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Investing in Tomorrow’s Energy & Infrastructure

EnterpriseGRP.ca
FORWARD LOOKING STATEMENTS
Statements in this presentation that are forward-looking statements are subject to
various risks and uncertainties concerning the specific factors disclosed under the heading
“Risk Factors” and elsewhere in the Corporation’s periodic filings with Canadian securities
regulators. Such information contained herein represents management's best judgment
as of the date hereof based on information currently available. The Corporation does not
assume the obligation to update any forward-looking statement.

PAGE   TWO
COMPANY OVERVIEW
•

•

Enterprise Group Inc. (“Enterprise” or “Company” – Ticker – TSX:E) is a consolidator of construction services
companies operating in the energy, utility and transportation infrastructure industries. The Company's focus is
primarily construction services and specialized equipment rental. The Company's strategy is to acquire
complementary service companies in Western Canada, consolidating capital, management and human resources to
support continued growth. Enterprise became a Western Canadian leader in flameless heat technology in September
2012 with its acquisition of Artic Therm International Ltd. and has now become a technological leader in underground
infrastructure construction by the closing of Calgary Tunnelling & Horizontal Augering Ltd. June 14, 2013.
Enterprise currently operates 4 business units:
–
–
–
–

•
•
•

TC Backhoe & Directional Drilling (service provider to mid-stream and infrastructure/utility companies),
Calgary Tunnelling & Horizontal Augering Ltd (highly specialized tunnelling for pipeline, utility and infrastructure)
Artic Therm International (specialized equipment rental provider) and
E-One Limited (construction class heavy equipment rental provider).

The Company was incorporated on 2004 and is headquartered in St. Albert, Alberta.
Enterprise currently employs between 125 - 200 employees depending on the season, and has a world class customer
base.
Enterprise's typical customers are:
–
–
–
–
–
–
–

Integrated O&G
Multinational Mid-Stream
Cross Country pipeline Constructors
Telecommunications
Cable Television
Electricity and Natural Gas Services
North American Rail Companies

PAGE   THREE
ACQUISITION STRATEGY
•

Acquire complementary businesses at accretive valuations

•

Ideal Targets:
– Unique Western Canada focused private companies with limited access to capital for
growth
– Businesses that service the energy, utility and transportation infrastructure industries
– Successful track record with high quality, top tier clients
– Profitable
– Possess the market ability to double within 2 – 3 years

•

Typical Acquisition Structure
– Purchase price of < 3.0x EBITDA
– Acquisition price paid with a combination of cash, equity, debt & VTB
– Key personnel retained via 5 year employment contracts and incentives

•

Enterprise Group will leverage its expertise, strong client relationships and access to capital to
accelerate organic growth
PAGE   FOUR
DEBT REFINANCING

SEPTEMBER 2O12 - Enterprise completes a refinancing with PNC
Canada Branch. Implementing a $12.5 million operating line at
prime + 2% for a three year term.
MAY 2O13 – Operating line increases to $20 million
PNC is currently the seventh largest bank by deposits in the United
States, as well as the sixth largest by total assets, fifth in total
branches, and is the third largest bank off-premise ATM provider.
PNC is based in Pittsburgh, USA.
PAGE   FIVE
SEGMENTS OVERVIEW
Enterprise Group’s four business units deliver utility & infrastructure
construction services, and heavy equipment & flameless heating rentals
UTILITY/INFRASTRUCTURE
CONST. & MAINT.

North American leader in
the highly specialized
tunnelling field. CTHA
utilizes a number of
tunnelling disciplines laser
guided boring & augering,
pipe ramming, pipe
jacking/tunnel boring
(TBM), among others.

Serving the premier
utility providers in
Alberta installing
and maintaining
utility services both
underground and
above ground.

EQUIPMENT RENTAL

Renting the most
advanced flameless
heaters ranging
in heat output
from 500,000 to
3,000,000 BTU’s.
Pioneers of pipeline
thermal expansion

A first call for heavy
equipment rentals in the
oilfield & civil construction
sectors and operating
project crews constructing
pipelines & facilities for
the prolific oil & gas fields
of Western Canadian
Sedimentary Basin.

