SNC-Lavalin Reports Strong Second Quarter 2023 Results and Raises Outlook for Revenue Growth

MONTREAL, Aug. 3, 2023 /CNW/ - SNC-Lavalin Group Inc. (TSX: SNC), a fully integrated professional services and project management company with offices around the world, today announced its financial results for the second quarter ended June 30, 2023.

SNC-Lavalin delivered another quarter of strong results, with a significant increase in organic revenue growth and Segment Adjusted EBIT. Backlog continued to be strong with another record high level achieved in the Engineering Services segment and a significant increase in the Nuclear segment. Given the Company's strong year-to-date performance, robust backlog and pipeline of prospects, management is raising its outlook for SNCL Services organic revenue growth⁽¹⁾⁽²⁾ for full year 2023 vs 2022 to between 12% and 15% from the previous range of between 5% and 7%.

Q2 2023 Financial Highlights and 2023 Outlook

(All results reflect comparisons to prior-year period of Q2 2022, except otherwise indicated)

• SNCL Services revenue increased 21.8% to $2.0 billion, or 17.7% on an organic revenue growth⁽¹⁾⁽²⁾ basis, outperforming for another consecutive quarter the Company's previous full year outlook range
• Engineering Services organic revenue growth⁽¹⁾⁽²⁾ of 25.1%
• SNCL Services Segment Adjusted EBIT increased by 14.6% to $167.1 million, representing an 8.5% margin, in line with the Company's full year outlook range
• Engineering Services Segment Adjusted EBIT margin of 8.5%
• Nuclear Segment Adjusted EBIT margin of 13.1%
• SNCL Services backlog reached a record-high and totaled $12.4 billion as at June 30, 2023, an increase of 9.3%. Bookings in Q2 2023 totaled $2.2 billion, representing a 1.14 booking-to-revenue ratio⁽¹⁾⁽⁴⁾
• Engineering Services backlog reached a record-high and totaled $5.1 billion as at June 30, 2023, an increase of 22.4%, which includes another new record-high for the United States. Bookings in Q2 2023 totaled $1.7 billion, representing a 1.17 booking-to-revenue ratio⁽¹⁾⁽⁴⁾
• Nuclear backlog increased by 38.1% to $1.1 billion as at June 30, 2023
• LSTK Projects Segment Adjusted EBIT of negative $12.6 million, in line with expectations. LSTK Projects backlog reduced by $96.0 million sequentially from March 31, 2023, to $421.9 million as at June 30, 2023
• Net income from continuing operations attributable to SNC-Lavalin shareholders totaled $63.8 million, or $0.36 per diluted share, compared to a net income of $1.6 million, or $0.01 per diluted share in Q2 2022
• Adjusted net income attributable to SNC-Lavalin shareholders from PS&PM⁽¹⁾ totaled $71.9 million, or $0.41 per diluted share, compared to $53.8 million, or $0.31 per diluted share in Q2 2022
• Net cash used for operating activities of $155.9 million
• Net cash generated from operating activities in SNCL Services⁽¹⁾⁽⁵⁾ of $69.5 million
• Net limited recourse and recourse debt to Adjusted EBITDA ratio⁽¹⁾⁽⁶⁾ of 3.1 as at June 30, 2023
• SNCL Services organic revenue growth⁽¹⁾⁽²⁾ outlook for full year 2023 vs 2022 raised to between 12% and 15%, from the previous range of between 5% and 7%, and reaffirming all other financial outlook metrics for full year 2023

"Our second quarter results were strong as we continue to see robust demand for our services, leading us to increase our revenue growth outlook for 2023," said Ian L. Edwards, President and CEO of SNC-Lavalin Group Inc. "Performance this past quarter highlights the continuing success of our "Pivoting to Growth" strategy as we grow into a premier Professional Services and Project Management company. Subsequent to quarter close, we announced the sale of our Scandinavian Engineering Services business as part of our strategic review to further maximize long-term value creation for the Company. Our core expertise in Engineering Services and Nuclear is well regarded across the globe and positions SNC-Lavalin for long-term success in capturing new work as we transition to a more sustainable future for our planet and its people."

