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A Deep Dive Into Nuclear
›February 2020
Forward-looking Statements
Reference 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 SNC-Lavalin Group Inc. or one or more of its subsidiaries or joint arrangements.
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”, “estimates”,
“expects”, “goal”, “intends”, “may”, “plans”, “projects”, “target”, “should”, “synergies”, “vision”, “will”, 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; and (ii) business and management strategies and the expansion and growth of the Company’s operations. 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 in obtaining 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.
Forward-looking statements 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 2018 Management Discussion and Analysis (MD&A) and as updated in the first, second and third quarters of 2019. If these assumptions are inaccurate, the Company’s actual results
could differ materially from those expressed or implied in such forward-looking statements. 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. These risk factors are set out in the Company’s 2018 MD&A and as updated in
the first, second and third quarters of 2019.
2
Bill Fox
EVP, Nuclear, Canada
› Joined SNC-Lavalin in 2018
› Has held senior leadership roles at BWX Technologies, CB&I, AREVA, SGT and Duke
Engineering & Services
› Over 40 years of experience in Energy and Nuclear industry
Chris Ball
Managing Director, EMEA
› Joined Atkins / Nuclear in 2000
› Previously Atkins Group Managing Director of Energy UK & Europe
› Over 25 years of experience in Energy industry
3
Leadership Team
Sandy Taylor
President, Nuclear
› Joined SNC-Lavalin in 2014 as President of Power Group
› Previously President and CEO of ABB Canada and has held a number of
senior roles within ABB for 29 years
› Over 40 years of experience in Energy industry
Joel Taché
SVP, Finance, Commercial and Risk
› Joined SNC-Lavalin in 2012 as Vice President of Corporate Risk Management
› Has held senior leadership roles at Utility Service, United Water (Suez) and Vinci
› Over 25 years of experience in Finance, Strategy and Risks in the Energy, Water and
Transportation Industry
Decades of experience successfully delivering major nuclear projects
Tom Jouvanis
President, USA
› Joined Atkins / Nuclear in 2016 as President of Atkins Nuclear Secured
› Previously Senior Vice President of EnergySolutions
› Over 35 years of experience leading organizations in the performance of
management consulting, engineering & construction, environmental cleanup,
and chemical manufacturing
Mark Morant
EVP, Decommissioning & Waste Management
› Joined Atkins / Nuclear in 1996
› Previously Managing Director of Magnox and Executive Officer of EnergySolutions
› Over 30 years of executive level management within the nuclear industry
4
Key Trends in the Nuclear Market
Operations Support Services› Post-Fukushima upgrades resulting in increased operating expenditures
› Global operating fleet requiring increased maintenance services
Life Extension & Late Life Management
› Life extension and mid-to-late life asset management well underway in our CANDU® portfolio
› Shift to late life management for over 200 nuclear reactors in operation in the mid- to long-term timeframe
Decontamination, Decommissioning and Waste Management› Continued robust demand for waste management and supporting technology
› Growing decontamination & decommissioning market in our core geographies
› Strong long-term outlook in North America and Europe as reactors reach end of design life
Nuclear, with its low carbon footprint, is now seen as part of the solution to address the ever-increasing issues of greenhouse gas and climate change.
(1) Per World Nuclear Association Performance Report 2018
New Builds› Driven primarily by UK, China, Russia and India (50+ in construction, 160 planned(1))
› Numerous countries in early phase of investigating SMR (Small Modular Reactor) and fusion technology
› Increasing competition from renewables (mainly wind & solar)
Our focus, backlog and our ability to win long-term contracts underpins our highly stable,
profitable and growing business
5
We Are a Differentiated Leader in Many Facets of the Nuclear
Lifecycle
The integration of SNC-Lavalin and Atkins nuclear businesses has created a global leader positioned to capitalize on significant
investments unfolding over the next decades with a focus on deepening penetration in core Canada, UK and US markets.
We offer end-to-end services extending across the full life-cycle of a nuclear asset, from design and delivery through its
operating life, with 37% of revenue(1) stemming from final decommissioning, waste management and environmental clean-up.
