Overview March 2018 Our Guiding Principles We value our people - - PowerPoint PPT Presentation
Overview March 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
March 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 — More than 42,000 employees, active in 40 countries — Generating more than $CAD5.3 billion in net revenues and $CAD555.2 million in adjusted EBITDA in 2017 — 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
3,400
AUSTRALIA NEW ZEALAND
4,600
MIDDLE EAST INDIA
2,220
NORDICS
5,140
UK IRELAND
7,800
CONTINENTAL EUROPE
720
SOUTH AFRICA
620
US
7,000
CENTRAL & SOUTH AMERICA
2,500
CANADA
8,000
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
Our expertise is widely recognized
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Top international design firm Top international design firm in transport Top international design firm in buildings
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2017 ENR Rankings
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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
FANNIE JACQUES
VP, HR Global
MAGNUS MAYER Nordics GUY TEMPLETON ANZ DAVE MCALISTER
Transport and Infrastructure
TOM SMITH
Property and Buildings
DAVID TSUI Asia
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1,020.1 1,677.2 2,349.9 4,486.8 4,895.1 5,356.6
2012 2013 2014 2015 2016 2017
NET REVENUES*
* In millions CAD – Non-IFRS measures
125.4 180.6 253.5 441.5 499.0 555.2 12.3% 10.8% 10.8% 9.8% 10.2% 10.4%
2012 2013 2014 2015 2016 2017
ADUSTED EBITDA* AND ADJUSTED EBITDA MARGIN*
PB Acquisition WSP Acquisition
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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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128.0 206.6 320.1 395.3 469.5 529.0 1,020.1 1,677.2 2,349.9 4,486.8 4,895.1 5,356.6
26.0 42.2 68.6 78.6 83.5 89.7 108.6 180.6 253.5 441.5 499.0 555.2 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Net revenues EBITDA
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More than 100 well-integrated acquisitions since the 2006 IPO
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FROM LOCAL TO NATIONAL, TO INTERNATIONAL
More than 90 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)
2006-2017 TODAY 2015-2018 A TRULY MULTI-DISCIPLINARY FIRM
42,000 employees TTM net revenues $5.3 B TTM adjusted EBITDA $552.5 M ENR Global Ranking
Top International Design Firms in Transportation - #1 Top International Design Firms - # 1
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
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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
(in $M,CAD)
Q4 2017
Financial liabilities $1,229.9 Less: Cash ($185.1) Net debt $1,044.8 TTM adjustedEBITDA* $555.2 Net debt / TTM adjustedEBITDA* (adjusted for 12-month net revenues for all acquisitions) 1.8x
* In millions CAD – Non-IFRS measures
Adequate flexibility to pursue our acquisition growth strategy
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* Non-IFRS measure.
1) Due mainly to personnel and real estate integration costs related to the acquisition of Opus completed in Q4 2017, and to real estate integration costs pertaining to the Mouchel acquisition completed in Q4 2016
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 2.0x Acquisition and reorganization costs* Between $40 million and $50 million 1)
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AMERICAS
Strong US Transportation and Infrastructure spending Integration of POCH and ConCol expected to deliver synergies and improvement in operating margins
MIDDLE EAST
Difficult economic conditions
AUSTRALIA
Transportation is the fastest growing segment of all our businesses worldwide
CANADA
Solid backlog and good prospects
NORDICS
Significant increase in headcount should translate into higher utilization rates
ASIA
Continued slowdown in buildings market
UK
Large public sector work Continuing concerns
SOUTH AFRICA
Difficult economic conditions