Aecom · NYSE:ACM
Aecom — Merger or Acquisition (June 2019)
19 slides from Aecom's merger presentation, Jun 17, 2019
Slide 1: Disclosures: Forward-Looking Statements
Disclosures Forward-Looking Statements All statements in this communication other than statements of historical fact are “forward-looking statements” for purposes of federal and state securities laws, including any projections of earnings, revenue, cost savings, profitability, cash flows, tax rates,
Slide 2: Michael S. Burke, Chairman and Chief Executive Officer
Michael S. Burke Chairman Chief Executive Officer GORDIE HOWE INTERNATIONAL BRIDGE United States / Canada Connecting Windsor, Canada and Detroit, Michigan via a 2.5 kilometer bridge that when completed will be the longest cable-stayed bridge on the continent.
Slide 3: A Transformative Step to Maximize Long-Term Value
A Transformative Step to Maximize Long-Term Value Maximizing the value inherent within our industry-leading franchises by best positioning each business for long-term success Enabling a sharpened strategic focus for both AECOM and the standalone government services business that will allow each comp
Slide 4: Expected to Drive Value for All Stakeholders
Expected to Drive Value for All Stakeholders Benefits of the Standalone Government Services Business: Enhanced strategic flexibility to pursue profitable growth with scale in a highly fragmented and rapidly growing government services market Shareholders benefit from distinct investment opportunitie
Slide 5: Executing Spin-Off from a Position of Strength
Executing Spin-Off from a Position of Strength Management Services Financial Highlights: • Following several years of investments in organic growth, the standalone government services business is better positioned than ever to achieve its long-term strategic and financial objectives $4.0B Strong Rev
Slide 6: Today's Announcement Furthers Our Commitment to Value Creation
Today’s Announcement Furthers Our Commitment to Value Creation • Positioned the DCS segment to deliver 110+ basis points of adj. operating margin1 expansion in FY’19 and further improvements expected in FY’20, with additional opportunities for margin expansion being evaluated • Decision to exited th
Slide 7: W. Troy Rudd, Chief Financial Officer
W. Troy Rudd Chief Financial Officer PHOENIX SKY HARBOR INTERATIONAL AIRPORT TERMINAL 3 MODERNIZATION United States Serving as design-builder for the new renovation of the Terminal 3 facility, north concourse and the addition of a new south concourse.
Slide 8: Spin-Off Transaction Overview
Spin-Off Transaction Overview • Subject to customary closing conditions Financial Profile: • Focused on executing the spin-off with no expected disruption to day-to-day operations Approximate Expected FY’19 Revenue • Expect strong cash flow to facilitate long-term flexibility to pursue growth ambiti
Slide 9: Expected Strong Cash Flow and Financial Return Profile
Expected Strong Cash Flow and Financial Return Profile • Strength of cash flow supports long-term value creation opportunity and deleveraging with flexibility to pursue long-term capital allocation priorities Typical Days Sales Outstanding (DSOs) Normalized EBITDA-to-Free Cash Flow Conversion3 • Cap
Slide 10: Spinning Management Services from a Position of Strength
Spinning Management Services from a Position of Strength • The business is distinguished among government services peers with a record $20 billion backlog Estimated MS Revenue in Backlog by Year of Expected Recognition4 • Wins over the past two years have substantially increased our visibility, incl
Slide 11: Reaffirming AECOM's Fiscal 2019 Guidance
Reaffirming AECOM’s Fiscal 2019 Guidance • Strong first half fiscal 2019 financial results provide us with confidence in achieving our full year guidance $960 $920 $881 – $61 billion backlog following six consecutive quarters of wins in excess of $6 billion $837 – 1.4 book-to-burn ratio over the pas
Slide 12: Randy Wotring, Chief Operating Officer
Randy Wotring Chief Operating Officer FORT RUCKER United States Executing a nine-year contract to provide rotary wing flight training instructor support services for the U.S. Army.
Slide 13: Management Services Holds Scale and Considerable Competitive Advantages
Management Advantages Services Holds Scale and Considerable Competitive • Strong performance record – excellent reputation (mission focus) Government Services CY’19E Revenue6 • Innovations and efficiencies implemented through continuous process improvement $12 $9 • Agility to adapt to a changing bus
Slide 14: Strategy to Capitalize on Substantial Market Opportunities
Strategy to Capitalize on Substantial Market Opportunities Strong Outlook for Sustained U.S. Federal Spending: • Maintain high win rate on recompetes, pursue Operational Excellence, Culture of Safety & Ethics $717B • Leverage advancements in technology to create a compelling differentiated value pro
Slide 15: Appendix
Appendix DELTA JET ENGINE TEST CELL FACILITY United States The new state-of-the-art test cell is the world’s largest and the first cell built by a U.S. airline in more than 20 years.
Slide 16: Footnotes
Footnotes 1 Excluding acquisition and integration related items, transaction-related expenses, financing charges in interest expense, foreign exchange gains, the amortization of intangible assets, financial impacts associated with expected and actual dispositions of non-core businesses and assets, r
Slide 17: Regulation G Information
Regulation G Information Twelve Months Ended Sep 30, 2017 Sep 30, 2018 Reconciliation of Net Income Attributable to AECOM to EBITDA and to Adjusted EBITDA Three Months Ended Reconciliation of Segment Income from Mar 31, 2018 Dec 31, 2018 Mar 31, 2019 Operations to Adjusted Income from Operations Net
Slide 18: Regulation G Information
Regulation G Information Press Release Investor Contact: Will Gabrielski Media Contact: Brendan Ranson-Walsh Vice President, Global Communications & Corporate Responsibility 213.996.2367 Brendan.Ranson-Walsh@aecom.com Vice President, Investor Relations 213.593.8208 William.Gabrielski@aecom.com FY19
Slide 19: Regulation G Information
Regulation G Information SAP Net in nas mr Fiscal YeorEnd2019 Cemilons, al gures approximate) GAAP Nat incane Atrotable to AECOM Guldaroe* s202te $358 ‘Adjusted Net Income atbntabe to AECOM Excludes: ‘smortzation ofintanble assets, nt of NCI 359 ‘Accqistion and inegrtion-eete tems G1) Fra reaeucurin