OneWay to Zero Harm Our safety performance is among the best Employee Total Recordable Case Frequency Rate (TRCFR) for FY2015 was 0.12 (FY2014: 0.10) Achieved a 25% reduction in frequency rate for all employees and managed…
Agenda Financial Year 2015 in review Context Strategic framework Corporate Purpose strategy Realize our future 5 strategic themes, 5 projects Hydrocarbons Sector Minerals, metals and chemicals strategies Infrastructure Risk…
Financial Year 2015 in review - Overview Positioning for the future Subdued activity across total resource sector, both capex and opex Revenue remains resilient high proportion reimbursable Customers reporting improved performance…
Financial Year 2015 in review - Group Financial Highlights 5 year trend Aggregated revenue Underlying EBIT Underlying NPAT Cashflow from operations 7,227.5m 355.7m 198.6m 251.3m Underlying result 8
Financial Year 2015 in review Headcount movements Continually adjusting the business to suit the market Global headcount Headcount Change to Prior Month * Economic downturn Mining Crude price during GFC downturn decline…
Financial Year 2015 in review Taking action Other cost reduction measures Transferring selected operations to lower cost execution centers Transitioning IT costs from fixed to variable Increasing occupancy levels in offices Lowering…
Financial Year 2015 in review - Contract revenue contribution Majority of earnings come from smaller contracts 9,000 Contribution to aggregated revenue (m) 7,627 7,364 Aggregated revenue (m) 8,000 7,227 7,000 1,613 863 624 6,000…
Financial Year 2015 in review Regional contribution to revenue EURMENA region growing its contribution 9,000 Contribution to aggregated revenue (m) 7,627 7,364 Aggregated revenue (m) 8,000 288 7,227 394 391 7,000 393 325 409…
Group profile Strength from diversity Capex vs opex 85% 15% Capex Opex Commercial model Typical 1 60 85% 15% project Reimbursable Fixed price/Lump Sum duration months Business lines Typical 1 36 65% 12% 13% 10% order book…
Financial Year 2015 in review - Significant awards 105 significant awards, 16 awards announced to ASX 2 18 2 8 Significant awards have over 1 million EBIT over the contract life. ASX announcements are contracts 15 with over…
Agenda Financial Year 2015 in review Context Strategic framework Corporate Purpose strategy Realize our future 5 strategic themes, 5 projects Hydrocarbons Sector Minerals, metals and chemicals strategies Infrastructure Risk…
Strategic frameworkThe scope of presentation Corporate and global sector strategies The strategy pyramid shows how the various layers of strategic effort fit together. The 4 levels are 1. Corporate Strategy 2. Global Sector…
Purpose 18
Realize our future Many stories NPAT Context: External changes Technical time Capability & Local Presence A company that Five Strategic Themes Five projects Vision & Purpose 19
Realize our future External challenges STRATEGY WEDGE Willingness to Pay X Quantity 1 2 3 Costs 20
The paradigm shift from peak oil to shale revolution Structural shift in the hydrocarbons market Oil market investment over the last decade driven by concept of peak oil Drove investment into frontier regions and harder to extract…
Return on investment declined long before commodity price falls Customers were questioning investments in 2013 22
Long term strategy based on unstoppable trends OPPORTUNITIES FOR WORLEYPARSONS Growth of renewables Climate Power Plant Retrofits, Decoms and Advisory service Change Carbon Capture & Storage Continued investment in new and existing…
Near term, business re-positioning for recent market shifts OPPORTUNITIES FOR WORLEYPARSONS Asset productivity enhancement focus Oil Price Shock Enhanced Oil Recovery Refining industry margins uptick Increase in Chemicals activity…
Realize our future through the strategy for growth Strategy for growth NPAT Minor adjustments Do nothing time 25
Realize our future - Vision A company that 26
Realize our future based on our key differentiator Technical Capability & Local Presence 27
Focus on front end and Improve Selective delivery offerings 28
5 strategic themes, 5 projects One differentiated strategy 29
The right team Leading and delivering 30
Advis
