Quanta Services, Inc. · NYSE:PWR

Quanta Services — Investor Day (2012)

119 slides from Quanta Services's investor day presentation, 2012

1. Slide 1: Investor Day – Strategy Discussion

   Investor Day – Strategy Discussion Jim O’Neil President & Chief Executive Officer

2. Slide 2: Forward Looking Statement Disclaimer

   Forward Looking Statement Disclaimer  This presentation (and oral statements regarding the subjects of this presentation) includes forward- looking statements intended to qualify under the “safe harbor” from liability established by the Private Securities Litigation Reform Act of 1995. These forwar

3. Slide 3: Presentation Agenda

   Presentation Agenda  Key Takeaways  Company Overview  Strategies for Differentiation and Growth  Summary  Q&A  Appendix 3

4. Slide 4: Key Takeaways

   Key Takeaways  North America is in the early stages of a multiyear infrastructure investment cycle, particularly for electric and pipeline infrastructure  End-market trends and record backlog provide Quanta with improved near- and long-term growth opportunities  Quanta is experiencing momentum ac

5. Slide 5: Company Overview

   Company Overview Today, Quanta Services …  Is the leading specialty contractor providing comprehensive infrastructure solutions to the electric and gas utility, pipeline and telecommunications industries  Has scope and scale in its core businesses with deep customer relationships  Is the preferre

6. Slide 6: Diverse Revenue Composition is a Strength

   Company Overview Diverse Revenue Composition is a Strength Estimated Revenue by Contract Type Consolidated Revenue = $4.6 Billion Cost Plus Fixed 20% Price 40% Revenue by Type of Work* Natural Gas & Pipeline 22% Unit Price 40% Estimated Revenue by Project Type Electric Power Telecom. Maint. Engine 1

7. Slide 7: Blue Chip Customer Base & Low Customer Concentration

   Company Overview Blue Chip Customer Base & Low Customer Concentration  No single customer accounted for more than 10% of revenues for the full year of 2011  The 10 largest customers accounted for approximately 36% of revenues in 2011  Strong relationships with the majority of U.S. investor- owned

8. Slide 8: Local Service, Extensive Reach

   Company Overview Local Service, Extensive Reach  Strategic locations throughout the United States, Canada and in select international markets positions Quanta to respond quickly to customer needs Service Territory Headquarters Offices 8

9. Slide 9: Experienced Management

   Company Overview Experienced Management Years Experience John Colson 40 Executive Chairman 40 Jim O’Neil 32 President & Chief Executive Officer 32 James Haddox 40 Chief Financial Officer 40 Ken Trawick 37 37 President, Telecommunications & Power Generation Divisions Duke Austin 22 22 President, Elec

10. Slide 10: Challenges Subsiding – Momentum Building

    Company Overview Challenges Subsiding – Momentum Building 2011 – Transition to Growth 2012 – Why We Are Excited  Big-pipeline market challenged  Record backlog  Electric distribution gradually  10+ large electric transmission improves projects in construction  Record electric transmission  Rob

11. Slide 11: Why We Are In the Pipeline Business

    Company Overview Why We Are In the Pipeline Business Drivers for Pipeline Infrastructure Development Natural Gas Oil & Natural Gas Liquids (NGLs)  Shales have increased domestic natural  Pipeline development for oil and NGLs gas supply to more than 100 years at is active current usage rates  Curr

12. Slide 12: Why We Are In the Pipeline Business

    Company Overview Why We Are In the Pipeline Business Natural Gas & Pipeline: Natural Gas & Pipeline: As Reported Pro Forma with Pipeline Acquisitions ($ in millions) ($ in millions) $1,403 $2,275 $2,052 $1,025 $880 $1,418 $785 8.5% 13.6% 14.5% $1,042 8.7% 8.0% $453 8.6% 4.4% -4.5% -4.2% 2007 2008 20

13. Slide 13: Understanding the Long-Haul Pipeline Business

    Company Overview Understanding the Long-Haul Pipeline Business Revenue Backlog 3Q Q 4Q Q 1Q 2 2Q Q 3Q Q 4Q Q 4Q Typical Bidding Season Bidding Season Begins Again Bidding Season & Backlog Project & Revenue Ramp  Bidding season for long haul work starts  With the exception of Canada, generally not

14. Slide 14: Understanding the Long-Haul Pipeline Business

    Company Overview Understanding the Long-Haul Pipeline Business  Increased revenue contribution from shale gathering system, pipeline integrity and gas distribution projects should provide diversity to mitigate some of the cyclicality of the long- haul business  These efforts provide steady growth

