Atkinsrealis Group Inc. · TSX:ATRL
Atkinsrealis — Investor Day (December 2024)
146 slides from Atkinsrealis's investor day presentation, Dec 19, 2024
Slide 1: 2024 Investor Day
2024 Investor Day
Slide 2: Welcome & Opening Remarks, Land Recognition
WELCOME & OPENING REMARKS, LAND RECOGNITION Denis Jasmin | Vice President, Investor Relations
Slide 3: Forward-Looking Statements, Forward-Looking Financial Information and Outlook
Forward-Looking Statements, Forward-Looking Financial Information and Outlook References in this presentation to the “Company”, “AtkinsRéalis”, “we”, “us” and “our” mean, as the context may require, AtkinsRéalis Group Inc. and all or some of its subsidiaries or joint arrangements or associates, or A
Slide 4: Non-IFRS Financial Measures and Ratios, Supplementary Financial Measures
Non-IFRS Financial Measures and Ratios, Supplementary Financial Measures, Total of Segment Measures and Non-Financial Information The Company reports its financial results in accordance with International Financial Reporting Standards (“IFRS”). However, the following non-IFRS financial measures and
Slide 5: Land Acknowledgement
Land Acknowledgement We acknowledge the land we are meeting on is the traditional territory of many nations including the Mississaugas of the Credit, the Anishnabeg, the Chippewa, the Haudenosaunee and the Wendat peoples and is now home to many diverse First Nations, Inuit and Métis peoples. We also
Slide 6: Today's Agenda
Today’s Agenda 8:30 AM Welcome & Opening Remarks, Land Recognition 10:05 AM Q&A Denis Jasmin | Vice President, Investor Relations Value Moment | Odyssey 10:35 AM Break Caroline D’Silva | Director, Learning and Talent Development, Canada 10:50 AM Nuclear Joe St. Julian | President, Nuclear Delivering
Slide 7: Value Moment
VALUE MOMENT Caroline D’Silva | Director, Learning and Talent Development, Canada
Slide 8: ODYSSEY: Investing in Our Early Careers
ODYSSEY: Investing in Our Early Careers Canadian early careers development program Launched in 2021 GROW ENGAGE RETAIN 18 months structured development PURPOSE | Engineering a Better Future for Our Planet and Its People VALUES | Safety • Integrity • Collaboration • Innovation • Excellence 8 AtkinsRé
Slide 9: Enabling Early-Careers Professionals to Develop and Grow
We Enable Early-Careers Professionals to Develop and Grow Their Career By: Developing Networking critical skills Learning from Career development the business planning Integrating into Mentoring our culture 9 AtkinsRéalis
Slide 10: Growing Globally, Investing Locally
Growing Globally, Investing Locally ▪ Graduate Development Program originated in the UK in 2007 ▪ Since UK launch, created best-in-class programs globally in Canada, US, India, Middle East and Asia Global Early Careers in 2023 Canada (includes programs in UK, US, AMEA) Graduate Development Program (
Slide 11: Delivering Excellence, Driving Growth
DELIVERING EXCELLENCE, DRIVING GROWTH Ian L. Edwards | President and Chief Executive Officer
Slide 12: Key Messages
Key Messages 1 Proven success of Pivoting to Growth strategy enables Delivering Excellence, Driving Growth Building world-class Engineering Services 2 and Nuclear company underpinned by operational excellence 3 Driving highly connected global organization reinforced by culture and end-to-end capabil
Slide 13: Building Strong Foundation at AtkinsRéalis (TSX: ATRL)
Revenue Building Strong Foundation at (for twelve-month period ended March 31, 2024) AtkinsRéalis (TSX: ATRL) 75% Engineering Services Regions4 27% UKI 18% USLA $8.9B 17% Canada Montréal, Canada ~$9B By Segment 13% AMEA Headquarters Market Cap2 12% Nuclear 7% Linxon 5% LSTK Projects Backlog 1% Capit
Slide 14: Driven by Our Purpose, Vision and Values
Driven by Our Purpose, Vision and Values PURPOSE Engineering a better future for our planet and its people VISION We create sustainable solutions that connect people, data and technology to design, deliver and operate the most complex projects VALUES Safety | Integrity | Collaboration | Innovation |
Slide 15: Authentic and Collaborative Culture
Authentic and Industry-Leading Culture of Excellence Focus on Safety Engagement Fueled by ED&I Collaborative Culture Enables Growth Attract and retain top talent ED&I is a business asset Committed to safety of ▪ 90% of employees are proud to ▪ Different views, experiences and all employees work with
Slide 16: Experienced and Diverse Board of Directors
Experienced and Diverse Board of Directors Skill / Competency Matrix1 Professions Services/Project Management CEO/C-suite Experience Risk Management Talent Management/Exec. Comp/ED&I William (Bill) L. Young Gary C. Baughman Mary-Ann Bell Board (Chair) GES Committee HR Committee (Chair) Engineering S
Slide 17: Board Priorities to Ensure World-Class Governance
AtkinsRéalis Board Priorities to Ensure World-Class Governance Strategy Oversight CEO Compensation › Recognitions ▪ Board Agenda item at ▪ 82% of compensation was every meeting variable and linked to Prestigious Compliance Leader performance in 2023 and Verification from the Ethisphere ▪ Provides st
Slide 18: Leadership Team with Deep Industry Experience
Leadership Team with Deep Industry Experience Ian L. Edwards Jeff Bell Andrée-Claude Bérubé James Cullens President and Chief Financial Officer General Counsel Chief Human Chief Executive Officer Resources Officer Christine Healy Philip Hoare Steve Morriss Richard Robinson President, Asia, Middle Ch
Slide 19: Strong Progress Since 2021 Investor Day
Strong Progress Since 2021 Investor Day Pivoting to Growth strategy focused on core geographic areas of operations and end markets targeted in the built and natural environment Key Accomplishments 2021 ▪ Industry-leading market AtkinsRéalis Services Annual 2022 2023 2024 Revised growth Long-Term Tar
