S O L U T I O N S M A T T E R + National Bank Financial Energy Conference September 2, 2020
Statement Regarding Forward-Looking Statements 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, 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.
Investment Highlights 1 Diversified portfolio 2 Established customer base 20+ 3 Countries of Reporting 3 Supportive long-term fundamentals Operation Segments 5,000+ 16 4 Clear priorities Global Employees Leading Brands 265 $1.5B 5 Secured and visible work Proprietary Revenue Formulations & (2019) Patents 50 Years as a Publicly Traded Company
Portfolio Diversification Strategy PIPELINE & PIPE SERVICES COMPOSITE SYSTEMS AUTOMOTIVE & INDUSTRIAL Corrosion Resistant Composite Pipe and Pipeline Coatings, Inspection & Integrity Heat Shrink Solutions and Specialty Wire Solutions, and Engineering Services Underground Storage Tanks and Cable for Demanding Environments 2013 2019 2020 (YTD) Revenue Mix Revenue Mix Revenue Mix Highlights 4% 2% • Geographic Reach and 9% Product Diversity 19% 24% 26% 30% 26% • Presence in all Major Oil 30% and Gas Basins 17% • High Barriers To Entry 18% 25% 21% • 32% 17% Product Expansions • Low Risk of Technological Non-Oil & Gas Int’l & Offshore NA Midstream NA Upstream Large Projects Disruption • Digital Technology • • Focused on Pipe Coating Growth in Non-Oil & Gas • • Reliance on Large Offshore Projects ZCL Composite Tanks • Experienced Executive • • Active NA Upstream Balanced and Diverse Portfolio Team • • Limited Non-Oil & Gas Upside as Large Projects Sanctioned
Established Customer Base REPORTING SEGMENTS PIPELINE Composite Systems Automotive & Industrial Pipeline & Pipe Services SERVICES & PRODUCTS INTEGRITY MANAGEMENT HEAT SHRINK & HEAT SHRINK & MANAGEMENT & MANAGEMENT & COMPOSITE OILFIELD ASSET COLD APPLIED COLD APPLIED ENGINEERING ENGINEERING PIPE MANAGEMENT PRODUCTS PRODUCTS SERVICES SERVICES HEAT SHRINK & COMPOSITE SPECIALTY SPECIALTY COMPOSITE SPECIALTY COMPOSITE COMPOSITE COLD APPLIED TANKS WIRE & CABLE WIRE & CABLE TANKS WIRE & CABLE PIPE TANKS PRODUCTS Water Power Electrical & Automotive Fuel Transit Upstream Midstream Generation Distribution INFRASTRUCTURE TRANSPORTATION ENERGY 5
Supportive Long-Term Fundamentals Business Segment 2020 Focus Fundamentals • Global oil and gas • Bid, win and development to meet execute demand profile • Technology • Energy transition – monetization move to alternatives PIPELINE & PIPE SERVICES • Optimized footprint with a lower carbon International & offshore projects expected to improve profitability in 2020 and beyond footprint • Aging infrastructure, • Expansion strict replacement • Products requirements and • Markets ownership • Added value accountability • Significant investments • Services COMPOSITE SYSTEMS Growing acceptance and established required to address • Digital base business will drive high growth source and end-use imbalances in Water, • Product approvals Oil & Gas and Electricity and specifications • Investments required to • Global capacity develop national • Equipment and resources and supply AUTOMOTIVE & INDUSTRIAL aftermarket chain security Stable outlook with growth prospects in service core markets
Clear Priorities Ensure Employee Ensure Customer Project Highlights Safety Execution • Employee Monitoring and • Managing Supply Chain and • Leveraged HSE strength of Separation Customer Schedules the Company • Visitor and Travel Restrictions • Physical Distancing, Site Containment and Hygiene • Best Practice Return to Office • Significant Progress on Protocols Standards Financial Targets • Implementation of Remote Work • $60M in Sustainable Annualized SG&A Immediate Cost Capital Savings Reductions Management • Suspended Dividend • Amended Credit Facility with • $40M in Incremental commencing Q2 ‘20 Covenant Relief to End of Cash Generation Dec. ‘21 • Reduced Board, CEO and • $70M Normalized SG&A Executive Compensation • Reduced Capital Spending to $40-$50M Range Run Rate • Reduced Salaried Workforce (>15%) • Reduced Working Capital • As of June 30, 2019, $104M • Controlled Closures of Select in Cash and $297M in Pipe Coating Facilities and Undrawn Credit Facilities Branch Offices 7
Significant Secured and Visible Work END OF Q2 2020 $ 1,400 M $ 790 M $ 553 M $ 180 M Backlog Bid Budgetary • 12-month Backlog > $500 million • Conditional Bid awards ~ $180 million • Q2 secured work reflects updated Project timing 8
S O L U T I O N S M A T T E R + National Bank Financial Energy Conference September 2, 2020
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