EDPM overview
›March 2021
2
Operating Cash
Flows
$336 million, highest quarterly
operating cash flow since
Q4 2017
Adjusted Net
Income from E&C
$78.9 million,
up from a loss of $284.1
year-over-year
Cash Balance
Increased
87% year-over-year, net
recourse debt to EBITDA
ratio now 2.1x
SNCL Projects
Forward-Looking StatementsReference in this presentation, and hereafter, to the “Company” or to “SNC-Lavalin” means, as the context may require, SNC-Lavalin Group Inc. and all or some of its subsidiaries or joint arrangements or
associates, or SNC-Lavalin Group Inc. or one or more of its subsidiaries or joint arrangements or associates.
Statements made in this presentation that describe the Company’s or management’s budgets, estimates, expectations, forecasts, objectives, predictions, projections of the future or strategies may be “forward-
looking statements”, which can be identified by the use of the conditional or forward-looking terminology such as “aims”, “anticipates”, “assumes”, “believes”, “cost savings”, “estimates”, “expects”, “goal”, “intends”,
“may”, “plans”, “projects”, “should”, “synergies”, “target”, “vision”, “will”, or the negative thereof or other variations thereon. Forward-looking statements also include any other statements that do not refer to historical
facts. Forward-looking statements also include statements relating to the following: i) future capital expenditures, revenues, expenses, earnings, economic performance, indebtedness, financial condition, losses
and future prospects; ii) business and management strategies and the expansion and growth of the Company’s operations; and iii) the expected impacts of the ongoing COVID-19 pandemic on the business and its
operating and reportable segments as well as elements of uncertainty related thereto and other near-term risks and uncertainties. All such forward-looking statements are made pursuant to the “safe-harbour”
provisions of applicable Canadian securities laws. The Company cautions that, by their nature, forward-looking statements involve risks and uncertainties, and that its actual actions and/or results could differ
materially from those expressed or implied in such forward-looking statements, or could affect the extent to which a particular projection materializes. Forward-looking statements are presented for the purpose of
assisting investors and others in understanding certain key elements of the Company’s current objectives, strategic priorities, expectations and plans, and in obtaining a better understanding of the Company’s
business and anticipated operating environment. Readers are cautioned that such information may not be appropriate for other purposes.
Forward-looking statements made in this presentation are based on a number of assumptions believed by the Company to be reasonable as at the date hereof. The assumptions are set out throughout the
Company’s 2020 annual Management Discussion and Analysis (MD&A) (particularly in the sections entitled “Critical Accounting Judgments and Key Sources of Estimation Uncertainty” and “How We Analyze and
Report our Results”). If these assumptions are inaccurate, the Company’s actual results could differ materially from those expressed or implied in such forward-looking statements. In addition, important risk factors
could cause the Company’s assumptions and estimates to be inaccurate and actual results or events to differ materially from those expressed in or implied by these forward-looking statements. These risk factors
are set out in the Company’s 2020 MD&A.
Non-IFRS Financial Measures and Additional IFRS MeasuresThe Company reports its financial results in accordance with IFRS. However, the following non-IFRS measure is used by the Company in this presentation: Segment Adjusted EBIT to revenue ratio. Additional
details for this non-IFRS measure can be found in Section 13 of SNC-Lavalin’s 2020 MD&A, filed with the securities regulatory authorities in Canada, available on SEDAR at www.sedar.com and on the
Company’s website at www.snclavalin.com under the “Investors” section, including the various reconciliations of non-IFRS to the nearest corresponding IFRS measures in sections 4,8.5 and 13.3 of the 2020
MD&A. Non-IFRS financial measures do not have any standardized meaning under IFRS and therefore may not be comparable to similar measures presented by other issuers. Management believes that, in
addition to conventional measures prepared in accordance with IFRS, these non-IFRS measures provide additional insight into the Company’s operating performance and financial position and certain investors
may use this information to evaluate the Company’s performance from period to period. However, these non-IFRS financial measures have limitations and should not be considered in isolation or as a substitute for
measures of performance prepared in accordance with IFRS. Furthermore, certain non-IFRS financial measures and additional IFRS measures are presented for each of PS&PM” and Capital, as the Company
believes that such measures are useful mainly as activities are usually analyzed separately by the Company.
3
George Nash
CEO North America
› Joined Atkins / EDPM in 2016. More than 30 years of experience providing a wide range of consulting, engineering, design, construction and commissioning services to markets worldwide.
