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FULL YEAR 2014 RESLUTS – WorleyParsons Limited

WorleyParsons Limited · Aug 27, 2014 · 38 slides

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Slides

  1. FULL YEAR 2014 RESLUTS – WorleyParsons Limited – slide 1
    Full year results 2014 Andrew Wood
  2. FULL YEAR 2014 RESLUTS – WorleyParsons Limited – slide 2
    Overview FY2014 Strong operating cash flow Earnings in line with guidance Business reorganization completed Further reduction of 1,200 overhead roles Strong operating cash flow result Final dividend of 51.0 cents per share Total…
  3. FULL YEAR 2014 RESLUTS – WorleyParsons Limited – slide 3
    Financial snapshot Aggregated revenue1 of 7,364m, down 3%2 Underlying NPAT 3 of 263m, down 18%2 Improvement in Group EBIT margin in second half Operating cash flow up 24% to 550m Costs associated with restructuring amounted to…
  4. FULL YEAR 2014 RESLUTS – WorleyParsons Limited – slide 4
    OneWayTM to Zero Harm Performance remains good Total Recordable Case Frequency Rate (TRCFR) for FY2014 was 0.10 (FY2013: 0.13) We continue a number of programs across the Group including: Board and Executive Committee structured HSE…
  5. FULL YEAR 2014 RESLUTS – WorleyParsons Limited – slide 5
    Our Group Strategy To enhance and leverage our broad and deep technical capabilities and our diverse geographic presence 5
  6. FULL YEAR 2014 RESLUTS – WorleyParsons Limited – slide 6
    Horizon 1 Getting better at what we do 6
  7. FULL YEAR 2014 RESLUTS – WorleyParsons Limited – slide 7
    Horizon 2 Growth from the core Hydrocarbons Australian market contracted across FY2014 as the wave of LNG projects and the associated upstream developments approached start-up phase The next wave of global LNG capacity in North…
  8. FULL YEAR 2014 RESLUTS – WorleyParsons Limited – slide 8
    Horizon 2 Growth from the core Minerals, Metals & Chemicals Minerals and metals short term market remains soft with improving outlook for study activities Continued growth in chemicals in US, Middle East and China Fertilizer market…
  9. FULL YEAR 2014 RESLUTS – WorleyParsons Limited – slide 9
    Horizon 2 Growth from the core Infrastructure Resource infrastructure is in decline Cancellation of a nuclear project, but improving outlook Positive outlook in North America for water and environment services to unconventional oil…
  10. FULL YEAR 2014 RESLUTS – WorleyParsons Limited – slide 10
    Horizon 3 Our new ventures - Digital Enterprise and Advisian 10
  11. FULL YEAR 2014 RESLUTS – WorleyParsons Limited – slide 11
    Full year results 2014 Simon Holt
  12. FULL YEAR 2014 RESLUTS – WorleyParsons Limited – slide 12
    Financial Profile Strong operating cash flow FY2014 FY2013 vs. FY2013 Aggregated revenue1 (m) 7,364 7,627 (3)% Underlying EBIT2 (m) 452 527 (14)% Underlying EBIT margin 6.1% 6.9% (0.8)% Underlying Net Profit After Tax2 (m) 263…
  13. FULL YEAR 2014 RESLUTS – WorleyParsons Limited – slide 13
    Total revenue by region North America region grows, Australia in decline FY2014 Total Revenue 9,583m FY2013 Total Revenue 8,832m SSA ASCHI SSA 2% 5% 3% ASCHI 5% MENA ANZ LAM MENA 15% 12% 5% 14% ANZ LAM 17% 3% EUR 9% EUR 12%…
  14. FULL YEAR 2014 RESLUTS – WorleyParsons Limited – slide 14
    Aggregated revenue by region 29% 29% 23% 17% 15% 15% 15% 2,158 2,088 10% 1,737 7% 7% 7% 8% 1,248 1,123 1,149 1,096 5% 5% 806 4% 4% 564 502 531 591 394 325 288 391 FY2013 (m) FY2014 (m) % of total aggregated revenue EUR…
  15. FULL YEAR 2014 RESLUTS – WorleyParsons Limited – slide 15
    Underlying Operating EBIT 14.6% 8.9% 9.0% 12.6% 13.7% 13.0% 11.9% 15.7% 254 19.5% 22.1% 193 188 157 11.5% 146 137 150 110 111 126 7.3% 3.8% 0.9% 6.0% 61 2.8% 15 3 43 8 24 FY2013 (m) FY2014 (m) % EBIT margin…
  16. FULL YEAR 2014 RESLUTS – WorleyParsons Limited – slide 16
    CSG segment EBIT 904 822 654 627 143 131 107 64 Hydrocarbons Minerals, Metals & Infrastructure Total Chemicals FY2013 (m) FY2014 (m) 16
  17. FULL YEAR 2014 RESLUTS – WorleyParsons Limited – slide 17
    Underlying NPAT (m) Reflects changes in contribution to EBIT at constant currency (69.7) (18.4) 27.7 (47.0) 30.3 (6.0) 5.0 19.4 322.1 263.4 17
  18. FULL YEAR 2014 RESLUTS – WorleyParsons Limited – slide 18
    Hydrocarbons FY2014 FY2013 Segment margin holding up Aggregated revenue m 5,371.5 5,492.9 Project activity declining in Professional services m 4,255.1 4,393.1 ANZ, ASCHI and MENA Construction and fabrication m 888.7 847.7 USAC &…
  19. FULL YEAR 2014 RESLUTS – WorleyParsons Limited – slide 19
    Minerals, Metals & Chemicals FY2014 FY2013 2H margin improvement Aggregated revenue m 1,065.9 1,096.5 ANZ downturn due to reduced Professional services m 1,042.4 1,085.2 project activity TWP adding to SSA result Procurement revenue…
