Investor Presentation. May 2018

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Lorraine Williams
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1 Investor Presentation May 2018

2 Forward-Looking Information Unless otherwise specified, all dollar amounts are expressed in Canadian dollars. Reference in this document and hereafter, to the Company, or to Stuart Olson means as the context may require, Stuart Olson and all or some of its subsidiaries or joint ventures. Certain information contained in this document may constitute forward-looking information. This information relates to future events or Stuart Olson s future performance. All statements, other than statements of historical fact, may be forward-looking information. Forward-looking information is often, but not always, identified by the use of words such as seek, pursue, capitalize, anticipate, plan, momentum, expect, forecast, continue, and similar expressions. This information involves 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 information. The Company believes that the expectations reflected in this forward-looking information are reasonable but no assurance can be given that these expectations will prove to be correct and such forward-looking information included in this document should not be unduly relied upon by investors as actual results may vary. This information speaks only as of the date of this document and is expressly qualified, in its entirety, by this cautionary statement. While the Company may elect to do so, unless required by applicable law, it undertakes no obligation to update this information to reflect new information or circumstances at any particular time. The Company strongly encourages readers to review the forward-looking information section of our First Quarter 2018 Management s Discussion & Analysis ( MD&A ) for greater detail. 2

3 One Brand Streamlined INTEGRATED SOLUTIONS PROVIDER INDUSTRIAL GROUP BUILDINGS GROUP COMMERCIAL SYSTEMS GROUP endorsed brands 3

4 Strategic Priorities Grow the Core Diversify Support Growth Industrial Group Integrated Solutions Provider Expand service capabilities and diversify into additional markets Increase MRO and General Contracting market share Continued focus on operational excellence Buildings Group Renewed Focus/ Expansion Grow market share in Ontario Capitalize on growth opportunities in existing markets Selectively expand design-build capabilities Commercial Systems Group Leverage Competitive Advantage Expand geographically, focusing on Ontario Capitalize on growing infrastructure spend Leverage large project experience 4

5 Balanced Structure Diversified Financial Contribution C$ MILLIONS $356.7 $210.8 $539.9 LTM REVENUE BY BUSINESS GROUP INDUSTRIAL 32% BUILDINGS 49% COMMERCIAL SYSTEMS 19% LTM as at March 31, 2018 C$ MILLIONS $26.1 $15.0 $20.4 LTM ADJUSTED EBITDA BY BUSINESS GROUP INDUSTRIAL 42% BUILDINGS 33% COMMERCIAL SYSTEMS 25% LTM as at March 31,

6 Balanced Access to Diverse End-Markets PUBLIC Healthcare Education Sports & Recreation Civil Transportation Seniors Care INDUSTRIAL Oil, Gas Processing, SAGD Power, Utilities Mining Petrochemical & Refining Pulp & Paper Water & Wastewater PRIVATE Medical Facilities Office, Retail Hospitality Residential Food Light Industrial INDUSTRIAL REVENUE INCLUDES LARGE RECURRING MRO COMPONENT LTM REVENUE BY CONSTRUCTION SECTOR 32% 14% 54% PUBLIC 54% INDUSTRIAL 32% PRIVATE 14% LTM as at December 31,

Diverse Project Portfolio ALBERTA $30M INDUSTRIAL NEW 6-YEAR OIL SANDS MSA ALBERTA $90M INDUSTRIAL 3-YEAR OIL SANDS MSA RENEWAL ALBERTA $100M INDUSTRIAL NEW 5-YEAR OIL SANDS MSA ALBERTA $500M

7 Diverse Project Portfolio ALBERTA $30M INDUSTRIAL NEW 6-YEAR OIL SANDS MSA ALBERTA $90M INDUSTRIAL 3-YEAR OIL SANDS MSA RENEWAL ALBERTA $100M INDUSTRIAL NEW 5-YEAR OIL SANDS MSA ALBERTA $500M INDUSTRIAL 5-YEAR OIL SANDS MSA RENEWAL SASKATCHEWAN $30M INDUSTRIAL NEW 5-YEAR MINING MSA ALBERTA $150M PUBLIC SOCIAL INFRASTRUCTURE MANITOBA $80M INDUSTRIAL POWER DISTRIBUTION PROJECT ALBERTA $70M PUBLIC POST-SECONDARY FACILITIES ONTARIO $80M INDUSTRIAL MINING PROJECT ALBERTA $30M PRIVATE MIXED-USE TOWER BRITISH COLUMBIA $130M PUBLIC MUNICIPAL INFRASTRUCTURE SOUTHERN ONTARIO $200M PUBLIC POST-SECONDARY FACILITIES BRITISH COLUMBIA $30M PUBLIC POST-SECONDARY FACILITIES ALBERTA $280M PUBLIC MUNICIPAL PROJECTS ALBERTA $325M PUBLIC HEALTH CARE FACILITIES ALBERTA $225M PUBLIC POST-SECONDARY FACILITIES SOUTHERN ONTARIO $25M PRIVATE AGRICULTURAL FACILITIES Note: Project dollar values represent total contract value. 7

