SNC-Lavalin Reports First Quarter 2021 Results

MONTREAL, May 14, 2021 /CNW Telbec/ - SNC-Lavalin Group Inc. (TSX: SNC), a fully integrated professional services and project management ("PS&PM") company with offices around the world, today announced its results for the first quarter ended March 31, 2021.

First Quarter Highlights and Key Metrics from Continuing Operations

• Net income from continuing operations attributable to SNC-Lavalin shareholders of $67.7 million, or $0.39 per diluted share.
• SNCL Engineering Services delivers solid Q1 results 
• Revenues of $1.5 billion.
• Segment Adjusted EBIT⁽¹⁾ of $132.8 million, representing a 8.8% margin.
• Segment Adjusted EBIT to revenue ratio⁽²⁾ of 8.6%, 13.9% and 5.8% for EDPM, Nuclear and Infrastructure Services, respectively, in line with Company's targets.
• Net cash generated from operating activities of $118 million.
• Bookings of $1.7 billion, representing a 1.15 booking-to-revenue ratio⁽⁶⁾. Backlog at $11.1 billion as at March 31, 2021.
• SNCL Projects backlog continues to decrease
• LSTK construction contracts backlog reduced by $241.5 million in the quarter to $1.6 billion as at March 31, 2021.
• Financial position remains strong
• As at March 31, 2021, the Company had cash and cash equivalents of $702.7 million and a net recourse debt to EBITDA ratio⁽⁷⁾ of 1.8 (calculated in accordance with the Company's Credit Agreement).

2021 Outlook for SNCL Engineering Services maintained

• SNCL Engineering Services revenue for 2021 forecast to grow by a low single digit percentage, compared to 2020, and Segment Adjusted EBIT to revenue ratio⁽²⁾ expected to be between 8% and 10%.

Investor day to be held on September 28, 2021

• SNC-Lavalin's management will provide an update on the Company's strategy and outlook, including growth opportunities in EDPM, Nuclear and Infrastructure Services.

IFRS First Quarter Financial Highlights

(in thousands of dollars, unless otherwise indicated)	First Quarter
	2021	2020*
Revenue	1,819,739	1,868,519
Attributable to SNC-Lavalin Shareholders:
Net income from continuing operations	67,743	950
Diluted EPS from continuing operations ($)	0.39	0.01
Net income (loss) from discontinued operations	5,302	(66,914)
Net income (loss)	73,045	(65,964)
Net cash generated from operating activities	5,612	23,354
Cash and cash equivalents as at March 31	702,685	2,102,324
Recourse debt and limited recourse debt as at March 31	1,396,306	2,568,159
Backlog from continuing operations as at March 31	13,214,000	13,938,200

Non-IFRS First Quarter Financial Highlights

(in thousands of dollars, unless otherwise indicated)	First Quarter
	2021	2020^*
Attributable to SNC-Lavalin Shareholders:
Adjusted net income from PS&PM^(4)	83,424	61,075
Adjusted diluted EPS from PS&PM^(5) ($)	0.48	0.35
Adjusted EBITDA from PS&PM^(3)	164,122	136,515
Adjusted EBITDA from PS&PM to revenue from PS&PM ratio^(8)	9.1%	7.5%

*Comparative figures have been re-presented as a result of an operation discontinued in 2020

CEO Commentary

"We had a strong start to the year with a first quarter in line with our expectations, as our Engineering Services business, which includes the EDPM, Nuclear and Infrastructure Services segments, delivered another solid quarterly performance. We are seeing a strong pipeline of new work across all of our core geographies, as governments continue investing in new projects," said Ian L. Edwards, President and CEO of SNC-Lavalin Group Inc. "SNC-Lavalin is well positioned for growth and a sustainable future. A fundamental part of that future is our commitment to ESG, and today I am proud to announce specific targets to increase the representation of women throughout the Company as part of our ED&I objectives, as well as a clear path to Net Zero Carbon Emissions by 2030." 

