SECURE Waste Infrastructure (SES) 11th Annual Waste and Environmental Symposium summary

Business overview and transformation

• Operates 55 waste processing facilities and 12 landfills in Western Canada, plus facilities in North Dakota, focusing on oil and gas waste and metal recycling.

• Shifted from drilling/completion services to recurring production-related and industrial waste streams, now 80% of revenue.

• Merged with main competitor in 2021, then divested a third of acquired assets for CAD 1.1 billion, optimizing network and reducing debt.

• Rebranded to Secure Waste Infrastructure in 2024 to reflect focus on recurring waste business and infrastructure.

• Achieved industry-leading EBITDA margins of 34% and 11% revenue growth in the last year.

Regulatory and market environment

• Operates in highly regulated markets with significant barriers to entry, benefiting from stringent permitting and high capital requirements.

• Regulatory changes in Alberta and Saskatchewan mandate recurring asset retirement spending, increasing landfill volumes.

• Market share in Western Canada is about 70%, with Waste Connections holding 20-30% after asset sales.

• Competitive landscape favors price discipline and high returns over discounting.

Capital allocation and growth strategy

• Aggressively repurchased 25% of outstanding shares and continues buybacks under NCIB, citing undervaluation.

• Pursues both organic growth (CAD 75 million spend in 2024) and targeted M&A, especially in metal recycling.

• Metal recycling business expanded through acquisitions, including a major Edmonton facility with a mega shredder, aiming for operational synergies.

• Organic projects target 20% after-tax IRR, with long-term contracts and payback in 4-4.5 years.

• Focus remains on core business segments and incremental growth, avoiding geographic or business line expansion.