INVESTOR UPDATE

March 2024

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© Black Diamond Group Ltd. All Rights Reserved

Forward Looking Statements

This presentation contains forward-looking statements. The use of the words "anticipate", "continue", "estimate", "expect", "will", "project", "should", "believe", "intend" and similar expressions identify forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. Management believes the expectations reflected in those forward- looking statements are reasonable but cannot give any assurance these expectations will prove to be correct. Additional information on risk factors that could affect Black Diamond's operations and financial results are included in Black Diamond's annual information form for the year ended December 31, 2023 and other reports on file with the Canadian Securities Regulatory Authorities which can be accessed on SEDAR+. Readers are cautioned not to place undue reliance on these forward-looking statements. Furthermore, the forward-looking statements contained in this presentation are made as at the date of this presentation and Black Diamond does not undertake any obligation to update or revise any of the forward-looking statements, except as may be required by applicable securities laws.

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Introduction

Black Diamond Group rents and sells modular space and

workforce accommodation solutions to customers in Canada, the United States and Australia. We serve a broad range of sectors including construction, education, engineering, resources, financial institutions, military, and government.

Ticker

TSX:BDI

Insider Ownership

~26%

Shares Outstanding2

60.2 mm

52 Wk Range

$5.35 - $9.92

Market Cap (03/15/2024)

$536 mm

Enterprise Value1

$720 mm

1

- Enterprise Value is a non-GAAP financial measure. Refer to the Non-GAAP & Supplementary Financial Measures section for more information.

2

- Shares outstanding refers to the weighted average number of common shares outstanding during the most recent quarter, on a basic basis.

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Creating a Better Way

MODULAR SPACE SOLUTIONS - MSS

  • Diversified, steady, compounding growth
  • Predictable and improving returns
  • Strong free cash flow characteristics
  • Attractive unit economics
  • Long-livedrental assets
  • Low maintenance capital

WORKFORCE SOLUTIONS

LODGELINK

- WFS

WFS

MSS

LL

•

Disruptive digital platform

• Capitalizing on significant operating

•

Rapidly scaling

leverage

• Unique solution focused on

essential workforce crew

• Improving utilization & diversification of

travel

projects

• Long-lived rental assets

• Low maintenance capital

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© Black Diamond Group Ltd. All Rights Reserved

Black Diamond Investment Attributes

Stability through diversification by asset, industry, & geography

Predictable, profitable growth through fleet additions, average rental rate increases, & VAPS

Value creation through compounding Free Cashflows into low maintenance, high return, long-lived assets

1 - Contracted future rental revenue for MSS units on rent is calculated as the total value of rental revenue yet to be recognized in the future related to performance obligations not yet satisfied at the reporting period. Assets on rent is comprised of only assets that are on rent on or before the reporting period. Contracted future rental revenue for WFS contracts in place is calculated as the total value of rental revenue yet to be recognized in the future related to performance obligations not yet satisfied as at the reporting period date. The commencement of contracts in place include both contracts that commenced before the reporting period or in some instances, contracts signed but which will commence in future periods.

2- As at December 31, 2023

3- Return on Assets ROA is a non-GAAP measure. Refer to non-GAAP & Supplementary Financial Measures section for more information

  • Consolidated contracted future rental revenue of ~$136 mm as at Dec 31, 2023 (MSS of +$101mm and WFS of ~$35mm)1
  • Avg duration of MSS lease portfolio of ~52 months2
  • Thousands of customers across diverse industries and geographies
  • MSS rental fleet CAGR of ~16% since 2016
  • MSS quarterly rental revenue run rate CAGR of ~22% since 2016
  • Quarterly dividend per share re-instated in 2021. Has since been increased three times from $0.0125 in Q4/21 to $0.03 (following the Q4/2023 declaration).
  • LodgeLink platform is scaling quickly and tracking in-line with "rule of 40"
  • Asset Based Lending facility provides flexible, low-cost debt to fund growth with ~$143 mm of available liquidity
  • Over $500 mm of quality assets on the balance sheet (with replacement value > $1B)
  • Ability to compound over time with long-lived assets
  • Attractive unit economics

