Stantec Inc · TSX:STN
Stantec — Investor Day (2023)
109 slides from Stantec's investor day presentation, 2023
Slide 1: Welcome
Welcome
Slide 2: Investor Day 2023
Investor Day 2023
Slide 3: Cautionary Statement
Cautionary Statement This presentation contains non-IFRS measures and forward-looking statements, including a discussion of our business targets, expectations, and outlook. We caution readers not to place undue reliance on our forward-looking statements since a number of factors could cause actual f
Slide 4: Agenda
Agenda Welcome & safety moment Jess Nieukerk Reflecting on our journey Gord Johnston Gord Johnston Theresa Jang President & CEO EVP & CFO Strategic plan Strategic vision, global trends Gord Johnston Organic growth and innovation John Take John Take Stu Lerner EVP & CGIO EVP & COO - North America Peo
Slide 5: Safety Moment
SAFET Y M O M ENT These four can cause or contribute …which increase states… to these critical errors… the risk of injury. o Rushing o Eyes not on task o Frustration o Mind not on task o Fatigue o Line-of-fire o Complacency o Balance/traction/grip Source: safestart.com 5
Slide 6: Investor Day 2023
Investor Day 2023
Slide 7: Reflecting on our journey
20/23 Reflecting on our journey Stantec’s Strategic Plan
Slide 8: Key achievements since 2019
1 Key achievements since 2019 33% 44% 82% Net revenue Adjusted Adjusted growth EBITDA growth EPS growth >100 bps >200 bps Expansion of our adjusted EBITDA Adjusted net income, as a percentage of net margin by 100 basis points revenue, has grown by over 200 basis points 22K 28K 275% TSR 2 Designers,
Slide 9: Global leader in sustainability
Global leader in sustainability #1 Ranked most sustainable 60% Our clean revenue is $3.4 billion, corporation among industry peers representing 60% of gross revenue* 2023 Corporate Knights Global 100 We do what 9 is right *Gross revenue related to United Nations Sustainable Development Goals for the
Slide 10: Purpose driven growth
24/26 Purpose driven growth Stantec’s Strategic Plan
Slide 11: Our strategic plan is guided by
Our strategic plan is guided by T H E I M P AC T W E Empowering people to rise M AK E I N T H E W O R L D to the world’s greatest challenges THE UNIQUE With every community, V AL U E W E D E L I V E R we redefine what’s possible THE BUSINESS VISION The success of our clients, communities, and people
Slide 12: Global trends
Global trends Climate change Demographic, Incremental Geopolitical, and resource social and and breakthrough economic and security urbanization technology industry shifts changes 12
Slide 13: Climate change and resource security
G LO BAL T RENDS Climate change and resource security This trend is driving industry Stantec’s opportunities development and catalyzing actions • Making existing systems cleaner • Global energy and greener transition, adaptation and electrification • Improving system performance • Loss of biodiversi
Slide 14: Demographic, social and urbanization changes
G LO BAL T RENDS Demographic, social and urbanization changes This trend is evolving Stantec’s opportunities the fabric of infrastructure, buildings and urban form • Community benefit services • Peoples’ shifting priorities • Talent attraction driven • Demographic and by best-in-class culture genera
Slide 15: Incremental and breakthrough technology
G LO BAL T RENDS Incremental and breakthrough technology This trend is driven by Stantec’s opportunities Industry 5.0 and the digital revolution • Evolved commercial models and automated, • Changing how we connected, smart solve problems and solutions make decisions • Leading artificial • Driving si
Slide 16: Geopolitical, economic and industry shifts
G LO BAL T RENDS Geopolitical, economic and industry shifts This trend is driven by Stantec’s opportunities the increased frequency of global disruption • Advanced manufacturing • De-globalization and food processing and production • Near-shoring • Advisory services • Global food and to reinvent sup
