December 2017 Forward-looking Statements This presentation may - PowerPoint PPT Presentation

December 2017

Forward-looking Statements This presentation may contain forward-looking statements, including statements regarding the business and anticipated financial performance of ENTREC Corporation (“ENTREC” or the “Company”) . These forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward- looking statements. A number of factors could cause actual results to differ materially from those in the forward-looking statements, including, but not limited to, fluctuations in commodity prices, weather, access to capital markets, competition, changes in technology and government policies, decreases in capital spending by customers, decreases in exploration and development spending by customers, the ability or inability of the Company to increase profit margins or utilization, the ability or inability of the Company to expand to new markets, the ability or inability of the Company to successfully acquire and integrate other businesses, the ability or inability of the Company to leverage its existing presence to expand its geographic footprint, the ability or inability of the Company to improve operational efficiencies, and the degree to which committed and prospective revenues materialize. In light of the significant uncertainties inherent in the forward-looking statements included herein, the inclusion of such information should not be regarded as a representation by the Company or any other person that the objectives and plans of ENTREC will be achieved. The Company believes that the expectations reflected in these forward-looking statements are reasonable; however, no assurance can be given that these expectations will prove to be correct and such forward-looking statements included in this presentation should not be relied upon. In addition, these forward-looking statements relate to the date on which they are made. Unless otherwise required by applicable securities legislation, the Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. 2

Investment Highlights  Diversified industry exposure and client base – Broad exposure to customers in the oil & gas, mining, petro chemical, pulp & paper, power generation and infrastructure industries  Niche industry with high barriers to entry – Actively increasing market share (completed 14 acquisitions since 2011)  Strong recurring revenue base – Multiple touch points with customers through construction and maintenance, repair and operation phases  Historically strong track record of revenue and EBITDA growth  Proven management team with extensive operating background  Significantly undervalued despite best-in-class long-lived assets 3

Company Information Toronto Stock Exchange ENT Basic Shares Outstanding (March 31, 2017) 109.6 million Share Price (Dec 1, 2017): $0.19 Market Capitalization: $21 million Working capital (September 30, 2017) $21 million Property, plant and equipment FMV (September 30, 2017) $217 million Net Debt (September 30, 2017) $151 million Net tangible asset value (September 30, 2017) $72 million 52 Week Trading Range: $0.14/$0.28 Management and Board Holdings 52% 4

The Right Management Team Extensive Industry Experience Rod Marlin  Former President, CEO and Director of Eveready Inc., acquired by Clean Harbors Inc. Executive Chairman in July 2009  Founder and former President of Marlin Travel Group, Canada’s largest travel company, until 1993 sale John Stevens  Former President and Director of NC Services Group, a private crane and hauling President, CEO + company Director  Former Senior Vice President of Eveready and its predecessor companies Jason Vandenberg  Former VP Finance and CFO of Eveready and its predecessor companies CFO  Former Manager with Grant Thornton Glen Fleming  Former Executive Vice President of Clean Harbors post acquisition of Eveready Executive VP,  Prior thereto, was Vice President and COO of Eveready Operations Gavin Mcleod  Former Director of Finance with Petrocom Construction VP, Finance +  Joined ENTREC in 2011 Operations Whitney Irwin  Formerly with Flint Energy Services, a former parent company of ENTREC VP, HSE and Training  Re-joined ENTREC in 2011 5

Our Business Complementary Crane and Specialized Transportation Solutions 6

Specialized Cranes for Every Application Crawler Cranes: 21 1 FMV: $29 MM Used for : oil & gas, mining, petro chemical, power generation and infrastructure construction Rough Terrain Cranes: 38 2 FMV: $19 MM Used for : oil sands mining and in situ construction, LNG construction, other construction and oil & gas All Terrain Cranes: 28 4 FMV: $36 MM Carry Deck Cranes: 7 3 Used for : oil & gas, oil sands MRO, FMV: $1 MM mining, petro chemical, power Used for : plant site maintenance generation and infrastructure industries and construction Hydraulic Truck Cranes: 10 5 FMV: $8 MM Used for : oil & gas, oil sands MRO, mining, petro chemical, power generation and infrastructure industries Boom/Picker Trucks: 86 6 FMV: $29 MM Used for : oil & gas, oil sands in situ MRO, mining, petro chemical, power generation and infrastructure industries 7

Specialized Heavy Haul Fleet 1 2 3 1 Conventional Multi- 2 Hydraulic Platform 3 Tractors: 190 wheeled Trailers: 750 Trailers: 375 FMV: $27 MM FMV: $33 MM FMV: $13 MM Large diverse fleet of prime Multiple configurations (up to Modular, highly movers, winch tractors and 96 wheels) customizable highway tractors 8

Asset Overview  ENTREC has an extensive fleet of cranes, trailers and tractors that serve all industries – 190 cranes with multiple uses allow ENTREC to provide a crane for every application – Large fleet of trailers reaching up to 96 wheels  September 30, 2017 net tangible asset value of $71.7 mm Equipment Units Net Tangible Asset Value Crane Fleet Total Assets 230,808 Less: intangible assets (998) Crawler Cranes 21 Add: fair market value of PPE 217,200 Rough Terrain Cranes 38 Less: net book value of PPE (192,240) Carry Deck Cranes 7 Tangible Assets 254,770 All Terrain Cranes 28 Total Liabilities 183,097 Hydraulic Truck Cranes 10 Boom / Picker Trucks 86 Tangible Net Asset Value 71,673 Total 190 Per Basic Share 0.65 Current Share Price (December 1, 2017) 0.19 Specialized Transportation Fleet Premium (Discount) to Net Tangible Asset Value -70.9% Conventional Multi-Wheeled Trailers 750 Hydraulic Platform Trailer Lines 375 Tractors 190 9

Recently Extended ABL Senior Debt Facility  Recently completed 5 year extension of ABL Facility led by Wells Fargo  No Principal repayments until maturity in October 2022  Effective interest rate (including transaction costs) of 3.9% at September 30, 2017  Borrowing base calculated on net orderly liquidation value of fleet plus accounts receivable  Must maintain $15 million excess borrowing capacity at all times  Key Metrics at September 30, 2017: Borrowing base (% of equipment and accts receivable) $155.3 mm ABL Facility utilized $126.9 mm Excess borrowing capacity $28.4 mm  If the excess borrowing capacity declines below 12.5% of the borrowing base ($19.4 million at September 30, 2017), we must also maintain a fixed charge coverage ratio of great than 1.0x. Our ratio was 1.14x at September 30, 2017 10

Where We Operate Industries Served:  Conventional oil & gas  Mining  Petro chemical Thompson, Manitoba Western Canada &  Pulp & paper Recent Expansion into North Dakota Manitoba market  Infrastructure Exposure to natural through HighMark resource, infrastructure and  Refining Crane acquisition transportation industries  Power generation Oil Sands LNG Industry Colorado Bakken Oil Fields Recent greenfield Bakken Oil Fields expansion in Milliken, ENTREC Location Colorado General Movement of Goods Midland, Texas Strong presence established in the Permian Basin of West Texas 11

US Growth Strategy Continues to Accelerate  US revenue up 231% in Q3 2017 over the prior year  US now represents approximately 40% of our consolidated revenue  Strategically located in highest future growth areas  Recent greenfield expansion into the DJ- Niobrara basin of Colorado  Now completing our first industrial construction project on the US Gulf Coast US Drilling and Completion Annual Expenditures Expected to Double by 2022 12