Quanta Services, Inc. · NYSE:PWR
Quanta Services — Investor Day (February 2014)
93 slides from Quanta Services's investor day presentation, Feb 25, 2014
Slide 1: Quanta Services 2014 Investor Day - Welcome
Quanta Services 2014 Investor Day ‐ Welcome Kip Rupp, CFA – Vice President, Investor Relations
Slide 2: Agenda
Quanta Services 2014 Investor Day Agenda Welcome Jim O’Neil Company Overview & Strategy Discussion President & Chief Executive Officer with Q&A Operating Discussions with Q&A Electric Power Fiber Optic Licensing & Other Duke Austin 15 Minute Break Chief Operating Officer Oil & Gas Infrastructure
Slide 3: Download the Quanta Services IR App
Download the Quanta Services IR App Available for iPhone, iPad & Android Mobile Devices Stock Price Quote Press Releases SEC Filings Presentations Audio Presentation Archive Pictures & Videos of Our Crews At Work Annual Report Archive Other Investor Related Information Quanta Service
Slide 4: Forward Looking Statements
Quanta Services 2014 Investor Day Forward Looking Statements This presentation (and oral statements regarding the subjects of this presentation) includes forward‐looking statements intended to qualify under the “safe harbor” from liability established by the Private Securities Litigation Reform Act
Slide 5: Overview & Strategy Discussion
Overview & Strategy Discussion Jim O’Neil President & Chief Executive Officer Quanta Services 2014 Investor Day February 25, 2014
Slide 6: Key Takeaways
Quanta Services 2014 Investor Day Key Takeaways Quanta is a growth company North America is in a multiyear investment cycle for infrastructure Quanta provides infrastructure solutions with unmatched scope and scale Quanta is the leading specialty infrastructure solutions provider in the mark
Slide 7: Vision for Success
Company Overview Vision for Success Vision To be the leading infrastructure solutions provider in markets that we serve, creating exceptional value for our customers, employees and shareholders Key Elements of Success Demonstrate world‐class safety leadership and performance Deliver exceptiona
Slide 8: Quanta Services Today
Company Overview Quanta Services Today Industry leading safety performance Recognized market leader in electric power and oil and gas pipeline construction in North America Entrepreneurial business model and culture Broad, self‐performing platform developed through organic growth and acquisi
Slide 9: Focused on Energy Infrastructure
Company Overview Focused on Energy Infrastructure Estimated Revenue by Contract Type* 2013 Consolidated Revenue = $6.5 Billion Fixed Price Cost Plus 46% 20% Oil & Gas Electric Power Infrastructure 69% 29% Unit Price 34% Estimated Revenue by Project Type* Fiber Optic Licensing & MSA Other 27% 2% New
Slide 10: Blue Chip Customer Base
Company Overview Blue Chip Customer Base No single customer accounted for more than 10% of revenues for 2013 The 10 largest customers accounted for approximately 34% of revenues in 2013 Strong relationships with the majority of U.S. investor owned utilities and Canadian utilities – many going
Slide 11: Experienced Management
Company Overview Experienced Management Yrs. Exp. Jim O’Neil 34 President & Chief Executive Officer Duke Austin 25 Chief Operating Officer Derrick Jensen 22 Chief Financial Officer Operating unit executives have an average of > 25 years of experience Quanta Services 2014 Investor Day Page 11
Slide 12: 2012 Investor Day Benchmarking
2012 Investor Day Benchmarking What We Said vs. What Happened What We Said: March 7, 2012 What Happened: 2012 through 2013 2011 is a transition year and we are excited Revenues and adjusted diluted EPS(a) increased about growth prospects for 2012 approx. 56% and 125%, respectively, from Dec. 31,
Slide 13: Multiyear Infrastructure Investment Cycle
Multiyear Infrastructure Investment Cycle All Segments Have Double Digit Growth Opportunities Electric Power ‐ See double digit growth opportunities driven by: Need to repair, replace, upgrade and maintain transmission and distribution infrastructure throughout North America Regulation is driv
