Atkinsrealis Group Inc. · TSX:ATRL
Atkinsrealis — SNC-Lavalin Group — Q1 2016 Earnings Presentation
24 slides from Atkinsrealis's earnings presentation, May 5, 2016
Slide 1: First Quarter 2016 Conference Call Presentation
› First Quarter 2016 › Conference Call Presentation › May 5th, 2016
Slide 2: Agenda
Agenda Forward-looking statements › Denis Jasmin, Vice-President, Investor Relations CEO remarks › Neil Bruce, President and Chief Executive Officer Financial overview › Sylvain Girard, Executive Vice-President and Chief Financial Officer Q&A
Slide 3: 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 ar
Slide 4: Q1 2016 results
Q1 2016 results › Record revenue backlog of $13.4 billion at March 31, 2016. Q1 bookings of $3.4 billion › Bookings of $1.8 billion in Oil & Gas › Bookings of $1.1 billion in Power › Adjusted net income from E&C of $57.2 million, or $0.38 per diluted share › “STEP Change” program resulted in $38.5 m
Slide 5: Oil & Gas
Oil & Gas Q1 16 TTM EBIT/Rev. 7.2% New awards in Q1 2016 of $1.8B, backlog of $4.5B $0.8B contract award in March for the development of infrastructure and processing facilities for a gas field in the Middle East Contract award in April for the EPC of an asphalt production facility in the Middle Eas
Slide 6: Mining & Metallurgy
Mining & Metallurgy Q1 16 TTM EBIT/Rev. 9.0% New awards in Q1 2016 of $135M, backlog of $297M Contract award in February of an engineering services contract for operations support services to EGA’s two aluminium smelters in the UAE Contract award in April for a pre-feasibility study for the Soto Nor
Slide 7: Power
Power Q1 16 TTM EBIT/Rev. 6.0% New awards in Q1 2016 of $1.1B, backlog of $3.1B Contract award in January for SNC-Lavalin’s share of the $2.75B nuclear refurbishment project in Ontario Contract award in April for the decommissioning of a nuclear research reactor in Alberta TTM Revenues = $1.7B Q1 20
Slide 8: Infrastructure (I&C + O&M)
Infrastructure (I&C + O&M) Q1 16 TTM EBIT/Rev. 3.0% New awards in Q1 2016 of $323M, backlog of $5.5B Recently shortlisted for Gordie Howe Bridge and Finch West LRT TTM Revenues = $2.7B Q1 2016 revenues TTM EBIT % # of employees ~ 10,000 4% 0% 35% 65% -4% -8% Q2 15 Q3 15 Q4 15 Q1 16 Reimbursable Fixe
Slide 9: Capital
Capital 17 Investments The new structure for our North American concession investments is progressing well In March 2016, our indirect 15.5% ownership interest in Malta International Airport was sold for €63M 407 ETR continues to deliver very good results (see appendix) In M$ Cumulative EBIT Inv. NB
Slide 10: Financial performance summary
Financial performance summary E&C Capital Total Q1 2016 Q1 2015 Q1 2016 Q1 2015 Q1 2016 Q1 2015 Revenues 1,931 2,205 57 52 1,988 2,257 Segment EBIT 108 117 109 43 217 160 EBITDA, adjusted 100 101 44 40 144 141 EBITDA margin 5.2% 4.6% n/a n/a 7.2% 6.3% Net income, as reported 31 67 91 37 122 104 Net
Slide 11: E&C segment EBIT – Q1 2016 vs Q1 2015
E&C segment EBIT – Q1 2016 vs Q1 2015 (in M$) -12 Decrease mainly due to lower volume 60 of activity, partially offset by lower 54 -15 SG&A 50 44 42 Decrease mainly due to lower volume 40 of activity and lower GM % related to Valerus, partially offset by increase volume and GM % in other activities
Slide 12: Record revenue backlog in Q1 2016
Record revenue backlog in Q1 2016 By Category and Segment (in billions CAD$) 14.0 45% 55% 12.0 Reimbursable Fixed-price 10.0 23% 34% 2% 8.0 March 15 June 15 Sept. 15 Dec. 15 March 16 14% 27% Oil & Gas I&C O&M M&M Power 12
Slide 13: Outlook
Outlook › We expect that the Oil & Gas and Power segments will be the main contributors to net income, while Mining & Metallurgy will likely be the smallest contributor to net income. › We also expect that the Infrastructure & Construction sub-segment will return to full year profitability in 2016.