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© Black Diamond Group Ltd. All Rights Reserved

EPS & Return on Assets

$/Share

EPS

Return on Assets (ROA)(1)

$0.49

25%

$0.45

$0.44

$0.34

$0.35

20%

$0.25

15%

$0.15

$0.05

10%

$(0.05)

$(0.06)

5%

$(0.15)

$(0.18)

$(0.14)

$(0.25)

0%

EPS (Diluted, con�nuing ops , LHS)

  • EPS has continued to grow YoY driven by compounding growth in EBTIDA and rental revenue across the business
  • ROA CAGR of ~12% over the last five years

1

- ROA is a non-GAAP financial measure. Refer to the Non-GAAP & Supplementary Financial Measures section for more information

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Unit Economics Example1

Utilization

Lifetime Return on

Annualized Return

Initial Investment

on Initial Investment

85%

525%

17%

75%

475%

15%

65%

425%

13%

Used assets typically

sell at a premium to

NBV

Initial contracts terms

often cover initial

($)

payback

Revenue

Typical asset

Lifetime potential excess rental

Rental

yields payback

revenue

in ~ 5 years

$0

1

10

20

30

Age in Years

Lifetime return on initial investment

525%

Practical Asset

Life

30+ Years

Payback Period

~ 5 Years

Average

Capitalized R&M

5%

Utilization

85%

1- Illustrative example of typical asset life-cycle returns

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Operating Overview 1

Modular Space Solutions (MSS) Fleet

$345 mm NBV

11,339 Units

Workforce Solutions (WFS) Fleet

$146 mm NBV

6,148Units

Consolidated Rentable Square Feet

+8 mm

419,328 TTM Total LodgeLink room nights sold

~$30.4 mm TTM Profit, up 15% vs 2022

$106.6 mm FY 2023 Adjusted EBITDA 2

~$506.5 mm PP&E Book Value

1.

Source data: Q4 2023 Financial Statements, Management, Discussion and Analysis

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8

2.

Adjusted EBITDA is a non-GAAP financial ratio. Refer to the Non-GAAP & Supplementary

Measures section for more information

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Rental Revenue Diversity - Q4/2023

Source data: Q4 2023 Management, Discussion and Analysis

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Australia 12%

TOTAL REVENUE

Canada

US

BY GEOGRAPHY

53%

35%

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Black Diamond Group - Who We Are

Specialty rentals and industrial services provider organized into two business units

MSS:

Modular Space Solutions

  • Diversified rental stream through rental of modular buildings in Canada and U.S.
  • Ancillary, Value Added Products & Services (VAPS)
  • Custom modular sales (manufactured by third party partners)

Rental Fleet NBV ($mm) and Utilization

350

100%

300

90%

80%

250

70%

200

60%

$mm

50%

150

40%

100

30%

20%

50

10%

0

0%

23.0

Consolidated Rental Revenue

21.0

19.0

17.0

15.0

$mm 13.0

11.0

9.0

7.0

5.0

MSS Rental Revenue

WFS Rental Revenue

WFS:

Workforce Solutions

  • Rental of small and large format accommodations in Canada, Australia, U.S. with ancillary services
  • Turnkey lodge services
  • LodgeLink - digital platform servicing crew travel

MSS Book Value (LHS)

WFS Book Value (LHS)

MSS Util (RHS)

WFS Util (RHS)

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Note: WFS Utilization for historical periods from Q1/21 to Q3/23 have been re-calculated using methodology consistent with the most recent

reporting period, Dec. 31, 2023.

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Disclaimer

Black Diamond Group Ltd. published this content on 02 April 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 03 April 2024 19:21:05 UTC.