Baird 2017 Global Industrial Conference Duke Austin President & Chief Executive Officer Derrick Jensen Chief Financial officer NYSE: PWR
Forward Looking Statement Disclaimer This presentation (and oral statements regarding the subject matter of this presentation) includes forward-looking statements intended to qualify under the “safe harbor” from liability established by the Private Securities Litigation Reform Act of 1995. These forward-looking statements include any statements reflecting Quanta's expectations, intentions, strategies, assumptions or beliefs about future events or performance or that do not solely relate to historical or current facts. Forward-looking statements involve certain risks, uncertainties and assumptions that are difficult to predict or beyond Quanta's control, and actual results may differ materially from those expected, implied or forecasted by our forward-looking statements due to inaccurate assumptions and known and unknown risk and uncertainties. For additional information concerning some of the risks, uncertainties and assumptions that could affect our forward-looking statements, please refer to Quanta’s Annual Report on Form 10-K for the year ended December 31, 2016 and its other documents filed with the Securities and Exchange Commission, as well as the risks, uncertainties and assumptions identified in this presentation. Investors and analysts should not place undue reliance on Quanta’s forward-looking statements, which are current only as of the date of this presentation. Quanta does not undertake and expressly disclaims any obligation to update or revise any forward-looking statements to reflect events or circumstances after the date of this presentation or otherwise, and Quanta expressly disclaims any written or oral statements made by any third party regarding the subject matter of this presentation.
Leading Integrated Infrastructure Solutions Provider Committed to the health and safety of our employees, customers Who is Quanta Services? and community # 1 2017 Specialty Recognized market leader in electric power and oil and gas pipeline Contractor construction in North America # 1 2017 Utility Entrepreneurial business model and culture Contractor # 1 Broad, self-performing platform developed through organic growth 2017 Electrical and acquisitions Contractor # 1 Strong scope and scale with deep customer relationships Pipeline Contractor in North America Preferred employer in the industries we serve 355 2017 Fortune 500 Ranking Strong financial profile Quanta Services Is A Leading Integrated Infrastructure Solutions Provider
Overview – Strategically Focused, Operationally Diverse 2016 Consolidated Revenue = $7.65 Billion* Oil & Gas Infrastructure 37% Electric Power 63% 2017 Est. Revenue = $9.3 Billion ** Estimated Revenue by Geography Estimated Revenue by Contract Type Estimated Revenue by Project Type Canada Unit Price New 45% Master Service 16% Construction United States Fixed Price Agreement (MSA) 49% 79% 32% 41% LATAM & Other 3% Australia 2% Cost Plus Maint. & Repair Engineering 2% 23% 8% *Revenue, as reported, by type of work, geography, contract and project type based on revenues of $7,651 million for the twelve months ended Dec. 31, 2016. ** Represents the midpoint of guidance range
Leading Integrated Infrastructure Solutions Provider Proj oject Desig ign Engin ineerin ring Installa llation Maint ntena nanc nce Replace cement Management Electric Power + Energized Asset Emergency Distribution Services Management Restoration Transmission EPC Solar & Engineering Smart Grid Substation Renewables Oil & Gas Compression, Horizontal Metering & Downstream Gas Distribution Directional Pumping Stations Drilling Mainline Pipeline Pipeline Shale Midstream Pipeline Logistics Storage Facilities Integrity Pipe Mgt. Services For The Entire Infrastructure Life Cycle
Differentiated Competitive Position – In the Sweet Spot Quanta is uniquely positioned to meet • customer needs versus both specialty contractors and traditional engineering and 100% construction companies Customers understand that skilled labor is • Est. Self Perform Capability critical to project success 80% Projects are getting larger and more complex • and customers are increasingly seeking 60% comprehensive solutions Demand for specialty construction resources 40% • is high and increasing, but supply is limited Quanta has the largest infrastructure 20% • specialty contractor workforce in North *Bubble Size = Avg. Market Cap America, +35,000 employees globally 0% Smaller Larger Quanta has strategically invested in • engineering and program management to Est. Large Project Capability provide true complete engineering, procurement and construction (EPC) solutions
Strategic Imperatives: Deliver Profitable Growth Coupled with successful implementation of other strategic imperatives … For illustrative purposes • Grow the base business and compliment with larger scale Larger Projects projects • Organic growth and strategic Revenues acquisitions • Pricing discipline and risk Base Business management • Focus on safe execution • Cost management Time • Maintain financial strength
Backlog Is Expected To Remain Strong Total Backlog 12-Month Backlog ($ in millions) ($ in millions) $10,546 $6,191 $9,750 $9,387 $5,853 $9,236 $5,220 $5,209 $8,237 $4,904 12/31/13 12/31/14 12/31/15 12/31/16 9/30/2017 12/31/13 12/31/14 12/31/15 12/31/16 9/30/2017 Electric Power Oil & Gas Infrastructure
Committed to Generating Shareholder Value Acquired $1.7 Billion of Quanta Common Stock Executed on $1.25 Billion Share Repurchase Authorization Earnings Power Improvement • Aug. 2015 – Announced a new $1.25 billion share repurchase authorization through Feb. 28, 2017 $3,000.000 225 • Completed a $750 million accelerated stock repurchase (ASR) 200 $2,500.000 arrangement in April 2016 $2,197 175 Acquired 35.1 million shares at $21.36 per share • $1,951 $2,000.000 150 Shares in Millions • $500 million for opportunistic repurchases through Feb. 28, 2017 $ in Thousands $1,573 $1,573 125 $450 million / 19.2 million shares retired • $1,500.000 100 Completed $500 Million Share Repurchase Authorization $1,000.000 75 Completed previous $500 million share repurchase program in 2015 • 50 Acquired approximately 17.4 million shares for total cost of $500 $500.000 • 25 million $0.000 0 May 25, 2017 – Announced New $300 Million Share Repurchase 2014 2015 2016 2017E Authorization Net Income Required to Generate $0.01 In EPS Up to $300 million through June 30, 2020 • Avg. Dil. Shs. Out. Under Previous Programs Quanta Has Acquired Approximately 32% of Its Outstanding Stock
Key Takeaways Quanta continues to see opportunities to increase shareholder value through growth in revenues and EPS over a multi-year period Quanta is the leading integrated infrastructure solutions provider in the markets we serve, with unmatched scope and scale There is opportunity for a renewed multi-year growth cycle We will maintain a strong financial profile to support our strategic initiatives for near- and long-term, profitable growth Quanta’s corporate actions demonstrate confidence in our long-term growth prospects and a commitment to generating shareholder value
Connect With Quanta Services Investor Relations @QuantaIR QuantaServicesIR Investor Contact Corporate Office Kip Rupp, CFA 2800 Post Oak Blvd., Suite 2600 Vice President – Investor Relations Houston, TX 77056 713-341-7260 713-629-7600 investors@quantaservices.com www.quantaservices.com
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