!"#$%&$%'(")'*#+'(")'*,-./'01&./2
'''
'
'
Disclaimer
Inthispresenta6on,allamountsareinCanadiandollars,unlessotherwiseindicated.
Certaininforma6onandstatementscontainedinthispresenta6oncons6tute“forward-lookinginforma6on”and“forward-lookingstatements”(collec6vely,“Forward-LookingInforma6on”)asdefinedunderapplicableCanadian
securi6eslawsandDIRTTEnvironmentalSolu6onsLtd.(“DIRTT”orthe“Company”)herebycau6onsinvestorsaboutimportantfactorsthatcouldcausetheCompany’sactualresultsoroutcomestodiffermateriallyfromthose
projectedinanyForward-LookingInforma6oncontainedinthispresenta6on.Anystatementsthatexpress,orinvolvediscussionsasto,expecta6ons,beliefs,plans,objec6ves,assump6onsorfutureeventsorperformance(oRen,but
notalways,throughtheuseofwordsorphrasessuchas“willlikelyresult”,“areexpectedto”,“willcon6nue”,“isan6cipated”,“believes”,“es6mated”,“intends”,“plans”,“projec6on”and“outlook”)arenothistoricalfactsandmay
beforward-lookingandmayinvolvees6mates,assump6onsanduncertain6eswhichcouldcauseactualresultsoroutcomestodiffermateriallyfromthoseexpressedinsuchForward-LookingInforma6on.
Inpar6cularandwithoutlimita6on,thispresenta6oncontainsForward-LookingInforma6onpertainingtothefollowing:thebusinessplansandobjec6vesofDIRTT;es6matesofdomes6candinterna6onaleconomics;andgrowth
strategyandopportuni6es.
WithrespecttoForward-LookingInforma6oncontainedinthispresenta6on,assump6onshavebeenmaderegarding,amongotherthings:theCompany’sabilitytomanageitsgrowth;compe66onintheCompany’sindustry;the
Company’sabilitytoenhancecurrentproductsanddevelopandintroducenewproducts;theCompany’sabilitytoobtaincomponentsandproductsfromsuppliersona6melybasisandonfavorableterms;theCompany’sabilityto
obtainqualifiedstaffandequipmentina6melyandcostefficientmanner;theregulatoryframeworkgoverningtaxesinCanadaandtheUnitedStatesandanyotherjurisdic6onsinwhichtheCompanymayconductitsbusinessinthe
future;futuredevelopmentplansfortheCompany’sassetsunfoldingascurrentlyenvisioned;futurecapitalexpenditurestobemadebytheCompany;futuresourcesoffundingfortheCompany’scapitalprogram;theimpactof
increasingcompe66onontheCompany;andtheCompany’ssuccessiniden6fyingotherriskstoitsbusinessandmanagingtherisksmen6onedbelow.
TheCompany’sactualresultsoroutcomescoulddiffermateriallyfromthoseexpressedintheForward-LookingInforma6onasaresultoftherisksnormallyencounteredinitsindustrysuchas:maintainingandmanaginggrowth;
historyoflosses;risksrelatedtonewtechnology;compe66onrisk;opera6ngresultsandfinancialcondi6onfluctua6onsonaquarterlyandannualbasis;risksrelatedtointellectualproperty;risksrelatedtoaddi6onalcapital
requirements;customerbaseandmarketacceptance;soRwareandproductdefectsanddesignrisks;availabilityofkeysupplies;dependenceonkeypersonnel;commoditypricerisk;risksrelatedtorestrictedcovenants;creditrisk;
theeffectofgovernmentregula6on;risksrelatedtointerna6onalexpansion;risksrelatedtophysicalfacili6es;legalrisks;foreigncurrencyandfiscalmaYers;risksrelatedtofutureacquisi6ons;risksrelatedtoForward-Looking
Informa6on;relianceonthirdpar6es;andconflictsofinterest.
SinceactualresultsoroutcomescoulddiffermateriallyfromthoseexpressedintheForward-LookingInforma6onprovidedbyoronbehalfoftheCompany,investorsandothersshouldnotplaceunduerelianceonanysuchForwardLookingInforma6on.
