Slide 1: Bird Construction Inc. Investor Presentation
BIRD CONSTRUCTION INC. TSX: BDT Investor Presentation March 2021
Slide 2: Disclaimer
DISCLAIMER DISCLAIMER This presentation contains forward-looking statements and information ("forward-looking statements") within the meaning of applicable Canadian securities laws. The forward-looking statements contained in this presentation are based on the expectations, estimates and projections
Slide 3: Non-GAAP Measures and Terminology
DISCLAIMER DISCLAIMER NON-GAAP MEASURES AND TERMINOLOGY Throughout this presentation, management uses the following terms which have no standardized meaning prescribed by GAAP and are considered non-GAAP measures. Therefore, these terms may not be comparable with similar terms presented by other com
Slide 4: COVID-19 Update
COVID-19 UPDATE • Pandemic response plan and a rigorous COVID-19 health and safety program in place. EMPLOYEE • Best practices in place for managers and site teams: self-assessment tools, enhanced cleaning protocols and HEALTH AND hygiene measures, physical distancing practices, new COVID-19 measure
Slide 5: Over 100 Years Building Canada
OVER 100 YEARS BUILDING CANADA
Slide 6: Bird Construction (TSX:BDT)
BIRD CONSTRUCTION (TSX:BDT) $1.5B $41.6M $81.9M $2.7B $467.2M FULL-YEAR 2020 FULL-YEAR 2020 FULL-YEAR 2020 BACKLOG MARKET CAP REVENUE ADJUSTED EARNINGS ADJUSTED EBITDA at December 31, 2020 at March 26, 2021 26.5% $0.39 +82% 2-YR SHAREHOLDER ANNUALIZED EMPLOYEES ARE 5,000+ NATIONAL RETURN (Incl. Divi
Slide 7: Diverse Expertise
DIVERSE BUILDINGS LIGHT INDUSTRIAL NATURAL RESOURCES EXPERTISE Delivering solutions from coast-to-coast, serving a broad scope of end-markets. MODULAR POWER TRANSPORTATION Comprehensive range of construction services from new construction for industrial, commercial, and institutional markets; to ind
Slide 8: Full-Suite Service Offering
FULL-SUITE SERVICE OFFERING DIVERSIFIED REVENUE STREAMS CONSTRUCTION MAINTENANCE, DESIGN-BUILD SELF-PERFORM PUBLIC PRIVATE MANAGEMENT REPAIR & OPERATIONS PARTNERSHIPS (PPP) (MRO) FIXED PRICE / INTEGRATED PROJECT STIPULATED SUM DELIVERY (IPD) COST PLUS INDUSTRIAL SERVICE AGREEMENTS RISK SCALE Reflect
Slide 9: Constructing a Strong Foundation
CONSTRUCTING A STRONG FOUNDATION DRIVING SUPERIOR SHAREHOLDER VALUE CREATION • Balanced and disciplined approach to capital allocation TARGETING SUSTAINABLE PROFITABLE GROWTH • Managing risk profile through diversification • Recurring revenue focus • Consistent margin improvement ENVIRONMENTAL, SOCI
Slide 10: Strong Team of Constructors
DISCLAIMER STRONG TEAM OF CONSTRUCTORS LEVERAGING OUR TALENTED • Executive leadership and operational leadership composed of experienced LEADERSHIP TEAM professionals each with over 25 years in the industry • Building a high-performance culture centred on great people DEEP BENCH STRENGTH AND • Compe
Slide 11: Transformational Acquisition
TRANSFORMATIONAL ACQUISITION $95.7M $1B +$600M +$900M TOTAL BACKLOG PENDING REVENUE 110+ YRS IN CANADA CONSIDERATION BACKLOG 3,000 EMPLOYEES INDUSTRY SAFETY GREATER TOP EMPLOYER COMMUNITY ENHANCED SERVICE LEADER DIVERSIFICATION IN ALBERTA FOCUSED OFFERINGS mergers & acquisitions 11
Slide 12: Integration Update - Synergies
INTEGRATION UPDATE - SYNERGIES Bird closed its acquisition of Stuart Olson in the third quarter of 2020 Fourth quarter 2020 represents first full quarter of Stuart Olson results • Stuart Olson was accretive to full-year adjusted earnings in 2020 REALIZATION • Progress has been made in identifying an
Slide 13: Leveraging Innovation & Technology
LEVERAGING INNOVATION & TECHNOLOGY BUILDING INFORMATION MAINTENANCE, REPAIR, LEVERAGING SMART BUILDING MODELLING AND VIRTUAL AND OPERATION INNOVATIVE PERFORMANCE DESIGN & CONSTRUCTION MANAGEMENT SOLUTIONS TECHNOLOGY Utilizing integrated multi- Multi-year maintenance and Leveraging a variety of tools
Slide 14: Stack Modular
STACK MODULAR Turnkey solution bridging the gap between site and modular construction. Structural steel modular buildings up to 40-storeys for multi-family, hospitality, senior (long-term care) and student housing, and resource clients. RAPID DELIVERY ACROSS CANADA & THE USA OPPORTUNITIES MARKET POI
Slide 15: Mass Timber
