snc lavalin the leading engineering solution partnersnc lavalin consult 360 analysis evaluation...
TRANSCRIPT
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CONSULT 360
SNC Lavalin – the leading engineering solution partnerPresenting to: Mr. Rashaad Sader
Presentation by: Julian Buerger
Jessica Linneweber
Matthias Balkenhol
Sarah Marie Kuhlmann
1
UNIVERSITY OF PADERBORN
January 9th 2019
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CONSULT 360
Driving Question
2
How to achieve digital growth to become the premier engineering solution partner?
Changing design engineering business model
Less need for services | billable hours due to innovations
Low construction productivity
Ch
alle
nge
s
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CONSULT 360
Solution Preview
3
Alignment of digital transformation and your core value
Robotical support
AI and engineer collaboration
Real time solutions
Rec
om
men
dat
ion
s
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CONSULT 360
Agenda
Analysis Evaluation Recommendation Implementation Outlook
4
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CONSULT 360
SNC LAVALIN
5Analysis Evaluation Recommendation Implementation Outlook
• All in one service solution of engineering and fulfillment
• Globally distributedSafety|Integrity| Collaboration| Innovation
Products
• Retain best people with greatest experience
Why customers need you
Advantage against online disruptors
Must be further educated to stay ahead
• Variety of businesses served
• EDPM is biggest growing sector with 32%
• One of world’s mostrespected designengineers & project man.
USP
Invest further
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CONSULT 360
Construction Technology Landscape
1000 firms
• Digital collaboration
• Back office construction
• On site execution
1. Computing Power+
2. Data+
3. Connectedness
→ Customers can increasingly make use of own data
6
2017 Digital disruption2400 firms
• Digital twins
• 3-D printing, robotics
• Artificial intelligence
• Supply chain optimization
2018
Analysis Evaluation Recommendation Implementation Outlook
1 Year
Adapt engineering model to effective technologies
Low construction productivityPopulation growth→ need for buildings & infrastructure
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CONSULT 360Acquiring Atkins – Affecting employed engineers
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Huge part of workforce is not used for construction → could be taken to action otherwise
Analysis Evaluation Recommendation Implementation Outlook
• Work partially overtaken by machines, AI
• Atkins acquirement effected work distribution
• Frustration and expectation to cut half of the engineers (186 → 94)
• Good engineers look out for otherjobs
→ Address them
Effected engineers• Strategically important for
construction sector• Good in Construction, digitalization,
AI
• Top 100 big businesses to work in 2017
• Now cutting half of jobs
• Frustration, fear
Acquiring Atkins
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CONSULT 360
Vision 2020 and goals to reach
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Adapt engineering model to effective technologies → become premier engineering solution partner
Top, global fully integrated, professional services and project management company in profitability and growth
Client-centric delivery focused
Strong, performance driven culture, operational excellence
Strong, performance driven culture
Make projects less cost intensive, more efficient and predictable → smarter ways to work
Analysis Evaluation Recommendation Implementation Outlook
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CONSULT 360
Financials
9Analysis Evaluation Recommendation Implementation Outlook
EBIT Margins:• Infrastructure: 7%• EDPM: 11%• Oil & Gas: 7%• Nuclear: 18%• Clean Power: 13%• M & M: 4%
Profitability of segments
Investors are needed to be convinced in order to invest in the EDPM business
• $ 3.2 bn revenue• 32% of total revenues• Backlog $2.4 bn• Revenues 100%
through Reimbursable & engineering service contracts
EDPM
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CONSULT 360
How to achieve digital growth?
