Stantec Inc · TSX:STN
Stantec — Investor Day (June 2016)
181 slides from Stantec's investor day presentation, Jun 2, 2016
Slide 1: Stantec Investor Day
STANTEC INVESTOR DAY JUNE 2, 2016 - BOSTON, MA We create communities. We are Stantec.
Slide 2: Safety Moment
Safety Moment
Slide 3: Cautionary Statement
Cautionary Statement Our public communications will contain non-IFRS measures and written or verbal forward-looking statements, including a discussion of our goals and our growth strategies. Certain information has been adjusted for the November 14, 2014, two-for-one share split. Figures for 2012 ar
Slide 4: Morning Agenda
Morning Agenda 8:30 am - 9:00 am: Introductions and Strategic Plan 9:00 am - 9:15 am: Q&A 9:15 am - 9:30 am: Energy & Resources 9:30 am - 9:45 am: Environmental Services 9:45 am - 10:15 am: Q&A 10:15 am - 10:30 am: Break 10:30 am - 10:45 am: Buildings 10:45 am - 11:00 am: Infrastructure 11:00 am - 1
Slide 5: Afternoon Agenda
Afternoon Agenda 12:30 pm - 12:45 pm: Project Delivery Office 12:45 pm - 1:30 pm: MWH 1:30 pm - 2:30 pm: Q&A 3:00 pm - 3:30 pm: Boston presence (on the bus to STN office) 3:30 pm - 5:30 pm: Mix & mingle
Slide 6: Executive Leadership
Executive Leadership BOB GOMES DAN LEFAIVRE SCOTT MURRAY TINO DIMANNO President and Executive Vice President Executive Vice President Executive Vice President Chief Executive Officer and Chief Financial Officer and Chief Operating Officer and Chief Business Officer Edmonton, Alberta Edmonton, Albert
Slide 7: Executive Leadership
LEN CASTRO GORD JOHNSTON STEVE FLECK Executive Vice President, Executive Vice President, Infrastructure Executive Vice President, Business Buildings & Business Leader, Water Leader, Project Delivery Office Phoenix, Arizona Calgary, Alberta Vancouver, British Columbia KIRK MORRISON BOB SEAGER Executi
Slide 8: MWH Leadership
ALAN KRAUSE MARSHALL DAVERT BLAIR LAVOIE President – MWH Global Executive Vice President President – MWH Constructors Executive Vice President Executive Vice President Denver, Colorado Denver, Colorado Denver, Colorado
Slide 9: Stantec Overview
Stantec Overview Professional services Our business is people – their knowledge and experience in engineering, architecture, environmental sciences and project management across all phases of the life cycle, from initial project concept and planning through design, construction, and commissioning •
Slide 10: Business Operating Units
Business Operating Units STN TSX: NYSE 44%" INFRASTRUCTURE @ Roadways @ Comrnunity Development @ Water forait & Rad Bridges 16%" ENVIRONMENTAL SERVICES @ o1aGa © Buildings © Power © Community Development » Water tronaportation Mining UILDINGS Cornmercial Heattnoare Education industrial Science & Tec
Slide 11: We Are Stantec
We Are Stantec Creating communities is our purpose. Designing with community in mind is our promise.
Slide 12: Our Values
Our Values C WE PUT PEOPLE FIRST STN af WE ARE BETTER TOGETHER EA © WE DO WE ARE WHATIS DRIVEN RIGHT TO ACHIEVE
Slide 13: Plan 2016 Summary
Plan 2016 Summary 2015 2016 PLAN Comprehensive First Execution Based Around Planning Year Year Our Values
Slide 14: We Put People First
We Put People First Human Resource Strategy • Talent Segmentation • Leadership and Succession • Learning and Development • Talent Acquisition • Employee Engagement
Slide 15: We Are Better Together
We Are Better Together Account Management and Strategic Pursuits • Focused on developing a client centric, cross- functional Client Services Team concentrated on improving the growth of new and existing accounts Client-Focused Culture • Deliver a client-focused experience that meets our clients’ nee
Slide 16: We Are Better Together
We Are Better Together Alternate Project Delivery (APD) • Understanding our position and respecting the value we bring to the table • Reviewing the opportunity and risk associated with taking on additional delivery risk in some markets and on limited EPC projects • Further development of the Project
Slide 17: We Are Better Together
We Are Better Together Balanced Leadership Model • Continue to understand the differences in our businesses and develop processes and systems to address the specific needs
Slide 18: We Do What is Right
We Do What is Right • Health, Health, Safety & Envir Environment onment • Sustainability • Quality Management • Ethics and Integrity
Slide 19: We Are Driven to Achieve
We Are Driven to Achieve CONTINUED FOCUS: • Defining top tier as a competitive position, not a reference to size • All strategies are balanced against our desire to operate at the top of our industry • Growth is not a strategy; it is an outcome • Our goal is to do more work for our clients in more p
Slide 20: 2016 Plan Outcomes
2016 Plan Outcomes