Second Quarter Financial 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 Lump-Sum Turnkey ("LSTK") Projects, while Capital is its own reportable segment and separate from PS&PM.

• The increase in net income from continuing operations attributable to SNC-Lavalin shareholders was mainly due to higher Segment Adjusted EBIT, partially offset by higher net financial expenses, while Q2 2022 included an expense related to a Remediation Agreement.

IFRS Financial Highlights

	Q2 2023	Q2 2022	2023^A	2022^A
Revenues
From PS&PM	2,102.2	1,857.6	4,108.9	3,729.3
From Capital	29.4	13.9	45.7	30.3
	2,131.5	1,871.5	4,154.6	3,759.6
Attributable to SNC-Lavalin shareholders
Net (loss) income from continuing operations:
From PS&PM	49.8	(0.4)	75.8	16.1
From Capital	14.0	2.0	16.4	10.2
	63.8	1.6	92.2	26.3
Diluted EPS from continuing operations:
From PS&PM ($)	0.28	(0.00)	0.43	0.09
From Capital ($)	0.08	0.01	0.09	0.06
	0.36	0.01	0.53	0.15

Non-IFRS Financial Highlights

	Q2 2023	Q2 2022	2023^A	2022^A
Attributable to SNC-Lavalin shareholders
Adjusted net income from PS&PM^(1)	71.9	53.8	127.3	93.2
Adjusted diluted EPS from PS&PM^(1)(7) ($)	0.41	0.31	0.73	0.53
Adjusted EBITDA from PS&PM^(1)	167.2	127.9	323.1	240.5

Segment Performance

	Q2 2023	Q2 2022	2023^A	2022^A
Segment revenues
Engineering Services	1,466.1	1,128.7	2,810.3	2,266.9
Nuclear	251.2	221.0	495.5	453.1
O&M	99.0	104.8	224.8	241.3
Linxon	142.2	153.7	263.8	304.2
SNCL Services	1,958.5	1,608.2	3,794.4	3,265.5
LSTK Projects	143.7	249.4	314.5	463.8
Capital	29.4	13.9	45.7	30.3
	2,131.5	1,871.5	4,154.6	3,759.6
Segment Adjusted EBIT
Engineering Services	124.4	95.4	237.9	180.6
Nuclear	33.0	32.5	65.6	66.8
O&M	7.9	11.4	17.3	23.1
Linxon	1.8	6.5	2.6	2.0
SNCL Services	167.1	145.9	323.5	272.6
LSTK Projects	(12.6)	(36.6)	(21.8)	(67.2)
Capital	23.7	10.9	35.3	23.3
	178.2	120.2	337.1	228.7
Backlog as at June 30
Engineering Services			5,091.6	4,158.4
Nuclear			1,116.6	808.3
O&M			5,192.1	5,516.3
Linxon			957.5	823.3
SNCL Services			12,357.7	11,306.2
LSTK Projects			421.9	828.4
Capital			27.3	31.4
			12,807.0	12,166.1

All figures in millions of dollars, except otherwise indicated

Certain totals and subtotals may not reconcile due to rounding

^A For the six-month period ended June 30

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 August 31, 2023, to shareholders of record on August 17, 2023. This dividend is an "eligible dividend" for Canadian federal and provincial income tax purposes.

Second Quarter 2023 Conference Call / Webcast

SNC-Lavalin will hold a conference call and audio webcast today at 8:30 a.m. (Eastern Time) to discuss and present its second quarter financial results. The live audio webcast of the conference call can be accessed through a link posted on the Company's website at www.investors.snclavalin.com. The call will also be accessible by telephone, for which an accompanying slide presentation can be accessed at www.snclavalin.com/en/investors/investor-essentials/investors-briefcase/2023.

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 0808 101 2791 in the United Kingdom. A recording and a transcript of the conference call will be available on the Company's website within 24 hours following the call.

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.

