North American Construction : NOA – Q2 2022 Results Presentation

2022 Q2

EARNINGS PRESENTATION

July 28, 2022

Forward-looking statements & Non-GAAP financial measures

Q 2 2 0 2 2 E A R N I N G S

2

This presentation contains forward-looking information which reflects the current plans and expectations of North American Construction Group Ltd. (the "Company") with respect to future events and financial performance. Examples of such forward-looking information in this document include, but are not limited to, statements with respect to the Company's targets for percentage of Adjusted EBIT to be generated outside Canadian oil sands; the Company's 2022 targets and guidance related to Adjusted EBITDA, Adjusted EPS, Sustaining Capital, Free Cash Flow, Growth Capital, Deleveraging, Leverage Ratios and share purchases; and the Company's liquidity and capital allocation expectations for 2022, including expectations regarding improvements in cash flow, decreases in capital additions and decrease in senior debt leverage.

Forward-looking information is based on management's plans, estimates, projections, beliefs and opinions as at the date of this presentation, and the assumptions related to those plans, estimates, projections, beliefs and opinions may change; therefore, they are presented for the purpose of assisting the Company's security holders in understanding management's views at such time regarding those future outcomes and may not be appropriate for other purposes. While the Company anticipates that subsequent events and developments may cause the Company's views to change, the Company does not undertake to update any forward-looking information, except to the extent required by applicable securities laws.

Actual results could differ materially from those contemplated by the forward-looking information in this presentation as a result of any number of factors and uncertainties, many of which are beyond the Company's control. Important factors that could cause actual results to differ materially from those in the forward-looking information include success of business development efforts, changes in prices of oil, gas and other commodities, availability of government infrastructure spending, availability of a skilled labour force, general economic conditions, weather conditions, performance and strategic decisions of our customers, access to equipment, changes in laws and ability to execute work.

For more complete information about the Company and the material factors and assumptions underlying our forward-looking information please read the most recent disclosure documents posted on the Company's website www.nacg.caor filed with the SEC and the CSA. You may obtain these documents by visiting EDGAR on the SEC website at www.sec.gov or on the CSA website at www.sedar.com.

This presentation presents certain non-GAAP financial measures because management believes that they may be useful to investors in analyzing our business performance, leverage and liquidity. The non-GAAP financial measures we present include "adjusted EBIT", "adjusted EBITDA", "adjusted EPS", "backlog", "cash provided by operating activities prior to change in working capital", "combined revenue", "free cash flow", "growth capital", "invested capital", "EBITDA margin", "net debt", "senior debt" and "sustaining capital". A non- GAAP financial measure is defined by relevant regulatory authorities as a numerical measure of an issuer's historical or future financial performance, financial position or cash

flow that is not specified, defined or determined under the issuer's GAAP and that is not

presented in an issuer's financial statements. These non-GAAP measures do not have any standardized meaning and therefore are unlikely to be comparable to similar measures presented by other companies. They should not be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP. Each of the above referenced non-GAAP financial measure is defined and reconciled to its most directly comparable GAAP measure in the "Non-GAAP Financial Measures" section of our Management's Discussion and Analysis filed concurrently with this presentation.

Other non-GAAP financial measures used in this presentation are "combined gross profit margin" "replacement value", "liquidity", "return on invested capital" and "senior debt leverage". We believe these non-GAAP financial measures are commonly used by the investment community for valuation purposes and provide useful metrics common in our

industry.

"Combined gross profit margin" is calculated as combined gross profit divided by combined revenue.

"Replacement value" represents the cost to replace our fleet at market price for new equivalent equipment.

"Liquidity" is calculated as unused borrowing availability under the credit facility plus cash.

"Net debt leverage" is calculated as net debt at period end divided by the trailing twelvemonth adjusted EBITDA.

"Senior debt leverage" is calculated as senior debt at period end divided by the trailing

twelve-month EBITDA as defined by our Credit Facility Agreement.

Everyone Gets Home Safe

Total Recordable

Injury Frequency

0.50

Q 2 2 0 2 2 E A R N I N G S

• Q2 2022 rate of 0.51 trending back towards company target
• Continue to build on site critical task audits added in 2022, 18 new critical tasks have been identified and added to the Audit list
• Green Hand / New to Site audits launched in April test the effectiveness of the program and reduce incidents with new hires

• Roll out of high potential injury reduction program to focus resources on events that have a more serious potential outcome
• Root cause analysis training initiated as part of high potential injury reduction program
• Continuing to research & test collision avoidance technology on large capacity haul trucks

2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Q2

2022 TTM

4.8 4.8

		4.2
3.1	3.4	3.4
	2.7

2.3 2.1

1.6

2013 2014 2015 2016 2017 2018 2019 2020 2021 Q2

2022

Exposure Hours 1

TTM

3

1 In millions, exposure hours relate to direct NACG employees and are the number of employment hours including overtime & training but excluding leave, sickness & other absences

Q 2 2 0 2 2 E A R N I N G S

4

What We're Experiencing

at Site

1. Strong demand for equipment & service

• Demand for production creates demand for services
• Heavy equipment, in particular, is fully booked

1. Wide-ranging& significant inflationary pressure

• Substantial cost increases from key suppliers & vendors
• Lagging contract adjustments eroding near-term margins

1. Skilled labour shortages

• Vacancies have a direct impact on mechanic availability
• High demand causing increased turnover & volatility

Q 2 2 0 2 2 E A R N I N G S

What We Are Doing

Operational excellence and low-cost execution remains our priority

• Expanding Acheson shop capacity to accommodate work from mine sites to lower costs
• Adding in-field senior maintenance management with focus on increasing efficiency and machine availability
• Developing use of telematics to prevent failures, extend component life, and improve operational efficiency

Parts & components

Workforce

5

Maintain competitive advantage through in- house remanufacturing capabilities & integrated partnerships with parts suppliers

• Increased component remanufacturing capacity, such as cylinders and track frames, using internal resources
• Inventory management and parts delivery optimization to minimize costs and increase maintenance labour efficiency (ie. reduction of time waiting for parts)

Prioritizing apprentice programs and regional incentives for heavy equipment mechanics and key personnel

• Increased recruiting of technicians and apprentices online and in-person
• Early signs indicate that our plan & actions are improving the vacancy situation