Investor day 2021 - SNC-Lavalin

2

Agenda

8:30 am Welcome and Opening Remarks

Denis Jasmin

VP, Investor Relations

8:35 am Pivoting to Growth and Creating Value

Ian Edwards

President & Chief Executive Officer

9:10 am Engineering the Future

Philip Hoare

President, Engineering Services (CA, UK&E, ME)

9:40 am Leveraging Our Capabilities to Drive Growth

Steve Morriss

President, Engineering Services (US, APAC, M&M)

10:05 am Q&A Session

10:35 am Break

10:40 am Driving Profitable Growth in O&M and Capital

Stéphanie Vaillancourt

President, Capital & O&M

11:00 am Capitalizing on Our Leading Nuclear Expertise

Sandy Taylor

President, Nuclear

11:25 am Delivering Results and Investing in the Future

Jeff Bell

Executive Vice President & Chief Financial Officer

11:45 am Closing Remarks

Ian Edwards

President & Chief Executive Officer

11:50 am Q&A Session

3

Forward-Looking Statements, Forward-Looking Financial Information and OutlookReference in this presentation, and hereafter, to the “Company” or to “SNC-Lavalin” means, as the context may require, SNC-Lavalin Group Inc. and all or some of its subsidiaries or joint arrangements or associates, or SNC-Lavalin

Group Inc. or one or more of its subsidiaries or joint arrangements or associates.

Statements made in this presentation that describe the Company’s or management’s budgets, estimates, expectations, forecasts, objectives, predictions, projections of the future or strategies may be “forward-looking statements”,

which can be identified by the use of the conditional or forward-looking terminology such as “aims”, “anticipates”, “assumes”, “believes”, “cost savings”, “outlooks”, “estimates”, “expects”, “goal”, “intends”, “may”, “plans”, “projects”,

“forecasts”, “should”, “synergies”, “target”, “vision”, “will”, “likely”, or the negative thereof or other variations thereon. Forward-looking statements also include any other statements that do not refer to historical facts. Forward-looking

statements also include statements relating to the following: i) future capital expenditures, revenues, expenses, earnings, economic performance, indebtedness, financial condition, losses and future prospects; ii) business and

management strategies and the expansion and growth of the Company’s operations; and iii) the expected additional impacts of the ongoing COVID-19 pandemic on the business and its operating and reportable segments as well as

elements of uncertainty related thereto. All such forward-looking statements are made pursuant to the “safe-harbour” provisions of applicable Canadian securities laws. The Company cautions that, by their nature, forward-looking

statements involve risks and uncertainties, and that its actual actions and/or results could differ materially from those expressed or implied in such forward-looking statements, or could affect the extent to which a particular projection

materializes. Forward-looking statements are presented for the purpose of assisting investors and others in understanding certain key elements of the Company’s current objectives, strategic priorities, expectations and plans, and inobtaining a better understanding of the Company’s business and anticipated operating environment. Readers are cautioned that such information may not be appropriate for other purposes.

This presentation also provides, on Slides 23, 54, 61, 69, 80, 96, 105, 106, 107, 108, 110 and 112 the Company’s outlook regarding expectations of the Company’s performance with respect to certain financial metrics and measures.

Forward-looking statements, forward-looking financial information and the Company’s outlook for 2021 made in this presentation are based on a number of assumptions believed by the Company to be reasonable as at the date

hereof. The assumptions are set out throughout the Company’s 2020 annual Management Discussion and Analysis (“MD&A”) (particularly in the sections entitled “Critical Accounting Judgments and Key Sources of Estimation

Uncertainty” and “How We Analyze and Report our Results”) and as updated in the first and second quarter 2021 MD&A. If these assumptions are inaccurate, the Company’s actual results could differ materially from those expressed

or implied in such forward-looking statements, forward-looking financial information and outlook. In addition, important risk factors could cause the Company’s assumptions and estimates to be inaccurate and actual results or events

to differ materially from those expressed in or implied by these forward-looking statements, forward-looking financial information and outlook. These risk factors are set out in the Company’s 2020 annual MD&A as updated in the first

and second quarter 2021 MD&A.

Non-IFRS Financial Measures and Additional IFRS MeasuresThe Company reports its financial results in accordance with IFRS. However, the following non-IFRS measures, additional IFRS measures and other non financial information, are used by the Company in this presentation: Segment

Adjusted EBIT, Segment Adjusted EBIT to segment revenue ratio, Adjusted EBITDA, Segment Adjusted EBITDA to segment revenue ratio and free cash flow. Additional details for these non-IFRS measures can be found below

and/or in Section 9 of SNC-Lavalin’s MD&A for the second quarter of 2021, filed with the securities regulatory authorities in Canada, available on SEDAR at www.sedar.com and on the Company’s website at www.snclavalin.com

under the “Investors” section, including the various reconciliations of non-IFRS to the most directly comparable IFRS measures in sections 4, and 9.4 of the second quarter 2021 MD&A and in sections 4 and 13.3 of the annual 2020

MD&A. Free cash flow reconciliation to the most directly comparable IFRS measure is provided on Slide 101. Certain revenue figures and changes thereto from prior periods are analyzed and presented on a constant currency basis

and are obtained by translating financial results from the comparable periods of the prior year denominated in foreign currencies at the foreign exchange rates of the current periods. Non-IFRS financial measures do not have any

standardized meaning under IFRS and therefore may not be comparable to similar measures presented by other issuers. Management believes that, in addition to conventional measures prepared in accordance with IFRS, these

non-IFRS measures provide additional insight into the Company’s operating performance and financial position and certain investors may use this information to evaluate the Company’s performance from period to period. However,

these non-IFRS financial measures have limitations and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS.

http://www.snclavalin.com/

5

Integrated Partner

Delivering Innovative

Digital Solutions to

Transform Industry

The Company of Choice to Meet the Demands of the Future

Premier Professional

Services and Project

Management

Company

Leading Expert and

Thought-Leader in

Sustainability and

Engineering Net Zero

Hinkley Point C

Somerset, UKCDOT Traffic Engineering Contract

Colorado. US

Dubai Opera House

Dubai, UAE

6

Pivoting to Growth

Focusing on becoming a services-oriented organization primed for growth

Derisked the business

and divested non-core assets

Built and expanded

a team of world-class leaders

to execute new strategic

direction

Focusing on core

SNC-Lavalin

businesses and

returning to investment

grade rating and

positive FCF*

Leveraging industry

leading capabilities

and reputation to drive

growth in core markets

and services

GROW

STRENGTHEN

FIX

2019 2020 2021 2022 2023 2024+

*Non-IFRS financial measures. See the cautionary statement regarding Non-IFRS financial measures at slide 3.

7

Experienced Leadership Team Focused on Execution

Sandy TaylorPresident,

Nuclear

Joined: 2014

Stéphanie VaillancourtPresident,

Capital and O&M

Joined: 2016

Ian EdwardsPresident and

Chief Executive Officer

Joined: 2014

Bob Alger President,

Major Projects

Joined: 2020

Jeff BellExecutive Vice-President

and Chief Financial Officer

Joined: 2020

Charlene Ripley

Executive Vice-President

and General Counsel

Joined: 2019

Erik Ryan

Executive Vice-President,

Strategy, Marketing and

External Relations

Joined: 2013

Louis Véronneau

Executive Vice-President &

Chief Transformation Officer

Joined: 2020

Nigel White


Project Oversight

Joined: 2019

James Cullens


Human Resources

Joined: 20172

New to SNC-Lavalin within last 3 years

Philip HoarePresident, Eng. Services

UK, Europe, ME and Canada

Joined: 20171

Steve MorrissPresident, Eng. Services

US, APAC and M&M

Joined: 2021

1. Joined SNC-Lavalin following the 2017 Atkins acquisition, where he held several senior positions since 1997

2. Joined SNC-Lavalin following the 2017 Atkins acquisition where he was a board member from 2014

8

Experienced Board of Directors

Michael PedersenPresident and CEO,

TD Bank U.S. Holding

Company

(2013-2017)

Isabelle CourvillePresident,

Hydro-Québec Distribution (2011-2013)

Steven NewmanPresident and CEO

Transcocean(2010-2015)

Zin Smati, Ph.D.Former President and

CEO, GDF SUEZ Energy

North America

Benita Warmbold, FCPA,

FCA, ICD.D

Senior Managing Director

and CFO, Canada Pension

Plan Investment Board(2013-2017)

Ian Edwards

President and

Chief Executive Officer

SNC-Lavalin

Mary-Ann Bell

SVP, Bell Aliant Regional

Communications (2009-2014)

Christie Clark

CEO and Senior Partner,

PricewaterhouseCoopers (2005-2011)

Gary Baughman

Chairman and CEO,

APTIM (2017-2019)

William (Bill) Young

Co-founder,

Monitor Clipper

60%

70%

70%

80%

80%

80%

90%

100%

Board Leadership

Operations

Finance

International

M&A

New to SNC-Lavalin Board within last 3 years

B O AR D S K I L L S M ATR I X

Corporate Experience

Strategic Planning

Industry Experience

Board Attributes

Avg. Age 60

Gender Diversity 30%

Independent 90%

9

Our values are the essence of our company’s identity. They represent how we act, speak and

behave together, and how we engage with our clients and stakeholders

We put safety at the heart of everything we do, to

safeguard people, assets and the environment

Our Values

We do the right thing, no matter what, and are

accountable for our actions

We work together and embrace each other’s unique

contribution to deliver amazing results for all

We redefine engineering by thinking boldly, proudly

and differently

10

Attracting the Best Talent in the Industry

SNC-LAVALIN ATTRACTS THE BEST

TALENT IN THE INDUSTRY

› Track record, brand and organizational

purpose are key

› Committed to providing the best employee

experience

› Regional graduate & apprentice

programmes

› Industry-leading employee engagement

level

› Compensation based on a 30:70 ratio of

values and personal performance to

financial results

VOX survey – engagement increased + 5%

to 85% through COVID-19

EQUALITY, DIVERSITY & INCLUSION

Programmes, milestones/accomplishments

› Our employees speak ~70 languages

and represent 130 nationalities

› Target to increase female representation

in leadership positions to 25% by 2025

› Launching our new global ED&I

programme “Different makes a

Difference” in October

› Employee self-generated ED&I networks

cover Gender, Disability, Neurodiversity

Ethnicity, Black Americans, Generational

Diversity, Faith, Parenting / Carers,

LGBTQ+

Recruiting and retaining the best talent to deliver the best service to our clients

DEVELOPMENT

Delivering world-class professional,

managerial and leadership training and

development programmes globally

ETHICS

Recognized achievement of best-in-

class ethical standards (2021

Ethisphere Compliance Leader

Certification)

11

Successfully winding down our LSTK backlog with diligent risk management procedures

