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FULL YEAR RESULTS 2014 – Amec Plc

Amec Plc · Mar 26, 2015 · 67 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. FULL YEAR RESULTS 2014 – Amec Plc – slide 1
    Full-year results 2014 26 March 2015
  2. FULL YEAR RESULTS 2014 – Amec Plc – slide 2
    Introduction 2014 performance in line with expectations Integration well under way and on track Benefits of low-risk, multi-market model with global reach evident 2014 results (m) Reported AMEC Pro Forma Revenue 3,993 3,719 5,800…
  3. FULL YEAR RESULTS 2014 – Amec Plc – slide 3
    Ian McHoul CFO Full-year results 2014 26 March 2015 4
  4. FULL YEAR RESULTS 2014 – Amec Plc – slide 4
    Basis of presentation Acquisition of Foster Wheeler AG completed 13 November 2014 Squeeze out of remaining shareholders completed 19 January 2015 Presentation includes 2014 results for standalone AMEC 2014 results for standalone…
  5. FULL YEAR RESULTS 2014 – Amec Plc – slide 5
    Statutory results Includes 52 weeks of AMEC and Foster Wheeler post 12 November 2014 million 2014 2013 Headline Revenue 3,993 3,974 - Scope revenue (1) 3,920 3,854 +2% Trading profit (2) 321 343 -6% Trading margin (3) 8.2% 8.9%…
  6. FULL YEAR RESULTS 2014 – Amec Plc – slide 6
    AMEC Standalone Full-year results 2014 26 March 2015
  7. FULL YEAR RESULTS 2014 – Amec Plc – slide 7
    AMEC standalone summary In line with expectations million 2014 2013 Headline Underlying(5) Revenue Total 3,719 3,974 -6% Scope(1) 3,669 3,854 -5% +1% Trading profit(2) 320 343 -7% -1% Trading margin(3) 8.7% 8.9% -20bps Trading…
  8. FULL YEAR RESULTS 2014 – Amec Plc – slide 8
    AMEC by business unit Underlying revenue +1% Trading margin -20bp Under- Trading Margin million Revenue Headline lying(1) margin(2) change Americas 2,072 -8% +4% 10.2% -110bp Europe 1,119 -9% -8% 9.1% +150bp Growth Regions…
  9. FULL YEAR RESULTS 2014 – Amec Plc – slide 9
    AMEC revenue by market Weaker GBP impact partially reversed in Q4 Strong Clean Energy performance offset expected headwinds in O&G/Mining million 2014 Headline Underlying(1) Oil & Gas 1,744 -13% -5% Mining 426 -14% -6% Clean…
  10. FULL YEAR RESULTS 2014 – Amec Plc – slide 10
    AMEC trading cash flow Cash conversion remains strong million 2014 2013 Cash conversion Trading profit 320 343 100% JV trading profit (19) (28) 80% 301 315 60% JV dividends received 14 8 Non-cash items(1) 12 25 40% 327 348…
  11. FULL YEAR RESULTS 2014 – Amec Plc – slide 11
    Foster Wheeler standalone Full-year results 2014 26 March 2015
  12. FULL YEAR RESULTS 2014 – Amec Plc – slide 12
    Foster Wheeler summary 12 month performance Strong revenue growth in E&C Margin decline due to phasing of contract profit recognition and higher levels of in-scope procurement million 2014 2013 Headline Underlying(3) Revenue…
  13. FULL YEAR RESULTS 2014 – Amec Plc – slide 13
    Foster Wheeler by business unit Revenue growth from E&C contract wins in 2012/13 Adverse currency impact on scope revenue of 71m 2014 2013 Scope Trading Trading Scope Trading Trading million Revenue (1) Profit (2) Margin (%)…
  14. FULL YEAR RESULTS 2014 – Amec Plc – slide 14
    Amec Foster Wheeler Pro forma 2012-14 This pro forma information is unaudited and is provided for comparative purposes only Full-year results 2014 26 March 2015
