Stantec Inc · TSX:STN
Stantec — Investor Presentation (March 2022)
24 slides from Stantec's investor presentation, March 2022
Slide 1: Investor Presentation March 2022
Investor Presentation March 2022
Slide 2: Cautionary note regarding forward-looking statements and non-IFRS and other financial measures
Cautionary note regarding forward-looking statements and non-IFRS and other financial measures Certain statements contained in this presentation constitute forward-looking information and statements within the meaning of applicable securities law (collectively, "forward-looking statements"). Forward
Slide 3: A global leader in sustainable engineering & design
A global leader in sustainable engineering & design Net Zero Global 100 #17 Sustainability- Linked Loan Carbon neutral Ranked the most 1st globally to link to LEADERS IN SUSTAINABILITY for 2022, 2030 targets sustainable design and Bloomberg GEI. 1st in validated by SBTi in line engineering firm Cana
Slide 4: Stantec at a glance
Stantec at a glance GROWTH 25,000 7.0% STN PEOPLE Employees Globally 10-Year Adjusted Diluted TSX & NYSE EPS CAGR(1) INNOVATION EXCELLENCE 400 65+ YEARS CA$7.0B(2) Offices Worldwide Of Uninterrupted Profitability Market Capitalization 1. Adjusted diluted EPS CAGR is a non-IFRS measure (discussed in
Slide 5: 2021 acquisitions will drive synergistic revenue growth
2021 acquisitions will drive synergistic revenue growth Continued growth in Northern Europe GROWTH 3 acquisitions in 3 acquisitions in the United States Driven by Values in the Australia Netherlands helps public and private support clients navigate the energy transition enhance our PEOPLE sustainabi
Slide 6: 2021 Record earnings
2021 Record earnings Record EPS Adj Diluted(1) | Diluted Net Revenue $2.42 | $1.80 $3.6B $2.42 ▲ on stronger margins, 2023 ▲ 2.6% on a constant Real Estate Strategy, and lower currency(1) basis taxes Q4 2021 Record Adjusted EBITDA Margin(1) Record Backlog 15.8% $5.1B ▲ 10 bps despite 83 bps ▲ 17.3%,
Slide 7: Engineering, Architecture and Environmental Services
Engineering, Architecture and Environmental Services BUSINESS OPERATING UNITS (2021 Net Revenue) GROWTH ENVIRONM ENTAL ENERGY & INFRASTRUCTURE WATER BUILDINGS SERVICES RESOURCES $1003M $786M $736M $615M $496M PEOPLE INNOVATION EXCELLENCE Signatory to the UN Global Compact Stantec is a signatory to t
Slide 8: Infrastructure
Infrastructure 2021 Net revenue by sector Roadways Stantec’s Infrastructure group is a leader in transport system design and GROWTH community development. 28% Community Dev of 2021 We design infrastructure to be accessible, sustainable, resilient, and Transit & Rail net revenue PEOPLE people-friendl
Slide 9: Water
Water 2021 Net revenue by sector Water Treatment Our Water group designs water projects that improve the health and Conveyance 21% GROWTH quality of life across communities and build resilience to natural disasters and climate change. Water Resources of 2021 Wastewater Treatment We help communities
Slide 10: Buildings
Buildings 2021 Net revenue by sector Commerical Stantec’s Buildings group provides consulting and design services for Healthcare 20% GROWTH built, natural, and organizational environments. Civic Education of 2021 We guide clients through a process that incorporates sustainable, Industrial net revenu
Slide 11: Environmental Services
Environmental Services 2021 Net revenue by sector Water Stantec’s Environmental Services group provides a wide array of Oil & Gas 17% GROWTH conservation, ecosystem restoration, and sustainability services. Buildings Power & Dams of 2021 Collaborates with our other business operating units to preser
Slide 12: Energy & Resources
Energy & Resources 2021 Net revenue by sector Power Stantec’s Energy & Resources group delivers utility-scale and microgrid 14% GROWTH renewable energy generation engineering and design services. Mining of 2021 Oil & Gas We design for increasingly severe weather events and remedy existing net revenu
