Slide 1: Q4 and Full-Year 2020 Earnings Presentation
Q4 and Full-Year 2020 Earnings Presentation February 25, 2021
Slide 2: Cautionary Statement
Cautionary Statement This presentation contains non-IFRS measures and forward-looking statements, including a discussion of our business targets, expectations, and outlook. We caution readers not to place undue reliance on our forward-looking statements since a number of factors could cause actual Q
Slide 3: Agenda
Agenda Gord Johnston Opening Remarks Strategic Progress Business Performance Theresa Jang Q4 2020 Q4 and Full-Year 2020 Financial Performance 2021 Targets Gord Johnston Concluding Remarks 3 3
Slide 4: Executing our strategy
Executing our strategy Adjusted EBITDA Record Adjusted Margin Diluted EPS Backlog 15.7% $2.22 $4.4B Q4 2020 Adjusted EBITDA margin 2020 Adjusted diluted EPS Backlog grew organically increased by 0.2% to 15.7% increased 9.9%. by 3.1% year over year. from 15.5% in 2019. (11 months of work.) 4
Slide 5: Executing our strategy: Real Estate Optimization
Executing our strategy Real Estate Optimization 30% Q4 2020 2023 Real Estate Strategy targets 30% reduction in existing real estate footprint 5
Slide 6: We are a proven sustainability leader
We are a proven sustainability leader Net Zero #5 #1 Carbon neutral Ranked fifth Ranked most LEADERS IN SUSTAINABILITY for 2022, then most sustainable sustainable net zero for 2030 corporation corporation in the world in North America Our Operational Pledge 2021 Corporate Knights Global 100 CDP (1)
Slide 7: Business Performance
Q4 2020 Business Performance 7
Slide 8: United States
United States Backlog $2.5 Billion Q4 2020 Gross Revenue Net Revenue Q4 Project Wins • Pure Water San Diego Phase 1 of the US$3 billion program to supply sustainable water to 1.4M people • Design for 6 public schools In Prince George’s County, Maryland • 9 bridge and 2 roadway projects Including thr
Slide 9: Canada
Canada Backlog $1.1 Billion Q4 2020 Gross Revenue Net Revenue Q4 Project Wins • 3 hospitals for ~ $53 million in net revenue Including St Paul’s Hospital in Vancouver, British Columbia • Geotechnical Surveillance – Energy & Resources For ~$33 million in net revenue • 360 Transit Alliance A joint ven
Slide 10: Global
Global Backlog $0.8 Billion Q4 2020 Gross Revenue Net Revenue Q4 Project Wins • West Africa’s Regional Transport Governance Project The European Commission selected Stantec to support Ghana in enhancing the stability and security of the movement of goods and people across West Africa • SEQwater’s So
Slide 11: Q4 and Full-Year 2020 Financial Performance
Q4 2020 Q4 and Full-Year 2020 Financial Performance Theresa Jang - Executive Vice President and Chief Financial Officer 11
Slide 12: Q4 2020 Results
Q4 2020 Results Adjusted EBITDA and margin ($ millions, %) Q4 2020 Q4 2019 Change % Year- (In millions of Canadian dollars, except per share amounts and over-year percentages) $ $ change Net revenue 861.7 901.0 (4.4) Gross margin 455.0 486.3 (6.4) Administrative and marketing expenses 317.5 348.5 (8
Slide 13: 2020 Results
Adjusted EBITDA and Adjusted Net Income 2020 Results margin and margin ($ millions, %) ($ millions, %) 2020 2019 Change % Year- (In millions of Canadian dollars, except per share amounts and over-year percentages) $ $ change Net revenue 3,684.5 3,711.3 (0.7) 2019 2020 2019 2020 Gross margin 1,930.5
Slide 14: Balance sheet strength
Balance sheet strength Net debt to adjusted EBITDA(1) 0.7x at Dec 31, 2020 Target range 1.0 - 2.0x Q4 2020 Days sales outstanding (1) 75 days at Dec 31, 2020 Target 90 days (1) Net debt to adjusted EBTIDA and days sales outstanding are non-IFRS measures discussed in the Definitions section of Stante
Slide 15: Liquidity and capital allocation
Liquidity and capital allocation Quarterly and TTM Free cash flow(1) ($ millions) • $440 million Free cash flow • $80 million in share repurchases • $300 million bond offering closed on October 8, 2020 Q4 2020 Capital returned to shareholders ($ millions) • $800 revolving credit facility largely und
Slide 16: 2021 Outlook
2021 Outlook Real Estate Strategy expected to contribute ~$0.10 to 2021 EPS 2021 Targets - Updated Geography 2021 Regional Outlook 2020 Performance 15.7% Adjusted EBITDA(1) 14.0% 15.0% 16.0% 17.0% • Muted organic growth absent (% of net revenue) US stimulus spending 6.8% United States Adjusted net i
Slide 17: Concluding Remarks
Q4 2020 Concluding Remarks Gord Johnston – President and Chief Executive Officer 17
Slide 18: Committed to our strategic targets for 2023
Committed to our strategic targets for 2023 Net Adjusted Earnings Revenue per Share >10% >11% CAGR CAGR Q4 2020 Adjusted EBITDA Adjusted Return on Margin Invested Capital 16-17% >10% Of Net Revenue Maximizing long-term, sustainable value through our value creators 18
Slide 19: Q4 2020 Q&A
19 Q4 2020 Q&A