ubs emerging companies conference for personal · pdf fileubs emerging companies conference...

Craig Allen - Chief Financial Officer

3 April 2012

UBS Emerging Companies Conference

For

per

sona

l use

onl

y

“ Our purpose is to deliver breakthrough results for our clients as a leader in engineering, program management and operational solutions for the global resources and energy sectors ”

UBS Emerging Companies Conference | 3 April 2012 | 2

The client is our focus We seek ingenious solutions Our people are our strength

We are open, honest and collaborative

Safety in all we do Respect the community and environment

Our Core Values:

For

per

sona

l use

onl

y

•  Improved 12 month LTIFR to 0.80 on 11.2 million man hours worked progress towards goal of zero harm

•  Significant focus on retention, development and performance of our employees

•  Positive trend in employee turnover at year end continues despite significant market pressure

•  18% reduction in Lost Time Injuries from 2010

•  New initiative of Zero Harm Leadership courses completed with majority of personnel trained in Right to Start Hazard & Risk Assessment

Our people and their safety are our priority

0

4

8

12

16

20

2007 2008 2009 2010 2011

Hours managed

LTIFR is Lost Time Injury Frequency Rate TRIFR is Total Recordable Injury Frequency Rate

0.0

1.0

2.0

3.0

4.0

5.0

2007 2008 2009 2010 2011

LTIFR & TRIFR trend

LTIFR TRIFR


For

per

sona

l use

onl

y

Optimise Onsite engineering and operations and maintenance support services Optimise Onsite engineering and operations and maintenance support services

Innovate Front end engineering and design service (FEED)

Create Engineering, Procurement, Construction Management (EPCM) and Engineering Procurement Construction (EPC) contracts

Evaluate Pre-feasibility, feasibility and conceptual design services

Create Engineering, Procurement, Construction Management (EPCM) and Engineering Procurement Construction (EPC) contracts

Innovate Front end engineering and design service (FEED)

Evaluate Pre-feasibility, feasibility and conceptual design services

Our offering

Minerals & Metals

•  Precious metals • Coal •  Iron ore •  Base metals •  Industrial

minerals • Mineral sands • Uranium •  Phosphates •  Fertilisers •  Potash

Process Infrastructure

•  Ports, marine and offshore

•  Long distance slurry and liquid pipelines

•  Past and tailings disposal systems

• Materials handline • Rail • Commercial and

industrial buildings •  Pulp and paper •  Supply chain

simulations and optimisation

• Control systems • Waste water

treatment •  Infrastructure

Environment & Sustainability

• Civil & geotechnical engineering

• Waste treatment, processing and storage

• Mine waste management

•  Environmental and sustainability services

•  Permitting and licensing

• Water resource management

•  Laboratory & field services

Energy

• Conventional gas • Non-conventional

gas • Gas conversion • Renewable energy •  Bio fuels • Oil and gas

pipelines •  Power generation

and transmission • Coal gasification • Off gas treatment • Carbon storage • Oil sands • Oil shale

Program Management

•  Program and project management

•  Procurement •  Logistics • Construction

management •  Stakeholder

relations management

•  Statutory approvals management


For

per

sona

l use

onl

y

Global footprint – 29 offices across 19 countries

Brisbane Corporate Office Asia Bangkok, Thailand Beijing, China Jakarta, Indonesia Mumbai, India Australia/South Pacific Adelaide, Australia Apia, Samoa Brisbane, Australia Honiara, Solomon Islands Nuku’alofa, Tonga Perth, Australia Port Moresby, Papua New Guinea Port Vila, Vanuatu Suva, Fiji

Offices Middle East Jeddah, Saudi Arabia North America Burlington, Canada Calgary, Canada Concord, USA Denver, USA Houston, USA Montréal, Canada Reno, USA Toronto, Canada Vancouver, Canada South America Belo Horizonte, Brazil Bogotá, Colombia Lima, Peru Mendoza, Argentina Rio de Janeiro, Brazil Santiago, Chile

