AtkinsRéalis Group Inc. (ATRL) Earnings Call Transcript & Summary

[Interpreted] Hello, and welcome to the Annual Shareholders' Meeting of SNC-Lavalin. My name is Erik Ryan, and I am Executive Vice President of Strategy, Marketing and External Relations. In light of the ongoing public health impact of the COVID-19 pandemic, we have once again opted for a virtual-only annual meeting in order to align with the recommendations of Quebec public health officials and to mitigate health and safety risks to our employees, shareholders, Board members and other stakeholders. With this in mind, we want to assure you that we are abiding by the necessary measures in the studio today, which includes social distancing and wearing of face masks behind the scenes. A few details before commencing. Firstly, today's meeting will be simultaneously translated. You can choose via the web form the language in which you wish to listen to the webcast by clicking on the language tab above your viewing window. You can even choose the native language of the event by clicking on Listening options below your viewing window and selecting floor. Secondly, on the left-hand side of the screen, you will notice some helpful information and resources available. This is where you will also be able to cast your votes if you have not done so in advance. The ballot will remain open during the formal part of the meeting until the last item on the agenda has been dealt with. Please feel free to refer to the user guide available in the document icon on the navigation bar at the top left side of your screen. Registered shareholders and proxy holders who have not yet voted or wish to change their vote can do so via this virtual platform. [Operator Instructions] Lastly, the live streaming of the meeting will end after the question period is over. Before we begin, I would like to take a moment to introduce the individuals who will be addressing you today. Firstly, Mr. Bill Young, our Chair of the Board; and Mr. Ian Edwards, our President and Chief Executive Officer. I will now hand it over to the Chair of the Board, Mr. Bill Young.

Thanks, Erik. Hello, ladies and gentlemen. I welcome you to the 55th Annual Meeting of Shareholders of SNC-Lavalin Group. It is a privilege for me to chair this meeting for a second year and to have the opportunity to address our shareholders. As Erik mentioned earlier, as a precautionary measure and despite our initial hopes of holding a hybrid meeting, our Annual Meeting of Shareholders is once again being held in a virtual format. In addition to myself and Ian Edwards, addressing you this morning, we have with us Charlene Ripley, our Executive Vice President and General Counsel; and Andree-Claude Berube, our Associate General Counsel and Corporate Secretary. We also have with us Jeff Bell, SNC-Lavalin's Executive Vice President and Chief Financial Officer, who is available as a resource if needed. I will act as Chair of the meeting, and Andree-Claude will be our secretary. We hope that you will fully participate in today's meeting. And although we are attending this meeting virtually once again, we hope you will use the tools made available through the virtual platform to ask questions and vote on the matters of business before us as if you are attending this meeting in person. Thank you for joining us. [Foreign Language]

[Interpreted] Portion of the meeting. We ask that you wait until the general question period that will take place at the end of this meeting to ask questions that are not directly related to a resolution. Questions submitted that have not been answered during the meeting may be submitted to our Investor Relations team by e-mail at [email protected]. As there are several issues to be discussed at this meeting, we will ask Ms. Charlene Ripley to propose and second the various resolutions that will be voted on. Once the formal portion is over, Mr. Ian Edwards, our President and CEO, will address all of you. The Notice of the Meeting of shareholders of SNC-Lavalin Group Inc. and related documents have been distributed to shareholders of record as of March 14, 2022. Ms. Martine Gauthier and Ms. Claire Girard of Computershare will be our scrutineers for the meeting. I've received their report and confirm that 70% of shareholders are either present virtually or represented at this meeting. We, therefore, have the necessary quorum to deal with the various items on the agenda. The poll will remain open throughout the meeting until the last business item has been put to a vote and the voting is declared closed. A simple majority is required to approve all matters voted on at this meeting. We will now proceed to the first item on the agenda, the consolidated financial statements and auditor's report. The consolidated financial statements for the fiscal year ended December 31, 2021, and the independent auditor's report thereon as well as the MD&A are contained in the company's 2021 financial report, which has been sent to all shareholders that requested it and are also available on the SNC-Lavalin's website and on SEDAR. Also at this time, I would like to introduce André Vincent, François Sauvageau and Ms. Maha Hijazi, the representatives of Deloitte, our auditor for the fiscal year 2021, who are joining us remotely today. Erik, do we have any questions on the appointment of the auditor?

