Overview March 2018
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Overview
March 2018
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.
We have an empowering culture and hold ourselves accountable.
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We are Our Brand3
WSP is…— A global professional service firm
headquartered in Canada, specializing in providing technical expertise and strategic advice to clients in the Transport & Infrastructure, Property & Buildings, Environment, Industry & Energy sectors
— More than 42,000 employees, active in 40 countries
— Generating more than $CAD5.3 billion in net revenues and $CAD555.2 million in adjusted EBITDA in 2017
— A pure play consulting and design firm, no construction risk
— Led by an experienced board & management team and supported by long term shareholders
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A global player of over 42,000 professionals
ASIA
3,400
AUSTRALIANEW ZEALAND
4,600
MIDDLE EAST INDIA
2,220
NORDICS
5,140
UK IRELAND
7,800
CONTINENTAL EUROPE
720
SOUTHAFRICA
620
US
7,000
CENTRAL &SOUTH AMERICA
2,500
CANADA
8,000
By operating segment
37%EMEIA
31%AMERICAS
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Percentage of net revenues – Based on Fiscal 2017 results *Includes Industry, Resources and Power & Energy
14%APAC18%
CANADA
By market segment
50%TRANSPORT &
INFRASTRUCTURE
29%PROPERTY & BUILDINGS
11%ENVIRONMENT
10%INDUSTRY &
ENERGY*
A global player with attractive geographic and business mix
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Our positioning in the infrastructure and construction value chain
PLANNING DESIGN
CONSTRUCTION SERVICES
(Construction/ProjectManagement)
EQUIPMENT SUPPLIERS
MATERIALS AND ENGINEERED
PRODUCTS
WE HAVE A HORIZONTALFEE-FOR-SERVICE MODEL
ARCHITECTS CONTRACTORS AND DEVELOPERS
OPERATION AND MAINTENANCE
Our expertise is widely recognized
1 Top international design firm
Top international design firm in transport
Top international design firm in buildings
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2
2017 ENR Rankings
8
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A young and experienced leadership team
HUGO BLASUTTACanada
GREGORY KELLYAmericas
MARK NAYSMITHUK
ALEXANDRE L’HEUREUXPresident and CEO
PAUL DOLLINChief Operating Officer
BRUNO ROYChief Financial Officer
ROBERT OUELLETTEChief Corporate Services Officer
Steeve RobitailleChief Legal Officerand Executive Vice President, Mergersand Acquisitions
ISABELLE ADJAHI Senior VP, IR & Communications
FANNIE JACQUESVP, HR Global
MAGNUS MAYERNordics
GUY TEMPLETONANZ
DAVE MCALISTERTransport and Infrastructure
TOM SMITHProperty and Buildings
DAVID TSUIAsia
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A proven and sustained performance
1,020.1
1,677.2
2,349.9
4,486.84,895.1
5,356.6
2012 2013 2014 2015 2016 2017
NET REVENUES*
* In millions CAD – Non-IFRS measures
125.4
180.6
253.5
441.5499.0
555.2
12.3%
10.8%10.8% 9.8%
10.2%10.4%
2012 2013 2014 2015 2016 2017
ADUSTED EBITDA* AND ADJUSTED EBITDA MARGIN*
PB Acquisition
WSP Acquisition
Our strategy
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Our strategy
• Pure play consulting &
design firm without
construction exposure
• Leading presence in
Transport & Infrastructure
and Property & Buildings
• Focus on mature
geographies with niche
growth in emerging
markets
Where we compete
Four pillars:
• Growth
(M&A, organic)
• People & Expertise
• Operational Excellence
• Clients
How we compete
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Where we compete: Advantages of diversification
Exposure to various economies and risk mitigation
Opportunity to better service local and international clients
Access to pool of talent
Knowledge sharing
Leverage best business practices
Communities of practice
Cross-selling opportunities
Opportunity to develop professionally and international careers
Lower-cost design centres
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How we compete: our 2015-2018 Strategic Plan
CLIETS
CLIENTS
1st
CHOICE FOR ALL CLIENTS,
LARGE OR SMALL
10%OF OUR REVENUES
FROM GLOBAL
CLIENTS
OPERATIONALEXCELLENCE
11%EBITDA MARGIN
> 100%CASH FLOW/NET INCOME
< 85 DAYSDAYS SALES
OUTSTANDING (DSO)
CONSOLIDATE AND EXPAND
OUR EXPERTISE IN OUR CORE
SECTORS (T&I, P&B, ENV.)