15. Slide 15: Strategies for Differentiation & Growth

    Strategies for Differentiation & Growth

16. Slide 16: Key Differentiators Support Our Growth Strategies

    Strategies for Differentiation & Growth Key Differentiators Support Our Growth Strategies  Safety Record – Industry leading and a core value  Industry Diversity – Allows Quanta to capitalize on multiple growth opportunities  Technology – Energized services, automatic welding, Q-Trench Solution, i

17. Slide 17: Initiatives to Grow the Business Over the Next Five Years

    Strategies for Differentiation & Growth Initiatives to Grow the Business Over the Next Five Years  Leverage existing leadership position in core services to expand in current markets and penetrate new ones Acquisitions have played a significant role in our strategic growth and will continue to do s

18. Slide 18: Initiatives to Grow the Business Over the Next Five Years

    Strategies for Differentiation & Growth Initiatives to Grow the Business Over the Next Five Years  Leverage existing leadership position in core services to expand in current markets and penetrate new ones  Acquisition of several leading T&D  Become market leader in Canadian T&D Electric contract

19. Slide 19: Initiatives to Grow the Business Over the Next Five Years

    Strategies for Differentiation & Growth Initiatives to Grow the Business Over the Next Five Years  Create additional platforms to continue profitable growth for the long- term International Opportunity  Significant infrastructure needs and development opportunities  Many emerging market countries

20. Slide 20: Initiatives to Grow the Business Over the Next Five Years

    Strategies for Differentiation & Growth Initiatives to Grow the Business Over the Next Five Years  Establish programs to continuously improve safety and operational performance standards and results OSHA Frequency Rates by Calendar Year  Customers are As of 12/31/11 increasingly focused on safety

21. Slide 21: Summary

    Summary Well Positioned for Profitable Growth  The vision for creating Quanta is being realized and the inflection point to a multiyear growth cycle is here  Quanta is pursuing a multi-pronged strategy to differentiate it from specialty contractor and E&C peers  Quanta is executing on a comprehen

22. Slide 22: Questions

    Questions QUANTA SERVICES

23. Slide 23: Reconciliation of Pre-Acquisition Natural Gas & Pipeline Segment Combined Operating Margin

    Appendix Reconciliation of Pre-Acquisition Natural Gas & Pipeline Segment Combined Operating Margin ($ in thousands) Years Ended December 31, 2008 2009 2010 2011 Calculation of NG&P Pro Forma Combined Operating Margins Revenues - As Reported $ 879,541 $ 784,657 $ 1,403,250 $ 1,024,833 Pre-Acquisitio

24. Slide 24: Investor Day – Electric Power

    Investor Day – Electric Power Duke Austin President

25. Slide 25: Forward Looking Statement Disclaimer

    Forward Looking Statement Disclaimer  This presentation (and oral statements regarding the subjects of this presentation) includes forward- looking statements intended to qualify under the “safe harbor” from liability established by the Private Securities Litigation Reform Act of 1995. These forwar

26. Slide 26: Presentation Agenda

    Presentation Agenda  Key Takeaways  Overview  Transmission  Energized Services  NERC Reliability Requirements  Distribution and Smart Grid  Substations  Capitalizing on T&D Opportunity  Managing Resources for Growth  Summary  Q&A 3

27. Slide 27: Key Takeaways

    Key Takeaways  The North American electric grid requires significant investment due to many decades of underinvestment, growing electricity demand and changing needs  Utilities are significantly increasing their transmission capital investment and we believe we’re in the early stages of a multiyea

28. Slide 28: Electric Power Overview

    Electric Power Overview Unmatched Resources & Expertise Transmission Distribution Energized Services Electric Power Segment $3,030 $2,302 $2,068 $2,048 10.8% 10.9% 10.1% 10.9% Primary Markets 2008 2009 2010 2011 Revenue Op. Margin Substations Emergency Restoration 2011 Estimated Revenue by Type of W

29. Slide 29: Transmission & Distribution Growth Drivers

    Electric Power Overview Transmission & Distribution (T&D) Growth Drivers  The North American electric grid requires significant investment due to many decades of underinvestment, growing demand and changing needs – More than 30% of infrastructure is beyond it’s useful life; another 30% is approachi

30. Slide 30: Electric Transmission Projects Increasing in Number & Size

    Electric Power Electric Transmission Projects Increasing in Number & Size  Transmission spending is increasing 2x-3x historical levels  Expect solid growth for at least the next three to five years Select U.S. Utility Transmission Historical & Projected Transmission Investment Spending Plans by In