Slide 14: Strategies for Differentiation & Growth
Strategies for Differentiation & Growth Quanta Services 2014 Investor Day Page 14
Slide 15: Initiatives to Grow the Business Over the Next Five Years
Strategies for Differentiation & Growth Initiatives to Grow the Business Over the Next Five Years Establish programs to continuously improve safety, leadership development, operational performance standards and results Leverage and grow leadership position in existing services to expand in curre
Slide 16: OSHA Frequency Rate Trends
Strategies for Differentiation & Growth Initiatives to Grow the Business Over the Next Five Years Establish programs to continuously improve safety, leadership development operational performance standards and results OSHA Frequency Rate Trends by Calendar Year As of 12/31/13 Customers are 3 incre
Slide 17: Safety and training initiatives
Strategies for Differentiation & Growth Initiatives to Grow the Business Over the Next Five Years Establish programs to continuously improve safety, leadership development operational performance standards and results Have invested in the latest technology to improve safety and productivity of fie
Slide 18: Leverage leadership position: rationale and examples
Strategies for Differentiation & Growth Initiatives to Grow the Business Over the Next Five Years Leverage and grow leadership position in existing services to expand in current markets and penetrate new ones 2007 ‐ EPC Solar Electric Leverage electric power leadership into EPC solar opportuniti
Slide 19: Expansion into Offshore Oil and Gas Infrastructure Services
Strategies for Differentiation & Growth Initiatives to Grow the Business Over the Next Five Years Leverage and grow leadership position in existing services to expand in current markets and penetrate new ones Expansion into Offshore Oil and Gas Infrastructure Services We see a $1 billion annual re
Slide 20: Expansion into Australia
Strategies for Differentiation & Growth Initiatives to Grow the Business Over the Next Five Years Create additional platforms to continue profitable growth for the long‐term Expansion into Australia We see a $1 billion annual revenue opportunity over time Positive long‐term outlook with similar
Slide 21: Acquisitions and Strategic Investments
Strategies for Differentiation & Growth Initiatives to Grow the Business Over the Next Five Years Create additional platforms to continue profitable growth for the long‐term Strategic Initiative Strategic Rationale Acquisitions Company brings leadership position in new geography or enhances capa
Slide 22: The Right Strategies - Positioned for Profitable Growth
Strategies for Differentiation & Growth The Right Strategies ‐ Positioned for Profitable Growth Quanta is in the midst of a multiyear growth cycle Quanta is executing on a comprehensive strategy that will allow the company to grow significantly over the near‐ and long‐term and differentiate itse
Slide 23: Questions & Answers
Questions & Answers
Slide 24: Appendix: Reconciliation of Oil & Gas Segment Operating Income
Appendix Reconciliation of Oil & Gas Infrastructure Services Segment Operating Income, As Adjusted ($ in millions) 12/31/2011 Revenues $ 1,011.2 Operating income as reported (78.3) Add back: Multi‐employer pension plan 32.6 Operating income, as adjusted $ (45.7) Operating income margin, as reported
Slide 25: Electric Power
Electric Power Duke Austin Chief Operating Officer Quanta Services 2014 Investor Day February 25, 2014
Slide 26: Electric Power Key Takeaways
Electric Power Key Takeaways We continue to see double digit growth opportunities Quanta’s customers are investing capital in transmission and distribution infrastructure at historic levels Growth opportunities exist throughout the segment ‐ more than just large transmission projects Quanta
Slide 27: Unmatched Resources & Expertise
Electric Power Unmatched Resources & Expertise Electric Power Services Differentiators Transmission Largest T&D Contractor in North Distribution America Substations Reputation & Track Record Emergency Restoration Safe Project Execution Energized Services Unmatched Solutions Scope
