ARMTEC INFRASTRUCTURE INCOME FUND

ARMTEC INFRASTRUCTURE INCOME FUND
Chuck Phillips
President & CEO
ARMTEC INFRASTRUCTURE INCOME FUND
Forward-Looking Statements
This presentation contains forward-looking statements that are based on current
expectations, and are subject to a number of uncertainties and risks, and actual results may
differ materially. These uncertainties and risks include, but are not limited to: industry
cyclicality; competition; acquisition and expansion risk; capital and liquidity risk; reductions in
demand for Armtec’s products; collections from customers; relationships with suppliers; lack
of long-term agreements; expiration of rights under license and distribution arrangements;
availability and price volatility of raw materials; product liability; intellectual property; reliance
on key personnel; collective bargaining agreement; interest rates; uninsured and
underinsured losses; environmental, health and safety requirements; operating hazards; risk
of future legal proceedings; securities laws compliance and corporate governance
standards; tax law risk; dependence of the Fund on Armtec Limited Partnership; and certain
risks associated with the structure of the Fund including income tax matters; leverage and
restrictive covenants; credit facility; nature of units; effect of market interest rates on the
price of units; restrictions on potential growth. Cash distributions are not guaranteed.
Further information about these and other risks and uncertainties can be found in the
disclosure documents filed by Armtec Infrastructure Income Fund with the securities
regulatory authorities, available at www.sedar.com.
www.armtecincomefund.com
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Agenda
Fund Highlights
Recent Acquisitions
Strategic Initiatives
Financial Review
Current Business Environment
Outlook
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Armtec Infrastructure Income Fund
LEADING MANUFACTURER & MARKETER OF A COMPREHENSIVE
RANGE OF INFRASTRUCTURE PRODUCTS & ENGINEERED
SOLUTIONS FOR A DIVERSE CROSS-SECTION OF INDUSTRIES
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Revenue By End-use Market*
57% infrastructure
7%
agriculture
15% commercial
17% residential
4%
natural resources
* As at December 31, 2009
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Recent Acquisitions
2007 - 2009
ARMTEC INFRASTRUCTURE INCOME FUND
Recent Acquisitions 2007 - 2009
Recent Acquisitions 2007 - 2009
Recent Acquisitions 2007 - 2009
Revenue Growth 2005-2009
000s of Cdn$
2009
463,829
2008
392,063
2007
206,226
24.5%
2006
166,166
GROWTH
2005
154,904
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STRATEGIC INITIATIVES
ARMTEC INFRASTRUCTURE INCOME FUND
New Organizational Structure
• 4 Geographic Regions
• Pacific, Prairie, Central, Eastern
• Corporate Services Group
• National activities focus
• Strategic support functions
• Best practices
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National Industry Leader
Current Business Environment
Sudbury
Walkerton
Orangeville
PACIFIC
GUELPH
Redwater
Prince George
PRAIRIE
St. Clet
Ottawa
Huntsville
SaintSaint-Jean
Haliburton
-SurSur-Richelieu
Peterborough
Chesterville
Newmarket
Brooklin
Brampton
Hamilton
Mitchell
Forest
Dresden
Woodstock
Chatham
Comber
Bishop’
Bishop’s Falls
Edmonton
Surrey
Richmond
Nanaimo
EASTERN
Langley
Calgary
Lethbridge
Saskatoon
CENTRAL
Winnipeg
Thunder Bay
St. John’
John’s
Summerside
St. Augustin
St. Bruno
Sackville
Bible Hill
(Truro)
Head Office
Locations
GUELPH
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2009 Strategic Initiatives
SAP ERP System
• Implementation of single SAP ERP
system across organization
• Completion scheduled for March 2011
• Total capital cost of $4.2 million
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Conversion to a Corporation
• Planned conversion on or about January 1, 2011
• Benefits include:
• Lower taxes to be paid
• Improved access to capital markets
• Attraction of new investors
• Simplified tax and legal structure
• Expected quarterly dividends at initial annualized rate of
$1.60 per share
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FINANCIAL REVIEW
ARMTEC INFRASTRUCTURE INCOME FUND
Financial Highlights
000s of Cdn$
REVENUE
Dec 31, 2009
$463,829
Dec 31, 2008
$392,063
EBITDA
$80,303(1)
$62,387
DISTRIBUTABLE CASH
$62,392(1)
$47,192
DISTRIBUTIONS DECLARED
$44,127
$33,444
71%
71%
PAYOUT RATIO
(1) Excluding Reorganization Costs
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CURRENT
BUSINESS ENVIRONMENT
ARMTEC INFRASTRUCTURE INCOME FUND
Challenging Economic Environment
Managing Conditions Prudently & Carefully
• Continued benefits of fast turnaround infrastructure
stimulus funded construction projects
• Focus on maintaining market share
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Public Infrastructure a National Priority
Building Canada Federal Program
• Additional $8 billion announced in 2010 budget
• Total investment of over $14 billion in public infrastructure
committed to date by all levels of government
• Greater number of projects starting and continuing this
construction season
Sources: CIBC World Markets, Raymond James
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Alternative Ways to Finance Large Projects
Government + Private Sector Projects “P3s”
P3s
Government
+
Private Sector
• Large high-profile projects
• Leverage all industry-leading brands
for cross-divisional opportunities
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OUTLOOK
ARMTEC INFRASTRUCTURE INCOME FUND
Outlook
LONG-TERM OUTLOOK: Positive
Inherent Strength of Infrastructure Market
Benefits of Ongoing Government Stimulus Funding
SHORT-TERM OUTLOOK: Cautiously Optimistic
Furthering Integration of Acquisitions
Economic Recovery Continues
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Moving Forward
• Maximize integration of new operations
• Maximize the advantage of scale
• Execute company-wide sales & marketing opportunities
ENHANCED COMPETITIVENESS IN LARGE PROJECTS
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ARMTEC INFRASTRUCTURE INCOME FUND
FOR MORE INFORMATION PLEASE VISIT
WWW.ARMTECINCOMEFUND.COM
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