Regular C-Suite

project and business

reviews

Risk Appetite

Statement established

Strengthened

Commercial and Legal

oversight / support

Oversight Function

established providing

strong governance

Strengthened

Enterprise Risk

Management

Prudent approach to

report potential project

out-turns

> Improved predictability

> Consistent performance

> Improved profitability and

cashflows

> Improved transparency

> Independent governance and

Information

> Significant de-risking of the

business

> Improved understanding of

issues at corporate level

BENEFITS/OUTCOM ES

Stronger risk management procedures

Risk Oversight / Management

Jean Lesage Intl

Airport Expansion,

Quebec,

Canada

Reseau Électrique

Métropolitain (REM)

Quebec,

Canada

Thames Water

Reading,UK

12

Our Transformation Journey

Total Shareholder Return of 46% vs 33% for TSX1 since announcement of new strategic direction

July 2019

Announced new

strategic direction February 2020Jeff Bell appointed

CFO

October 2019Ian Edwards

appointed

CEO

July 2020Announced

Resources Business

Transformation

February 2021Announced provision

of legacy risk

June 2021EDPM backlog

achieves record

high

September 2021Announced new

organizational

structure to drive

growth

Ceased

bidding on

new LSTK

work

LSTK BACKLOG REDUCED FROM

$3.4B to $1.4BFROM JULY 2019 UNTIL JUNE 2021

ORGANIZATION REFOCUSED ON:

De-risking delivery of LSTK projects

Integrating capability in SNCL Services across

our core geographies

ENGINEERING SERVICES

Achieving record high EDPM backlog

Delivering on our goal of consistent profitability

and cash flows

Investing in digital innovation

and global capability

HEAVY LIFTING TO FIX AND STRENGHTEN

Exiting 15 non-core geographies

Divesting non-core businesses: Valerus,

European Fertilizer and South Africa

Launching transformation of cost base

to fit ‘go forward’ business

August 2021Closing of

Resources O&G

business sale

December 2019Settlement of

federal charges

June 2019Ian Edwards

appointed interim

CEO

1. Source: Bloomberg (assuming dividends are reinvested) covering the period from July 22, 2019 until August 30, 2021

13

Strategically Engineering Our Future

WHERE WE PLAYStrongly positioned with a leading

presence across Canada, the U.S.

and the UK, as well as targeted

operations in Europe, the Middle

East, Asia-Pacific and Latin America;

primary focus on built and natural

environment across seven clearly

defined end markets

HOW WE WIN Deploying global capabilities locally

to our clients and delivering unique

end-to-end services across the

whole life cycle of an asset, by

connecting people, data and technology

to meet the demands of the future

HOW WE GROW TO CREATE LONG-TERM VALUE

Leveraging the depth of our capabilities in strong, growing markets

consistently, delivering high quality services to our customers and

investing in organic and inorganic growth opportunities

One

SNC-Lavalin

Strategy

14

Serving Diversified End Markets with Focused Capabilities

~75%2020 Revenue

L E A D I N G

P R E S E N C E

( C A N A D A , U . S . , U K )

~25%2020 Revenue

T A R G E T E D

O P E R AT I O N S

( E U R O P E , M I D D L E

E A S T, A PA C A N D

L AT A M )

Transportation Buildings &

Places

Defence Water Industrial & Mining Power &

Renewables

Nuclear

MARKET LEADER

› UK Water Infrastructure

› UK Transport Infrastructure

› Canada Transport Infrastructure

› Canada Power and Renewables

› Canada Nuclear Technology

(CANDU)

› U.S. Nuclear Decommissioning

and Waste Management

GLOBAL CAPABILITIES

15

Fully Integrated Professional Services and Project Management Company

Well-positioned to drive growth with industry leading end-to-end capabilities

C O M PAN Y AN D F I N AN C I AL S TATS

H E A D Q U A R T E R S

Montreal, Canada

F O U N D E D

1911

2 0 2 0

T O T A L R E V E N U E

$7.0B

2 0 2 0

B A C K L O G

$13.2B

T O T A L

E M P L O Y E E S 2

~31,000

R E V E N U E ( H 1 2 0 2 1 )

B Y S E G M E N T

B AC K L O G ( A S AT J U N E 3 0 , 2 0 2 1 )

B Y R E G I O N

32%

17%30%

7%

14%

UK

Canada

U.S.

Europe

M A R K E T

C A P 1

$6.1B

C O U N T R I E S

S E R V E D

50

Other

59%13%

13%

8%7%

1%

LSTK projects

Capital

Engineering

Services

Nuclear

1. As at August 30, 2021 2. Excluding employees from the O&G business, for which the sale was completed in Q3 2021

Linxon

O&M

28%

6%

12%8%

45%

1%

LSTK projects

Capital

Engineering

Services

Nuclear

Linxon

O&M

16

NET ZERO CARBON 2030

Set annual targets, externally verified, with

annual updates published via the Carbon

Disclosure Project

Detailed routemap - key actions:

› Prioritizing low carbon real estate

› New travel policy

› Behavioural change across our

operations to increase digitalization

› Developing electric vehicle leasing /

rental with global travel providers

› Energy purchase contracts prioritizing

low and zero-carbon energy sources

› Interim targets on the path to 2030

CORPORATE SOCIAL RESPONSIBILITY

› Progressive Aboriginal Relations (PAR) Programme

› Local Resources Development Initiative (LRDI)

› Increase local workforce employability

› Encourage enterprise development

› Strengthen local supply chain

› Corporate Sponsorship & Donations

› Contribute to charities that support: Education,

Science, Vulnerable communities, Arts & Culture

› Corporate Volunteer Programme

› Includes time, funds, technology and In-kind

contributions

12 Key ESG targets and

commitments to align with

SNC-Lavalin’s commitment to

the UN Global Compact

Energy, water and raw materials

consumption, transport,

environmental pollution, health &

wellbeing, climate, biodiversity,

diversity, community, integrity

and human rights

›Socially and Environmentally Responsible

UN GLOBAL COMPACT

Workforce health and safety focus

› Pandemic resilience

› Mental and physical wellbeing

› Physiological safety

› Culture of ownership and no blame

› Clear HSE performance targets

17

Our ESG Journey

Created our

2030 Net Zero

Target routemapSigned UN

Sustainability

Initiative 2019

30%

of WOMEN across

the organization

Designated

3 UN SDGs1

ACCOMPLISHMENTS OBJECTIVES

25%of WOMEN among

senior leadership team

Maintain 30% of

board represented

by women

Reduce Scope 1, 2 and

3 GHG2 emissions by

60% by 2025

Increase use of

virtual realityfor site visits

Transition all existing

offices and facilities to

low carbon

alternatives

33% of women across

the organization

by 2025

Published

Engineering Net

Zero reports for

CA & UK

1. Sustainable Development Goals 2. Greenhouse Gas

18

Services

Operations & Maintenance

(O&M)

Capital

Capital

✓

S E G M E N TS 1

Linxon

Intelligent

Networks &

Cybersecurity

✓

How We Win

Nuclear

Procurement

✓

✓

✓

Operations &

Maintenance

(O&M)

✓

✓

Project &

Construction

Management

✓

✓

✓

Decommissioning

✓

✓

Design &

Engineering

✓

✓

✓

Consulting,

Advisory &

Environmental

Services

✓

✓

EN D - TO- EN D SERVIC ES C APAB IL IT IES

Engineering Services

✓

1. These represent the new reportable segments which will be effective on January 1, 2022, excluding the LSTK projects segment. See slide 102.

19

Leveraging Our Capabilities Across Attractive Markets and Geographies

One SNC-Lavalin approach differentiates our strategy

GLOBAL MEGA TRENDS

› Government commitment to

address aging infrastructure

in three main geographies

› Net Zero targets and

decarbonization efforts in

the UK and Canada with

emerging focus in the U.S.

› Industry ripe for disruption

and innovation

OUR UNIQUE CAPABILITIES

› Delivering end-to-end services

across all life cycle of an asset

› Established global leader in

infrastructure development

› Decades of pioneering the build-out

of low carbon electricity production

in Hydro, Nuclear and Energy

Transmission

› Substantial investment in digital

capabilities, technology, robotic

tooling solutions

GROWTH

› Well-positioned to capitalize

on infrastructure spending as

a partner of choice

› Ability to leverage unique

capabilities to address

rapidly increasing demand

for decarbonization and

Net Zero design

› Developing new opportunities

and enhancing current

processes through digital

integration

20

How We Grow to Create Long-Term Value

Well-positioned for organic growth in strong markets

Greater FCF* to deploy toward

strategic bolt-on acquisitions

Great set of capabilities to drive growth


21

Growing and Creating Value by Investing in Organic Growth

In a position to reinvest FCF* into strategic growth initiatives

Digital Transformation

› Pioneering new data driven

approaches for the delivery of design

across SNC-Lavalin to increase

predictability of construction

› Enhancing our programme

management delivery through data

driven decision making to lower risk

› Developing digital twin solutions to

improve certainty and whole life

value of assets

K EY GR OW TH AR EAS


U.S. Expansion

› Increased infrastructure

spending

› Proven ability to extend

our brand into new

markets

› Incremental growth

opportunities through

whitespace acquisitions

Major Programmes

› Opportunity to leverage our

unique end-to-end design

and delivery capabilities

› Risk-capped collaborative

contracting relationships

› Major competitive

differentiator and growth

opportunity in Canada

Nuclear Decommissioning

and Waste Management

› Strong demand in U.S.

and UK

› Leading reputation as a

responsible partner continues

to drive growth

› Substantial opportunities

as governments and public

sector clients focus on

waste management


22

1. U.S., UK and Canada 2. Transportation, Buildings & Places, Defence, Water, Industrial & Mining, Power & Renewable, Nuclear

Strategic Bolt-on Acquisitions to

Fuel Inorganic Growth

Accelerate our strategy through bolt-on acquisitions in highly attractive and profitable end markets

ST RAT EGIC F ILT ERS

Primarily core

regions1 and

end markets2

Bolt-on /

white space

opportunities

Expands

capabilities

Aligned

with overall

growth strategy

23

Financial Targets and Capital Allocation Priorities (2022-2024)1

*Non-IFRS financial measures. Refer to Section 9 of the Company’s Q2 2021 MD&A for Non-IFRS financial measures definition and reconciliation to IFRS measures. See also the cautionary statement regarding Non-IFRS financial measures at slide 3.

**Non-IFRS financial measures. See the cautionary statement regarding Non-IFRS financial measures at slide 3 and slide 101.

1. Reference is made to the Company's press release dated September 28, 2021, for details of the limitations of and assumptions underlying these financial targets. 2. Excluding the Federal charges settlement of $56M per year (2022-2024)

Capital Allocation Priorities

› Improve debt leverage to

achieve investment grade

› Prioritize positive FCF** to

accelerate the strategy

through organic and

inorganic investment

› Opportunistically return capital

to shareholders through

buybacks when there is a lack

of attractive bolt-on acquisitions

opportunities

O R G AN I C

R E V E N U E

G R O WTH

4-6%

S E G M E N T

AD J U S TE D

E B I T TO

S E G M E N T

R E V E N U E R ATI O *

8-10%

F C F * * O V E R

C O N S O L I D ATE D

AD J . N E T I N C O M E

C O N V E R S I O N

80-90%2

S N C L S E RV I C E S

( AN N U AL LY)


( B Y E N D O F 2 0 2 4 )

N E T L I M ITE D

R E C O U R S E &

R E C O U R S E D E B T

TO C O N S O L I DATE D

AD J . E B I TD A*

1.5-2.0x

24

Key Takeaways

Strongly positioned with a

leading presence across

Canada, the U.S. and the UK, as

well as targeted operations where

markets are strongly supported by

aging infrastructure demand and

government commitment.

