Slide 1: Bird Construction Inc. Investor Presentation
Bird Construction Inc. TSX: BDT INVESTOR PRESENTATION NOVEMBER, 2021
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
DISCLAIMER TERMINOLOGY Throughout this presentation, management uses the following terms that may not be comparable with similar terms presented by other companies and require definition: • "Backlog" is the total value of all contracts awarded to the Company, less the total value of work completed o
Slide 4: Disclaimer: Non-GAAP Measures
DISCLAIMER NON-GAAP MEASURES Throughout this presentation, management uses the following terms which have no standardized meaning prescribed by IFRS and are considered non-GAAP measures. The non- GAAP measures used are: Adjusted Earnings, Adjusted Earnings Per Share, Adjusted EBITDA, Adjusted EBITDA
Slide 5: Over 100 Years Building Canada
OVER 100 YEARS BUILDING CANADA 5
Slide 6: Bird Construction (TSX:BDT)
BIRD CONSTRUCTION (TSX:BDT) $2.2B $53M $60M $120M $2.8B TRAILING TWELVE MONTH (TTM) TTM Q3 2021 TTM Q3 2021 TTM Q3 2021 BACKLOG(2) Q3 2021 REVENUE NET INCOME ADJUSTED EARNINGS(1) ADJUSTED EBITDA(1) AT SEPTEMBER 30, 2021 $549M 61.8% $0.39 +82% MARKET CAPITALIZATION 2-YR SHAREHOLDER ANNUALIZED EMPLOYE
Slide 7: Diverse Expertise
DIVERSE BUILDINGS LIGHT INDUSTRIAL NATURAL RESOURCES EXPERTISE Delivering solutions from coast-to-coast, serving a broad scope of end-markets. MODULAR POWER TRANSPORTATION Comprehensive range of construction services from new construction for industrial, commercial, and institutional markets; to ind
Slide 8: Full-Suite Service Offering
FULL-SUITE SERVICE OFFERING DIVERSIFIED REVENUE STREAMS CONSTRUCTION MAINTENANCE, DESIGN-BUILD SELF-PERFORM PUBLIC PRIVATE MANAGEMENT REPAIR & OPERATIONS PARTNERSHIPS (PPP) (MRO) FIXED PRICE / INTEGRATED PROJECT STIPULATED SUM DELIVERY (IPD) COST PLUS INDUSTRIAL SERVICE AGREEMENTS RISK SCALE Reflect
Slide 9: Constructing a Strong Foundation
CONSTRUCTING A STRONG FOUNDATION DRIVING SUPERIOR SHAREHOLDER VALUE CREATION • Balanced and disciplined approach to capital allocation TARGETING SUSTAINABLE PROFITABLE GROWTH • Managing risk profile through diversification • Recurring revenue focus • Consistent margin improvement ENVIRONMENTAL, SOCI
Slide 10: Strong Team of Constructors
DISCLAIMER STRONG TEAM OF CONSTRUCTORS LEVERAGING OUR TALENTED • Executive leadership and operational leadership comprised of experienced LEADERSHIP TEAM professionals each with over 25 years in the industry • Building a high-performance culture centred on great people DEEP BENCH STRENGTH AND • Comp
Slide 11: Stuart Olson Integration Update
STUART OLSON INTEGRATION UPDATE 9.25.2020 $96M $ 30M $ 66M TRANSACTION DATE TOTAL CONSIDERATION AMOUNT CONSISTED OF CASH COMMON SHARES OF BIRD CONSTRUCTION $ 25M $ 10M $ 15M EBITDA SYNERGIES SET IN MOTION DEPRECIATION, AMORTIZATION, FURTHER COST SAVINGS RUN-RATE COST EXPECTED THROUGH (EXPECTED TO RE
Slide 12: Dagmar Construction Acquisition