Project 1 Introducing Advisian Advise + Technician = Advisian Advisian is our new independent advisory and consulting business that sits alongside our other business lines of Services, Major Projects and Improve. Advisian combines…
Project 1 Responding to the worlds unstoppable trends By 2030 the global population will be approximately 8.3 billion and the Accelerating urbanisation world will need: Water scarcity Climate change Resource scarcity Food security…
Project 1 Our response is to build a global advisory and consulting business Leverage the deep domain Globally knowledge of 30,000 people connected at WorleyParsons workforce Bring together all consulting capabilities Evans & Peck…
Project 1 Over 3,000 consultants in 19 countries 35 35
Project 1 Identifying growth potential by sector and geography 36
Project 1 Building the right mix of management and technical consulting Advisian FY15 Advisian FY16 with Consulting, Advisian future launch Select & INTECSEA state Strategic Consulting Management Consulting…
Project 1 Advisian vs competitors 38 Advisian 38
Project 1 What makes us different Combination of Deep domain knowledge Global reach, We advise across the Strategic, Management backed by real-world local delivery entire business and and Technical experience asset lifecycle…
Project 1 A diverse and experienced management team * Joined in the last 18 months 40 40
Project 1 In Summary Advisian launched in late 2014 with the merger of three businesses - Evans & Peck, WorleyParsons EcoNomics and the newly acquired MTG The transfer of the WorleyParsons Technical Consulting, Select and INTECSEA…
Project 2 Introducing Major Projects Major Projects offers our customers specialization in the delivery of large complex projects. The creation of the Major Projects business line reflects our customers organizations. It is a global…
Project 2 Major Projects Capex vs opex 100% Capex Opex % of Group 12% revenue Sectors Typical 12 36 project 93% 7% duration months Hydrocarbons MM&C Infrastructure Typical 12 18 order book Customers visibility months 75%…
Project 2 Be the global PMC provider of choice CONTEXT RESPONSE Owners looking to transfer Move away from more risk to EPC/EPCm commodity services into Customers seeking PMC roles projects with less Complement EPCm intensive…
Project 2 Be the global PMC provider of choice Phase 1 well underway Build on the long history of PMC delivery in the Middle East, LAM and SSA Broaden the range of customers in these geographies Tailor PMC services for key IOCs…
Project 2 Be the global PMC provider of choice Phase 2 started Deploy our Digital Enterprise division to create a data-centric PMC platform & set the standard for customer use of digital data Drive the PMC offering into the other…
Project 3 Introducing Improve The Improve business line provides our customers with global best practice solutions to optimize the performance of their operating assets. It is a global business line that provides relationship based…
Project 3 Improve Capex vs opex 85% 15% Capex Opex % of Group 13% revenue Sectors Typical 36 60 relationship 85% 15% duration months Hydrocarbons MM&C Infrastructure Typical 12 36 order book Customers visibility months 50%…
Project 3 Build a leading Improve business CONTEXT RESPONSE Customers, in the mature Continue to focus on the key basins, increasingly want an basins, that allow us to integrated offering leverage our existing strengths Whilst…
Project 3 Build a leading Improve business Phase 1 well underway Continue to meet the needs of customers in these challenging times Focus on those customers seeking a more integrated service Focus on key basins where we hold a…
Project 3 Build a leading Improve business Phase 2 started Diversify services offered in home basins Follow existing global customers into new regions Duplicate the heritage domain knowledge led strategy into other growth…
Project 4 Introducing Services The Services business line utilizes the knowledge and capability throughout our global organization to deliver solutions for our local customers. Services works hand in glove with Major Projects, Improve and…
Project 4 Services Capex vs opex 80% 20% Capex Opex % of Group 65% revenue Sectors Typical 1 24 contract 70% 15% 15% duration months Hydrocarbons MM&C Infrastructure Typical 36 order book Customers visibility months 25% 60%…