The company has a growing equipment asset base of nearly $30 million including
a fleet of over 300 trucks, heavy equipment and specialized heating units.
PAGE   SIX
Calgary Tunnelling & Horizontal Augering Ltd.
•

•

•

Founded in 1984, Calgary Tunnelling
& Horizontal Augering Ltd., ("CTHA")
is a North American leader in the
highly specialized tunnelling field.
CTHA utilizes a number of tunnelling
disciplines to get the job done
efficiently and safely such as laser
guided boring & augering, pipe
ramming, pipe jacking/tunnel boring
(TBM), among others.
CTHA performs its services from the
west coast through to central Canada
across the energy, utility and
infrastructure segments. Its clients
range from Canada's largest rail
companies and premier utility
providers to leading infrastructure
contractors and some of North
America's largest pipeline companies.
PAGE   SEVEN
Calgary Tunnelling
Acquisition Highlights
• Highly successful specialized underground infrastructure construction company with operations
based in Alberta deploying its services from the West Coast to Central Canada.
• ~30 years as an operating company and +60 years of cumulative field experience
• Provides multiple services to top tier clients
• Accretive acquisition that is complementary to Enterprise Group’s existing businesses
• For the year ended 2012, the private company generated $14.9 million of revenue and $5.85 million
of EBITDA
• Acquisition price is $12 million (just over 2 X EBITDA)
- Acquisition being funded by debt, cash and a $1.0 million vendor take-back financing to be repaid over two
years
- Acquisition completed June 14, 2013

PAGE   EIGHT
TC Backhoe – Utility/ Infrastructure
•

•
•

•

•

•

Industry leader in utility and pipeline
construction working throughout Alberta
with over 35 years of industry experience
Focused on the installation and repair of
underground utility services in subdivisions
Relationships with Alberta’s largest
developers including Qualico, Genstar and
Landrex
Customers include Canada’s largest
telecommunications, cable TV, electricity &
natural gas service providers.
Services provided by TC Backhoe include
directional drilling, hydrovacing, trenching
and plowing, backhoe and dozer work, as well
as complete site clean-up
Excellent revenue visibility as ~40% of
revenues from long term contracts (12-18
mos.)

PAGE   NINE
Artic Therm – Flameless Heat Rental
•

Founded in 1997 and acquired by
Enterprise Group in September 2012
–

•

•
•

•
•
•

Acquisition price of $6.5 mil (2.4x trailing
EBITDA )

Provides efficient Flameless Heat and
Green Air technology for multiple
applications using portable equipment
to remote locations for the extreme
climate challenges
Proprietary technology
Fleet of over 100 units with substantial
opportunity for expansion due to
increasing demand
500,000 to 3.3 Million BTU output
Blower technology of up to 15,000
CFM at Peak
Applications
–
–
–
–
–

Pipeline Thermal Expansion
De-Humidifying
Confined Space Entry
Plant & Facility Shut Downs
Vessel Coating Curing
PAGE   TEN
ARTIC THERM
FLAMELESS HEATING

Pioneers in Flameless Heating Technology
500,000 to 3.3 Million BTU Output
Blower Technology of up to 15,000 CFM at Peak

PAGE   ELEVEN
ARTIC THERM
FLAMELESS HEATING

Applications:

Pipeline Thermal Expansion
De-Humidifying
Confined Space Entry
Plant & Facility Shut Downs
Vessel Coating Curing

Pipeline Thermal Expansion

Plant/Facility Shut-Downs

Storage Tank Shut-Downs
PAGE  TWELVE
E One Limited – Heavy Equipment Rental
•
•
•

•

Located in Central and North Central
Alberta
Strategically located to serve the needs
of the demanding construction and
energy services industries
40 pieces of heavy construction
equipment including excavators,
bulldozers and pipe-layers typically rent
out at $5,500 to $19,500 per month
E-One provides:
– Late model equipment
– Professionally serviced and maintained
fleet – less downtime, and more work time
– Best-in-Class brands and models

