WSP Reports Strong 2022 Results and a Solid Start to Its Strategic Cycle

Robust Q4 2022 performance with strong organic growth (9.5% when adjusted for the same number of billable days compared to Q4 2021) and an improved adjusted EBITDA margin (+70 bps) demonstrating continued momentum in our key markets
2022 full year accomplishments:
- Best net revenue organic growth of the last decade at 7.3%
- Adjusted EBITDA up 16%, reaching the higher end of our range and a 30-bps increase in Adjusted EBITDA margin
- Adjusted net earnings up 17%
- Backlog up 24.8% in the year and organic growth of 7.6%
- Strengthened our platform with strategic acquisitions in key geographies
- Tracking positively towards 2024 strategic financial ambitions
Macky Tall to join our Board of directors

MONTREAL, March 08, 2023 (GLOBE NEWSWIRE) -- WSP Global Inc. (TSX: WSP) (“WSP” or the “Corporation”) today announced financial and operating results for the fourth quarter and year ended on December 31, 2022.

In 2022, WSP delivered strong results ahead of Management's expectations, including the highest organic growth in net revenues in the last decade and a 30 bps increase in adjusted EBITDA margin. Overall, net revenues, adjusted EBITDA and adjusted net earnings increased in 2022 by 14%, 16% and 17%, respectively.

FOURTH QUARTER 2022 FINANCIAL HIGHLIGHTS

Revenues and net revenues for the quarter reached $3.56 billion and $2.55 billion, up 23.2% and 18.9%, respectively, compared to Q4 2021. Net revenue organic growth of 4.8% in the quarter. Net revenue organic growth of approximately 9.5% when normalized for the same number of billable days compared to Q4 2021.
Adjusted EBITDA in the quarter of $446.4 million, compared to $361.2 million in Q4 2021. Adjusted EBITDA margin for the quarter increased to 17.5%, compared to 16.8% in Q4 2021.
Earnings before net financing expense and income taxes in the quarter of $185.3 million, up $0.1 million compared to Q4 2021.
Adjusted net earnings for the quarter of $209.3 million, or $1.68 per share, up $37.6 million and $0.22, respectively, compared to Q4 2021. The respective increases in these metrics are mainly attributable to higher adjusted EBITDA.
Net earnings attributable to shareholders for the quarter of $120.0 million, or $0.96 per share, compared to $126.7 million and $1.08 per share in Q4 2021. The decreases are mainly attributable to higher amortization and depreciation, higher business acquisition and integration costs and ERP implementation costs, and higher net financing expenses, partially offset by higher adjusted EBITDA.
The Corporation achieved its highest quarterly free cash flow, reaching $442.7 million.
Quarterly dividend declared of $0.375 per share, or $46.7 million, with a 31.1% Dividend Reinvestment Plan (“DRIP”) participation.

FISCAL YEAR 2022 FINANCIAL HIGHLIGHTS

Revenues and net revenues reached $11.93 billion and $8.96 billion, up 16.1% and 13.8%, respectively, compared to 2021. The increase in net revenue was principally due to acquisition growth of 8.2% and organic growth of 7.3%. Organic growth was achieved across all reportable segments and net revenues exceeded the high end of Management's outlook range for the year of $8.9 billion.
Backlog as at December 31, 2022 stood at $13.0 billion, representing 11.8 months of revenues, up 24.8% in the year. On a constant currency basis, backlog grew organically by 7.6% in the year.
Adjusted EBITDA of $1.53 billion, up 15.7%, compared to $1.32 billion in 2021, reaching the high end of Management's outlook range for the year.
Adjusted EBITDA margin increased to 17.1% in 2022, compared to 16.8% in 2021, an increase of 30 basis points, on track with the Corporation's 2022-2024 strategic financial ambitions.
Earnings before net financing expense and income taxes in 2022 of $749.1 million, up 3.4% compared to 2021, mainly due to higher adjusted EBITDA, partially offset by ERP implementation costs which ramped up in 2022, and higher acquisition and integration costs, as well as amortization of intangible assets, due to recent acquisitions.
Adjusted net earnings in 2022 of $692.6 million, or $5.75 per share, up $99.7 million or $0.66 per share, compared to 2021. The respective increases of 16.8% and 13.0% in these metrics are mainly attributable to higher adjusted EBITDA.
Net earnings attributable to shareholders of $431.8 million in 2022, or $3.59 per share, down $41.8 million, or $0.48 per share, compared to 2021. The decrease was mainly due to higher net financing expenses, amortization and depreciation, business acquisition and integration costs and ERP implementation costs, partially offset by higher adjusted EBITDA.
DSO as at December 31, 2022 stood at 73 days, compared to 66 days as at December 31, 2021, in line with Management's outlook target range of 70 to 75.
Net debt to adjusted EBITDA ratio stood at 1.6x, compared to 0.6x as at December 31, 2021. The increase is due to issuance of long-term debt to finance recent acquisitions, while the trailing twelve-month adjusted EBITDA does not yet include the full results of recently acquired businesses. Incorporating a full twelve months of adjusted EBITDA of all acquired businesses, the net debt to adjusted EBITDA ratio would be 1.5x.
Full year dividend declared of $1.50 per share, or $181.8 million, with a cash payout of $100.8 million and 44.5% Dividend Reinvestment Plan (“DRIP”) participation.

