Agenda Welcome Summary My priorities as CEO Financial review Divisional review Key takeaways Q&A 3
Summary Strong performance in 2012 with EBITA up 35% Market conditions expected to remain favourable Divisional operating highlights broadening footprint, developing relationships and focus on margin improvement 4 Looking to…
My priorities as CEO Harness collective strengths Focus on collaboration and communication Further develop combined group strategy and tactics Remain a lower risk, reimbursable business 5
Wood Group 2012 Final Results Financial Review Alan Semple - CFO
Financial results 2012 2011 Change m m % Revenue from continuing operations 6,821 5,667 20% EBITA from continuing operations1 461 342 35% Amortisation (85) (79) Net finance expense (13) (9) Profit from continuing operations before…
Pro forma financial results 2012 2011 m m Revenue EBITA Margin Revenue EBITA Margin Engineering 1,787 220 12.3% 1,462 163 11.1% Wood Group PSN 3,639 194 5.3% 3,376 175 5.2% Wood Group GTS 1,343 89 6.6% 1,225 80 6.5% Central…
Exceptional items 2012 2011 m m Business divested 27 2,294 Integration and restructuring charge (14) (84) Impairment of goodwill (2) (46) Bad debt provision/write off (10) (13) Acquisition costs - (16) Total exceptional credit…
Tax 2012 2011 m m Profit from continuing operations before tax and exceptional items 363 254 Tax charge per financial statements 104 75 Effective tax rate on continuing operations 28.6% 29.5% Tax rate movements reflect net…
Cash flow 2012 2011 m m Cash generated pre working capital 521 472 Working capital movements (193) (187) Cash generated from operations 328 285 Acquisitions & deferred consideration (189) (979) Capex & intangible assets (127)…
Cash outflow from working capital m Comments Increase in inventories 46 Higher GTS inventory Increase in receivables 103 Increase principally due to activity Decrease in payables 8 Largely unchanged despite higher activity Impact…
Balance sheet Dec 2012 Dec 2011 m m Net operating assets 2,390 1,979 Net borrowings (155) (4) Net assets 2,235 1,975 Non controlling interests (8) (10) Shareholders funds 2,227 1,965 ROCE4 19.3% 18.4% Average gross debt5…
Wood Group 2012 Final Results Operational Review Bob Keiller - CEO
Wood Group Engineering 2012 2011 % change m m Revenue 1,787 1,459 23% EBITA 220 162 36% Margin 12.3% 11.1% 1.2pts Revenue and EBITA growth principally reflecting increased activity in upstream and subsea & pipelines EBITA…
Wood Group Engineering Upstream (c40% of revenue) work continuing on Ichthys and Mafumeira Sul strength in Gulf of Mexico slow down in Canada Subsea & pipelines (c45% of revenue) strength in North Sea and Australia work in the…
Wood Group PSN 2012 2011 % m m change Revenue 3,691 3,013 23% EBITA 205 153 34% Margin 5.6% 5.1% 0.5pts Revenue and EBITA growth includes full year contribution from PSN Good performance in North Sea and strong growth in…
Wood Group PSN - Oman Loss for 2012 of around 20m Increasingly confident of significant improvement in 2013 and that 2014 should be profitable Commercial position improved, action being taken to further enhance operational…
Wood Group PSN North Sea (c40% of revenue) - growth from longer term contracts - significant extensions and new awards Americas (c30% of revenue) - strength in US, particularly oil shale - offshore Gulf of Mexico performing well…
Wood Group GTS 2012 2011 % change m m Revenue 1,343 1,195 12% EBITA 89 79 12% Margin 6.6% 6.6% - Revenue and EBITA up reflecting growth in Maintenance and Power Solutions Maintenance revenues up on 2011 and EBITA increased…
Wood Group GTS Maintenance - strong contribution from oil & gas in aero derivative JVs - operating efficiency initiatives - new awards Power Solutions - GWF complete - Dorad progressing largely as anticipated; due to complete Q4…
Key takeaways Strong performance in 2012 led by Wood Group Engineering My priorities as CEO Group strategy development in 2013 22
Footnotes 1. EBITA from continuing operations represents operating profit from continuing operations pre exceptional items of 375.6m (2011: 262.9m) before the deduction of amortisation of 85.5m (2011: 78.7m) and is provided as it is a…
Appendix 24
Amortisation 2012 2011 m m Amortisation on software etc 29 22 Amortisation of intangible assets arising on acquisition - PSN 46 47 - Other 10 10 85 79 Total amortisation charge in 2013 anticipated to be around 85m 25
Finance expense 2012 2011 m m Interest on debt 10 9 Other fees and charges 5 5 Total finance charge from continuing operations 15 14 Finance income (2) (5) Net finance expense from continuing operations 13 9 26
Share numbers 2012 2012 Closing Weighted average Ordinary shares 373 371 Shares held by employee trusts (11) (11) Basic shares for EPS purposes 362 360 Effect of dilutive shares 11 13 Fully diluted shares for EPS purposes 373…
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