OPPORTUNISTIC
DEVELOPMENT IN SELECTED
GEOGRAPHIES
IN OTHER SECTORS
45,000EMPLOYEES
EMPLOYEESGROWTH
$6.0BNET REVENUES
$ 1.3BTHROUGH ACQUISITIONS
5%ANNUAL ORGANIC GROWTH
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Growth: a successful track record of acquisitions
128.0 206.6320.1 395.3 469.5 529.0 1,020.1
1,677.2
2,349.9
4,486.84,895.1
5,356.6
26.0 42.268.6 78.6 83.5 89.7 108.6
180.6
253.5
441.5
499.0
555.2
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Net revenues EBITDA
4 1014
More than 100 well-integrated acquisitions since the 2006 IPO
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Growth: we have a well-defined road map
FROM LOCAL TO NATIONAL,
TO INTERNATIONAL
More than 90 acquisitions
Major acquisitions
WSP 9,000 people (2012)
Focus 1,800 people (2014)
Parsons Brinckerhoff 13,500 people (2014)
MMM 2,000 people (2015)
Mouchel 2,000 people (2016)
Opus 3,000 people (2017)
2006-2017 TODAY 2015-2018
A TRULY MULTI-DISCIPLINARY
FIRM
42,000 employees
TTM net revenues $5.3 B
TTM adjusted EBITDA$552.5 M
ENR Global RankingTop International Design Firms in
Transportation - #1Top International Design Firms - # 1
A STRATEGY OF CONTINUITY TO EXPAND
OUR STRATEGIC SERVICES OFFERING
TO CLIENTS
Our objectives45,000 employees
$6.0B in net revenues ($1.3B through acquisitions)
5% annual organic growth
11% adjusted EBITDA margin
Continue to consolidate the industry to create the best professional services firm in each of our geography and sector
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Growth: the benefits of consolidation
Size of project is increasing
Financial strength is an asset
Geographic and market
diversification provide resilience
Ability to mobilize depth of workforce
SCALE
CLIETS
EXPERTISE INTEGRATED SERVICES
Acquire best in class expertise
Benefit of knowledge sharing, collaboration and
cross-selling
Access low cost production centers
and improve competitiveness
Cover the project lifecycle with full
suite of services
Offer a one-stop shop
Develop a multidisciplinary
offering
Growth: our recipe for successful combinations
— Performing and accretive companies— Complementary activities and services— Successful and respected in their fields— Strong portfolio of projects and client base— Share our vision and corporate culture
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Growth: Acquisitions will be key to our continued success
TRANSPORTATION BUILDINGS INFRASTRUCTURE ENVIRONMENT
SUBSCALE IN CERTAIN SECTORS
EXPANDING GEOGRAPHICALLY
EXPANDING GEOGRAPHICALLY
ADDING SPECIFIC EXPERTISE
SUBSCALE IN CERTAIN
SECTORS
We have the resources to grow
(in $M, CAD) Q4 2017
Financial liabilities $1,229.9
Less: Cash ($185.1)
Net debt $1,044.8
TTM adjusted EBITDA* $555.2
Net debt / TTM adjustedEBITDA* (adjusted for 12-month net revenues for all acquisitions)
1.8x
* In millions CAD – Non-IFRS measures
Adequate flexibility to pursue our acquisition growth strategy
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2018 Outlook
2018 Outlook
* Non-IFRS measure.1) Due mainly to personnel and real estate integration costs related to the acquisition of Opus completed in Q4 2017, and to real estate integration costs pertaining to the Mouchel acquisition completed in Q4 2016
Net revenues* Between $5,700 million and $5,900 million
Adjusted EBITDA* Between $610 million and $660 million
Seasonality and adjusted EBITDA* fluctuations
Q1: 18% to 21%Q2: 25% to 28%Q3: 26% to 29%Q4: 24% to 27%
Tax rate 23% to 25%
DSO* 80 to 85 days
Amortization of intangibleassets related to acquisitions Between $60 and $70 million
Capital expenditures Between $115 and $125 million
Net debt to adjusted EBITDA* 1.5x to 2.0x
Acquisition and reorganization costs*Between $40 million and $50 million 1)
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2018 Regional operational outlook
AMERICASStrong US Transportation and
Infrastructure spending
Integration of POCH and ConColexpected to deliver synergies and
improvement in operating margins
MIDDLE EASTDifficult
economic conditions
AUSTRALIATransportation is the fastest growing
segment of all our businesses worldwide
CANADASolid backlog and good prospects
NORDICSSignificant increase in
headcount should translate into higher utilization rates
ASIAContinued slowdown in
buildings market
UKLarge public sector
workContinuing concerns
over Brexit
SOUTH AFRICADifficult
economic conditions
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