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Sharing our Success! TSX.V: CVX Investment Presentation March 2018
Sharing our Success!TSX.V: CVX
Investment Presentation March 2018
CVX:TSX.V
Forward Looking Statements
This presentation contains certain statements that may be deemed "forward-looking statements". All statements in thisdocument, other than statements of historical fact, that address events or developments that CEMATRIX (“theCompany”) expects to occur, are forward looking statements. Forward looking statements are statements that are nothistorical facts and are generally, but not always, identified by the words "expects", "plans", "anticipates", "believes","intends", "estimates", "projects", "potential" and similar expressions, or that events or conditions "will", "would","may", "could" or "should" occur.
Although the Company believes the expectations expressed in such forward-looking statements are based onreasonable assumptions, such statements are not guarantees of future performance and actual results may differmaterially from those in the forward- looking statements. Factors that could cause the actual results to differ materiallyfrom those in forward looking statements include, failure to successfully negotiate or subsequently close suchtransactions, inability to obtain required shareholder or regulatory approvals, uncertainty with respect to findings underexploration programs and general economic, market or business conditions. Investors are cautioned that any suchstatements are not guarantees of future performance and actual results or developments may differ materially fromthose projected in the forward-looking statements. Forward looking statements are based on the beliefs, estimates andopinions of the Company's management on the date the statements are made. The Company undertakes no obligationto update these forward-looking statements in the event that management's beliefs, estimates or opinions, or otherfactors, should change.
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CEMATRIX – The Premier North American Supplier of Cellular Concrete
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Testimonial
“We saved over 5000 man hours compared to conventionalbackfilling techniques, as well as accelerating our pavementschedule by seven weeks”
KBR/A&V Testimonial
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CEMATRIX HIGHLIGHTS
2018 – Just signed LOI to acquire a profitable cellular concrete leader in the U.S.
2017 – Game Changing Lafarge Mktg. & Regional Expansion Agreements
2018 – Forecast for CEMATRIX only is $14 million in sales - $1.3 million EBITDA
2018 – Combined Forecast $30 million in sales - > $3.0 million EBITDA
2018 – Combined Project pipeline exceeds $190 million – 99.9%+ infrastructure
2018 – Pipeline includes potential projects in excess of $10 million each
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Three Key Benefits of The CEMATRIX/ MixOnSite Acquisition
• Experienced key sales, technical and operational staff
• MOS has 3 Dry Mix Units and 4 Wet Mix Units
• Combined 1,000,000 m3
of capacity
• Equipment
• Foaming Agents
• Material Mix Designs
• Sand Mix Grouting
• Underwater Cellular Concrete Placement
• Experience in most U.S. States where cellular concrete used
• Strong NE and Midwest US Presence
• Repeat Customers
Experienced Personnel and Equipment
Shared Technologies
Strong U.S. Market Presence
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Combined 2018 Project Summary
Sales – CDN $’s Amount $
Contracted for 2018 $21.2 MM
Verbally awarded for 2018 7.2 MM
Other likely for 2018 1.9 MM
Total forecasted for 2018 $30.3 MM
Sales Pipeline * $190.0 MM
* Cumulative total of non-contracted projects being considered by the engineering world for the use of cellular concrete in 2018 - 2019.
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Joint Marketing andRegional Expansion Agreements
Journey to a 100,000 Tonne Customer of Lafarge
CEMATRIX/Lafarge Partnership
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“Lafarge is furthering its development of solutions for the infrastructuresegment. By officially partnering with CEMATRIX, Lafarge has anadditional offer for its customers who require the innovative constructionbenefits provided by cellular concrete.”
Barry Martin - Vice President Sales & Logistics at Lafarge North America
CEMATRIX/Lafarge Partnership
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On The Street
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Sale and Onsite Placement Of Cellular Concrete
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The Business
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What Is Cellular Concrete?
Portland cement based“No Aggregates”
Aggregates replaced with “Air Bubbles”
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How Is It Made?
Mobile Batch Plants
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Who Are Our Primary Customers?
ENGINEERS and P3 GroupsWho design materials into projects
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What Is The Size Of The Market?