8%

Services revenue - by geography South

2011

2006

Africa 13%

Asia 13%

North America 19%

Central Asia 2%

MENA 2%

Australia 23%

America 28%

Africa 29%

Asia 41%

Australia 20%

MENA 10%


For

per

sona

l use

onl

y

Ausenco today – global, diversified, strong


Service revenues – by commodity

2%

Agricultural chemical feedstock

Base metals 24%

Coal 21%

Iron Ore

21%

Precious metals

24%

Mineral sands

1%

Chemicals

1% Energy

2% Environmental

1% Other

3%

2011

2006 Other

3% 24% Base metals

51%

Precious metals

$547.9m Revenue

2006: $144.4m

3,100 People

2006: 770

$4.1bn

Create phase – Work Under Management

2006: $1.9bn For

per

sona

l use

onl

y

Ausenco today – Growth delivers improved 2011 financial results

2H 11 1H 11 $m FY 2011 FY 2010

290.7 257.2 ã Revenue from operations 547.9 513.4 ã

30.2 16.7 ã Underlying EBITDA 46.9 10.6 ã

10.4% 6.5% ã Underlying EBITDA margin (%) 8.6% 2.1% ã

24.0 9.6 ã Net profit / (loss) before tax 33.6 (18.7) ã

18.7 7.7 ã Attributable profit / (loss) after tax 26.4 (10.7) ã

18.7 7.7 ã Underlying earnings 26.4 0.8 ã

15.2 6.3 ã Basic earnings per share (cents) 21.5 (8.8) ã

37.5 (26.1) ã Operating cash flow 11.4 23.1 ä

15.4 6.2 ã Underlying EBITDA interest coverage (times) 10.1 1.8 ã

9.8 3.1 ã Dividend per share (cents) 12.9 - ã


Service revenue by business line

Environment and Sustainability 7%

Program Management 9%

Energy <1%

Minerals and Metals 56%

Process Infrastructure 28%

For

per

sona

l use

onl

y

Ausenco today – 2012 momentum continues

•  We are a global engineering business with flexibility, experience and resilience to handle projects of all sizes

•  We are now over 3,100 people, up over 20%, from the same time last year to service our growing project list

•  We are the preferred provider on six major projects of over $1 billion installed capital value each, to deliver engineering or program management solutions

•  We are delivering Create phase EPCM solutions on $4.1 billion of work under management, improving our visibility of and outlook into 2012 and 2013

•  In 2012, we have been awarded more than $100 million of new revenue across more than 50 projects contributing to an increased work on hand of over $450 million


For

per

sona

l use

onl

y

Ausenco’s growth platform

•  Our significant global footprint is providing benefits such as:

•  Exploration and project development is concentrated in Americas, Australia and Africa – Regions we have experience and presence

•  Our broader service offering now extends well beyond the processing plant itself – our scopes under management and growth prospects are increased

•  Our award winning reputation and unique capability in commodities experiencing record prices and demand

•  We have quality people delivering results, with a strong and experienced executive leadership group

•  We have the right capability mix with necessary skillset and experience to execute expanded projects and scopes


For

per

sona

l use

onl

y

Build long-term inspiring client relationships •  Diversity strategy has delivered broader and deeper

globally diverse client base

•  Over 75% of revenue now received from globally diverse and major resource companies

•  Clients seeking full phase solution delivery provide repeat, ongoing project opportunities

•  Enhanced client understandings provides cross selling opportunities across our solution offerings

•  Our increased number of strategic alliance framework agreements providing greater alignment and visibility

•  Our full solution offering to clients from pre-development Evaluate phase, through Create phase development to include Optimise phase recurring revenues

Service revenue by client type

Globally diversified

5% Major

32% Emerging

63%

Globally diversified

25% Major

50% Emerging

25% 20 1 1 2006


For

per

sona

l use

onl

y


A profile of our global projects F

or p

erso

nal u

se o

nly

Kestrel Mine Expansion

Client Rio Tinto Location Queensland, Australia Service Create (PCM) Timing Current


For

per

sona

l use

onl

y

Quintette Coal Project

Client Teck Resources Limited Location Canada Service Create (EPCM) Timing Current


For

per

sona

l use

onl

y

Constancia Copper Project

Client Hudbay Minerals Location Peru Service Create (EPCM) Timing 2012 - 2015


For

per

sona

l use

onl

y

Bozshakol Copper Project

Client Kazakhmys plc Service Create Timing Current


For

per

sona

l use

onl

y

Minas-Rio Iron Ore Pipeline System

Client Anglo Ferrous Brazil Location Brazil Service Innovate (FEED) Timing Current


For

per

sona

l use

onl

y

Centerm Container Terminal Redevelopment Project

Client P&O Ports Canada Ltd. Location Vancouver, Canada Service Create (engineering, management and construction)


For

per

sona

l use

onl

y

Engineering solutions for platforms in Arctic temperatures

Orlan Platform

Client Exxon Neftegas Limited Location Sakhalin Island, Russia Service Innovate (FEED) Timing 2011 – 2012


For

per

sona

l use

onl

y

Los Bronces Thickened Copper Ore Pipeline

Client Anglo American Sur Location Chile Service Design, engineering and field engineering Timing Current


For

per

sona

l use

onl

y

Pascua Lama Tailings Storage Facility

Client Barrick Gold Corporation Location Chile / Argentina border Service Engineering of the tailings storage facility Timing Current


For

per

sona

l use

onl

y

False Creek Energy Centre

Client City of Vancouver Location Vancouver, Canada Service Innovate (design) Timing 2007 - 2010


For

per

sona

l use

onl

y

Grasmere Wind Farm

Client Verve Energy Location Mt Barker, Western Australia Service Installation of wind turbines Timing July 2011 (due for completion early 2012)