Slide 28: Transmission & Distribution Growth Drivers
Electric Power Transmission & Distribution (T&D) Growth Drivers The North American electric grid requires significant investment due to aging infrastructure, decades of underinvestment and changing needs Top 10 Industry Issues Facing Utilities(a) (5 = Very Important) Reliability Related 4.66 Relia
Slide 29: North American Transmission Spending Has Not Peaked
Electric Power North American Transmission Spending Has Not Peaked We believe several items have caused concern about continued transmission growth opportunities Item Causing Concern Mitigating Considerations Edison Electric Institute’s (EEI) annual Only surveys U.S. investor owned utilities and
Slide 30: North American Transmission Spending Has Not Peaked
Electric Power North American Transmission Spending Has Not Peaked We believe several items have caused concern about continued transmission growth opportunities Item Causing Concern Mitigating Considerations Edison Electric Institute’s (EEI) annual Only surveys U.S. investor owned utilities and
Slide 31: Various Estimates Call for Transmission Growth
Electric Power Various Estimates Call for Transmission Growth Stifel North American Electric Transmission KeyBanc Estimated Large Transmission Spending Forecast Awards Activity ($ Billions) ($ Billions) $92.1 $28.8 $26.6 $22.1 $24.3 $3.3 $7.8 $16.4 $10.5 $8.2 $46.4 $10.1 $5.8 $11.4 $11.1 $6.4 $23.0
Slide 32: Transmission Investment Dynamics
Electric Power Transmission Investment Dynamics Investment Drivers Restraining Factors Significant portion of the grid is approaching the Uncertain economic conditions end or is beyond its useful life Tepid load growth Favorable transmission regulation: Energy Policy Economy Act of ‘05, NE
Slide 33: Canadian T&D Investment is Increasing
Electric Power Canadian T&D Investment is Increasing Quanta is the leading transmission and distribution contractor in Canada Transmission spending has accelerated over the past two years and is expected to increase over the next several years Canadian Electricity Assoc. estimates sustained hi
Slide 34: Impact of Coal to Gas Generation Changes on Transmission
Electric Power Impact of Coal to Gas Generation Changes on Transmission A number of Independent System Operators (ISOs) and Regional Transmission Operators (RTOs) have identified and approved $ billions of transmission projects related to the transition away from coal generation: 2012 through 20
Slide 35: More Transmission Drivers Today Than In The Past
Electric Power More Transmission Drivers Today Than In The Past There are more drivers supporting transmission spending today than there were several years ago Transmission Drivers: 2010 Transmission Drivers: 2014+ Decades of Underinvestment Decades of Underinvestment Aging Grid Aging Grid
Slide 36: Industry Leading Energized Services Is A Differentiator
Electric Power Industry Leading Energized Services Is A Differentiator Many customers view energized services as the preferred solution for certain high‐voltage transmission upgrades Quanta is the clear industry leader in energized work methods and live line techniques Quanta Energized Service
Slide 37: Distribution Investment Dynamics
Electric Power Distribution Investment Dynamics Investment Drivers Restraining Factors Significant portion of the grid is approaching Uncertain economic conditions the end or is beyond its useful life Tepid load growth More stringent reliability standards will Economy require repairing lin
Slide 38: Significant Distribution Investment Is Needed
Electric Power Significant Distribution Investment Is Needed The distribution system is more complex with exponentially more miles of wire and equipment versus the transmission system Age Profile of Investor Owned Utilities Distribution Assets Relative to Plant Useful Life 43% 45% 19% 12% 12% 9% 5
Slide 39: The Opportunity is More Than Large Transmission
Electric Power The Opportunity is More Than Large Transmission Large transmission gets most of the attention, but there is a lot more going on Strategic relationships account for more than 50% of electric power segment revenues Growing transmission investment associated with coal generation reti