  15. FULL YEAR RESULTS 2014 – Amec Plc – slide 15
    Three year pro forma summary million 2014 2013 2012 Revenue Total 5,800 6,086 6,221 Scope(1) 5,493 5,512 5,371 Trading profit(2) 457 537 526 Trading margin(3) 8.3% 9.7% 9.8% Trading cash flow(4) 353 568 431 Cash…
  16. FULL YEAR RESULTS 2014 – Amec Plc – slide 16
    Three year trading results 2014 2013 2012 Scope Trading Trading Scope Trading Trading Scope Trading Trading million revenue profit Margin (%) Revenue profit Margin (%) revenue profit Margin (%) Americas 2,638 258 9.8% 2,521 294…
  17. FULL YEAR RESULTS 2014 – Amec Plc – slide 17
    Scope revenue by business unit Underlying scope revenue up 4% Reflects mix of services and markets million 2014 Headline Underlying(1) Americas 2,638 +5% +12% NECIS 1,541 -4% -3% AMEASE 958 +1% +7% GPG 451 -10% -9% Centre and…
  18. FULL YEAR RESULTS 2014 – Amec Plc – slide 18
    Scope revenue by market Strong performance downstream; with weaker upstream Oil & Gas Strong performance from Solar and Nuclear in Clean Energy million 2014 Headline Underlying(1) Oil & Gas 3,007 - +4% Mining 453 -14% -7% Clean…
  19. FULL YEAR RESULTS 2014 – Amec Plc – slide 19
    Americas Adverse currency impact on scope revenue of 210m 2014/13 Mix affecting margin million 14/13 LFL 2014 2013 2012 Scope Revenue Oil & Gas +13% 1,094 1,027 957 Mining -13% 339 428 519 Clean Energy +32% 785 629 638…
  20. FULL YEAR RESULTS 2014 – Amec Plc – slide 20
    Northern Europe & CIS (NECIS) Long term contracts in brownfield Oil & Gas provide support Clean Energy; nuclear growing, T&D declining million 14/13 LFL 2014 2013 2012 Scope revenue Oil & Gas -5% 1,143 1,218 870 Mining - - - -…
  21. FULL YEAR RESULTS 2014 – Amec Plc – slide 21
    Asia, Middle East, Africa & S. Europe (AMEASE) Adverse currency impact on scope revenue of 61 million 2014/13 Margin decline due to contract profit recognition and pricing pressure from customers million 14/13 LFL 2014 2013 2012…
  22. FULL YEAR RESULTS 2014 – Amec Plc – slide 22
    Global Power Group (GPG) Lumpier revenue profile Expect average margins in low teens million 14/13 LFL 2014 2013 2012 Scope revenue -9% 451 501 605 Trading profit 69 109 130 Trading margin 15.3% 21.8% 21.5% Order book (bn) 0.4…
  23. FULL YEAR RESULTS 2014 – Amec Plc – slide 23
    Balance sheet and returns Strong balance sheet December 2014 net debt of 803 million Refinance in Q2 2015 Expected investment grade rating Estimated borrowing cost of c.2.5% Blended interest cost for net debt of c.3.5% Focus…
  24. FULL YEAR RESULTS 2014 – Amec Plc – slide 24
    Modelling assumptions for 2015 Non bank interest charge c.10m Pensions, joint ventures, etc. Amortisation charge c.125m Intangible assets c.900m Asbestos balance sheet provision c.300m Net of insurance receivables Cash outflow…
  25. FULL YEAR RESULTS 2014 – Amec Plc – slide 25
    Outlook Benefits of low-risk, multi-market model Oil & Gas headwinds, downstream performing better than upstream Clean Energy and E&I continue recent positive trends Mining remains weak Benefits of integration and cost saving…
  26. FULL YEAR RESULTS 2014 – Amec Plc – slide 26
    Samir Brikho Chief Executive Full-year results 2014 26 March 2015 27
  27. FULL YEAR RESULTS 2014 – Amec Plc – slide 27