“I am proud of our collective achievements in the first year of our strategic cycle. We deepened our presence and expertise through strategic acquisitions, reinforced our ESG commitments, and elevated our people and client experience while delivering above-expectation financial results, including record organic growth in net revenues,” said Alexandre L’Heureux, President and CEO of WSP. “In 2023, we will continue our journey by forging ahead with an aligned strategy to optimize our business and grow with purpose as we prepare our cities and environment for the future.”

OUTLOOK FOR 2023
This outlook is provided as at March 8, 2023, to assist analysts and shareholders in formalizing their respective views on the year ending December 31, 2023. The reader is cautioned that using this information for other purposes may be inappropriate. This information constitutes forward-looking information, based on multiple estimates and assumptions about future events. Actual results may differ, and such differences may be material. Expectations are also subject to a number of risks and uncertainties as well as material assumptions contained in this press release and in WSP's MD&A for the year ended December 31, 2022. Please see the section below entitled: “Forward-Looking Statements”.

The Corporation cautions that the assumptions used to prepare the 2023 outlook could prove to be incorrect or inaccurate. Accordingly, WSP’s actual results could differ materially from the Corporation’s expectations as set out in this press release.

The target ranges were prepared assuming no fluctuations in foreign exchange rates in markets in which the Corporation operates. The Corporation did not consider any dispositions, mergers, business combinations or other transactions that may occur after the publication of this press release. In the 2023 target ranges, the Corporation considered numerous economic and market assumptions regarding the competition, political environment and economic performance of each region where it operates.

Management expects the WSP's results for the year ending December 31, 2023 will fall within the following ranges:

	2023 TARGET RANGE⁽¹⁾
Net revenues	Between $10.0 billion and $10.6 billion
Adjusted EBITDA	Between $1.76 billion and $1.84 billion
Seasonality and adjusted EBITDA fluctuations	Q1 2023 : between 21% and 23% Q2 2023 : between 23% and 25% Q3 2023 : between 26% and 28% Q4 2023 : between 26% and 28%
DSO	Between 70 and 75 days
Net capital expenditures	Between $200 million and $225 million
Acquisition, integration and reorganization costs	Between $55 million and $65 million
ERP implementation costs	Between $70 million and $80 million

The forecasts were prepared using tax rates enacted as of December 31, 2022, in the countries in which the Corporation currently operates. The Corporation anticipates that the effective tax rate in 2023 will fall between 25% and 29%.

The Corporation anticipates depreciation of right-of-use assets, property and equipment and amortization of software to range between $470 million and $495 million.

The Corporation anticipates amortization of intangible assets related to acquisitions to range between $160 million and $170 million.

The Corporation intends to manage its capital structure to maintain a net debt to adjusted EBITDA ratio between 1.0 and 2.0.

For 2023, the Corporation anticipates net revenue organic growth, calculated on a constant currency basis, ranging between 3% to 6%. Head office corporate costs for 2023 are expected to range between $110 million and $125 million.

