Slide 1: Q1 2023 Investor Presentation
Q1 2023 Investor Presentation May 10, 2023 Bird Construction Inc. (TSX:BDT) BIRD CONSTRUCTION INC. INVESTOR PRESENTATION 1
Slide 2: Disclaimer
Disclaimer This presentation contains forward-looking statements and information (“forward-looking statements”) within the meaning of applicable Canadian securities laws. The forward-looking statements contained in this presentation are based on the expectations, estimates and projections of managem
Slide 3: Disclaimer: Terminology and Non-GAAP Measures
Disclaimer TERMINOLOGY AND NON-GAAP & OTHER FINANCIAL MEASURES Throughout this presentation, management uses certain terminology and financial measures that do not have standard meanings under IFRS and are considered specified financial measures. These include non-GAAP financial measures, non-GAAP f
Slide 4: Disclaimer: Terminology and Non-GAAP Measures (continued)
Disclaimer TERMINOLOGY AND NON-GAAP & OTHER FINANCIAL MEASURES (continued) • “Current Ratio” is a supplementary financial measure representing the percentage derived by dividing total current assets by total current liabilities. • “General and Administrative expenses as a percentage of revenue” is a
Slide 5: Positioned For Growth on Strong Business Foundation
Positioned For Growth on Strong Business Foundation Bird Construction TSX: BDT A healthy and safe Team of 5000+ Bird is a Canadian construction and maintenance company providing a work environment is Experienced comprehensive scope offering and a diversified portfolio of services to non-negotiable.
Slide 6: Constructing a Strong Foundation
Constructing a Strong Foundation Created a Strong Key Near-Term Foundation Strategic Priorities Improved geographic and end market diversification Enhance cross-selling opportunities Increased recurring revenue Continue to improve margins Reduced risk profile of backlog Maintain financial flexibilit
Slide 7: Values
VAUES Experienced – Leveraging our talent leadership team Multidisciplinary Team – Deep bench strength and recruiting for the future Strong Team of Constructors – Robust people programs supporting continuous learning and development – Continuous improvement and innovation focus – Committed to Divers
Slide 8: Values
Values WE PUT SAFETY WE LEAD WE ARE WE ARE DRIVEN WE CREATE FIRST WITH HONESTY STRONGER TOGETHER TO DO GREAT WORK OPPORTUNITY A healthy and safe work We speak and act with Success is a team effort. We built our name on quality. Rooted in a solid environment is non- integrity, clarity and care Our in
Slide 9: Q1 2023 Highlights
Sustained Momentum, Revenue Growth, Record Combined Backlog Confidence in 2023 margin improvements Q1 2023 Highlights Year-over-year organic revenue growth $536.5M 12.8% Q1 2023 Revenue Year-over-year growth Healthy seasonal earnings $5.1M $0.10 Net Income EPS $16.1M 3.0% Record combined Backlog and
Slide 10: What Sets Us Apart
What Sets Us Apart Q1 2023 Revenue Q1 2023 TTM Adj. Record Combined Q1 2023 Working + Self Perform + Growing +12.8% Y/Y EBITDA 4.1% Backlog Capital +20% Y/Y Capabilities National Portfolio Disciplined and Positive Growing Strong balance Track record of Elevated strategic momentum on recurring sheet
Slide 11: Risk Balanced Business Model Generating Growth and Profitability
Risk Balanced Business Model Generating Growth and Profitability Growing TTM Revenue and healthy EBITDA Margin 5-Year Revenue and Adjusted EBITDA Margin • Improving margins through increased self-perform activity, $2,500 in millions of Canadian dollars 2,438 10% strategic organic growth, acquisition
Slide 12: Highly Collaborative, Diverse Backlog Mix
Highly Collaborative, Diverse Backlog Mix Strong visibility to continued revenue and margin growth through 2023 Collaborative Backlog expected to delivery models in Growing Portfolio of Recurring Revenue 67% convert into Revenue over the >70% Backlog and Pending Contracts in Pending Backlog next 12
Slide 13: Expanded Capabilities Aligned to High Growth Sectors
Expanded Capabilities Aligned to High Growth Sectors Executing Well on Strategic Pillars Positioned for growth with a significant pipeline of projects and a robust bidding environment for TEAM disciplined pursuit of new work. • World class safety program • Highly engaged, high-performance team with
Slide 14: Significant Demand Trends – Public and Private Clients
Significant Demand Trends – Public and Private Clients Budgets support significant growth in infrastructure FEDERAL INFRASTRUCTURE INVESTMENT PROGRAMS & BUDGET 2023 Canada Infrastructure Bank: Budget 2023 announced an investment of at least $3.0B over 13 years to support a more sustainable, secure,
Slide 15: Positioned to Capture Growth in Key Sectors
Positioned to Buildings Construction Future Energy Services Horizontal Civil Works Structural Civil Works Services Capture Growth in Key Sectors Diverse range of services and self- Electrical and One Pass Trenching / perform scopes Heavy Civil Services Powerline & Telecoms Instrumentation Utilities
Slide 16: Permanent Modular Construction: Achieving New Heights
