Bird Construction Inc. · TSX:BDT
Bird Construction — Investor Day (September 2021)
46 slides from Bird Construction's investor day presentation, Sep 9, 2021
Slide 1: Bird Construction Investor Day
Bird Construction Investor Day September 9, 2021
Slide 2: Disclaimer: Forward Looking Information
BIRD CONSTRUCTION INC. INVESTOR DAY – THURSDAY, SEPTEMBER 9, 2021 01 DISCLAIMER: FORWARD LOOKING INFORMATION This presentation contains forward-looking statements and information ("forward-looking statements") within the meaning of applicable Canadian securities laws. The forward-looking statements
Slide 3: Disclaimer: Terminology
BIRD CONSTRUCTION INC. INVESTOR DAY – THURSDAY, SEPTEMBER 9, 2021 02 DISCLAIMER: TERMINOLOGY Throughout this presentation, management uses the following terms that may not be comparable with similar terms presented by other companies and require definition: "Backlog" is the total value of all contra
Slide 4: Disclaimer: Non-GAAP Measures
BIRD CONSTRUCTION INC. INVESTOR DAY – THURSDAY, SEPTEMBER 9, 2021 03 DISCLAIMER: NON-GAAP MEASURES Throughout this presentation, management uses the following terms which have no standardized meaning prescribed by IFRS and are considered non-GAAP measures. The non-GAAP measures used are: Adjusted Ea
Slide 5: Agenda
BIRD CONSTRUCTION INC. INVESTOR DAY |SEPTEMBER 9, 2021 AGENDA 04 COMPANY OVERVIEW AND STRATEGIC PLAN UPDATE BOARD PERSPECTIVE Teri McKibbon, President and CEO Mr. Paul Raboud, Chairman of the Board of Directors OPERATIONS AND STRATEGIC PRIORITIES OVERVIEW FINANCIAL OVERVIEW AND OUTLOOK Gilles Royer,
Slide 6: Building on a Strong Foundation
BUILDING ON A STRONG FOUNDATION 101+ BUILDING YEARS OVERVIEW 05 $2.7B $1.6B $1,901M 5,000+ EMPLOYEES TALENTED RECORD BACKLOG(1) (Q2 ‘21) PENDING BACKLOG (1) (Q2 ‘21) REVENUE (TTM Q2 ‘21) $177.8M $50M $113M $59M GROSS PROFIT NET INCOME ADJUSTED EBITDA(2) ADJUSTED EARNINGS(2) (TTM Q2 ’21) (TTM Q2 ’21)
Slide 7: Strategic Focus
DELIVERING ON OUR STRATEGIC PRIORITIES SOLID OUTLOOK Solid balance sheet and pipeline of opportunities STRATEGIC FOCUS 06 IMPROVING MARGINS Strong financial position with Improving margin profile STRATEGIC PLAN BALANCED STRATEGY Balanced capital allocation including solid M&A strategy TEAM PERFORM D
Slide 8: Operational Leadership Team
OPERATIONAL LEADERSHIP TEAM ~ 92 YEARS of COMBINED EXPERTISE 07 Gilles Royer Rob Otway David Keep CHIEF OPERATING EXECUTIVE VICE PRESIDENT SENIOR VICE PRESIDENT - OFFICER BUILDINGS INDUSTRIAL MRO
Slide 9: Operations Overview
STRENGHTHENING OUR FOUNDATION EXPERIENCED LEADERS OPERATIONS Leveraging our talented leadership team. OVERVIEW GROWING TALENT POOL 08 Deep bench strength and recruiting for the future. LEADING PROCESSES Robust programs supporting continuous learning and development. PRIORITIZING INNOVATION Continuou
Slide 10: Industrial/Civil Infrastructure Overview: Current Footprint
DELIVERING CRITICAL INFRASTRUCTURE TEAM | NATIONAL ALIGNMENT INDUSTRIAL/ CIVIL Promote a collaborative culture; invest in development of frontline supervision. INFRASTRUCTURE OVERVIEW PERFORM | LEVERAGE LATEST TECHNOLOGY 09 Harness technology to create a performance advantage through increased busin
Slide 11: Civil Infrastructure Overview: Current Footprint
