Target Hospitality : November Presentation

Investor Presentation

November 2023

Disclaimer

Cautionary Statement Regarding Forward-Looking Statements

This presentation contains statements reflecting assumptions, expectations, projections, intentions or beliefs about future events that are intended as "forward-looking statements." You can identify these statements by the fact that they do not relate strictly to historical or current facts. Management cautions that any or all of Target Hospitality's forward-looking statements may turn out to be wrong. Please read Target Hospitality's annual, quarterly and current reports filed with the Securities and Exchange Commission under the Securities Exchange Act of 1934, as amended, including its 2022 Form 10-K filed on March 10, 2023, first quarter 2023 Form 10-Q filed on May 9, 2023, second quarter 2023 Form 10-Q filed on August 9, 2023, and third quarter 2023 Form 10-Q filed on November 8, 2023 for additional information about the risks, uncertainties and other factors affecting these forward-looking statements and Target Hospitality generally. Target Hospitality's actual future results may vary materially from those expressed or implied in any forward-looking statements. All of Target Hospitality's forward-looking statements, whether written or oral, are expressly qualified by these cautionary statements and any other cautionary statements that may accompany such forward-looking statements. In addition, Target Hospitality disclaims any obligation to update any forward-looking statements to reflect events or circumstances after the date hereof.

Non-GAAP Financial Measures

This presentation contains historical non-GAAP financial measures including EBITDA, Adjusted EBITDA, Adjusted Gross Profit, Adjusted Gross Profit margin, and Discretionary Cash Flow. Reconciliations of these historical measures to the most directly comparable GAAP financial measures are contained herein. This presentation also contains forward-lookingnon-GAAP financial measure Adjusted EBITDA. Reconciliations of this forward-looking measure to its most directly comparable GAAP financial measure is unavailable to Target Hospitality without unreasonable effort. We cannot provide reconciliations of forward-looking Adjusted EBITDA to GAAP financial measures because certain items required for such reconciliations are outside of our control and/or cannot be reasonably predicted, such as the provision for income taxes. Preparation of such reconciliations would require a forward-looking balance sheet, statement of income and statement of cash flow, prepared in accordance with GAAP, and such forward-looking financial statements are unavailable to us without unreasonable effort. Although we provide a range of Adjusted EBITDA that we believe will be achieved, we cannot accurately predict all the components of the Adjusted EBITDA calculation. To the extent required, statements disclosing the definitions, utility and purposes of these measures are set forth in our earnings press release for the year ended 2022 and third quarter 2023, which is available on our website free of charge at www.TargetHospitality.com.

Investor Presentation | 2

Target Hospitality (NASDAQ: TH)

North America's Largest Provider of Comprehensive Hospitality Solutions

Key Differentiating Attributes

• TH leverages a premier network and first-class customer base, which provides increased revenue visibility through minimum revenue commitment contracts and customer exclusivity provisions
• Servicing a diversified customer base including Government and non- profits in support of humanitarian aid efforts
• Utilizing distinct core competencies to provide a comprehensive suite of hospitality solutions
• Consistently enhancing value through a balanced portfolio of service offerings

North America's Largest Network

Premier Customers

Diversified Service

Offerings

Unrivaled Market

Leadership

LTM Total Revenue(1)

Government	HFS and
Other(3) 27%
73%

$590

Strategically located network creates scale and flexibility that continues to drive profitability

Long-standing customer relationships; ~4 yrs. wtd. avg. contract duration and +90% contract renewal rate drives visibility

Distinct core competencies provide unique opportunities to drive value enhancing diversification

Trusted partner and gold standard provider of critical hospitality solutions for U.S. Government's humanitarian missions

Total Pro-Forma Available

Liquidity (2)

$280

Investor Presentation | 3

1. $ in millions, represents total consolidated revenue for the twelve months ended September 30, 2023
2. Total pro-forma available liquidity as of September 30, 2023, inclusive of the $50 million increase to the Company's credit facility announced on October 12, 2023, comprised of cash and cash equivalents as of 9.30.23 of $105 million and $175 million of available borrowings on the Company's credit facility.
   3) Includes HFS - South, HFS - Midwest and All Other segments

Differentiated & Compelling Investment Opportunity

Leading provider of vertically integrated modular accommodations

Unique value enhancing growth opportunities across a large addressable market

Proven track record of powerful returns

Substantial revenue visibility with high contract renewal rates

Robust balance sheet provides optionality in pursuing attractive growth opportunities

29 Communities with

16,320 Beds Available(1)

~$20bn

Market Opportunity(2)

~$540 million of

Cumulative DCF(3) since 2020

+90% Renewal Rate

since 2015

0.3x Net Leverage(1)

1. As of September 30, 2023
2. Estimated government services end-market annual contract award value based on management's estimates and third-party market research and analysis
3. Discretionary Cash Flow ("DCF") defined as Operating Cash Flow less maintenance capital expenditures. Cumulative DCF from 2020 - September 30, 2023. DCF is a non-GAAP financial measure; please see appendix for reconciliation to GAAP measures

