1. 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.

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

3. 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?

4. Agenda Strategic Analysis Key Issues Alternatives Recommendation
Financial Overview
Implementation Plan

5. Agenda Strategic Analysis Key Issues Alternatives Recommendation
Financial Overview
Implementation Plan

6. 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

7. 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

8. Agenda Strategic Analysis Key Issues Alternatives Recommendation
Financial Overview
Implementation Plan

9. 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

10. 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

11. Agenda Strategic Analysis Key Issues Alternatives Recommendation
Financial Overview
Implementation Plan

12. 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

13. 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

14. Agenda Strategic Analysis Key Issues Alternatives Recommendation
Financial Overview
Implementation Plan

15. 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

16. 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)

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

18. Agenda Strategic Analysis Key Issues Alternatives Recommendation
Financial Overview
Implementation Plan

19. Who Will Finance the Centre of Excellence?

20. 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

21. 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 $) $ $ $ $
Total Revenue
$ 9,487.50
$ 9,946.90
$ 10,366.65
$ 10,846.68

22. Agenda Strategic Analysis Key Issues Alternatives Recommendation
Financial Overview
Implementation Plan

23. 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

24. 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

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

26. 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.

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