corporate presentation - badger daylighting...corporate presentation. badger daylighting: proven...

June 2017

Corporate Presentation

Badger Daylighting: Proven Business Model with Organic Growth

• Proven business model and strong

competitive position

• Excellent organic growth potential in

existing and new markets

• Track record of creating value through

economic cycles

• Balance sheet prudently managed to

withstand cyclicality

• Hydrovac focused strategy

• Executing profitable long-term growth

TSX: BAD Slide 1 June 2017

Financial Summary – Strong Balance Sheet and Historical Return on Invested Capital

Shares outstanding – at May 31, 2017 37.1mm

Market capitalization – at May 31, 2017 $0.9B

Total debt less cash – at March 31, 2017 $41mm

Adjusted EBITDA1– Trailing Twelve Months (TTM) at March 31, 2017 $105mm

Net Earnings – TTM at March 31, 2017 $31mm

Average return on equity (Last 5 Years) 18%

Dividend yield – at May 31, 2017 1.7%

1 For definition of Adjusted EBITDA see slide titled Non-IFRS Financial Measures.


The Badger Daylighting Process

The Badger Daylighting process involves exposing underground infrastructure to daylight:

• Purpose-built Badger units with well trained professional operators.

• Pressurized water stream excavation. Nozzle design, pressure and volume are critical to prevent damage to underground infrastructure.

• Powerful vacuum system removes soil and debris.

• Non-destructive excavation.


Safety – It’s What We Do. It’s What We Deliver.

The Badger Daylighting Process

Badger has developed a wide range of applications for its Badger units*


*See Appendix for

additional uses

The Badger Process Advantage

• Safe → helps prevent damage to underground infrastructure

• Time is Money → keeps projects on schedule/improves returns for infrastructure owners

• Locating underground conflicts makes traditional excavation equipment more productive

• Precise excavation → can reduce the size and amount of excavating required

• Excavate through frozen ground

• Excavate in hard-to-reach areas → under infrastructure, in confined spaces.

Badger’s Culture: Serve our customers with the Best Trained Operators and the Best Trucks in the business.


Badger Daylighting

Offers a unique service to

attractive markets

Badger has an excellent

business with a great

track record

Proven business model

and strong competitive

position

Executing on a focused

strategy


Proven Business Model and Strong Competitive Position

• Organic growth model: build

one truck at a time and put it

to work which lowers

operating risk

• Flexibility to adjust truck build

rate and to manage fleet

utilization over business cycle

• Managed successfully through

the 2014-2016 oil & gas

downturn by repositioning

fleet

• Well positioned for growth


-

200

400

600

800

1,000

1,200

-

50

100

150

200

250

300

350

400

450

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Fle

et

(# o

f H

yd

rovac

Un

its)

An

nu

al R

even

ue (

$m

m C

AD

)

Badger Hydrovac Units and Revenue Last 10 Years

Number of Badger Units Revenue ($mm CAD)


Proven Business Model: Local Branches Part of Large Network

• Growing network of locally operated corporate and operating

partner branches.

• Always say “yes” when a customer calls… find a truck.

• Focus on building a diverse, local customer base… don’t rely solely

on large projects.

• Decentralized model - local Area Managers are entrepreneurs that

manage their own P&L’s – bonus based on pre-tax earnings.

Operating partners are independent entrepreneurs.

• Key performance indicator (KPI) tracking in safety, utilization, margin,

operating expenses, customer growth and staff retention.


Badger leverages significant scale

advantages across its branch

network

• Over 100 Branches and over 150 Service

Areas1

• Over 1,000 Badger Hydrovac units; 83%

operated from Corporate locations, and

17% from Operating Partners2

• Provides service in 6 provinces and 41

states.

1 Service Areas are locations where Badger provides services to local

customers regardless of whether there is a physical location where Hydrovacs

and staff are located. A Branch has a physical location, staff and Hydrovacs.2 As at December 31, 2016.