31. Slide 31: Canada - Significant T&D Growth Opportunities

    Electric Power Canada - Significant T&D Growth Opportunities  Canada is a strategic market for Quanta. Have enhanced Canadian presence and capabilities through acquisitions – Completed five Canadian acquisitions  Canadian utilities conservatively estimate to spend more than $36 billion in transmis

32. Slide 32: Approximately 260,000 Miles of Transmission in Planning

    Electric Power Approximately 260,000 miles of Transmission in Planning Source: Platts 9

33. Slide 33: The Opportunity is More Than Large Transmission

    Electric Power The Opportunity is More Than Large Transmission  Large transmission gets most of the attention, but there is a lot more going on  Lower voltage transmission and smaller transmission project market growing strongly  Distribution spending gradually returning  North American Electric

34. Slide 34: Industry Leading Energized Services Is Differentiator

    Electric Power Industry Leading Energized Services Is Differentiator  Quanta is the clear industry leader in all energized work methods and live line techniques  Quanta Energized Services allows utilities to maintain, construct and upgrade substation, transmission and distribution facilities at an

35. Slide 35: NERC Reliability Requirements Create Opportunity

    Electric Power NERC Reliability Requirements Create Opportunity  Existing transmission infrastructure being upgraded, rebuilt or replaced  Believe meaningful amount of work will need to be done with lines in an energized state – Quanta leads the industry in energized services NERC Requirements Dri

36. Slide 36: Distribution is a Core Business with Opportunity

    Electric Power Distribution is a Core Business with Opportunity  Utilities curtailed distribution investment for nearly three years through recession, but maintenance spending is gradually recovering – Reliability issues increasing – Severe weather damage impacts reliability of distribution systems

37. Slide 37: Substations a Growing Opportunity in North America

    Electric Power Substations a Growing Opportunity in North America Growth Drivers Quanta Substation Solutions  Transmission development  EPC or a la carte flexibility – New builds require new substations and/or interconnect to  Design, engineering, existing substations – Reliability projects leadi

38. Slide 38: Capitalizing on T&D Opportunity – Exceeding Expectations

    Electric Power Capitalizing on T&D Opportunity – Exceeding Expectations Quanta Large Transmission Project Awards  AEP (Line Rebuild)  Central Maine Power  BC Hydro - NTL  Devers-Palo Verde 2  CREZ:  Hydro ONE – ETT  National Grid – LCRA  Northeast Utilities – Lonestar  Sunrise Powerlink – S

39. Slide 39: Managing Resources for Growth

    Electric Power Managing Resources for Growth Quanta has the resources it needs to safely execute on backlog and to continue to pursue, win and safely execute on future projects Labor  Industry is at capacity for skilled labor  Recruiting, training and maintaining people is critical  Quanta is the

40. Slide 40: Electric Power Summary

    Electric Power Summary Correctly Positioned, Focused on Execution Strong Backlog Provides Visibility  Significant transmission and ($ in millions – as of Dec. 31) $4,960 distribution investment is expected in $4,473 the U.S. and Canada for many years $3,855  Quanta’s scale, scope, unmatched $2,366

41. Slide 41: Questions

    Questions QUANTA SERVICES

42. Slide 42: Investor Day – Power Generation

    Investor Day – Power Generation Ken Trawick President

43. Slide 43: Forward Looking Statement Disclaimer

    Forward Looking Statement Disclaimer  This presentation (and oral statements regarding the subjects of this presentation) includes forward- looking statements intended to qualify under the “safe harbor” from liability established by the Private Securities Litigation Reform Act of 1995. These forwar

44. Slide 44: Presentation Agenda

    Presentation Agenda  Key Takeaways  Overview  Opportunity and Growth Drivers  Differentiators  Summary  Q&A 3

45. Slide 45: Key Takeaways

    Key Takeaways  Quanta Power Generation (QPG) is well positioned to capitalize on engineering, procurement and construction (EPC) opportunities in the renewables and fossil fuel generation industries  Quanta’s ability to leverage its leading construction capabilities for EPC projects is a different

46. Slide 46: Overview - Leading Power Generation EPC Services Provider

    Quanta Power Generation Overview - Leading Power Generation EPC Services Provider Quanta Power Generation leverages the power of North America’s leading specialty contractor to provide EPC capabilities to the renewable energy and fossil fuel generation industries:  Solar – Approximately 240DC MW of

47. Slide 47: Opportunity & Growth Drivers

    Quanta Power Generation Opportunity & Growth Drivers Renewable Generation Drivers Quanta’s Approach  Renewable Portfolio Standards (RPS)  Greenfield development – States with most aggressive RPS tend to be  Initial focus on EPC solar, biomass and geothermal solar-rich areas  Leverage differentia