[Interpreted] No. We have received no questions regarding consolidated financial statements or the auditor's report.

[Interpreted] Thank you. The first matter then is to receive the consolidated financial statements and the auditor's report, which are included in the 2021 financial report, and add them to the formal minutes of the meeting. We will now proceed with the second matter on the agenda, the election of directors. This year, the number of director nominees has been set by the company's Board of Directors at 11. The section entitled Information on Director Nominees of the management proxy circular provides detailed information about each of these nominees. Biographies of each of the nominees begin on Page 16 of the management proxy circular. Nine of the 11 nominees are standing for reelection, and Baroness Ruby McGregor-Smith and Mr. Robert Paré are standing for election as member of the Board of the Directors for the first time. Pursuant to the terms of the company's advanced notice bylaw, no other nominations were received. I will now ask Charlene to propose and second the motion on the election of directors.

[Interpreted] Hello. I'm pleased to nominate each of the following persons to be elected as director to hold office until the close of the next Annual Meeting of Shareholders or until their successors are elected or appointed: Mr. Gary Baughman, Mrs. Mary-Ann Bell, Mr. Christie Clark, Mrs. Isabelle Courville, Mr. Ian Edwards, the Baroness Ruby McGregor-Smith, Mr. Steven Newman, Mr. Robert Paré, Mr. Michael Pedersen, Mrs. Benita Warmbold and Mr. William Young.

[Interpreted] Thank you, Charlene. Erik, do we have any questions on these nominations?

[Interpreted] No. We have not received any questions on the subject of the candidates.

[Interpreted] Thank you. Since we have no additional questions, I declare the nominations closed. We will now proceed to the vote. If you are a registered shareholder and have already voted or completed a proxy, you do not have to vote again unless you want to change the instructions given in the proxy. [Voting]

[Interpreted] We will now proceed with the third matter on the agenda, the appointment of the auditor of the company. You've been informed in the management proxy circular of the recommendation of the Board of Directors that Deloitte be appointed as auditor of the company. I would therefore ask Charlene to propose and second the mention -- second the motion relating to the appointment of the auditor.

[Interpreted] I propose that Deloitte be appointed as auditor of the company and remain in office until the next Annual Meeting of Shareholders at a remuneration to be set by the Board of Directors.

[Interpreted] Thank you, Charlene. Erik, do we have any questions on the appointment of the auditor?

[Interpreted] No. We have not received any questions or comments on the subject of the appointment of the auditor.

[Interpreted] Thank you. Since we have no additional questions, I declare the nominations closed. We will now proceed to the vote. [Voting]

[Interpreted] The fourth item on the agenda is the shareholder advisory vote on our approach to executive compensation. The text of this advisory resolution is set out on Page 15 of the management proxy circular. I will now ask Charlene to propose and second the motion on the advisory vote on our approach to executive compensation.

[Interpreted] I move on an advisory basis and not to diminish the role and responsibilities of the Board of Directors that the shareholders accept the approach to executive compensation disclosed in this year's management proxy circular, delivered in advance of the Annual Meeting of Shareholders.

[Interpreted] Thank you, Charlene. Erik, do we have any questions on the shareholder advisory vote on our approach to executive compensation?

[Interpreted] No, Andree-Claude. We have not received any questions or comments regarding our approach to executive compensation.

