Slide 1: Q4 and Full Year 2023 Investor Presentation
Q4 and Full Year 2023 Investor Presentation March 6, 2024 Bird Construction Inc. (TSX:BDT)
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 Measures
Disclaimer TERMINOLOGY AND NON-GAAP & OTHER “Backlog” is a term representing the total value of all contracts awarded to the Company, less the total value of work completed on these FINANCIAL MEASURES contracts as of the date of the most recently completed quarter. The Company’s Backlog equates to
Slide 4: Unlocking Shareholder Value
TSX: TSX: BDT BDT Unlocking Team of over Shareholder Value 5,000 Led by an experienced management team Bird is positioned for A healthy and safe work environment with a collaborative, inclusive team culture Strong growth and profitability Disciplined growth strategy driving margin operational improv
Slide 5: Positioned for the Future
Positioned for the Future Our Foundation Our Team Our Strategy Purpose and Values Experienced 2024 Strategic Priorities Multidisciplinary Team (2025-2027 Strategic Planning underway) Strong Team of Constructors WE PUT - Highly engaged, high-performance team - Be a top employer in Canada with a SAFET
Slide 6: Operations Overview
Operations Overview Over the past six years, Bird has diversified its revenue and transitioned to a highly collaborative and risk-balanced mix of projects, enhancing profitability and Adjusted EBITDA margins through its specialized services and delivery of complex projects across industrial, infrast
Slide 7: Bird delivers
Bird delivers its capabilities, services and innovative solutions across a range of sectors. Q4 and Full Year 2023 Investor Presentation 6
Slide 8: Profitability. Discipline. Diversification and Growth.
Business Strategy Profitability. Discipline. Diversification and Growth. The Company plans to retain in excess of two-thirds of net income to support continued growth beyond 2024. Profitability Margin Accretion Strategy Diversification and Growth The Company remains focused on margin accretion by le
Slide 9: Financial Highlights
Full Year Financial Highlights Key Performance Drivers Growth Profitability +18% +37% +44% Developing and attracting Top Talent 5.0% $1.33 $2,799 $139 Adj. EBITDA $72 Track record of accretive M&A, $101 EPS $50 $2,369 Margin(2) four in past four years Revenue ($M) Adj. EBITDA(1)($M) Net Income ($M)
Slide 10: Risk Balanced, Highly Collaborative, Diverse Backlog Mix
Risk Balanced, Highly Collaborative, Diverse Backlog Mix Future performance visibility supported by the robust combined backlog, characterized by accretive embedded margins and significant multi-year recurring revenue MSAs Backlog expected Collaborative delivery 62% to convert into Revenue over the
Slide 11: Project Pursuits and Recent Project Awards
Positioned for growth with a significant pipeline of projects Project Pursuits and with accretive embedded EBITDA margins and a robust bidding environment for disciplined pursuit of new work. Recent Project Awards Industrial: Bird bolsters capabilities, capacity, and Bird continues to pursue new rec
Slide 12: Canada’s Energy Transition and Electrification Partner
Canada’s Energy Transition and Electrification Partner Clean Power Power Distribution & Low Carbon & Green Critical, Rare & Transportation, Generation Electrified Systems Infrastructure Solutions Battery Minerals Manufacturing & Logistics • Wind and solar projects • Energization & startup services •
Slide 13: Longer Cycle, Significant Demand Trends
Longer Cycle, Significant Demand Trends Public and Private Clients $125 to 2022 Federal Budget estimated the investment in net-zero transition requires $125 billion to $140 billion annually $140 billion through 2050. Government programs supporting investments in transportation, energy, water and was
Slide 14: Environmental, Social, Governance
Environmental, Social, Governance Bird’s Environmental, Social, and Governance (ESG) program The four pillars of the Bird ESG program embed sustainability within the remains aligned to business, client, and industry demands. business to optimize our positive social and environmental impact by utiliz