8 Financial Review

9 Q Consolidated Results Q Q Contract Revenue $265.9M $220.1M Administrative Costs $20.4M $18.6M Adjusted EBITDA Adjusted EBITDA Margin $8.1M 3.0% $5.7M 2.6% Net Earnings (Loss) Diluted EPS $1.6M $0.06 $(0.2)M $(0.01) Revenue up 20.8% Adj. EBITDA up 42.1% $1.8M increase in net earnings Declared 29th consecutive quarterly dividend of 12 cents per common share 9

10 Q Results by Operating Group Industrial Group Contract Revenue Adjusted EBITDA Adjusted EBITDA Margin Q Q $83.9M $4.7M 5.6% $62.4M $1.8M 2.9% Adjusted EBITDA by Operating Group (C$ Millions) $4.7 $5.2 $5.1 Buildings Group Contract Revenue Adjusted EBITDA Adjusted EBITDA Margin $125.2M $5.1M 4.1% $126.1M $5.2M 4.1% $1.8 $1.5 $3.4 Commercial Systems Group Contract Revenue Adjusted EBITDA Adjusted EBITDA Margin $66.3M $3.4M 5.1% $42.3M $1.5M 3.5% Industrial Group Buildings Group Commercial Systems Group Q Q

11 Fiscal 2017 Consolidated Results (1) Contract Revenue $1,017.3M $913.5M Revenue up 11.4% Adj. EBITDA up 12.1% Adjusted EBITDA (2) Adjusted EBITDA Margin (2) $36.0M 3.5% $32.1M 3.5% $11.8M increase in net earnings Net Earnings (Loss) $9.6M $(2.2)M Diluted EPS $0.35 $(0.08) 1) Certain comparative results have been restated as a result of a change in our intersegment eliminations accounting policy. Please refer to the section titled Changes in Accounting Policies in our 2017 MD&A for further information. 2) Please refer to the Non-IFRS Measures section of our 2017 MD&A for further information about our calculation of this metric, which has been calculated in both periods based on our current definition of adjusted EBITDA. 11

12 Fiscal 2017 Results by Operating Group Adjusted EBITDA by Operating Group (C$ Millions) Industrial Group Contract Revenue Adjusted EBITDA Adjusted EBITDA Margin $335.2M $23.2M 6.9% $296.4M $14.0M 4.7% $23.2 $17.3 $20.5 Buildings Group Contract Revenue Adjusted EBITDA Adjusted EBITDA Margin $540.8M $20.5M 3.8% $439.2M $17.3M 3.9% $14.0 $12.1 $13.1 Commercial Systems Group Contract Revenue Adjusted EBITDA Adjusted EBITDA Margin $186.8M $13.1M 7.0% $198.8M $12.1M 6.1% Industrial Group Buildings Group Commercial Systems

13 Strong Financial Position Balance Sheet & Cash Flow C$ MILLIONS, except ratios Mar 31, 2018 Dec 31, 2017 Cash and cash equivalents $32.0 $31.7 Available liquidity $154.3 $153.9 LTM Adjusted free cash flow (1) $25.9 $23.9 Working capital $46.5 $33.1 Long-term debt (excluding current portion) $14.8 $6.0 Convertible debentures (2) $76.7 $76.2 Net debt to LTM adjusted EBITDA 1.8x 1.7x 1) Adjusted to exclude the impact of changes in non-cash working capital balances. 2) Represents the accounting carrying value of the debt component of convertible debentures. 13

14 Market Outlook

15 Public & Private Construction Trends Total Investment in Top 100 Infrastructure Projects (1) Across Canada $199.4 Billion NWT (2) $1.7B 0.8% Less than $5B $5B - $10B $11B - $20B More than $20B BC (14) $23.4B 11.7 % AB (11) $20.5B 10.3% SK (5) $4.0B 2.0% MB (6) $16.6B 8.3% ON (40) $80.9B 40.6% QC (17) $36.4B 18.3% NS (2) $2.0B 1.0% NL (3) $14.0B 7.0% Source: ReNew Canada February 1, 2018 (1) The Top 100 by total project dollar value 15

