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Enterprise Presentation PC Sept 2013.pdf

Published Sep 25, 2013 in Business & Management
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Investing in Tomorrows Energy & InfrastructureEnterprise GRP .ca

FORWARD LOOKING STATEMENTSStatements in this presentation that are forward-looking statements are subject to various risks and uncertainties concerning the specific factors disclosed under the heading Risk Factors and elsewhere in the Corporations periodic filings with Canadian securities regulators. Such information contained herein represents management's best judgment as of the date hereof based on information currently available. The Corporation does not assume the obligation to update any forward-looking statement. PAGE TWO

Enterprise Group Inc. (Enterprise or Company Ticker TSX:E ) is a consolidator of construction services companies operating in the energy, utility and transporta tion infrastructure industries. The Company's focus is primarily construction services and specialized equipment rental . The Company's strategy is to acquire complementary service companies in Western Canada, cons olidating capital, management and human resources to support continued growth. Enterprise became a Western Cana dian leader in flameless heat technology in September 2012 with its acquisition of Artic Therm International Ltd. and has now become a technological leader in underground infrastructure construction by the closing of Calgary Tunnelling & Horizo ntal Augering Ltd. June 14, 2013. Enterprise currently operates 4 business units: TC Backhoe & Directional Drilling (service provider to mid-stream and infrastructure/utility companies), Calgary Tunnelling & Horizontal Augering Ltd (highly specialized tunnelling for pipeline, utility and infrastructure) Artic Therm International ( specialized equipment rental provider ) and E-One Limited (construction class heavy equipment rental provider ). The Company was incorporated on 2004 and is headquartered in St. Albert, Alberta . Enterprise currently employs between 125 -200 employees depending on the season, and has a world class customer base. Enterprise's typical customers are: Integrated O&G Multinational Mid-Stream Cross Country pipeline Constructors Telecommunications Cable Television Electricity and Natural Gas Services North American Rail CompaniesCOMPANY OVERVIEW PAGE THREE

Acquire complementary businesses at accretive valuations Ideal Targets: Unique Western Canada focused private co mpanies with limited access to capital for growth Businesses that service the energy, utility an d transportation infrastructure industries Successful track record with high quality clients Profitable Possess the market ability to double within 2 3 years Typical Acquisition Structure Purchase price of < 3.0x EBITDA Acquisition price paid with a combin ation of cash, equity, debt & VTB Key personnel retained via 5 year employment contracts and incentives Enterprise Group will leverage its expertise, stro ng client relationships and access to capital to accelerate organic growthACQUISITION STRATEGY PAGE FOUR

DEBT REFINANCINGSEPTEMBER 2O12 -Enterprise completes a refinancing with PNC Canada Branch. Implementing a $12.5 million operating line at prime + 2% for a three year term. MAY 2O13 Operating line increases to $20 million PNC is currently the seventh largest bank by deposits in the United States, as well as the sixth largest by total assets, fifth in total branches,and is the third largest bank off-premise ATM provider. PNC is based in Pittsburgh, USA. PAGE FIVE

SEGMENTS OVERVIEWThe company has a growing equipment asse t base of nearly $30million including a fleet of over 300 trucks, heavy equi pment and specialized heating units. Renting the most advanced flameless heaters ranging in heat output from 500,000 to 3,000,000 BTUs. Pioneers of pipeline thermal expansion A first call for heavy equipment rentals in the oilfield & civil construction sectors and operating project crews constructing pipelines & facilities for the prolific oil & gas fields of Western Canadian Sedimentary Basin.Enterprise Groups four business units deliver utility & infrastructure construction services, and heavy equipment & flameless heating rentals Serving the premier utility providers in Alberta installing and maintaining utility services both underground and above ground. UTILITY/INFRASTRUCTURE CONST. & MAINT. EQUIPMENT RENTAL PAGE SIXNorth American leader in the highly specialized tunnelling field.CTHA utilizes a number of tunnelling disciplines laser guided boring & augering, pipe ramming, pipe jacking/tunnel boring (TBM), among others.

Calgary Tunnelling & Horizontal Augering Ltd. Founded in 1984, Calgary Tunnelling & Horizontal Augering Ltd., ("CTHA") is a North American leader in the highly specialized tunnelling field. CTHA utilizes a number of tunnelling disciplines to get the job done efficiently and safely such as laser guided boring & augering, pipe ramming, pipe jacking/tunnel boring (TBM), among others. CTHA performs its services from the west coast through to central Canada across the energy, utility and infrastructure segments. Its clients range from Canada's largest rail companies and premier utility providers to leading infrastructure contractors and some of North America's largest pipeline companies.PAGE SEVEN

Calgary Tunnelling Acquisition Highlights Highly successful specialized underground infrastructure construction company with operations based in Alberta deploying its services from the West Coast to Central Canada. ~30 years as an operating company and +60 years of cumulative field experience Provides multiple services to top tier clients Accretive acquisition that is complementary to Enterprise Groups existing businesses For the year ended 2012, the private company generated $14.9 million of revenue and $5.85 million of EBITDA Acquisition price is $12 million (just over 2 X EBITDA) -Acquisition being funded by debt, ca sh and a $1.0 million vendor take-bac k financing to be repaid over two years -Acquisition completed June 14, 2013PAGE EIGHT