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

The Company reports its financial results in accordance with International Financial Reporting Standards ("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 (loss) attributable to SNC-Lavalin shareholders, Adjusted diluted EPS, Booking-to-revenue ratio, Segment Adjusted EBITDA to segment net revenue ratio, Segment net revenue, Net limited recourse and recourse debt to Adjusted EBITDA ratio, Net limited recourse and recourse debt and Net cash generated from (used for) operating activities on a line of business/segment basis. Additional details for these non-IFRS financial measures and ratios, supplementary financial measures and non-financial information can be found below and in Sections 4, 6 and 9 of the Company's MD&A for the second quarter of 2023, which sections are incorporated by reference into this press release, filed with the securities regulatory authorities in Canada, available on SEDAR+ at www.sedarplus.ca 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 other issuers may define these measures differently and, accordingly, they may not be comparable to similar measures prepared by other issuers. Such non-IFRS financial measures and ratios, 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.

However, management believes that, in addition to conventional measures prepared in accordance with IFRS, these non-IFRS financial measures and ratios and 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. Furthermore, certain non-IFRS financial measures and ratios, certain additional IFRS measures and ratios, 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 and ratios to the most comparable IFRS measures and ratios are set forth below in the section "Reconciliations and Calculations" of this press release.

⁽¹⁾ Non-IFRS financial measure or ratio or supplementary financial measure.

⁽²⁾ Organic revenue growth (contraction) is a non-IFRS ratio comparing organic revenue (which excludes foreign exchange and acquisition and disposal impacts), itself a non-IFRS financial measure, between two periods.

⁽³⁾ Segment Adjusted EBITDA to segment net revenue for the Engineering Services segment is a non-IFRS ratio based on Segment Adjusted EBITDA and segment net revenue, both of which are non-IFRS financial measures.

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

⁽⁵⁾ Net cash generated from (used for) operating activities on a line of business/segment basis is a supplementary financial measure and is identical in composition to net cash generated from (used for) operating activities as reported in the financial statements, except that it is provided on a line of business/segment basis as opposed to on a consolidated basis.

⁽⁶⁾ 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.

⁽⁷⁾ Adjusted diluted EPS is a non-IFRS ratio based on adjusted net income (loss) attributable to SNC-Lavalin shareholders from continuing operations, itself a non-IFRS financial measure.

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

	Q2 2023				Q2 2022
	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)			63.8	0.36			1.6	0.01
Restructuring and transformation costs	6.7	(1.4)	5.3		13.4	(2.9)	10.4
Amortization of intangible assets related to business combinations	20.9	(4.1)	16.8		20.6	(4.2)	16.4
DPCP Remediation Agreement expense	-	-	-		27.4	-	27.4
Total adjustments	27.6	(5.5)	22.1	0.13	61.4	(7.1)	54.3	0.31
Adjusted net income attributable to SNC-Lavalin shareholders (non-IFRS)			85.9	0.49			55.8	0.32
Net income attributable to SNC-Lavalin shareholders from Capital			14.0	0.08			2.0	0.01
Gain on disposal of a Capital investment	-	-	-		-	-	-
Total adjustments	-	-	-	-	-	-	-	-
Adjusted net income attributable to SNC-Lavalin shareholders from Capital (non-IFRS)			14.0	0.08			2.0	0.01
Adjusted net income attributable to SNC-Lavalin shareholders from PS&PM (non-IFRS)			71.9	0.41			53.8	0.31

	Six months ended June 30, 2023				Six months ended June 30, 2022
	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)			92.2	0.53			26.3	0.15
Restructuring and transformation costs	21.2	(3.1)	18.2		20.1	(4.5)	15.6
Amortization of intangible assets related to business combinations	41.5	(8.1)	33.4		42.9	(8.8)	34.1
Gain on disposal of a Capital investment	-	-	-		(4.3)	(0.1)	(4.4)
DPCP Remediation Agreement expense	-	-	-		27.4	-	27.4
Total adjustments	62.7	(11.2)	51.5	0.29	86.1	(13.5)	72.6	0.41
Adjusted net income attributable to SNC-Lavalin shareholders (non-IFRS)			143.8	0.82			99.0	0.56
Net income attributable to SNC-Lavalin shareholders from Capital			16.4	0.09			10.2	0.06
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)			16.4	0.09			5.8	0.03
Adjusted net income attributable to SNC-Lavalin shareholders from PS&PM (non-IFRS)			127.3	0.73			93.2	0.53

