Slide 1: Full year results 2013
For personal use only Full year results 2013 Andrew Wood
Slide 2: Overview
Overview Geographic and sector diversification For personal use only contributes to solid performance ► Record aggregated revenue, EBIT flat and NPAT down ► Hydrocarbons sector revenue and EBIT up ► Growth in the Chemicals sector more than offset weakness in Minerals and Metals ► Infrastructure & En
Slide 3: Financial overview
Financial overview For personal use only ► Net profit after tax of $322m decreased by 7%* ► Record aggregated revenue of $7,627m up 4%*, statutory revenue and other income of $8,832m up 19%* ► EBIT of $527m in line with prior year underlying EBIT ► EBIT margin declined year on year from 7.2% to 6.9%
Slide 4: Financial highlights
Financial highlights For personal use only $m FY13 FY13 vs. FY12* Aggregated Revenue 7,627.0 4% EBIT 527.0 -1% Net profit after tax 322.1 -7% Operating cash flow 443.5 1% Basic earnings per share 130.8 -7% Final dividend 51.0 c/s Full year dividend 92.5 c/s The IFRS financial information contained w
Slide 5: Financial Results
For personal use only Financial Results Simon Holt
Slide 6: Financial profile
Financial profile For personal use only $m FY09 FY10 FY11* FY12* FY13 Aggregated Revenue 6,219.4 4,967.1 5,903.5 7,362.6 7,627.0 EBIT 605.3 427.4 474.2 530.3 527.0 EBIT Margin 9.7% 8.6% 8.0% 7.2% 6.9% Net profit 390.5 291.1 298.5 345.6 322.1 Net profit margin 6.3% 5.9% 5.1% 4.7% 4.2% Basic EPS (cps)
Slide 7: Financial profile
Financial profile For personal use only Record aggregated revenue 7 * The underlying result for FY2012 and FY2011 excludes the fair value gain on acquisition of associates of $7.6m and $65.7m respectively
Slide 8: Financial profile
Financial profile For personal use only Hydrocarbons primary contributor to EBIT growth Global support costs remain flat at approximately 5% of aggregated revenue ► The effective corporate tax rate was 27.3%, up from 24.1% in FY12 Minimal foreign exchange impact Global support costs reduced 8
Slide 9: Margin profile
Margin profile For personal use only Second half EBIT margin of 7.3% up from first half of 6.5% Hydrocarbons professional services EBIT margin increased from 12.3% to 13.1% Minerals, Metals & Chemicals margins steady despite market conditions Infrastructure & Environment impacted by deterior
Slide 10: Aggregated Revenue
Aggregated Revenue For personal use only Geographically diverse 10 * Regions in constant currency
Slide 11: Operations overview
Operations overview For personal use only Reduced demand for resource infrastructure services in Australia and South Africa Canada EBIT impacted by additional costs on construction and fabrication Market challenges offset by developing world opportunities 11 * Regions in constant currency
Slide 12: Hydrocarbons
Hydrocarbons For personal use only 6% EBIT growth on FY12 Australia increase due to LNG project activity Canada impacted by additional costs on lump sum projects in WorleyParsonsCord Reduced activity in Sub Saharan Africa Continued high activity in downstream and upstream markets in the US
Slide 13: Minerals, Metals & Chemicals
Minerals, Metals & Chemicals For personal use only EBIT growth despite challenging market conditions Growth in chemicals in China and Latin America Australian minerals and metals market conditions deteriorated Further geographical diversification with Australia now 37% of aggregated revenue
Slide 14: Infrastructure & Environment
Infrastructure & Environment For personal use only Flow on impact of the deterioration in the Australian resources sector Reduced activity in Canada, Sub Saharan Africa and the US Growth in the Middle East due to increased demand for infrastructure services Reduced government and resource sect
Slide 15: Power
Power For personal use only The Australian power generation asset management business was consolidated into Transfield Worley Power Services Key project cancellation in Canada Europe impacted by the cancellation of a key government project Latin America experienced increased material costs o
Slide 16: Cash Flow
Cash Flow For personal use only $m FY09 FY10 FY11* FY12* FY13 EBIT 605 427 474 530 527 Depreciation and amortization 88 92 96 103 102 Interest and tax paid (216) (186) (125) (152) (192) Working capital 74 (63) (140) (60) 20 Other (5) 10 (11) 17 (13) Net cash inflow from operating activities 546 280
Slide 17: Gearing and key metrics
Gearing and key metrics For personal use only Key Metrics FY09 FY10 FY11 FY12 FY13 Gearing ratio (net debt / net debt + equity) 26% 26% 22% 20% 25% Facility utilization ** 54% 61% 53% 51% 55% Average cost of debt 5.5% 5.2% 5.7% 5.7% 5.5% Average maturity (years) 4.1 3.8 4.6 3.8 3.8 Interest cover *