[Interpreted] Thank you. Since we have no additional questions, I declare the nominations closed. We will now proceed to the vote. [Voting]

[Interpreted] We may now proceed with the fifth item of the business on the agenda, which relates to the 5 shareholder proposals received from MEDAC and Share. Following discussions, it was mutually agreed with MEDAC not to hold a vote on proposal #1 and proposal #2 at today's meeting. The text of these proposals, along with the Board of Directors' responses, can be found in Schedule A of our management proxy circular. I will now ask Willie Gagnon, the representative of MEDAC, who is joining us over the phone, to present MEDAC's shareholder proposal #3 and proposal #4. The floor is yours, Mr. Representative.

Yes. Hello. Can you hear me clearly?

[Interpreted] Yes. We can hear you clearly.

Hello. My name is Willie Gagnon for the MEDAC, the Movement of Education and Defense of Shareholders of SNC for many years. As you have said, we have submitted 4 proposals to SNC. Two have been submitted to vote, and I will not spend too much time on the proposals from which we have agreed to not submit them to vote. And we will submit these -- the company accepted our request. In its answer, it said it will integrate as a revision, regular revision of its practices -- best practices elsewhere in the U.K., Europe on taking into consideration the decisions of employees in strategic decisions and the advancement of women in management positions and to improve the information transmitted on the subject. And what your answer tells us is that you accepted, you have added the detail of the exchanges or the schedule in management as we can read in your response. So both proposals that have been put forward, French is an official language. You are not without knowing all the debates around this question over the last year. In the past, the reason for which we have decided to send this proposal to all companies that -- those who are doing well or those who are doing badly in the subject of language, to propose a solution to exit this situation of collective psychosis. We would have wished to see the question of French integrated in the status of the company. And unfortunately, it has not been done to agree with whomever on this question. We will then propose other measures in the future. We are not without -- we have not noticed the efforts -- we have quite noticed the efforts done on your part, especially presentation of French today. In the past, these meetings were done exclusively in English. This year is not the case, and we salute your efforts. And we hope that this will be maintained in the future even if we will not perhaps make any proposals such as this one again. Once again, we invite all shareholders to support this proposal. And proposal #4, review of senior leadership compensation plans. You have not perhaps received this proposal, which makes a reference to Mr. Girard's article in the newspapers not only in regards to the payment -- compensation relative to the performance, but also certain characteristics that make us believe that it's not a compensation that's equitable. And we invite the shareholders to read our proposal and to support it. We are happy to have discussed with you in a detailed means all these proposals. We've even been able to discuss with a member of the Board compensation, and it's a practice that we consider exemplary, one example. Thank you, and it will be a pleasure, too.

[Interpreted] Thank you very much, Mr. Gagnon. I will now ask Mr. Anthony Schein, the representative of Share, who is also joining us by phone, to present Share's shareholder proposal #5. Mr. Schein?

My name is Anthony Schein, and I'm the Director of Shareholder Advocacy at Share. I represent a network of Canadian institutional investors with more than $90 billion in assets under management. We engage with issuers to improve their environmental, social and governance practices. And I'm here today on behalf of my client, the Laidlaw Foundation. I'm joining from Toronto, which is on the traditional territories of the Mississaugas of the Credit, Anishnabeg, Chippewa, Haudenosaunee and Wendat peoples. And I acknowledge the enduring presence of indigenous people on this land, and I'm grateful to live and work here. As one of the top engineering employers in Canada, SNC-Lavalin is well positioned to take a leadership role in breaking the glass ceiling in its field. The company acknowledges the material importance of diversity and equitable workforce practices to long-term shareholder value and has identified gender inequality as a key UN Sustainable Development Goal, which it wishes to address. However, with little transparency around key workforce composition metrics, investors are not in a position to assess the company's performance relative to peers, evaluate its progress over time or push for change when and where needed. The last 3 years have seen a sea change with respect to workplace equity disclosures. More governments, including Canada, are moving towards requiring greater workplace equity reporting, and growing numbers of companies are responding to investor calls for action. Nine OECD countries mandate systemic gender wage gap reporting for private sector firms. And at least 81% of S&P 500 companies have committed to publicly release workplace equality data -- equity data filed with the U.S. government. This compares with just 20% in August of 2020. Numerous publicly traded companies have begun releasing recruitment, retention and promotion rates for equity-deserving groups. What SNC-Lavalin has reported in the U.K., where such disclosures are mandated by law, illustrates the need for further action. The link between strong human capital management practices and improved corporate performance is well established, and that link is even stronger when our company's core product is dependent on a highly skilled and specialized professional and technical workforce, as is the case here. Unfortunately, the company has resisted providing comprehensive workforce data for its global workforce, including relevant data on pay equity. In 2022, Share filed a proposal on behalf of the Laidlaw Foundation, which is before you today. The proposal requests that the company report to shareholders on the outcomes of its diversity, equity and inclusion efforts by publishing comprehensive quantitative data on workplace composition and compensation. The company has not been sufficiently responsive to this engagement. The disclosure that was included in the proxy this year is frankly inadequate. It does not provide investors with decision-useful quantitative workforce data. The company has asserted that it cannot provide more comprehensive data without putting itself at a competitive disadvantage. We do not accept this assertion. The company already provides stronger reporting for its U.K. operation without any such competitive risk. And many companies, as previously noted, provide adequate reporting in the North American context. Again, none faced competitive risk. On this basis, I move the proposal, and I urge shareholders to vote in favor. Thank you very much.