Project 4 Be the smartest, most agile local service provider CONTEXT RESPONSE Our strong local relationships Avoid / move from and wide geographic coverage commoditized market segments remain key differentiators Focus on…
Project 4 Be the smartest, most agile local service provider Phase 1 Completed Address immediate financial priorities (utilization, overhead, cash collection) Improve ROIC of bottom 10 locations Simplify our business 56
Project 4 Be the smartest, most agile local service provider Phase 2 well underway Empowered locations to pursue opportunities available in their market Support customers meet localization mandates Focus on growing locations where…
Project 4 Be the smartest, most agile local service provider Services Local delivery of global capability Case study A single organization to deliver EPC services Engineering design completed between Beijing and Calgary Prefabricated…
Project 5 Driving the use of global delivery centres and applying digital technology to revolutionize the delivery of our services Introducing the Global Delivery Center The Global Delivery Center supports all four business lines to…
Project 5 Be the company that leapfrogs the competition in the use of global delivery centers and applies digital technology to revolutionize the delivery of our services CONTEXT RESPONSE In the short term the Immediately boost our…
Project 5 Driving the use of global delivery centres and applying digital technology to revolutionize the delivery of our services Global Delivery Center Benefits to all four business lines More competitive positions while protecting…
Project 5 Driving the use of global delivery centres and applying digital technology to revolutionize the delivery of our services Services Local delivery of global capability Case study GDC delivered commercial savings for our Canadian…
5 projects One differentiated strategy 63
Agenda Financial Year 2015 in review Context Strategic framework Corporate Purpose strategy Realize our future 5 strategic themes, 5 projects Hydrocarbons Sector Minerals, metals and chemicals strategies Infrastructure Risk…
Sector Strategies Andy Cole
Sector intent HYDROCARBONS Balanced revenue from upstream, midstream and downstream Provide the platform for earnings diversification MINERALS, METALS & CHEMICALS Broaden across the entire value-chain (Select Deliver Improve)…
Sector strategies Hydrocarbons
Our Hydrocarbons business in FY15 Dominated by exposure to upstream, greenfields and Tier 1s Upstream Sector growth has underpinned much of our growth over the last decade Midstream Downstream Upstream Greenfields developments…
Recent customer trends Prior to the oil price shock: Oil company profits were already being eroded by the increasing level of investment required to produce incremental barrels of oil Margins already T1 Procurement Tier 1 squeezed…
Strengthen by diversification (1) (2) (3) 70
Grow in midstream and downstream Earnings growth channel 1: Stream Head room for growth available in Midstream and Downstream Midstream Pipelines Downstream Midstream LNG Upstream Upstream Refining Downstream Petrochemicals…
Grow OPEX exposure Earnings growth channel 2: Expenditure Access both CAPEX and OPEX over the asset lifecycle Greenfields (CAPEX) Greenfields Brownfields Brownfields (CAPEX + OPEX) Differentiator/ Offering 1. foc…
Diversify customer base Earnings growth channel 3: Customer Maintain current Tier 1 relationships and develop Tier 2, NOC and Asian EPC customer base Tier 2 Tier 1 Tier 2 Tier 1 Tier 1 Tier 3 Tier 3 Asian EPC NOC Asian EPC NOC…
Customer view Regarded by Hydrocarbons customers as the market leader Source: AlphaWise, Morgan Stanley Research, 20 March 2015, WorleyParsons Ltd. Asia Insight: Franchise discount unwarranted 74 74
Sector strategies Minerals, Metals & Chemicals
Where is our business now Minerals, Metals and Chemicals sector MINERALS & METALS CHEMICALS Subdued commodity Buoyant demand prices Strong capex Low capex environment New low cost feedstock Cost focus Revenue breakdown 76
Minerals & Metals customer trends Pressure to sweat the assets and for responsible capital management Big miners have financial capacity to invest in innovation / new technology (eg IROC, Process Centres, Mines of the Future) Tier 1s…
