Slide 1: First Quarter 2015 Conference Call Notes
FIRST QUARTER 2015 Conference Call Notes May 7, 2015
Slide 2: Agenda
2 Agenda Forward-looking Statements Denis Jasmin, Vice-President, Investor Relations CEO and COO Remarks Robert G. Card, President and Chief Executive Officer Neil Bruce, Chief Operating Officer Financial Review Alain-Pierre Raynaud, Executive Vice-President and Chief Financial Officer
Slide 3: Forward-looking statements
3 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
Slide 4: CEO and COO Remarks
4 CEO and COO REMARKS ROBERT G. CARD PRESIDENT AND CHIEF EXECUTIVE OFFICER NEIL BRUCE CHIEF OPERATING OFFICER
Slide 5: Financial Review
5 FINANCIAL REVIEW ALAIN-PIERRE RAYNAUD, EXECUTIVE VICE-PRESIDENT AND CHIEF FINANCIAL OFFICER
Slide 6: Consolidated income statement
6 Consolidated income statement (in millions CAD$) First Quarter 2015 2014 Revenues Services 869.6 503.6 Packages 978.0 610.1 Operations and Maintenance (O&M) 357.4 375.2 Infrastructure Concession Investments (ICI) 52.1 231.2 Total Revenues 2,257.1 1,720.1 Gross Margin From E&C 289.6 224.8 From ICI
Slide 7: Net income adjusted
7 Net income adjusted (in millions CAD$ except per share amount) First Quarter 2015 Charges related to the Acquisition of Kentz Net income, restructuring One-time net foreign Net income, as reported and right-sizing plan exchange gain adjusted announcement Acquisition-related Amortization of of Nove
Slide 8: Net financial expenses
8 Net financial expenses (in millions CAD$) First Quarter 2015 First Quarter 2014 From E&C From ICI Total From E&C From ICI Total Interest revenues (2.7) (5.5) (8.2) (1.4) (3.1) (4.5) Net foreign exchange losses (gains) (41.1) 0.2 (40.9) (1.8) - (1.8) Interest on debt: Recourse 5.4 - 5.4 5.4 - 5.4 N
Slide 9: Changes in reporting
9 Changes in reporting • REW segment no longer exists, Oil & Gas and Mining & Metallurgy are 2 new reportable segments in addition to Infrastructure, Power and ICI. • Environment & Water sub-segment g included in the previously p y named Resources, Environment and Water (“REW”) segment was transferr
Slide 10: Segmented EBIT
10 Segmented EBIT Three months ended March 31, 2014 Three months ended March 31, 2015 (in millions CAD$) Mainly due to Altalink sale in 2014 -87.0 Mainly due to Kentz 140 129.8 2015 included a acquisition, which was favorable reforecast completed on Aug. 22, 120 of $16.9M 2014 100 2014 included a ne
Slide 11: Revenue backlog
11 Revenue backlog (in billions CAD$) 14.0 O&M 12.3 Packages 12.0 11.6 Services 1.9 1.9 10.0 8.4 8.0 5.7 2.0 5 2 5.2 6.0 4.0 4.8 2.0 4.5 4.7 1.6 0.0 March December March 2015 2014 2014 On April 15th, 2015, a consortium in which SNC-Lavalin is part of, was named preferred proponent for the new bridge
Slide 12: Financial position
12 Financial position (in millions CAD$) March 31 December 31 2015 2014 Assets Cash and cash equivalents 1,098 1,702 Other current assets 3,586 3,349 Property and equipment 251 246 ICI accounted for by the equity or cost methods 820 803 Goodwill 2,917 2,706 Intangible assets related to Kentz acquisi
Slide 13: Cash Flow – 2015
13 Cash Flow – 2015 (in millions CAD$) 2,000 133 -459 1,500 -16 -286 30 -7 1,000 , 1,702 1,097 500 0 Cash and cash EBITDA Net change Acquisition of Interest Net increase in Others Cash and cash equivalents as at From E&C in non-cash property and and income recourse debt equivalents as at December 31
Slide 14: 2015 Outlook
14 2015 Outlook The Company is maintaining its previously announced 2015 outlook for the adjusted EPS from E&C, which is expected to be in the range of $1.30 to $1.60 1. The Company is increasing its 2015 outlook for the reported IFRS EPS to a range of $1.80 to $2.10, to reflect the one-time net for
Slide 15: WE CARE about the health and safety of our employees
WE CARE embodies SNC-Lavalin’s key corporate values and beliefs. It is the cornerstone of everything we do as a company. Health and safety, employees, the environment, communities and quality: these values all influence the decisions we make every day. And importantly, they guide us in how we serve