[Interpreted] Thank you, Mr. Schein. And thank you to the representatives of MEDAC and Share. Erik, do we have any questions on the proposals from MEDAC and Share?

[Interpreted] No. We have not received any questions regarding the MEDAC or Share's proposals.

[Interpreted] Thank you. Since we do not have questions, we will now proceed to the vote. [Voting]

[Interpreted] I declare by presence that the vote is closed for all items mentioned in the Notice of this Meeting.

[Interpreted] Thank you, Bill. While the scrutineers are preparing the report on the votes cast today, I would like to invite you to say a few words about the Board's work over the last year, your first full year of tenure as Chair of the Board of Directors of SNC-Lavalin.

Thank you very much, Erik. During the past 18 months, I have had the privilege of leading this highly engaged Board. With the support of an executive leadership that managed against the backdrop of a global pandemic, with clarity and fortitude, SNC-Lavalin stayed true to its purpose, engineering a better future for our planet and its people. It delivered for its clients and the communities it serves and this despite another unprecedented year of challenges and uncertainty caused by the pandemic. In 2021, SNC-Lavalin continued to make sustained and measurable progress on its strategy launched almost 3 years ago. The new strategy marked the beginning of its transition away from LSTK contracts in the Oil & Gas business to one focused squarely on growing the high potential Engineering Services business. It is this future-facing business that will support the company's growth and long-term sustainability as a leading professional services and project management company. The design and engineering services, project and program management, advisory and infrastructure services and the global nuclear business, which form the cornerstone of the organization, had a strong performance last year. Although the remaining LSTK projects continued to be impacted by inflation and COVID-driven operational challenges, the runoff of these projects progresses. It is expected that they will be mostly concluded by the end of the first quarter 2023. 2021 was a pivotal year in SNC-Lavalin's transformation journey and saw the company unveil its next 3-year strategic growth plan. The Board will continue to ensure that it is aligned to support SNC-Lavalin in the next phase of its growth journey. In this regard, I'm pleased to introduce 2 director nominees for election at the meeting: Baroness Ruby McGregor-Smith and Quebec-based Mr. Robert Paré. These individuals have relevant skills in corporate governance and leadership. Their backgrounds complement the Board and will enable them to effectively oversee and advise a global organization with SNC-Lavalin's ambitious vision and purpose. These nominations increase the percentage of women who would be Board directors from 30% to 36%, demonstrating our unwavering commitment to prioritize and focus on diversity in all its forms at the Board level. On behalf of the Board of Directors and SNC-Lavalin management, I would also like to take this opportunity to thank outgoing director, Mr. Zin Smati, who did not stand for reelection, for his timeless commitment and invaluable contribution and years of service to the Board. The Board recognizes and applauds the important work undertaken in 2021 to advance SNC-Lavalin's broad ESG agenda, an ambitious program that includes a commitment to ED&I, a clearly defined set of integrity and carbon targets as well as the engineering net zero work undertaken in partnership with clients. It is with this kind of work where SNC-Lavalin is positioned to make the most significant impact in tackling climate change. For its part, the Board approved and adopted the commitment to equality, diversity and inclusion, a statement that codifies the organization's pledge to maintaining and creating a more representative and inclusive culture for all its employees. This commitment serves as a foundation for the target set by the SNC-Lavalin to have at least 33% representation by women across the company and at least 25% in its senior leadership team by 2025. Moving forward, executive compensation, which has traditionally been tied to integrity, health, safety and environment performance, will now also be connected to sustainability and ED&I performance metrics. The Governance, Ethics and Sustainability Committee continued to assist in developing the company's approach to corporate governance and integrity issues. In 2021, it also added oversight of ESG and the sustainability framework, governance and strategy to its duties and responsibilities, including monitoring progress and ensuring accountability against publicly disclosed ESG targets. The committee will also review the results of a comprehensive materiality assessment that will be undertaken in early 2022 to realign the company's ESG priorities with its new vision and purpose. Expanded oversight was also given to the Audit and Risk Committee as it adopted a broader mandate to oversee the company's enterprise risk management framework, strategy, policies and governance. The Board commends the committee's additional responsibilities, and it remains committed to overseeing the evolution of the company's best-in-class integrity program. Unremitting vigilance is critical to ensuring that the legacy issues of the past, a result of actions of a select group of bad actors, are not repeated. I want to close by thanking our talented global workforce for their continued dedication and commitment to SNC-Lavalin and for their tremendous efforts in the face of another unprecedented year. I would also like to extend my appreciation to the shareholders for the ongoing support and confidence in SNC-Lavalin's future as a world-leading professional services and project management firm. Thank you very much.