Slide 18: Liquidity
Liquidity For personal use only $m FY09 FY10 FY11 FY12 FY13 Loan & OD facilities 1,376 1,286 1,277 1,445 1,912 Less: facilities utilized* (745) (782) (680) (740) (1,062) Available facilities 631 504 597 705 850 Plus: cash 178 141 171 247 320 Total liquidity 809 645 768 952 1,170 Bonding facilities 4
Slide 19: Business update
For personal use only Business update Andrew Wood
Slide 20: Zero Harm safety performance
For personal use only Zero Harm is our goal and to get there we strive for year on year improvement • Total Recordable Case Frequency Rate (TRCFR) was 0.13 (FY2012: 0.12) • Lost Workday Case Frequency Rate (LWCFR) was 0.03 (same in FY2012) • 20% improvement in the overall TRCFR for combined Worley
Slide 21: Strength in Diversification
Strength in Diversification For personal use only Through our products… Advisory Consult Deliver Improve Through our customer sectors... Minerals, Metals & Infrastructure & Power Hydrocarbons Environment Chemicals 5.7 million workshare Through our hours completed geographic reach… across the busines
Slide 22: Significant awards for FY2013
Significant awards for FY2013 For personal use only 23 Hydrocarbons significant 34 Minerals, Metals & Chemicals projects significant projects Including the following strategic wins: Including the following strategic wins: • Maersk – General Design Contractor • Sasol – Integrated program management e
Slide 23: Consulting & Advisory
Consulting & Advisory For personal use only ► Consulting Services: • Delivering technical consulting services to add value to our customers’ businesses • Operating across all CSGs, and project phases, drawing on our global expertise • Earlier and stronger engagement with our customers • Providing st
Slide 24: Improve contracts
Improve contracts For personal use only ► WorleyParsons’ performance continues to be underpinned by our growing long term contract base ● 4 new global agreements ● 35 new Improve contracts awarded ● 11 Improve contracts renewed this year ● More than 290 Improve contracts globally ► Our selection was
Slide 25: Our strategic journey
Our strategic journey For personal use only ► We believe our current 3 year strategy is robust ► We are continuing our strategic journey by • Simplification and discipline • Winning the right work and executing it well • Continuing to engage closely with our customers • Looking to new, aligned marke
Slide 26: Our strategic journey (continued)
Our strategic journey (continued) For personal use only ► Combined existing Power and Infrastructure & Environment sectors into a single CSG called Infrastructure ► CSG reporting aligned by reference to customers ► Operational efficiencies implemented include: • Combining Australia East and West int
Slide 27: Corporate Responsibility
Corporate Responsibility For personal use only ► We continue our journey towards achieving our vision to be a leader in Corporate Responsibility. ► Revised the Code of Conduct reaffirming the Group’s Corporate Responsibility expectations ► Launching the WorleyParsons Foundation in FY14 ► Participate
Slide 28: Sector Outlook
For personal use only Sector Outlook Andrew Wood
Slide 29: Hydrocarbons market opportunities
Hydrocarbons For personal use only Hydrocarbons market opportunities remain robust Increased level of capital expenditure Growth in petrochemicals and other in upstream developments gas monetization opportunities Continued focus on asset Global unconventional oil and gas management has incre
Slide 30: Hydrocarbons sector outlook
Hydrocarbons For personal use only Sector outlook Continued growth of the US gas, downstream and petrochemicals market, opportunities in Norway and in the developing world Potential market slowdown in Australia expected to be offset by continued global growth Expected medium to long-term growt
Slide 31: Minerals, Metals & Chemicals
Minerals, Metals & Chemicals For personal use only New developments in the chemicals industry provided growth opportunities ► Global chemicals market providing ► Integrated Improve offering growth as opportunities for growth customers focus on efficiency ► Softening of investment in major capital im
Slide 32: Minerals, Metals & Chemicals sector outlook
Minerals, Metals & Chemicals For personal use only Sector outlook Continue to globalize Minerals, Metals & Chemicals capability Opportunity in asset optimisation, through Improve services Project activity predominantly in early phase study work Chemical sector growth remains a priority, part
Slide 33: Infrastructure & Environment
