We create
communities.
We are Stantec.
Our public communications will contain non-IFRS measures and written or
verbal forward-looking statements, including a discussion of our goals and our
growth strategies. Certain information has been adjusted for the November
14, 2014, two-for-one share split. Figures for 2012 are restated for IFRS 10
and 11.
We caution readers not to place undue reliance on our
forward-looking statements since a number of factors could
cause actual future results to differ materially from the targets
and expectations expressed.
For a discussion of risk factors and non-IFRS measures, see our
2015 Annual Report, which is available on SEDAR, EDGAR,
and www.stantec.com.
Cautionary Statement
WE ARE
STANTEC
1. WHO WE ARE
3. WHAT WE
HAVE
ACCOMPLISHED
4. WHERE WE
ARE GOING
Our business is people
WHO WE ARE
Engineering
Architecture
Interior Design
Landscape Architecture
Surveying
Environmental Sciences
Project Management
Project Economics
Project concept. Planning. Design. Construction. Commissioning.
Stantec at a glance
STN
CDN 3.8B 62 YEARS
22,000 400
TSX & NYSE
Q3 16TTM
Gross Revenue
Of uninterrupted
profitability
Employees
globally
Locations
worldwide
WHO WE ARE
CDN 3.5B
September 30, 2016
Market Cap
WE ARE BETTER TOGETHER
Full integration
Single brand & platform
Diversification
Balanced Leadership Model
Local & global client focus
WHO WE ARE
Our values set us apart
WE PUT PEOPLE FIRST
People
Creative solutions
Local community presence
WE ARE DRIVEN TO ACHIEVE
Top-tier position
WE DO WHAT IS RIGHT
Business conduct
WHO WE ARE
PLANNING DESIGN CONSTRUCTION MAINTENANCE
Our business model is diversified
Project
Lifecycle
As a percentage of Q3 16 YTD gross revenue
Gross Revenue Breakdown
by Business Operating Units
Gross Revenue Breakdown
by Geographies
WHO WE ARE
As a percentage of Q3 16 YTD gross revenue
Gross Revenue Breakdown
by Geographies
WHO WE ARE
As a percentage of Q3 16 YTD gross revenue
Gross Revenue Breakdown
by Business Operating Units
10
Buildings
WHERE WE ARE
Buildings
WHERE WE ARE
As an approximate percentage of Q3 16 YTD gross revenue
YTD GROSS REVENUE BREAKDOWN
BY GEOGRAPHY
YTD GROSS REVENUE BREAKDOWN
BY CLIENT TYPE
Energy & Resources
WHERE WE ARE
Energy & Resources
WHERE WE ARE
As an approximate percentage of Q3 16 YTD gross revenue
YTD GROSS REVENUE BREAKDOWN
BY GEOGRAPHY
YTD GROSS REVENUE BREAKDOWN
BY CLIENT TYPE
14
Environmental Services
WHERE WE ARE
Environmental Services
WHERE WE ARE
As an approximate percentage of Q3 16 YTD gross revenue
YTD GROSS REVENUE BREAKDOWN
BY GEOGRAPHY
YTD GROSS REVENUE BREAKDOWN
BY CLIENT TYPE
Infrastructure
WHERE WE ARE
Infrastructure
WHERE WE ARE
As an approximate percentage of Q3 16 YTD gross revenue
YTD GROSS REVENUE BREAKDOWN
BY GEOGRAPHY
YTD GROSS REVENUE BREAKDOWN
BY CLIENT TYPE
We focus on performance
WHAT WE HAVE ACCOMPLISHED
Total and Organic Growth
quarter over quarter
WHAT WE HAVE ACCOMPLISHED
Gross Revenue
& Net Revenue
millions (C$)
WHAT WE HAVE ACCOMPLISHED
17%10-YEAR
GROSS REVENUE
CAGR
Gross Revenue Backlog
millions (C$)
WHAT WE HAVE ACCOMPLISHED
19%10-YEAR
GROSS REVENUE
BACKLOG CAGR
Margin Profile
EBITDA margin profile for engineering and construction firms
(% of Gross Revenue)
WHAT WE HAVE ACCOMPLISHED
EPS and Shares
Outstanding
millions (C$)
WHAT WE HAVE ACCOMPLISHED
6%10-YEAR
DILUTED EPS
CAGR
Dividend Growth
(C$)
10%4-YEAR
DIVIDEND
CAGR
WHAT WE HAVE ACCOMPLISHED
Cash Flow
millions (C$)
WHAT WE HAVE ACCOMPLISHED
Capital Structure
NEW CREDIT FACILITIES
$C800M revolving credit facility
• Expires 2020
$C450M term loan
• Three tranches due 2018, 2019, 2020
NET DEBT/EBITDA
TTM
• 2.64 times at September 30, 20161
• Strong cash flow generation and growth prospects
• Less than 2.0x expected EBITDA by the end of 2017
• Strong balance sheet provides flexibility to continue executing growth strategy
• Consistent dividend payout ratio policy and corresponding dividend growth
1
Includes MWH TTM EBITDA
WHAT WE HAVE ACCOMPLISHED
We are continuing our evolution
WHAT WE HAVE ACCOMPLISHED
We have a proven
track record
WHAT WE HAVE ACCOMPLISHED
Welcome to the
Stantec community
BURY
300 Employees
March 2016
MWH
6,800 Employees
May 2016
VOA
280 Employees
May 2016
EDWARDS &
ZUCK
120 Employees
September 2016
Arch|TB
60 Employees
Letter of intent
A strategic fit
STRATEGIC
PLAN
OBJECTIVES
Consider larger/
mega-deal domestic
acquisitions
Pursue international
opportunities
Evolve our approach to APD
in certain sectors
MWH
FIT
Largest deal in Stantec’s
history with 6,800
employees
Global platform in stable
countries
Full life cycle offering in
water sector in response
to APD
WHERE WE ARE GOING
Why water?