Proven Business Model: Flexibility over Business Cycles


Badger’s extensive

network and market

knowledge allowed it

to aggressively

reposition the

business to offset the

steep decline in oil &

gas related markets -

50

100

150

200

250

300

350

400

450

2012 2013 2014 2015 2016

Reven

ue (

$m

m C

AD

)

Hydrovac revenue has shifted to non-oil & gas

Hydrovac Service Revenue - Non-Oil and Gas Hydrovac Service Revenue - Oil and Gas Other Revenue


20,000

22,000

24,000

26,000

28,000

30,000

32,000

34,000

36,000

12% 14% 17% 19% 21% 24%

Reven

ue P

er

Tru

ck/m

on

th

(RP

T)

IRR

Pre-Tax IRR at Different Revenue Per Truck (RPT) Levels*

Very Attractive Economics: Building our own trucks provides a

number of operating advantages:

• Best in class design for greater

efficiency (we operate more

Hydrovacs than anyone)

• Lower life cycle operating costs

• Flexibility to adjust build rate to

meet demand

*Assumes production cost of $400,000, 10 year

economic life, $0 terminal value, 25% EBITDA

margin.

For definition of revenue per truck see slide

titled Non-IFRS Financial Measures.


Source: Management Analysis

Proven Business Model andStrong Competitive Position

Badger Engineering and Truck Build

• Vertical integration in truck design and build

• Badger units designed to optimize life cycle costs, at a lower initial capital cost versus purchasing from third party manufacturers

• Design input from over 1,000 operators


Badger’s Red Deer, Alberta manufacturing facility

Offers a Unique Service to Attractive Markets

• Badger is the leader in introducing Hydrovac technology to new customers and geographic markets

• Growth driven via penetration in existing markets and entering new markets

• Of 347 US Metropolitan Statistical Areas (MSAs)* in the lower 48 states, Badger currently provides service to only 73 – significant untapped market potential

*US Census Bureau, 2010 Census – an MSA is a geographic region with a population of over 100,000 people.




Current Badger service area

MSAs per 2010 Census data;

lower 48 states

Significant geographic

growth opportunities to

pursue with Badger’s

proven business model


• $4 trillion in estimated US Infrastructure needs over next 10 years*• Hydrovac is a small and growing part of infrastructure construction• Badger has proven that Hydrovac has a wide range of infrastructure applications • Oil & gas industry appears to be bottoming - Badger is well positioned to capitalize on any

recovery


*Source: American Society of Civil Engineers

Badger serves infrastructure markets:


Badger is the market leader with “first mover” advantage in many markets

Badger has pioneered Hydrovac use across a wide range of sectors and geographies.

Badger is the industry leader in driving Hydrovac acceptance and market penetration.


-

50

100

150

200

250

300

350

400

450

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Reven

ue (

$m

m C

AD

)

Revenue Mix Between Canada and the US ($mm CAD)

US Canada

Badger Business Development Focus

• Local branch managers are main customer contact

• Business development efforts at local, regional, national levels

• Focus on geographic and customer segments (local and head office contacts)

• Over 70 business development staff across North America

• Sales management tools and processes

• Training

• Customer tracking

• Expand relationships with existing customers and target new customers to broaden revenue base




Badger’s proven business model provides an advantage in keeping utilization rates high and operating costs low

• “Build a service business from the inside-out” – Badger’s organic

growth

o Add a Badger unit train operators sell the service

• Leverage core Hydrovac expertise (~90% of our business)

o Best Trucks, Operators, Training, Value

o Safety and reliability is our priority

• Strong local operations and broad customer base

o Local focus with national scale

o Incentivized management

• Leverage our opportunities

o Drive Hydrovac penetration in existing markets

o Develop new applications for Hydrovac

o Significant untapped market potential

Executing on a Focused Strategy

Executing on a Focused Strategy

Build the Business Platform:

- Build out platform to support sustainable growth and reduce costs

- Human resource organization

• Recruiting, onboarding/training

• Career management and management training

• Improve operator and area manager retention


- Common operations processes and procedures

• Establish consistent operating platform across organization

• Efficiencies in admin/back office

• Operating efficiencies

• Leverage supply chain opportunities

- Technology

• Badger Hydrovac technology

improvements

• Find ways to dig more

efficiently, reduce customer

disposal costs and water usage

Strategic Milestones


Strategic Milestones (3-5 years):• Double the US business again within 3 to 5 years

• Grow Adjusted EBITDA by a minimum of 15% per year

• Target Adjusted EBITDA margins of 28% to 29%

• Drive fleet utilization and RPT above $30,000/month

Offers a unique service to

attractive markets

Proven business model

and strong competitive

position

Executing on a focused

strategy

Badger has an excellent

business with a great track

record

The Badger Business Advantage

A Hydrovac Focused Business

• Focus is on the Hydrovac business – we are the industry leader

• ~90% of revenues from Hydrovac services

• Scale of 4X our next largest competitor

Growing Network of Locations

• Always provide a unit to service customer needs.

