CIBC Industrials Conference. Alexandre L Heureux May 18, 2016

Transcription

1 CIBC Industrials Conference Alexandre L Heureux May 18, 2016

2 A LEADING GLOBAL PROFESSIONAL CONSULTING FIRM 2 Focus on professional services (no construction risk) Solid technical expertise Global presence Diversified across various sectors and geographies Proven M&A strategy Consistent financial execution Annual dividend $1.50 per share; 4% yield Top PM/CM firm - # 1 Top pure play firm - # 2 Transportation - # 2 Buildings - # 4 Power - # 4 Best services engineer Engineer of the year Sustainability Initiative of the Year Heathrow Terminal 2B - London, UK

3 OUR POSITIONING IN VALUE CHAIN 3 WE HAVE A HORIZONTAL FEE-FOR-SERVICE MODEL EQUIPMENT SUPPLIERS MATERIALS AND ENGINEERED PRODUCTS PLANNING DESIGN PROJECT/ PROGRAM MANAGEMENT FOR CONSTRUCTION OPERATION AND MAINTENANCE GOVERNMENTS AND AGENCIES ARCHITECTS CONTRACTORS AND DEVELOPERS

4 OUR DIVERSIFIED PLATFORM SUPPORTS OUR STRATEGY 4 Americas 30% Transportation and Infrastructure 47% EMEIA 38% Property and Buildings 31% Canada 18% APAC 14% Industrial and Energy 15% Industrial 7% Power and Energy 4% Oil and Gas 3% Mining 1% Environment 7%

5 SOLID BASES ACROSS ALL REGIONS 5 CANADA AMERICAS 32% Transport and Infrastructure 24% Property and Buildings 73% Transport and Infrastructure 23% Industrial and Energy 21% Environment 6% Industrial and Energy 3% Environment 18% Property and Buildings 39% Transport and Infrastructure EMEIA 31% Transport and Infrastructure APAC 18% Industrial and Energy 5% Environment 38% Property and Buildings 15% Industrial and Energy 5% Environment 49% Property and Buildings

6 A WELL-DIVERSIFIED REVENUE BASE 6 Public vs. Private split Fixe-fee vs. Fee-for-service split Canada 40% 60% Canada 60% 40% Americas 53% 47% Americas 40% 60% UK 41% 59% UK 76% 24% Middle East/India 48% 52% Middle East/India 99% 1% Scandinavia 52% 48% Scandinavia 14% 86% Africa 66% 34% Africa 95% 5% Central Europe 18% 82% Central Europe 90% 10% Asia 16% 84% Asia 99% 1% Australia/NZ 32% 68% Australia/NZ 98% 2% TOTAL 45% 55% TOTAL 57% 43% Public Private Fixed-fee Fee-for-service

7 7 A SOLID AND SUSTAINED PERFORMANCE NET REVENUES** ADJUSTED EBITDA** SOLID BALANCE SHEET (NET DEBT/ADJUSTED EBITDA**) 4 486, , ,0 441,5 447,7 490,0 CAGR 64% CAGR 52% 2 349,9 253, ,2 180,6 125, ,1 1,5 2,0 1,8 1,8 1, TTM Q E* TTM Q E* Q1 16 * Mid-point of 2016 guidance provided by the company ** Non-IFRS measures

8 LOOKING AHEAD

9 2016 OUTLOOK 9 Net revenues* Adjusted EBITDA* range Seasonality and adjusted EBITDA* fluctuations Between $4,600 million and $5,100 million Between $465 million and $515 million Q1: 16% to 18% 1 ) Q2: 24% to 26% Q3: 31% to 33% Q4: 28% to 30% Tax rate 26% to 28% DSO* 80 to 85 days Amortization of intangible assets related to acquisitions $75 to $80 million Capital expenditures* $115 to $125 million Net debt to adjusted EBITDA* 1.5x to 2.0x Acquisition and reorganization costs* Between $15 million and $25 million 2) * Non-IFRS measure. 1) The first quarter of 2016 has 2 less billable days than the first quarter of ) Due mainly to the MMM acquisition completed in Q and anticipated additional real estate related integration costs pertaining to the transformational Parsons Brinckerhoff acquisition in Q

