Slide 1: Fourth Quarter F2022 Earnings Presentation
Fourth Quarter F2022 Earnings Presentation May 19, 2022
Slide 2: Forward-Looking Statements
Forward-Looking Statements Notice to Reader: This presentation and the oral statements made during this call contain certain statements that constitute forward-looking information within the meaning of applicable securities laws ("forward-looking statements"). Forward-looking statements include all
Slide 3: Non-IFRS and Other Financial Measures
Non-IFRS and Other Financial Measures Throughout this presentation management uses certain non-IFRS measures, non-IFRS ratios and supplementary financial measures to evaluate the performance of the Company. The terms “EBITDA”, “organic revenue”, “adjusted net income”, “adjusted earnings from operati
Slide 4: Fourth Quarter Highlights
Fourth Quarter Highlights ▪ ATS continued to execute well in a challenging environment ▪ Order Bookings¹ (up 38% y/y) ▪ Revenues up 51% y/y driven by recent acquisitions and organic revenue growth1 in Life Sciences ▪ Adj. Operating Margin¹ 14.2% (up 183 bps y/y) driven by improved cost structure, st
Slide 5: Our Value Drivers
Our 8 Value Drivers Financial EBIT Working Bookings Revenue Capital Margin Customer People On-Time Internal Fill Employee Quality Delivery Rate Turnover Continuous Improvement 5
Slide 6: Outlook
Outlook ▪ Order Backlog¹ (up 24% y/y) provides good future revenue visibility ▪ Life Sciences healthy across medical devices, pharma and radiopharma ▪ EV acceleration of OEM investment plans, ATS positioning in battery assembly ▪ Food & Beverage Order Bookings across processing and packaging ▪ Consu
Slide 7: ATS Business Model
ATS Business Model STRENGTHEN OUR DELIVER GROWTH PURSUIT OF CORE EXCELLENCE Customer Customer Long Term First Success Value Performance Organization/Talent Strategic Planning Management Development Process Goal Deployment Value Drivers Monthly Business Reviews Continuous KPI’s Improvement Daily Annu
Slide 8: Expanding Our Presence
Expanding Our Presence Attractive Markets Barriers to Entry: Market Dynamics: ▪ Regulated environments ▪ Life Sciences: demographics, new treatments, Life Sciences Food ▪ Technologically intense new ailments, disposables ▪ Complex processes ▪ Food: government regs, quality, demographics ▪ Quality cr
Slide 9: Order Bookings
Order Bookings Quarterly Order Bookings1 LTM Order Bookings1,2 Figures in Millions of Canadian dollars Figures in Millions of Canadian dollars $671 $2,456 $637 $638 $2,281 $1,938 $2,045 $510 $435 $463 $1,626 $1,519 Q3-F21 Q4-F21 Q1-F22 Q2-F22 Q3-F22 Q4-F22 Q3-F21 Q4-F21 Q1-F22 Q2-F22 Q3-F22 Q4-F22 L
Slide 10: Q4 F2022 Financial Results
Q4 F2022 Financial Results (C$ mm, except per share data) Q4 F2022 Q4 F2021 Y/Y Change ($) Y/Y Change (%) Revenues $603.2 $399.9 $203.3 50.8% Earnings from operations 59.8 42.8 17.0 39.7% Revenue Growth: Adjusted earnings from 85.8 49.5 36.3 73.3% Organic 10.5% operations1 EBITDA1 92.3 60.2 32.1 53.
Slide 11: F2022 Financial Results
F2022 Financial Results (C$ mm, except per share data) F2022 F2021 Y/Y Change ($) Y/Y Change (%) Revenues $2,182.7 $1,430.0 $752.7 52.6% Earnings from operations 186.6 119.6 67.0 56.0% Revenue Growth: Adjusted earnings from 292.4 163.2 129.2 79.2% Organic 20.4% operations1 EBITDA1 302.0 190.6 111.4
Slide 12: Revenues by Type
Revenues by Type ▪ As expected, change in mix driven primarily by acquired companies ▪ Higher weighting on product sales provides good balance to our project-based revenues 12
Slide 13: Order Backlog
Order Backlog Order Backlog1,2 Order Backlog1 Energy $1,475 $1,438 7% $1,248 $1,295 Consumer $1,160 15% $985 Life Sciences 51% Food & Beverage 13% Transportation Q3-F21 Q4-F21 Q1-F22 Q2-F22 Q3-F22 Q4-F22 14% 1. See “Appendix: Reconciliation of Non-IFRS Measures to IFRS Measures”; 2. Order Bookings &
Slide 14: Cash Flow Generation
Cash Flow Generation Cash Flow from Operations1 Free Cash Flow1 Figures in Millions of Canadian dollars Figures in Millions of Canadian dollars $216 $163 $185 $154 $39 $30 $26 $14 Q4-F21 Q4-F22 YTD-F21 YTD-F22 Q4-F21 Q4-F22 YTD-F21 YTD-F22 Net Debt to Adj. EBITDA1 2.8x 1.6x 1.6x 0.8x 0.4x -0.1x F201
Slide 15: Summary
Summary ▪ Record revenues and strong Order Bookings ▪ Mitigation efforts via ABM tools in response to challenging business environment ▪ Positive activity levels across end-markets ▪ Integration of acquisitions on track – CFT (March 2021), BioDot (June 2021), NCC (September 2021), SP (November 2021)
Slide 16: Appendix: Reconciliation of Non-IFRS Measures to IFRS Measures
Appendix Reconciliation of Non-IFRS Measures to IFRS Measures 16
Slide 17: Appendix: Reconciliation of Non-IFRS Measures to IFRS Measures
Appendix: Reconciliation of Non-IFRS Measures to IFRS Measures (C$ mm) F2018 F2019 F2020 F2021 F2022 Q4 Q4 (C$) Q4 Q4 YTD YTD F2022 F2021 F2022 F2021 F2022 F2021 Adjusted EBITDA 133.3 161.9 195.1 200.7 343.9 99.1 58.8 Basic earnings per share 0.43 0.26 1.32 0.70 Restructuring charges 11.2 - 26.6 14.
Slide 18: Appendix: Reconciliation of Non-IFRS Measures to IFRS Measures
Appendix: Reconciliation of Non-IFRS Measures to IFRS Measures (C$ mm) Q4 Q4 YTD YTD (C$ mm) F2017 F2018 F2019 F2020 F2021 F2022 F2022 F2021 F2022 F2021 Adjusted earnings from operations 85.8 49.5 292.4 163.2 Cash and cash equivalents 286.7 330.2 224.5 358.6 187.5 135.3 Restructuring charges 1.9 - 5