Aecon Group Inc. · TSX:ARE

Aecon — Investor Presentation (January 2016)

19 slides from Aecon's investor presentation, January 2016

  1. Slide 1: Investor Presentation

    — ba has = i cv — ——— a ‘a — Yo ‘=. [emmee } (joo c=5 — (=>) a. Ld — INVESTOR PRESENTATION

  2. 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

  3. Slide 3: Leader in Construction and Infrastructure Development

    LEADER IN PONSTRUCTION AND INFRASTRUCTURE DEVELOPMENT CANADIAN LEADER ai REVENUE BY SEGMENT" EXPERTISE IN THREE CONSTRUCTIONAND «=F : ald DIVERSE MARKET INFRASTRUCTURE SEGMENTS: ENERGY, DEVELOPMENT * INFRASTRUCTURE AND PROVIDING $3.4 BN RECORD BACKLOG ; wa INTEGRATED TURNKEY ws iN RECURRING REVENUE

  4. Slide 4: Diversity & Scale in Our Key Market Segments

    DIVERSITY & SCALE — COAST 10 COAST IN OUR KEY MARKET SEGMENTS ENERGY INFRASTRUCTURE MINING CONCESSIONS MN 13° NUCLEAR RAIL & TRANSIT MINE SITE DEVELOPMENT PUBLIC PRIVATE UTILITIES STATIONS OVERBURDEN REMOVAL & PARTNERSHIPS (P3s) OIL & GAS ADADS, BRIDGES, TUNNELS RECLAMATION PROJECT DEVELOPMENT PIPEL

  5. Slide 5: Highlights

    03 HIGHLIGHTS SB 75M 03.2015 REVENUES $76.1M apsusteo eBtr0A 6.1% EBITOA MARGIN a) from 03.2014" 8% tromagzoe =| a) 4% points from 03 2014" Awards and Achievements across all segments*: Energy Infrastructure Mining AECON JV AWARDED $146M POWER FINANCIAL CLOSE ACHIEVED ON $5.3BN FIVEVEAR ALBERTA OIL

  6. Slide 6: 2015 Q3, YTD and TTM Results

    2015 03, YTD AND TIM RESULTS 1 $ Millions Three months ended Nine months ended TTM* (except EPS, $ per share) Sept 30 Sept 30 Sept 30 2015 2014 2015 2014 2015 2014 Revenue 874.9 840.4 2,043.8 1,891.8 2,766.0 2,798.1 Gross Profit 108.1 96.2 202.9 173.1 300.8 267.7 Gross Margin % 12.4% 11.4% 9.9% 9.2%

  7. Slide 7: 2015 Q3, YTD and TTM Results (Excluding Quiport & IST)

    2015 O3, YTD AND TTM™ RESULTS (EXCLUDING QUIPORT & IS) $ Millions Three months ended Nine months ended TTM+ Sept 30* Sept 30* Sept 30* 2015 2014 |Change} 2015 2014 |Change} 2015 2014 | Change Revenue 874.9 815.1 |a 7% 2,035.8 | 1,843.3 |a 70% | 2,735.2 | 2,723.6 | 40.4% Adjusted EBITDA 76.1 59.6 | 2

  8. Slide 8: Excluding Impact of Quiport and IST, Margins Have Improved

    EXCLUDING IMPACT OF QUIPORT AND IST, MARGINS HAVE IMPROVED SIGNIFICANTLY WITH STRONG EBITDA PERFORMANCE GROSS MARGIN %* ADJUSTED EBITDA MARGIN %* EXCLUDING QUIPORT & IST EXCLUDING QUIPORT & IST 032014 032015 032014 032015 TOTAL 11.2% 12.4% A +1.2% TOTAL 1.3% 8.7% A +1.4% ENERGY 10.3% 10.5% —& +0.2%

  9. Slide 9: Record Backlog with Strong Position in All Segments

    RECORD BACKLOG WITH STRONG POSITION IN ALL SEGMENTS AND INCREASED VISIBILITY TOTAL BACKLOG* ($MM) BACKLOG* DURATION ($MM) TOTAL $2,667 = +27% $3,394 TOTAL $2,667 +27% $3,394 eee $287 i Ee $763 12 MONTHS $1,617 $1,730 03 2014 03 2015 03 2014 03 2015 “As at 03 2015. Does not include $1.375BN execution