› Bachelor’s degree in Mechanical Engineering from Brown University and registered professional engineer.
Philip Hoare
President EDPM
› Joined Atkins in 1997 and has held
several senior positions including
leading the transportation division and
operations across Europe and CEO
UK & Europe from 2017 to 2019.
› Member of Institution of Civil
Engineers.
Simon Cole
Senior Vice President, Finance
› 35 years with Atkins / EDPM.
Business and major project P3/PPP
experience as Controller and Finance
Director.
› Fellow of the Chartered institute of
Certified Accountants.
Richard Robinson
CEO UK & Europe
› Previously the Chief Operating Officer at HS2 and has held senior leadership roles at AECOM, BAA Heathrow, and Anglo American following his early career at ICI.
› Chartered Chemical Engineer.
Catherine Li
CEO Asia Pacific
› Appointed in January 2020. Over 25 years’ experience across several geographies.
› Prior to Atkins / EDPM, held various key roles in the infrastructure consultancy and financial services sectors.
Bharat Gala
Senior Vice President, India
› Appointed in November 2019. 10 years with SNC-Lavalin.
› Head of Global Design Centre in India. Over 30 years of experience in the engineering industry having worked both in India and the United States.
EDPM leadership
Cris Dedigama
CEO Middle East
› Appointed in November 2019. 30 years experience leading projects and managing operations in the engineering and construction sector.
› Developed SNC-Lavalin’s Infrastructure sector in the Middle East region.
Global professional services business
EDPM
World-Class global
professional services
business with highly
respected Atkins and
Faithful+Gould brands
with 80+ years of design
and engineering history
Focused on our clients’
key future challenges
from efficient delivery of
infrastructure,
engineering a net zero
future and tackling the
impacts of societal
expectations, water and
climate change in our
core geographies
Bringing our talented
people together from
around the business,
leveraging our
multidisciplinary team
of 19,000+
professionals to deliver
comprehensive end-to-
end engineering, design
and project
management solutions
Harnessing data and
technology to lead the
transformation of the
sector through our
Digital Future programme
and an increasing focus
on Engineering Net Zero
solutions for our clients
and their projects
4
5
UNITED STATES
2,900 FTE
$1.0B
UK & EUROPE
8,800 FTE
$1.8B
M IDDLE
EAST
1,400 FTE
$0.3B
ASIA PACIFIC
1,100 FTE
$0.2B
CANADA
2,700 FTE
$0.4B
INDIA
2,200 FTE
GDC
Notes: FTE figures are those for full-time equivalent employees as at Q4 2020.
Financial data is full year 2020 revenue.
GDC is the Global Design Centre – highly-skilled resources providing technical capabilities for global operations and project delivery.
The Engineering, Design & Project
Management (“EDPM”) sector is made up
of more than 19,000 passionate people
who work in four major geographies –
Asia Pacific, the Middle East, UK &
Europe and North America.
Together, we plan, design and enable the
delivery of complex projects and major
programmes across transportation,
energy and infrastructure.
Our work spans many different sectors,
but our approach is always the same.
Whatever the industry, we strive to build
strong relationships by understanding the
challenges our clients face, sharing their
vision and helping them to transform
potential into reality.
19,000+ employees building
strong relationships with clients
EDPM (2020)
19,100 FTE
$3.7B Revenue
6
› Our business relies on attracting and
retaining the most talented and capable
people in the sector
› The Atkins and Faithful+Gould brands
are key to attraction globally – we hired
400 graduates in 2020
› We aim to be the employer of choice in
our sector, championing diversity,
inclusion and wellbeing –
acknowledged through numerous
awards
E M P L O Y E R A W A R D S
EDPM is a premier employer in the industry
Our people driving growth
Attracting and retaining
top engineering talent
7
Our people push boundaries and
create value as trusted advisors to
our clients and partners.
We are especially focused on
accelerating the creation of additional
value to our clients by harnessing
data and technology to better design,
deliver and manage the built
environment for a decarbonized,
climate resilient future.