• Aging infrastructure
• Population distribution and growth
• Climate change
• Environmental sustainability
• Affordability
• Regulatory pressures
WHERE WE ARE GOING
1American Society of Civil Engineers
Water-related infrastructure
investment required will amount to
$126 billion by 20201
We are expanding our depth
and breadth
WHERE WE ARE GOING
1 According to Engineering News-Record and internal analysis
Top North American Design Firms1 Top 150 Global Design Firms
Our business objective is to be a Top Ten Global Design Firm
WHERE WE ARE GOING
To be a top ten
global design firm
TRANSACTION
CLOSED
MAY 6
EXPLORE
KEY
PURSUITS
COMPLETION
OF COMBINED
OPERATING
STRUCTURE
Next steps
TARGETED
INTEGRATION
OF MWH
AMERICAS
IN 2017
SYNERGIES
THROUGH
OPTIMIZATION OF
CORPORATE
COSTS
PHASED
INTEGRATION
PLAN
WHERE WE ARE GOING
We are well positioned
• Diversified across sectors, regions, and project lifecycle
• Proven track record
• Objective: top-tier position in each market and region we
serve
• Robust capital structure to continue dividend growth and
disciplined acquisition strategy
WHERE WE ARE GOING

Stn q3 16 ir presentation final

  • 1.
  • 2.
    Our public communicationswill contain non-IFRS measures and written or verbal forward-looking statements, including a discussion of our goals and our growth strategies. Certain information has been adjusted for the November 14, 2014, two-for-one share split. Figures for 2012 are restated for IFRS 10 and 11. We caution readers not to place undue reliance on our forward-looking statements since a number of factors could cause actual future results to differ materially from the targets and expectations expressed. For a discussion of risk factors and non-IFRS measures, see our 2015 Annual Report, which is available on SEDAR, EDGAR, and www.stantec.com. Cautionary Statement
  • 3.
    WE ARE STANTEC 1. WHOWE ARE 3. WHAT WE HAVE ACCOMPLISHED 4. WHERE WE ARE GOING
  • 4.
    Our business ispeople WHO WE ARE Engineering Architecture Interior Design Landscape Architecture Surveying Environmental Sciences Project Management Project Economics Project concept. Planning. Design. Construction. Commissioning.
  • 5.
    Stantec at aglance STN CDN 3.8B 62 YEARS 22,000 400 TSX & NYSE Q3 16TTM Gross Revenue Of uninterrupted profitability Employees globally Locations worldwide WHO WE ARE CDN 3.5B September 30, 2016 Market Cap
  • 6.
    WE ARE BETTERTOGETHER Full integration Single brand & platform Diversification Balanced Leadership Model Local & global client focus WHO WE ARE Our values set us apart WE PUT PEOPLE FIRST People Creative solutions Local community presence WE ARE DRIVEN TO ACHIEVE Top-tier position WE DO WHAT IS RIGHT Business conduct
  • 7.
    WHO WE ARE PLANNINGDESIGN CONSTRUCTION MAINTENANCE Our business model is diversified Project Lifecycle As a percentage of Q3 16 YTD gross revenue Gross Revenue Breakdown by Business Operating Units Gross Revenue Breakdown by Geographies
  • 8.
    WHO WE ARE Asa percentage of Q3 16 YTD gross revenue Gross Revenue Breakdown by Geographies
  • 9.
    WHO WE ARE Asa percentage of Q3 16 YTD gross revenue Gross Revenue Breakdown by Business Operating Units
  • 10.
  • 11.