Slide 21: We Continue to Evolve
We Continue to Evolve Environmental Services • Effective January 1, 2016 • Fourth Business Operating Unit • Higher level of management and more visibility • Enhances cross-selling abilities
Slide 22: Rich Allen
Rich Allen
Slide 23: We Continue to Evolve
We Continue to Evolve SCOTT MURRAY TINO DIMANNO Executive Vice President Executive Vice President and Chief Operating Officer and Chief Business Officer Lexington, Kentucky Calgary, Alberta
Slide 24: Our Business Model
eset at a) nag STN TSX: NYSE
Slide 25: We Continue to Evolve
We Continue to Evolve Staying the course but evolving our approach to APD and acquisitions. • APD: Continuing to explore our service delivery approach and risk appetite to meet clients’ needs • Acquisitions: Consider larger deals and international acquisitions, including North American firms with an
Slide 26: Timeline
Timeline SEPTEMBER SEPTEMBER 2015 2015 Stantec Strategic Plan Bob Gomes reaches approved by the out to Alan Krause at Board of Directors MWH Global
Slide 27: Timeline
OCTOBER FEBRUARY 2015 2016 MWH enters into Stantec granted formal process exclusivity
Slide 28: Timeline
MARCH 2016 MAY Stantec announces it 2016 has entered into Stantec’s acquisition of agreement to acquire MWH Global closes MWH Global
Slide 29: We Are Better Together
We Are Better Together • MWH acquisition aligns with our strategic plan • Provides platform to continue disciplined acquisition strategy in new regions
Slide 30: Strategic Plan Outcomes and MWH
Strategic Plan Outcomes and MWH STRATEGIC PLAN MWH OBJECTIVES FIT Consider larger/ Largest deal in mega-deal domestic Stantec’s history with acquisitions 6,800 employees Pursue international Global platform in opportunities stable countries Evolve our approach to Full life cycle offering in APD in c
Slide 31: A Leading Water & Infrastructure Firm
A Leading Water & Infrastructure Firm • Leading North American-focused engineering and • Leading global water and infrastructure engineering design firm with expertise in buildings, energy and management consulting firm that offers services to resources, environmental services, and infrastructure bo
Slide 32: A Top Tier Global Design Firm
A Top Tier Global Design Firm Top 500 North American Design Firms1 ENR Top 150 Global Design Firms The acquisition of MWH reinforces Stantec’s position as a top tier design firm in both North America and the global marketplace 1 According to Engineering News-Record and internal analysis
Slide 33: Strategic Rationale
Strategic Rationale A GLOBAL LEADER IN WATER AND INFRASTRUCTURE MARKETS we CREATE ADDITIONAL GROWTH OPPORTUNITIES STN EXPANDED GEOGRAPHIC FOOTPRINT ADD WATER-RELATED CONSTRUCTION CAPABILITIES of ENHANCE CROSS-SELLING CAPABILITIES TO DIFFERENT END MARKETS m fh NEW OPPORTUNITIES FOR COMBINED COMPANY E
Slide 34: Business Combination
Business Combination Energy & Resources Infrastructure Infrastructure Environmental Environmental Services Services Buildings Buildings Construction
Slide 35: Business Combination
Business Combination Energy & Resources Infrastructure Infrastructure Environmental Environmental Services Services Buildings Buildings Construction Water becomes Stantec’s largest business line
Slide 36: Geographic Combination
Geographic Combination 2015 STANTEC GROSS REVENUE BY ROU | International Conoda— United States STN 6) Stantec
Slide 37: Geographic Combination
Geographic Combination MWH’s experience in global markets provides Stantec immediate geographic breadth, creating a platform for further expansion and diversification
Slide 38: Financial Summary
Financial Summary COMMITTED FINANCING • New C$800 million Senior Secured Revolving Credit Facility • New C$450 million Term Credit Facility • New C$604 million Common Share offering HIGHLY ACCRETIVE TRANSACTION • Mid-single digit accretive to adjusted EPS1 in 2016 and mid-teens accretive to adjusted
Slide 39: Capital Structure and Reporting
Capital Structure and Reporting EFFECTIVE CAPITAL STRUCTURE • Strong cash flow generation and growth prospects • Pro forma leverage less than 3.0x pro forma 2015 Adjusted EBITDA • Less than 2.0x expected EBITDA by the end of 2017 • Strong balance sheet provides flexibility to continue executing grow
Slide 40: Compelling Value For Stakeholders
Compelling Value For Stakeholders FOR CLIENTS • Better equipped to solve our clients’ infrastructure challenges with our collective expertise and award-winning experience • Enhanced services over a greater span of the project life cycle FOR EMPLOYEES • Shared expertise and collaboration opportunitie
Slide 41: Q&A
Q&A
Slide 42: Energy & Resources – Investor Day
ENERGY & RESOURCES – INVESTOR DAY We create communities. We are Stantec.
