Latin America - Enerflex

COMPANY OVERVIEW

Creating Two Market LeadersPRE SPIN OFFTODAY3

Management and GovernanceManagementBoard of DirectorsBlair GoertzenPresident &CEOJamesHarbilasVice PresidentFinance & CFOCarol IonelDirector,HumanResourcesStephen J. Savidant(Former ToromontBoard Member)• Chairman – Enerflex Ltd.• Chairman ─ ProspEx Resources Ltd.• Director ─ Empire Company Limited• Former President & CEO ─ Esprit EnergyTrust and Canadian Hunter ExplorationJ. Blair Goertzen • President & CEO ─ Enerflex Ltd.Robert S. Boswell(Former ToromontBoard Member)Wayne S. Hill(Former ToromontBoard Member)• Director, Chairman & CEO ─ Laramie EnergyLLC• Director ─ Complete Production Services inc.• Former Chairman & CEO ─ Forest OilCorporation• Former EVP ─ Toromont Industries Ltd.Greg StewartVice President& CIOH. Stanley Marshall(Former ToromontBoard Member)• CEO & President ─ Fortis Inc.• Director, Chairman ─ Fortis Inc.• Director, Chairman ─ Terasen Gas Inc.• Director ─ Conference Board of CanadaJerryFraelicPresident ,Southern US/Latin AmericaIvanHeideckerPresident,Canada andNorthern USBillMoorePresident ,InternationalMichael A. WeillKenneth R. BruceW. Byron Dunn• CEO & Founder – Global DeepwaterPartners, LLC• Former President – Production Americas,BHP Billiton• President, KJESB Investments Inc.• Former Vice Chairman – CIBC World Markets• Principal, Tubular Synergy Group, LP• Former President & CEO – Lone Star SteelCompanyProven and Experienced Leadership4

Wide Range of Specialty Customized EquipmentCompression and Power• Reciprocating and rotary screwcompression applications• Small to large horsepower(200 hp – 10,000 hp)• Conventional and unconventionalplaysProduction and Processing• Systems for gas plants (dew point)and refrigeration systems• Amine systems (H 2 S and CO 2removal)• Dehydration units and CO 2 facilities• Modular design for fast trackingprojectsMaximizing Throughput and Minimizing Operating Costs6

Wide Range of Specialty Customized Equipment• Pipeline and storage facilities• Power generation• PetrochemicalService Offering• Mechanical for gas enginecompressors and powergenerators• Construction product installation• Equipment operating businessPreferred Single Source Supplier7

Balanced and Diversified RevenueGeographic DistributionProduct DistributionInternational32%14%54%Canada andNorthern USParts andServicesOther4%25%3%Rentals68%FabricationSouthern USand LatinAmerica2010 $1.1 Billion 2010 $1.1 BillionGlobal Diversification with CoreStrength in North AmericaParts, Service and Rentalsare Stable and Recurring Revenues8

Q1 2011 Balanced and Diversified RevenueGeographic DistributionProduct DistributionInternational29%28%43%Canada andNorthern USParts andServicesOther4%26%2%Rentals68%FabricationSouthern USand LatinAmerica2011 (Q1) $326 Million 2011 (Q1) $326 MillionGlobal Diversification with CoreStrength in North AmericaParts, Service and Rentalsare Stable and Recurring Revenues9

DIVISIONAL OVERVIEW

Canada and Northern United StatesMarkets We ServeManufacturing Facilities 4Retrofitting Facilities 4Service Locations30Service Vehicles 200Specialize in Cold Weather Applicationof Enerflex Technologies11

Opportunities - Horn RiverShale Gas PlayNortheast BC Gas Pipelines and FacilitiesN.W.TNorthMaxhamishLoopSlave PointPlatformCordovaEmbaymentBCCabinABSKBovieFault SystemHorn RiverBasinFt. NelsonGas PlantCabin 0.4 Bcf/d,2.4 Bcf/d Ultimate4 th Qtr. 2011Horn River Pipeline0.6 Bcf/d Committed2 nd Qtr. 2012British ColumbiaAlbertaFt. NelsonFort McMurrayDemand RegionNorth CentralCorridorWoodenhouseMeikle RiverSpectra Energy0.8 Bcf/d CommittedGathering & ProcessingStaged In-service 2012 - 2013Ft. St. JohnTaylorMcMahonGas PlantMontney PlayMcMahonStation 2Pine RiverStation 2Dawson 0.2 Bcf/d,staged in-service2011-2013GroundbirchPine RiverGas PlantSouth Peace0.2 Bcf/dSundownGroundbirch1.1 Bcf/d4th QTR. 2010SunriseParklandTupperDawsonBritish ColumbiaSwanLakeAlbertaPouceCoupeGrowing Supply BasinsTCPL Alberta SystemSpectra EnergyGas Process PlantProposed Gas PlantCompressor StationSpectra ProjectsSouth Peace PipelineNorth Maxhamish LoopTransCanada ProjectsNorth Central CorridorGroundbirch MainlineHorn River MainlinePacific TrailPipelines12

