› Investor Presentation › March 2019
Forward-looking statements Reference in this presentation, and hereafter, to the “Company” or to “SNC-Lavalin” means, as the context may require, SNC-Lavalin Group Inc. and all or some of its subsidiaries or joint arrangements, or SNC-Lavalin Group Inc. or one or more of its subsidiaries or joint arrangements. Statements made in this presentation that describe the Company’s or management’s budgets, estimates, expectations, forecasts, objectives, predictions, projections of the future or strategies may be “forward-looking statements”, which can be identified by the use of the conditional or forward-looking terminology such as “aims”, “anticipates”, “assumes”, “believes”, “cost savings”, “estimates”, “expects”, “goal”, “intends”, “may”, “plans”, “projects”, “target”, “should”, “synergies”, “vision”, “will”, or the negative thereof or other variations thereon. Forward-looking statements also include any other statements that do not refer to historical facts. Forward-looking statements also include statements relating to the following: (i) future capital expenditures, revenues, expenses, earnings, economic performance, indebtedness, financial condition, losses and future prospects; and (ii) business and management strategies and the expansion and growth of the Company’s operations. All such forward-looking statements are made pursuant to the “safe-harbour” provisions of applicable Canadian securities laws. The Company cautions that, by their nature, forward-looking statements involve risks and uncertainties, and that its actual actions and/or results could differ materially from those expressed or implied in such forward-looking statements, or could affect the extent to which a particular projection materializes. Forward-looking statements are presented for the purpose of assisting investors and others in understanding certain key elements of the Company’s current objectives, strategic priorities, expectations and plans, and in obtaining a better understanding of the Company’s business and anticipated operating environment. Readers are cautioned that such information may not be appropriate for other purposes. Forward-looking statements made in this presentation are based on a number of assumptions believed by the Company to be reasonable as at the date hereof. The assumptions are set out throughout the Company’s 2018 Management Discussion and Analysis (MD&A). The 2019 outlook also assumes that the federal charges laid against the Company and its indirect subsidiaries SNC-Lavalin International Inc. and SNC-Lavalin Construction Inc. on February 19, 2015, will not have a significant adverse impact on the Company’s business in 2019. If these assumptions are inaccurate, the Company’s actual results could differ materially from those expressed or implied in such forward-looking statements. In addition, important risk factors could cause the Company’s assumptions and estimates to be inaccurate and actual results or events to differ materially from those expressed in or implied by these forward-looking statements. These risk factors are set out in the Company’s 2018 MD&A. The 2019 outlook referred to in this presentation is forward-looking information and is based on the methodology described in the Company’s 2018 MD&A under the heading “How We Budget and Forecast Our Results” and is subject to the risks and uncertainties described in the Company’s public disclosure documents. The purpose of the 2019 outlook is to provide the reader with an indication of management’s expectations, at the date of this presentation, regarding the Company’s future financial performance and readers are cautioned that this information may not be appropriate for other purposes. Non-IFRS financial measures and additional IFRS measures The Company reports its financial results in accordance with IFRS. However, the following non-IFRS measures and additional IFRS measures are used by the Company: Adjusted net income from E&C, Adjusted diluted EPS from E&C, Adjusted net income from Capital, Adjusted diluted EPS from Capital, Adjusted consolidated diluted EPS, EBITDA, Adjusted E&C EBITDA and Segment EBIT. Additional details for these non-IFRS measures and additional measures can be found below and in SNC-Lavalin’s MD&A, which is available in the Investors section of the Company’s website at www.snclavalin.com. Non-IFRS financial measures do not have any standardized meaning under IFRS and therefore may not be comparable to similar measures presented by other issuers. Management believes that, in addition to conventional measures prepared in accordance with IFRS, these non-IFRS measures provide additional insight into the Company’s financial results and certain investors may use this information to evaluate the Company’s performance from period to period. However, these non-IFRS financial measures have limitations and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. 2
Why invest in SNC-Lavalin › Continued growth for value-added global engineering services › The world will continue to evolve in ways that no one can foresee, but engineers will remain at the very heart of that change by designing and building projects to meet the great challenges of tomorrow, whether they be climatic, social, or resource-based › Leadership positions in highly attractive end markets, including Canadian PPP, Rail & Transit, Nuclear and O&G sustaining capital › Diversified business model with ability to provide comprehensive end-to-end project solutions – including financing & asset management, consulting & advisory, digital & artificial intelligence, design & engineering, procurement, construction & project management, operations & maintenance and sustaining capital › Strong diversified backlog with tier-1 clients › E&C business undervalued vs peers › Strong track record of dividend › High caliber international leadership supported by talented and dedicated team 3
A global fully integrated professional services & project management company leader Founded in 1911 SNC-Lavalin is a global fully integrated professional services and project management company, and a major player in the ownership of Employees infrastructure 50,000+ From offices around the world, SNC-Lavalin ’s employees are Revenue proud to build what matters, ~$10B providing comprehensive end-to-end project solutions to clients in six industry sectors Listed on TSX “SNC” Since 1986 Investment Grade Credit Rating 1 BBB- & BBB 1 Per S&P and DBRS. 4
Operating in 4 regions across the world Europe 12,000 Americas 16,000 Middle Asia East Pacific & Africa 4,000 20,000 Breadth of geographic exposure 2018 Revenues 20% Americas Canada 29% Middle East & Africa 7% 49% $10.1B USA 17% Latin America 3% Asia Pacific Europe 24% 5
An improving diversified business model 2017 Revenues 2018 Revenues 1 Capital Thermal Power Capital Thermal Power Mining & Metallurgy Mining & Metallurgy Oil & Gas Oil & Gas 2% Clean Power 4% 3% Clean Power 5% 1% 4% 4% 5% 2 Nuclear 25% Nuclear 9% 37% 8% $9.3B $10.1B 18% 22% EDPM 32% 21% EDPM Infrastructure Infrastructure 26% 74% EPC Fixed- Reimbursable & price Contracts Engineering Service Contracts 1 Includes only 6 months of Atkins revenues, as it was acquired on July 3, 2017. 6 2 ~35% of Nuclear revenues relate to decontamination, decommissioning and waste management projects.
Resilient business model with a well-balanced backlog Backlog December 31, 2018 Capital Mining & Metallurgy Oil & Gas Clean Power 1% 3% 10% Nuclear 6% 8% 73% Reimbursable & Engineering Service $14.9B Contracts EDPM 16% 27% EPC Fixed- price Contracts 56% Infrastructure Effective January 1, 2018, the Company’s definition of backlog has been changed and now corresponds to “Remaining performance obligations” (“RPO”), which is based on IFRS 15, Revenue from Contracts with Customers (“IFRS 15”), without restatement of the prior periods. 7
Recommend
More recommend
