Slide 1: Q4 2019 & F2019 Results
Q4 2019 & F2019 Results February 27th, 2020
Slide 2: Cautionary Statement and Non-IFRS Measures
Q4 2019 & F2019 Results CAUTIONARY STATEMENT AND NON-IFRS MEASURES CAUTIONARY STATEMENT — Certain information regarding WSP contained herein may constitute forward-looking statements. Forward-looking statements may include estimates, plans, expectations, opinions, forecasts, projections, guidance or
Slide 3: Introduction
WS) Introduction
Slide 4: We Met or Exceed Most 2019 Outlook Targets
Q4 2019 & F2019 Results WE MET OR EXCEED MOST 2019 OUTLOOK TARGETS ACTUAL RESULTS IN 2019, EXCLUDING LATEST 2019 TARGET RANGE INCLUDING FOREIGN EXCHANGE FLUCTUATIONS AND IFRS 16 - LEASES IMPACT NEW ACQUISITIONS Net Revenues* Toward the high end of the range of $6.6 billion and $6.9 billion ✓ Adjuste
Slide 5: Solid Performance: F2019 Performance Highlights
Q4 2019 & F2019 Results F2019 PERFORMANCE HIGHLIGHTS SUSTAINABLE LEADERSHIP SECTOR EXPERTISE SOLID PERFORMANCE Organic Growth in Net Revenues* Strengthen our Record High sector expertise Backlog & 5 Adjusted EBITDA* Accountability for sustainable leadership Solid Cash Flow Expand our Generation geog
Slide 6: Sustainability Leadership Performance
Q4 2019 & F2019 Results SUSTAINABILITY LEADERSHIP PERFORMANCE • Continued accountability for sustainable leadership 6 • First professional services firm in the Americas to secure sustainability-linked terms for its syndicated credit facility • “A-” score for our latest response to CDP’s annual Clima
Slide 7: Progress in 2019 Towards Our 2021 Financial Ambitions
PROGRESS IN 2019 TOWARDS OUR 2021 FINANCIAL AMBITIONS Employees ± 50,000 65,000 Net revenues* 6.9B $8B t o $9B Annual net revenue* 14.4% > 10% 7 growth (organic and acquisitions) Adjusted EBITDA margin* 15.1% 15% t o 16% Days sales outstanding 74 days < 80 days (DSO)* Net debt/Adjusted 1.1x 1.0x t o
Slide 8: We Have Progressed Across Our Four Pillars
WE HAVE PROGRESSED ACROSS OUR FOUR PILLARS Innovative forward-thinking advice and Project Management unparalleled Academy expertise CLIENTS Diamond Clients OPERATIONAL EXCELLENCE Health & Safety / Ethics & Compliance
Slide 9: Reportable Segments Fiscal 2019 Performance
Reportable Segments Fiscal 2019 Performance
Slide 10: F2019 Financial Performance
Q4 2019 & F2019 Results F2019 FINANCIAL PERFORMANCE Revenues $8.9B +12.7% Backlog* $8.1B +5.9% Net revenues* +14.4% (10.6 months of revenues) Organic growth $6.9B 10 Organic growth DSO* (2 days) in net revenues* +3.5% 74 days vs F2018 Earnings before net financing Cash inflows from expense and incom
Slide 11: Acquisitions Completed in 2019, Three Closed in Q4 2019
Q4 2019 & F2019 Results OUT OF THE 8 ACQUISITONS COMPLETED IN 2019, 3 WERE CLOSED IN Q4 2019 – WE ALSO COMPLETED ONE IN Q1 2020 11 — ± 2,000 employees — Specific expertise or access to specific geographies Completed in Q4 2019 — Financed using cash on hand and credit facilities
Slide 12: Canada
Q4 2019 & F2019 Results CANADA • 1.2% organic growth in net revenues* • 19.4% segmented adjusted EBITDA margin • 14.8% pre-IFRS 16** Net revenues breakdown – Fiscal 2019 Industry Environment Resources 4% 19% 9% 12 Power & Energy 3% Property & Buildings 23% Transportation & Infrastructure 42% *Non-IF
Slide 13: Canada – Major Win