$3.9B $3.7B
9.2%8.1%
FY 2019 FY 2020
Revenue (in $B) and Segment adjusted EBIT to
revenue ratio* (%)
E D P M K E Y D I F F E R E N T I A T O R S
› Strong client relationships with trusted advisor
reputation
› Our people are known for their problem-solving
capability and ability to deal with complexity
› Digital capabilities – harnessing data and technology
and using Global Design Centre skills
› Full spectrum, end to end engineering consultancy
services across a broad range of markets
› International expertise – strong global footprint across
North America, UK & Europe, Middle East and Asia
Pacific
A resilient business with industry leading profitability
EDPM is a professional services business
Note: Segment adjusted EBIT to revenue ratio* % calculated on a gross revenue basis
*Non-IFRS financial measures. Refer to Section 13 of the Company’s 2020 MD&A for Non-IFRS financial measures definition and reconciliation to IFRS measures
www.snclavalin.com/en/investors/financial-information/annual-reports/2020. See also the cautionary statement regarding Non-IFRS financial measures at slide 2
8
35%
34%
31%
S E R V I C E L I N E
Largely services oriented business with a
focus on design, consultancy and project &
programme management
M A R K E T
Diversified revenue base increases
resilience against sector cyclicality
Design
Consultancy
Project & Programme
Management
Rail
Roads
Buildings
Water &
Environment
Defence & Security
Industrial & Energy
Airports & Ports
Other
38%41%
31%
24%
4%
23%
22%
21%
11%
10%
8%5%
C L I E N T T Y P E
Blue chip public and private sector client
base with recurring business and over
15,000 contracts globally
Two thirds of revenue sourced from
government procurement agencies and
regulated industries
National Government /
Regulated
Local Government
Private
EDPM is a professional services business
An attractive diversified business
Note: Charts show analysis of 2020 Revenue
9
Significant growth potential
across core geographies
U K & E U R O P E
Continued government commitment
to infrastructure investment allows
focus on well-funded transport,
infrastructure, water and defence
markets with a strong pipeline of
opportunities
More difficult market conditions
expected in the aviation, education
and commercial property markets
Continued diversification from public
infrastructure in Hong Kong –
position for opportunities in
HK/Macau
Property activity centred on urban
planning, architecture and design in
mainland China – position for
opportunities in Greater Bay Area
Exploring potential to expand in
Australia
Multidisciplinary integrated
services with emphasis on major
projects and programmes
Transport, infrastructure and
property, in specific geographies
Other sectors being explored
M I D D L E E A S T A S I A P A C I F I CN O R T H A M E R I C A
Aim to grow core, market-leading
business in transportation; further
opportunities in coastal resiliency for
big cities
Attractive Canadian market where
infrastructure spending remains a
government priority – focus on rail &
transit and roads & bridges sectors
together with environment &
geosciences
E X A M P L E O F C L I E N T S
M A R K E T F O C U S
10
Some of ourmarket capabilities
Global
Strength and
Depth in Rail
and TransitCrossrail, London, UK
Technical
Excellence in
Roads and
BridgesProject Neon, Nevada, USA
World-class
Reputation
in Cities &
DevelopmentMeixi Lake sustainable city, China
11
Some of ourservice line capabilities
ConsultancyStrategy, planning
and analysis
Design and
EngineeringThe Box, Plymouth
Project and
Programme
ManagementBulgari Resort and Residences,
Jumeira Bay, Dubai, UAE
12
EDPM’s role within SNC-Lavalin is dedicated
to making the world work better for all by
bringing people, data and technology together
to radically transform the way infrastructure is
designed, delivered and operated.
Drive performance
and growth in our
core
› Grow profitably in
core markets
› Leading positions
on globally
significant
transformational
projects
Expand in
focus areas
› Geographical
focus: North
America
› Service line focus:
Programme
management
› Market sector
focus: Water /
EDAROTH
(housing)
Lead the
transformation of
the infrastructure
sector by
harnessing data
and technology
› Digital Future
programme
› Engineering Net
Zero
Embrace new
ways of working
› Talent
management and
investment in the
skills and
capabilities of our
people
› Equality, diversity
& inclusion (ED&I)
› Increase market
and service line
collaboration
across the
organisation
EDPM Strategy
Global professional services business
Digital
Transformation
Lead the
transformation of how
infrastructure is
delivered
13
Leading
diversity in our
sector
Delivering better
outcomes for all
Engineering
Net Zero
In partnership with our
planet
Tackling the
global housing
crisis
With world class
purpose-led solutions
Meeting the
world’s water
needs
Resilience and future
proofing
T R A N S F O R M A T I O N A L P R O G R A M M E S
Our work impacts the big global themes through our work on transformational programmes
EDPM Strategy
14
Transforming
how we design
and how we
collaborate
Creating a
global
programme
management
service
Developing a
digital twin
service and
solution
Creating an
environment to
store and
connect data
Design
TransformationProgramme
Management
Digital
Twin
Connected Data
Ecosystem
Digital
Transformation
Lead the
transformation of how
infrastructure is
delivered
Leveraging data and technology to bring
unrivalled certainty to infrastructure
delivery across the full asset lifecycle
Transforming the industry through data
S K I L L S
Talent management
and investment in the
skills and capabilities
of our people
I N C L U S I O N
Equality, diversity &
inclusion (ED&I)
C O L L A B O R A T I O N
Market and service line
collaboration across the
organization
We want to help our colleagues, our clients and our stakeholders drive greater value from
their projects by enabling them to learn, experiment and collaborate in a cutting edge,
technology driven environment.
