Post on 24-Mar-2018
AMEC plcAnnual General Meeting 2011g5 May 2011
Important information
Certain statements in this presentation are forward looking statements. By their nature forward looking statements involve a number of risksBy their nature, forward looking statements involve a number of risks, uncertainties or assumptions that could cause actual results or events to differ materially from those expressed or implied by the forward looking statements. These risks, uncertainties or assumptions could adversely affect the outcome and financial effects of the plans and
t d ib d h i F d l ki t t t t i d i thievents described herein. Forward looking statements contained in this presentation regarding past trends or activities should not be taken as representation that such trends or activities will continue in the future. You should not place undue reliance on forward looking statements, which apply only as of the date of this presentation.pp y y p
This presentation does not constitute or form part of any offer or invitation to sell, or any solicitation of any offer to purchase any shares in the Company, nor shall it or any part of it or the fact of its distribution form the basis of, or be relied on in connection with, any contract or commitment or investment decisions relating thereto, nor does it constitute a recommendation regarding the shares of the Company.
P f b li d id f
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Past performance cannot be relied upon as a guide to future performance.
Financial highlightsStrong 2010 performanceSt o g 0 0 pe o a ce
2009£ million 2010
Revenue 2,951 2,539 +16%
EBITA* 272 208 +30%
O ti h fl ** 227 266 15% Operating cash flow** 227 266 -15%
Profit before tax* 280 216 +30%
Earnings per share*** 62.5p 46.9p +33%
Dividend per share 26.5p 17.7p +50%
Employee numbers 21,907 20,762 +6% Order book 3 1bn 3 2bn -1%Order book 3.1bn 3.2bn -1%
9.2% EBITA margin – up 100 bps
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* Before amortisation but including joint venture profit before tax** Cash generated from operations before exceptional items and discontinued operations, legacy settlements and pension payments in excess of amounts recognised
in the income statement, and including dividends received from joint ventures*** Diluted for continuing operations, before amortisation and exceptional items
9.2% EBITA margin up 100 bps
StrategyFinancials PeopleCustomers Growth One AMEC
Delivering Vision 2015Strategy
Focused on delivering similar high- Revenue by sector (2010)
Strategy
value services, across the asset life cycle, in select core sectors
Services: consulting, engineering,
Revenue by sector (2010)Oil & GasMinerals & MetalsClean EnergyEnvironmental & Water
Government services: 6%Transport/Infrastructure: 3%Industrial/Commercial: 3%Water/Municipal: 3%g, g g,
project management
Sectors: oil & gas, minerals & metals, clean energy, environment & water
Oil & Gas: 24%
Transmission & Distribution: 4%
gy,
Well positioned and growing in high-growth sectors Renewables /
Bioprocess: 9%
Power: 8%
Unconventional Oil & Gas: 20%Minerals &
Metals: 11%
Nuclear*: 9%
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Delivering services across high-growth sectors
StrategyFinancials PeopleCustomers Growth One AMEC
* Does not include the ‘equity accounted’ Sellafield decommissioning contract
Delivering Vision 2015Well positioned in high-growth sectors
Oil & Gas
Well positioned in high growth sectors
AMEC’s 11 core sectors*Clean Energy
Oil demand forecast to increase from 84 mb/d (2009) to 99 mb/d (2035) which in turn requires 9bbl/yr of new discoveries**
4. Nuclear (5-7%)5 Renewables/bioprocess (8-10%)1. Oil & Gas (8-10%)
Worldwide electricity production forecast to increase from 2,731 TWh (2008) to 4,900TWh (2015)**
5. Renewables/bioprocess (8-10%)6. Power (3-5%)7. Transmission & Distribution (4-6%)
Environmental & Water
1. Oil & Gas (8 10%)2. Unconventional (5-7%)
Minerals & Metals
Increased demand for commodities following global underinvestment
Growth in environmental legislation – increasing use of brownfield sites, exploration of environmentally sensitive regions, and recognition of water issues
3. Minerals & Metals (6-8%) 8. Water/Municipal (5-6%)9 T t/I f t t (4 5%)9. Transport/Infrastructure (4-5%)10. Government services (3-5%)11. Industrial/Commercial (3-6%)
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Increased industry investment in core markets
* AMEC’s estimated growth potential in our accessible markets (CAGR 2010-2015), based on mid-cycle assumption; **IEA – NB: see interim results for further details
StrategyFinancials PeopleCustomers Growth One AMEC
Delivering Vision 2015Strengthened customer relationships
Continuing focus on building strategic
Strengthened customer relationships
Existing customersg g g
customer relationships
Existing customers
N t New customers
AMEC’s key capabilities
Technical excellenceNew customers 2010
Technical excellence
Relationship driven
Consistent delivery
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Consistent high quality service delivery
StrategyFinancials PeopleCustomers Growth One AMEC
Delivering Vision 2015Acceleration in order intake
Recently announced contracts ConocoPhillips (detailed engineering, procurement and hook-up for Judy
Acceleration in order intake
Oil & GasMi l & M t lp ( g g, p p y
