Slide 1: Full year results 2012
For personal use only Full year results 2012 John Grill
Slide 2: Overview
Overview For personal use only Good earnings growth delivered in FY2012. Sound platform for further growth in FY2013. ► Strong growth in revenue and cash from operations ► 77 significant new major projects and long term contract awards ► Increasing demand for Improve services ► Majority of revenue g
Slide 3: Financial highlights
Financial highlights For personal use only FY12 vs. FY11 Statutory Underlying Underlying results results results* Net profit after tax $353 m $346 m 16% Aggregated revenue $7,408 m $7,363 m 25% EBIT $538 m $530 m 12% Operating cash flow $438 m $438 m 49% Basic earnings per share 143.7 c/s 140.6 c/s
Slide 4: Safety performance
Safety performance For personal use only ► We incurred three work related fatalities during the year, two from road accidents and one from a bacterial infection ► Safety remains a major focus in our business ► We strive for year on year improvement but this was not achieved in FY2012 • Total Recorda
Slide 5: Snapshot
Snapshot For personal use only Continued growth in Hydrocarbons Game changing developments and ever and Minerals, Metals & Chemicals growing demand for energy globally is particularly in Canada, Australia and driving unconventional oil and gas the USA Lower gas prices have sparked a Hydrocar
Slide 6: Snapshot
Snapshot For personal use only Strong focus on major global Continuing to globalise our customers Minerals, Metals & Chemicals and Developing markets continue to be Infrastructure & Environment a significant driver of growth – services Latin America, Africa and China Actively pursuing furthe
Slide 7: Local delivery, global support
Local delivery, global support For personal use only 4.9 million workshare hours (FY2011: 3.4 million) 40,800 people 163 offices 41 countries 7
Slide 8: Significant awards for FY2012
Significant awards for FY2012 For personal use only 77 long term contracts / projects 8
Slide 9: Improve contracts
Improve contracts For personal use only ► WorleyParsons’ performance continues to be underpinned by our extensive long term contract base ● Total of 46 new Improve contracts awarded ● 18 contracts renewed ● Currently have over 260 Improve contracts ► Our selection was based upon ● Recognition of our
Slide 10: Local / global model
Local / global model For personal use only Model has been well received by our clients and our people 10
Slide 11: Succession
Succession For personal use only ► On 6 July this year we announced changes to the company’s leadership ► Andrew Wood will succeed me as Chief Executive Officer after the AGM in October ► Supported by an exceptional leadership team ► I will be taking on the role of non-executive Chairman early next
Slide 12: Corporate responsibility
Corporate responsibility For personal use only ► We are on a journey to become a Corporate Responsibility leader by focusing on • Governance, ethics and transparency • Our people • Human rights • Community • Fair operating practices and the supply chain • The environment Kenya Project: Calgary gradu
Slide 13: Financial results 2012
For personal use only Financial results 2012 Andrew Wood
Slide 14: Financial profile
Financial profile For personal use only $m FY08 FY09 FY10 FY11* FY12* Aggregated revenue 4,882.4 6,219.4 4,967.1 5,903.5 7,362.6 EBIT 520.0 605.3 427.4 474.2 530.3 EBIT Margin 10.7% 9.7% 8.6% 8.0% 7.2% Net profit 343.9 390.5 291.1 298.5 345.6 Net profit margin 7.0% 6.3% 5.9% 5.1% 4.7% Basic EPS (cps
Slide 15: Full year financial profile
5 year financial profile For personal use only Record aggregated revenue Good NPAT growth from FY2011 of 16% Margins impacted by a small number of underperforming projects and low margin procurement activity Effective tax rate down 3% from FY2011 to 24.1% due to earnings mix and tax refund
Slide 16: Half on half analysis
Half on half analysis For personal use only $m H1 FY2012 H2 FY2012 Total Growth% Group EBIT 248.3 282.0 530.3 14% EBIT margin 7.3% 7.1% 7.2% Group NPAT 151.9 193.7 345.6 28% Half on half NPAT* 250.0 200.0 150.0 H1 H2 100.0 193.7 179.3 151.9 119.2 50.0 - FY11 FY12 16 * The underlying result for FY201
Slide 17: Change in net profit after tax
Change in net profit after tax FY2011 v FY2012 For personal use only Good growth in Hydrocarbons, MM&C and I&E 17 * The underlying result for FY2012 and FY2011 excludes the fair value gain on acquisition of associates of $7.6m and $65.7m respectively.
