Stantec Inc · TSX:STN
Stantec — Canaccord Genuity 34th Annual Growth Conference (2014)
34 slides from Stantec's conference presentation, 2014
Slide 1: Canaccord Genuity 34th Annual Growth Conference
Canaccord Genuity 34th Annual Growth Conference
Slide 2: Cautionary Statement
Cautionary Statement Our public communications will contain non-IFRS measures, additional IFRS measures and written or verbal forward-looking statements, including a discussion of our goal and our growth strategies. Numbers for 2008 and 2009 are not restated for IFRS but are reported under Canadian
Slide 3: Stantec Overview
Stantec Overview Professional consulting services Our business is people - their knowledge and experience in the engineering, sciences, architecture, and design of infrastructure • No construction risk; no equity into projects • $2.4 billion in TTM gross revenue at June 30, 2014 • Traded on TSX & NY
Slide 4: Our purpose is to create communities
Our purpose is to create communities and our promise is to design with community in mind.
Slide 5: Creating our Strategy
Creating our Strategy Business Objective • To be a Top Ten Global Design Firm Aligning to our values • We put people first • We are better together • We do what is right • We are driven to achieve Building a culture to generate long-term value Disciplined execution of our strategy to deliver consist
Slide 6: Industry Positioning
Industry Positioning Design High Construction Operations and Maintenance Margin Low Low Risk High
Slide 7: Margin Profile
Margin Profile EBITDA MARGIN PROFILE FOR E&C FIRMS (% of Gross Revenue) 14 > 12 > ee — 10 + A+ a4 ot 08 09 10 11 12 13 —= Stantec Diversified Engineering Construction
Slide 8: Stantec Business Model
Stantec Business Model ss Operating Units (BOUs)
Slide 9: Business Operating Units (BOUs)
Business Operating Units (BOUs)
Slide 10: Sectors
Sectors We respond to client needs by aligning with the sectors in which they operate to deliver the services they require.
Slide 11: Clients
Clients Q2 2014 Private Public-Municipal Public-State/Provincial Institutional Public-Federal
Slide 12: Regions
Regions Q2 2014 @ 55% Canada e@ 41% United States @ 4% International
Slide 13: Evolution
Evolution BH Buildings @ Energy & Resources M@ Infrastructure * estimates 08° 09° 10°11 12 138 Q2147™
Slide 14: Buildings
Buildings | of Gross Revenue ) 222014 “ah i) veo ia ene 2, HANAN
Slide 15: Buildings
Buildings —. Sectors Healthcare Commercial Education & Institutional » Industrial Buildings Airports & Aviation Science & Technology Private Institutional Public-State/Provincial Public-Municipal Public-Federal @ Canada @ United States @ International Q2 2014 Revenue 6) Stantec
Slide 16: Energy & Resources
Energy & Resources
Slide 17: Energy & Resources
Energy & Resources Q2 2014 Revenue
Slide 18: Infrastructure
o 3D c Qs eS = ~ & 8 3 0) a °
Slide 19: Infrastructure
Infrastructure Q2 2014 Revenue
Slide 20: Expanding Our Depth and Breadth
Expanding Our Depth and Breadth
Slide 21: ~14,000 employees in more than 230 locations
~14,000 employees in more than 230 locations
Slide 22: Acquisitions
Acquisitions Gross Revenue (millions C$)™ $2,500 5 $2,000 4 $1,500 + $1,000 + $500 + $0 4 7 $300 @ #of Acquisitions — Gross Revenue + $250 =— EBITDA = w 4 + $200 ¢ > E. 7 $150 © ° 3 n Q & 7 Mm | $100 5 5 5 3fis + $50 L go 94 95 96 97 98 99 00 01 O2 03 04 05 06 O7 08 O9 10 11 12 13 Q214*™ 6) Stantec
Slide 23: Resulting in Growth
Resulting in Growth
Slide 24: Revenue
Revenue millions (C $) "16% csce $2,000 + $1,500 + 05 06 O7 08 09 10 11 12 13 Q2147™™ $1,000 $500 $0 in Revenue-10 Years || Gross Revenue | | Net Revenue 6) Stantec
Slide 25: Organic Revenue Growth
Organic Revenue Growth quarter over quarter
Slide 26: Gross Revenue Backlog
Gross Revenue Backlog millions (C$) and months (trailing)
Slide 27: Focusing on Performance
Focusing on Performance
Slide 28: EPS and Shares Outstanding
EPS and Shares Outstanding $3.5 5 $3.0 $2.5 + $2.0 + $1.5 | $1.0 $0.5 | $0 ° +49 16% cace in Diluted EPS-10 Years alll 137 05 06 07 08 09 10 11 12 138 Q2147™ +47 +45 +43 +41 + 39 i EPS (diluted) === # of Shares Outstanding (in millions) Note: Figures are pre-goodwill impairment
Slide 29: Cash Flow
Cash Flow millions (C $) $300 + $240 > $180 > $120 + “| : : : $0 L 05 06 O7 08 09 10 11 12 138 Q2147™ | Free Cash Flow | Operating Cash Flow
Slide 30: Capital Structure
Capital Structure Revolving credit facility • C$350 million (C$208 million available at June 30, 2014) • C$150 million accordion • Matures 2018 Senior secured notes • C$125 million • 2 and 4 year maturities for 2016 and 2018 Net Debt/EBITDA 0.9 at June 30, 2014 Dividend
Slide 31: Positioning for the Future
Positioning for the Future Positioning for the Future
Slide 32: North American Market Opportunity
North American Market Opportunity
Slide 33: Markets for Growth
Markets for Growth Canada • Organic growth from mature presence • Acquire specialty firms that offer differentiating skills • Consider geographies that require infill US • Many sectors and geographies of focus for acquisition • Leverage expertise and growing presence for organic growth International
Slide 34: STN Key Takeaways
STN Key Takeaways Large market opportunity • $2.4 billionTTM firm in a $100 billion fragmented and growing market Clear, flexible strategy and diversified exposure • Strong local presence leveraged across North American platform • Flexible in 14 sectors to respond to market changes Execution track r
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