Enterprise Group (E) Investor Update summary

Business Overview and Growth Strategy

• Leader in mobile site infrastructure and low-emission site electrification for the Canadian resource sector, with a strong presence in Alberta and Northeastern British Columbia and a focus on energy clients.

• Achieved 12% year-over-year revenue growth and $12.1M operating cash flow for the first nine months of 2024, with revenues, EBITDA, and margins increasing consistently since 2020.

• Holds over 35% insider ownership, reflecting management's alignment with shareholders and a history of share buybacks and insider buying.

• Evolution Power Projects (EPP), established in 2022, now contributes over 45% of gross revenue, up from 5% five years ago, and is the sole provider of gas turbine electrification systems.

• Maintains a healthy balance sheet, robust liquidity, and a market cap of approximately CAD 123.6 million.

Technology and Competitive Advantages

• Exclusive provider of low-emission site electrification systems using natural gas microturbines, displacing diesel and offering significant cost and emission reductions, with 86–100% fuel cost savings and up to 99% reduction in key emissions.

• Microturbines deliver 99.5% uptime in extreme conditions, with maintenance intervals far exceeding diesel units.

• Exclusive agreement with FlexEnergy for Western Canada, creating a strong competitive moat; Flex units are the gold standard for uptime and fuel tolerance.

• Ability to parallel and scale units for larger power needs, with new two-megawatt units under consideration.

• Achieved near 100% asset utilization and secured supplier exclusivity in September 2024.

Financial Performance and Outlook

• Revenue increased from $26.9M in 2022 to $33.5M in 2023, with gross margin rising from 40% to 45% and EBITDA margin from 30% to 40%.

• For the first nine months of 2024, revenue reached $26.8M, gross margin 47%, and EBITDA margin 40%.

• CapEx is demand-driven, with recent and planned investments in new turbines; cash flow from operations funds most growth, with additional debt capacity available.

• Expects to have around 45 natural gas systems by end of 2025, up from about 30 currently.

• Shares outstanding are 60.9M, fully diluted to 67.9M, with net book value per share of $0.88 as of Q3 2024.