Atkinsrealis Group Inc. · TSX:ATRL
Atkinsrealis — SNC-Lavalin Group — Q1 2018 Earnings Presentation
20 slides from Atkinsrealis's earnings presentation, May 3, 2018
Slide 1: First Quarter 2018 Conference Call Presentation
› First Quarter 2018 › Conference Call Presentation › May 3rd, 2018
Slide 2: Forward-looking statements; Non-IFRS financial measures
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 3: Q1 2018: De-risking the business and gearing for growth
Q1 2018 Neil Bruce, President and CEO De-risking the business and gearing for growth 3
Slide 4: Q1 2018 financial performance (vs Q1 2017)
Q1 2018 financial performance (vs Q1 2017) Revenue of $2.4B, up 31.5% Adjusted net income from E&C of $89.5M, up 47.4%, or $0.51 per diluted share, up 27.5% Total segment EBIT of $234M, up 41.5% RPO* of $13.5B as at March 31, 2018 Adjusted E&C EBITDA margin of 7.5% › 2018 outlook maintained: compare
Slide 5: Q1 2018 main sector highlights
Q1 2018 main sector highlights Infrastructure › Recently awarded two contracts related to the REM project in Montreal › Awarded design-build project management for a light rail line in Seattle, USA › $7.3B of RPO* – includes positive adjustment from IFRS 15 › 12% increase in revenues (Q1 vs Q1) Oil
Slide 6: Q1 2018 main sector highlights
Q1 2018 main sector highlights EDPM › $2.2B of RPO* – $1.0B of new awards in Q1 2018 › Segment EBIT of 10.3% › Integration complete – on track to deliver $120M of cost synergies Mining & Metallurgy › 12% increase in revenues (Q1 vs Q1) › Prospects pipeline continues to improve Capital › Another stro
Slide 7: Q1 2018 Sylvain Girard, EVP and CFO
Q1 2018 Sylvain Girard, EVP and CFO 7
Slide 8: Segment disclosure change
Segment disclosure change Effective January 1, 2018, the Company decided to make the following changes to the Segment Disclosure note of its financial statements (2017 figures have been restated accordingly): › Segment changes (per Nov. 13, 2017 press release) › Divided the Power segment into 2 segm
Slide 9: Q1 2018 financial performance (vs Q1 2017)
Q1 2018 financial performance (vs Q1 2017) Revenue of $2.4B, up 31.5% Adjusted net income from E&C of $89.5M, › $0.7B incremental revenue in the EDPM segment, following the up 47.4%, or $0.51 per diluted share, up 27.5% acquisition of Atkins › Higher Segment EBIT, partially offset by an increase in
Slide 10: E&C segment EBIT – Q1 2018 vs Q1 2017
E&C segment EBIT – Q1 2018 vs Q1 2017 +78 Higher level of activities and higher M&M (in M$) +$1M profitability %, offset by higher overhead costs. 90 -6 81 Lower level of activities mainly due to completion or near completion of LNG -14 O&G projects in Australia and higher 70 -$6M overhead costs, pa
Slide 11: 2018 Operating Cash Flow
2018 Operating Cash Flow Improved cash flow from operations (in M$) Q1 2015 Q1 2016 Q1 2017 Q1 2018 Cash Balance as December 31, 2017 707 (147) Cash flow from operations (147) (187) (240) Capital expenditures (31) Net increase in receivables from long-term concession arrangements (24) Increase in re
Slide 12: Capital structure and debt ratios
Capital structure and debt ratios The Company continues to maintain adequate liquidity to pursue its growth strategy (in M$, unless otherwise indicated) Q1 2018 Limited recourse debt $1.5B Net recourse debt 898 Unused capacity under the $2.6B committed TTM adjusted EBITDA revolving credit facility $
Slide 13: 2018 growth outlook
2018 growth outlook › Maintaining 2018 outlook › Q1 should be the lowest quarter of 2018, gradual increase expected throughout the remaining quarters of the year › Tax rate for the adjusted E&C business expected to be between 20% and 25% 2018 Adjusted diluted 2018 Adjusted consolidated EPS from E&C1
Slide 14: Questions & Answers
Questions & Answers
Slide 15: Appendix
Appendix
Slide 16: 2017 restated figures (1 of 2)
2017 restated figures1,2 (1 of 2) On a comparable basis with our new 2018 structure3 (in thousands of $) Segment Q1 2017 Q2 2017 Q3 2017 Q4 2017 Total EBIT % Mining & Metallurgy Revenues 101,411 94,827 106,957 129,609 432,804 Segment EBIT 5,072 6,557 833 3,467 15,929 3.7% Oil & Gas Revenues 856,545
Slide 17: 2017 restated figures (2 of 2)
2017 restated figures1,2 (2 of 2) On a comparable basis with our new 2018 structure3 (in thousands of $) Segment Q1 2017 Q2 2017 Q3 2017 Q4 2017 Total EBIT % EDPM (Engineering, Design and Project Management) Revenues 39,575 43,187 715,403 893,743 1,691,908 Segment EBIT 2,529 2,978 60,586 118,775 184
Slide 18: 407 ETR information – Q1
407 ETR information – Q1 (in M$, unless otherwise indicated) Q1 2018 Q1 2017 Change Revenues 288.5 260.7 10.7% Operating expenses 37.5 40.2 (6.7%) EBITDA 251.0 220.5 13.8% EBITDA as a percentage of revenues 87.0% 84.6% 2.4% Net Income 96.9 87.4 10.9% Traffic / Trips (in millions) 28.0 27.5 1.8% Aver
Slide 19: Net income reconciliation – Q1
Net income reconciliation – Q1 Net share (in M$, except per Income , amount) Net charges Acquisition Net gain on Impact of U.S. Net income, as reported related to the disposals corporate adjusted restructuring & Acquisition- Amortization of E&C tax reform (Non-IFRS) right-sizing plan related costs o
Slide 20: Our values are the essence of our company's identity
Our values are the essence of our company’s identity. They represent how we act, speak and behave together, and how we engage with our clients and stakeholders. We put safety at the heart of everything we do, to safeguard people, assets and the environment. We do the right thing, no matter what, and