Overview August 2018 Our Guiding Principles We value our people - - PowerPoint PPT Presentation
Overview August 2018 Our Guiding Principles We value our people and our reputation. 2 We are locally dedicated with international scale. We are future-focused and challenge the status quo. We foster collaboration in everything we do.
August 2018
We value our people and our reputation. We are locally dedicated with international scale. We are future-focused and challenge the status quo. We foster collaboration in everything we do. We have an empowering culture and hold ourselves accountable.
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— A global professional service firm headquartered in Canada, specializing in providing technical expertise and strategic advice to clients in the Transport & Infrastructure, Property & Buildings, Environment, Industry & Energy sectors — Approximately 43,600 employees, active in 40 countries — Generating TTM $CAD$5.8 billion in net revenues and TTM$CAD$603.4 million in adjusted EBITDA for the last 12 months ended June 30, 2018 — A pure play consulting and design firm, no construction risk — Led by an experienced board & management team and supported by long term shareholders
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Asia 3,210
As at June 30, 2018
Australia New Zealand 4,890 Middle East India 2,160 Nordics 5,530 UK Ireland 8,000 Continental Europe 730 South Africa 580 US 7,370 Central & South America 2,930 Canada 8,200
By operating segment
EMEIA
AMERICAS 6
Percentage of net revenues – Based on Fiscal 2017 results *Includes Industry, Resources and Power & Energy
APAC
CANADA
By market segment
TRANSPORT & INFRASTRUCTURE
PROPERTY & BUILDINGS
ENVIRONMENT
INDUSTRY & ENERGY*
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PLANNING DESIGN
CONSTRUCTION SERVICES (Construction/Project Management)
EQUIPMENT SUPPLIERS MATERIALS AND ENGINEERED PRODUCTS
WE HAVE A HORIZONTAL FEE-FOR-SERVICE MODEL
ARCHITECTS CONTRACTORS AND DEVELOPERS
OPERATION AND MAINTENANCE
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HUGO BLASUTTA Canada GREGORY KELLY Americas MARK NAYSMITH UK ALEXANDRE L’HEUREUX
President and CEO
PAUL DOLLIN
Chief Operating Officer
BRUNO ROY
Chief Financial Officer
ROBERT OUELLETTE
Chief Corporate Services Officer
Steeve Robitaille
Chief Legal Officer and Executive Vice President, Mergers and Acquisitions
ISABELLE ADJAHI
Senior VP, IR & Communications
MAGNUS MAYER Nordics GUY TEMPLETON ANZ DAVE MCALISTER
Transport and Infrastructure
TOM SMITH
Property and Buildings
GREG KANE Middle East
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1,020.1 1,677.2 2,349.9 4,486.8 4,895.1 5,356.6 5,775.6
2012 2013 2014 2015 2016 2017 TTM Q2 18
NET REVENUES*
* In millions CAD – Non-IFRS measures
125.4 180.6 253.5 441.5 499.0 555.2 603.4 12.3% 10.8% 10.8% 9.8% 10.2% 10.4% 11.0%
2012 2013 2014 2015 2016 2017 TTM Q2 18
ADUSTED EBITDA* AND ADJUSTED EBITDA MARGIN*
PB Acquisition WSP Acquisition
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Solid Q2 18 financial results, with organic growth in net revenues spanning across all reportable segments and strong trailing twelve- month free cash flow Once we close Louis Berger transaction, all of our 2015- 2018 Strategic Plan
met Reiterating our 2018
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Net revenues were $1.5 billion, up 17.1% Organic growth in net revenues was strong at 8.7% Adjusted EBITDA at $169.5 million Adjusted EBITDA at 11% Backlog, stood at $6.7 billion, representing approximately 10.3 months of revenues Backlog organic growth amounted to 7.8%
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RATIONALE
team
sectors and services that WSP had targeted for growth (critical mass in water and environment)
Services Business
Continental Europe, specifically in countries we had previously intended for growth, notably, France and Spain.
