Slide 1: Building Things That Matter
Building Things That Matter March 29, 2011
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. uncertainties In
Slide 3: Capital Market Metrics and Company Statistics
Capital Market Metrics and Company Statistics Revenue * $2.7 billion One-Year Share Price Performance Backlog * $2.4 billion Market Capitalization $544 million 52 Week Range $7.95 - $14.05 Shares Outstanding * 56.9 million Avg. Daily Volume (3 months) 483,216 Updated 3-29-2011 Quarterly Dividend $0.
Slide 4: Building Strength For Over 130 Years
Building Strength For Over 130 Years 2
Slide 5: Aecon: Scale, Growth & Diversification
Aecon: Scale, Growth & Diversification S l A Leader Scale: L d ini our chosen h markets k t • Top Three Contractors in Canada (largest publicly traded) and ranked as one of Canada’s best employers • Among Canada’s leaders in: - Civil construction / Mining - Industrial construction - Mechanical / Bui
Slide 6: Aecon: Scale, Growth & Diversification
Aecon: Scale, Growth & Diversification 2010 Revenue by Geography Western Canada 43% Ontario 42% Quebec & Eastern Canada 10% 2010 Revenue by Sector International Transport'n 5% 28% Social 21% Oil Sands One Aecon: 20% Utilities Diverse capabilities – One integrated solution 8% Other Energy Other 12% 1
Slide 7: Revenues & EBITDA
5 Year Revenues & EBITDA ($ millions) 3,000 140 2,746 125 117 120 2,500 2,261 102 100 2,000 1,877 77 EVENUES 80 1,493 EBITDA 1,500 60 RE 1 120 1,120 1 113 1,113 E 1,000 34 40 500 15 20 0 0 2005 2006 2007 2008 2009 2010 5
Slide 8: Transportation & Social Infrastructure: Accelerated Investment
Transportation & Social Infrastructure: Accelerated Investment Aging civil infrastructure across Canada ‘Infrastructure Infrastructure deficit’ deficit more than $100 billion 80% is past its prime/ life expectancy G Government t commitment it t to t infrastructure i f t t renewall Strong polit
Slide 9: Power Generation in Ontario: Poised For Significant Growth
Power Generation in Ontario: Poised For Significant g Growth ($ Billions) Biomass Hydro $4 $5 Wind Conservation $14 $12 Transmission Solar $9 $9 Gas, $2 Nuclear $33 $ … and billions more across Canada Data is an approximation based on Ontario Government’s Long Term Energy Plan, November, 2010 7
Slide 10: Oil Sands: Powerful Growth
Oils Sands: Powerful Growth Oil sands production projected to increase by over 90% in the next 10 years In 10 years, 25% of oils sands production will come from units not yet under construction Canadian Oil Production 4,500 Tot: 4,336 4,000 Tot: 3,882 Barrrels per day (thousands) Tot: 3,294 1,36
Slide 11: Utilities & Water/Wastewater: A Bright Future
Utilities & Water/Wastewater: A Bright Future Utilities Water/Wastewater Stable, ongoing relationships Municipal underfunding has created significant demand across Canada Increasingly conducted through supplier- of-choice arrangements Successful alliance in Western Canada with EPCOR / Stante
Slide 12: Reporting Segments
Reporting Segments $ at Dec 31, 2010 (millions) Infrastructure Buildings Industrial Concessions Revenue $1,094 $539 $1,044 $91 Op. Profit $61 $(12) $(18) $59 Backlog Revenue $1,080 $574 $871 n/a Capabilities ■ Heavy Civil Construction ■ Construction Management ■ Industrial Construction ■ Domestic an
Slide 13: Considerable Financial Flexibility
Considerable Financial Flexibility ($ millions) Dec 31, 2010 Dec 31, 2009 Consolidated Consolidated Cash (including restricted cash & marketable securities, net of bank indebtedness) 309 414 Total Assets 2,091 1,689 Shareholders Equity 468 457 Non-recourse project debt 316 287 Long term recourse deb
Slide 14: Strong Q4 Backlog
Strong Q4 Backlog Backlog Revenue: $2.5 billion Backlog Duration $ million @ Dec. 31, (millions) Industrial Buildings Infrastructure $3,000 > 24 Months $456 $2,500 $260 12 - 24 $513 Months $2,000 $503 $1,500 <12 Months $1,000 $1 4 $1.4 $1.5 billion billion $500 $0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Slide 15: Large Lump-sum (or similar) Jobs in Backlog
Large Lump-sum (or similar) Jobs in Backlog Project Size ($mm) % Complete C l (Feb 28/11) Infrastructure Quito Airport 200 + 80% Highway A30, Quebec 200 + 40% Waneta Dam 150 ‐ 200 7% TTC Subway Extension 200 ‐ 250 3% Hwyy 69,, Ontario 50 ‐ 100 70% Capilano Tunnel 50 ‐ 100 55% Highway 63, Alberta 50
Slide 16: ARE Share Price vs. Backlog
ARE Share Price vs. Backlog ARE Share Price Backlog $25 $3,000 $2,500 $20 $2,000 $15 $1,500 $10 $1,000 , $5 $500 $0 $0 December 05 December‐05 December 06 December‐06 December 07 December‐07 December 08 December‐08 December 09 December‐09 December 10 December‐10 14
Slide 17: 2011 Strategic Priority – Drive Margins
2011 Strategic Priority – Drive Margins 1 Focus on execution ■ Operational excellence ■ Performance improvement 2 Focus on risk management ■ Target jobs where risk is well understood and mitigated ■ Ongoing focus on risk management practices and project audits 3 A client and sector orientation … one
Slide 18: In Summary
In Summary . . . An industry leader in a growing sector of the Canadian economy Well diversified operations by region, customer and sector Significant management, board and employee holdings Member of S&P/TSX Composite Index with good trading liquidity Strong financial fundamentals 16
Slide 19: Building Things That Matter
Building Things That Matter