SNC-Lavalin Reports First Quarter 2022 Results and Reaffirms 2022 Outlook

• Q1 2022 revenue of $1.9 billion, a 3.8% increase compared to Q1 2021
• Net income from continuing operations attributable to SNC-Lavalin shareholders of $24.8 million, or $0.14 per diluted share, compared to a net income of $67.7 million, or $0.39 per diluted share in Q1 2021
• SNCL Services revenue of $1.7 billion, an increase of 6.8%, or 8.4% based on organic revenue growth⁽¹⁾⁽⁶⁾, compared to Q1 2021, representing a higher growth rate than the Company's full year outlook
• SNCL Services Segment Adjusted EBIT of $126.7 million, representing a 7.6% margin
• Increased market opportunities through our Pivoting to Growth Strategy led to elevated bidding and business development expenses, impacting margins
• LSTK Projects Segment Adjusted EBIT of negative $30.5 million
• SNCL Services backlog continued to be strong at $11.2 billion as at March 31, 2022; LSTK Projects backlog reduced by $210.3 million from the prior quarter
• Net cash used for operating activities of $134.0 million
• Reaffirming the Company's full year 2022 outlook, announced on March 3, 2022

MONTREAL, May 5, 2022 /CNW/ - SNC-Lavalin Group Inc. (TSX: SNC), a fully integrated professional services and project management company with offices around the world, today announced its results for the first quarter ended March 31, 2022 and reaffirmed its full year 2022 outlook.

"Our SNCL Services business continued its momentum from prior quarters and reported another period of revenue growth. We also progressed on the winding down of our last LSTK projects, decreasing the LSTK Projects backlog by 18% in the first three months of the year," said Ian L. Edwards, President and CEO of SNC-Lavalin Group Inc. "Results during the first quarter highlight the continued execution of our Pivoting to Growth Strategy, our path for long-term value creation. Robust growth from our Engineering Services segment, strong performance of our Nuclear and O&M segments and the sustained strong bidding activities further underpins our confidence in delivering on our full-year 2022 outlook."

"Our net zero carbon focus and dedication to develop clean energy and infrastructure decarbonization solutions for our customers and our planet will continue to drive growth. We recently committed to the Science Based Targets Initiative, outlining our own path to Net Zero. We are excited about the vast potential of our best-in-class services portfolio and the opportunity to leverage our end-to-end services expertise to lead in solving the challenges driven by a world that is heavily reinvesting for sustainability, resilience, and impact in the built environment," added Mr. Edwards.

First Quarter Results

Professional Services & Project Management are collectively referred to as "PS&PM" to distinguish them from "Capital" activities. PS&PM groups together five of the Company's segments, namely Engineering Services, Nuclear, Linxon, Operation & Maintenance ("O&M"), and Lum-Sum Turnkey ("LSTK") Projects, while Capital is its own reportable segment and separate from PS&PM.

IFRS Financial Highlights

			Q1 2022^A	Q1 2021^A
Revenue
From PS&PM			1,871.7	1,798.0
From Capital			16.4	21.7
Total			1,888.1	1,819.7
Attributable to SNC-Lavalin shareholders
Net income from continuing operations:
From PS&PM			16.6	61.0
From Capital			8.2	6.7
Total			24.8	67.7
Diluted EPS from continuing operations:
From PS&PM ($)			0.09	0.35
From Capital ($)			0.05	0.04
Total ($)			0.14	0.39
Net income from discontinued operations			-	5.3
Net income			24.8	73.0
Net cash generated from (used for) operating activities			(134.0)	5.6
Backlog from continuing operations as at March 31
SNCL Services			11,182.1	11,464.0
Capital			35.0	153.4
LSTK Projects			956.6	1,596.6
Total			12,173.7	13,214.0