First Quarter Results

The Company's net income from continuing operations attributable to SNC-Lavalin shareholders was $67.7 million, or $0.39 per diluted share in Q1 2021, compared to $0.9 million, or $0.01 per diluted share, for the corresponding period in 2020. This was comprised of net income from continuing operations from PS&PM of $61.0 million, or $0.35 per diluted share and net income from continuing operations from Capital of $6.7 million, or $0.04 per diluted share in Q1 2021. For the corresponding period in 2020, net income from continuing operations was comprised of net income from continuing operations from PS&PM of $21.0 million, or $0.12 per diluted share and net loss from continuing operations from Capital of $20.0 million, or $(0.11) per diluted share. Q1 2021 net income included amortization of intangible assets related to business combinations of $23.3 million ($19.1 million after taxes), while Q1 2020 included amortization of intangible assets related to business combinations of $40.5 million ($33.0 million after taxes) and a fair value revaluation of Highway 407 ETR contingent consideration receivable of $57.2 million ($49.6 million after taxes).

Adjusted net income from PS&PM⁽⁴⁾ in Q1 2021 increased by 36.6% and totaled $83.4 million, or $0.48 per diluted share, compared with $61.1 million, or $0.35 per diluted share, for Q1 2020. The increase was mainly due to a higher Segment Adjusted EBIT⁽¹⁾ in SNCL Engineering Services and lower Corporate selling, general and administrative expenses, partially offset by a negative Segment Adjusted EBIT⁽¹⁾ in SNCL Projects and a lower Segment Adjusted EBIT⁽¹⁾ in Capital.

Lines of Business

SNCL Engineering Services

(in thousands of dollars, unless otherwise indicated)	First Quarter
	2021	2020
Revenue	1,515,125	1,534,769
Segment Adjusted EBIT^(1)	132,790	111,532
Segment Adjusted EBIT to revenue ratio^(2)	8.8%	7.3%
Backlog as at March 31	11,083,900	10,965,400

The SNCL Engineering Services line of business (comprised of the EDPM, Nuclear and Infrastructure Services segments) continued to deliver solid results, benefitting from a diversified business model, long-term client relationships and a strong public sector focus.

As expected, since COVID-19 did not significantly impact SNCL Engineering Services in Q1 2020, revenue for Q1 2021, compared to Q1 2020, decreased by a low single digit percentage. Revenue from SNCL Engineering Services totaled $1,515.1 million in Q1 2021, a 1.3% decrease from the corresponding period in 2020, while Segment Adjusted EBIT⁽¹⁾ totaled $132.8 million in Q1 2021, representing a margin of 8.8%, compared to $111.5 million in Q1 2020, representing a margin of 7.3%. SNCL Engineering Services total backlog increased by 1.1% and amounted to $11.1 billion as at March 31, 2021, compared to $11.0 billion as at March 31, 2020. Total bookings for Q1 2021 amounted to $1.7 billion despite the current challenging COVID-19 environment, representing a 1.15 booking-to-revenue ratio⁽⁶⁾.

EDPM revenue amounted to $933.2 million in Q1 2021, compared to $945.1 million in Q1 2020. EDPM Segment Adjusted EBIT⁽¹⁾ totaled $80.6 million, representing a margin of 8.6% in Q1 2021, compared to $57.5 million in Q1 2020, representing a margin of 6.1%. The Segment Adjusted EBIT⁽¹⁾ improvement in Q1 2021 mainly reflected solid performance in the core geographies of the UK, Canada and the United States, improved margins in the Middle East as a result of actions to adjust the cost base over the past year, and the settling of a small number of project final accounts. Backlog was strong at March 31, 2021, at $2.9 billion, an increase of 10.4% compared to March 31, 2020. Bookings in Q1 2021 totaled $1.0 billion, representing a 1.07 booking-to-revenue ratio⁽⁶⁾.

Nuclear revenue amounted to $229.1 million in Q1 2021, compared to $236.9 million in Q1 2020. Nuclear Segment Adjusted EBIT⁽¹⁾ totaled $31.8 million in Q1 2021, representing a margin of 13.9%, compared to $36.7 million in Q1 2020, representing a margin of 15.5%. The revenue variance was mainly due to a decreased level of activity in Asia and Canada, as some projects achieved major delivery milestones in 2020, partially offset by higher volume in Europe and the United States. Backlog totaled $0.9 billion at March 31, 2021, a decrease of 16.6% compared to March 31, 2020. The backlog decrease over the last twelve months was mainly due to the progress on the Company's major refurbishment long-term contracts in Canada. The segment continued to be awarded extensions to ongoing contracts in Canada and other long-term contracts in the US and the UK.

