Stella-jones Inc. · TSX:SJ
Stella-jones — Shareholder Meeting (May 2025)
31 slides from Stella-jones's shareholder meeting presentation, May 7, 2025
Slide 1: Safety Instructions
Safety Instructions
Slide 2: Annual Meeting of Shareholders
May 7, 2025 Annual Meeting of Shareholders
Slide 3: Agenda
AGENDA • Opening of the Meeting • Chair, Secretary and Scrutineers • Notice of Meeting • Scrutineer’s Report • Voting • Annual Report & Independent Auditor’s Report • Election of the Directors • Appointment of Auditors • Say on Pay • Closing of the Votes • Termination of the Formal Portion of the Me
Slide 4: Members of Management
MEMBERS OF MANAGEMENT Eric Vachon, CPA Silvana Travaglini, CPA Marla Eichenbaum President & Senior Vice-President & Vice-President, General Chief Executive Officer Chief Financial Officer Counsel & Secretary 4
Slide 5: Nominated Non-Executive Directors
NOMINATED NON-EXECUTIVE DIRECTORS Michelle Banik Robert Coallier Anne E. Giardini Karen Laflamme Katherine A. Lehman Simon Pelletier Douglas Muzyka 5
Slide 6: Welcoming Wesley Bourland
WELCOMING WESLEY BOURLAND Senior Vice-President & Chief Operating Officer 6
Slide 7: Caution Regarding Forward Looking Information & Non-GAAP Measures
CAUTION REGARDING FORWARD LOOKING INFORMATION & NON-GAAP MEASURES This presentation contains certain statements that are forward-looking, including comments with respect to the Company's objectives, strategies, targets and expectations. The reader is cautioned not to place undue reliance on these st
Slide 8: Katherine A. Lehman, Chair of the Board
Katherine A. Lehman Chair of the Board 8
Slide 9: Sound Governance Through Continuous Improvement
SOUND GOVERNANCE THROUGH CONTINUOUS IMPROVEMENT Continued to Refine Corporate Governance Strategies Through: • Application of Share Ownership Guidelines • Introduction of Committee Chair Rotation Policy • Revision of Board Skills Matrix • Dedicated Crisis Management Planning Training • Strengthened
Slide 10: Agenda
AGENDA • Opening of the Meeting • Chair, Secretary and Scrutineers • Notice of Meeting • Scrutineer’s Report • Voting • Annual Report & Independent Auditor’s Report • Election of the Directors • Appointment of Auditors • Say on Pay • Closing of the Votes • Termination of the Formal Portion of the Me
Slide 11: Election of the Directors
ELECTION OF THE DIRECTORS Michelle Banik Robert Coallier Anne E. Giardini Karen Laflamme Katherine A. Lehman Douglas Muzyka Simon Pelletier Eric Vachon, CPA 11
Slide 12: Agenda
AGENDA • Opening of the Meeting • Chair, Secretary and Scrutineers • Notice of Meeting • Scrutineer’s Report • Voting • Annual Report & Independent Auditor’s Report • Election of the Directors • Appointment of Auditors • Say on Pay • Closing of the Votes • Termination of the Formal Portion of the Me
Slide 13: Eric Vachon, President & Chief Executive Officer
Eric Vachon President & Chief Executive Officer 13
Slide 14: 2024 Overview
2024 OVERVIEW Utility Poles Broadened customer base and secured • Achieved 24th consecutive year of new long-term contracts sales growth • Generated $3.5 billion in sales; EBITDA margin1 of >18% Railway Ties • Maintained Prudent Capital Enhanced capacity and optimized Allocation Strategy operations
Slide 15: Continued Focus on Sustainability
CONTINUED FOCUS ON SUSTAINABILITY Sustainability is Foundational to a Healthy and Enduring Organization: • Progress made on Greenhouse Gas emissions reduction • Finalized second solar panel installation in Cameron, Wisconsin • Important inroads in collaboration with Indigenous Peoples and responsibl
Slide 16: Emphasis on Health & Safety
EMPHASIS ON HEALTH & SAFETY SAFETY, HEALTH, IMPROVED ENVIRONMENT, LEADING OUR DECISIONS Bangor, Wisconsin Delight, Arkansas Gatineau, Quebec Kirkland Lake, Ontario Montevallo, Alabama Nakusp, British Columbia Peterborough, Ontario Silver Springs, Nevada Wilbur, Oregon