TC Backhoe Utility/ Infrastructure Industry leader in utility and pipeline construction working throughout Alberta with over 35 years of industry experience Focused on the installation and repair of underground utility services in subdivisions Relationships with Albertas largest developers including Qualico, Genstarand Landrex Customers include Canadas largest telecommunications, ca ble TV, electricity & natural gas service providers. Services provided by TC Backhoe include directional drilling, hydrovacing, trenching and plowing, backhoe and dozer work, as well as complete site clean-up Excellent revenue visibility as ~40% of revenues from long term contracts (12-18 mos.) PAGE NINE

Artic Therm Flameless Heat Rental Founded in 1997 and acquired by Enterprise Group in September 2012 Acquisition price of $6.5 mil (2.4x trailing EBITDA ) Provides efficient Flameless Heat and Green Air technology for multiple applications using portable equipment to remote locations for the extreme climate challenges Proprietary technology Fleet of 110 units with substantial opportunity for expansion due to increasing demand 500,000 to 3.3 Million BTU output Blower technology of up to 15,000 CFM at Peak Applications Pipeline Thermal Expansion De-Humidifying Confined Space Entry Plant & Facility Shut Downs Vessel Coating Curing PAGE TEN

ARTIC THERM FLAMELESS HEATINGPioneers in Flameless Heating Technology500,000 to 3.3 Million BTU Output Blower Technology of up to 15,000 CFM at PeakPAGE ELEVEN

ARTIC THERM FLAMELESS HEATINGApplications:Pipeline Thermal Expansion De-HumidifyingConfined Space EntryPlant & Facility Shut DownsVessel Coating CuringPipeline Thermal Expansion Storage Tank Shut-Downs Plant/Facility Shut-DownsPAGE TWELVE

E One Limited Heavy Equipment Rental Located in Central and North Central Alberta Strategically located to serve the needs of the demanding construction and energy services industries 40 pieces of heavy construction equipment including excavators, bulldozers and pipe-layers typically rent out at $5,500 to $19,500 per month E-One provides: Late model equipment Professionally serviced and maintained fleet less downtime, and more work time Best-in-Class brands and models Historical utilization rate of 60-95% capacity PAGE THIRTEEN


Leonard D. Jaroszuk President, CEO, Chairman Entrepreneur with 27+ years experience managing public companies engaged in real estate, construction, natural resources and explorationServes as a Director on several oil & gas service and manufacturing companies Desmond OKell Vice President, Director and Corporate Secretary Has been with Enterprise Group since its inception. 26+ years experience in corporate development, finance and business operations Doug Bachman COO 25+ years experience in corporate finance and ma nagement from a tier-one Canadian chartered bank Warren Cabral CFO Recently served as CFO for AIMComanaging glob al investments for pensions, endowments and government funds in Alberta. Joined Enterprise group in January 2013 John Pinsent DirectorManu K. SekhriDirectorLEADERSHIP TEAM PAGE FIFTEEN

Financial Summary Capitalization Table Shareholders Summary Major Shareholders Management/ Directors / Assocs30.00% + Float and Public~66.40% Total 100.00% Shares Outstanding (June 2013) In Millions Basic79.2 Options~ 5.1 Warrants~ 1.2 Fully Diluted85.5 52-Week High-Low$0.84-$0.165 Market Capitalization55.5 Enterprise Value75.5PAGE SIXTEEN

Historical PerformanceSource: Company Reports, StockWatch, Research Consensus Estimate Analyst Coverage Liquidity Brokerage FirmAnalystRating Date of Initiation Current Target M Partners Tom Varesh Buy27-Feb-13 (2014) $2.05 Beacon SecuritiesMichael MillsBuy12-Oct-12 (2013) $1.00 Total Trading Period A vera g e Dail y Volume % of Float% of Total Last 1 Month538,379 1.02%0.68% Last 3 Months722,6881.37%0.91%Last 6 Months651,3821.24%0.82% Last 12 Months467,016 0.89%0.59% $15.6 $17.9 $18.5 -$1.5 $1.6 $4.4-40% -30% -20%-10% 0% 10% 20% 30% -$4.0 $1.0 $6.0 $11.0$16.0 $21.0 $26.0$31.0 $36.0201020112012 Revenue EBITDA EBITDA MarginPAGE SEVENTEEN

CORPORATE HEAD OFFICE#2, 64 Riel Drive, St. Albert Alberta, Canada T8N 5B3 Phone: 780.418.4400 Fax: 780.418.1941 Toll Free: 888.303.3361INVESTOR RELATIONSDesmond OKell Vice President Corp Development Phone:780.418.5377 CONTACT INFORMATIONPAGE EIGHTEEN