Wsp Global Inc · TSX:WSP
Wsp Global — Investor Presentation (July 2021)
36 slides from Wsp Global's investor presentation, July 2021
Slide 1: Introduction to WSP
Introduction to WSP Introduction to WSP July 2021 1
Slide 2: Forward-Looking Statements and Non-IFRS measures
Forward-Looking Statements and Non-IFRS measures FORWARD-LOOKING STATEMENTS Certain information regarding WSP contained herein may constitute forward-looking statements. Forward-looking statements may include estimates, plans, objectives, expectations, opinions, forecasts, projections, guidance, out
Slide 3: We are WSP
We are WSP A global professional service firm specializing in providing technical expertise and strategic advice to clients in the Transport & Infrastructure, Property & Buildings, Environment, Industry & Energy sectors. Introduction to WSP A pure play consulting and design firm, with no constructio
Slide 4: Our Positioning in the Infrastructure and Construction Value Chain
Our Positioning in the Infrastructure and Construction Value Chain MATERIALS AND We have a horizontal EQUIPMENT ENGINEERED fee-for-service model SUPPLIERS PRODUCTS CONSTRUCTION SERVICES PLANNING DESIGN (Construction/ Project Management) Introduction to WSP CONTRACTORS OPERATION AND ARCHITECTS AND MA
Slide 5: Our Guiding Principles
Our Guiding Principles We value our people and our reputation. We are locally dedicated with international scale. We are future-focused and challenge the status quo. We foster collaboration in everything we do. Introduction to WSP We have an empowering culture and hold ourselves accountable. 5
Slide 6: A Global Player of over 47,000 professionals, with Golder 54,000
A Global Player of over 47,000 professionals, with Golder we grow to 54,000 professionals 5,900 + 300 54,000 Nordics Employees Worldwide 7,000 + 2,400 Canada 7,000 + 200 UK & Ireland 1,300 + 400 9,800 + 1,300 Continental 3,250 + 180 Europe Asia US 3, 150 + 5 Introduction to WSP Middle East & India 2
Slide 7: An Experienced Board of Directors
An Experienced Board of Directors Christopher Pierre Louis-Philippe Linda COLE SHOIRY CARRIÈRE GALIPEAU (Chairman) (Vice Chairman) Introduction to WSP Alexandre Birgit Suzanne Paul L’HEUREUX NOORGARD RANCOURT RAYMOND 7
Slide 8: A Proven Leadership Team with a Strong Track Record
A Proven Leadership Team with a Strong Track Record MARIE-CLAUDE DUMAS LOU CORNELL MARK NAYSMITH MAGNUS MEYER Canada United States UK, Africa Nordics and Continental Europe 8 ALEXANDRE L’HEUREUX ALAIN MICHAUD PHILIPPE FORTIER GREG KANE GUY TEMPLETON IVY KONG President and CEO Chief Financial Officer
Slide 9: An Empowering Operational Model
An Empowering Operational Model High High autonomy of Business Units/Regions Autonomy 9 Introduction to WSP Low Global Control Local Markets 9
Slide 10: A Pure Consulting Firm but Yet a Diversified Platform
A Pure Consulting Firm but Yet a Diversified Platform EMEIA 35% Americas OECD 35% countries 88% Focus on Good mature, stable geographic economies mix Non-OECD APAC countries 16% Canada 11 12% 14% Strategic Advisory Transport & Private Services Infrastructure sector 35% 54% Property & 38% Introductio
Slide 11: A Proven Track Record as a Successful Operator and Integrator
A Proven Track Record as a Successful Operator and Integrator +38% +40% 8,916.1 8,803.9 6 886.3 6 859.1 7,908.1 6 020.6 6,942.2 5 356.6 6,379.6 4 895.1 12 Introduction to WSP 2016 2017 2018 2019 2020 2016 2017 2018 2019 2020 Revenues Net Revenues* 12 *Non-IFRS measures. Additional details for this n
Slide 12: A Proven Track Record as a Successful Operator and Integrator