BOARD OF DIRECTORS APPOINTMENT
Today, WSP announces that Mr. Macky Tall will be joining its Board of Directors, subject to his election at its 2023 shareholders meeting to be held on May 11. Mr. Tall will bring the Board extensive management, financial and industry experience, having held several senior leadership positions throughout his career in the infrastructure and investment sectors.

Mr. Tall is a Partner and Chair of Carlyle's Global Infrastructure Group, and a member of Carlyle's Leadership Committee. Prior to joining Carlyle, Mr. Tall held various leadership positions at Caisse de dépôt et placement du Québec (CDPQ), one of the world’s largest infrastructure investors and pension fund, in addition to serving on their Executive Committee and Investment-Risk Committee, and as founding Chair and CEO of CDPQ Infra. He was also Chairman of the Board of Directors of Ivanhoé Cambridge. Throughout his career, Mr. Tall has held a variety of senior management positions with companies in the energy and finance sectors. He also sits on the board of directors of the National Bank of Canada, one of Canada's leading integrated financial groups, and the United Nations Joint Staff Pension Fund Investments Committee.

“On behalf of WSP’s Board of Directors, I am pleased that Macky Tall will, subject to his election, join as a new member of our Board,” said Christopher Cole, WSP’s Chairman of the Board. “Mr. Tall’s strong leadership and expertise in finance, capital markets, infrastructure, and deep knowledge of WSP’s key sectors of activities, will bring significant value to our Board as we support WSP’s strategy and growth journey. We look forward to his contributions to our diverse and collaborative board.”

Mr. Tall holds a bachelor’s degree in Business Administration (Finance) from HEC Montréal and an MBA (Finance) from the University of Ottawa. He also completed an undergraduate degree in Economics at Université de Montréal.

DIVIDEND
The Board of WSP declared a dividend of $0.375 per share. This dividend will be payable on or about April 15 2023, to shareholders of record at the close of business on March 31, 2023.

FINANCIAL REPORT
This release includes, by reference, the 2022 financial reports, including the consolidated financial statements and the MD&A of the Corporation for the year ended December 31, 2022, which are available on our website at www.wsp.com. These documents are also available on SEDAR at www.sedar.com.

CONFERENCE CALL & WEBCAST
WSP will hold a conference call and webcast from 8:00 a.m. to 9:00 a.m. (Eastern Time) on March 9, 2023, to discuss these results. To participate in the conference call, please pre-register using this link. Registrants will receive a confirmation with dial-in details. A live webcast of the conference call can be accessed using this link.

A presentation of the fourth quarter and fiscal 2022 highlights and results will be accessible on March 8, 2023 after market close under the “Investors” section of the WSP website. For those unable to attend, a replay will be available within 24 hours following the call.

_{(1) This information constitutes forward-looking information, based on multiple estimates and assumptions about future events. The reader is cautioned that using this information for other purposes may be inappropriate. Actual results may differ and such differences may be material. Please refer to the "Forward-looking statements" disclaimer below.}

FINANCIAL HIGHLIGHTS

	Fourth quarters ended						Years ended
(in millions of dollars, except percentages, per share data, DSO and ratios)	December 31, 2022			December 31, 2021			December 31, 2022			December 31, 2021
Revenues	$	3,560.8		$	2,891.0		$	11,932.9		$	10,279.1
Net revenues⁽¹⁾	$	2,553.7		$	2,147.4		$	8,957.2		$	7,869.6
Earnings before net financing expense and income taxes	$	185.3		$	185.2		$	749.1		$	724.6
Adjusted EBITDA⁽²⁾	$	446.4		$	361.2		$	1,530.2		$	1,322.5
Adjusted EBITDA margin⁽²⁾		17.5	%		16.8	%		17.1	%		16.8	%
Net earnings attributable to shareholders of WSP Global Inc.	$	120.0		$	126.7		$	431.8		$	473.6
Basic net earnings per share attributable to shareholders	$	0.96		$	1.08		$	3.59		$	4.07
Adjusted net earnings⁽²⁾⁽³⁾	$	209.3		$	171.7		$	692.6		$	592.9
Adjusted net earnings per share⁽²⁾⁽³⁾	$	1.68		$	1.46		$	5.75		$	5.09
Cash inflows from operating activities	$	607.4		$	513.2		$	814.8		$	1,060.1
Free cash flow⁽²⁾	$	442.7		$	369.9		$	309.0		$	646.1
As at							December 31, 2022			December 31, 2021
Backlog⁽⁴⁾							$	13,006.5		$	10,425.6
DSO⁽⁴⁾							73 days			66 days
As at							December 31, 2022			December 31, 2021
Net debt to adjusted EBITDA ratio⁽⁴⁾								1.6			0.6

