Capital Markets Overview & Strategic Monetization Transactions
•
Why Invest in Aecon?
POSITIONED TO HARNESS OPPORTUNITIES THAT ARE EXPECTED TO
COME WITH THE TRANSITION TO A NET ZERO ECONOMY
Favourable
Demand Environment
*
Diversified & Resilient
Business Model
Shareholder
Value Creation
CONSOLIDATED*
CONSTRUCTION
CONCESSIONS
$4.8B
$4.7B
TOTAL REVENUE*
NEW AWARDS*
$6.2B
BACKLOGⓇ
ADJ. EBITDA*@ $141M
$92M
$89M
(at Sep 30, 2023)
OPERATING
PROFIT**
$242M
$54M
$177M
Significant level of infrastructure investment underway across
Aecon's focus areas
Positive population and immigration dynamics helping to drive
demand
Transition to net zero economy creating opportunities in both
public and private sectors
Canada's exposure to resources sector driving additional
demand in private sector
Significant opportunities through Inflation Reduction Act (IRA)
and Bipartisan Infrastructure Law (BIL) in the U.S.
Historically, government investment in infrastructure has
been a key source of stimulus in economic slowdowns
•
.
Diversified projects by geography, sector, contract size and
type in Construction segment
•
~900 discrete projects underway with average project
size $25 million
•
Growing number of projects in Concessions portfolio
•
•
Recurring revenue base adds further stability and growth
opportunity to business mix
54% of Q3 2023 TTM revenue from non-fixed price contracts
versus 49% of Q3 2022 TTM revenue
Positioned to harness expected opportunities linked to
sustainability and the transition to a net zero economy
•
•
9%
10 YEAR
DIVIDEND
CAGR
60%
OF 2022
REVENUE TIED TO
SUSTAINABILITY
PROJECTS#
71%
OF BACKLOG
TIED TO
SUSTAINABILITY
PROJECTS#&
History of regular dividend increases
ACQUISITIONS
8
IN THE ENERGY
TRANSITION
Strategic investment in Aecon Utilities in Q3 2023 by Oaktree to
drive growth across utility end-markets in Canada and the U.S.
and valuing Aecon Utilities at $750M (~ 9.3x TTM Adjusted EBITDA
multiple)
Strategic disposition of Aecon's Transportation East ("ATE")
business in Q2 2023 at a ~8 - 9x TTM Adjusted EBITDA multiple @2
Growth in Concessions and O&M portfolio provides future
revenue generating opportunities
Focused on sustainability, including 30% GHG reduction target on
an intensity basis by 2030 as compared to 2020 and net zero
target by 2050
Q3 2023 Trailing Twelve Months ("TTM").
* Consolidated operating profit includes gains related to the sale of Aecon Transportation East ("ATE") ($36.5 million) and the
sale of a 49.9% interest in the Bermuda International Airport concessionaire of $139 million, including a fair value
remeasurement gain of $80.4 million on Aecon's 50.1% retained interest in the concessionaire, reported in the Concessions
segment.
+ After corporate costs and eliminations.
ACCON Compound Annual Growth Rate ("CAGR") of annual dividend from 2013 to 2022.
& September 30, 2023
This is a non-GAAP financial measure. Refer to page 2 in this presentation.
Σ Represents the implied $750 million enterprise value for Aecon Utilities divided by Q2 2023 TTM Adj. EBITDA of $80.4M.
2 Represents the implied $235 million enterprise value divided by 2022 Adj. EBITDA.
# Sustainability projects help to preserve and protect the environment, but also help to preserve the ability of society to sustain itself. Including but not limited
to projects that: reduce emissions, support the transition to a net-zero economy, support clean water use and conservation, and reduce/recycle waste.
* Strategic, tuck-in acquisitions made over the past four years related to clean energy and transition to a net zero economy through decarbonization.
* Intensity based targets are based on economic output and represent tonnes of CO2 per million dollars of revenue.
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