Slide 1: Bird Construction Inc. Analyst Presentation
Bird Construction Inc. Analyst Presentation September 22, 2020 Teri McKibbon President & Chief Executive Officer Wayne Gingrich Chief Financial Officer
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 manage
Slide 3: Disclaimer Continued
DISCLAIMER CONTINUED Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not lim
Slide 4: Disclaimer Continued: Non-GAAP Measures and Terminology
DISCLAIMER CONTINUED Non-GAAP Measures and Terminology Throughout this presentation, management uses the following terms which have no standardized meaning prescribed by GAAP and are considered non-GAAP measures. Therefore, these terms may not be comparable with similar terms presented by other comp
Slide 5: Build Bird Strategy
BUILD BIRD STRATEGY Build the Build Business Relationships Diversification Customer First Profitable Growth Approach Efficient Processes & ESG Cost Structure Integrated Safe Production Bird Teams Build the Team National Builder Grow Our Talent 2021 – 2023 Strategic Employer of Planning un
Slide 6: Bringing Value to the Communities Where We Live, Work and Build
BRINGING VALUE TO THE COMMUNITIES WHERE WE LIVE, WORK AND BUILD Environmental Stewardship Social Responsibility Corporate Governance LEED certified projects and Support for health care foundations, A strong culture of ethical professionals food and clothing banks, community conduct First Zer
Slide 7: COVID-19 Response
COVID-19 RESPONSE Employee Initiated a pandemic response plan combined with a rigorous COVID-19 health and safety program Best practices developed and implemented for managers and site teams - self-assessment tools, Health and enhanced cleaning protocols and hygiene measures, physical distancing p
Slide 8: Diverse Expertise
DIVERSE EXPERTISE BUILDINGS LIGHT INDUSTRIAL NATURAL RESOURCES A leading builder with offices from coast-to-coast serving a broad scope of end- MODULAR POWER TRANSPORTATION markets. ENVIRONMENTAL UTILITIES INDUSTRIAL MAINTENANCE 8
Slide 9: Stuart Olson Transaction Update
STUART OLSON TRANSACTION UPDATE BDT:SOX Bird will acquire all of the issued and outstanding common shares of Stuart Olson (TSX: The SOX) for an aggregate consideration of $96.5 million. Agreement The aggregate consideration of $96.5 million will consist of $30.0 million cash and $66.5 Expected Closi
Slide 10: Bird Quarterly Highlights 2020 Q2
BIRD - BDT 2020 Q2 QUARTERLY HIGHLIGHTS $5.6M net income or $0.13 basic and diluted earnings per share $282.8M Improving $6.6M Adjusted Earnings on revenue of $282.8M Revenue Financial $12.3M Adjusted EBITDA (4.36% Adjusted EBITDA Margin) Performance Seven sequential quarters of TTM Adjusted EBITDA
Slide 11: Adjusted EBITDA 2020 Q2
ADJUSTED EBITDA 2020 Q2 Trailing Twelve Month (TTM) Adjusted EBITDA in millions of Canadian dollars $1,800M 5.50% 3.55% $1,565M $1,600M $1,419M $1,376M $1,404M 4.50% $1,382M $1,400M TTM Adjusted 3.55% $1,200M 3.50% EBITDA Q2 2020 $1,000M 2.35% 2.11% 7 2.50% $800M 1.81% $600M 1.50% Sequential quarter
Slide 12: Profitable Growth
PROFITABLE GROWTH REVENUE, ADJUSTED EBITDA AND ADJUSTED EARNINGS in millions of Canadian dollars except per share amounts Revenue Adjusted EBITDA Adjusted Earnings $1,440 $60.0 3.55% 4.00% $25.0 $0.53 $0.60 $1,420 3.50% $50.0 $20.0 $0.50 $1,400 3.00% $40.0 2.35% $0.40 $1,380 2.50% $15.0 1.81% 1.71%
Slide 13: Q2 Cash and Equivalents Leverage
Q2 CASH AND EQUIVALENTS LEVERAGE Cash and Cash equivalents Jun 30, Dec 31, Jun 30, Non-restricted cash position improved in millions of Canadian dollars 2020 2019 2019 at Q2’20 vs both December 31, 2019 Non-restricted cash and year-over-year $ 56.1 $ 36.1 $ 37.0 Restricted cash 28.3 10.2 8.2 Availab
Slide 14: Bird Cash Flows
