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November 8, 2016 Q3 2016 results

Q3 2016 results - WSPcdn.wsp-pb.com/w5qmpv/q3-2016-results.pdf · 2016-11-08 · Q3 2016 PERFORMANCE. 2. All regions, with the exception of Canada, delivered organic growth. Adjusted

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Page 1: Q3 2016 results - WSPcdn.wsp-pb.com/w5qmpv/q3-2016-results.pdf · 2016-11-08 · Q3 2016 PERFORMANCE. 2. All regions, with the exception of Canada, delivered organic growth. Adjusted

November 8, 2016

Q3 2016 results

Page 2: Q3 2016 results - WSPcdn.wsp-pb.com/w5qmpv/q3-2016-results.pdf · 2016-11-08 · Q3 2016 PERFORMANCE. 2. All regions, with the exception of Canada, delivered organic growth. Adjusted

Q3 2016 PERFORMANCE2

All regions, with the exception of Canada, delivered organic growth

Adjusted EBITDA margin of 12.4% compared to 11.2% last year

Bruno Roy appointed CFORobert Ouellette appointed Chief Corporate Services Officer David Langlois promoted to Chief Accounting and Treasury Officer

Shortly after Q3, acquisition of Mouchel, a leading UK pure play infrastructure firm

Page 3: Q3 2016 results - WSPcdn.wsp-pb.com/w5qmpv/q3-2016-results.pdf · 2016-11-08 · Q3 2016 PERFORMANCE. 2. All regions, with the exception of Canada, delivered organic growth. Adjusted

REVENUES AND NET REVENUES3

Revenues Net Revenues

1,503.01,552.5

Q3 2015 Q3 2016

+3.3%1,124.9

1,189.8

Q3 2015 Q3 2016

+5.8%

In millions $

Page 4: Q3 2016 results - WSPcdn.wsp-pb.com/w5qmpv/q3-2016-results.pdf · 2016-11-08 · Q3 2016 PERFORMANCE. 2. All regions, with the exception of Canada, delivered organic growth. Adjusted

ADJUSTED EBITDA AND ADJUSTED EBITDA MARGIN4

126.2

147.2

Q3 2015 Q3 2016

+16.6%

12.4%11.2%

In millions $

Page 5: Q3 2016 results - WSPcdn.wsp-pb.com/w5qmpv/q3-2016-results.pdf · 2016-11-08 · Q3 2016 PERFORMANCE. 2. All regions, with the exception of Canada, delivered organic growth. Adjusted

ADJUSTED NET EARNINGS* AND ADJUSTED NET EARNINGS PER SHARE*

5

AdjustedNet Earnings*

AdjustedNet Earningsper share*

74.077.2

Q3 2015 Q3 2016

0.81 0.77

Q3 2015 Q3 2016

In millions $, except per share data*excluding amortization of intangible assets relating to acquisitions

Page 6: Q3 2016 results - WSPcdn.wsp-pb.com/w5qmpv/q3-2016-results.pdf · 2016-11-08 · Q3 2016 PERFORMANCE. 2. All regions, with the exception of Canada, delivered organic growth. Adjusted

BACKLOG6

Q3 2016 COMPARED TO Q3 2015

(in millions of dollars, except percentages) Total

Hard Backlog Q3 2016 $5,371.2

Hard Backlog end of Q3 2015 $4,891.6

Net change ($) $479.6

Organic Growth (0.5%)

Acquisition Growth 8.3%

Foreign Currency Impact 2.1%

Net change % Q3 2016 vs. Q3 2015 9.8%

4,891.6

5,199.75,529.7 5,667.4

5,371.2

Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016

10.3 monthsof revenues

In millions $

Page 7: Q3 2016 results - WSPcdn.wsp-pb.com/w5qmpv/q3-2016-results.pdf · 2016-11-08 · Q3 2016 PERFORMANCE. 2. All regions, with the exception of Canada, delivered organic growth. Adjusted

