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Corporate Overview June 2017

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Page 1: Corporate Overview - WSPcdn.wsp-pb.com/l27kvy/ir-june-2017.pdf · Overview 5. A Well Diversified Revenue Base. By operating segment. 37%. EMEIA. 30%. AMERICAS. Percentage of net revenues

Corporate Overview

June 2017

Page 2: Corporate Overview - WSPcdn.wsp-pb.com/l27kvy/ir-june-2017.pdf · Overview 5. A Well Diversified Revenue Base. By operating segment. 37%. EMEIA. 30%. AMERICAS. Percentage of net revenues

We are…

— A leading global professional consulting firm, with revenues from professional services (no construction risk)

— A powerful global brand ranked amongst the best by ENR, with technical leadership in Transportation, Civil Infrastructure and Buildings

— One of the fastest growing firms in our industry

— The engineer behind award-winning projects

2

Page 3: Corporate Overview - WSPcdn.wsp-pb.com/l27kvy/ir-june-2017.pdf · Overview 5. A Well Diversified Revenue Base. By operating segment. 37%. EMEIA. 30%. AMERICAS. Percentage of net revenues

Corporate Overview

3

Our Positioning in the Infrastructure and Construction Value Chain

PLANNING DESIGNCONSTRUCTION

SERVICES (Construction/Project

Management)

EQUIPMENT SUPPLIERS

MATERIALS AND ENGINEERED

PRODUCTSWE HAVE A HORIZONTALFEE-FOR-SERVICE MODEL

ARCHITECTS CONTRACTORS AND DEVELOPERS

OPERATION AND MAINTENANCE

Page 4: Corporate Overview - WSPcdn.wsp-pb.com/l27kvy/ir-june-2017.pdf · Overview 5. A Well Diversified Revenue Base. By operating segment. 37%. EMEIA. 30%. AMERICAS. Percentage of net revenues

Corporate Overview

4

A Global Presence

Figures as at March 31, 2017

ASIA

3,325

AUSTRALIANEW ZEALAND

2,425

MIDDLE EAST INDIA

2,165

NORDICS

4,785

UK IRELAND

6,905

CONTINENTAL EUROPE

695

SOUTHAFRICA

700

US

6,850

CENTRAL &SOUTH AMERICA

750

CANADA

7,600

Page 5: Corporate Overview - WSPcdn.wsp-pb.com/l27kvy/ir-june-2017.pdf · Overview 5. A Well Diversified Revenue Base. By operating segment. 37%. EMEIA. 30%. AMERICAS. Percentage of net revenues

Corporate Overview

5

A Well Diversified Revenue Base

By operating segment

37%EMEIA

30%AMERICAS

Percentage of net revenues – Based on Fiscal 2016 Results*Includes Industry, Resources and Power & Energy

14%APAC19%

CANADA

By market segment

49%TRANSPORTATION &

INFRASTRUCTURE

31%PROPERTY &BUILDINGS

9%ENVIRONMENT

11%INDUSTRY &

ENERGY*

Page 6: Corporate Overview - WSPcdn.wsp-pb.com/l27kvy/ir-june-2017.pdf · Overview 5. A Well Diversified Revenue Base. By operating segment. 37%. EMEIA. 30%. AMERICAS. Percentage of net revenues

6

A Well Diversified Revenue Base

57%

61%

22%

66%

57%

56%

66%

54%

67%

48%

43%

40%

78%

35%

43%

44%

34%

46%

33%

52%

TOTAL

Australia/NZ

Asia

Central Europe

Africa

Scandinavia

Middle East/India

UK/Ireland

Americas

Canada

Public vs. Private

Public Private

54%

73%

99%

90%

63%

14%

62%

76%

40%

65%

46%

27%

1%

10%

37%

86%

38%

24%

60%

35%

TOTAL

Australia/NZ

Asia

Central Europe

Africa

Scandinavia

Middle East/India

UK/Ireland

Americas

Canada

Fixed-fee vs. Fee-for-service

Fixed-fee Fee-for-service

Corporate Overview

Page 7: Corporate Overview - WSPcdn.wsp-pb.com/l27kvy/ir-june-2017.pdf · Overview 5. A Well Diversified Revenue Base. By operating segment. 37%. EMEIA. 30%. AMERICAS. Percentage of net revenues