Product development and technology deployment is in our DNA. Committed to true innovation, we leverage our substantial
portfolio of hundreds of patents to develop new value-added solutions for our customers.
We achieve stable financial performance, robust margins and strong cash flow conversion, supported by long-term
contracts with large utilities and government entities.
(1) YTD for the period ending September 30, 2019.
We support each other and
succeed together
We bring together the
best expertise to innovate &
win
6
SNC Lavalin: Committed to a Sustainable Nuclear Future
Our mission is to support a more sustainable world through the lifecycle of carbon-free nuclear energy
and to ensure nuclear remains a key part of the mix for future generations.
We strive every day to delight our customers
We are driven to be the industry
leader in project execution
Our behaviours put our values into
action
We think globally &
deliver locally
Our
Operating
Principles
7
Our History
Successfully combined and integrated various businesses with different histories, operating
models, geographies, cultures and services
SNC-Lavalin
Nuclear
Stewards of CANDU® technology for over
60 years
Unique expertise for new builds
Expertise in other reactor types, broad
services offering and digital capabilities
Deep D&D(1) and waste management
capabilities
Extensive technology portfolio of 200+ active
& pending patents to address reactor life
cycle and waste management
2004
Inc
Canatom
2011 2017
Pre-2010 2014
Nuclear
Safety
Associates
2015
Today2018
(1) Decontamination and Decommissioning
8
World-scale Nuclear Services Provider
Local expertise on a global scale
Select projects around the world
Canada~6,000
USA~5,500
UK & Europe~1,600
Employees under management(1)
(1) Includes all employees within joint ventures
9
Capabilities Supporting the Nuclear Lifecycle
› Providing tailored engineering
solutions for new reactor builds
including design / build, licensing,
energy strategy and policy
› Steward of CANDU® nuclear
technology for 60+ years
› Ensuring reactors fulfill expected
life with engineering, design,
consulting, on-site services,
project management and asset
management
› Trusted vendor for government
and military services
› Offering an extensive line of
products and technology enabling
to maximize the value of nuclear
assets through refurbishment
› Includes life extension major
projects to detube / retube and
refurbish CANDU® reactors
› Field services, remediation, nuclear
fuel management, transportation and
environmental clean-up
› Industry-leading general
decommissioning contractor through
the CDI joint venture
› Recognized USA Federal Tier-1
contractor
› Reimbursable with
performance-based fee› Reimbursable service contracts › Reimbursable service contracts
Co
ntr
act
Typ
e › Reimbursable with performance-
based fee
New Builds Operations Support
Services
Life Extension and
Late Life Management
Decommissioning,
Remediation and Waste
Management
The business model is centered around reimbursable contracts and achieving performance-based incentives;
across the spectrum, SNC-Lavalin Nuclear is also protected by international regulation and contracted legal indemnities.