⁽¹⁾	_{Quantitative reconciliations of net revenues to revenues are presented below under the caption "Non-IFRS and other financial measures".}
⁽²⁾	_{Non-IFRS financial measure or non-IFRS ratio without a standardized definition under IFRS, which may not be comparable to similar measures or ratios used by other issuers. Quantitative reconciliations of non-IFRS financial measures to the most directly comparable IFRS measures are presented below under the caption "Non-IFRS and other financial measures". Adjusted EBITDA margin is defined as adjusted EBITDA expressed as a percentage of net revenues. Adjusted net earnings per share is the ratio of adjusted net earnings divided by the basic weighted average number of shares outstanding for the period. This press release incorporates by reference section 22, “Glossary of segment reporting, non-IFRS and other financial measures”, of WSP’s MD&A for the year ended December 31, 2022, filed on SEDAR at www.sedar.com, which includes explanations of the composition and usefulness of these non-IFRS financial measures and non-IFRS ratios.}
⁽³⁾	_{Management has amended its definition of adjusted net earnings, effective January 1, 2022, to exclude impairment charges on long-lived assets and reversals thereof. The comparative period results did not require restatement to apply the current definition as no impairment of long-lived assets was recorded in 2021. Refer to section 8.8, “Adjusted net earnings” in WSP’s MD&A for the year ended December 31, 2022 for further explanation.}
⁽⁴⁾	_{This press release incorporates by reference section 22, “Glossary of segment reporting, non-IFRS and other financial measures”, of WSP’s MD&A for the quarter and year ended December 31, 2022, filed on SEDAR at www.sedar.com, which explains the composition of the supplemental financial measures, as well as the usefulness of the net debt to adjusted EBITDA ratio, which is a capital management measure composed of the ratio of net debt to adjusted EBITDA for the trailing twelve-month period. Net debt is defined as long-term debt, including current portions but excluding lease liabilities, and net of cash.}

RESULTS OF OPERATIONS

	Fourth quarters ended				Years ended
(in millions of dollars, except number of shares and per share data)	December 31, 2022		December 31, 2021		December 31, 2022		December 31, 2021
Revenues	$	3,560.8	$	2,891.0	$	11,932.9	$	10,279.1
Less: Subconsultants and direct costs	$	1,007.1	$	743.6	$	2,975.7	$	2,409.5
Net revenues	$	2,553.7	$	2,147.4	$	8,957.2	$	7,869.6
Earnings before net financing expense and income taxes	$	185.3	$	185.2	$	749.1	$	724.6
Net financing expense	$	27.3	$	14.3	$	161.6	$	79.5
Earnings before income taxes	$	158.0	$	170.9	$	587.5	$	645.1
Income tax expense	$	37.6	$	44.1	$	152.8	$	171.0
Net earnings	$	120.4	$	126.8	$	434.7	$	474.1
Net earnings attributable to:
Shareholders of WSP Global Inc.	$	120.0	$	126.7	$	431.8	$	473.6
Non-controlling interests	$	0.4	$	0.1	$	2.9	$	0.5
Basic net earnings per share attributable to shareholders	$	0.96	$	1.08	$	3.59	$	4.07
Diluted net earnings per share attributable to shareholders	$	0.96	$	1.07	$	3.58	$	4.05
Basic weighted average number of shares		124,426,229		117,661,970		120,400,365		116,479,695
Diluted weighted average number of shares		124,730,705		118,082,536		120,709,390		116,901,686

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
(in millions of dollars)
References to notes refer to notes in the financial statements

