Atkinsrealis Group Inc. · TSX:ATRL
Atkinsrealis — SNC-Lavalin Group — Q3 2018 Earnings Presentation
21 slides from Atkinsrealis's earnings presentation, Nov 1, 2018
Slide 1: Third Quarter 2018 Conference Call Presentation
Songjiang Quarry Hotel › Third Quarter 2018 › Conference Call Presentation › November 1st, 2018
Slide 2: Forward-looking statements; Non-IFRS financial measures
Forward-looking statements Reference in this presentation, and hereafter, to the “Company” or to “SNC-Lavalin” means, as the context may require, SNC-Lavalin Group Inc. and all or some of its subsidiaries or joint arrangements, or SNC-Lavalin Group Inc. or one or more of its subsidiaries or joint ar
Slide 3: Q3 2018 – Neil Bruce, President and CEO
Q3 2018 Neil Bruce, President and CEO Burj Al Arab Jumeirah Hotel 3
Slide 4: Q3 2018 highlights
Q3 2018 highlights › Remediation Agreement Revenue of $2.6B, in line with Q3 2017 SNC-Lavalin strongly disagrees with the › DPPSC’s current position. On October 19, SNC-Lavalin filed an application with the Adjusted diluted EPS from E&C of $0.71 per diluted share, up 39% Federal Court of Canada for
Slide 5: Q3 2018 main segment highlights
Q3 2018 main segment highlights Mining & Metallurgy › 70% increase in revenues (Q3 2018 vs Q3 2017) › $3M loss in Q3 2018 › Prospects pipeline continues to improve › Pipeline is growing and have confidence in major bids we have submitted Oil & Gas › Segment EBIT of $55M with a 8.3% margin › Backlog*
Slide 6: Q3 2018 main segment highlights
Q3 2018 main segment highlights Clean Power, Nuclear, Thermal Power › Clean Power › Backlog* almost doubled to $820M (5.6 book-to-bill ratio for Q3 2018) › Formation of Linxon, a new JV between SNC-Lavalin and ABB, for the execution of turnkey electrical AC substation projects › Awarded contract for
Slide 7: Q3 2018 main segment highlights
Q3 2018 main segment highlights EDPM › $2.4B of backlog* – $0.7B of new awards in Q3 2018 ($2.7B new awards YTD 2018) › Aurora Engineering Partnership, which include Atkins, has recently been appointed by the UK Ministry of Defence as their Engineering Delivery Partner for Defence Equipment & Suppor
Slide 8: Q3 2018 – Sylvain Girard, EVP and CFO
Q3 2018 Sylvain Girard, EVP and CFO Maison Symphonique de Montreal 8
Slide 9: Q3 2018 financial performance (vs Q3 2017)
Q3 2018 financial performance (vs Q3 2017) Revenue of $2.6B Adjusted net income from E&C of $124M, up › Organic revenue growth of 3%1 in EDPM › Increase in Infrastructure and M&M 40%, or $0.71 per diluted share, up 39% › Decrease in Oil & Gas, due to near completion and completion of › Q3 2018 compa
Slide 10: E&C segment EBIT – Q3 2018 vs Q3 2017
E&C segment EBIT – Q3 2018 vs Q3 2017 M&M Higher level of activities and lower -$4M profitability %. +16 (in M$) Higher profitability %, offset by lower O&G level of activities. Q3 2018 includes a 90 net positive amount from settlements -$2M 77 on completed projects & projects -2 -24 nearing complet
Slide 11: 2018 Operating Cash Flow
2018 Operating Cash Flow Improved cash flow from operations (in M$) Cash Balance as December 31, 2017 707 Q1 Q2 Q3 Q4 376 Cash flow from operations (191) Capital expenditures (105) 16 Net increase in receivables from long-term concession arrangements (45) (82) (60) Increase in recourse debt1 2,166 (
Slide 12: Capital structure and debt ratios
Capital structure and debt ratios The Company continues to maintain appropriate liquidity to pursue its growth strategy (in M$, unless otherwise indicated) Q3 2018 Limited recourse debt $979B Net recourse debt 1,489 Unused capacity under the $2.6B committed TTM adjusted EBITDA revolving credit facil
Slide 13: 2018 growth outlook
2018 growth outlook › Maintaining 2018 outlook › Tax rate for the adjusted E&C business expected to be approximately 20% 2018 Adjusted diluted 2018 Adjusted consolidated EPS from E&C1 diluted EPS1 $2.60 $2.85 $3.60 $3.85 Between $3.85 and $3.60 $3.20 $2.46 $2.58 $2.42 Between $2.85 $2.15 and $1.34 $
Slide 14: Questions & Answers
Questions & Answers
Slide 15: Appendix
Appendix
Slide 16: 2017 restated figures (1 of 2)
2017 restated figures1,2 (1 of 2) On a comparable basis with our new 2018 structure3 (in thousands of $) Segment Q1 2017 Q2 2017 Q3 2017 Q4 2017 Total EBIT % Mining & Metallurgy Revenues 101,411 94,827 106,957 129,609 432,804 Segment EBIT 5,072 6,557 833 3,467 15,929 3.7% Oil & Gas Revenues 856,545
Slide 17: 2017 restated figures (2 of 2)
2017 restated figures1,2 (2 of 2) On a comparable basis with our new 2018 structure3 (in thousands of $) Segment Q1 2017 Q2 2017 Q3 2017 Q4 2017 Total EBIT % EDPM (Engineering, Design and Project Management) Revenues 39,575 43,187 715,403 893,743 1,691,908 Segment EBIT 2,529 2,978 60,586 118,775 184
Slide 18: 407 ETR information – Q3
407 ETR information – Q3 (in M$, unless otherwise indicated) Q3 2018 Q3 2017 Change Revenues 382.7 348.7 9.8% Operating expenses 44.6 40.9 9.1% EBITDA 338.1 307.8 9.8% EBITDA as a percentage of revenues 88.3% 88.3% - Net Income 157.0 143.2 9.6% Traffic / Trips (in millions) 33.5 33.5 - Average workd
Slide 19: Net income reconciliation – Q3
Net income reconciliation – Q3 Net Income , Net charges Acquisition Net gain on Net expense Impact of U.S. Net income, as reported related to disposals for the 2012 corporate adjusted (IFRS) restructuring & Acquisition- Amortization of E&C class action tax reform (Non-IFRS) right-sizing related cost
Slide 20: Net income reconciliation – YTD
Net income reconciliation – YTD Net Income , Net charges Acquisition Net gain on Net expense Impact of U.S. Net income, as reported related to disposals for the 2012 corporate adjusted (IFRS) restructuring & Acquisition- Amortization of E&C class action tax reform (Non-IFRS) right-sizing related cos
Slide 21: Our values are the essence of our company's identity
Our values are the essence of our company’s identity. They represent how we act, speak and behave together, and how we engage with our clients and stakeholders. We put safety at the heart of everything we do, to safeguard people, assets and the environment. We do the right thing, no matter what, and