Slide 1: August 2022 Investor Presentation
Bird Construction Inc. (TSX:BDT) August 2022 Investor Presentation 1
Slide 2: Disclaimer
Disclaimer This presentation contains forward-looking statements and information (“forward-looking statements”) within the meaning of applicable Canadian securities laws. The forward-looking statements contained in this presentation are based on the expectations, estimates and projections of managem
Slide 3: Disclaimer: Terminology and Non-GAAP Measures
Disclaimer TERMINOLOGY AND NON-GAAP & OTHER FINANCIAL MEASURES Throughout this presentation, management uses certain terminology and financial measures that do not have standard meanings under IFRS and are considered specified financial measures. These include non-GAAP financial measures, non-GAAP f
Slide 4: Disclaimer: Terminology and Non-GAAP Measures (continued)
Disclaimer TERMINOLOGY AND NON-GAAP & OTHER FINANCIAL MEASURES (continued) • “Current Ratio” is a supplementary financial measure representing the percentage derived by dividing total current assets by total current liabilities. • “General and Administrative expenses as a percentage of revenue” is a
Slide 5: At a glance
at a glance TSX: BDT $2.3B $96M $42M $43M $377M TTM REVENUE TTM ADJUSTED TTM ADJUSTED TTM NET MARKET EBITDA(1) EARNINGS(1) INCOME CAPITALIZATION(3) 2-YEAR SHARE PRICE HISTORY $2.9B $11 $10 BACKLOG(2) $10.58 $9 52-WEEK HIGH(3) $8 $7 $6 12% $6.88 52-WEEK LOW(3) $5 $4 2-YEAR TOTAL SHAREHOLDER $3 Aug 20
Slide 6: Over 100 Years Building Canada
OVER 100 YEARS BUILDING CANADA 1920 1930 1949 2007 2011 2012 2020 2021 BIRD, WOODALL, BIRD SECURES BIRD GOES PUBLIC BIRD ACQUIRES BIRD ACQUIRES BIRD ACQUIRES BIRD ACQUIRES BIRD ACQUIRES & SIMPSON FIRST $1M ON STOCK RIDEAU H.J. O’CONNELL NASON STUART OLSON DAGMAR FOUNDED CONTRACT EXCHANGE CONSTRUCTIO
Slide 7: Coast-to-coast solutions serving a broad scope of end-markets
Coast-to-coast solutions serving Comprehensive range of construction services from new construction for industrial, commercial, institutional, and a broad scope of end-markets. civil infrastructure markets; to industrial maintenance, repair and operations services, heavy civil construction, and mine
Slide 8: Full-suite of offerings generating diversified revenue streams
Full-suite of offerings generating Reflecting its broad scope, Bird's clients include leading firms in the energy, mining, commercial, institutional, retail, multi-tenant diversified revenue streams. residential, industrial, water and wastewater, renewables, nuclear, and civil sectors. Bird generate
Slide 9: Projects underway across Canada
Projects underway across Canada 13 1 2 3 4 14 5 6 7 8 9 10 11 12 1. Eric Hamber Secondary School, BC 2. York University Markham Centre Campus, ON 3. Stage 2 Confederation Line, ON 4. Nanaimo Correctional Centre, BC 5. Five Alberta Schools, AB 6. Major Oil and Gas Site, BC 7. University of Calgary Ma
Slide 10: Significant Portfolio of Master Service Agreements
Significant Portfolio of Master Service Agreements ~$800 Combined MSA Average Strong Recurring Million Contracts Value Contract Term Revenue Visibility 2,000+ Leveraging Electrical Expertise Personnel1 Geographically Full-Lifecycle Services Complete Lifecycle and Our ability to self-perform critical
Slide 11: Expanding our Power Experience Delivering Critical Energy Solutions
Expanding our Power Experience RENEWABLE POWER LOW CARBON ENERGY CARBON INNOVATION ENERGY EFFICIENCY • Wind • Hydrogen (Green and Blue) • Carbon capture • District heating and cooling • Solar • Nuclear/Small Modular • Carbon utilization • Cogeneration • Hydro Reactors • Carbon storage • Water reuse