  10. Slide 10: Flexibility in Switching Revenues Between Recurring Work and Hard Backlog

    FLEXIBILITY IN SWITCHING REVENUES BETWEEN RECURRING WORK AND HARD BACKLOG BASED ON STRONG CLIENT RELATIONSHIPS RECURRING REVENUE BY SEGMENT($MM)* New Master Service Agreements (MSA) TOTAL $744 “27% $546 secured and announced in 2015 are ramping up and will increase recurring revenue in 2016. Also pu

  11. Slide 11: • • $130BN • • • •   • $34BN •  •

    • • $130BN • • • •   • $34BN •  • •  • •   11

  12. Slide 12: Record Success Rate on Requests for Proposal

    RECORD SUCCESS RATE ON REQUESTS FOR PROPOSAL DRIVING STRONG BACKLOG, VISIBILITY AND GROWTH - WON SINCE 2013, AECON John Hart Power Station (P3) BC Viva Rapidway BRT ON AWARDED SEVEN MAJOR §] AN*> Regina WWTP (P3) SK Waterloo LRT (P3) ON PROJECTS AFTER PRE: New Post Creek ON Eglinton Crosstown LRT (P

  13. Slide 13: A Leader in Rapid Transit Infrastructure Solutions Across Canada

    A LEADER IN RAPID TRANSIT INFRASTRUCTURE SOLUTIONS ACROSS CANADA WITH A ROBUST PIPELINE ANEAD SPADINA SUBWAY & SHEPPARD WEST STATION AWARDED IN 2010 VALUE: $279M UNION STATION TRAIN SHED REVITALIZATION AWARDED IN 2009 VALUE: $196M EXPRESS VALUE: $129M UNION PEARSON AWARDED IN 2011 oO WATERLOO LRT AW

  14. Slide 14: Energy Segment Q3 2015 TTM

           Revenue – $1.2 BN New Contract Awards Recurring Revenue % Backlog* Adj. EBITDA Margin – 3.9% of Segment $1,278 29% $928 $1,060 28% $758 Q3 2015 44% TTM Q3 2014 Q3 2015 Q3 2014 Q3 2015 Q3 2014 Q3 2015 TTM TTM TTM TTM TTM TTM 14

  15. Slide 15: Infrastructure Segment Q3 2015 TTM

         Revenue – $0.9 BN New Contract Awards Recurring Revenue % Backlog Adj. EBITDA Margin – 4.8% of Segment $1,786 $2,318 11% $1,422 10% $1,436 Q3 2015 TTM 33% Q3 2014 Q3 2015 Q3 2014 Q3 2015 Q3 2014 Q3 2015 TTM TTM TTM TTM TTM TTM 15

  16. Slide 16: Mining Segment Q3 2015 TTM

         Revenue – $0.7 BN New Contract Awards Recurring Revenue % Backlog Adj. EBITDA Margin – 12.6% of Segment $699 $666 50% $303 $318 23% Q3 2015 TTM 15% Q3 2014 Q3 2015 Q3 2014 Q3 2015 Q3 2014 Q3 2015 TTM TTM TTM TTM TTM TTM 16

  17. Slide 17: 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) TIM Y/E Q32015 Dec 2014 Adjusted EBITDA 188.4 170.2 Cash Interest Expense (net) (23.6) (34.7) Capital Expenditures (net) (48.9) (50.8) Sale of subsidiary 25.7 0.0 Restructuring Costs (6.5) (9.0) I

  18. Slide 18: Dividend History

    $0.40* $0.36 $0.32 $0.28 $0.20 $0.14 $0.00 2006 2007 2008-11 2012 2013 2014 2015 18

  19. Slide 19: Aecon Headquarters

    ACCON AECON WEST HEADQUARTERS 110-9th Avenue SW, Suite 300 Calgary, AB T2P 0T1 AECON EAST HEADQUARTERS 20 Carlson Court, Suite 800 Toronto, ON M9W 7K6 aecon.com

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