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 Q2 17 MD&A which are
available on SEDAR, EDGAR, and
stantec.com.
2
4. OUR BUSINESS IS PEOPLE
WHO WE ARE
Engineering
Architecture
Interior Design
Landscape Architecture
Surveying
Environmental Sciences
Construction Services
Project Management
Project Economics
4
5. STANTEC AT A GLANCE
WHO WE ARE
5
22,000
Employees
globally
STN
TSX & NYSE
CDN $5.1B
Q2 2017 (TTM)
Gross Revenue
CDN $3.7B
June 30, 2017
Market Cap
400
Locations
worldwide
62 YEARS
Of uninterrupted
profitability
21. WHERE WE ARE
CONSTRUCTION SERVICES
Focus on water
and wastewater
treatment facilities
Process
engineering;
high-end,
specialized,
technical area
of construction
Majority of work in
Progressive Design
Build and CMAR;
lower risk profile
than hard bid
21
US working almost
exclusively in
public sector
64% United States
UK working with
private utility
companies
36% United Kingdom
Essential capability
in order to bid
on UK programs
and Design Bid
in the US
23. WHAT WE HAVE ACCOMPLISHED
23
WE FOCUS ON
PERFORMANCE
24. Total and Organic Revenue Growth
quarter over quarter
WHAT WE HAVE ACCOMPLISHED
24
25. millions (C$)
WHAT WE HAVE ACCOMPLISHED
25
Gross Revenue & Net Revenue
10-year Gross Revenue
CAGR18%
26. WHAT WE HAVE ACCOMPLISHED
10-year Gross Revenue
Backlog CAGR
26
Gross Revenue Backlog
17%millions (C$)
27. WHAT WE HAVE ACCOMPLISHED
27
EPS and Shares Outstanding
10-year Diluted
EPS CAGR*3%millions (C$)
*before goodwill impairment and Innovyze sale
28. WHAT WE HAVE ACCOMPLISHED
28
(C$)
Dividend Growth
4.5-year Dividend
CAGR11%
29. WHAT WE HAVE ACCOMPLISHED
29
Cash Flow
millions (C$)
30. NEW CREDIT FACILITIES
$C800M revolving credit facility
β’ Expires 2021
$C450M term loan
β’ Three tranches due 2018, 2019, 2020
NET DEBT/EBITDA
β’ 1.34 times at June 30, 2017
β’ Strong cash flow generation and growth prospects
β’ Strong balance sheet provides flexibility to continue executing growth strategy
β’ Consistent dividend payout ratio policy and corresponding dividend growth
WHAT WE HAVE ACCOMPLISHED
30
Capital Structure
31. WHAT WE HAVE ACCOMPLISHED
31
We Have A Proven Track Record
32. ACQUISITIONS
Inventrix Engineering
22 Employees
April 2017
Seattle, Washington
RNL
130 Employees
July 2017
Denver, Colorado
Opportunities
in Australia,
New Zealand,
and United
Kingdom
US ACQUISITIONS
WHAT WE HAVE ACCOMPLISHED
32
33. TOP TEN GLOBAL DESIGN FIRM
33
*Source: Engineering News-Record and internal analyses
**Deal has been announced but not closed
Top North American Design Firms Top 150 Global Design Firms
WHAT WE HAVE ACCOMPLISHED
* *
34. MWH Americas
project integration
completed in Q2 17
Global integration
planning underway
Full global
integration
expected in 2018
MWH CONSULTING SERVICES INTEGRATION
34
WHERE WE ARE GOING
35. WHERE WE ARE GOING
WE ARE EXPANDING OUR DEPTH AND BREADTH
35
North America
18,500 people Asia Pacific
1000 people
Europe/Middle East
2000 people
South America
500 people
36. Measure 2017 Target Range Results Achieved YTD
Gross margin as a % of net
revenue
Between 53% and 55% 53.9% οΌ
Administrative and marketing
expenses as a % of net revenue
Between 41% and 43% 42.9% οΌ
EBITDA* as a % of net revenue Between 11% and 13% 14.0% οΌ
Net income as a %
of net revenue
At or above 5%
2.2%
4.5% without impact
of Innovyze sale
x
2017 TARGETS
36
*Non-IFRS measure defined in Q2 17 Managementβs Discussion and Analysis
οΌ Met or performed better than target
X Did not meet target
WHERE WE ARE GOING
37. 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
37
2017 OUTLOOK
WHERE WE ARE GOING
39. β’ Diversified across sectors, regions,
and project lifecycle
β’ Proven track record
β’ Objective: top-tier position in each
market and region we serve
β’ Robust capital structure to continue
dividend growth and disciplined
acquisition strategy
39
WE ARE WELL POSITIONED
WHERE WE ARE GOING