Digital collaboration
Design simulation
Virtual learning
On-site execution
3D printingRobotic
Assistance
Back Office
Real-time monitoring +
control Drone enabled
10Analysis Evaluation Recommendation Implementation Outlook
#3#2#1
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CONSULT 360
Decision Criteria
Cultural fit→ in accordance with values +
vision 2020
Sustainable growth→ operational excellence
Expected benefits→ short implementation time
Financial feasibility→ within the budget
11Analysis Evaluation Recommendation Implementation Outlook
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CONSULT 360
#1 Digital collaboration
Design Simulation
Virtual learning
12
Offer new ways to convince clients of you by keeping human creativity
Analysis Evaluation Recommendation Implementation Outlook
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CONSULT 360
Decision Matrix - #1 Digital collaboration
Design simulation
Virtual learning
13Analysis Evaluation Recommendation Implementation Outlook
Cultural fitSustainable
growthExpected benefits
Financial feasibility
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CONSULT 360
Decision Matrix - #1 Digital collaboration
Design simulation
Virtual learning
14Analysis Evaluation Recommendation Implementation Outlook
Cultural fitSustainable
growthExpected benefits
Financial feasibility
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CONSULT 360
#2 On-site execution
3D printingRobotic
Assistance
15
Offer new ways to convince clients of you by ensuring maximal safety + productivity of workers
Analysis Evaluation Recommendation Implementation Outlook
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CONSULT 360
Decision Matrix - #2 On-site execution
3D printing
Robotic Assistance
16Analysis Evaluation Recommendation Implementation Outlook
Cultural fitSustainable
growthExpected benefits
Financial feasibility
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CONSULT 360
Decision Matrix - #2 On-site execution
3D printing
Robotic Assistance
17Analysis Evaluation Recommendation Implementation Outlook
Cultural fitSustainable
growthExpected benefits
Financial feasibility
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CONSULT 360
Back Office
Real-time monitoring +
control Drone enabled
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Offer new ways to convince clients of you by ensuring maximal quality
Analysis Evaluation Recommendation Implementation Outlook
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CONSULT 360
Decision Matrix - #3 Onsite execution
Real-time monitoring + control
Drone enabled
19Analysis Evaluation Recommendation Implementation Outlook
Cultural fitSustainable
growthExpected benefits
Financial feasibility
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CONSULT 360
Decision Matrix - #3 Onsite execution
Real-time monitoring + control
Drone enabled
20Analysis Evaluation Recommendation Implementation Outlook
Cultural fitSustainable
growthExpected benefits
Financial feasibility
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CONSULT 360
Recommendations
21
Alignment of digital transformation and your core value
Robotical support
AI and engineer collaboration
Real time solutions
Analysis Evaluation Recommendation Implementation Outlook
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CONSULT 360
How to achieve digital growth?
Digital collaboration
On-site execution
Back Office
22Analysis Evaluation Recommendation Implementation Outlook
#3#2#1
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CONSULT 360
1. Innovation Labs for engineers
23Analysis Evaluation Recommendation Implementation Outlook
Think tank
Think tank
Pitchingareas
Connection center
3D Modelling
AI Learning
Coffee corner
What to do?
• 7 innovation Labs in North America (e.g. New York, Toronto), Europe and Asia
• Engineers and digital features together
• 3D modelling• Feedback possibilities
• Bonus payment for good ideas
Benefit
• Faster project execution (5-10% up to 2020)
• More creativity• AI can support with
ideas from other labs
Collaboration
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CONSULT 360
1.1 Contract Management
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• More projects• Fulfill demand of growing
population• Insentives for engineers• efficiency
Benefit
Analysis Evaluation Recommendation Implementation Outlook
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CONSULT 360
How to achieve digital growth?
Digital collaboration
On-site execution
Back Office
25Analysis Evaluation Recommendation Implementation Outlook
#3#2#1
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CONSULT 360
Robotic Assistant on-site
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Robot Assistantworker
What to do?
• 100 Robotic Assistant in 3 years• Helps workers
• Safety• Effieciency
• Material check• Connection to IT-System
Safety + Efficiency
?!
Benefit
Analysis Evaluation Recommendation Implementation Outlook
• Efficiency increase by 20-25%% up to 2020
• Lower safety issues• Crash rate decrease by 10-15%
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CONSULT 360
How to achieve digital growth?
Digital collaboration
On-site execution
Back Office
27Analysis Evaluation Recommendation Implementation Outlook
#3#2#1
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CONSULT 360
3. Real-Time project Monitoring
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IT-System
Robotic assistant
Back-Office with AI project controlling
Analysis Evaluation Recommendation Implementation Outlook
Integrity
• On-time project controlling• Less error probability• Operation excellence
Benefit:
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CONSULT 360
How to achieve digital growth?
Digital collaboration
On-site execution
Back Office
29Analysis Evaluation Recommendation Implementation Outlook
#3#2#1
INNOVATION
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CONSULT 360
Risk & Mitigation
30Analysis Evaluation Recommendation Implementation Outlook
Probability
Impact
3
12
1. Risk: Other company create innovations with disruptive potential
- Own labs secure innovative potential
2. Risk: Engineers do not use the labs- Activation of the engineers spirit in order to create innovations
3. Risk: Potential Problems with the robots
- Long testing periods required and also a step by step implementation
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CONSULT 360
Roadmap
31Analysis Evaluation Recommendation Implementation Outlook
Implementation Action 2019 2020 2021 2022 Costs
Innovation labs $50-60 Mn
IT-System and AI project controlling system $15-20 Mn
Robotic Assistants $75-80 Mn
Total amount $160 Mn
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CONSULT 360
Future Outlook
32Analysis Evaluation Recommendation Implementation Outlook
2019 Investment -155
2020 Profit 50
2021 Profit 60
2022 Profit 80
2023 Profit 110
NPV $68.43
IRR 28%
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CONSULT 360
Why to invest in SNC – Lavalin?
• Continued growth for value-added global engineering
• Digital transformation and your core values go hand in hand
• International leadership in premier engineering solutions
• Middle term: A-Rating, outlook: positive
33Analysis Evaluation Recommendation Implementation Outlook