Stantec Inc · TSX:STN
Stantec — IPO Roadshow (March 2016)
25 slides from Stantec's IPO roadshow presentation, Mar 30, 2016
Slide 1: Acquisition of MWH Global
Acquisition of MWH Global March 29, 2016 We create communities. We are Stantec.
Slide 2: Prospectus Information
PROSPECTUS INFORMATION An amended and restated preliminary short form prospectus containing important information relating to the securities described in this presentation has not yet been filed with the securities regulatory authorities in each of the provinces of Canada. A copy of the amended and
Slide 3: Non-IFRS Measures
NON-IFRS MEASURES This presentation contains references to certain measures that do not have a standardized meaning under IFRS as prescribed by the International Accounting Standards Board and are therefore unlikely to be comparable to similar measures presented by other companies. Rather, these mea
Slide 4: Forward-Looking Information
FORWARD-LOOKING INFORMATION This presentation includes certain statements that are "forward-looking statements" within the meaning of applicable securities legislation, including the United States Private Securities Litigation Reform Act of 1995 "safe harbour" provisions or "forward looking informat
Slide 5: Forward-Looking Information
FORWARD-LOOKING INFORMATION Whether actual results and developments will conform with the expectations and predictions contained in the forward-looking information is subject to a number of risks and uncertainties, many of which are beyond Stantec's control, and the effects of which can be difficult
Slide 6: Acquisition of MWH
Acquisition o STN & 6) Stantec TSX: NYSE
Slide 7: Agenda
Agenda Transaction Summary MWH Overview Pro Forma Stantec Financial Summary Conclusion
Slide 8: Transaction Summary
Transaction Summary
Slide 9: Transaction Highlights
Transaction Highlights 1 Adjusted for out of ordinary course severance, estimated savings associated with certain employee retirement plans and other one-time costs and items 2 Adjusted to exclude estimated transaction-related intangible amortization, costs and other one-time items on an after-tax b
Slide 10: Compelling Value For Key Stakeholders
FOR CLIENTS Better equipped to solve our clients’ infrastructure challenges with our collective expertise and award-winning experience Enhanced services over a greater span of the project life cycle FOR EMPLOYEES FOR SHAREHOLDERS Shared expertise and collaboration opportunities Potential to broaden
Slide 11: A Leading Water & Infrastructure Firm
A Leading Water & Infrastructure Firm Top tier firm with world-class expertise in key non-cyclical growth areas, including infrastructure and water Depth and breadth of experience to deliver on complex projects worldwide Strong management and over 22,000 employees worldwide Leading North American-fo
Slide 12: A Top Tier Global Design Firm
A Top Tier Global Design Firm The acquisition of MWH is expected to reinforce Stantec’s position as a top tier design firm in both North America and the global marketplace 1 According to Engineering News-Record and internal analysis 2 According to Engineering News-Record Top 500 North American Desig
Slide 13: MWH Overview
MWH Overview 6) Stantec 13
Slide 14: MWH at a Glance
MWH at a Glance 2015A Gross Revenue $1,318 2015A Adj. EBITDA1 $84 6,800 Employees 187 Offices 26 Countries Key Metrics (US$M) Top Firm in Water New Civil Engineer 2015 (U.K) #1 Sewer & Solid Waste ENR Top International Design Firms #1 Wastewater Treatment ENR Top 400 Contractors Sourcebook #1 Compan
Slide 15: MWH water and natural resource infrastructure projects
MWH has helped create some of the world’s most technically significant water and natural resource infrastructure projects MWH Water and Natural Resource Infrastructure Projects Panama Canal, Panama Thames Water, United Kingdom APLNG, Australia Cerro Verde, Peru Austin Water Treatment Plant, United S
Slide 16: MWH Segment Overview
MWH Segment Overview Water is the largest end market of MWH’s global service offerings Mining Oil & Gas Water Energy & Power Industrial Transport Ports, Waterways, Canals General Building 2015 MWH GROSS REVENUE BY END MARKET US$ 1.318 B 2015 MWH GROSS REVENUE BY SEGMENT Engineering and Technical Ser
Slide 17: MWH Geographic Footprint
MWH Geographic Footprint Americas ~US$665 M1 ~2,650 staff United States Peru Chile Canada Argentina Panama Europe + Africa ~US$466 M1 ~2,400 staff United Kingdom Italy Belgium Netherlands Turkey Cyprus Pakistan Ethiopia Middle East ~US$48 M1 ~250 staff Qatar United Arab Emirates Bahrain Israel Asia
Slide 18: Pro Forma Stantec
Pro Forma Stantec
Slide 19: A Global Leader in Water and Infrastructure Markets
The combined business is expected to build upon Stantec's position as a top tier design firm within the global water and infrastructure market, and enhance our ability to compete on the world’s most technically sophisticated water-related projects A Global Leader in Water and Infrastructure Markets
Slide 20: Business Profile Combination
Business Profile Combination Infrastructure Buildings Energy & Resources Environmental Services 2015 STANTEC GROSS REVENUE BY BOU 2015 COMBINED GROSS REVENUE BY BOU Buildings Energy & Resources Construction Environmental Services Infrastructure Water Transportation Community Development Water expect
Slide 21: Geographic Combination
Geographic Combination 2015 STANTEC GROSS REVENUE BY ROU Canada International United States 2015 COMBINED GROSS REVENUE BY ROU United States Canada United Kingdom, Europe, Middle East Global MWH’s experience in global markets should provide Stantec immediate geographic breadth, creating a platform f
Slide 22: Financial Summary
Financial Summary
Slide 23: Financial Summary
Financial Summary The acquisition is expected to be immediately mid-single digit accretive to Adjusted EPS1 and mid-teens accretive to Adjusted EPS1 in 20172 Highly Accretive Transaction Efficient Capital Structure Strong cash flow generation and growth prospects of the combined company are expected
Slide 24: Near-Term Anticipated Synergies
Near-Term Anticipated Synergies Cross-selling to new and existing customers across multiple geographies Broad capabilities in water to provide full service life cycle offering to clients Additional Revenue Growth Opportunities Meaningful Expected Cost Synergies Optimize existing back office function
Slide 25: Conclusion
Conclusion MWH geographically diversifies Stantec’s operations into additional global markets Geographic Diversification Service Diversification MWH adds additional service capabilities in Construction and Management Consulting related to Water that are expected to better position Stantec to meet th