Slide 43: A Significant Presence
A Significant Presence ae Warnervilie Substation Dessau fe . fe 7 . . VI Engineering ° Lateeeeneeeneees Houston, TX .f Grasberg Block Cave Mine Papua. indonesia . .
Slide 44: Rankings
Rankings #9 #22 #28 Mining Petroleum Power ENR ENR ENR
Slide 45: Sector Diversification
Sector Diversification * Percent of Q1 16 gross revenue
Slide 46: Regional Diversification
Regional Diversification REGIONAL OPERATING UNITS International United States A Canada STN 6) Stantec
Slide 47: Client Type
Client Type CLIENTS Private STN 6) mes otantec
Slide 48: Annual Revenue Trends
Annual Revenue Trends STN TSX: NYSE $100 + + 55% 45% 3 14 wale * Gross revenue (millions CS) and gross margin (%) *For comparative purposes Environmental Services has been reallocated from the Energy & Resources BOU. 6) Stantec
Slide 49: Q1 16 Revenue
Q1 16 Revenue 11% -39% 1.4% of Gross Revenue Organic Growth Acquisition Growth SIN 6 Stantec
Slide 50: Top Clients
Top Clients DUKE Wace & ENERGY. OPSEG init’! Hydro Q’ Québec © ROGERS ai Chevron Doe
Slide 51: Demand for Services
Demand for Services Power • Consistent stable to strong growth Oil & Gas • 2016 • Continued retraction (US upstream and Canada) • Stable growth (US midstream and Asset Integrity) • 2017 & beyond • Cyclical Mining • 2016 – Continued Retraction • 2017 & beyond – Cyclical Source: IBIS World 51
Slide 52: Key Priorities
Key Priorities Short Term: Oil & Gas and Mining • Maintain core staff in down market • Position for market recovery Power • Project Execution • Business Development Capitalize on Synergies & Efficiencies • Engineering, Procurement, Project Management & Construction Management • Cross selling with Ke
Slide 53: Future Opportunities
Future Opportunities Organic Opportunities Power • General expansion of client base across all regions Oil & Gas • Bolster P/CM Presence • Asset Integrity Business Mining • Strategic Hires Acquisition Opportunities • Bolster US Presence (Oil & Gas, Power) 53
Slide 54: MWH Synergies
MWH Synergies • Expanded International Footprint • Rounds out Power capabilities • International High Value Center • New service capabilities in Mining with long-term key clients
Slide 55: Riverbay Cogeneration Plant
Riverbay Cogeneration Plant Bronx, New York 40 MW repowering $15M in energy cost savings per year 60,000 residents Resilient as it withstood hurricane Sandy by providing power during and after the storm Services Include: Power Engineering Detailed Design Procurement Support
Slide 56: Brucejack Mine 138 kV Transmission Line
Brucejack Mine 138 kV Transmission Line Stewart, British Columbia 138 kV of power 57 km of transmission line 2.2 km of glacier terrain 2000 m of elevation $1.9 M Construction Value 30 years of power expected to be provided
Slide 57: BHP Billiton – Jansen EPCM Services
BHP Billiton – Jansen, EPCM Services for Surface Infrastructure, Shaft, and Near-Shaft Infrastructure Jansen, Saskatchewan $1.2B Construction value Two headframes and associated hoisting plants 116 m headframe, the tallest steel ‘A’ frame in the world Services Include: Mining Engineering Detailed De
Slide 58: TransCanada Northern Courier Pipeline Project
TransCanada Northern Courier Pipeline Project Multiple Sites, Alberta 90 km of pipeline 24” insulated pipeline 12” Non-insulated Pipeline 8 major HDD crossings Services Include: Front End Engineering & Detailed Design Construction Support
Slide 59: Enbridge South Edmonton Terminal
Enbridge South Edmonton Terminal 5 new tanks: 2.5 million barrels of storage Edmonton, Alberta capacity Three 3,500 HP booster pumps Services Include: DBM FEED and Detailed Design Construction Support As built drawings
Slide 60: Environmental Services – Investor Day
ENVIRONMENTAL SERVICES – INVESTOR DAY We create communities. We are Stantec.