Slide 17: Strategic Growth Initiatives
Strategic Growth Initiatives Climate Communities Future Solutions and Infrastructure Technology of the Future 17
Slide 18: Business mix
Business mix We truly are better together Stantec’s strategic advantage and differentiator is our ability to work across and integrate all five of our BOUs to offer clients unparalleled solutions to their most difficult challenges. Buildings Infrastructure Energy & Resources Water 2019 2020 2021 202
Slide 19: Geographic strategy
Geographic strategy 8,500 3,000 2,500 11,500 Canada & US UK & Europe Australia & New Zealand 19
Slide 20: Acquisitions remain a key growth strategy
Acquisitions remain a key growth strategy Strategic and synergistic growth OUR CRITERI A means being prudent and highly • Strong cultural alignment disciplined in our acquisition philosophy • Compelling strategic fit • Accretive to earnings and cash flow 20
Slide 21: Superior financial performance through our people
We will deliver superior financial performance through our greatest asset – our people 21
Slide 22: Organic Growth
24/26 Organic Growth Stantec’s Strategic Plan
Slide 23: Strategic Growth Initiatives: high-growth markets
Strategic Growth Initiatives We are aligning with high-growth markets Climate Communities Future Solutions and Infrastructure Technology4 of the Future 2024-2026 (USD) 2024-2026 (USD) 2024-2026 (USD) $8.4T1 $6.6T2 $8.9T3 TAM TAM TAM 1. McKinsey & Company and International Monetary Fund 2. S&P Global
Slide 24: Climate Solutions
ST RAT EG IC G RO W T H INIT IAT IVE S Climate Solutions We will support the creation of more equitable, sustainable and resilient infrastructure Grow Protect Create Grow a broad range Protect assets Create increased of innovative from climate resilience through solutions to help our change impacts
Slide 25: Communities and Infrastructure of the Future
ST RAT EG IC G RO W T H INIT IAT IVE S Communities and Infrastructure of the Future Our subject matter experts are working to define what is possible Re-imagining Embracing Integrating Re-imagining Embracing Integrating and creating new technology natural and built approaches to environments buildin
Slide 26: Future Technology
ST RAT EG IC G RO W T H INIT IAT IVE S Future Technology We will further embrace physical and digital technologies Enable Drive Create Enable new Drive efficiencies in Create new service offerings how we deliver work avenues for growth 26
Slide 27: Innovating with artificial intelligence
Innovating with artificial intelligence Improve internal Exploring use Increase efficiency efficiencies, of AI models and net revenue both in support on Stantec data generated per functions and to improve employee project delivery efficiencies 27
Slide 28: The Stantec difference: cross-collaboration
The Stantec difference: cross-collaboration Our people and how we collaborate across our businesses and geographies sets us apart 28
Slide 29: Top clients
1 2 3 4 Top 25 clients 5 6 7 8 Buildings 9 10 TOP 25 CLIENTS 11 Infrastructure 15-20% Top 25 clients represent 20 year We have served our Top 25 clients 12 13 14 15-20% of our total net revenue for an average of 20 years 15 16 17 18 Water 100% of our Top 25 clients are >50% of our Top 25 clients are
Slide 30: Growth programs
Growth programs Strategic pursuits Key accounts Corporate Systematic winning Building loyal clients campaigns of transformational in volume and Achieving mature competitive pursuits variety of services market share 30
Slide 31: Other sources of organic net revenue
Other sources of organic net revenue Innovating Leveraging Expanding Innovating and improving digital Leveraging our Expanding upstream channels like artificial intelligence expertise to expand higher-end advisory and machine learning tools digital applications services 31
Slide 32: Organic net revenue growth target
Organic net revenue growth target >7% CAGR 2024–2026 net revenue organic CAGR 32
Slide 33: People
24/26 People Stantec’s Strategic Plan
