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PRELIMINARY RESULTS 2010 – Amec Plc

Amec Plc · Mar 3, 2011 · 43 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. PRELIMINARY RESULTS 2010 – Amec Plc – slide 1
    AMEC plc Preliminary results 2010 3 March 2011
  2. PRELIMINARY RESULTS 2010 – Amec Plc – slide 2
    Important information Certain statements in this presentation are forward looking statements. By their nature, forward looking statements involve a number of risks, uncertainties or assumptions that could cause actual results or events…
  3. PRELIMINARY RESULTS 2010 – Amec Plc – slide 3
    AMEC plc Preliminary results 2010 Samir Brikho, Chief Executive
  4. PRELIMINARY RESULTS 2010 – Amec Plc – slide 4
    Agenda Introduction Samir Brikho, Chief Executive Financial performance Ian McHoul, Chief Financial Officer Delivering Vision 2015 Financials Strategy Customers People Growth One AMEC 4
  5. PRELIMINARY RESULTS 2010 – Amec Plc – slide 5
    Strong 2010 performance Strong operating performance Organic growth in all three divisions EBITA margin 9.2%, up 100 basis points Order book strong Order intake up 25%+ Delivering Vision 2015 Customers, people, growth Dividend…
  6. PRELIMINARY RESULTS 2010 – Amec Plc – slide 6
    AMEC plc Preliminary results 2010 Ian McHoul, Chief Financial Officer New photos
  7. PRELIMINARY RESULTS 2010 – Amec Plc – slide 7
    Highlights million 2010 2009 Revenue 2,951 2,539 +16% EBITA* 272 208 +30% 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…
  8. PRELIMINARY RESULTS 2010 – Amec Plc – slide 8
    Natural Resources million 2010 2009 Revenue 1,520.5 1,300.9 +17% EBITA 174.7 154.3 +13% EBITA margin 11.5% 11.9% -40bps Average employees* 9,729 9,577 +2% Order book 1.81bn 1.71bn +6% 2010 Capex/Opex split: Revenue 74%/26%…
  9. PRELIMINARY RESULTS 2010 – Amec Plc – slide 9
    Natural Resources Revenue growth (%) EBITA development (m) 6% +17% 9 -2 6% 11 1,521m +17% 175 5% 3 1,301m 154 2009 Net Forex** Organic 2010 2009 Net Forex** Organic Organic 2010 acquisitions* acquisitions* revenue…
  10. PRELIMINARY RESULTS 2010 – Amec Plc – slide 10
    Power & Process million 2010 2009 Revenue 884.4 788.1 +12% EBITA 75.3 55.4 +36% EBITA margin 8.5% 7.0% +150bps Average employees* 7,507 7,061 +6% Order book 1.05bn 1.17bn -10% 2010 Capex/Opex split: Revenue 40%/60% 34%/66%…
  11. PRELIMINARY RESULTS 2010 – Amec Plc – slide 11
    Power & Process Revenue growth (%) EBITA development (m) +12% 13 10% 5 2 75 884m 55 2% 788m 2009 Acquisitions* Forex** Organic 2010 2009 Acquisitions* Forex** Organic Organic 2010 revenue revenue margin Focus…
  12. PRELIMINARY RESULTS 2010 – Amec Plc – slide 12
    Earth & Environmental million 2010 2009 Revenue 592.6 470.8 +26% EBITA 54.7 36.5 +50% EBITA margin 9.2% 7.8% +140bps Average employees* 4,457 3,713 +20% Order book 0.27bn 0.29bn -7% Continued strengthening of financial…
  13. PRELIMINARY RESULTS 2010 – Amec Plc – slide 13
    Earth & Environmental Revenue growth (%) EBITA development (m) 4 14% +26% 5 8% 4% 3 6 55 593m 471m 37 2009 Acquisitions* Forex** Organic 2010 2009 Acquisitions* Forex** Organic Organic 2010 revenue revenue margin…
  14. PRELIMINARY RESULTS 2010 – Amec Plc – slide 14
    Tax 2010 2009 Underlying rate1 30.2% 31.6% P&L charge2 25.9% 27.0%3 Cash paid 37.9m 70.5m Underlying rate falling Canadian and UK corporate tax rates reducing Business mix Charge reducing Active management P&L charge…
  15. PRELIMINARY RESULTS 2010 – Amec Plc – slide 15
    Changes to reporting allocations in 2011 From 2011 the allocation of certain items will be changed UK Asset Support business (2010 EBITA c. 7m) to be transferred from Power & Process to Natural Resources Certain financing items…