Infrastructure Services revenue amounted to $352.8 million in Q1 2021, in line with Q1 2020. Infrastructure Services Segment Adjusted EBIT⁽¹⁾ totaled $20.4 million in Q1 2021, representing a margin of 5.8%, compared to $17.3 million in Q1 2020, representing a margin of 4.9%. The Segment Adjusted EBIT⁽¹⁾ increase was mainly due to a higher level of Operations & Maintenance activities combined with improved margins from Linxon. Backlog totaled $7.3 billion at March 31, 2021, in line with March 31, 2020. Bookings in Q1 2021 totaled $0.5 billion, representing a 1.50 booking-to-revenue ratio⁽⁶⁾. Infrastructure Services backlog includes long-term Operations & Maintenance contracts, which can cover periods of up to 40 years.

SNCL Projects

(in thousands of dollars)	First Quarter
	2021	2020*
Revenue	282,881	287,508
Segment Adjusted EBIT^(1)	(8,193)	1,847
LSTK construction contracts backlog decrease LSTK construction contracts backlog as at March 31	241,500 1,596,600	32,100 2,725,100

*Comparative figures have been re-presented as a result of an operation discontinued in 2020

Backlog for the SNCL Projects line of business (comprised of the Resources and Infrastructure EPC Projects segments) at the end of March 31, 2021, totaled $2.0 billion and included $1.6 billion of LSTK construction contracts and $0.4 billion of reimbursable and engineering services contracts. SNCL Projects backlog for LSTK construction contracts decreased by $241.5 million in Q1 2021, as the Company continued to execute on its LSTK projects.

SNCL Projects revenues amounted to $282.9 million in Q1 2021, compared to $287.5 million in Q1 2020. SNCL Projects Segment Adjusted EBIT⁽¹⁾ was negative $8.2 million in Q1 2021, compared to a positive Segment Adjusted EBIT⁽¹⁾ of $1.8 million in Q1 2020. The variance was mainly due to the Infrastructure EPC Projects segment, which recorded a negative Segment Adjusted EBIT⁽¹⁾ of $10.5 million in Q1 2021, compared to a positive Segment Adjusted EBIT⁽¹⁾ of $3.8 million in Q1 2020. This was mainly due to a reduction in gross margin, as the first quarter of 2021 included costs in closing out certain projects nearing completion and the impacts of COVID-19, partially offset by a reduction in overhead expenses.

The Company continues to target Q2 2021 for the closing of the binding agreement to sell the Oil & Gas business to Kentech Corporate Holdings Limited, announced on February 9, 2021.

Capital

(in thousands of dollars)	First Quarter
	2021	2020
Revenue	21,733	46,242
Segment Adjusted EBIT^(1)	18,722	42,028
Backlog as at March 31	153,400	171,900

Capital revenue and Segment Adjusted EBIT⁽¹⁾ totaled $21.7 million and $18.7 million, respectively, in Q1 2021, compared to $46.2 million and $42.0 million, respectively, in Q1 2020. The variance was mainly due to a decreased contribution from Highway 407 ETR, as no dividend was received from this investment in Q1 2021, compared to a dividend of $21.1 million in Q1 2020. Despite a reduction in traffic volumes since the beginning of the COVID-19 pandemic, SNC-Lavalin's management continues to have confidence in the long-term value of the Highway 407 ETR concession.

Operating Cash Flow

The Company's net cash generated from operating activities was $5.6 million in Q1 2021, compared to $23.4 million in Q1 2020. The Company continues to anticipate that its net cash generated from operating activities in 2021 will be broadly breakeven, as positive operating cash flow from SNCL Engineering Services is expected to be largely offset by an operating cash flow usage in SNCL Projects.

Financial Position

As at March 31, 2021, the Company had $702.7 million of cash and cash equivalents. The Company also has an additional $2.0 billion of available drawing capacity under its revolving credit facility. In March 2021, the Company repaid at maturity $175.0 million representing all of the outstanding Series 3 Debentures. As at March 31, 2021, the Company had $1.0 billion of recourse debt and $0.4 billion of limited recourse debt and its net recourse debt to EBITDA ratio⁽⁷⁾ calculated in accordance with the terms of the Company's Credit Agreement was 1.8, below the required covenant level of 3.75.

