Slide 1: Aecon Group Inc. Q3 2018 Results Presentation
AECON GROUP INC. (TSX:ARE) Q3 2018 RESULTS PRESENTATION OCTOBER 26, 2018
Slide 2: Forward-Looking Information
Forward-Looking Information The information in this presentation includes certain forward-looking statements. Although these forward-looking statements are based on currently available competitive, financial and economic data and operating plans, they are subject to risks and uncertainties. In addit
Slide 3: Resilient Business Model with Three Diverse Segments
Resilient Business Model with Three Diverse Segments INFRASTRUCTURE INDUSTRIAL^ CONCESSIONS 37%* 57%* 6%* Rail & Transit Nuclear Project Development Roads, Bridges and Tunnels Gas Pipelines & Stations Public-Private Partnerships Hydroelectric Power Generation & Renewables Project Finance Water Treat
Slide 4: Q3 2018 Financial Results - Reported
Q3 2018 Financial Results - Reported $ Millions Three Months Ended Trailing Twelve Months Ended (except EPS, $ per share) Sep 30* Sep 30* 2018 2017 Change+ 2018 2017 Change+ Revenue 1,020 760 34% 3,003 2,966 1% Gross Profit 125.1 99.3 26% 348.6 323.4 8% Gross Margin % 12.3% 13.1% 80bps 11.6% 10.9% 7
Slide 5: Q3 2018 Financial Results – Adjusted
Q3 2018 Financial Results – Adjusted $ Millions Three Months Ended Trailing Twelve Months Ended (except EPS, $ per share) Sep 30* Sep 30* 2018 2017 Change+ 2018 2017 Change+ Revenue 1,020 760 34% 3,003 2,966 1% Gross Profit 125.1 99.3 26% 348.6 323.4 8% Gross Margin % 12.3% 13.1% 80bps 11.6% 10.9% 7
Slide 6: Q3 2018 TTM Reconciliation
Q3 2018 TTM Reconciliation On a pro-forma basis reflecting the adjustments above Q3 2018 TTM Earnings per share (Diluted) would have increased to $0.98 from $0.83 ^ See notes on slide 5 for detail of one-time adjustments to results
Slide 7: Revenue and Adj. EBITDA Margin by Segment
Revenue and Adj. EBITDA Margin by Segment * * * * * * ^ See slide 6 for Q3 2018 TTM Reconciliation, and notes on slide 5 for detail of one-time adjustments to results * Also includes Concessions and inter segment eliminations
Slide 8: Infrastructure Q3 2018 Results
Infrastructure Q3 2018 Results THIRD QUARTER* TRAILING TWELVE MONTHS* Revenue ($M) Revenue up by $128M, or 41%, year-over-year Revenue ($M) +41% $440 $65M in major projects east due to increased activity on light rail $1,173 +20% transit projects and the Bermuda Airport project $979 $312 $40M in maj
Slide 9: Industrial Q3 2018 Results
Industrial Q3 2018 Results THIRD QUARTER* TRAILING TWELVE MONTHS* Revenue ($M) Revenue up by $129M, or 30%, year-over-year Revenue ($M) $566 -9% +30% $90M in contract mining and field construction projects in Western $437 $1,974 Canada $1,797 $63M in utilities due to increased gas and electricity di
Slide 10: Concessions Q3 2018 Results
Concessions Q3 2018 Results Revenue up by $38M period-over-period Higher construction activities from Bermuda International Airport Redevelopment Project $43M of construction revenue related to Bermuda is eliminated on consolidation in the quarter Adjusted EBITDA up $4.4M period-over-period In
Slide 11: Record Backlog with Growing Recurring Revenue
Record Backlog with Growing Recurring Revenue * Recurring Revenue is not included in backlog and is, therefore, revenue over and above work to be performed from contracts in backlog
Slide 12: Balance Sheet and Capital Structure
Balance Sheet and Capital Structure BALANCE SHEET ($M) DEBT TO ADJUSTED EBITDA*^+ 3.0x Sep 30, 2.7x 2018 2.5x 2.3x** Cash^ 695.9 1.9x 2.0x 2.0x 2.0x 2.0x Working Capital 22.4 1.5x 1.2x Long-Term Debt 1.0x 1.0x 0.9x 0.9x - Finance Leases 76.4 0.5x 0.6x 0.5x - Equipment & Other Asset Loans 46.3 0.3x 0
Slide 13: Cash Position
Cash Position FREE CASH FLOW ($M) KEY DRIVERS FOR FREE CASH FLOW MOMENTUM Q3 2018 Y/E TTM 2017 Working capital improvement in 2018 YTD due to significant advance payments on a number of new Adjusted EBITDA 192.5 156.5 major projects Cash Interest Expense (net) (40.6) (22.7) Cash interest up due to i
Slide 14: Outlook
Outlook Revenue and Adjusted EBITDA Growth Expected through 2019 and Beyond $7.0 billion backlog at Sep 30, 2018 with a robust pipeline of opportunities ahead Subsequent to quarter end, Coastal GasLink Pipeline project ($526 million) was awarded to a 50/50 Aecon JV Infrastructure bidding activ
Slide 15: Investor Relations Contacts
ADAM BORGATTI PARAG DATTA Senior Vice President, Director, Corporate Development & Corporate Development & Investor Relations Investor Relations 416.297.2610 | aborgatti@aecon.com 416.297.2600 x3724 | pdatta@aecon.com VANCOUVER CALGARY TORONTO MONTRÉAL 1055 Dunsmuir Street, Suite 2124 110-9th Avenue