Corporate Overview

7

A Leading International Firm

$-

$1,000.0

$2,000.0

$3,000.0

$4,000.0

1

1

2

Top international design firm

Top international design firm in transportation

Top international design firm in power

3 Top international design firm in buildings

Based on design-specific revenue generated from projects outside each firm's respective home countrySource: ENR Top 225 Global Design Firms/ENR Sourcebook– December 2016

Page 8: Corporate Overview - WSPcdn.wsp-pb.com/l27kvy/ir-june-2017.pdf · Overview 5. A Well Diversified Revenue Base. By operating segment. 37%. EMEIA. 30%. AMERICAS. Percentage of net revenues

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We Have a Well-Defined Road Map

FROM LOCAL TO NATIONAL,

TO INTERNATIONAL

More than 90 acquisitions

Major acquisitions

WSP Group 9,000 people (2012)Focus 1,800 people (2014)

Parsons Brinckerhoff 13,500 people (2014)

MMM 2,000 people (2015)Mouchel Consulting 2,000 people (2016)

2006-2016 TODAY 2015-2018

A TRULY MULTI-DISCIPLINARY

FIRM

36,000 employees

2016 net revenues $4.9B

2016 adjusted EBITDA$499M

ENR Global RankingTop International Design Firms in

Transportation - #1Top International Design Firms - # 1

A STRATEGY OF CONTINUITY TO EXPAND

OUR STRATEGIC SERVICES OFFERING

TO CLIENTS

Our objectives45,000 employees

$6.0B in net revenues ($1.3B through acquisitions)5% annual organic growth

11% adjusted EBITDA margin

Continue to consolidate the industry to create the best professional services firm in each of our geography and sector

Corporate Overview

Page 9: Corporate Overview - WSPcdn.wsp-pb.com/l27kvy/ir-june-2017.pdf · Overview 5. A Well Diversified Revenue Base. By operating segment. 37%. EMEIA. 30%. AMERICAS. Percentage of net revenues

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We Will Continue to Strengthen our Technical Expertise in Targeted Sectors and Regions

TRANSPORTATION BUILDINGS INFRASTRUCTURE ENVIRONMENT

SUBSCALE IN CERTAIN SECTORS

EXPANDING GEOGRAPHICALLY

EXPANDING GEOGRAPHICALLY

ADDING SPECIFIC EXPERTISE

SUBSCALE IN CERTAIN

SECTORS

Page 10: Corporate Overview - WSPcdn.wsp-pb.com/l27kvy/ir-june-2017.pdf · Overview 5. A Well Diversified Revenue Base. By operating segment. 37%. EMEIA. 30%. AMERICAS. Percentage of net revenues

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2017 Regional Operational Outlook

AMERICASSTRONG US TRANSPORTATION

AND INFRASTRUCTURE PIPELINE

MIDDLE EASTDIFFICULT

ECONOMIC CONDITIONS

AUSTRALIATRANSPORTATION IS THE FASTEST GROWING SEGMENT OF ALL OUR

BUSINESSES WORLDWIDE

CANADASLUGGISH ECONOMY

CHANGING ECONOMIC LANDSCAPENORDICS

POSITIVE AND GROWING OUTLOOK

ASIASLOWDOWN IN

MAINLAND CHINA

UKECONOMY SET TO

CONTINUE TO EXPAND AT MODERATE PACE

SOUTH AFRICA

DIFFICULT ECONOMIC

CONDITIONS

Page 11: Corporate Overview - WSPcdn.wsp-pb.com/l27kvy/ir-june-2017.pdf · Overview 5. A Well Diversified Revenue Base. By operating segment. 37%. EMEIA. 30%. AMERICAS. Percentage of net revenues

Corporate Overview

Our Financial Performance

Page 12: Corporate Overview - WSPcdn.wsp-pb.com/l27kvy/ir-june-2017.pdf · Overview 5. A Well Diversified Revenue Base. By operating segment. 37%. EMEIA. 30%. AMERICAS. Percentage of net revenues

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A Proven and Sustained Performance

2012 2013 2014 2015 2016

NET REVENUES*

4,486.8

2,349.9

1,677.2

1,020.1

* In millions CAD – Non-IFRS measures

4,895.1

CAGR12-1648%

125.4

180.6253.5

441.5499.0

12.3%

10.8%10.8% 9.8%

10.2%

2012 2013 2014 2015 2016

ADUSTED EBITDA* AND ADJUSTED EBITDA MARGIN*

CAGR12-1659%

Corporate Overview

Page 13: Corporate Overview - WSPcdn.wsp-pb.com/l27kvy/ir-june-2017.pdf · Overview 5. A Well Diversified Revenue Base. By operating segment. 37%. EMEIA. 30%. AMERICAS. Percentage of net revenues

