Aecon Group Inc. · TSX:ARE
Aecon — Investor Presentation (May 2015)
18 slides from Aecon's investor presentation, May 2015
Slide 1: May 2015
May 2015
Slide 2: Forward-Looking Information
FORWARD-LOOKING INFORMATION The information in this presentation includes certain forward-looking statements. These “forward-looking” statements are based on currently available competitive, financial and economic data and operating plans but are subject to risks and uncertainties. In addition to ev
Slide 3: 2015 Q1 and TTM Results
2015 O1 AND ITM” RESULTS $ Millions Revenue Gross Profit Gross Margin % Adjusted EBITDA Adjusted EBITDA Margin % Operating Profit Adjusted Net Income * Adjusted EPS (Diluted) * New Awards Backlog A@CCON Three months ended March 31 Manat sara 2015 2014 2015 2014 501.5 461.9 2,653.7 2,614.1 36.9 32.8
Slide 4: Continued Progress Becoming the Leader in Canada for Large-Scale, Turnkey Project Delivery
CONTINUED PROGRESS 10 BECOMING THE LEADER IN CANADA FOR LARGE-SCALE, TURNKEY PROJECT DELIVERY NEW CONTRACT AWARDS 3 H BN t 10% higher than previous best year and (2014) 7 45% higher than 2013 BACKLOG ? i BN t New record high established - (AS AT MARCH 31, 2015) ‘ 5% higher than previous record Beeld
Slide 5: Record New Contract Awards in 2014 Combined with Ongoing Strength from Recurring Revenue
RECORD NEW CONTRACT AWARDS IN 2014 COMBINED WITH ONGOING STRENGTH FROM RECURRING REVENUE NEW CONTRACT AWARDS ($MM) % FROM RECURRING REVENUE* TOTAL $2,413 +45% $3,495 TOTAL 11% 26% 26% ; ENERGY $1.275 INFRASTRUCTURE INFRASTRUCTURE $700 — MINING MINING | $472 | _ -" 2013 2010* 2013 2014 ENERGY *Recurr
Slide 6: Record Backlog
RECORD BACKLOG TOTAL BACKLOG* ($MM) BACKLOG* DURATION ($MM) AS AT MARCH 31, 2015 AS AT MARCH 81, 2015 TOTAL $2178 =+28% — $2,787 TOTAL $2.178 = +28% —-$2.787 +21% | -31% $993 BEYOND $320 i _ 13-24 $621 cee $662 $1,329 MONTHS ra — $1,228 $1,899 01 2014 1 2015 Q1 2014 Qt 2015 *Recurring revenue is not
Slide 7: Record Success Driving Record Awards, Backlog, and Visibility
RECORD SU DRIVING REC ae) Cc 2 FOO BATE ON REQUESTS FOR PROPOSAL HD AWARDS, BACKLOG, AND VISIBILITY [ om } 43% WIN RATE ; WON SINCE 2013, AECO John Hart Power Station (P3) BC Eglinton LAT Tunnel ON AWARDED SIX MAJOR S2.0BN* 4 Regina wwrP (P3) SK Viva Rapidway BRT ON PROJECTS AFTER New Post Creek ON
Slide 8: Record Adjusted EBITDA Margin in 2014
RECORD ADJUSTED EBITDA MARGIN IN 2014 GROSS MARGIN % ADJUSTED EBITDA MARGIN % TOTAL 8.8% 9.8% A +1.0% TOTAL 6.0% 6.5% A +0.5% ENERGY 11.0% 10.3% -0.7% ENERGY 7.0% 5.8% -1.2% INFRASTRUCTURE 3.5% 6.6% A 43.1% INFRASTRUCTURE — (0.1%) 2.9% A +3.0% MINING 12.3% 14.0% A 41.7% MINING 10.6% 9.5% -1.1% 2013
Slide 9: Successful Transition — Key Drivers
