Goldman Sachs Emerging Companies Conference For personal ... · gas recovery • Laboratory & field...

Craig Allen - Chief Financial Officer

16 May 2012

Goldman Sachs Emerging Companies Conference

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“ 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 ”

Goldman Sachs Emerging Companies Conference | 16 May 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:

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• 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


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Create

Optimise

Innovate

Evaluate

Our offering

Minerals& Metals

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

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

ProcessInfrastructure

• Ports, marineand offshore

• Long distance slurry and liquid pipelines

• Paste and tailings disposal systems

• Materials handling• 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

• Landfill design and gas recovery

• 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

ProgramManagement

• Programand project management

• Procurement• Logistics• Construction

management• Stakeholder

relations management

• Statutory approvals management


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Minerals &Metals

Minerals &Metals

Our business in 2007

52 assignments in 2007

Minerals Processing

= 10 - 30% of total project

ICV


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Our business in 2012

EnergyEnergyEnvironment & Sustainability

Environment & Sustainability

Minerals &Metals

Minerals &Metals

Process Infrastructure

Process Infrastructure

Program Management

Program Management

650 assignments in 2011

Minerals Processing

= 10 - 30% of total project

ICV


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Global footprint –29 offices across 19 countries

Brisbane

Corporate Office

AsiaBangkok, ThailandBeijing, ChinaJakarta, Indonesia Mumbai, India

Australia/South PacificAdelaide, AustraliaApia, SamoaBrisbane, AustraliaHoniara, Solomon IslandsNuku’alofa, TongaPerth, AustraliaPort Moresby, Papua New Guinea Port Vila, VanuatuSuva, Fiji

OfficesMiddle EastJeddah, Saudi Arabia

North AmericaBurlington, CanadaCalgary, CanadaConcord, USADenver, USAHouston, USAMontréal, CanadaReno, USAToronto, CanadaVancouver, Canada

South AmericaBelo Horizonte, BrazilBogotá, ColombiaLima, PeruMendoza, ArgentinaRio de Janeiro, BrazilSantiago, Chile

8

%

Services revenue - by geography

South

2011

2006

Africa

13%Asia

13%NorthAmerica

19%

CentralAsia

2%

MENA

2%Australia

23%America

28%

Africa

29%Asia

41%Australia

20%MENA

10%


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Ausenco today – global, diversified, strong

Service revenues – by commodity

2%

Agriculturalchemicalfeedstock

Basemetals

24%Coal

21%Iron Ore

21%

Preciousmetals

24%

Mineralsands

3%

Chemicals

1%Energy

2%Environmental

1%

Other

1%

2011

2006

Other

3%24%

Basemetals

51%

Preciousmetals

$547.9m

Revenue

2006: $144.4m

3,180

People

2006: 770

$4.1bn

Create phase –Work Under Management

2006: $1.9bn


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Ausenco today –Growth delivers improved 2011 financial results

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

290.7 257.2 � Revenue from operations 547.9 513.4 �

30.2 16.7 � Underlying EBITDA 46.9 10.6 �

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

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

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

18.7 7.7 � Underlying earnings 26.4 0.8 �

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

37.5 (26.1) � Operating cash flow 11.4 23.1 �

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

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

Service revenue by business line

Environment andSustainability

7%

ProgramManagement

9%

Energy

<1%

Mineralsand Metals

56%

ProcessInfrastructure

28%


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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 3,180 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 Q1 2012, we have been awarded more than $130 million of new revenue across more than 50 projects contributing to solid work on hand

• In 2012, after tax earnings of $40 million targeted – modestly biased to the second half reflecting anticipated business growth


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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


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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

Emerging

63%

Globallydiversified

25%Major

50%Emerging

25%2011

2006


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A profile of our global projects


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Kestrel Mine Expansion

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


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Quintette Coal Project

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


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ConstanciaCopper Project

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


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Bozshakol Copper Project

Client Kazakhmys plc Service Create Timing Current


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Minas-Rio Iron Ore Project, Brazil

Client Anglo Ferrous Brazil Location Brazil Service Evaluate Timing Current ICV US multi billion

Pit to port solution


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Centerm Container Terminal Redevelopment Project

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


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Engineering solutions for platforms in Arctic temperatures

Orlan Platform

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


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Los BroncesThickened Copper Ore Pipeline

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


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Pascua Lama Tailings Storage Facility

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


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False Creek Energy Centre

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


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Grasmere Wind Farm

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


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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


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Alpha Coal Project

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


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Strategy and Outlook


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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 States4%

12%

4% 19%

8%

6%

3%

3%

5%

5%

6%

5%

13% 7%

Argentina

Brazil

Chile

Peru

OtherLatin America

Australia

South East Asia/Pacific

Africa

China

Russia

Mexico

Office


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Resource capital expenditure forecast to increase

Source: Citibank, ANZ Economic Research, Business News America, Mining Association 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

Argentina

Brazil

Australia

PNG

Mongolia

Sub-Saharan

Africa

West Africa

Office


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Ausenco strategically positioned in key marketsEvaluate

Innovate

Create

Optimise

Office

12

3

4

5

6

7

8

910

1112

13

14

15

1617

18

19

20

21

22

2324

25

26

27

29

30

3132

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


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In summary

• 2011 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


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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.

3,180

People

29

Offices

19

Countries

Thank you


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Goldman Sachs Emerging Companies Conference For personal ... · gas recovery • Laboratory & field...

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