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

	Q2 2023			Q2 2022
	From PS&PM	From Capital	Total	From PS&PM	From Capital	Total
Net income from continuing operations	49.6	14.0	63.7	1.5	2.0	3.5
Net financial expenses	40.3	2.7	43.0	19.3	0.8	20.2
Income tax expense	8.0	-	8.0	2.4	1.1	3.5
EBIT	97.9	16.7	114.6	23.2	3.9	27.1
Depreciation and amortization	62.5	-	62.5	63.9	-	63.9
EBITDA	160.5	16.7	177.1	87.1	3.9	91.0
Restructuring and transformation costs	6.7	-	6.7	13.4	-	13.4
DPCP Remediation Agreement expense	-	-	-	27.4	-	27.4
Adjusted EBITDA	167.2	16.7	183.9	127.9	3.9	131.8

	Six months ended June 30, 2023			Six months ended June 30, 2022
	From PS&PM	From Capital	Total	From PS&PM	From Capital	Total
Net income from continuing operations	75.7	16.4	92.1	15.2	10.2	25.4
Net financial expenses	86.1	4.3	90.4	44.0	1.8	45.8
Income tax expense	19.1	0.5	19.5	5.9	1.6	7.4
EBIT	180.8	21.3	202.1	65.0	13.5	78.6
Depreciation and amortization	121.1	-	121.1	128.0	-	128.0
EBITDA	301.9	21.3	323.2	193.0	13.6	206.5
Restructuring and transformation costs	21.2	-	21.2	20.1	-	20.1
Gain on disposal of a Capital investment	-	-	-	-	(4.3)	(4.3)
DPCP Remediation Agreement expense	-	-	-	27.4	-	27.4
Adjusted EBITDA	323.1	21.3	344.4	240.5	9.2	249.8

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

All figures in millions of dollars

Calculation of Segment net revenue and Segment Adjusted EBITDA to segment net revenue ratio for the Engineering Services segment

	Q2 2023	Six months ended June 30, 2023
Revenue – Engineering Services	1,466.1	2,810.3
Less: Direct costs for sub-contractors and other direct expenses that are recoverable directly from clients – Engineering Services	332.0	663.4
Segment net revenue – Engineering Services	1,134.1	2,146.9
Segment Adjusted EBITDA – Engineering Services	155.3	297.0
Segment Adjusted EBITDA to segment net revenue ratio – Engineering Services	13.7 %	13.8 %

All figures in millions of dollars, except otherwise indicated

Calculation of organic revenue growth (contraction)

	Q2 2023 Revenue	Q2 2022  Revenue	Variance	Foreign exchange impact	Acquisition / Disposal impact	Organic revenue growth (contraction)
Engineering Services	1,466.1	1,128.7	337.4	43.4	-	294.1
Nuclear	251.2	221.0	30.2	5.5	-	24.7
O&M	99.0	104.8	(5.8)	1.4	-	(7.3)
Linxon	142.2	153.7	(11.5)	5.1	-	(16.6)
Total – SNCL Services	1,958.5	1,608.2	350.3	55.4	-	294.9

	Q2 2023 Revenue	Q2 2022  Revenue	Variance	Foreign exchange impact	Acquisition / Disposal impact	Organic revenue growth (contraction)
Engineering Services	1,466.1	1,128.7	29.9 %	4.8 %	-	25.1 %
Nuclear	251.2	221.0	13.7 %	2.7 %	-	10.9 %
O&M	99.0	104.8	(5.6) %	1.3 %	-	(6.8) %
Linxon	142.2	153.7	(7.5) %	3.0 %	-	(10.4) %
Total – SNCL Services	1,958.5	1,608.2	21.8 %	4.1 %	-	17.7 %