•

Historical utilization rate of 60-95%
capacity

PAGE   THIRTEEN
Blue Chip

CLIENT BASE

PAGE FOURTEEN
LEADERSHIP TEAM
Leonard D. Jaroszuk – President, CEO, Chairman
Entrepreneur with 27+ years experience managing public companies engaged in real estate,
construction, natural resources and exploration. Serves as a Director on several oil & gas service
and manufacturing companies
Desmond O’Kell – Vice President, Director and Corporate Secretary
Has been with Enterprise Group since its inception. 26+ years experience in corporate
development, finance and business operations.
Doug Bachman – COO
25+ years experience in corporate finance and management from a tier-one Canadian chartered
bank
Warren Cabral – CFO
Recently served as CFO for AIMCo managing global investments for pensions, endowments and
government funds in Alberta. Joined Enterprise group in January 2013
John Pinsent – Director
Manu K. Sekhri– Director

PAGE   FIFTEEN
Financial Summary

Capitalization Table
Shares Outstanding (Sept 2013)
Basic
Options
Warrants
Fully Diluted
52-Week High-Low
Market Capitalization
Enterprise Value

Shareholders Summary
In Millions
84.5
~ 4.7
~ 1.2
90.4
$0.89-$0.20
69.3
89.3

Major Shareholders

Management / Directors / Assoc’s

30.00% +

Float and Public

~66.40%

Total

100.00%
PAGE   SIXTEEN
Historical Performance
30%
$36.0

20%

$31.0
10%

$26.0
$21.0
$16.0

$18.5

$17.9

$15.6

0%
-10%

$11.0
$6.0

-20%

$4.4

$1.6

-30%

$1.0
-$4.0

2010

-40%

-$1.5

2011
Revenue

EBITDA

2012
EBITDA Margin

Analyst Coverage

Liquidity
Total Trading

Brokerage Firm
M Partners
Beacon Securities

Analyst
Tom Varesh
Michael Mills

Rating
Buy
Buy

Date of
Initiation

Current
Target

Period

27-Feb-13

(2014)
$2.05

Last 1 Month
Last 3 Months
Last 6 Months
Last 12 Months

(2013)
12-Oct-12
$1.00
Source: Company Reports, TSX InfoSuite, 
Research Consensus Estimate

Average Daily
% of Float
Volume
578,007
519,308
475,718
360,023

0.97%
0.87%
0.80%
0.60%

% of Total
0.68%
0.61%
0.56%
0.42%
PAGE   SEVENTEEN
CONTACT INFORMATION
CORPORATE HEAD OFFICE
#2, 64 Riel Drive, St. Albert
Alberta, Canada T8N 5B3
Phone: 780.418.4400
Fax: 780.418.1941
Toll Free: 888.303.3361

INVESTOR RELATIONS
Desmond O’Kell
Senior Vice President
Phone:780.418.5377

PAGE   EIGHTEEN

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Investing in Tomorrow's Infrastructure

