CANADA AND THE

INFRASTRUCTURE

OPPORTUNITYHUGO BLASUTTA

PRESIDENT AND CEO, CANADA

3

A TRANSFORMED ORGANIZATION

2012

$577.2 M net revenues

4,900 employees

130 offices

Region-based structure

2016

$912.1 M TTM net revenues

8,300 employees

187 offices

Sector-based structure

6 ACQUISITIONS TOTALLING 4,270 EMPLOYEES, INCLUDING FOCUS AND MMM

CANADIAN OPERATIONS

TODAY, A “NEW” FIRM

01

5

A LEADING PROFESSIONAL SERVICES

FIRM IN CANADA

$912.1MTTM NET REVENUES

185 +OFFICES

8,300EMPLOYEES

At the end of Q2 2016, ended June 25, 2016

6

A REORGANIZED PLATFORM

TO PROVIDE NATIONAL ALIGNMENT

MPI (Mining, Power,

Industrial)INFRASTRUCTURE ENVIRONMENTBUILDINGSTRANSPORTATION OIL AND GAS GEOMATICS

1,050EMPLOYEES

1,850EMPLOYEES

1,855EMPLOYEES

1,175EMPLOYEES

605EMPLOYEES

350EMPLOYEES

605EMPLOYEES

CORPORATE TEAM

National strategy

Shared services

810 employees

7

RENEW

CANADA’S

TOP 100

Platinum Elite

Ranking on Canada’s

100 Biggest

Infrastructure Projects

(46 Projects)

FORBES 2016

Ranked one of

Canada’s Top 100

Best Employers

ASSOCIATION OF

CONSULTING

ENGINEERING

COMPANIES

Award of Excellence

2015

George C. King Bridge

Quartier Des

Spectacles

BUSINESS IN

VANCOUVER

Ranked 3rd Largest

Engineering Firm in

BC (Ranked 16 in

2015)

PRECAST/

PRESTRESSED

CONCRETE

INSTITUTE

Best Stadium/Arena

Toronto Pan Am

Sports Centre

TORONTO URBAN

DESIGN AWARDS

Award of Excellence,

Buildings in Context,

Mid-Rise

500 Wellington

GLOBAL BEST

PROJECT

AWARDS

Award of Merit

Wood Innovation

and Design Centre

George C. King

Bridge

ENGINEERS

CANADA

National Award for an

Engineering Project or

Achievement

Port Mann / Highway

1 Improvement

SUSTAINABLE

ARCHITECTURE

& BUILDING

Building

Canadian Green

Building Award

Kwayatsut

CORPORATE

KNIGHTS

Ranked 3rd most

Sustainable Company

in Canada (63rd

Globally)

AN AWARD-WINNING FIRM

Active in 44 of

Canada’s Top

Infrastructure

projects

A KEY PLAYER IN CANADA

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Active in 24 of

Canada’s Top

Infrastructure

projects

STANTEC

Active in 16 of

Canada’s Top

Infrastructure

projects

HATCH

Active in 27 of

Canada’s Top

Infrastructure

projects

GOLDER

Active in 26 of

Canada’s Top

Infrastructure

projects

SNC LAVALIN

Source – ReNew Canada – Top 100 Canada’s Biggest Infrastructure Projects - 2016

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A DIVERSIFIED SECTOR PRESENCE

23%INDUSTRIAL

& ENERGY

21%ENVIRONMENT

32%TRANSPORT AND

INFRASTRUCTURE

24%BUILDINGS

Based on 2015 net revenues

PROJECT MIX BY CLIENT

TYPE AND REVENUES

10

60%PRIVATE

40%PUBLIC

60%FIXED-FEE

40%FEE-FOR-SERVICE

Based on 2015 net revenues

11

NET REVENUES

517.2

689.1

805.5

912.1

2013 2014 2015 TTM 2016

In $M CAD

12

ADJUSTED EBITDA AND EBITDA MARGINS

Before Global Corporate Costs

69.3

97.593.3

97.513.4%

14.1%

11.6% 10.7%

2013 2014 2015 TTM 2016

Adjusted EBITDA Adjusted EBITDA margin

13

BACKLOG

175.9296.8

420.4 483.3

430.9

584.7

957.3961.3

2013 2014 2015 Q2 2016

Soft backlog Hard backlog

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DAYS SALES OUTSTANDING

90 8883

90

2013 2014 2015 Q2 2016

THE INFRASTRUCTURE

OPPORTUNITY IN CANADA

02

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ECONOMIC AND MARKET GROWTH DRIVERS IN

