BUILDING WHAT MATTERS BUILDING WHAT MATTERS. SNC-Lavalin is a company built on delivering innovative engineering solutions for complex projects around the globe. With the digital transformation taking place in the engineering design construction industry, SNC-Lavalin can capitalize on this opportunity by being first-movers in the digital world which will give them a tremendous competitive advantage in the marketplace and align with their customer-centric approach.

SNC LAVALIN BUILDING WHAT MATTERS ODETTE CONSULTING: Brandon Lalonde, Jacob McCourt, Jordan Neposlan, Sahi Veeraraghavan Presenting to: Rashaad Sader & SNC-Lavalin Project Management Team

The Challenge How will digital transformation impact the business? How should the design engineering business change its business model? What are the implications on funding and investor relations from this digital disruption?

Agenda Strategic Analysis Key Issues Alternatives Recommendation Financial Overview Implementation Plan

Agenda Strategic Analysis Key Issues Alternatives Recommendation Financial Overview Implementation Plan

SWOT Analysis of EDPM within Digital Strengths - SNC-Lavalin (Atkins) have begun their digital transformation -Company is client-oriented Weaknesses -Increasing digital productivity causes challenges within the current cost structure Opportunities -Construction industry laggards in technological adoption -Opportunity to improve productivity and lead the market Threats -Model for contract labour shifting (Upwork causing disruption) -Digital technology landscape for construction is complex and quickly shifting SWOT Analysis

VRIO Analysis of EDPM within Digital Core Competencies Valuable Rare Inimitable Organized to Exploit Current Technology √ x Business Diversification (Global and Business Unit) Access to Capital Value Chain Technology Specialists

Agenda Strategic Analysis Key Issues Alternatives Recommendation Financial Overview Implementation Plan

Key Issues Future Risks Current Issues -SNC-Lavalin may lose on new revenue generation activities -Large investments may deter dividend seeking shareholders -As productivity increases, billable hours may shrink Future Risks -Digital transformation is slow for construction industry including SNC-Lavalin -Investors demanding profit growth despite large investment -Digital transformation puts pressure on current business model Current Issues

Key Issues Risk Mitigation Future Risks -Continue to make investments to adapt to shifts in the market -Low risk profile and communication strategy -Provide more value to customers to sell new groundbreaking services Risk Mitigation -SNC-Lavalin may lose on new revenue generation activities -Large investments may deter dividend seeking shareholders -As productivity increases, billable hours may shrink Future Risks

Agenda Strategic Analysis Key Issues Alternatives Recommendation Financial Overview Implementation Plan

Alternatives Alternative #1: Create a new online marketplace Alternative #2: Create a new Centre of Excellence (Specialists) Alternative #3: Create a new, isolated R&D team

Alternatives Decision Criteria Create a New Online Marketplace Create a New Centre of Excellence (Specialists) Create a New, Isolated R&D Team Risk (Investor Reaction) 3 7 6 Complexity Resource Requirement Biggest Potential Return 8 5 Effect on the Current Business Model 4 TOTALS 21 33 29 1-3 4-6 7-10

Agenda Strategic Analysis Key Issues Alternatives Recommendation Financial Overview Implementation Plan

Making a Decision Decision Criteria Create a New Online Marketplace Create a New Centre of Excellence (Specialists) Create a New, Isolated R&D Team Risk (Investor Reaction) 3 7 6 Complexity Resource Requirement Biggest Potential Return 8 5 Effect on the Current Business Model 4 TOTALS 21 33 29 1-3 4-6 7-10

Create a New Centre of Excellence (Specialists) (COE) Recommendation Aligns with customer-centric approach Low-risk Addresses change in technological market Positions as first-mover Create a New Centre of Excellence (Specialists) (COE)

How This Impacts Value Chain Project Management Planning Concept Detailed Design and Engineering Construction Management Fabrication Construction Renewal How This Impacts Value Chain

Agenda Strategic Analysis Key Issues Alternatives Recommendation Financial Overview Implementation Plan

Who Will Finance the Centre of Excellence?

Assumptions 2018 revenue is continued to grow Our Centre of Excellence will increase revenue moving forward The business portion of EDPM will continue to grow 2018 revenue is continued to grow

Financial Projections Projected 2017 2018 2019 2020 2021 Revenue (Millions) $ 9,100.00 $ 9,375.00 $ 9,656.25 $ 9,945.94 $ 10,244.32 EDPM Percentage of Revenue 18% 40% 43% 47% 49% EDPM $ 1,638.00 $ 3,750.00 $ 4,152.19 $ 4,674.59 $ 5,019.71 Center of Excellence (Growth %) 3% 7% 9% 12% Center of Excellence (Growth $) $ 112.50 $ 290.65 $ 420.71 $ 602.37 Total Revenue $ 9,487.50 $ 9,946.90 $ 10,366.65 $ 10,846.68

Agenda Strategic Analysis Key Issues Alternatives Recommendation Financial Overview Implementation Plan

Implementation Plan PHASE ONE: Organizational Change Identify key employees at the forefront of their domains Rashaad will lead new Centre of Excellence in EDPM Create areas around key domains in construction technology Creation of process Prepare marketing plan to communicate value PHASE TWO: Communication to Shareholders and Customers Change to engineering service contract pricing Tradeshow activation Create marketing materials Engage experts in technology and construction markets Provide sales training on new capabilities Evaluation of price gains from new COE Communication to shareholders about value-added COE Use COE as a recruitment tool for SME hires

Timeline 2018 2019 Q1 Q2 Q3 Q4 Organizational Restructure   2018 2019 Q1 Q2 Q3 Q4 Organizational Restructure Creation of Internal Processes for New Team Marketing and Sales Communication Pricing Change Launch Digital Centre of Excellence Tradeshow Sales Training and Marketing Communications Communication to Shareholders

KPI’s Average project profitability Effect on sales close rates Total Revenue Gain from Centre of Excellence

WE REDEFINE ENGINEERING BY THINKING BOLDLY, PROUDLY, AND DIFFERENTLY. Conclusion WE REDEFINE ENGINEERING BY THINKING BOLDLY, PROUDLY, AND DIFFERENTLY. How will digital transformation impact the business? Construction industry is lagging, COE can be disruptive. How should the design engineering business change its business model? Value-added customer-centric approach. What are the implications on funding and investor relations from this digital disruption? Requires low investment, EPS targets will be hit with dividend growth. Theme of digital transformation and creating innovative solutions. … Together, we can build what matters and capitalize on the digital disruption taking place in our world today.

We now welcome any questions. THANK YOU We now welcome any questions.