Slide 18: Hydrocarbons
Hydrocarbons For personal use only Overall strong performance with record aggregated revenue Australia West impacted by underperformance on a few projects that have now been finalised or provided for Canadian construction business awarded a number of significant module construction and constru
Slide 19: Power
Power For personal use only Record aggregated revenue Fall in earnings contrary to guidance Resource sector in Australia provided growth Increased activity in the European nuclear market Latin America impacted by low margin procurement activity USA contributes 35% of sector revenue and i
Slide 20: Minerals, Metals & Chemicals
Minerals, Metals & Chemicals For personal use only Record aggregated revenue 28% EBIT growth year on year Continuing to grow our relationships with major global companies Strong commodity prices driving demand for services Softness in the Australian market towards the end of the period Rec
Slide 21: Infrastructure & Environment
Infrastructure & Environment For personal use only Record aggregated revenue Increased investment in resource projects is driving an increased demand for services Major projects in the Middle East completed in FY2011 Pit to port projects executed with the Minerals, Metals & Chemicals sector
Slide 22: Cash flow
Cash flow For personal use only $m FY2008 FY2009 FY2010 FY2011* FY2012* EBIT 520 605 427 474 530 Depreciation and amortization 67 88 92 96 103 Interest and tax paid (137) (216) (186) (125) (152) Working capital / other (251) 69 (54) (151) (43) Net cash inflow from operating activities 199 546 280 29
Slide 23: Gearing and key metrics
Gearing and key metrics For personal use only Key Metrics FY2009 FY2010 FY2011* FY2012* Gearing ratio 26% 26% 22% 20% Facility utilisation 54% 61% 53% 51% Average cost of debt 5.5% 5.2% 5.7% 5.7% Average maturity (years) 4.1 3.8 4.6 3.8 Interest cover * 14.1x 13.3x 12.0x 12.4x Net Debt/EBITDA * 0.8x
Slide 24: Liquidity
Liquidity For personal use only ► Liquidity Liquidity Summary $mto support growth available FY2009 FY2010 FY2011 FY2012 Loan & OD facilities 1,376 1,286 1,277 1,445 Less: facilities utilized* (745) (782) (680) (740) Available facilities 631 504 597 705 Plus: cash 178 141 171 247 Total liquidity 809
Slide 25: Financial reporting microsite
Financial reporting microsite For personal use only We have introduced a microsite for presentation of our FY2012 Annual Report The site provides the financial results and documents in one place, making it easier for shareholders and potential investors to access our financial information User
Slide 26: Sector outlook 2012
For personal use only Sector outlook 2012 John Grill
Slide 27: Hydrocarbons
Hydrocarbons For personal use only FY2012 vs. FY2011 Increase in gas monetisation and petrochemical projects in the USA Aggregated as a result of lower natural gas $5,015.1 m 24.0% revenue prices % of Group High LNG prices in Asia creating 68.0% - aggregated revenue focus on natural gas activity
Slide 28: Key project awards - Hydrocarbons
Key project awards Hydrocarbons SORESCO – Moin refinery expansion project, Costa Rica For personal use only PetroEcuador – Refineria del Pacifico refining and petrochemical complex project, Ecuador ExxonMobil – Point Thomson initial production system, Alaska ExxonMobil – Hebron topsides engi
Slide 29: Key Improve awards and renewals - Hydrocarbons
Hydrocarbons Key Improve awards and renewals For personal use only Esso Production Malaysia – engineering, procurement and construction management (EPCM) umbrella agreement (renewal), Malaysia PT Chevron Pacific – overall program management, engineering and construction management services, Indo
Slide 30: Hydrocarbons Sector outlook
Hydrocarbons Sector outlook Continued high level of spending in For personal use only onshore unconventional markets Continued growth in global greenfield upstream and downstream markets Ongoing growth of global Improve markets Large number of Select opportunities on new field developments
Slide 31: Power
Power For personal use only FY2012 vs. FY2011 ► Continued growth in the nuclear Improve market Aggregated $581.3 m 13.2% ► Expanding opportunities in power for revenue resource projects in a number of % of Group regions 8.0% 1.0% aggregated revenue ► Long term service agreements to EBIT $59.9 m 8.3%
Slide 32: Key project awards - Power
Key project awards Power Akkuyu NGS Elektrik Uretim Anonim Sirketi – nuclear power plant, Turkey For personal use only InterRAO UES – Baltic nuclear power plant bankable feasibility study phase 2, Russia King Abdullah City for Atomic and Renewable Energy – nuclear power plant siting services,
Slide 33: Key Improve awards and renewals - Power
Power Key Improve awards and renewals For personal use only Kozloduy – stress tests for nuclear power facilities, Bulgaria Bruce Power – sustaining projects, Canada Ontario Power Generation – Darlington nuclear refurbishment, Canada Arizona Public Services – Palo Verde nuclear power plant ta
Slide 34: Power Sector outlook
