Worley Limited · ASX:WOR
Worley — WorleyParsons — FY2011 Earnings Presentation
46 slides from Worley's earnings presentation, Aug 26, 2011
Slide 1: ASX cover letter: Full Year Results 2011 Presentation
Level 12, 141 Walker Street North Sydney NSW 2060 Australia Telephone: +61 2 8923 6866 Facsimile: +61 2 8923 6877 worleyparsons.com WorleyParsons Limited ABN 17 096 090 158 26 August 2011 For personal use only Manager, Company Announcements Office ASX Limited Level 4, Exchange Centre 20 Bridge Stree
Slide 2: Full Year Results 2011
WorleyParsons 1806 = resources & energy Full Year Results 2011 *EcoNomics sexs"
Slide 3: Overview
Overview For personal use only Good result in FY2011 made up of underlying performance in accordance with guidance and fair value gains on acquisitions of associates ● Strong underlying second half result (NPAT up 50% half on half) ● Well positioned for good growth in FY2012 ● 68 significant new m
Slide 4: Financial Highlights
Financial Highlights For personal use only * The Underlying Results for FY2011 excludes the fair value gains on acquisitions of $65.7M 3
Slide 5: Snapshot
Snapshot Experiencing recovery in all locations and For personal use only sectors particularly evident in second half Currency movements and market uncertainties still exist Withstood Middle East instability and natural disasters in the second half Pleasing wins in a recovering Canadian oil
Slide 6: Snapshot
Snapshot For personal use only Continued expansion of operations in the developing world ● Kwezi V3 Engineers acquisition in South Africa ● Increased share in Saudi Arabia to 75% ● Increased share in China to approximately 80% Secured 37 long-term Improve contracts in 9 countries ● Increased dem
Slide 7: Global Reach, Local Operations
Global Reach, Local Operations For personal use only 3.4 million workshare hours completed 35,100 people 143 offices 43 countries 6
Slide 8: Growing Engagement with Developing World
Growing Engagement with Developing World For personal use only Significant footprint in: ● China, Latin America, Former Soviet Union, Africa, Asia, Middle East New country entries ● Mongolia, Ghana, Namibia, Peru, Columbia Acquired 100% of South African based KV3 ● Now have about 2,000 staff a
Slide 9: WorleyParsons Significant New Awards in FY
WorleyParsons Significant New Awards in FY 11 resources & energy (@) Zp) SS ., © < (S) 4 O 1 Minerals & Metals long term or contracts / projects ww Oo 8 Infrastructure & Environment LL, long term contracts / projects 3 Hydrocarbons long term contracts / projects 68 long term contracts / projects 8 E
Slide 10: Long Term Contracts
Long Term Contracts For personal use only WorleyParsons’ performance continues to be underpinned by our extensive long- term contract base ● Seven new global / multi-site agreements ● Total of 37 new Improve contracts awarded ● 20 contracts renewed ● 230 Improve contracts serviced on this basis
Slide 11: Organisational Structure
Organisational Structure For personal use only Announced new management structure in March 2011 Outstanding location-based delivery with effective group wide support 10
Slide 12: Safety Performance
Safety Performance For personal use only Our safety performance continues to improve Areas of focus ● Road safety ● Field and construction HSE activities ● Broader emphasis and engagement in Zero Harm message across the business Highlights ● WorleyParsons Europe awarded the Royal Society for t
Slide 13: Financial Results
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Slide 14: Financial Profile
Financial Profile For personal use only $m FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 1 vs. FY2010 Aggregated Revenue 3,525 4,882 6,219 4,967 5,904 19% EBIT 319 520 605 427 474 11% EBIT Margin 9.0% 10.7% 9.7% 8.6% 8.0% (0.6%) Net profit 224.8 343.9 390.5 291.1 298.5 2.5% Net profit margin 6.4% 7.0% 6.3
Slide 15: Five Year Financial Profile
5 Year Financial Profile Net profit $m Aggregated Revenue $m 390.5 For personal use only 6,219.4 343.9 5,903.5 291.1 298.5 4,882.4 4,967.1 224.8 3,525.4 197.5 3,256.1 2,916.4 2,548.1 152.7 138.0 2,354.1 119.2 1,455.8 94.5 2007 2008 2009 2010 2011 2007 2008 2009 2010 2011 Effective tax rate of 23.3
Slide 16: Half on Half analysis
Half on Half analysis For personal use only $M FY 2011 1st Half 2nd Half Total Growth % Group EBIT 193 281 474 46% EBIT Margin 6.6 9.4 8.0 Group NPAT 119 180 299 50% Half on Half NPAT 200 180 153 138 150 119 $M 100 50 0 2010 2011 1st Half 2nd Half 15
Slide 17: Change in Net Profit after Tax
Change in Net Profit after Tax FY 2011 v FY 2010 For personal use only 19.2 (8.7) (10.3) 9.2 (3.4) (29.5) 65.7 70.8 (8.3) (31.5) $m 291.1 298.5 364.2 FY10 NPAT Hydrocarbons Power Minerals & Metals Infrastructure & Corporate Net Interest Income Tax Minority Interest FX Impact FY11 NPAT Fair Value Gai
