morgan stanley emerging companies conference 2012 for
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Morgan Stanley Emerging Companies Conference 2012
Zimi Meka - Chief Executive Officer 13 June 2012
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Safety moment
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Strategy – delivering results
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Onsite engineering and operations and maintenance support services Optimise
Front end engineering and design service (FEED) Innovate
Pre-feasibility, feasibility and conceptual design services Evaluate
Engineering, Procurement, Construction Management (EPCM) and Engineering Procurement Construction (EPC) contracts Create Create
Optimise
Innovate
Evaluate
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
• 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
Program Management
• Program and project management
• Procurement • Logistics • Construction
management • Stakeholder
relations management
• Statutory approvals management
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Our Business lines
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• Reaffirm guidance on $40 million NPAT for 2012
• People numbers are 3,300 up over 20% from same time next year.
Environment and Sustainability 7%
Program Management 9%
Energy <1%
Minerals and Metals 56%
Process Infrastructure 28%
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Our Phases
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0
100
200
300
400
500
600
700
2007 2008 2009 2010 2011
$m Revenue by solutions phase
Evaluate Innovate Create Optimise
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Minerals & Metals
Our business in 2007
52 assignments in 2007
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Minerals Processing = 10 - 30% of total project ICV
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Our business in 2012
Energy Environment & Sustainability
Minerals & Metals
Process Infrastructure
Program Management
650 assignments in 2011
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Minerals Processing = 10 - 30% of total project ICV
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2007
M&M Business 2007
(Process Plants: Africa, Australia,
Asia)
M&M Business
2007
North/South America
New Geography
M&M Business
2007
North/South America
New Geography
New service sectors
(E&S, Rail, Port, Pipelines)
M&M Business
2007
North/South America
New Geography
New service sectors
(E&S, Rail, Port, Pipelines)
Service sectors more
Create work
M&M Business
2007
North/South America
New Geography
New service sectors
(E&S, Rail, Port, Pipelines)
Service sectors more
Create work
Larger client base
M&M Business
2007
North/South America
New Geography
New service sectors
(E&S, Rail, Port, Pipelines)
Service sectors more
Create work
Larger client base
Larger projects
Growth through diversity 2011
Revenue growth opportunity
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Project phases – extending the project lifecycle offering
Time
Illustrative Ausenco revenue share of total project Installed Capital Value (ICV) in 2011.
Cap
ital E
xpen
ditu
re
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Project Management
Create
2 - 4%
Construction Management
6.5 - 12.5%
Detailed Engineering
Innovate
1.5 - 3.5%
FEED Engineering
1 - 1.5%
Feasibility Study
0.5 - 1%
Exploration
Evaluate
Optimise
Operations & maintenance
$153.2m
$112.2m
$244.2m $38.3m
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Balanced, sustainable returns across the full project lifecycle
Activities Pre-feasibility, feasibility and
conceptual design services
Front end engineering and design services
(FEED)
Engineering, Procurement, Construction Management (EPCM) and Engineering Procurement Construction
(EPC) contracts
Onsite engineering, operations
and maintenance support services
Typical contract duration 3 - 12 months 6 - 18 months 2 - 4 years 4 - 5 years
FY 2011 Revenues $m 153.2 112.2 244.2 38.3 CAPEX $bn 18.2 2.0 4.1* -
• Evaluate and Innovate - Over $265 million in baseline revenues from client pre construction phases
• Create phase project delivery revenues provide medium term visibility and expected to grow as client capital commitments firm
• Strategic focus on cross-selling and broadening service capacity and increasing Create phase EPCM / EPC revenues
• Optimise revenue growing strongly and providing a stable recurring revenue stream
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Optimise Create Innovate Evaluate
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People
Time
Total installed cost ($’millions)
Optimise
Create
Innovate
Evaluate
$1000m
<50/annum >100/annum >300/annum
30 - 50 250 - 750 1000+
20 - 40 50 - 100 200
5 - 25 30 - 60 100
Multi $1000m $100m
High
Low
Size of project
Number of people deployed
Predictability of revenue
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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
Globally diversified 5%
Major 32%
Emerging 63%
Globally diversified 25%
Major 50%
Emerging 25%
20 1 1 2006
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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 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%
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Ausenco today – global, diversified, strong
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Service revenues – by commodity
2%
Agricultural chemical feedstock
Base metals 24%
Coal 21%
Iron Ore
21%
Precious metals
24%
Mineral sands
3%
Chemicals
1% Energy
2% Environmental
1%
Other
1%
2011
2006 Other
3% 24% Base metals
51%
Precious metals
$547.9m Revenue 2011
2006: $144.4m
3,300 People
2006: 770
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A selection of our global projects
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Quintette Coal Project
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Client Teck Resources Limited Location Canada Service Create (EPCM) Timing Current For
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Constancia Copper 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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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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Pascua Lama Tailings Storage Facility
Client Barrick Gold Corporation Location Chile/Argentina border Service Engineering 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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Alpha Coal Project
Client GVK/Hancock Coal Location QLD, Australia Service Evaluate (PCM) in JV with Worley Parsons Timing Current
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Strategy and Outlook
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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.
3,300 People
29 Offices
19 Countries
Thank you
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