Slide 20: Building World-Class Engineering Services and Nuclear Company
Building World-Class Engineering Services and Nuclear Company… New structure drives excellence in customer delivery with greater connectivity and focus Simplifying Business New Organizational Structure De-risked company ▪ Physical completion of Four Engineering Service Regions + Nuclear LSTK Project
Slide 21: End-to-End Capabilities in High-Growth End Markets
…With End-to-End Capabilities in Purposefully Chosen High-Growth End Markets WHAT WE DO End-to-end capabilities to lead projects at every stage Consulting, Engineering Project and Project Operations Capital Decommissioning Strategy and and Design Program Delivery and Maintenance Advisory Management
Slide 22: Nuclear Expertise Supports Clean, Affordable and Secure Energy
Nuclear Expertise Supports Evolution Towards Clean, Affordable and Secure Energy Exclusive rights of proprietary 8 unique technologies across Large CANDU® technologies Reactors, Small Modular Reactors Developing 1 GW CANDU® (SMRs), Fusion Reactors and MONARK Submarine Propulsion Reactors Life Waste
Slide 23: Distinctly Advantaged to Capture Growth from Key Secular Trends
Distinctly Advantaged to Capture Growth from Key Secular Trends Meeting Global Demand Decarbonizing Built Building Resiliency to Delivering New and for Clean Energy Environment Climate Change Repairing Aging Infrastructure The AtkinsRéalis Advantage ▪ Decades of pioneering ▪ Industry-leading carbon
Slide 24: Executing on Our Delivering Excellence, Driving Growth Strategy
Executing on Our Delivering Excellence, Driving Growth Strategy OPTIMIZE ACCELERATE EXPLORE OUR BUSINESS VALUE CREATION UNTAPPED POTENTIAL Drive industry-leading Expand investment in rapidly Identify next phase of major performance growing markets value-creation opportunities ▪ Leverage newly create
Slide 25: Utilizing Strong Balance Sheet and Accelerating Free Cash Flow
Utilizing Strong Balance Sheet and Accelerating Free Cash Flow to Invest for Growth Resilient Organic Strengthening Accelerating Disciplined Revenue Growth Balance Sheet Free Cash Capital Flow Allocation Reinvesting into the business and seeking accretive acquisitions to bolster global footprint 25
Slide 26: Introducing 2025 – 2027 Financial Targets
Introducing 2025 – 2027 Financial Targets Organic Growth Pillars Strong Balance Sheet Enablers >8% 17% – 18% Organic Segment +200 – 300bps ~80% – 90% Revenue Growth2 Adjusted EBITDA to Free Cash Flow Margin Engineering CAGR Segment Net Revenue improvement to Adjusted Net Services Regions Ratio2 by 2
Slide 27: Key Takeaways
Key Takeaways 1 Proven success of Pivoting to Growth strategy enables Delivering Excellence, Driving Growth Building world-class Engineering Services 2 and Nuclear company underpinned by operational excellence 3 Driving highly connected global organization reinforced by culture and end-to-end capabi
Slide 28: Engineering Services | UK & Ireland
ENGINEERING SERVICES | UK & IRELAND Richard Robinson | President, UK & Ireland
Slide 29: Key Messages
Key Messages 1 Continuing to drive growth from a market-leading position Capturing shift into Defence, Power & Renewables, 2 Buildings & Places and Water through well-established scale Utilizing differentiated, end-to-end technology and 3 advisory capabilities to enable higher quality backlog and de
Slide 30: UK & Ireland Snapshot
Revenue6 UK & Ireland Snapshot (for twelve- month period 75% Public7 WHO WE ARE WHAT WE DO ended March 31, By Customer Type 25% Private 2024) ▪ Leaders in Transportation, ▪ Connect people, technology Defence, Buildings & Places, and data to transform Water and Power & infrastructure and built Renewa
Slide 31: Long-Term Relationships with Key Customers Across the Region
Long-Term Relationships with Key Customers Across the Region Network Rail MOD1 Systems Feltham to Wokingham state-of-the-art Deliver projects, including cyber digital signaling systems expertise security, airworthiness and air provides greater reliability, resilience safety, systems engineering and
Slide 32: Large and Growing Addressable Market Supported by Tailwinds
Large and Growing Addressable Market Key UK Trends Supported by Significant Tailwinds Driving Market Growth Buildings & Places Potential Total ▪ $112B local government finance for 2024– 20253 Addressable Industry CAGR ▪ $39B for 40 hospitals by National Hospitals Program4 Transportation Markets Mark
Slide 33: Competitive Advantages Enable Our Ability to Win
Competitive Advantages Enable Our Ability to Win Utilizing scale Delivering Leveraging Servicing and market- differentiated our Global entire project leading position solutions Technology life cycle to build deep stemming from Center (GTC) to through distinct relationships technology align capabilit
Slide 34: Strategic Priorities to Drive Above-Market Growth
Strategic Priorities to Drive Above-Market Growth in Target Markets Solve most significant infrastructure challenges 1 through our growth programs Win work excellence and super charged 2 key account management (KAM) 3 Attract and develop the most talented people Extend market leadership in environme
Slide 35: Growth Programs Build on Advantages
1 2 3 4 Growth Programs Build on Advantages Delivering end-to-end solutions for our customers ▪ Integrate global expertise at regional level to enable end-to-end solutions for customers, drive differentiated value and deepen relationships Amp8 & Water Submarine Enterprise Energy Transition ▪ Bring t
Slide 36: Dedicated Key Account Management (KAM) Strategy
1 2 3 4 Dedicated Key Account Management (KAM) Strategy Focus on Top 30 Deliberate Actions to Deeper Client ▪ Targeting [10%+] Accounts + revenue and EBITDA growth [annually Expand/ by 2027] Wallet Share = Relationships Recent Key Wins ‘White Glove Treatment’ Network Rail: Contract award for provisi