Slide 13: Carbon neutral Net zero
Carbon neutral Net zero A GLOBAL LEADER IN SUSTAINABILITY Pledged to be carbon neutral 1.5ºC science-based emissions for our 2022 operational reduction targets validated by emissions. SBTi. Committed to sustainability 13
Slide 14: Governance
Governance A diverse board with exceptional backgrounds A GLOBAL LEADER IN SUSTAINABILITY 38% Female Certified Integrated Management System: • Quality Management (ISO 9001) • Occupational Health & Safety Management (OHSAS 45001:2018) • Environmental Management (ISO 14001:2015) • IT Service Managemen
Slide 15: Social leadership
Social leadership Community Engagement (CE) Inclusion & Diversity Gender Pay Equity Top 50 Workplaces America’s A GLOBAL LEADER IN SUSTAINABILITY $60M by 2030 We support I&D through A review of our pay practices Committed to investing a further partnerships to gain access to top found that women hav
Slide 16: Stantec promotes sustainability through its client work
Stantec promotes sustainability through its client work Our increased 2021 results will be released next month with our annual Sustainability report GROSS REVENUE ALIGNED TO UN SUSTAINABLE DEVELOPMENT GOALS A GLOBAL LEADER IN SUSTAINABILITY 2020 49% 2019 45% $- $1,000 $2,000 Gross Revenue (CA$ milli
Slide 17: Strategic growth priorities aligned with UN SDGs
Strategic growth priorities aligned with UN SDGs COASTAL ECOSYSTEM SMART CITIES AND ENERGY RESILIENCE RESTORATION URBAN PLACES TRANSITION US$300B1 US$9,000B1 US$1,700B2 US$13,040B3 A GLOBAL LEADER IN SUSTAINABILITY Sustainable Cities Affordable and Sustainable Cities Life on Land and Communities Cle
Slide 18: The clear leader in sustainability
The clear leader in sustainability Amongst Engineering and Design Companies INDEPENDENT RATINGS OF ENGINEERING & DESIGN PEERS A GLOBAL LEADER IN SUSTAINABILITY Peers CDP ISS ESG Sustainalytics Name and Market Cap Score (1) Quality Score (2) ESG Risk Rating (3) ($M CAD) 2021 2020 2019 E S G Stantec 6
Slide 19: Q4 2021 Financial performance
Q4 2021 Q4 2021 CPS Energy Headquarters San Antonio, Texas, US Financial performance 19
Slide 20: Q4 2021 results
Q4 2021 results Net Revenue Adj EBITDA and margin ($ millions) ($ millions, % of net revenue) Q4 2021 Q4 2020 Change $139 | 16.1% $142 | 15.5% % Year- (In millions of Canadian dollars, over-year except per share amounts and percentages) $ $ change Net revenue 916.2 861.7 6.3 Project margin(1) 506.6
Slide 21: Full year 2021 results
Full year 2021 results Net Revenue Adj EBITDA and margin ($ millions) ($ millions, % of net revenue) 2021 2020 Change $579 | 15.7% $574 | 15.8% % Year- (In millions of Canadian dollars, over-year except per share amounts and percentages) $ $ change Net revenue 3,636.1 3,684.5 (1.3) Project margin(1)
Slide 22: Liquidity and capital allocation
Quarterly and TTM Liquidity and capital allocation Operating Cash Flow ($ millions) $703 million deployed to acquisitions in 2021 $123 million returned to shareholders in 2021 9.1% increase in annualized dividend for 2022 Q4 2021 Capital returned to shareholders Cash flow from continuing operations
Slide 23: Key trends entering 2022
Key trends entering 2022 INFRASTRUCTURE SUPPLY CHAIN SECURITY SUSTAINABILITY PEOPLE STIMULUS SPENDING KEY TRENDS ENTERING 2022 US - US$1.2 trillion • Semiconductors • Extreme weather • Strong engagement UK - £257 billion • Vaccines • Climate solutions • Strategic hires empowering AU - AU$178 billion
Slide 24: 2022 Outlook
2022 Outlook Strong trends back robust multi-year growth outlook Geography 2022 regional outlook 2022 Annual • High single digit organic growth Targets • Record backlog Range • US stimulus spending in H2 2022 Net revenue growth 18% to 22% United States 2022 OUTLOOK Adjusted EBITDA as % of net revenu