Slide 40: Aging Utility Workforce - Opportunity for Quanta
Electric Power Aging Utility Workforce – Opportunity for Quanta Skilled resources are and will be strained in meeting the grid’s challenges % of Utility Workers By Age Group, 2011 ~50% of workers will be eligible for retirement in the next 5‐10 years 31% 21% 23% 19% 4% 2% 20‐24 25‐34 35‐44 45‐54 5
Slide 41: Managing Resources for Growth
Electric Power Managing Resources for Growth Quanta has the resources it needs to safely execute on backlog and to continue to pursue, win and safely execute on future projects Labor Tight labor market Recruiting, training and maintaining people is critical Training facility in development Q
Slide 42: Electric Power Summary
Electric Power Summary Well Positioned, Focused on Execution Significant transmission and Strong Backlog Provides Visibility distribution investment is expected in For the years ended Dec. 31, North America for many years $5,964 $4,947 $4,918 The growth opportunity is more than $3,347 large tran
Slide 43: Questions & Answers
Questions & Answers
Slide 44: Fiber Optic Licensing & Other
Fiber Optic Licensing & Other Derrick Jensen Chief Financial Officer Quanta Services 2014 Investor Day February 25, 2014
Slide 45: Fiber Optic Licensing & Other Key Takeaways
Fiber Optic Licensing & Other Key Takeaways Quanta’s fiber optic licensing business is experiencing increased demand for its network and services and is poised for growth Quanta is making investments to expand its network and also to expand its service offering into lit services, which we believ
Slide 46: Segment Overview
Fiber Optic Licensing & Other Segment Overview Fiber Optic Licensing Fiber Optic Licensing & Other Segment For the years ended Dec. 31, Through our Sunesys operating unit, we are a ($ in millions) leading provider of fiber infrastructure, managed $179 $173 services, wireless backhaul and high perf
Slide 47: Fiber Optic Licensing
Fiber Optic Licensing & Other Fiber Optic Licensing Primary Markets Operating Unit Description Sunesys is a leading provider of fiber infrastructure, managed services, wireless NJ/NYC backhaul and high performance connectivity in Pittsburgh Chicago Philadelphia key major metro markets in the U.S. Su
Slide 48: Fiber Optic Licensing Characteristics
Fiber Optic Licensing & Other Fiber Optic Licensing Favorable Characteristics Challenging Characteristics Recurring revenue with medium to long‐ Capital intensive term contracts Ongoing capex needs to maximize asset High visibility due to contractual nature of value, revenue and cash flow po
Slide 49: Fiber Optic Licensing Drivers
Fiber Optic Licensing & Other Fiber Optic Licensing Drivers ‐ North America ‐ Internet Protocol Traffic Metro‐Only Internet Protocol Traffic (Petabytes per Month) (Petabytes per Month) 40,672 23% CAGR 35,225 34,457 28% CAGR 28,732 28,667 23,520 23,038 18,788 18,193 14,439 13,797 10,188 2012 2013 201
Slide 50: Growth Opportunity - Expanding Lit Services Offering
Fiber Optic Licensing & Other Growth Opportunity ‐ Expanding Lit Services Offering Lit Services Rationale Growth Strategy Greatly expands addressable market and Continue success‐based expansion with growth opportunity focus on existing metro markets Leverages existing infrastructure by Enhan
Slide 51: Prudently Invest for Growth & Value Maximization
Fiber Optic Licensing & Other Prudently Invest for Growth & Value Maximization Expansion of lit services offering positions Quanta to meet customer demands for broader suite of network solutions. Provides opportunity for customer and revenue diversification Continue to invest in network developm
Slide 52: Fiber Optic Licensing & Other Summary
Fiber Optic Licensing & Other Summary Growing demand for fiber optic networks is being driven by increasing consumer, business and wireless Internet Protocol traffic Quanta’s fiber optic licensing business is experiencing increased demand for its network and services and is poised for growth Q
Slide 53: Questions & Answers