DELIVERING CRITICAL INFRASTRUCTURE TEAM | STRONG REPUTATION OVER 80 YEARS CIVIL INFRASTRUCTURE Dagmar joins Bird’s experienced Civil team with a strong reputation for solid execution, dependable operations, and OVERVIEW a safety-oriented culture. PERFORM | EXTENSIVE EXPERIENCE 10 Complex and special
Slide 12: Dagmar Construction Inc. Overview
DELIVERING CRITICAL 80 YEARS STRONG | REPUTABLE | EXPERIENCED |COR CERTIFIED | PROFITABLE | CONSISTENT PIPELINE OF OPPORTUNITIES INFRASTRUCTURE DAGMAR CONSTRUCTION INC. MANAGEMENT OVERVIEW TEAM BRINGS 200+ YEARS of COMBINED 11 EXPERTISE RAIL WORK | Complete Scope Rail General Contractor STRUCTURE |
Slide 13: Commercial Systems Overview: Current Footprint
POWERING OUR DAY-TO-DAY TEAM | PROMOTE SAFETY AND PEOPLE COMMERCIAL SYSTEMS Promote the highest level of safety; develop the field team and build an industry leading management team. OVERVIEW PERFORM | ESTABLISH DESIGN TEAM 12 Establish an internal design team; develop operational excellence with ro
Slide 14: Industrial MRO Overview: Current Footprint
FUELING OUR COMMUNITIES TEAM | STRATEGIC PARTNERSHIPS INDUSTRIAL MRO Capitalize on long-standing partnerships and alliances to increase negotiated work and secure capital investment. OVERVIEW PERFORM | LEVERAGE LATEST TECHNOLOGY 13 Improve business predictability, analytics, and reporting to support
Slide 15: Buildings Overview: Current Footprint
ENHANCING OUR EXPERIENCES TEAM | NATIONAL ALIGNMENT BUILDINGS Increase national alignment across Canada with a focus on higher margin work and innovative solutions. OVERVIEW PERFORM | LEVERAGE LATEST TECHNOLOGY 14 Utilize the latest technology, software, and analytics to support performance and mana
Slide 16: Buildings Creating Value
INCREASING POTENTIAL THROUGH EXCELLENCE innovation BUILDINGS CREATING VALUE 15 sustainability CENTRES OF EXCELLENCE Providing nationwide solutions for clients through strategic, industry leading Centre's of Excellence. quality SUSTAINABLE CONSTRUCTION Increasing internal capacity for sustainable con
Slide 17: Industrial MRO Creating Value
PROVEN EXPERTISE DELIVERING INNOVATION safety INDUSTRIAL MRO CREATING VALUE 16 performance RECURRING REVENUE STREAM Continue to increase recurring revenue streams as they reduce seasonality and provide good visibility over time. quality NEGOTIATED WORK Focus on negotiated, and long-term work package
Slide 18: Industrial Construction Creating Value
COLLABORATING TO GENERATE SUCCESS expertise INDUSTRIAL CONSTRUCTION CREATING VALUE 17 quality PROVEN EXPERTISE Sustained growth and experience from coast-to-coast with tier-1 clients, positioning Bird for success in emerging markets. partnerships FABRICATION & SELF-PERFORM CAPABILITIES In-house fabr
Slide 19: Civil Infrastructure Creating Value
DRIVING HIGHER SELF-PERFORM MARGINS experienced CIVIL INFRASTRUCTURE CREATING VALUE 18 specialized SPECIALIZED AND COMPLEX DELIVERY CAPABILITIES Through a continuous focus on innovation, Dagmar has developed a niche for delivery of complex and specialized civil infrastructure projects across Ontario
Slide 20: Operational Leadership Team
OPERATIONAL LEADERSHIP TEAM ~127 YEARS of COMBINED EXPERTISE 19 Gilles Royer Rob Otway David Keep Paul Pastirik CHIEF OPERATING OFFICER EXECUTIVE VICE PRESIDENT SENIOR VICE PRESIDENT SENIOR VICE PRESIDENT BUILDINGS INDUSTRIAL MRO STRATEGIC DEVELOPMENT
Slide 21: Innovation and Technology Opportunities