Investor Day

SNC-Lavalin will hold a virtual Investor Day on Tuesday, September 28, 2021, where the Company's leaders will provide an update on the Company's strategy, outlook and continuing growth opportunities.

SNCL Engineering Services 2021 Outlook maintained

The following statements are based on current expectations. These statements are forward-looking and the actual results could differ materially. The 2021 Outlook section should be read in conjunction with the information on forward-looking statements at the end of this release.

The Company continues to expect that SNCL Engineering Services revenue for full year 2021 to increase by a low single digit percentage, compared to 2020, and for its Segment Adjusted EBIT to revenue ratio⁽²⁾ to be between 8% and 10% for the same period.

This outlook is based on the assumptions and methodology described in the Company's Annual 2020 Management's Discussion and Analysis under the heading, "How We Budget and Forecast Our Results" and the "Forward-Looking Statements" section below and is subject to the risks and uncertainties summarized therein and in the Company's 2020 Annual Management's Discussion and Analysis.

Quarterly Dividend

The Board of Directors today declared a cash dividend of $0.02 per share, unchanged from the previous quarter. The dividend is payable on June 11, 2021, to shareholders of record on May 28, 2021. This dividend is an "eligible dividend" for Canadian federal and provincial income tax purposes.

First Quarter 2021 Conference Call / Webcast

SNC-Lavalin will hold a conference call today at 1:30 p.m. Eastern Time to review results for its first quarter of 2021. A live audio webcast of the conference call and an accompanying slide presentation will be available at www.investors.snclavalin.com. The call will also be accessible by telephone, please dial toll free at 1 800 319 4610 in North America or dial 1 604 638 5340 outside North America. You can also use the following numbers: 416 915 3239 in Toronto, 514 375 0364 in Montreal, or 080 8101 2791 in the United Kingdom. A recording of the conference call and its transcript will be available on the Company's website within 24 hours following the call.

Annual Meeting of Shareholders / Webcast

SNC-Lavalin will also hold its virtual annual meeting of shareholders today at 11:00 a.m. Eastern Time. Registered shareholders and duly appointed and registered proxyholders can attend the meeting online at https://web.lumiagm.com/439549909. For more information regarding this virtual event, please visit SNC-Lavalin's 2021 Annual Shareholders' Meeting dedicated web page at www.snclavalin.com/en/investors/agm-2021. 

About SNC-Lavalin

Founded in 1911, SNC-Lavalin is a fully integrated professional services and project management company with offices around the world. SNC-Lavalin connects people, technology and data to help shape and deliver world-leading concepts and projects, while offering comprehensive innovative solutions across the asset lifecycle. Our expertise is wide-ranging — consulting & advisory, intelligent networks & cybersecurity, design & engineering, procurement, project & construction management, operations & maintenance, decommissioning and sustaining capital – and delivered to clients in four strategic sectors: EDPM (engineering, design and project management), Infrastructure, Nuclear and Resources, supported by Capital. People. Drive. Results. www.snclavalin.com

Non-IFRS Financial Measures and Additional IFRS Measures

The Company reports its financial results in accordance with IFRS. However, the following non–IFRS measures and additional IFRS measures are used by the Company in this press release: Segment Adjusted EBIT, Segment Adjusted EBIT to revenue ratio, Adjusted EBITDA, Adjusted net income (loss) attributable to SNC-Lavalin shareholders, Adjusted diluted EPS, Booking-to-revenue ratio, and Adjusted EBITDA from PS&PM to revenue from PS&PM ratio. Additional details for these non-IFRS measures can be found below or in section 9 of SNC-Lavalin's Management's Discussion and Analysis ("MD&A") for the first quarter of 2021, filed with the securities regulatory authorities in Canada, available on SEDAR at www.sedar.com and on the Company's website at www.snclavalin.com under the "Investors" section. Non-IFRS financial measures do not have any standardized meaning under IFRS and therefore may not be comparable to similar measures presented by other issuers. Management believes that, in addition to conventional measures prepared in accordance with IFRS, these non-IFRS measures provide additional insight into the Company's operating performance and financial position and certain investors may use this information to evaluate the Company's performance from period to period. However, these non-IFRS financial measures have limitations and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. Furthermore, certain non-IFRS financial measures and additional IFRS measures are presented separately for PS&PM, by excluding components related to Capital, as the Company believes that such measures are useful as these PS&PM activities are usually analyzed separately by the Company. Reconciliations of non-IFRS measures to the most comparable IFRS measures are set forth in Section 9.3 of the first quarter 2021 MD&A and certain of those reconciliations are set out at the end of this press release.

