Atkinsrealis Group Inc. · TSX:ATRL
Atkinsrealis — SNC-Lavalin Group — Q2 2018 Earnings Presentation
20 slides from Atkinsrealis's earnings presentation, Aug 2, 2018
Slide 1: Second Quarter 2018 Conference Call Presentation
› Second Quarter 2018 › Conference Call Presentation › August 2nd, 2018
Slide 2: Forward-looking statements; Non-IFRS financial measures
Forward-looking statements 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 of its subsidiaries or joint arrangements, or SNC-Lavalin Group Inc. or one or more of its subsidiaries or joint ar
Slide 3: Q2 2018 – Neil Bruce, President and CEO
Q2 2018 Neil Bruce, President and CEO 3
Slide 4: Q2 2018 highlights
Q2 2018 highlights Named one of the world’s top 3 design firms › Revenue of $2.5B, up 30.6% by Engineering News Record (ENR) – demonstrates our continued derisking and Adjusted diluted EPS from E&C of $0.65 per repositioning of the business diluted share, up 51.2% Adjusted E&C EBITDA margin of 7.7%
Slide 5: Q2 2018 main segment highlights
Q2 2018 main segment highlights Mining & Metallurgy › 45.0% increase in revenues (Q2 vs Q2) › Prospects pipeline continues to improve › Pipeline is growing and have confidence in major bids we have submitted Oil & Gas › Many new projects and service agreements signed in Q2 › Recently awarded: • Awar
Slide 6: Q2 2018 main segment highlights
Q2 2018 main segment highlights Infrastructure › $9.0B of backlog* – year-to-date book-to-bill ratio of 2.5 › The recently awarded two contracts related to the REM project in Montreal included in backlog* › Awarded EPC contract for the expansion of a district cooling scheme in Saudi Arabia – our 7th
Slide 7: Q2 2018 – Sylvain Girard, EVP and CFO
Q2 2018 Sylvain Girard, EVP and CFO 7
Slide 8: Q2 2018 financial performance (vs Q2 2017)
Q2 2018 financial performance (vs Q2 2017) Revenue of $2.5B, up 30.6% Adjusted net income from E&C of $113.5M, › Increase in EDPM and Nuclear segments, mainly due to up 77.0%, or $0.65 per diluted share, up 51.2% incremental revenues from Atkins, acquired in Q3 2017 › Higher Segment EBIT, partially
Slide 9: E&C segment EBIT – Q2 2018 vs Q2 2017
E&C segment EBIT – Q2 2018 vs Q2 2017 (in M$) M&M Lower profitability %, partially offset by +91 higher level of activities. -$6M 110 Lower level of activities mainly due to 94 O&G completion or near completion of LNG 90 -$10M projects in Australia and slightly lower +22 profitability %. 70 Increase
Slide 10: 2018 Operating Cash Flow
2018 Operating Cash Flow Improved cash flow from operations (in M$) Cash Balance as December 31, 2017 707 Q1 Q2 Q3 Q4 376 Cash flow from operations (207) 240 Capital expenditures (69) 187 Net increase in receivables from long-term concession arrangements (40) Increase in recourse debt1 1,845 (60) (8
Slide 11: Capital structure and debt ratios
Capital structure and debt ratios The Company continues to maintain appropriate liquidity to pursue its growth strategy (in M$, unless otherwise indicated) Q2 2018 Limited recourse debt $979B Net recourse debt 1,460 Unused capacity under the $2.6B committed TTM adjusted EBITDA revolving credit facil
Slide 12: 2018 growth outlook
2018 growth outlook › Maintaining 2018 outlook › Q4 adjusted diluted EPS from E&C expected to be stronger than Q3 (Q3 should be similar to Q2) › Tax rate for the adjusted E&C business expected to be between 20% and 25% 2018 Adjusted diluted 2018 Adjusted consolidated EPS from E&C1 diluted EPS1 $2.60
Slide 13: Questions & Answers
Questions & Answers
Slide 14: Appendix
Appendix
Slide 15: 2017 restated figures (1 of 2)
2017 restated figures1,2 (1 of 2) On a comparable basis with our new 2018 structure3 (in thousands of $) Segment Q1 2017 Q2 2017 Q3 2017 Q4 2017 Total EBIT % Mining & Metallurgy Revenues 101,411 94,827 106,957 129,609 432,804 Segment EBIT 5,072 6,557 833 3,467 15,929 3.7% Oil & Gas Revenues 856,545
Slide 16: 2017 restated figures (2 of 2)
2017 restated figures1,2 (2 of 2) On a comparable basis with our new 2018 structure3 (in thousands of $) Segment Q1 2017 Q2 2017 Q3 2017 Q4 2017 Total EBIT % EDPM (Engineering, Design and Project Management) Revenues 39,575 43,187 715,403 893,743 1,691,908 Segment EBIT 2,529 2,978 60,586 118,775 184
Slide 17: 407 ETR information – Q2
407 ETR information – Q2 (in M$, unless otherwise indicated) Q2 2018 Q2 2017 Change Revenues 362.5 331.0 9.5% Operating expenses 43.6 39.8 9.6% EBITDA 318.9 291.2 9.5% EBITDA as a percentage of revenues 88.0% 88.0% - Net Income 129.2 124.6 3.7% Traffic / Trips (in millions) 33.0 32.6 1.2% Average wo
Slide 18: Net income reconciliation – Q2
Net income reconciliation – Q2 Net Income , Net charges Acquisition Net gain on Net expense Impact of U.S. Net income, as reported related to the disposals for the 2012 corporate adjusted (IFRS) restructuring Acquisition- Amortization of E&C class action tax reform (Non-IFRS) and other related costs
Slide 19: Net income reconciliation – YTD
Net income reconciliation – YTD Net Income , Net charges Acquisition Net gain on Net expense Impact of U.S. Net income, as reported related to the disposals for the 2012 corporate adjusted (IFRS) restructuring Acquisition- Amortization of E&C class action tax reform (Non-IFRS) and other related cost
Slide 20: Our values
Our values are the essence of our company’s identity. They represent how we act, speak and behave together, and how we engage with our clients and stakeholders. We put safety at the heart of everything we do, to safeguard people, assets and the environment. We do the right thing, no matter what, and