Stantec Q4 & Year-end 2016 Investor Presentation

LBS Institutional Investor Conference Montral, QC

Thursday April 6, 2017
Cautionary Statement

Our public communications will contain

non-IFRS measures and written or verbal
forward-looking statements, including
a discussion of our goals and our
growth strategies.

We caution readers not to place

undue reliance on our forward-looking
statements since a number of factors
could cause actual future results to differ
materially from the targets and
expectations expressed.

For a discussion of risk factors and non-IFRS

measures, see our 2016 Annual Report,
which is available on SEDAR, EDGAR,
and stantec.com.

2
AGENDA

Who We Are

Where We Are

What We Have Accomplished

Where We Are Going

WHO WE ARE

OUR BUSINESS IS PEOPLE

Engineering
Architecture
Interior Design
Landscape Architecture
Surveying
Environmental Sciences
Construction Services
Project Management
Project Economics

4
WHO WE ARE

STANTEC AT A GLANCE

STN 22,000 400

TSX & NYSE Employees Locations
globally worldwide

CDN 4.3B CDN 3.9B 62 YEARS

2016 December 31, 2016 Of uninterrupted
Gross Revenue Market Cap profitability

5
WHO WE ARE
WHO WE ARE

OUR BUSINESS MODEL IS DIVERSIFIED

7
*As a percentage of 2016 gross revenue
WHO WE ARE

Gross Revenue Breakdown

by Geographies*

*As a percentage of 2016 gross revenue

8
WHO WE ARE

Gross Revenue Breakdown

by Business Operating Units*

*As a percentage of 2016 gross revenue

9
WHERE WE ARE

10
WHERE WE ARE

BUILDINGS

*As an approximate percentage of 2016 consulting services gross revenue

11
WHERE WE ARE

12
WHERE WE ARE

ENERGY & RESOURCES

*As an approximate percentage of 2016 consulting services gross revenue

13
WHERE WE ARE

14
WHERE WE ARE

ENVIRONMENTAL SERVICES

*As an approximate percentage of 2016 consulting services gross revenue

15
WHERE WE ARE

16
WHERE WE ARE

INFRASTRUCTURE

*As an approximate percentage of 2016 consulting services gross revenue

17
WHERE WE ARE

CONSTRUCTION SERVICES
Gross Revenue Breakdown Gross Revenue Breakdown
by Client Type by Geography

Construction Services revenue derived from United States and United Kingdom
Focus on water and wastewater treatment facilities

18
WHAT WE HAVE ACCOMPLISHED

WE FOCUS ON
PERFORMANCE

19
WHAT WE HAVE ACCOMPLISHED

Total and Organic Revenue Growth

quarter over quarter

20
WHAT WE HAVE ACCOMPLISHED

Gross Revenue & Net Revenue

millions (C$)

18%
10-year Gross Revenue
CAGR

21
WHAT WE HAVE ACCOMPLISHED

Gross Revenue Backlog

millions (C$)

19%
10-year Gross Revenue
Backlog CAGR

22
WHAT WE HAVE ACCOMPLISHED

EPS and Shares Outstanding

millions (C$)

6%
10-year Diluted
EPS CAGR

23
WHAT WE HAVE ACCOMPLISHED

Dividend Growth

(C$)

11%
4-year Dividend
CAGR

24
WHAT WE HAVE ACCOMPLISHED

Cash Flow

millions (C$)

25
WHAT WE HAVE ACCOMPLISHED

CAPITAL STRUCTURE

NEW CREDIT FACILITIES

$C800M revolving credit facility
Expires 2020

$C450M term loan

Three tranches due 2018, 2019, 2020

NET DEBT/EBITDA
2.38 times at December 31, 2016

Strong cash flow generation and growth prospects

Less than 2.0x expected EBITDA by the end of 2017
Strong balance sheet provides flexibility to continue executing growth strategy
Consistent dividend payout ratio policy and corresponding dividend growth

26
WHAT WE HAVE ACCOMPLISHED

WE HAVE A PROVEN TRACK RECORD

27
WHAT WE HAVE ACCOMPLISHED

BURY MWH VOA

300 Employees 6,800 Employees 280 Employees
March 2016 May 2016 May 2016

EDWARDS & ZUCK Arch|TB

120 Employees 60 Employees
September 2016 December 2016
WHERE WE ARE GOING

MWH INTEGRATION

Integration of North North American Combined insurance, Continuing to review

American consulting branding transition health plans, Global integration
staff on track for expected in and IT systems
Q2 2017 late 2017

29
WHERE WE ARE GOING

WE CONTINUE TO EVOLVE

Water Business Operating Unit

(Effective January 1, 2017)*

Client Enterprise Systems

Conveyance
Urban Stormwater & Wet Weather Flow
Waste Management
Water Resources Planning & Management
Water Treatment
Wastewater Treatment

*Restated for 2016 to include 5 business operating units

30
WHERE WE ARE GOING

WHY WATER?

Aging infrastructure
Population distribution and growth
Climate change
Environmental sustainability Water-related infrastructure
investment required
Affordability
will amount to
Regulatory pressures $126 billion by 2020
1

1American Society of Civil Engineers

31
WHERE WE ARE GOING

WE ARE EXPANDING OUR DEPTH AND BREADTH

32
WHERE WE ARE GOING

TO BE A TOP TEN GLOBAL DESIGN FIRM

Our business objective is to be a Top Ten Global Design Firm

33
WHERE WE ARE GOING

2017 TARGETS

Measure 2017 Target Range

Gross margin
Between 53% and 55%
as a % of net revenue

Administrative and marketing expenses

Between 41% and 43%
as a % of net revenue

EBITDA*
Between 11% and 13%
as a % of net revenue
Net income
At or above 5%
as a % of net revenue

Additional Measures 2017 Target

Capital expenditures $75 million

Software additions $15 million

Amortization of intangible assets $85 million

* Non-IFRS measure defined in 2016 Managements Discussion and Analysis

34
WHERE WE ARE GOING

2017 OUTLOOK

Overall Canada United States Global

Long-term Federal Expanding United Kingdom

target of 15% infrastructure economy
gross revenue spending New Zealand
CAGR Infrastructure
and Australia
Transit, spending
Continued water and Europe
acquisition wastewater Water and
strategy wastewater
Continued Latin America
Strong backlog weakness in Transportation
and client mining and
relationships oil and gas

Residential
construction

35
WHERE WE ARE GOING

WE ARE WELL POSITIONED

Diversified across sectors, regions,

and project lifecycle

Proven track record

Objective: top-tier position in each

market and region we serve

Robust capital structure to continue

dividend growth and disciplined
acquisition strategy

36