Deploying global capabilities locally



whole life cycle of an asset and

leveraging our capabilities to meet the

demands of the future for our clients

in decarbonization and sustainable

solutions.

Creating value through the

breadth and depth of our

capabilities, consistently delivering

high quality services to our

customers, and executing a clear

investment plan that will enable

enhanced financial performance.

1 2 3

26

Key Messages | Engineering Services

1

2

3

5

Substantial depth and breadth of services in Engineering & Design, Projects &

Programme Management and Consultancy & Advisory Services

Strong global reputation provides a foundation for growth

Global Market Networks and Global Practices align and optimize our capabilities and

deliver best-in-class services

Well-positioned to accelerate Engineering Net Zero and grow market share

as clients embrace sustainability goals

4 Targeted investments in digital technology to transform the way assets are designed

and delivered

27

Engineering Services | Delivering Local Services on a Global Scale

R E V E N U E S E G M E N TATI O N 2

C L I E N T T Y P E

38%

31%

20%

10%

S E R V I C E L I N E

45%

21%

10%

10%

9%

3%

M A R K E T

1. Global Technology Centre – highly-skilled resources providing technical capabilities for global operations and project delivery 2. Based on H1 2021 figures

R E V E N U E AN D E M P L O YE ES B Y R E G I O N

Design

Consultancy

Project & Programme

Management

Other

Transportation

Buildings & Places

Defence

Water

Industrial & Mining

Renewable Energy

Other

U N IT E D S T AT E S

3.1K employees

$1.0B

U K & E U R OP E

9.4K employees

$1.8B

MID D LE

E AS T

2.1K employees

$0.4B

AS IA P AC IFIC

1.3K employees

$0.2B

C AN AD A

4.0K employees

$0.6B

IN D IA

2.0K employees

GT C 1

23K employees (as a t Aug. 31 ‘21)

$4 .2B R ev enue (2020)

23,000+ employees building strong relationships with clients

Record $3.6B backlog as of June 30, 2021

Public

Private

71%

29%

LAT AM

1.3K employees

< $0.1B

28

Delivering world class projects across 6 key end markets

Transportation Defence

Buildings &

Places

Water Power &

Renewables

Industrial &

Mining

John Hart Generating Station

British Columbia, Canada

Beckton Waste-Water Treatment Works

London, UK

Medicago Production Facility

Quebec City, Canada

Confidential Client Cyber Risk Assessment

Confidential Location

London 2012 Olympics

London, UK

Defence

Project NEON Urban Freeway Improvements

Nevada, USA

Transportation Defence

29

UK & E U R O P E $660M

Canada:

Greater Toronto Area

USA:

Biden

Infrastructure Bill KSA:

NEOM

UK: major projects

including HS2, East

West Rail and Lower

Thames Crossing

Total Prospect Pipeline*

(incl. 3+ years)

>$30BAustralia:

Increased

urbanisation in Sydney

and Melbourne

P R OS P E C T P I P E L I N E * ( $ B)

2.32.8

2.5

1.2

1.41.6

0.8

0.60.4

0.90.4

0.20.3 0.3

0.3

Oct21-Sep22 Oct22-Sep23 Oct23-Sep24

5.0

5.65.7

USAUK&E LATAMMECanada APAC

A Solid Pipeline to Underpin Future Engineering Services Performance

* Represents the Company’s estimation of the value of total identified prospects

30

Sustainable Competitive Advantages that Drive Growth

Comprehensive end-to-

end capabilities span all

aspects of project lifecycle and

differentiate our offerings

Leadership driven by a

collaborative culture with

significant industry experience

and deep expertise

Market-leading Global

Technology Centre in

India enables us to accelerate

digital adoption and enhances

our value proposition

Reputation for high-quality

engineering services

and deep, longstanding

relationships enable high

win rates in existing markets

1 3 42

Significant scale in

energy and power as

the world shifts toward

more sustainable

infrastructure

5Established leadership in

project lifecycle design as asset owners move toward

more comprehensive long-term

cost focus

6Focus on combining

expansive database of design and O&M metrics

with digital capabilities to drive value

7

31

Strategically Engineering Our Future

WHERE WE PLAY

Strongly positioned with a leading

presence across Canada, the U.S.

and the UK, as well as targeted

operations in Europe, the Middle

East, Asia-Pacific and Latin America;

with a primary focus on built and

natural environment across seven

clearly defined end markets

HOW WE WIN



end-to-end services across the whole

life cycle of an asset, by connecting

people, data and technology to meet

the demands of the future


Leveraging the depth of our capabilities in strong, growing

markets consistently delivering high quality services to our

customers and investing in organic and inorganic opportunities

One

SNC-Lavalin

Strategy

32

Qiddiya Six Flags Theme Park

King Salman Park Foundation

East West Rail

Engineering Services Snapshot (CA, UK&E, ME)K E Y P R O J E C TS

Canada Line

REM

East West Rail (UK)Project Management, Design

Delivery, Consents and Planning

Permissions, Risk Management,

Project Controls, Signalling

Construction, System Assurance

and Environment & Ecology

King Salman Park

(Kingdom of Saudi Arabia)Project management and

supervision consultancy

BC Hydro – Site C (CA)Detailed design, resident

engineering services, and

engineering management

MOD Engineering Delivery Partner (UK)Engineering and technical support to the

acquisition and on-going operation of UK military

equipment and systems

BC Hydro

BACKLOG

( AS AT JUNE 30, 2021)

$2.4B

Darwen Wastewater

Treatment Works

MOD

33

UK Client Partnership Focus Drives Value

Long-term client relationships deliver recurring revenue

Customer Name Type of Engagement Start of Engagement

Network Rail Rail engineering consultancy/design and signaling design & installation 1995

MoD (including AWE,

Babcock, DIO)

Project management, engineering consultancy/design and business change related

consultancy1990

EWR AllianceMember of project delivery alliance with responsibility for multi-disciplinary design

and design management of Phase 2 of rail project 2016

Thames WaterDiscipline engineering, asset management water resource planning, and

environmental assessment consultancy. Design for design and build delivery.1989

HS2Engineering Delivery Partner [and since 2020 Commercial Delivery and Controls

Partner] providing engineering, commercial and project management services and

resources

2012

~80%

TOTAL SALES WIN RATE1,2

KEY ACCOUNT PERFORMANCE SUMMARY

~$510M

ANNUAL TOTAL REVENUE (2020)1

1. Represents the selected 5 clients listed on this slide

2. From January 1 2021 to July 31 2021

34

Canada Client Focus Drives Value

Long-term client relationships deliver recurring revenue

Customer Name Type of Engagement Start of Engagement

Ministère des Transports du Québec

Various services including Consulting, Environment and

Geotechnical services, Design, Engineering, Project

Management and Construction Management services

1960

Société de Transport de Montréal 1991

Metrolinx 1991

Ville de Montréal 1967

BC Hydro 1974

~60%

TOTAL SALES WIN RATE 1,2


~$120M


1. Represents selected 5 clients listed on slide

2. From January 1 2021 to August 31 2021

35

GROWING VOLUME WITH CUSTOMERS THROUGH END-TO-END SERVICESDeveloped original business case for HS2 and updated it in 2008

Demand modelling, delivery strategy and BIM strategy for HS2

Preliminary design and

environmental consultancy

roles covering 70% of the

phase 1 route

Rolling stock technical advisor for phases 1 and 2a, re-secured for all phases in 2021

Engineering delivery partner for phases 1 and 2a

Commercial delivery partner (project controls and cost estimation) for phases 1 and 2a

2000-

2008

2012-

2015

2012-

20172015-

20212016-

2028

2020-

2028

Collaborative Contracting Case Study: High Speed 2 (HS2) Project

PROJECT DESCRIPTION

› ~$150B project delivers the first

high speed railway in the UK,

linking up London, the Midlands,

the North and Scotland

› Serving over 25 stations, including

8 of Britain’s 10 largest cities and

connecting around 30M people

› Phase 2b and the high-speed rail

link to Scotland beyond Crewe are

subject to further approvals

SNC-LAVALIN SOLUTION

› Developed and grew relationship with client since

2001 to a $60M+ revenue in 2020

› Developed technical standards for off-site build design

of bridges and viaducts to line speeds of 250 mph

› Over 2,000 staff deployed on HS2 since 2016

› In 2020, supported HS2 in becoming the first UK

Transport Sector client to achieve accreditation for

its carbon management system

Our journey with HS2 has taken us from professional services provider to strategic partner

36

Track Record of Successful Bolt-on Acquisitions

Strategic, bolt-on acquisitions to be considered going forward

Confluence Project

Management Pte. Ltd.

October 2010

3,500

Tampa, FL

Transformational U.S.

market entry and a key

step to being a global

engineering consultancy

October 2013

200

Singapore

Bolt-on acquisition in

strategic geographies as

part of expansion of project

management capability

November 2014

62

Oslo

Norwegian market entry with

project management capability

November 2017

70

Orlando, FL

Significant step in the

execution of our digital asset

management strategy

Improve our scale in well-funded

U.S. infrastructure market

ACQUISITION

CLOSE

# OF EMPLOYEES

HQ LOCATION

ACQUISITION

IMPACT/MARKET

CAPABILITIES

37

A Culture of Continuous Improvement

and Collaboration

1. Company’s Vox 2021 survey results

Established reputation and culture of SNC-Lavalin attracts top talent

› 88% of staff are proud to work for SNC-Lavalin and 85% would recommend

as an employer1

We value and recognize technical excellence

› Over 23,000 qualified staff delivering for clients

› Over 600 graduates hired in 2020

› Global Practice communities drive collaboration and connectivity to bring

value to our clients

Continued investment in skills and capability

› Over 10,000 staff have undertaken digital skills training in the last 12 months –

harnessing data and technology and use of our Global Technology Centre

› Suite of world-class leadership programmes (e.g., Executive Leadership

Programme with Saïd Business School, Oxford) delivers high performance culture

We aim to be the employer of choice in our sector and champion diversity,

inclusion and wellbeing, as recognized through various awards

38

OUR CREDENTIALS

Provide technical delivery

services including design,

identification of

decarbonization interventions

and priorities, as well as

programme and supply chain

management

UK Government Property Agency –

Net Zero Programme

First of a kind, low carbon

gas turbine technology.