• Size and scale advantages – manage utilization and operating costs

• Common systems and processes

Strong Operations Focus

• Safe operations

• Operator training

• Operating cost management

• Badger Hydrovac design and manufacture


Sales and Business Development

• Strong local branch network: Corporate and

operating partners

• Customer relationships and repeat business

• Broad customer base boosts utilization and

lower costs

Diversified and Expanding Markets

• Geographic segments

• End use segments

• Wide and growing range of uses for

Hydrovacs

Strategy: Leverage Badger’s core Hydrovac operations and related technology

Forward Looking Statements

This presentation contains forward-looking statements reflecting certain current forecasts of certain aspects of the company’s future. It is based on current information that management has assessed, but which by its nature is dynamic and subject to rapid and even abrupt changes. Forward-looking statements may include but are not limited to statements regarding:

• Our goal to double the size of our US business in the next 3-5 years while growing our Canadian operations by 10-15% annually and our targeting of RPT (revenue per truck per month) at $30,000 and adjusted EBITDA margin at 28-29%;

• Our ability to continue to expand the use of its technology;

• Our belief that Badger has significant growth potential;

• Our belief that with our ongoing diversification into non-oil & gas infrastructure segments, Badger is well positioned to benefit from infrastructure renewal and our belief that Badger also remains well positioned to capitalize on recovery in our oil & gas markets; and

• Our expectation that Badger will take advantage of growth opportunities to deploy incremental capital, which the company expects will generate attractive shareholder returns.

Badger Daylighting Ltd.’s actual results could differ materially from those stated or implied by the forward-looking statements within this presentation due to risks and uncertainties associated with its business, including, but not limited to:

• Our dependence on our customers;

• Our ability to attract and retain key personnel;

• Competition in all aspects of our business;

• Changes in profit margins due to pricing changes driven by market conditions, competition, regulatory factors or unforeseen factors; and

• The effect of general economic, credit and capital market conditions on our business.

The forward-looking statement with this presentation should be considered in the context of these and other risk factors disclosed in our most recent filings included with the Canadian Securities Administrators, which are available on the SEDAR disclosure system (www.sedar.com).

All future written and oral forward-looking statements made by us or on our behalf are also subject to these factors. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. 22

Non-IFRS Financial Measures

This presentation contains references to certain financial measures, including some that do not have any standardized meaning prescribed by IFRS and that may not be comparable to similar measures presented by other corporations or entities. These financial measures are identified and defined below:

“Adjusted EBITDA” is earnings before interest, taxes, depreciation and amortization, share-based compensation, gains and losses on sale of property, plant and equipment, and gains and losses on foreign exchange. Adjusted EBITDA is a measure of the Company’s operating profitability and is therefore useful to management and investors as it provides improved continuity with respect to the comparison of our operating results over time. Adjusted EBITDA provides an indication of the results generated by the Company’s principal business activities prior to how these activities are financed, the results are taxed in various jurisdictions, and assets are amortized. In addition, Adjusted EBITDA excludes gains and losses on sale of property, plant and equipment as these gains and losses are considered incidental and secondary to the principal business activities, it excludes gains and losses on foreign exchange as such gains and losses can vary significantly based on factors beyond our control and it excludes share-based compensation as these expenses can vary significantly with changes in the price of our common shares.

For a reconciliation of Adjusted EBITDA to net profit, please see the most recent Management Discussion and Analysis.

“Revenue per truck per month” (RPT) is a measure of hydrovac fleet utilization. It is a measure of hydrovac revenue only. The RPT is calculated by combining Canadian and US dollar hydrovac revenue without converting for exchange differences, dividing the hydrovac revenue for the period by the number of hydrovacs in service throughout the period, and further dividing by the number of months in the period.

23

Appendices

Badger Management Team

Paul Vanderberg

President and CEO, Director

Paul has been the President and CEO of Badger since August, 2016. Prior to that he spent 14

years as President of Winroc SPI, the construction products division of Superior Plus Inc.

which operated a North American decentralized fleet-based service business. He held

increasingly senior positions with USG Corporation, with general management responsibilities

for operations in the USA, Canada and internationally for the previous 16 years. Paul holds a

BA and MBA from Michigan State University.