Questions & Answers
Slide 54: Oil & Gas Infrastructure
Oil & Gas Infrastructure Duke Austin Chief Operating Officer Quanta Services 2014 Investor Day February 25, 2014
Slide 55: Oil & Gas Infrastructure Key Takeaways
Oil & Gas Infrastructure Key Takeaways We continue to see double digit growth opportunities Unconventional shales and Canadian oil sands are energy resource game changers for North America and require significant development of midstream infrastructure Quanta’s leadership and comprehensive ser
Slide 56: Leading Market Position, Comprehensive Solutions
Oil & Gas Infrastructure Leading Market Position, Comprehensive Solutions Oil & Gas Infrastructure Services Differentiators Mainline Pipeline Largest Pipeline Contractor in Shale Gathering Pipeline North America Compressor, Metering & Reputation & Track Record Pumping Stations Safe Proje
Slide 57: Strong U.S. Oil & Gas Production Trends
Oil & Gas Infrastructure Strong U.S. Oil & Gas Production Trends U.S. Shale Liquids Projections to 2022 U.S. Natural Gas Production by Source 1990‐2040 (trillion cubic feet) (In thousands of barrels per day) Upside Potential? Source: Citi Investment Research & Analysis, 2012 Source: EIA – Annual Ene
Slide 58: Significant U.S. Pipeline & Related Spending Through 2025
Oil & Gas Infrastructure Significant U.S. Pipeline & Related Spending Through 2025 U.S. Oil & Gas Direct Capital Investment Average Annual Investment by ($ Billions) Transport Mode: 2014 ‐ 2025 ($ Billions) $70 $60 Pipelines $54.8 $50 $40 Processing & Storage $12.4 $30 $20 $10 Rail $2.8 $0 '10 '11 '
Slide 59: Canadian Oil Production Is Expected to Grow
Oil & Gas Infrastructure Canadian Oil Production Is Expected to Grow Canadian Oil Sands & Conventional Production (Millions of barrels per day) Source: Canadian Assoc. of Petroleum Producers Growing Canadian oil production requires takeaway pipeline E&Ps have had to rely more heavily on rail due
Slide 60: Canadian LNG Export Terminal Development
Oil & Gas Infrastructure Canadian LNG Export Terminal Development Potential Canadian West Coast LNG Export Projects Est. In Project Operator Partners Location Pipeline Provider License? mtpa bcf/d Trains Service Kitimat LNG Chevron Apache Kitimat Chevron/Apache Y 10.0 1.3 2 2018+ Pacific Northwest L
Slide 61: Approaching Uncharted Territory in North American Pipeline Industry
Oil & Gas Infrastructure Approaching Uncharted Territory in North American Pipeline Industry North America is simultaneously experiencing: Active shale development of gathering infrastructure in the U.S. Increasing mainline activity in the U.S. Increasing mainline and gathering activity in C
Slide 62: Expansion into Australia
Oil & Gas Infrastructure Expansion into Australia Market Overview The Australian market represents one of the most dynamic / leading edge energy markets in the world with its coal seam gas (CSG) and LNG export facilities development According to the U.S. EIA, Australia has the 7th largest potent
Slide 63: Expansion into Offshore Oil and Gas Infrastructure Services
Oil & Gas Infrastructure Expansion into Offshore Oil and Gas Infrastructure Services Market Overview Continued Growth in Global Oil & Gas Production: By 2035, global oil and natural gas production is expected to increase 14% and 50%, respectively (U.S. Energy Information Assoc.) Increased Offsho
Slide 64: Pipeline Testing, Repair & Replacement Growth Opportunity
Oil & Gas Infrastructure Pipeline Testing, Repair & Replacement Significant Growth Opportunity •95k Miles of Oil •Spending to Pipelines (1) •Stringent Increase Est. 30% of •More •321k Miles of Standards Significantly Pipelines Tougher Pipeline Information Gas Pipelines (2) Opportunity •Testing, are
Slide 65: Comprehensive Services Positions Well for Opportunities
Oil & Gas Infrastructure Comprehensive Services Positions Well for Opportunities Mainline Pipeline Gathering Pipeline & Facilities Largest player in North America with 9‐12 Local presence in the active liquid rich shales “spreads” of capacity Leveraging leadership, experience and work force