    Buildings WHERE WE ARE Asan approximate percentage of Q3 16 YTD gross revenue YTD GROSS REVENUE BREAKDOWN BY GEOGRAPHY YTD GROSS REVENUE BREAKDOWN BY CLIENT TYPE
  • 12.
  • 13.
    Energy & Resources WHEREWE ARE As an approximate percentage of Q3 16 YTD gross revenue YTD GROSS REVENUE BREAKDOWN BY GEOGRAPHY YTD GROSS REVENUE BREAKDOWN BY CLIENT TYPE
  • 14.
  • 15.
    Environmental Services WHERE WEARE As an approximate percentage of Q3 16 YTD gross revenue YTD GROSS REVENUE BREAKDOWN BY GEOGRAPHY YTD GROSS REVENUE BREAKDOWN BY CLIENT TYPE
  • 16.
  • 17.
    Infrastructure WHERE WE ARE Asan approximate percentage of Q3 16 YTD gross revenue YTD GROSS REVENUE BREAKDOWN BY GEOGRAPHY YTD GROSS REVENUE BREAKDOWN BY CLIENT TYPE
  • 18.
    We focus onperformance WHAT WE HAVE ACCOMPLISHED
  • 19.
    Total and OrganicGrowth quarter over quarter WHAT WE HAVE ACCOMPLISHED
  • 20.
    Gross Revenue & NetRevenue millions (C$) WHAT WE HAVE ACCOMPLISHED 17%10-YEAR GROSS REVENUE CAGR
  • 21.
    Gross Revenue Backlog millions(C$) WHAT WE HAVE ACCOMPLISHED 19%10-YEAR GROSS REVENUE BACKLOG CAGR
  • 22.
    Margin Profile EBITDA marginprofile for engineering and construction firms (% of Gross Revenue) WHAT WE HAVE ACCOMPLISHED
  • 23.
    EPS and Shares Outstanding millions(C$) WHAT WE HAVE ACCOMPLISHED 6%10-YEAR DILUTED EPS CAGR
  • 24.
  • 25.
    Cash Flow millions (C$) WHATWE HAVE ACCOMPLISHED
  • 26.
    Capital Structure NEW CREDITFACILITIES $C800M revolving credit facility • Expires 2020 $C450M term loan • Three tranches due 2018, 2019, 2020 NET DEBT/EBITDA TTM • 2.64 times at September 30, 20161 • Strong cash flow generation and growth prospects • Less than 2.0x expected EBITDA by the end of 2017 • Strong balance sheet provides flexibility to continue executing growth strategy • Consistent dividend payout ratio policy and corresponding dividend growth 1 Includes MWH TTM EBITDA WHAT WE HAVE ACCOMPLISHED
  • 27.
    We are continuingour evolution WHAT WE HAVE ACCOMPLISHED
  • 28.
    We have aproven track record WHAT WE HAVE ACCOMPLISHED
  • 29.
    Welcome to the Stanteccommunity BURY 300 Employees March 2016 MWH 6,800 Employees May 2016 VOA 280 Employees May 2016 EDWARDS & ZUCK 120 Employees September 2016 Arch|TB 60 Employees Letter of intent
  • 30.
    A strategic fit STRATEGIC PLAN OBJECTIVES Considerlarger/ mega-deal domestic acquisitions Pursue international opportunities Evolve our approach to APD in certain sectors MWH FIT Largest deal in Stantec’s history with 6,800 employees Global platform in stable countries Full life cycle offering in water sector in response to APD WHERE WE ARE GOING
  • 31.
    Why water? • Aginginfrastructure • Population distribution and growth • Climate change • Environmental sustainability • Affordability • Regulatory pressures WHERE WE ARE GOING 1American Society of Civil Engineers Water-related infrastructure investment required will amount to $126 billion by 20201
  • 32.
    We are expandingour depth and breadth WHERE WE ARE GOING
  • 33.
    1 According toEngineering News-Record and internal analysis Top North American Design Firms1 Top 150 Global Design Firms Our business objective is to be a Top Ten Global Design Firm WHERE WE ARE GOING To be a top ten global design firm
  • 34.
    TRANSACTION CLOSED MAY 6 EXPLORE KEY PURSUITS COMPLETION OF COMBINED OPERATING STRUCTURE Nextsteps TARGETED INTEGRATION OF MWH AMERICAS IN 2017 SYNERGIES THROUGH OPTIMIZATION OF CORPORATE COSTS PHASED INTEGRATION PLAN WHERE WE ARE GOING
  • 35.
    We are wellpositioned • Diversified across sectors, regions, and project lifecycle • Proven track record • Objective: top-tier position in each market and region we serve • Robust capital structure to continue dividend growth and disciplined acquisition strategy WHERE WE ARE GOING

Editor's Notes