Gerald Schiefelbein

Vice President Finance and Chief Financial Officer

Jerry joined Badger in June, 2014, bringing broad international financial experience to the

Company. He has held finance positions in the oil & gas industry in North America, Europe

and the Middle East. Immediately before joining Badger, Jerry spent five years as the CFO for

Ivanhoe Energy in Calgary. Prior to Ivanhoe he was the Chief Financial Officer for BP America’s

based crude oil and refined products trading organization. Jerry has a degree in finance from

the University of Wisconsin at Madison and a Masters of Management from Northwestern

University’s Kellogg Graduate School.

John Kelly

Chief Operating Officer

John joined Badger as Vice President – United States Operations in September 2011. Prior

thereto, John was employed by Waste Management Inc. for 18 years holding various

positions in hauling, transfer and recycling operations. John held positions including District

Manager, Director of Operations and most recently Midwest Vice President for WM Recycle

America, responsible for 24 recycling facilities in the United States and Canada, with more

than 800 personnel and revenues in excess of $150 million. John holds a BA from Marist

College in Poughkeepsie, New York.

Badger Management Team

Tracey Wallace

Vice President, Human ResourcesTracey joined Badger in June 2017. Tracey has extensive business

experience across several industries in Canada, the US, and

globally. Prior to joining Badger, Tracey held the positions of Senior

Vice-President for Carillion Canada, and Officer and Vice-President,

Human Resources for the ATCO Group of Companies. Tracey has

served on the boards of the ALS Society of Canada, the ALS Society of

Alberta, and Rokstad Power. Tracey holds a Bachelor of Science degree

with a major in Business Administration, an MBA specializing in HR

Management, and holds the Certified Professional Human Resources

(CPHR) designation.

Elizabeth Peterson

Vice President, US Operations – EastElizabeth started with Badger in April 2015. Prior thereto, she was

employed by Clean Harbors Environmental Services, Inc. for 24 years

holding various positions in both sales and operations. Elizabeth held

positions including SVP East Region, Vice President Industrial Services

and Vice President of InSite Services. Elizabeth holds a BA from Smith

College in Northampton, MA as well as a MBA from Duke University’s

Fuqua School of Business.

Mike Tunney

Vice President, US Operations – CentralMike joined Badger as VP of Operations - Central in January of 2017.

He spent 35 years with Waste Management, a major Environmental

Service company in several key strategic leadership roles. Mike joined

Waste Management in 1983 as a Project Manager for the

Construction Services Division. He advanced throughout his tenure

and most recently, was the Area Director of Operations for the

Midwest region.

Tim Reiber

Vice President, Business DevelopmentTim transitioned into the newly created VP BD role in May,

2017. Prior to that he was VP, US Operations - West from May

2015. Tim has also held the roles of Regional Manager and

Director of Operations of Badger for the West Region in the US

since joining the Company in June 2012. Prior to joining

Badger, Tim was the Senior Regional Director for Factory Motor

Parts, a wholesale auto part distributor. Tim holds a BS/BA

from the University of Florida in Gainesville, FL.

Kevin Carnahan

Vice President, US Operations – PacificKevin joined Badger in March of 2017. Prior to that Kevin spent

more than 23 years within the environmental service industry in

leadership roles. Kevin previously spent 11 years with Clean

Harbors. He progressively advanced throughout his tenure

there and most recently, was the Vice President of Northern

California and Nevada.

Wade Wilson

Vice President, Canadian OperationsWade joined Badger as the Director of Operational Excellence

in January of 2017. He is now VP of Canadian Operations.

Prior to joining Badger he spent over 38 years with Winroc.

Wade joined Winroc in 1978 as a Warehouse, Fleet and

Customer Service Representative. He held various positions

including VP of Winroc Operations of North America. After

2010, Winroc was acquired by Superior Plus and Wade held

the position of VP of Operations, Canada. He was responsible

for all aspects of operations across a decentralized branch

network.

Mark Lyle

Vice President, Canadian Operations – WestMark has been with Badger for over 15 years. Mark has

held positions including Director of Business Development,

Regional Manager for both Western and Eastern Canada,

Canadian Sales Manager and BD Representative. Mr. Lyle

holds a Bachelor of Commerce degree from the University

of Calgary.

George Chung

Vice President, Canadian Operations – EastGeorge joined Badger in October 2015 as Director of

Eastern Canada Operations and became VP, Canadian

Operations - East effective January 2017. Prior thereto, he

was the President of Greenvac Inc. in Toronto. George

developed, built and marketed a large Hydrovac disposal

site in downtown Toronto for Greenvac.