A Proven Track Record as a Successful Operator and Integrator +72% +111% 1036.8 1053.7 487.8 459.4 398.1 660 315.5 265.8 555.2 13 499 Introduction to WSP 2016 2017 2018 2019 2020 2016 2017 2018 2019 2020 Earnings Before Net Financing Expense And Income Taxes Adjusted EBITDA* *Non-IFRS measure. Addit
Slide 13: A Decade of Organic Growth
A Decade of Organic Growth 6.2% 5.2% 4.9% 4.6% 3.2% 3.5% 3.5% 2.6% 1.6% 1.0% 14 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 -3.6% Introduction to WSP From the 2006 IPO to 2019, positive organic growth every year. Organically, net revenues contracted 3.6% for 2020, in line with Management'
Slide 14: FCF: Long-Term Progression Through Seasonality
FCF* : Long-Term Progression Through Seasonality 1300 Free cash flow (millions) TTM Cash flow from operating activities (millions) TTM 1200 1100 1000 $1,125.1M 900 800 700 $735.3M 15 600 500 400 300 200 Introduction to WSP 100 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Slide 15: Balance Sheet: Prudent, Yet Flexible When Needed
Balance Sheet: Prudent, Yet Flexible When Needed Net debt to Adjusted EBITDA 1.8x 1.7x 1.7x 1.8x 1.8x 1.1x 0.1x ratio* 1 270.0 1 144.1 1 044.8 851.3 808.8 16 643.9 137.1 Introduction to WSP 2014 2015 2016 2017 2018 2019 2020 * Non-IFRS measure. Additional details for this non-IFRS measure can be fou
Slide 16: M&A Strategy
Introduction to WSP M&A 17 Strategy Introduction to WSP 17
Slide 17: Growth: The Benefits of Consolidation
Growth: The Benefits of Consolidation 18 Scale Expertise Integrated Services Size of project is increasing Acquire best in class expertise Cover the project lifecycle with Introduction to WSP Financial strength is an asset full suite of services Benefit of knowledge sharing, Geographic and market co
Slide 18: M&A Screening Criteria for Successful Combinations
M&A Screening Criteria for Successful Combinations Complementary activities and services with opportunities to cross-sell services. Leaders who are respected in their fields. 19 Strong portfolio of projects and client base supported by strong technical expertise and people. Companies accretive withi
Slide 19: A Successful Track Record of Acquisitions
A Successful Track Record of Acquisitions 8 916.1 8 803.9 7 908.1 6 942.2 6 866.3 6 859.1 6 379.6 6 064.0 6 020.6 20 5 356.6 4 895.1 4 486.8 2 902.4 2 349.9 2 016.0 1 257.5 1 677.2 477.9 580.4 651.9 1 020.1 257.2 387.8 Introduction to WSP 182.2 529.0 320.1 395.3 469.5 206.6 128.0 2006 2007 2008 2009
Slide 20: In Conclusion, M&A Will Continue to Be an Integral Part of our Growth
In Conclusion, M&A Will Continue to Be an Integral Part of our Growth Well-positioned. Strong track record of successful acquisitions supported by our shareholders. Well-capitalized and available cash and credit facilities. 21 Proactive pursuit of potential opportunities based on our strategy . We w
Slide 21: Creating the Leading Advisor to the World's Green Transition
Introduction to WSP Creating 22 the Leading Advisor to the World’s Green Introduction to WSP Transition 22
Slide 22: WSP & Golder – Transaction Summary
WSP & Golder – Transaction Summary Synergies and Immediately US$1.14B $310M (C$1.5B) Golder’s Enterprise Adj. EPS Improves WSP’s New Strategic Investors Value Accretion (1,2) Profile Support WSP Global Inc. to acquire Trending toward higher end Transaction supported by Immediate accretion(2) to #18
Slide 23: Golder at a Glance – North American Player With a Global Footprint
Golder at a Glance – North American Player With a Global Footprint Pure play environmental organization with ~7,000 people across more than 30 countries Award Winning Cutting-edge expertise in earth sciences and environmental consulting Advisory Firm services developed over 60 years of history ENR #