  20. FULL YEAR 2014 RESLUTS – WorleyParsons Limited – slide 20
    Infrastructure FY2014 FY2013 ANZ includes FY2013 non- Aggregated revenue m 926.3 1,037.6 recurring benefit Professional services m 869.3 967.8 Cancellation of nuclear Procurement revenue with margin m 52.4 57.1 project and general…
  21. FULL YEAR 2014 RESLUTS – WorleyParsons Limited – slide 21
    Margin profile Group Underlying EBIT Margin % 8.6% Highest second half margin for 8.0% 7.2% 6.9% three years 6.1% 9.0% Full year margin down 0.8% 9.4% 7.1% 7.3% Margins holding up in 7.6% Hydrocarbons 8.2% 7.3% Construction…
  22. FULL YEAR 2014 RESLUTS – WorleyParsons Limited – slide 22
    Cash flow Strong cash flow generation m FY2014 FY2013 Underlying EBIT 452 527 Depreciation and amortization 110 102 Interest and tax paid (140) (192) Working capital/other 128 7 Net cash inflow from operating activities 550…
  23. FULL YEAR 2014 RESLUTS – WorleyParsons Limited – slide 23
    Gearing metrics Gearing below target range FY2014 FY2013 Gearing ratio % 20% 25% Facility utilization1 % 50% 56% Average cost of debt % 5.4% 5.5% Average maturity (years) 4.2 3.8 Interest cover1 (times) 8.3x 10.6x Net debt m…
  24. FULL YEAR 2014 RESLUTS – WorleyParsons Limited – slide 24
    Liquidity Financial capacity to support growth vs. Repaid US140.5m Liquidity summary m FY2014 FY2013 FY2013 tranche Loan, finance lease & 1,783 1,912 (7)% overdraft facilities US520m US Bank Less: facilities utilized* (897) (1,062)…
  25. FULL YEAR 2014 RESLUTS – WorleyParsons Limited – slide 25
    Full year results 2014 Andrew Wood
  26. FULL YEAR 2014 RESLUTS – WorleyParsons Limited – slide 26
    Summary Responding to market conditions and our customers What we promised What we delivered Underlying NPAT of Underlying NPAT of 260m 300m net of 263.4m restructuring costs Reorganization charge Reorganization charge of estimated…
  27. FULL YEAR 2014 RESLUTS – WorleyParsons Limited – slide 27
    Group outlook Commenting on the outlook for the WorleyParsons Group, Mr Andrew Wood said: We have taken decisive action to improve margins and ensure the business is responding to market conditions and our customers needs. We are…
  28. FULL YEAR 2014 RESLUTS – WorleyParsons Limited – slide 28
    Q&A Full year results 2014
  29. FULL YEAR 2014 RESLUTS – WorleyParsons Limited – slide 29
    Supplementary information Full year results 2014
  30. FULL YEAR 2014 RESLUTS – WorleyParsons Limited – slide 30
    Reconciliation m FY2014 FY2013 Revenue and other income 9,582.5 8,831.5 Procurement services at nil margin (2,726.1) (1,747.7) Share of revenue from associates 524.0 549.2 Net gain on revaluation of investments (11.4) -…
  31. FULL YEAR 2014 RESLUTS – WorleyParsons Limited – slide 31
    Aggregated revenue by type Aggregated revenue down, revenue mix stable m FY2014 FY2013 vs. FY2013 Aggregated revenue 7,363.7 7,627.0 (3)% Professional services 6,166.8 6,446.1 (4)% Construction and fabrication 888.7 847.7 5%…
  32. FULL YEAR 2014 RESLUTS – WorleyParsons Limited – slide 32
    Reconciliation m FY2014 FY2013 EBIT 428.2 527.0 Less net gain on revaluation of investments previously accounted for as equity accounted associates (11.4) - Plus restructuring costs 35.4 - Underlying EBIT 452.2 527.0 NPAT…
  33. FULL YEAR 2014 RESLUTS – WorleyParsons Limited – slide 33
    Dividend history Final dividend of 51.0 cents per share FY2010 FY2011 FY2012 FY2013 FY2014 Interim dividend (cps) 35.5 36.0 40.0 41.5 34.0 Franked % 100% 100% 79% 100% 25% m total 87.0 88.6 98.3 102.4 83.9 Final dividend (cps) 40.0…
  34. FULL YEAR 2014 RESLUTS – WorleyParsons Limited – slide 34
    FX translation impact Movement in major currencies Group EBIT FX Impact Since FY2010 110.0 FY2010 FY2011 FY2012 FY2013 FY2014 45 105.0 35 25 100.0 41 15 5 95.0 4 Am -5 -18 -15 -32 90.0 -41 -25 85.0 -35 -45 80.0 -55…
  35. FULL YEAR 2014 RESLUTS – WorleyParsons Limited – slide 35
    Strength in diversification 35,600 157 46 people offices countries 5.2m workshare hours 35
  36. FULL YEAR 2014 RESLUTS – WorleyParsons Limited – slide 36
    Diversification in earnings Top 10 customers deliver 33% of the gross margin Top 10 projects deliver 15% of the gross margin Top 10 locations deliver 71% of the operating EBIT 36
  37. FULL YEAR 2014 RESLUTS – WorleyParsons Limited – slide 37
    Significant awards 42 23 90 25 37
  38. FULL YEAR 2014 RESLUTS – WorleyParsons Limited – slide 38
    Contractual acronyms 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…

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