Opportunities - MontneyLarge Tight Gas PlayBritish ColumbiaAlberta• South of Horn Riverextending into Alberta• Access to infrastructure• Providing high volumes ofcompression andprocessing facilities• Liquid rich formationrequiring additionalequipment– Presents new opportunitiesHybrid&ShaleGasFarrellAltaresTalisman094B094ALow GasConcentrationConventionalMontney Gas & OilTight GasFort St. JohnSeptimusCrewParklandDawsonPouce CoupeStormMoniasARCBirchcliffSunriseTalismanGroundbirchDawson CreekPouce CoupeShellSwan LakeGlacierSouthEncanaAdvantageValhallaSundownLa GlaceTupperMurphySinclairHytheGrand Prairie093O093PLow GasConcentrationGreaterSierraExtendedDeep BasinBritishColumbiaCalgaryAlberta13

Opportunities - Equipment ManufacturingNortheast BC Production by BasinBcf/dHistoryFutureBcf/d55.25450%432.53Horn River5%1% New Play213%19%Montney23%223%BC Deep Basin8%1BC Foothills110%40% BC Plains & Jean-Marie8%002000 2005 2010 2015 2020 202514

Southern United States and Latin AmericaMarkets We Serve• Southern US and Latin America– Houston main location (Packaging and Service)– 4 remote sales offices– 5 remote service offices• Strategic Advantage– Tidewater Location for International– Lower Manufacturing Cost Base to SupportInternational Sales Effort– Leverage Knowledge for Field InstallationsRegion Least Affected by Merger15

Opportunities - Southern and Eastern USFayettevillegas fieldSale & Service LocationsFabrication PlantsShale Gas PlaysMarcellusgas field20 trillion cubicfeet ofrecoverable gas262 trillion cubicfeet ofrecoverable gasEagle FordHaynesvilleshale fieldsizeable quantitiesof oil, lean gas andrich gas250 trillion cubicfeet ofrecoverable gas• Significant focus on unconventional (shale) gas• Significant opportunities for Enerflex as gas comes online for both compression and processing• Gas consumption running at high rates 53.0 BCF• LNG import capable 18.5 BCF / actual YTD 0.8 BCF, CDN imports down• Storage levels at 2.19 TCF, 58 BCF below the 5 year average and 255 BCF below 2010 levels16

Opportunities - Latin AmericaVenezuelaColombiaPeruChileVenezuelaBoliviaArgentina• South America 14% of contractbookings (sales organization)• Risk Management– Resellers (positive cash and before ship)– Letters of credit– US product if possible• National Oil Companies• Columbia recently active (BP)• Venezuela active (PdVSA)• Peru (PlusPetrol)17

Australasia• Solid market presence• Our projects include:– Gas-gathering infrastructurefor LNG plants on Australia’snorthwest shelf– Coal-seam gas compressionsystemsfor Queensland’s local gas demandand upstream LNG development– Compression booster stationsalong most of Australia’s pipelinenetwork18

Opportunities - AustralasiaMajor Basin Activity19

Opportunities - AustralasiaGas Production GrowthDemand expected to double in 10 YearsPlannedLNGProjectsCarbon Driven Fuel Switching10 Year Historic Average…driven by government carbon policy and LNG export20

Middle East North Africa• Smallest share ofrevenue today• Expected to lead the worldin natural gas productionover the next 20 years• Region holds a total of2,658 trillion cubic feet ofnatural gas• 44% of world’s proven gasreserves21

Opportunities - Middle East North AfricaMENA ProductionMENA ReservesMiddle EastNo‐OECD AsiaAfricaNo‐OECD Europe/EurasiaCentral/South AmericaUnited StatesAustralia/New ZealandOther OECDMiddle EastEurasiaAsiaAfricaNorth America**Central/South AmericaEurope3192671615394952,1702,658World Total:6,609 trillion cubic feet‐5 5 15Trillion cubic feet0 1000 2000 3000Trillion cubic feet*Graph shows change in world natural gas production and reserves by region 2010 to 2035 (Tcf)**Does not include unconventional gas reserves in North America.Source: Oil & Gas Journal22

Opportunities - Middle East North Africa• Growth will be driven by:– LNG– Power Generation– Fertilizer– Water Desalination• Abu Dhabi office with sales,engineering and operationsmanagement• Oman reached thecommencement of our BOOMcontract for BP’s KhazzanMakarem• Awarded a $34 millioncompression order in Bahrainwith Tatweer PetroleumEgyptKuwaitBahrainQatarUAEOman23

