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FULL YEAR 2013 RESULTS – Amec Plc

Amec Plc · Feb 13, 2014 · 50 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 2013 RESULTS – Amec Plc – slide 1
    AMEC plc Full-year results 2013 and offer for Foster Wheeler 13 February 2014
  2. FULL YEAR 2013 RESULTS – Amec Plc – slide 2
    AMEC plc Full-year results 2013 And offer for Foster Wheeler John Connolly, Chairman
  3. FULL YEAR 2013 RESULTS – Amec Plc – slide 3
    2013 highlights Strong safety performance Good operating performance Underlying revenue1 excluding incremental procurement, up 2 per cent Diluted EPS2, up 11 per cent Record order book of 4.1 billion Proposed full year dividend…
  4. FULL YEAR 2013 RESULTS – Amec Plc – slide 4
    Agenda Financial performance Ian McHoul, Chief Financial Officer Market and strategy update Samir Brikho, Chief Executive 55
  5. FULL YEAR 2013 RESULTS – Amec Plc – slide 5
    AMEC plc Full-year results 2013 and offer for Foster Wheeler Ian McHoul, Chief Financial Officer
  6. FULL YEAR 2013 RESULTS – Amec Plc – slide 6
    Changes to reporting in 2013 New organisation structure announced October 2012 2013 results presented under new geographic structure UK Conventional Power UK Conventional Power business closed during 2013 reclassified as a…
  7. FULL YEAR 2013 RESULTS – Amec Plc – slide 7
    Summary million 2013 20121 Change Revenue 3,974 4,088 -3% EBITA2 343 334 +3% EBITA margin 8.6% 8.2% +40bps Operating cash flow3 341 312 +9% Profit before tax4 332 327 +2% Earnings per share5 87.2p 78.6p +11% Dividend per share…
  8. FULL YEAR 2013 RESULTS – Amec Plc – slide 8
    Revenue by geography Versus 2012 million 2013 Headline Underlying Underlying (excluding FX and (excl. procurement) 2 acquisitions)1 Americas 2,247 -10% -10% -2% Europe 1,227 +14% +11% +11% Growth Regions 536 +1% +2% +2%…
  9. FULL YEAR 2013 RESULTS – Amec Plc – slide 9
    Revenue by market Versus 2012 million 2013 Headline Underlying Underlying (excl. FX and (Excl. procurement )2 acquisitions)1 Oil & Gas 1,997 +4% +4% +13% Mining 493 -28% -27% -23% Clean Energy 956 +1% -2% -2% Environment &…
  10. FULL YEAR 2013 RESULTS – Amec Plc – slide 10
    EBITA margin1 2013 2012 Excl. Excl. million Headline Headline procurement2 procurement2 Americas 10.7% 11.3% 9.3% 10.7% Europe 7.6% 7.6% 8.8% 8.8% Growth Regions 6.2% 6.2% 6.1% 6.1% Total 3 8.6% 8.9% 8.2% 8.8% Like for…
  11. FULL YEAR 2013 RESULTS – Amec Plc – slide 11
    Americas million 2013 2012 Revenue O&G ex procurement - Oil & Gas 779 916 +3% - Mining 430 543 - Clean Energy 601 572 - Environment & Infrastructure 437 469 Total 2,247 2,500 EBITA 241 233 EBITA margin 10.7% 9.3% Average…
  12. FULL YEAR 2013 RESULTS – Amec Plc – slide 12
    Americas Revenue growth (%) EBITA development (m) -8% -6 +17 -2 -1 -2% 1,218m 2,500m 241m 1,154m 233m 2,247m 2012 Net Forex(2) Incremental Organic 2013 2012 Net Forex(2) Incremental Organic Margin 2013…
  13. FULL YEAR 2013 RESULTS – Amec Plc – slide 13
    Europe million 2013 2012 Revenue - Oil & Gas 842 671 - Mining 1 11 - Clean Energy 336 369 - Environment & Infrastructure 48 29 Total 1,227 1,080 EBITA 93 95 EBITA margin 7.6% 8.8% Average employees1 10,583 10,473 Order book…
  14. FULL YEAR 2013 RESULTS – Amec Plc – slide 14