Slide 12: Constructing a Strong Foundation
Constructing a Strong Foundation 12
Slide 13: Experienced Multidisciplinary Team
Experienced Multidiciplinary Team Leveraging our talented leadership team Deep bench strength and recruiting for the future Robust people programs supporting continuous learning and development Continuous improvement and innovation focus Committed to Diversity and Inclusion 13
Slide 14: Constructing a Strong Foundation
Constructing a Strong Foundation Created a Strong Key Near-Term Foundation Strategic Priorities Improved geographic and end market diversification Enhance cross-selling opportunities Increased recurring revenue Continue to improve margins Low to medium risk profile of backlog Maintain financial flex
Slide 15: Leveraging Innovation and Technology
Leveraging Innovation and Technology Building Information Modelling & Maintenance, Repair, Leveraging Innovative Smart Building Performance Virtual Design and Construction and Operation Management Solutions Technology Utilizing integrated multi- Multi-year maintenance and Leveraging a variety of too
Slide 16: Stack Modular
Stack Modular Turnkey solution bridging the gap between site and modular construction. Structural steel modular buildings up to 40-storeys for multi- family, hospitality, senior (long-term care) and student housing, and resource clients. Rapid Delivery Across Canada & The USA Opportunities Market Po
Slide 17: Mass Timber
Mass Timber Bird is a North American leader in wood construction with unmatched expertise, experience, and supply chain knowledge. >$1.37B >$243M Completed or Awarded or Under Construction Preconstruction >$2.6B Opportunities across Canada 17
Slide 18: Environmental Stewardship, Social, Governance
Environmental Stewardship • LEED certified projects and professionals >200 LEED Certified • First Zero Carbon Certification project in Canada Projects • Leader in Mass Timber – renewable and captures carbon 37 Mass Timber • Focus on future energy solutions projects completed or • Robust sustainable
Slide 19: Sustainability Overview
Sustainability Overview “ Bird’s long-term strategic vision is rooted in our belief that the construction industry plays an important BUILD GREEN role in providing sustainable, innovative, and lasting solutions for not only our clients, partners, and employees, but for the communities in which we li
Slide 20: 2021 Sustainability Highlights
2021 Sustainability Highlights (1) At December 31, 2021 (2) Includes endowment to Bird Construction/Paul and Geri Charette Endowment Fund 20 (3) Board composition as of May 2022 (4) Salaried and hourly throughout the year
Slide 21: Maintaining Profitable Growth
Maintaining Profitable Growth 21
Slide 22: Financial Highlights
Financial Highlights 22
Slide 23: Diversifying Risk - Revenue by Contract Type
Diversifying Risk - Revenue by Contract Type in millions of Canadian dollars $29 $15 $2 $12 • Public Private Partnership $59 $25 $49 $135 $102 $101 (PPP) Higher risk $177 $179 • Design-Build-Finance • Complex Design-Build $1,236 $560 $615 $943 $792 • Stipulated Sum $806 • Unit Price • Specified Desi
Slide 24: Sector Volume Diversification
Sector Volume Diversification Balanced work programs between 2021 commercial and institutional work, Balanced Sector Diversification while largely maintaining Industrial work to drive stronger growth. 100% 10 98 0. ..0% 0% 96 94 . 0% 0% 90% 92 90 ..0% 26% 24% 88 86 ..0% 0% 0% 34% 84 82 ..0% . 0% 80%
Slide 25: Significant Pipeline of Projects Executing on Strategic Pillars
