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. We have an empowering culture and hold ourselves accountable.
We are Our Brand 3
WSP is… — 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 4 — 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
A global player of approx. 43,600 professionals 8,200 Canada 5,530 Nordics 730 3,210 Continental 8,000 Asia Europe UK Ireland 5 7,370 US 4,890 Australia 2,160 2,930 New Zealand Middle East Central & India South America 580 South Africa As at June 30, 2018
A global player with attractive geographic and business mix 11% 14% 10% 18% ENVIRONMENT APAC INDUSTRY & ENERGY* CANADA 6 By operating By market segment segment 50% 37% 31% 29% TRANSPORT & EMEIA PROPERTY & INFRASTRUCTURE AMERICAS BUILDINGS Percentage of net revenues – Based on Fiscal 2017 results *Includes Industry, Resources and Power & Energy
Our positioning in the infrastructure and construction value chain MATERIALS AND EQUIPMENT ENGINEERED SUPPLIERS PRODUCTS WE HAVE A HORIZONTAL FEE-FOR-SERVICE MODEL 7 CONSTRUCTION SERVICES PLANNING DESIGN (Construction/Project Management) CONTRACTORS AND OPERATION AND ARCHITECTS DEVELOPERS MAINTENANCE
A young and experienced leadership team ROBERT BRUNO ROY Steeve Robitaille ALEXANDRE PAUL DOLLIN ISABELLE ADJAHI OUELLETTE L’HEUREUX Chief Operating Officer Chief Financial Officer Chief Legal Officer Senior VP, and Executive Vice Chief Corporate Services IR & Communications President and CEO President, Mergers Officer and Acquisitions 8 GREGORY GREG HUGO MAGNUS KELLY KANE BLASUTTA MAYER Americas Middle East Canada Nordics GUY TOM SMITH MARK DAVE TEMPLETON Property and NAYSMITH MCALISTER Buildings ANZ UK Transport and Infrastructure
A proven and sustained performance 5,775.6 5,356.6 4,895.1 4,486.8 603.4 555.2 9 2,349.9 499.0 WSP 441.5 Acquisition 12.3% 1,677.2 253.5 PB 1,020.1 180.6 9.8% Acquisition 10.4% 10.8% 11.0% 10.8% 10.2% 125.4 2012 2013 2014 2015 2016 2017 TTM Q2 18 2012 2013 2014 2015 2016 2017 TTM Q2 18 NET REVENUES* ADUSTED EBITDA* AND ADJUSTED EBITDA MARGIN* * In millions CAD – Non-IFRS measures
Q2 2018 Highlights
Q2 2018 Highlights Solid Q2 18 financial results, with organic growth in net revenues spanning across all reportable segments and strong trailing twelve- 11 month free cash flow Once we close Louis Berger transaction, all of our 2015- 2018 Strategic Plan objectives will have been met Reiterating our 2018 outlook
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 12 Adjusted EBITDA at 11% Backlog, stood at $6.7 billion, representing approximately 10.3 months of revenues Backlog organic growth amounted to 7.8%
Louis Berger RATIONALE Strengthen our presence in the US • Adds depth to our transportation • team • Strengthens our expertise in sectors and services that WSP had targeted for growth (critical mass in water and environment) Provides a gateway to the Federal • Services Business Increases our presence in • 13 Continental Europe, specifically in countries we had previously intended for growth, notably, France and Spain. US$480M revenues and US$45M • normalized EBITDA TRANSACTION • $US400M purchase price Mid-single digit to accretive • adjusted net earnings per share before amortization of intangibles, without considering any synergies Approximately US$15 million • recurring cost synergies
Strategic Plan Update 2018 Objective Once Louis Berger is closed Employees 48,000 45,000 Net Revenues (CAD) 14 > 6.0B 6.0B Adjusted EBITDA Margin (%) ± 11.0 11.0
Our strategy