Q1 2017 Financial Performance— Net revenues of $1.3B,

up 9.8%— 10.1% organic growth

(adjusted for billable days, approximately 4%)

— Adjusted EBITDA of $114.5M (9% margin)

— $6B backlog (10.6 months of revenues)

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Corporate Overview

Page 14: Corporate Overview - WSPcdn.wsp-pb.com/l27kvy/ir-june-2017.pdf · Overview 5. A Well Diversified Revenue Base. By operating segment. 37%. EMEIA. 30%. AMERICAS. Percentage of net revenues

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Financial Position and Net Debt/TTM Adjusted EBITDA* Ratio

(in millions of dollars) Q1 2017

Financial liabilities $1,096.4

Less: Cash ($231.7)

Net debt $864.7

TTM adjusted EBITDA* $522.0

Net debt / TTM adjusted EBITDA* 1.7x

Net debt /TTM adjusted EBITDA*, incorporating full 12-month adjusted EBITDA* for all acquisitions 1.6x

* In millions CAD – Non-IFRS measures

Corporate Overview

Page 15: Corporate Overview - WSPcdn.wsp-pb.com/l27kvy/ir-june-2017.pdf · Overview 5. A Well Diversified Revenue Base. By operating segment. 37%. EMEIA. 30%. AMERICAS. Percentage of net revenues

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2017 Outlook

* Non-IFRS measure. 1) Due mainly to personnel and real estate integration costs related to the acquisition of Mouchel completed in Q4 2016 and to real estate integration costs pertaining to the MMM acquisition completed in Q4 2015.

Net revenues* Between $5,000 million and $5,300 million

Adjusted EBITDA* range Between $510 million and $560 million

Seasonality and adjusted EBITDA* fluctuations

Q1: 20% to 22%Q2: 24% to 26%Q3: 28% to 30% Q4: 24% to 26%

Tax rate 27% to 29%DSO* 80 to 85 daysAmortization of intangible assets related to acquisitions Between $65 and $75 million

Capital expenditures Between $120 and $130 millionNet debt to adjusted EBITDA* 1.5x to 2.0xAcquisition and reorganization costs* Between $15 million and $25 million 1)

Corporate Overview

Page 16: Corporate Overview - WSPcdn.wsp-pb.com/l27kvy/ir-june-2017.pdf · Overview 5. A Well Diversified Revenue Base. By operating segment. 37%. EMEIA. 30%. AMERICAS. Percentage of net revenues

A New Brand

Page 17: Corporate Overview - WSPcdn.wsp-pb.com/l27kvy/ir-june-2017.pdf · Overview 5. A Well Diversified Revenue Base. By operating segment. 37%. EMEIA. 30%. AMERICAS. Percentage of net revenues

WE VALUE OUR PEOPLE AND OUR REPUTATION— We make extraordinary efforts to attract, develop, engage and retain the

best professionals in our fields of expertise

WE ARE LOCALLY DEDICATED WITH INTERNATIONAL SCALE— Our strength is our ability to adapt to our client culture and local

markets.

WE ARE FUTURE-FOCUSED AND CHALLENGE THE STATUS QUO— We anticipate trends in order to propose innovative ideas for our clients

to meet their business objectives

WE FOSTER COLLABORATION IN EVERYTHING WE DO— Our international agility is founded on our collaborative working

environment

WE HAVE AN EMPOWERING CULTURE AND HOLD OURSELVES ACCOUNTABLE

— We are empowered to turn challenges into opportunities while beingheld accountable to standards beyond the norm

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Guiding Principles

Page 18: Corporate Overview - WSPcdn.wsp-pb.com/l27kvy/ir-june-2017.pdf · Overview 5. A Well Diversified Revenue Base. By operating segment. 37%. EMEIA. 30%. AMERICAS. Percentage of net revenues

Question todayimagine tomorrowcreate for the future

Q1 2017 Results

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Page 19: Corporate Overview - WSPcdn.wsp-pb.com/l27kvy/ir-june-2017.pdf · Overview 5. A Well Diversified Revenue Base. By operating segment. 37%. EMEIA. 30%. AMERICAS. Percentage of net revenues