Slide 37: Attracting, Developing and Retaining Our Diverse and Talented Workforce
1 2 3 4 Attracting, Developing and Retaining Our Diverse and Talented Workforce to Meet Growth Aspirations Attract and Develop Retain Our early careers recruitment (~ 800 in 2023) and development programs ▪ Continued progression in staff enable us to lead the competition for talent and address skill
Slide 38: Differentiators
1 2 3 4 Leading Capabilities to Support Growth Trends in Key Markets Sustainable Leading in Differentiating Environmental Design Net Zero through Digital Leadership across five key Differentiators environmental service lines Rapidly growing applied technology Strong capabilities and Our Key creates
Slide 39: Key Takeaways
Key Takeaways 1 Continuing to drive growth from a market-leading position Capturing shift into Defence, Power & Renewables, 2 Buildings & Places and Water through well-established scale Utilizing differentiated, end-to-end technology and 3 advisory capabilities to enable higher quality backlog and d
Slide 40: Engineering Services | Canada
ENGINEERING SERVICES | CANADA Stéphanie Vaillancourt | President, Canada
Slide 41: Key Messages
Key Messages Proven track record of delivering end-to-end 1 solutions from coast-to-coast in Transportation, Industrial, Buildings & Places and Power & Renewables 2 History of energy transition leadership enables us to capture market tailwinds related to Net Zero Fueling growth in Ontario and Wester
Slide 42: Canada Snapshot
Revenue6 Canada Snapshot (for twelve- month period 60% Public7 WHO WE ARE WHAT WE DO ended March 31, By Customer 2024) Type 40% Private ▪ Established market leader ▪ Offer global expertise, in energy transition and end-to-end capabilities and Transportation digital solutions to help communities, enh
Slide 43: Delivering Value for Canada's Leading Companies
Delivering Value for Canada’s Leading Companies BC Hydro Ministère des Transports 1974* et de la Mobilité durable Deliver major hydro and 1960* power grid projects; provide engineering services for EV charging stations, buildings Société de Transport and grid interconnections de Montréal 1991* Rio T
Slide 44: Growing Addressable Market Supported by Macro Tailwinds
Growing Addressable Market Key Canada Trends Supported by Macro Tailwinds Driving Market Growth Climate Change, Carbon Capture, Net Zero Potential Total ▪ Federal budget driving energy transition through capital deployment and tax schemes Addressable Industry CAGR Transportation Investment Markets M
Slide 45: Competitive Advantages Enable Our Ability to Win
Competitive Advantages Enable Our Ability to Win Servicing entire Leveraging Connecting life cycle of asset global expertise people, data through end-to- across end and technology to end capabilities markets and bolster customer geographies relationships Underpinned by our talent and people 45 Atkin
Slide 46: Strategic Priorities to Optimize Our Business
Strategic Priorities to Optimize Our Business Increase scale in underrepresented 1 markets, enabled by new brand and global capabilities Capture long-term growth tailwinds 2 from energy transition Leverage global expertise to 3 move up value stream Drive significant margin expansion 4 through busine
Slide 47: Increasing Scale in Underrepresented Canadian Markets
1 2 3 4 Increasing Scale in Underrepresented Canadian Markets Strategy to grow in Ontario & Western Canada ▪ Maintaining leading position in Québec while building on our foundations with key customers in other provinces ▪ Expanding on momentum from new brand to capture significant opportunity in und
Slide 48: Capturing Long-Term Growth Tailwinds From Energy Transition
1 2 3 4 Capturing Long-Term Growth Tailwinds From Energy Transition Utilizing homegrown, world-class Power & Renewables capability to help customers decarbonize operations and power a Net Zero future Leveraging Canada’s Renewables expertise Significant capital Why We Win to win growing share of crit
Slide 49: Moving Up Value Chain to Expand Margins
1 2 3 4 Moving Up Value Chain to Expand Margins and Accelerate Profitable Growth Strategic actions to move into front-end of value chain and position us earlier in the customer buying decision Benefits ▪ Leveraging global expertise locally Expand margins with ▪ Deploying digital capabilities improvi
Slide 50: Green Line
Case Study 1 2 3 4 Green Line Challenge Action Impact Designing, procuring, In December 2022, the City of Calgary selected Developed integrated “one- constructing and operating AtkinsRéalis (via CSix partnership) as Delivery team approach” with a “best public transit network Partner because of stron
Slide 51: Continuing Margin Improvement Journey
1 2 3 4 Continuing Margin Improvement Journey Foundation has been laid, but further enhancement remains at the forefront Further levers to increase margins: Established Margin High-margin backlog projects replacing legacy, lower-margin Enhancement Catalysts: master service agreements Became a more I
Slide 52: Key Takeaways
Key Takeaways Proven track record of delivering end-to-end 1 solutions from coast-to-coast in Transportation, Industrial, Buildings & Places and Power & Renewables 2 History of energy transition leadership enables us to capture market tailwinds related to Net Zero Fueling growth in Ontario and Weste
Slide 53: Engineering Services | United States, Latin America
ENGINEERING SERVICES | UNITED STATES, LATIN AMERICA Steve Morriss | President, United States, Latin America and Minerals & Metals
Slide 54: Key Messages
Key Messages Executing on clear plan with a view of becoming 1 top-10 provider in profitable, strong and growing US market Capitalizing on key tailwinds, bolstered by 2 government spend on aging infrastructure and clean energy solutions Land and Expand strategy is working, leading to 3 above market