    Our priorities Control our own destiny Adapt to market conditions Be lean and efficient Increase cost savings Take full advantage of our business model Low-risk Multi-market Global reach Upgrade our business Continue…
  28. FULL YEAR RESULTS 2014 – Amec Plc – slide 28
    Our vision To be a trusted partner Deliver excellence Fully utilise our network of experts 29
  29. FULL YEAR RESULTS 2014 – Amec Plc – slide 29
    Multi market, global reach Split of 2014 pro forma scope revenues By Market By Business Unit Oil & 8% 10% upstream Gas 28% 54% 17% 47% 28% midstream 4% 22% 28% 8% downstream Americas Oil & Gas N Europe & CIS Mining…
  30. FULL YEAR RESULTS 2014 – Amec Plc – slide 30
    Benefits of diversified market model Benefits of improved footprint AMEASE Oil & Gas(1) in Oil & Gas Downstream 1bn AMEASE +17% Benefits of multi market model 2012 2013 2014 Americas renewables +25% Americas renewables(1)…
  31. FULL YEAR RESULTS 2014 – Amec Plc – slide 31
    Blue-chip customer base Major customers Long Long Term Longterm Contracts contracts Term Contracts Partners Partners NOCs Current projects Current projects Frameworks Frameworks 32
  32. FULL YEAR RESULTS 2014 – Amec Plc – slide 32
    Diverse and flexible model Split of 2014 PF revenues By contract By service 2% 5% 12% 26% 28% 31% 72% 8% 16% Reimbursable Consulting Engineering Fixed price EPCM/PMC Design & Supply Technology Project Delivery…
  33. FULL YEAR RESULTS 2014 – Amec Plc – slide 33
    Technology GoTechnology Supercritical CFBs SYDECSM delayed coking 34
  34. FULL YEAR RESULTS 2014 – Amec Plc – slide 34
    Order book reflects strength and diversity Only committed work included 7 Order book bn (1) bn (1) no major projects cancelled 6 c.30% long term contracts 5 4 upstream No project or customer represents 3 more than 10%…
  35. FULL YEAR RESULTS 2014 – Amec Plc – slide 35
    Long term growth markets Share of energy consumption Long term demand story intact Adapt to changes More gas More clean coal 2015 2020 2025 2030 2035 More renewables OECD non-OECD More non-OECD Changing mix of energy…
  36. FULL YEAR RESULTS 2014 – Amec Plc – slide 36
  37. FULL YEAR RESULTS 2014 – Amec Plc – slide 37
    Focus on 2015: markets update Conditions challenging in some Selected commodity prices markets 200 180 Discretionary capital projects are 160 being deferred or cancelled 140 120 100 Sustaining capex/opex more resilient 80 60…
  38. FULL YEAR RESULTS 2014 – Amec Plc – slide 38
    Focus for 2015: adapting to market conditions Integration Best in class leadership team Enhanced operating model Collaborating to create new opportunities Strategic customer coverage Connected experts Targeted cost savings…
  39. FULL YEAR RESULTS 2014 – Amec Plc – slide 39
    Focus for 2015: reducing our cost base Targeted cost savings increased to 125m per annum by 2017 Updated cost savings plan Cost to achieve c.150m Main initiatives Remove duplication in head office and regional management Further…
  40. FULL YEAR RESULTS 2014 – Amec Plc – slide 40
    Focus for 2015: integration update Integration principles Enable enhanced operating model Digital workspace tools rolled out Maintain proper governance Focus on key drivers to create value Delivered Safe and successful day 1 (13…
  41. FULL YEAR RESULTS 2014 – Amec Plc – slide 41
