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The ShawCor Difference
STRONGFUNDAMENTALS
FUNDAMENTALSTRENGTHS
Investor Presentation
March 2014
2
The Global Leader in Pipe Coating and Related Products/ Services
Strategic Global Locations
Proprietary Technology
Track Record of Reliable Execution
Superior Financial Performance
ShawCor at a GlanceA global leader in energy services
3
The company
The market opportunity
The strengths
The future
Agenda
4
>75 >75 Locations
1818
Business Units 88
Employees1 ~ 8000~ 8000
ShawCor Quick Stats
Countries
Market capitalization 2 ~ $2.5B~ $2.5B
1 Estimated2 As of February 28, 2014 5
Bredero ShawCoatings- corrosion protection- insulation- weight / protective- internal flow efficiency
GuardianDrill pipe/tubularinspectionInventory management services
FlexpipeFlexible composite pipe for:- oil and natural gas
gathering lines- oilfield water and
fluids
PIPELINE & PIPE SERVICES
DSG-Canusa
Heat shrinktubing for sealing and protection
ShawFlex
Control, instrumentationcable
PETROCHEMICAL& INDUSTRIAL
Canusa-CPS
Weld inspection- radiographic- ultrasonic
Shaw Pipeline Services
Joint protectionPipe coating materials
Eight Business Units– All Ranked #1 or #2
SocothermCoatings- corrosion protection- weight / protective- thermal insulation
6
Active in All High Growth Segments
7Rehabilitation
Deepwater Offshore LNG
Shale
Conventional Potable Water
Enhanced Recovery (EOR)Oil Sands
Technology Sets Us Apart
270 Issued Patents – 57 technologies
164 Patents Pending – 51 technologies
86 Proprietary Formulations
20 Scientists at Corporate Laboratories
Subsea Test Facility
Mobile Plant Technology
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The Need for New Technologies
HPPC
Next GenerationLand Coatings
New High Performance Powder Coating (HPPC) and SureBond coatings provide increased reliability
Shale PlaysSpoolable composite pipe offers corrosion resistance, faster installation and lower total installed cost FlexPipe Linepipe
Offshore Concrete Weight Coating provides seabed stability and pipeline protection
Thermotite® ULTRA™
DeepwaterProprietary passive insulation coating provides flow assurance for subsea pipelines and SURF (Subsea Umbilicals, Risers and Flowlines)
HeviCote®
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Capability Sets Us Apart
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Uniquely Capable to Serve the Largest Projects
Major Expansions/Upgrades Completed in 2012
Complete ‘Pipe Mill to Pipeline’ Logistics
Full Product Array and Back-up Facilities
Reduce Client’s Construction Schedule Risk and Pipeline Performance Risk
New MLPP plant in Kabil
Expanded Deepwater wharf in KabilExpanded Kuantan pipecoating facility Two major facilities in Asia/Pacific
The company
The future
The market opportunity
The strengths
Agenda
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Growth in energy demand (1.3% per annum)1
Rising depletion (6.2%-7.5% per annum)2
New sources in more“challenging” locations
Increasedinvestment in pipeline
infrastructure
DEMAND
DEPLETION
TECHNOLOGY
1 Source: EIA 2011-2035 2 Avg. production-weighted worldwide decline rate for post-peak oil fields – IEA WEO 2013, gas fields – IEA WEO 2009
Key Pipeline Drivers
The Market Opportunity
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$0
$50
$100
$150
$200
$250
$300
$350Pipeline Investment
(US$ billions)
Source: Oil and Gas Journal,Douglas Westwood
Structural Change in Pipeline Infrastructure
Increased ActivityLarger Projects
Structural change has taken place13
The company
The market opportunity
The future
The strengths
Agenda
14
1. CLOSE W ITH CL I ENTSClient Relationships and Track Record
Strong relationships with all major global players
Americas EMAR Asia Pacific
* Partial list only15
1. CLOSE W ITH CL I ENTSStrategic Locations to Service All Major Basins
Coating Facility
Portable Plant
Other Operating Facility
Sales Location
Socotherm Location
75+ Global locations16
Effective Acquisition Program
New Growth Platforms ‘Flexpipe’
Geographic Expansion ‘Brazil’
Expanded Services ‘ShawCor CSI’
Socotherm Acquisition
Brazil, October 2010 CSI, March 2011
Flexpipe, July 2008
Socotherm, Oct 2012
Socotherm LaBarge, April 201317
The ShawCor Manufacturing System
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Systems for Reliable Project Execution
A Process for Continuous Cost
Reduction
Standard Program Across ShawCor
“SMS” Currently Generates >$20