15
Leading
diversity in our
sector
Delivering better
outcomes for all
Transforming the industry through people
A better working world is delivered by people from a diversity of
backgrounds, perspectives and ideas. We are dedicated to
leading change in our industry, harnessing the power of people to
drive superior outcomes for our clients and society.
16
Engineering
Net Zero
In partnership with our
planet
Engineering net zero for a better future
A critical part of a better working world is taking action today to deliver a net zero future for tomorrow. In partnership with
our planet, we’re working on low-carbon engineering solutions to address the world’s most pressing problem.
Strategic CarbonPlanning
Net Zero EnergySystems
Net Zero Buildings& Cities
Net ZeroTransportation
Net Zero Industry & Infrastructure
Greenhouse GasRemovals Wh
ole
Lif
e C
arb
on
Ma
na
ge
me
nt
Cli
ma
te R
esilie
nce a
nd
Ad
ap
tati
on We are well placed to offer
the end-to-end solutions that
clients are increasingly
demanding to minimize
carbon across the life of an
asset.
17
Tackling the
global housing
crisis
With world class
purpose-led solutions
EDAROTH utilises the EDPM
designed housing system for
scalable application and 50%
faster build than traditional
construction
Tackling the housing crisis
We are dedicated to a world that works better for all, so we
relentlessly find new ways to ensure people from all walks of life
thrive. At EDAROTH we are tackling the social and affordable
housing crisis by transforming how it is delivered.
18
Meeting the
world’s water
needs
Resilience and future
proofing
Meeting the world’s water needsWater is an increasingly important but unevenly distributed resource globally. We are deploying the right skills and the right people to
ensure that water services are fit for today and tomorrow.
We work side-by-side with our clients to ensure that their
water services are fit for today as well as tomorrow, and
together, we challenge existing methods and develop
new solutions, whether that be the introduction of new
assets or extracting more value from existing ones.
19
› The largest roads
project in Europe
› High Speed rail
› Modular housing
› Bringing finance to support
infrastructuredevelopment
› Reimagining infrastructure
in Scandinavia
-
U N I T E D STATES
› Infrastructure investment
to support urban growth
› Tackling global climate
resilience
C A N A D A
› Infrastructure investment in fast
growing cities
› Enabling development in
rail & transit
UK & E U R O P E
A S I A P A C I F I C
› Greater Bay Area creating the
megalopolis of the Pearl River Delta
› Great opportunities to fuel cities in
Australia
M I D D L E E A S T
› Cities of the future
› Opportunities in programme
management, environmental and
security
Transformational programmes
Our work impacts the big global themes through
our work on transformational programmes
3 4World-Class Global
Professional Services
Business
World-Class global Professional
Services business with highly
respected Atkins and
Faithful+Gould brands with
80+ years of design and
engineering history
Focussed on our clients’
key future challenges
From efficient delivery of
infrastructure, engineering a
net zero future and tackling
the impacts of societal
expectations, water and
climate change in our core
geographies
Bringing our talented
people together from
around the business
Leveraging our
multidisciplinary team of
19,000 professionals to deliver
comprehensive end-to-end
engineering, design, and
project management solutions
Harnessing data and
technology to lead the
transformation of the sector
We will do this through our Digital
Future programme with an
increasing focus on Engineering
Net Zero solutions for our clients
and their projects
20
21
Key takeaways
Our values are the essence of our company’s identity.
They represent how we act, speak and behave together,
and how we engage with our clients and stakeholders.
We do the right thing,
no matter what, and are
accountable for our actions.
We put safety at the heart of
everything we do, to safeguard
people, assets and the environment.
We redefine engineering
by thinking boldly, proudly
and differently.
We work together and embrace
each other’s unique contribution
to deliver amazing results for all.
21
Top Related