Aecom · NYSE:ACM
Aecom — Merger or Acquisition (October 2019)
15 slides from Aecom's merger presentation, Oct 17, 2019
Slide 1: Accelerating Our Value Creation Strategy
Accelerating Our Value Creation Strategy SAVANNAH RIVER SITE United States Operating the largest radioactive waste vitrification, or gasification, plant in the world and reducing the largest environmental risk in South Carolina.
Slide 2: Disclosures: Forward-Looking Statements
Disclosures Forward-Looking Statements All statements in this communication other than statements of historical fact are “forward-looking statements” for purposes of federal and state securities laws, including any projections of earnings, revenue, cost savings, profitability, cash flows, tax rates,
Slide 3: Michael S. Burke, Chairman and Chief Executive Officer
Michael S. Burke Chairman Chief Executive Officer GORDIE HOWE INTERNATIONAL BRIDGE United States / Canada Connecting Windsor, Canada and Detroit, Michigan via a 2.5 kilometer bridge that when completed will be the longest cable-stayed bridge on the continent.
Slide 4: Accelerating Our Path to Robust Value Creation
Accelerating Our Path to Robust Value Creation • Sale of Management Services business at a premium valuation: Builds Upon Our Commitments to Maximize Value: Expanding Margins: executing plans to deliver at least 210 basis points of DCS adjusted operating margin1 expansion by fiscal 2020 – Purchase p
Slide 5: Transforming Our Balance Sheet and Leverage Profile
Transforming Our Balance Sheet and Leverage Profile Total Proceeds Expected from the Announced Transaction and Expected Q4’19 Free Cash Flow3 • The sale of the Management Services segment is expected to generate net proceeds of $2.35 billion • Following the anticipated close, proceeds will be deploy
Slide 6: Today's Announcement Furthers Our Commitment to Value Creation
Today’s Announcement Furthers Our Commitment to Value Creation • • Successfully extracting ourselves from riskier and lower-returning geographies and markets Continued execution on our plan to exit more than 30 countries and will continue our review of how best to optimize our geographic footprint G
Slide 7: As a Professional Services Business, AECOM Is Poised to Thrive
As a Professional Services Business, AECOM Is Poised to Thrive Focusing on our core higher-returning and lower-risk businesses 11.5% (FY’20E) (FY’20E) 13% 11% 4% U.S. Canada Asia Pacific EMEA Attractive Geographic Exposure Leading in key engineering and construction management markets 72% Strengthen
Slide 8: W. Troy Rudd, Chief Financial Officer
W. Troy Rudd Chief Financial Officer PHOENIX SKY HARBOR INTERATIONAL AIRPORT TERMINAL 3 MODERNIZATION United States Serving as design-builder for the new renovation of the Terminal 3 facility, north concourse and the addition of a new south concourse.
Slide 9: Transaction Highlights
Transaction Highlights Transaction Summary: Transaction Valuation confirms that MS is undervalued within AECOM PURCHASE PRICE $2.405 billion $2.35 billion after tax cash proceeds, inclusive of approximately $150 million contingent purchase price EXPECTED NET PROCEEDS Generates substantial cash to tr
Slide 10: Strong Financial Profile and Outlook
Strong Financial Profile and Outlook $1,040 - $1,080M • Exited fiscal 2019 with strong momentum, including expectations for adjusted EBITDA1 and adjusted EPS1 to approximate the mid-point of our prior guidance – Expect record fourth quarter free cash flow, resulting in full year free cash flow3 of a
Slide 11: Substantial Value Creation Opportunity
Substantial Value Creation Opportunity 3.0x • Substantial proceeds from the transaction create significant capital allocation flexibility • To capitalize on the valuation discount at today’s stock price, we expect to allocate significant capital to stock repurchases Q3’19 Net Leverage2 Long-Term Tar
Slide 12: Appendix
Appendix DELTA JET ENGINE TEST CELL FACILITY United States The new state-of-the-art test cell is the world’s largest and the first cell built by a U.S. airline in more than 20 years.
Slide 13: Footnotes
Footnotes 1 Excluding acquisition and integration related items, transaction-related expenses, financing charges in interest expense, foreign exchange gains, the amortization of intangible assets, financial impacts associated with expected and actual dispositions of non-core businesses and assets, r
Slide 14: Strong AECOM and Pro Forma Expected Growth
Strong AECOM and Pro Forma Expected Growth Adjusted EBITDA1 (in millions) ~$1,060 ~$940 $210 $95 AECOM (FY'19E) Management Services At-Risk, Self-Perform Construction AECOM (FY'20E) Page 13 ~$740 ~$635 Pro Forma AECOM4 Pro Forma AECOM4 (FY'19E)(FY'20E)
Slide 15: Our Deliberate Steps to Maximize Long-Term Value
Our Deliberate Steps to Maximize Long-Term Value 2017 2018 2019 October 2019 Announced MS sale at a premium valuation for $2.405 billion following a robust process Early 2018 Began internal discussions to evaluate options to enhance value and drive improved operating margins November 2018 Announced