Non-IFRS Financial Highlights

			Q1 2022^A	Q1 2021^A
Attributable to SNC-Lavalin shareholders
Adjusted net income from PS&PM^(1)			39.4	83.4
Adjusted diluted EPS from PS&PM^(1)(2) ($)			0.22	0.48
Adjusted EBITDA from PS&PM^(1)			112.6	164.1
Adjusted EBITDA from PS&PM to revenue from PS&PM ratio^(1)(3)			6.0%	9.1%

All figures in millions of dollars, except otherwise indicated

Certain totals and subtotals may not reconcile due to rounding

^A For the three-month period ended March 31

Lines of Business Performance

SNCL Services

			Q1 2022^A	Q1 2021^A,B
Segment revenue
Engineering Services			1,138.2	1,049.6
Nuclear			232.1	229.1
O&M			136.5	141.6
Linxon			150.5	131.9
Total			1,657.3	1,552.3
Segment Adjusted EBIT
Engineering Services			85.2	86.2
Nuclear			34.3	31.8
O&M			11.7	12.4
Linxon			(4.5)	6.1
Total			126.7	136.5
Segment Adjusted EBIT to segment revenue ratio			7.6%	8.8%
Backlog as at March 31
Engineering Services			3,861.1	3,617.3
Nuclear			802.2	881.7
O&M			5,598.4	5,926.2
Linxon			920.4	1,038.7
Total			11,182.1	11,464.0

All figures in millions of dollars

^A For the three-month period ended March 31

^B Comparative figures have been restated to reflect the new reportable segments effective as of January 1, 2022

The SNCL Services line of business (comprised of the Engineering Services, Nuclear, O&M and Linxon segments) delivered strong organic revenue growth this quarter, benefitting from its global capabilities, unique end-to-end services, decarbonization and sustainable solutions, long-term client relationships and a strong public sector focus.

• Q1 2022 revenue of $1,657.3 million, was up 6.8% compared to Q1 2021. SNCL Services had an organic revenue growth⁽¹⁾⁽⁶⁾ of 8.4% in Q1 2022 compared to Q1 2021, a higher growth rate than the Company's full year outlook range.
• Primarily driven by an organic revenue growth⁽¹⁾⁽⁶⁾ of 10.0% in Engineering Services and 21.3% in Linxon.
• Q1 2022 Segment Adjusted EBIT was $126.7 million, representing a margin of 7.6%, slightly lower than the Company's full year outlook range. Increased market opportunities through our Pivoting to Growth Strategy led to elevated bidding and business development expenses, impacting margins in Q1 2022.
• Engineering Services Segment Adjusted EBIT of $85.2 million represents a margin of 7.5%.
• Engineering Services segment adjusted EBITDA to segment net revenue ratio⁽¹⁾⁽⁷⁾ of 13.0%.
• Nuclear Segment Adjusted EBIT of $34.3 million represents a margin of 14.8%.
• O&M Segment Adjusted EBIT of $11.7 million represents a margin of 8.6%.
• Linxon Segment Adjusted EBIT of $(4.5) million represents a margin of (3.0)%.
• Total SNCL Services backlog amounted to $11.2 billion as at March 31, 2022, which included $1.5 billion of bookings in Q1 2022, representing a 0.94 booking-to-revenue ratio⁽¹⁾⁽⁴⁾.
• Engineering Services backlog increased 6.7%, compared to March 31, 2021, totaling $3.9 billion as at March 31, 2022. Bookings in Q1 2022 totaled $1.2 billion, representing a 1.08 booking-to-revenue ratio⁽¹⁾⁽⁴⁾.

LSTK Projects

			Q1 2022^A	Q1 2021^A,B
Revenue			214.4	245.8
Segment Adjusted EBIT			(30.5)	(11.9)
Backlog decrease			210.3	241.5
Backlog as at March 31			956.6	1,596.6

All figures in millions of dollars

^A For the three-month period ended March 31

^B Comparative figures have been restated to reflect the new reportable segments effective as of January 1, 2022

The Company continues to execute its LSTK projects exit strategy.

