Jan Januar ary 2 y 201 017 7 – Inve nvesto tor Present ntation Black Diamond Group Limited Investor Relations | rmadell@blackdiamondgroup.com | 587-233-7462
Forward Looking Statements This presentation contains forward-looking statements. The use of the words “anticipate”, “continue”, “estimate”, “expect”, “will”, “project”, “should”, “believe”, “intend” and similar expressions identify forward- looking statements. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward- looking statements. Management believes the expectations reflected in those forward-looking statements are reasonable but cannot give any assurance these expectations will prove to be correct. 2
Value Chain Owning rental assets & outsourcing services Revenue TTM* Outsourced Non-rental Non-Rental $45.6M Transportation Installation Manufacturing Rental Assets Owned Rental $67.8M Ancillary Workspace Camps Equipment Outsourced Logistics Lodging $53.3M Housekeeping Safety & Camp Catering & & Laundry Management Maintenance *TTM based on Q3 2016 3
Current Environment Co Commo mmodities 2 year Spot Snapshot Key end markets steadily improving from lows • 10% seen in early 2016 Activ ivit ity 0% No meaningful increase in field activity in Q3 • Financ inancing ings -10% Significant 2016 producer and industry financings • Cap apit ital S al Spend nding ing -20% Customers announcing both increased capital • spending and hiring of labourers requiring -30% housing Inf nfras astruc uctur ure & C Cons nstruc uctio ion -40% Ongoing infrastructure spending across North • America -50% BDI F Financ inancial ial Posit itio ion Dec-14 Feb-15 Apr-15 Jun-15 Aug-15 Oct-15 Dec-15 Feb-16 Apr-16 Jun-16 Aug-16 Oct-16 Dec-16 $132.8 million of available liquidity under facilities • committed to 2019 WTI Natural Gas Metals Index 4
Camps & Lodging Assets vs Utilization 14000 100% 12000 80% Unit/Bed Count 10000 Utilization 60% 8000 6000 40% 4000 20% 2000 0 0% 2011 2012 2013 2014 2015 Q3 2016 YTD Units Rental Beds Managed Beds Utilization Three ee full ll se servic ice o open c camps: s: Sunday Creek Lodge Horn River Lodge Smoky River Lodge No large contracts rolling off in near term Opportunities and Wins in: Hydro ro Mini Mi ning ng Flee eet Sa t Sales es above b e book value 5
Pricing Dynamics in the Market Private Washroom Semi-Private Washroom Dorm Style Pricing Pressure Higher Average Lower % Black Diamond Fleet >40% >45% >15% Black Diamond Fleet Composition 50 Young fleet capable of substantial % of Fleet future revenue 25 with minimal capital requirements 0 Private Washroom Semi-Private Washroom Dorm Style 6
BOXX Acquisition & Expansion • Organ anic Expan ansi sion • $6.4 million in new capital, 5 new branches • Scaling of existing branches BOXX Branches 5 Branches • MPA Syst ystems L LLC opened in 2016 Areas serviced by recent acquisitions • Based in Texas, services Continental US • 63 High Security Modular Buildings • 400+ Disaster Recovery Contracts • USD $3.1 million • Shel helter er Modul ular Inc nc . • Based in Vancouver, also services surrounding area • ~100 Space rental units for $1.3 million along with future production capacity • Trave velite te Trai ailers s Inc. c. • Based in Ottawa, also services surrounding area • 116 space rental units for ~$1.0 million 7
