MONTREAL, Jan. 30, 2019 (GLOBE NEWSWIRE) -- WSP Global Inc. (TSX: WSP) ("WSP" or the “Corporation”) today released the
highlights of its three-year strategic plan (the “2019-2021 Global Strategic Plan”) setting the stage for the next three years of
the Corporation’s growth. A presentation of the 2019-2021 Global Strategic Plan is available at www.wsp.com in the Investor section, under Presentations & Events.
“Our 2015-2018 performance has allowed us to build strong foundations for the future. Our financial strength, agility and
diversification have put us in an enviable position to seize opportunities as they emerge. Today, I am proud to unveil our
2019-2021 Global Strategic Plan, designed to achieve our goal of building the premier professional consultancy in our industry. By
achieving the ambitions set out in this plan, we will generate net revenues of $8 to $9 billion, increase our headcount by 35% and
adjusted EBITDA by 50% by the end of 2021,” said Alexandre L’Heureux, President and Chief Executive Officer of WSP. “As such, in
the next cycle, through our focused acquisition and organic growth strategies, we will not only see growth in our expertise in
terms of headcount and skill-set, but in the scope and scale of our projects, our geographic presence and of course our client
base.”
Rooted in its Guiding Principles, WSP’s 2019-2021 Global Strategic Plan will see the continued evolution of the Corporation’s
four foundational pillars (Clients, People & Culture, Operational Excellence and Expertise) to support continued profitable growth
and the advancement of WSP’s global client service capabilities.
Clients
Through its 2019-2021 Global Strategic Plan, WSP aims to set the standard of client experience in the industry. This plan includes
several initiatives to ensure the Corporation continues to better understand its clients, to deliver exceptional value to clients
and to become its clients’ partner of choice through initiatives such as “Future Ready”. This, in turn, will help drive organic
growth, cross-sell and increase client satisfaction. By 2021, WSP will aim to achieve $8 to $9 billion in net revenues, balanced
between organic and acquisition growth.
People & Culture
WSP’s people will continue to be the primary engine of its growth, since the Corporation’s success is attributable to the elite
expertise and commercial abilities of its professionals, forged by their profound understanding of the local markets within which
they operate. To this end, WSP is committed to providing its 48,000 people with an environment to deliver on their full potential,
investing in them and leveraging the power of effective teamwork. As such, the firm will continue to make extraordinary
efforts to attract, lead, develop and retain the best professionals and will spare no effort to engage its leaders and increase
their sense of belonging to WSP. This, in turn, will help further improve people turnover, succession planning, and gender
balance.
Operational Excellence
Operational excellence has been at the core of WSP’s performance in the 2015-2018 period. Over the next three years, the
Corporation will continue to make it a priority, operating effectively to achieve the highest standards of client service and
project delivery, while continuing to invest in its project management capability and its design process. This should translate
into improved country and Group corporate costs. By 2021, WSP aims to generate 11.5% to 12.5% adjusted EBITDA margins.
Moreover, WSP is committed to continually integrate a high standard of ethical behaviour, as well as health and safety practices
within all the work it does, while reducing the environmental impact of its operations.
Expertise
Currently ranked among the Top 5 International Global Firms and generating approximately 90% of its net revenues from OECD
countries, WSP will drive growth by adapting and broadening its offering and its distribution capabilities to reach more global
clients and international markets, thus strengthening its balanced and resilient platform. This will be achieved through both
organic growth and a focused and disciplined acquisition strategy.
The Corporation will capitalize on regions where it has an existing significant leadership position, such as Canada, the UK, the
Nordics, and New Zealand and will actively drive its presence in geographies such as the United States, Continental Europe,
Australia, and South East Asia, where significant opportunities for growth exist.
In parallel, WSP will aim to strengthen its leadership position in Transportation & Infrastructure, and Property &
Buildings. Through smart diversification, it will also strive to grow in sectors such as Environment, Water, Power, Industry
and Resources (including Mining), where there is an opportunity for strategic growth and elevating brand awareness.
Finally, WSP will continue to do what it does best by building on its elite expertise in Engineering & Design, while getting
closer to its clients by further investing in its Strategic Advisory Services, such as Planning and Advisory Services, Management
Services, Technology, and Sustainability Services.
As such, by the end of 2021, WSP aims to have developed an even more diversified business across geographies, sectors and
services.