Slide 15: Q4 and Full Year 2023 Financial Highlights
Q4 and Full Year 2023 Financial Highlights Three Months Ended Twelve Months Ended Y/Y Change Y/Y Change December 31, 2023 December 31, 2023 $ Millions (except per share amounts) Revenue $792.1 22.1% $2,798.8 18.1% $73.2 26.1% $240.5 19.2% Gross Profit 9.2% of Revenue (1) 8.6% of Revenue (1) $40.5 17
Slide 16: Sustained, Strong Financial Foundation with Flexibility for Continued Growth
Sustained, Strong in millions of Canadian dollars Financial Foundation December 31, 2023 Operating Cash Flow(4) with Flexibility for Accessible cash $ 80 Continued Growth Held in joint operations accounts $ 63 Restricted cash $ 35 140 Cash and cash equivalents $ 178 Very positive return and Loans an
Slide 17: 2024 Capital Allocation Priorities
2024 Capital Allocation Strong cash flows and significant liquidity to support a balanced approach to capital allocation, investing in excess of two thirds of Net Income to support Priorities profitable long-term growth and enhancing shareholder value. Balanced Approach to Capital Allocation Shareho
Slide 18: 2024 Outlook: Sustained Profitable Growth Momentum
2024 Outlook: Sustained Profitable Growth Momentum • Substantial 2023 organic Revenue growth and Gross Profit and Adjusted EBITDA margin accretion provide good momentum entering 2024. • Backlog of contracted work exceeded $3.4 billion, an all-time high for Bird, while Pending Backlog was $3.0 billio
Slide 19: Appendix
Appendix
Slide 20: What Sets Us Apart
What Sets Us Apart 2023 Working Track Record for Robust Backlog of Q4 2023 Revenue Full Year 2024 +26% Growth in Capital +27% from Strong Integration Sustainability-related +22% Y/Y Adj. EBITDA 5.0% Combined Backlog Dec. 31, 2022 and Retention Projects Disciplined and Continued focus Growing, divers
Slide 21: Revenue, Net Income, and Adjusted Earnings
Revenue, Net Income, and Adjusted Earnings Revenue Net Income Adjusted Earnings(1) $3,000 $80 $1.33 $1.40 $80 $1.50 +18% $1.38 $70 $70 $1.30 $1.20 $2,500 $60 $60 $0.96 $1.10 $0.93 $1.00 $2,000 $50 $0.80 $50 $0.86 $0.90 $0.80 $1,500 $40 $40 $0.70 $2,799 $72 $74 $0.60 $2,378 $2,220 $30 $0.44 $0.45 $1,
Slide 22: Risk Balanced Business Model Generating Growth and Profitability
Risk Balanced Business Model Generating Growth and Profitability Growing revenue and EBITDA 5-Year Revenue and Adjusted EBITDA(1) in millions of Canadian dollars $3,000 $2,799 $300 $2,500 $2,369 $250 $2,220 $2,000 $200 $1,504 $1,500 $1,376 $139 $150 $108 5.0% $101 $1,000 $82 4.9% $100 4.3% 5.5% $500
Slide 23: Core Markets
Core Markets 100% 90% Today, Bird is known for 80% 49% 51% 48% delivering complex and 70% sophisticated projects across the industrial, buildings and 60% 2023 infrastructure markets. 50% 12% 13% 15% We continue to grow across all 40% markets as we have been able to 30% achieve sustainable profitabil
Slide 24: Quote from Wayne Gingrich, CFO
“ Over the past six years, Bird has strategically diversified its revenue sources while shifting to a risk-balanced mix of work. Throughout this transition, Bird has enhanced its profitability and adjusted EBITDA margins. - Wayne Gingrich, Chief Financial Officer Q4 and Full Year 2023 Investor Prese
Slide 25: Diversifying Risk - Revenue by Contract Type
Diversifying Risk - Revenue by Contract Type in millions of Canadian dollars $29 $15 $55 • Public Private Partnership $59 $123 $102 $101 $121 (PPP) $150 Higher risk $177 • Design-Build-Finance • Complex Design-Build $1,236 $1,276 $1,334 $943 $792 • Stipulated Sum • Unit Price • Specified Design-Buil
Slide 26: Capital Markets Overview
$17.50 3.20% $943 M Capital Markets Share Price(1) Dividend Market Overview Yield(2) Capitalization (1) $8.01/$17.60 53,891,909 52 Week Low / High (1) Shares Outstanding (1) Organic and M&A Firm Analyst Contact Revenue Growth ATB Capital Chris Murray 416.520.0267 cmurray@atb.com Canaccord Genuity Yu
Slide 27: Q4 and Full Year 2023 Investor Presentation
Q4 and Full Year 2023 Investor Presentation Bird Construction Inc. (TSX:BDT) Q4 and Full Year 2023 Investor Presentation 26