#1STN TSX NYSE > Stantec Q4 and Full-Year 2020 Earnings Presentation February 25, 2021 EXCELLENCE PEOPLE німоно NOVATION#22 Q4 2020 STN TSX-NYSE Cautionary Statement This presentation contains non-IFRS measures and forward-looking statements, including a discussion of our business targets, expectations, and outlook. We caution readers not to place undue reliance on our forward-looking statements since a number of factors could cause actual future results to differ materially from the targets and expectations expressed. For a discussion of risk factors and non-IFRS measures, see our 2020 Annual Report available on SEDAR, EDGAR, and stantec.com.#33 Q4 2020 M STN TSX NYSE Agenda Gord Johnston Opening Remarks Strategic Progress Business Performance Theresa Jang Q4 and Full-Year 2020 Financial Performance 2021 Targets Gord Johnston Concluding Remarks#44 Q4 2020 STN TSX-NYSE Executing our strategy DESIGN WITH COMMUNITY IN PEOPLE CLIENTS MIND EXCELLENCE GROWTH INNOVATION CREATING COMMUNITIES Adjusted EBITDA Margin 15.7% Adjusted EBITDA margin increased by 0.2% to 15.7% from 15.5% in 2019. Record Adjusted Diluted EPS $2.22 2020 Adjusted diluted EPS increased 9.9%. Backlog $4.4B Backlog grew organically by 3.1% year over year. (11 months of work.)#5LO 5 Q4 2020 STN TSX-NYSE Executing our strategy DESIGN WITH COMMUNITY IN PEOPLE CLIENTS MIND EXCELLENCE GROWTH INNOVATION CREATING COMMUNITIES Real Estate Optimization 30% RIVE 2023 Real Estate Strategy targets 30% reduction in existing real estate footprint Pano pines#66 LEADERS IN SUSTAINABILITY STN TSX NYSE We are a proven sustainability leader Net Zero Carbon neutral for 2022, then net zero for 2030 #5 Ranked fifth most sustainable corporation in the world Our Operational Pledge 2021 Corporate Knights Global 100 CDP (1) Score ISS ESG (2) Quality Score 2020 2019 2018 E S G A- A- A- 1 1 1 #1 Ranked most sustainable corporation in North America Sustainalytics (3) ESG Risk Rating Low Notes: (1) CDP Website - October 14, 2020 (2) ISS Sustainability Suite - February 5, 2021 (3) Sustainalytics website - January 7, 2021#77 Q4 2020 STN TSX NYSE Business Performance#88 Q4 2020 STN TSX-NYSE • • United States Gross and net revenue ($ millions) $3,000 $2,000 $2,688 Backlog $2,655 $1,948 $1,960 $2.5 Billion $1,000 $660 $600 $466 $440 $0 Q4 2019 Q4 2020 2019 2020 Gross Revenue Net Revenue Q4 Project Wins • Pure Water San Diego Phase 1 of the US$3 billion program to supply sustainable water to 1.4M people Design for 6 public schools In Prince George's County, Maryland 9 bridge and 2 roadway projects Including three bridges on the Maple River, North Dakota. Denver Water Administration Building LEED Certified Platinum Denver, Colorado, USA#99 Q4 2020 STN TSX-NYSE Canada $1,500 $1,000 Gross and net revenue ($ millions) Backlog $1,283 $1,239 $1,110 $1,074 $1.1 $500 $336 $319 $273 $267 $0 Q4 2019 Q4 2020 2019 2020 Gross Revenue Net Revenue Billion Q4 Project Wins ● 2 3 hospitals for $53 million in net revenue Including St Paul's Hospital in Vancouver, British Columbia Geotechnical Surveillance - Energy & Resources For $33 million in net revenue • 360 Transit Alliance A joint venture overseeing an estimated $28.5 billion in capital investment in Toronto's transit infrastructure Brentwood Town Centre - Phase One Burnaby, British Columbia, Canada#1010 Q4 2020 STN TSX-NYSE Global $1,000 $500 Gross and net revenue ($ millions) Backlog $856 $836 $654 $651 $0.8 Billion $214 $208 $162 $156 $0 Q4 2019 Q4 2020 2019 2020 Gross Revenue Net Revenue Q4 Project Wins • • • West Africa's Regional Transport Governance Project The European Commission selected Stantec to support Ghana in enhancing the stability and security of the movement of goods and people across West Africa SEQwater's Somerset Dam Dam improvement project in Queensland, Australia. ⚫ Kiritimati Island Port - With support of European Union Preparation and conceptual design of multi-purpose port. Warragamba Dam Warragamba, New South Wales, Australia#11Q4 2020 STN TSX NYSE Q4 and Full-Year 2020 Financial Performance 11 Theresa Jang - Executive Vice President and Chief Financial Officer#1212 Q4 2020 STN TSX-NYSE Q4 2020 Results Q4 2020 Q4 2019 Change Adjusted EBITDA and margin ($ millions, %) 17.3% 16.1% 15.8% 15.0% 14.6% % Year- (In millions of Canadian dollars, except per share amounts and percentages) Net revenue Gross margin $ $ over-year change $158 $143 $140 $143 $139 861.7 901.0 (4.4) 455.0 486.3 (6.4) Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Administrative and marketing expenses 317.5 348.5 (8.9) EBITDA from continuing operations (1) 141.3 140.0 0.9 Net income from continuing operations 14.9 42.4 (64.9) Adjusted Net Income and EPS ($ millions, $ per share) $0.62 Diluted earnings per share (EPS) from continuing operations $0.60 0.13 0.38 (65.8) $0.52 $0.49 $0.47 Adjusted EBITDA from continuing operations (1) 138.5 142.8 (3.0) $70 $67 $58 $52 $54 Adjusted net income from continuing operations (1) 67.0 52.3 28.1 Adjusted diluted EPS from continuing operations (1) 0.60 0.47 27.7 (1) EBITDA, adjusted EBTIDA, adjusted net income, and adjusted diluted EPS are non-IFRS measures discussed in the Definitions section of Stantec's 2020 Annual Report. Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020#13Q4 2020 STN TSX-NYSE 2020 Results Adjusted EBITDA and margin ($ millions, %) Adjusted Net Income and margin ($ millions, %) 15.5% 15.7% 6.8% 2020 2019 Change 6.1% $574 $579 % Year- $249 (In millions of Canadian dollars, except per share amounts and percentages) $ over-year change $225 Net revenue Gross margin 3,684.5 3,711.3 (0.7) 2019 2020 2019 2020 1,930.5 2,008.4 (3.9) Administrative and marketing expenses 1,352.9 1,433.6 (5.6) EBITDA from continuing operations (1) 573.3 576.0 (0.5) Adjusted Diluted EPS ($/share) Adjusted ROIC (%) Net income from continuing operations 159.1 194.4 (18.2) Diluted earnings per share (EPS) from continuing operations 1.42 1.74 (18.4) Adjusted EBITDA from continuing operations(1) 578.9 574.4 0.8 $2.22 $2.02 9.9% 9.1% Adjusted net income from continuing operations (1) 248.9 225.0 10.6 Adjusted diluted EPS from continuing operations (1) 2.22 2.02 9.9 13 (1) EBITDA, adjusted EBTIDA, adjusted net income, and adjusted diluted EPS are non-IFRS measures discussed in the Definitions section of Stantec's 2020 Annual Report. 2019 2020 2019 2020#14STN TSX-NYSE Balance sheet strength Net debt to adjusted EBITDA Q4 2020 14 - 2.5 2.0 1.5 1.0 10 59 Net debt to adjusted EBITDA(1) 0.7X at Dec 31, 2020 Target range 1.0 - 2.0x 1.3 1.1 1.0 0.8 0.7 0.5 0.0 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 79 Q4 2019 Days sales outstanding 86 Q1 2020 62 82 Q2 2020 22 82 Q3 2020 75 Q4 2020 (1) Net debt to adjusted EBTIDA and days sales outstanding are non-IFRS measures discussed in the Definitions section of Stantec's 2020 Annual Report. Net debt to adjusted EBITDA is calculated using debt at the end of the period divided by adjusted EBITDA for the trailing twelve months. 100 Days sales outstanding (1) 90 75 days at Dec 31, 2020 80 70 0 Target 90 days#15Q4 2020 STN TSX-NYSE Liquidity and capital allocation • $440 million Free cash flow $80 million in share repurchases • $300 million bond offering closed on October 8, 2020 Quarterly and TTM Free cash flow (1) ($ millions) $424 $453 $440 $328 $276 $204 $210 $191 $124 $(85) Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Capital returned to shareholders ($ millions) ● $800 revolving credit facility largely undrawn • 6.5% increase in annual dividend $49.4 $33.3 $64.3 $16.2 $16.1 $17.3 $17.2 $17.3 $17.3 $17.4 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 (1) Free cash (out) flow is defined as operating cash flows less capital expenditures and net payment of lease obligations. 15 Dividends (Past) Share Buybacks (Past) Dividends (Current) Share Buybacks (Current)#16STN TSX-NYSE 2021 Outlook Real Estate Strategy expected to contribute ~$0.10 to 2021 EPS 2021 Targets - Updated Geography 2021 Regional Outlook 2021 OUTLOOK 2020 Performance 15.7% Adjusted EBITDA (1) 14.0% 15.0% 16.0% 17.0% (% of net revenue) 6.8% United States Adjusted net income (1) 5.0% 6.0% 7.0% 8.0% (% of net revenue) 9.9% Adjusted Return on invested capital 8.0% 9.0% 10.0% 11.0% Canada 0.7x Net debt to adjusted EBITDA 0.0 1.0 2.0 3.0 (1) Adjusted EBITDA, adjusted net income, and ROIC are non-IFRS measures (discussed in the Definition section of our 2020 Annual Report) Global . • . Muted organic growth absent US stimulus spending Low single-digit organic growth • Muted economic growth Mid-single digit organic growth • Strong water market · Stimulus funds 16 2021 Adjusted diluted EPS expected to grow, on a percentage basis, by low to mid-single digits. 2023 Real Estate Strategy, continued strong execution to more than offset ~$0.10/share from Q4 2020 non-recurring items.#1717 Q4 2020 STN TSX NYSE Concluding Remarks Gord Johnston - President and Chief Executive Officer#1818 Q4 2020 STN TSX-NYSE Committed to our strategic targets for 2023 Net Revenue >10% CAGR Adjusted Earnings per Share >11% CAGR Adjusted EBITDA Margin 16-17% Of Net Revenue Adjusted Return on Invested Capital >10% DESIGN WITH COMMUNITY, PEOPLE EXCELLENCE CLIENTS GROWTH INNOVATION REATING COMMUNITI Maximizing long-term, sustainable value through our value creators#1919 Q4 2020 STN TSX NYSE BURTON Q&A