    Europe Revenue growth (%) EBITA development (m) 11% +5 +10 -17 +3% 1,227m 95m 93m 1,080m 2012 Net Forex(2) Organic 2013 2012 Net Forex(2) Organic Margin 2013 acquisitions(1) acquisitions(1) revenue Margin…
  15. FULL YEAR 2013 RESULTS – Amec Plc – slide 15
    Growth Regions million 2013 2012 Revenue - Oil & Gas 376 331 - Mining 62 128 - Clean Energy 19 4 - Environment & Infrastructure 79 68 Total 536 531 EBITA 33 32 EBITA margin 6.2% 6.1% Average employees1 3,476 2,874 Order…
  16. FULL YEAR 2013 RESULTS – Amec Plc – slide 16
    Growth Regions Revenue growth (%) EBITA development (m) +2% +1 +1 +1% -2% -1 33m 536m 531m 32m 2012 Net Forex(2) Organic 2013 2012 Net Forex(2) Organic Margin 2013 acquisitions(1) acquisitions(1) revenue…
  17. FULL YEAR 2013 RESULTS – Amec Plc – slide 17
    Interest 2012 2012 million 2013 restated1 reported Pensions Return on assets 73 72 85 Interest on liabilities (72) (75) (76) 1 (3) 9 Bank interest (2) 2 2 Other (1) - - Income statement (2) (1) 11 Joint ventures (9) (6) (6)…
  18. FULL YEAR 2013 RESULTS – Amec Plc – slide 18
    Tax million 2013 2012 Underlying rate1 30% 29% P&L charge2 21.9% 22.5% Cash paid 52m 29m Charge reducing over the last five years Cash payments normalising Sustainable rate in the low mid-20s 1 Weighted average…
  19. FULL YEAR 2013 RESULTS – Amec Plc – slide 19
    Amortisation and exceptional items million 2013 2012 Continuing operations Amortisation1 (47) (44) Exceptional items (pre-tax)2 (25) (24) (72) (68) Tax on amortisation and exceptional charges 14 21 Withholding tax on cash…
  20. FULL YEAR 2013 RESULTS – Amec Plc – slide 20
    Operating cash flow million 2013 2012 m EBITA 343 334 400 JV EBITA (28) (23) 350 JV dividends received 8 11 300 Non-cash items1 25 28 250 Working capital (7) (38) 200 150 Operating cashflow2 341 312 100 50 Cash conversion…
  21. FULL YEAR 2013 RESULTS – Amec Plc – slide 21
    Our approach to growth and returns Cash generation Dividend Leverage Progressive EBITA dividend Up to 2x growth Cover 2-2.5x EBITDA Revenue growth Surplus cash Investment Additional returns to shareholders Focused on…
  22. FULL YEAR 2013 RESULTS – Amec Plc – slide 22
    Cash flow million 2013 2012 Operating cash flow 341 312 Acquisitions and disposals1 (53) (206) Interest and tax (54) (30) Dividends (108) (98) Share purchases (net) (40) (355) Exceptional items2 (21) (11) Other3 (23) (26) Net…
  23. FULL YEAR 2013 RESULTS – Amec Plc – slide 23
    Outlook Long term fundamentals positive 2014 revenue good underlying growth expected 2014 margin risk on the downside due to mix Stronger sterling will affect translation of North American operations Currently more than 10 million…
  24. FULL YEAR 2013 RESULTS – Amec Plc – slide 24
    AMEC plc Full-year results 2013 and offer for Foster Wheeler Samir Brikho, Chief Executive
  25. FULL YEAR 2013 RESULTS – Amec Plc – slide 25
    AMEC today Our employees We sell our We have a low-risk are talented people expertise globally contracting model We are customer We operate in We are highly focused 4 growth markets cash generative more than 1 billion…
  26. FULL YEAR 2013 RESULTS – Amec Plc – slide 26
    AMEC today - markets update Europe Market O&G: UK North Sea production stabilising CE: awaiting regulatory clarity for new nuclear AMEC O&G: brownfield and opex remain high position CE: reactor support drives near-term nuclear…