SUCCESSFUL TRANSITION — KEY DRIVERS AECON PLATFORM BUILT ON FOUR KEY PILLARS. . PARTNERSHIPS TURKEY CAPABILITY = Clients, engineers, contractors, First Nations, = % of work from large, multi-faceted projects is unions now 30% - 40% per annum = The sought-after Canadian partner-of-choice = Most verti
Slide 10: Active Project and Client Partnerships
ACTIVE PROJECT AND CLIENT PARTNERSHIPS ACTIVE JV PROJECTS PROVINCE | AECON SHARE CLIENT PARTNERSHIPS John Hart Power Station Port Mann Tunnel Capilano Tunnels Syncrude - Cogen Plant IPL Pipeline and Stations Anthony Henday Ring Road Regina Wastewater Treatment Plant Waterloo LRT Eglinton LRT Tunnel
Slide 11: Diversity & Scale — Coast to Coast in Our Key Market Segments
DIVERSITY & SCALE — COAST 10 COAST IN OUR KEY MARKET SEGMENTS ENERGY INFRASTRUCTURE MINING CONCESSIONS AT Joo 0h" NUCLEAR RAIL & TRANSIT MINE SITE DEVELOPMENT PUBLIC PRIVATE OIL & GAS STATIONS OVERBURDEN REMOVAL & PARTNERSHIPS (P3s) PIPELINES ROADS, BRIDGES, TUNNELS RECLAMATION PROJET DEVELOPMENT UT
Slide 12: Energy Segment Q1 2015 TTM
Revenue – $1.3 BN New Contract Awards Recurring Revenue % Backlog Adj. EBITDA Margin – 5.2% of Segment $1,426 $993 32% Q1 2015 $1,331 TTM 47% $955 30% 2014 Q1 2015 2014 Q1 2015 2014 2015 Year End TTM Year End TTM Year End Q1 12
Slide 13: Infrastructure Segment Q1 2015 TTM
Revenue – $0.9 BN New Contract Awards Recurring Revenue % Backlog Adj. EBITDA Margin – 2.8% of Segment $1,314 10% 10% $1,329 $934 Q1 2015 TTM $1,263 33% 2014 Q1 2015 2014 Q1 2015 2014 2015 Year End TTM Year End TTM Year End Q1 13
Slide 14: Mining Segment Q1 2015 TTM
Revenue – $0.5 BN New Contract Awards Recurring Revenue % Backlog Adj. EBITDA Margin – 10.6% $931 of Segment 42% $465 20% 33% Q1 2015 $875 TTM $436 2014 Q1 2015 2014 Q1 2015 2014 2015 Year End TTM Year End TTM Year End Q1 14
Slide 15: Ongoing Progress and Future Growth Supported by Strong Cash Flow and Balance Sheet
ONGOING PROGRESS AND FUTURE GROWTH SUPPORTED BY STRONG CASH FLOW AND BALANCE SHEET FREE CASH FLOW (SMM) 2014 2013 Adjusted EBITDA 170.2 184.0 Cash Interest Expense (net) (34.7) (31.1) Capital Expenditures (net) (50.8) (49.9) Restructuring Costs (9.0) - Income Taxes (Paid)/Recovered 0.9 (9.1) Net JV
Slide 16: $0.40* $0.36 $0.32 $0.28 $0.20 $0.14 $0.00 2006 2007 2008-11 2012 2013 2014 2015
$0.40* $0.36 $0.32 $0.28 $0.20 $0.14 $0.00 2006 2007 2008-11 2012 2013 2014 2015 16
Slide 17: A Business Transformed...
A BUSINESS TRANSFORMED. . . In 2014, Aecon had a record year securing work and improving margins in line with our strategy to become the Canadian leader in large-scale, turnkey project delivery. A@CCON _.. PROVIDING A PLATFORM FOR GROWTH Our progress to date and ability to leverage partnerships, rep
Slide 18: May 2015
May 2015