[Interpreted] Thank you, Bill. On that note, I understand the scrutineers have now completed their work.

Yes. Thank you, Erik. Based on the scrutineers' tabulations of the votes cast in respect of the items on the agenda of the shareholders' meeting, I am pleased to report that all 11 director nominees named in the management proxy circular have been elected. Deloitte LLP was reappointed as the company's auditor. The advisory resolution on the approach to executive compensation was adopted, and the 3 shareholder proposals submitted to vote were rejected. Please note that the final detailed results will be posted on the company's website and on SEDAR. I now declare the formal part of the meeting adjourned and give the floor to Ian, our President and CEO.

Thank you, Bill. Thank you for joining us for our 2022 AGM. This is a virtual event, and I just want to thank you -- for all of you for joining online today. This hopefully marks the beginning of a new chapter for all of us after a long and challenging 2 years living with COVID. Speaking for SNC-Lavalin, we are very excited to moving forward on our pivoting to growth strategy, which we unveiled in September. The strategy leverages SNC-Lavalin's unique competitive advantages to place us at the forefront of engineering solutions that will shape the future of our industry and the world we live in tomorrow. It is both accountable with very clear financial targets and grounded in a sustainable growth model, one that encompasses our employees, our customers, our shareholders, our communities and the planet. The elements of our sustainable growth approach include the following: one, a clearly defined go-to-market framework and organizational structure; two, a focus on talent and culture; three, a continuous drive to permanently derisk the business; and four, an ongoing investment and integration of digital innovation into everything we do. All of these elements support and enable our ultimate mission and our purpose as a company, which is to help our customers achieve carbon net zero and, in doing so, engineer a better future for our planet and its people. So I'll now walk you through each of these elements and our net zero vision for the future. One of my goals when I became CEO in 2019 was to simplify the business and focus on the geographies and end markets where we have a competitive advantage and where we see opportunities for growth. And that's what we've done. In our pivoting to growth strategy, we've deepened our focus on 3 core geographies: Canada, the U.K. and the U.S. And these represent approximately 80% but also with targeted operations in other key geographies. We've also targeted 7 specific in-demand end markets where we're recognized global leaders from transportation, power and renewables to water and nuclear. We will bring all this together in an integrated offering for our customers that covers the life cycle of an asset, beginning with concept and design to procurement and project management, maintenance and decommissioning. And to give you one example of the strategy in practice, we see significant potential to expand our engineering services and nuclear footprint in the U.S. The U.S. currently represents approximately 18% of our revenue compared to 32% for Canada and 29% for the U.K. So we see a real lot of room for growth here. And going forward, the U.S. is forecast to spend $250 billion in nuclear decommissioning and waste management over the next 20 years. And that's in addition to the $1 trillion infrastructure bill that was recently passed by the Biden administration. To support our go-to-market priorities, we have realigned our operational structure and set clear financial targets. The newly formed SNCL Services, which is the foundation of our growth going forward, comprises 4 business segments: Engineering Services, Nuclear, O&M and Linxon. Engineering Services is our largest segment, representing 59% of our revenue, which now includes EDPM, mining and metal, power and industrial services. As of January, this is being co-led by Philip Hoare and Steve Morriss. And together, they will provide very strong leadership to grow this largest segment of our business. We've also set out clear financial targets for the next 3 years. And these include a 4% to 6% annual organic revenue growth for SNCL Services, an 8% to 10% segment adjusted EBIT to segment revenue ratio and the