Slide 34: Best-in-class culture
Best-in-class culture Our employee engagement Our people said they have And our people told us that has steadily risen despite more optimism about career inclusion, safety and our ESG challenges brought on by opportunities at Stantec than leadership are our top three the global pandemic ever before
Slide 35: The employer of choice
The employer of choice 2x Currently hiring at nearly twice our pre-pandemic rate 2% Voluntary turnover decreased 2% in one year – we have one of the lowest voluntary turnover rates among peers of our size 50% 3% 1% of our Board of Directors Pay gap for Pay gap for and 43% of our C-Suite team women i
Slide 36: Securing the next generation of top talent
Securing the next 116 Stantec Equity & Diversity Scholarship recipients pursuing generation STEAM studies around the world of top $800K Since being established in 2021, the Stantec Equity & Diversity talent Scholarship has awarded $800,000 in scholarships 25 internships for award recipients since 20
Slide 37: A recognized industry leader
A recognized industry leader #1 Top 50 Ranked most sustainable STEM Workplace for corporation among industry peers Indigenous Professionals 2023 Corporate Knights Global 100 2020 – 2023 AISES Gender World’s America’s Best Candidate Equality Top Female Employers for Experience Index Companies Diversi
Slide 38: Creating impactful experiences for our people
Creating impactful experiences for our people We are listening STANTEC’S TARGETS (end of 2026) and we will focus on • Total well-being Pay equity Close the gap in North America and expand • Flexibility the analysis outside of North America • Learning and opportunities for growth <12% Voluntary turno
Slide 39: Excellence
24/26 Excellence Stantec’s Strategic Plan
Slide 40: Stantec's global standing
Stantec’s global standing With our scale, influence and position We drive • Operational efficiencies • Industry standards We are • Preeminent partner • Global employer of choice We perform 28K • Projects of any size, experts across 40 scope and location the globe
Slide 41: Project pursuit and initiation
Project pursuit and initiation Stantec’s opportunities Outcomes • Project selection • Price projects more competitively • Increase self-performed work/ reduce use of • Increase our win/ subconsultants by 5-10% capture rates • Enhanced negotiation • Growth of net revenue leverage and risk and margins
Slide 42: Project execution
Project execution Stantec’s opportunities Outcomes • Optimize use of technology • Increased efficiency/ productivity • Parametric design • Artificial intelligence • Better outcomes for the environment • Accelerate integration of sustainable solutions • 24/7 cost efficient workforce • Leverage Pune &
Slide 43: Operations efficiency optimization
Operations efficiency optimization Stantec’s opportunities Outcomes • Virtual tools and labor • Reduced sharing inefficiencies • Global technical expertise • Increased utilization • Investing in technology • Reduced admin and global systems & marketing costs • Streamlining processes • Operating leve
Slide 44: Advancing towards operational net zero
Advancing towards operational net zero STANTEC’S COMMITMENT Validated by Science- Based Target initiative 47% Reduce absolute scope 1 and 2 GHG emissions 47% by 2030 reduction from a 2019 base year Reduce absolute scope 3 GHG business travel emissions by 47% within the same timeframe 44
Slide 45: Operational excellence targets
Operational excellence targets STANTEC’S TARGETS (end of 2026) 5-10% >2x 53-56% 50 bps 10% Reduce sub-consultants We aim to double Deliver project Reduce overhead Reduce real estate by 5-10%, which will our Pune and Manila margins in the costs by 50 bps as footprint by a further grow our net revenue
Slide 46: Financial outlook
24/26 Financial outlook Stantec’s Strategic Plan
Slide 47: Our ongoing capital allocation philosophy