10
Comprehensive Products and Technology Portfolio
Fuel route engineering
CANDU® AFCR
Pump sealsSimulations
Reactor retubing
Membranes
Waste management
Liquid waste
Vitrification Waste treatment
CANDU® EC6 3D Scanning / VR
SNC-Lavalin
Atkins
Complementary portfolios of
SNC-Lavalin and Atkins providing
for broader opportunities:
› Capabilities span across new build, operating
assets, life extension, later life / clean up and
digital
Combination of extensive IP portfolios› Exclusive licensee for CANDU® reactor
technology from the Canadian government
› Total of 225 active & pending patents
Through its leading IP portfolio, SNC-Lavalin’s Nuclear sector is uniquely positioned
New Builds
Operation Support
Lifecycle Management
D&D
11
Engineering and Technical Services
Hinkley Point C Power Station
Somerset, England
New Builds
12
Fuel Channel Inspection and
Life Extension Services
Wolseong Power Plant
Gyeongju, South Korea
Operations Support Services
13
Reactor and Turbine Refurbishment Projects
Multiple Services Contracts
Darlington Nuclear Station
Ontario, Canada
Life Extension
14
Decontamination and Decommissioning
Pilgrim Nuclear Power Station
Plymouth, Massachusetts
Decommissioning
15
Environmental Clean-Up Contracts
Thorium Extraction for Cancer Treatment in Collaboration
with TerraPower
Oak Ridge
National Laboratory
Oak Ridge, Tennessee
Waste Management
Delivering robust revenue growth, predictable margins and solid cash flow conversion
Stable and Growing Revenue Base
High-visibility revenue base underpinned by long-term
nature of contracts with major utilities and government
entities
16
Resilient Business Model
As Evidenced in Financial Profile
Revenues
Segment EBIT(3)
Margin
(1) Excludes options for five additional reactors
(2) Q1 2019 EBIT margin is lower mainly due to higher than forecasted costs on an LSTK project in Canada nearing completion
(3) EBIT margin on a gross revenue basis; non-IFRS measure, additional details can be found in SNC-Lavalin’s MD&A
(4) OCF defined as segment EBIT plus segment depreciation, less lease interest payment, + / - change in non-cash working capital, + / - net change in provisions related to forecasted losses on
certain contracts, + / - net adjustments related to equity method accounting for joint ventures
(5) Conversion defined as OCF divided by segment EBIT
Consistently Achieving
High Margins
Specialized workforce and high complexity of services,
technologies translate to margins higher than typical
E&C business
Targeting Strong OCF Conversion
Achieved over 100% OCF conversion(4)(5) in last two
years – investing in growth going forward while
maintaining a high conversion rate
OPG Darlington RFR
Contract, Canada
14 yearOPG Darlington TGR
Contract, Canada
11 year
Hanford Central Plateau
Contract, US
10 yearBruce Power
Contract, Canada
4 year (1)
ITER Contract, France
15 yearSellafield Contract, UK
8 year
Hinkley Point Engineering
Contract, UK
Multi-yearDoE Oak Ridge Contract,
US
6 year
(2)
$252M $224M $242M $213M
15% 5% 13% 19%
Q4 2018 Q1 2019 Q2 2019 Q3 2019
$758M
$185M
$33M
$119M
Q3 2019
$758M
$185M
$33M
$2,035M
Q3 2019
17
Breakdown of Revenue Backlog
(1) Revenue backlog as disclosed in company filings excluding contribution from JV’s, for the period ended September 30, 2019.
(2) Revenue backlog pro-forma SNC-Lavalin’s share of CDI and Federal government JV contracts, for the period ended September 30, 2019.
Backlog by Services Backlog by Length of Contract
The nuclear revenue pipeline triples when adjusted for JVs’ share of equity method investments
$3,012M(2)$3,012M(2)
$1,095M(1)
Lifecycle
Management
Decommissioning &
Waste Management
Operations
Support
New Builds
0-1 yr
5+ yrs
1-5 yrs
Note: Charts are not to scale.
