April 2012
Corporate Presentation
Don Caron, Chief Executive Officer
Jason Theiss, Chief Financial Officer
TSX: BRY
www.brichem.com
TSX: BRYApril 2012
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Certain statements set forth in this presentation are forward looking statements. Although Bri-Chem Corp. management believe
their expectations are based on reasonable assumptions, they give no assurance that expected results will be achieved. There
are numerous risks and uncertainties that can effect the outcome and timing of such events, including many factors beyond the
control of Bri-Chem Corp.’s management.
These factors include, but are not limited to, economic and political conditions, government regulation, commodity prices for oil
and gas, steel commodity prices, fluctuations in the level of oil and gas, the need to effectively integrate acquired businesses,
uncertainties as to Bri-Chem’s ability to implement its business strategy effectively in Canada and the United States, Bri-Chem’s
ability to attract and retain key personnel, currency fluctuations and other factors that affect demand for the Company’s product.
Should one or more of these risks or uncertainties occur, or should underlying assumptions prove incorrect, the actual results
and plans for fiscal 2012 and beyond could differ materially from those expressed in the forward looking statements. Additional
information on these and other factors and uncertainties are described under the heading “Risk Factors” in the Company’s most
recent Annual Information Form (“AIF”) and other continuous disclosure materials filed by the Company with Canadian
securities regulators, which are available to the public at www.sedar.com.
Readers are cautioned not to place undue reliance on this forward-looking information, which is given as of the date it is
expressed. The Company does not undertake to update or revise any forward-looking information, whether as a result of new
information, future events or otherwise, except as required by law.
Furthermore, certain measures we use are not recognized measures under International Financial Reporting Standards
(“IFRS”). Specific measures used are earnings before interest, taxes, depreciation, amortization and non-cash stock based
compensation (“EBITDA”). We strongly recommend the participants review the discussion of these statements in the
“Management’s Discussion and Analysis – Non-IFRS Measures and Reconciliations” section of our 2011 Annual Report.
Forward-Looking Statement
TSX: BRYApril 2012
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Company Overview
Business Divisions: � Drilling Fluids
� Distribution – 350 Products
� Proprietary Blending & Packaging
� Steel Pipe� Distribution – Seamless Pipe
� Manufacturing – Large Diameter
� Industry: � Oil and Gas
� Geographic markets: � Canada� USA
TSX: BRY April 2012
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Company Highlights
Record Achievements:
� 2011 Revenues: $186M
� 2011 EBITDA: $16.4M
� 2011 Earnings: $ 9.5M
� 2011 EPS: $0.61
� 5 Year Revenue Growth
� 2007 - $60M
� 2011 - $186M
2011 Milestones:
� Platform Acquisition in USA
� Graduated to the TSE
� 25+ Years in Business
� New $80M ABL
� Manufacturing Facility in
Production
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TSX: BRYApril 2012
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Management Directors
and Insiders38%
Institutional20%
Retail42%
Shareholder Breakdown
Market Data
As of April 16, 2012
Exchange Toronto Stock Exchange
Shares Outstanding 17.2M/FD18.0M
Share Price $3.05
52 Week High/Low $4.42/$2.20
Market Capitalization $52.6 million
P/E (1) 5.0 X
EBITDA (1) $16.4M
EV/EBITDA (1) 4.8 X
Earnings per FD share (1) $0.61
EBITDA per FD share (1) $1.00
Book Value per FD share (1) $2.55(1) For the year ended December 31, 2011
TSX: BRYApril 2012
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TrendNorth America continues to drill deeper and longer reach horizontal wells which are completed utilizing multi-stage fracturing which consumes more:
� Drilling Fluids� Liquid Mud � Cementing Additives� Acidizing Additives� Frac Chemicals
Canada � Estimated at $1.0B(1)
� Largest Independent Supplier of Drilling Fluids in Canada
� Targeting Stimulation Fluids Segment
USA � Estimated at $9.1B(1)
� Currently focused on Drilling Fluids Segment� No Dominate National Independent Supplier
Wholesale Oilfield Chemical Demand(est. $1.0B CAN, USA $9.1B)
Drilling Fluids - Market
(1) Company Estimate
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Drilling Fluids - Canada
2011 Canadian Drilling FluidsRevenue $152 million
