Atkinsrealis Group Inc. · TSX:ATRL
Atkinsrealis — SNC-Lavalin Group — Q4 2011 Earnings Presentation
21 slides from Atkinsrealis's earnings presentation, Mar 26, 2012
Slide 1: Fourth Quarter 2011 Conference Call Notes
FOURTH QUARTER 2011 Conference Call Notes March 26, 2012
Slide 2: Agenda
2 Agenda Forward-looking Statements Denis Jasmin, Vice-President, Investor Relations Opening Statements Gwyn Morgan, Chairman of the Board and the Governance Committee Next Steps and 2012 Outlook Ian Bourne, Vice Chairman and Interim Chief Executive Officer Vice-Chairman Financial Review Gilles Lara
Slide 3: Forward-looking statements
3 Forward-looking statements Unless otherwise indicated, all financial information included in this presentation is in Canadian dollars. Reference in this presentation, and hereafter, to the “Company” or to “SNC-Lavalin” means, as the context may require, SNC-Lavalin Group Inc. and all or some o
Slide 4: ICI notable events
4 ICI notable events Acquisition of Macquarie Essential Assets Partnership (“MEAP ”) 23.08% ownership interest in AltaLink $228 $228.8 8 million in cash SNC-Lavalin’s ownership now 100% Additions in 2011 Rainbow Hospital Partnership 100% equity interest 30 years concession EPC to an SN
Slide 5: Outlook
5 Outlook 2012 net income to be in line with 2011 Main contributors Power Mi Miniing&&MMettallurgy ll ICI Challenging segments Hydrocarbons & Chemicals Infrastructure & Environment
Slide 6: Dividend increase
6 Dividend increase Board of Directors has increased the quarterly cash y 4.8% to $0.22 per share dividend by Quarterly Dividend per share (in $) +4.8% increase +23.5% +23 5% 0.22 increase 0.21 +13% increase +25% 0..17 increase 0.15 +33% increase 0.12 0.09 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
Slide 7: Financial Review
7 Financial Review Gilles Laramée, Executive Vice-President and Chief Financial Officer
Slide 8: Financial highlights Q4 2011 vs Q4 2010
8 Financial highlights Q4 2011 vsQ4Q42010 2010 Net income = $76.0 million for Q4 2011 vs $158.7 million for Q4 2010 $76.0 million vs $132.6 million excluding the 2010 net gain of $26.1 million from the disp posal of two ICIs Operating loss in Infrastructure & Environment and in Hydrocarbons & Ch
Slide 9: Financial Highlights – YTD 2011 vs YTD 2010
9 Financial Highlights – YTD 2011 vs YTD 2010 Year ended (in millions of $) December 31 2011 2010 Net income attributable to SNC-Lavalin shareholders: From net gains from the disposals - 45.7 of certain assets and investments Infrastructure & Environment Excluding ICI and net gain from the disposal
Slide 10: Financial highlights (cont'd)
10 Financial hig ghlig ghts (cont’d) ) Revenues for YTD 2011 increased by 20.3% to $7.2 billi billion vs $6.0 $6 0 billion billi f for YTD 2010 In all segments of activity and in all revenue categories Packagges up p by y 34.3% Services up by 18.7% Revenues in Canada increased by 30 30.2% 2% in
Slide 11: Main business acquisitions in 2011
11 Main business acq quisitions in 2011 Atomic Energy of Canada Limited (“AECL”) Candu Energy, gy wholly y-owned subsidiaryy of SNC-Lavalin, acq quired certain assets of AECL’s commercial reactor division Approx. 1,400 employees transitioned from AECL to Candu Energy Interfleet Technology
Slide 12: Annual gross margin
12 Annual gross margin (in millions of $) Year Ended December 31 2011 2010 As a % of As a % of Actual Actual revenues revenues Services 592.5 24.3 543.0 26.4 Packages 301.9 10.5 434.2 20.3 Operations and Maintenance 78.4 5.6 59.6 4.5 ICI 279.3 55.7 264.2 55.9 Total Gross Margin 1,252.1 1,301.0
Slide 13: Selling, general and administrative expenses
13 Selling, general and administrative expenses (in millions of $) Year Ended December 31 2011 2010 Selling, general and administrative expenses 654.7 581.7 Variance is mainly due to $45 million from businesses recently acquired and 5% increase in the overall SG&A
Slide 14: Revenues and operating income by segment
14 Revenues and operating income by segment (in millions of $) Year Ended December 31 2011 2010 Operating Operating Revenues Income Revenues Income Services and Packages g Infrastructure & Environment 1,945.1 46.8 1,807.1 221.3 Hydrocarbons & Chemicals 1,075.6 33.8 888.7 21.8 Mining & Metallurgy 1,0
Slide 15: Financial position
15 Financial position (in millions of $) December 31 December 31 2011 2010 Assets Cash and cash equivalents 1,231.0 1 231 0 1,235.1 1 235 1 Other current assets 2,315.3 2,331.4 Property and equipment: From ICI 2,637.7 2,072.8 From other activities 159.9 115.2 ICI accountted d for by the th equitity
Slide 16: Solid financial position and ROASE
16 Solid financial position and ROASE (in millions of $) Cash position 2011 2010 2009 2008 2007 Cash and cash equivalents 1,231.0 1,235.1 1,218.2 988.2 1,088.6 IFRS CND GAAP Return on Average Shareholders’ Equity (ROASE) 2011 2010 2009 2008 2007 ROASE 19.3 28.4 27.3 29.1 16.4 IFRS CND GAAP
Slide 17: Cash flow
17 Cash flow (in millions of $) Year Ended December 31 2011 2010 Cash flows generated from (used for): Operating activities 919.6 500.1 Investing activities (863.6) (475.9) Financing activities (56 8) (56.8) 31 9 31.9 Decrease in exchange differences on translating cash and cash equivalents held in
Slide 18: ICI net book value and estimated market value
18 ICI net book value and estimated market value Net Book Estimated E ti t d Estimated E ti t d (1) (1) Value Market Value Market Value Dec. 2011 Dec. 2011 Dec. 2011 (in $, per SNC- (in millions $) (in millions $) Lavalin's share) Highway 407 (16.77%) - 1,499.5 9.87 AltaLink (100%) 602.0 1,039.7 6.8
Slide 19: Revenue Backlog
19 Revenue Backlog By Category of Activity December September December (in millions of $) 2011 2011 2010 Services 2,226.1 2,196.6 1,410.7 Packages g 5,482.8 , 4,852.3 , 5,572.4 , Operations & Maintenance 2,379.1 2,393.2 2,732.8 Total Revenue Backlog 10 088 0 10,088.0 9 442 1 9,442.1 9 715 9 9,715.9
Slide 20: Peer group comparison
20 Peer group comparison (1) (2) R.O.E . P/E To be comparable to our peers, SLI’s P/E needs to be (3) adjusted by SNC-Lavalin 19.3% 7.5 removing from SLI’s price and AECOM 10.7% 9.7 earnings SLI’s ICIs. Fluor 16.5% 16.0 Foster Wheeler 11.9% 11 9% 14.9 14 9 Jacobs Engineering 10.5% 15.5 Shaw Group -8
Slide 21: If you have further questions, please contact
21 If you have further questions, please contact: Denis Jasmin tel: (514) 390-8000, ext. # 7553 E-mail: denis.jasmin@snclavalin.com Replay of conference call: Investor Relations section of website: www.snclavalin.com