48. Slide 48: Self Perform Construction Capabilities is Key Differentiator

    Quanta Power Generation Self Perform Construction Capabilities is Key Differentiator Through estimating and technology evaluation, site Project 1 Development selection consulting, scope definition, PPA bid support, Quanta is focused on creating successful Support projects System modeling, technology

49. Slide 49: Leading Solar EPC Services Provider

    Quanta Power Generation Leading Solar EPC Services Provider Over 185 MWAC Utility-Scale Solar Projects Completed or Under Construction 8

50. Slide 50: Strategies & Goals In Place to Address Industry Challenges

    Quanta Power Generation Strategies & Goals In Place to Address Industry Challenges Challenges Strategies & Goals In Place to Address Uncertainties regarding federal  Investment Tax Credit (ITC) in place through 12/31/16 subsidies and incentives  Renewable Portfolio Standards ultimately drives sola

51. Slide 51: Target Markets with Niche Focus

    Quanta Power Generation Target Markets with Niche Focus  Focus is on smaller generation projects where our unique approach is a competitive differentiator EPC Generation Target Markets Existing EPC Target Markets New EPC Target Markets  Utility scale solar PV  Biodiesel  Simple cycle gas turbine

52. Slide 52: Quanta Power Generation - Summary

    Quanta Power Generation - Summary Well Positioned for EPC Renewable & Fossil Generation  There are strong industry trends driving development of new renewable and fossil fuel generation facilities, particularly for solar and natural gas  Quanta’s success and track record in EPC solar positions the

53. Slide 53: Questions

    . QUANTA Questions © SERVICES

54. Slide 54: Investor Day – Natural Gas & Pipeline

    Investor Day – Natural Gas & Pipeline Duke Austin President

55. Slide 55: Forward Looking Statement Disclaimer

    Forward Looking Statement Disclaimer  This presentation (and oral statements regarding the subjects of this presentation) includes forward- looking statements intended to qualify under the “safe harbor” from liability established by the Private Securities Litigation Reform Act of 1995. These forwar

56. Slide 56: Presentation Agenda

    Presentation Agenda  Key Takeaways  Overview  Drivers  Differentiation  Understanding the Long-Haul Business  Pipeline Integrity Drivers  Strategy to Diversify, Improve Visibility and Grow  Summary  Q&A 3

57. Slide 57: Key Takeaways

    Key Takeaways  Unconventional shales and Canadian oil sands are energy resource game changers in North America and require significant development of pipeline infrastructure  Quanta’s leadership positioning and comprehensive service offering positions it well to capitalize on near- and long-term o

58. Slide 58: Natural Gas & Pipeline Overview

    Natural Gas & Pipeline Overview Leading Market Position, Comprehensive Solutions Natural Gas & Oil Pipeline Pipeline Integrity Natural Gas & Pipeline Segment ($ in millions) $1,403 $1,025 $880 $785 8.7% 8.0% 8.5% Primary Markets -4.5% Compressor, Metering & 2008 2009* 2010 2011** Pumping Stations Na

59. Slide 59: Unconventional Shales – Significant Infrastructure Needs

    Natural Gas & Pipeline - Drivers Unconventional Shales – Significant Infrastructure Needs  Shale resources for development for oil, natural gas and natural gas liquids (NGLs) are a game changer for the United States – Went from 30 years natural gas supply to +100 years – Opportunity for energy inde

60. Slide 60: Unconventional Shales – Strong Activity in Wet Shales

    Natural Gas & Pipeline - Drivers Unconventional Shales – Strong Activity in Wet Shales  Due to low natural gas prices and attractive liquids prices, producers are aggressively shifting capex and production to oil and natural gas liquids  Liquid rich, or “wet” shales are currently the most active w

61. Slide 61: Unconventional Shales – Lack of Pipelines is a Bottleneck

    Natural Gas & Pipeline - Drivers Unconventional Shales – Lack of Pipelines is a Bottleneck  Attractive prices and demand for oil and NGLs driving rapid domestic production growth  Pipeline gathering and takeaway infrastructure is not anticipated to keep pace with production in wet shales – Truckin

62. Slide 62: Unconventional Shales – Pipeline Spending to Increase

    Natural Gas & Pipeline - Drivers Unconventional Shales – Pipeline Spending to Increase  Estimates call for gathering system and long-haul pipeline spending to increase in wet shales to address takeaway bottlenecks  Quanta has established offices in the Bakken, Eagle Ford, Marcellus and Permian Est