DAGMAR CONSTRUCTION ACQUISITION 80% $32M ACQUISITION DATE: SEPTEMBER 1, 2021 DEBT PURCHASE PRICE(1) 20% EQUITY RAIL WORK | Complete Scope Rail General Contractor STRUCTURE | Complete Scope General Contractor ROADWORK | Complete Scope Roadwork General Contractor UNDERGROUND & SITE SERVICING | Special
Slide 13: Dagmar Construction Overview
DAGMAR CONSTRUCTION OVERVIEW STRONG REPUTATION OVER 80 YEARS BALANCED PORTFOLIO BY WORK TYPE REVENUE BREAKDOWN BY WORK TYPE Solid execution, dependable operations, and a safety-oriented culture. EXTENSIVE EXPERTISE Civil infrastructure, rail, road, bridge, sewer and water, and commercial-institution
Slide 14: Leveraging Innovation & Technology
LEVERAGING INNOVATION & TECHNOLOGY BUILDING INFORMATION MAINTENANCE, REPAIR, LEVERAGING SMART BUILDING MODELLING AND VIRTUAL AND OPERATION INNOVATIVE PERFORMANCE DESIGN & CONSTRUCTION MANAGEMENT SOLUTIONS TECHNOLOGY Utilizing integrated multi- Multi-year maintenance and Leveraging a variety of tools
Slide 15: Stack Modular
STACK MODULAR BUILD GREEN WORK GREEN 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 O
Slide 16: Mass Timber
MASS TIMBER BUILD GREEN WORK GREEN Bird is a North American leader in wood construction with unmatched expertise, experience, and supply chain knowledge. >$1.3B COMPLETED OR UNDER CONSTRUCTION >$234M PRECONSTRUCTION >$1.0B OPPORTUNITIES ACROSS CANADA innovation and technology value 16
Slide 17: Sustainability Overview
SUSTAINABILITY OVERVIEW BUILD GREEN Bird’s long-term strategic vision is rooted in our belief that the construction industry plays an important role in providing sustainable, innovative, and lasting solutions for not only our Pursuing opportunities to utilize sustainable clients, partners, and emplo
Slide 18: Building Sustainable Growth
BUILDING SUSTAINABLE GROWTH CONTINUALLY PURSUIT OF OVERALL MANAGING BACKLOG MARGIN IMPROVEMENT RISK PROFILE RETAINING SIGNIFICANT FINANCIAL FLEXIBILITY TO DIVERSIFIED SERVICES & FOCUSED ON INCREASING PURSUE ORGANIC AND GEOGRAPHICAL PRESENCE RECURRING REVENUE INORGANIC GROWTH STREAMS OPPORTUNITIES ta
Slide 19: Diversifying Risk: Revenue by Contract Type
DIVERSIFYING RISK REVENUE BY CONTRACT TYPE in $millions of Canadian dollars $29 $27 $7 • Public Private Partnership $102 $42 (PPP) $135 $101 $80 $179 $177 Higher risk • Design-Build-Finance $901 • Complex Design-Build $943 $607 $792 $806 • Stipulated Sum • Unit Price • Specified Design-Build $673 $4
Slide 20: Significant Pipeline of Projects
SIGNIFICANT PIPELINE OF PROJECTS EXECUTING ON STRATEGIC PRIORITIES NORTH OKANAGAN WASTEWATER RECOVERY PROJECT TEAM PERFORM DIVERSIFY ONTARIO POWER GENERATION – CLARINGTON CAMPUS DBMF FIVE ALBERTA SCHOOLS COMMITMENT SUSTAINABLE VIRTUAL DESIGN ESG TO ESG CONSTRUCTION CONSTRUCTION FOOD and BEVERAGE FAC
Slide 21: Record Backlog & Pending Backlog
RECORD BACKLOG & PENDING BACKLOG(1) in $millions of Canadian dollars 62% of Backlog expected to 5,000 convert into Revenue over the 4,500 next 12 months 4,000 1,788 3,500 1,636 1,685 1,648 SEPTEMBER 30, 2021 1,300 3,000 • Record Quarter-end Backlog was ~$2.8B 2,500 • Record Quarter-end Pending Backl
Slide 22: Strong Government Spending Outlook
