Slide 1: Q2 2023 Investor Presentation
Q2 2023 Investor Presentation August 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 & Other Financial 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 Bird is a leading Canadian construction service and maintenance A healthy and safe Team of 5000+ company, providing integrated solutions and delivering best-in- work environment is Experienced class execution through a
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: Sustained Momentum, Revenue Growth, Record Combined Backlog
Sustained Momentum, Revenue Growth, Record Combined Backlog Confidence in 2023 margin improvements Significant y/y revenue growth Q2 2023 Highlights and positive outlook for improved earnings $686.4M 19.0% $13.7M $0.26 Q2 2023 Revenue Year-over-year Net Income EPS growth Growing combined Backlog and
Slide 10: What Sets Us Apart
What Sets Us Apart Track Record for Q2 2023 Revenue Q2 2023 TTM Adj. +19% YTD Growth in Q2 2023 Working Strong Integration + Growing Energy +19.0% Y/Y EBITDA 4.2% Combined Backlog Capital +10% Y/Y and Retention Transition Portfolio Disciplined and Positive Significant Strong balance Track record of
Slide 11: Highly Collaborative, Diverse Backlog Mix
Highly Collaborative, Diverse Backlog Mix Strong visibility to continued revenue and margin growth Backlog expected to Collaborative Growing Portfolio of Recurring Revenue delivery models in 67% convert into >70% Backlog and Pending Contracts in Pending Backlog Revenue over the next 12 months Backlo
Slide 12: 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 13: 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 14: 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 15: 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 16: 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 17: 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 18: 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 19: 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 20: 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 21: 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 21
Slide 22: Q2 2023 Financial Highlights
Q2 2023 Financial Highlights Three Months Ended Six Months Ended Y/Y Change Y/Y Change June 30, 2023 June 30, 2023 $ Millions (except per share amounts) Revenue $686.4 19.0% $1,222.9 16.8% Gross Profit $54.5 25.5% $94.4 11.0% 7.9% of Revenue (1) 7.7% of Revenue (1) General and Administrative $36.2 1
Slide 23: Sustained, Strong Financial Position
Sustained, Strong Financial Position Q2 2023 in millions of Canadian dollars June 30, 2023 23.4% 1.22 0.08x Accessible cash $ 55 Long-term Loans & Current Adjusted Net Debt/ Borrowings to Equity(1) Ratio(1) TTM Adjusted EBITDA(1) Restricted cash $ 31 Held in joint operations accounts $ 22 Syndicated
Slide 24: Capital Allocation Highlights
Capital Allocation Highlights Balancing profitable growth, significant financial strength, investments in the business and M&A Cash Generation Dividends M&A Operating Cashflow(1) – 10% dividend increase – Positioned to execute on the right $140 on positive outlook in M&A opportunities $120 December
Slide 25: Growth and Margin Trends Support 2023 Outlook
Growth and Margin Trends Support 2023 Outlook – High demand for Bird’s services and disciplined project selection driving growth: significant government funding for infrastructure and institutional projects; active commodities market with a significant pipeline of major projects; solid opportunities
Slide 26: Appendix
We bring life to vision Creating great things with you Appendix
Slide 27: Revenue, Net Income, and Adjusted Earnings
Revenue, Net Income, and Adjusted Earnings REVENUE NET INCOME ADJUSTED EARNINGS(1) $0.96 $2,500 $60 $1.00 $60 $1.00 $0.93 $0.92 $0.86 $0.80 $0.90 $0.90 $50 $0.80 $50 $2,000 $0.80 $0.80 $0.70 $0.70 $40 $40 $1,500 $0.60 $0.60 +16% $30 $0.50 $30 $0.50 $2,378 $2,220 $0.38 $0.39 $1,000 $50 $0.35 $0.40 $5
Slide 28: 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 29: 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 30: Capital Markets Overview
Capital Markets Overview $8.94 ~4.8% ~480M Price as of August 4, 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 Sytc
Slide 31: Q4 & Full Year 2022 Results Presentation
Q4 & Full Year 2022 Results Presentation March 8th, 2023 Bird Construction Inc. (TSX:BDT) Q2 2023 Investor Presentation Bird Construction Inc. (TSX:BDT) 31