Atkinsrealis Group Inc. · TSX:ATRL
Atkinsrealis — SNC-Lavalin Group — Shareholder Meeting (2014)
32 slides from Atkinsrealis's shareholder meeting presentation, 2014
Slide 1: Investor Relations Presentation 2014
2014 INVESTOR RELATIONS PRESENTATION 1
Slide 2: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS 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 SNC-Lavalin Group Inc. or one or more of its subsidiaries or joint arr
Slide 3: We Are Back
WE ARE BACK We are making solid progress on our journey toward industry leading returns. More specifically, we are targeting outstanding performance in: › Ethics, compliance, safety and corporate social responsibility › Client value and service › Investor returns › Employee recruiting and retention
Slide 4: Living Our Values
LIVING OUR VALUES Our employees across the company embrace these values, and endeavour to reflect them in their daily work. 4
Slide 5: Dealing with the legacy of past decisions but remaining strong
WE ARE DEALING WITH THE LEGACY OF PAST DECISIONS – BUT WE A LEGACY OF OVER REMAIN STRONG We have largely completed a major $0.5 house cleaning, and taken more than $0.5 billion in write-offs over the last two years due to decisions of the past. BILLION IN WRITE-OFFS IN 2012 & We still have over $700
Slide 6: We fully believe we have touched bottom in the turnaround
WE FULLY BELIEVE ANNUAL WE HAVE TOUCHED 7,209.9 8,091.0 7,913.2 REVENUES (IN MILLIONS $) BOTTOM IN THE 385.9 TURNAROUND OF 306.3 THIS COMPANY We are now firmly focusing on an exciting future of solid risk management and growth. ANNUAL 36.4 NET INCOME (IN MILLIONS $) 2011 2012 2013 6
Slide 7: 2013 Financial Results Summary
2013 FINANCIAL RESULTS SUMMARY While 2013 was REVENUE BACKLOG CASH AND CASH EQUIVALENTS (IN MILLIONS $) (IN MILLIONS $) a challenging year 10,088.0 10,133.4 8,287.8 1,231.0 1,174.9 1,108.7 financially, we retained a good backlog of over $8 billion and $1.1 billion in cash and cash equivalents. 2011
Slide 8: 2013 Financial Results Summary: Dividends and Share Price
0.85 0.89 0.93 2013 FINANCIAL DIVIDENDS RESULTS SUMMARY ($) We also remained an attractive investment, with consistently competitive dividends and 51.08 47.79 a strengthening stock price SHARE 40.32 throughout 2013. PRICE ($) 2011 2012 2013 8
Slide 9: Keeping Our Commitment
KEEPING OUR COMMITMENT Last year, we said we would make major improvements for future growth and profitability. In the next part of this presentation I will tell you what we achieved. What we said What we did Become ethics & compliance leader Launched world-class ethics & compliance system Attain be
Slide 10: We Are Building a Top-Tier Engineering and Construction Company
WE ARE BUILDING A TOP-TIER ENGINEERING AND CONSTRUCTION COMPANY We have made major progress in the fundamental rebuilding of the company and we are stronger and more competitive i i in i the h global l b l marketplace k l than h at anytime in the last few years. 10
Slide 11: Transformative Growth: Our Five-Year Plan
TRANSFORMATIVE GROWTH OUR FIVE-YEAR PLAN As presented at last year’s AGM, we are responding to the current industry context with a five-year strategic plan that we expect will make us a Tier-1 service-focused, efficient and respected global E&C company, with leadership positions in oil & gas, mining
Slide 12: We Have Great Employees to Help Get Us There
WE HAVE GREAT EMPLOYEES TO HELP GET US THERE Our 30,000 dedicated and talented employees are strategy. They are helping re fully committed to our strategy. re-establish establish SNC-Lavalin as a profitable global provider of ethical, safe and sustainable client-focused engineering and construction
Slide 13: Ethics and Compliance Transformation
ETHICS AND COMPLIANCE TRANSFORMATION We set a clear goal: to become the global benchmark for ethics and compliance in our industry and a clean-business role model worldwide. So what have we achieved? 13
Slide 14: Ethics and Compliance Transformation
ETHICS AND COMPLIANCE TRANSFORMATION We are well on our way to attaining our objective, with all systems for a world-class ethics and compliance framework fully staffed with an industry leading team. We have: › Validation from third-party global experts that we are on the right track › Reversed any
Slide 15: Health and Safety Transformation
HEALTH AND SAFETY TRANSFORMATION With more mature systems, better reporting, better investigation and follow-up, we are quickly progressing toward best-in-class performance in health and safety. 15
Slide 16: Health and Safety Transformation