Slide 61: A Significant Presence
A Significant Presence Dessou peseeeeesees Montreal QC . Aurora Liquefied _ Gas Export Terminal Digby. BC ‘ . j . . . $ id = . ¥ . . a . L he : % Fay, Spofford & é 7 ” nd Thorndike (FST) f } . ; s, ° Lenbeseeeeeees Burlington. MA ° . * as . r . . : . . . F s Ar ‘ . *~ - oe. The Nature Conservancy s
Slide 62: Rankings
Rankings #7 #18 Environmental Environmental Services Services EBI ENR
Slide 63: Sector Diversification
Sector Diversification * Percent of Q1 16 gross revenue
Slide 64: Regional Diversification
Regional Diversification REGIONAL OPERATING UNITS STN 6) Stantec
Slide 65: Client Type
Client Type STN CLIENTS
Slide 66: Annual Revenue Trends
Annual Revenue Trends STN TSX: NYSE $100 + 7 60% + 55% +50% +45% 3 14 Bale Gross revenue (millions C$) and gross margin (%) “For comparative purposes Environmental Services has been reallocated from the Energy & Resources BOU. 6) Stantec
Slide 67: Q1 16 Revenue
Q1 16 Revenue 16% -12% 0.5% of Gross Revenue Acquisition Growth SIN 6 Stantec
Slide 68: Top Clients
Top Clients KINDER/MORGAN Teck bpz"s oO pS ae ExonMobil 2) TransCanada Chevron tonal ws \DOT STN 6) Stantec
Slide 69: Demand for Services
Demand for Services • Political • US – Federal spend remains significant • CAN – Federal spending priorities have shifted • Regulatory • Clean Air, Clean Water Act (US) • Climate change policies - Resiliency • PHMSA Reporting • Changing client needs • New normal – smaller projects in Canada • Aborig
Slide 70: Key Priorities
Key Priorities Short Term: • Midstream/LNG Canada • US West acquisitions • Disaster response (pipeline spill response) • Risk management services Long Term: • Cross-selling/Account Management - Growth in Transportation, Commercial, and Power as we capitalize on integration strategies with other busi
Slide 71: Future Opportunities
Future Opportunities Organic Opportunities Opportunity in US to increase market share • Federal Sector • Renewable Energy – changing political direction and incentives are influencing clients to consider alternates • Growth in Transportation, Commercial, and Power as we capitalize on integrated stra
Slide 72: MWH Synergies
MWH Synergies • MWH (Confidential Client) Substantial Environmental Assessment opportunities associated with dam recommissioning • Key Clients – Kinder Morgan / Honeywell / Boeing • MWH brings exceptional complex remediation management expertise
Slide 73: Chevron NRDA Oil Spill
CHEVRON NRDA OIL SPILL Cuyahoga River and Big Creek, OH Conducted pre- assessment Natural Resources Damage Assessment (NRDA) Help inform management actions for the site Services Include: Data Review Landscape Analysis
Slide 74: Refugio Beach Oil Spill
Refugio Beach Oil Spill Santa Barbara County, California 140K gallons of crude oil released 21K gallons reached the ocean Conducted NRDA Services Include: Remedial excavation oversight Biological monitoring Stormwater/erosion control planning
Slide 75: TransCanada Energy East Pipeline Project
TransCanada Energy East Pipeline Project Calgary, Alberta Hardisty to Saint John 30 Offices 415 Professionals 21 Specialized Disciplines Services Include: Environmental Services / Regulatory Services
Slide 76: Roman Northwest Caribou Field Monitoring Program
Roman Northwest Caribou Field Monitoring Program North east British Columbia Client: Anglo American - Peace River Coal 17K Northern Caribou remaining in Northern BC 15 of the 31 herds in BC are “Threatened” under the Species at Risk Act. 50% calf survival rate 4.5K acres dedicated to caribou habitat
Slide 77: Ceresco Dam Removal and Kalamazoo River Restoration
Ceresco Dam Removal and Kalamazoo River Restoration Ceresco, Michigan 840K Gallons of oil spilled Largest inland oil spill in US history to date Services Include: Hydraulic dredging Dam modification and impoundment drawdown Mechanical excavation
Slide 78: Q&A
Q&A
Slide 79: Buildings – Investor Day
BUILDINGS – INVESTOR DAY We create communities. We are Stantec.