MASS TIMBER Bird is a North American leader in wood construction with unmatched expertise, experience, and supply chain knowledge. >$1.27B COMPLETED OR UNDER CONSTRUCTION >$234M PRECONSTRUCTION >$1.02B OPPORTUNITIES ACROSS CANADA innovation and technology value 15
Slide 16: Bringing Value to Communities
BRINGING VALUE TO COMMUNITIES ENVIRONMENTAL SOCIAL CORPORATE STEWARDSHIP RESPONSIBILITY GOVERNANCE LEED certified projects and Support for health care foundations, A strong culture of ethical conduct professionals food and clothing banks, community Recognition of the benefits of First Zero
Slide 17: Building Sustainable Growth
BUILDING SUSTAINABLE GROWTH CONTINUALLY PURSUIT OF OVERALL MANAGING BACKLOG MARGIN IMPROVEMENT RISK PROFILE RETAINING SIGNIFICANT FINANCIAL FLEXIBILITY TO DIVERSIFIED SERVICES & FOCUSED ON INCREASING PURSUE ORGANIC AND GEOGRAPHICAL PRESENCE RECURRING REVENUE INORGANIC GROWTH STREAMS OPPORTUNITIES ta
Slide 18: Diversifying Risk Revenue by Contract Type
DIVERSIFYING RISK REVENUE BY CONTRACT TYPE in millions of Canadian dollars 28.8 1.4 100% • Public Private Partnership 102.1 23.6 20.8 (PPP) 134.6 100.6 90% 44.4 179.5 176.9 80% Higher risk • Design-Build-Finance 70% • Complex Design-Build 60% 50% • Stipulated Sum 40% • Unit Price 30% • Specified Des
Slide 19: New Contract Awards
NEW CONTRACT AWARDS CONCRETE FOUNDATIONS AND PAVING AT LNG FACILITY ERIC HAMBER SCHOOL $92M YORK UNIVERSITY NANAIMO CORRECTIONAL $154M MARKDALE HOSPITAL1 CORRECTIONAL EXPANSIONS1 185 ENFIELD PLACE $107M MRO CONTRACT $550M+ 19 (1) Awards subsequent to year-end
Slide 20: Strong Backlog & Pending Backlog
STRONG BACKLOG & PENDING BACKLOG1 in millions of Canadian dollars 5,000 59% of Backlog expected to 4,500 convert into Revenue over the next 12 months 4,000 3,500 1,636 DECEMBER 31, 2020 3,000 1,300 • Year-end Backlog was approx. $2.7B 2,500 • Year-end Pending Backlog was $1.6B 2,000 575 • Backlog in
Slide 21: Increasing Adjusted EBITDA Margin
INCREASING ADJUSTED EBITDA MARGIN in millions of Canadian dollars TRAILING TWELVE MONTH (TTM) ADJUSTED EBITDA 2020 Q4 1,565 1,504 7% 1600 1,419 1,382 1,376 6% 4.2% 1400 5.5% TTM ADJUSTED 1200 5% EBITDA Q4 2020 1000 3.6% 4% 800 3% 9 2.1% 2.3% SEQUENTIAL QUARTERS 600 1.8% OF IMPROVING TTM 2% ADJUSTED
Slide 22: Revenue, Net Income and Adjusted Earnings
REVENUE, NET INCOME AND ADJUSTED EARNINGS in millions of Canadian dollars except per share amounts REVENUE NET INCOME ADJUSTED EARNINGS $1,600 $40.0 $0.80 $0.90 $45.0 $0.92 $1.00 $1,400 $35.0 $0.80 $40.0 $0.70 $0.80 $1,200 $30.0 $35.0 $0.60 $25.0 $30.0 $1,000 $0.41 $0.50 $0.60 $800 $20.0 $36.1 $25.0
Slide 23: Strong Financial Position Q4 2020
STRONG FINANCIAL POSITION Q4 2020 DECEMBER 31, 2020 in millions of Canadian dollars 30.6% 1.20 (0.29x) LT DEBT CURRENT ADJUSTED NET DEBT/ Non-restricted cash $ 96.7 TO EQUITY RATIO TTM ADJUSTED EBITDA(1) Restricted cash $ 55.2 • Q4’20 announced new syndicated credit facilities $165M Held in joint op
Slide 24: Balanced Capital Allocation Priorities
BALANCED CAPITAL ALLOCATION PRIORITIES in millions of Canadian dollars $16.0 $14.0 $12.0 $10.0 CAPEX (2) $8.0 $6.0 $14.6 $14.4 $14.2 OPERATING $4.0 $2.0 $7.2 CASHFLOW (1) $- 2017A 2018A 2019A 2020A $80.0 $18.0 $70.0 $60.0 $17.5 $50.0 DIVIDENDS $17.0 $40.0 $17.9 $71.7 $16.5 $17.6 $30.0 $20.0 $16.0 $1
Slide 25: Why Invest in Bird
WHY INVEST IN BIRD Maintaining A Strong Balance A Leading Canadian Delivering Long-term Diversified Sheet With Significant Construction Company Shareholder Value National Presence Financial Flexibility Diversifying Book Key Focus On Overall Of Business And Pro Forma Margin Increasing Recurring Reven
Slide 26: Analyst Coverage
ANALYST COVERAGE ATB CAPITAL CANACCORD| CIBC WORLD MARKETS INC. GENUITY MARKETS Chris Murray Yuri Lynk Jacob Bout 647.776.8246 514.844.3708 416.956.6766 cmurray@atb.com yuri.lynk@canaccordgenuity.com jacob.bout@cibc.com LAURENTIAN BANK NATIONAL BANK RAYMOND TD SECURITIES FINANCIAL JAMES LTD. SECURIT
Slide 27: Questions
QUESTIONS Teri McKibbon President & Chief Executive Officer Wayne Gingrich Chief Financial Officer
Slide 28: Financial Highlights
FINANCIAL HIGHLIGHTS Q4 2020(1) FY 2020(1) STRONG Strong finish to 2020 despite STRONG FINISH TO 2020 $555M 32% $1.5B 9% FINISH TO 2020 a year of unprecedented uncertainty REVENUE REVENUE $61.5M 133% $126.3M 78% GROSS PROFIT GROSS PROFIT Healthy Backlog of $2.7B HEALTHY BACKLOG and Pending Backlog(2