THE CANADIAN INFRASTRUCTURE MARKET

HISTORICAL UNDERINVESTMENT

IN INFRASTRUCTURE

GOVERNMENT COMMITMENT TO INFRASTRUCTURE

PUBLIC-PRIVATE PARTNERSHIPS

FOCUS ON SUSTAINABLE

INFRASTRUCTURE

UNDERINVESTMENT

IN INFRASTRUCTURE

◆ High profile public

infrastructure under-

investment has put the

general state of

infrastructure in the

public spotlight

◆ Multiple factors including

population growth,

resource development

and environmental

regulation are

collectively driving the

need for new and

improved infrastructure

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18

RATES OF REINVESTMENT ARE LOWER THAN

TARGETS RECOMMENDED BY ASSET

MANAGEMENT PRACTITIONERS

Source: Canadian Infrastructure Report Card, 2016

Target Reinvestment Rates vs. Current Reinvestment Rate

InfrastructureLower Target

Reinvestment Rate

Upper Target

Reinvestment Rate

Current Reinvestment

Rate

Potable Water (linear) 1.0% 1.5% 0.9%

Potable Water (not linear) 1.7% 2.5% 1.1%

Wastewater (linear) 1.0% 1.3% 0.7%

Wastewater (non-linear) 1.7% 2.5% 1.4%

Stormwater (linear) 1.0% 1.3% 0.3%

Stormwater (non-linear) 1.7% 2.0% 1.3%

Roads and sidewalks 2.0% 3.0% 1.1%

Bridges 1.0% 1.5% 0.8%

Buildings 1.7% 2.5% 1.7%

Sport and Recreation 1.7% 2.5% 1.3%

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GAP BETWEEN CURRENT AND

TARGET REINVESTMENT LEVELS

Summary of the physical condition of the infrastructure studied, by replacement value,

extrapolated to the entire country

Infrastructure

Extrapolated

Replacement Value of

All Assets

Asset in Very Poor

and Poor Condition

Replacement Value

Asset in Very Fair

Physical Condition

Replacement Value

Anticipated

Condition Based on

Reported

Reinvestment

Levels (Improving,

Stable, Declining)

Potable Water $207 billion $25 billion (12%) $35 billion (17%) Declining

Wastewater $234 billion $26 billion (11%) $56 billion (24%) Declining

Stormwater $134 billion $10 billion (7%) $21 billion (16%) Declining

Roads $330 billion $48 billion (15%) $75 billion (23%) Declining

Bridges $50 billion $2 billion (4%) $11 billion (22%) Declining

Buildings $70 billion $12 billion (17%) $20 billion (28%) Declining

Sport and Recreation $51 billion $9 billion (18%) $14 billion (27%) Declining

Transit $57 billion $9 billion (16%) $15 billion (27%) Unavailable

TOTAL $1.1 trillion $141 billion (12%) $247 billion (22%)

Source: Canadian Infrastructure Report Card, 2016

GOVERNMENT

COMMITMENT TO

INFRASTRUCTURE

◆ Federal government has

committed to $120 billion

in capital spending over

a 10-year period

◆ Federal government just

announced $1.5 billion in

new transportation

infrastructure funding

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GOVERNMENT COMMITMENT

TO INFRASTRUCTURE

PHASE 1

◆ $3.4 B over 3 years to upgrade transit

systems

◆ $5 B over 5 years for water, wastewater

and green infrastructure projects

ADDITIONAL INVESTMENTS

◆ $3 B annually for municipal infrastructure

projects

− Gas Tax Fund

− Incremental Goods and Services

Tax Rebate

◆ $9 B accelerated spending

of New Building Canada Fund

0

2

4

6

8

10

12

Public transit, green infrastructure

and social infrastructure

New Infrastructure Spending ($ billion)

Budget 2016 measures and future commitment

CANADIAN P3s

◆ Canada is a world leader in

P3 project delivery, with most

provinces now requiring that

P3 be at least seriously

considered as a condition of

provincial project cost sharing

◆ P3 procurement leads to

larger, longer-term projects,

increases the private sector

share of the spend and

accelerates infrastructure

spend compared with

conventional project delivery

◆ P3 has gained the most

acceptance in the Buildings

and Transportation markets in

Canada

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A RECOGNIZED PLAYER IN THE P3/DB MARKET

23

±15%Pro forma combined 2015

net revenues

24

P3 – DESIGN BUILD

RECENT WINS

01 MACKENZIE VAUGHAN HOSPITAL

◆ 120,000 square meter acute care hospital

◆ Civil/site services, mechanical, electrical,

sustainability and IT/security services

◆ Preferred proponent status with financial close in

Oct. 2014

◆ Design Build Finance and Maintenance project -

Construction cost: $700M to $800M

02 LAND BORDER SECURITY

◆ Planning Design and Compliance (PDC)

for Canada-wide project which involves

new construction and retrofit of ± 50 small

border crossing facilities.