Operating cash flow OUR CORE COMMITMENTS Sustaining Maintaining a Base CapEx strong balance sheet dividend Our ongoing capital allocation philosophy Excess cash flow Focused on • Funding our core commitments • Delivering a competitive risk-adjusted return COMPETITION FOR CAPITAL Share Growth Dividen
Slide 48: Strong cash flow continues to provide balance sheet flexibility
Net debt to adjusted EBITDA 2.0x Strong cash flow A balanced capital structure allows us to execute on continues to provide opportunistic acquisitions required to achieve our growth objectives balance sheet flexibility 1.8x 1.6x 1.5x Committed to Will maintain November 2023 1.2x 1.0x – 2.0x internal
Slide 49: 3-Year Financial Targets
3-Year Financial Targets STANTEC’S TARGETS (end of 2026) 2026 Net revenue $7.5 billion Focus on Organic net revenue 3-Year CAGR1 above 7% execution and efficiencies will Project margin as % of net revenue1 53% to 56% drive margin enhancement Adjusted EBITDA as % of net revenue1 17% to 18% Adjusted n
Slide 50: 2024 Revenue Outlook
2024 Revenue Outlook NET REVENUE GROWTH Organic Canada mid to high single digit mid single digit 7-12% US mid to high single digit growth Global mid to high single digit Acquisition low single digit FX neutral 50
Slide 51: 2024 Financial Targets
2024 Financial Targets STANTEC’S TARGETS 2024 ANNUAL RANGE Net revenue growth 7% to 12% Adjusted EBITDA as % of net revenue1 16.2% to 17.2% Adjusted net income as % of net revenue1 above 8.0% Adjusted diluted EPS growth1 11% to 16% Adjusted ROIC1 above 11.0% 51 1. Adjusted EBITDA, adjusted net incom
Slide 52: Our Financial Targets
Our Financial Targets Ambitious Achievable Purpose driven 52
Slide 53: Purpose driven growth
24/26 Purpose driven growth Stantec’s Strategic Plan
Slide 54: Our long-term vision
Our long-term vision Organic growth Operational efficiency Acquisitions Digital tools High value centers >$10B 20% Double our net revenue Expand our Adjusted EBITDA margin to 20% 54
Slide 55: Questions?
Questions?
Slide 56: Break
Break
Slide 57: Infrastructure
24/26 Infrastructure Stantec’s Strategic Plan
Slide 58: Infrastructure at a glance
Infrastructure at a glance $1,869 $1,368 $1,534 6,700 Community Development 28% $1,055 Infrastructure experts of Q3 2023 TTM Community total net revenue Development Roadways #8 Roadways Top 500 Design Firms by Sector – Transportation ENR May 2023 Transit & Rail 13% of 2022 Aligned Transit & Rail SDG
Slide 59: Foundation for growth
Foundation for growth Ability to handle a diverse We are a global Strong reputation range infrastructure projects, company with due to high profile large and small a local presence project delivery 59
Slide 60: Strategic Growth Opportunities
Strategic Growth Opportunities US and Canada Program Management Smart(ER) Mobility Federal Government and Construction Programs Management Services (PMCM) 60
Slide 61: Federal Government
ST RAT EG IC G RO W T H O PPO RT UNIT IES Federal Government MARKET Stantec’s response State and local program growth US$1.2T $38.6B2 in US federal funding Canda Defense • Approximately 15% of IIJA funding through IIJA to States, to support NORAD mapped to our Transportation counties, and key client
Slide 62: Program Management Construction Management (PMCM)
ST RAT EG IC G RO W T H O PPO RT UNIT IES Program Management Construction Management (PMCM) MARKET Stantec’s response US$26.2B • De-risk profile by expanding project delivery to include more PMCM and 2022 Global CMPM fees less APD according to ENR • Built a dedicated team to expand our PMCM business
Slide 63: Smart(ER) Mobility
ST RAT EG IC G RO W T H O PPO RT UNIT IES Smart(ER) Mobility ER = Equity and Resilience MARKET Stantec’s response $50B1 • Integrating technology through a lens of Equity and Resilience US and Canada federal funding for zero emission • Developed proprietary tool transportation Zero Emission Vehicle D
Slide 64: The next generation of infrastructure
The next generation of infrastructure Unprecedented funding Stantec has diverse We will lead generational infrastructure and urgency due to technical skills and improvements that will enhance climate change impacts strong local presence communities around the world 64
