Aecom · NYSE:ACM
Aecom — Investor Day (February 2021)
28 slides from Aecom's investor day presentation, Feb 16, 2021
Slide 1: 2021 AECOM Investor Day
February 2021 2021 AECOM Investor Day ARLINGTON MEMORIAL BRIDGE United States Washington D.C.'s historic Arlington Memorial Bridge reopened in December 2020 after a two - year rehabilitation. AECOM served as lead designer, delivering the project on - time and on - budget.
Slide 2: Disclosures: Forward-Looking Statements
February 2021 Disclosures Forward - Looking Statements All statements in this communication other than statements of historical fact are “forward - looking statements” for purposes of f ederal and state securities laws, including any statements of the plans, strategies and objectives for future oper
Slide 3: Today's Agenda
February 2021 Today’s Agenda Speaker Subject Troy Rudd Chief Executive Officer – Key Messages – A Track Record of Delivering on Our Commitments – Best Positioned to Advance Our Clients’ ESG Priorities – Unlocking Our Growth Potential – Our Commitment to More than Doubling Adjusted EPS and Free Cash
Slide 4: Troy Rudd, Chief Executive Officer
February 2021 Troy Rudd Chief Executive Officer
Slide 5: Key Messages for Investors
February 2021 Key Messages for Investors Page 5 W E A RE A N I NDUSTRY - LEADING P ROFESSIONAL S ERVICES F IRM THAT D ELIVERS ON O UR F INANCIAL T ARGETS W E A RE THE L EADERS IN A DDRESSING O UR C LIENTS ’ C RITICAL ESG P RIORITIES AND I NFRASTRUCTURE I NVESTMENTS W E ARE R EADY TO D ELIVER ON O UR
Slide 6: We Are the World's Premier Infrastructure Consulting Firm
February 2021 We Are the World’s Premier Infrastructure Consulting Firm O UR I NHERENT C OMPETITIVE A DVANTAGES U NPARALLELED T ECHNICAL E XPERTISE Source: 2020 ENR Rankings, reflecting global revenue. Environment Firm Transportation Design Firm Facilities Design Firm Mixed - Used Buildings Educatio
Slide 7: Building a Track Record of Consistently Achieving Our Objectives
February 2021 Building a Track Record of Consistently Achieving Our Objectives Page 7 Focus Exclusively on Our Higher - Returning Professional Services Businesses Deliver Consistently Strong Financial Performance & Significantly Expand Margins Unlock Significant Shareholder Value Through Capital All
Slide 8: Best Positioned Firm to Advance Our Clients' ESG Priorities
February 2021 We Are the Best Positioned Firm to Advance Our Clients’ ESG Priorities We are a leading firm of engineers, designers, master planners, scientists, researchers, program and construction managers, architects, economists, cost consultants and strategists. ESG is a top priority for nearly
Slide 9: Unlocking Our Growth Potential
February 2021 Unlocking Our Growth Potential Page 9 Expanding our advisory role with clients to shape their plans to build a better world Growing our leading Program Management business by providing multi - disciplinary technical solutions as a competitive advantage versus single business line proje
Slide 10: Advising Our Clients Throughout the Project Lifecycle
February 2021 Advising Our Clients Throughout the Project Lifecycle DAY THREE A DVISING ON THE F UTURE OF I NFRASTRUCTURE AND B UILDING A B ETTER W ORLD • Engaging with our clients early to better advise on their objectives and shape their programs • Developing master plans for our public and privat
Slide 11: Deploying Innovation at Scale to Change How We Deliver
February 2021 Deploying Innovation at Scale to Change How We Deliver Page 11 The Future of Design Executing Our Workplace of the Future Strategy • With scale, we can capture, organize, and automate certain elements of the design process to improve quality, cost of production, speed of delivery, and
Slide 12: Biden Proposal Provides Key Client Support
February 2021 B IDEN P ROPOSAL P ROVIDES K EY C LIENT S UPPORT Well Aligned with Biden Priorities on Infrastructure, Water and Environment • Several of the Biden Administration’s top policy priorities are well aligned with our industry - leading capabilities and our focus on ESG – Proposed $2 trilli
Slide 13: Continuous Improvement Drives Progress Towards 15%+ Margin Target by FY'24
February 2021 Our Culture of Continuous Improvement Drives Progress Towards Our 15%+ Margin Target by FY’24 Page 13 Advancing our Workplace of the Future strategy to drive additional efficiencies in our cost structure, further our reduce real estate footprint, and expand our digital delivery capabil