Investor Presentation | 4

Holistic Hospitality Solutions and Services

Customized and Purpose-Built Solutions

Premium Hospitality Services and Offerings

• Site Selection & Civil Surveying
• Community Configuration & Layout
• Engineering & Land Preparation

• Real Estate Acquisition
• Commercial Construction & Fabrication
• Modular Asset Integration
• Full Utility Capabilities & Integrations
• Cellular Connectivity & Installation
• Integrated Community Amenities

Design

Build

Develop

Operate

Service

Manage

• Holistic Remote Workforce Solutions
• Gated Access & 24/7 Onsite Security
• Comprehensive Maintenance Services
• Multiple 24/7 Culinary Solutions
• Premier Health & Recreational Facilities
• Transportation & Logistic Services
• Complete Facilities Management
• Technology Infrastructure & Services
• Waste & Janitorial Solutions

Investor Presentation | 5

Diversified Value-Enhancing Business Model

Strategically Focused on Enhancing Value through a Balanced Portfolio of Service Offerings

Premier Network

Network size and scale provide efficient operating structure and promote meaningful strategic advantages in servicing a diversified customer base

Distinct Core Competencies

Best in class customers find increasing value in Target's distinctive set of core competencies which provide the basis for comprehensive hospitality solutions including:

• Food Management - Workforce Accommodations - Logistics
• Lodging Infrastructure - Facilities Maintenance - Premium Catering

Unique Capabilities

Target's premium service offerings provide the basis for expanding its commercial reach beyond its core accommodations platform while unlocking value within its existing core competencies. Target's suite of comprehensive hospitality service offerings and unique capabilities translate across a variety of end markets, creating multiple growth vectors to further enhance value.

1. Total reported consolidated revenue for the years ended December 31, 2020, 2021 and 2022
2. Represents total reported consolidated revenue for the twelve months ended September 30, 2023
3. Includes HFS - South, and All Other segments

Creating Value with Existing Core Competencies

Utilizing existing capabilities to identify and pursue high growth opportunities, with limited infrastructure capital, generating industry leading returns on invested capital

Diversified customer base creates unique opportunities to accelerate value creation across multiple growth platforms

Diversification Supports Meaningful Revenue

Growth

	$590
	$600
	$500
millions	$400
$300
$ in
$225
	$200
	$100
	$-

2020 (1)	2021 (1)	2022 (1)	Q3 2023 LTM (2)
	HFS & Other (3)	Government	Investor Presentation | 6

Proven Track Record of Business Transformation

	2014	2019	2022
Revenue	$139 million	$321 million	$502 million

Adjusted EBITDA(1)

$55 million

$159 million

$265 million

Network Scale

10 Communities

20 Communities

27 Communities

Available Beds		5,185		12,004		16,830
				6% 6%	72%
	56%	44%		67%	Government	28%
Business Mix	HFS	HFS	21%	HFS		HFS and
	Midwest	South	Government	South		Other

100% Energy End Market Focused

80% Energy End Market Focused

~70% Government Services End Market

(1) Adjusted EBITDA is a non-GAAP financial measure; please see appendix for reconciliation to GAAP measures

Analyst Day Presentation | 7

Contract Structure Drives Long-Term Revenue Visibility

Multiyear Contracts Provide Greater Visibility on Long-Term Revenue and Cash Flow

Attractive Exposure to Multiple End Markets Supports Diversified Revenue

Weighted Average Contract Length ~4 Years

Government Services

Hospitality and Facilities Services

• Government services contracts support two purpose built and highly customized communities in Texas
• • Originating in 2014, the South Texas Family Residential Center supports a 2,400 bed community
  • Beginning in 2021, the Pecos Childrens Center supports a 6,400 bed community
• Providing critical hospitality solutions for displaced persons supporting the U.S. government's essential humanitarian aid efforts
• Contract structure centers on minimum annual revenue commitments, supporting consistent economic returns

• 19 all-inclusivefull-turnkey communities supports blue chip customers dynamic labor allocation requirements
• Long-standingrelationships with some of the world's largest companies, providing enhanced revenue visibility via minimum revenue commitments
• Over 90% customer renewal rate since 2015
• Contract structure, including exclusivity, provides foundation for increasing effective market share as commercial activity and demand increase

Complementary Business Mix Underpinned by Strong Core Offerings Creates Multiple Avenues to

Accelerate Growth in Well Established Markets

Investor Presentation | 8

Creating Positive Social Change

Caring for Vulnerable Populations Through Critical Humanitarian Solutions

Caring

Holistic

Humanitarian Solutions

Children and family units come to the United States to escape desperate situations, including poverty, violence and exploitation

Target's humanitarian solutions create a nurturing environment to support this critical emotional and social transition

Target is committed to providing safe, clean and compassionate hospitality solutions for these desperate situations

Creating holistic full-service communities with a tailored focus on supporting these vulnerable populations

As the largest provider of permanent hospitality solutions supporting the United States government and their humanitarian aid efforts

Target's best-in-class communities include interactive educational services, premier recreational facilities and comprehensive medical treatment capabilities

Investor Presentation | 9

Expanded Humanitarian Community

Thoughtfully Designed and Purpose Built for a Vibrant and Welcoming Environment