Slide 18: Hydrocarbons
Hydrocarbons Aggregated Revenue $m FY11 Aggregated Revenue % by Region For personal use only 4,740.1 USLAC 4,020.1 19% AME 20% 3,604.8 3,425.4 2,579.1 2,373.7 1,869.1 1,950.3 1,760.3 1,026.0 E&A 18% ANZ 17% 2007 2008 2009 2010 2011 Revenue % of Group 74% 73% 76% 70% 68% Canada EBIT Margin 9% 11% 11%
Slide 19: Power
Power FY11 Aggregated Revenue % by Region Aggregated Revenue $m For personal use only AME 8% 546.3 537.5 509.4 465.9 437.4 ANZ 21% 289.3 303.3 247.3 USLAC 45% 217.7 188.1 Canada 7% 2007 2008 2009 2010 2011 E&A 19% Revenue % of Group 12% 10% 9% 10% 9% EBIT Margin 13% 13% 12% 8% 8% Power EBIT Movement
Slide 20: Minerals & Metals
Minerals & Metals FY11 Aggregated Revenue % by Region Aggregated Revenue $m For personal use only USLAC 643.8 12% 583.0 562.5 AME 22% E&A 3% 469.3 371.8 Canada 9% 318.1 291.4 239.8 214.1 129.3 2007 2008 2009 2010 2011 Revenue % of Group 8% 10% 9% 11% 11% ANZ 54% EBIT Margin 15% 17% 14% 14% 11% Miner
Slide 21: Infrastructure & Environment
Infrastructure & Environment FY11 Aggregated Revenue % by Region Aggregated Revenue $m 702.1 For personal use only USLAC 10% AME 15% 469.8 E&A 12% 342.4 350.0 344.7 214.9 221.3 191.9 162.0 112.4 Canada 16% ANZ 47% 2007 2008 2009 2010 2011 Revenue % of Group 6% 7% 6% 9% 12% EBIT Margin 9% 12% 9% 10%
Slide 22: Cash Flow
Cash Flow For personal use only $m FY07 FY08 FY09 FY10 FY11 EBIT 319 520 605 427 474 Depreciation and amortization 34 67 88 92 96 Interest and tax paid (66) (137) (216) (186) (125) Working capital / other (91) (251) 69 (53) (151) Net cash inflow from operating activities 196 199 546 280 294 Net cash
Slide 23: Liquidity & Gearing
Liquidity & Gearing For personal use only Key Metrics Jun-08 Jun-09 Jun-10 Jun-11 Liquidity Summary $m Jun-08 Jun-09 Jun-10 Jun-11 Gearing ratio 31% 26% 26% 22% Loan & OD facilities 1,094 1,376 1,286 1,277 Facility utilisation 67% 54% 61% 53% Less: facilities utilized (736) (745) (781) (680) Average
Slide 24: Sector Performance and Outlook
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Slide 25: Hydrocarbons: Performance Highlights
Hydrocarbons For personal use only Performance Highlights ● Demand for oil and gas in the Aggregated $4,020M Up 17% developing world continues to Revenue increase driving new developments EBIT $414M Up 10% ● Strengthening performance in Margin 10.3% Down 1% upstream offshore markets in Asia, Russi
Slide 26: Hydrocarbons: Key Project Awards
Hydrocarbons Key Project Awards For personal use only ● MEG Energy – Christina Lake steam assisted gravity drainage Engineering & Procurement(E&P,) Canada ● BP – Rumaila oil field expansion Front End Engineering Design (FEED), Iraq ● ConocoPhillips – Jasmine detailed E&P, North Sea ● Woodside Petr
Slide 27: Hydrocarbons: Key Improve Awards and Renewals
Hydrocarbons For personal use only Key Improve Awards and Renewals Shell – national engineering services agreement for North American terminals and distribution, Canada Suncor – supplier of choice agreement, Canada Shell – Brunei Petroleum major project master contract, Brunei Chevron – ge
Slide 28: Hydrocarbons: Segment Outlook
Hydrocarbons For personal use only Segment Outlook ● Growth and strengthening in global greenfield and Improve markets ● Increased focus on natural gas projects, particularly unconventional gas ● Crude oil opportunities will remain good ● Continued high level of activity in offshore upstream marke
Slide 29: Minerals & Metals: Performance Highlights
Minerals & Metals Performance Highlights For personal use only ● Long term relationships developing with Aggregated 644M Up 14% Tier One customers Revenue ● Services and presence expanded across EBIT 71M Down 8% Latin America – Brazil, Chile, Colombia, Margin 11% Down 3% Peru ● Growth in Delivery
Slide 30: Minerals & Metals: Key Project Awards
Minerals & Metals For personal use only Key Project Awards ● Vale – Kronau potash fertilizer project front end engineering, Canada ● Anglo American – Chagres smelter expansion pre-feasibility study, Chile ● Canteras Del Hallazgo – Chucapaca mine, Peru ● Hancock Coal – Alpha Coal pit to port develo
Slide 31: Minerals & Metals: Key Improve Awards and Renewals
Minerals & Metals For personal use only Key Improve Awards and Renewals ● Vale - global framework agreement ● Anglo American – framework agreement ● Fortescue Metals – group sustaining capital alliance, Australia ● BASF – engineering partnership umbrella contracts, Asia and the Americas ● Invista
Slide 32: Minerals & Metals: Segment outlook
