Atkinsrealis Group Inc. · TSX:ATRL
Atkinsrealis — Q1 2022 Earnings Presentation
26 slides from Atkinsrealis's earnings presentation, May 5, 2022
Slide 1: SNC-Lavalin Presentation May 5, 2022
») SNC +LAVALIN PRESENTATION _> MAY 5, 2022 4
Slide 2: Forward-Looking Statements and Non-IFRS Financial Measures
2 Forward-Looking Statements, Forward-Looking Financial Information and Outlook 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 associates, or SN
Slide 3: Business Performance
B U SIN ESS PERFORMA N C E I AN E D WAR D S , P R E S I D E N T & C E O
Slide 4: Q1 Financial Highlights
4 Q1 Financial Highlights Consolidated SNCL Services LSTK Projects › Revenues of $1.9B, a 3.8% increase › Revenue of $1.7B was up by › Segment Adjusted EBIT was compared to Q1 2021 6.8%, or 8.4% based on organic negative $31M revenue growth*, representing a › Net income from continuing operations hi
Slide 5: Engineering Services
5 Engineering Services 2021 2022 REVENUES ($M) PROFITABILITY ($M) BACKLOG ($M) SEGMENT ADJ. EBIT SEGMENT ADJ. EBITDA** +7% (% of gross revenues) (% of segment net 10.0% revenues)* 14.6% 13.0% 8.2% 7.5% 3,617 3,861 1,050 1,138 119 115 86 85 Q1 2021 Q1 2022 Q1 2021 Q1 2022 Q1 2021 Q1 2022 As at March
Slide 6: Delivering Engineering Net Zero
6 Delivering Engineering Net Zero SNC-Lavalin is working with and supporting National Grid in the decarbonization of the energy system required for UK Net Zero Targets; has been selected by Five Holdings to drive the Design of the FIVE Jumeirah Village (Dubai) towards Net Zero Carbon; is also perfor
Slide 7: Nuclear
7 Nuclear REVENUES ($M) SEGMENT ADJUSTED EBIT ($M) 2.0% 13.9% 14.8% 229 232 32 34 Q1 2021 Q1 2022 Q1 2021 Q1 2022 Organic revenue growth* Q1 KEY HIGHLIGHTS › Sustained revenues and strong profitability in services - Reactor Support, Decommissioning and Waste Management › Good progress on Darlington
Slide 8: O&M
8 O&M REVENUES ($M) SEGMENT ADJUSTED EBIT ($M) (3.7)% 8.7% 8.6% 142 137 12 12 Q1 2021 Q1 2022 Q1 2021 Q1 2022 Organic revenue contraction* Q1 KEY HIGHLIGHTS › Continued stable financial performance with strong operational metrics across the portfolio › Mobilizing for operations start up on REM, Egli
Slide 9: Linxon
9 Linxon 2021 2022 REVENUES ($M) SEGMENT ADJUSTED EBIT ($M) BACKLOG ($M) 21.3% 4.6% 6 1,039 151 920 132 -5 (3.0)% Q1 2021 Q1 2022 Q1 2021 Q1 2022 As at March 31 Organic revenue growth* Q1 KEY HIGHLIGHTS › Strong organic revenue growth mainly due to progress on projects in the US › Segment Adjusted E
Slide 10: Capital
10 Capital REVENUES ($M) SEGMENT ADJUSTED EBIT ($M) 22 19 16 12 Q1 2021 Q1 2022 Q1 2021 Q1 2022 Q1 KEY HIGHLIGHTS › No dividend received from Highway 407 ETR in Q1 2022 and Q1 2021 › H407 ETR traffic increased by 37% vs Q1 2021, mainly supported by the removal of COVID-19-related restrictions by the
Slide 11: LSTK Projects
11 LSTK Projects 2021 2022 REVENUES ($M) SEGMENT ADJUSTED EBIT ($M) BACKLOG ($M) -40% 1,597 246 -12 214 -31 957 Q1 2021 Q1 2022 Q1 2021 Q1 2022 As at March 31 Q1 KEY HIGHLIGHTS › Remaining 3 LSTK projects continue to progress towards completion; engineering & design completed on 2 projects and vehic
Slide 12: Financial Performance
12 FIN A N C IA L PERFORMA N C E JEFF BELL, CHIEF FINANCIAL OFFICER
Slide 13: Q1 Selected Financial Metrics
13 Q1 Selected Financial Metrics SNCL Services Engineering Services O&M (in M$, unless otherwise indicated) Q1 2022 Q1 2021 Change Nuclear Linxon Revenues REVENUES REVENUES ($M) ($M) PS&PM 1,872 1,798 4% Capital 16 22 (27)% 1,657 1,552 Total Revenues 1,888 1,820 4% Segment Adjusted EBIT – Total 109