  27. FULL YEAR 2013 RESULTS – Amec Plc – slide 27
    Offer for Foster Wheeler Key benefits Significantly enhances oil & gas position and improves geographic footprint Brings together two highly-skilled workforces Retention of low-risk and cash generative business model Financially…
  28. FULL YEAR 2013 RESULTS – Amec Plc – slide 28
    Offer for Foster Wheeler Headline terms For each Foster Wheeler share: 0.8998 new AMEC shares/ADRs and 16.00 in cash Represents c.3.3 billion for whole of Foster Wheeler(1) Two Foster Wheeler non-executive directors are expected…
  29. FULL YEAR 2013 RESULTS – Amec Plc – slide 29
    Strategic rationale for the acquisition Complements AMECs footprint Strong brand and international footprint P Doubles size of Growth Regions and expands LatAM exposure Highly skilled workforce P Similar to AMECs skill set…
  30. FULL YEAR 2013 RESULTS – Amec Plc – slide 30
    Enhanced opportunities with Foster Wheeler Europe Enhanced workshare, better use of HVDCs Centre of excellence for engineering Strengthened sales network, new customers Americas Growth Regions Immediate scale in onshore…
  31. FULL YEAR 2013 RESULTS – Amec Plc – slide 31
    Cost synergies Identified cost synergies of at least US75 million per annum Full annualised run-rate by year three Approximate cost of 75-90 million to achieve Predominantly removal of duplicated corporate overhead and SG&A costs…
  32. FULL YEAR 2013 RESULTS – Amec Plc – slide 32
    Pro forma financials PF 2012 Revenues 6.2bn IFRS reconciliation of FWs 2012 numbers No significant impact to revenues or continuing FW operations EBITDA 35% Combined order book of more than 6 billion AMEC 65% IFRS asbestos…
  33. FULL YEAR 2013 RESULTS – Amec Plc – slide 33
    Anticipated timetable Q1 Announce firm offer (13 February 2014) Progress AMECs US registration and listing AMEC makes anti-trust filings Q2 AMEC shareholder documents published and shareholder meetings Offer document posted to FW…
  34. FULL YEAR 2013 RESULTS – Amec Plc – slide 34
    AMEC + Foster Wheeler: a compelling combination Enhances oil and gas position across the whole value chain: on and offshore P Expands geographic footprint P Brings together two highly-skilled workforces P Retains low-risk, cash…
  35. FULL YEAR 2013 RESULTS – Amec Plc – slide 35
    Summary Good performance during 2013 - largely as expected Proposed dividend up 15 per cent Positive outlook good underlying revenue growth expected in 2014 Foster Wheeler acquisition will accelerate our growth strategy, while…
  36. FULL YEAR 2013 RESULTS – Amec Plc – slide 36
    AMEC plc Full-year results 2013 and offer for Foster Wheeler Supplementary information
  37. FULL YEAR 2013 RESULTS – Amec Plc – slide 37
    Appendix Safety statistics Total recordable case frequency rate Lost time incident frequency rate All injury frequency rate (per 200,000 exposure hours) (per 200,000 exposure hours) (per 200,000 exposure hours) 0.37 0.38 0.04 0.04…
  38. FULL YEAR 2013 RESULTS – Amec Plc – slide 38
    Appendix versus North American currencies 2014F1 2013 2012 13/12 14/13 Income statement Cdn 1.79 1.62 1.59 +2% +10% US 1.60 1.57 1.59 -1% +2% Balance sheet Cdn 1.76 1.62 +9% US 1.66 1.63 +2% 1 Forecast average rates, as…