Slide 80: A Significant Presence
A Significant Presence Sparing Lynnwood WA += Temple independent Schoo! District Tarnpie. 1X @ Stontec « Lotest Projects ation ocquisitions STN United Kingdom Saint-J6rome Regional Hospital & Montreal Sacré-Coour Hospital Montreal, QC Dessau ereccecceses Montreal OC East Rall Maintenance Facility fo
Slide 81: Rankings
Rankings #1 Top A/E Firms #2 Healthcare Sector Building Design Building Design & Construction Giants & Construction Giants #1 Reconstruction #3 K-12 Sector Building Design Building Design & Construction Giants & Construction Giants #1 Industrial Sector #3 Healthcare Building Design Architecture & Co
Slide 82: Sector Diversification
Sector Diversification * Percent of Q1 16 gross revenue
Slide 83: Regional Diversification
Regional Diversification REGIONAL OPERATING UNITS . International Canada United States ai 6) Stantec
Slide 84: Client Type
Client Type Institutional Public-State/Provincial STN CLIENTS
Slide 85: Annual Revenue Trends
Annual Revenue Trends STN TSX: NYSE $800 7 $600 + $400 + $200 + $0 - 13 14 15 aQll6™ tT 60% 7 55% + 50% + 45% - 40% Gross revenue (millions C$) and gross margin (%) 6) Stantec
Slide 86: Q1 16 Revenue
Q1 16 Revenue 29% 5.1% 5.8% of Gross Revenue Acquisition Growth SIN 6 Stantec
Slide 87: Top Clients
Top Clients CR Poon unrensrry “pene TESLA a Jefferson. Aarriott. HOTELS & RESORTS 44 WD4] Dormimory AuTHoRiry iy, KAISER PERMANENTE« STN 6) Stantec
Slide 88: Demand for Services
Demand for Services Growth in demand of services: • Urbanization • Demographic trends • Aging infrastructure • Resiliency • Project Complexity 88
Slide 89: Key Priorities
Key Priorities Short Term • Integration acquisitions: • Dessau • Sparling • SHW • ADD Inc • VOA • US performance Long Term • Global Top-Tier • Brand • Diversify
Slide 90: Future Opportunities
Future Opportunities Organic Opportunities • Organic growth • Texas • California • Florida • Midwest • UK Acquisition Opportunities • US • UK 90
Slide 91: Strategic Initiatives
Strategic Initiatives • US Federal Program • CA Infrastructure Plan • Urbanization • Strategic Pursuits • Account Management Program
Slide 92: MWH Synergies
MWH Synergies • Civic/Municipal Infrastructure Synergies • Water projects are a priority in local communities and are in plain sight • Context sensitive design and architecture • Award winning WWTP/WT Plant Design • Significant opportunity to capitalize with new global clients (i.e. GE, Boeing, Hone
Slide 93: High Tech Confidential Client – MWH
High Tech Confidential Client – MWH MWH introduces existing contracted client to Stantec Integrated Service Offering in multiple locations: • Workplace tenant improvements • Seismic retrofits • Offices • Labs • Data Centers • Food services/Hospitality • Civil engineering
Slide 94: San Ysidro Land Port of Entry Phase 2
San Ysidro Land Port of Entry Phase 2 Expansion & Reconfiguration Design-Build, San Diego CA $10m Fee $135m Construction Cost Completion: Q1 2019 DB Client: Hensel-Phelps New 3-story, 102k SF Pedestrian Processing facility Office, Detention, Maint. facilities |Custom House Virginia Ave Transit Centr
Slide 95: Fresno State Student Union & Faculty Centre
Fresno State Student Union & Faculty Centre Concept Design: Fresno, California 100k SF, $86m Complete: Q2 2018 Contract: Visioning, programming, conceptual design CA Diversification: Sacramento, Austin & Philadelphia
Slide 96: McKinney ISD 2016 Bond Program
McKinney ISD 2016 Bond Program Construction Management at Risk: McKinney, TX $14m Fee $220m Bond, $180m Complete: Q2 2018 16k Stadium/Event : $54m School Upgrades: $63m Additions/Renos.: $52m Transp. & Maint.: $10m
Slide 97: Douglas Station, Mixed Use Development
Douglas Station, Mixed Use Development Design-Bid-Build-Finance: Miami, FL $20m Fee 1500 Units 3 Tower Mutli-Family Residence 250 Rm Hotel; 250k SF Retail; 250k SF Off 8 Slip Bus, Tri-Rail Communter Station County: Long-term Land lease 2/3 Funding for Bus & Rail Station Developer & Client: Adler Gro
Slide 98: Mackenzie Vaughan Hospital
Mackenzie Vaughan Hospital P3 with PCL/Plenary Toronto, ON Design-Build-Finance-Maintain $28m Fee 1.2m SF $650m Construction Cost 354 + 216 add Beds 1800 Parking Close: Aug’16 Complete: Q2 2020 Emergency, Medical Imaging, Critical Care, Perioperative, Women+Child, Adult Mental Hlth, Lab, Pharmacy
Slide 99: Infrastructure – Investor Day
INFRASTRUCTURE – INVESTOR DAY We create communities. We are Stantec.
