Atkinsrealis Group Inc. · TSX:ATRL
Atkinsrealis — SNC-Lavalin Group — Q4 2014 Earnings Presentation
18 slides from Atkinsrealis's earnings presentation, Mar 5, 2015
Slide 1: Fourth Quarter 2014 Conference Call Notes
FOURTH QUARTER 2014 Conference Call Notes March 5, 2015
Slide 2: Agenda
2 Agenda Forward-looking Statements Denis Jasmin, Vice-President, Investor Relations President and CEO Remarks Robert G. Card, President and Chief Executive Officer Financial Review Alain-Pierre Raynaud, Executive Vice-President and Chief Financial Officer
Slide 3: Forward-looking statements
3 Forward-looking statements Reference in this presentation, and hereafter, to the “Company” or to “SNC-Lavalin” means, as the context may require, SNC-Lavalin Group Inc. and all or some of its subsidiaries or joint arrangements, or SNC-Lavalin Group Inc. or one or more of its subsidiaries or joint
Slide 4: President and CEO Remarks
4 PRESIDENT AND CEO REMARKS ROBERT G. CARD PRESIDENT AND CHIEF EXECUTIVE OFFICER
Slide 5: Financial Review
5 FINANCIAL REVIEW ALAIN-PIERRE RAYNAUD, EXECUTIVE VICE-PRESIDENT AND CHIEF FINANCIAL OFFICER
Slide 6: Consolidated Income Statement
6 Consolidated Income Statement (in millions CAD$) Fourth Quarter Twelve months ended Dec. 31 2014 2013 2014 2013 Revenues Services 1,030.4 697.1 2,815.8 2,697.6 Packages 1,244.3 833.1 3,205.5 3,113.4 Operations and Maintenance (O&M) 342.6 338.2 1,313.4 1,338.3 Infrastructure Concession Investments
Slide 7: Net income adjusted
7 Net income adjusted (in millions CAD$ except per share amount) 2014 Other adjustments to reconcile Charges related to the Acquisition of Kentz Adjusted Other restructuring to 2014 guidance Net gain on Net gain on restructuring Net net Net income, costs, recorded Net gain on Altalink other ICI and
Slide 8: Revenues by Segment
8 Revenues by Segment (in millions CAD$) 2014 2013 Power 16 % Power 20 % REW 35% O&G Kentz Power Power REW 29 % E&W 1,278.6 1,350.3 144.7 555.8 1,570.3 O&G 7 % 451.5 16 % 16 % 2% E&W 135.7 M&M 1,619.8 20 % 135 7 5% 2% 20 % 22 % 12 % 1,833.4 I&C 24 % 971.8 10 % M&M 11 % 17 % 16 % 1,920.4 763.8 I&C 90
Slide 9: Revenues by geographic areas
9 Revenues by geographic areas (in millions CAD$) 2014 2013 Africa Africa Asia Pacific & other regions United States Asia Pacific & other regions United States 6% Middle East Latin America 5% 5% 6% Middle East 7% 7% 10% 2% Latin America 4% 7% Europe p 8% Europe 7% 60% 66% Canada Canada
Slide 10: Annual Gross Margin
10 Annual Gross Margin (in millions CA$) 2014 2013 650 639.9 600 554.0 550 500 464.9 450 406.8 400 350 300 250 223.4 200 150 100 70.7 77.1 50 19.8 0 GM % 14.4% 20.5% 7.0% 0.6% 5.4% 5.8% 70.8% 60.9% Services Packages O&M ICI
Slide 11: SG&A by Quarter
11 SG&A by Quarter (in millions CAD$) Kentz SG&A 250 242.0 228.7 225.1 207.1 208.3 204.3 49.5 200 186.8 18.3 175.7 150 100 186.0 192.5 50 0 Q1 Q1 Q2 Q2 Q3 Q3 Q4 Q4 2014 2013 2014 2013 2014 2013 2014 2013 Total 2014 : 841.4 Total 2013 : 836.6 8% YTD decrease excl. Kentz
Slide 12: Net financial expenses
12 Net financial expenses (in millions CAD$) 2014 2013 From ICI From E&C Total From ICI From E&C Total Financial Income (16.2) (6.6) (22.8) (6.3) (6.6) (12.9) Interest on debt: Recourse - 59 2 59.2 59 2 59.2 - 21 9 21.9 21 9 21.9 Non-Recourse: Altalink 178.2 - 178.2 124.9 - 124.9 Other 25.1 - 25.1 7
Slide 13: Adjusted EBIT by segment
13 Adjusted EBIT by segment (in millions CAD$) 2014 2013 SEGMENT EBIT OVER SEGMENT ADJUSTED EBIT SEGMENT ADJUSTED EBIT REVENUES REVENUES EBIT REVENUES ADJUSTED EBIT OVER REVENUES ADJUSTED EBIT OVER REVENUES Resources, Environment and Water Mining & Metallurgy 971.8 (4.7) -0.5% 39.4 4.1% 1,619.8 65.9
Slide 14: Revenue Backlog by Activity
14 Revenue Backlog by Activity (in billions CAD$) 14.0 12.3 12.5 12.0 1.9 2.1 O&M 10.0 Packages Services 8.3 8.0 4.4 4.6 2.2 22 6.0 Kentz 1.3 Kentz 1.5 4.0 1.4 4.5 1.4 2.0 Kentz 3.3 Kentz 2.9 1.6 0.0 December September December 2014 2014 2013 Main challenging projects in revenue Backlog now represen
Slide 15: Financial Position
15 Financial Position (in millions CAD$) December 31 December 31 2014 2013 Assets Cash and cash equivalents 1,702 1,109 Other current assets 3,349 2,807 Property and equipment : From ICI - 5,132 From E&C 246 180 ICI accounted for by the equity or cost methods 803 876 Goodwill 370 577 Goodwill relate
Slide 16: Cash Flow – 2014
16 Cash Flow – 2014 (in millions CAD$) 3,500 -355 3,000 2,500 -1,763 2,000 3,253 98 1,500 494 458 1,000 -1,592 1,702 500 1,109 0 Cash and EBITDA Net change Acquisition of Net cash Interest Kentz Others Cash and From E&C cash in non-cash property and inflow from and income purchase cash (-271 M) equi
Slide 17: Outlook 2015
17 Outlook 2015 2015 adjusted EPS from E&C guidance is expected to be in the range of $1.30 to $1.60 Adjusted EPS guidance excludes: Charges related to restructuring and right-sizing plan (~ $60 M after taxes) Amortization of intangible g assets and acquisition q and integration g costs incurred in
Slide 18: WE CARE
WE CARE embodies SNC-Lavalin’s key corporate values and beliefs. It is the cornerstone of everything we do as a company. Health and safety, employees, the environment, communities and quality: these values all influence the decisions we make every day. And importantly, they guide us in how we serve