Atkinsrealis Group Inc. · TSX:ATRL
Atkinsrealis — SNC-Lavalin Group — Shareholder Meeting (2014)
35 slides from Atkinsrealis's shareholder meeting presentation, 2014
Slide 1: AGM 2014 Annual Meeting of Shareholders
AGM 2014 Annual Meeting of Shareholders 1
Slide 2: Forward-Looking Statements
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 arr
Slide 3: We Are Back
WE ARE BACK We are making solid progress on our journey toward industry leading returns. More specifically, we are targeting outstanding performance in: › Ethics, compliance, safety and corporate social responsibility › Client value and service › Investor returns › Employee p y recruiting g and rete
Slide 4: Living Our Values
LIVING OUR VALUES At SNC-Lavalin, SNC Lavalin we like to begin every meeting with safety and ethics moments. moments We will let our group presidents kick off this meeting by telling you first-hand about their own personal commitment to these important company values. values 4
Slide 5: Living Our Values
LIVING OUR VALUES Our employees across the company embrace these values, and endeavour to reflect them in their daily work. 5
Slide 6: We Are Dealing with the Legacy of Past Decisions
WE ARE DEALING WITH THE LEGACY OF PAST DECISIONS – BUT WE A LEGACY OF OVER REMAIN STRONG $0.5 $0 5 BILLION We have largely completed a major house cleaning, and taken more than $0.5 billion in write-offs over the last two years due to decisions of the past. IN WRITE WRITE-OFFS OFFS IN 2012 & We stil
Slide 7: We Fully Believe We Have Touched Bottom in the Turnaround
WE FULLY BELIEVE ANNUAL WE HAVE TOUCHED 7,209.9 8,091.0 7,913.2 REVENUES (IN MILLIONS $) BOTTOM IN THE 385.9 TURNAROUND OF 306.3 THIS COMPANY We are now firmly focusing on an exciting future of solid risk managgement and growth. ANNUAL 36.4 NET INCOME (IN MILLIONS $) 2011 2012 2013 7
Slide 8: 2013 Financial Results Summary
2013 FINANCIAL RESULTS SUMMARY While 2013 was REVENUE BACKLOG CASH AND CASH EQUIVALENTS (IN MILLIONS $) (IN MILLIONS $) a challenging g g yyear 10,088.0 10,133.4 8,287.8 1,231.0 1,174.9 1,108.7 financially, we retained a good backlog of over $8 billion and $1.1 billion in cash and cash equivalents.
Slide 9: 2013 Financial Results Summary: Dividends and Share Price
0.85 0.89 0.93 2013 FINANCIAL DIVIDENDS RESULTS SUMMARY ($) We also remained an attractive investment, with consistently competitive dividends and 51.08 47.79 a strengthening stock price 40.32 SHARE throughout 2013. PRICE ($) 2011 2012 2013 9
Slide 10: Keeping Our Commitment
KEEPING OUR COMMITMENT Last year, we said we would make major improvements for future growth and profitability. In the next part of this presentation I will tell you what we achieved. What we said What we did Become ethics & compliance leader Launched world-class ethics & compliance system Attain be
Slide 11: We Are Building a Top-Tier Engineering and Construction Company
WE ARE BUILDING A TOP-TIER ENGINEERING AND CONSTRUCTION COMPANY We have made major progress in the fundamental rebuilding of the company and we are stronger and more competitive titi in i the th global l b l marketplace k t l th than at anytime in the last few years. 11
Slide 12: Transformative Growth: Our Five-Year Plan
TRANSFORMATIVE GROWTH OUR FIVE-YEAR PLAN As presented at last year’s AGM, we are responding to the current industry context with a five-year strategic plan that we expect will make us a Tier-1 service-focused, efficient and respected global E&C company, with leadership positions in oil & gas, mining
Slide 13: We Have Great Employees to Help Get Us There
WE HAVE GREAT EMPLOYEES TO HELP GET US THERE Our 30,000 dedicated and talented employees are fully committed to our strategy strategy. They are helping re-establish re establish SNC-Lavalin as a profitable global provider of ethical, safe and sustainable client-focused engineering and construction s
Slide 14: Ethics and Compliance Transformation
ETHICS AND COMPLIANCE TRANSFORMATION We set a clear goal: to become the global benchmark for ethics and compliance in our industry and a clean-business role model worldwide. So what have we achieved? 14
Slide 15: Ethics and Compliance Transformation
ETHICS AND COMPLIANCE TRANSFORMATION We are well on our way to attaining our objective objective, with all systems for a world-class world class ethics and compliance framework fully staffed with an industry leading team. We have: › Validation from third-party global experts that we are on the right
Slide 16: Health and Safety Transformation
HEALTH AND SAFETY TRANSFORMATION With more mature systems systems, better reporting reporting, better investigation and follow-up, we are quickly progressing toward best-in-class performance in health and safety safety. 16
Slide 17: Health and Safety Transformation