DIRTTcau6onsthattheforegoinglistsoffactorsarenotexhaus6ve.Further,Forward-LookingInforma6onismadeasofthedatehereofandtheCompanyundertakesnoobliga6ontoupdateForward-LookingInforma6ontoreflect
eventsorcircumstancesaRerthedateonwhichsuchstatementismadeortoreflecttheoccurrenceofunan6cipatedevents,exceptasrequiredbyapplicableCanadiansecuri6eslaws.Newfactorsemergefrom6meto6me,anditis
notpossibleforManagementtopredictallofthesefactorsandtoassessinadvancetheimpactofeachsuchfactorontheCompany’sbusinessortheextenttowhichanyfactor,orcombina6onoffactors,maycauseactualresultsto
differmateriallyfromthosecontainedinForward-LookingInforma6on.Noassurancecanbegiventhattheseexpecta6onswillprovetobecorrectandsuchForward-LookingInforma6oncontainedinthispresenta6onshouldnotbe
undulyreliedupon.Inaddi6on,thispresenta6onmaycontainForward-LookingInforma6onaYributedtothirdpartyindustrysources.
TheForward-LookingInforma6oncontainedinthispresenta6onisexpresslyqualifiedbytheforegoingcau6onarystatements.
Thispresenta6onshallnotcons6tuteanoffertosellorthesolicita6onofanyoffertobuyanyofDIRTT’ssecuri6esinanyjurisdic6on.Thesecuri6esofDIRTThavenotbeenandwillnotberegisteredundertheUnitedStatesSecuri6es
Actof1933,asamended(the“U.S.Securi6esAct”)oranystatesecuri6eslawsandmaynotbeofferedorsoldintheUnitedStatesexceptincertaintransac6onsexemptfromtheregistra6onrequirementsoftheU.S.Securi6esActand
applicablestatesecuri6eslaws.
2
Non-IFRS Measures
Theterm“AdjustedGrossProfit%”,“AdjustedSG&A”,“AdjustedSG&A%”,“AdjustedEBITDA”and”AdjustedEBITDA%”arefinancialmeasuresusedbyDIRTTthatarenotstandardmeasures
underInterna6onalFinancialRepor6ngStandards(“IFRS”)asadoptedbytheCanadianIns6tuteofCharteredAccountants.DIRTT’smethodofcalcula6ngAdjustedGrossProfit%,AdjustedSG&A,
AdjustedSG&A%,AdjustedEBITDAandAdjustedEBITDA%maydifferfromthemethodsusedbyotherissuers.Therefore,thesenon-IFRSmeasuresmaynotbecomparabletothesamemeasures
presentedbyotherissuers.
AdjustedEBITDAreferstonetearnings(loss)determinedinaccordancewithIFRS,beforeinterest,taxes,deprecia6onandamor6za6on,non-cashforeignexchangegainsorlossesondebt
revalua6on,non-cashgainsorlossesondisposalofcapitalassets,write-offofcapitalassets,non-cashstock-basedcompensa6onexpense,transac6oncosts,one-6menon-cashcommission
adjustment,andanyothernon-recurringgainsorlosses.AdjustedEBITDA%iscalculatedasAdjustedEBITDAdividedbyrevenue.Weusethesemeasurestoassessourabilitytogeneratecash
flows,servicedebt,paycurrenttaxes,andfundcapitalexpenditures.
Adjustedselling,generalandadministra6veexpenses(“AdjustedSG&A”)isSG&Abeforededuc6onsfornon-cashdeprecia6onandamor6za6onofnon-manufacturingrelatedassetsandstockbasedcompensa6onexpenses.AdjustedSG&A%iscalculatedasadjustedSG&Adividedbyrevenue.Weusethisasameasureoftheefficiencyandeffec6venessofoursalesandmarke6ngefforts
andoveralladministra6vesupporteffortsbycomparingthemtopriorperiodresults.