Slide 14: Our Commitment to More than Double Adjusted EPS and Free Cash Flow by FY'24
February 2021 $341 M $680 M+ FY'20 FY'24E Our Commitment to More than Double Our Adjusted EPS and Free Cash Flow by FY’24 Segment Adjusted 1 Operating Margins 2 Return on Invested Capital (ROIC) 6 • Through the execution of our strategy, we are confident in our ability to double our adjusted 1 EPS a
Slide 15: Gaurav Kapoor, Chief Financial Officer
February 2021 Gaurav Kapoor Chief Financial Officer
Slide 16: AECOM Is a High-Quality Professional Services Business
February 2021 AECOM Is a High - Quality Professional Services Business Page 16 I NHERENT A DVANTAGES OF O UR P ROFESSIONAL S ERVICES B USINESS x High quality, public sector and blue - chip private sector client base x Highly variable cost structure x Substantial backlog position with long - term vis
Slide 17: Q1'21 Performance and Strong Backlog Supports Our Outlook
February 2021 Q1’21 Performance and Strong Backlog Supports Our Outlook Page 17 F IRST Q UARTER F ISCAL 2021 P ERFORMANCE Continued Margin Expansion Strong EBITDA Growth Double - Digit Adjusted EPS Growth 13.1% 11.7% Segment Adjusted 1 Operating Margins 2 Q1’20 Q1’21 $189 $173 Adjusted 1 EBITDA 4 (m
Slide 18: Prioritizing Investments in Our Highest-Returning Markets
February 2021 Prioritizing Investments in Our Highest - Returning Markets United Kingdom United States & Canada Middle East Core Australia & New Zealand Core Geographic Footprint 90%+ of Our Profitability Hong Kong • Our core operating footprint allows us to deliver for clients around the world • We
Slide 19: Investing in Global Shared Services Centers to Drive Efficiency
February 2021 Investing in Our Global Shared Services Centers to Drive Further Efficiency • We have nearly doubled our headcount in our best - cost global business services centers in the past year, which allows us to more efficiently deliver core administrative processes and tasks for our internal
Slide 20: Commitment to Repurchases Underscores Opportunity to Grow Per Share Value
February 2021 C OMMITMENT TO R EPURCHASES U NDERSCORES O PPORTUNITY TO G ROW P ER S HARE V ALUE Highly Cash Generative Business Supports Our Capital Allocation Policy • The inherent advantages of our Professional Services business model result in strong, sustained cash flow performance – Highly vari
Slide 21: FY'24E Key Metrics
February 2021 FY’24E K EY M ETRICS More than Doubling Our Adjusted EPS and Free Cash Flow by FY’24 A DJUSTED 1 EPS Page 21 • We are confident in our ability to more than double our adjusted 1 EPS and free cash flow by FY’24 (from FY’20) • Key elements of our plan: – Outgrowing the industry with mid
Slide 22: Appendix
February 2021 Appendix
Slide 23: Footnotes
February 2021 Footnotes 1 Excludes the impact of non - operating items, such as non - core operating losses and transaction - related expenses, restructuring co sts and other items. See Regulation G Information for a complete reconciliation of Non - GAAP measures. 2 Reflects segment operating perfor
Slide 24: As a Professional Services Business, AECOM Is Poised to Thrive
February 2021 As a Professional Services Business, AECOM Is Poised to Thrive Focused on our core higher - returning and lower - risk businesses Leader in key transportation, water and environment markets and ideally positioned advise clients on their ESG priorities Strengthened financial profile wit
Slide 25: Regulation G Information
February 2021 Regulation G Information Reconciliation of Revenue to Revenue, Net of Subcontractor and Other Direct Costs (NSR) Three Months Ended December 31, 2019 September 30, 2020 December 31, 2020 Americas Revenue $ 2,452.0 $ 2,732.3 $ 2,557.3 Less: subcontractor and other direct costs 1,546.4 1
Slide 26: Regulation G Information
February 2021 Regulation G Information Page 26 Twelve Months Ended Sep 30, 2018 Sep 30, 2019 Sep 30, 2020 Reconciliation of Income from Operations to Adjusted Income from Operations to Adjusted EBITDA Income from operations $ 392.7 $ 396.1 $ 381.5 Noncore operating losses & transaction related expen
Slide 27: Regulation G Information
February 2021 Regulation G Information FY21 GAAP EPS Guidance based on Adjusted EPS Guidance (all figures approximate) Fiscal Year End 2021 GAAP EPS Guidance $2.30 to $2.50 Adjusted EPS excludes: Amortization of intangible assets $0.13 Amortization of deferred financing fees $0.03 Restructuring $0.2
Slide 28: A=COM brivcies
A=COM brivcies