Q4 2019 & F2019 Results CANADA – MAJOR WIN • Twinning of highway 104 project in Nova Scotia. • The public-private-partnership approach will result in new twinned portions of the highway being opened much earlier than a traditional build model. • This approach will be done without tolls or staff redu
Slide 14: Americas
Q4 2019 & F2019 Results AMERICAS • 3.1% organic growth in net revenues* • 18.0 % segmented adjusted EBITDA margin • 14.4% pre-IFRS 16** Net revenues breakdown – Fiscal 2019 Transportation & Infrastructure 14 Power & Energy 65% 3% Resources 4% Industry 1% Property & Buildings Environment 15% 12% *Non
Slide 15: Americas – Major Win
Q4 2019 & F2019 Results AMERICAS – MAJOR WIN • WSP USA has joined the team that will build a high-speed passenger rail line between Dallas and Houston. • Provide engineering support to Texas Central, developers of the high-speed rail line, as the project moves ahead in its pre- construction phase, w
Slide 16: EMEIA
Q4 2019 & F2019 Results EMEIA • 2.1% organic growth in net revenues* • 13.6% segmented adjusted EBITDA margin • 10.6% pre-IFRS 16** Net revenues breakdown – Fiscal 2019 Environment 9% Property & Buildings 33% Industry 16 3% Power & Energy 7% Transportation & Infrastructure 47% *Non-IFRS measure. Thi
Slide 17: EMEIA – Major U.K. Win
Q4 2019 & F2019 Results EMEIA – MAJOR U.K. WIN • Network Rail announced the award of its multi-discipline and single-discipline regional framework contracts whereby engineering and professional services consultancy, WSP, has been successful across the board. • The framework, worth an estimated £400m
Slide 18: APAC
Q4 2019 & F2019 Results APAC • 9.3% organic growth in net revenues* • 15.5% segmented adjusted EBITDA margin • 11.6% pre-IFRS 16** Net revenues breakdown – Fiscal 2019 18 Transportation & Infrastructure 49% Property & Buildings Power & Energy 35% 3% Resources 4% Industry Environment 1% 8% *Non-IFRS
Slide 19: APAC – Major Australia Win
Q4 2019 & F2019 Results APAC – MAJOR AUSTRALIA WIN • Australia Sydney Water (P4S) : Partnering for Success • Maintaining the health of Sydney’s waterways including beaches, rivers and tributaries is becoming more challenging as the thriving city’s population continues to grow. 19 • Joint venture wil
Slide 20: Q4 2019 and F2019 Financial Performance
Q4 2019 and F2019 Financial Performance
Slide 21: Revenues and Net Revenues
Q4 2019 & F2019 Results REVENUES AND NET REVENUES* REVENUES NET REVENUES* +12.7% +14.4% 8 916.1 7 908.1 21 6 886.3 6 020.6 +8.1% +14.3% 2 209.3 2 043.9 1 760.7 2019 OUTLOOK 1 541.0 6.6B – 6.9B Q4 Fiscal Q4 Fiscal Numbers are quoted in million of dollars (except percentages). *Non-IFRS measure. This
Slide 22: A Decade of Organic Growth
Q4 2019 & F2019 Results A DECADE OF ORGANIC GROWTH ANNUAL ORGANIC GROWTH 6.2% 5.2% 4.9% 4.6% 3.5% 3.5% 3.2% 2.6% 22 1.6% 1.0% 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Since 2006 IPO, positive organic growth every year 2019 OUTLOOK 2 to 5 percent
Slide 23: Earnings Before Net Financing Expense and Income Taxes; Adjusted EBITDA and Margin
Q4 2019 & F2019 Results EARNINGS BEFORE NET FINANCING EXPENSE AND INCOME TAXES ADJUSTED EBITDA* ($) AND ADJUSTED EBITDA MARGIN* (%) EARNINGS BEFORE NET FINANCING EXPENSE ADJUSTED EBITDA* ** ($) AND ADJUSTED EBITDA MARGIN* ** (%) AND INCOME TAXES 22.5% +57.1% 487.8 1 036.8 398.1 23 660.0 (9.8)% 15.1%