• The LSTK Projects segment backlog decreased by 18.0% during the quarter, as the Company continued to execute and progress on its last remaining LSTK projects. Backlog totaled $956.6 million as at March 31, 2022, compared to $1.2 billion as at December 31, 2021 and to $1.6 billion as at March 31, 2021.
• Q1 2022 Segment Adjusted EBIT was negative $30.5 million.
• Recognized $20.0 million in the quarter of previously disclosed $300 million* potential future additional financial risks to complete the projects.
• Balance of negative Segment Adjusted EBIT mainly includes segment overhead costs needed to support the projects.

* Announced on March 3, 2022. See also the assumptions and methodology set out in Section 2.2 of the Company's 2021 Annual Management's Discussion and Analysis ("2021 MD&A") under the heading "How We Budget and Forecast Our Results", particularly but not limited to the Source of Variation titled "Unforeseen impacts related to ongoing and continued duration of COVID-19 pandemic" and the "Forward-Looking Statements" section in this press release.

Capital

			Q1 2022^A	Q1 2021^A
Revenue			16.4	21.7
Segment Adjusted EBIT			12.4	18.7
Backlog as at March 31			35.0	153.4

All figures in millions of dollars

^A For the three-month period ended March 31

The Q1 2022 Capital Segment Adjusted EBIT decrease was mainly due to the disposal of InPower BC G.P. in February 2022 and a lower contribution from certain other Capital investments. No dividend was received from Highway 407 ETR in Q1 2022 and Q1 2021.

Operating Cash Flow and Financial Position

• Net cash used for operating activities amounted to $134.0 million in Q1 2022, compared to a net cash generated from operating activities of $5.6 million in Q1 2021. The negative operating cash flows in Q1 2022 were mainly due to operating cash outflows related to the LSTK projects, partially offset by operating cash inflows from SNCL Services.
• Net cash generated from operating activities in SNCL Services of $58.7 million in Q1 2022.
• Cash and cash equivalents of $506.0 million as at March 31, 2022.
• Recourse debt of $1.2 billion and limited recourse debt of $0.4 billion as at March 31, 2022.
• Net limited recourse and recourse debt to Adjusted EBITDA ratio⁽¹⁾⁽⁵⁾ of 2.3.

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 2, 2022, to shareholders of record on May 19, 2022. This dividend is an "eligible dividend" for Canadian federal and provincial income tax purposes.

First Quarter 2022 Conference Call / Webcast

SNC-Lavalin will hold a conference call today at 8:30 a.m. (Eastern Time) to review results for its first quarter of 2022. 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

SNC-Lavalin will also hold its Annual Meeting of Shareholders today at 11:00 a.m. (Eastern Time). Shareholders of record as of the close of business on March 14, 2022 and duly appointed proxyholders are entitled to attend the meeting virtually at https://web.lumiagm.com/462713996. Additional information on the event can also be found at www.snclavalin.com/en/investors/agm-2022. Information related to the annual meeting of shareholders can also be found in SNC-Lavalin's Management Proxy Circular available on SEDAR at www.sedar.com and on the Company's website at www.snclavalin.com under "Investors"/"Investor's Briefcase".

About SNC-Lavalin

Founded in 1911, SNC-Lavalin is a fully integrated professional services and project management company with offices around the world dedicated to engineering a better future for our planet and its people. We create sustainable solutions that connect people, technology and data to design, deliver and operate the most complex projects. We deploy global capabilities locally to our clients and deliver unique end-to-end services across the whole life cycle of an asset including consulting, advisory & environmental services, intelligent networks & cybersecurity, design & engineering, procurement, project & construction management, operations & maintenance, decommissioning and capital. – and delivered to clients in key strategic sectors such as Engineering Services, Nuclear, Operations & Maintenance and Capital. News and information are available at snclavalin.com or follow us on LinkedIn and Twitter.