63. Slide 63: Canadian Oil Sands – Significant Infrastructure Needs

    Natural Gas & Pipeline - Drivers Canadian Oil Sands – Significant Infrastructure Needs Select Alberta Oriented Product Pipelines  Oil pipeline infrastructure required across Canada for oil sands product transport  Pipelines will be built to Canadian west cost for oil export  Pipelines will be bui

64. Slide 64: Well Positioned to Capitalize on Pipeline Opportunities

    Natural Gas & Pipeline - Differentiation Well Positioned to Capitalize on Pipeline Opportunities Long-Haul Transmission Pipeline Gathering Pipeline & Facilities  Largest player in North America with nine  Local presence in the active liquid rich shales “spreads” of capability  Leverage leadership

65. Slide 65: Understanding the Long-Haul Pipeline Business

    Natural Gas & Pipeline Understanding the Long-Haul Pipeline Business  The long haul pipeline business has some characteristics that are different from other parts of Quanta’s operations  Investors may have trouble understanding some of the industry and operational nuances Favorable Characteristics

66. Slide 66: Revenue Recognition

    Natural Gas & Pipeline Understanding the Long-Haul Pipeline Business Generic Example of Project Stages & Revenue Recognition Pattern of a Long Haul Pipeline Project Revenue Recognition Install of valves, etc. Pipe Installation Trenching Pipe/Trench Covering R.O.W. Acquisition & Route Clearing Permit

67. Slide 67: Sample Pipeline Project List

    Natural Gas & Pipeline Understanding the Long-Haul Pipeline Business Sample Pipeline Project List Pipeline Projects Greater Than 100 miles Estimated Construction Start in 2012 or 2013 Company Project Description Est. in Service Energy Transfer 475 miles of 16” 2012 Energy Transfer 100 miles of 20” -

68. Slide 68: Pipeline Testing, Repair & Replacement Significant Growth Opportunity

    Natural Gas & Pipeline - Drivers Pipeline Testing, Repair & Replacement Significant Growth Opportunity “With a majority of these pipeline companies on the cusp of implementing robust plans to upgrade their systems, bottlenecks in inspection services, metering, testing, and commissioning will tighten

69. Slide 69: Pipeline Testing, Repair & Replacement Significant Growth Opportunity

    Natural Gas & Pipeline - Drivers Pipeline Testing, Repair & Replacement Significant Growth Opportunity Effects of Regulatory Policy Changes on Industry Spend* Short- Mid- Long- Services & Items Before Term Term Term Explanation Inspection Historic spend on inspection flat. With new Regulation Servic

70. Slide 70: Strategy to Diversify, Improve Visibility & Grow

    Natural Gas & Pipeline Strategy to Diversify, Improve Visibility & Grow  The long-haul pipeline business is a good business with a great deal of opportunity, but Quanta believes there are things it can do to enhance revenue diversity of the segment  Moved into the shales in 2011 to pursue smaller

71. Slide 71: Natural Gas & Pipeline Summary

    Natural Gas & Pipeline Summary Strong Drivers, Comprehensive Solutions for Growth  Unconventional shales and Canadian oil  Certain aspects of the long haul sands are energy resource game pipeline business are challenging, but changers in North America and require Quanta believes it will provide si

72. Slide 72: Questions

    Questions QUANTA SERVICES

73. Slide 73: Investor Day – Telecom & Fiber Optic Licensing

    Investor Day – Telecom & Fiber Optic Licensing Ken Trawick President

74. Slide 74: Forward Looking Statement Disclaimer

    Forward Looking Statement Disclaimer  This presentation (and oral statements regarding the subjects of this presentation) includes forward- looking statements intended to qualify under the “safe harbor” from liability established by the Private Securities Litigation Reform Act of 1995. These forwar

75. Slide 75: Presentation Agenda

    Presentation Agenda  Key Takeaways  Overview  Telecom Growth Drivers  Fiber Optic Licensing – PennREN Project Case Study  Summary  Q&A 3

76. Slide 76: Key Takeaways

    Key Takeaways  Consumer and enterprise demand for and use of data intensive services and applications is driving development of wireline and wireless broadband infrastructure investment  Quanta is experiencing an increase in demand for its telecom infrastructure services that it believes will sust

77. Slide 77: Telecom Overview

    Telecom Overview Comprehensive Solutions  Leading telecom and broadband Telecom Segment $537 ($ in millions) infrastructure solutions provider serving $457 customers throughout North America 7.8% $378 $373 – Particular strength in West Coast, 8.0% 6.7% Southwest, Mid-west and Southeast 4.0%  Desig

