Q1 2017 Investor Presentation - Stantec...Q1 2017 Investor Presentation Cautionary Statement Our...
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Q1 2017 Investor Presentation
Transcript of Q1 2017 Investor Presentation - Stantec...Q1 2017 Investor Presentation Cautionary Statement Our...
Q1 2017 Investor Presentation
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 causeactual 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.
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AGENDA
Who We Are
Where We Are
What We Have Accomplished
Where We Are Going
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OUR BUSINESS IS PEOPLEWHO WE ARE
EngineeringArchitectureInterior DesignLandscape ArchitectureSurveyingEnvironmental SciencesConstruction ServicesProject ManagementProject Economics
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STANTEC AT A GLANCEWHO WE ARE
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22,000Employees
globally
STNTSX & NYSE
CDN $4.8BQ1 2017 (TTM)
Gross Revenue
CDN $3.9B March 31, 2017Market Cap
400Locationsworldwide
62 YEARSOf uninterrupted
profitability
WHO WE ARE
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OUR BUSINESS MODEL IS DIVERSIFIED
*As a percentage of Q1 17 gross revenue
WHO WE ARE
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*As a percentage of Q1 17 gross revenue
Gross Revenue Breakdownby Geographies*
WHO WE ARE
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Gross Revenue Breakdownby Geographies*
*As a percentage of Q1 17 consulting services gross revenue
WHO WE ARE
Gross Revenue Breakdown by Business Operating Units*
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WHERE WE ARE
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WHERE WE ARE
*As an approximate percentage of Q1 17 consulting services gross revenue
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WHERE WE ARE
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WHERE WE ARE
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*As an approximate percentage of Q1 17 consulting services gross revenue
WHERE WE ARE
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WHERE WE ARE
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*As an approximate percentage of Q1 17 consulting services gross revenue
WHERE WE ARE
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WHERE WE ARE
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*As an approximate percentage of Q1 17 consulting services gross revenue
WHERE WE ARE
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WHERE WE ARE
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*As an approximate percentage of Q1 17 consulting services gross revenue
• Construction Services revenue generated primarily in the United States and United Kingdom• Focus on water and wastewater treatment facilities
CONSTRUCTION SERVICES
Gross Revenue Breakdown by Geography
Gross Revenue Breakdown by Client Type
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WHERE WE ARE
WHAT WE HAVE ACCOMPLISHED
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WE FOCUS ONPERFORMANCE
Total and Organic Revenue Growth
quarter over quarter
WHAT WE HAVE ACCOMPLISHED
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millions (C$)
WHAT WE HAVE ACCOMPLISHED
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Gross Revenue & Net Revenue
millions (C$)
Gross Revenue & Net Revenue
Q1
10-year Gross Revenue CAGR18%
WHAT WE HAVE ACCOMPLISHED
10-year Gross Revenue Backlog CAGR
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millions (C$)
Gross Revenue Backlog
millions (C$)
Gross Revenue Backlog17%
Q1
WHAT WE HAVE ACCOMPLISHED
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millions (C$)
EPS and Shares Outstanding
millions (C$)
EPS and Shares Outstanding10-year DilutedEPS CAGR5%
Q1
WHAT WE HAVE ACCOMPLISHED
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(C$)
Dividend GrowthDividend Growth
Q1
4-year Dividend CAGR11%
WHAT WE HAVE ACCOMPLISHED
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millions (C$)
Cash Flow
millions (C$)
Cash Flow
Q1
NEW CREDIT FACILITIES $C800M revolving credit facility
• Expires 2020
$C450M term loan• Three tranches due 2018, 2019, 2020
NET DEBT/EBITDA• 2.38 times at March 31, 2017
• 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
WHAT WE HAVE ACCOMPLISHED
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Capital Structure
WHAT WE HAVE ACCOMPLISHED
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We Have A Proven Track Record
Integration of North American consulting
staff on track forQ2 2017
All brandingtransition expected
in 2018
Global integration underway
MWH INTEGRATION
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WHAT WE HAVE ACCOMPLISHED
WHERE WE ARE GOING
WE ARE EXPANDING OUR DEPTH AND BREADTH
North America18,500 people Asia Pacific
1000 people
Europe/Middle East2000 people
South America500 people
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Our business objective is to be a Top Ten Global Design Firm
WHERE WE ARE GOING
TO BE A TOP TEN GLOBAL DESIGN FIRM
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Measure 2017 Target RangeGross margin as a % of net revenue Between 53% and 55%
Administrative and marketing expensesas a % of net revenue Between 41% and 43%
EBITDA* as a % of net revenue Between 11% and 13%
Net income as a % of net revenue At or above 5%
2017 TARGETS
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Additional Measures 2017 TargetCapital expenditures $75 million
Software additions $15 million
Amortization of intangible assets $85 million
* Non-IFRS measure defined in 2016 Management’s Discussion and Analysis
WHERE WE ARE GOING
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 andoil and gas
Residential construction
Expanding economy
Infrastructure spending
Water and wastewater
Transportation
United Kingdom
New Zealandand Australia
Europe
Latin America
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2017 OUTLOOK
WHERE WE ARE GOING
• 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
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WE ARE WELL POSITIONED
WHERE WE ARE GOING
