CONSTRUCTION

SERVICES PRIMER
Data provided as of 12/31/2021
 WHO IS CONSTRUCTION SERVICES?
MDU Construction Services Group, Inc. provides a full spectrum of construction solutions through its electrical and
mechanical and transmission and distribution specialty contracting services. These services are provided to utility,
manufacturing, transportation, commercial, industrial, institutional, renewable, and governmental customers.

6 10
Transmission & Distribution Electrical & Mechanical
Construction Companies Construction Companies

7,500+ 43
Skilled Employees at Peak States of Operation

MDU Construction Services Group is providing market

leading services across the country
#4 Out of 50 companies on the 2021 EC&M top electrical
contractors list

Top specialty contractor in the nation, according to Engineering

#10
62 Office locations
News Record

across the United States

CONSTRUCTION SERVICES STRATEGY
Go & Grow Cost and Margins Our People and their Safety
Prioritizing organic growth, Continuously seeking strong Attracting, developing,
supplementing with M&A margin projects while rewarding, and retaining a
managing risk superior workforce
 Focusing on geographic
expansion in areas where  Secure selective large  We provide industry-
we can provide similar or projects, leveraging leading safe and healthy
complementary services relationships with national work environments and
customers continuously improve
 Building a diverse portfolio
operational performance
of brands that share our
culture of safety and  Our ability to attract and
excellence retain specialized labor is
a key differentiating
 Completed over 25
factor for construction
acquisitions since 1997
services

3
MARKET LEADER
Leading local presence in Transmission & Distribution and Electrical & Mechanical specialty contracting
High-Value Projects Local Brands, National Strength
 Local brands showcasing national strength across
KCI Terminal

Transmission & Distribution and Electrical & Mechanical

contracting

 Trusted brand and reputation; working on high-value

Three Square Solar

projects for the government and the largest U.S.

companies across utilities, manufacturing, industrials,
transportation, e-commerce, and data infrastructure
Adobe OR1 Data Center

 Continued growth through organic expansion as well

as mergers and acquisitions

4
SAFETY, COMMUNITY, EMPLOYEES & EXCELLENCE
The well-being of our employees, customers and communities is at the core of everything we do

Safety First
 Provide an industry-leading safe and healthy work environment

Employee Satisfaction
 Attract, develop, appropriately train, reward and retain a superior
workforce

Customer Satisfaction
 Dedicate ourselves to understanding and fulfilling our customers’
needs, becoming the preferred provider for the services we provide

Financial Success
 Enhance total shareholder value by improving earnings and returns on
invested capital while delivering the best construction value for our
customers

5
TRANSMISSION & DISTRIBUTION
T&D Revenue T&D crews have a long history of providing a full spectrum of
construction services from transmission, distribution, and
($ in millions)
substation work, to the manufacturing, selling, and renting of
$800 $733.6
$704.3 overhead and underground line-stringing equipment and tools
$700
$596.3 for the power line and communication industries.
$600
$500 $427.8 $447.2
$405.9
$400 Backlog
2021 Revenue by Business ($ in Millions)
$300 Line
$300 $276
$200
$250
$100 $214
$103.1
$0 $200
2016 2017 2018 2019 2020 2021
Utility $150
T&D Revenue Transportation $100
*Revenue as presented includes intrasegment revenue $630.5
$50

$0
2020 2021
 TRANSMISSION & DISTRIBUTION OUTLOOK
Actual & Projected Transmission Investment
1

$30
$27.8 $27.3
$27.2 $26.9
$25.0
$25 $23.7
$21.9 $22.2
$20.6 $20.7
$19.7
$20
Billion $

The Infrastructure, Investment & Jobs Act (IIJA)

$15
proposes to invest $65 billion for upgrades to the
country’s electric and grid infrastructure, the
$10 most significant investment in American history.

$5

$0
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024

Actuals Projected
1. Edison Electric Institute Business Analytics Group, December 2021
ELECTRICAL & MECHANICAL CONSTRUCTION

E&M Revenue E&M companies have deep experience in a wide variety of work
across the country and are leading manufacturers of electrical
($ in millions)
control systems. E&M teams have installed more than 1,000
$1,600
$1,400
$1,401.5
$1,334.5 renewable projects. These companies also provide turnkey
$1,274.3
$1,200
solutions, including emergency services and maintenance.
$957.7 $929.8
$1,000
$800 $706.0
Backlog
$600
2021 Revenue by Business Line ($ in Millions)
$400 $1,200 $1,109
$1,059
$200 $12.3 $1,000
$188.4
Industrial
$0 $800
$123.1 $457.5
2016 2017 2018 2019 2020 2021 Commercial
$600
Institutional
E&M Revenue
Renewables $400
*Revenue as presented includes intrasegment revenue
Service & Other $553.2
$200
$0
2020 2021
E&M CONSTRUCTION OUTLOOK
Dodge Construction & Analytics believes total construction spending will increase 6% to $946 billion,
with commercial construction seeing the largest increase in sales for 2022, up 12% to $143 billion.

