Aecon Group Inc. · TSX:ARE
Aecon — Investor Presentation (March 2015)
18 slides from Aecon's investor presentation, March 2015
Slide 1: Investor Presentation March 2015
BUILI FOR SUCTESS CON GROUP IC. (TSK:ARE} Investor Presentation March 2015
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 ev
Slide 3: 2014: A Major Step Forward in Aecon's Progress
2014: A MAJOR STEP FORWARD IN AECON'S PROGRESS 10 BECOMING THE CANADIAN LEADER IN LARGE-SCALE, TURKEY PROJECT DELIVERY NeW CONTRACT AWARDS S3.5BN | seutshertensogcm ere YEAR-END Backtos S27 BN Saigon soa RECURRING REVENUE AS % OF TOTAL 2% H Up from 11% since 2010 SUCCESS IN PRE-QUALIFICATION BB” Sis
Slide 4: Record New Contract Awards Combined with Ongoing Strength from Recurring Revenue
RECORD NEW CONTRACT AWARDS COMBINED WITH ONGOING STRENGTH FROM RECURRING REVENUE NEW CONTRACT AWARDS ($MM) % FROM RECURRING REVENUE* TOTAL $2,413 +45% $3,495 TOTAL 11% 26% 26% 7 _ $1,275 oa INFRASTRUCTURE $700 — MINING MINING $472 42% | 42% 2013 2010* 2013 2014 ENERGY INFRASTRUCTURE *Recurring reven
Slide 5: Record Backlog & Increased Visibility
RECORD BACKLOG & INCREASED VISIBILITY TOTAL BACKLOG* ($MM) TOTAL $1.773 —-+50% A@#CON 9% 1 458% ENERGY va $876 44669 $2,654 fame $955 $1,263 a: ni” BACKLOG* DURATION ($MM) TOTAL $1.773 = +50% = =—$2,654 473% $259 “447% - nONTHS | $150 | ae 24 MONTHS ue ait Te... MeO 12 MONTHS $1,087 $1,578 2013 2014
Slide 6: Industry-Leading Pre-Qualification Success in Canada
HrO” RECO nD: ING USTRY-LEADING IN! CANADA 0% SUC PES) HATE $20. 28N = IN 2013/2014, AECON SHORTLISTED ON 22/25 MAJOR PROJECTS UNDER Ard PROCESS FIVE ADDITIONAL RFO'S AWAITING RESULTS *RFQO = Request for Qualification A@CCON QUALIFIED [— Site C Man Camp (P3) BC Site C Civil Works BC Hwy 407 Phase 2
Slide 7: Record Success Rate on Requests for Proposal
RECORD SUCCESS RATE ON REQUESTS FOR PROPOSAL DRIVING RECORD AWARDS, BACKLOG, AND VISIBILITY A070 WIN RATE WON IN 2013/2014, AECO [John Hart Power Station (P3) BC Eglinton LRT Tunnel ON AWARDED SIX MAJOR S2.0BN* 4 Regina wwrP (P3) SK Viva Rapidway BRT ON PROJECTS AFTER New Post Creek ON — Waterloo LR
Slide 8: Record Adjusted EBITDA Margin
RECORD ADJUSTED EBITDA MARGIN GROSS MARGIN % ADJUSTED EBITDA MARGIN % TOTAL 8.8% 9.8% A +1.0% TOTAL 6.0% 6.5% A +0.5% ENERGY 11.0% 10.3% -0.7% ENERGY 7.0% 5.8% -1.2% INFRASTRUCTURE 3.5% 6.6% A 43.1% INFRASTRUCTURE — (0.1%) 2.9% A +3.0% MINING 12.3% 14.0% A 41.7% MINING 10.6% 9.5% -1.1% 2013 2014 201
Slide 9: Successful Transition — Key Drivers
SUCCESSFUL TRANSITION — KEY DRIVERS AECON PLATFORM BUILT ON FOUR KEY PILLARS. . PARTNERSHIPS TURKEY CAPABILITY = Clients, engineers, contractors, First Nations, = % of work from large, multi-faceted projects is unions now 30% - 40% per annum = The sought-after Canadian partner-of-choice = Most verti