⁽¹⁾ Segment Adjusted EBIT consists of revenues allocated to the applicable segment less i) direct costs of activities, ii) directly related selling, general and administrative expenses, and iii) corporate selling, general and administrative expenses that are allocated to segments. Segment Adjusted EBIT is the measure used by management to evaluate the performance of the Company's segments, and gives investors an indication of the profitability of each segment, as it excludes certain items that the Company believes are not reflective of the segment's underlying operations. Such financial measure also facilitates period-to-period comparisons of the underlying segment's performance. Expenses that are not allocated to the Company's segments are: certain corporate selling, general and administrative expenses that are not directly related to projects or segments, impairment loss arising from expected credit losses, gain (loss) arising on financial assets (liabilities) at fair value through profit or loss, restructuring and transformation costs, amortization of intangible assets related to business combinations, gains (losses) on disposals of PS&PM businesses and Capital investments (or adjustments to gains or losses on such disposals), gain on remeasurement of assets of disposal group classified as held for sale to fair value less cost to sell, net financial expenses and income taxes. It should be noted that the following adjustments were removed from the list of adjustments disclosed in prior periods as there was no adjustment of this nature in the current periods and the previous year: acquisition-related costs and integration costs and the federal charges settlement (PPSC) expense. See the reconciliation of total Segment Adjusted EBIT to net income (loss) in the Q1 2021 MD&A, Section 4.

⁽²⁾ Segment Adjusted EBIT to revenue ratio is a measure used to analyze the profitability of the Company's segments and facilitate period-to-period comparisons, as well as comparison with peers. This financial measure is calculated by dividing the amount of Segment Adjusted EBIT of a given period to the amount of revenue for the same period.

⁽³⁾ Adjusted EBITDA is a non-IFRS financial measure used by management to facilitate operating performance comparison from period to period and to prepare annual operating budgets and forecasts. Adjusted EBITDA is based on EBITDA from continuing operations and excludes charges related to restructuring and transformation costs, gains (losses) on disposals of PS&PM businesses and Capital investments (or adjustments to gains or losses on such disposals), the adjustment to provision for the Pyrrhotite Case litigation (described in the 2020 Annual MD&A, as updated in Note 12 to the Company's unaudited interim condensed consolidated financial statements for the first quarter ended March 31, 2021), the fair value revaluation of the Highway 407 ETR contingent consideration receivable, the GMP equalization expenses and the gain on remeasurement of assets of disposal group classified as held for sale to fair value less cost to sell. It should be noted that the following adjustments were removed from the list of adjustments disclosed in prior periods as there was no adjustment of this nature in the current periods and the previous year: acquisition-related costs and integration costs and the federal charges settlement (PPSC) expense. The Company believes that Adjusted EBITDA is useful for providing securities analysts, investors and others with additional information to assist them in understanding components of its financial results, including a more complete understanding of factors and trends affecting the Company's operating performance. Adjusted EBITDA is believed to supplement information provided, as it highlights trends that may not otherwise be apparent when relying solely on IFRS financial measures. Refer to the Q1 2021 MD&A, Section 9.3 for a reconciliation of Adjusted EBITDA to net income (loss) from continuing operations as determined under IFRS. Such reconciliation is provided on a consolidated basis and also separately for PS&PM activities, as the Company believes that such measures are useful since these PS&PM activities are analyzed separately by the Company.

