Aecon Group Inc. · TSX:ARE
Aecon — Investor Presentation (November 2011)
22 slides from Aecon's investor presentation, Nov 8, 2011
Slide 1: Building Things That Matter
Building Things That Matter INVESTOR RELATIONS PRESENTATION NOVEMBER 8, 2011
Slide 2: Forward Looking Information
Forward Looking Information The information in this presentation includes certain forward-looking statements. These forward-looking statements are based on currently available competitive, financial and economic data and operating plans but are subject to risks and uncertainties. In addition to gene
Slide 3: Company Snapshot: Key Facts and Share Data
Forward Looking Information Revenue (TTM)* $2.9 billion One Year Share Price Performance Backlog * $2.2 billion Market Capitalization $532 million 52 Week Range $6 62 - $10.63 $6.62 $10 63 Shares Outstanding * 53.2 million Avg Daily Volume (3 months) Avg. 195 883 195,883 Quarterly Dividend $0.05 / s
Slide 4: Company History and Acquisitions
C.A. Pitts General Contractor Ltd. is founded in Toronto Miwel Ci Li is in Or Foundation acquires Jackson-Lewis Prefac acquires Armbro Construction IsTis is founded in Matheson, Ontario Prefac Concrete is incorporated in Montreal Cliffside Pipelayers founded in Toronto acquires Adam Clark Company Li
Slide 5: Aecon: Scale, Growth and Diversification
Aecon: Scale, Growth and Diversification Scale: A Leader in our Chosen Markets Top Three Contractors in Canada (largest publicly traded) • and ranked as one of Canada’s best employers Among Canada’s leaders in: • Civil construction / Mining • Industrial Ind strial constr construction ction • Mechani
Slide 6: Rather than place images on a slide with text, how about a slide of
Rather than place images on a slide with text, how about a slide of a full bleed image that relates to the previous slide. We could place a stat on it that relates to the previous slide, which is consistent with the annual report, new magazine, and corporate brochure.
Slide 7: Growth: An ongoing record of strong growth
Aecon: Scale, Growth and Diversification Growth: An ongoing record of strong growth (millions) (millions) 3 000 3,000 3 000 3,000 2,746 2,525 2,500 2,500 2,261 2,183 2,000 1,877 2,000 1,493 1 500 1,500 1,500 1,113 1,235 1,254 1,000 1,000 786 500 500 0 0 2006 2007 2008 2009 2010 2006 2007 2008 2009 2
Slide 8: Revenue by geography
Aecon: Scale, Growth and Diversification Revenue by geography TTM at Sept 30, 2011 Western Canada – 45% Ontario – 36% Quebec & Eastern Canada – 12% International – 7% 6 // ONE FOCUS. ONE SOLUTION. ONE AECON.
Slide 9: Revenue & EBITDA History
Revenue & EBITDA History ($ millions) 3,500 140 125 117 2,947 3,000 120 2,746 124 2,500 100 2,261 102 77 2,000 1,877 80 REVENUES EBITDA 1,493 1,500 60 1,120 1,113 1,000 34 40 15 500 20 0 0 2005 2006 2007 2008 2009 2010 Q3 2011 TTM 7 // ONE FOCUS. ONE SOLUTION. ONE AECON.
Slide 10: Revenue by sector
Aecon: Scale, Growth and Diversification Revenue by sector TTM at Sept 30, 2011 Transportation Infrastructure – 29% Resource Development – 26% S i l IInfrastructure Social f t t – 16% Urban Infrastructure – 16% Power Generation and Other – 13% ONE AECON Diverse capabilities – One integrated solution
Slide 11: Transportation and Social Infrastructure: Accelerated Investment
Transportation and Social Infrastructure: Accelerated Investment Aging civil infrastructure across Canada • ‘Infrastructure Infrastructure deficit deficit’ more than $100 billion • 80% is past its prime / life expectancy Governmentt commitment G it t to t infrastructure i f t t renewall • Strong pol
Slide 12: Rather than place images on a slide with text, how about a slide of
Rather than place images on a slide with text, how about a slide of a full bleed image that relates to the previous slide. We could place a stat on it that relates to the previous slide, slide which is consistent with the annual report, new magazine, and corporate brochure.
Slide 13: Power Generation in Ontario: Poised for Significant Growth
Power Generation in Ontario: Poised for Significant g Growth ($ Billions) Nuclear– $33 Wind – $14 Conservation – $12 Solar – $9 Transmission – $9 Hydro – $5 Biomass – $4 Gas – $2 … and billions more across Canada Data is an approximation based on Ontario Government’s Long Term Energy Plan, November,
Slide 14: Oil Sands: Powerful Growth
Oil Sands: Powerful Growth • Oil sands production projected to increase by over 90% in the next 10 years • In 10 years, 25% of oil sands production will come from units not yet under construction 5,000 Tot: 4,336 4,500 Tot: 3,882 housands) 4,000 Tot: 3,294 1,361 3,500 722 Tot: 2,806 2 806 91 Barrels
Slide 15: Utilities and Waste/Wastewater: A Bright Future
Utilities and Waste/Wastewater: A Bright g Future Utilities Waste/Wastewater • Stable ongoing relationships Stable, • Municipal underfunding has created • Increasingly conducted through significant demand across Canada supplier-of-choice relationships • Successful alliance in Western Canada with EPC
Slide 16: Reporting Segments
Reporting Segments $ Q3 2011 – TTM (millions) Infrastructure Industrial Concessions Revenue $1,721 $1,154 $98 Op. Profit $37 $(19) $74 Backlog Revenue $1,560 $655 n/a Capabilities ■ Heavy Civil Construction ■ Industrial Construction ■ Domestic and International P3 and Build-Operate- ■ Road Building
Slide 17: Considerable Financial Flexibility
Considerable Financial Flexibility ($ millions) Sept 30, 2011 Dec 31, 2010 Consolidated Consolidated Cash (including restricted cash net of bank indebtedness) 99 309 Total Assets 1,959 2,121 Shareholders Equity 455 452 Non-recourse project debt 188 316 Long term recourse debt 169 180 Convertible Deb
Slide 18: Strong Q3 Backlog
Strong Q3 Backlog Backlog Revenue: $2.2 billion Backlog Duration ($ millions) ($ millions) Industrial Infrastructure > 24 Months $184 $3,000 12 - 24 $2,500 $510 Months $2,000 $1 500 $1,500 $1,000 < 12 Months $500 $0 $1.5 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 '06 06 '06
Slide 19: ARE Share Price vs. Backlog
ARE Share Price vs. Backlog ARE Share Price Backlog $25 $3,000 $2,500 $20 $2,000 $15 $1,500 $10 $1,000 $5 $500 $ $0 $ $0 September-06 September-07 September-08 September-09 September-10 September-11 16 // ONE FOCUS. ONE SOLUTION. ONE AECON.
Slide 20: 2011 Strategic Priority – Drive Margins
2011 Strategic Priority – Drive Margins Focus on execution 1 • • Operational excellence Performance improvement Focus on risk management 2 • • Target jobs where risk is well understood and mitigated Ongoing focus on risk management practices and project audits A client li and d sector orientation i
Slide 21: In Summary…
In Summary… • An industry leader in a growing sector of the Canadian economy • Well diversified operations by region customer and sector region, • Significant management, board and employee holdings • Member of S&P/TSX Composite Index with good trading liquidity • Strong financial fundamentals 18 //
Slide 22: Building Things That Matter
Building Things g That Matter AECON.COM