generation of positive free cash flow over net income of between 80% and 90% by the end of 2024. Given our 2021 results, we believe we are well positioned to realize the goals we have set. Engineering Services achieved strong revenue and margin performance, including a 22% year-over-year increase in segment adjusted EBIT, which translated into a better-than-expected margin of 10.7%. EDPM backlog grew by nearly 10% with overall SNCL Engineering Services backlog reaching approximately $11 billion. Turning to the second element in our sustainable growth plan. A key ingredient to achieving our goal is our people. They are the foundation of what makes SNC-Lavalin a leading professional services and project management company. Over the past few years, we've worked very hard to create the kind of working environment to attract, retain and inspire world-class talent. This includes living our values each and every day, making ethical business practices a hallmark of how we operate around the world, being an active participant in the communities where we operate through philanthropy programs, investing in our people through leadership programs and digital skills training and committing to a diverse and inclusive workplace where people feel that their contributions are valued. In 2021, we introduced enhanced targets for increasing the representation of women across the company to at least 33% by 2025. We're currently at 30%. We're also targeting at least 25% representation by women in senior leadership and in October, launched a new global equity, diversity and inclusion program. We are very proud of the progress we are making in terms of building new leadership, enabling a collaborative culture and retaining top talent, which is reflected in a very positive engagement from our employees. And these are verified by surveys. The third element in our sustainable growth plan is our continued focus on derisking the business. Since 2019, we have taken a number of steps to reduce uncertainty and deliver more consistent results. That effort began with our strategic decision to no longer bid on LSTK contracts, which is now permanently embedded in our go-forward strategy. Last year, we completed the sale of our Oil & Gas division, one of several noncore businesses that we have exited. And despite the severe disruption caused by COVID over the course of the year, we reduced our LSTK backlog to -- by $670 million to just over $1 billion that's left. And we expect that the vast majority of the backlog to be wound down by the end of 2022. And the foundational element in the growth strategy we unveiled last fall is a focus on digital innovation. The industry is changing with the creation of digital twins and the use of data that allows us to virtually design, build and operate large complex projects even before the ground is broken. The benefits are significant, from far greater certainty over timing and costs to increased operating efficiencies and, ultimately, a reduced carbon footprint. Our U.K.-based operations are at the center of excellence in this emerging area and are currently pioneering a first-of-its-kind fully operational digital twin. This is Europe's largest wastewater facility just outside London. Overall, we've identified $2.2 billion of new commercial revenue in major programs and digital twins as a result of our investment in digital innovation. And we see significant opportunities to expand our digital expertise to other areas of the business, including Nuclear and O&M, where our intelligent O&M offering allows us to enhance asset management, bringing together people, data and technology. In the fall of 2021, we opened 3 digital hubs in Montreal, London and Bangalore. These are dedicated to developing next-generation digital and data solutions for our clients, and these are state-of-the-art facilities. And we call them Lava Labs, allowing clients, partners and SNC-Lavalin project teams to visualize and codevelop data and technology-driven solutions. Taken together, our focus on digital innovation will allow us to reimagine how we deliver our services and transform the way projects are designed, built and managed. All of these elements, our go-to-market framework, our focus on talent and culture, our permanent pivot away from LSTK and our investment in digital innovation, enhance our ability to execute on what I call SNC-Lavalin's new North Star, the