I N N O VAT I V E SOLUTIONS INNOVATION AND TECHNOLOGY OPPORTUNITIES 20
Slide 22: Collaborative Contracting and IPD
I N N O VAT I O N A N D TECHNOLOGY COLLABORATIVE CONTRACTING AND IPD 21 Bird’s model for success is simple, yet powerful in its application. An approach to doing business grounded in respect, transparency, and collaboration. COMMON GOALS AND VALUES Single multi-party contract with a win/win mentalit
Slide 23: Stack Modular
I N N O VAT I O N A N D TECHNOLOGY STACK MODULAR 22 Bird’s partnership with Stack Modular delivers structural steel modular buildings up to 40-storeys for multi-family, hospitality, long-term care and student housing. RAPID DELIVERY Modules are prefabricated in factory while site is prepared for ins
Slide 24: One Pass Trenching
I N N O VAT I O N A N D TECHNOLOGY ONE PASS TRENCHING 23 Bird’s unique solutions, specialized equipment, and robust programs and systems delivered by Innovative Trenching Solutions (ITS) across North America. RAPID SOLUTION Up to 5 times faster than a trencher and 20 times faster than a conventional
Slide 25: BIM and VDC
I N N O VAT I O N A N D TECHNOLOGY BIM AND VDC 24 Bird leverages Building Information Modeling and Virtual Design Construction to mitigate risk, enhance processes, and support the bottom line. INTELLIGENT INSIGHTS Intelligent data in a dedicated model to visualize site and optimize schedule. REDUCED
Slide 26: Centre for Building Performance
I N N O VAT I O N A N D TECHNOLOGY CENTRE FOR BUILDING PERFORMANCE 25 Bird’s Centre for Building Performance provides solutions that optimize building systems and infrastructure; and support sustainability and reporting metrics. BUILDING ANALYTICS Simplifies building management, reduces operating co
Slide 27: Mass Timber
I N N O VAT I O N A N D TECHNOLOGY MASS TIMBER 26 Bird is a North American leader in wood construction with unmatched expertise, experience, and supply chain knowledge. EXPERTISE Cross Laminated Timber, Nailed Laminated Timber, wood-frame, and hybrid projects. ENVIRONMENTAL IMPACT Low-carbon buildin
Slide 28: Environmental Excellence
I N N O VAT I O N A N D TECHNOLOGY ENVIRONMENTAL EXCELLENCE 27 Bird has over 50 years of demonstrated knowledge in environmental construction and has proudly completed over 300 environmental projects in the last decade. BROAD REACHING CAPABILITIES Expertise in water and wastewater treatment, anaerob
Slide 29: Cold Storage & Food Processing
I N N O VAT I O N A N D TECHNOLOGY COLD STORAGE & FOOD PROCESSING 28 Bird has broad capabilities building facilities for meat and plant processing, plant conversions, increasing storage capacities, and secondary processing plants. EXPERTISE AND EXPERIENCE Expertise, effective delivery model, and fam
Slide 30: Value Initiatives Program
I N N O VAT I O N A N D TECHNOLOGY VALUE INITIATIVES PROGRAM 29 Bird exemplifies the operational disciplines required to deliver on KPI’s and in returning value back to clients through proven technology and innovation. EVERY IDEA AND DOLLAR COUNTS From material reuse to vendor negotiations, VALUE IN
Slide 31: People, Culture and ESG Team
PEOPLE, CULTURE AND ESG TEAM ~65 YEARS of COMBINED EXPERTISE 30 Wayne Gingrich Cheryl Ballerini Brian Henry DIRECTOR, STRATEGIC CHIEF FINANCIAL OFFICER CHIEF PEOPLE OFFICER DEVELOPMENT & COMM.