  • 1. Investing in Tomorrow’s Energy & Infrastructure EnterpriseGRP.ca
  • 2. FORWARD LOOKING STATEMENTS Statements in this presentation that are forward-looking statements are subject to various risks and uncertainties concerning the specific factors disclosed under the heading “Risk Factors” and elsewhere in the Corporation’s periodic filings with Canadian securities regulators. Such information contained herein represents management's best judgment as of the date hereof based on information currently available. The Corporation does not assume the obligation to update any forward-looking statement. PAGE   TWO
  • 3. COMPANY OVERVIEW • • Enterprise Group Inc. (“Enterprise” or “Company” – Ticker – TSX:E) is a consolidator of construction services companies operating in the energy, utility and transportation infrastructure industries. The Company's focus is primarily construction services and specialized equipment rental. The Company's strategy is to acquire complementary service companies in Western Canada, consolidating capital, management and human resources to support continued growth. Enterprise became a Western Canadian leader in flameless heat technology in September 2012 with its acquisition of Artic Therm International Ltd. and has now become a technological leader in underground infrastructure construction by the closing of Calgary Tunnelling & Horizontal Augering Ltd. June 14, 2013. Enterprise currently operates 4 business units: – – – – • • • TC Backhoe & Directional Drilling (service provider to mid-stream and infrastructure/utility companies), Calgary Tunnelling & Horizontal Augering Ltd (highly specialized tunnelling for pipeline, utility and infrastructure) Artic Therm International (specialized equipment rental provider) and E-One Limited (construction class heavy equipment rental provider). The Company was incorporated on 2004 and is headquartered in St. Albert, Alberta. Enterprise currently employs between 125 - 200 employees depending on the season, and has a world class customer base. Enterprise's typical customers are: – – – – – – – Integrated O&G Multinational Mid-Stream Cross Country pipeline Constructors Telecommunications Cable Television Electricity and Natural Gas Services North American Rail Companies PAGE   THREE
  • 4. ACQUISITION STRATEGY • Acquire complementary businesses at accretive valuations • Ideal Targets: – Unique Western Canada focused private companies with limited access to capital for growth – Businesses that service the energy, utility and transportation infrastructure industries – Successful track record with high quality, top tier clients – Profitable – Possess the market ability to double within 2 – 3 years • Typical Acquisition Structure – Purchase price of < 3.0x EBITDA – Acquisition price paid with a combination of cash, equity, debt & VTB – Key personnel retained via 5 year employment contracts and incentives • Enterprise Group will leverage its expertise, strong client relationships and access to capital to accelerate organic growth PAGE   FOUR
  • 5. DEBT REFINANCING SEPTEMBER 2O12 - Enterprise completes a refinancing with PNC Canada Branch. Implementing a $12.5 million operating line at prime + 2% for a three year term. MAY 2O13 – Operating line increases to $20 million PNC is currently the seventh largest bank by deposits in the United States, as well as the sixth largest by total assets, fifth in total branches, and is the third largest bank off-premise ATM provider. PNC is based in Pittsburgh, USA. PAGE   FIVE
  • 6. SEGMENTS OVERVIEW Enterprise Group’s four business units deliver utility & infrastructure construction services, and heavy equipment & flameless heating rentals UTILITY/INFRASTRUCTURE CONST. & MAINT. North American leader in the highly specialized tunnelling field. CTHA utilizes a number of tunnelling disciplines laser guided boring & augering, pipe ramming, pipe jacking/tunnel boring (TBM), among others. Serving the premier utility providers in Alberta installing and maintaining utility services both underground and above ground. EQUIPMENT RENTAL Renting the most advanced flameless heaters ranging in heat output from 500,000 to 3,000,000 BTU’s. Pioneers of pipeline thermal expansion A first call for heavy equipment rentals in the oilfield & civil construction sectors and operating project crews constructing pipelines & facilities for the prolific oil & gas fields of Western Canadian Sedimentary Basin. The company has a growing equipment asset base of nearly $30 million including a fleet of over 300 trucks, heavy equipment and specialized heating units. PAGE   SIX
  • 7. Calgary Tunnelling & Horizontal Augering Ltd. • • • Founded in 1984, Calgary Tunnelling & Horizontal Augering Ltd., ("CTHA") is a North American leader in the highly specialized tunnelling field. CTHA utilizes a number of tunnelling disciplines to get the job done efficiently and safely such as laser guided boring & augering, pipe ramming, pipe jacking/tunnel boring (TBM), among others. CTHA performs its services from the west coast through to central Canada across the energy, utility and infrastructure segments. Its clients range from Canada's largest rail companies and premier utility providers to leading infrastructure contractors and some of North America's largest pipeline companies. PAGE   SEVEN