78. Slide 78: Telecom Growth Drivers

    Telecom Growth Drivers Primary Drivers for Quanta  American Recovery and Strong Telecom Backlog Growth Reinvestment Act (ARRA) ($ in millions – at Dec. 31) $530 Broadband Stimulus projects $415  Fiber to the Cell Site Backhaul $336 Initiatives $285 $223 $229  Wireless Network Optimization, 4G and

79. Slide 79: ARRA Broadband Stimulus Projects Ramping-Up

    Telecom Growth Drivers ARRA Broadband Stimulus Projects Ramping-Up  ARRA Broadband Stimulus projects represent the most significant growth opportunity over next couple years – $7.2 billion in federal funding – Aimed at providing broadband connectivity to under and unserved rural areas and to benefi

80. Slide 80: Fiber to the Cell Site Backhaul Growth Opportunity

    Telecom Growth Drivers Fiber to the Cell Site Backhaul Growth Opportunity  Explosion in wireless data traffic is straining wireless networks and their legacy T-1 backhaul networks  Carriers are replacing T-1 backhaul systems with fiber optic backhaul networks that support Ethernet  Carriers are e

81. Slide 81: Fiber Optic Licensing

    Fiber Optic Licensing

82. Slide 82: Fiber Optic Licensing Overview

    Fiber Optic Licensing Overview Operating Unit Description Revenue by Market - 2011 Sunesys is a provider of dark fiber network infrastructure, managed services and high performance connectivity for a customer base that includes business enterprises, healthcare PA-West GA facilities, higher education

83. Slide 83: Often Overlooked & Underappreciated

    Fiber Optic Licensing Often Overlooked & Underappreciated Favorable Characteristics Challenging Characteristics  Recurring revenue and cash flow  Capital intensive  High margins  To maximize asset value, revenue and  High visibility cash flow potential, need to continue to  High returns invest

84. Slide 84: Nine Markets in Various Stages of Development

    Fiber Optic Licensing Nine Markets in Various Stages of Development Philadelphia Pittsburgh New Jersey Central FL Southern CA Northern CA Atlanta Chicago 12

85. Slide 85: Prudently Invest to Maximize Value

    Fiber Optic Licensing Prudently Invest to Maximize Value  Continue to invest in network development at a prudent pace to maximize revenues, cash flow and value of the asset  As newer markets gain network density and maturity, revenues, cash flow and returns increase Young Market - Chicago Mature M

86. Slide 86: Case Study: PennREN Project

    Fiber Optic Licensing Case Study: PennREN Project Pennsylvania Research and Education Network (“PennREN”) is a $118.5 million stimulus funded state-wide fiber optic network for the Keystone Initiative for Network Based Education and Research (“KINBER”). This state-wide project was funded under the B

87. Slide 87: Summary

    Summary Well Positioned to Capitalize on Opportunities  ARRA Broadband Stimulus projects are primary driver of telecom segment growth through 2013 – Could serve as launching point for additional projects after 2013 – USF funding allocation for broadband in rural markets could be positive  Fiber to

88. Slide 88: Questions

    Questions QUANTA SERVICES

89. Slide 89: Investor Day – Financial Discussion

    Investor Day – Financial Discussion James Haddox Chief Financial Officer

90. Slide 90: Forward Looking Statement Disclaimer

    Forward Looking Statement Disclaimer  This presentation (and oral statements regarding the subjects of this presentation) includes forward- looking statements intended to qualify under the “safe harbor” from liability established by the Private Securities Litigation Reform Act of 1995. These forwar

91. Slide 91: Presentation Agenda

    Presentation Agenda  Key Takeaways  Income Statement Data  Backlog Trends  Positive Business Momentum  Cash Flow Data  Balance Sheet Data  Capital Allocation  2012 Guidance  Summary  Q&A  Appendix 3

92. Slide 92: Key Takeaways

    Key Takeaways  Quanta is experiencing momentum across all segments of its business  Quanta’s backlog of work supports its positive outlook for 2012 and beyond  Strong balance sheet and cash flow generation support growth strategies  Approach for 2012 financial guidance reflects confidence in 201

93. Slide 93: Income Statement Data: Select Data Snapshot

    Income Statement Data Select Data Snapshot For the Years Ended December 31, ($ in millions) 2008 2009(a) 2010(b) 2011(c) Revenues $3,780 $3,318 $3,931 $4,624 % Growth 42.3% (12.2%) 18.5% 17.6% Gross Profit 635 593 634 621 % Margin 16.8% 17.9% 16.1% 13.4% SG&A Expenses 309 312 340 373 % Revenues 8.2%