Projects in UK and U.S. with

further opportunities as

global engineer on diverse

Carbon Capture & Storage

and Hydrogen projects

8 Rivers – Projects Broadwing & Whitetail

European Investment Bank (EIB) – Sustainable

Infrastructure Programmes

Research to inform EIB’s

Climate Bank Roadmap that

will guide €1T of investments

by 2030

Developed a data driven

model, coupled with Google

Cloud computing power, to

assess individual structure

flood risk in relation to flood

insurance rates across all 50

states & six territories of the

U.S. for 90M structures

US Federal Emergency Management Agency –

FEMA

Buildings & Cities Energy

Resilience Transportation

›As a leader in the design and delivery of the built environment, SNC-Lavalin has

a unique role to play in influencing what gets built, and how new technologies and

methods can be used to create and operate infrastructure assets, while minimizing

the impacts they have on society

We are committing to proactively shaping our client’s decisions and approach,

placing Engineering Net Zero at their core

Engineering Net Zero is at the Heart of Our Business

Our end-to-end service offering, underpinned by climate resilience & whole life carbon management

THE SCALE OF THE OPPORTUNITY

Energy supply and decarbonization of infrastructure

are our most significant growth opportunities

Energy: Over the next 3 decades well over $125T is required in clean energy investment1

› Nuclear $50B, Renewables $550B2

Buildings: a large proportion of the total global building

stock that will exist by the 2050 net zero deadlines

has already been built; 80% in the UK3

› Global Net Zero Buildings opportunity (retrofit of non-residential) of $850M over the next 4 years

(assuming 6% market penetration)4

OUR OFFERING

1.International Energy Agency, Net Zero by 2050: A Roadmap for the Global Energy Sector (2021)

2.International Energy Agency, Net Zero by 2050: A Roadmap for the Global Energy Sector (2021): ‘Sustainable Development Scenario 2015 – 2030’

3.UK Green Buildings Council, UKGBC responds to CCC housing report (2019)

4.International Energy Agency, Energy Efficiency Indicators (2020). CA$ 850M assumes a 6% market penetration for SNC-Lavalin for the global non-residential market over 4 years

39

OUR CREDENTIALS

Collaborative contracting and

delivery partnership. Flagship

for digital delivery leveraging

automation, reuse,

standardization, and digital

rehearsal. Budget reduced

by 19%

Routes to Market,

United Kingdom

Currently mobilising for

programme controls on one

of Riyadh’s four grand

projects. Leveraging

programme accelerator

methodology and advanced

analytics capability

King Salman Park,

Kingdom of Saudi Arabia

Design

Production System

Development of a product

to optimize design delivery

for improved connectivity

across the design and

construction phases

Strategic advisory services to

design and develop a digital

twin for a 16km rail

extension. Blueprint for

broader rail industry with

focus on optimizing O&M

performance. Est. $45M

operational savings

Canada Line,

Canada

Design Transformation Programme Management

Digital Twin Data Ecosystem

›As a leader in the design and delivery of the built environment, SNC-Lavalin has a unique role

to play in influencing what gets built, and how new technologies and methods can be used to

create and operate infrastructure assets, while minimizing the impacts, they have on society

We are embracing digital to bring unrivalled certainty to delivery and improved whole life value

for the assets we design, build and operate for our clients

Leading Industry Transformation by Combining

People, Technology and Data

The potential to transform infrastructure

delivery is significant with a new pipeline

of opportunities* in two of our focus areas:

OUR FOCUS

Design Transformation

Programme Management

Data Ecosystem

Digital Twin

1

2

3

4

OUR POTENTIAL

$1.3B

Programme

Management

$0.5B

Digital

Twin

Global infrastructure and services to connect and create value from data at scale

Connecting virtual and physical worlds for improved decision making and whole life asset value

A global service underpinned by advanced analytics for improved predictability of outcomes

A collaborative, data driven approach to design for improved quality and certainty of delivery

* Represents the Company’s estimation of the value of total identified opportunities

40

Addressing Market Needs with Focused Solutions

Leading reputation in design and delivery of assets is a launching pad for future global growth

M AR K E T D YN AM I C S N C - L AVAL I N AD VAN TAG E

› Public and private UK infrastructure investment

forecast to be nearly £650B to 20301 and Canada

infrastructure deficit in the range of $110-270B CAD2

› Strong momentum in decarbonization and

Net Zero trends

› Shift in contracting models to collaborative,

risk-balanced approach

› Clients are demanding greater use of technology

and data to improve on time and on budget delivery

› Established relationship with key government

clients positions SNC-Lavalin to drive

above-market growth

› Reputation and pioneering capabilities in

sustainable design have enabled early wins,

such as the Government Property Agency (GPA)

Net Zero and Life Cycle Replacement

› Ability to leverage our leading capabilities in

construction and asset delivery to create growth

from Transformational Programmes

› Digital transformation programme targeting

end-to-end delivery. Upskilling our people to

pioneer the change.

1. Infrastructure and Projects Authority (IPA), Infrastructure and Construction pipeline (2021)

2. Boston Consulting Group (2017)

4242

BACKLOG

(AS AT JUNE 30, 2021)

$1.2B

Florida Department of Transportation (FDOT)

Federal Emergency Management Agency (FEMA)

U.S. Army Corps of Engineers (USACE)

Colorado Department of Transportation (CDOT)

Central Texas Regional Mobility Authority (CTRMA)

Intel

Texas Department of Transportation (TxDOT)

City & Countyof Denver

Cobb County

Georgia Department of Transportation (GDOT)

Tung Chung Line (MTR

Corporation)

Sydney Metro

Inland Rail

Programme

Engineering Services Snapshot (U.S., Asia, Australia, M&M)K E Y P R O J E C TS AN D C U S TO M E R S

FDOT (US)General engineering consultant

services focusing on service,

responsiveness, and

innovation

Sydney Metro

(Australia)Integration and Delivery

Partner for Australia’s

largest public transport

project

US Army Corp of Engineers (USACE)Delivering for USACE at home and abroad

43

• Linxon is a company built on 100 years of technology expertise, and 60 years of

substation experience worldwide

• We combine Hitachi ABB Power Grids' deep technological knowledge and SNC-

Lavalin's project management expertise. Shareholder structure 51% SNC-Lavalin / 49%

Hitachi ABB Power Grids

• Linxon offers engineering, procurement, management and construction services for

large AC power substations in various segments – Renewable & Conventional Power

Generation, Transportation, Transmission Grids, Data Centers and Battery Energy

Storage

• Going for growth by building crucial infrastructure to reach net carbon zero targets

.

Leading Expertise in Substation Engineering MARKETS AND DRIVERS

• Organic growth >30% over last 2 years

• Backlog of $800M USD

• $14B USD addressable market

• Booming market – driven by addition of

renewable power and its integration to the

electrical grid

• Average project size: $20M to $50M USD

• Repeatable business with manageable

complexity

• Leveraging Hitachi ABB Power Grids products

• Over 50 projects awarded since September 1,

2018 with a value of $1.2B USD

• 600 employees across 3 global hubs

44

Why the U.S.? The Market

The U.S. is a very large and attractive market poised for growth

› $1T USD additional infrastructure package

voted at Senate2

› Additional $550B USD in infrastructure spending3

› State and local clients developing long-term,

lifetime cost approach to contracting

1. ASCE Infrastructure Report Card (2021)

2. US Senate website (August 10, 2021)

3. 2021 Bipartisan Infrastructure Investment and Job Acts

SIZ E › $5T USD infrastructure gap1World’s largest INFRA Market

GR OW TH Covid recovery stimulus

CLIENTS Value delivery and technical quality

R ETU R N S High profit and cash, low risk › Public sector clients are typically fair

and pay promptly

45

Why the U.S.? We Have Proven We Can Grow in the U.S.

Global leading reputation in design and delivery of assets has already created strong U.S. growth

› Market subject to the same macro trends

that we are benefitting from across the world.

Enhanced focus on climate change

› Present in only a fraction of end markets

and States

POSIT ION

› ENR ranking 17

› 3,100 employees1 with revenues2 of $1.0B

› >6,000 ongoing projects from >900 clientsStrong reputation, critical mass

M EGA T R EN D S

SHARE Low share of fragmented market

TRACK RECORD Our approach works › Proven organic growth. We are local market

leaders in areas we have focused on

Digital, decarbonization, partnering

1. As at August 31, 2021

2. For the period covering the full-year 2020

46

How Do We Win? Organic Growth Playbook

Leveraging success in developing and expanding relationships to drive further growth

STRATEGICALLY INVEST

1

DEVELOP TARGETED

RELATIONSHIPS

2

WIN BUSINESS

3

DELIVER SUCCESSFULLY

4

ESTABLISH TRACK RECORD

5

LEVERAGE OUR CAPABILITIES TO DRIVE FURTHER

EXPANSION

6

47

Organic Growth through “Land and Expand” Strategy

Proven ability to build market leading client relationships

~65%

TOTAL SALES WIN RATE2,3


Customer Name Type of Engagement

Start of

Engagement

5-Year Revenue

growth1

Florida Department of Transportation

Various services including General Engineering

Consulting, Planning, Environmental, Right of

Way services, Design and Project

Management and Construction Management

services

1960 53%

Texas Department of Transportation 1971 68%

Georgia Department of Transportation 1973 199%

Colorado Department of Transportation 1996 68%

Federal Emergency Management AgencyProgramme Management, Floodplain Mapping

and Mitigation, and Disaster Recovery services1999 93%

1. For the period from January 1, 2016 to December 31, 2020

2. Represent selected 5 clients listed on slide

3. For the year-to-date period from January 1, 2021 to July 31, 2021

~$360M CAD


48

CASE STUDY: Helping FEMA Advance Nationwide Disaster Resiliency

Evolution from technical provider to trusted partner

INDUSTRY NEED

› Help communities prepare for,

respond to and recover from

natural and manmade disasters

› Provide reliable and accessible

flood risk data & analysis

› Conduct post-disaster building

performance analysis

SNC-LAVALIN SOLUTION

› Innovation with cutting-edge solutions to

“old” problem sets

› “FEMA First” strategy to further solidify

SNC-Lavalin as FEMA trusted provider

› Evolve the Risk MAP programme

to digital mapping and modeling products

OUTCOME

› SNC-Lavalin as the Managing Partner of the STARR II JV won the Region 3 FEMA

Production and Technical Services (PTS) re-compete contract ($300M USD 5-year

framework contract)

› SNC-Lavalin Small Business Administration’s Mentor-Protégé JV won the new single-

award nationwide FEMA MT-2 contract ($97M USD 5-year framework contract)

49

FEMA CASE STUDY: How Did We Win?