HEALTH AND SAFETY TRANSFORMATION We had 32% fewer recordable incidents in 2013 compared to 2012 2012. 2005 This puts us among the very top H&S performers in our industry worldwide 2013 17
Slide 18: Leadership Transformation
LEADERSHIP TRANSFORMATION Jean Beaudoin Jim Burke Robert G. Card Darleen Caron Charles Chebl We rebuilt our leadership team by pairing our best performers with new, seasoned executives. Dale Clarke Réjean Goulet Gerry Grigoropoulos Christian Jacqui Charles Rate We now have one of the most talented,
Slide 19: Systems Transformation
SYSTEMS TRANSFORMATION We are implementing state-of-the-art management systems to improve client service by enhancing cost, schedule and quality performance. Project Financial HR Management Business Management Systems System Development Systems + Supports global + Standardizes best HR and Marketing
Slide 20: Organizational Transformation
ORGANIZATIONAL TRANSFORMATION We have undertaken a large-scale large scale transformation of our organization that has made us a more efficient, integrated and customer-focused customer focused company. company We are well on our way to becoming “one-company” one company for both customers and emplo
Slide 21: Strategy – Key Markets
STRATEGY – KEY MARKETS As announced at last year’s AGM, our three key markets are Resources, Power, and Infrastructure. By y consolidating g our op perating g units into these three sectors, we have improved market focus and efficiency, and enhanced teamwork. Resources,, Power Infrastructure Environ
Slide 22: Strategy – Key Services
STRATEGY – KEY SERVICES We are one of very few firms with expertise at scale in engineering, construction, procurement, financing & asset management, and operations & maintenance.This is a key differentiator in our industry, and a powerful vehicle for delivering outstanding value to our stakeholders
Slide 23: Strategy – Key Geographies
STRATEGY – KEY GEOGRAPHIES We are making excellent Continued progress p g in the impplementation growth focus of an enhanced global geographic structure for better cost EUROPE NORTH y, comp efficiency pliance and AMERICA ASIA competitive positioning. PACIFIC MIDDLE EAST AND In addition to our focus
Slide 24: Our Expertise in Action
OUR EXPERTISE IN ACTION We will now let our three group presidents tell you about some of our remarkable projects around the world. 24
Slide 25: Our Expertise in Action
OUR EXPERTISE IN ACTION It was hard to choose from among the many outstanding projects our employees are working on worldwide. 25
Slide 26: Strategy – Infrastructure Concession Investments (ICI)
STRATEGY – INFRASTRUCTURE CONCESSION INVESTMENTS (ICI) Now let’s let s look at the progress we are making in the implementation of the ICI component of our strategy, which will allow us to continue to outperform in asset management and results results. 26
Slide 27: Development and Divestment Strategy – ICI
DEVELOPMENT AND DIVESTMENT STRATEGY – ICI We will remain an aggressive development investor investor, and will continue to deploy capital more efficiently. We are actively managing our portfolio to create value: › Sold the majority of our interest in the Astoria II power station, and in the process
Slide 28: AltaLink Sale – Unlocking and Creating Value for Our Shareholders
ALTALINK SALE – UNLOCKING AND CREATING VALUE FOR OUR SHAREHOLDERS Our expertise and experience in asset management management, combined with our domain expertise and project capability, has resulted in excellent returns for many of our assets. Maximizing the synergies between our asset management an
Slide 29: Strategic Scorecard
STRATEGIC SCORECARD Focus on Accelerated Growth Markets Health & Safety Excellence Seeking transformational growth Achieved top-tier industry in oil & g gas,, while remaining g performance strong in other key markets ON- GOING Increase % of Revenues from Services The Result Systems Excellence Upgrad
Slide 30: 2012: A Year of Discovery
In conclusion, I would characterize our journey as 2012 Was a year of discovery 30
Slide 31: 2013: A Year of House Cleaning
In conclusion, I would characterize our journey as 2013 Represented a year of house cleaning 31
Slide 32: 2014: A Year of Rebuilding and Consolidating
In conclusion, I would characterize our journey as 2014 Is a year of rebuilding and consolidating We are on the exit path of the turnaround, andd we h lid strategy have a solid t t th thatt is stable and well underway. 32
Slide 33: 2015: Beginning of a Return to Industry-Competitive Performance
In conclusion, I would characterize our journey as 2015 Will be the beginning of a return to industry- competitive performance 33
Slide 34: We Are Rebuilding Our Company and Our Reputation
We are rebuilding our company and our reputation for a successful and profitable future. 34
Slide 35: Merci Thank You
MERCI THANK YOU Clients Shareholders Employees p y Partners Communities 35