HEALTH AND SAFETY TRANSFORMATION We had 32% fewer recordable incidents in 2013 compared to 2012. 2005 This puts us among the very top H&S performers in our industry worldwide 2013 16
Slide 17: Leadership Transformation
LEADERSHIP TRANSFORMATION Jean Beaudoin Jim Burke Robert G. Card Darleen Caron Charles Chebl We rebuilt our leadership team by pairing our best performers with new, seasoned executives. Dale Clarke Réjean Goulet Gerry Grigoropoulos Christian Jacqui Charles Rate We now have one of the most talented,
Slide 18: Systems Transformation
SYSTEMS TRANSFORMATION We are implementing state-of-the-art management systems to improve client service by enhancing cost, schedule and quality performance. Project Financial HR Management Business Management Management Systems Systems System System Development Development Systems + Supports global
Slide 19: Organizational Transformation
ORGANIZATIONAL TRANSFORMATION We have undertaken a large-scale transformation of our organization that has made us a more efficient, integrated and customer customer-focused focused company. We are well on our way to becoming “one-company” for both customers and employees. 19
Slide 20: Strategy – Key Markets
STRATEGY – KEY MARKETS As announced at last year’s AGM, our three key markets are Resources, Power, and Infrastructure. By consolidating our operating units into these three sectors, we have improved market focus and efficiency, and enhanced teamwork. Resources, Power Infrastructure Environment & Wa
Slide 21: Strategy – Key Services
STRATEGY – KEY SERVICES We are one of very few firms with expertise at scale in engineering, construction, procurement, financing & asset management, and operations & maintenance.This is a key differentiator in our industry, and a powerful vehicle for delivering outstanding value to our stakeholders
Slide 22: Strategy – Key Geographies
STRATEGY – KEY GEOGRAPHIES We are making excellent Continued progress in the implementation growth focus of an enhanced global geographic structure for better cost EUROPE NORTH efficiencyy, compliance p and AMERICA ASIA competitive positioning. PACIFIC MIDDLE EAST AND In addition to our focus on the
Slide 23: Strategy – Infrastructure Concession Investments (ICI)
STRATEGY – INFRASTRUCTURE CONCESSION INVESTMENTS (ICI) Now let’s look at the progress we are making in the implementation of the ICI component of our strategy, which will allow us to continue to outperform in asset management and results. 23
Slide 24: Development and Divestment Strategy – ICI
DEVELOPMENT AND DIVESTMENT STRATEGY – ICI We will remain an aggressive development investor, and will continue to deploy capital more efficiently. We are actively managing our portfolio to create value: › Sold the majority of our interest in the Astoria II power station, and in the process of sellin
Slide 25: AltaLink Sale – Unlocking and Creating Value for Our Shareholders
ALTALINK SALE – UNLOCKING AND CREATING VALUE FOR OUR SHAREHOLDERS Our expertise and experience in asset management, combined with our domain expertise and project capability, has resulted in excellent returns for many of our assets. Maximizing the synergies between our asset management and E&C capab
Slide 26: Strategic Scorecard
STRATEGIC SCORECARD Focus on Accelerated Growth Markets Health & Safety Excellence Seeking transformational growth Achieved top-tier industry in oil & gas, while remaining performance strong in other key markets ON- GOING Increase % of Revenues from Services The Result Systems Excellence Upgrading k
Slide 27: 2012: A year of discovery
In conclusion, I would characterize our journey as 2012 Was a year of discovery 2
Slide 28: 2013: A year of house cleaning
In conclusion, I would characterize our journey as 2013 Represented a year of house cleaning 28
Slide 29: 2014: A year of rebuilding and consolidating
In conclusion, I would characterize our journey as 2014 Is a year of rebuilding and consolidating We are on the exit path of the turnaround, and we have a solid strategy that is stable and well underway. 29
Slide 30: 2015: The beginning of a return to industry-competitive performance
In conclusion, I would characterize our journey as 2015 Will be the beginning of a return to industry- competitive performance 30
Slide 31: We are rebuilding our company and our reputation
We are rebuilding our company and our reputation for a successful and profitable future. 31
Slide 32: Merci Thank You
MERCI THANK YOU Clients Shareholders Employees Partners Communities 32