Slide 100: A Significant Presence
Toronto, ON a A Significant Presence 9 2=:<=: the Metrolinx (GO Transit) . . Bonnybrook Wastewater Dessou Treatment Piant & the L grececceeces Montreal OC Springbonk Off-Streom. S Storage Protection Project Calgary, AB ° . . * . Ad s e “ . oe . . VA Consutting 4 Fay, Spoftord & WING) CA secvecevecce
Slide 101: ENR Rankings
ENR Rankings Now ~#3 Now ~#3 Dams & Reservoirs Water Treatment, Desalination Plants Now ~#2 Now ~#2 Sanitary & Storm Sewers Sewage & Solid Waste Now ~#2 Now ~#4 Wastewater Treatment Water Supply Plants #11 #8 General Transportation Transportation – Highways
Slide 102: Sector Diversification
Sector Diversification * Percent of Q1 16 gross revenue
Slide 103: Regional Diversification
Regional Diversification REGIONAL OPERATING UNITS Canada United States STN 6) Stantec
Slide 104: Client Type
Client Type Public-Federal Public-Municipal Public-State/Provincial STN CLIENTS Private
Slide 105: Annual Revenue Trends
Annual Revenue Trends STN TSX: NYSE $1200 $1,000 + $800 + $600 + $400 + $200 $o 3 14 1 alle” + 55% 45% 40% Gross revenue (millions C$) and gross margin (%)
Slide 106: Q1 16 Revenue
Q1 16 Revenue 44% 86% 14% of Gross Revenue Organic Growth SIN 6 Stantec
Slide 107: Top Clients
Top Clients HART QMetro ~E=|memas Howes QEEMA sEe~ METROLINX ai 6) Stantec
Slide 108: Demand for Services
Demand for Services • Urbanization • Resiliency • Rehabilitation • Regulatory • APD 108
Slide 109: Key Priorities
Key Priorities Short Term • Acquisition integration • (FST, KBR, VA, Penfield & Smith, Bury) • Account management/ Cross-selling synergies • Strategic partnerships Long Term • North American growth opportunities • Iconic positioning • Global expansion 109
Slide 110: Growth Opportunities
Growth Opportunities Organic Opportunities • Organic growth • Texas • MWH Synergies • Greater Toronto Area • Southern California and sunbelt states Acquisition Opportunities • UK • Australia/New Zealand 110
Slide 111: MWH Synergies
MWH Synergies Top clients North American office presence Large metropolitan center growth opportunities 111
Slide 112: US 460 Connector Design-Build
US 460 Connector Design-Build Buchanan County, Virginia 96M Construction Value 3 Bridges 2035 f of bridge structure 250 f high on the Grass Creek bridges Services Include: Permitting Roadway and Structure Design Utility Relocation
Slide 113: Metro Transit Dartmouth Bridge Terminal
Metro Transit Dartmouth Bridge Terminal Dartmouth, Nova Scotia LEED® targeting Gold $14.7M Construction Value 20K passengers per day 21m span bridge Services Include: Civil Design Electrical Design Mechanical Design Structural Design
Slide 114: North Metro Rail Line Skyway
North Metro Rail Line Skyway Denver, Colorado $350M Construction Value 21.7 km of electric commuter rail 25kV overhead contact system 8.5K feet of elevation 6 rail stations
Slide 115: PCCP New Orleans
PCCP New Orleans, Louisiana $644M Construction Value 24,300cf per second combined pumping capacity 450 Stantec staff lent their expertise 77 km of piles 18f high barrier gates
Slide 116: Seymour Capilano Filtration Plant Project
Seymour Capilano Filtration Plant Project Vancouver, British Columbia LEED® Gold Certified $412M Construction Value 2M residents 19 municipalities 1,800 ml per day capacity 24 dual cell filters 20 m per hour filtration rate
Slide 117: City of Atlanta Raw Water Delivery System
City of Atlanta Raw Water Delivery System Atlanta, Georgia $150M Construction Value 2.4B gallon Bellwood Rock Quarry for raw water storage 500f maximum depth of tunnels 8 km of tunnels 1 of the largest CM@Risk contract tunnels ever built in North America.
Slide 118: West Five
West Five London, Ontario 2K units 70 acres Envision™ framework based design Services Include: Landscape Architecture Multi-Family Residential Infrastructure Urban Planning Architecture
Slide 119: Q&A
Q&A
Slide 120: APD – Investor Day
APD – INVESTOR DAY We create communities. We are Stantec.
Slide 121: PDO & APD
PDO & APD
Slide 122: Project Delivery leadership mission
To provide leadership in Project Delivery enabling Stantec to address our changing business and risk profile.
Slide 123: Our Promise
Our Promise CONTINUOUSLY IMPROVE INTERNAL PROJECT DELIVERY GROW EXTERNALLY FOCUSED P&PM BUSINESS
Slide 124: What is APD?
What is APD? Alternate Project Delivery (APD) includes: EPC DB P3 IPD
Slide 125: Rankings
Rankings #6 Technical Advisor InfraDeals Engaged on projects totaling over $6 billion capital value.
Slide 126: Why APD?