Europe / CIS• Over 2 decades of strong presencein Europe• Traditional market in the Beneluxcountries has been– Combined Heat and Power (CHP)packages– Limited growth opportunities• To grow in Europe:– Take advantage of diversity of productapplications– Strengthen service base24

FINANCIAL OVERVIEW

Historical Financial PerformanceToromont Energy Systems Inc. (TESI) only, excludes Enerflex Systems Income Fund (“ESIF”)prior to Jan 2010*in C$ thousands(unless otherwise indicated)2010 2009 2008Revenue $1,125,220 $772,939 $826,995Gross Margin 195,015 150,215 160,706Gross Margin (%) 17.3% 19.4% 19.4%Net Income after Taxes 25,419 61,108 67,215EBIT 56,919** 97,792 106,291EBITDA $96,032 $111,848 $117,015*Source: Page J-3 of the Toromont Industries Ltd. Management Information Circular dated April 11, 2011.**Includes gain on sale of $18.6 million related to Toromont’s acquisition of Enerflex System Income Fund.26

Historical Financial PerformancePro forma un-audited results based on legacy Enerflex and legacy TESI results*in C$ thousands(unless otherwise indicated)2010 2009 2008Revenue $1,125,220 $1,554,640 $1,873,634Gross Margin 195,015 284,152 391,275Gross Margin (%) 17.3% 18.3% 20.9%Net Income after Taxes 25,419 83,840 132,435EBIT 56,919** 111,879 184,586EBITDA $96,032 $148,285 $218,625*Source: Appendix J of the Toromont Industries Ltd. Management Information Circular dated April 11, 2011.**Includes gain on sale of $18.6 million related to Toromont’s acquisition of Enerflex System Income Fund.27

Q1 2011 ResultsIncome(Unaudited)(in C$ thousands)Three Months Ended March 31,2011 2010 % ChangeRevenue $326,405 $212,413 53.7%Cost of Goods Sold 270,141 182,884 47.7Gross Margin 56,264 29,529 90.5SG&A 42,511 31,844 33.5Operating Income (Loss) 13,753 (2,315) 694.1Gain on Sale of Investment - 18,627 (100.0)EBIT 14,696 15,779 (6.9)Net Income $9,886 $10,865 (9.0)%28

Q1 2011 ResultsKey Performance Indicators(Unaudited)(in C$ thousands)Three Months Ended March 31,2011 2010Cash $28,573 $15,000Net Debt 178,107 265,005Net Debt to Equity Ratio 0.21:1 0.32:1Net Debt to EBITDA Ratio 1.74:1 2.59:129

Q1 2011 ResultsCash Flows(Unaudited)(in C$ thousands)Three Months Ended March 31,*2011 2010 % ChangeCash flows provided by (used in):Operating ActivitiesBefore Working Capital $16,811 $2,691 524.7%Working Capital (8,736) 221,179 (103.9)Capital Expenditures (6,408) (11,482) (44.2)Free Cash Flow $10,403 $(8,791) 218.3%30

Q1 2011 ResultsBusiness Segment ReviewEnded March 31,Millions of dollars exceptpercentagesCanada andNorthern U.S.2011 2010 %Southern U.S. andLatin America2011 2010 %International2011 2010 %Revenue $142.3 $76.6 85.8%Engineered Systems 93.0 32.0 190.6Service 39.2 33.9 15.6Rental 10.1 10.7 (5.6)$89.3 $73.7 21.2%80.3 65.1 23.39.0 8.5 5.8- - -$94.8 $62.1 52.7%59.4 48.4 22.732.9 13.7 140.12.5 - 100.0Operating Income(Loss)Operation Income(Loss) %29.0%27.4%GEOGRAPHICREVENUE6.8 (2.5) 372 8.2 4.1 100 (1.3) (3.9) 66.74.8 (3.2) - 9.2 5.5 - (1.4) (6.3)PRODUCT LINEOPERATING INCOMEREVENUE(LOSS)(9.5)%43.6%24.8%3.9%49.6%71.3%59.9%

Enerflex Share StructureEnerflex’s Current Issued and Outstanding Common Shares77,213,396 – Common Shares Issued and OutstandingEnerflex’s Outstanding Options2,017,430 – Outstanding Enerflex Ltd. Options32

Enerflex Investment Highlights• World leading pure-play supplier of natural gas compression andproduction and processing equipment• Strong growth platform in North American shale gas, Australian CSG toLNG and Middle East conventional gas• Early stages of industry recovery with growing order bookings and backlog• Highly diversified revenues by geography, customer and application• Strong balance sheet and attractive credit metrics• Experienced management team with a proven track recordPositioned to Deliver Strong, Stable Performance33

ConclusionWell Positioned as a Pure Play Supplier of Natural Gasand Processing Equipment34