Investor Presentation January 2019 Disclaimer This presentation - PowerPoint PPT Presentation

Investor Presentation January 2019

Disclaimer This presentation contains forward-looking information within the meaning of applicable securities laws. Words such as "may", "will", "should", "anticipate", "plan", "expect", "believe", "predict", "estimate" or similar terminology are used to identify forward-looking information. This forward-looking information is based on assumptions, estimates and analysis made in the light of the Company's experience and its perception of trends, current conditions and expected developments, including that the proposed transaction will be completed and the expected low double-digit accretion to the 2019 adjusted EPS will be achieved, as well as other factors that are believed by the Company 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. 2

A G L O B A L L E A D E R Assurance Through Integrity, Technology & Execution Technology Integrity HSE Innovative Solutions Quality Materials Science Business Ethics Partner Network Assurance Execution Proven Track Record Global Reach and Scale Certainty Assured 3

Building on Long-Term Fundamentals Energy Sustainability Aging Infrastructure Impact of Depletion Oil & Gas Pipelines Global Production Forecast End Use Sector Billion toe Source: IEA Source: Welling Source: BP Energy Outlook 2018 U.S. Water Pipelines Fuel Global LNG Supply & Demand 9% Excellent Billion toe 32% Good 23% Fair Poor 11% 13% Very Poor 12% Life Elapsed Source: EPA Source: BP Energy Outlook 2018 Source: Bloomberg NEF  Investments to replace, maintain and  Investments for sources of new  Investments to connect, ensure rehabilitate supply supply and greener alternatives  Energy, water and utilities  Energy and transportation Increasing Public / Regulatory Scrutiny 4

The Shawcor Difference HSE Quality Business Ethics  Incident & Injury Free  Continuous Improvement  Policies & Standards Integrity  Commitment & Leadership  Delivery as Promised  Compliance & Auditing  Accountability Innovative Solutions Materials Science Partner Network  179 patents, 140 patents  Formulations  Institutes pending, 86 proprietary  Application  Suppliers & Customers Technology formulations  Environmental testing  Equity Investments  Integration – Discrete  Inspection products to systems Proven Track Record Global Reach & Scale Certainty Assured  All major E&P’s  >80 locations  Manufacturing &  All major producing regions  Mobile Technology Process Engineering Execution  International skilled  Project Management workforce Leadership  Strong balance sheet 5

S H A W C O R T O D A Y A Global Energy Services Company ZCL* Broad product and service offering – a powerful competitive advantage *ZCL acquisition subject to shareholder, regulatory, and other approvals expected early in the second quarter of 2019. 6

G R O W T H T H E M E # 1 Pipeline Performance The Opportunity Leverage our leading pipe coating products, services and systems into innovative solutions that extend the life of pipeline assets and/or expand operating envelopes. 2019 Priorities  Win and execute large strategic projects  Leverage the products platform to grow the catalogue of solutions being offered  Strategically positioning assets to address activity dynamics  Technology developments to increase functionality, durability and mitigate execution risk Market Size Addressable Market: >$4.0 Billion, Shawcor share >20% • Market size $ 4.5 Billion, Shawcor share ~22% 7

G R O W T H T H E M E # 2 Composite Production Systems The Opportunity Expand the use of advanced polymer based pipe, fittings and associated components in the production of oil and gas reservoirs 2019 Priorities  Proactively manage capacity to match increased market demand  Expansion of the portfolio through the addition of large diameter platform, enhancements to the core product and additional geographies  Expansion into adjacent markets: water and wastewater, mining and fuel Market Size Addressable Market: $5 Billion, Shawcor share >5%* *Addressable market estimate excludes ~$700MM North American opportunity available through ZCL acquisition 8 Note: Shawcor market share based on 2015 Revenue on a proforma basis

G R O W T H T H E M E # 3 Integrity Management The Opportunity Develop measurement and data technology and systems to enhance the operational continuity and efficiency of oil and gas infrastructure assets 2019 Priorities  Scale up to meet the increased demand in USA gathering and large diameter transmission lines and international offshore  Build field services leadership  US midstream expansion through integrity and engineering services Market Size Addressable Market: $1 Billion, Shawcor share >30% 9 Note: Shawcor market share based on 2015 Revenue on a proforma basis

G R O W T H T H E M E # 4 Oilfield Asset Management The Opportunity Improve customer’s oilfield asset utilization, especially in unconventional production, by providing asset management, inspection and repair services 2019 Priorities  Scale to match activity fluctuations  Expand products and services beyond drilling  Data enablement of Asset Management workflow Market Size Addressable Market: $0.8 Billion, Shawcor share >10% 10 Note: Shawcor market share based on 2015 Revenue on a proforma basis

G R O W T H T H E M E # 5 Connection Systems The Opportunity Application of advanced materials and highly engineered speciality solutions to provide reliable control and instrumentation connectivity throughout automotive, transportation, utilities, and oilfield applications. 2019 Priorities  Address capacity constraints  Leverage proven systems differentiation across all geographies  Technology developments to expand core product applications for higher voltage and extreme environments Market Size Addressable Market: >$10 Billion, Shawcor share >2% 11 Note: Shawcor market share based on 2015 Revenue on a proforma basis

Portfolio Strategy is providing Confidence 1. Supportive base business  Pipeline Replacement and Refurbishment  North America Drilling and Completions  Infrastructure and Transportation Expansion and Upgrading 2. Return of Pipe Coating  LNG  Offshore  Land Transmission Lines  >$2.5B in visible opportunities 3. Positioned for the long-term  Strong fundamentals  Established growth themes  Supportive capital structure 12

S H A W C O R V I S I O N A Global Integrated Energy Services Company  Revenue in excess of $4 Billion  Leading market positions in >$20 Billion available market  Platform of 5 focused businesses, each >$300M  Reduced financial performance variability through recurring revenues >85% 13

Investor Presentation January 2019