Atkinsrealis Group Inc. · TSX:ATRL
Atkinsrealis — SNC-Lavalin Group — Q2 2011 Earnings Presentation
16 slides from Atkinsrealis's earnings presentation, Aug 5, 2011
Slide 1: Second Quarter 2011 Conference Call Notes
SECOND QUARTER 2011 Conference Call Notes August 5, 2011
Slide 2: Agenda
2 Agenda Forward-looking Statements Denis Jasmin, Vice-President, Investor Relations Highlights and Outlook Pierre Duhaime, President and Chief Executive Officer Financial Review Gilles Laramée, Executive Vice-President and Chief Financial Officer
Slide 3: Forward-looking statements
3 Forward-looking statements Unless otherwise indicated, all dollar amounts are expressed in Canadian dollars. Statements made in this presentation that describe the Company’s or management’s budgets, estimates, expectations, forecasts, objectives, predictions or projections of the future may be “fo
Slide 4: Financial highlights: Q2 2011 vs Q2 2010
4 Financial highlights Q2 2011 vs Q2 2010 Net income = $100.7 million for Q2 2011 vs $119.1 million for Q2 2010, reflecting: • Net income excluding ICI = $59.0 million vs $74.8 million Infrastructure & Environment o Lower Packages GM ratio o Additional costs from the Libyan events All other segments
Slide 5: Financial highlights: YTD 2011 vs YTD 2010
5 Financial highlights YTD 2011 vs YTD 2010 Net income = $174.6 million for 2011 vs $203.3 million for 2010, reflecting: • Net income excluding ICI = $108.5 million vs $139.4 million Infrastructure & Environment o Impact of the Libyan events o Favourable cost reforecasts on major Packages projects i
Slide 6: Financial highlights (cont'd)
6 Financial highlights (cont’d) Revenues for YTD 2011 increased by 24.0% to $3.3 billion vs $2.7 billion for YTD 2010 in all segments of activity and in all revenue categories (especially Packages, 54.7% increase) Financial position remained solid • Cash and cash equivalents = $1.1 billion at June 3
Slide 7: AECL Acquisition
7 AECL Acquisition CANDU Energy (a wholly-owned subsidiary of SNC-Lavalin) agreed with the Government of Canada to acquire certain assets of AECL’s commercial reactor division for a purchase price of $15 million and royalty payments from future new build and life extension projects. AECL will retain
Slide 8: Worldwide opportunities
8 Worldwide opportunities Infrastructure & Worldwide Environment: Airports, buildings, hospitals, mass transit systems and roads Power: Worldwide Hydro, thermal power, transmission & distribution, nuclear Chemicals & Petroleum: Canada, Middle East and South America Mining & Metallurgy: Worldwide Alu
Slide 9: Financial Review
9 Financial Review Gilles Laramée, Executive Vice-President and Chief Financial Officer
Slide 10: Consolidated income statement
10 Consolidated income statement (in millions of $) Second Six months ended Quarter June 30 2011 2010 2011 2010 Revenues by activity: Services 564.4 501.6 1,044.5 958.8 Packages 692.0 471.6 1,324.1 855.7 Operations & Maintenance 281.7 255.7 708.5 638.8 Infrastructure Concession Investments (ICI) 128
Slide 11: Revenues and operating income by segment
11 Revenues and operating income by segment Six Months Ended June 30 (in millions of $) 2011 2010 Operating Operating Revenues Income Revenues Income Services and Packages Infrastructure & Environment 887.5 15.9 743.6 99.4 Chemicals & Petroleum 574.7 37.6 432.3 22.2 Mining & Metallurgy 410.8 16.5 31
Slide 12: Financial position
12 Financial position (in millions of $) June 30, December 31, 2011 2010 Assets Cash and cash equivalents 1,111.4 1,235.1 Other current assets 2,419.3 2,328.7 Property and equipment: From infrastructure concession investments 2,266.2 2,072.8 From other activities 127.9 115.2 Goodwill 556.9 542.0 Inf
Slide 13: Revenue backlog by category of activity
13 Revenue backlog by category of activity June March December (in millions of $) 2011 2011 2010 Services 1,679.9 1,396.0 1,410.7 Packages 5,319.4 5,544.5 5,556.0 Operations & Maintenance 2,343.5 2,429.2 2,732.8 Total Revenue Backlog 9,342.8 9,369.7 9,699.5
Slide 14: Services and Packages revenue backlog by segment
14 Services and Packages revenue backlog by segment At June 30 At December 31 (in millions of $) 2011 2010 Services Packages Services Packages Services and Packages Infrastructure & Environment 612.8 2,379.2 665.1 2,820.6 Chemicals & Petroleum 282.8 561.2 165.8 907.4 Mining & Metallurgy 468.6 116.4
Slide 15: Peer group comparison
15 Peer group comparison R.O.E. (1) P/E (2) To be comparable to our peers, SLI’s P/E needs to be adjusted by SNC-Lavalin 25.1% 13.5 (3) removing from SLI’s price and Fluor 9.9% 27.6 earnings SLI’s ICIs. Foster Wheeler 12.2% 17.5 Jacobs Engineering 9.9% 15.1 Shaw Group -6.7% n/a Technip 14.8% 16.6 UR
Slide 16: If you have further questions, please contact
16 If you have further questions, please contact: Denis Jasmin tel: (514) 393-1000, ext. # 7553 E-mail: denis.jasmin@snclavalin.com Replay of conference call: Investor Relations section of website: www.snclavalin.com