STRONG GOVERNMENT SPENDING OUTLOOK $350B+ IN GOVERNMENT SPENDING OPPORTUNITIES GoC Projecting Economic Growth: 6% • 2021 | 5% • 2022 | 3% • 2023 FEDERAL 2021-2022 BUDGET HIGHLIGHTS Infrastructure-related spending of $26B over 6 years $14.9B • Public Transit Over 8 Years $3.0B • Long-term Care and Af
Slide 23: Improving Adjusted EBITDA Margin
IMPROVING ADJUSTED EBITDA MARGIN(1) TRAILING TWELVE MONTH (TTM) REVENUE & ADJUSTED EBITDA MARGIN(1) 2,500 8% Q3 2021 2,177 7% $53M 2,000 1,901 Q3 2021 TTM 6.0% 6% 1,627 NET INCOME 5.5% TTM Revenue in CAD Millions ($M) 1,504 5.5% 5% 1,500 1,419 1,382 1,376 Adj. EBITDA Margin (%) 4% 5.5% Q3 2021 TTM 1
Slide 24: Revenue, Net Income and Adjusted Earnings
REVENUE, NET INCOME AND ADJUSTED EARNINGS in $millions of Canadian dollars except per share amounts REVENUE NET INCOME ADJUSTED EARNINGS (1) $1,800 $40 $0.80 $0.90 $45 $0.92 $1.00 $1,600 $35 $0.62 $0.80 $40 $0.71 $1,400 $0.70 $0.80 $30 $35 $1,200 $0.60 $25 $30 $1,000 $20 $0.36 $0.50 $25 $0.47 $0.60
Slide 25: Strong Financial Position
STRONG FINANCIAL POSITION Q3 2021 SEPTEMBER 30, 2021 in $millions of Canadian dollars 32.8% 1.21 0.09x Accessible cash $ 75 LT LOANS & CURRENT ADJUSTED NET DEBT/ BORROWINGS RATIO(2) TTM ADJUSTED TO EQUITY(1) EBITDA(3) Restricted cash $ 49 EXPANDED AND EXTENDED SYNDICATED CREDIT FACILITY Held in join
Slide 26: Balanced Capital Allocation Priorities
BALANCED CAPITAL ALLOCATION PRIORITIES $16 CAPITAL EXPENDITURES(2) in $millions of Canadian Dollars $14 $12 $10 CAPEX(2) $8 $15 $14 $14 $6 $4 $8 $6 $2 OPERATING CASHFLOW(1) $- 2018A 2019A 2020A 2020YTD Q3 2021YTD Q3 $90 $80 $20 $18 CASH DIVIDENDS PAID in $millions of Canadian Dollars in $millions of
Slide 27: Looking Ahead: Why Invest in Bird
LOOKING AHEAD: WHY INVEST IN BIRD STRATEGIC PRIORITIES FAVOURABLE OUTLOOK Solid balance sheet and pipeline of opportunities FOCUS ON MARGINS Strong financial position with improving margin profile TEAM PERFORM DIVERSIFY BALANCED STRATEGY Balanced capital allocation Maintaining a balanced risk profil
Slide 28: Analyst Coverage
ANALYST COVERAGE ATB CAPITAL CANACCORD| CIBC WORLD iA CAPITAL MARKETS INC. GENUITY MARKETS MARKETS Chris Murray Yuri Lynk Jacob Bout Naji Baydoun 647.776.8246 514.844.3708 416.956.6766 514.830.8077 cmurray@atb.com yuri.lynk@canaccordgenuity.com jacob.bout@cibc.com Naji.baydoun@iagto.ca LAURENTIAN BA
Slide 29: Appendix
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Slide 30: Financial Highlights: Q3 2021 Results
FINANCIAL HIGHLIGHTS Q3 2021 RESULTS(1) STRONG RECORD FINISH TO 2020 Record Q3 2021 Revenues $621M 80% REVENUES Continued realization of cross- REVENUE selling synergies $12M 37% NET INCOME RECORD Record Backlog(2) of $2.8B $29M 30% BACKLOG & and Record Pending ADJUSTED EBITDA(3) PENDING Backlog(2)
Slide 31: Financial Highlights
FINANCIAL HIGHLIGHTS Q3 2021 YTD 2021 REVENUE $621M 80% $1,622M 71% YEAR-OVER-YEAR INCREASE YEAR-OVER-YEAR INCREASE GROSS $46M 70% $135M 109% PROFIT 7.5% OF REVENUE YEAR-OVER-YEAR INCREASE 8.3% OF REVENUE YEAR-OVER-YEAR INCREASE GENERAL and $30M 69% $90M 96% ADMINISTRATIVE 4.8% OF REVENUE YEAR-OVER-