Inclu
din
g s
ha
re o
f JV
s
$1,179M
$1,153M
$680M
Q3 2019
18
Strategic Priorities
1Grow from
strengths
2Innovate to
differentiate
3Operational
excellence
19
1 Grow from Strengths Strategy across geographies
UK & Europe
› Grow existing services, building on strong customer relationships
› Collaborate with other regions to expand services offering (e.g. field services, life
extension, operational support D&D(1) and waste management)
› Grid-scale and small modular reactor new builds
ME
A
› Grow existing Federal Department of Energy – Environmental Management
business, and expand to other Federal departments
› Grow commercial D&D(1) via CDI
USA
› Grow CANDU® services through innovation & customer focus
› Flawlessly execute & maximize value from current life extension programs
› Further develop D&D(1) (CDI) and waste management leadership
› New builds: Advanced Heavy Water Reactors (AHWR) and small modular reactors
Canada
Core Markets – Secure Leading Positions for Next Decades
Rest of World – Develop from Strength
Rest of World
› Technology Sales to Asia-Pacific
› Services to Middle East
› Grow CANDU® services and technology sales
Focus on realizing significant value from our strong market positions and expanded capabilities in geographies that are investing in nuclear assets
New
Builds
Operations
Support
Life Extension
and Late-Life
Technology
Focus
D&D and Waste
Management
(1) Decontamination and Decommissioning
Major Project Pipeline Provides High Degree of Visibility
Note: Federal government and DoE contracts are typically bid as JV with partners; SNC-Lavalin receive 20% - 50% of the JV net income
(1) Isotek contract started in 2003 and will be extended to 2025
(2) Optional 4 year extension
(3) ITER contract was signed in 2010 and has been extended to 2025
In option
Under contract /
awarded / principal
proponent in negotiation$9B
$2B
In bid /
negotiation /
development>$50B
20
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034
Refurb. Bruce 3
Refurb. Bruce 4
Refurb. Bruce 5
Refurb. Bruce 7
Refurb. Bruce 8
DoE – Hanford TOC
DoE – Hanford Plateau
DoE – Legacy Management
DoE – Savannah R M&O
DoE – Oak Ridge Reservation
DoE – DUF 6
Federal Government Contract – Idaho Clean-up
Federal Government Contract – Porstmouth D&D
Federal Government Contract – West Valley
New AHWR
LEP/C1/C2
Major D&D Opportunity in Canada
Federal Government Contract – WIPP M&O
Refurb. Darlington RFR combined execution and definition
Federal Government Contract – CNEA / CNL M&O (2)
Sellafield Decommissioning Delivery Partnership (DDP)
ITER – Engage Partnership extension (3)
Refurb. Bruce 6
D&D Oyster Creek (CDI)
D&D Pilgrim (CDI)
D&D Lingen
D&D IPEC 1, 2, 3 (CDI)
D&D Palisades (CDI)
Isotek – TerraPower Partnership (1)
Hinkley Point C Program
Waste
Technology
ToolingDisruptive Technologies Digital
› Liquid waste treatment
applications
› CANDU® refurbishing tooling &
process enhancements to
reduce outage duration &
commercial risk
› High Integrity Containers (HIC)
› Joule Heated Ceramic Melter
(JHCM) bubblers (vitrification)
› Collaboration of 3D Laser
Scanning developed in UKExisting
Applications
Future
Developments
› Global application with near term
opportunities in North America;
UK & Japan
› Investigate application of tooling
for emerging D&D business (e.g.
reactor segmentation); hot cell
robotics
› Expanded portfolio of waste
containers
› Digital Twins for operational
support and Decommissioning
21
2 Innovate to Differentiate
Focus on building and fostering commercial partnerships to leverage unique technology
SATISFACTIONCUSTOMER COLLABORATE
TO WIN
SUPERIOR
EXECUTION
3 Operational Excellence
CULTURE OF
EXCELLENCE
› Enhanced Key Account
Management
› Customer Focus &
Feedback
SUCCESSTOGETHER
› Knowledge Sharing
› Capability Mapping
› 9-Box Talent Management
› Rewards & Recognition
› Integrated Strategy & Project
Pipeline
› Major Pursuit & Bidding
Process
› Services Sales Coordination
› Top Project Talent, Global
Major Projects Capability
› Services Delivery Best
Practices
› Integrated Systems
› Values & Operating Principles
Into Action
› Human Performance Program
Management
Attract and develop top talent; implement best-in-class project management processes &
tools; and enhance our client centric culture
22
23
Key Takeaways
Offering services
extending across the full
life-cycle of a nuclear asset,
from design and delivery through
its operating life, and final
decommissioning
Global nuclear leader
with ever stronger
brandspositioned to capitalize on
significant investments
unfolding over the next
decades
Technology as a
differentiator by leveraging a
substantial portfolio of over 200
patents to develop new value-
added solutions for our customers
Stable business with
strong margins and cash
flow supported by long-term
contracts with large utilities and
government entities
3 421
For nuclear power to work, it has to work for all.
Our mission is to support a more sustainable world through the lifecycle of carbon-free nuclear energy.