BOXX Modular Performance BOXX Assets vs Utilization BOXX Assets vs Utilization BOXX Assets vs Utilization BOXX Assets vs Utilization 4000 4000 4000 4000 100.0% 100.0% 100.0% 100.0% 90.0% 90.0% 90.0% 90.0% 3500 3500 3500 3500 80.0% 80.0% 80.0% 80.0% 3000 3000 3000 3000 70.0% 70.0% 70.0% 70.0% 2500 2500 2500 2500 Average Utilization Average Utilization Average Utilization Average Utilization 60.0% 60.0% 60.0% 60.0% Number of Units Number of Units Number of Units Number of Units 2000 2000 2000 2000 50.0% 50.0% 50.0% 50.0% 40.0% 40.0% 40.0% 40.0% 1500 1500 1500 1500 30.0% 30.0% 30.0% 30.0% 1000 1000 1000 1000 20.0% 20.0% 20.0% 20.0% 500 500 500 500 10.0% 10.0% 10.0% 10.0% 0 0 0 0 0.0% 0.0% 0.0% 0.0% Q1'13 Q1'13 Q1'13 Q1'13 Q2'13 Q2'13 Q2'13 Q2'13 Q3'13 Q3'13 Q3'13 Q3'13 Q4'13 Q4'13 Q4'13 Q4'13 Q1'14 Q1'14 Q1'14 Q1'14 Q2'14 Q2'14 Q2'14 Q2'14 Q3'14 Q3'14 Q3'14 Q3'14 Q4'14 Q4'14 Q4'14 Q4'14 Q1'15 Q1'15 Q1'15 Q1'15 Q2'15 Q2'15 Q2'15 Q2'15 Q3'15 Q3'15 Q3'15 Q3'15 Q4'15 Q4'15 Q4'15 Q4'15 Q1'16 Q1'16 Q1'16 Q1'16 Q2'16 Q2'16 Q2'16 Q2'16 Q3'16 Q3'16 Q3'16 Q3'16 Edmonton Fleet Edmonton Fleet Total units in fleet Edmonton Fleet Total units in fleet BOXX North America Utilization Total Fleet Total units in fleet BOXX North America Utilization BOXX North America Utilization BOXX Edmonton Utilization BOXX North America Utilization BOXX Edmonton Utilization BOXX minus Edmonton Utilization 8
BOXX Rental Revenue BOXX Rental Revenue BOXX Rental Revenue $35 $35 $30 $30 $25 $25 $20 $20 Millions ($) Millions ($) $15 $15 $10 $10 $5 $5 $- $- 2011 2012 2013 2014 2015 Q3 2016 TTM 2011 2012 2013 2014 2015 Q3 2016 TTM BOXX NA w/o EDM BOXX Edmonton BOXX NA 9
Energy Services & International Asset Count & Utilizations Asset Count & Utilization 2500 80% 1250 1 70% Number of Units 2000 1200 0.8 Number of Units 60% Utilization 50% Utilization 1500 1150 0.6 40% 1000 30% 1100 0.4 20% 500 1050 0.2 10% 0 0% 1000 0 2011 2012 2013 2014 2015 Q3 2016 2011 2012 2013 2014 2015 Q3 2016 YTD YTD Surface Rental Units Accomodation Units Number of Units Average Utilization Surface Rental Utilization Accomodation Utilization • Increasing rig counts in Canada, and US • Iron ore pricing stabilization regions we participate in • Rapid Deploy product offering • Winter drilling season commencing • Increased opportunities in education and infrastructure spending • Utilization increases being seen leading into freeze up 10
Revenue Diversification Q3 2016 BOXX Modular International General Construction Education Public Infrastructure Public Infrastructure 39% Disaster Recovery Mining Education Natural Gas & LNG 5% Energy Services Camps & Lodging 15% 42% Energy Capital Expenditures Drilling & Completions Operations & Maintenance activity in Canada, North Pipelines & Infrastructure Dakota, Colorado Mining & Renewables 11
Operating Leverage Existing asse asset base ase sc scenar arios s excluding an any a y additional al growth capi apital al Inc ncrem emen ental Inc ncrem emen ental Annua nnual Bus usines ness U Uni nit Utilization EBITDA* EBI +10% $11.6M Camps & Lodging +20% $23.2M +30% $34.8M +10% $3.0M BOXX Modular +20% $6.0M +30% $9.0M +10% $2.9M +20% $5.8M Energy Services +30% $8.6M +10% $17.5M +20% $35.0M CONSOLIDATED TOTALS +30% $52.4M *EBITDA increase based on relative increase in utilization to Q3 TTM EBITDA, no rate increase assumed. 12
Investment Thesis Current Valuation Net Book Value* = $539.6M Enterprise Value** = $321.2M EV d V discou ount to o NBV V = 4 40% No value built in for: Oper erati ting ng Lever erage Diversi sification Divi vidend end Gro rowth * Total assets - intangibles **Enterprise Value calculated based on $4.50 share price 13
Looking into Recovery What Differentiates Black Diamond Highlights • Unique Model & Experienced Management • Diverse Revenue Platform • Significant Operating Leverage • Young & Diverse Asset base • Innovative Customer Offering • Excess Financial Capacity • Sustainable Dividend • Discounted Resource Recovery Upside 14
THANK Y NK YOU OU Investor Relations | rmadell@blackdiamondgroup.com | 587-233-7462
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