  16. PRELIMINARY RESULTS 2010 – Amec Plc – slide 16
    Operating cash flow 2009 million 2010 (re-stated)* EBITA 272 208 JV profit before taxation (21) (21) Statutory PBIT 251 187 JV dividend received 17 9 Non-cash items** 27 25 295 221 Working capital (68) 45 Operating cash flow***…
  17. PRELIMINARY RESULTS 2010 – Amec Plc – slide 17
    Operating cash flow conversion Aggregate cash conversion over last 4 years 90% million 300 250 200 150 100 50 0 2007 2008 2009 2010 EBITA* Operating cash flow** Targeting average operating cash conversion of 90% *…
  18. PRELIMINARY RESULTS 2010 – Amec Plc – slide 18
    Cash flow 2009 million 2010 (re-stated)* Operating cash flow 227 266 Acquisitions and disposals** (111) (140) Interest and tax (32) (61) Dividends and share acquisitions (69) (65) Other*** (38) (16) Net cash flow (23) (16)…
  19. PRELIMINARY RESULTS 2010 – Amec Plc – slide 19
    UK pension schemes Accounting status* Surplus at 31 December 2010 63 million (Dec 2009: 27 million) Financing income million Est 2011 2010 2009 Charge on liabilities (72) (76) (64) Return on assets 79 82 69 Contribution to PBT…
  20. PRELIMINARY RESULTS 2010 – Amec Plc – slide 20
    Dividend Proposed dividend 26.5p, up 50% Going forward Progressive policy Dividend cover in the range 2 to 2x Interim 1/3; final 2/3 Reflects Improving quality of earnings and cash flow De-risked business model Business…
  21. PRELIMINARY RESULTS 2010 – Amec Plc – slide 21
    Capital structure Strong balance sheet Year end cash 740 million Intention to move to a more efficient capital structure Preference to use balance sheet to grow the business Will consider additional distributions Strengthening…
  22. PRELIMINARY RESULTS 2010 – Amec Plc – slide 22
    Outlook Focus on growth Core markets improving Customer relationships New acquisitions Some headwinds Margin maintained at c. 9% Use of balance sheet Acquisitions the priority strengthening pipeline Focus on growth…
  23. PRELIMINARY RESULTS 2010 – Amec Plc – slide 23
    AMEC plc Preliminary results 2010 Samir Brikho, Chief Executive
  24. PRELIMINARY RESULTS 2010 – Amec Plc – slide 24
    Delivering Vision 2015 Strategy Focused on delivering similar high- Revenue by sector (2010) value services, across the asset life Oil & Gas Government services: 6% cycle, in select core sectors Transport/Infrastructure: 3%…
  25. PRELIMINARY RESULTS 2010 – Amec Plc – slide 25
    Delivering Vision 2015 Well positioned in high-growth sectors AMECs 11 core sectors* Oil & Gas Clean Energy Oil demand forecast to increase from 84 mb/d (2009) Worldwide electricity production forecast to increase to 99 mb/d (2035)…
  26. PRELIMINARY RESULTS 2010 – Amec Plc – slide 26
    Delivering Vision 2015 Strengthened customer relationships Existing customers Continuing focus on building strategic customer relationships Existing customers New customers AMECs key capabilities New customers 2010 Technical…
  27. PRELIMINARY RESULTS 2010 – Amec Plc – slide 27
    Delivering Vision 2015 Acceleration in order intake Recently announced contracts Oil & Gas ConocoPhillips (detailed engineering, procurement and hook-up for Judy Minerals & Metals and Jasmine fields, UK) Clean Energy BP (global…
  28. PRELIMINARY RESULTS 2010 – Amec Plc – slide 28
    Delivering Vision 2015 Investing in people Employee strategy underpins consistent, high quality customer service Attract best talent Equip with tools and processes Develop the right skills and experience Retain the best people…
  29. PRELIMINARY RESULTS 2010 – Amec Plc – slide 29
    Delivering Vision 2015 People - MENA update AMEC in MENA Long history and track record Customer relationships Differentiated services Update on Libya Committed to clients and safety of employees in region All ex-pat personnel…
