Wsp Global Inc · TSX:WSP
Wsp Global — Q3 2020 Earnings Presentation
22 slides from Wsp Global's earnings presentation, Nov 4, 2020
Slide 1: Q3 2020 Results
Q3 2020 Results November 4, 2020
Slide 2: Cautionary Statement and Non-IFRS Measures
Q3 2020 Results CAUTIONARY STATEMENT AND NON-IFRS MEASURES CAUTIONARY STATEMENT • Certain information regarding WSP contained herein may constitute forward-looking statements. Forward-looking statements may include estimates, plans, objectives, expectations, opinions, forecasts, projections, guidanc
Slide 3: A Continued Adaptation to the COVID-19 Pandemic
Q3 2020 Results A CONTINUED ADAPTATION TO THE COVID-19 PANDEMIC • Flexible approach as local restrictions evolve 3 • Focus on meeting clients' expectations
Slide 4: Q3 2020 Major Wins
WS) Q3 2020 Major Wins
Slide 5: Major Q3 2020 Project Wins - Canada
Q3 2020 Results MAJOR Q3 2020 PROJECT WINS - CANADA Toronto Transit Commission (TTC) Capacity Enhancement Program 5 ◦ WSP will provide consulting services for the capacity enhancement of the Line 1 subway in Toronto over a period of 11 years
Slide 6: Major Q3 2020 Project Wins - Americas
Q3 2020 Results MAJOR Q3 2020 PROJECT WINS - AMERICAS METRA Project Management ◦ WSP will provide the full suite 6 of program management oversight services in support of Northeast Illinois Regional Commuter Railroad's $2 billion Capital Program.
Slide 7: Major Q3 2020 Project Wins - UK
Q3 2020 Results MAJOR Q3 2020 PROJECT WINS - UK HyNet North West’s CO2 pipeline ◦ Most advanced hydrogen and carbon capture, utilization and 7 storage (CCUS) project in the UK ◦ WSP to lead on planning, environmental, stakeholder and land advisory services
Slide 8: Q3 2020 Overview
WS) Q3 2020 Overview
Slide 9: Canada
Q3 2020 Results CANADA • 7.1% organic contraction in net revenues by segment • 21.4% adjusted EBITDA* margin by segment • Backlog* organic growth of 3.6% compared to Q4 2019 • Backlog* organic growth of 3.5% compared to Q3 2019 Net revenues breakdown - Q3 2020 Property & Environment 9 16% Buildings
Slide 10: Americas
Q3 2020 Results AMERICAS • 3.8% organic contraction in net revenues by segment • 21.0% adjusted EBITDA* margin by segment • Backlog* organic growth of 1.8% compared to Q4 2019 • Backlog* organic growth of 4.5% compared to Q3 2019 Net revenues breakdown - Q3 2020 Property & Environment 10 Buildings 1
Slide 11: EMEIA
Q3 2020 Results EMEIA • 5.1% organic contraction in net revenues by segment • 14.4% adjusted EBITDA* margin by segment • Backlog* organic growth of 9.1% compared to Q4 2019 • Backlog* organic growth of 5.1% compared to Q3 2019 Net revenues breakdown - Q3 2020 Environment 11 9% Property & Buildings I
Slide 12: APAC
Q3 2020 Results APAC • 4.5% organic growth in net revenues by segment • 20.0% adjusted EBITDA* margin by segment • Backlog* organic growth of 0.3% compared to Q4 2019 • Backlog* organic growth of 8.7% compared to Q3 2019 Net revenues breakdown - Q3 2020 Environment 12 Property & 10% Buildings 36% Re
Slide 13: Q3 2020 Financial Performance
13 Q3 2020 Financial Performance
Slide 14: Increased Margins and a Strong Financial Position
Q3 2020 Results INCREASED MARGINS AND A STRONG FINANCIAL POSITION • Adjusted EBITDA margin* of 17.6% exceeded expectations • Earnings before net financing expense and income taxes of $144.2 million • Free cash flow* of $150.3 million 14 • Cash inflows from operating activities of $233.4 million • He
Slide 15: Revenues and Net Revenues
Q3 2020 Results REVENUES AND NET REVENUES* REVENUES NET REVENUES* -3.8% $2,221.5 -0.4% $2,137.8 $1,693.6 $1,687.6 15 Q3 2019 Q3 2020 Numbers are quoted in million of dollars (except percentages). *Non-IFRS measure. This measure is defined in section 19, “Glossary of non-IFRS measures and segment rep
Slide 16: Backlog
Q3 2020 Results BACKLOG* $8,611.0 $8,481.0 $8,505.8 +5.2% Backlog organic growth $8,131.8 from Q3 2019 $7,905.7 16 +3.6% Backlog organic growth from Q4 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Numbers are quoted in million of dollars (except percentages). *Non-IFRS measure. This measure is defin
Slide 17: Profitability
Q3 2020 Results PROFITABILITY EARNINGS BEFORE NET FINANCING EXPENSE ADJUSTED EBITDA* ($) AND ADJUSTED EBITDA MARGIN* (%) AND INCOME TAXES +3.1% $288.2 $297.1 -14.5% 17 $168.7 $144.2 17.0% 17.6% Q3 2019 Q3 2020 Numbers are quoted in million of dollars (except percentages). *Non-IFRS measure. This mea
Slide 18: Net Earnings
Q3 2020 Results NET EARNINGS NET EARNINGS ATTRIBUTABLE TO SHAREHOLDERS ADJUSTED NET EARNINGS* ($ and per share) ($ and per share) $118.2 $104.3 $100.7 $93.7 18 $0.89 $0.92 $0.96 $1.04 per share per share per share per share Q3 2019 Q3 2020 Numbers are quoted in million of dollars (except percentages
Slide 19: Days Sales Outstanding (DSO)
Q3 2020 Results DAYS SALES OUTSTANDING (DSO)* 80 77 74 72 72 19 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Numbers are quoted in million of dollars (except percentages). *Non-IFRS measure. This measure is defined in section 19, “Glossary of non-IFRS measures and segment reporting measures” of the manag
Slide 20: Financial Position
Q3 2020 Results FINANCIAL POSITION As at September 26, 2020 Long-term debt $892.4 20 Less: Cash and cash equivalents $(595.4) Net debt* $297.0 Adjusted EBITDA* for the twelve-months ended September 26, 2020 $1,057.9 Net debt to adjusted EBITDA ratio* 0.3 Numbers are quoted in million of dollars (exc
Slide 21: Even though our 2019-2021 have been impacted, the underlying principles remain relevant
Q3 2020 Results Even though our 2019-2021 have been impacted, the underlying principles remain very much relevant in the context of these unprecedented times. Our aim We will We will strive to remains to be a continue to All in view Our clients provide an top-tier player build upon our of becoming r
Slide 22: Q&A
Q&A