◆ PDC scope started in Aug. 2016

◆ Construction cost: ± $440M

02

01

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P3 - DESIGN BUILD - MAIN PURSUITS

CURRENT PURSUITS PROJECT VALUE EXPECTED ROLE STAGE

PROJECTS WITH POSSIBLE FEES ABOVE $50 M

Metrolinx Electrification $6BEJV with Alstom as a sub

to Plenary Group Team

RFQ - 2017

RFP - 2018

REM Project (Montreal LRT) $5.5B Lead designerRFQ in progress

RFP Q4 2016

PROJECTS WITH POSSIBLE FEES BETWEEN $15 AND $50 M

Calgary Green Line LRT ±$3B Co-Designer RFQ Q1 2017

Broadway LRT ±$3B Negotiating with teams RFQ Q2 2017

Surrey LRT $2.18B Negotiating with teams Q3 2017

Gardiner Expressway ±2B Owner’s Engineer RFQ Q4 2016

Roberts Bank Terminal 2

Expansion

$2B Co-Designer RFQ Q1 2017

Ottawa LRT Stage 2 Extension $3B Designer Q4 2016

Hurontario LRT $1.6B Designer Q2 2017

St. Paul's Hospital $800M Negotiating with teams RFQ Q1/Q2 2017

427 Extension $300M Designer RFP Q4 2016

Preferred Proponent Q1 2017

Financial Close Q2 2017

FOCUS ON SUSTAINABLE INFRASTRUCTURE

◆ Historically, Canada has trailed other developed countries in green infrastructure development and environmental sustainability. Recently, government and private sectors have made green infrastructure an area of focus

◆ Federal government implemented the Green Infrastructure Fund and Gas Tax Fund. Permanent source of capital supporting sustainable infrastructure development in Canada for the foreseeable future

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LEED-EB*

We are responsible for 60% of buildings certified under LEED-EB (Existing

Buildings, which targets the operations & maintenance

phase of commercial buildings)

LEED-NC*

We have LEED-NC-

(New Construction) certified

over 1.2 M square meters

of new building projects

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60% 1.2M 90

LEED-CI*

We have LEED-CI-

(Commercial Interiors)

certified over 90 new

construction and commercial

interior projects

*Canada Green Building Council’s LEED rating system

GROWTH STRATEGY

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A WELL-DEFINED ROADMAP

2014-2015

ACQUISITION GROWTH

M&A

Revenue synergies

2016

NEGATIVE ORGANIC GROWTH

Integration

Business transformation

Economic downturn in Western

Canada

2017

FLAT ORGANIC GROWTH

Integration

Business process optimization

Cost synergies

Infrastructure program (pursuit

team building, active bidding)

Bottom line improvement

2018

ORGANIC GROWTH

Impact of infrastructure program

Business process optimized

Cost synergies completed

Bottom line improved

SECTOR-BASEDINITIATIVES

TRANSPORTATION

◆ Continue to grow

transit

◆ Expand

highways in BC

◆ Build port,

marine and

coastal

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SECTOR-BASEDINITIATIVES

INFRASTRUCTURE

◆ Grow water,

wastewater and

tie to P3 practice

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SECTOR-BASEDINITIATIVES

BUILDINGS

◆ Grow telecom,

data centre and

smart buildings

practice

◆ Grow sustainable

buildings practice

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SECTOR-BASEDINITIATIVES

ENVIRONMENT

◆ Expand

geotechnical

services in

Quebec

◆ Expand

environmental

planning and

ecology

◆ Continue to grow

air, noise and

vibration practice

33

SECTOR-BASEDINITIATIVES

MPI

◆ Expand wind,

hydro, dams and

electrical T&D

◆ Grow light

manufacturing

practice in

Ontario

34

SECTOR-BASEDINITIATIVES

OIL AND GAS

◆ Strategy to

maintain market

share

35

SECTOR-BASEDINITIATIVES

GEOMATICS

◆ Grow outside of

oil and gas into

infrastructure

sector

◆ Expand

geospatial

business

36

CORPORATEINITIATIVES

CORPORATE

◆ Optimize project

management and client

management systems

◆ Leverage cross-selling

initiatives

◆ Explore the use of CRC

centres

◆ Continue integration of

MMM

◆ Office consolidation

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IN CONCLUSION: 2017 IS A YEAR TO

SET CANADA FOR FUTURE GROWTH

Process enhancement to

improve business practices

Cost efficiencies

CLIETSPEOPLE EXPERTISE CLIENTS

Invest in talent, processes,

and relationships to gain

market share and become go-

to firm

Leverage new national

structure

Leverage MMM large project

experience to generate more

opportunities and success in

Canadian P3 and

Design/Build transportation

and infrastructure markets

Integrated urban

growth/infrastructure strategy

Cross-selling and expanded

service offerings

Continue move to more

complex and 'mission critical'

projects

MARGIN IMPROVEMENT

(>50 offices consolidation

or closure, resulting in

significant savings)

OPERATIONAL

EXCELLENCE

STRUCTURE

OPTIMIZATION

TOP 3

Design-Build Transportation

Infrastructure

Building

RECOGNIZED

TECHNICAL ADVISOR

Organic growth

Margin improvement

QUESTIONPERIOD

?

40

NOTES

41

NOTES