Slide 14: Questions & Answers
Questions & Answers
Slide 15: Appendix
Appendix
Slide 16: SNC-Lavalin's capital allocation
SNC-Lavalin’s capital allocation 1. ORGANIC INVESTMENTS Investments to support our E&C Investments in Capital core business, drive profitable investments which will act as organic growth/improve margins catalyst for E&C revenues 2. DIVIDENDS SNC-Lavalin has increased its yearly dividend paid per sha
Slide 17: 407 ETR information – Q1
407 ETR information – Q1 Year ended December 31 Q1 2016 Q1 2015 Change (in millions CA$, unless otherwise indicated) Revenues 225.3 214.0 5.3% Operating expenses 37.7 41.5 (9.2%) EBITDA 187.6 172.5 8.8% EBITDA as a percentage of revenues 83.3% 80.6% 2.7% Net Income 64.6 62.7 3.0% Traffic / Trips (in
Slide 18: 407 ETR information
407 ETR information Year ended December 31 2015 2014 Change (in millions CA$) Revenues 1,002.2 887.6 12.9% Operating expenses 162.2 151.9 6.8% EBITDA 840.0 735.7 14.2% EBITDA as a percentage of revenues 83.8% 82.9% 0.9% Net income 311.2 222.9 39.6% Total Revenues / EBITDA Toll revenues (in millions
Slide 19: 407 ETR information
407 ETR information Dividends Paid (in millions CA$) Gross Vehicle Kilometres Travelled 730 750 (in millions - km) 680 2,517 600 2,437 460 2,336 2,326 2,340 2,356 300 2,253 2,253 2,215 190 2,124 145 120 135 85 2,064 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2005 2006 2007 2008 2009 2010
Slide 20: Financial position
Financial position March 31, 2016 December 31, 2015 Assets Cash and cash equivalent 1,388 1,582 Other current assets 3,532 3,616 Property and equipment 267 265 Capital investments accounted for by the equity or cost methods 431 468 Goodwill 3,263 3,387 Intangible assets related to Kentz acquisition
Slide 21: Diversity of revenue base – by segment
Diversity of revenue base – by segment (in billions of $) Q1 2016 2015 (3 Months) (12 Months) 3% 2% $0.1 $0.2 6% 8% $0.8 $0.1 $0.8 29% 30% $0.6 $2.9 $3.9 41% 43% $3.9 $0.8 19% 19% $0.4 $1.8 $1.8 Capital Capital M&M M&M O&G O&G Power Power Infrastructure Infrastructure Q1 2016 Revenues 2015 Revenues
Slide 22: Diversity of revenue base – by geography
Diversity of revenue base – by geography 2015 2014 7% 15% 13% 7% 21% 52% 7% 66% 5% 6% North America North America Latin America Latin America Europe Europe Middle East & Africa Middle East & Africa Asia-Pacific Asia-Pacific 2015 Revenues $9.6 billion 22
Slide 23: Capital investments portfolio
Capital investments portfolio Name Description Held Concession Location Equity Since Years Participation Highways, Bridges & Rail Highway 407 108 km electronic toll road 1999 99 Canada (Ontario) 16.77% InTransit BC Rapid transit line 2005 35 Canada (B.C.) 33.3% Okanagan Lake Floating bridge 2005 30
Slide 24: Net income reconciliation – Q1
Net income reconciliation – Q1 (in millions CAD$ except per share amount) Net Income, Net charges Acquisition of Kentz One-time net Net gain on Net income, as reported related to the foreign Capital adjusted restructuring exchange gain Investment and right-sizing Acquisition- Amortization of disposa