⁽¹⁾ Non-IFRS financial measures and ratios, supplementary financial measures and non-financial information do not have a standardized definition within International Financial Reporting Standards (IFRS), and other issuers may define these measures differently and, accordingly, these may not be comparable to similar measures used by other issuers. Refer to the sections "Non-IFRS Financial Measures and Ratios, Supplementary Financial Measures and Non-Financial Information" and "Reconciliations and Calculations" of this press release.

⁽²⁾ Adjusted diluted EPS is a non-IFRS ratio based on adjusted net income (loss), itself a non-IFRS financial measure.

⁽³⁾ Adjusted EBITDA to revenue ratio is a non-IFRS ratio based on Adjusted EBITDA, itself a non-IFRS financial measure.

⁽⁴⁾ Booking-to-revenue ratio is a non-IFRS ratio based on contract bookings.

⁽⁵⁾ Net limited recourse and recourse debt to Adjusted EBITDA ratio is a non-IFRS ratio based on net limited recourse and recourse debt at the end of a given period and Adjusted EBITDA of the corresponding trailing twelve-month period, both of which are non-IFRS financial measures.

⁽⁶⁾ Organic revenue growth (contraction) is a non-IFRS ratio comparing organic revenue (which excludes foreign exchange and acquisition and divestiture impacts), itself a non-IFRS financial measure, between two periods.

⁽⁷⁾ Segment Adjusted EBITDA to segment net revenue for the Engineering Services segment is a non-IFRS ratio based on Segment Adjusted EBITDA and net revenue, both of which are non-IFRS financial measures.

Non-IFRS Financial Measures and Ratios, Supplementary Financial Measures and Non-Financial Information

The Company reports its financial results in accordance with IFRS. However, the following non‑IFRS financial measures and ratios, supplementary financial measures and non-financial information are used by the Company in this press release: Organic revenue growth (contraction), EBITDA, Adjusted EBITDA, Adjusted net income attributable to SNC-Lavalin shareholders, Adjusted diluted EPS, Booking-to-revenue ratio, Adjusted EBITDA to revenue ratio, Segment adjusted EBITDA to segment net revenue ratio, Segment net revenue, Net limited recourse and recourse debt to adjusted EBITDA ratio and Net limited recourse and recourse debt. Additional details for these non-IFRS financial measures and ratios, supplementary financial measures and non-financial information can be found below and in Sections 6.4 and 9 of SNC-Lavalin's first quarter 2022 MD&A (which sections are incorporated by reference into this press release), 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 and ratios, supplementary financial measures and non-financial information 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 financial measures and ratios, and certain supplementary financial measures and non-financial information 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 and ratios, and certain supplementary financial measures and non-financial information 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 ratios, and certain supplementary financial measures and other non-financial information 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 and calculations of non-IFRS measures to the most comparable IFRS measures are set forth below in the section "Reconciliations and Calculations" of this press release.

Reconciliations and Calculations

Reconciliation of Adjusted net income attributable to SNC-Lavalin shareholders from PS&PM to IFRS net income attributable to SNC-Lavalin shareholders from continuing operations

	Q1 2022				Q1 2021
	Before Taxes	Taxes	After Taxes	Diluted EPS (In $)	Before Taxes	Taxes	After Taxes	Diluted EPS (In $)
Net income attributable to SNC-Lavalin shareholders from continuing operations (IFRS)			24.8	0.14			67.7	0.39
Restructuring and transformation costs	6.7	(1.6)	5.1		4.9	(1.1)	3.8
Amortization of intangible assets related to business combinations	22.3	(4.7)	17.7		23.3	(4.3)	19.1
Gain on disposal of a Capital investment	(4.3)	(0.1)	(4.4)		-	-	-
Gain on remeasurement of assets of disposal group classified as held for sale to fair value less cost to sell	-	-	-		(0.5)	-	(0.5)
Total adjustments	24.7	(6.4)	18.4	0.10	27.7	(5.4)	22.4	0.13
Adjusted net income attributable to SNC-Lavalin shareholders (non-IFRS)			43.1	0.25			90.1	0.51
Net income attributable to SNC-Lavalin shareholders from Capital			8.2	0.05			6.7	0.04
Gain on disposal of a Capital investment	(4.3)	(0.1)	(4.4)		-	-	-
Total adjustments	(4.3)	(0.1)	(4.4)	(0.03)	-	-	-	-
Adjusted net income attributable to SNC-Lavalin shareholders from Capital (non-IFRS)			3.8	0.02			6.7	0.04
Adjusted net income attributable to SNC-Lavalin shareholders from PS&PM (non-IFRS)			39.4	0.22			83.4	0.48