Slide 10: Active Project and Client Partnerships
ACTIVE PROJECT AND CLIENT PARTNERSHIPS ACTIVE JV PROJECTS PROVINCE | AECON SHARE CLIENT PARTNERSHIPS John Hart Power Station Waneta Dam Port Mann Tunnel Capilano Tunnels Syncrude - Cogen Plant IPL Pipeline and Stations Anthony Henday Ring Road Regina Wastewater Treatment Plant Waterloo LRT Eglinton
Slide 11: Diversity & Scale — Coast to Coast in Our Key Market Segments
DIVERSITY & SCALE — COAST 10 COAST IN OUR KEY MARKET SEGMENTS ENERGY INFRASTRUCTURE MINING CONCESSIONS We Jd/0. We NUCLEAR RAIL & TRANSIT MINE SITE DEVELOPMENT | PUBLIC PRIVATE OIL & GAS STATIONS OVERBURDEN REMOVAL & PARTNERSHIPS (3s) PIPELINES ROADS, BRIDGES, TUNNELS RECLAMATION PADJECT DEVELOPMENT
Slide 12: Energy segment: Revenue $1.3 BN, Adj. EBITDA Margin 5.8%
Revenue - $1.3 BN New Contract Awards Recurring Revenue % of Segment Year-End Backlog Adj. EBITDA Margin – 5.8% $1,331 $955 20% 30% 30% 33% 2014 $1,275 $876 48% 2013 2014 2013 2014 2013 2014 12
Slide 13: Infrastructure segment: Revenue $0.9 BN, Adj. EBITDA Margin 2.9%
Revenue - $0.9 BN New Contract Awards Recurring Revenue % of Segment Year-End Backlog Adj. EBITDA Margin – 2.9% $1,314 $1,263 20% 10% 33% $700 7% $820 2014 47% 2013 2014 2013 2014 2013 2014 13
Slide 14: Mining segment: Revenue $0.5 BN, Adj. EBITDA Margin 9.5%
Revenue - $0.5 BN New Contract Awards Recurring Revenue % of Segment Year-End Backlog Adj. EBITDA Margin – 9.5% $875 $436 19% 42% 42% 33% $472 2014 $77 47% 2013 2014 2013 2014 2013 2014 14
Slide 15: Ongoing Progress and Future Growth Supported by Strong Cash Flow and Balance Sheet
ONGOING PROGRESS AND FUTURE GROWTH SUPPORTED BY STRONG CASH FLOW AND BALANCE SHEET FREE CASH FLOW (SMM) 2014 2013 Adjusted EBITDA 170.2 184.0 Cash Interest Expense (net) (34.7) (31.1) Capital Expenditures (net) (50.8) (49.9) Restructuring Costs (9.0) - Income Taxes (Paid)/Recovered 0.9 (9.1) Net JV
Slide 16: $11.10 $11.69 $10.27 $9.26 $8.41 2010 2011 2012 2013 2014 $0.40* $0.36 $0.32 $0.28
$11.10 $11.69 $10.27 $9.26 $8.41 2010 2011 2012 2013 2014 $0.40* $0.36 $0.32 $0.28 $0.20 $0.14 $0.00 2006 2007 2008-11 2012 2013 2014 2015 16
Slide 17: A Business Transformed...
A BUSINESS TRANSFORMED. . . In 2014, Aecon had a record year securing work and improving margins in line with our strategy to become the Canadian leader in large-scale, turnkey project delivery. A@CCON _.. PROVIDING A PLATFORM FOR GROWTH Our progress to date and ability to leverage partnerships, rep
Slide 18: March 2015
BUILI FOR SUCTESS CON GROUP IC. (TSK:ARE} Investor Presentation March 2015