Significant Pipeline of Projects Executing on Strategic Pillars TEAM PERFORM DIVERSIFY Recent Marquee Project Awards $125M Net-zero plant protein processing facility in Alberta, delivered through a progressive design-build contract $62M Dagmar, a wholly owned subsidiary of Bird, awarded contract rai
Slide 26: Backlog & Pending Backlog
Backlog & Pending Backlog 5000 in millions of Canadian dollars Backlog expected to 4500 57% convert into Revenue over the next 12 months 4000 1,625 1,717 1,807 1,788 3500 1,636 1,685 1,648 1,300 3000 2500 June 30, 2022 2000 575 • Strong quarter-end Backlog(1) of $2.9B 750 600 625 625 1500 500 3,003
Slide 27: 5-Year Revenue and Adjusted EBITDA Margin
5-Year Revenue and Adjusted EBITDA Margin 2,500 10% 2,177 2,251 9% $43M 2,271 Q2 2022 TTM 2,220 2,000 1,901 8% NET INCOME 1,627 TTM Revenue in CAD Millions ($M) 7% 1,504 1,500 1,419 1,382 1,376 6% 5.5% 5.9% 6.0% 5.5% 5% 4.2% 4.9% Q2 2022 TTM 1,000 4.7% 4% 4.2% 4.2%* ADJUSTED EBITDA MARGIN(1) 3% TTM
Slide 28: Revenue, Net Income, and Adjusted Earnings
Revenue, Net Income, and Adjusted Earnings REVENUE NET INCOME ADJUSTED EARNINGS(1) $60 $1.20 $2,500 $60 $1.20 $0.96 $50 $1.00 $0.92 $2,000 $50 $1.00 $0.80 $40 $0.80 $0.80 $40 $0.80 $1,500 $30 $0.60 $30 $0.60 $51 $1,000 $2,022 $20 $42 $0.40 $20 $43 $0.40 $1,504 $36 $0.22 $1,376 $0.22 $500 $10 $0.17 $
Slide 29: Strong Financial Position
Strong Financial Position Q2 2022 in millions of Canadian dollars June 30, 2022 26.7% 1.23 0.95x LONG-TERM LOANS & CURRENT ADJUSTED NET DEBT/ Accessible cash $3 BORROWINGS TO EQUITY(1) RATIO(1) TTM ADJUSTED EBITDA(1) Restricted cash $ 63 Syndicated Credit Facility Held in joint operations accounts $
Slide 30: Balanced Capital Allocation Priorities
Balanced Capital Allocation Priorities $25 Dividends In millions of Canadian Dollars $20 $15 Operating Cashflow(1) $10 $17 $18 $21 $5 $10 $10 $- 2019 2020 2021 2021 Q2 YTD 2022 Q2 YTD $120 $25 Capex $100 In millions of Canadian Dollars $20 in millions of Canadian Dollars $80 $15 $10 $60 $103 $13 $5
Slide 31: Acquisition Update: Stuart Olson and Dagmar Construction
Acquisition Update: Stuart Olson and Dagmar Construction Dagmar Acquisition Date Acquisition Date September 25, 2020 September 1, 2021 $96M Total Consideration Amount $32M Purchase Price(1) Realization of Cost Value and Synergies Savings Cross-selling Strong MRO Constructor Horizontal Infrastructure
Slide 32: Looking Ahead: Why invest in Bird
Looking Ahead Why invest in bird bird em TEAM PERFORM Focus On Margins Strong financial position with improving margin profile Favourable Outlook Solid balance sheet and pipeline of opportunities Strategic Priorities Balanced ESG Strategy OMS Y BUILD GREEN WORK GREEN CG DIVERSIFY \ Y C) LIVE GREEN S
Slide 33: Analyst Coverage
Analyst Coverage ATB CAPITAL CANACCORD | CIBC WORLD iA CAPITAL MARKETS INC. GENUITY MARKETS MARKETS Chris Murray Yuri Lynk Jacob Bout Naji Baydoun 416-520-0267 514.844.3708 416.956.6766 514.830.8077 cmurray@atb.com yuri.lynk@canaccordgenuity.com jacob.bout@cibc.com Naji.baydoun@iagto.ca NATIONAL BAN
Slide 34: Appendix
Appendix 34
Slide 35: Financial Highlights
Financial Highlights Q2 2022 HIGHLIGHTS Healthy Record Q2 2022 Revenues $576.7M REVENUE Continued realization of Revenue Growth cross-selling synergies $14.1M NET INCOME Strong Combined Strong Backlog(1) of $2.9B $21.5M ADJUSTED EBITDA (2) and Pending Backlog(1) of Backlog $1.8B $8.5M ADJUSTED EARNI
Slide 36: Financial Highlights
Financial Highlights YEAR-OVER-YEAR YEAR-OVER-YEAR Q2 2022 YTD 2022 CHANGE CHANGE No recoveries were recorded under CEWS in Q2 2022 vs. $8.9 million of No recoveries were recorded under CEWS in YTD 2022 vs. $20.1 million of recoveries recorded in Q2 2021 recoveries recorded in YTD 2021 Revenue $576.