Investors Presentation October 1, 2016

Transcription

1 Investors Presentation October 1, 2016 Publication: November 15, 2016

2 Caution regarding forward-looking statements and non-ifrs measures Caution regarding forward-looking statements This presentation may contain forward-looking statements, which include, but are not limited to, statements with respect to the Corporation s growth strategy, costs, financial position and financial results, economic and business outlook, prospects and trends of the Corporation s industry segment, expected growth in demand for products and services, the dates of expected or scheduled deliveries, orders and project execution in general, objectives, projects, targets, priorities, business strategy, and the expected impact of legislative and regulatory environment and legal proceedings. Forward-looking statements generally can be identified by the use of forward-looking terminology such as may, will, expect, intend, anticipate, plan, foresee, believe, continue or maintain, the negative of these terms, variations of them or similar terminology. By their nature, forward-looking statements require the Corporation to make assumptions and are subject to important known and unknown risks and uncertainties, which may cause actual results in future periods to differ materially from forecasted results. While the Corporation considers its assumptions to be reasonable and appropriate based on information currently available, there is a risk that they may not be accurate. Readers should not place undue reliance on forward-looking statements. Factors that could cause actual results to differ materially from those anticipated in the forward-looking statements include in particular the risks and uncertainties described in the Corporation's 2015 Annual Report in the section entitled Risks and Uncertainties. The forward-looking statements contained herein are made as of the date hereof and are subject to change thereafter, and the Corporation has no intention and undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable securities regulations. Non-IFRS measures Even though Adjusted Earning Before Interest, Taxes, Depreciation and Amortization (Adjusted EBITDA), Adjusted gross margin and net debt are non-ifrs measures, they are used by managers, analysts, investors and other financial stakeholders to assess the Corporation s performance and management from a financial and operational standpoint. Non-IFRS measures used by the Corporation to measure operational performance and management include Adjusted EBITDA and Adjusted gross margin. Management also uses net debt to assess the Corporation's debt level, cash position, future cash needs and financial leverage ratio. Refer to the Non-IFRS measures section of the Corporation s 2015 Annual Report for the definition of these indicators. 2

3 Canam Group Plants (23) Largest North American manufacturer of steel components for the construction industry Calgary, AB Revenues Canada 64% $398M United States 33% $207M Other 3% $21M 29% $463M 71% $1,140M 0% $4M Total $626M $1,607M Sunnyside, WA two plants Mississauga, ON Shawinigan, QC Québec, QC St-Gédéon, QC Boucherville, QC Laval, Qc Claremont, NH Employees Canada 1,484 1,898 Buckeye, AR Washington, MO Peru, IL Winston-Salem. NC two plants Scottdale, GA South Plainfield, NJ Point of Rocks, MD Kinston, NC United States 628 1,911 Other Total 2,476 4,269 Jacksonville, FL Daytona Beach, FL Orlando, FL Fort Lauderdale, FL 3

4 Projects Break-Down Since 1961, design and fabrication of customized construction products and solutions Approximately 10,000 construction projects annually, mainly in North America ,035 projects 14% 78% 8% 25 tons or less tons over 100 tons 4

5 Canam Group focuses on design, manufacturing and installation of customised construction products and solutions in three group of products and services: Buildings Structural Steel Bridges Design, fabrication and installation of products for the construction of buildings for commercial, industrial, institutional and multiresidential projects Preconstruction service, project management, fabrication, and installation of structural steel components for complex and highly technical projects in the industrial, commercial and institutional sectors Design, fabrication and installation of steel bridges, structural bearings, expansion joints and related products for highway, railway and industrial markets Canam Group also offers complementary services, including virtual design and construction, building information modelling and outsourcing of technical drawings 5

6 Marmen - Expansion Trois-Rivières, QC, Canada Metrobus Quebec, QC, Canada Lumino Calgary, Alberta, Canada CONFIDENTIAL 6

7 The Tower at PNC Plaza Pittsburgh, PA, United States Designs, manufactures and installs products involved in the construction of commercial, industrial, institutional and multi-residential building projects Focuses its efforts on value-added products and services and projects with enhanced profit margins Aims to take advantage of an increased activity in the non-residential construction market in the United States and expand its presence in new market segments in Canada Developed the BuildMaster approach which accelerates overall construction process, guarantees on schedule deliveries, enhance safety on site and lower risk and predictability CONFIDENTIAL 7

8 BMO Field Toronto, ON, Canada Mercedes-Benz Stadium Atlanta, GA, United States Arthur Ashe Stadium/ Retractable Roof New York, NY, United States Rogers Place Edmonton, AB, Canada CONFIDENTIAL 8

9 Designs, manufactures and installs structural steel components for complex and highly technical projects in the industrial, commercial and institutional sectors Hudson Yards/Tower C New York, NY, United States Focused on large-scale and highly complex projects, which generate returns from preproject consultation services, manufacturing and installation of structural steel components Involvement in the project design phase allows Canam Group to stand out from its competitors very early in the contract award process and hence secure engagement in more projects earlier than the traditional schedule would allow CONFIDENTIAL 9