Why APD? INNOVATION DISCIPLINE CERTAINTY OF OPTIMIZED BUDGET & SCHEDULE LIFECYCLE ASSET CONDITION ALIGNMENT OF AT HANDOVER MOTIVATORS
Slide 127: APD Landscape
APD Landscape CANADA US Financial Total Average Financial Total Total Total Average Closed Value Value Closed Projects Projects Value ($B) Value ($M) Projects ($B*) ($M*) Projects Environment 15 8 2.1 139 27 4 10.7 395 Other 6 3 0.3 46 5 0 0.1 24 Power 6 2 3.3 556 7 0 0.4 55 Renewables 4 3 0.7 186 9
Slide 128: Status of State Legislation
Status of State Legislation
Slide 129: Capabilities and Experience in APD
APD Capabilities and Experience in APD
Slide 130: Our Partners
WALSH ACS, Quws _. @Kiewit GRanam — ZJ _aitour Beatty any 6) Stantec
Slide 131: Typical APD Project Procurement
Typical APD Project Procurement Sponsor announcement Project concept & market sounding RFQ to FC 18 months Consortia team assembly (approx.) Shortlist Technical & Financial Solution Project Agreement and DBA/FMSA Confirmation of scope, schedule, obligations Price & rate setting Design & construction
Slide 132: Iqaluit Airport Redevelopment
Iqaluit Airport Redevelopment Iqaluit, Nunavut $298.5M Project Cost 14.3K square meters 220 passengers per hour 2014 Gold Award Best Rail/Transit Project - P3 Bulletin Awards Services Provided Architecture Interior design Engineering (civil, mechanical, electrical, and structural) Airfield planning
Slide 133: South Fraser Perimeter Road
South Fraser Perimeter Road Delta and Surrey, British Columbia $750M Project Cost 37km of highway 15 Overpasses 2014 Silver Award for Innovation and Excellence in P3s - Canadian Council for Public-Private Partnerships 2013 Award of Excellence, Transportation – Association of Consulting Engineering C
Slide 134: Halton Healthcare
Halton Healthcare Oakville, Ontario 1,600,000 SF Acute Care Facility Full Emergency Department Target: LEED® Silver Certification Services Provided Architecture Electrical Engineering Structural Engineering PDC Consulting
Slide 135: Tesla Water Treatment Facility (DB)
Tesla Water Treatment Facility (DB) $86M Construction Value Tracy, California LEED® Silver Certified 315 MGD capacity 2.5 M people provided with safe drinking water California Title 24 compliant; the strictest energy code in the US
Slide 136: SMUD East Campus-Operations Centre (DB)
SMUD East Campus-Operations Centre (DB) Sacramento, California $122M Construction Value LEED® Platinum Certified 361.7 square foot facility 40% reduced energy consumption 3.7M KWH of electricity saved
Slide 137: Loop 375
Loop 375 El Paso, Texas 11.4km Design-Build project Four-lane controlled access toll facility. Services: Prime Consultant
Slide 138: MWH Global – Investor Day
MWH GLOBAL – INVESTOR DAY Building a better world by creating communities
Slide 139: Who we are
Who we are MWH provides premier global solutions focused on water and natural resources for built infrastructure and the environment We are a results-driven technical engineering, environmental and construction services partner to clients around the world
Slide 140: What we do
What we do MWH engages in engineering, construction, and management of the world’s largest and most significant water and natural resources projects. We solve complex infrastructure and environmental challenges for clients around the globe.
Slide 141: MWH and Stantec
STN : @ mw. .=. CD stantec TSX: NYSE
Slide 142: Dams & Hydropower
Dams & Hydropower • Planning & Design • Program Management • Construction Management
Slide 143: Programs
Programs Service Overview • Supplementing and transferring project delivery knowledge • Developing and embedding program delivery process based on client requirements • Developing program systems and tools
Slide 144: UK Water
UK Water • Engineering Design • Environmental Services • Program and Project Management • Strategic Technical Consulting • Bundled Design-Build and Construction Management (for fee and At-Risk)
Slide 145: AMP Costain Joint Venture
An MIWH Costain Joint Venture STN ® MWH. or 6) Stantec TSX: NYSE
Slide 146: Netherlands/Belgium/Italy/Turkey
Netherlands/ Belgium/Italy/ Turkey • Asset Management and Infrastructure • Permitting and Compliance • Soil Management
Slide 147: Latin America
Latin America • Hydropower and Mining
Slide 148: Middle East
Middle East • Water • Wastewater • Management Consulting & Programs
Slide 149: Asia Pacific
Asia Pacific • Public Sector Water • Private Sector Water • Transportation
