Investor Presentation

2019

TSX: TVK

Forward Looking Statement

This presentation contains “forward-looking statements” within the meaning of applicable Canadian securities laws,

including (but not limited to) statements about the EBITDA projection, future performance of TerraVest Industries Inc.

(“TerraVest” or the “Company”) and similar statements concerning anticipated future results, circumstances,

performance or expectations. A statement is forward-looking when it uses what TerraVest knows and expects today to

make a statement about the future. Forward-looking statements may include words such as anticipate, assumption,

believe, could, expect, goal, guidance, intend, may, objective, outlook, plan, seek, should, strive, target and will. These

statements relate to future events or future performance and reflect current assumptions, expectations and estimates of

Management regarding growth, results of operations, performance, business prospects and opportunities,

Canadian/U.S. economic environment and ability to attract and retain customers. Such forward-looking statements

reflect current assumptions, expectations and estimates of Management and are based on information currently

available to TerraVest as at the date of this Presentation.

Forward-looking statements are subject to certain risks and uncertainties, and should not be read as guarantees of

future performance or results and actual results may differ materially from the conclusion, forecast or projection stated

in such forward-looking statements. These risks, uncertainties and other factors include but are not limited to the

following: cyclicality of the oil and gas sectors, weather related issues, economic cycles, input costs, customer

expectation for equipment standards, competition, employee/labour, environment, regulatory requirements, exchange

rate, availability of capital, cost increases, credit, interest rate and litigation. Such assumptions, expectations, estimates,

risks and uncertainties are discussed throughout this Presentation and, in particular, in “Risk Factors”. Consequently,

we cannot guarantee that any forward-looking statements will materialize. Readers should not place any undue reliance

on such forward-looking statements.

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Our Company

3

• TerraVest Industries Inc. (“TerraVest” or the “Company”) is a leading

provider of products and services to niche infrastructure markets

#1 manufacturer of home heating oil products in North America

#1 manufacturer of propane, anhydrous ammonia (“NH3”) and natural gas

liquids (“NGL”) transport vehicles and storage vessels in Canada and

top #3 in the U.S.

#1 manufacturer of wellhead processing equipment in Canada

• Fiscal 2018 ~ $270 million in revenue, $41.6 million in EBITDA and growing

Market Leader in Home Heating Products

• Our Home Heating Products division is the #1 player in

home heating oil tanks and related accessories in North

America, while also producing furnaces and commercial

fuel tanks

• Strong brand reputation with +65 years of operating

history

• We are a critical supplier to the heating oil market in

North America offering a full suite of products

• 5 operating facilities and approx. 300 employees

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Product Lines Select Customers

Residential Furnaces Commercial Fiberglass

Market Leader in LPG/NH3/NGL Storage & Transport

Equipment

• We are the only manufacturer of

LPG/NH3/NGL storage and transport

equipment with a national footprint in

Canada

• Strategically located to service mid-

west and north-east markets in U.S.

• Broadest scope of product offering

among all North American competitors

• Significant in-house engineering and

technical expertise

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LPG/NH3/NGL Storage & Transport Equipment (cont’d)

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Product Lines

Select Customers

Domestic Tanks

Bulk Storage Bobtails

Dispensers

Service Trucks

Refurb

B-Trains

Nurse Wagons

Trailers

Field Service/Installation

Market Leader in Energy Processing Equipment

• Our Energy Process Equipment division is the #1 player

in wellhead processing equipment in Canada

• Strong brand reputation with +50 years of operating

history

• We are a critical supplier to many of the largest oil and

gas producers in North America

• 3 operating facilities and approx. 350 employees

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Product Lines Select Customers

Separation Line Heating Tanks Oil Treating

Expansive Operational Footprint

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Coast to Coast Manufacturing Operations

• TerraVest is the largest Propane/NH3/NGL equipment provider in Canada with coast to coast

operations

– U.S. operations reside in Michigan, the largest state for propane consumption, and products are sold

regionally and nationally

• Home Heating products are manufactured in the Northeast, strategically located near the largest

market for heating oil products; and

• Energy Processing equipment is manufactured in Western Canada

Propane/NH3/NGL

Home Heating

Energy Processing

Participating in the Entire Fuel Infrastructure Supply

Chain

• TerraVest is involved in all aspects of manufacturing products for the fuel

infrastructure supply chain

– Products consist of storage vessels at gas plants/refiners through to

transport vehicles and domestic tanks at the retail home

Nat Gas

Pipeline

Gas Plant

NGL Transport

Fractionator

Propane Pipeline

Storage

Rail to Propane

Terminal

Refinery

Propane

TerminalTransport

to Retailer

Propane

Retailer

Residential

Commercial

/Industrial

Agricultural

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Strategy and Highlights

• Operate market leading and reputable businesses in all of our

segments

• Offer full scale product suites to become critical suppliers in each of

our segments

– Add to existing product offering via acquisitions of well-known and

reputable businesses

– Add to existing product offering via new manufacturing lines and

capacity expansions

• Continue to invest in state of the art manufacturing technologies

across all of our businesses

• Young and motivated management team (average age of 43)

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$5.9

$15.7

$25.1

$11.7$11.1

$27.1

$12.8

$23.1

$35.4

$24.8 $24.2

$41.6

$0.0

$10.0

$20.0

$30.0

$40.0

$50.0

2013 2014 2015 2016 2017 2018

EBITDA

Cash Flow Available for Distribution

Strong Financial Performance and High Cash Flow

Generation

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Strong Cash Flow Generation

HISTORICAL EBITDA ($MM)

2013 – 2018A EBITDA CAGR 28.1%

($4.1) ($5.0) ($4.4) ($4.0) ($5.4) ($4.2)

19% 18% 18% 14% 13% 15%

72% 44% 29% 63% 66% 27%

2015 Peak Oil

& Gas Market Diversification of Cash Flows through Acquisitions

Maint.

