embrace integrity and sustainability. values and customer requirements. ESG ideals and principles. Leadership & Governance Thermotite ULTRA is • Say on Pay Innovative materials an end-to-end subsea • Director & Management Share science to ensure insulation system Ownership integrity and designed for flow • Director Service & Diversity maximize asset life assurance Policies Human & Social Capital Digital iLINE TM Engineering and monitoring • HSE & Metrics Reporting inspection solutions improves efficiency • Talent Development reduce contractor footprint • Community Engagement and extends asset and extend design life • Data & Cybersecurity Program life FlexPipe/FlexFlow TM Business Model & Innovation Corrosion resistant reduces • New Product Development composites to reduce environmental • Project Management manufacturing and footprint and enables • Continuous Improvement installation footprint efficient installation Environment Advanced polymers EV Wire Harness • Environmental Management and application insulates and seals • Carbon Disclosure Project engineering to support electrical/ electronic Reporting transition to EV low • Water & Energy Stewardship systems emission vehicles
OUR BUSINESS PROFILE TODAY DESIGN BUILD PROTECT MANAGE ENERGY GY & INFR FRAST STRUCT CTURE T E TECHN CHNOL OLOGY OGY We deliver engineering We manufacture We apply advanced We provide complete and consulting services products, equipment materials and inspection, integrity and to develop innovative, and systems to meet formulations to asset management effective and enduring stringent industry substrates to ensure services to ensure solutions standards and performance over full integrity and extend customer requirements asset lifecycle asset life 50 20+ Years as a Countries of publicly traded operation company 6,000+ 16 Global Leading employees brands 265 $1.5B Proprietary Revenue formulations & (2019) patents
→ HISTORIC BUSINESS MODEL – 2009 TO 2015 Revenue Cash from Operations FINANCIAL DYNAMICS 2,000 600 1,800 Accumulated Cash From Pipe Cash from Operations (CAD$ Millions) 500 Coating Projects and Survived 1,600 On Reserves Revenue (CAD$ Millions) 1,400 400 1,200 MODEL WORKED 1,000 300 800 Controlling Shareholder until 2013 200 Strong Core Market - Canada 600 Access to Capital Markets 400 100 Line of Sight on Projects 200 Debt Not Utilized Prior to 2013 0 0 2009 2010 2011 2012 2013 2014 2015
SHAWCOR MARKETS AND DRIVERS - DIVERSIFICATION INTERNATIONAL & NORTH AMERICAN NORTH AMERICAN NON-OIL & GAS LARGE PROJECTS OFFSHORE MIDSTREAM UPSTREAM Global Automotive Pipeline Capacity Pipeline Capacity US and Canada US and Canada and Industrial and Infrastructure and Infrastructure Drilling and Drilling and Production Spending Spending Completions Completions Construction and In-field and Regulatory Gathering and Gathering and Municipal Water Transmission Environment Distribution Distribution Spending Pipeline Projects Network Network Rehabilitation Retail Fuel Station Development Development Projects - Projections Onshore Nuclear Refurbishment Spending Revenue Mix (%) Revenue Mix (%) 2013 2019 Focused on Pipe Coating Growth in Non-Oil & Gas Reliance on Large Offshore Projects ZCL Composite Tanks Active NA Upstream Balanced and Diverse Portfolio Limited Non-Oil & Gas Upside as Large Projects Sanctioned
SHAWCOR BUSINESS SEGMENTS
→ COMPELLING FUNDAMENTALS DRIVING LONG TERM VALUE SHAWCOR ❷ ❶ Business Segments IMPORTANCE OF SUPPLY/ DEMAND ASSET OWNERSHIP IMBALANCES • Ownership for full lifecycle and • Significant imbalances in Water, long- range performance Oil, Gas and Electricity • Investments required to reduce COMPOSITE SYSTEMS • Investments required to match ownership risk, increase asset returns source to end-use and digitize operations ❸ ❹ GREENER ENERGY SECURITY PIPELINE & PIPE SERVICES ALTERNATIVES & ASSURANCE • Focus on source of supply • Energy transition – move to and geo-political risk and alternatives with a lower carbon dynamics footprint • Investments required to develop • Investments required to address AUTOMOTIVE & INDUSTRIAL national resources and assure market dynamics which leverage supply chain security greener alternatives
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