	Six months ended June 30, 2023	Six months ended June 30, 2022	Variance	Foreign exchange impact	Acquisition / Disposal impact	Organic revenue growth (contraction)
Engineering Services	2,810.3	2,266.9	543.4	49.3	-	494.1
Nuclear	495.5	453.1	42.4	6.2	0.7	35.5
O&M	224.8	241.3	(16.5)	3.8	-	(20.2)
Linxon	263.8	304.2	(40.4)	5.8	-	(46.3)
Total – SNCL Services	3,794.4	3,265.5	528.9	65.1	0.7	463.1

	Six months ended June 30, 2023	Six months ended June 30, 2022	Variance	Foreign exchange impact	Acquisition / Disposal impact	Organic revenue growth (contraction)
Engineering Services	2,810.3	2,266.9	24.0 %	2.6 %	-	21.3 %
Nuclear	495.5	453.1	9.4 %	1.5 %	0.2 %	7.7 %
O&M	224.8	241.3	(6.8) %	1.4 %	-	(8.2) %
Linxon	263.8	304.2	(13.3) %	1.6 %	-	(14.9) %
Total – SNCL Services	3,794.4	3,265.5	16.2 %	2.3 %	-	13.9 %

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

All figures in millions of dollars, except otherwise indicated

Calculation of booking-to-revenue ratio

	Q2 2023
	Engineering Services	Nuclear	O&M	Linxon	Total SNCL Services
Opening backlog	4,837.0	985.8	5,262.2	994.4	12,079.3
Plus: Contract bookings during the period	1,716.5	375.8	28.9	105.3	2,226.5
Less: Revenues from contracts with customers recognized during the period	1,461.8	245.0	99.0	142.2	1,948.1
Ending backlog	5,091.6	1,116.6	5,192.1	957.5	12,357.7
Booking-to-revenue ratio	1.17	1.53	0.29	0.74	1.14

	Six months ended June 30, 2023
	Engineering Services	Nuclear	O&M	Linxon	Total SNCL Services
Opening backlog	4,662.1	936.6	5,353.9	881.8	11,834.4
Plus: Contract bookings during the period	3,234.3	663.5	63.0	339.4	4,300.2
Less: Revenues from contracts with customers recognized during the period	2,804.7	483.6	224.8	263.8	3,776.9
Ending backlog	5,091.6	1,116.6	5,192.1	957.5	12,357.7
Booking-to-revenue ratio	1.15	1.37	0.28	1.29	1.14

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

All figures in millions of dollars, except otherwise indicated

Calculation of Net limited recourse and recourse debt to Adjusted EBITDA ratio

	June 30, 2023
Limited recourse debt	400.0
Recourse debt	1,828.2
Less: Cash and cash equivalents	552.5
Net limited recourse and recourse debt	1,675.7
Adjusted EBITDA (trailing 12 months)	547.7
Net limited recourse and recourse debt to Adjusted EBITDA ratio	3.1

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, project- or contract-specific cost reforecasts and claims provisions, and future prospects; and ii) business and management strategies and the expansion and growth of the Company's operations. 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 2022 Annual MD&A (particularly in the sections entitled "Critical Accounting Judgements 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) epidemics, pandemics, including COVID-19, and other global health crises; (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) backlog and contracts with termination for convenience provisions; (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) qualified personnel; (o) competition; (p) professional liability or liability for faulty services; (q) monetary damages and penalties in connection with professional and engineering reports and opinions; (r) gaps in insurance coverage; (s) health and safety; (t) work stoppages, union negotiations and other labour matters; (u) global climate change, extreme weather conditions and the impact of natural or other disasters; (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 2023 second quarter 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 dispute 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 Judgements and Key Sources of Estimation Uncertainty" in the Company's 2022 Annual MD&A and as updated in the second quarter 2023 MD&A filed with the securities regulatory authorities in Canada, available on SEDAR+ at www.sedarplus.ca 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.

For More Information:

The Company's unaudited interim condensed consolidated financial statements for the three-month and six-month periods ended June 30, 2023 and 2022, together with its MD&A for the corresponding periods, can be accessed on the Company's website at www.snclavalin.com and on www.sedarplus.ca.

SOURCE SNC-Lavalin