Capex

Dividend

Payout Ratio

EBITDA

Margin

Manufacturer of home

heating and propane

storage products.

Diversified cash flow and

created a platform for

growth

History of Successful Acquisitions

2014 2014 2015 20162015

Manufacturer of oil and

gas processing

equipment. Enhanced

customer base,

manufacturing capability

and management

expertise

Manufacturer of propane

service trucks, delivery

trucks and transport

trailers. Added a core

group of leading U.S. fuel

distributers as customers

Manufacturer of patented

storage tank products for

the oil and gas industry.

Complimentary product

for existing oil & gas

customers

Provider of patented sand

separation equipment to

the oil and gas industry.

Differentiated product that

is leveraged to cross sell

existing products

2017 2017 2018

Manufacturer of steel and

fiberglass home heating

oil tanks. Enhanced

market share

Manufacturer and

refurbisher of domestic

propane tanks. Added to

the suite of complimentary

propane products for

customers

Manufacturer of LPG and

NH3 transport trailers and

NGL storage vessels.

Created a national

platform for products in

Canada

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Complimentary businesses

Ability to leverage expertise in metal

fabrication

Standalone operational capability

Quality brand/reputation

Attractive valuations to shareholders

✓

✓

Acquisition Criteria

✓

✓

✓

Added 25,000 square feet

of manufacturing capacity

to existing Pro-Par facility

to expand capacity in

bobtail and transport

trailer production

History of Organic Growth

2015 2016 2016 20172017

Added 10,000 square feet

of manufacturing capacity

and heavy craneage to

support new transport

trailer manufacturing line

Added automatic CNC

pipe profiler to expand

pressure vessel

manufacturing capacity,

improve efficiency and

reduce lead times

Added new automated

domestic tank

manufacturing line and

bulk storage growing line

expanding Pro-Par’s

product offering to the

LPG market

Added brand new

automated domestic tank

manufacturing line

expanding Fischer’s

product offering to the

LPG market

2018 2018 2018

Internalized

nondestructive testing to

increase capacity and

improve quality and lead

times

Moved into new 90,000

square foot manufacturing

facility expanding capacity

by 100%

Added new

interchangeable plate rolls

to improve efficiency and

lead times

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2019

Moved into new 125,000

square foot facility

expanding capacity and

giving the ability to add

new product lines

Adds to product

offering

Expands capacity

Improves efficiency

Improves quality

Attractive return on

investment

✓

✓

Investment Criteria

✓

✓

✓

23.9%

93.5%

(5.2%)

36.2%28.4%

LTM Last 3 Years Since 2014

$25,000,000

Successful Return for Shareholders

June 2014

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$6.10 Per Share

$20,000,000

Equity Bought Deal

April 2015

$8.25 Conversion

7.0% Convertible

Debenture

Bought Deal

Jan-14 Jan-15 Jan-16 Jan-17 Jan-18 Jan-19

Current Dividend $0.40

Implied Yield 3.7%

Acquisitions

$4.53

$10.75

Share Price Performance

Total Return Performance

TerraVest

S&P TSX Composite Index

Information as at January 15, 2019.

Source: Capital IQ.

214.9%

Insider Ownership TerraVest Capital Structure

Meaningful Insider Ownership and Conservative

Capital Structure

• TerraVest is a public company with majority

control by 3 major shareholders

Clarke Inc. 5,386,440 32%

Charles Pellerin 3,200,000 19%

Dale Laniuk 1,934,992 11%

Other Insiders 1,013,575 6%

Public Float 5,519,489 32%

Basic S/O 17,054,496 100%

• Approximately 1.2mm options outstanding with

an average exercise price of ~$8.13

• $13.6MM convertible debentures outstanding

with a conversion of $8.25

Share Price $10.75

Basic Shares Outstanding 17,054,496

Shares Outstanding with Converts 18,700,920

Equity Value $201,034,893

Convertible Debentures $13,583,000

Net Debt (ex. Converts) $95,667,000

Enterprise Value (Diluted Convts.) $296,701,893

LTM EBITDA $45,511,000

LTM Cash Flow Available for Distrib. $27,602,000

Dividend (Per Share) $0.40

LTM Payout Ratio 25%

Net Debt to LTM EBITDA (with convts.) 2.4x

Net Debt to LTM EBITDA (ex. convts.) 2.1x

EV/LTM EBITDA 6.5x

Price/ Cash Flow Available for Distrib.(1) 7.1x

151) Calculated on a fully diluted basis.

Strong Free

Cash Flow

Generation

Sound

Management

Team Focused

on Cost

Competitivenes,

Growth and

Technology

Products Part of

a North

American Niche

Infrastructure

Market

Product and

Geographical

Diversification,

Reducing

Exposure to

Economic Cycles

Market Leader

in Residential

Home Heating

Oil Product

Manufacturing

Market Leader in

Propane/NH3/NGL

Transport and

Storage Vessel

Manufacturing

Market Leader

in Canada for

Wellhead

Processing

Equipment

Manufacturing

Barriers to Entry

Summary of TerraVest Key Investment Highlights

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TerraVest Value Proposition

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Attractive Dividend Yield & Low Payout Ratio

Organic and Acquisition Growth Opportunities Driven by Operational Streamlining

between Segments, Enhanced Sales Strategy and Moving into New Geographic Territories

Diversification of Cash Flows

Management Team With Integration Expertise

Strong Balance Sheet

Substantial Retained Interest by Management and Existing Shareholders Motivated to

Enhance Shareholder Value Over the Long-Term

Proven Ability to Grow Through Acquisitions and Organically