Badger Board of Directors

David CalnanDavid is a businessman whose principal business activities are with Rocky Layman Energy Inc., an Alberta

based oil & gas company, and Am-Tek Solutions Inc., a private investment management company. He has

been President of Rocky Layman Energy Inc. since 1989 and of Am-Tek Solutions Inc. since 2001. David

has also served as an officer and director of ten other public companies and a number of private

companies. David was a partner with the law firm of Shea Nerland Calnan LLP from 1990 until 2013. He is a

member of the Law Society of Alberta and received his BA from Queen’s University in 1977 and his LLB

from the University of Toronto in 1981.

Catherine Best

Chair, Audit CommitteeCatherine is a corporate director, currently serving on the boards of AltaGas Ltd., Canadian

Natural Resources Limited, Superior Plus Corporation and Aston Hill Financial Inc. From 2000 to

2009 she was the Executive Vice President, Risk Management & Chief Financial Officer of the

Calgary Health Region. Prior to 2000 she was a Corporate Audit Partner with Ernst & Young.

She holds a Bachelor of Interior Design degree from the University of Manitoba. Catherine is a

Chartered Accountant and was awarded her FCA designation in 2005 and her ICD.D in 2009.

Grant BillingGrant is a corporate director who has served as a director for more than 9 companies. He was

the Chairman of Superior Plus Corp. from 2011 to 2014 and served as its Chairman and CEO

from 2006 to November 2011 and its Executive Chairman from 1998 to 2006. Prior to that, he

held various senior management positions with exploration and production companies including

President & CEO of Norcen Energy Resources Limited and Sceptre Resources Incorporated. Grant

is currently a director of Pembina Pipeline Corporation and a director of Cortex Business

Solutions Inc. He holds a Bachelor of Science degree from the University of Calgary and is a

Chartered Accountant.

Bill Lingard

Chair, HSE CommitteeBill is currently a Director of BlackSquare Inc. and was the Chairman of the Board for the Southern Alberta

Institute of Technology (SAIT) until September 2014. Prior to that, he was the President and COO of URS

Corporation in San Francisco from 2013 to 2014; the President, CEO and Board member of Flint Energy

Services Ltd. from 2005 to 2012; and the COO of Nabors Drilling Canada from 2002 to 2005. He holds a

Bachelor of Engineering degree from Memorial University in St. John’s, Newfoundland and completed

business management courses at the University of Texas.

Glen Roane

Board ChairGlen is a businessman and corporate director who has served as a director of more than 15

companies since 1997 and who also served two terms as a Member of the Alberta Securities

Commission. He is also currently a director of Enerplus Corporation, Crown Capital Partners Inc.,

and GBC American Growth Fund Inc. Prior to 1997, Glen was employed in the financial services

industry with employers including the Toronto Dominion Bank, Lancaster Financial Inc and Burns

Fry Limited. He holds a BA and MBA from Queen’s University, in Kingston, Ontario and the ICD.D

designation.

Garry Mahaichuk

Chair, HRC Committee Garry has served as a director on 14 companies since 1996. He is currently a Director of: Greenfields

Petroleum Corp, Nordic Petroleum AS, RLG International, Nordcon Oil and Gas AS. He is also currently a

Director and President of Nordic America’s Inc., and Nordcon Canada Inc. Between 2007 and 2009 he was

the President and CEO of Toromont Energy Systems Inc., and from 2005 to 2007 he was Vice President of

Heavy Oil and Oil Sands for Husky Energy Inc. Garry holds a B.Sc. Mechanical Engineering from Queen’s

University, a PMD diploma from Harvard University and an ICD.D designation from the Institute of

Corporate Directors.

Summary Financial Results

$mm CAD FY 2013 FY 2014 FY 2015 FY 2016 Q1 2017

Revenue 324,594 422,219 404,620 404,202 101,811

Gross profit 109,883 139,574 121,515 119,905 23,640

Adjusted EBITDA 94,169 120,121 107,759 104,763 19,856

Profit before tax 57,827 73,519 41,243 47,131 5,531

EPS – Diluted $1.09 $1.43 $1.04 $0.78 $0.10

Badger units 791 998 1,018 1,024 1,031

RPT 34,600 32,169 25,726 24,815 24,747

Badger: SafetySafety – It’s What We Do. It’s What We Deliver.