Distribution � >50% market share – drilling fluids
segment(1)
� 27% YOY Increase in sales
Blending � <10% market share – stimulation
fluids segment(1)
� 39% YOY increase in sales
Key Customers� -29%� -26% � - 2%
(1) Company Estimate
$ (
00
0’s
)
Year
Drilling Fluids Blend/Pack
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Distribution Network - Canada
Distribution Warehouses1 - High Level, AB2 - Grande Prairie, AB3 - Slave Lake, AB4 – Edson, AB5 - Blackfalds, AB6 - Consort, AB7 - Brooks, AB8 - Lloydminster, AB9 - Fort Nelson, BC10 - Fort St. John, BC11 - Swift Current, SK12 - Estevan, SK
Blending & Sales13 - Acheson, AB(Blending & Distribution)14 - Camrose, AB(Packaging & Distribution)15 - Calgary, AB (Sales office)
Legend
Strategic Stock Point
Office / Blending & Warehouse
12
9
110
11
8
7
2
3
15
1314
6
5
4
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Drilling Fluids - USA
Acquisition:� Completed Stryker acquisition May 2011
� Acquired sales of $6.5M
� Denver, CO Head Office
Distribution: �Bri-Chem aggressively expanding:
� 3 to 9 Warehouses
� 6 to 10 Trucks
� 1 to 4 National sales
� Additional Warehouse expansion plans
� Establish liquid mud blending facility
Opportunity: � Capture a >10% of $3.4B Drillings Fluids Market
� Establish the dominate independent drilling
fluids distribution network for the USA
2011 USA Drilling Fluids Revenue $6.0 million
-
200,000
400,000
600,000
800,000
1,000,000
1,200,000
1,400,000
$
Month
Supply Trans
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Warehouses1 – Denver, CO2 – Ulster, PA3 – Leetsdale, PA4 – Grande Junction, CO5 – Alice, TX6 – Tyler, TX7 – Casper, WY8 – Myton, UT9 - Bakersfield, CA
Proposed 1 – North Dakota2 – Oklahoma3 – Oklahoma
Legend
Current Strategic Stock Point
ProposedStock Point
Distribution Network - USA
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� Wholesale distributor of steel pipe for the energy industry
� Pipe size ranging from ½ to 36 inch:
� Gas Line pipe� Fluid Transmission pipe
� Shifted YOY Product Mix:� Lower Inventory� Increased Margins (2010 – 7.6% 2011 - 19%)� Higher Inventory Turns� Distributor of Large Diameter
� Source Steel Pipe from:� North America� Asia� India� Vietnam
� Master Distributors:
Steel Pipe - Distribution
2011 Steel Pipe Distribution Revenue $27 million
-
5,000
10,000
15,000
20,000
25,000
30,000
35,000
2008 2009 2010 2011
Mil
lio
ns
of
$
Year
TSX: BRYApril 2012
Steel Pipe - Manufacturing
Large Diameter Seamless Pipe Production 14” – 36”
TPE Process Exclusive to North America QA/CDA
2011 Capital Investment $6M
Completion of commissioning phase Q1 2012
2012 Estimated Production Ramp-up(1) Q1 – 1000MTQ2 – 2000MTQ3 – 3500MTQ4 – 4500MT
Average Market Selling Price(1) $2K per MT
Target Market Energy Fluid and Gas Line Pipe
Estimated Production at Full Capacity(1) 24K – 30K MT
(1) Company Estimate
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Canada
2012 Wells Drilled Forecast(1) 13,350 up 3%
2012 Average Active Rig Forecast(2) 407 up 1%
2012 Current Rigs Operating – Early spring breakup (2) 187
USA
2012 Wells Drilled Forecast 47,918 up 6.7%
2012 Average Active Rig Forecast (4) 2,019 up 7.6%
2012 Current Rigs Operating (3) 1,979
North America
Oil and Gas Prices
Approved Exploration Expenditures(1) PSAC Forecast as of January 26, 2012(2) CAODC Forecast as of November 8, 2011(3) Baker Hughes as of April 5, 2012(4) World Oil Report as of February 2012
2012 Sales Drivers
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2011 Highlights
2011 Record Highlights:
� Revenues $185.7M – 22% YOY increase
� EBITDA $16.4M – 29% YOY increase
� EBITDA per share $1.00 ($0.91 - 2010)
� Earnings $9.5M – 33% YOY increase
� EPS of $0.61 ($0.51 - 2010)
-
1,000
2,000
3,000
4,000
5,000
6,000
7,000
-
10,000
20,000
30,000
40,000
50,000
60,000
70,000
1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q 11
EB
ITD
A (
Millio
ns o
f $)
Rev
en
ue (
Millio
ns o
f $)
Revenue EBITDA
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Year Ended 2007 2008 2009 (1) 2010 2011
Revenue $ 59,519 $ 111,283 $ 96,480 $ 152,495 $185,723
EBITDA 5,668 10,012 3,744 12,712 16,441
2011 EBITDA toSales – 8.9%
EBITDAPer share – $1.00
EB
ITD
A&
Earn
ing
s (
000’s
)
(1) Normalized earnings and EPS for 2009
$0
$20,000
$40,000
$60,000
$80,000
$100,000
$120,000
$140,000
$160,000
$180,000
$200,000
$0
$2,000
$4,000
$6,000
$8,000
$10,000
$12,000
$14,000
$16,000
$18,000
2007 2008 2009 2010 2011
Re
ve
nu
e(0
00
's)
EBITDA Revenue
5 Year Financial Performance
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Annual Net Earnings Growth