94. Slide 94: Historical Revenue Growth

    Income Statement Data Historical Revenue Growth For the Years Ended December 31, ($ in millions) $5,000 +17.6% $4,624 $4,500 +18.5% $3,931 $4,000 $3,780 $3,500 $3,318 $3,000 $2,500 $2,000 $1,500 $1,000 $500 $- 2008 2009* 2010** 2011 Electric Power Natural Gas & Pipeline Telecommunications Fiber Opti

95. Slide 95: Revenues & Operating Income by Segment

    Income Statement Data Revenues & Operating Income by Segment Electric Power ($ in millions) $3,030 $2,302 $2,068 $2,048 $1,692 10.9% 10.9% 10.8% 10.1% 9.5% 2007 2008 2009 2010 2011 Revs. Op. Inc. Margin 7

96. Slide 96: Revenues & Operating Income by Segment

    Income Statement Data Revenues & Operating Income by Segment Natural Gas & Pipeline: Natural Gas & Pipeline: As Reported Pro Forma with Pipeline Acquisitions ($ in millions) ($ in millions) $1,403 $2,275 $2,052 $1,025 $880 $1,418 $785 8.5% 13.6% 14.5% $1,042 8.7% 8.0% $453 8.6% 4.4% -4.5% -4.2% 2007

97. Slide 97: Revenues & Operating Income by Segment

    Income Statement Data Revenues & Operating Income by Segment Telecommunications Fiber Optic Licensing ($ in millions) ($ in millions) $537 $107 $112 $493 $457 $87 $378 $373 12.4% $62 8.0% 7.8% 50.0% 6.7% $17 52.6% 50.6% 49.3% 48.4% 4.0% 2007 2008 2009 2010 2011 2007* 2008 2009 2010 2011 Revs. Op. In

98. Slide 98: Growing 12-Month and Total Backlog

    Backlog Trends Growing 12-Month and Total Backlog 12-Month Backlog Total Backlog ($ in millions – at Dec. 31) ($ in millions – at Dec. 31) $4,000 $8,000 $3,572 $7,239 $3,500 $7,000 $6,318 $2,870 $6,000 $5,649 $3,000 $5,193 $2,577 $2,471 $2,500 $5,000 $2,000 $4,000 $1,500 $3,000 $1,000 $2,000 $500 $1

99. Slide 99: Significant Year Over Year & Sequential Improvement

    Positive Business Momentum Significant Year Over Year & Sequential Improvement 1H10 vs. 1H11 2H10 vs. 2H11 1H11 vs. 2H11  Revenues grew 14.9%  Revenues grew 19.5%  Revenues grew 48.6%  Operating income declined 71%  Operating income grew 25%  Operating income grew 506%  Operating income margi

100. Slide 100: Solid & Consistent Cash Flow Generation

     Cash Flow Data Solid & Consistent Cash Flow Generation Cash Flow from Operations Free Cash Flow ($ in millions) ($ in millions) $377 $221 $243 $240 $219 $218 $119 $116 $72 $56 2007* 2008 2009** 2010** 2011 2007* 2008 2009** 2010** 2011 * Includes the results of InfraSource subsequent to Sept. 1, 200

101. Slide 101: Strong Balance Sheet to Support Growth Strategies

     Balance Sheet Data Strong Balance Sheet to Support Growth Strategies ($ in millions) 12/31/2009 12/31/2010 12/31/2011 Cash and Equivalents $ 699.6 $ 539.2 $ 315.3 Other Debt 3.4 1.3 0.1 3.75% Convertible Subordinated Notes 126.6 -- -- Total Debt 130.0 1.3 0.1 Stockholders’ Equity 3,110.6 3,366.9 3,3

102. Slide 102: 2010 & 2011 Use of Capital & Go-Forward Priorities

     Capital Allocation 2010 & 2011 Use of Capital & Go-Forward Priorities Use of Capital Priorities (Amounts in millions)  Working Capital 458  Capital Expenditures  Acquisitions  Strategic Use of Balance Sheet  Stock Repurchase  Dividends $700 286 210 39 150 $315 144 14 Ending Cash @ Cash from Ca

103. Slide 103: 2012 Guidance

     2012 Guidance Recap, Rationale & Directional Expectations 2012 Full Year Financial Guidance General Segment Expectations for 2012  Revenues: $4.9B-$5.3B Electric Power  GAAP Diluted EPS: $0.90-$1.10  Double-digit revenue growth while  Adj. Diluted EPS: $1.08-$1.28 maintaining or increasing margi

104. Slide 104: Superior Financial Strength Provides Flexibility for Growth

     Summary Superior Financial Strength Provides Flexibility for Growth  Quanta is experiencing momentum across all segments of its business  Quanta’s backlog of work supports its positive outlook for 2012 and beyond  Strong balance sheet and cash flow generation support growth strategies  Approach