engineering of a net zero future. There is an extraordinary global movement being undertaken by countries and companies to reach carbon net zero by 2050. It's being done through the adoption of renewable energy, the electrification of transport, the decarbonizing of aging infrastructure and the use of more environmentally friendly building techniques, among many other initiatives. SNC-Lavalin has been a pioneer in sustainable infrastructure for years. And with our unique end-to-end diversified capability, we see ourselves as being a key partner, facilitator, an enabler of the net zero imperative. Speaking for myself as CEO and our 30,000 employees, this speaks directly to our purpose as a company, which is engineering a better future for the planet and its people. This is something I am personally very committed to, and I know my colleagues are as well. And we are moving the needle forward in 3 key ways: one, by launching our own goal of reaching net zero by 2030 with a 60% reduction in greenhouse gas emissions targeted for 2025; two, by helping our customers adopt clean energy solutions. The clean power and renewable energy space is expected to require $125 trillion in investment over the next 30 years. And our track record here is varied and deep, including designing low-emissions plants for processing the minerals used in electric batteries and a long history of designing, building, financing and maintaining Canada's hydropower projects, engineering and decarbonizing the built environment. In addition, our Linxon joint venture, which has grown 30% over the past 2 years, is well positioned to support the anticipated increase in electricity demand. And nuclear power, where we are a recognized leader, will be a necessary asset in the future of clean energy transformation. The third way we are driving a net zero future is by helping our customers lower their carbon footprint. Specifically, there is a significant need to redevelop or retrofit aging infrastructure and power assets. We already began with a newly awarded contract in 2021 to green 4 million square feet of public sector office space owned by the U.K.'s government Property Agency. This is part of their net zero objectives. The work is being driven through our new Decarbonomics platform that combines our expertise in net zero and digital solutions to offer a service to our customers all around the world. So in conclusion, we have a clear path forward with the right strategy, the right people and the capabilities to meet the needs of a fast-changing and evolving and, at times, uncertain world. As we're seeing now, with the terrible social and economic dislocation in Eastern Europe, it's really hard to predict the unexpected. But we feel certain of 2 things: that we've built a resilient business that is engineered to weather uncertainty and that the world must meet its net zero goals. And we are committed to being net zero leaders and innovators while delivering profitable growth that will allow us to continue to enhance our overall financial strength, invest in accretive opportunities and return value to shareholders. I want to thank everyone who has been on this journey: our employees for their incredible leadership and resilience; our Board, which has provided invaluable guidance and support; our customers, who have remained loyal partners; and our shareholders, who have believed in our vision for this business. Thank you.

[Foreign Language], Ian. Let's now move to the question period. Thank you, Ian. [Operator Instructions] Erik, do we have any questions from shareholders?

[Interpreted] No. We have not received any questions from shareholders.

Have we received any other questions?

There are no more questions, Bill.

Thank you. As there are no further questions from shareholders, that completes our meeting today. Before we close, on behalf of the Board and our shareholders, I would like to thank Ian for his leadership over the last year and his senior management team for their ongoing commitment to the success of SNC-Lavalin. I would also like to express our appreciation to our dedicated employees who play a key part in the future of this great company. Thank you very much, and good day. Thank you for having been with us today and all our partners and shareholders. [Portions of this transcript that are marked [Interpreted] were spoken by an interpreter present on the live call.]