Slide 55: USLA Snapshot
Revenue7 USLA1 Snapshot (for twelve- month period 61% Public8 WHO WE ARE WHAT WE DO ended March 31, By Customer Type 39% Private 2024) ▪ Market leader for services to ▪ Provide wide range of Department of Transportation technical and professional (DoT) customers and for services for public and disas
Slide 56: USLA Includes Global Minerals & Metals Business
USLA Includes Global Minerals Supported by Significant Tailwinds & Metals (M&M) Business Energy Transition ▪ Significant power grids WHO WE ARE WHAT WE DO modernization required ▪ Market leader for Minerals & ▪ Consultancy, engineering, design, ▪ Increased need and Metals engineering services enviro
Slide 57: US High Quality, Large and Growing Market
Key US Trends US is a High Quality, Large and Growing Driving Sustained Market Market Supported by Significant Tailwinds Growth Infrastructure gap ▪ Aging airport, highway, water, power and transport Potential Total infrastructure requires upgrades to support Addressable Industry CAGR economic growt
Slide 58: Competitive Advantages Enable Our Ability to Win
Competitive Advantages Enable Our Ability to Win Targeted sales Increasingly End-to-end People-first efforts in strong local capabilities culture, supported high-growth end capabilities provide unique by strong markets with supported by opportunity behaviors, training proven track global expertise t
Slide 59: Strategic Priorities to Drive Growth
Strategic Priorities to Drive Growth Accelerating organic and inorganic investments into profitable growing platform underpinned by high performing culture 1 Grow with current key customers Diversify where we have a strong presence 2 local to key customers Continue successful Land and Expand strateg
Slide 60: Expanding into High-Growth Geographies
1 2 3 4 Expanding into High-Growth Geographies Implementing hub strategy to secure foothold and leadership capabilities in these regions Investing in high-growth AtkinsRéalis Regional Hub initiatives AtkinsRéalis US Office Building capability to: ▪ Grow with current key customers to expand New York
Slide 61: Building Partnerships with Leading Public and Private Entities
1 2 3 4 Building Partnerships with Leading Public and Private Entities We have landed, securing key early contract wins across all markets and geographies with target customers Central Puget Sound Regional Transit Authority Washington State DOT Semiconductor Company Procurement, cost management and
Slide 62: M&A Program Will Support Land and Expand Strategy
1 2 3 4 M&A Program Will Support Land and Expand Strategy Strategic Filters Ideal Targets Geography End Markets Value Chain Culture ▪ Small and Mid-size in whitespace regions Position ▪ # of employees: ~300 - ▪ Capture whitespace ▪ Buildings & Places ▪ Prime positioning along ▪ Industry reputation o
Slide 63: Land and Expand in Action
Case Studies 1 2 3 4 Land and Expand in Action Challenge Action Impact ▪ Build up local team and supplement with key hires who know the Developing a stronger customer and partner with local businesses MTA train controls project relationship with ▪ Import AtkinsRéalis technology and experience from U
Slide 64: Stand-Out Culture: Attracting and Retaining Industry-Leading Team
1 2 3 4 Stand-Out Culture: Attracting and Retaining Industry-Leading Team to Drive Growth Attract Develop Retain ▪ Continually demonstrate commitment to ▪ Attention to every individual ▪ Conduct frequent surveys on employee purpose, values and exciting US journey ▪ Career vision, career plan, satisf
Slide 65: Key Takeaways
Key Takeaways Executing clear plan with a view of becoming 1 top-10 provider in profitable, strong and growing US market Capitalizing on key tailwinds, bolstered by 2 government spend on aging infrastructure and clean energy solutions Land and Expand strategy is working, leading to 3 above market gr
Slide 66: Engineering Services | Asia, Middle East and Australia
ENGINEERING SERVICES | ASIA, MIDDLE EAST AND AUSTRALIA Christine Healy | President, Asia, Middle East and Australia
Slide 67: Key Messages
Key Messages Driving growth through strong brand, strategic 1 positioning and long-standing local presence in rapidly-growing markets 2 Delivering innovative solutions as a partner of choice Leveraging global expertise to solve 3 customers’ most complex issues across critical infrastructure programs
Slide 68: AMEA Snapshot
Revenue6 AMEA Snapshot (for twelve- month period 78% Public7 WHO WE ARE WHAT WE DO ended March 31, By Customer 2024) Type 22% Private ▪ Market leader in Buildings & ▪ Provide a wide range of Places, Transportation, technical and professional Industrial and in energy services for leading transition i
Slide 69: Positioned to Drive Growth
Positioned to Drive Growth Key Macro Trends ▪ Urbanization and 4 6 5 2 population growth 3 1 7 ▪ Infrastructure development 8 ▪ Energy transition 9 Our Difference 1 Dubai 2 Abu Dhabi 10 ▪ Offices across the region, 3 Riyadh 11 4 AlUla 12 with 30+ year track record 5 Seoul in some markets 6 Shanghai
Slide 70: Competitive Advantages Enable Growth
Competitive Advantages Enable Growth ASIA MIDDLE AUSTRALIA EAST 30+ year heritage Industry-leading Energy transition in region with a Buildings & Places expertise with strong brand and capabilities end-to-end growing Industrial delivering global capabilities practice best-in-class programs 70 Atkins
Slide 71: Strategic Priorities to Drive Growth
Strategic Priorities to Drive Growth 1 Deliver exceptional solutions to customers 2 Diversify and grow identified markets 3 Leverage and deploy global expertise 71 AtkinsRéalis
Slide 72: New Murabba and The Mukaab