Minerals and Metals Strategy Build out our offering across the entire mining value chain Resource Broaden the revenue base via building out our offering to service the full value chain from the initial Advisory consulting…
Moving upstream in the value chain Maintain strong technical depth Services across the full Mining Global business underpinned across a portfolio of Minerals & value chain and asset lifecycle by the four sustainable regions…
Build technical depth across the portfolio Maintain strong technical depth Services across the full Mining Global business underpinned across a portfolio of Minerals & value chain and asset lifecycle by the four sustainable regions…
Focus on the 4 regions Maintain strong technical depth Services across the full Mining Global business underpinned across a portfolio of Minerals & value chain and asset lifecycle by the four sustainable regions Metals The…
Chemicals market trends Chemicals customer portfolios continue to grow to meet consumer demand Tier 1 customer Complexities of feedstock change impacting investment priorities focus Investments strategies re-visited Feedstock…
Chemicals Strategy China to the world Further investment in our China based International Chemicals hub is a key component of our global Chemicals strategy Providing a highly competitive delivery solution to our customers…
China to the World Using our strength in China together with the associated cost advantages Build out across the 4 subsectors of Petrochemicals , Polymers , Inorganics and Speciality Chemicals Multiple global relationships with…
Build-out of capability Using our strength in China together with the associated cost advantages Build out across the 4 subsectors of Petrochemicals , Polymers , Inorganics and Speciality Chemicals Multiple global relationships…
Teir 1 customer focus Using our strength in China together with the associated cost advantages Build out across the 4 subsectors of Petrochemicals , Polymers , Inorganics and Speciality Chemicals Multiple global relationships…
Sector strategies Infrastructure
Infrastructure Where is our business now Customers: Even split between public and resource Scope: Focus has been on Greenfields Long-term customers Public Sector Undifferentiated Public & Brownfields Resource Utilities Sector…
Customer trends Pressure to sweat assets given low commodity prices Downsizing overheads and personnel Resources Cutting CAPEX and delaying new projects customers Continuing with enabling studies to position for finance Divesting…
Power Energy demand forecast to grow circa 20% to 2030 Source: BHP Billiton, 24 Nov 2014 90
Water Opportunities in advisory, sourcing, treatment and disposal 91
Ports Seaborne trade rising 4.1% this year 92
Rail Global rail travel is projected to double by 2050 Railway Projections (thousand trackkm) Source: International Energy Agency 93
FY16 Infrastructure Infrastructure strategy Strategy Shift from undifferentiated public sector to resource and long-term public customers Balanced greenfield and brownfield customer portfolio Long-term Customer Type Public Sector…
FY16 Sector strategy Summaries HYDROCARBONS Balanced revenue from upstream and midstream / downstream Access both CAPEX and OPEX revenue streams MINERALS, METALS & CHEMICALS Extend services across the full value chain Strengthen…
Financial Simon Holt
Financial management Managing 4 key financial risks Currency Matching currency of revenue to the currency of costs Negotiated rate adjustments based on exchange rate fluctuations Cross currency swaps Translation risk for currencies…
Currency management Natural hedge on P&L Currency % of Underlying Average Weighted Group EBIT movement % average impact FX impact on Underlying % Group EBIT was 11.2 CAD 24 1 0.13 mil or 3.2% USD - unpegged 13 3 0.71 USD - pegged 7 10…
Liquidity management Gearing ratio within target range Gearing ratio (%) 40% 35% 30% Target range 25% 20% 15% FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 HY2015 FY2015 Gearing ratio = net debt/net debt + equity 99
Liquidity management Key financial drivers of debt covenants Financial drivers Impact Commentary EBITDA Higher EBITDA 12 months to 30 June improves headroom on affected by one off covenants charges Foreign exchange Impacts gross…
Loading...