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

All figures in millions of dollars, except otherwise indicated

Reconciliation of EBITDA and Adjusted EBITDA to IFRS net income from continuing operations

	Q1 2022			Q1 2021
	From PS&PM	From Capital	Total	From PS&PM	From Capital	Total
Net income from continuing operations	13.7	8.2	21.9	62.0	6.7	68.7
Net financial expenses	24.6	1.0	25.6	27.0	4.2	31.2
Income taxes	3.5	0.5	4.0	2.9	0.8	3.6
EBIT	41.8	9.7	51.5	91.8	11.7	103.5
Depreciation and amortization	41.7	-	41.7	44.6	-	44.6
Amortization of intangible assets related to business combinations	22.3	-	22.3	23.3	-	23.3
EBITDA	105.8	9.7	115.5	159.7	11.7	171.4
Restructuring and transformation costs	6.7	-	6.7	4.9	-	4.9
Gain on disposal of a Capital investment	-	(4.3)	(4.3)	-	-	-
Gain on remeasurement of assets of disposal group classified as held for sale to fair value less cost to sell	-	-	-	(0.5)	-	(0.5)
Adjusted EBITDA	112.6	5.3	117.9	164.1	11.7	175.8

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

All figures in millions of dollars

Calculation of Adjusted EBITDA to revenue ratio

	Q1 2022			Q1 2021
	From PS&PM	From Capital	Total	From PS&PM	From Capital	Total
Revenue	1,871.7	16.4	1,888.1	1,798.0	21.7	1,819.7
EBIT to revenue ratio (in %)	2.2%	59.0%	2.7%	5.1%	53.7%	5.7%
Adjusted EBITDA to revenue ratio (in %)	6.0%	32.6%	6.2%	9.1%	53.8%	9.7%

All figures in millions of dollars, except otherwise indicated

Calculation of segment net revenue and segment adjusted EBITDA to segment net revenue ratio – Engineering Services

		Q1 2022
Revenue – Engineering Services		1,138.2
Direct costs for sub-contractors and other direct expenses that are recoverable directly from clients – Engineering Services		(255.4)
Segment net revenue – Engineering Services		882.9
Segment Adjusted EBITDA – Engineering Services		114.9
Segment Adjusted EBITDA to segment net revenue ratio – Engineering Services (in %)		13.0%

All figures in millions of dollars, except otherwise indicated

Calculation of organic revenue growth (contraction)

	Q1 2022 Revenue	Q1 2021^ARevenue	Variance	Foreign exchange impact	Acquisition / Divestiture impact	Organic revenue growth (contraction)
Engineering Services	1,138.2	1,049.6	88.6	(14.5)	-	103.1
Nuclear	232.1	229.1	3.0	(1.6)	-	4.5
O&M	136.5	141.6	(5.1)	0.1	-	(5.2)
Linxon	150.5	131.9	18.6	(7.8)	-	26.5
Total – SNCL Services	1,657.3	1,552.3	105.1	(23.8)	-	128.9