Slide 66: Strong Drivers, Comprehensive Solutions for Growth
Oil & Gas Infrastructure Strong Drivers, Comprehensive Solutions for Growth Unconventional shales and Canadian Strong Backlog Indicates Growth oil sands are energy resource game For the years ended Dec. 31, changers in North America and $2,219 require significant pipeline and $1,566 $1,516 related
Slide 67: Questions & Answers
Questions & Answers
Slide 68: Appendix: Reconciliation of Oil & Gas Segment Operating Income
Appendix Reconciliation of Oil & Gas Infrastructure Services Segment Operating Income, As Adjusted ($ in millions) 12/31/2011 Revenues $ 1,011.2 Operating income as reported (78.3) Add back: Multi‐employer pension plan 32.6 Operating income, as adjusted $ (45.7) Operating income margin, as reported
Slide 69: Financial Discussion
Financial Discussion Derrick Jensen Chief Financial Officer Quanta Services 2014 Investor Day February 25, 2014
Slide 70: Financial Discussion Key Takeaways
Financial Discussion Key Takeaways Quanta is in a robust market environment and its strong financial profile positions it for continued growth Quanta’s backlog supports its positive outlook for 2014 and beyond Capital deployment priorities remain unchanged Approach for 2014 financial guidanc
Slide 71: Revenue, GAAP and Adjusted Diluted EPS Has Been Growing
Recent Financial Performance Revenue, GAAP and Adjusted Diluted EPS Has Been Growing For the Years Ended December 31, Revenue GAAP Diluted EPS Adjusted Diluted EPS ($ in millions) $7,600* $1.87** * * $1.75 * $1.95* $6,523 $1.54 $1.71 $5,920 $1.36 $1.52 $4,194 $0.76 $0.56 2011 2012 2013 2014 Est. 201
Slide 72: Revenue and Operating Income Margin by Segment
Recent Financial Performance Revenue and Operating Income Margin by Segment For the Years Ended December 31, Electric Power Oil & Gas Infrastructure Fiber Optic Licensing & Other ($ in millions) ($ in millions) ($ in millions) $4,481 $1,870 $4,207 $179 7.4% $172 $1,535 $160 $3,023 3.6% 12.4% $1,011
Slide 73: Strong Backlog
Recent Financial Performance Strong Backlog 12‐Month Backlog Total Backlog ($ in millions) ($ in millions) $8,728 $5,000 $6,987 $6,754 $3,807 $3,265 12/31/11 12/31/12 12/31/13 12/31/11 12/31/12 12/31/13 Electric Power Oil & Gas Infrastructure Fiber Optic Licensing & Other Quanta Services 2014 Invest
Slide 74: Strong Balance Sheet to Support Growth Strategies
Recent Financial Performance Strong Balance Sheet to Support Growth Strategies ($ in millions) 12/31/2011 12/31/2012 12/31/2013 Cash and Equivalents $ 315 $ 395 $ 489 Other Debt ‐‐ ‐‐ 2 Long‐Term Debt ‐‐ ‐‐ ‐‐ Total Debt ‐‐ ‐‐ 2 Total Equity 3,389 3,772 4,241 Total Capitalization $ 3,389 $ 3,772 $ 4
Slide 75: Historical Cash Flow
Recent Financial Performance Historical Cash Flow Cash Flow from Continuing Free Cash Flow from Operations Continuing Operations* For the Years Ending December 31, For the Years Ending December 31, ($ in millions) ($ in millions) $447 $198 $204 $167 $51 2011 2012 2013 2011 2012 2013 ‐$30 *Net cash p
Slide 76: Corporate Developments Since 2012 Investor Day
Recent Financial Performance Corporate Developments Since 2012 Investor Day Corporate Development Rationale Divested telecom subsidiaries to Dycom To strategically focus on the energy Industries for after‐tax net proceeds of infrastructure markets approx. $265 million Increased capacity under
Slide 77: 2010-2013 Use of Capital & Go-Forward Priorities
Recent Financial Performance 2010 – 2013 Use of Capital & Go‐Forward Priorities Use of Capital Priorities Working Capital (Amounts in millions) Capital Expenditures $221 $5 Acquisitions $265 Stock Repurchase $1,035 Investments $719 $700 $562 $489 $293 $124 $39 Ending Cash Cash from Net Pro
Slide 78: 2014 Financial Guidance Recap
2014 Financial Guidance Guidance Recap 2014 Full Year Financial Guidance Revenues: $7.4B ‐ $7.8B GAAP Diluted EPS: $1.65 ‐ $1.85 Adj. Diluted EPS: $1.85 ‐ $2.05 1Q14 Financial Guidance Revenues: $1.65B ‐ $1.75B GAAP Diluted EPS: $0.36 ‐ $0.38 Adj. Diluted EPS: $0.41 ‐ $0.43 General Guida
Slide 79: Financial Strength & Flexibility for Growth
