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Stn q3 16 ir presentation final

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Stantec Q3 2016 IR Presentation

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Stn q3 16 ir presentation final

  1. 1. We create communities. We are Stantec.
  2. 2. 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
  3. 3. WE ARE STANTEC 1. WHO WE ARE 3. WHAT WE HAVE ACCOMPLISHED 4. WHERE WE ARE GOING
  4. 4. 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.
  5. 5. 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
  6. 6. 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
  7. 7. 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
  8. 8. WHO WE ARE As a percentage of Q3 16 YTD gross revenue Gross Revenue Breakdown by Geographies
  9. 9. WHO WE ARE As a percentage of Q3 16 YTD gross revenue Gross Revenue Breakdown by Business Operating Units
  10. 10. 10 Buildings WHERE WE ARE
  11. 11. 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
  12. 12. Energy & Resources WHERE WE ARE
  13. 13. 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. 14. 14 Environmental Services WHERE WE ARE
  15. 15. 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
  16. 16. Infrastructure WHERE WE ARE
  17. 17. 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
  18. 18. We focus on performance WHAT WE HAVE ACCOMPLISHED
  19. 19. Total and Organic Growth quarter over quarter WHAT WE HAVE ACCOMPLISHED
  20. 20. Gross Revenue & Net Revenue millions (C$) WHAT WE HAVE ACCOMPLISHED 17%10-YEAR GROSS REVENUE CAGR
  21. 21. Gross Revenue Backlog millions (C$) WHAT WE HAVE ACCOMPLISHED 19%10-YEAR GROSS REVENUE BACKLOG CAGR
  22. 22. Margin Profile EBITDA margin profile for engineering and construction firms (% of Gross Revenue) WHAT WE HAVE ACCOMPLISHED
  23. 23. EPS and Shares Outstanding millions (C$) WHAT WE HAVE ACCOMPLISHED 6%10-YEAR DILUTED EPS CAGR
  24. 24. Dividend Growth (C$) 10%4-YEAR DIVIDEND CAGR WHAT WE HAVE ACCOMPLISHED
  25. 25. Cash Flow millions (C$) WHAT WE HAVE ACCOMPLISHED
  26. 26. 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
  27. 27. We are continuing our evolution WHAT WE HAVE ACCOMPLISHED
  28. 28. We have a proven track record WHAT WE HAVE ACCOMPLISHED
  29. 29. 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
  30. 30. 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
  31. 31. 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
  32. 32. We are expanding our depth and breadth WHERE WE ARE GOING
  33. 33. 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
  34. 34. 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
  35. 35. 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

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