Stantec Inc · TSX:STN
Stantec — Merger or Acquisition (October 2021)
14 slides from Stantec's merger presentation, Oct 21, 2021
Slide 1: Strategic Acquisition of Select Assets
S T R AT E G I C A C Q U I S I T I O N OF SELECT ASSETS OCTOBER 21, 2021
Slide 2: Cautionary Note Regarding Forward-Looking Statements
Cautionary Note Regarding Forward-Looking Statements Certain statements contained in this presentation constitute forward-looking information and statements within the meaning of applicable GROWTH securities law (collectively, "forward-looking statements"). Forward-looking statements in this present
Slide 3: Non-IFRS Measures & Advisories
Non-IFRS Measures & Advisories While Stantec reports its financial results in accordance with IFRS, the following non-IFRS measures are used in this presentation: net GROWTH revenue; adjusted EBITDA, and net debt to adjusted EBITDA ratio. Additional details for these non-IFRS measures can be found i
Slide 4: At a glance
At a glance GROWTH Stantec has agreed to acquire select assets from Cardno, strengthening the company’s positioning in the ESG and engineering advisory markets PEOPLE 2,750 EMPLOYEES North America Consulting(1) INNOVATION Environmental Services, Ecosystem Assessment and Restoration, Infrastructure,
Slide 5: Transaction Overview
Transaction Overview GROWTH Purchase Price US$500M PEOPLE Transaction Multiple 1.5x leverage Attractive Immediate US$10M in INNOVATION 9.4x at close deleveraging double-digit cost synergies Within target range of Leverage projected to be EBITDA (1) accretion (Anticipated run-rate) 1.0x - 2.0x net de
Slide 6: Global growth aligned with our strategy
Global growth aligned with our strategy Cardno nearly doubles Stantec’s Cardno increases US presence in Australia 2,500 GROWTH Environmental Services presence by more than 1,400 1,200 ~2x 60% 1,050 450 PEOPLE 2016 2019 2021 2021 2021 INNOVATION Grows Stantec’s US presence by 15% Top Tier EXCELLENCE
Slide 7: Critical Mass and Diversity in Australia
Critical Mass and Diversity in Australia Establishing a leading presence in key strategic sectors GROWTH 14% 11% 10% 15% PEOPLE Cardno1 Stantec2 28% 71% 51% INNOVATION ENVIRONMENTAL COMMUNITY MINE TRANSPORT & SERVICES DEVELOPMENT CLOSURES WATER 5% 8% End to end sustainability Range of urban and regi
Slide 8: Expanding Growth Platforms in the US
Expanding Growth Platforms in the US Expands our presence and technical expertise in key strategic sectors GROWTH 10% 17% 23% 21% PEOPLE Cardno1 Stantec2 30% 77% 22% INNOVATION GOVERNMENT HEALTH ECOSYSTEM TRANSPORT SERVICES SCIENCES RESTORATION Strong reputation with key 9% Provide engineering and P
Slide 9: Bolstering Stantec's position to benefit from US stimulus
Bolstering Stantec’s position to benefit from US stimulus Bipartisan Senate bill would boost spending ~6% above ACEC forecast over next six years (1) ACEC ENGINEERING AND DESIGN SERVICES FORECAST (1) ADDRESSABLE AREAS OF BIPARTISAN BILL (2) FUNDING ($ billions in output in A/E Services) $440 Transpo
Slide 10: Augmenting Stantec's Sustainability Leadership
Augmenting Stantec’s Sustainability Leadership GROWTH Cardno’s sophisticated approach to ESG and Sustainability Net Zero #5 #1 Services aligns with Stantec and will further strengthen PEOPLE Stantec’s leadership position in the marketplace. Carbon neutral Ranked fifth Ranked most for 2022, then most
Slide 11: Cultural Alignment
Cultural Alignment Driving a Common Purpose GROWTH PEOPLE WE PUT PEOPLE FIRST PEOPLE People are at the heart of everything we do; they give What’s good for our people, communities and the world our work purpose we live in, can be good for business INNOVATION W E D O W H AT I S R I G H T INTEGRITY We
Slide 12: Transaction Timeline
Transaction Timeline Transaction is expected to close by the end of 2021, subject to customary closing conditions, including shareholder approval and regulatory review and approval. GROWTH OCT 21, 2021 DEC 6, 2021 By year end 2021 2022 PEOPLE Transaction Announcement Target Shareholder Approval Tran
Slide 13: Transaction tracks to our 2023 strategic targets
Transaction tracks to our 2023 strategic targets GROWTH 2023 TARGET ON TRACK PEOPLE Net Revenue Growth >10% CAGR 2022E Net revenue increases by US$350M+ INNOVATION Adjusted EPS Growth >11% CAGR Double-digit pre-synergy accretion Cardno margin profile consistent with Adjusted EBITDA Margin 16-17% of
Slide 14: Q&A
6.) Stantec- «=. CD Cardno Q&A OCTOBER 21, 2021