WSP Global Inc · TSX:WSP
WSP Global — AltaCorp Capital and ATB Corporate Financial Services Institutional Investor Conference (January 2016)
25 slides from WSP Global's conference presentation, Jan 14, 2016
Slide 1: WSP at a Glance
WSP AT A GLANCE Pierre Shoiry, CEO AltaCorp Capital and ATB Corporate Financial Services Institutional Investor Conference January 14, 2016 Highway M5 – United Kingdom
Slide 2: Our Background
OUR BACKGROUND BeWSP | FARES ore
Slide 3: We Are…
3 WE ARE… A leading global professional consulting firm, with revenues from professional services (no construction risk) A powerful global brand ranked amongst the best by ENR, with technical leadership in Transportation, Civil Infrastructure and Buildings One of the fastest growing firms in o
Slide 4: We Have a Well-Defined Road Map
4 WE HAVE A WELL-DEFINED ROAD MAP 2006-2015 2015 2015-2018 From local to national, A true multi-disciplinary firm A strategy of continuity to expand our strategic services offering to clients to international 34,500 employees Our objectives More than 80 acquisitions 2015E net revenues guidance: $4.1
Slide 5: A Culture Built Around Core Values
5 A CULTURE BUILT AROUND CORE VALUES MISSION Be a solution-driven advisor with outstanding expertise VISION Always be the first choice for clients, partners and employees
Slide 6: Our Positioning in the Infrastructure and Construction Value Chain
6 OUR POSITIONING IN THE INFRASTRUCTURE AND CONSTRUCTION VALUE CHAIN MATERIALS AND EQUIPMENT WE HAVE A HORIZONTAL ENGINEERED SUPPLIERS PRODUCTS FEE-FOR-SERVICE MODEL CONSTRUCTION PLANNING DESIGN SERVICES CONTRACTORS OPERATION AND ARCHITECTS AND DEVELOPERS MAINTENANCE
Slide 7: Our Risk Relative to the E&C Sector
7 OUR RISK RELATIVE TO THE E&C SECTOR “FRONT END” “BACK END” Project Engineering, Procurement, Construction and O&M, Plant Development Testing and and Design Fabrication and Construction and Industrial Inspection Financing and Consulting Manufacturing Management Services Expenditure Low-to-Moderate
Slide 8: We Have Built a Diversified Global Firm
8 WE HAVE BUILT A DIVERSIFIED GLOBAL FIRM SEPTEMBER 2015 TTM NET REVENUES: $4.1B CANADA EMEIA 24% 36% TTM NET REVENUES TTM NET REVENUES 8,800 3,920 NORDICS CANADA 3,650 ASIA 715 APAC 5,180 CONTINENTAL 13% EUROPE TTM NET REVENUES UK 6,090 AMERICAS US 27% 2,050 TTM NET REVENUES AUSTRALIA NEW ZEALAND 1
Slide 9: A Well-Diversified Revenue Base
A WELL-DIVERSIFIED REVENUE BASE 9 Infrastructure (Transportation/ Municipal Infra) 47% Buildings 29% Industrial/Energy (< 5% from oil and gas and < 5% from mining) Environment 17% 7% London Bridge Station – London, UK Based on TTM combined net revenues
Slide 10: Advantages of Geography and Sector Diversification
10 ADVANTAGES OF GEOGRAPHY AND SECTOR DIVERSIFICATION Pool of talent Knowledge and business practices Communities of practice Cross-selling opportunities Opportunity to develop professionally and international careers Lower-cost design centres Serve international clients Exposure to
Slide 11: A Leading Firm, with World-Class Expertise
11 A LEADING FIRM, WITH WORLD-CLASS EXPERTISE Top International PM/CM firm #1 Top “pure play” firm #2 Top International Design firm #9 • Transportation #2 • Buildings #4 • Power #4 PURE-PLAY ENGINEERING ENGINEERING AND ENVIRONMENT AND PLANNING CONSTRUCTION Source: ENR Top 225 International Design Fi
Slide 12: Our Operating Model Provides Autonomy and Alignment
OUR OPERATING MODEL PROVIDES 12 AUTONOMY AND ALIGNMENT CORPORATE GROUP Global strategy Capital allocation TRANSPORTATION AMERICAS CANADA EMEIA ASIA PACIFIC BUILDINGS UNITED STATES NORDICS AUSTRALIA/NZ ENVIRONMENT SOUTH AMERICA UNITED KINGDOM GREATER CHINA MINING CARRIBEAN CENTRAL EUROPE SOUTH EAST A
Slide 13: Our Financial Performance
