WSP AT A GLANCE Pierre Shoiry, CEO

Transcription

1 WSP AT A GLANCE Pierre Shoiry, CEO Raymond James 11 th Annual North American Equities Conference September 22, 2015 George Washington Bridge New York, NY

2 2 WE ARE A leading global professional consulting firm, with revenues from professional services (no construction risk) A powerful global brand ranked amongst the best by ENR, with technical leadership in Transportation, Civil Infrastructure and Buildings One of the fastest growing firms in our industry The engineer behind award-winning projects Heathrow Terminal 2B - London, UK

3 A WELL-DEFINED ROAD MAP From local to national, to international More than 80 acquisitions ranging from small to mature firms around the globe Major acquisitions WSP Group - 9,000 people (2012) Focus 1,800 people (2014) Parsons Brinckerhoff 13,500 people (2014) MMM - 2,000 people (2015) A true multi-disciplinary firm 34,000 employees Guidance towards $4.1-$4.6 B in net revenues and $390-$430 M in adjusted EBITDA ENR global ranking Top International PM/CM firm - # 1 Top pure play firm - # 2 Top International Design Firms - # 9 Remain one of the Top 3 pure play consultancies to the built and natural environment in the world Our objectives 45,000 employees $6.0 B in net revenues, including $1.3 B through acquisitions 5% annual organic growth

4 4 WE HAVE BUILT A DIVERSIFIED GLOBAL FIRM PRO FORMA 2014 COMBINED NET REVENUES: $4.0B 8,500 CANADA 20% NET REVENUES 3,410 EMEIA 39% NET REVENUES CANADA NORDICS 3,720 5,000 UK 715 CONTINENTAL EUROPE ASIA APAC 15% NET REVENUES 6,450 US AMERICAS 26% NET REVENUES 1,980 AUSTRALIA NEW ZEALAND 1,000 1,975 1,250 CENTRAL & SOUTH AMERICA SOUTH AFRICA MIDDLE EAST INDIA 85% from industrialized countries and 15% from emerging countries (Colombia, Middle East, Africa and Asia)

5 THE MAJORITY OF OUR REVENUES ARE FROM NON RESOURCE-BASED SECTORS 5 Infrastructure (Transportation/ Municipal Infra) 41% Buildings 32% Environment 7% Industrial/Energy (incl. approx. 5% from oil and gas and approx. 5% from mining) 20% London Bridge Station London, UK Based on pro forma 2014 combined net revenues

6 6 A LEADING FIRM, WITH WORLD-CLASS EXPERTISE Top International PM/CM firm # 1 Top pure play firm # 2 Top International Design Firms # 9 Transportation # 2 Buildings # 4 Power # 4 PURE-PLAY ENGINEERING ENVIRONMENT AND PLANNING ENGINEERING AND CONSTRUCTION Source: ENR Top 225 International Design Firms August 2015/ ENR Top 225 International Contractors August 2015

7 OUR POSITIVE OUTLOOK IS SUPPORTED BY FAVORABLE LONG-TERM DRIVERS 7 PROPERTY/ BUILDINGS Economic growth Population growth Social infrastructure Commercial development INFRASTRUCTURE Urbanization Mobility Aging assets Impacts of climate change as opportunities within the water market INDUSTRIAL & ENERGY Natural resources Power demand Asset productivity Technology Industry growth ENVIRONMENT Climate change Sustainability Permitting Social acceptability Corporate governance $11.8 billion 2014 global revenues* $13.3 billion 2014 global revenues* $34.1 billion 2014 global revenues* $8.1 billion 2014 global revenues* *Source: ENR Top 225 International Design Firms August 2015/ ENR Top 200 Environmental Firms August 2015

8 8 A PROVEN AND SUSTAINED PERFORMANCE NET REVENUES 4,350** ADJUSTED EBITDA 410** SOLID BALANCE SHEET (NET DEBT/EBITDA) CAGR +62% 2,349.9* CAGR +48% 253.5* 1, ,6 1, ,4 1,5 2,0 1,8 1, E E H1 15 * Based on reported financial results, which include only 2 months of Parsons Brinckerhoff ** Mid-point of 2015 guidance provided by the company