Success through combining deep capability and strong client focus

WINNING CAPABILITIES

• Water Resources River and Coastal Engineering

• Geographical Information Systems (GIS)

• Environmental Scientists

• Geographers

• Data scientists

• Communications Specialists

• Mathematicians - Probabilistic Analysis

• Actuarial Specialists

• Programme Management

• Structural Engineering

• Mechanical Engineering

• Electrical Engineering

• Fire Engineering

• Architecture

• Planning (Mitigation Planners

• Geotechnical Engineer

CLIENT FOCUSED PROPOSITION

• Digital transformation proposal

• Flexible approach

• Reduced administration required by client

• Compelling transition plan

• Strong trusted team

• Delivery process innovation

• Identifying risks to the programme outside the

scope and proposing solutions

• Data management approach

• Programme knowledge

• Stakeholder management plan

• Partnerships with small businesses

• Recognition of insurance issues

• Proposed approach to training

• Depth of hydrogeologic models

• Alluvial expertise

• AICP Software expertise

50

Track Record of Successful Organic Growth

2017 2020 2017 2020

R EVEN U E

IN THE U .S . ( $B CAD)

SEGM EN T AD J. EB IT TO

SEGM ENT REVENUE RATIO*

IN TH E U .S . ( %)


51

U.S. Market Growth through White Space Opportunities

EXPANDING

SPACESeattle

New York City

Los Angeles

FUTURE

EXPANSIONChicago (Midwest)

Mid Atlantic

EXISTING

HUBS

52

Opportunity to Accelerate Growth –

Adding Value Through Acquisition

Clear acquisition targets available and confidence our approach means we can add value

› Fragmented U.S. market ripe for disruption

› Robust pipeline of attractive bolt-on acquisition candidates in key white space areas

› Targets in the market typically have attractive financial profiles with strong margins and growth prospects

› Ability to bring our leading, global end-to-end capabilities into the market through bolt-on acquisitions

› Collaborative culture with high-employee satisfaction and talent attraction position SNC-Lavalin as a strong M&A partner

› Focused on strategic acquisitions with clear synergies to accelerate growth

Billie Jean King National Tennis Center

New York (US)

54

Engineering Services | Measuring Success through Clear KPIs

Continuing to deliver high margins and strong cash flow in Engineering Services

$4.2B2020 REVENUE

$3.6BBACKLOG

(As of June 30, 2021)

11.0%BACKLOG GROWTH

(OVER PAST 2 YRS.)1

4-6%ORGANIC

REVENUE GROWTH

TARGET

8-10%SEGMENT ADJ. EBIT

TO SEGMENT

REVENUE RATIO*

TARGET

1. Covering 2-year period from June 30, 2019 to June 30, 2021


14-16%SEGMENT ADJ. EBITDA

TO SEGMENT NET

REVENUE RATIO*

TARGET

TARGETS 2022 -2024

(ANNUALLY)

55

Key Takeaways | Engineering Services

1

Substantial depth

and breadth of services

in Consultancy & Advisory

Services, Engineering &

Design and Projects &

Programme Management

2

Strong global

reputation provides

a foundation for

strategic growth

3

Global market

networks and

global practices

align and optimize

our capabilities

and deliver best-in-

class services

4

Targeted

investments in

digital technology

to transform the way

assets are designed

and delivered

5

Well-positioned

to accelerate

Engineering

Net Zero and grow

market share as

clients strive toward

sustainability goals

59

Key Messages | O&M

4 Develop long-term partnerships with clients to deliver carbon and energy

reduction programmesCO2

3 Targeting attractive P3 (Public Private Partnership) and related opportunities in

Canada, U.S. and UK

2 Opportunity to participate in outsourced O&M market and further penetrate the in-house

market through integrated asset and data management offerings, and digital innovation

1 Integrated One SNC-Lavalin Strategy, leveraging Engineering Services and Capital,

provides pathways to target revenue growth opportunities

5 Strategically aligned with Capital to focus on long-term contracting models that produce

stable cash flows and stakeholder value

60

O&M Snapshot

~900 employees dedicated to delivering high-quality O&M services

63%

22%

15%

BACKLOG (As at June 30 th, 2021)

22%

41%

37%

2020 REVENUE Transportation

› Highways and bridges

› Light rail transit systems

Facilities & Defence

› Full service of private and public social

infrastructure and commercial property

› Integrated services for a fleet of minor

warships and auxiliary vessels

Industrial

› Gas-fired power

› Water desalination

› Cogeneration power

› Hydroelectric power

■ Transportation

■ Facilities & Defence

■ Industrial

Operating Segments

■ Transportation

■ Facilities & Defence

■ Industrial

$5.8B$464M

61

Leveraging Decades of Expertise with New Strategic Direction for

Profitable Growth

1994 SNC-Lavalin

O&M begins as

ProFac Inc.,

acquired in 1997

by SNC-Lavalin

O&M strategy aligned

with new SNC-Lavalin

strategic direction;

began reestablishing

relationships with

contractors

2009 - 2016 SNC-Lavalin

O&M focused on facilities

and asset maintenance for

government and defence;

expands into large

integrated FM1/property

management portfolios;

adds several P3 contracts

2016 SNC-Lavalin O&M sells

Canadian FM1 (non-P3) business

and 19 French regional airport

management contracts

2017 Acquisition

of Atkins brings

asset management

expertise and suite

of technologies

applicable to

Intelligent O&M

2020 SNC-Lavalin

O&M generated

strong revenue and

Segment Adjusted

EBIT*, with a backlog

of $5.7B from 27

contracts

F U T U R E F O C U S

1998 SNC-Lavalin ProFac

rebrands to SNC-Lavalin

O&M Inc., reflecting the

expansion of non-FM1

operations and growing

portfolio of P3 projects

2013 Atkins sells

highways O&M

business and keeps

O&M participation

in M25 contract

2009 2017 202119981994 2013 2016 20171996

1996, Atkins

wins its first

highways

maintenance

services

contract

Targeting 4-6% annual organic

revenue growth (2022-2024)

through:

› Building upon

SNC-Lavalin’s platform

of P3 O&M and

services contracts

› Responding to our

client’s carbon reduction

goals and increasingly

digital asset management

by providing O&M of

complex infrastructure

1. Facilities Management


2019

62

Well-Positioned to Capitalize on O&M Market Trends

Decarbonization

and Net Zero

Access to SNC-Lavalin’s

broad capabilities and

expertise in carbon reduction

strategies positions O&M as

an ideal, integrated long-

term partner for attaining

Net Zero goals

•Digital Asset

Management

Premier asset

management advisory

capabilities, data

analytics, asset data

models and digital

solutions allow us to

innovate and shape

the future of

Intelligent O&M

•

Growing

P3 Market

Well-positioned to

capture significant P3

O&M opportunities in

Canada, U.S. and UK

through existing

partnerships and

industry leadership

•

Integration of

Outsourced

O&M/FM1

Deep understanding of

design and delivery of

assets and ability to deliver

full range of services

differentiates our services

and is a sustainable

competitive advantage

•


63

Forward Thinking Solutions to Accelerate Growth

WHERE WE PLAYStrongly positioned with a leading

presence across Canada and

targeted operations in the US, UK

and Middle-East, primarily focused

on the built and natural environment

across clearly defined end markets

HOW WE WIN Deploying global capabilities locally



whole life cycle of an asset, by

connecting people, data and technology

to meet the demands of the future


Deploying our strategy of: 1. Optimizing and leveraging our existing

contract base, 2. Continued pursuit of new P3 contracts, and 3. Combining

our asset management and digital capabilities with our O&M delivery skills to

capture “intelligent O&M” contracts.

One

SNC-Lavalin

Strategy

64

Expand key public sector client relationships by identifying

opportunities to build upon existing contracts through value enhancing

propositions and contract extensions

Introduce digital capabilities where opportunities exist to

optimize returns and reduce risk

Utilize existing base of O&M contracts to continue to collect asset

intelligence and demonstrate the success of our digital solutions

and reinforce our asset management advisory services

Our O&M contract

experience informs and

reinforces our consulting

practice and vice versa

O&M/FM1

delivery experience

Asset management

advisory


1. Optimizing and Leveraging Our Existing Contracts

65

› SNC-Lavalin’s P3 O&M/FM1 contracts have yielded higher-than-industry margins than on non-P3 O&M/FM contracts

› Robust pipeline of projects in Canada, U.S. and UK

› Investing equity alongside O&M enhances the overall return to SNC-Lavalin and provides better certainty of returns

› Natural alignment between Capital and O&M given the matching return horizons

2. Pursuing New P3 Opportunities

Continued joint pursuit of P3 and DBFM2 contracts, using Capital to secure O&M and Engineering Services scope 1. Facilities Management 2. Design, Build, Finance and Manage

66

Intelligent

O&M

O&M/FM1

Delivery

Experience

Asset Management

Advisory

Digital ToolsEngineering and Project

Management

Expertise

› Intelligent O&M is being able to provide smart infrastructure

management solutions

› It’s about increasing the sophistication of O&M activities, such as

introducing drones and augmented reality to help increase safety and

reliability of O&M services

› Leveraging Digital: Applying developments in Information

Management, BIM, IOT, AI and systems thinking

› Beyond Asset Management: Integrated manager of assets and data

Integrate


3. Intelligent O&M Contracts

67

Leveraging across client

relationships, including

complex assets and

systems, traditional sectors

and new assets

Helping clients achieve carbon

reduction goals through

integrated services that

optimize energy usage

3. Extending Beyond Consultancy into Intelligent O&M

Utilizing Intelligent O&M to create better outcomes for clients beyond current capabilities

Potential to

support:

› for better

decision

making

› for better

outcomes

Development of ‘intelligence’ in the

asset base

Ability of current client &

O&M organizations to respond

Time

Tech

nolo

gic

al A

dva

nce

Unused

Data

Becoming an integrated and embedded partner in the management of our client’s assets and data

Differentiated offering of multi-

year integrated asset and data

management contracts with

delivery of targeted, higher

value O&M or FM1 services,

or niche technical services

Uniquely positioned as a trusted partner

to ensure target outcomes are met

› Lower operating costs, improved reliability

and efficiency

› Creates incentive and outcome-based

relationships tied to client targets

› Early demonstration of savings can

help convert contracts into longer-term

relationships

1. Facilities ManagementSource: SNC-Lavalin internal research

68

CASE STUDY: Canada Line Rapid Transit System

Flagship P3 project demonstrating SNC-Lavalin’s integrated equity and operations and maintenance

OUTCOME

› Delivered >3 months ahead of schedule, well before 2010 Olympics

› Exceeding ridership forecasts since opening in 2009, over 50M boardings in 2019

› Operating performance is consistently achieving >99% system availability

› Partnering with client to accommodate capacity expansions, including increasing the vehicle fleet,

station improvements and addition of a new station

› Successful equity investment for SNC-Lavalin Capital, delivering above-bid equity IRR

CLIENT NEED

› A 19.5 km fully-automated and driverless

transit system connecting downtown

Vancouver to Richmond and Vancouver

Airport

› 16 stations, 2 bridges and 9 km of tunnels

› Completion ahead of the 2010 Olympics with

a total cost of $2B (2005);

› Delivery under P3 model (a first in Canada for

a transit system)

