Target Hospitality : Investor Presentation August 2021

Investor Presentation

August 2021

Disclaimer

Cautionary Statement Regarding Forward-Looking Statements

This presentation contains statements reflecting assumptions, expectations, projections, intentions or beliefs about future events that are intended as "forward-looking statements." You can identify these statements by the fact that they do not relate strictly to historical or current facts. Management cautions that any or all of Target Hospitality's forward-looking statements may turn out to be wrong. Please read Target Hospitality's annual, quarterly and current reports filed with the Securities and Exchange Commission under the Securities Exchange Act of 1934, as amended, including its second quarter 2021 Form 10-Q filed on August 11, 2021 and 2020 Form 10-K/A filed on May 24, 2021 for additional information about the risks, uncertainties and other factors affecting these forward-looking statements and Target Hospitality generally. Target Hospitality's actual future results may vary materially from those expressed or implied in any forward-looking statements. All of Target Hospitality's forward-looking statements, whether written or oral, are expressly qualified by these cautionary statements and any other cautionary statements that may accompany such forward-looking statements. In addition, Target Hospitality disclaims any obligation to update any forward-looking statements to reflect events or circumstances after the date hereof.

Non-GAAP Financial Measures

This presentation contains historical non-GAAP financial measures including EBITDA, Adjusted EBITDA and Discretionary Cash Flow ("DCF"). Reconciliations of these historical measures to the most directly comparable GAAP financial measures are contained herein. This presentation also contains forward-lookingnon-GAAP financial measures including Adjusted EBITDA and DCF. Reconciliations of these forward-looking measures to their most directly comparable GAAP financial measures are unavailable to Target Hospitality without unreasonable effort. We cannot provide reconciliations of forward-looking Adjusted EBITDA or DCF to GAAP financial measures because certain items required for such reconciliations are outside of our control and/or cannot be reasonably predicted, such as the provision for income taxes. Preparation of such reconciliations would require a forward-looking balance sheet, statement of income and statement of cash flow, prepared in accordance with GAAP, and such forward-looking financial statements are unavailable to us without unreasonable effort. Although we provide a range of Adjusted EBITDA and DCF that we believe will be achieved, we cannot accurately predict all the components of the Adjusted EBITDA and DCF calculation. To the extent required, statements disclosing the definitions, utility and purposes of these measures are set forth in our earnings press release for the second quarter 2021, which is available on our website free of charge at www.TargetHospitality.com.

Investor Presentation | 2

Target Hospitality (NASDAQ: TH)

North America's Largest Provider of Comprehensive Hospitality

Solutions

Key Differentiating Attributes

• TH operates North America's largest network of geographically relocatable assets with 14,743 average available beds across 26 locations
• TH leverages a premier network and first-class customer base, which provides increased revenue visibility through minimum revenue commitment contracts and customer exclusivity provisions
• Servicing a diversified customer base including Government and non- profits in support of humanitarian aid efforts
• Utilizing distinct core competencies to provide a comprehensive suite of hospitality solutions

• North America's Largest Network
• Premier Customers

✔

Diversified Service Offerings

• Exceeding Analyst Expectation
  LTM Total Revenue(1)

Government

42%

$220.3

HFS and

Other(3) 58%

Strategically located network creates scale and flexibility that continues to drive profitability

Long-standing customer relationships; > 4 yrs. wtd. avg. contract duration and +90% contract renewal rate drives visibility

Distinct core competencies provide unique opportunities to drive value enhancing diversification

Executing against expectations, with five consecutive quarterly "Beats" versus analyst estimates

Average Available Beds(2)

Government

43%

14,743

HFS and Other(3)

57%

1. $ in millions, total consolidated revenue for the twelve months ended June 30, 2021
2. Average available beds as of June 30, 2021
3. Includes HFS - South, HFS - Midwest, TCPL Keystone and All Other segments

Investor Presentation | 3

Differentiated Value-Enhancing Business Model

Strategically Focused on Enhancing Value through Diversification

Premier Network		Executing on Diversification

Network size and scale provide efficient operating structure and promote meaningful strategic advantages in servicing a diversified customer base

Distinct Core Competencies

Best in class customers find increasing value in Target's distinctive set of core competencies which provide the basis for comprehensive hospitality solutions including:

- Food Management - Workforce Accommodations

- Lodging Infrastructure - Logistics - Facilities Maintenance

- Premium Catering

LTM Total Revenue(1)

Government

42%

$220.3

HFS and

Other(5) 58%

Average Available Beds(2)

Estimated Full Year 2021 Total Revenue(3)

HFS and

Government Other(5) 47%

53%

$265.0

Estimated 2021 Average

Available Beds(4)

Unique Capabilities

Target's premium service offerings provide the basis for expanding its commercial reach beyond its core accommodations platform while unlocking value within its existing core competencies. Target's suite of comprehensive hospitality service offerings and unique capabilities translate across a variety of end markets, creating multiple growth vectors to further enhance value.

1. $ in millions, total consolidated revenue for the twelve months ended June 30, 2021
2. Average available beds as of June 30, 2021
3. Represents mid-point of 2021 financial outlook, as announced on May 24, 2021 and reiterated on August 11, 2021
4. Represents anticipated average available beds as of December 31, 2021. Comprised of 6,400 available Government beds and 8,479 available HFS and Other beds
5. Includes HFS - South, HFS - Midwest, TCPL Keystone and All Other segments

Government

43%

14,743

HFS and Other(5)

57%

Government

43%

14,879

HFS and Other(5)

57%

Investor Presentation | 4

Investor Presentation | 5

Government Services Provide Attractive Growth Avenues

Deliberate Concentration of Service Offerings Supporting Federal Agencies

Addressable

Market

Attractive

Economics

Value

Creation

• Federal facilities support and management is an ~$84 billion per year market
• Comprising of highly sought-afterfirst-class customers, across a diverse range of Government agencies
• Opportunities utilize Target's existing core competencies, encompassing a suite of comprehensive hospitality solutions
• Target's reputation as a proven government services provider, creates the foundation to identify and evaluate a range of attractive growth opportunities
• Highly visible and repeatable future revenue streams, support Target's leading cash flow generation
• Minimal capital requirements promote a continuation of Target's top-tier Return on Invested Capital
• Market size and attractive economics create a favorably viewed segment that "tucks-into" Target's existing services offering
• Target's industry leading economics, combined with premium counterparty exposure, form a unique value enhancing opportunity
• Target trades, on average, at a 30% discount to comparable companies, while generating top-tier financial metrics, creating a compelling investment thesis