Slide 32: People & Culture Strategic Focus
PROPELLING US FORWARD DIVERSITY, EQUITY, INCLUSION PEOPLE & CULTURE Building an inclusive and collaborative Bird STRATEGIC FOCUS community. 31 LEADING TALENT Attracting and retaining the right, and leading talent. UNRIVALED EXPERIENCE TEAM PERFORM DIVERSIFY Creating unrivaled learning and developmen
Slide 33: Cultivating a Strong ESG Culture
CULTIVATING A STRONG ESG CULTURE BUILD GREEN Pursuing opportunities to utilize sustainable building materials and ENVIRONMENTAL, minimize resource waste. 200+ LEED projects to date. SOCIAL, GOVERNANCE 32 WORK GREEN Delivering innovative solutions for sustainable construction. LIVE GREEN Safe, inclus
Slide 34: Sustainable Construction
CULTIVATING A STRONG PURSUING OPPORTUNITIES TO UTILIZE SUSTAINABLE BUILDING MATERIALS AND MINIMIZE RESOURCE WASTE ESG CULTURE SUSTAINABLE CONSTRUCTION 33 HUMBER COLLEGE BUILDING NX ACTIVE WATER TREATMENT SYSTEM UNIVERSITY OF CALGARY MACKIMME TOWER PREFABRICATION
Slide 35: Indigenous Engagement
CULTIVATING A STRONG BUILDING RELATIONSHIPS AND SUPPORTING INDIGENOUS COMMUNITIES THROUGH INVESTMENT AND ENGAGEMENT ESG CULTURE INDIGENOUS ENGAGEMENT 34 INDIGENOUS ENGAGEMENT POLICY INDIGENOUS SCHOLARSHIPS GITXAALA INTRODUCTION TO CARPENTRY PROGRAM CANADIAN COUNCIL FOR ABORIGINAL BUSINESS’ PAR PROGR
Slide 36: Chairman of the Board of Directors
CHAIRMAN OF THE BOARD OF DIRECTORS 35 MR. PAUL RABOUD JOINED VANCOUVER APPOINTED APPOINTED APPOINTED APPOINTED APPOINTED COO CEO VICE CHAIR BOARD BIRD MANAGER EVP CHAIR CHAIRMAN OF THE BOARD 1984 1990 2000 2006 2008 2010 2021
Slide 37: Financial Recap
RECORD 11.00 FINANCIAL POSITION 94.2% 10.00 9.00 2-YR SHAREHOLDER RETURN (Incl. Dividend) 8.00 FINANCIAL RECAP 7.00 $544.7M 6.00 36 MARKET CAP 5.00 at Sept 7, 2021 52 WEEK RANGE 4.00 $10.27 HIGH | $5.98 LOW 3.00 01/2020 04/2020 07/2020 10/2020 01/2021 04/2021 07/2021 $ 1,901.0M $ 177.8M $ 50.1M $ 11
Slide 38: Transaction Update: Accretive M&A Strategy
ACCRETIVE M&A STRATEGY one TRANSACTION UPDATE INCREASED DIVERSIFICATION ACROSS SERVICES, END-MARKETS, AND GEOGRAPHIES 37 REDUCED RISK PROFILE WITH 09.25.2020 $96.5M $ 30.0M $ 66.5M WELL-BALANCED PORTFOLIO OF LOWER-TO MEDIUM-RISK PROJECTS TRANSACTION DATE TOTAL CONSIDERATION AMOUNT CONSISTED OF CASH
Slide 39: Record Combined Backlog
