Full year results 2012 John Grill Overview Good earnings growth - PowerPoint PPT Presentation

Full year results 2012 John Grill

Overview Good earnings growth delivered in FY2012. Sound platform for further growth in FY2013. ► Strong growth in revenue and cash from operations ► 77 significant new major projects and long term contract awards ► Increasing demand for Improve services ► Majority of revenue generated from key global customers ► Increasing footprint in the developing world continues to create significant opportunities ► Growth in staffing to over 40,800 people ► Successful organisation restructure and CEO succession ► Continued commitment to driving improvement in safety 2

Financial highlights FY12 vs. FY11 Statutory Underlying Underlying results results results* Net profit after tax $353 m $346 m 16% Aggregated revenue $7,408 m $7,363 m 25% EBIT $538 m $530 m 12% Operating cash flow $438 m $438 m 49% Basic earnings per share 143.7 c/s 140.6 c/s 16% Final dividend 51.0 c/s Full year dividend 91.0 c/s The IFRS financial information contained within this presentation has been derived from the 30 June 2012 Financial Report which has been audited by Ernst & Young. This presentation however has not been audited. 3 * The underlying result for FY2012 and FY2011 excludes the fair value gain on acquisition of associates of $7.6m and $65.7m respectively.

Safety performance ► We incurred three work related fatalities during the year, two from road accidents and one from a bacterial infection ► Safety remains a major focus in our business ► We strive for year on year improvement but this was not achieved in FY2012 • Total Recordable Case Frequency Rate (TRCFR) was 0.12 (FY2011: 0.11) • Lost Workday Case Frequency Rate (LWCFR) was 0.03 (FY2011: 0.03) ► We are renewing our efforts for continued improvement with company wide focus on • Road safety • Field and construction HSE activities • Project start up activities • Active engagement of our leadership teams in HSE programs 4

Snapshot  Continued growth in Hydrocarbons  Game changing developments and ever and Minerals, Metals & Chemicals growing demand for energy globally is particularly in Canada, Australia and driving unconventional oil and gas the USA  Lower gas prices have sparked a  Hydrocarbons and Minerals, Metals resurgence in petrochemical projects in & Chemicals increasingly dominated the USA by top tier companies  Uplift in asset enhancement and restoration projects 5

Snapshot  Strong focus on major global  Continuing to globalise our customers Minerals, Metals & Chemicals and Infrastructure & Environment  Developing markets continue to be services a significant driver of growth – Latin America, Africa and China  Actively pursuing further Improve opportunities  Infrastructure & Environment focusing on resource infrastructure 6

Local delivery, global support 4.9 million workshare hours (FY2011: 3.4 million) 40,800 people 163 offices 41 countries 7

Significant awards for FY2012 77 long term contracts / projects 8

Improve contracts ► WorleyParsons’ performance continues to be underpinned by our extensive long term contract base Total of 46 new Improve contracts awarded ● 18 contracts renewed ● Currently have over 260 Improve contracts ● ► Our selection was based upon Recognition of our leadership position in ● long term contracts ● Proven safety performance ● Global footprint 4 new global or multi-site agreements 9

Local / global model Model has been well received by our clients and our people 10

Succession ► On 6 July this year we announced changes to the company’s leadership ► Andrew Wood will succeed me as Chief Executive Officer after the AGM in October ► Supported by an exceptional leadership team ► I will be taking on the role of non-executive Chairman early next year 11

Corporate responsibility ► We are on a journey to become a Corporate Responsibility leader by focusing on • Governance, ethics and transparency • Our people • Human rights • Community • Fair operating practices and the supply chain • The environment Kenya Project : Calgary graduates and senior management commissioning clean water and solar power in the Village of Hope Kenya 12

Financial results 2012 Andrew Wood

Financial profile $m FY08 FY09 FY10 FY11* FY12* Aggregated revenue 4,882.4 6,219.4 4,967.1 5,903.5 7,362.6 EBIT 520.0 605.3 427.4 474.2 530.3 EBIT Margin 10.7% 9.7% 8.6% 8.0% 7.2% Net profit 343.9 390.5 291.1 298.5 345.6 Net profit margin 7.0% 6.3% 5.9% 5.1% 4.7% Basic EPS (cps) 142.5 161.1 118.5 121.5 140.6 Cash flow from operating activities 198.8 546.4 279.6 293.8 437.5 ROE 24.5% 25.4% 16.7% 16.3% 18.9% Good growth compared to prior year and 1HFY2012 14 * The underlying result for FY2012 and FY2011 excludes the fair value gain on acquisition of associates of $7.6m and $65.7m respectively.