SNC-LAVALIN COMPREHENSIVE

SOLUTION

› Led the financing, design, delivery and the

operations and maintenance of the entire

system

› 35 years P3 contract

› Employing innovative maintenance

technologies, including remotely controlled,

autonomous rail-borne drones, and mixed

reality HoloLens 2 technology for training

technicians

69

Growing and Creating Value through O&M Opportunities

Multi-year contracts provide low-risk cashflows and are forecasted to provide Segment Adjusted EBIT to Segment Revenue ratio* of 5-7% from 2022-2024

Significant backlog of $5.8B1 of long-term contracts, providing high degree of visibility

O&M relationships create cross-selling opportunities and introduce clients to the full suite of services offered by SNC-Lavalin

O&M and Engineering Services are complementary and enhance the total value proposition of SNC-Lavalin

› Lessons learned can be leveraged in Engineering Services, and vice versa

The performance track record of O&M’s P3 contract portfolio enables SNC-Lavalin to access new P3 opportunities and creates entry points for Capital and Engineering Services

1. As of June 30, 2021


70

Key Messages | Capital

4 Capital is a key differentiator for SNC-Lavalin

3 Opportunities in P3 market driven by further increased infrastructure spending in

Canada, U.S. and UK

2 History of successful delivery and asset management of P3 projects across a broad

range of asset classes uniquely positions us to deliver future P3 projects

1 Asset and investment management expertise with a track record of increasing and

optimizing investment value across a range of asset types

71

AN ALYS T C O N S E N S U S FAI R M AR K E T

VAL U E V S . N E T B O O K VAL U E ( $ M )

Capital Snapshot

504

1,800

495

H407 ETR Other Assets

Net Book Value (as at June 30, 2021)

Sell-side Analysts Fair Market Value Consensus(as at August 30, 2021)

01

Capital has been an important strategic contributor to

SNC-Lavalin’s results, providing cash flow and profitability

Developing strategic partnerships with key contractors and equity

partners to provide access to future bid opportunities

› Established the SNC-Lavalin Infrastructure Partners fund in

2017 to partially monetize interests in select mature P3 assets

Managing a portfolio of 17 assets and currently pursuing

multiple P3 bids in Canada, U.S. and UK

Targeting IRR > 10%

1. The net book value of H407 ETR is $nil as the Company had previously stopped recognizing its share of the losses of H407 ETR when the cumulative losses and dividends resulted in a negative balance for the Company’s investment in that asset

72

Diversified Capital Investments Portfolio

Name DescriptionHeld

Since

Concession

YearsLocation

Equity

Participation

1. 407 EDGGP 32 km H407 East extension (Phase 1) 2012 33 Canada (Ontario) 50%

2. Carlyle Global Infras. Opportunity

Fund LPHolding investments in infrastructure projects 2018 n/a United States 4.5%

3. Eglinton Crosstown 19 km light rail line 2015 36 Canada (Ontario) 25%

4. Highway 407 ETR 108 km electronic toll road 1999 99 Canada (Ontario) 6.76%

5. Highway Concessions One PL Fund (Roads) 2012 n/a India 10%

6. InPower BC John Hart 126 MW generating station 2014 19 Canada (B.C.) 100%

7. Myah Tipaza Seawater desalination plant 2008 n/a Algeria 25.5%

8. Rideau Light rail transit system 2013 30 Canada (Ontario) 40%

9. SKH 1,227 MW gas-fired power plant 2006 n/a Algeria 26%

10. SSL New Champlain bridge corridor 2015 34 Canada (Quebec) 50%

11. TC Dôme 5.3 km electric cog railway 2008 35 France 51%

12. TransitNEXT 12 km light rail line 2019 30 Canada (Ontario) 100%

Ownership through SNC-Lavalin Infrastructure Partnership LP

13. Chinook 25 km six-lane road 2010 33 Canada (Alberta) 10%

14. InTransit BC Rapid transit line 2005 35 Canada (B.C.) 6.7%

15. MIHG McGill University Health Centre 2010 34 Canada (Quebec) 10%

16. Okanagan Lake Floating bridge 2005 30 Canada (B.C.) 20%

17. Rainbow Restigouche Hospital Centre 2011 33 Canada (N.B.) 20%

NBV1 = $504M FMV2 ~$2.3B 1. Net Book Value as of June 30, 2021

2. Consensus Average Fair Market Value per sell-side analyst calculations, as of August 30, 2021

73

Highway 407 ETR is a World-Class P3 Concession

› Unique asset with

attractive terms

› Significant flexibility

on toll rates

› 77 years remaining

in the concession

› Provides long-term

shareholder value

74

Positive Momentum for Highway 407 ETR as COVID-19 Restrictions Lift

Well-positioned for post-pandemic traffic rate and economic recovery

1. Including London, Sydney, Singapore, Retrieved from the Globe and Mail (July 2, 2021)

H407 ETR GROSS VEHICLE

KILOMETERS TRAVELED2

0

50

100

150

200

250

300

Jan Feb Mar Apr May Jun Jul Aug

2019 2020 2021

2. Source: 407 International Inc.

Kilometers (M)

› Rapid traffic recovery has occurred in major global cities where COVID-19

restrictions have been lifted1

› In some cases, congestion is worse than pre-pandemic levels partly due to

reluctance to use public transit

› High vaccination rates and lifting of restrictions bode well for accelerating volume

recovery

› Greater Toronto Area (GTA) economic rebound, Ontario GDP expansion and

favorable immigration trends are positive catalysts

› Congestion Payment (Schedule 22 Agreement)

› COVID-19 is considered a Force Majeure event

› Lower traffic volumes will not trigger the minimum traffic threshold payments

until a toll increase or when volumes reach pre-pandemic levels

75

›Project Development

initiatives with


and Nuclear

›P3 / DBFM1›Services

Contracts

›Performance

- Based

Contracts

›Intelligent

O&M

Contracts ›DBOM2

›O&M

›Capital

›Project

Management

Contracts

Key areas of Capital + O&M

collaboration

Capital is a key differentiator and

enables us to access and bundle

investment, O&M services and

engineering services roles in P3 projects

✓ Return horizon and partnership mindset

of Capital and O&M are strategically

aligned✓

›Capital + O&M Joint-Market Approach

Highlights

› Consistent contributor of EBIT

› Most of Capital’s investments

have delivered higher than bid

target equity returns

› SNC-Lavalin is the O&M/FM3

provider on 14 of Capital’s

investments

› Robust P3 and related model

project pipeline in core Canadian,

U.S. and UK markets

Capital and O&M help create synergies in the way we finance, operate and manage assets 1. Design, Build, Finance and Manage 2. Design, Build, Operate and Maintain 3. Facilities Management

76

Key Takeaways | O&M and Capital

1Long-term, focused

alignment of equity

investment and O&M

services and track record

of successful P3 delivery

position SNC-Lavalin for

continued access to

P3 projects

2Opportunities for further

value optimization and

demonstration of advanced

O&M solutions within

existing portfolio

3Well-positioned to become

an embedded, integrated

delivery partner through

multi-year integrated asset

and data management

contracts

4Capital is a key

differentiator within our

end-to-end solutions and

enables additional

business opportunities

in Engineering Services

and O&M

78

Key Messages | Nuclear

1

2

3

Well-positioned for growth with a stable base of long-term, low-risk and profitable contracts

with key, high-quality clients

Differentiated business enabled by proprietary technology, intellectual property and customized

product solutions, including advances in robotics, digital and waste reduction technologies

Highly responsible, innovative partner with technical expertise and globally recognized

talent pioneering solutions across the Nuclear value chain

4 Global initiatives for a carbon Net Zero future create significant opportunitiesCO2

79

Nuclear is Well-Positioned to Capitalize on Energy Market Trends

Waste

Management

Proven results

and reputation as a

responsible partner

provide a clear pathway for

sustained profitable growth

Available Electrical

Supply Must Increase

Decarbonization will

require governments

to increase the

electrical supply

available on the

grid by 2050

Life

Extensions

Decades of

expertise and

proprietary

capabilities in

servicing CANDU

reactors position

SNC-Lavalin for

decades of growth

in reactor support

and life extensions

Prompt

Decommissioning

Developing

industry leading

solutions which

dramatically reduce

timeframe

Increased

Importance Globally

Global sea-change in

the way governments

and society view the

importance of low-carbon

energy infrastructure

Integrated

Energy Solutions

Nuclear energy

supports and

complements the

development of

future alternative

fuel sources such

as hydrogen

80

1. Adjusted backlog is a non-IFRS measure and includes SNC-Lavalin’s proportionate share of the JV estimated contracted backlog over the duration of contract


Nuclear Snapshot

2 0 2 0 R E V E N U E

46% Canada

28% U.S.

25% UK, EUR, ME

1% Other

B AC K L O G B Y

S E RV I C E S ( $ M )

2Q2021 2Q2021 ADJ.

831

5,982

Decommissioning & Waste Management (DWM)

Reactor Support (RS) and Life Extensions (LE)

New Builds

B AC K L O G B Y L E N G TH

O F C O N TR AC T ( $ M )

Includes

share of

JVs

$929M

G L O B AL

E M P L O YE E B AS E

~8,000Employed

through JVs

~2,800Direct

Management

15.4%13.7%

15.1%

2018 2019 2020

H I S T O R I C A L S E G M E N T A D J U S T E D E B I T T O

S E G M E N T R E V E N U E R AT I O *

Targeting consistent 13-15% Segment Adjusted EBIT to Segment

Revenue ratio* while we continue to grow the business

4,673

1,309

2Q2021 ADJ.

5,982

1-5 Years

5+ Years

40% Derived from Decommissioning

& Waste Management

1 1

81

Recognized High Quality Nuclear Brand with Broad Capabilities

Benefitting from an integrated organization

Stewards of CANDU® technology

for over 60 years

Unique expertise for new builds

Extensive technology portfolio of

200+ active & pending patents to

address reactor life cycle and

Waste Management

Expertise in other reactor types,

broad services offering and

digital capabilities

Deep Decommissioning and

Waste Management capabilities

2004 2011 2017 2018 Today

SNC-Lavalin

Nuclear

Pre-2010 20152014

Nuclear

Safety

Associates

C O M B I N E D C APAB I L I T I E S

2019

82

Sustainable Competitive Advantages

Reputation as a

global leader in nuclear technologies

including CANDU OEM1

Owners and

developers of proprietary

nuclear technologies

Broad technical

capabilities and global

footprint enabled by

One SNC-Lavalin

Strong base of highly

talented engineers,

scientists and

technical staff

1 3 42

1. Original Equipment Manufacturer

Well-positioned in a market which has high barriers to entry

83

Culture of Excellence

› Continuous training on Culture of Excellence (e.g., communication,

affirmative responses)

› Commitment to the highest technical standards and operational excellence

helps us attract and retain the best nuclear engineers, scientists and

technical staff

› Decades of combined, institutionalized experience that cannot easily be

replicated

› Transfer of knowledge from retiring engineers to next-gen leaders

› Track-record of execution is key to our success

SNC-Lavalin is a highly trusted name in Nuclear

Secretary of Energy

Achievement Award

2020 Recognized for the work on Thorium

Express Project

Key supplier

84

Generating Growth in Nuclear

WHERE WE PLAY

Strongly positioned with a leading

presence in Canada and the UK

across the nuclear value chain, and

a strong presence in the U.S., with

a primary focus on Nuclear Waste

Management and Decommissioning

HOW WE WIN



end-to-end services across the whole

life cycle of an asset, by connecting

people, data and technology to meet

the demands of the future


Leveraging the depth of our capabilities in strong, growing

markets consistently delivering high quality services to our

customers and investing in organic and inorganic opportunities

One

SNC-Lavalin

Strategy

85

Focused Geographic Positioning and Technology Export

85

Decommissioning & Waste Management (DWM)

Reactor Support (RS) and Life Extensions (LE)

New Builds

Isotek

Hinkley Point C

CNL

Sellafield

Lingen

Darlington

and BruceHanford

Plateau

IPEC 1, 2, 3

~1,200

Employees

in Canada

~500

Employees

in the U.S.