As at December 31	December 31, 2022	December 31, 2021
	$	$
Assets
Current assets
Cash and cash equivalents (note 29)	495.6	927.4
Trade receivables and other receivables (note 15)	2,625.8	1,916.8
Cost and anticipated profits in excess of billings (note 16)	1,626.2	1,156.4
Prepaid expenses	138.9	169.6
Other financial assets (note 17)	108.2	141.7
Income taxes receivable	39.5	28.9
	5,034.2	4,340.8
Non-current assets
Right-of-use assets (note 18)	978.9	861.5
Intangible assets (note 19)	1,102.6	549.9
Property and equipment (note 20)	398.9	363.6
Goodwill (note 21)	6,792.2	4,762.3
Deferred income tax assets (note 13)	351.3	165.1
Other assets (note 22)	183.6	207.2
	9,807.5	6,909.6
Total assets	14,841.7	11,250.4

Liabilities and equity
Liabilities
Current liabilities
Accounts payable and accrued liabilities (note 23)	2,736.4	2,217.3
Billings in excess of costs and anticipated profits (note 16)	973.1	751.1
Income taxes payable	260.4	149.8
Provisions (note 24)	152.2	77.5
Dividends payable to shareholders (note 28)	46.7	44.2
Current portion of lease liabilities (note 18)	273.0	254.2
Current portion of long-term debt (note 25)	173.4	297.4
	4,615.2	3,791.5
Non-current liabilities
Long-term debt (note 25)	2,781.1	1,479.3
Lease liabilities (note 18)	856.8	766.1
Provisions (note 24)	288.9	236.2
Retirement benefit obligations (note 9)	162.3	212.9
Deferred income tax liabilities (note 13)	128.3	99.2
	4,217.4	2,793.7
Total liabilities	8,832.6	6,585.2

Equity
Equity attributable to shareholders of WSP Global Inc.	6,006.0	4,664.5
Non-controlling interests	3.1	0.7
Total equity	6,009.1	4,665.2
Total liabilities and equity	14,841.7	11,250.4

CONSOLIDATED STATEMENTS OF CASH FLOWS
(in millions of dollars)
References to notes refer to notes in the financial statements)

	December 31, 2022		December 31, 2021
	$		$
Operating activities
Net earnings	434.7		474.1
Adjustments (note 29)	535.6		436.6
Net financing expense (note 12)	161.6		79.5
Income tax expense (note 13)	152.8		171.0
Income taxes paid	(185.2	)	(134.0	)
Change in non-cash working capital items (note 29)	(284.7	)	32.9
Cash inflows from operating activities	814.8		1,060.1
Financing activities
Issuance of long-term debt related to business acquisitions (note 13)	2,309.3		1,200.7
Repayment of long-term debt following business acquisitions (note 13)	(1,025.8	)	(262.7	)
Net repayment of other long-term debt	(235.2	)	(523.9	)
Issuance of common shares, net of issuance costs (note 26)	883.5		308.5
Lease payments (note 18)	(341.3	)	(303.2	)
Dividends paid to shareholders of WSP Global Inc.	(90.1	)	(80.6	)
Net financing expenses paid, excluding interest on lease liabilities	(79.2	)	(47.8	)
Issuance of senior unsecured notes (note 25)	—		500.0
Dividends paid to non-controlling interests	(0.5	)	(0.8	)
Cash inflows (outflows) from financing activities	1,420.7		790.2
Investing activities
Net disbursements related to business acquisitions (note 5)	(2,556.7	)	(1,244.9	)
Additions to property and equipment, excluding business acquisitions	(130.9	)	(100.7	)
Additions to identifiable intangible assets, excluding business acquisitions	(35.6	)	(20.5	)
Proceeds from disposal of property and equipment	2.0		10.4
Dividends received from associates	22.0		14.4
Net cash received on a loan to an associate	1.2		0.3
Proceeds from sale of investment in an associate	1.2		4.6
Net proceeds from disposal of businesses	2.6		—
Decrease (increase) in investments in securities	11.5		(7.1	)
Repurchase of non-controlling interest	—		(1.4	)
Cash outflows from investing activities	(2,682.7	)	(1,344.9	)
Effect of exchange rate change on cash and cash equivalents	11.9		(13.8	)
Change in net cash and cash equivalents	(435.3	)	491.6
Cash and cash equivalents, net of bank overdraft - beginning of the year	926.3		434.7
Cash and cash equivalents, net of bank overdraft - end of the year (note 29)	491.0		926.3

All amounts shown in this press release are expressed in Canadian dollars, unless otherwise indicated. All quarterly information disclosed in this press release is based on unaudited figures.