The Infrastructure, Investment & Jobs Act (IIJA)

proposes billions of dollars in investment for
transportation systems, our nation’s airports,
electrical vehicle infrastructure and multiple
other industries where Construction Services
excels.
EXPERIENCED IN RENEWABLES
Dedicated to providing renewable, environmentally friendly and energy-efficient solutions
that meet the nation’s rising demand for sustainable energy

New Growth Platforms Focus on Solar

 Rapidly growing services across  Increasing focus on solar projects with

electric vehicle charging, wind 600+ megawatts of solar PV systems

installed
generation and energy storage
 Significant growth in solar demand:
 Industry leader in comprehensive
expected to be 17% of 2035 global Source: Wood/Mackenzie/SEIA Solar Market Insight Reports, Berkeley Lab

turnkey services energy consumption

1

Planning and Cost Analysis

 Well-positioned to succeed amidst an
Engineering and Design
accelerated renewable energy
Procurement and Construction transition and favorable governmental
Installation and Maintenance policy trend

1. Source: Avenston Energy Forecast. Lancaster, California

10
MULTIPLE HIGH-GROWTH OPPORTUNITIES
Infrastructure spending gap creates multiple levers for long-term growth

2020-2029 Infrastructure Systems1 Funding Gap  >$1.5 trillion spending gap in U.S. infrastructure
Surface Transportation $1,205 drives the large opportunity for MDU Construction
Electricity $197 Services
Airports $111
 Focusing on high-growth, essential markets:
Rail $10
energy infrastructure, hospitality, healthcare,
Total $1,523
manufacturing, transportation, and industrial
2018-2023 Cloud and 2023 2018-2023
Colocation CapEx Spending2 CapEx Spend CAGR
 Steadily increasing market share
Physical Infrastructure ~$29 8.5%

Land and Building ~$11 12.7%

 Continuous process and operational excellence
improvements
Total ~$40 9.6%

1. ASCE’s 2021 Infrastructure Report Card. Dollars in billions, based on 2019 dollars.
2. Omdia Cloud and Colocation Data Center Capex Market Tracker. Dollars in billions.

11
SUPPLEMENTAL GROWTH VIA M&A
Over 25 acquisitions completed since inception of Construction Services Group in 1997
 Expanding into new geographies and services Segment Revenue
by acquiring complementary brands that ($ in millions)

enhance our portfolio $2,500

Continued expansion into new product and geographic
markets, helping to enhance scale and brand value
 Fostering deep relationships with acquisition
$2,000
targets to position us for M&A opportunities

CSG Acquisition Example: $1,500

Construction
 Expands the geographic
Services business
footprint to Mid-Atlantic region $1,000 began in 1997
 Northern Virginia is one of the world's largest
data center markets $500

 6th largest metro area in the U.S.

$0
 2nd highest total commercial construction starts

12
REVENUE AND BACKLOG
Segment Revenue and Backlog
Revenue
($ in millions)
2016-2021 CAGR
Total Revenue: 14.5% Backlog: 20.9%
 High-teens compound annual growth rate since 2016
$2,500  Healthy backlog balance and bid activity
 Focusing on high-growth areas such as technology,
$2,000
hospitality, and industrial services, aiming to reduce
cyclicality and drive long-term sustainable growth
$1,500 $704.3
$596.3 $733.6
 Utilities and general contractors represent the largest
$1,385
$1,000
$427.8 $447.2 $1,273 customer base
$1,144
$405.9
$939
$708
$500 Backlog
$475
$706.0 $957.7 $929.8 $1,274.3 $1,401.5 $1,334.5  Backlog has grown at a robust ~21% CAGR since 2016
$0
2016 2017 2018 2019 2020 2021  ~80% of backlog is converted within 12 months
Transmission & Distribution Revenue Electrical & Mechanical Revenue
 New contract awards drive backlog growth
Backlog

Revenue as presented includes intrasegment revenue. Backlog and revenue figures as of December 31st in each period.

13
EBITDA
Significant EBITDA growth as a result of our disciplined growth strategy

Segment EBITDA
($ in millions)
2016-2021 EBITDA CAGR
$200 18.9%  Robust EBITDA growth since 2016
$180 $173.1 $168.6  EBITDA driven by organic growth and margin
$160
$145.3 expansion
$140
‒ Supported by contribution from acquisitions
$120
$103.6
$98.3
$100  Focused on expanding margins through high-growth,
$80 $71.1
high-margin projects, and continued cost control
$60  Expect margin expansion in 2022 to drive further
$40 EBITDA growth
$20

$0
2016 2017 2018 2019 2020 2021

EBITDA is considered a non-GAAP financial measure.

14
EARNINGS PER SHARE
Strong double-digit EPS growth since 2016

Segment EPS
2016-2021 EPS CAGR
($ per share)
26.0%
$0.60 $0.55 $0.54
$0.50 $0.47

$0.40
$0.33
$0.30 $0.27

$0.20 $0.17

$0.10

$0.00
2016 2017 2018 2019 2020 2021

15
APPENDIX
RECONCILIATION OF EBITDA
($ in millions)

For the year ended December 31

2016 2017 2018 2019 2020 2021

Income from
$33.9 $53.3 $64.3 $93.0 $109.7 $109.4
Continuing Ops.

Adjustments:

Interest Expense $4.1 $3.7 $3.6 $5.3 $4.1 $3.5

Income Taxes $17.8 $25.6 $20.0 $30.0 $35.8 $35.4

Depreciation,
$15.3 $15.7 $15.7 $17.0 $23.5 $20.3
Depletion & Amort.

EBITDA1 $71.1 $98.3 $103.6 $145.3 $173.1 $168.6

1. Note: EBITDA is considered a non-GAAP financial measure.

17