  30. PRELIMINARY RESULTS 2010 – Amec Plc – slide 30
    Delivering Vision 2015 Enhancing capability Building and enhancing capabilities via organic growth Oil & Gas Minerals & Metals Clean Energy Strengthened leading position in UK nuclear Environmental & Water Tier 1 EDF nuclear new…
  31. PRELIMINARY RESULTS 2010 – Amec Plc – slide 31
    Delivering Vision 2015 Expanding geographic footprint Continued growth in established markets, particularly Geographic expansion Current locations Europe Growth regions Established markets North America Upsizing in select…
  32. PRELIMINARY RESULTS 2010 – Amec Plc – slide 32
    Delivering Vision 2015 Expanded geographic footprint - Australia Aquenta Consulting GRD Minproc 2010 AMEC employees c. 1,300 (Currie & Brown (Aus); BurmanGriffiths) Engineering and project development (incl. 300 in JV) Cost,…
  33. PRELIMINARY RESULTS 2010 – Amec Plc – slide 33
    Delivering Vision 2015 One AMEC One AMEC Customer-focused One AMEC Operational management structure Skilled people Geographic Integrated activity Enhanced Customer capabilities relationships footprint Tools & processes Enhanced…
  34. PRELIMINARY RESULTS 2010 – Amec Plc – slide 34
    Delivering Vision 2015 100p EPS* Capital Structure More efficient capital structure Increased acquisitions Shareholder distributions Focus on growth Enhancing our capabilities Enhancing our geographic footprint…
  35. PRELIMINARY RESULTS 2010 – Amec Plc – slide 35
    AMEC plc Preliminary results 2010 Questions
  36. PRELIMINARY RESULTS 2010 – Amec Plc – slide 36
    AMEC plc Preliminary results 2010 Supplementary information
  37. PRELIMINARY RESULTS 2010 – Amec Plc – slide 37
    versus North American currencies 2010 2009 % Income statement Cdn 1.60 1.78 -10% US 1.54 1.55 -1% Balance sheet Cdn 1.56 1.69 -8% US 1.57 1.61 -2% Financials Strategy Customers People Growth One AMEC 37
  38. PRELIMINARY RESULTS 2010 – Amec Plc – slide 38
    Profit reconciliation(i) Per presentation (m) Per consolidated income statement (m) Natural Resources 174.7 Profit before net financing income 251.3 Power & Process 75.3 Net financing income 7.9 Earth & Environmental 54.7 Share of…
  39. PRELIMINARY RESULTS 2010 – Amec Plc – slide 39
    Order book billion Dec 10 Jun 10 Dec 09 Natural Resources 1.81 1.81 1.71 Power & Process 1.05 1.36 1.17 Earth & Environmental 0.27 0.31 0.29 3.13 3.48 3.17 Financials Strategy Customers People Growth One AMEC 39
  40. PRELIMINARY RESULTS 2010 – Amec Plc – slide 40
    Tax rate* Group JVs Total million companies EBITA per presentation 251.3 20.5 271.8 Net financing income 7.9 - 7.9 259.2 20.5 279.7 Tax (65.2) (7.2) (72.4) PAT per consolidated 194.0 13.3 207.3 Tax rate 25.2% 35.1% 25.9% *…
  41. PRELIMINARY RESULTS 2010 – Amec Plc – slide 41
    Changes to reporting allocations From 2011 the allocation of certain items on the income statement will be changed UK Asset Support business has transferred from Power & Process to Natural Resources and will be reported accordingly…
  42. PRELIMINARY RESULTS 2010 – Amec Plc – slide 42
    Changes to reporting allocations Impact on 2010 As reported As restated million Revenue EBITA EBITA % Revenue EBITA EBITA % Natural Resources 1,520.5 174.7 11.5% 1,602.8 178.6 11.1% Power & Process 884.4 75.3 8.5% 802.1 64.8 8.1%…
  43. PRELIMINARY RESULTS 2010 – Amec Plc – slide 43
    Changes to reporting allocations H1 2010 impact As reported As restated million Revenue EBITA EBITA % Revenue EBITA EBITA % Natural Resources 730.9 81.1 11.1% 782.5 83.9 10.7% Power & Process 448.0 31.4 7.0% 396.4 25.6 6.5% Earth &…

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