~1,100

Employees in UK,

Europe and ME

Wolseong

Qinshan

CernavodaSizewell C

Whiteshell

Oak Ridge

Savannah River

ITER

Hinkley Point C

(UK)Major New Builds

Project

Darlington

(Ontario, CA)Major CANDU

refurbishment project

Oak Ridge

(Tennessee, U.S.)Major Waste

Management project

86

0

5

10

15

20

25

30

35

40

0 1 2 3 4 5 6 7 8 9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

29

30

31

32

33

34

35

36

37

38

39

40

41

42

43

44

45

46

47

48

# o

f re

ac

tors

Years of operation

ALL WAYS FORWARD

GENERATE OPPORTUNITIES:

Construction boom

of the ‘70/80s201 reactors between 30 and 40 years old

Construction boom

of the ’60/70s87 reactors over 40 years old

Number of reactors and years of operation1

3 WAYS FORWARD

FOR OWNERS:

Seek life extensions1

Enter “safe-store”

(deferred Decommissioning)2

Accelerate Decommissioning3

Safe-store: Project and planning work

connected to defueling, dry storage,

component drain down, waste processing.2

Life extensions: Major project work

such as plant upgrades, refurbishment

work, significant safety case work.1

Accelerated decommissioning: Full

project work to manage site closure,

with waste management challenges.3

Aging Reactor Fleet Creates Opportunities

1. Source: World Nuclear Association – Reactor Database

87

DecommissioningConsulting

& Advisory

Procurement Project &

Construction

Management

Operations

& Maintenance

Design

& Engineering

CapitalTechnology

Subsector Focused Approach to Nuclear

PR OVID IN G A C OM PR EH EN SIVE EN D - TO- EN D SERVIC E AN D TEC H N OLOGY OFFE R IN G

NEW BUILDS REACTOR SUPPORT (RS) &

LIFE EXTENSIONS (LE)

DECOMMISSIONING AND

WASTE MANAGEMENT (DWM)

› Field services, remediation, nuclear fuel

management, transportation and

environmental clean-up

› Industry-leading general decommissioning

contractor in the U.S. through CDI

joint venture

› Recognized USA Federal Tier-1 contractor

› Leading depth and breadth in the industry

› World leader in heavy water reactors as

OEM2 for CANDU

› Ensuring reactors fulfill expected life with

engineering, design, consulting, on-site

services, project management and

asset management

› Operate and revitalize National Labs

› Steward of CANDU nuclear technology

› Decades of major EPCM1 experience,

delivering end-to-end solutions from

offices around the world

› Collaborating with Small Modular

Reactor vendors to develop new

reactor technology

1. Engineering Procurement and Construction Management

2. Original Equipment Manufacturer

88

Decommissioning and Waste Management Subsector

U.S. - Department

of Energy &

US Army Corps

of Engineers

Nuclear Cleanup

Sites

U.S. - Commercial

Nuclear Sites

Canadian

Nuclear Sites

UK

Government

Sites

Commercial and Government Nuclear Sites

Sources: Retrieved from the US N.R.C., US Department of Energy, Government of Canada, EDF Energy, Nuclear Decommissioning Authority (NDA) websites

89

P&T1

for Decommissioning

and Waste

Management

P&T for Decommissioning

Digital Twins for optimized D&D2

Robotics for radioactive material handling

Remote site operations Containers for spent fuel and radioactive waste

Liquid radwaste treatment

Solid radwaste treatment and processing

P&T for Waste Management

1. Products and Technology

2. Decontamination and Decommissioning

Decommissioning and Waste Management Subsector Our Technologies Create Long-Term Relationships and Growth Opportunities

90

D&D IPEC 1, 2, 3 (CDI)

D&D Palisades (CDI)

2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034

DoE - Federal Government Contract - Porstmouth D&D

DoE - Federal Government Contract - West Valley

OPG Decommissioning of Pickering Power Plant NGS

DoE - Federal Government Contract - WIPP M&ODoE - Integrated Tank disposition contract (Hanford)

DoE - Hanford Central Plateau

DoE - Savannah R M&O

DoE - Oak Ridge Reservation

DoE - DUF 6

Sellafield Decommissioning Delivery Partnership (DDP)

D&D Oyster Creek (CDI)

D&D Pilgrim (CDI)

D&D Lingen

Federal Government Contract - CNEA / CNL M&O (2)

Isotek –-TerraPower Partnership (1)

DoE - Savannah River Integrated Mission Completion

Vulcan Decommissioning

In option**

Remaining adjusted

backlog* in existing

contracts

$6B

$2B

In bid /

negotiation /

development**

>$50B

Legacy CANDU reactors DecommissioningNDA accelerated Decommissioning of the Magnox / AGR fleet

DW

MR

S &

LE

Refurb. Darlington RFR combined execution and definition

Refurb. Bruce 6Refurb. Bruce 3



Quinshan Unit 1

Refurb. Cernavoda 1 - Phase 1 Design Modification contract awarded

Ne

w B

uil

ds

ITER - Engage Partnership extension (3)

Hinkley Point C Programme

Cernavoda Units 3 & 4

EDF Sizewell C Nuclear Power Plant

Multiple SMR proponents

Decommissioning and Waste Management Subsector Main Project Pipeline Provides Long-Term Visibility

* Adjusted backlog is a non-IFRS measure and includes SNC-Lavalin’s proportionate share of the JV estimated contracted backlog over the duration of contract ** Represents the Company’s estimation of the value of total contract options and total identified opportunities

Note: Federal and DoE contracts are typically bid as JV with partners; SNC-Lavalin receives 20% - 50% of JV net income 1. Isotek contract started in 2003 and was extended to 2026 2. Federal govt contract extended to 2025-2026

91

Enhancing Canadian skills & expertise in environmental remediation and cutting-edge science and technology

OUTCOME

› Rebuilding a 70 years-old nuclear campus to support 21st century science and technology;

executing the largest and most complex environmental remediation programme in Canada

› Reimagining the nuclear R&D mission in Canada focusing on emerging clean energy technology,

advanced radiopharmaceuticals and providing platform for Small Module Reactors

› Enhancing engagement and outreach to Canadian Nuclear Industry

› Option exercised by AECL in 2020 to extend contract through 2026, based on superior performance

Decommissioning and Waste Management Subsector Case Study | Canadian Nuclear Laboratories (CNL)

CLIENT NEED

› Lab modernization, environmental restoration

& waste management

› Growth of CNL Science & Technology Mission

› Leadership and management of over

3,000 employees

› Execute $1.1B target-cost/schedule contract

with AECL for Whiteshell Lab cleanup/closure

SNC-LAVALIN COMPREHENSIVE

SOLUTION

› Collaboration & Leadership: Deployed

SNCL Nuclear leadership from core regions

of UK, Canada, U.S.

› Innovation and Technology: Applied

solutions reducing legacy environmental

liabilities, growing CNL Science and

Technology missions, and sustaining

Canada’s nuclear industry viability

Photo © Canadian Nuclear Laboratories

92

P&T1

for Reactor Support &

Life Extensions

Retube Tooling Systems

Field Services Products Operations & Maintenance Software

Nuclear Steam Plant Components

1. Products and Technology

Reactor Support and Life ExtensionsOur Technologies Create Long-Term Relationships and Growth Opportunities

93


D&D Palisades (CDI)

2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034


DoE -Federal Government Contract - West Valley



DoE – Hanford Central Plateau



DoE - DUF 6



D&D Pilgrim (CDI)

D&D Lingen




Vulcan DecommissioningLegacy CANDU reactors DecommissioningNDA accelerated Decommissioning of the Magnox / AGR fleet

DW

MR

S &

LE





Quinshan Unit 1


New

Bu

ild

s






Reactor Support (RS) and Life Extensions (LE)Main Project Pipeline Provides Long-Term Visibility

Remaining adjusted


contracts

$6B

$2B

In bid /

negotiation /

development**

>$50B

In option**


94

New Builds Subsector

Collaborating with Small Modular and Advanced Reactor

vendors to develop new reactor technologies

1. Engineering, Procurement and Construction Management

Decades of major EPCM1 experience, delivering

end-to-end solutions from Canada and the UK

Exclusive licensee of CANDU® nuclear technology

Involved in the development of revolutionary fusion

reactor technologies

Governments’ commitment to Net Zero carbon by 2050 will significantly increase electricity demand

ITER, France

95


D&D Palisades (CDI)

2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034


DoE -Federal Government Contract - West Valley



DoE – Hanford Central Plateau



DoE - DUF 6



D&D Pilgrim (CDI)

D&D Lingen




Vulcan DecommissioningLegacy CANDU reactors DecommissioningNDA accelerated Decommissioning of the Magnox / AGR fleet

DW

MR

S &

LE





Quinshan Unit 1


New

Bu

ild

s






New Builds Subsector Main Project Pipeline Provides Long-Term Visibility

Remaining adjusted


contracts

$6B

$2B

In bid /

negotiation /

development**

>$50B

In option**


3. ITER contract was signed in 2010 and extended to 2025

96

Nuclear | Key Drivers and Targets

› Expected growth in overall sector supported by long-term contracts

and continued market penetration in our targeted geographies

› Decommissioning & Waste Management (DWM) and new

technologies will be the major contributor to our planned growth

› Reactor Support (RS) and Life Extensions (LE) will continue to

underpin our overall market position

› New Builds longer-term and more opportunistic

KEY DRIVERS

4-6%ANNUAL ORGANIC

REVENUE GROWTH

TARGET

13-15%ANNUAL SEGMENT ADJ.

EBIT TO SEGMENT

REVENUE RATIO*

TARGET


ANNUAL TARGETS (2022-2024)

97

Key Takeaways | Nuclear

1

Well-positioned for

growth with a stable

base of long-term,

low-risk and profitable

contracts with key,

high-quality clients

2

Differentiated business

enabled by proprietary

technology, intellectual

property and customized

product solutions,

including advances in

robotics, digital and waste

reduction technologies

3

Highly responsible,

innovative partner with

technical expertise and

globally recognized talent

pioneering solutions across

the Nuclear value chain

4

Global initiatives

for a carbon net

zero future create

significant

opportunities

CO2

O C T O B E R 2 9 , 2 0 2 1

99

Key Messages

3 Targeting positive free cash flow* in the medium term (2022-2024), with associated

capital allocation prioritized to returning to investment grade and accelerating growth

2 SNCL Services positioned to deliver mid-single digit organic revenue growth year-over-

year with continued margin strength

1 Substantial progress in strengthening the balance sheet and de-risking the business

*Non-IFRS financial measures. See the cautionary statement regarding Non-IFRS financial measures at slide 3 and slide 101.