New Murabba and The Mukaab Reimagining downtown Riyadh with a modern vision of sustainability 15 min. city with a human-focused masterplan Featuring The Mukaab, a melding of technology and design in one of the largest built structures in the world How We Make the Difference: ▪ Delivering industry-le
Slide 73: King Salman Park (Riyadh)
King Salman Park (Riyadh) World’s largest urban park, increasing green cover and reducing temperatures How We Make the Difference: ▪ Bringing excellence in project management 16 km 2 7.2 km world’s largest pedestrian ▪ Deploying digital solutions for operational urban park walkway logistics ▪ Implem
Slide 74: Singapore Grand Prix
Singapore Grand Prix 15 years of consistent excellent delivery of world-class event How We Make the Difference: ▪ Focusing on sustainability ▪ Ensuring deep understanding of the customer ▪ Providing seamless contract management 264,000 >50 attendees contracts FIA Environmental Accreditation 74 Atkin
Slide 75: Energy Transition
Energy Transition Delivering value through innovative partnership AtkinsRéalis and John Holland Energy are teaming up in Australia, combining AtkinsRéalis’ engineering services and global expertise in renewable energy with John Holland Energy’s local knowledge and leading delivery capability ▪ Strat
Slide 76: Key Takeaways
Key Takeaways Driving growth through strong brand, strategic 1 positioning and long-standing local presence in rapidly-growing markets 2 Delivering innovative solutions as a partner of choice Leveraging global expertise to solve 3 customers’ most complex issues across critical infrastructure program
Slide 77: Q&A
Q&A AtkinsRéalis
Slide 78: Break
BREAK AtkinsRéalis
Slide 79: Nuclear
NUCLEAR Joe St. Julian | President, Nuclear
Slide 80: Key Messages
Key Messages Entering Nuclear super cycle, driven by global 1 demand for clean, affordable, reliable energy and ambitious global Net Zero targets 2 Building capacity by leveraging proprietary CANDU® technologies supported by Canadian government Strong and comprehensive set of 3 capabilities across e
Slide 81: Nuclear Snapshot
Local Expertise on a Global Scale Nuclear Snapshot Canada ▪ Support customers across Nuclear lifecycle with full spectrum of services from consultancy, EPC4 management services, field services, technology services, tooling, spare parts, reactor support and waste 23 Romania South 2 China 4 Korea mana
Slide 82: Competitive Advantages Enable Our Ability to Win
Competitive Advantages Enable Our Ability to Win Decades of Global Broad and High barriers expertise and reputation overlapping to entry enhance exclusive rights as an industry capabilities competitive to service leader for asset supporting moat CANDU® performance entire Nuclear reactors life cycle
Slide 83: New Alignment Strengthens Position Through Enhanced Focus
New Alignment Strengthens Position Through Enhanced Focus and Collaboration Enables comprehensive solutions supporting the entire Nuclear life cycle CANDU® Services Life Extension & Waste Management New Builds & New Builds Reactor Support & Decommissioning Reactor Support ▪ Trusted vendor to ▪ Origi
Slide 84: Life Extension & Reactor Support
New Alignment Strengthens Position Through Enhanced Focus and Collaboration Enables comprehensive solutions supporting the entire Nuclear life cycle CANDU® Services Life Extension New Waste New Builds & & Reactor Builds Management & Reactor Support Decommissioning Support 84 AtkinsRéalis
Slide 85: Aging CANDU Fleet Provides Growth Opportunity in Life Extension
CANDU ® Services Aging CANDU® Fleet Provides Significant Profitable Growth Opportunity in Life Extension Increase in ongoing operations and 1 maintenance spend by governments to support aging fleet ~$15B Potential Total Recognized world leader in reactor life Addressable Market1 2 extensions with re
Slide 86: Life Extension Pipeline: Opportunities from the CANDU Fleet
CANDU ® Services Life Extension Pipeline: Opportunities from the CANDU® Fleet 19 CANDU® refurbishment projects over next 10 years 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 Darlington-3 Bruce-6 Darlington-1 Bruce-3 Darlington-4 Bruce-4 Bruce-5 Pickering-5 Pickering-6 Pickering-7 Pickerin
Slide 87: Illustrative Example of Refurbishment Revenue Trajectory
CANDU ® Services Illustrative Example of Refurbishment Revenue Trajectory AtkinsRéalis Construction Partner PRE-WORK YEARS 1 - 2 YEARS 3 - 4 YEAR 5 ▪ Project ▪ Engineering ▪ Construction ▪ Commissioning ▪ Financing ▪ Procurement ▪ Closeout ▪ Budget Process ▪ Work Package Development Engineering and
Slide 88: Extending Cernavoda Reactors to Support Electricity Supply in Romania
CANDU ® Services Case Study Extending Cernavoda Reactors to Support Electricity Supply in Romania Background Action Impact Cernavoda Unit 1 CANDU® 6 Reactor Retube Engineering & Procurement and Unit expected to deliver will require Retube and Refurbishment Engineering work is underway additional 30
Slide 89: Exclusive Rights to Leading Global Technologies for Large Reactors
CANDU ® Services Exclusive Rights to Leading Global Technologies for Large Reactors CANDU® technology is at forefront of global interest in Nuclear energy as part of clean energy transition CANDU® CANDU® MONARK ▪ Record-setting performance – ability to operate ▪ CANDU® is one of six OEM2 technologie
Slide 90: Robust CANDU New Build Market Expansion
CANDU ® Services Robust CANDU® New Build Market Expansion Driven by Global Net Zero Targets 1K New Reactors COP281 recognized critical role of Nuclear needed by 20502 1 energy as green, secure and reliable solution for power generation Uniquely positioned with scale, expertise and $15B Estimated Ave
Slide 91: CANDU and CANDU MONARK: An 85 Year Opportunity
CANDU ® Services CANDU® and CANDU® MONARK : An 85 Year Opportunity Large project wins lay foundation for long-term captured work 10-12 30 3 30 10 YEARS YEARS YEARS YEARS YEARS Test, Design, Professional Life Professional Decontaminate and Build Services Extension Services & Decommission (D&D) Buildi
