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BB&T Capital Markets 10 th Annual Commercial & Industrial Investor Conference March 23, 2016.

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Presentation on theme: "BB&T Capital Markets 10 th Annual Commercial & Industrial Investor Conference March 23, 2016."— Presentation transcript:

1 BB&T Capital Markets 10 th Annual Commercial & Industrial Investor Conference March 23, 2016

2 2 BB&T Commercial & Industrial Conference 03.23.16 Forward-Looking Statements This material and related presentation may contain certain forward-looking statements within the meaning of the Private Securities Reform Act of 1995. Any such comments are based upon information available to EMCOR management and its perception thereof, as of this date, and EMCOR assumes no obligation to update any such forward-looking statements. These forward-looking statements may include statements regarding market opportunities, market share growth, gross profit, backlog mix, projects with varying profit margins, and selling, general and administrative expenses. These forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. Accordingly these statements are no guarantee of future performance. Such risk and uncertainties include, but are not limited to, adverse effects of general economic conditions, changes in the political environment, changes in the specific markets for EMCOR’s services, adverse business conditions, availability of adequate levels of surety bonding, increased competition, unfavorable labor productivity and mix of business. Certain of the risks and factors associated with EMCOR’s business are also discussed in the Company’s 2015 Form 10-K and in other reports filed from time to time with the Securities and Exchange Commission. All these risks and factors should be taken into account in evaluating any forward-looking statements.

3 3 BB&T Commercial & Industrial Conference 03.23.16 EMCOR Group  ~29,000 employees  Leading specialty construction, building and industrial services provider  2016 estimated revenues $6.9B - $7.0B

4 4 BB&T Commercial & Industrial Conference 03.23.16 Why EMCOR  Significant expertise in project execution and service delivery ̶ Excellence in managing skilled labor  Disciplined and effective cost management  Broad array of services delivered into growing / recovering end markets ̶ Platform for earnings growth  Strong and liquid balance sheet ̶ Flexibility for organic growth and acquisitions  History of consistent cash generation ̶ Cash flow ± net income

5 5 BB&T Commercial & Industrial Conference 03.23.16 Leading Market Position Across all Businesses EMCOR GROUP, INC. 2015 Revenue: $6.7B CONSTRUCTION SERVICES MECHANICAL CONSTRUCTION 2015 Rev: $2.3B ELECTRICAL CONSTRUCTION 2015 Rev: $1.4B BUILDING SERVICES 2015 Rev: $1.7B INDUSTRIAL SERVICES 2015 Rev: $0.9B EMCOR UK 2015 Rev: $0.4B GOVERNMENT SERVICES SITE-BASED SERVICES MOBILE MECHANICAL SERVICES

6 6 BB&T Commercial & Industrial Conference 03.23.16 CONSTRUCTION – U.S. Leading Specialty Construction Contractor  Sheet Metal  HVAC  Process Piping  Fire Protection  High Purity Piping  Plumbing  Low Voltage  Voice & Data  Lighting  Security / Alarm  Transmission & Distribution  High Voltage

7 7 BB&T Commercial & Industrial Conference 03.23.16 BUILDING SERVICES – U.S. Leading National Provider of Building Services  National HVAC Services  Building Control Systems  Retrofit Projects  Repair Services  Service Agreements  Operations & Maintenance  HVAC Services  Retrofit Projects  Preventative Maintenance  Energy Efficiency Upgrades  Base Operations  Facilities Management  IDIQ Projects  Operations & Maintenance  Supplier Management

8 8 BB&T Commercial & Industrial Conference 03.23.16 U.S. Industrial Services  Heat Exchanger Service / Fabrication  Embedded Contracts  Turnaround Services ̶ Heat Exchangers, including HF Alky Units ̶ Fluid Catalytic Cracking Units ̶ Coking Units  Specialized Welding  Field Services  Maintenance Capital Projects Leading Provider of Refinery / Petrochemical Turnaround Services

9 9 BB&T Commercial & Industrial Conference 03.23.16 Balanced Revenue Distribution Geography Source $2,212 1,246 2,339 922 $6,719 18% 35% New Construction Building Services (Incl. UK) Retrofit & Renovating 33% ($ Millions) 2015 Revenues Industrial Services 14% 94% 6% $6,341 378 $6,719 U.K. United States ($ Millions) 2015 Revenues

10 10 BB&T Commercial & Industrial Conference 03.23.16 Service Revenue is Growing as a Percent of Total Revenue  2015 service revenue $3.3 billion or 49%  Recurring service revenue base under more cyclical construction business ($ Millions) $6,057 $5,037 $5,450 34% 38% 45% 48% $4,698 42% $6,425 49% ServiceConstruction 45% $6,334 $6,195 $7,000 $6,900 - $6,719

11 11 BB&T Commercial & Industrial Conference 03.23.16 Backlog by Market Sector ($ Millions) CommercialHospitalityIndustrialHealthcare InstitutionalTransportationWater & Wastewater $3,634 $3,771 $2,816 $2,953 $3,618 $3,302 $3,224 $3,344

12 12 BB&T Commercial & Industrial Conference 03.23.16 Backlog by Segment ($ Millions) MechanicalElectricalBuilding Services Industrial ServicesEMCOR UK $3,634 $3,771 $2,816 $2,953 $3,618 $3,302 $3,224 $3,344

13 13 BB&T Commercial & Industrial Conference 03.23.16 Key Financial Data – Income Statement ($ Thousands, except per share information)

14 14 BB&T Commercial & Industrial Conference 03.23.16 Key Financial Data – Balance Sheet ($ Thousands)

15 15 BB&T Commercial & Industrial Conference 03.23.16 2016 Outlook  Non-residential construction market continues to improve, expect sector to grow mid-single digits  Backlog growth positive for Domestic Construction and Building Services Segments  Building Services will benefit from continued growth in retrofit and energy savings projects  Industrial Services: ‒ Expect good Spring turnaround season ‒ Headwind in “new build” heat exchanger fabrication  Strong and liquid balance sheet

16 16 BB&T Commercial & Industrial Conference 03.23.16 2016 Guidance

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