Slide 65: Buildings
24/26 Buildings Stantec’s Strategic Plan
Slide 66: Buildings at a glance
Buildings at a glance $1,349 $919 Healthcare 4,400 19% $828 Healthcare Buildings experts of Q3 2023 TTM Commercial total net revenue $905 Commercial Civic #1 Civic Top 115 Architecture Industrial Engineering Firms Industrial Buildings Design + Construction Education 13% of 2022 Aligned October 2023
Slide 67: Investing in our future
Investing in our future Integrate artificial Grow our non-labor revenue Deliver smarter intelligence and by investing in opportunities buildings that improve computational tools to leverage technology the human experience and data and gain efficiencies 67
Slide 68: Strategic Growth Opportunities
Strategic Growth Opportunities Repurposing and Advanced Mission Critical Adaptive Reuse Manufacturing Facilities and Data Centers 68
Slide 69: Repurposing and Adaptive Reuse
ST RAT EG IC G RO W T H O PPO RT UNIT IES Repurposing and Adaptive Reuse MARKET Stantec’s response US$35B1 • Launched strategic asset planning service to aid clients in determining highest and best DOT funding programs use of a singular or portfolio of existing assets unlocked lending for transit- o
Slide 70: Advanced Manufacturing
ST RAT EG IC G RO W T H O PPO RT UNIT IES Advanced Manufacturing MARKET Stantec’s response US$614B1 • Developed integrated design team offering for environmental site assessments and permitting, in private investment for building design, power and infrastructure semiconductors, batteries/EV, upgrade
Slide 71: Mission Critical Facilities and Data Centers
ST RAT EG IC G RO W T H O PPO RT UNIT IES Mission Critical Facilities and Data Centers MARKET Stantec’s response US$49B1 • Acquisition of ESD • a 300-person US Engineering firm with >50% McKinsey report estimates revenue in MCF sector that global spending on the construction of data centers • making
Slide 72: Stantec's Buildings business is diverse and resilient
Stantec’s Buildings business is diverse and resilient Spans 9 sectors, Innovative design and Collaborating allows 20 disciplines, technology solutions us to uncover unique 125 global locations that enrich the human design solutions that experience deliver growth and value 72
Slide 73: Energy & Resources
24/26 Energy & Resources Stantec’s Strategic Plan
Slide 74: Energy & Resources at a glance
Energy & Resources at a glance 3,140 $643 Energy & Resource experts Mining 13% $525 of Q3 2023 TTM $499 Mining total net revenue #3 $366 Top Design Firms in Power Mining ENR July 2023 Power #3 Waterpower & Dams Top Design Firms in Waterpower & Dams 9% Dams & Reservoirs of 2022 Aligned ENR July 2023
Slide 75: A compelling outlook
A compelling outlook The climate change Addressing energy and 50% of Energy & Resources imperative resource security revenue aligned with SDGs 75
Slide 76: Strategic Growth Opportunities
Strategic Growth Opportunities Critical Minerals Renewable Energy Grid Modernization and Metals and Energy Storage and Expansion 76
Slide 77: Critical Minerals and Metals
ST RAT EG IC G RO W T H O PPO RT UNIT IES Critical Minerals and Metals MARKET Stantec’s response US$220B1 • Partnering across Stantec operations globally to be single source provider to our major Needed to meet critical global clients mineral demand by 2030 • Beyond client’s mining needs, we are hel
Slide 78: Renewable Energy and Energy Storage
ST RAT EG IC G RO W T H O PPO RT UNIT IES Renewable Energy and Energy Storage MARKET Stantec’s response 2x1 • World leader in utility scale energy storage (pumped hydro storage) increase in electricity • Expanding our team of subject matter experts demand by 2050 in emerging energy markets • Hydroge
Slide 79: Grid Modernization and Expansion