• Train with the Best

• Badger uses a mentor training process to

train new operators

• “Best Operator, Best Truck”

Organizational Chart and Responsibilities

BADGER CLIENT

BEST OPERATOR & BEST TRUCKProvide good value and service = satisfied client

AREA MANAGERAttract and develop the best operators, trucks and safety

program in Hydrovac industry

REGIONAL, PLANT & ADMIN STAFF Attract and help Area Managers to be successful

by providing fleet, safety and business

support plus best trucks

CORPORATE OFFICEProvide strategic direction,

support for the organization

and create a winning

culture

Badger Daylighting Celebrates its 25th

Anniversary in April 2017

Badger Daylighting is twenty-five years old! In 1992 Badger Daylighting (Badger) set out with a

vison to use hydrovac excavation technology to protect workers, underground infrastructure,

the public and the environment, leading to the ‘birth’ of a new industry. Over the course of 25

years Badger has made that vision a reality and led the industry’s growth across the US and

Canada.

Badger’s culture is strong and is centered around serving the customer with the Best Trained

Operators and the Best Trucks in the business. Badger’s focus on safety, our customers and

support for our operators has driven continued business growth.

From a base in west-central Alberta Badger has grown to over 1,700 employees in over

100 locations throughout the United States and Canada.

After 25 years of successfully growing demand for non-traditional, safe excavation Badger

continues to innovate, improving its technology and business practices to meet safety,

regulatory and customer demands. Staying focused on safety, our people, and satisfying

customer needs with the Best Operator and Best Truck is a timeless strategy and will be the

basis for Badger’s next 25 years.

Thanks to our loyal customers and employees, who are the heart of the company.

Safety – It’s what we do. It’s what we deliver.

Badger Hydrovac Uses

Badger serves a broad customer base, with a diverse set of applications that go well beyond excavation

Utilities Oil & Gas Power Generation Transportation

• Utility pole holes – new and replacement

• Utility verification – daylighting, test

holes, pot holes, sight holes

• Cable installation – trenching and pits

• Submersible transformer vault cleanouts

• Gas distribution construction

• Valve case cleaning and verification

• Locating lost pipe

• Gas feeder station maintenance and

upgrading

• Integrity work

• Pipeline crossings

• Directional drilling

• Site abandonment

• Spill clean up

• Frac tank clean out

• Frac sand trap clean out

• Well automation – trenching and potholing

• Rig cleaning

• Thawing frozen lines

• Trenching for pipeline installation

• Various cleaning applications – cooling

tower cleaning, pond and retaining vessel

cleaning.

• All types of maintenance

• Transmission & distribution system

maintenance

• Derailment cleanup

• Rail car cleaning

• Locating bottom of foundations.

• Pilot holes for soil sampling

• Sign and post holes

• Switch heaters – pits for heater and

trenching for power and drainage lines.

Industrial Engineering Construction Other Applications

• Thawing frozen lines and conduits

• Line repairs – service pits

• Cable installation – trenching and pits

• Utility verification

• Fly ash removal

• Vessel removal

• Tower cleaning

• Materials Handling, Maintenance &

Cleanup

• Sub-surface utility engineering /

prospecting (potholing)

• Conflict location – renovation

• Cleanup of drilling mud

• Concrete form cleanup

• Disaster response

• Tunneling

• Drain and weeping tile installation and

cleanout

• Texas gate cleanouts

• Lowering basements

• Grain elevator cleanouts

End Use Market and Geographic Diversification is Changing Seasonality

Continued non-oil & gas growth along with lower dependence on oil & gas revenue are

contributing to changing seasonality.

-

20

40

60

80

100

120

2012 2013 2014 2015 2016 2017

Reven

ue (

$m

m C

AD

)

Quarterly Revenue

Q1 Q2 Q3 Q4

Badger Revenue per Truck per MonthMulti-Currency Metric

23,317

28,106

25,197

21,105

23,038

28,062

27,023

24,747

15,000

16,500

18,000

19,500

21,000

22,500

24,000

25,500

27,000

28,500

30,000

Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017

Badger Hydrovac UnitsTotal Units: Canada and the US

136 162 184 185 212

241 285

334

413 407 412

504

630

791

998 1,018 1,024 1,031

100

200

300

400

500

600

700

800

900

1,000

1,100

• Change in total units year-over-year represents the net of additions and retirements

• Badger average fleet age was approximately four and a half years as of December 31, 2016

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