⁽⁴⁾ Adjusted net income (loss) attributable to SNC-Lavalin shareholders is defined as net income (loss) attributable to SNC-Lavalin shareholders from continuing operations, adjusted for certain specific items that are significant but are not, based on management's judgement, reflective of the Company's underlying operations. These adjustments are restructuring and transformation costs, amortization of intangible assets related to business combinations, gains (losses) on disposals of PS&PM businesses and Capital investments (or adjustments to gains or losses on such disposals), the fair value revaluation of the Highway 407 ETR contingent consideration receivable, the adjustment to provision for the Pyrrhotite Case litigation, gain on remeasurement of assets of disposal group classified as held for sale to fair value less cost to sell, the GMP equalization expense and income taxes and non-controlling interest on these adjustments. It should be noted that the following adjustments were removed from the list of adjustments disclosed in prior periods as there was no adjustment of this nature in the current periods and the previous year: acquisition-related costs and integration costs, financing costs related to the agreement to sell shares of Highway 407 ETR and the federal charges settlement (PPSC) expense. The Company believes that Adjusted net income (loss) attributable to SNC-Lavalin shareholders is useful for providing securities analysts, investors and others with additional information to assist them in understanding components of its financial results, including a more complete understanding of factors and trends affecting the Company's operating performance. Adjusted net income (loss) attributable to SNC-Lavalin shareholders is believed to supplement information provided, as it highlights trends that may not otherwise be apparent when relying solely on IFRS financial measures. It is also used by management to evaluate the performance of the activities of the Company from period to period. Refer to the Q1 2021 MD&A, Section 9.3 for a reconciliation of Adjusted net income (loss) attributable to SNC-Lavalin shareholders to net income (loss) as determined under IFRS. Such reconciliation is provided on a consolidated basis and also separately for PS&PM activities, as the Company believes that such measures are useful since these PS&PM activities are analyzed separately by the Company.

 ⁽⁵⁾ Adjusted diluted earnings per share ("Adjusted diluted EPS") is defined as adjusted net income (loss) attributable to SNC-Lavalin shareholders from continuing operations, divided by the diluted weighted average number of outstanding shares for the period. Adjusted diluted EPS is a non-IFRS financial measure that is an indicator of the financial performance of the Company's activities and allows the Company to present the adjusted net income (loss) attributable to SNC-Lavalin shareholders on a diluted share basis. Refer to the Q1 2021 MD&A, Section 9.3 for the reconciliation of Adjusted diluted EPS to diluted EPS (namely, net income (loss) per diluted share) as determined under IFRS. Such reconciliation is provided on a consolidated basis and also separately for PS&PM activities, as the Company believes that such measures are useful since these PS&PM activities are usually analyzed separately by the Company.

 ⁽⁶⁾ Booking-to-revenue ratio corresponds to contract bookings divided by revenues, for a given period. This measure provides a useful basis for assessing the renewal of business, as it compares the value of performance obligations added in a given period to the amount of revenue recognized upon satisfying performance obligations in the same given period.

⁽⁷⁾ While net recourse debt and EBITDA are non-IFRS measures, the reference to the ratio of "net recourse debt to EBITDA" is a defined term under and calculated in accordance with the Company's Credit Agreement and is not a specific reference to the actual non-IFRS measures in question.

⁽⁸⁾ Adjusted EBITDA from PS&PM to revenue from PS&PM ratio is a measure used to analyze the profitability of the Company's PS&PM line of business and facilitate period-to-period comparisons, as well as comparison with peers. This financial measure is calculated by dividing the amount of Segment Adjusted EBITDA from PS&PM of a given period to the amount of revenue from PS&PM for the same period.

Reconciliation of IFRS net income from continuing operations to Adjusted net income from PS&PM

	First Quarter 2021		First Quarter 2020^1
	In M$	Diluted EPS In $	In M$	Diluted EPS In $
Net income from continuing operations attributable to SNC-Lavalin shareholders (IFRS)	67.7	0.39	0.9	0.01
Restructuring and transformation costs	4.9		0.5
Amortization of intangible assets related to business combination	23.3		40.5
Fair value revaluation of Highway 407 ETR contingent consideration receivable^2	-		57.2
Adjustment to provision for the Pyrrhotite Case litigation^3	-		10.0
Gain on remeasurement of assets of disposal group classified as held for sale to fair value less cost to sell	(0.5)		-
Income taxes and non-controlling interest on adjustments above	(5.4)		(18.4)
Total adjustments	22.4	0.13	89.7	0.51
Adjusted net income attributable to SNC-Lavalin shareholders (non-IFRS)	90.1	0.51	90.7	0.52
Segment adjusted EBIT from Capital	(18.7)		(42.0)
Corporate selling, general and administrative expenses from Capital	7.0		7.0
Net financial expenses from Capital	4.2		4.3
Income taxes from Capital	0.8		1.1
Total adjustments to exclude Capital	(6.7)	(0.04)	(29.6)	(0.17)
Adjusted net income from PS&PM (non-IFRS)	83.4	0.48	61.1	0.35

Note that certain totals and subtotals may not reconcile due to rounding

¹ Comparative figures have been re-presented as a result of an operation discontinued in 2020

² included in "Gain (loss) arising on financial assets (liabilities) at fair value through profit or loss"

³ included in "Corporate selling, general and administrative expenses"

Forward-Looking Statements

Reference in this press release, 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 associates, or SNC-Lavalin Group Inc. or one or more of its subsidiaries or joint arrangements or associates.