Slide 17: Growing into Steel with Acquisition of Locweld
GROWING INTO STEEL WITH ACQUISITION OF LOCWELD • Locweld is a leading manufacturer of steel electrical transmission lattice towers and steel transmission poles • Based in Candiac, Quebec, with over 75 years of experience and more than 220 employees • Entry into the steel structures space to better s
Slide 18: Locweld B-Roll Video
[LOCWELD B-ROLL INSERT VIDEO] 18
Slide 19: A Seasoned Management Team
A SEASONED MANAGEMENT TEAM Pierre Lavoie Terry Gilliland Deanne Cyr General Manager Director, Operations Director, Sales & Estimation 19
Slide 20: Growing into Steel with Acquisition of Locweld
GROWING INTO STEEL WITH ACQUISITION OF LOCWELD • Locweld is a leading manufacturer of steel electrical transmission lattice towers and steel transmission poles • Based in Candiac, Quebec, with over 75 years of experience and more than 220 employees • Entry into the steel structures space to better s
Slide 21: Addressable North American Transmission and Distribution Market
ADDRESSABLE NORTH AMERICAN TRANSMISSION AND DISTRIBUTION MARKET Opportunity for Stella-Jones to capitalize on growing Transmission & Distribution market, underpinned by a combination of maintenance-driven demand and new projects. TRANSMISSION ADDRESSABLE MARKET DISTRIBUTION ADDRESSABLE MARKET $5.7B
Slide 22: Silvana Travaglini, Senior Vice-President & Chief Financial Officer
Silvana Travaglini Senior Vice-President & Chief Financial Officer 22
Slide 23: 2024 Financial Results
2024 FINANCIAL RESULTS 2024 2023 (in millions of Canadian dollars, except per share data and margins) Sales 3,469 3,319 Gross profit(1) 724 688 Gross profit margin(1) 20.9% 20.7% Operating income 503 499 Operating income margin(1) 14.5% 15.0% EBITDA(1) 633 608 EBITDA margin(1) 18.2% 18.3% Net income
Slide 24: Maintaining a Strong Financial Position in 2024
MAINTAINING A STRONG FINANCIAL POSITION IN 2024 $408M 2024 Operating Cashflow New NCIB Return to Inaugural Program Shareholders $400M, 7-Year Commitment Senior Notes $802M • 2.5M shares • Ongoing share • Reflects confidence in authorized repurchases business fundamentals and Available Liquidity • Re
Slide 25: Q1 2025 Financial Performance
Q1 2025 FINANCIAL PERFORMANCE (in millions of Canadian dollars, except per share data and margins) Q1-25 Q1-24 Sales 773 775 Gross Profit(1) 168 172 Gross Profit margin(1) 21.7% 22.2% Operating income 143 124 Operating income margin(1) 18.5% 16.0% EBITDA(1) 179 156 EBITDA Margin(1) 23.2% 20.1% Net i
Slide 26: Disciplined Capital Allocation Strategy
DISCIPLINED CAPITAL ALLOCATION STRATEGY $380M Investment-grade capital allocation strategy allows pursuit of growth Returned to opportunities while returning capital to shareholders. Shareholders out of $500 M committed As at March 31, 2025 Return to Strategic NCIB Program $691M Shareholders Commitm
Slide 27: Eric Vachon, President & Chief Executive Officer
Eric Vachon President & Chief Executive Officer 27
Slide 28: The Backbone of Solid Infrastructures, for Stronger Communities
THE BACKBONE OF SOLID INFRASTRUCTURES, FOR STRONGER COMMUNITIES
Slide 29: Agenda
AGENDA • Opening of the Meeting • Chair, Secretary and Scrutineers • Notice of Meeting • Scrutineer’s Report • Voting • Annual Report & Independent Auditor’s Report • Election of the Directors • Appointment of Auditors • Say on Pay • Closing of the Votes • Termination of the Formal Portion of the Me
Slide 30: www.stella-jones.com
www.stella-jones.com Stella-Jones Stella-Jones Stella-Jones
Slide 31: Addressable North American Transmission and Distribution Market
ADDRESSABLE NORTH AMERICAN TRANSMISSION AND DISTRIBUTION MARKET Opportunity for Stella-Jones to capitalize on growing Transmission & Distribution market, underpinned by a combination of maintenance-driven demand and new projects. TRANSMISSION ADDRESSABLE MARKET DISTRIBUTION ADDRESSABLE MARKET $5.7B