Aecon Group Inc. · TSX:ARE
Aecon — Investor Presentation (November 2010)
17 slides from Aecon's investor presentation, Nov 30, 2010
Slide 1: Building Things That Matter
Building Things That Matter November 30, 2010 1
Slide 2: Forward Looking Information
Forward Looking Information The information in this presentation includes certain forward-looking statements. These “forward-looking” statements are based on currently available competitive, financial and economic data and operating plans but are subject to risks and uncertainties. uncertainties Rec
Slide 3: Capital Market Metrics and Company Statistics
Capital Market Metrics and Company Statistics Revenue $2.26 billion One-Year Share Price Performance Backlog $2.72 billion Market Capitalization $561 million 52 Week Range $9.80 - $15.29 Shares Outstanding 58.5 million Avg. Daily Volume (3 months) 345,591 Updated 11-30-2010 Annual Dividend $0.20 / s
Slide 4: Building Strength For Over 130 Years
Building Strength For Over 130 Years 4
Slide 5: A Balanced Investment: Scale, Growth & Diversification
A Balanced Investment: Scale, Growth & Diversification A leadership position in its chosen markets • Top T Three Th Contractors C t t in i Canada C d (l (largestt publicly bli l ttraded) d d) • Among Canada’s leaders in: - civil construction / mining - pipe fabrication - utilities construction - mod
Slide 6: A Balanced Investment: Scale, Growth & Diversification
A Balanced Investment: Scale, Growth & Diversification Q3 TTM Revenue by Geography Q3 TTM Revenue by Sector Quebec & Transport'n Eastern Canada Western Canada 8% 28% 38% Ontario 47% Social Oil Sands 21% 16% Other Energy Utilities 14% 7% Other 14% Q3 TTM Revenue by Public/Private Indirect Public/Util
Slide 7: Strategic Plan Drives Success
Strategic Plan Drives Success 1 Invest in our people ■ Recognized one of the Best Employers in Canada 4 years in a row ■ It is our people who customers and shareholders are investing in 2 Leverage our capabilities ■ Vertically integrated, full service company with turnkey capabilities ■ Focus on val
Slide 8: Year Revenues & EBITDA
5 Year Revenues & EBITDA ($ MILLIONS) 3,000 140 125 2,508 120 2,500 117 2,261 112 100 , 2,000 1,877 , REVENUES 1,493 80 EBITDA 77 1,500 1,120 1,113 60 1 000 1,000 40 34 500 15 20 0 0 2005 2006 2007 2008 2009 Q3 TTM 8
Slide 9: Transportation & Social Infrastructure: Accelerated Investment
Transportation & Social Infrastructure: Accelerated Investment Aging civil infrastructure across Canada, with an ‘infrastructure deficit’ of more than $100 billion 59% of our civil infrastructure is over 40 years old 79% is past its prime/ life expectancy Government commitment to infrastructure
Slide 10: Oils Sands: Powerful Growth
Oils Sands: Powerful Growth Oil sands production projected to increase by over 90% in the next 10 years In 10 years, 25% of oils sands production will come from units not yet under construction Canadian Oil Production 4,500 Tot: 4,336 4,000 Tot: 3,882 Barrrels per day (thousands) Tot: 3,294 1,36
Slide 11: Power Generation in Ontario: Poised For Significant Growth
Power Generation in Ontario: Poised For Significant g Growth ($ Billions)) Biomass, $4 Hydro, 200 $4.60 Conservation, 150 Wi d $14 Wind, TWh $12 100 $87B Transmission, Solar, $9 $9 50 0 Gas, $1.80 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 203
Slide 12: Utilities & Water/Wastewater: A Bright Future
Utilities & Water/Wastewater: A Bright Future Utilities Water/Wastewater Stable, ongoing relationships Municipal underfunding has created significant demand across Canada Increasingly conducted through supplier- of-choice arrangements Successful alliance in Western Canada with EPCOR / Stante
Slide 13: Reporting Segments
Reporting Segments $ at Sept 30, 2010 (millions) Infrastructure Buildings Industrial Concessions TTM Revenue $959 $537 $925 $95 TTM Op. Profit $75 $(28) $31 $23 Backlog Revenue $1,080 $574 $871 n/a Capabilities ■ Heavy Civil Construction ■ Construction Management ■ Industrial Construction ■ Domestic
Slide 14: Strong Q3 Backlog
Strong Q3 Backlog Backlog Revenue Industrial Buildings Infrastructure Backlog Duration $million $3,000 $2 500 $2,500 $2,000 12 - 24 Months $1,500 $532 million (21%) $1,000 $ $500 > 24 Months $332 million < 12 Months (13%) $0 $1.7 billion (66%) Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
Slide 15: Considerable Financial Flexibility and Low Leverage
Considerable Financial Flexibility and Low Leverage ($ millions) Sept 30, 2010 Sept 30, 2009 Consolidated Consolidated Cash (including restricted cash & marketable securities) 237 393 Cash (excluding restricted cash, market securities & amounts in JVs / SPVs) 15 228 Working Capital 29 297 Total Asse
Slide 16: In Summary . . .
In Summary . . . An industry leader in a growing sector of the Canadian economy Well diversified operations by region, customer and sector Significant management, board and employee holdings Member of S&P/TSX Composite Index Good trading liquidity Strong financial fundamentals 16
Slide 17: Building Things That Matter
Building Things That Matter 17