105. Slide 105: Questions

     Questions QUANTA SERVICES

106. Slide 106: Reconciliation of Operating Income, As Adjusted

     Appendix Reconciliation of Operating Income, As Adjusted Twelve Months Ended ($ in millions) 12/31/2008 12/31/2009 12/31/2010 12/31/2011 Operating income as reported $ 289.2 $ 242.1 $ 256.2 $ 217.7 Add back: Multi-employer pension plan withdrawal expense -- -- -- 32.6 Amortization of intangible asse

107. Slide 107: Reconciliation of Pre-Acquisition Natural Gas & Pipeline Segment Combined Operating Margin

     Appendix Reconciliation of Pre-Acquisition Natural Gas & Pipeline Segment Combined Operating Margin ($ in thousands) Years Ended December 31, 2008 2009 2010 2011 Calculation of NG&P Pro Forma Combined Operating Margins Revenues - As Reported $ 879,541 $ 784,657 $ 1,403,250 $ 1,024,833 Pre-Acquisitio

108. Slide 108: Investor Day – Summary

     Investor Day – Summary Jim O’Neil President & Chief Executive Officer

109. Slide 109: Forward Looking Statement Disclaimer

     Forward Looking Statement Disclaimer  This presentation (and oral statements regarding the subjects of this presentation) includes forward- looking statements intended to qualify under the “safe harbor” from liability established by the Private Securities Litigation Reform Act of 1995. These forwar

110. Slide 110: Key Takeaways

     Key Takeaways  North America is in the early stages of a multiyear infrastructure investment cycle, particularly for electric and pipeline infrastructure  End-market trends and record backlog provide Quanta with improved near- and long-term growth opportunities  Quanta is experiencing momentum ac

111. Slide 111: Quantifying the Electric Opportunity

     Early Stages of Multiyear Cycle Quantifying the Electric Opportunity North American Electrical Infrastructure Investment Estimates  260,000 miles of transmission in planning in North America(1)  U.S. annual transmission spending will average $12 - $16 billion between 2011 and 2015(2) vs. average a

112. Slide 112: Quantifying the Midstream Opportunity

     Early Stages of Multiyear Cycle Quantifying the Midstream Opportunity North American Midstream Infrastructure Investment Estimates (1) ($ in billions) Type of Pipeline Cost: 2011 – 2020 Cost: 2011 - 2035 Gas Transmission $46.2 $97.7 Gas Laterals $14.0 $29.8 Gathering Line $16.3 $41.7 NGL & Oil Trans

113. Slide 113: Strong End Market Trends & Backlog Provides Improved Visibility

     Strong End Market Trends & Backlog Provides Improved Visibility End Market Trends Strong Backlog  Significant investment in electric T&D infrastructure ($ in millions – at Dec. 31) for the foreseeable future $7,239 – Reliability – Renewable generation interconnect $6,318 – New technologies $5,649 

114. Slide 114: Increased Segment Diversity Should Improve Visibility

     Positive Business Momentum Increased Segment Diversity Should Improve Visibility Natural Gas & Pipeline Segment Natural Gas and Pipeline Segment  The 2011 long-haul pipeline market 2011 Estimated Revenue by Type of Work experienced an extremely difficult regulatory environment that delayed or Other

115. Slide 115: Key Differentiators Support Our Growth Strategies

     Leadership Position in All End-Markets Key Differentiators Support Our Growth Strategies Key Differentiators  Safety Record  Scope and Scale  Industry Diversity  Financial Strength  Technology  Reputation 8

116. Slide 116: Momentum & Visibility Improving in All End Markets

     End Market Outlook Momentum & Visibility Improving in All End Markets Gas Fiber Electric Pipeline Telecom Licensing 2009 2010 2011 2012 9

117. Slide 117: Question & Answer Session

     i Ny NAN, W SERVICES Question & Answer Session OQ QUANTA

118. Slide 118: Forward-Looking Statement Disclaimer

     Forward-Looking Statement Disclaimer Applies to all of the presentations & comments made today This presentation (and oral statements regarding the subject matter of this presentation) includes forward-looking statements reflecting assumptions, expectations, projections, intentions or beliefs about

119. Slide 119: Forward-Looking Statement Disclaimer

     Forward-Looking Statement Disclaimer Applies to all of the presentations & comments made today  Potential failure of renewable energy initiatives, the economic stimulus package or other  The potential adverse impact resulting from uncertainty surrounding existing or potential legislative actions t

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