For

per

sona

l use

onl

y

Fast tracked establishment, all production targets exceeded and an excellent safety record – over 2 years operated LTI free

Isaac Plains Coal Handling & Preparation Plant

Client Isaac Plains Coal Management Ltd Location Queensland, Australia Project Operations and maintenance Timing Current


For

per

sona

l use

onl

y

Alpha Coal Project

Client GVK / Hancock Coal Location Queensland, Australia Service Evaluate (PCM) in JV with Worley Parsons Timing Current


For

per

sona

l use

onl

y


Strategy and Outlook F

or p

erso

nal u

se o

nly

Record exploration spending - $16bn in 2011

Source: Metals Economics Group, McKinsey Other Countries: 6%

$bn

0

5

10

15

20

25

2005 2006 2007 2008 2009 2010 2011 2012f 2013f

Global exploration expenditure

Canada

United States 4%

12%

4% 19%

8%

6%

3%

3%

5%

5%

6%

5% 13% 7%

Argen/na

Brazil

Chile

Peru

Other La/n America

Australia

South East Asia/Pacific Africa

China

Russia

Mexico

Office


For

per

sona

l use

onl

y

Resource capital expenditure forecast to increase

Source: Ci<bank, ANZ Economic Research, Business News America, Mining Associa<on of Canada, Company reports

$bn

0

40

80

120

160

2005 2006 2007 2008 2009 2010 2011 2012f 2013f

Global mining resources capex

8%

$137bn

$10bn

$43bn

$22bn

$75bn

$56bn

$65bn

$5bn $90bn

$18bn

$10bn

Canada

Colombia

Peru

Chile

Argen/na

Brazil

Australia

PNG

Mongolia

Sub-‐ Saharan Africa

West Africa

Office


For

per

sona

l use

onl

y

Ausenco strategically positioned in key markets Evaluate

Innovate

Create

Optimise

Office

1 2

3

4

5 6

7

8

9 10

11 12

13

14

15 16 17

18

19

20 21

22 23 24

25

26

27 29

30

31 32 33

35

34

36 38

39

40

Rio Tinto - Kestrel Newcrest - Wafi Golpu Ma’aden - Ad Duwayhi London Mining - Marampa Teck - Quintette BHP Billiton-Cerro Matoso Ferrous Resources - Viga Anglo American - Mantos Blanco

Vale/Aquila - Isaac Plains Newcrest - Namosi Ma’aden - As Suq African Minerals - Tonkolili SSA Marine - Gateway Pacific Anglo American - Minas Rio Samarco - Iron ore pipeline Teck - Relincho

Kingsgate - Bowden OceanaGold - Didipio Base Resources - Kwale Barrick - Goldstrike Metro Vancouver - Coquitlam Beadall - Tucano Hochschild - Inmaculada Anglo American - Los Bronces

QCoal - Drake Kazakhmys - Bozshakol Barrick - Lumwana IOC - Conveyor upgrade Metro Vancouver - Port Mann MMX - Serra Azul HudBay - Constancia Antofagasta - Los Pelambres

Ok Tedi – Ok Tedi Kazakhmys - Aktogay MDL - Grande Cote Taseko - Gibraltor Cytec – Phosphine plant Bahia Mineração - Artiagua Barrick - Pascua Lama Teck - Quebrada Blanca

38

37

36

39

40

33

32

31

34

35

28

27

26

29

30

23

22

21

24

25

18

17

16

19

20

13

12

11

14

15

8

7

6

9

10

3

2

1

4

5

28

37


For

per

sona

l use

onl

y

In summary

•  Full year performance was above guidance with strong second half •  Ausenco’s focused strategy delivering profitable growth

•  Emphasis on building for long term growth

•  Numerous $0.5 billion plus project starts across Evaluate to Create phase lifecycle •  Solid earnings in second half provides platform for strong operational earnings growth in 2012

•  2012 earnings to reflect modest impact of higher income tax expense and strong AUD

•  Resources and energy sectors fundamentals strong •  Commodities demand remains high

•  Spend on large projects continues to increase •  Significant level of new project and exploration spending

•  Ausenco’s diversity providing growth opportunities •  Strong global work on hand across multiple sectors and clients •  Recent project awards to drive growth in 2012 earnings and beyond

•  Strong balance sheet and operating cash flow provide solid base

•  Well positioned to grow shareholder value


For

per

sona

l use

onl

y

Our diversification strategy is delivering outstanding results and driving our success. We are capitalising on the opportunities in our key markets, delivering ingenious solutions, growing our work on hand and expanding our major mining company client base.

3,100 People

29 Offices

19 Countries

Thank you


For

per

sona

l use

onl

y

ubs emerging companies conference for personal · pdf fileubs emerging companies conference...

Documents