Financial Performance
WSP will measure its performance by targeting the following metrics:
|
2018 AMBITIONS |
2021 AMBITIONS |
Net revenues |
$CAD 6 billion |
$CAD 8 to 9 billion |
Annual growth (organic and acquisitions) |
Above 10% |
Above 10% |
Adjusted EBITDA margins |
11% |
11.5% to 12.5% |
Days Sales Outstanding |
Below 85 days |
Below 80 days |
Net debt/adjusted EBITDA ratio |
1.5x to 2.0x |
1.5x to 2.5x |
Employees |
48,000 |
65,000 |
These financial ambitions provided on January 30, 2019, as part of the presentation of the 2019-2021 Global Strategic Plan, are
meant to assist analysts and shareholders in formalizing their respective views on the Corporation’s Strategy. The reader is
cautioned that using this information for other purposes may be inappropriate. These measures are subject to change. The target
ranges presented above were prepared assuming no fluctuations in foreign exchange rate in markets in which the Corporation
operates. The Corporation considered numerous economic and market assumptions regarding the competition, political environment and
economic performance of each region where it operates. In preparing its 2019-2021 Global Strategic Plan forecast, the Corporation
also assumed that economic factors and market competition in regions where it operates would remain stable.
Conference call and Webcast
WSP will discuss its 2019-2021 Global Strategic Plan during a conference call to be held on January 30, 2019 at 4:00 p.m. (Eastern
Time).
To participate in the conference call, dial 1-647-427-2309 or 1-866-521-4907 (toll-free). The conference call and
slideshow presentation will also be broadcasted live and archived in the Investor section of the WSP website (www.wsp.com).
NON IFRS MEASURES
The Corporation reports its financial results in accordance with IFRS. However, the following non-IFRS measures are used by
the Corporation: net revenues; EBITDA; adjusted EBITDA; adjusted EBITDA margin; days sales outstanding (or DSO) and net debt to
adjusted EBITDA. Additional details for these non-IFRS measures can be found in WSP’s MD&A, which is posted on WSP’s
website at www.wsp.com, and filed with SEDAR at www.sedar.com. Management believes that these non-IFRS measures provide useful information to
investors regarding the Corporation’s financial condition and results of operations as they provide key metrics of its
performance. These non-IFRS measures are not recognized under IFRS, do not have any standardized meaning prescribed under
IFRS and may differ from similar computations as reported by other issuers, and accordingly may not be comparable. These
measures should not be viewed as a substitute for the related financial information prepared in accordance with IFRS.
ABOUT WSP
As one of the world's leading professional services firms, WSP provides technical expertise and strategic advice to clients in the
Transportation & Infrastructure, Property & Buildings, Environment, Industry, Resources (including Mining and Oil & Gas) and Energy
sectors, as well as offering project and program delivery and advisory services. Our experts include engineers, advisors,
technicians, scientists, architects, planners, surveyors and environmental specialists, as well as other design, program and
construction management professionals. With approximately 48,000 talented people globally, we are uniquely positioned to deliver
successful and sustainable projects, wherever our clients need us. www.wsp.com
FORWARD-LOOKING STATEMENTS
Certain information regarding WSP contained herein may constitute forward-looking statements. Forward-looking statements may
include estimates, plans, expectations, opinions, forecasts, projections, guidance or other statements that are not statements of
fact. Although WSP believes that the expectations reflected in such forward-looking statements are reasonable, it can give no
assurance that such expectations will prove to have been correct. These statements are subject to certain risks and uncertainties
and may be based on assumptions that could cause actual results to differ materially from those anticipated or implied in the
forward-looking statements. WSP's forward-looking statements are expressly qualified in their entirety by this cautionary
statement. The complete version of the cautionary note regarding forward-looking statements as well as a description of the
relevant assumptions and risk factors likely to affect WSP's actual or projected results are included in the Management’s
Discussion and Analysis for the year ended December 31, 2017, which is available on SEDAR at www.sedar.com. The forward-looking statements contained in this press release are made as of the
date hereof and WSP does not assume any obligation to update or revise any forward-looking statements, whether as a result of new
information, future events or otherwise unless expressly required by applicable securities laws.
FOR ADDITIONAL INFORMATION, PLEASE CONTACT:
Isabelle Adjahi
Senior Vice President, Investor Relations and Communications
WSP Global Inc.
Tel: (438) 843-7548
isabelle.adjahi@wsp.com