16 $ MILLIONS Industrials Market Outlook Oil & Gas Maintenance and sustaining capital expenditures are stable and growing through to 2027 Reflects spend required to sustain and improve existing operations Construction expenditures not expected to see growth until early in next decade Other Industrial Markets Leveraging mining sector expertise in Ontario and Northern regions of Canada Executing construction and maintenance projects in the petrochemical sector Pursuing water and wastewater project opportunities $25,000 $20,000 $15,000 $10,000 $5,000 $- Alberta Oil Sands Maintenance and Sustaining Capital Maintenance Sustaining Capital Source: Statistics Canada, BuildForce Canada ( ) January 2018, adjusted by Stuart Olson Inc. for actual and forecasted inflation rates. 16

17 Capital Plan ($mm) Infrastructure Significant Infrastructure Spending Commitments in Recent Budgets 2018 Federal Budget $180.0B into Canadian infrastructure through March 2028 is still the goal To date, over 7,800 projects for $32.0B have been approved $21.9B in Social Infrastructure, $7.1B over next 5 years 2018 Alberta Capital Plan $26.6B five-year infrastructure plan $6.9B in Municipal Infrastructure support Health facilities and equipment investment of $4.6B Schools investment of $2.2B $9,000 $8,000 $7,000 $6,000 $5,000 $4,000 $3,000 $2,000 $1,000 Alberta Capital Plan $- Source: NBF, Alberta Government 5,824 5,585 5,369 5,168 4,654 17

18 Consolidated Backlog $1.6 Billion As at March 31, 2018 BACKLOG BY BUSINESS GROUP BACKLOG BY CONTRACT TYPE 2% 19% 43% 36% CONSTRUCTION MANAGEMENT COST PLUS DESIGN-BUILD TENDERED BACKLOG BY CONSTRUCTION SECTOR 49% 14% BUILDINGS GROUP INDUSTRIAL GROUP COMMERCIAL SYSTEMS GROUP 38% 8% 54% PUBLIC INDUSTRIAL PRIVATE 37% BACKLOG BY GEOGRAPHY (C$ BILLION) $0.2 $0.1 $ % ~$550M PUBLIC ~$525M INDUSTRIAL (SIGNIFICANT MRO COMPONENT) ~$50M PRIVATE $1.1 AB BC SK/MB ON/TERRITORIES 18

19 2018 Outlook Building Momentum Stuart Olson Consolidated Industrial Group Buildings Group Commercial Systems Group Contract Revenue Modestly Higher Meaningfully higher Modestly lower Significantly higher Adjusted EBITDA Meaningfully higher Meaningfully higher Stable Significantly higher Adjusted EBITDA Margin Stable Stable Slightly higher Slightly lower 19

20 Summary

21 Building Momentum Consolidated First Quarter Results Contract Revenue C$ Millions Adjusted EBITDA C$ Millions Net Earnings (Loss) C$ Millions $245.5 $220.1 $265.9 $9.1 $8.1 $1.6 $5.7 $0.7 $(0.2) Q1/16 Q1/17 Q1/18 Q1/16 Q1/17 Q1/18 Q1/16 Q1/17 Q1/18 Note: 2016 comparative results have been restated as a result of a change in our intersegment eliminations accounting policy and definition of adjusted EBITDA. Please refer to the sections titled Changes in Accounting Policies and Non-IFRS measures in our 2017 MD&A for further information. 21

diversification Focused on operational excellence Experienced and disciplined management team Healthy $1.

22 Why Invest in SOX? A streamlined integrated solutions provider One Brand Balanced structure and access to diverse end-markets Continued geographic and sector diversification Focused on operational excellence Experienced and disciplined management team Healthy $1.6 billion backlog Significant growth opportunities in recurring MRO business Well-positioned for planned federal/provincial infrastructure spending A sustainable business model building size, scope and scale Goal to deliver meaningful adjusted EBITDA growth With an attractive quarterly dividend Supported by a strong balance sheet 22

24 Company Information LTM Q Revenue $1.1 billion Backlog as at Mar. 31, 2018 $1.6 billion Shares Outstanding as at May 17, million Market Capitalization as at May 17, 2018 $213.8 million 52-Week Share Price Range as at May 17, 2018 $4.99 to $8.39 Annual Dividend $0.48 $7.76 per share as at May 17, % Employees as at Mar. 31, ,500 (approx.) 24

Third Quarter 2018 Management s Discussion and Analysis November 6, 2018

Third Quarter 2018 Management s Discussion and Analysis November 6, 2018 TABLE OF CONTENTS About Stuart Olson Inc.... 2 Third Quarter 2018 Overview... 4 Strategy... 6 2018 Outlook... 8 Results of Operations...