Stantec Inc · TSX:STN
Stantec — Raymond James Institutional Investors Conference (March 2013)
34 slides from Stantec's conference presentation, Mar 4, 2013
Slide 1: Raymond James Institutional Investors Conference
Raymond James Institutional Investors Conference Orlando, FL
Slide 2: Caution Regarding Forward-Looking Statements
CAUTION REGARDING FORWARD-LOOKING STATEMENTS Our public communications will contain non-IFRS measures and written or verbal forward-looking statements, including a discussion of our goal and our growth strategies. We caution readers not to place undue reliance on our forward-looking statements since
Slide 3: Integrated Design & Solutions
INTEGRATED DESIGN & SOLUTIONS
Slide 4: Stantec Overview
STANTEC OVERVIEW
Slide 5: Focus on Top-Tier Positioning
FOCUS ON TOP-TIER POSITIONING Throgs Neck Bridge New York, NY
Slide 6: Stantec's vision is to be a top global design firm
Stantec’s vision is to a top 10 TOP global design firm Recognition for the quality of our work among firms in our industry Work on complex projects for long-term clients Attract and retain talented, innovative employees
Slide 7: Global Expertise. Local Strength.
Over 12,500 staff Over 200 locations GLOBAL EXPERTISE. LOCAL STRENGTH.
Slide 8: Positioning: TSX + NYSE
>» POSITIONING TSX+NYSE
Slide 9: Focus on Performance
FOCUS ON PERFORMANCE Figures for 2008, 2009, 2011 and 2012 are pre goodwill impairment. All figures prior to 2010 are not Woman’s Hospital restated for compliance with IFRS but are reported under Canadian GAAP effective in the year concerned. See the 2012 Financial Review for full disclosures, inclu
Slide 10: Revenue
REVENUE Millions (C$) 16% $1.9 CAGR – 10 years Billion
Slide 11: Net Income
NET INCOME Millions (C$) 20% $121 CAGR – 10 years Million Note: Figures are pre impairment
Slide 12: Diluted EPS
DILUTED EPS (C$) 17% $2.64 CAGR – 10 years Note: Figures are pre impairment
Slide 13: Cash Flow
CASH FLOW Millions (C$) $149 Million Free cash flow
Slide 14: Gross Revenue Backlog
GROSS REVENUE BACKLOG Millions (C$) and Months (Trailing) 16% $1.3 8.1 CAGR – 10 years Billion 8.0 8.3 8.9 7.5 10.4 10.1 11.4 8.8 8.1 Note: Backlog is calculated using fully funded open work orders.
Slide 15: Focus on Execution
FOCUS ON EXECUTION Commonwealth Stadium Edmonton, AB
Slide 16: Business Model
BUSINESS MODEL 34% 58% 21% 11% 38% 22% 4% 12% 2012 Gross Revenue
Slide 17: Practice Areas
PRACTICE AREAS Environment Industrial Urban Land Buildings Transportation Company Gross Revenue $635M $388M $214M $417M $229M $1.9B Q1 12 GR (34%) (21%) (11%) (22%) (12%) 2012 Approximate Market Size* $17B $28B $3B** $18B $17B $83B Urban Commercial Oil & Gas Top Sectors Water Oil & Gas Roadways Deve
Slide 18: Focusing on Sectors
FOCUSING ON SECTORS Approximate Q4 12 Revenue Breakdown
Slide 19: Oil & Gas
OIL & GAS • Top provider of environmental services in Canada • Engineering and construction management services • Full suite of services on pipeline and related projects • Strongest outlooks in upstream and midstream • Strategy is to expand presence in US, leverage services to clients IPF Polaris Pi
Slide 20: Urban Development
URBAN DEVELOPMENT • Leader in subdivision and land development services across N.A. • Diversified client mix ~ 80% for private sector, ~ 20% public • Residential markets strong in Canada West, improving in US (mixed strengthening) • Strategy to grow the depth/breadth of our services - positioned for
Slide 21: Water
WATER • # 9 on 2012 ENR Global Design Firm list for sewer/waste; # 10 for water supply • Work across sectors (mining, oil & gas, dams & levees, roads, urban development) • Clients are both public (provinces/states, municipalities, federal) and private • Strong long-term outlook due to infrastructure
Slide 22: Roadways
ROADWAYS • Full engineering and design services for roadways, bridge inspections, bankable traffic studies • Primarily state/provincial and municipal clients • Two thirds of revenue generated in US • Strong partner for alternate project delivery (APD) an evolving market in the US • Recent acquisitio
Slide 23: Power & Energy
POWER & ENERGY • Transmission & distribution, renewables and emissions/refurbishments with both engineering and environmental related services • Regulatory drivers for this sector (i.e. emissions) • Focus on expanding capabilities in key geographic areas Olinda Landfill Gas to Energy Project Olinda,
Slide 24: Mining
MINING • Globally recognized designer of hoist & shaft systems in deep underground mines • Designed the world’s tallest steel/concrete shaft head frames • Strategy - diversify by commodity and geography to mitigate cyclical impacts BHP Ekati Mine Yellowknife ,NWT
Slide 25: Commercial
COMMERCIAL • Focus in N.A. on 3 Subsectors: retailers, commercial development, workplace • Coast to coast positioning to support US retailers in their move to Canada • Three quarters of work in Canada, one quarter US • Strategy to build expertise/ strengthening our capabilities in key, active market
Slide 26: Healthcare
HEALTHCARE • Top 3 in N.A. healthcare design, recognized internationally • Strategic and program planning services to large US healthcare providers • Well positioned in Canadian P3 market through which health infrastructure funded • Expect gradual improvement going forward Al Mafraq Dialysis Hospita
Slide 27: Growth: The Result of Executing Our Strategy
GROWTH THE RESULT OF EXECUTING OUR STRATEGY Peace Bridge Calgary, AB
Slide 28: Growth
GROWTH Revenue growth of 15% per year Combination of organic and acquisition revenue growth 2013 organic revenue growth of 3 - 4 %
Slide 29: Acquisition Growth
» ACQUISITION GROWTH jo) T © I & a T Number of Acquisitions 3 | U il [. | a SS a SS SS SO RS ES SE 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 O09 10 11 12 Acquisitions HB Revenue SURVEY ‘5 15 i o GREENHORNE & O'MARA G ) GN Ab Z(ABMB cc PHBCROW Va a f Lives. © Cimarron GS aschifecturg os vic’ 2
Slide 30: Market Presence: Current
>» MARKET PRESENCE CURRENT
Slide 31: Market Presence: Mid Term
>» MARKET PRESENCE MID TERM
Slide 32: Market Presence: Long Term
>» MARKET PRESENCE LONG TERM
Slide 33: Key Takeaways
KEY TAKEAWAYS Execute strategy to achieve top tier positioning and expand our business Operate efficiently leading to strong profitability Maintain a strong balance sheet Dividend implemented in 2012 and increased 10% in 2013 Create long term value for shareholders
Slide 34: Thank you
Thank you
Stantec — Raymond James Institutional Investors Conference (March 2013) on 6ix