Wsp Global Inc · TSX:WSP
Wsp Global — Q2 2018 Earnings Presentation
21 slides from Wsp Global's earnings presentation, Aug 8, 2018
Slide 1: Q2 2018 results
Q2 2018 results August 8, 2018
Slide 2: Q2 2018 Highlights
Q2 2018 Highlights
Slide 3: Q2 2018 Highlights
Q2 2018 Results Q2 2018 Highlights Solid Q2 18 financial results, with organic growth in net revenues spanning across all reportable segments 3 and strong trailing twelve- month free cash flow Once we close Louis Berger transaction, all of our 2015- 2018 Strategic Plan objectives will have been met
Slide 4: Net revenues were $1.5 billion, up 17.1%
Net revenues were $1.5 billion, up 17.1% Organic growth in net revenues was strong at 8.7% 4 Adjusted EBITDA at $169.5 million Adjusted EBITDA at 11% Backlog, stood at $6.7 billion, representing approximately 10.3 months of revenues Backlog organic growth amounted to 7.8%
Slide 5: Louis Berger
Q2 2018 Results Louis Berger US-headquartered leading international professional services firm • Strengthen our presence in the US • Adds depth to our 3 transportation team • Strengthens our expertise in sectors and services that WSP had targeted for growth (critical mass in water and environment) •
Slide 6: Strategic Plan Update
Q2 2018 Results Strategic Plan Update Once Louis Berger is closed 2018 Objective Employees 48,000 45,000 6 Net Revenues (CAD) > 6.0B 6.0B Adjusted EBITDA Margin (%) ± 11.0 11.0
Slide 7: Financial Performance
Q2 2018 Financial Performance
Slide 8: Q2 2018 Financial Highlights
Q2 2018 Results Q2 2018 Financial Highlights — 8.7% organic growth in net revenues 8 — 11% Adjusted EBITDA margin — 79 days end-of-period DSO — $337.3 million trailing twelve-month free cash flow (153.3% of net earnings attributable to shareholders) — 1.8 times net-debt-to- adjusted EBITDA ratio
Slide 9: Revenues and Net Revenues
Q2 2018 Results Revenues and Net Revenues* +18.0% +17.1% 2025.9 1,541.1 1717.2 1,315.9 8.7% organic 9 growth in net revenues Year Year REVENUES NET REVENUES * In millions CAD – Non-IFRS measures Q2 2017 Q2 2018
Slide 10: Adjusted EBITDA and Adjusted EBITDA margin
Q2 2018 Results Adjusted EBITDA* and Adjusted EBITDA margin +20.8% 169.5 140.3 10 10.7% margin 11.0% margin Year Q2 2017 Q2 2018 * In millions CAD – Non-IFRS measures
Slide 11: Adjusted Net Earnings
Q2 2018 Results Adjusted Net Earnings* +24.0% 81.2 65.5 11 $0.64/share $0.78/share Year Q2 2017 Q2 2018 * In millions CAD – Non-IFRS measures
Slide 12: Backlog
Q2 2018 Results Backlog* 10.3 months of revenues 6,718.8 6,706.9 6,361.6 5,864.6 5,963.9 Q2 2018 COMPARED TO Q2 2017 and Q4 2017 (in millions of dollars, except Total percentages) 13 Hard Backlog Q2 2018 $6,706.9 Hard Backlog Q2 2017 $5,864.6 Net change ($) $842.3 Organic growth compared to Q2 2017
Slide 13: Canada
Q2 2018 Results Canada 5 6.6% Organic growth in net revenues 13.8% Adjusted EBITDA margin before Global Corporate costs Initial phase of environmental assessment for the Kitchener- Waterloo to London segment of the Ontario high speed rail project.
Slide 14: Americas
Q2 2018 Results Americas 9.0% organic growth in net revenues 16.7% adjusted EBITDA margin before Global Corporate costs 6 Engineering and environmental contract for the Eolic Park Llanos del Viento project in Chile (direct result of collaboration between POCH and ConCol, which were acquired last yea
Slide 15: EMEIA
Q2 2018 Results EMEIA 9.0% organic growth in net 7 revenues 9.6% Adjusted EBITDA margin before Global Corporate costs Greenlink has appointed WSP, to its €400m electricity interconnector linking Wales and Ireland - one of Europe’s most important energy infrastructure projects
Slide 16: APAC
Q2 2018 Results APAC 10.6% organic growth in net 8 revenues 10% Adjusted EBITDA margin before Global Corporate costs Air Quality Impact Assessments for the first 12 months of construction of the Melbourne Metro Rail Project, one of the largest infrastructure projects ever undertaken in Australia
Slide 17: Stable DSO
Q2 2018 Results Stable DSO* 17 86 82 79 78 79 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 *Non-IFRS measures
Slide 18: Financial position and net debt/TTM adjusted EBITDA ratio
Q2 2018 Results Financial position and net debt/TTM adjusted EBITDA* ratio (in $M, CAD) Q2 2018 Financial liabilities $1,280.1 Less: Cash ($153.4) 18 Net debt $1,126.7 TTM adjusted EBITDA* $603.4 Net debt / TTM adjusted EBITDA* (adjusted for 12-month net revenues for 1.8x all acquisitions) * In mill
Slide 19: H2 2018 Regional operational outlook
H2 2018 Regional operational outlook Q2 2018 Results NORDICS Higher utilization rates CANADA Solid backlog and good prospects Mid to high single digits Low to mid single digit UK 19 Large public sector work ASIA Continued slowdown in Low single digits buildings market AMERICAS Negative organic growt
Slide 20: 2018 Outlook Reiterated
Q2 2018 Results 2018 Outlook Reiterated Net revenues* Between $5,700 million and $5,900 million Adjusted EBITDA* Between $610 million and $660 million Q1: 18% to 21% Seasonality and adjusted EBITDA* Q2: 25% to 28% fluctuations Q3: 26% to 29% Q4: 24% to 27% 20 Tax rate 23% to 25% DSO* 80 to 85 days A
Slide 21: WS |?
WS |?