Minerals & Metals Segment outlook For personal use only ● Growth opportunities expected through implementation of global agreements with Tier One customers ● Growth also expected in developing regions, including Latin America and Africa ● Pit-to-port opportunities in coal and iron ore are strong a
Slide 33: Power: Performance Highlights
Power For personal use only Performance Highlights Developed markets – investment focus on: Aggregated 538M Up 6% ● Asset maintenance and optimisation Revenue ● Efficiency improvements EBIT 45M Up 13% ● Smart grid and intelligent networks Margin 8% No change ● New build in gas and renewable energy
Slide 34: Power: New Build in Developing World
Power – New Build in Developing World For personal use only Key Project Awards ● China CAMC Engineering – El Vigia combined cycle gas turbine, design and engineering services, Venezuela ● PetroVietnam – Thai Binh No.2 coal power plant, detailed design, Vietnam ● Akkuyu NGS Elektrik Uretim Anonim S
Slide 35: Power: Improve in Developed World
Power - Improve in Developed Key Improve Awards and Renewals World For personal use only ● Loy Yang Power – asset management services, Australia ● Verve Energy – Collie Power Station, operations and maintenance, renewed for another 6 years, Australia ● Delta Electricity – Vales Point power station
Slide 36: Nuclear Power
Nuclear Power Continues to offer strong growth prospect in new For personal use only build and nuclear Improve in response to Fukushima ● Program management for new build units – Bulgaria, Armenia, Jordan and Egypt ● Feasibility studies – Slovenia, Slovakia, Czech Republic and Russia ● Positioning
Slide 37: Power: Segment Outlook
Power Segment Outlook For personal use only ● Solid improvement in power generation and networks opportunities across Asia, Middle East, Latin America and Africa ● North America markets continue to improve supported by opportunities in asset optimisation, energy efficiency, and integrated networks
Slide 38: Infrastructure & Environment: Performance Highlights
Infrastructure & Environment For personal use only Performance Highlights ● Expanding global reach building on a Aggregated 702M Up 49% foundation of expertise in the resources Revenue industry in Australia EBIT 65M Up 36% ● Pit to port projects are being pursued Margin 9% Down 1% and executed wit
Slide 39: Infrastructure & Environment: Key Project Awards
Infrastructure & Environment Key Project Awards For personal use only ● Port Authority of New York & New Jersey – rail yard, float bridges, rail barge and barge refurbishment, USA ● Port Metro Vancouver – container capacity improvement, USA ● MPX – La Guajira pit to port Development, Columbia ● Fo
Slide 40: Infrastructure & Environment: Segment Outlook
Infrastructure & Environment For personal use only Segment Outlook ● Global infrastructure and environment opportunities expected to flow into 2012, particularly in Hydrocarbons and Mining sectors ● Focus on creating global leadership in Coastal and Marine, Transport, Water and Waste Water, and En
Slide 41: Summary 2011
Summary 2011 For personal use only Strong 2nd half performance delivered full year result in accordance with guidance Well positioned for growth with increasing number of people expected to continue All sectors seeing markets improving Global customer agreements, significant new major and ne
Slide 42: Group Outlook
Group Outlook For personal use only Commenting on the outlook for the WorleyParsons Group, Mr John Grill said: “The group result improved through the second half of 2011 and, subject to the markets for our services remaining strong, we expect to achieve good growth in 2012 compared to 2011 underlyin
Slide 43: Full Year Results 2011
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Slide 44: Contractual Acronyms
Contractual Acronyms For personal use only D4 – Deactivation, Decontamination, Decommissioning, Demolition EDS – Engineering and Design Services E&P – Engineering and Procurement EPC – Engineering, Procurement and Construction EPCM – Engineering, Procurement and Construction Management ESA – Enginee
Slide 45: FX Translation Impact
FX Translation Impact % Movement in major currencies For personal use only Movement in Major Currencies 130.0 125.0 120.0 115.0 110.0 105.0 100.0 95.0 Apr-11 Aug-10 Jun-10 Feb-11 Jun-11 Dec-10 Oct-10 USD GBP CAD Currency Annualized AUD $m NPAT Currency FY10 FY11 FY∆ translation impact of 1c ∆ * AUD:
Slide 46: Dividend History
Dividend History FY07 FY08 FY09 FY10 FY11 For personal use only Interim dividend (cps) 28.0 38.0 38.0 35.5 36.0 Franked % 19% 30% 76% 100% 100% $m total 57.5 91.9 92.2 87.0 88.6 Final dividend (cps) 32.5 47.5 55.0 40.0 50.0 Franked % 29% 71% 100% 47% 26% $m total 78.2 114.8 133.5 98.0 122.8 Total (c