Sector outlook Power Developing markets continue to provide opportunities in new build For personal use only power generation projects Expect growth in nuclear Improve market as a result continuing safety upgrades Further growth in resource power in Latin America, Sub Saharan Africa and the Mi
Slide 35: Minerals, Metals & Chemicals
Minerals, Metals & Chemicals For personal use only FY2012 vs. FY2011 ► Active in bulk commodities (iron ore, coal, copper and fertilizers) Aggregated $895.4 m 39.1% ► Renamed the division to reflect our revenue increased focus on the global % of Group chemicals industry 12.2% 1.3% aggregated revenue
Slide 36: Key project awards - Minerals, Metals & Chemicals
Minerals, Metals & Key project awards Chemicals Anglo American – Chagres smelter development, Chile For personal use only Areva – JEB mill upgrade, Canada BASF – Acai / Nanjing super absorbent polymer projects, Brazil and China BHP Billiton iron ore – EPCM master framework agreement, Austral
Slide 37: Key Improve awards and renewals - MM&C
Minerals, Metals & Chemicals For personal use only Key Improve awards and renewals BASF – North American engineering partner contract, USA and Canada BHP Billiton iron ore – sustaining capital, Australia BHP Billiton Mitsubishi Alliance – coal sustaining capital, Australia Fortescue Metals G
Slide 38: Minerals, Metals & Chemicals Sector outlook
Minerals, Metals & Sector outlook Chemicals Current market uncertainty resulting For personal use only in near term caution Uncertainty resulting in project delays and review of capital programs, particularly in Australia Medium to long term outlook remains strong Continue to focus on buildi
Slide 39: Infrastructure & Environment
Infrastructure & Environment For personal use only FY2012 vs. FY2011 Further developed the restoration sector and secured several global Aggregated restoration framework agreements $870.8 m 24.0% revenue with global customers % of Group Redirected urban water sector to the 11.8% - aggregated rev
Slide 40: Key project awards - Infrastructure & Environment
Infrastructure & Environment For personal use only Key project awards MPX – Guajira coal port and rail infrastructure, Colombia Norte Energia – Belo Monte hydroelectric plant environment and social compliance, Brazil Queensland Curtis LNG – water treatment environment and social licence, Austr
Slide 41: Key Select and Improve awards and renewals
Infrastructure & Key Select and Improve awards Environment and renewals For personal use only Port of Los Angeles/Long Beach – restoration services framework agreement, USA BP – remediation management North American framework agreement, USA ExxonMobil – Port Stanvac refinery program management
Slide 42: Infrastructure & Environment Sector outlook
Infrastructure & Environment Sector outlook Increasing engagement with global For personal use only customers Demand for resource infrastructure continues to grow in Australia, Sub Saharan Africa and Latin America Strong demand for remediation, decommissioning, response and recovery services
Slide 43: Summary
Summary ► Delivered good underlying earnings ► Continue to focus on building capability For personal use only growth despite the volatile and in the developing world challenging market conditions ► Well positioned to meet the growing ► Growth continues in the unconventional demands of our customers
Slide 44: Group outlook
Group outlook For personal use only Commenting on the outlook for the WorleyParsons Group, Mr John Grill said: “Subject to the markets for our services remaining strong, we expect to achieve good growth in FY2013 compared to FY2012 underlying earnings. “We have a clear growth strategy in place focus
Slide 45: Full year results 2012
For personal use only Full year results 2012
Slide 46: Contractual acronyms
Contractual acronyms For personal use only EDS – Engineering and Design Services E&P – Engineering and Procurement EPC – Engineering, Procurement and Construction EPCM – Engineering, Procurement and Construction Management ESA – Engineering Services Agreement ESP – Engineering Services Provider FEED
Slide 47: Segment margins
Segment margins FY2012 For personal use only Hydrocarbons Power Minerals, Metals Infrastructure & TOTAL & Chemicals Environment Sales to external customers 4,728.7 524.1 892.5 840.3 6,985.6 Procurement services revenue at margin 285.8 55.2 1.2 30.5 372.7 Other Income 0.6 2.0 1.7 0.0 4.3 Total 5,015.
Slide 48: FX translation impact
FX translation impact Movement in Major Currencies Group EBIT FX Impact Since FY2008 For personal use only FY08 FY09 FY10 FY11 FY12 105.0 30 29 20 100.0 10 0 A$m 95.0 -10 -20 -18 -20 -32 -30 -41 90.0 -40 85.0 -50 Jul-11 Oct-11 Dec-11 Jan-12 Mar-12 Apr-12 Aug-11 Sep-11 Nov-11 Feb-12 May-12 Jun-12 USD
Slide 49: Dividends, amortisation and tax
Dividends, amortisation and tax Dividend History For personal use only FY08 FY09 FY10 FY11 FY12 Interim dividend (cps) 38.0 38.0 35.5 36.0 40.0 Franked 30% 76% 100% 100% 79% $m total 91.9 92.2 87.0 88.6 98.3 Final dividend (cps) 47.5 55.0 40.0 50.0 51.0 Franked % 71% 100% 47% 26% 61% $m total 114.8