Slide 92: New Builds
New Alignment Strengthens Position Through Enhanced Focus and Collaboration Enables comprehensive solutions supporting the entire Nuclear life cycle CANDU® Services Life Extension New Waste New Builds & & Reactor Builds Management & Reactor Support Decommissioning Support 92 AtkinsRéalis
Slide 93: Waste Management & Decommissioning Delivers Steady Volume
CANDU ® Services Waste Management & Decommissioning Delivers Steady Volume and Margin Enhancement Key Tailwinds in the US Key Tailwinds in the UK ▪ Actively work with Department of Energy (DoE) to address some of world’s most dangerous radioactive sites ▪ Long-term relationship with Sellafield and s
Slide 94: Disposing of U-233 and Preserving Legacy
CANDU ® Services Case Study Disposing of U-233 and Preserving Legacy Challenge Action Impact Safely and securely storing, ~50% of the 1,000+ original container material Project won the DoE’s processing and disposing of inventory was transferred to other users or Secretary’s Achievement United States
Slide 95: Services Support Position Across Multiple Markets
CANDU ® Services Services Support Position Across Multiple Markets Actively pursuing opportunities in four market segments with eight unique technologies 4 MARKET Large Small Modular Fusion Submarine SEGMENTS Reactors Reactors Reactors Propulsion Reactors ▪ European ▪ GE Hitachi ▪ UK AEA ▪ Pressuriz
Slide 96: Comprehensive Capabilities Across New Build Market
CANDU ® Services Comprehensive Capabilities Across New Build Market Large Reactors Small Modular Reactors Fusion Submarine Propulsion ▪ Core subcontractor for EDF Energy ▪ Support GE-Hitachi in developing ▪ Architect Engineer in Engage ▪ Deliver projects that underpin new build program in civil, sta
Slide 97: Our Talent Fuels Growth Goals
Our Talent Fuels Growth Goals Talent is a Unique Industry Advantage Our Programs ▪ Access to work on significant Nuclear projects ▪ Early career starter program includes across the world hiring ~200 graduates across the sector ▪ Great place to work as indicated by high employee ▪ UK early careers pr
Slide 98: Key Takeaways
Key Takeaways Entering Nuclear super cycle, driven by global 1 demand for clean, affordable, reliable energy and ambitious global Net Zero targets 2 Building capacity by leveraging proprietary CANDU® technologies supported by Canadian government 3 Strong and comprehensive set of capabilities across
Slide 99: Together Changes Everything
TOGETHER CHANGES EVERYTHING A structured approach to deliver excellence and drive growth Philip Hoare | Chief Operating Officer
Slide 100: Key Messages
Key Messages Continuing our growth trajectory by building global 1 capabilities and market position, leveraging our scale and bringing the best of AtkinsRéalis to our customers around the world Improving margins through a company-wide program 2 to rapidly identify, prioritize and deliver transformat
Slide 101: Unifying Our Organization
Unifying Our Organization President & CEO Ian L. Edwards President President President President President COO Philip Hoare Canada US & LATAM UK & Ireland AMEA Nuclear Stéphanie Vaillancourt Steve Morriss Richard Robinson Christine Healy Joe St. Julian Capability Development & Deployment Driving gro
Slide 102: Data-Led Approach with Clear Targets
Data-Led Approach with Clear Targets Actions KPIs Enable growth and market distinctiveness through development Capabilities of capability value propositions and our approach to Win Work Win-rate per market / region (%) Create value and competitive Provide insights on capabilities to prioritize withi
Slide 103: How We Win
1 How We Win Sustaining our organic growth through a focused, well-structured, data-led approach with proven results ▪ Consolidated operations across key geographies with scale and capability Data-led approach Focus ▪ Exited low-performing countries and business lines with internal ▪ Prioritized exp
Slide 104: Leveraging Our Global Scale Across Key Markets
1 Leveraging Our Global Scale Across Key Markets Rapidly share market-specific insights and develop trusted long-term relationships with key customers Other Identify new opportunities and leverage Minerals & Metals global capabilities to drive growth through global market plans Water Transportation
Slide 105: World-Class Offering | Integrating Our Knowledge and Capabilities
1 World-Class Offering | Integrating Our Knowledge and Capabilities Developing global market plans to identify growth opportunities and deploy global capability to win and deliver effectively Global market leader in Canadian expertise in hydro power, dams, transmission Power & Renewables Strong orga
Slide 106: Royal Commission AlUla
Royal Commission AlUla Saudi Arabia’s First UNESCO World Heritage Site ▪ Collaborative partnerships ▪ End-to-end capabilities ▪ Digital solutions 100 well-preserved ▪ Net Zero best practices tombs 52 hectare ancient city - Hegra Resources mobilized from UKI Digital multiple regions for bidding AMEA
Slide 107: Port of Prince Rupert
Port of Prince Rupert ▪ Climate Change Risk Assessment using AtkinsRéalis’ City Simulator, an advanced resilience simulation tool ▪ Develop resilience capacity building strategies for federal transportation assets Climate change expertise, US GIS capabilities, project Digital managers & specialist C
Slide 108: Improving Performance via Margin Enhancement Program
2 Improving Performance via Margin Enhancement Program Targeting 200-300 bps improvement in Segment Adjusted EBITDA / Net Revenue margins by 20271 Current Opportunities Under Execution Maturing global capabilities and markets improves opportunity identification, enhances pipeline and increases win r
Slide 109: Structured Program Creating Momentum & Generating Results