ST RAT EG IC G RO W T H O PPO RT UNIT IES Grid Modernization and Expansion MARKET Stantec’s response US$21.4T1 • Our advanced power delivery team provide a competitive advantage with engineering investment needed by 2050 solutions that are innovative, reliable, efficient, safe and environmentally re
Slide 80: Our path to a lower carbon future
Our path to a lower carbon future starts with and depends on Energy & Resources We are well positioned as Partnering with our other BOUs, As a single-source provider, the world moves to a lower we provide comprehensive and we drive accelerated growth carbon future integrated solutions across Stantec
Slide 81: Water
24/26 Water Stantec’s Strategic Plan
Slide 82: Water at a glance
Water at a glance $1,548 $1,026 Water Resources 5,500 21% Water experts of Q3 2023 TTM $736 Water Resources total net revenue Water Treatment $961 Water Treatment #1 Conveyance Conveyance Top 10 International Design Firms by Market - Sewer / Waste Wastewater Treatment Wastewater Treatment 33% ENR Au
Slide 83: Growth driven by multiple tailwinds
Growth driven by multiple tailwinds Government New regulations Equipment prices UK (AMP 8) Increase in stimulus increasing US normalizing, creating forecasts more semiconductor programs and Eurozone pricing stability than double the industry activity such as the planned investment, and renewed previ
Slide 84: Strategic Growth Opportunities
Strategic Growth Opportunities Coastal Resilience and Disaster Preparedness, Water Reuse, System Hardening Response and Desalination and Infrastructure Recovery Supply Resiliency 84
Slide 85: Coastal Resilience and System Hardening
ST RAT EG IC G RO W T H O PPO RT UNIT IES Coastal Resilience and System Hardening MARKET Stantec’s response US$50B1 • We are expanding across six major global coastal zones including US, Addressable A/E consulting UK & AUS/NZ and overall design spend by 2030 • Building off experience such as 2 3x US
Slide 86: Disaster Preparedness, Response and Infrastructure Recovery
ST RAT EG IC G RO W T H O PPO RT UNIT IES Disaster Preparedness, Response and Infrastructure Recovery MARKET Stantec’s response US$130-415B1 • Brand recognition as an industry leader in recovery, rebuild, and Estimated annual adaptation resiliency planning need of $130-415B by 2030 • Rapid response
Slide 87: Water Reuse, Desalination and Supply Resiliency
ST RAT EG IC G RO W T H O PPO RT UNIT IES Water Reuse, Desalination and Supply Resiliency MARKET Stantec’s response 50%1 • Industry leading water reuse expertise (e.g. San Diego Pure Water Program— of world’s population may California’s first water augmentation be living in areas facing project) wat
Slide 88: We will continue to outperform the market
We will continue to outperform the market Stantec’s Water We are industry experts Strong reputation for positive culture business is excelling and market leaders across with turnover levels at half the and is on a significant all mega trends driving industry average has us on track upward trajectory
Slide 89: Environmental Services
24/26 Environmental Services Stantec’s Strategic Plan
Slide 90: Environmental Services at a glance
Environmental Services at a glance $1,086 $999 5,600 Buildings 20% Environmental Services of Q3 2023 TTM experts total net revenue Power… Buildings $567 #5 $492 Power &… Oil & Gas Top 10 Environmental Oil & Gas Firms by Type of Work - Engineering / Design Water 32% ENR July 2023 Water of 2022 Aligne
Slide 91: Demand is robust
Demand is robust Strong baseload of work remediating historical Weather and climate Substantial permitting environmental damage and permitting major disasters driving needed for new and infrastructure projects to protect natural assets significantly increased renewable energy and promote biodiversit
Slide 92: Strategic Growth Opportunities
Strategic Growth Opportunities Energy Transition Nature-Based ESG Advisory Solutions 92
Slide 93: Energy Transition
ST RAT EG IC G RO W T H O PPO RT UNIT IES Energy Transition MARKET Stantec’s response US$370B1 • Programmatic support for our largest power sector clients makes Stantec, a preferred California will need to invest provider, easy to use as they face $370B in its power grid unprecedented change and cle