5 year financial profile  Record aggregated revenue  Good NPAT growth from FY2011 of 16%  Margins impacted by a small number of underperforming projects and low margin procurement activity Effective tax rate down 3% from FY2011 to 24.1% due  to earnings mix and tax refund Cumulative unfavourable FX impact on EBIT over the  last three years of approximately $91m  Dividend payout of 51.0 cents per share, 61% franked Strong revenue growth, good earnings growth 15 * The underlying result for FY2012 and FY2011 excludes the fair value gain on acquisition of associates of $7.6m and $65.7m respectively.

Half on half analysis $m H1 FY2012 H2 FY2012 Total Growth% Group EBIT 248.3 282.0 530.3 14% EBIT margin 7.3% 7.1% 7.2% Group NPAT 151.9 193.7 345.6 28% Half on half NPAT* 250.0 200.0 150.0 H1 H2 100.0 193.7 179.3 151.9 119.2 50.0 - FY11 FY12 16 * The underlying result for FY2012 and FY2011 excludes the fair value gain on acquisition of associates of $7.6m and $65.7m respectively.

Change in net profit after tax FY2011 v FY2012 Good growth in Hydrocarbons, MM&C and I&E 17 * The underlying result for FY2012 and FY2011 excludes the fair value gain on acquisition of associates of $7.6m and $65.7m respectively.

Hydrocarbons  Overall strong performance with record aggregated revenue  Australia West impacted by underperformance on a few projects that have now been finalised or provided for  Canadian construction business awarded a number of significant module construction and construction services contracts  Significant increase in activity in the USA, particularly upstream Growth in USA and Canada 18 1 Regions in constant currency

Power  Record aggregated revenue  Fall in earnings contrary to guidance Resource sector in Australia provided growth   Increased activity in the European nuclear market  Latin America impacted by low margin procurement activity  USA contributes 35% of sector revenue and impacted by the continuing softness and competition in the USA market Impacted by low margin procurement and USA market 19 1 Regions in constant currency

Minerals, Metals & Chemicals  Record aggregated revenue 28% EBIT growth year on year   Continuing to grow our relationships with major global companies Strong commodity prices driving demand for  services  Softness in the Australian market towards the end of the period Record revenue and EBIT 20 1 Regions in constant currency

Infrastructure & Environment Record aggregated revenue   Increased investment in resource projects is driving an increased demand for services  Major projects in the Middle East completed in FY2011  Pit to port projects executed with the Minerals, Metals & Chemicals sector providing growth Record revenue and EBIT 21 1 Regions in constant currency

Cash flow $m FY2008 FY2009 FY2010 FY2011* FY2012* EBIT 520 605 427 474 530 Depreciation and amortization 67 88 92 96 103 Interest and tax paid (137) (216) (186) (125) (152) Working capital / other (251) 69 (54) (151) (43) Net cash inflow from operating activities 199 546 280 294 438 Net cash outflow from investing activities (326) (133) (145) (106) (106) Net cash (outflow) / inflow from financing 101 (317) (175) (136) (252) activities Strong cash flow 22 * The underlying result for FY2012 and FY2011 excludes the fair value gain on acquisition of associates of $7.6m and $65.7m respectively.

Gearing and key metrics Key Metrics FY2009 FY2010 FY2011* FY2012* Gearing ratio 26% 26% 22% 20% Facility utilisation 54% 61% 53% 51% Average cost of debt 5.5% 5.2% 5.7% 5.7% Average maturity (years) 4.1 3.8 4.6 3.8 Interest cover * 14.1x 13.3x 12.0x 12.4x Net Debt/EBITDA * 0.8x 1.2x 0.9x 0.8x Gearing reduced, strong metrics 23 * The underlying result for FY2012 and FY2011 excludes the fair value gain on acquisition of associates of $7.6m and $65.7m respectively.