Slide 150: We Are Better Together
We Are Better Together “Our highly complementary cultures, shared approach to client service and extended global reach should yield multiple benefits for our clients, employees and the communities we serve.” -Alan Krause, 29 March 2016
Slide 151: MWH Water North America – Investor Day
MWH Water North America – INVESTOR DAY
Slide 152: MWH Water
MWH Water North American Capabilities: • Treatment • Water Conveyance • Wet Weather/Stormwater • Water Resources Planning & Management • Coastal Recovery & Resiliency • Digital Platforms
Slide 153: Top 25 Water Clients
MWH Top.25 Water Clients é USER - SACRAMENTO bead ~ O/, ©- gieerr=” «--: GEC ¢ <I === _ = “ “a . SOUTH FLO@IDA WATER MANGEMENT DISTRNCT ne WMUANIL-DADE WATER & SEWER DEPARTMENT 1] . : STh BROOKS City BASE (USAF NEW CAUEANS SPeret
Slide 154: Top Water Clients
Top 25 Water Clients CANADA UNITED STATES
Slide 155: Combined Top Clients
Combined Top Clients STANTEC MWH SHARED
Slide 156: Largest Metro Areas
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Slide 157: Largest Metro Areas
Largest Metro Areas TOP CLIENT GROWTH CLIENT
Slide 158: Water Offices
@® mwu Water Offices ut vw « as a “ . ™ . badd > or ®o od) wr ® . o % s be a ox - y ie . © o . e STN
Slide 159: Water Offices
6) Stantec Water Offices we ec “a . = “ wt uD oe ® . wr cd cA we ; uw i] al me STN
Slide 160: Water Offices
Water Offices STANTEC MWH SHARED
Slide 161: Los Vaqueros Reservoir
Los Vaqueros Reservoir
Slide 162: MDWASD Central Plant
MDWASD Central Plant
Slide 163: NEORSD TDPSC
Ss : 6) Stantec
Slide 164: SWCA Vineyard Surface WTP
SWCA Vineyard Surface WTP
Slide 165: MWH Constructors – An Overview
MWH CONSTRUCTORS – INVESTOR DAY An Overview
Slide 166: US: Delivery Models We Work Under
US: Delivery Models We Work Under • Construction Management-at-Risk • Design-Build • Progressive Design-Build • Design-Build-Operate • Construction Management -as-Agents (CMS) • Program Management-at-Risk
Slide 167: Rankings
Rankings #1 #4 Wastewater Treatment Sewage & Solid Waste – Plants – Engineering Engineering News-Record News-Record Top 400 Top 400 Contractors 2014 Contractors 2014 #1 #1 Top Firms in Wastewater Treatment Wastewater sector – Plants – Engineering Engineering News-Record News-Record Top 400 Top 400 C
Slide 168: Geographic Focus: US & UK
Geographic Focus: US & UK Who we are: • Problem solvers • Non-litigious • Water/Wastewater • Facility Maintenance
Slide 169: Preconstruction Services
Preconstruction Services • Design and Constructability Reviews • Planning, Sequencing and Scheduling • Value Engineering • Intermittent Detailed Cost Estimating • Bid Package Development • Community, M/WBE Outreach • Guaranteed Maximum Price Development
Slide 170: Historical Growth of US Operations
Historical Growth of US Operations
Slide 171: US Self-Performance Capabilities
US Self- Performance Capabilities • Mechanical Process Piping • Mechanical Equipment Installations • Concrete Construction • Yard Piping • Commissioning and Startup • Short-term Operations and Maintenance
Slide 172: Austin WTP No. 4 Treatment Plant
Austin WTP No. 4 Treatment Plan $379M CMAR
Slide 173: Clay Mills Sewage Treatment Works
Clay Mills Sewage Treatment Works Staffodshire, England $45M GBP CMAR
Slide 174: Riverside Park WRF NLT Project
Riverside Park WRF NLT Project City of Spokane, Washington $126M CMAR
Slide 175: AWT Media Filter Replacement
AWT Media Filter Replacement City of Las Vegas $90M CMAR
Slide 176: Summary and Next Steps
Summary and Next Steps 6) Stantec
Slide 177: Synergies
Synergies • Optimize existing back office functions and operational MEANINGFUL footprint EXPECTED COST • Enhance efficiency by SYNERGIES Stantec expects: implementing operational best practices • US$25 million in run-rate synergies, with the majority in cost synergies • Synergies expected to • Cro
Slide 178: Synergy Summary
Synergy Summary Ss QD Be c= NEW CLIENTS NEW SERVICES CROSS-SELLING OPPORTUNITIES TO EXISTING CLIENTS mi ® MAJOR PROJECT INTERNATIONAL OPPORTUNITIES PRESENCE SMe & Stantec
Slide 179: Next Steps
Next Steps x> TRANSACTION EXPLORE CLOSED KEY MAY 6 PURSUITS STN on} COMPLETION OF COMBINED OPERATING STRUCTURE
Slide 180: Phased Integration Plan
2 QQ qh PHASED SYNERGIES TARGETED INTEGRATION THROUGH INTEGRATION OF PLAN OPTIMIZATION OF MWH AMERICAS CORPORATE COSTS IN 2017 SMe & Stantec
Slide 181: Q&A
Q&A