Slide 94: Nature-Based Solutions
ST RAT EG IC G RO W T H O PPO RT UNIT IES Nature-Based Solutions MARKET Stantec’s response US$384B1 • Our team of more than 1000 ecosystem restoration specialists has restored more than UN reports that climate, 40,000 acres across North America and more biodiversity and land than 1,000 miles of rive
Slide 95: ESG Advisory
ST RAT EG IC G RO W T H O PPO RT UNIT IES ESG Advisory MARKET Stantec’s response US$8.4B1 • Built an ESG Advisory practice to translate aspirational goals into implementable material ESG Reporting costs in programs, relying on the broad Stantec platform 2023 up from $2B estimated in March 2022 • Est
Slide 96: Making a difference
Making a difference Environmental Services has the Environmental Services is The world has never breadth and depth of experience safe hands for our clients needed us more in the to handle the most challenging whether managing a portfolio face of natural disasters, projects. We are often first in of
Slide 97: Global
24/26 Global Stantec’s Strategic Plan
Slide 98: Global regions
GLOBAL EXPERTS Global regions 2,500 in UK, Ireland 3,000 in Australia & New Zealand 1,000 in Pune & Manila 1,500 in all others 98
Slide 99: Global at a glance
Global at a glance $957 $1,124 Water $630 8,000 23% Global experts $654 of Q3 2023 TTM Infrastructure Water total net revenue #7 2023 Global 100 Most Sustainable Infrastructure Energy & Energy & Resources 23% Corporations in the Resources of 2022 Aligned SDG Revenue world Corporate Knights Buildings
Slide 100: Geographic expansion
Geographic expansion New firms in new geographies -like ZETCON- have un-tethered access to multi-sector expertise from across Stantec High value centers provide cost effective resources to provide 24/7 working 100
Slide 101: Strategic Growth Opportunities
Strategic Growth Opportunities Future Water Global Energy Transition Major Programs Pumped Storage and Hydro Refit Supply Resiliency and Desalinization Grid Modernization 101 Renewable Energy
Slide 102: Future Water
Future Water Major Programs | Supply Resiliency and Desalinization MARKET Engineering $41B1 Consultancy in Australia (2024-2026) of the Year Winner UK Water Industry Awards 2023 $14B 1 in New Zealand (2024-2026) Consulting Firm of the Year Winner $160B1,2 UK New Civil Engineer Awards in UK (2025-203
Slide 103: Securing UK frameworks with key water utilities
Securing UK frameworks Scottish Water with key water utilities Northumbrian Northern Water Ireland Water United Utilities Yorkshire Stantec’s response Water • Win key AMP8 Frameworks in England and Wales Severn • Continued investment in graduate Trent Water Anglian and apprentice programs Water Dŵr
Slide 104: Global Energy Transition
Global Energy Transition Pump Storage | Grid Modernization | Renewables MARKET Stantec’s response 95%1 43%3 • Maximizing existing frameworks British Energy Strategy Australia commitment plan to achieve 95% to reduce emissions • Strengthening internal program of UK electricity production to 43% below
Slide 105: Our Global opportunity for growth is huge
Our Global opportunity for growth is huge Geographic expansion Global expertise Global skills shortage • Focus on our core markets of Australia, • Promote cross business • Invest in our graduate and New Zealand, UK and Europe collaboration apprentice programs • Explore opportunities for expansion •
Slide 106: Questions?
Questions?
Slide 107: Investor Day 2023
Investor Day 2023
Slide 108: Appendix
24/26 Appendix Stantec’s Strategic Plan
Slide 109: Appendix: 2024 Financial Targets
Appendix 2024 Financial Targets Other expectations Effective tax rate 22.0% to 23.0% 40 – 45% in Q1 and Q4 Earnings pattern 55 – 60% in Q2 and Q3 Capital expenditures as % of net revenue 1.75% to 2.25% Net debt to adjusted EBITDA 1.0x to 2.0x Days sales outstanding at or below 80 Free cash flow to n