NON-IFRS AND OTHER FINANCIAL MEASURES
The Corporation reports its financial results in accordance with IFRS. WSP uses a number of financial measures when assessing its results and measuring overall performance. Some of these financial measures are not calculated in accordance with IFRS. Regulation 52-112 respecting Non-GAAP and Other Financial Measures Disclosure (“Regulation 52-112”) prescribes disclosure requirements that apply to the following types of measures used by the Corporation: (i) non-IFRS financial measures; (ii) non-IFRS ratios; (iii) total of segments measures; (iv) capital management measures; and (v) supplemental financial measures.

In this press release, the following non-IFRS and other financial measures are used by the Corporation: net revenues; adjusted EBITDA; adjusted EBITDA margin; adjusted net earnings; adjusted net earnings per share; backlog; free cash flow; days sales outstanding (“DSO”); and net debt to adjusted EBITDA ratio. Additional details for these non-IFRS and other financial measures can be found in section 22, “Glossary of segment reporting, non-IFRS and other financial measures” of WSP’s MD&A for the quarter and year ended December 31, 2022, which is posted on WSP’s website at www.wsp.com, and filed on SEDAR at www.sedar.com. Reconciliations of non-IFRS financial measures and total of segments measures to the most directly comparable IFRS measures are provided below.

Management believes that these non-IFRS and other financial measures provide useful information to investors regarding the Corporation’s financial condition and results of operations as they provide key metrics of its performance. These non-IFRS and other financial measures are not recognized under IFRS, do not have any standardized meanings prescribed under IFRS and may differ from similar computations as reported by other issuers, and accordingly may not be comparable. These measures should not be viewed as a substitute for the related financial information prepared in accordance with IFRS.

Reconciliation of net revenues
The following table reconciles net revenues to the most comparable IFRS measure:
	Fourth quarters ended				Years ended
(in millions of dollars)	December 31, 2022		December 31, 2021		December 31, 2022		December 31, 2021
Revenues	$	3,560.8	$	2,891.0	$	11,932.9	$	10,279.1
Less: Subconsultants and direct costs	$	1,007.1	$	743.6	$	2,975.7	$	2,409.5
Net revenues*	$	2,553.7	$	2,147.4	$	8,957.2	$	7,869.6
* Total of segments measure.

Reconciliation of adjusted EBITDA
The following table reconciles this metric to the most comparable IFRS measure:
	Fourth quarters ended				Years ended
(in millions of dollars)	December 31, 2022		December 31, 2021		December 31, 2022		December 31, 2021
Earnings before net financing expense and income taxes	$	185.3	$	185.2	$	749.1	$	724.6
Acquisition, integration and reorganization costs	$	49.7	$	23.6	$	115.5	$	60.8
ERP implementation costs	$	19.4	$	6.8	$	49.9	$	6.8
Depreciation of right-of-use assets	$	77.6	$	65.5	$	288.5	$	265.8
Amortization of intangible assets	$	73.1	$	46.8	$	173.4	$	139.1
Depreciation of property and equipment	$	30.6	$	29.8	$	114.6	$	113.6
Impairment of long-lived assets	$	5.1	$	—	$	21.6	$	—
Share of depreciation and taxes of associates	$	3.2	$	2.1	$	11.8	$	9.4
Interest income	$	2.4	$	1.4	$	5.8	$	2.4
Adjusted EBITDA*	$	446.4	$	361.2	$	1,530.2	$	1,322.5
* Non-IFRS financial measure.