IMMEASURABLE
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Three Separate Billion Dollar Markets
• Road and Runways
• MSE Panel Backfill
• Bridge Abutment Backfill
• Tunnel Grouting
• Pipeline Bedding
• Buried Utilities
• Service Roads
• MSE/Retaining Walls
• Facility Under-slab
• Pipe-racks & Modules
• Fire lines & Other Utilities
• Tank Bases
• Buildings
• Parking structures
• Roof Decks
• Shallow Utilities
• Nuclear Infrastructure
• Mine Infrastructure
• Mine Backfill
Infrastructure Including Tunnels
Industrial and Oil and gas
Commercial and Mining
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Supporting Our Infrastructure
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Tunnel Grouting
Utility Insulation
Road Base
MSE Panel & Retaining Wall BackfillFoundation Support
Bridge Embankment
Void Fill
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Supporting Our Industrial Sector
Road BasePipe-rack &
Module InsulationTank Bases
Fire-line & Utility Insulation
Pipeline Embedment
Foundation Insulation & Support
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CEMATRIX/INSEAD estimates a yearly Canadian CC market of $40 M Plus
Source: Cematrix
* $40 Million is an estimate of the area which is in focus for this project
** Provincial estimates exclude large single projects
GVA - $2.6 Mill
Calgary - $2.4 Mill
Edmonton –$6.03 Mill
Winnipeg - $2 Mill
GTA - $8.6 Mill
Ottawa - $1.1 Mill
Montreal - $2.4 Mill
Quebec City - $.331 Mill
$4.3 Mill$14.35 Mill
$11.2 Mill$5.5 Mill
$5.1 Mill **$20 Mill Potential Project**
$40.5 Million*
**$8 Mill Potential Project**
An additional $45+ Million of larger projects and US work was excluded
Focus of Operations and Sales
CEMATRIX estimates are based on business development discussions and RFP’s which have been sent.
There are no estimates for Atlantic Canada
Larger projects have been excluded and highlighted separately due to ability to service if they took place in the next year
CEMATRIX Cellular ConcreteMarket Estimates| Assumptions
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New York -$101 Mill
L.A- $42.8 Mill
Houston - $23.6 Mill
Philadelphia -$16 Mill
San Antonio - $15.1 Mill
Phoenix - $16.1 Mill
San Diego - $14.2 Mill
Dallas - $13.4 Mill
San Jose –$10.6 Mill
San Francisco - $7.1 Mill
$68.2 Million
$74.2 Million
Chicago - $28.9 Mill
Colorado - $107,425
INSEAD also indicated the estimated US market opportunity is significant
• Source: Cematrix, Philip Parker INSEAD
Macro Trends | Overview
With a large amount of annual infrastructure spending the NE US creates significant demand.
• Oil and Gas projects in the SW are proving to be the most cost competitive in North America.
• Storage in Oklahoma, Texas and Louisiana has been stretched for some time and is expanding daily.
• Any expansion would require greenfield operations and at least 3 year development cycle to build connections and sales pipeline.
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Airport Runways & Aprons
Up to 50,000 m3 or more per project
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Road Reconstruction
Up to 50,000 m3 or more per project
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Bridge Abutment Backfill
Up to 50,000 m3 or more per project
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MSE Backfill
Up to 50,000 m3 or more per project
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Refinery Projects
Up to 50,000 m3 or more per project
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Oil Sands Facilities
Up to 50,000 m3 or more per project
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Tunnel Grouting
Up to 50,000 m3 or more per project
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50,000 m3 of Cellular Concrete
specified on one project, 100,000 m3 being specified
on another
West Coast Bridges
Over 175,000 m3 or more of Lightweight Fill being
consideredSouth Eastern U.S.
150,000 m3 of Cellular Concrete being
considered
Central North American Bridges
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Capitalization
Capitalization Amount
Shares Outstanding: 34,475,994
Shares Issued at Closing: 3,343,421
Conversion of Convertible Notes: 10,698,947
* post MOU transaction – pre financing
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Sales Growth –CEMATRIX Only and Combined
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Why CEMATRIX
Significant upside in large untapped growing market across North America;
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Why CEMATRIX
Significant upside in large untapped growing market across North America;
Journey to 100,000 tonnes with Lafarge, the largest world cement supplier;
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Why CEMATRIX
Significant upside in large untapped growing market across North America;
Journey to 100,000 tonnes with Lafarge, the largest world cement supplier;
State of the Art Equipment, Foaming Agent and other Proprietary Technologies;
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Why CEMATRIX
Significant upside in large untapped growing market across North America;
Journey to 100,000 tonnes with Lafarge, the largest world cement supplier;
State of the Art Equipment, Foaming Agent and other Proprietary Technologies;
Leader in Canadian and now U.S. market, technologies, quality control and safety;
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Why CEMATRIX
Significant upside in large untapped growing market across North America;
Journey to 100,000 tonnes with Lafarge, the largest world cement supplier;
State of the Art Equipment, Foaming Agent and other Proprietary Technologies;
Leader in Canadian and now U.S. market, technologies, quality control and safety;
Leader in R&D to support future growth in MSE Backfill and Road Applications;
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Why CEMATRIX
Significant upside in large untapped growing market across North America and the world;
Journey to 100,000 tonnes with Lafarge, the largest world cement supplier;
State of the Art Equipment, Foaming Agent and other Proprietary Technologies;
Leader in Canadian and now U.S. market, technologies, quality control and safety;
Leader in R&D to support future growth in MSE Backfill and Road Applications;
Strong proven management/ sales/engineering/operating team.
CEMATRIX
Corporate Head Office
5440 – 53rd Street SE Calgary, AB
403.219.0484
www.cematrix.com
The Howard Group
Investor Relations Contact
350, 318 – 11th Ave SE Calgary, AB
1.888.221.0915
www.howardgroupinc.com
