Aecon Group Inc. · TSX:ARE
Aecon — Investor Presentation (May 2013)
22 slides from Aecon's investor presentation, May 2013
Slide 1: Aecon Group Inc. Investor Presentation
Aecon Group Inc. (TSX: ARE) Investor Presentation May 2013 1
Slide 2: Forward-Looking Information
FORWARD-LOOKING INFORMATION The information in this presentation includes certain forward-looking statements. These “forward-looking” statements are based on currently available competitive, financial and economic data and operating plans but are subject to risks and uncertainties. In addition to ev
Slide 3: Aecon @ Work
AECON GROUP INC. AECON @ WORK …to be Canada’s Premier Construction and Infrastructure Development Company 3
Slide 4: Aecon Overview
AECON OVERVIEW ‘ONE’ Aecon approach Focused on execution and performance Strong backlog supplemented by growing recurring revenue Expanding margins and on a clear path to deliver stronger results Balanced and diversified 4
Slide 5: Strategic Core Markets
STRATEGIC CORE MARKETS Aecon Infrastructure Transportation Heavy Civil Social Infrastructure Aecon Energy Oil and Gas Power Generation: Nuclear, Co-Generation, Thermal, & Renewable Utilities (including pipeline and transmission) Energy Support Services Aecon Mining Mine-site In
Slide 6: 2013 Business Strategy
2013 BUSINESS STRATEGY Four Elements: 1. Invest in our People and their Safety 2. Profitability – drive to best in class margins 3. Organic growth through partnerships and alliances 4. Focus on Execution, Operational Discipline, and Risk Management 6
Slide 7: Achievements & Outlook
ACHIEVEMENTS & OUTLOOK Significant progress towards 9% EBITDA target in 2015 Growth in margins and profitability in Energy segment Mining business successfully scaled Expanded Utilities business in western Canada Redefined and refocused Buildings operations Positive 2013 Outlook Robust
Slide 8: 2013 Q1 Financial Results
2013 Q1 FINANCIAL RESULTS Three months ended $ Millions March 31 2013 2012 Revenues 567.4 486.4 Gross profit 22.5 30.6 EBITDA (11.3) (0.4) Operating profit (31.1) (17.3) Profit (loss) (29.9) (19.6) Backlog 2,073 2,379 Note: Excluding a one-time project provision in Q1 2013, EBITDA improved by $8.5 m
Slide 9: Major Projects
MAJOR PROJECTS IPF Cold Lake & Polaris Industrial Facility Henday Ring Road Capilano Tunnels Lower Mattagami Waneta Dam Rocanville Mine Port Mann Darlington Union Station TTC Sheppard West Air Rail Link 9
Slide 10: National Fabrication Capability
NATIONAL FABRICATION CAPABILITY FABRICATION FACILITIES Brantford, ON 60,000 sq. ft. Cambridge, ON 120,000 sq. ft. Kitchener, ON 15,000 sq. ft. Dartmouth, NS 47,000 sq. ft. Pictou, NS 50,000 sq. ft. Edmonton 1, AB 80,000 sq. ft. Edmonton 2, AB 85,000 sq. ft. Vancouver, BC 40,000 sq. ft. TOTAL 497,000
Slide 11: Track Record of Profitable Growth
TRACK RECORD OF PROFITABLE GROWTH EBITDA Margin 1.7% 3.1% 4.8% 6.2% 5.5% 2.2% 5.1% 6.0% 5.4% Compound Annual Growth Rates 3,500 200 (CAGR) 2006 – 2013 180 3,000 160 Revenue 17% 2,500 140 Revenue (excl. acquisitions) 8% EBITDA 28% REVENUES 120 EBITDA 2,000 100 1,500 80 1,000 60 40 500 20 0 0 2006 200
Slide 12: Improved Returns for Shareholders
IMPROVED RETURNS FOR SHAREHOLDERS Adjusted Net Income Dividends Declared Attributable to Shareholders(1) (cents per share) ($Millions) 80 74.5 0.35 0.32 70 63.7 0.30 0.28 59.3 60 54.5 48.3 0.25 50 44.4 0.20 0.20 0.20 0.20 0.20 40 31.0 0.15 30 20 0.10 0.07 11.5 10 0.05 0 0.00 2006 2007 2008 2009 2010
Slide 13: Balanced and Diversified Portfolio
BALANCED AND DIVERSIFIED PORTFOLIO (BY Q1 2013 TTM REVENUE) 13
Slide 14: Backlog Revenue
BACKLOG REVENUE $ Millions Total Backlog $3,000 (Q1 2013) $2,500 $2.073 Billion $2,000 Aecon Infrastructure $1,021 Million $1,500 Aecon Energy $1,000 $801 Million $500 Aecon Mining $251 Million $0 2006 2007 2008 2009 2010 2011 2012 Q1 2013 Aecon announced $375 million in various awards on May 7,
Slide 15: Visibility in Backlog Duration
VISIBILITY IN BACKLOG DURATION $2,500 $2,000 $170 $590 $ Millions $1,500 $72 $281 $1,000 $1,323 $500 $1,006 $0 Q1 2009 Q1 2013 < 12 MTHS 12 - 24 MTHS > 24 MTHS 15
Slide 16: Growing Volume from Recurring Revenue
GROWING VOLUME FROM RECURRING REVENUE 800.0 700.0 600.0 $ Millions 500.0 400.0 300.0 200.0 100.0 0.0 2006 2007 2008 2009 2010 2011 2012 2013 Q1 TTM Recurring revenues are related to a variety of construction services, in particular much of the work performed in Contract Mining and Utilities. 16
Slide 17: Key Balance Sheet Objectives
KEY BALANCE SHEET OBJECTIVES 1. Efficient financing of equipment fleet Capex actual/forecast (millions): 2011: $ 111 2012: $ 87 2013: $ 80-85 Actual/expected equipment related debt at end of: 2011: $ 201 2012: $ 208 2013: $ 200-205 2. Balance Sheet strength to support bonding / LCs / working cap
Slide 18: Key Balance Sheet Objectives
KEY BALANCE SHEET OBJECTIVES 3. Maintain prudent leverage – at or below 1.0x through end 2015 after Convertible Debenture maturities, driven by: EBITDA growth Recourse debt reduced to primarily equipment financing through cash generation M&A growth Internal cash Potential Quito not a driver gene
Slide 19: Key Statistics
KEY STATISTICS Revenue as at March 31, 2013 (TTM) $3.0 billion Backlog as at March 31, 2013 $2.1 billion Market Capitalization ~ $650 million 52 Week Range $9.48 - $13.35 Shares Outstanding 55.9 million Average Daily Volume ~ 200,000 Annual Dividend (increased in 2013) $0.32/share Ma
Slide 20: Market Opportunities
MARKET OPPORTUNITIES Canada’s construction industry is forecast to be one of the world’s largest construction markets by 2020 Unprecedented opportunities in key sectors: Infrastructure: Large transportation projects in the planning or bidding stage Energy: In power, $200B is projected to be
Slide 21: Summary
SUMMARY Industry leader with unmatched scale and scope in Canada Positioned in three key growth sectors Strong backlog with growing recurring revenues Ongoing EBITDA margin expansion Solid capital structure Focused on execution and performance 21
Slide 22: Aecon Group Inc. Investor Presentation
Aecon Group Inc. (TSX: ARE) Investor Presentation May 2013 22