RECORD COMBINED BACKLOG $2.7B Q2 BACKLOG(1) BACKLOG 38 5,000 63% of Backlog expected to convert into Revenue over the next 12 months $1.6B Q2 PENDING BACKLOG(1) 4,500 4,000 in millions of Canadian dollars 3,500 1,636 1,685 1,648 1,300 3,000 YEAR-OVER-YEAR 2,500 65% INCREASE IN BACKLOG 2,000 575 625
Slide 40: Driving Margin Improvement: Increasing Adjusted EBITDA
DRIVING MARGIN IMPROVEMENT INCREASING ADJUSTED EBITDA(1) 39 2,000 1,901 8% 1,800 1,627 7% 1,600 1,419 1,504 6.0% 1,382 1,376 6% 1,400 5.5% 5% Revenue in Millions ($M) 1,200 Adj. EBITDA % 1,000 4% 800 3% 2.3% 600 1.8% 2% 400 0.8% 1% 200 Revenue (TTM) Adj. EBITDA % (TTM) 0 0% 2017 Q2 2017 Q3 2017 Q4 2
Slide 41: Acquisition of Dagmar Construction
STRATEGIC ACQUISITION CONSERVATIVE LIQUIDITY PROFILE Maintains Bird’s conservative ACQUISITION OF leverage and liquidity profile; and is expected to be accretive to adjusted DAGMAR CONSTRUCTION earnings and free cash flow in the first full year. 40 EXPANDED CAPABILITIES Provides a platform to expand
Slide 42: Dagmar Construction Overview
STRATEGIC ACQUISITION BALANCED PORTFOLIO BY WORK TYPE DAGMAR CONSTRUCTION OVERVIEW 41 REVENUE BREAKDOWN BY WORK TYPE
Slide 43: Robust Canadian Economy: Economic Outlook
ROBUST CANADIAN ECONOMY Government of Canada Projecting: 6% • 2021 ECONOMIC 5% • 2022 3% • 2023 OUTLOOK FEDERAL 2021-2022 BUDGET HIGHLIGHTS Infrastructure-related spending of $26B over 6 years 42 $14.9B • Public Transit Over 8 Years $3.0B • Long-term Care and Affordable Housing* Over 5 Years (*$2.5B
Slide 44: Strong Financial Position: Balance Sheet
STRONG FINANCIAL POSITION EXPANDED AND EXTENDED SYNDICATED CREDIT FACILITY BALANCE SHEET $185M up to COMMITTED REVOLVING 43 CREDIT FACILITY $50M FINANCIAL POSITION AT JUNE 30, 2021 COMMITTED NON-REVOLVING TERM DEBT FACILITY $2.8M $165M up to $60.7 COMMITTED REVOLVING CREDIT FACILITY $50M up to ACCES
Slide 45: Capital Allocation: Our Framework for Success
OUR FRAMEWORK FOR $16 CAPITAL ADDITIONS(2) in $millions of Canadian dollars SUCCESS $14 $12 SUSTAINING $10 AND GROWTH CAPITAL $8 $6 $15 $14 $14 CAPEX(2) $4 ALLOCATION $6 $2 $3 $0 2018A 2019A 2020A 2020YTD Q2 2021YTD Q2 $20 CASH DIVIDENDS PAID 44 in $millions of Canadian dollars $18 $16 $14 $12 INCRE
Slide 46: Looking Ahead
DELIVERING ON OUR STRATEGIC PRIORITIES LOOKING AHEAD 45 CONSISTENT PROFITABILITY WITH A BALANCED APPROACH TO CAPITAL ALLOCATION FOCUS ON HIGH MARGIN ROBUST FINANCIAL AND RISK NIMBLE PLATFORM THAT IS COST PROJECTS AND CLIENT SOLUTIONS MANAGEMENT STRATEGY EFFECTIVE, EFFICIENT, AND SECURE STRONG, BALAN