2 Structured program creating momentum & generating results Driving cost and productivity improvements Data led, whole company approach Granular performance ▪ Margin expansion plans owned by regional presidents and analytics support regions functional leaders ▪ Improvement targets set for 2024 to 20
Slide 110: Our Global Technology Center Sets Us Apart
3 Our Global Technology Center Sets Us Apart Expanding GTC will enable growth and drive higher margins 17 years of driving growth and Number of GTC employees New Delhi improving margins 6,100 5,250 Gurugram Noida 4,550 Cairo ~3,900 (2024) ~3,400 ~3,5001 highly skilled, experienced technical engineer
Slide 111: Key Takeaways
Key Takeaways Continuing our growth trajectory by building global 1 capabilities and market position, leveraging our scale and bringing the best of AtkinsRéalis to our customers around the world Improving margins by 200-3001 basis points through 2 a company-wide program to rapidly identify, prioriti
Slide 112: Financial Targets and Capital Allocation
FINANCIAL TARGETS AND CAPITAL ALLOCATION Jeff Bell | Chief Financial Officer
Slide 113: Key Messages
Key Messages Proven success of Pivoting to Growth strategy and 1 financial targets driving significant shareholder value creation 2 Strengthened balance sheet resulting in strong foundation for growth 3 New financial targets to deliver growth, operating margin improvement and material positive cash
Slide 114: Pivoting to Growth Strategy Driving Significant Revenue and EBIT Growth
Pivoting to Growth Strategy Driving Significant Revenue and EBIT Growth in AtkinsRéalis Services Revenue2 ($M) Segment Adj. EBIT2 ($M) AtkinsRéalis Services Backlog2 ($M) LSTK Projects Capital AtkinsRéalis Services LSTK Projects Capital AtkinsRéalis Services Record-high 8,634 backlog 7,371 766 13,74
Slide 115: Mainly Exceeding Financial Targets Under Pivoting to Growth Strategy
Mainly Exceeding Financial Targets Under Pivoting to Growth Strategy 2022 2023 Results Results 2022-2024 Targets (Announced at 2021 Investor Day) 6.8% 18.3% AtkinsRéalis Services Organic Revenue Growth1 4% – 6% Annually AtkinsRéalis Services 8.7% 8.9% Segment Adjusted EBIT to 8% – 10% Annually Segme
Slide 116: Delivering on LSTK Exit Strategy
Delivering on LSTK Exit Strategy Significantly de-risked business through wind down of LSTK Projects ▪ Backlog decreased to $299M at March 31, 2024, from $1,167M at end of 2021 ▪ Largely physically completed the two Ontario projects ▪ REM project continues to progress well ▪ Discussions remain ongoi
Slide 117: Strengthened Balance Sheet Resulting in Strong Foundation for Growth
Strengthened Balance Sheet Resulting in Strong Foundation for Growth Net Limited Recourse & Recourse Debt to On Path to Investment Grade Adjusted EBITDA Ratio1 ▪ Positive net cash generated from operating 2.9x activities in H2 2023 and Q1 2024 ▪ Stronger cash flow will provide balance sheet flexibil
Slide 118: Framework for Long-Term Value Creation
Framework for Long-Term Value Creation Disciplined 2027 Revenue Growth + Margin Improvement + Cash Flow Conversion + Capital Allocation Goals ▪ Focusing on chosen ▪ Optimizing pricing ▪ Converting higher ▪ Maintaining strong Revenue high-quality, high- opportunities EBITDA into cash balance sheet gr
Slide 119: Success Across Regions and Capabilities to Drive Revenue Growth
Success Across Regions and Capabilities to Drive Revenue Growth Revenue Engineering Potential Nuclear M&A1 Services Market growth super cycle impact strategic growth Exiting in chosen priorities Linxon and geographies LSTK Projects $1.8B – and end markets Nuclear $2.0B Linxon LSTK Projects Linxon LS
Slide 120: Path to Achieving Margin Expansion Goal
Path to Achieving Margin Expansion Goal Engineering Services Segment Adjusted EBITDA Nuclear Adjusted EBIT to to Segment Net Revenue Ratio1 Segment Revenue Ratio 17% – 18% 12% – 14% ▪ Premium operating margin business due to unique nuclear services experience and Leveraging and expanding capabilitie
Slide 121: Significantly Improving Operating Cash Flow Generation
Significantly Improving Operating Cash Flow Generation Operating Cash Flow ($M) Net cash generated from operating activities excluding LSTK Projects Operating Cash Flow to Net cash used for operating activities from LSTK Projects 2 Free Cash Flow ▪ Past negative operating cash flow mainly due to LST
Slide 122: Strong Balance Sheet and Increasing Free Cash Flow Fuel Capital Allocation
Strong Balance Sheet and Increasing Free Cash Flow Fuel Disciplined Capital Allocation Capital Allocation Priorities Maintain strong Invest in the business Return capital to balance sheet Accelerate strategy shareholders Improve net debt leverage ratio through organic and Normalized dividends to ach
Slide 123: Intending to Exit Non-Core Businesses
Intending to Exit Non-Core Businesses Linxon Joint Venture Highway 407 ETR ▪ Offers engineering, procurement, management ▪ 6.76% ownership interest in toll road in Greater Toronto Area and construction services through 51% / 49% ▪ Highway 407 ETR operates, maintains and manages 108km all- AtkinsRéal
Slide 124: Strategic Approach to Value Creation through M&A
Strategic Approach to Value Creation through M&A Strategic Filters Aligned with our chosen Strong cultural Expand high quality-high growth alignment capabilities end markets Qualitative Criteria Financial Criteria Advances strategy to Land and Expand in US Accretive to earnings and cash flow Bolster
Slide 125: Introducing 2025 – 2027 Financial Targets
Introducing 2025 – 2027 Financial Targets Organic Growth Pillars Strong Balance Sheet Enablers >8% 17% – 18% Organic Segment +200 – 300bps ~80% – 90% Revenue Growth2 Adjusted EBITDA to Free Cash Flow Margin Engineering CAGR Segment Net Revenue improvement to Adjusted Net Services Regions Ratio2 by 2