All figures in millions of dollars

	Q1 2022 Revenue	Q1 2021^A Revenue	Variance	Foreign exchange impact	Acquisition / Divestiture impact	Organic revenue growth (contraction)
Engineering Services	1,138.2	1,049.6	8.4%	(1.5)%	-	10.0%
Nuclear	232.1	229.1	1.3%	(0.7)%	-	2.0%
O&M	136.5	141.6	(3.6)%	0.1%	-	(3.7)%
Linxon	150.5	131.9	14.1%	(7.2)%	-	21.3%
Total – SNCL Services	1,657.3	1,552.3	6.8%	(1.7)%	-	8.4%

All figures in millions of dollars, except otherwise indicated

^A Comparative figures have been restated to reflect the new reportable segments effective as of January 1, 2022

Calculation of booking-to-revenue ratio

	Q1 2022
	Engineering Services	Nuclear	O&M	Linxon	Total SNCL Services
Opening backlog	3,769.0	834.9	5,705.4	974.2	11,283.5
Plus: Contract bookings during the period	1,219.1	199.3	29.5	96.7	1,544.6
Less: Revenues from contracts with  customers recognized during the period	1,127.0	232.0	136.5	150.5	1,646.0
Ending backlog	3,861.1	802.2	5,598.4	920.4	11,182.1
Booking-to-revenue ratio	1.08	0.86	0.22	0.64	0.94

All figures in millions of dollars, except otherwise indicated

Calculation of net limited recourse and recourse debt to adjusted EBITDA ratio

				March 31 2022
Limited recourse debt				400.0
Recourse debt				1,174.0
Less: Cash and cash equivalents				506.0
Net limited recourse and recourse debt				1,068.0
Adjusted EBITDA (trailing 12 months)				467.1
Net limited recourse and recourse debt to Adjusted EBITDA ratio				2.3

All figures in millions of dollars, except otherwise indicated

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", "estimates", "expects", "forecasts", "goal", "intends", "likely", "may", "objective", "outlook", "plans", "projects", "should", "synergies", "target", "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; 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-harbor" 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 2021 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"). 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, matters relating to: (a) ongoing and additional impacts of the COVID-19 pandemic; (b) execution of the Company's "Pivoting to Growth Strategy" unveiled in September 2021; (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) supply chain disruptions; (l) joint ventures and partnerships; (m) information systems and data and compliance with privacy legislation; (n) competition; (o) professional liability or liability for faulty services; (p) monetary damages and penalties in connection with professional and engineering reports and opinions; (q) gaps in insurance coverage; (r) health and safety; (s) qualified personnel; (t) work stoppages, union negotiations and other labour matters; (u) extreme weather conditions and the impact of natural or other disasters and global health crises; (v) divestitures and the sale of significant assets; (w) intellectual property; * liquidity and financial position; (y) indebtedness; (z) impact of operating results and level of indebtedness on financial situation; (aa) security under the CDPQ Loan Agreement (as defined in the Company's 2021 Annual MD&A); (bb) dependence on subsidiaries to help repay indebtedness; (cc) dividends; (dd) post-employment benefit obligations, including pension-related obligations; (ee) working capital requirements; (ff) collection from customers; (gg) impairment of goodwill and other assets; (hh) the impact on the Company of legal and regulatory proceedings, investigations and litigation settlements; (ii) further regulatory developments as well as employee, agent or partner misconduct or failure to comply with anti-corruption and other government laws and regulations; (jj) reputation of the Company; (kk) inherent limitations to the Company's control framework; (ll) environmental laws and regulations; (mm) global economic conditions; (nn) inflation; (oo) fluctuations in commodity prices; and (pp) 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 2021 Annual MD&A and as updated in the first quarter 2022 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 written or oral forward-looking information or statements whether as a result of new information, future events or otherwise, unless required by applicable legislation or regulation. The forward-looking information and statements contained herein are expressly qualified in their entirety by this cautionary statement.

The Company's unaudited condensed consolidated interim financial statements for the three-month period ended March 31, 2022, 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]