$0.19
$0.33
$0.51
$0.61
$9.5M
$7.1M
$4.5M
$2.4M$0.2M
2007 2008 2009(1) 2010 2011
$0.02
$Millions
$/Share
1) 2009 financial results have been normalized for impairment charge of $6.8M on goodwill and intangibles and $2.9M of inventory writedown
Net Earnings
EPS
TSX: BRYApril 2012
Balance Sheet Strength
As of December 31, 2011
Available Credit ($80M ABL) $31.1M
Net working capital $32.4M
Inventory $54.2M
Inventory Turnover 3.2
Total Assets $125.7M
Long-term Debt $0.7M
Shareholders Equity $43.9M
Return on Assets 7.5%
Return on Equity 21.5%
Capital Expenditures $3.8M
Free Cash Flow $6.8M
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TSX: BRYApril 2012
Acquisition Criteria
� Accretive
� Profitable
� Experienced Management
� Complementary Fit
� Opportunity for Growth
� Geographic Expansion
Successful Acquisitions
Current Focus
� Production Chemicals
� USA Liquid Mud Operations
� Stimulation Chemicals
� Small Diameter Steel Manufacturing
� Threading & Upsetting
Structure
� 70% Cash / 30% Shares
� 50% of cash paid at closing
� 50% of Cash paid over 3 years
� Shares Escrowed for 3 years
� Retain Key Management
� Non-CompetitionAgreement
2007 2008 2009 2010 2011
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Revenue to Employee Count
0
10
20
30
40
50
60
70
80
90
-
20,000
40,000
60,000
80,000
100,000
120,000
140,000
160,000
180,000
200,000
2005 2006 2007 2008 2009 2010 2011
Em
plo
yee C
ou
nt
(000's
C$)
Fluids sales Steel sales employees
Sept 30 TTM Total Revenue PerEmployee (81): $2.3 million (1)
8
15
17
Scalability
Based on core business, additional 19 employees for steel manufacturing division
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Drilling Fluids Division
� USA Drilling Fluids Market Segment - $3.4B► Stryker Acquisition – 9 Warehouses
► Establish Additional Warehouse Locations
► Establish Liquid Mud Service Facilities
� Canada - Expand Chemical Blending Capacity► Production
► Stimulation
► Cementing
Steel Pipe Division
� Ramping up Production of Manufacturing Facility
� Explore Small diameter seamless Micro Mill opportunity
Growth Strategy
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Positioned for Growth
Increased Market Share
North American
Leader
Strong Organic Growth
Bri-ChemToday
Bri-ChemTomorrow
Broad Geographic Expansion
Strengths
– Strong Balance Sheet
– Profitable
– Experienced Management
– Proven Business Model
– Acquisition Strategy
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BRI-CHEM CORP.
Don Caron Jason TheissChief Executive Officer Chief Financial Officer53016 Highway 60, Unit #15 53016 Highway 60, Unit #15Acheson, Alberta Acheson, AlbertaT7X 5A7 T7X 5A7 Email: [email protected] Email: [email protected] Ph: 780.420.6885 Ph: 780.455.8667x237
Contacts
Contacts
TSX: BRYApril 2012
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Don CaronChief Executive
Officer & Director
� Director of Edmonton based Private Equity Firm.� Founder of International Technologies Inc. which merged to create CCS Income Trust. (1992)� Founder of CFE Industries Inc. which merged to create Commercial Solutions Inc. (2002)� Founder of mBase Inc. which merged to create Bri-Chem Corp. (2007)
Albert SharpDirector
� Former Chief Executive Officer of Altus Geomatics, partnership residing under Altus Group Income Fund. (TSX: AIF.UN)
� Retired Trustee of Altus Group Income Fund.� Member of: The Canadian Institute of Geomatics; The International Right of Way Association; and, The Alberta
Association of Surface Land Agents.
Eric SauzeDirector & Chair
of Audit Committee
� Former Chief Operating Officer and Chief Financial Officer of Commercial Solutions Inc. (TSX:CSA)
� Chartered Accountant and Chartered Financial Analyst.� Chief Financial Officer of Western Canadian based oil and gas valve company.
Brian CampbellDirector
� Over 25 Years of field and managmenet experience in the drilling fluids industry.� Founded Bri-Chem in 1985.� Former President of Bri-Chem Fluids division.
Trent AbrahamPresident of Fluids
Division
� Over 20 years experience in the drilling fluids industry, oversees the day to day operations � Former owner of Millennium Technologies which was purchased by Bri-Chem (2007).
Jason TheissChief Financial
Officer
Neil RasmussenPresident of Steel Division
� Chartered Accountant. � Prior, controller of private income trust, and senior auditor with public accounting firm.� Joined Bri-Chem in 2007.
� President of Bri-Steel Corporation and Bri-Steel Manufacturing with over 15 years of steel industry experience� Founded Bri-Steel Corporation.
Appendix – Board of Directors & Management Bios