Atkinsrealis Group Inc. · TSX:ATRL
Atkinsrealis — SNC-Lavalin Group — Q4 2015 Earnings Presentation
23 slides from Atkinsrealis's earnings presentation, Mar 3, 2016
Slide 1: Fourth Quarter 2015 Conference Call Presentation
› Fourth Quarter 2015 › Conference Call Presentation › March 3rd, 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 › Alain-Pierre Raynaud, Executive Vice-President and Chief Financial Officer Q&A 2
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: Fourth Quarter 2015 Results
Fourth Quarter 2015 Results › Reported IFRS net income attributable to SNC-Lavalin shareholders of $49.2 million, or $0.33 per diluted share, compared with $1,146.6 million, or $7.51 per diluted share in Q4 2014 › “STEP Change” program successful completed and should reduce expenses by twice the cos
Slide 5: Our priorities
Our priorities Focused priorities will help us reach our 7% E&C EBITDA › margin target › Streamlined structure: Successfully completed STEP Change program to improve efficiency and execution, and implemented cost reduction initiatives › Focus on delivery: We will invest in world-class execution. Con
Slide 6: Oil & Gas
Oil & Gas New awards in Q4 2015 of › $0.9B, backlog of $3.6B Backlog excludes the recently awarded project of $0.8B for the development 2015 of infrastructure and EBIT/Rev. 7.7% processing facilities for a gas field in the Middle East 2015 Revenues 2015 Contract award in Nov. Cumulative EBIT % 2015
Slide 7: Mining & Metallurgy
Mining & Metallurgy New awards in Q4 2015 of › $70M, backlog of $279M EPCM contract award in Nov. 2015 for a greenfield potash mining and 2015 processing facility in EBIT/Rev. 9.4% Ethiopia Award in Feb. 2016 of an 2015 Revenues 2015 engineering services Cumulative EBIT % contract for operations 10%
Slide 8: Power
Power New awards in Q4 2015 of › $206M, backlog of $2.3B Backlog excludes SNC- Lavalin’s share of the recently awarded $2.75B 2015 nuclear refurbishment EBIT/Rev. 6.5% project in Canada 2015 Revenues 2015 › 2015 Revenues = $1.8B Cumulative EBIT % 10% › # of employees ~ 3,500 9% 50% 50% 8% 7% 6% 5% R
Slide 9: Infrastructure & Construction
Infrastructure & Construction New awards in Q4 2015 of › $0.4B, backlog of $3.8B Recently shortlisted for Gordie Howe Bridge and Finch West LRT 2015 Awarded a district cooling EBIT/Rev. 0% contract in Saudi Arabia Realigned the Rail & 2015 revenues 2015 Transit business/brand Cumulative EBIT % 0% -1
Slide 10: Operations & Maintenance
Operations & Maintenance New awards in Q4 2015 of › $0.3B, backlog of $2.0B Awarded a management › project for modernization 2015 EBIT/Rev. of Ontario Disability 5.3% Support Program offices 2015 Revenues 2015 Cumulative EBIT % › 2015 Revenues = $1.0B 6% › # of employees ~ 3,500 55% 5% 45% 4% 3% Rei
Slide 11: Capital (previously ICI)
Capital (previously ICI) The new structure for our › North American concession investments is progressing well In Feb. 16, reached an › agreement to sell our 19 Investments indirect ownership interest in Malta International Airport for €63M euros Cumulative EBIT 2015 NBV 250 1,000 407 ETR continues
Slide 12: Fourth Quarter 2015 Financial Performance
Fourth Quarter 2015 Financial Performance E&C Capital Total Q4 2015 Q4 2014 Q4 2015 Q4 2014 Q4 2015 Q4 2014 Revenues 2,590 2,617 56 201 2,646 2,818 Segment EBIT 191 (169) 49 1,744 240 1,575 EBITDA, 145 8 41 158 186 166 Adjusted EBITDA margin 5.6% 0.3% n/a n/a 7.0% 5.9% Net income, 14 (256) 35 1,402
Slide 13: Revenue backlog
Revenue backlog (in billions CAD$) By Category and Segment 13.0 40% 11.0 60% 9.0 Reimbursable Fixed-price 7.0 17% 2% 30% 5.0 Dec. 14 March 15 June 15 Sept. 15 Dec. 15 19% 32% Oil & Gas I&C Power M&M O&M 13
Slide 14: Dividend history
Dividend history Annual dividends declared (in $ per share) 1.01 0.97 0.93 0.89 0.85 0.72 0.62 2009 2010 2011 2012 2013 2014 2015 14
Slide 15: Outlook
Outlook › We anticipate our performance in 2016 overall to benefit from our diversified E&C strategy, our cost reductions, driven by our 2015 restructuring and right-sizing initiatives, and our continued focus on improving project delivery performance. › We expect that the Oil & Gas and Power segmen
Slide 16: Appendix
Appendix
Slide 17: Diversity of revenue base – segment
Diversity of revenue base – segment (in billions of $) 2015 2014 Capital Capital O&M M&M $0.2 3% $0.8 O&M $1.0 $0.9 11% 2% 8% $1.3 11% 11% 9% 16% M&M $1.0 $1.9 12% I&C 19% $3.9 41% 39% I&C $1.7 $2.0 21% 24% $1.8 $1.3 Power 19% 19% O&G 16% O&G Power 2015 Revenues $9.6 billion 17
Slide 18: Diversity of revenue base – geographic
Diversity of revenue base – geographic 2015 2014 Canada Canada 44% 60% Other 1% Europe 5% Latin America 6% 15% 1% Middle East Other 7% 7% Middle East 7% Africa Europe 5% 8% 7% 14% 6% 7% Australia Australia Latin America United States Africa United States 2015 Revenues $9.6 billion 18
Slide 19: 407 ETR information
407 ETR information Year ended December 31 2015 2014 Change (%) (in millions CA$) 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 milli
Slide 20: 407 ETR information
407 ETR information Dividends Paid (in millions CA$) Gross Vehicle Kilometres Travelled 730 750.0 (in millions - km) 680 2,517.0 600 2,437 460 2,336 2,326 2,340 2,356 300 2,253 2,253 2,215 190 2,124 145 120 135 85 2,064 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2005 2006 2007 2008 2009
Slide 21: Net income reconciliation – 2015
Net income reconciliation – 2015 (in millions CAD$ except per share amount) Net charges related to Acquisition of Kentz Net gain on One-time net Net income, Net income, the restructuring and investment foreign as reported adjusted right-sizing plan disposals exchange gain Acquisition-related Amortiz
Slide 22: Net income reconciliation – 2014
Net income reconciliation – 2014 (in millions CAD$ except per share amount) Net gain Charges related to Acquisition of Kentz Other on the restructuring and Acquisition- Financial Amortization restructuring investment right-sizing plan related costs expenses of intangible costs Net income, Net income
Slide 23: Questions & Answers
Questions & Answers