  • 8. Calgary Tunnelling Acquisition Highlights • Highly successful specialized underground infrastructure construction company with operations based in Alberta deploying its services from the West Coast to Central Canada. • ~30 years as an operating company and +60 years of cumulative field experience • Provides multiple services to top tier clients • Accretive acquisition that is complementary to Enterprise Group’s existing businesses • For the year ended 2012, the private company generated $14.9 million of revenue and $5.85 million of EBITDA • Acquisition price is $12 million (just over 2 X EBITDA) - Acquisition being funded by debt, cash and a $1.0 million vendor take-back financing to be repaid over two years - Acquisition completed June 14, 2013 PAGE   EIGHT
  • 9. TC Backhoe – Utility/ Infrastructure • • • • • • Industry leader in utility and pipeline construction working throughout Alberta with over 35 years of industry experience Focused on the installation and repair of underground utility services in subdivisions Relationships with Alberta’s largest developers including Qualico, Genstar and Landrex Customers include Canada’s largest telecommunications, cable TV, electricity & natural gas service providers. Services provided by TC Backhoe include directional drilling, hydrovacing, trenching and plowing, backhoe and dozer work, as well as complete site clean-up Excellent revenue visibility as ~40% of revenues from long term contracts (12-18 mos.) PAGE   NINE
  • 10. Artic Therm – Flameless Heat Rental • Founded in 1997 and acquired by Enterprise Group in September 2012 – • • • • • • Acquisition price of $6.5 mil (2.4x trailing EBITDA ) Provides efficient Flameless Heat and Green Air technology for multiple applications using portable equipment to remote locations for the extreme climate challenges Proprietary technology Fleet of over 100 units with substantial opportunity for expansion due to increasing demand 500,000 to 3.3 Million BTU output Blower technology of up to 15,000 CFM at Peak Applications – – – – – Pipeline Thermal Expansion De-Humidifying Confined Space Entry Plant & Facility Shut Downs Vessel Coating Curing PAGE   TEN
  • 11. ARTIC THERM FLAMELESS HEATING Pioneers in Flameless Heating Technology 500,000 to 3.3 Million BTU Output Blower Technology of up to 15,000 CFM at Peak PAGE   ELEVEN
  • 12. ARTIC THERM FLAMELESS HEATING Applications: Pipeline Thermal Expansion De-Humidifying Confined Space Entry Plant & Facility Shut Downs Vessel Coating Curing Pipeline Thermal Expansion Plant/Facility Shut-Downs Storage Tank Shut-Downs PAGE  TWELVE
  • 13. E One Limited – Heavy Equipment Rental • • • • Located in Central and North Central Alberta Strategically located to serve the needs of the demanding construction and energy services industries 40 pieces of heavy construction equipment including excavators, bulldozers and pipe-layers typically rent out at $5,500 to $19,500 per month E-One provides: – Late model equipment – Professionally serviced and maintained fleet – less downtime, and more work time – Best-in-Class brands and models • Historical utilization rate of 60-95% capacity PAGE   THIRTEEN
  • 15. LEADERSHIP TEAM Leonard D. Jaroszuk – President, CEO, Chairman Entrepreneur with 27+ years experience managing public companies engaged in real estate, construction, natural resources and exploration. Serves as a Director on several oil & gas service and manufacturing companies Desmond O’Kell – Vice President, Director and Corporate Secretary Has been with Enterprise Group since its inception. 26+ years experience in corporate development, finance and business operations. Doug Bachman – COO 25+ years experience in corporate finance and management from a tier-one Canadian chartered bank Warren Cabral – CFO Recently served as CFO for AIMCo managing global investments for pensions, endowments and government funds in Alberta. Joined Enterprise group in January 2013 John Pinsent – Director Manu K. Sekhri– Director PAGE   FIFTEEN
  • 16. Financial Summary Capitalization Table Shares Outstanding (Sept 2013) Basic Options Warrants Fully Diluted 52-Week High-Low Market Capitalization Enterprise Value Shareholders Summary In Millions 84.5 ~ 4.7 ~ 1.2 90.4 $0.89-$0.20 69.3 89.3 Major Shareholders Management / Directors / Assoc’s 30.00% + Float and Public ~66.40% Total 100.00% PAGE   SIXTEEN
  • 17. Historical Performance 30% $36.0 20% $31.0 10% $26.0 $21.0 $16.0 $18.5 $17.9 $15.6 0% -10% $11.0 $6.0 -20% $4.4 $1.6 -30% $1.0 -$4.0 2010 -40% -$1.5 2011 Revenue EBITDA 2012 EBITDA Margin Analyst Coverage Liquidity Total Trading Brokerage Firm M Partners Beacon Securities Analyst Tom Varesh Michael Mills Rating Buy Buy Date of Initiation Current Target Period 27-Feb-13 (2014) $2.05 Last 1 Month Last 3 Months Last 6 Months Last 12 Months (2013) 12-Oct-12 $1.00 Source: Company Reports, TSX InfoSuite,  Research Consensus Estimate Average Daily % of Float Volume 578,007 519,308 475,718 360,023 0.97% 0.87% 0.80% 0.60% % of Total 0.68% 0.61% 0.56% 0.42% PAGE   SEVENTEEN
  • 18. CONTACT INFORMATION CORPORATE HEAD OFFICE #2, 64 Riel Drive, St. Albert Alberta, Canada T8N 5B3 Phone: 780.418.4400 Fax: 780.418.1941 Toll Free: 888.303.3361 INVESTOR RELATIONS Desmond O’Kell Senior Vice President Phone:780.418.5377 PAGE   EIGHTEEN