Summary Financial Strength & Flexibility for Growth Quanta is in a robust market environment and its strong financial profile positions it for continued growth Quanta’s backlog supports its positive outlook for 2014 and beyond Capital deployment priorities remain unchanged Approach for 2014
Slide 80: Questions & Answers
Questions & Answers
Slide 81: Appendix: Reconciliation of Oil & Gas Segment Operating Income
Appendix Reconciliation of Oil & Gas Infrastructure Services Segment Operating Income, As Adjusted ($ in millions) 12/31/2011 Revenues $ 1,011.2 Operating income as reported (78.3) Add back: Multi‐employer pension plan 32.6 Operating income, as adjusted $ (45.7) Operating income margin, as reported
Slide 82: Summary
Summary Jim O’Neil President & Chief Executive Officer Quanta Services 2014 Investor Day February 25, 2014
Slide 83: Strong Backlog Indicative of Growth Opportunities
Quanta is a Growth Company Strong Backlog Indicative of Growth Opportunities End Market Trends & Opportunities Strong Backlog & Visibility For the years ended Dec. 31, Significant electric T&D infrastructure investment needed for many years $8,728 Reliability Renewable generation interconnect
Slide 84: This is the Most Dynamic Time in Our Industry's History
Multi‐Year Infrastructure Investment Cycle This is the Most Dynamic Time in Our Industry’s History Stifel North American Electric Transmission Est. North American Transmission Capital Spend: Spending Forecast 2014 – 2019 ($ Billions) ($ Billions) $28.8 $24.3 $26.6 $22.1 $16.4 $3.3 $7.8 $19.2 $11.4 $
Slide 85: Positive End Market Outlook & Visibility
Multi‐Year Infrastructure Investment Cycle Positive End Market Outlook & Visibility Oil & Gas Fiber Electric Infrastructure Licensing 2010 2011 2012 2013 2014 Quanta Services 2014 Investor Day Page 85
Slide 86: Unmatched Resources & Expertise
Sophisticated Infrastructure Solutions Unmatched Resources & Expertise Electric Power Services Differentiators Transmission Largest T&D Contractor in North Distribution America Substations Reputation & Track Record Emergency Restoration Safe Project Execution Energized Services Unm
Slide 87: Best Positioned Infrastructure Specialty Contractor
Best Positioned Infrastructure Specialty Contractor Scope, Scale, Safety, Reputation, Track Record, Financial Strength Infrastructure Specialty Contractor Comparison Estimated twelve month revenues ending 12/31/14 ($ millions) $8,000 $7,000 $6,000 $5,000 $4,000 $3,000 $2,000 $1,000 $0 Quanta* MasTec
Slide 88: A Path for Continued Growth
Quanta Services 2014 Investor Day A Path for Continued Growth Operational & Safety Excellence Dynamic End‐Market Trends Visible Growth Opportunities Innovative, Industry Leading Solutions Scale & Scope Financial Strength Quanta Services 2014 Investor Day Page 88
Slide 89: Key Takeaways
Quanta Services 2014 Investor Day Key Takeaways Quanta is a growth company North America is in a multiyear investment cycle for infrastructure Quanta provides infrastructure solutions with unmatched scope and scale Quanta is the leading specialty infrastructure solutions provider in the mark
Slide 90: Questions & Answers
Questions & Answers
Slide 91: Investor Contact
Investor Contact Corporate Office Kip Rupp, CFA 2800 Post Oak Blvd., Suite 2600 Vice President – Investor Relations Houston, TX 77056 713‐341‐7260 713‐629‐7600 investors@quantaservices.com www.quantaservices.com Download the Quanta Services IR App Available for iPhone, iPad & Android mobile devices
Slide 92: Forward Looking Statements
Quanta Services 2014 Investor Day Forward Looking Statements This presentation (and oral statements regarding the subject matter of this presentation) includes “forward‐looking statements” reflecting assumptions, expectations, projections, intentions or beliefs about future events that are intended
Slide 93: Forward Looking Statements
Quanta Services 2014 Investor Day Forward Looking Statements Competition in our business, including our ability to effectively compete for new Our ability to successfully identify, complete, integrate and realize synergies from projects and market share; acquisitions; Potential failure of rene