Slide 24: Backlog
Q4 2019 & F2019 Results BACKLOG* 8 131.8 +5.9% vs Q4 2018 7 952.7 7 905.7 7 873.1 24 7 678.7 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Numbers are quoted in million of dollars. *Non-IFRS measure. This measure is defined in section 22, “Glossary of non-IFRS measures and segment reporting measures” and
Slide 25: Net Earnings Attributable to Shareholders and Adjusted Net Earnings
Q4 2019 & F2019 Results NET EARNINGS ATTRIBUTABLE TO SHAREHOLDERS AND NET EARNINGS ATTRIBUTABLE TO SHAREHOLDERS PER SHARE ADJUSTED NET EARNINGS* AND ADJUSTED NET EARINGS PER SHARE* NET EARNINGS ATTRIBUTABLE TO SHAREHOLDERS AND ADJUSTED NET EARNINGS* AND NET EARNINGS ATTRIBUTABLE TO SHAREHOLDERS PER
Slide 26: FCF: Long-Term Progression Through Seasonality
Q4 2019 & F2019 Results FCF* : LONG-TERM PROGRESSION THROUGH SEASONALITY 900.0 Free cash-flow (millions) TTM Cash-flow from operating activities (millions) TTM $814.3M 800.0 700.0 600.0 $441.6M 500.0 26 400.0 300.0 200.0 100.0 0.0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2015 2016
Slide 27: Financial Position: Net Debt / Adjusted EBITDA Ratio
Q4 2019 & F2019 Results FINANCIAL POSITION : NET DEBT / ADJUSTED EBITDA* RATIO (in millions of dollars) F2019 Long-term debt and other financial liabilities $1,399.7 Less: Cash ($255.6) Net debt* $1,144.1 27 Adjusted EBITDA* $1,036.8 Net debt/adjusted EBITDA ratio* 1.1x Net debt/pro forma adjusted E
Slide 28: Days Sales Outstanding (DSO)
Q4 2019 & F2019 Results DAYS SALES OUTSTANDING (DSO)* 80 80 78 28 76 74 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 2019 OUTLOOK 78 to 83 days *Non-IFRS measure. These measures are defined in section 22, “Glossary of non-IFRS measures and segment reporting measures” and reconciliations to IFRS measures
Slide 29: 2021 Ambitions
WS) 2021 Ambitions
Slide 30: 2021 Ambitions
Q4 2019 & F2019 Results 65,000 2021 Ambitions Employees $8B to $9B Net revenues* 6,000 10,000 Nordics >10% Canada 10,000 Annual net revenue* growth UK 5,000 (organic and acquisitions) Continental 15,000 Europe 30 United States 4,000 15% to 16% Adjusted EBITDA margin* Middle East & Africa 5,000 Asia
Slide 31: In Conclusion, the 2021 horizon and what success could look like
In Conclusion, the 2021 horizon and what success could look like WSP: Establishing an Offering The premier Enhancing our Maintaining our professional 31 industry increased reputation as a recognition as consultancy in benchmark for Strategic diversified and elite experts in our industry, our perform
Slide 32: Q&A
Q&A WS)
Slide 33: IFRS 16 – Leases Impact
WS) IFRS 16 - Leases Impact
Slide 34: Reconciliation IFRS 16 – Q4 2019
Q4 2019 & F2019 Results RECONCILIATION IFRS 16 – Q4 2019 Canada Americas EMEIA APAC Total Net Revenues* 273.8 $ 559.2 $ 642.3 $ 285.4 $ 1,760.7 $ Adjusted EBITDA by segment 55.6 $ 87.4 $ 90.7 $ 47.9 $ 281.6 $ Adjusted EBITDA margin by segment 20.3 % 15.6 % 14.1 % 16.8 % 16.0 % IFRS 16 Adjustment (10
Slide 35: Reconciliation IFRS 16 – F2019
Q4 2019 & F2019 Results RECONCILIATION IFRS 16 – F2019 Canada Americas EMEIA APAC Total Net Revenues* 1,066.7 $ 2,306.8 $ 2,399.9 $ 1,112.9 $ 6,886.3 $ Adjusted EBITDA by segment 207.0 $ 416.0 $ 326.8 $ 172.9 $ 1,122.7 $ Adjusted EBITDA margin by segment 19.4 % 18.0 % 13.6 % 15.5 % 16.3 % IFRS 16 Ad