Slide 14: Leverage and DSO
14 Leverage and DSO* NET LIMITED RECOURSE & RECOURSE DEBT TO NET LIMITED RECOURSE & RECOURSE DEBT TO ADJUSTED EBITDA RATIO*** RECONCILIATION ADJUSTED EBITDA RATIO*** (in M$, unless otherwise indicated) March 31 2022 3.4 4.0 Limited recourse 400 2.7 2.3 1.7 Recourse debt 1,174 Mar. 31 ’21 June 31 ’21
Slide 15: Free Cash Flow
15 Free Cash Flow* (in M$, unless otherwise indicated) Q1 2022 Segment Adjusted EBITDA* from SNCL Services 162 Change in working capital and other items from SNCL Services1 (103) Net cash generated from operating activities - SNCL Services 59 Income taxes paid (14) Interest paid (22) 2 Corporate cos
Slide 16: Reaffirming 2022 Outlook
16 Reaffirming 2022 Outlook 2022 Target 2021 Actual SNCL Services organic revenue growth* Between 4% and 6% n/a1 SNCL Services segment Adjusted EBIT to segment revenue ratio Between 8% and 10% 10.6% Segment Adjusted EBITDA to segment net revenue ratio* - Engineering Services Between 14% and 16% 17.0
Slide 17: Conclusion
17 C ON C LU SION I AN E D WAR D S , P R E S I D E N T & C E O
Slide 18: Conclusion
18 Conclusion › Company’s core business is executing well and delivering strong financial performance › Well-positioned across all core markets, with a solid backlog and strong pipeline of new business opportunities, fueled by governments investing in new infrastructure and sustainability initiative
Slide 19: Questions & Answers
19 QU ESTION S & A N SWER S
Slide 20: Appendix
A PPEN D IX
Slide 21: Financial Targets (2022-2024)
21 Financial Targets (2022-2024) 2022-2024 Target 2021 Actual SNCL Services organic revenue growth* (annually) Between 4% and 6% n/a1 SNCL Services segment Adjusted EBIT to segment revenue ratio (annually) Between 8% and 10% 10.6% Engineering Services Between 8% and 10% 10.6% Nuclear Between 13% and
Slide 22: LSTK Projects Update
22 LSTK Projects Update Eglinton Trillium Réseau Express Métropolitain (REM) As at March 31, 2022 Client Infrastructure Ontario City of Ottawa CDPQ Backlog ($M) ~115 ~200 ~550 Approximate Completion >90% ~80% ~65% Expected Substantial 2022 2023 2024 Completion Year • Engineering & design completed a
Slide 23: LSTK Projects Backlog Phasing
23 LSTK Projects Backlog Phasing 600 500 400 (in $M) 300 200 100 0 2022 (Last 9 months) 2023 2024
Slide 24: 2021 Quarterly Comparative Restated Segmented Figures
24 2021 Quarterly Comparative Restated Segmented Figures (in millions of $) Q1 2021 Q2 2021 Q3 2021 Q4 2021 FY 2021 Margin % Engineering Services Revenues 1,049.6 1,061.2 1,039.3 1,216.3 4,366.4 Segment Adjusted EBIT 86.2 95.2 93.0 189.5 464.0 10.6% Segment Adjusted EBITDA* - restated 118.5 126.1 12
Slide 25: 2021 Quarterly Comparative Restated Segmented Figures
25 2021 Quarterly Comparative Restated Segmented Figures (in millions of $) Q1 2021 Q2 2021 Q3 2021 Q4 2021 FY 2021 Margin % LSTK Projects Revenues 245.8 234.4 263.0 164.1 907.2 Segment Adjusted EBIT (11.9) (25.3) (32.4) (233.0) (302.6) n.a. Segment Adjusted EBITDA* - restated (6.0) (20.2) (25.0) (2
Slide 26: Endnotes
26 Endnotes 1. Adjusted diluted EPS is a non-IFRS ratio based on adjusted net income (loss), itself a non-IFRS financial measure, and does not have a standardized definition within IFRS and therefore may not be comparable to similar measures presented by other issuers. Further details, including an