Slide 126: Key Takeaways
Key Takeaways Proven success of Pivoting to Growth strategy and 1 financial targets driving significant shareholder value creation 2 Strengthened balance sheet resulting in strong foundation for growth 3 New financial targets to deliver growth, operating margin improvement and material positive cash
Slide 127: Closing Remarks
CLOSING REMARKS Ian L. Edwards | President and Chief Executive Officer
Slide 128: Why Invest in AtkinsRéalis
Why Invest in AtkinsRéalis Proven success of Building world-class Driving highly Capturing energy Accelerating free Pivoting to Growth Engineering Services connected global transition and cash flow to invest for strategy enables and Nuclear company organization infrastructure super growth through De
Slide 129: Q&A
Q&A AtkinsRéalis
Slide 130: Appendix
Appendix AtkinsRéalis
Slide 131: Endnotes
Endnotes (See also the cautionary statement regarding non-IFRS financial measures and ratios, supplementary financial measures, total of segment measures and non-financial information at slide 4 of this presentation.) 1. Organic revenue growth (contraction) is a non-IFRS ratio comparing organic reve
Slide 132: Endnotes Continued
Endnotes Continued (See also the cautionary statement regarding non-IFRS financial measures and ratios, supplementary financial measures, total of segment measures and non-financial information at slide 4 of this presentation.) 8. Adjusted EBITDA is a non-IFRS financial measure that does not have a
Slide 133: Reconciliation Tables
Reconciliation Tables (in $M except otherwise indicated) A. Organic Revenue Growth 2023 B. Organic Revenue Growth 2022 Organic Organic Foreign Acquisition / Foreign Acquisition / Revenue Revenue revenue Revenue Revenue revenue Variance exchange Disposal Variance exchange Disposal 2023 2022 growth 20
Slide 134: Reconciliation Tables
Reconciliation Tables (in $M except otherwise indicated) D. Net limited recourse and recourse debt to Adjusted EBITDA ratio in $M, except ratio March 31, 2024 December 31, 2023 December 31, 2022 Limited recourse debt 398.5 398.3 400.0 Recourse debt 1,491.4 1,420.5 1,470.6 Less: Cash and cash equival
Slide 135: Executive Bios
Executive Bios AtkinsRéalis
Slide 136: Ian L. Edwards
Ian L. Edwards was appointed President and Chief Executive Officer (CEO) of AtkinsRéalis on October 31, 2019. On June 11, 2019, he was named Interim President and CEO and became a member of its Board of Directors. He has over 30 years of global experience in delivering complex infrastructure and res
Slide 137: Richard Robinson
Richard Robinson is President, UK and Ireland of AtkinsRéalis and a member of the Executive Committee. In his current role, he is responsible for continuing the company’s strong growth in the region and maintaining its leading market position across multiple sectors including transportation, infrast
Slide 138: Stéphanie Vaillancourt
In the fall of 2023, Stéphanie Vaillancourt was appointed President, Canada, for AtkinsRéalis. Her mandate is to lead teams from various sectors such as Engineering Services, Operations & Maintenance and Capital in delivering projects in a collaborative manner while leveraging capabilities from empl
Slide 139: Steve Morriss
Steve Morriss joined AtkinsRéalis in January 2021 and has served in multiple senior leadership roles prior to being named President, United States, Latin America, and Minerals & Metals in January 2024. In his current role, he is responsible for continuing to grow the business in the region and maint
Slide 140: Christine Healy
Christine Healy joined AtkinsRéalis on February 19, 2024, as President for Asia, Middle East and Australia (AMEA). A seasoned global executive, she brings more than 20 years of experience in successful management of multibillion-dollar businesses, adept navigation of mergers and acquisitions, and ac
Slide 141: Joe St. Julian
Joe St. Julian joined AtkinsRéalis as President of Nuclear on April 1st, 2022. He is based in Houston, Texas and reports to Ian L. Edwards, President and CEO. As President of the global Nuclear sector, he is responsible for continuing the successful expansion of the nuclear business comprised of thr
Slide 142: Philip Hoare
Philip Hoare is the Chief Operating Officer of AtkinsRéalis and a member of the Executive Committee. His role is focused on driving growth and delivering operational excellence by strengthening the deployment of global capabilities across the organization to deliver greater value and support to our
Slide 143: Jeff Bell
Jeff Bell joined AtkinsRéalis on February 11, 2020 as Executive Vice-President and was appointed as Chief Financial Officer (CFO) on April 14, 2020. Prior to joining AtkinsRéalis, Mr. Bell was Group Chief Financial Officer at Centrica Plc, a UK FTSE listed energy services and solutions company. He j
Slide 144: Andrée-Claude Berube
Andrée-Claude Bérubé has over 20 years of experience in corporate and commercial law, including regulatory counsel in environmental and energy law. Andrée-Claude was appointed General Counsel of AtkinsRéalis in December 2022. In her role, Andrée-Claude leads both the company’s legal and integrity te
Slide 145: James Cullens
James Cullens is responsible for overseeing all aspects of the company’s Human Resources activities globally. He has over 25 years of international experience in human resources roles. Mr. Cullens joined AtkinsRéalis in 2017, when the company acquired WS Atkins plc where he was Group Director, Human
Slide 146: Nigel White
Nigel W.M. White is Chief Risk Officer at AtkinsRéalis. He joined the Company in August 2019, reporting directly to Ian L. Edwards, President and Chief Executive Officer, and is part of the Executive Committee. Based in London, United Kingdom (UK), he leads the Project Performance and Risk Oversight