Reconciliation of adjusted net earnings
The following table reconciles this metric to the most comparable IFRS measure:
	Fourth quarters ended						Years ended
(in millions of dollars, except per share data)	December 31, 2022			December 31, 2021			December 31, 2022			December 31, 2021
Net earnings attributable to shareholders	$	120.0		$	126.7		$	431.8		$	473.6
Amortization of intangible assets related to acquisitions	$	49.3		$	32.1		$	112.6		$	95.1
Impairment of long-lived assets	$	5.1		$	—		$	21.6		$	—
Acquisition, integration and reorganization costs	$	49.7		$	23.6		$	115.5		$	60.8
ERP implementation costs	$	19.4		$	6.8		$	49.9		$	6.8
Losses (gains) on investments in securities related to deferred compensation obligations	$	(5.0	)	$	(4.0	)	$	22.1		$	(14.0	)
Unrealized losses on derivative financial instruments	$	(3.5	)	$	(1.7	)	$	20.1		$	7.7
Income taxes related to above items	$	(25.7	)	$	(11.8	)	$	(81.0	)	$	(37.1	)
Adjusted net earnings*	$	209.3		$	171.7		$	692.6		$	592.9
Adjusted net earnings per share*	$	1.68		$	1.46		$	5.75		$	5.09
* Non-IFRS financial measure or non-IFRS ratio.

Reconciliation of free cash flow
The following table reconciles this metric to the most comparable IFRS measure:
	Fourth quarters ended						Years ended
(in millions of dollars)	December 31, 2022			December 31, 2021			December 31, 2022			December 31, 2021
Cash inflows from operating activities	$	607.4		$	513.2		$	814.8		$	1,060.1
Lease payments in financing activities	$	(91.9	)	$	(82.7	)	$	(341.3	)	$	(303.2	)
Net capital expenditures*	$	(72.8	)	$	(60.6	)	$	(164.5	)	$	(110.8	)
Free cash flow**	$	442.7		$	369.9		$	309.0		$	646.1
* Capital expenditures pertaining to property and equipment and intangible assets, net of proceeds from disposal and lease incentives received.
** Non-IFRS financial measure.

FORWARD-LOOKING STATEMENTS
Certain information regarding WSP contained herein are not based on historical facts and may constitute forward-looking statements or forward-looking information under Canadian securities laws (collectively, “forward-looking statements”). Forward-looking statements may include estimates, plans, strategic ambitions, objectives, expectations, opinions, forecasts, projections, guidance, outlook or other statements that are not statements of fact. Forward-looking statements made by the Corporation in this press release include statements about the payment of dividends, our proposed strategy, and our operating performance, financial outlook, prospects and expectations including those under the section “outlook for 2023” of this press release, and statements about the 2022-2024 Global Strategic Action Plan. These forward-looking statements are based on a number of assumptions believed by the Corporation to be reasonable as at March 8, 2023, including assumptions set out through this press release and under section 19 “Forward-Looking Statements” of WSP's MD&A for the quarter and year ended December 31, 2022 which is available on SEDAR at www.sedar.com.

Although WSP believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to have been correct. These statements are subject to certain risks and uncertainties and may be based on assumptions that could cause actual results to differ materially from those anticipated or implied in the forward-looking statements. WSP's forward-looking statements are expressly qualified in their entirety by this cautionary statement. The complete version of the cautionary note regarding risk factors, which, if realized, could cause the Corporation's actual results to differ materially from those expressed or implied in forward-looking statements, are discussed in greater detail in section 20, “Risk factors” of WSP's MD&A for the quarter and year ended December 31, 2022 which is available on SEDAR at www.sedar.com. The forward-looking statements contained in this press release are made as of the date hereof and, accordingly, are subject to change after such date. Except to the extent required by applicable law, WSP does not assume any obligation to publicly update or revise any forward-looking statements made in this press release or otherwise, whether as a result of new information, future events or otherwise.

ABOUT WSP
As one of the world’s leading professional services firms, WSP exists to future-proof our cities and environment. We provide strategic advisory, engineering, and design services to clients in the transportation, infrastructure, environment, building, energy, water, and mining sectors. Our 66,000 trusted professionals are united by the common purpose of creating positive, long-lasting impacts on the communities we serve through a culture of innovation, integrity, and inclusion. Sustainability and science permeate our work. In 2022, WSP derived more than half of its $11.9 B (CAD) revenues from services that support the UN Sustainable Development Goals. The Corporation’s shares are listed on the Toronto Stock Exchange (TSX:WSP).

FOR ADDITIONAL INFORMATION, PLEASE CONTACT:

Alain Michaud
Chief Financial Officer
WSP Global Inc.
alain.michaud@wsp.com
Phone: 438-843-7317

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