  39. FULL YEAR 2013 RESULTS – Amec Plc – slide 39
    Appendix Profit reconciliation Per consol income Joint Per million statement ventures2 presentation Americas 241 Europe 93 Growth Regions 33 Investments Services 11 Corporate costs (35) Profit before net financing expense…
  40. FULL YEAR 2013 RESULTS – Amec Plc – slide 40
    Appendix Order book billion Dec 13 Dec 12 Americas 1.45 1.27 Europe 1.73 1.57 Growth Regions 0.92 0.78 4.10 3.62 41 41
  41. FULL YEAR 2013 RESULTS – Amec Plc – slide 41
    Appendix Tax rate1 Group million companies JVs Total EBITA per presentation 315 28 343 Net financing income (2) (9) (11) 313 19 332 Tax (67) (5) (72) PAT per consolidated 246 14 260 Tax rate 21.6% 27.5% 21.9% 1 Before…
  42. FULL YEAR 2013 RESULTS – Amec Plc – slide 42
    Appendix Pension schemes funding1 million Dec 2013 Dec 2013 Dec 2012 Gross Surplus/(deficit) Surplus /(deficit) assets UK schemes 1,676 102 86 Other schemes 107 (62) (93) 1,783 40 (7) A well funded pension position 1…
  43. FULL YEAR 2013 RESULTS – Amec Plc – slide 43
    Appendix Pension accounting changes to IAS 19 Return on pension assets to be based on the discount rate (ie AA corporate bond yields) irrespective of the actual asset class Effective 1 January 2013 Profit impact: 2013 2012 million…
  44. FULL YEAR 2013 RESULTS – Amec Plc – slide 44
    Appendix Restatement of 2012 results - income statement million As originally IAS 19 Discontinued As reported pensions operations restated Revenue 4,158 - (70) 4,088 Cost of sales (3,625) (1) 70 (3,556) Gross profit 533 (1) - 532…
  45. FULL YEAR 2013 RESULTS – Amec Plc – slide 45
    Appendix Restatement of 2012 results - profit reconciliation Per 2012 as consol Per restated in income Joint 2012 2013 million statement1 ventures2 presentation Restatement presentation Americas 233 - 233 Europe 91 4 95 Growth…
  46. FULL YEAR 2013 RESULTS – Amec Plc – slide 46
    Appendix Overview of Foster Wheeler key financials Key income statement items (1) Backlog (4) million 9m to Sep-13 FY 2012 By division million Sep-13 FY 2012 Scope revenue 1,892 2,548 E&C 2,919 2,197 Total revenue 2,455 3,391…
  47. FULL YEAR 2013 RESULTS – Amec Plc – slide 47
    Appendix Foster Wheeler E&C business: overview E&C key financial metrics(1) Engineering and project management services focus million 9m to Sep-13 FY 2012 Front-end design (FEED); engineering, procurement, Scope revenue 1,309…
  48. FULL YEAR 2013 RESULTS – Amec Plc – slide 48
    Appendix Foster Wheeler power equipment: overview Power equipment key financial metrics(1) Designs, manufactures and installs power million 9m to Sep-13 FY 2012 generation equipment Scope Revenue 583 962 Deep history and…
  49. FULL YEAR 2013 RESULTS – Amec Plc – slide 49
    Appendix Enhanced O&G competitive positioning AMEC Foster AMEC CB&I W. P. Tech- Wood KBR Wheeler + nip FW Offshore topsides/jackets Offshore hulls/moorings - - - - - - Upstream Offshore fab./install/SURF - - - - - - -…
  50. FULL YEAR 2013 RESULTS – Amec Plc – slide 50
    Investor Relations contacts Sue Scholes Rupert Green Laura ONeill Director of Communications Interim Head of Investor Relations Investor Relations Associate sue.scholesamec.com rupert.greenamec.com laura.oneillamec.com 44 (0) 20…

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