Forareconcilia6onofthesenon-IFRSmeasureseeDIRTT’sannualauditedfinancialstatementsandinterimfinancialstatements,completecopiesofwhichareavailableontheCompany’swebsite
andSEDAR.
3
WhatWeDo
DIRTTmanufacturescustom,prefab
interiorsforcommercial,healthcare,
educa6on,government,hospitalityand
residen6alclients
PoweredbyICE®,ourproprietary3Ddesign
andmanufacturingsoRware,DIRTTdelivers
beau6ful,custom,sustainable,flexible
interiorsatunequalledspeed,quality,
flexibilityandwithcostcertainty
4
InvestmentOverview–DRT:TSX
LARGEMARKET
Technology,prefabrica6on,preassemblyandmodulariza6ondrivinggrowthinlarge
NorthAmericannon-residen6alconstruc6onmarket(US$672billionin2016(1),
Canada$36.8billion (2))
PROPRIETARYTECHNOLOGY
ICE®SoRwareautomatesconven6onalrequirementsfordesign,quota6on,
manufacturinganddelivery,inasinglecomprehensivesoRwareapplica6on
MASSCUSTOMIZATION End-to-enddesignandmanufacturingsolu6onenablescustomizedand
high-qualityprefabricatedinteriorconstruc6on
ROBUSTDISTRIBUTION 99Distribu6onPartners(183loca6ons)with646staffdrivingDIRTT
salestoover5,600clients,including188Fortune500companies
SUSTAINABILITY
Significantlyreducedenvironmentalfootprintvs.conven6onalconstruc6on
NEWOPPORTUNITIES
Expandingcapabili6esinkeyver6cals(Healthcare),innova6vesolu6onsfornew
markets(Residen6al),strategicpartnershipswithindustryleaders(Corning®)
(1)  AsatNov2016–U.S.CensusBureau
(2)  AsatSept2016–Sta6s6csCanada
5
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Systemicandgrowinglaborshortage
Fraughtwithbudgetoverruns&misseddeadlines
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Anyindustryrelianton
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fordisrup6on
69%ofconstruc6onfirmsstruggletofillcraRposi6ons(construc6ondive.com)
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SustainableDIRTT:ABeYerWaytoBuild
Conven6onalconstruc6oncreatesexorbitant
wastewithharmfulmaterials.Wefeelthat
reducingandre-usingsupersedesrecycling
Ourcommitmenttosustainabilityisinfluencedby
ourphilosophy,prac6cesandperformance-our
responsibilitytotheenvironmentunderpins
everythingwedo
“Noonewantstosustainugly”
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Visualize,Design,Collaborate,Customize,Configure,Price,Manufacture,Deliver,Save
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TechnologyistheFutureofConstruc6on
CompletedProject
ICERender
ICE®-fromdesigntoconfigura6ontomanufacturingtodelivery
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TheFutureofConstruc6onisHere
DIRTT’ssolu6onsdo
notcomeinstandard
sizes,shapesand
layouts
Theyaremadeto
measureaccordingto
youruniqueneedsso
yourspacelooks,feels
andfunc6onsasyou
imagineit
Revolu6onizingInteriorConstruc6onThroughMassCustomiza6on
19
TheFutureofConstruc6oninHealthcareisHere
DIRTThealthcarespaces
enhancepa6entwellbeingwhilesuppor6ng
thediverseneedsof
medicalteams
Fromisola6onunitsto
primarycarefacili6es
andallacuitylevelsin
between
Cost-compelling,flexible,cleanandfastconstruc6on
20
TheFutureofConstruc6oninEduca6onisHere
Integrateanytechnologyinto
yourspacetosupportdiverse
needsandongoingchange
Shortlead6mesareideally
suitedforbuild-outsinany