100

Highlights

› Core SNCL Services

is a strong and growing

proportion of the Company,

as LSTK projects wind down

› EBIT underpinned by stable

SNCL Services

› Capital Segment Adjusted

EBIT* expected to grow back

towards pre-Covid levels as

Highway 407 traffic improves

C O N S O L I D ATE D R E V E N U E ( $ M )

S E G M E N T AD J . E B I T ( $ M ) *

Historical Financial Performance

*Non-IFRS financial measures. Refer to Section 9 of the Company’s Q2 2021 MD&A for Non-IFRS financial measures definition and reconciliation to IFRS measures. See also

the cautionary statement regarding Non-IFRS financial measures at slide 3.

13%18%

2018

73%15%

24%

85%

2019

79%

2020

7,630

83%

H1 2021

7,5737,008

3,618

SNCL Services Capital SNCL Projects

552 559 540278

H1 20212018

125

2019 2020

445 584

284

101

Highlights

› Opportunity to deploy FCF in

additional returns to

shareholders

› FCF profile will continue to

improve as LSTK risks are

wound down

› Placeholder

› Placeholder

› Placeholder

Improving Free Cash Flow* Performance

› Focused on continuing to

improve FCF* profile as LSTK

risks are wound down

› Focused on LSTK projects

cost recovery

› Going forward, FCF* generating

capabilities of SNCL Services

should more easily emerge

106

-236-308

-355

12284

-152

-125

-153-123

-76-38

-119

-119

-59

20202016

-73

20192017

-46

2018 H1 2021

-361

-461

-597

-13

Net cash generated from (used for) operating activities Acquisition of property and equipment Payment of lease liabilities

C O N S O L I D ATE D F C F * ( $ M )Highlights

*FCF is a non-IFRS measure and is calculated as follows: Net cash generated from (used for) operating activities less acquisition of property and equipment and less

payment of lease liabilities

102

Highlights

› LSTK Project backlog reduced

by ~60% over last two years

› Oil &Gas business sale in 2021

accelerated LSTK backlog

reduction

› Three remaining Infrastructure

light rail LSTK Projects in

Canada remain

› Legacy projects de-risked;

Continued focus on project risk

management a priority

L S TK B AC K L O G ( $ B )

Dec-24June-20June-19 June-21

~3.4

~2.6

~1.4

LSTK Project Backlog Materially Reduced Over

Last 2 Years

~0

Infrastructure LSTK projects Resources LSTK projects

103

Focusing on Successful Execution of Remaining LSTK Projects

Significant progress achieved post Q2 2019 and on track to complete wind-down

Backlog ($M) <175 <400 <700

Approximate

Completion~90% ~55% ~55%

Expected Substantial

Completion Year2022 2022 2024

Eglinton Trillium Réseau Express Métropolitain (REM)

As of June 30, 2021

104


2020 Revenues Strategic Realignment Enables Focused Execution

2022

Reportable

Segment

EDPM1 Power &

Industrial

services

O&M3 Linxon Nuclear

1. Engineering Design and Project Management. 2. Lump Sum Turnkey 3. Operations and Maintenance 4. Engineering Procurement Construction

Current

Reportable

Segment

Resources

ServicesInfrastructure

EPC4 Projects

Resources Infrastructure Services

ResourcesLSTK2

projectsCapital

~$4.2B

Engineering Services O&M3

~$0.5B

Linxon

~$0.5B ~$0.9B

Nuclear Capital

~$0.1B

LSTK2

projects

~$0.7B

SNCL Services

105

Setting the Stage for Future Growth

EB IT M AR GIN S

Focus on maintaining profitable

growth, with continued

optimization of cost base

through transformation agenda

to deliver further efficiencies

R EVEN U E GR OW TH

Drive revenue growth in SNCL

Services while running off

LSTK backlog

FR EE C ASH FLOW *

C ON VER SION

Deliver positive FCF* as LSTK

projects run off allowing highly

cash generative attributes of

SNCL Services to emerge


106

›S N C L S E RV I C E S ›L S TK P R O J E C TS ›C AP I TAL

Growth will be

mainly driven by

Highway 407 ETR

dividend

6.1

2020 2024E2021E

~7.0-7.6

Eng. Services Nuclear LinxonO&M

4-6%

CAGR

0.7

2020 2024E

~0

2020

0.1

Low-single

digits %

growth

$B

Revenue Growth Over Next Three Years to Be Driven by SNCL Services

107

Historical Segment Adj. EBIT to Segment Revenue Ratio*

›E D P M

*Non-IFRS financial measures. Refer to Section 9 of the Company’s Q2 2021 MD&A for Non-IFRS financial measures definition and reconciliation to IFRS measures.

See also the cautionary statement regarding Non-IFRS financial measures at slide 3.

Highlights

› SNCL Services targeting

operating margin ranges

similar to recent history

› New operating margin metric

of Segment Adjusted EBITDA/

Segment net revenue ratio* to

be introduced in 2022 for the

Engineering Services segment,

with target range of 14-16%

›N U C L E A R

›I N F R A S T R U C T U R E S E R V I C E S

15.5%14.0%

16.1% 14.8% 13.9% 14.2%

Q1 ’21Q2 ’20Q1 ’20 Q4 ’20Q3 ’20 Q2 ’21

4.9%7.3% 7.8%

9.6%

5.8%7.9%

Q2 ’20Q1 ’20 Q3 ’20 Q4 ’20 Q1 ’21 Q2 ’21

6.1%8.4% 9.0% 9.0% 8.6% 9.1%

Q4 ’20Q1 ’20 Q2 ’20 Q3 ’20 Q1 ’21 Q2 ’21

10%

8%

Target

15%

13%

7%

5%

Margins Expected to Remain in Current Target Ranges

108

Targeting Strong Free Cash Flow* Generation

Targeting free cash flow* annual conversion between 80-90%1

1. Conversion calculated as a percentage of consolidated adjusted net income, excluding the Federal charges settlement of $56M per year (2022-2024)

FCF* IMPROVEMENT DRIVERS BY 2024 KEY DRIVER COMMENTS

› LSTK projects cash consumption winding

down as backlog reduces

› SNCL Services working capital improves

as COVID-19 payment term impacts

unwind

› Expected EBITDA growth in SNCL

Services from higher revenue and

sustained EBIT margins

SNCL Services

working capitalSNCL Services

EBITDA growth

LSTK projects

wind-downFY’21E FCF* FY’24E FCF*

80-90%1

Conversion


109

Capital Allocation Priorities in Support of Our Strategy

Accelerate strategy through

organic and inorganic investments

› Drive organic growth by allocating

capital to internal strategic

initiatives in key growth areas

› Deploy capital in value creating

bolt-on acquisitions, primarily in

our core markets and growth areas

Investing in

the business

Opportunistically return

capital to shareholders

through share buybacks

› When there is a lack of attractive

bolt-on acquisitions opportunities

and through dividends

Returning capital

to shareholders

Strengthening the

balance sheet

› Enable the business to further

improve financial resiliency through

the business cycle

› Compete effectively for long term

contracts e.g. O&M

Improve debt leverage ratios

to achieve investment grade

STRENGTHEN GROW AND CREATE VALUE

Capital allocation priorities

110

Strengthening a Flexible Balance Sheet

2018 2019 2020 Current

C R E D I T R ATI N G

› Long-term leverage ratio target range of

1.5x-2.0x

› Return to investment grade rating

important for

› Winning long duration O&M contracts

and other types of work

› Lower cost of debt

› Having access to sufficient liquidity

facilities

P R I O R I T I ES

BBB (stable)

BB+ BB+

3.2x

2.7x

2020 2Q21 2024E

N E T L I M ITE D R E C O U R S E & R E C O U R S E D E B T TO

C O N S O L I D ATE D AD J U S TE D E B I TD A*

BB+

*Non-IFRS financial measures. Refer to Section 9 of the Company’s Q2 2021 MD&A for Non-IFRS financial measures definition and reconciliation to IFRS measures. See also the cautionary statement regarding

Non-IFRS financial measures at slide 3.

S&P

DBRS

BBB (stable)

BBB (low) BBB (low)BB (high)

2.0x

1.5x

Target

111

Complementary activities & services with opportunities

for cross-selling✓

Fits our new risk profile✓

Good cultural fit & share our vision, values and

corporate culture✓

Strong backlog of projects and client base supported

by strong technical expertise and people✓

Strategic Bolt-On Acquisitions | Accelerator of Future Growth in Key Markets

Strategic Filters

Qualitative Criteria

Year 1 adj. EPS accretion with

expectation for margin enhancement✓

FCF* positive within 1 year✓

ROIC significantly higher than WACC✓

Financial Criteria

Primarily core

regions1 and

end markets2

Bolt-on /

white space

opportunities

Expands

capabilities

Aligned

with overall

growth strategy

1. U.S., UK and Canada 2. Transportation, Buildings & Places, Defence, Water, Industrial & Mining, Power & Renewable, Nuclear


112

Financial Targets (2022-2024)1

S E G M E N T AD J .

E B I T TO S E G M E N T

R E V E N U E R ATI O *

O R G AN I C

R E V E N U E

G R O WTH

N E T L I M ITE D R E C O U R S E

& R E C O U R S E D E B T TO

C O N S O L I D ATE D AD J .

E B I TD A*

F C F * * O V E R

C O N S O L I D ATE D AD J .

N E T I N C O M E

C O N V E R S I O N


**Non-IFRS financial measures. See the cautionary statement regarding Non-IFRS financial measures at slide 3 and slide 101.

1. Reference is made to the Company's press release dated September 28, 2021, for details of the limitations of and assumptions underlying these financial targets. 2. Excluding the Federal charges settlement of $56M per year (2022-2024)

4-6% 8-10% 80-90%2 1.5-2.0x

S N C L S E RV I C E S

( AN N U AL LY)


( B Y E N D O F 2 0 2 4 )

Engineering Services (ES) 8-10%

ES Adj. EBITDA / Net Revenue 14-16%

Nuclear 13-15%

Linxon 4-6%

O&M 5-7%

113

Key Takeaways

Substantial progress over the

last two years strengthening

the balance sheet, and de-

risking the business

SNCL Services positioned to

deliver mid-single digit organic

revenue growth year-over-year

with continued margin strength

Targeting positive free cash flow*

in the medium term (2022-2024),

with associated capital allocation

prioritized to returning to

investment grade and

accelerating growth

1 2 3


Investor day 2021 - SNC-Lavalin

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