and Jasmine fields, UK) BP (global onshore agreement) Maersk (modifications to Curlew FPSO, UK) Apache (2 year modification to Forties Alpha platform UK)
Minerals & MetalsClean EnergyEnvironmental & Water
Apache (2-year modification to Forties Alpha platform, UK) BG Group* (3-year services contract for all BG’s North Sea assets, UK) Eastern Star Gas* (Coal seam methane project, Australia) Crazy Horse Resources (Taysan copper gold project, Philippines) Providence Resources (Ulysses salt cavern gas storage project, UK) Compañía Minera del Pacífico S.A.*(Cerro Negro iron ore project, Chile) Ivanhoe (Oyu Tolgoi copper gold underground mine, Mongolia) National Grid (Carbon capture and storage project Longannet UK) National Grid (Carbon capture and storage project Longannet, UK) INEOSBio (EPC services for commercial scale bio ethanol facility, US) AFCEE (Air Force LEED renovation) Northumbrian Water (renewal of 10-year framework agreement, UK)
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Order intake up >25% since 2009* Announced Feb 2011
StrategyFinancials PeopleCustomers Growth One AMEC
Delivering Vision 2015Investing in peopleInvesting in people
Employee strategy underpins consistent, high p y gy p , gquality customer service
Attract best talent
E i ith t l d Equip with tools and processes
Develop the right skills and experience
Retain the best peoplep p
Increasingly important as industry investment drives up demand for professional engineers, project managers and consultantsmanagers and consultants
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Attract, develop, retain the best people
StrategyFinancials PeopleCustomers Growth One AMEC
Delivering Vision 2015Enhancing capabilityEnhancing capability
Building and enhancing capabilities via organic growth Oil & GasMi l & M t l
Strengthened leading position in UK nuclear
− Tier 1 EDF nuclear new build
Minerals & MetalsClean EnergyEnvironmental & Water
Market entry to underground mining
− Oyu Tolgoi (Mongolia) - leveraging surface mining reputation
And via acquisition
Subsea engineering - S2V Consulting: the first of a series of ‘subsea’ bolt-on acquisitions
Water - Entec Holdings Ltd: added 700 employees in the UK
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Growth – organic and via strategic acquisitions
StrategyFinancials PeopleCustomers Growth One AMEC
Delivering Vision 2015Expanding geographic footprint
Continued growth in established
Expanding geographic footprint
gmarkets, particularly
Europe
North America
Geographic expansionCurrent locationsGrowth regionsEstablished markets
North America
Upsizing in select regionsp g g
Australasia
South America
Middle East
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Focused on growth regions and established markets
StrategyFinancials PeopleCustomers Growth One AMEC
Delivering Vision 2015Expanded geographic footprint - AustraliaExpanded geographic footprint Australia
GRD Minproc • Engineering and project development
‘Aquenta Consulting’ (Currie & Brown (Aus); BurmanGriffiths) • Cost contract & commercial
2010 AMEC employees c. 1,300 (incl. 300 in JV)
• Mining: copper, gold, uranium, nickel and iron
• Customers: PanAust Ltd, Gindalbie Metals, Citic Pacific Mining / MCC
• Locations: Perth (+Africa, South
• Cost, contract & commercial management consultancy
• Oil & gas, mining, utilities, transport• Customers: BHP Billiton Minerva, BP,
Chevron, ExxonMobil, PNG, Rio Tinto, Woodside
(incl. 300 in JV)
(America)
S2V Consulting
Woodside • Locations: Brisbane, Adelaide, Gold
Coast, Melbourne, Perth, SydneyPerth
Gold Coast
Melbourne
Adelaide
Brisbane
Sydney
S2V Consulting• Front-end consulting: field
development, conceptual screening, project assurance services
• O&G, subsea engineering, pipelines
Zektingroup*• Specialist engineering consultancy• Oil & gas, CSM, bioprocess• Customers: Eastern Star Gas, ALG
• Customers: Woodside, QGC, INPEX, Santos, Chevron, Apache, ENI, OMV
• Locations: Perth
Customers: Eastern Star Gas, ALG Energy, QGC, Anglo Coal (Aus), BOC Gases
• Locations: Melbourne, Brisbane
Oil & GasMinerals & MetalsClean EnergyEnvironmental & Water
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New capabilities, sectors, customers – strengthened position*Acquired February 2011
StrategyFinancials PeopleCustomers Growth One AMEC
Delivering Vision 2015One AMECOne AMEC
One AMEC Customer-focused
Operational management structure
Skilled people
One AMEC
One AMEC
Integrated activity
Tools & processes
Enhanced efficiency
Cost effective
St t f d
Enhanced capabilities
Customer relationships
Geographic footprint
Integrated structure Strategy-focused
Operational Excellence
Step Change
S f f
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Secure platform for continued growth
StrategyFinancials PeopleCustomers Growth One AMEC
Delivering Vision 2015
>100p EPS*EPS
Capital Structure More efficient capital structure Increased acquisitions Shareholder distributions
Capital Structure
Enhancing our capabilities Enhancing our geographic footprint Integrated approach
Focus on growth
Strengthening our people Harmonising tools and processes
Employees
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Customers, people, growth – One AMEC
* Diluted EPS 2015
Introduction Financials PeopleCustomers Growth One AMEC
AMEC plcAnnual General Meeting 2011gQuestions
AMEC share price performance Sept 2006 – April 2011Sept 2006 April 2011
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AMEC performance vs FTSE 100 and Sector