newalta spr13pres

INVESTOR RELATIONS PRESENTATION – SPRING 2013

This presentation contains forward-looking statements which are based on current views and

assumptions and are subject to uncertainties which are difficult to predict. These forward-looking

statements include future operating and financial results, business prospects and strategy,

realization of anticipated benefits of growth capital investments, acquisitions and technical

development initiatives, industry conditions, the amount of dividends declared or payable in the

future and future capital needs. Please refer to Newalta’s continuous disclosure documents for

reference to certain risks, uncertainties and assumptions which may cause actual results and

performance to differ materially from future results and performance that may be expressed or

implied by these forward-looking statements.

This presentation also contains references to certain financial measures that do not have any

standardized meaning prescribed by International Financial Reporting Standards and may not be

comparable to similar measures presented by other corporations or entities. These financial

measures are identified and defined in Newalta’s continuous disclosure documents.

FORWARD LOOKING STATEMENTS

UNIQUE BUSINESS MODEL

� Engineered environmental solutions

� Partnering with customers

� Focus on recovery and recycling

INDUSTRY LEADER

� Average 25% growth per year

� Historical return on capital of 18%

� Grew to >2000 people, 85 locations,

>250 operating permits

� Diverse customer base

� Increased dividend

GROWTH RECORD

� Top 20 customers represent 40% of revenue

� Large multi-nationals with leading brands

� Oil and gas less than half of revenue

DIVERSE CUSTOMER BASE

LEADING A NEW ERA OF SUSTAINABILITY

� Pioneered use of centrifuges

� Developed Onsite business model

� Established Technical Development team

INNOVATION

� Expect average annual growth of 20%*

� Excellent organic growth opportunities:

• Add and expand facilities

• Grow onsite contracts

• Develop U.S. business

• Commercialize new processes

* Adjusted EBITDA

GROWTH OPPORTUNITIES

THREE GROWTH ENGINES

� Leading growth through 2016

� North American energy market is a key area of opportunity

NEW MARKETS

� Onsite contract model, recovery

at source

� Cost and environmental benefits

NEW MARKETS – HEAVY OIL

� Expanding to oil sands mining sites

to treat MFT

� Secured long-term contracts with

Shell and Syncrude

NEW MARKETS – HEAVY OIL

� Apply proven processes and business model

� Grow onsite contracts

� Build satellites and facilities

NEW MARKETS - U.S.

� Expand the network to serve

key markets

� Generate stable cash flow through

long-term onsite contracts

� Achieve better than 3 year return

on capital

� Grow revenue >20% per year

through 2016

NEW MARKETS GROWTH

� Network of 30 facilities with excellent market coverage

� Leverage decades of experience

� Unconventional drilling techniques provide significant opportunities

OILFIELD

OILFIELD GROWTH

� Add satellite facilities to match market demand

� Expand onsite services

� Grow revenue 15% per year through 2016

� Deliver broad range of services to industrial customers

� Network of integrated facilities across Canada

INDUSTRIAL

VILLE STE-CATHERINE

� Recover lead from batteries

� Produce 70,000 tonnes of refined

lead products

INDUSTRIAL – EAST

NORTH VANCOUVER

� Produce 23 million litres of recycled

lubricating oils

� Stable end markets, scalable facility

INDUSTRIAL – WEST

� Productivity improvements

� Capacity expansions

� Expand onsite services

� Grow revenue 10% per year

through 2016

INDUSTRIAL GROWTH

� Investing $850 million in organic growth opportunities

• Increase long-term onsite contracts to 20% of revenue

• Expand capacity and add facilities

• Balanced growth; low risk with high return

GROWTH

� Deliver two new processes per year

� Pipeline of technologies in test and

pilot phase

� First new process in commercial

demonstration

TECHNICAL DEVELOPMENT

NEW PHOTO

� Experienced management

� Track record of growth

� Focus on innovation

� Strong organic growth opportunities

� Stable cash flow from onsite contracts

� Attractive shareholder returns

INVESTMENT HIGHLIGHTS

� New Markets delivers strongest contributions with shortest lag

� New Markets will be allocated >50% of growth capital through 2016

TIMING OF CAPITAL CONTRIBUTION

TARGET PAYBACK PERIOD

New Markets 3 years

Oilfield & Industrial 4 years

Combined after overheads 4 - 5 years

� Advanced key growth areas; demand offset by commodity prices and

drilling activity

� Strong balance sheet

� Expect Total Debt to Adjusted EBITDA to be <2.50 at year end

Q1 FINANCIAL PERFORMANCE

($ millions) 2013 2012 % VARIANCE

Revenue 171.3 166.5 3

Adjusted EBITDA* 27.7 36.1 (23)

Growth Capital 16.9 28.6 (41)

TSX:NAL

As at April 30, 2013

Market capitalization $755 million

Share Price $13.87

Shares outstanding 54.4 million

52-week high-low $11.98 - $16.39

Dividend (Annualized) $0.40/share

Yield 2.9%

Book value per share $11.82

Altacorp Capital Jason Sawatzky

Canaccord Genuity Sara Elford, CFA

Cormark Securities Inc. James A. Morrison, CFA

Mackie Research Capital Corp. Raveel Afzaal, CFA

National Bank Financial Rupert M. Merer, P. Eng., CFA

RBC Capital Markets Steve Arthur, CFA

TD Securities Robert Hope, CFA

Wunderlich Securities, Inc. Brian J. Butler, CFA

ANALYSTS

� Oilfield and heavy oil operations

create a by-product that is a

combination of oil, solids and water.

� This waste used to be sent to

landfill.

� Now, Newalta uses centrifuge

technology to separate the oil,

water and solids. The oil and water

are re-used in the process and the

remaining solids are sent to landfill.

� Using this process, Newalta recovers

the equivalent oil output of a junior

oil and gas company without drilling

a single well.

CRUDE OIL RECOVERY

� Oil sands mining operations

generate tailings and ponds are

used as part of the tailings

management plan.

� As tailings settle in the ponds,

they separate into layers of water,

mature fine tailings (“MFT”)

and solids.

� Newalta extracts the MFT and uses

centrifuge technology to separate

water from solids in the MFT layer.

� More water can be re-used in the

mining process.

� Solids can be used in the land

reclamation process.

MATURE FINE TAILINGS PROCESS

� VSC provides a closed-loop

recycling option for automotive

battery manufacturers.

� We recover metallic lead, lead

paste and plastic for recycling

from spent lead-acid batteries.

� We incorporate waste materials

into the production process as

substitutes for energy sources

and additives.

� Newalta’s recycled Nova Pb brand

lead is used in new battery

manufacturing

VILLE STE-CATHERINE LEAD RECYCLING

� Utilizes conventional crude

refining processes.

� Re-refined base oils

indistinguishable from virgin

base oils.

� Meets API Group II Base Oil

Specifications.

� Quality products.

� Reduces environmental impact

without sacrificing quality.

NORTH VANCOUVER RE-REFINERY PROCESS