Stantec Q1 2017 Earnings Call Presentation

1. Q1 2017 Earnings Conference Call
Thursday May 11, 2017

2. Cautionary Statement
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.
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 2016 Annual Report and Q1
17 MD&A which are available on SEDAR,
EDGAR, and stantec.com.
2

3. AGENDA
Bob Gomes
Highlights
Dan Lefaivre
Summary of Financial Results
Bob Gomes
Operational Highlights
Outlook
3

4. Q1 2017 HIGHLIGHTS
69.0%
Gross revenue increase
in Q1 17 vs. Q1 16
US $270M
For the sale of Innovyze
-2.4%
Organic revenue
retraction decreasing
4
millions (C$)
Q1

5. 5

6. Q1 17 Q1 16 Q1 17
vs.
Q1 16
(1)
Gross revenue $1,276.3 $755.4 69.0%
Gross margin (2)
54.1% 53.9% 39.3%
EBITDA (3)
$89.8 $66.5 35.0%
Administrative and marketing
expenses (2) 43.6% 43.2% 40.1%
Net (loss) income $(58.0) $30.6 n/m
Adjusted net income (3)
$45.8 $37.6 21.8%
Adjusted EPS (diluted) (3)
$0.40 $0.40 -
Q1 17 FINANCIAL RESULTS
In millions of Canadian dollars except for share amounts and percentages
(1) Percent increase (decrease) calculated based on the dollar change from the comparable period.
(2) As a % of net revenue
(3) Non-IFRS measure defined in our 2016 Annual Report and Q1 17 Management’s Discussion and Analysis.
6

7. (In millions of Canadian dollars except per share amounts)
Q1 17 Q2 17
Pro Forma
YTD
Pro Forma
Gross proceeds
Working capital adjustments and transaction costs
-
-
359
(31)
359
(31)
Net proceeds from sale
Net assets on close
-
-
328
(275)
328
(275)
Pre-tax gain on disposal - 53 53
Estimated Impact on Taxes, Net Income, and EPS
Current taxes payable
Deferred taxes previously recorded on Innovyze net assets
Deferred taxes recorded on held for sale classification
-
-
(90)
(136)
26
90
(136)
26
-
Income taxes expense (90) (20) (110)
Impact on net income (90) 33 (57)
Impact on EPS - basic (0.79) 0.29 (0.50)
Impact on EPS - diluted (0.79) 0.29 (0.50)
ESTIMATED IMPACT OF INNOVYZE TRANSACTION
This table includes estimates that may be different from the actual future results due to various assumptions including those related to foreign exchange, number of
weighted average shares, estimated working capital and indebtedness of Innovyze, and estimated transaction costs that are contingent on the net proceeds. (See
the Caution Regarding Forward-Looking Statements on slide 2 of this presentation).
7

8. Measure 2017 Target Range Q1 17 Results
Gross margin as a % of net revenue Between 53% and 55% 54.1%
Administrative and marketing
expenses as a % of net revenue
Between 41% and 43% 43.6%
EBITDA* as a % of net revenue Between 11% and 13% 10.3%
Net (loss) income as a % of net
revenue
At or above 5%
(6.6%)
3.7% without deferred
tax on Innovyze sale
2017 TARGETS
8
*Non-IFRS measure defined in Q1 17 Management’s Discussion and Analysis
Cash dividends declared per common
share
$0.1250

9. 9

10. 10
• Organic gross revenue grew 2.3%
quarter over quarter
• Strong organic growth in US
Transportation sector
• Organic gross revenue grew 2.2%
quarter over quarter
• Positive momentum in United States
and Canada water markets
*Percent of Q1 17 consulting services gross revenue

11. 11
*Percent of Q1 17 consulting services gross revenue
• Organic gross revenue retracted 6.8% in
Q1 17 vs. Q1 16
• Key project wins in Canada and United
States will contribute to increased
revenue in 2017
• Organic gross revenue retracted 13.2% in Q1
17 compared to Q1 16
• Oil & Gas sector within energy & resources and
environmental services represents 6% of overall
gross revenue
• Reduced level of retraction in Q1 17
• Stable organic growth
• Increased activity, continuing to win small
projects in North America

12. Innovyze sold
May 5th for US
$270 million
Sale allows
both companies
to prosper
12
INNOVYZE SALE
Reduces debt
For future growth
opportunities

13. Integration of North
American consulting
staff on track for
Q2 2017
All branding
transition expected
in 2018
Global integration
underway
MWH INTEGRATION
13

14. Overall Canada US Global
Long-term
target of 15%
gross revenue
CAGR
Continued
acquisition
strategy
Strong backlog
and client
relationships
Federal
infrastructure
spending
Transit,
water and
wastewater
Continued
weakness in mining
and
oil and gas
Residential
construction
Expanding economy
Infrastructure
spending
Water and
wastewater
Transportation
United Kingdom
New Zealand
and Australia
Europe
Latin America
14
2017 OUTLOOK

15. 15
Royal Columbian Hospital Redevelopment Project
(British Columbia, Canada)
Redevelopment of two mine sites
(Manitoba, Canada)
Metro Line Light-Rail Transit Expansion
(Alberta, Canada)
Nassau Expressway Resiliency and Operations
Improvement Design-Build Project
(New York, United States)
Cedar Ridge Reservoir Environmental
Impact Statement
(Texas, United States)
City Water Tunnel No. 3
(New York, United States)
Central Puget Sound Regional Transit Design-Build
Services for Operations & Maintenance Satellite Facility
(Washington, United States)
PROJECT BACKLOG

16. 16
2016 Sustainability Report
Now available on stantec.com

17. Q&A
17