Our strategy Where we compete How we compete • Pure play consulting & Four pillars: design firm without construction exposure • Growth (M&A, organic) 16 • Leading presence in Transport & Infrastructure • People & Expertise and Property & Buildings • Operational Excellence • Focus on mature geographies with niche • Clients growth in emerging markets
Where we compete: Advantages of diversification Exposure to various economies and risk mitigation Opportunity to better service local and international clients 17 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
How we compete: our 2015-2018 Strategic Plan CLIETS OPERATIONAL GROWTH CLIENTS EMPLOYEES EXCELLENCE CONSOLIDATE AND EXPAND $6.0B 11% 1 st OUR EXPERTISE IN OUR CORE 18 SECTORS (T&I, P&B, ENV.) CHOICE FOR ALL CLIENTS, NET REVENUES EBITDA MARGIN LARGE OR SMALL OPPORTUNISTIC DEVELOPMENT IN SELECTED $ 1.3B > 100% GEOGRAPHIES 10% IN OTHER SECTORS THROUGH ACQUISITIONS CASH FLOW/NET INCOME OF OUR REVENUES < 85 DAYS F ROM GLOBAL 45,000 5% CLIENTS EMPLOYEES ANNUAL ORGANIC GROWTH DAYS SALES OUTSTANDING (DSO)
Growth: we have a well-defined road map 2006-2017 TODAY 2015-2018 FROM LOCAL TO A STRATEGY OF A TRULY NATIONAL, CONTINUITY TO EXPAND MULTI-DISCIPLINARY 19 TO INTERNATIONAL OUR STRATEGIC FIRM SERVICES OFFERING More than 100 acquisitions TO CLIENTS 43,600 employees Major acquisitions (Approx. 48,000 with Louis Berger) WSP 9,000 people (2012) Our objectives TTM net revenues: $5.8 B Focus 1,800 people (2014) (Louis Berger 2017 revenue: 45,000 employees US$480M) Parsons Brinckerhoff 13,500 people (2014) $6.0B in net revenues ($1.3B through acquisitions) MMM 2,000 people (2015) TTM adjusted EBITDA: $603.4 M 5% annual organic growth (Louis Berger 2017 normalized Mouchel 2,000 people (2016) 11% adjusted EBITDA margin EBITDA: US$45M) Opus 3,000 people (2017) Louis Berger* 5,000 people (2018) Continue to consolidate the industry to create the best professional services firm in each of our geography and sector *Pending
Growth: the benefits of consolidation CLIETS INTEGRATED SCALE EXPERTISE SERVICES Cover the project Size of project is Acquire best in class lifecycle with full increasing expertise suite of services Financial strength Benefit of 20 is an asset knowledge sharing, collaboration and Offer a one-stop Geographic and cross-selling shop market diversification Access low cost Develop a provide resilience production centers multidisciplinary and improve offering Ability to mobilize competitiveness depth of workforce
Growth: our recipe for successful combinations — 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 21
Growth: Acquisitions will be key to our continued success EXPANDING GEOGRAPHICALLY ADDING SPECIFIC EXPERTISE SUBSCALE IN CERTAIN SECTORS 22 EXPANDING SUBSCALE GEOGRAPHICALLY IN CERTAIN SECTORS TRANSPORTATION BUILDINGS INFRASTRUCTURE ENVIRONMENT
We have the resources to grow Q2 2018 (in $M,CAD) Financial liabilities $1,280.1 Less: Cash ($153.4) 23 Net debt $1,126.7 TTM adjustedEBITDA* $603.4 Net debt / TTM adjustedEBITDA* (adjusted for 12-month net revenues for 1.8x all acquisitions) * In millions CAD – Non-IFRS measures
2018 Outlook
2018 Outlook Reiterated Net revenues* Between $5,700 million and $5,900 million Adjusted EBITDA* Between $610 million and $660 million Q1: 18% to 21% Seasonality and adjustedEBITDA* Q2: 25% to 28% fluctuations Q3: 26% to 29% Q4: 24% to 27% 25 Taxrate 23% to 25% DSO* 80 to 85 days Amortization of intangibleassets related Between $60 and $70 million toacquisitions Capitalexpenditures Between $115 and $125 million Net debt to adjustedEBITDA* 1.5x to 2.0x 1) Acquisition and reorganization costs* Between $40 million and $50 million 2) * 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.
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