BIRD CASH FLOWS in millions of Canadian dollars Operating Cash Flow (Before Non-Cash WC)(1) CAPEX(2) $35.0 $16.0 $30.0 $14.0 $25.0 $12.0 $10.0 $20.0 $8.0 $15.0 $30.2 $14.6 $14.4 $26.9 $6.0 $10.0 $16.0 $4.0 $7.2 $7.7 $5.0 $12.3 $5.6 $0.8 $2.0 $- $- 2017A 2018A 2019A 2019YTD 2020YTD 2017A 2018A 2019A
Slide 15: Strong Backlog and Pending Backlog
STRONG BACKLOG AND PENDING BACKLOG 2,500 June 30, 2020 in millions of Canadian dollars 2,000 575 Backlog 11.2% higher y/y 625 750 600 625 Seven sequential quarters of improving TTM Adjusted 1,500 500 300 225 EBITDA % 2020 Contracts 1,000 1,645 1,547 1,380 1,441 1,427 1,347 1,297 1,296 1,283 1,24
Slide 16: Diversifying Risk by Contract Type Supporting Resilience
DIVERSIFYING RISK BY CONTRACT TYPE SUPPORTING RESILIENCE in millions of Canadian dollars 100% 21.3 5.9 134.6 102.1 49.5 23.2 262.5 64.5 28.3 90% 176.9 46.5 179.5 88.5 80% 118.8 70% 60% 50% 40% 30% 20% 10% 0% 2017A 2018A 2019A 2019 Q2 YTD 2020 Q2 YTD 2019 Q2 2020 Q2 CM/CP/IPD Stip Sum, Unit Price & S
Slide 17: Pro Forma Entity
PRO FORMA ENTITY 17
Slide 18: Strong Balance Sheet Made Stronger
STRONG BALANCE SHEET June 30, 2020 Pro Forma MADE STRONGER Working Capital of $125.7 million with Bird Q2’20 Actual 26.1% 1.12X opportunity generate strong operating LT Debt to equity Current ratio cash flow Pro Forma Q2’20 32.7% 1.15X Balance sheet enables investment in long- term growth organi
Slide 19: Pro Forma Financials
PRO FORMA FINANCIALS Revenue – Pro Forma Adjusted EBITDA – Pro Forma Consensus Consensus $3,000 $120 $112 $2,488 $2,436 $2,348 $2,576 $101 $2,500 $2,306 $2,369 $2,161 $100 $2,248 $10 $2,364 $87 $80 $67 $2,000 $1,017 $967 $933 $2,052 $942 $76 $929 $892 $60 $57 $3 $31 $60 $Millions $1,500 $Million
Slide 20: Pro Forma Cash Flows
PRO FORMA CASH FLOWS Accretive acquisition at low leverage with strong cash flows to support dividend payments Operating Cash Flow (Before Non Cash WC)(1) Net Capex $80 $76 $20 Projected Projected $15 $16 $60 $54 $15 $12 $15 $14 $44 $13 $4 $35 $4 $4 $40 $27 $15 $4 $9 $9 $3 $10 $23 $49 $20 $2 $27
Slide 21: Pro Forma Leverage
PRO FORMA LEVERAGE Pro forma leverage remains one of the industry’s lowest, providing flexibility to successfully integrate and grow the combined business • The cash consideration will be funded through available capacity under Bird’s existing revolving credit facility with the Bank of Montreal. Non
Slide 22: Transaction Summary
TRANSACTION SUMMARY Creating a Premium Mid-Cap Construction Company Emerging as a leading mid-cap construction company, conveying broader public markets appeal and enhanced Pro forma revenue of approximately $2.5 billion, with a greater portion earned from recurring business Aggregate Backlog of gre
Slide 23: Capitalization
CAPITALIZATION September 18, 2020 $6.57 5.94% $42.52M Price as of September 18 Dividend Yield Shares Outstanding in Canadian dollars Business fundamentals - continuous $279.34M $3.96 / $7.30 improvement Market Capitalization 52 Week Low / High Liquidity improved year over year EDC performance
Slide 24: Questions
QUESTIONS
Slide 25: Appendix
Appendix 25
Slide 26: Proudly Marking 100 Years of Building Canada
PROUDLY MARKING 100 YEARS 2010s: Acquisition of OF BUILDING CANADA HJ O’Connell Nason and Stack Modular 1990s: Bird plays major role in Walmart’s Canadian roll-out 2020s: Diverse 1970s: Bird begins foray portfolio of into Alberta oilsands projects across construction 2000s: Acquisition Canada 1950s:
Slide 27: Mass Timber
MASS TIMBER Bird is a North American leader in wood construction with un- matched expertise, experience, and supply chain knowledge. >$185M completed or under construction >$175M pre construction >$1B opportunities across Canada 27
Slide 28: Stack Modular
STACK MODULAR Turnkey 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. Opportunities market poised for growth Schedule and Cost certai
Slide 29: Thank you
Thank you BIRD