Permanent Modular Construction: Achieving New Heights Increasing awareness of the benefits of modular construction Bird has a growing portfolio of permanent modular projects. The modular approach provides cost savings and enhanced cost predictability, as well as a substantially reduced construction
Slide 17: Energy Transition Partner
Energy Transition Partner Delivering critical energy solutions The evolving energy landscape demands significant investment in electrical infrastructure to achieve decarbonization goals. Bird has been a key long-term partner for many clients constructing and maintaining the energy systems that power
Slide 18: Leveraging Innovation and Technology
Leveraging Innovation and Technology Building Information Modelling & Maintenance, Repair, Leveraging Smart Building Virtual Design and Construction and Operation Management Innovative Solutions Performance Technology Utilizing integrated multi-disciplinary Multi-year maintenance and turnaround Leve
Slide 19: Stack Modular
Stack Modular Integrated solution bridging the gap between site and modular construction. Structural steel modular buildings up to 40-storeys for multi- family, hospitality, senior (long-term care) and student housing, and resource clients. Rapid Delivery Across Canada & The USA Opportunities Market
Slide 20: Mass Timber
Mass Timber Bird is a North American leader in wood construction with unmatched expertise, experience, and supply chain knowledge. ~1.2B ~$460M 26 Completed 6 Projects Under Projects Construction in Canada >$3B Targeted Mass Timber Pursuits www.bird.ca Updated as of February 2023. BIRD CONSTRUCTION
Slide 21: Environmental, Social, Governance
Environmental, Social, Governance o Sustainable Construction o Future Energy BUILD GREEN o Stack Modular o Prefabrication o Digital Construction o Centre for Building WORK GREEN Performance o Supply Chain Management o Waste Management o Health, Safety & Environment o Indigenous Relations o Community
Slide 22: 2022 ESG Highlights
2022 ESG Highlights BOARD WOMEN New Employee Resource Groups >$800,000 >$132,000 Total community investment Indigenous community investment spend BIRD CONSTRUCTION INC. INVESTOR PRESENTATION 22
Slide 23: Financial Highlights Q1 2023
Financial Highlights Q1 2023 Three Months Ended Y/Y Change March 31, 2023 $ Millions (except per share amounts) Revenue $536.5 12.8% Gross Profit $39.8 (4.3%) 7.4% of Revenue (1) General and Administrative $31.6 0.8% 5.9% of Revenue (1) Adjusted EBITDA(2) $16.1 (9.8%) 3.0% of Revenue (1) Net Income
Slide 24: Sustained, Strong Financial Position
Sustained, Strong Financial Position Q1 2023 in millions of Canadian dollars March 31, 2022 23.8% 1.22 0.24x Accessible cash $ 48 Long-term Loans & Current Adjusted Net Debt/ Borrowings to Equity(1) Ratio(1) TTM Adjusted EBITDA(1) Restricted cash $ 48 Held in joint operations accounts $ 15 Syndicate
Slide 25: Capital Allocation Highlights
Capital Allocation Highlights Balancing profitable growth, significant financial strength, investments in the business and M&A Cash Generation M&A Dividends Operating Cashflow(1) Positioned to execute on the right – 10% dividend increase – $140 M&A opportunities on positive outlook in $120 December
Slide 26: Growth and Margin Trends Support 2023 Outlook
Growth and Margin Trends Support 2023 Outlook Q1 revenue growth and record combined backlog – Highly collaborative and diversified mix of sophisticated projects, record combined backlog and pending backlog, growing recurring revenue, and robust bidding market uphold positive outlook – Expect high si
Slide 27: Appendix
We bring life to vision Creating great things with you Appendix
Slide 28: Revenue, Net Income, and Adjusted Earnings
Revenue, Net Income, and Adjusted Earnings REVENUE NET INCOME ADJUSTED EARNINGS(1) $60 $1.20 $2,500 $60 $1.00 $0.93 $0.80 $0.96 $0.90 $50 $1.00 $0.80 $0.92 $2,000 $50 $0.86 $0.80 $0.70 $40 $0.80 $40 $1,500 $0.60 $30 $0.50 $30 $0.60 $2,378 $2,220 $51 $1,000 $50 $0.40 $46 $20 $43 $20 $42 $0.40 $1,504
Slide 29: Sector Volume Diversification
Sector Volume Diversification Balanced work programs 2022 between commercial and Balanced Sector institutional work, while largely Diversification maintaining Industrial work to drive stronger growth. 100% 20.0% 90% 26% 24% 34% 0.0% 80% 37% 37% 43% 44% 43% 56% 53% 70% 19% 66% -20.0 60% 15% The curre
Slide 30: Diversifying Risk - Revenue by Contract Type
Diversifying Risk - Revenue by Contract Type in millions of Canadian dollars $29 $15 $55 • Public Private Partnership $59 $135 $102 $101 $121 (PPP) Higher risk $177 $179 • Design-Build-Finance • Complex Design-Build $1,236 $1,342 $943 $792 • Stipulated Sum $806 • Unit Price • Specified Design-Build
Slide 31: Capital Markets Overview
Capital Markets Overview $8.51 ~5% ~460M Price as of May 5, 2023 BDT.TSX Dividend Yield(1) Market Capitalization $5.79/$9.55 53,774,639 52 Week Low / High Shares Outstanding ANALYST COVERAGE Firm Analyst Contact Firm Analyst Contact ATB Capital Chris Murray 416.520.0267 National Bank Maxim Sytchev 4
Slide 32: Q4 & Full Year 2022 Results Presentation
Q4 & Full Year 2022 Results Presentation March 8th, 2023 Bird Construction Inc. (TSX:BDT) Q1 2023 Investor Presentation Bird Construction Inc. (TSX:BDT) 32