10 REGIONAL TRENDS 10 Impact of low O&G prices High spending commitments Positive and growing outlook Positive and growing outlook Slow growth Multiple P3 projects Impact of low O&G prices Positive and growing outlook Flat growth

11 FOCUS ON ORGANIC GROWTH AND MARGIN IMPROVEMENT 11 ORGANIC GROWTH Additional services to existing clients and new client Partner with contractors and developers for alternative delivery and P3 projects Build on our world-class position in specific market segments Develop emerging regions with a significant growth potential MARGIN IMPROVEMENT Economic recovery Employee development, project management improvement Economies of scale, real estate

12 GLOBAL CONSTRUCTION MARKET GROWING FASTER THAN GDP 12 $9,5 +85% Average annual growth rate +3.9% GDP Average annual growth rate +2.8% $17,5 GROWTH DRIVERS GDP growth rates Population projections Urbanization trends Budget deficits Smart technology Aging assets Climate change In $ trillions Source: Global Construction 2030, Oxford Economics

13 UNITED KINGDOM 13 There is, therefore, an unavoidable tension between the overall constrained position faced by the public sector, and the need for sustained and substantial investment to grow the railway to meet social and economic needs. 1.8 B sale of non-core and lower value assets Concessions Public Private Partnerships Land owner fees

14 14 UNITED STATES US$305 B 5 year bill: FY FY 2016: 6.6% above 2015 levels Overall growth of 3.2% over life of bill $280.6 B from Highway Trust Fund not subject to annual appropriations Includes passenger rail funding for first time Creates new freight program & State Rail Plans New discretionary grant programs

15 15 CANADA $120 B Infrastructure Investment over 10 years Phase 1 $3.4 B over 3 years to upgrade transit systems $5 B over 5 years for water, wastewater and green infrastructure projects Additional Investments $3 B annually for municipal infrastructure projects Gas Tax Fund Incremental Goods and Services Tax Rebate $9 B accelerated spending of New Building Canada Fund

16 16 CANADA - ONTARIO $130 B over 10 years in public infrastructure Largest investment in infrastructure in Ontario s history Public Transit Schools Hospitals Safer Roads Bridges 110,000 new jobs each year

17 17 AUSTRALIA NEW SOUTH WALES Asset Recycling A$2 B lease of Electricity Network Potential Port options A$20 B Infrastructure Investment A$7 B Sydney Metro Expansion with new harbor rail crossing A$1.1 B WestConnex extenstions and Western Harbour Tunnel A$2 B for Schools and Hospitals A$1 B for Regional Water Security

18 STRATEGIC AMBITIONS

19 STRATEGIC OBJECTIVES REAFFIRMED EMPLOYEES CLIENTS GROWTH OPERATIONAL EXCELLENCE 45,000 EMPLOYEES 10% REVENUES FROM GLOBAL CLIENTS $1.3B THROUGH ACQUISITIONS 5% ANNUAL ORGANIC GROWTH $6.0B NET REVENUES 11% EBITDA MARGIN > 1 CASH FLOW / NET INCOME < 85 DAYS DSO

20 WELL-DEFINED M&A TARGETS 20 GEOGRAPHIES US South America Central and Northern Europe UK Canada Australia SECTORS Tier 1: Transportation, Buildings, Infrastructure, Environment Tier 2: Power/Energy, Industrial, Water/Wastewater

21 YEAR-TO-DATE ACQUISITIONS 21 PRD Konsult (Sweden) Power and energy 25 employees DITEC (Mexico) structural engineering 50 employees PTS (Finland) Project management in buildings 20 employees Financed using balance-sheet Additional skill-sets within our network New geography

22 22 WHY INVEST IN WSP? Experienced management team Diversified model, full service capabilities Recurrent revenue, strong cash flow generation Leadership positions in attractive end markets Good organic growth opportunities Well-defined growth strategy Proven acquisition strategy Low gearing culture Low capex requirements Strong balance-sheet Solid shareholder base Stable high-yield dividend

23 THANK YOU