10 Lynden Pindling International Airport Nassau, Bahamas Baha Mar Convention Center Nassau, Bahamas Miami Zoo Amphitheater Miami, FL, United States IKEA Store Sweetwater, FL, Unites States CONFIDENTIAL 10

11 Contrary to Canam-Heavy, FabSouth specializes in light structural steel production and is a leading manufacturer and installer of structural steel in the U.S., with 8 plants located across Florida, North Carolina, Georgia and Washington State Benefits from strong experience and expertise in the manufacturing processes and very tight cost management FabSouth strives to broaden its product and service offering CONFIDENTIAL 11

12 Burgoyne Bridge St. Catharines, ON New Champlain Bridge Corridor Project Montreal / Brossard, QC East River Bridge Sheet Harbour, NS Goethals Bridge Elizabeth, NJ / Staten Island, NY, United States CONFIDENTIAL 12

13 Largest steel bridge manufacturer in Canada - designs, manufactures and installs steel bridges, structural bearings, expansion joints and related products for highway, railway and forestry markets The Corporation promotes its installation and construction services and its expertise in the railway market, which differentiates it from the competition Canam Group enjoys stable demand in Canada and growing demand from structural projects in the U.S., which has allowed it to accumulate a healthy backlog of orders The bridge rehabilitation market provides additional opportunities for future expansion The Corporation operates bridge manufacturing facilities in Canada (Quebec City and Laval, QC) and in the U.S. (Claremont, NH and Point of Rocks, MD) Highway 407 East Project (W19) Whitby, ON, Canada CONFIDENTIAL 13

14 Backlog CA$ Millions 11% Canada United States 1,007 1,118 1,058 1,234 1,183 1,159 1,248 1, % 78% 81% 64% 67% 67% 65% 67% 65% % 22% 36% 33% 35% 33% 35% Dec 09 Dec 10 Dec 11 Dec 12 Dec 13 Mar 14 Jun 14 Sep 14 Dec 14 Mar 15 Jun 15 Sep 15 Dec 15 Mar 16 Jun 16 Sep 16 14

15 Financial Information 2009 to 2015 Revenues CA$ Millions ,028 1,233 1,607 Adjusted EBITDA¹ CA$ Millions 7.8% % % (17) 6.3% % 6.4% % ¹Non-IFRS measure. Refer to the non-ifrs measures section. Net Earnings (Loss) CA$ Millions Net Earnings (Loss) Per Share (33) (0.72) 15

16 Financial Information 2010YTD Q3 to 2016YTD Q3 Revenues CA$ Millions ,113 1,370 Adjusted EBITDA¹ CA$ Millions 3.0% % % % % % 10 (30) 2010YTD Q3 2011YTD Q3 2012YTD Q3 2013YTD Q3 2014YTD Q3 2015YTD Q3 2016YTD Q3 2010YTD Q3 2011YTD Q3 2012YTD Q3 2013YTD Q3 2014YTD Q3 2015YTD Q3 2016YTD Q3 ¹Non-IFRS measure. Refer to the non-ifrs measures section. Net Earnings (Loss) CA$ Millions (11) Net Earnings (Loss) Per Share 0,69-0,05-0,79 0,22 0,49 0,37-0, YTD Q3 2011YTD Q3 2012YTD Q3 2013YTD Q3 2014YTD Q3 2015YTD Q3 2016YTD Q3 (36) 2010YTD Q3 2011YTD Q3 2012YTD Q3 2013YTD Q3 2014YTD Q3 2015YTD Q3 2016YTD Q3 16

17 Financial Information Receivables and Inventories in CA$ Millions Receivables and Costs and estimated profits in excess of billings Inventories Q3 Receivables and Costs and estimated profits in excess of billings / Revenues TTM 19.2% 30.6% 34.6% 30.2% 29.2% 32.7% 32.0% 31.7% 17

18 Financial Information Cash Flow and Working Capital in CA$ Millions Cash Flow From Operating Activities Working Capital ( 15) ( 59) ( 75) 1 excluding convertible debentures Q3 Working capital ratio

19 Financial Information in CA$ Millions Net Debt¹ on Equity Net debt Equity % % 49% 32% 40% 32% 47% Q3 ¹Non-IFRS measure. Refer to the non-ifrs measures section. 19

20 Capex, CA$ M Strategy Manufacturing Optimize capacity, improve productivity and increase innovation Integrated Building Solutions Value creation through expanded product and service offering Opportunistic Acquisitions Focus on price, anticipated rate of return and synergies e.g. acquisition of United Steel Deck in

21 Employees Strategy Lean Project Maintenance Optimisation Team "Knuckle Busters Claremont plant Innovation Before After Leadership Development Recruit, retain and train talented people 55 new industry veterans 3,358 3,467 3,396 3,631 3,975 4,269 4,

22 F 2017-F 2018-F F 2017-F 2018-F Non-Residential Construction Market Forecast (million sq. ft.) (million sq. ft.) U.S. market was 55% of the 2007 volume 2015 CAN market was 64% of the 2007 volume Source: CanaData Forecaster & Dodge Data & Analytics 22