9 A SUCCESSFUL TRACK RECORD $14.35 per share in distribution/dividends since IPO 445% TSR since IPO 20.7% annualized return from IPO to today 410* 4,350* 9 Today $ IPO $ , ,6 1, , E Net revenues ($M) EBITDA ($M) # # of acquisitions Trading price *Mid-point of 2015 guidance provided by the company

10 AN ATTRACTIVE COMPANY WITH SOLID FUNDAMENTALS 10 Solid acquisition and organic growth opportunities Strong management team Low gearing culture Industry leading EBITDA margins Ample opportunities to cross sell services Low capex requirements Recurrent revenue and strong cash flow generation Binh Bridge Hai Phong, Vietnam

11 LOOKING AHEAD STRATEGIC PLAN

12 STRENGTH & AGILITY FOR OUR FUTURE 12 EMPLOYEES CLIENTS OPERATIONAL EXCELLENCE GROWTH > 11% EBITDA MARGIN $1.3B THROUGH ACQUISITIONS 45,000 EMPLOYEES 10% of our REVENUES from global clients > 1 CASH FLOW / NET INCOME 5% ANNUAL ORGANIC GROWTH < 85 DAYS DSO $6.0B NET REVENUES ALWAYS BE THE FIRST CHOICE FOR CLIENTS, PARTNERS AND EMPLOYEES

13 WE WILL CONTINUE TO STRENGTHEN OUR TECHNICAL EXPERTISE 13 We want to consolidate and expand our core sectors in all of our regions CORE SECTORS We want to be opportunistic in our other sectors in selected geographies TRANSPORTATION BUILDINGS INFRASTRUCTURE ENVIRONMENT OPPORTUNISTIC DEVELOPMENT WE WANT TO BE AN ACTIVE PARTICIPANT IN EACH OF THESE SECTORS POWER/ENERGY OIL AND GAS INDUSTRIAL MINING

14 ON TRACK WITH OUR STRATEGIC PLAN employees 250 employees 400 employees 35 employees ENVIRONMENT GEOTECHNICAL BUILDING SCIENCES ENVIRONMENT GEOTECHNICAL BUILDING SCIENCES PROJECT MANAGEMENT TELECOM 2,000 employees BUILDINGS INFRASTRUCTURE P3 50 employees BUILDINGS (MECHANICAL) 40 employees BUILDINGS (STRUCTURE) ACQUISITION ACHIEVEMENTS YEAR TO DATE ± 3,000 employees ± 300M in net revenues 8.2% organic growth for H1 2015

15 A CLOSER LOOK AT THE MMM ACQUISITION AND RELATED FINANCING

16 ABOUT MMM 16 ONE OF THE LARGEST PRIVATELY- OWNED ENGINEERING CONSULTING COMPANIES IN CANADA Consultant of choice to private and public sector clients across Canada and around the world for more than 60 years Broad expertise in transportation, infrastructure & environment, and buildings Recognized as one of the Canadian industry leaders in alternative project delivery processes, with a track-record of more than 100 P3 initiatives across Canada and internationally Solid organic growth and competitive margins during last three years

17 A WELL-DIVERSIFIED BUSINESS MIX AND LEADERSHIP IN CORE WSP SECTORS AND ONTARIO 17 $264 million in net revenues in the fiscal year ended December 31, 2014 Buildings ±20% Rest of Canada ±25% Transportation ±50% Infrastructure & Environment ±30% Ontario ±75% 2014 NET REVENUES BY SECTOR 2014 NET REVENUES BY PROVINCE

18 18 PRO FORMA CANADIAN FOOTPRINT ± 6,500 employees ± 2,000 employees Rest of Canada ±70% WSP - CURRENT Rest of Canada ±60% WSP + MMM Ontario ±30% Ontario ±40%

19 COMPLEMENTARITY OF EXPERTISE 19 SECTOR TRANSPORTATION Extensive planning and design capabilities INFRASTRUCTURE ENVIRONMENT Expertise in development, urban design, municipal infrastructure, water resources and water/waste water BUILDINGS Expertise in sustainability, commissioning and building science Strong construction administration/constructi on management capabilities Solid geomatics platform Structural, mechanical and electrical expertise