    Focus for 2015: managing our resources 2015 normal year Very Contractor flexible Contractor Volume Project driven Project Contractor Core + Project Core = Core Talent investment Efficient Central…
  42. FULL YEAR RESULTS 2014 – Amec Plc – slide 42
    Focus for 2015: reducing project costs Customers need our help 15% This is not an optional extra Reducing capital spending Whole supply chain needs to adapt 100 15% Biggest savings likely to come from 80 equipment and…
  43. FULL YEAR RESULTS 2014 – Amec Plc – slide 43
    Focus for 2015: taking the lead in UKNS Direct cost savings 1 5 Central overheads/efficiency % Reduced contractor rates Pay freeze for full-time employees 15% Better planning Lean engineering Scopus technology Standardised…
  44. FULL YEAR RESULTS 2014 – Amec Plc – slide 44
    Focus for 2015: new business development process Business In the game Short list Win development Identify Acquire Deliver Strategic priorities Track record Risk analysis Commercial discipline Market intelligence Capability…
  45. FULL YEAR RESULTS 2014 – Amec Plc – slide 45
    Focus for 2015: unlocking new opportunities Early wins Turkey: Anagold Madencilik gold mine US: West Texas renewables & gas monetisation project Tanzania: Ngualla rare earth project Canada: study work for LNG project US: FEED for…
  46. FULL YEAR RESULTS 2014 – Amec Plc – slide 46
    Focus for 2015 Optimise the integration Adopt the enhanced operating model Enhanced business development Enhanced project delivery Adapt to market conditions Deliver more cost savings 47
  47. FULL YEAR RESULTS 2014 – Amec Plc – slide 47
    Amec Foster Wheeler: a new force in.. Full project delivery From consulting to project management Add a coloured Highly skilled workforce transparent segment and Global reach caption if required. Diversified across markets,…
  48. FULL YEAR RESULTS 2014 – Amec Plc – slide 48
    Questions Full-year results 2014 26 March 2015 49
  49. FULL YEAR RESULTS 2014 – Amec Plc – slide 49
    Appendix financial information Full-year results 2014 26 March 2015 50
  50. FULL YEAR RESULTS 2014 – Amec Plc – slide 50
    Appendix versus North American currencies 2015 F(1) 2014 2013 Change (%) Income statement Cdn 1.90 1.82 1.62 +12% US 1.50 1.64 1.57 +4% Balance sheet Cdn 1.81 1.76 +3% US 1.56 1.66 -6% 1) Forecast average rates, as…
  51. FULL YEAR RESULTS 2014 – Amec Plc – slide 51
    Appendix AMEC profit reconciliation Per consol Joint(2) Per million Income statement ventures presentation Americas 207 Europe 101 Growth Regions 30 Investments Services 8 Corporate costs (26) Profit before net financing expense…
  52. FULL YEAR RESULTS 2014 – Amec Plc – slide 52
    Appendix AMEC trading margin(1) 2014 2013 Total Scope Total Scope revenue Revenue(2) revenue Revenue(2) Americas 10.0% 10.2% 10.7% 11.3% Europe 9.1% 9.1% 7.6% 7.6% Growth Regions 5.1% 5.1% 6.2% 6.2% Total(3) 8.6% 8.7% 8.6%…
  53. FULL YEAR RESULTS 2014 – Amec Plc – slide 53
    Appendix AMEC Americas million 2014 2013 Revenue Oil & Gas 568 779 Mining 348 430 Clean Energy 715 601 Environment & Infrastructure 441 437 Total 2,072 2,247 Trading profit 207 241 Trading margin Total 10.0% 11.7% Scope (1)…
  54. FULL YEAR RESULTS 2014 – Amec Plc – slide 54
