Aecon Group Inc. · TSX:ARE

Aecon — Q4 2017 Earnings Presentation

17 slides from Aecon's earnings presentation, Mar 6, 2018

  1. Slide 1: Q4 2017 and Year End Results Presentation

    AECON GROUP INC. (TSX:ARE) Q4 2017 AND YEAR END RESULTS PRESENTATION MARCH 6, 2018

  2. Slide 2: Forward-Looking Information

    Forward-Looking Information

  3. Slide 3: Diverse and Resilient Business Model

    Diverse and Resilient Business Model

  4. Slide 4: 2017 Financial Results

    2017 Financial Results $ Millions * (except EPS, $ per share) REPORTED ADJUSTED 2017 2016 Change* 2017 2016 Change+ Revenue 2,806 3,213 v 13% 2,806 3,213 v 13% Gross Profit 319.0 312.5 a 2% 319.0 312.5 a 2% Gross Margin % 11.4% 9.7% 4 170bps 11.4% 9.7% 4 170bps Adjusted EBITDA 156.5 158.3 Vv 1% 181.

  5. Slide 5: Q4 2017 Financial Results

    Q4 2017 Financial Results $ Millions Three Months Ended Three Months Ended (except EPS, $ per share) December 31 - REPORTED December 31 — ADJUSTED* 2017 2016 Change+ 2017 2016 Change+ Revenue 685 845 v 19% 685 845 v 19% Gross Profit 97.1 101.6 v 4% 97.1 101.6 Vv 4% Gross Margin % 14.2% 12.0% 4 220bp

  6. Slide 6: Q4 2017 and Year-End 2017 Reconciliation

    Q4 2017 and Year-End 2017 Reconciliation ▪

  7. Slide 7: Revenue and Adj. EBITDA Margin by Segment

    Revenue and Adj. EBITDA Margin by Segment

  8. Slide 8: Infrastructure 2017 Results

    Infrastructure 2017 Results

  9. Slide 9: Energy 2017 Results

    Energy 2017 Results Revenues +8% $1,357 $1,472 2016 2017 Adj. EBITDA $76 09 $58 +32% 2016 2017 (4.3% margin) (5.2% margin) New Awards $3,039 21% g1215 (excluding jum $1,664 Darlington) || 2016 2017 A@CCON FULL YEAR* Revenue up by $115M, or 8%, year-over-year A $158M in utilities from pipeline projec

  10. Slide 10: Mining 2017 Results

    Mining 2017 Results Revenues ($MM) $861 54% $397 2016 2017 Adj. EBITDA ($MM) $91 57% $40 2016 2017 (10.6% margin) (10.0% margin) New Awards ($MM) $652 47% FULL YEAR* Revenue down $464M, or 54%, year-over-year Vv $457M in site installation work due to completion of a significant project v $23M in civ

  11. Slide 11: Concessions 2017 Results

    Concessions 2017 Results ▪ ▪ ▪

  12. Slide 12: Strong Backlog with Diversified Profile

    Strong Backlog with Diversified Profile

  13. Slide 13: Recurring Revenue Poised to Continue Growth

    Recurring Revenue Poised to Continue Growth 13

  14. Slide 14: Balance Sheet and Capital Structure

    Balance Sheet and Capital Structure 4.0x 3.5x 3.4x 3.0x 2.7x 2.5x 2.1x 2.0x 2.0x 2.0x 2.0x 1.9x 1.5x 1.2x 1.0x 1.0x 1.0x 0.9x 0.9x 0.5x 0.5x 0.3x 0.1x 0.0x 2013 2014 2015 2016 2017 LT Debt to Adj. EBITDA (excl. Converts) LT Debt to Adj. EBITDA (incl. Converts) Net Debt to EBITDA

  15. Slide 15: Cash Position

    Cash Position FREE CASH FLOW (SMM) KEY DRIVERS FOR FREE CASH FLOW MOMENTUM Dec 31 Dec 31 2017 2016 wae . os . Adjusted EBITDA 1565 150.9 Significant working capital improvement in 2017 Cash interest up by $4.8M primarily due to higher Gash Interest Expense (net) (227) (17.8) borrowings on the revolv

  16. Slide 16: Outlook

    Outlook Diverse, Resilient Business Model Strong pipeline of opportunities — government infrastructure investment, nuclear, utilities and Public Private Partnerships Numerous large-scale projects being procured in 2018 Site C generating station and spillways civil works project and Réseau express mé

  17. Slide 17: Aecon

    ACCON STEPHEN KING Director, Corporate Development & Investor Relations 416.297.2600 x3825 | sking@aecon.com AECON PACIFIC HEADQUARTERS AECON WEST HEADQUARTERS AECON EAST HEADQUARTERS 1055 Dunsmuir Street, Suite 2124 110-9th Avenue SW, Suite 300 20 Carlson Court, Suite 800 Vancouver, BC V7X 1G4 Calg

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