20 20 TRANSACTION SUMMARY Purchase price of approximately $425M 1 Transaction Financial Impact Purchase price multiple is equivalent to approximately 8.9x TTM Normalized EBITDA of MMM for the period ending July 11, 2015 and excluding any revenue and cost synergies MMM generated net revenues of ±$264M in the fiscal year ended December 31, 2014 Immediately mid-single digit accretive to WSP's EPS, assuming the completion of the Offering and the Concurrent Private Placement 2,3 Pro forma Net Debt to Adjusted EBITDA (including MMM s Normalized EBITDA) is expected to be approximately 2x at the closing of the Acquisition, in line with WSP s target level of 1.5x to 2x 3 Payout ratio supported by CPPIB and CDPQ s commitment to DRIP for all dividends with a record date on or before September 30, 2016 $201M common shares offering at a price of $42.25 per share Financing $144M private placement by CPPIB and CDPQ at same Offering Price CPPIB and CDPQ s ownership at 17.8% and 18.0% respectively Balance funded with current credit facilities 1 Shareholders of MMM may elect to receive part or all of the consideration in the form of shares of WSP. The majority investor indicated that it would elect to receive its consideration in cash 2 Without considering any revenue or cost synergies, restructuring, integration expenses and transaction related costs 3 Assuming an all-cash Purchase Price

21 IN SUMMARY: WHY INVEST IN WSP? 21 STABILITY Balance sheet strength Well-diversified platform GROWTH Fragmented industry ROIC long-term growth strategy Market leader/consolidator CASH DISTRIBUTIONS Steady dividend stream and DRIP A STRONG FOUNDATION FOR CONTINUED GROWTH

22 22 SELECTED PROJECTS

23 TRANSPORTATION 23 No. 7 Line Extension New York City, US Waterloo LRT Waterloo, Canada San Francisco Bay Area to LA Basin California, US Elizabeth River Tunnels Virginia, US M25 Highway UK Binh Bridge Hai Phong Vietnam Los Angeles Airport, Los Angeles, US Port Botany Expansion Sydney, Australia

24 24 BUILDINGS Shanghai Tower Shanghai, China The Shard London, UK European Spallation Source Lund, Sweden Perth Arena Perth, Australia Hotel Marina Sands Bay Resort Singapore Dubai Opera House Dubai, United Arab Emirates Heathrow Terminal 2B London, UK World Trade Center New York, US

25 INFRASTRUCTURE 25 Logan Water Alliance South East Queensland, Australia Quartier des Spectacles Montréal, Canada Lorne Park Water Treatment Plant Ontario, Canada Antenna installation Canada Weston Road Ontario, Canada Downsview Park Ontario, Canada

26 ENVIRONMENT 26 Environmental Services for Multinational Oil Company Fujeij Windfarm China Environmental Advisor for Global Automotive Manufacturer Bolton By-Pass Bolton, Canada New York University Abu Dhabi Gaspé Mine Gaspé, Canada

27 POWER/ENERGY 27 Borås Energi and Miljö Sweden Storfinnforsen Hydropower Plant Sweden Sartigan Dam Quebec, Canada Mesaieed Power Project Middle East Medupi Southern Station South Africa Coolidge Generating Station US

28 28 OIL AND GAS Union Gas Dawn Chatam, Canada Prince Rupert Gas Transmission Cenovus Narrows Lake, Northern AB

29 29 INDUSTRIAL MedImmune Automation Upgrade Speke, UK Vegetal Oil Plant Bécancour, Canada LafargeHolcim, New Dry-Line Cement Plant and Quarry Kaluga Region, Russia Victrex Manufacturing Limited (VML) Chemical Manufacturing Facility Rotherham, UK ArcelorMittal, New Reheat Furnace Project Longueuil, Canada BMW Dynamic Center Munich, Germany Airbus Toulouse, France

30 MINING 30 Jacinth-AmbrosiaMine South Australia, Australia Agnico Eagle Lapa Mine Quebec, Canada Goldcorp Éléonore project Quebec, Canada Agnico Eagle Pinos Altos Mexico

31 ALTERNATIVE PROJECT DELIVERY/P3 31 Golden Ears Bridge BC, Canada Port Mann Highway BC, Canada La Guardia Airport NY, US Surrey Memorial Hospital BC, Canada

32 THANK YOU 32