    Appendix AMEC Europe million 2014 2013 Revenue Oil & Gas 729 842 Mining 1 1 Clean Energy 344 336 Environment & Infrastructure 45 48 Total 1,119 1,227 Trading profit 101 93 Trading margin 9.1% 7.6% Average employees(1) 9,988…
  55. FULL YEAR RESULTS 2014 – Amec Plc – slide 55
    Appendix AMEC Growth Regions million 2014 2013 Revenue Oil & Gas 447 376 Mining 77 62 Clean Energy 3 19 Environment & Infrastructure 63 79 Total 590 536 Trading profit 30 33 Trading margin 5.1% 6.2% Average employees (1)…
  56. FULL YEAR RESULTS 2014 – Amec Plc – slide 56
    Appendix AMEC cash flow million 2014 2013 Operating cash flow 269 341 Acquisitions and disposals(1) (1,107) (53) Interest and tax (55) (54) Dividends (124) (108) Share purchases (net) 7 (40) Exceptional items(2) (53) (21)…
  57. FULL YEAR RESULTS 2014 – Amec Plc – slide 57
    Appendix AMEC amortisation and exceptional items million 2014 2013 Continuing operations Amortisation(1) (38) (47) Transaction and integration costs (54) (4) Exceptional items(2) (22) (21) (114) (72) Tax on amortisation and…
  58. FULL YEAR RESULTS 2014 – Amec Plc – slide 58
    Appendix Amec Foster Wheeler income statement reconciliation million AMEC FW post 2014 as 2013 standalone acquisition reported Revenue 3,719 274 3,993 3,974 Cost of sales (3,225) (250) (3,475) (3,431) Gross profit 494 24 518 543…
  59. FULL YEAR RESULTS 2014 – Amec Plc – slide 59
    Appendix Amec Foster Wheeler order book billion 2014 2013 2012 Americas 2.1 2.3 1.7 NECIS 2.4 2.6 2.6 AMEASE 1.7 1.5 1.3 GPG 0.4 0.4 0.5 Icompany eliminations (0.3) (0.3) (0.2) 6.3 6.5 5.9 60
  60. FULL YEAR RESULTS 2014 – Amec Plc – slide 60
    Appendix supplementary materials 61
  61. FULL YEAR RESULTS 2014 – Amec Plc – slide 61
    Our leadership team 62
  62. FULL YEAR RESULTS 2014 – Amec Plc – slide 62
    Our markets: oil and gas pro forma 2014 2013 2012 Scope revenue (m) 3,013 2,967 2,503 Order book (bn) 4.2 4.3 3.5 Leading engineer and project manager across the oil and gas value chain World class track record of delivery…
  63. FULL YEAR RESULTS 2014 – Amec Plc – slide 63
    Our markets: oil and gas AMEC FW AMFW Serves the whole value chain Offshore top side facilities More exposure to Onshore facilities engineering faster growing sectors Upstream Main. Mods & Ops Oil sands Opportunities for…
  64. FULL YEAR RESULTS 2014 – Amec Plc – slide 64
    Our markets: clean energy pro forma 2014 2013 2012 Scope revenue (m) 1,574 1,518 1,693 Order book (bn) 1.2 1.5 1.3 Engineering, design, project delivery and asset support Strong positions in nuclear, renewables and…
  65. FULL YEAR RESULTS 2014 – Amec Plc – slide 65
    Our markets: mining pro forma 2014 2013 2012 Scope revenue (m) 453 528 663 Order book (bn) 0.2 0.2 0.3 Consulting, design, project management Expertise across broad spectrum of commodities: including iron ore, copper,…
  66. FULL YEAR RESULTS 2014 – Amec Plc – slide 66
    Our markets: environment and infrastructure pro forma 2014 2013 2012 Scope revenue (m) 548 564 566 Order book (bn) 0.6 0.5 0.4 Leader in consulting, engineering and project management Top 10 environmental firm 17,000…
  67. FULL YEAR RESULTS 2014 – Amec Plc – slide 67
    Further information investorsamecfw.com 44 (0) 207 429 7500 1 713 570 8327 www.amecfw.com/investors 69

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