STABLE DSO AS COMPARED TO LAST YEAR7

87

76 77

82

87

Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016

Page 8: Q3 2016 results - WSPcdn.wsp-pb.com/w5qmpv/q3-2016-results.pdf · 2016-11-08 · Q3 2016 PERFORMANCE. 2. All regions, with the exception of Canada, delivered organic growth. Adjusted

FINANCIAL POSITION AND NET DEBT/TTM ADJUSTED EBITDA RATIO

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(in millions of dollars) Q3 2016Financial liabilities $1,081.9

Less: Cash and cash equivalents

($177.7)

Net debt $904.2

TTM Adjusted EBITDA $487.7

Net debt / TTM Adjusted EBITDA 1.9x

Net debt /TTM Adjusted EBITDA, incorporatingfull 12-month Adjusted EBITDA for all acquisitions

1.8x

In millions $, except ratio

Page 9: Q3 2016 results - WSPcdn.wsp-pb.com/w5qmpv/q3-2016-results.pdf · 2016-11-08 · Q3 2016 PERFORMANCE. 2. All regions, with the exception of Canada, delivered organic growth. Adjusted

*On a constant currency basis

Canada20%

Americas32%

EMEIA33%

APAC15%

REGIONAL PERFORMANCE

REGIONAL BREAKDOWN (% TOTAL NET REVENUES)

REGION

Q3 2016NET REVENUES ORGANIC GROWTH*

Q3 2016 ADJUSTED EBITDA MARGINS (before Global Corporate costs)

Americas 8.5% 17.6%

EMEIA 2.3% 11.4%

APAC 2.1% 11.3%

Canada (11.3%) 11.1%

TOTAL 1.7% 13.3%

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Page 10: Q3 2016 results - WSPcdn.wsp-pb.com/w5qmpv/q3-2016-results.pdf · 2016-11-08 · Q3 2016 PERFORMANCE. 2. All regions, with the exception of Canada, delivered organic growth. Adjusted

2016 OUTLOOK

* Non-IFRS measures are described in the “Glossary” section.1) The first quarter of 2016 has 2 less billable days than the first quarter of 2015.2) Due mainly to the MMM acquisition completed in Q4 2015 and anticipated additional real estate related integration costs pertaining to the transformational

Parsons Brinckerhoff acquisition in Q4 2014

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ORIGINAL 2016 TARGET RANGE NARROWED 2016 TARGET RANGE

Net revenues* Between $4,600 million and $5,100 million

Between $4,700 million and $4,900 million

Adjusted EBITDA* range Between $465 million and $515 million

Between $485 million and $500 million

Seasonality and adjusted EBITDA* fluctuations

Q1: 16% to 18%1 )

Q2: 24% to 26%Q3: 31% to 33%Q4: 28% to 30%

Tax rate 26% to 28%DSO* 80 to 85 days

Amortization of intangible assets related to acquisitions $75 to $80 million

Capital expenditures $115 to $125 million

Net debt to adjusted EBITDA* 1.5x to 2.0x

Acquisition and integration costs* Between $15 million and $25 million 2)

Page 11: Q3 2016 results - WSPcdn.wsp-pb.com/w5qmpv/q3-2016-results.pdf · 2016-11-08 · Q3 2016 PERFORMANCE. 2. All regions, with the exception of Canada, delivered organic growth. Adjusted

M&A UPDATE11

Year-to-date acquisitions 6 acquisitions 2,300 employees Financed using our balance sheet

Most recent acquisition, Mouchel, a leading UK pure play infrastructure firm Strengthens our presence in the UK public

infrastructure sector Strategically positions WSP to benefit from

upcoming opportunities in the UK public sector

Complements WSP's world-class transportation expertise in roads, highways and rail services.

Well-aligned with WSP's corporate culture, philosophy and strategy

Page 12: Q3 2016 results - WSPcdn.wsp-pb.com/w5qmpv/q3-2016-results.pdf · 2016-11-08 · Q3 2016 PERFORMANCE. 2. All regions, with the exception of Canada, delivered organic growth. Adjusted

QUESTIONS AND ANSWERS

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