normalized EBITDA TRANSACTION
adjusted net earnings per share before amortization of intangibles, without considering any synergies
recurring cost synergies
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Employees Once Louis Berger is closed
Net Revenues (CAD)
Adjusted EBITDA Margin (%) 2018 Objective
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design firm without construction exposure
Transport & Infrastructure and Property & Buildings
geographies with niche growth in emerging markets Where we compete Four pillars:
(M&A, organic)
How we compete
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Exposure to various economies and risk mitigation Opportunity to better service local and international clients Access to pool of talent Knowledge sharing Leverage best business practices Communities of practice Cross-selling opportunities Opportunity to develop professionally and international careers Lower-cost design centres
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How we compete: our 2015-2018 Strategic Plan
CLIETS CLIENTS
1st
CHOICE FOR ALL CLIENTS, LARGE OR SMALL
10%
OF OUR REVENUES FROM GLOBAL CLIENTS
OPERATIONAL EXCELLENCE
11%
EBITDA MARGIN
> 100%
CASH FLOW/NET INCOME
< 85 DAYS
DAYS SALES OUTSTANDING (DSO) CONSOLIDATE AND EXPAND OUR EXPERTISE IN OUR CORE SECTORS (T&I, P&B, ENV.) OPPORTUNISTIC DEVELOPMENT IN SELECTED GEOGRAPHIES IN OTHER SECTORS
45,000
EMPLOYEES
EMPLOYEES GROWTH
$6.0B
NET REVENUES
$ 1.3B
THROUGH ACQUISITIONS
5%
ANNUAL ORGANIC GROWTH
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FROM LOCAL TO NATIONAL, TO INTERNATIONAL
More than 100 acquisitions Major acquisitions
WSP 9,000 people (2012) Focus 1,800 people (2014) Parsons Brinckerhoff 13,500 people (2014) MMM 2,000 people (2015) Mouchel 2,000 people (2016) Opus 3,000 people (2017) Louis Berger* 5,000 people (2018)
2006-2017 TODAY 2015-2018 A TRULY MULTI-DISCIPLINARY FIRM
43,600 employees (Approx. 48,000 with Louis Berger) TTM net revenues: $5.8 B (Louis Berger 2017 revenue: US$480M) TTM adjusted EBITDA: $603.4 M (Louis Berger 2017 normalized EBITDA: US$45M)
A STRATEGY OF CONTINUITY TO EXPAND OUR STRATEGIC SERVICES OFFERING TO CLIENTS
Our objectives
45,000 employees $6.0B in net revenues ($1.3B through acquisitions) 5% annual organic growth 11% adjusted EBITDA margin
Continue to consolidate the industry to create the best professional services firm in each of our geography and sector
*Pending
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Size of project is increasing Financial strength is an asset Geographic and market diversification provide resilience Ability to mobilize depth of workforce
SCALE CLIETS EXPERTISE INTEGRATED SERVICES
Acquire best in class expertise Benefit of knowledge sharing, collaboration and cross-selling Access low cost production centers and improve competitiveness Cover the project lifecycle with full suite
Offer a one-stop shop Develop a multidisciplinary
— Performing and accretive companies — Complementary activities and services — Successful and respected in their fields — Strong portfolio of projects and client base — Share our vision and corporate culture
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TRANSPORTATION BUILDINGS INFRASTRUCTURE ENVIRONMENT
SUBSCALE IN CERTAIN SECTORS EXPANDING GEOGRAPHICALLY EXPANDING GEOGRAPHICALLY ADDING SPECIFIC EXPERTISE SUBSCALE IN CERTAIN SECTORS
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(in $M,CAD)
Q2 2018
Financial liabilities $1,280.1 Less: Cash ($153.4) Net debt $1,126.7 TTM adjustedEBITDA* $603.4 Net debt / TTM adjustedEBITDA* (adjusted for 12-month net revenues for all acquisitions) 1.8x
* In millions CAD – Non-IFRS measures
25 * Non-IFRS measure.
1) Target excluding any debt required to finance acquisitions 2) Due mainly to personnel and real estate integration costs related to the acquisition of Opus completed in Q4 2017, to real estate integration costs pertaining to the Mouchel acquisition completed in Q4 2016 and IT outsourcing program costs.
Net revenues* Between $5,700 million and $5,900 million Adjusted EBITDA* Between $610 million and $660 million Seasonality and adjustedEBITDA* fluctuations Q1: 18% to 21% Q2: 25% to 28% Q3: 26% to 29% Q4: 24% to 27% Taxrate 23% to 25% DSO* 80 to 85 days Amortization of intangibleassets related toacquisitions Between $60 and $70 million Capitalexpenditures Between $115 and $125 million Net debt to adjustedEBITDA* 1.5x to 2.0x1) Acquisition and reorganization costs* Between $40 million and $50 million 2)
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AMERICAS
Strong US Transportation and Infrastructure spending Integration of POCH and ConCol to deliver synergies and improvement in operating margins Negative organic growth in net revenues in Q4 2018 due to the substantial FEMA net revenues recognized in Q4 2017
MIDDLE EAST
Difficult economic conditions Negative organic growth
AUSTRALIA/NEW ZEALAND
Solid transportation market Mid to high single digits
CANADA
Solid backlog and good prospects Low to mid single digit
NORDICS
Higher utilization rates Mid to high single digits
ASIA
Continued slowdown in buildings market Negative organic growth
UK
Large public sector work Low single digits
SOUTH AFRICA
Difficult economic conditions Negative organic growth