million in Annual Savings
ShawCor Delegates at AME Toronto Conference SMS Achievement Award
Daily Management Process (DMP)
Cash flow > $1 Billion from operations (6 yr)
Term Debt $350 Million 10.4 years @ 3.65%
Cash Position + Available Credit Facilities to fund growth = $295 Million
Net Resources Competitive Advantage
Able to Simultaneously Execute:
The Largest ProjectsGeographic ExpansionNew TechnologiesNew Product ProgramsAcquisitions
4. F I NANC IAL STRE NGTH
Financial Strength
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The company
The market opportunity
The strengths
The future
Agenda
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Highlights:FY 2013 vs. FY 2012
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Revenue $ 1,847.6 +25.8%
EBITDA $ 391.2 +47.5%
EPS $ 3.51 +40.4%
Backlog $ 617 -27.4%
Record Performance
All values in C$ millions, except EPS
Growth Opportunity - Deepwater
Santos Pre-Salt
Gulfaks Sor Ortje
Visund
15/06 Western HubKizomba Satellites
Lianzi
WDDM Ph 9
Erha Ph 2
Mad Dog
Hebron Ph 3
Egina
Block 31, 32
Linnorm
Mallikai (Block G)
Block 18/Plutonio
Lucapa
Gendalo/Gehem
Rosebank
Luva Oseberg Delta
Liuhua 16-2
Equus
Kraken
Jangrik
T.E.N.Satellites
Hadrian North
Deepwater CAPEX of $223 billion expected over the next five years1
1 Douglas-Westwood
Global leader in deepwater insulation coating22
DeltahouseChevron Moccasin
Chevron Buckskin
Total Kaombo
Growth Opportunity - LNG
SABINE PASS LNG
ARROW LNG
BRASS LNG
KITIMAT LNG
OLOKOLA LNG
YAMAL LNG
FISHERMANS LANDING LNG
GULF LNGDARWIN LNG
PILBARA LNG
Brunei LUMUT II LNGMalaysia T9 LNG
EG T2 LNG
CAMEROON LNG
Damietta 2 LNG
TANZANIA LNG
LNG CANADA
MOZAMBIQUE LNG
PACIFIC NORTHWEST LNGBG GROUP LNG
KITSAULT LNG
VLADIVOSTOK LNG
SHTOKMAN LNG
ADGAS LNG
Algeria LNG
Arun LNG Bontang LNG
ATLANTIC LNGBrunei LNG
Damietta LNG
Egyptian LNGQATARGAS LNG
KENAI LNG
Marsa El Brega
Malaysia LNG
Nigeria LNG
Nordic LNG
Northwest Shelf LNG
Qalhat LNG
Pluto LNGPERU LNG
RASGAS LNG
SAKHALIN LNG
Snohvit LNG
Tangguh LNG
Yemen LNG
ANGOLA LNG
AUSTRALIA PACIFIC LNG
DONGGI SENORO LNG
GLADSTONE LNGGORGON LNG
ICHTHYS LNGPNG LNG
QUEENSLAND CURTIS LNGWHEATSTONE LNG
CAMERON LNGFREEPORT LNG
LAKE CHARLES LNG
DCEP LNG
DOMINION COVE POINT LNG
GULF COAST LNG
OREGON LNG
OPERATINGUNDER CONSTRUCTIONPLANNED
Global LNG demand to increase by 200 mtpa by 2025 = 23 “Wheatstone’s”1
Global gas demand to increase 43% to 20302
1 World LNG Report 2011, LNG 17 2012, Chevron Wheatstone Project Overview2 BP Energy Outlook 2013
LNG growth = New pipeline infrastructure23
JORDAN COVE LNG
EXXON/ IMPERIAL LNG
BALTIC LNG
Growth Opportunity – Global Shale
SOURCE: PACWEST CONSULTING PARTNERS
Will account for about 46% of US Natural Gas production by 203570% of global shale deposits are outside North America
$2.6 Billion market opportunity to drive Flexpipe growth24
Growth Opportunity - Aging Pipeline Infrastructure
10% of ShawCor’s land pipeline coating revenue is for pipeline replacement and is a rapidly growing segment
25
Derived from http://chartsbin.com/view/1322
Source: Douglas-Westwood
Upcoming Major Projects
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Competing LNG projects to
export low cost North American
gas to Asia
Brazil pre-salt oil production to
increase to 2 million barrels per day by 2020
Growing West African oil production - Nigeria,
Angola, Congo - to meet needs of
emerging Asian economies
New, large gas discoveries
positioning East Africa to become a major global LNG
exporter
Australia NW Shelf, Malaysia, Indonesia
LNG projects supporting growth in emerging Asian
economies
Additional pipelines from Russia to offset
W. European depletion
Gulf of Mexico Deepwater activity
increasing as majors target large reserves
Inadequate pipeline infrastructure to
accommodate new Oil Sands and Shale
developments
Additional North African pipelines to Europe providing
natural gas
Oil demand in India and China to increase by 10 million barrels
per day by 2035
Gas
Oil
1
2 3 4 5
6
78910
Underway
UpwardTrend to 20161) Secure Major Upcoming Projects
2) Product/ Geographic Expansion at Flexpipe
4) Strengthened Acquisition Program
Current Growth Programs
3) Profit Improvement at Socotherm
27
Underway
Underway
Why Invest in ShawCor
ShawCor is the Global LeaderEstablished Record of Superior Shareholder ReturnsWell Positioned for Future Growth
28
The ShawCor Difference
STRONGFUNDAMENTALS
FUNDAMENTALSTRENGTHS
Investor Presentation
March 2014