Infrastructure & Environment For personal use only Enabling capabilities that differentiate our business Downturn of the Australian mining sector Expanded geographic presence in the and reduced government spend in South delivery of Restoration services Africa impacted the I&E business through gl
Slide 34: Infrastructure & Environment sector outlook
Infrastructure & Environment Sector outlook For personal use only Significant opportunities in an integrated offering for the delivery of environmental responsibilities, community engagement and water management across the asset life in unconventional oil and gas Resource infrastructure has a ro
Slide 35: Power
Power For personal use only Further growth in nuclear new builds and efficient power generation ► Increased material costs on a substantially ► Continued building new nuclear and complete lump sum procurement project in conventional generation and networks Brazil and cancellation of key projects in
Slide 36: Power sector outlook
Power For personal use only Sector outlook Continue to strengthen our relationships with resource and industry customers, leveraging our other customer sector groups New build opportunities in Latin America, South East Asia, Sub Saharan Africa and the Middle East Focus on nuclear new build in
Slide 37: Summary
Summary ► Aggregated revenue growth across the ► Strong performance and growth in For personal use only sector groups despite challenging Hydrocarbons and chemicals sectors conditions in key markets ► Demand for our Improve offering ► Increased level of construction and remained strong fabrication a
Slide 38: Group outlook
Group outlook For personal use only Commenting on the outlook for the WorleyParsons Group, Mr Andrew Wood said: “While recognizing the uncertainties in world markets, we expect our geographic and sector diversification to provide a solid foundation to deliver increased earnings in FY2014. “We have a
Slide 39: Appendices
For personal use only Appendices
Slide 40: FY2013 Significant Awards
For personal use only FY2013 Significant Awards
Slide 41: Hydrocarbons
Hydrocarbons For personal use only Key project awards Key Improve awards and renewals Chevron - Rosebank front end ► CNOOC and Shell Petrochemicals engineering design (FEED), United Company Limited - site Improve Kingdom engineering service contract, China Shell - general engineering and project
Slide 42: Minerals, Metals & Chemicals
Minerals, Metals & Chemicals For personal use only Key project awards Key Improve awards and renewals BASF - FEED for greenfield resin plant BHP Billiton – Minera Escondida and NPG plant, China Improve contract, Chile Companhia Siderúrgica Nacional - Tasnee - waste heat boiler solution, Casa
Slide 43: Infrastructure & Environment
Infrastructure & Environment For personal use only Key project awards Key Improve awards and renewals Anadarko Mozambique LNG - Master BP - Remediation Management Atlas integrated resource infrastructure Contract, Global planning, Mozambique BP - Remediation Management Vale - Nacala Rail PMC
Slide 44: Power
Power For personal use only Key project awards Key Improve awards and renewals Polska Grupa Energetyczna - site ► Bruce Power - sustaining capital characterization and licensing / projects at nuclear facilities, Canada permitting services for the nuclear ► US Government, Department of power plan d
Slide 45: Supplementary information to full year results 2013
For personal use only Supplementary information to full year results 2013
Slide 46: Segment margins
For personal use only 46 Segment margins
Slide 47: CSG restructure
CSG restructure For personal use only Aggregated Revenue EBIT Customer Project Var $ Var % Customer Project Var $ Var % Hydrocarbons 5,433.8 5,344.3 89.5 2% 648.9 633.7 15.2 2% Minerals, Metals & Chemicals 1,107.7 937.6 170.1 18% 153.9 135.5 18.4 14% Infrastructure 1,085.5 1,345.1 (259.6) (19%) 101.
Slide 48: FX translation impact
FX translation impact 105.0 For personal use only 100.0 95.0 90.0 85.0 Jul-12 Oct-12 Jan-13 Mar-13 Apr-13 Aug-12 Sep-12 Nov-12 Dec-12 Feb-13 May-13 Jun-13 USD GBP CAD Currency Annualized AUD $m NPAT Currency FY12 FY13 FY∆ translation impact of 1c ∆ AUD:USD 0.8 AUD:USD 1.0324 1.0274 -0.5% AUD:GBP 0.5
Slide 49: Dividends, amortisation and tax
Dividends, amortisation and tax Dividend History For personal use only FY09 FY10 FY11* FY12* FY13 Interim dividend (cps) 38.0 35.5 36.0 40.0 41.5 Franked % 76% 100% 100% 79% 100% $m total 92.2 87.0 88.6 98.3 102.4 Final dividend (cps) 55.0 40.0 50.0 51.0 51.0 Franked % 100% 47% 26% 61% 0% $m total 1
Slide 50: Contractual acronyms
Contractual acronyms For personal use only CY – Calendar year 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 Ser