OUR FINANCIAL PERFORMANCE BeWSP | FARES ore
Slide 14: A Proven and Sustained Performance
14 A PROVEN AND SUSTAINED PERFORMANCE NET REVENUES ADJUSTED EBITDA SOLID BALANCE SHEET (NET DEBT/EBITDA) 4,350.0** 4,097.4 410.0** 407.6 CAGR CAGR 48% 62% 253.5* 2,349.9* 1,677.2 180.6 125.4 1,020.1 2.0 1.8 1.9*** 1.5 12 13 14 TTM15 15E 12 13 14 TTM 15 15E 12 13 14 End Q315 * Based on reported finan
Slide 15: Organic Growth Reflected in Backlog Growth
15 ORGANIC GROWTH REFLECTED IN BACKLOG GROWTH ± 10 months of revenues 4,891.6 4,674.4 4,562.0 Q3 2015 COMPARED TO END OF YEAR 2014 3,935.1 (in millions of dollars, except percentages) Total Hard Backlog Q3 2015 $4,891.6 Hard Backlog End of 2014 $3,935.1 Net change ($) $956.5 1,881.8 Organic Growth 1
Slide 16: Update on Cost Synergies
16 UPDATE ON COST SYNERGIES Amounts spent to date US$ 24M • Workforce reduction • Property-related costs Recurring annual savings US$ 30M realized by the end of 2015 Additional recurring annual US$ 10M savings targeted realized by the end of 2016 Total amounts to be spent Lower than the to realize t
Slide 17: Financial Position and Net Debt/TTM EBITDA Ratio
17 FINANCIAL POSITION AND NET DEBT/TTM EBITDA RATIO (in millions of dollars) Q3 2015 Financial liabilities $720.5 Less: Cash and ($218.1) cash equivalents Net debt $502.4 TTM EBITDA $407.6 Net debt / TTM EBITDA 1.2x Net debt /TTM EBITDA, incorporating full 12-month EBITDA for all acquisitions 1.1x (
Slide 18: 2015 Outlook Reiterated
18 2015 OUTLOOK REITERATED Between $4,100 million Net revenues and $4,600 million Between $390 million EBITDA and $430 million Tax rate Approximately 25% Seasonality and EBITDA Between 20% and 29%, the first quarter being the lowest and fluctuations the third quarter being the highest Free cash-flow
Slide 19: We Are a Profitable Growth Company
19 WE ARE A PROFITABLE GROWTH COMPANY Solid acquisition Strong and organic management growth team opportunities Successful business model whose organic growth and earnings Low “gearing Industry leading have grown at a culture” EBITDA margins higher rate than the industry Ample opportunities Low ca
Slide 20: We Have Created Significant Value Since IPO
20 WE HAVE CREATED SIGNIFICANT VALUE SINCE IPO Acquisition of MMM Group • $14.73 per share in distribution/dividends since IPO (August 25, 2015) • 486% TSR since IPO Acquisition of Parsons • Announced the acquisition of MMM Group Limited for $425M • 25.5% annualized return from IPO to today Acquisit
Slide 21: Looking Ahead: 2015-2018 Strategic Plan
LOOKING AHEAD OUR GLOBAL STRATEGY IS ABOUT DRIVING PERFORMANCE AND LEADING THE FUTURE 2015-2018 STRATEGIC PLAN
Slide 22: Strength & Agility for Our Future
22 STRENGTH & AGILITY FOR OUR FUTURE OPERATIONAL EMPLOYEES CLIENTS GROWTH EXCELLENCE > 11% $1.3B EBITDA THROUGH MARGIN ACQUISITIONS 45,000 10% EMPLOYEES OF OUR REVENUES >1 5% FROM CASH FLOW / ANNUAL ORGANIC GLOBAL CLIENTS NET INCOME GROWTH < 85 DAYS $6.0B DSO NET REVENUES ALWAYS BE THE FIRST CHOICE
Slide 23: We Will Continue to Strengthen Our Technical Expertise
23 WE WILL CONTINUE TO STRENGTHEN OUR TECHNICAL EXPERTISE CORE SECTORS We want to consolidate and expand our core sectors in all of our regions TRANSPORTATION BUILDINGS INFRASTRUCTURE ENVIRONMENT We want to be opportunistic in our other sectors in OPPORTUNISTIC DEVELOPMENT selected geographies W
Slide 24: On Track with Our Strategic Plan
24 ON TRACK WITH OUR STRATEGIC PLAN 250 employees 400 employees 35 employees 215 employees PROJECT MANAGEMENT TELECOM ENVIRONMENT ENVIRONMENT GEOTECHNICAL GEOTECHNICAL BUILDING SCIENCES BUILDING SCIENCES 50 employees 2,000 employees BUILDINGS (MECHANICAL) BUILDINGS INFRASTRUCTURE P3 ACQUISITION ACHI
Slide 25: Thank You
THANK YOU BeWSP | FARES ore