Slide 24: Global Strategic Plan 2019-2021
Introduction to WSP 2019-2021 25 Global Strategic Plan Introduction to WSP 25
Slide 25: We Delivered on our 2015-2018 Global Strategic Plan
We Delivered on our 2015-2018 Global Strategic Plan 2015-2018 Objectives 2018 Employees 45,000 48,000 Net Revenues (CAD) 6.0B 6.02B Adjusted EBITDA Margin (%) 11.0% 11.0% Cash Flow / Net Income 100% 221% Introduction to WSP Days Sales Outstanding (DSO) <85 days 76 days Objective exceeded Objective a
Slide 26: Our Client Centric 2019-2021 Strategy is Built on Four Pillars
Our Client Centric 2019-2021 Strategy is Built on Four Pillars 27 CLIENTS Introduction to WSP OPERATIONAL EXCELLENCE 27
Slide 27: Smart Diversification For a Better Balance in Our Sectors and Services
Smart Diversification For a Better Balance in Our Sectors and Services Geographies Geographies OECD Countries Non-OECD Countries (~ 90%) (~ 10%) Sectors Sectors * Transportation & Environment, Water, 28 Infrastructure, Power, Resources, Property & Buildings Industry (~ 20%) (~ 80%) Engineering & Str
Slide 28: Capitalize on Leadership Positions; Drive Presence in Growth Regions
Capitalize on our Presence in Regions Where we Have a Leadership Position Drive our Presence in Regions with Continued Growth Opportunities UK Nordics Canada Continental US Europe Asia Introduction to WSP Latin America Australia Capitalize New Zealand Drive 29
Slide 29: Strategic plan principles remain relevant despite COVID-19
The underlying principles of our 2019-2021 strategic plan remain relevant, despite the context of these unprecedented times and the impacts of the COVID-19 pandemic on our business. Our aim remains We will strive to we will continue to be a top-tier All in view of provide an to build upon our Our cl
Slide 30: Capital Markets and Shareholder Base Analysis
Introduction to WSP Capital 31 Markets and Shareholder Base Analysis Introduction to WSP 31
Slide 31: Capital Market Profile
Capital Market Profile WSP.TO Symbol 117,305,881 $144.43 $82.01/$151.48 Shares outstanding Price (July 1, 2021) 52 weeks low/high Introduction to WSP $16.9B $1.50 1.04% Market capitalization Annual dividend per share Current yield 32
Slide 32: Long-Term Focused Shareholder Base: Ambitions to Grow our US Base
Long-Term Focused Shareholder Base : Ambitions to Grow our US Base Directors and officers 1% U.S. 7% CDPQ Retail 19% International 31% 10% 33 By Geography By Type CPPIB 19% Introduction to WSP Canada 83% Other institutions 30% *WSP’s best estimates, based on quarterly filings and discussions with po
Slide 33: Strong Analyst Support
Strong Analyst Support Analyst Rating ATB Sector Perform Market Perform BMO Sector Perform or Hold 42% Canaccord Buy CIBC Outperform Desjardins Buy Laurentian Bank Hold Outperform National Bank Outperform or Buy 58% Royal Bank Outperform Raymond James Outperform Introduction to WSP Scotia Sector Per
Slide 34: Our Sustainable Business Model Has Delivered Top-Tier Return
Our Sustainable Business Model Has Delivered Top-Tier Return Supporting Long-term Anchor Investors A +20% Annualized TSR Since The IPO Ending Value of $100 Invested in WSP and S&P/TSX in May 2006 (WSP IPO date) Largest pension fund in Canada Largest pension fund in Quebec 2 500 2 202.5 Approximately
Slide 35: In Summary: How WSP Drives Shareholder Value Creation?
In Summary: How WSP Drives Shareholder Value Creation? Durable Organic and M&A Revenue Growth Strong Cash Sustainable Flow and Introduction to WSP Shareholder Margin Disciplined Value Expansion Capital Allocation 36
Slide 36: Thank you
Introduction to WSP 37 wsp.com Thank you