facilityfromprimaryeduca6on
torenownedpost-secondary
ins6tu6ons
EnablingEducatorstoAdapttoEvolvingTrendsinLearning
21
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2–Accelera6ngInvestmentinNewSolu6onsandTechnology
Throughconstant
innova6on,weare
abletoturnideasinto
solu6onsthatresolve
themostpressing
real-worldbuilding
challenges
24
3-NewIndustryVer6cals
DIRTT’ssolu6onsworkin
prac6callyanyenvironment
DIRTTforLife™andDIRTT
Timberrepresenta
tremendousopportunityto
leverageourexis6ng
technologies&capabili6es
inbothnewandexis6ng
markets
25
4–ExpandintoNewGeographies
Strategicinterna6onalexpansion
whereescala6ngconstruc6on
costs,laborchallenges,increasing
demandforhigherquality
materialsand6melinepressures
presentaddi6onalopportuni6es
forlong-termgrowth
Selec6veexpansionbasedonopportuni6esandrela6onships
26
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3m'
MacroDriversIndicateStrongDemand
Non-residen6alspendingisapproachingpre-recessionlevelsintheUS
28
AnnualRevenue
$(000s)
$250,000
$200,000
$150,000
$100,000
$50,000
$0
2010
2011
2012
2013
2014
2015
2016YTDQ3
29
TTM Revenue + Adj. Gross Profit
(000s)
$300,000
46.0%
45.5%
$250,000
45.0%
$200,000
44.5%
44.0%
$150,000
43.5%
$100,000
43.0%
42.5%
$50,000
42.0%
$0
41.5%
Q12015
Q22015
Q32015
TTMRevenue
Q42015
Q12016
TTMAdjGP
TTMAdjGP%
Q22016
Q32016
30
TTM Adj. EBITDA + Adj. EBITDA %
(000s)
$300,000
16.0%
14.0%
$250,000
12.0%
$200,000
10.0%
$150,000
8.0%
6.0%
$100,000
4.0%
$50,000
2.0%
$0
0.0%
Q12015
Q22015
Q32015
TTMRevenue
Q42015
TTMAdjEBITDA
Q12016
Q22016
Q32016
TTMAdjEBITDA%
31
TTM Adj. SG&A + SG&A as % of Revenue
(000s)
$90,000
33.5%
$80,000
33.0%
$70,000
32.5%
$60,000
32.0%
$50,000
31.5%
$40,000
31.0%
$30,000
30.5%
$20,000
30.0%
$10,000
29.5%
$0
29.0%
Q12015
Q22015
Q32015
TTMAdj.SG&A
Q42015
Q12016
Q22016
Q32016
Adj.SG&A%ofrevenue
32
PercentageofRevenuebyVer6calIndustry
25%
20%
15%
10%
5%
0%
2014
2015
2016YTD
Diversifiedbusinessbyindustryandgeography
33
RobustandGrowingIPAcrossSoRwareandSolu6ons
133 159
granted
pending
Canada
38
47
United States
73
48
European Union
22
37
-
27
Other
OurIPprotec6on
strategyrepresents
astrongbarrierto
entry
At September 30, 2016
At6meofIPO:70Granted+87Pending
34
MarketandCapitalData
Ticker
SharesOutstanding(AtSeptember30,2016)
FullyDilutedSharesOutstanding(AtSeptember30,2016)
RecentSharePrice(AtJan3,2017)
52-WeekRange
MarketCapitaliza6on(AtJan3,2017)
CashandCashEquivalents(AtSeptember30,2016) WorkingCapital(AtSeptember30,2016) Debt(AtSeptember30,2016):
CurrentPor6on
Long-termPor6on TSX:DRT
84.7million
90.3million
$6.15
$4.58-$6.94
$521.4million
$88.1million
$104.3million
$3.5million
$10.2million
Strongbalancesheetprovidingflexibilityandresourcesforgrowth
35
StrongLeadership
Execu6veTeam
MogensSmed–CEO,Director
ScoYJenkins–President,Director GeoffGosling–VPProductDevelopment
BarrieLoberg–CTOandVPSoRware
DerekPayne–CFO
TracyBaker–COO
BoardofDirectors
SteveParry–Chairman
GregBurke-Director
LawrenceFairholm–Director
Chris6neMcGinley-Director
DianaPropperdeCallejon-Director
WayneBoulais–Director
DeniseKarkkainen–Director
RichardHaray–Director
JamesGosling–DirectorEmeritus
36
DRT:TSX
37