Statements made in this press release 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", "outlooks", "estimates", "expects", "goal", "intends", "may", "plans", "projects", "forecasts", "should", "synergies", "target", "vision", "will", "likely", 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; ii) business and management strategies and the expansion and growth of the Company's operations; and iii) the expected additional impacts of the ongoing COVID-19 pandemic on the business and its operating and reportable segments as well as elements of uncertainty related thereto. 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 press release 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 2020 Annual MD&A (particularly in the sections entitled "Critical Accounting Judgments and Key Sources of Estimation Uncertainty" and "How We Analyze and Report our Results") and as updated in the first quarter 2021 MD&A. 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 risks include, but are not limited to: (a) additional impacts of the COVID-19 pandemic; (b) execution of the strategic direction announced in 2019; (c) fixed-price contracts or the Company's failure to meet contractual schedule, performance requirements or to execute projects efficiently; (d) remaining performance obligations; (e) contract awards and timing; (f) being a provider of services to government agencies; (g) international operations; (h) Nuclear liability; (i) ownership interests in investments; (j) dependence on third parties; (k) joint ventures and partnerships; (l) information systems and data and compliance with privacy legislation; (m) competition; (n) professional liability or liability for faulty services; (o) monetary damages and penalties in connection with professional and engineering reports and opinions; (p) insurance coverage; (q) health and safety; (r) qualified personnel; (s) work stoppages, union negotiations and other labour matters; (t) extreme weather conditions and the impact of natural or other disasters and global health crises; (u) divestitures and the sale of significant assets; (v) intellectual property; (w) liquidity and financial position; * indebtedness; (y) impact of operating results and level of indebtedness on financial situation; (z) security under the CDPQ Loan Agreement; (aa) dependence on subsidiaries to help repay indebtedness; (bb) dividends; (cc) post-employment benefit obligations, including pension-related obligations; (dd) working capital requirements; (ee) collection from customers; (ff) impairment of goodwill and other assets; (gg) the impact on the Company of legal and regulatory proceedings, investigations and litigation settlements; (hh) further regulatory developments as well as employee, agent or partner misconduct or failure to comply with anti-bribery and other government laws and regulations; (ii) reputation of the Company; (jj) inherent limitations to the Company's control framework; (kk) environmental laws and regulations; (ll) Brexit; (mm) global economic conditions; (nn) fluctuations in commodity prices; and (oo) income taxes.

The Company cautions that the foregoing list of factors is not exhaustive. For more information on risks and uncertainties, and assumptions that could cause the Company's actual results to differ from current expectations, please refer to the sections "Risks and Uncertainties", "How We Analyze and Report Our Results" and "Critical Accounting Judgments and Key Sources of Estimation Uncertainty" in the Company's 2020 Annual MD&A and as updated in the first quarter 2021 MD&A, each filed with the securities regulatory authorities in Canada, available on SEDAR at www.sedar.com and on the Company's website at www.snclavalin.com under the "Investors" section.

The forward-looking statements herein reflect the Company's expectations as at the date of this press release and are subject to change after this date. The Company does not undertake to update publicly or to revise any such forward-looking statements whether as a result of new information, future events or otherwise, unless required by applicable legislation or regulation.

The Company's unaudited condensed consolidated interim financial statements for the three-month period ended March 31, 2021, together with its MD&A for the corresponding period, can be accessed on the Company's website at www.snclavalin.com and on www.sedar.com.

SOURCE SNC-Lavalin

Media: Harold Fortin, Senior Director, External Communications, 514-393-8000 ext. 56127, [email protected]; Investors: Denis Jasmin, Vice President, Investor Relations, 514-393-8000 ext. 57553, [email protected]

Related Links

www.snclavalin.com