q2 2017 investor presentation - stantec · q2 2017 investor presentation . cautionary statement our...
Post on 13-Jun-2020
7 Views
Preview:
TRANSCRIPT
Q2 2017 Investor Presentation
Cautionary StatementOur 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 areavailable on SEDAR, EDGAR, and stantec.com.
2
AGENDA
Who We Are
Where We Are
What We Have Accomplished
Where We Are Going
3
OUR BUSINESS IS PEOPLE
WHO WE ARE
EngineeringArchitectureInterior DesignLandscape ArchitectureSurveyingEnvironmental SciencesConstruction ServicesProject ManagementProject Economics
4
STANTEC AT A GLANCEWHO WE ARE
5
22,000Employees
globally
STNTSX & NYSE
CDN $5.1BQ2 2017 (TTM)
Gross Revenue
CDN $3.7B June 30, 2017
Market Cap
400Locationsworldwide
62 YEARSOf uninterrupted
profitability
WHO WE ARE
6
OUR BUSINESS MODEL IS DIVERSIFIED
*As a percentage of Q2 17 YTD gross revenue
WHO WE ARE
7
*As a percentage of Q2 17 YTD gross revenue
Gross Revenue Breakdownby Geographies*
WHO WE ARE
8
*As a percentage of Q2 17 YTD consulting services gross revenue
WHO WE ARE
Gross Revenue Breakdown by Business Operating Units*
9
WHERE WE ARE
10
WHERE WE ARE
*As an approximate percentage of Q2 17 YTD consulting services gross revenue
11
WHERE WE ARE
12
WHERE WE ARE
13
*As an approximate percentage of Q2 17 YTD consulting services gross revenue
WHERE WE ARE
14
WHERE WE ARE
15
*As an approximate percentage of Q2 17 YTD consulting services gross revenue
WHERE WE ARE
16
WHERE WE ARE
17
*As an approximate percentage of Q2 17 YTD consulting services gross revenue
WHERE WE ARE
18
WHERE WE ARE
19
*As an approximate percentage of Q2 17 YTD consulting services gross revenue
WHERE WE ARE
20
WHERE WE ARE
CONSTRUCTION SERVICES
Focus on water and wastewater
treatment facilities
Process engineering;
high-end, specialized,
technical area of construction
Majority of work in Progressive Design Build and CMAR; lower risk profile
than hard bid
21
US working almost exclusively in public sector
64% United States
UK working with private utility companies
36% United Kingdom
Essential capability in order to bid
on UK programs and Design Bid
in the US
CONSTRUCTION SERVICES
22
WHERE WE ARE
Gross Revenue Breakdown by Client Type
Gross Revenue Breakdown by Geography
WHAT WE HAVE ACCOMPLISHED
23
WE FOCUS ONPERFORMANCE
Total and Organic Revenue Growth
quarter over quarter
WHAT WE HAVE ACCOMPLISHED
24
millions (C$)
WHAT WE HAVE ACCOMPLISHED
25
Gross Revenue & Net Revenue10-year Gross Revenue CAGR18%
WHAT WE HAVE ACCOMPLISHED
10-year Gross Revenue Backlog CAGR
26
Gross Revenue Backlog17%
millions (C$)
WHAT WE HAVE ACCOMPLISHED
27
EPS and Shares Outstanding10-year DilutedEPS CAGR*3%
millions (C$)
*before goodwill impairment and Innovyze sale
WHAT WE HAVE ACCOMPLISHED
28
(C$)
Dividend Growth4.5-year Dividend CAGR11%
WHAT WE HAVE ACCOMPLISHED
29
Cash Flow
millions (C$)
NEW CREDIT FACILITIES $C800M revolving credit facility
• Expires 2021
$C450M term loan• Three tranches due 2018, 2019, 2020
NET DEBT/EBITDA• 1.34 times at June 30, 2017
• Strong cash flow generation and growth prospects• Strong balance sheet provides flexibility to continue executing growth strategy• Consistent dividend payout ratio policy and corresponding dividend growth
WHAT WE HAVE ACCOMPLISHED
30
Capital Structure
WHAT WE HAVE ACCOMPLISHED
31
We Have A Proven Track Record
ACQUISITIONS
Inventrix Engineering22 EmployeesApril 2017Seattle, Washington
RNL130 EmployeesJuly 2017Denver, Colorado
Opportunities in Australia, New Zealand, and United Kingdom
US ACQUISITIONS
WHAT WE HAVE ACCOMPLISHED
32
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
* *
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
WHERE WE ARE GOING
WE ARE EXPANDING OUR DEPTH AND BREADTH
35
North America18,500 people Asia Pacific
1000 people
Europe/Middle East2000 people
South America500 people
Measure 2017 Target Range Results Achieved YTDGross margin as a % of net revenue Between 53% and 55% 53.9%
Administrative and marketing expenses as a % of net revenue Between 41% and 43% 42.9%
EBITDA* as a % of net revenue Between 11% and 13% 14.0%
Net income as a % of net revenue At or above 5%
2.2%4.5% without impact
of Innovyze salex
2017 TARGETS
36
*Non-IFRS measure defined in Q2 17 Management’s Discussion and Analysis Met or performed better than targetX Did not meet target
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
37
2017 OUTLOOK
WHERE WE ARE GOING
WHERE WE ARE GOING
38
• 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
39
WE ARE WELL POSITIONED
WHERE WE ARE GOING
top related