Slide 1: Third Quarter F2023 Earnings Presentation
Third Quarter F2023 Earnings Presentation February 9, 2023
Slide 2: Forward Looking Statements
Forward Looking Statements Note to Reader: This presentation and the oral statements made during this call may contain certain statements that constitute forward-looking information within the meaning of applicable securities laws ("forward-looking statements"). Forward-looking statements include al
Slide 3: Non-IFRS Measures and Other IFRS Measures
Non-IFRS Measures and Other IFRS Measures Throughout this presentation management uses certain non-IFRS measures, non-IFRS ratios and supplementary financial measures to evaluate the performance of the Company. The terms “EBITDA”, “organic revenue”, “adjusted net income”, “adjusted earnings from ope
Slide 4: Third Quarter Highlights
Third Quarter Highlights ATS delivered solid performance in a challenging economic environment Record Order Bookings¹ (up 46% y/y) to $979MM Record Order Backlog1 (up 45% y/y) to $2,143MM Record Revenues (up 18% y/y) to $647MM driven by organic growth1 and recent acquisitions Adj. Operating Margin¹
Slide 5: Our Value Drivers
Our 8 Value Drivers Financial EBIT Working Bookings Revenue Capital Margin Customer People On-Time Internal Fill Employee Quality Delivery Rate Turnover Continuous Improvement 5 5
Slide 6: Outlook
Outlook Order Backlog¹ strong and extended, providing solid base of work in core markets Life Sciences Order Backlog¹ $793 MM with strong funnel across major submarkets Transportation Order Backlog¹ $887 MM due to OEM increase in global EV investment Food & Beverage Order Backlog¹ $208 MM highest si
Slide 7: ATS Business Model
W inn ing as at ea m Fo rm ATS Business Model a la nd dis c ipl ine d 7
Slide 8: Targeting Value Creation in Attractive Markets
Expanding Our Presence What We Look For Key Acquisitions End Market Exposure ■ Growth orientated Targeting Value Creation in Attractive Markets Attractive ■ Low cyclicality Markets ■ Regulated spaces Acquired: Dec 2021 ü Life Sciences Price: ~US$450mm ■ Differentiated technology Strategic ■ Innovati
Slide 9: Order Bookings
Order Bookings LTM Book to Bill Ratio1,2 LTM Order Bookings1,2 Figures in Millions of Canadian dollars Driven by three consecutive quarters of record Order Bookings 1. See “Appendix: Reconciliation of Non-IFRS Measures to IFRS Measures”; 9 2. LTM Order Bookings = Order Bookings for the previous twel
Slide 10: Q3 F2023 Financial Results
Q3 F2023 Financial Results (C$ mm, except per share data) Q3 F2023 Q3 F2022 Y/Y Change ($) Y/Y Change (%) Revenue Growth: Revenues $647.0 $546.8 $100.2 18.3% Organic 9.6 % Earnings from operations 56.0 38.2 17.8 46.6% Acquisitions 7.5 % Adjusted earnings from FX 1.2 % 80.6 70.4 10.2 14.5% Total 18.3
Slide 11: Order Backlog
Order Backlog Order Backlog1 Order Backlog1,2 In the fourth quarter of fiscal 2023, management expects the conversion of Order Backlog to revenues to be in the 29% to 32% range. 1. See “Appendix: Reconciliation of Non-IFRS Measures to IFRS Measures”; 2. Order Backlog in C$ mm; 11
Slide 12: Cash Flow Generation
Cash Flow Generation Cash Flow from Operations Free Cash Flow1 Figures in Millions of Canadian dollars Figures in Millions of Canadian dollars Net Debt to Adj. EBITDA1 Q3-23 cash generated from operations primarily related to receipt of milestone payments 1. See “Appendix: Reconciliation of Non-IFRS
Slide 13: Summary
Summary Record revenues, Order Bookings1 and Order Backlog1 Positive activity levels across strategic end-markets Two new acquisitions announced and integration of previous acquisitions on track Estimated Q4-F23 Order Backlog1-to-revenue conversion in the 29% to 32% range ABM continues to drive comp
Slide 14: Appendix
Appendix Reconciliation of Non-IFRS Measures to IFRS Measures 14
Slide 15: F2018 F2019 F2020
(C$ mm) Q3 Q3 YTD YTD (C$ mm) Q2 Q3 Q4 Q1 Q2 Q3 F2018 F2019 F2020 F2021 F2022 F2023 F2022 F2023 F2022 F2022 F2022 F2022 F2023 F2023 F2023 Adjusted EBITDA 133.3 161.9 195.1 200.7 343.9 95.1 83.5 284.7 244.9 LTM Order Bookings 2,045 2,281 2,456 2,555 2,849 3,157 Restructuring charges 11.2 — 26.6 14.3
Slide 16: Appendix: Reconciliation of Non-IFRS Measures to IFRS Measures
Appendix: Reconciliation of Non-IFRS Measures to IFRS Measures (C$ mm) Q3 Q3 YTD YTD (C$ mm) Q3 F2018 F2019 F2020 F2021 F2022 F2023 F2022 F2023 F2022 F2023 Adjusted earnings from operations 80.6 70.4 243.2 206.7 Cash and cash 330.2 224.5 358.6 187.5 135.3 302.1 equivalents Restructuring charges 10.5
Slide 17: Appendix: Reconciliation of Non-IFRS Measures to IFRS Measures
Appendix: Reconciliation of Non-IFRS Measures to IFRS Measures Measure (C$ mm) Q3 (C$) YTD YTD F2022 Q3 F2023 Q3 F2022 F2023 F2023 F2022 Accounts receivable 348.6 384.7 Basic earnings per share 0.32 0.26 1.07 0.88 Income tax receivable 9.0 7.2 Restructuring charges 0.11 0.04 0.13 0.05 Acquisition-re