Half Year 2013 Financial Results - AGC/AusGroup · Half Year 2013 Financial Results ... A process to assist in ... Chevron-operated Gorgon project on Barrow Island (November 2012)

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Half Year 2013 Financial Results 14 February 2013

Mr Laurie Barlow CEO & Managing Director

Mr Anthony Hardwick Chief Financial Officer

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Company Snapshot

AusGroup are currently ranked number 5 in the contractors

category in the WA book of lists. –(WA Business News Book of Lists 2013)

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Our Operating Locations

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Our Clients

AusGroup service a number of the world’s leading blue chip companies across the oil and gas, LNG, infrastructure and resources sectors. We work closely with our clients to plan, build, deliver, maintain and upgrade a range of diverse and challenging projects in the resources and energy industries.

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0.73

0.33

FY12 H1 FY13

Injury Frequency Rates (LTIFR & TRIFR)

TRIFR LTIFR

5.80 5.98

Safety First – H1 FY2013

• Perfect Day philosophy moves away

from traditional mindset, focusing on a

perfect day, one day at a time

• E-colors - A process to assist in

identifying different personality styles,

which enables us to better understand

ourselves and those around us

• Live data monitoring of lead

indicators, focusing and measuring

quality of actions

• On-line on-boarding HSE module

Dampier Incremental

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Highlights H1 FY2013

Financial H1FY13

(Compared to H1FY12)

Operational Strategic

Revenue

12% to AU$306.8M

NPAT

10% to AU$9.1M

Basic EPS

6% to 1.9 CPS

Net cash flow from operating

activities

14% to AU$12.1M

• Order book of AU$308M (as

at 14 February 2013)

• Strong performance – Major

Projects

• Group safety performance –

TRIFR & LTIFR 5.98 & 0.33

respectively

• Personnel numbers at 2,667

• Ongoing roll-out of Oracle E-

Business Suite

• Establishment of common

Project Delivery systems -

Primavera

• Regional expansion to

Queensland

• Establishment of project

management and business

management training

schemes

• Sole ASX listing

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Financial Summary

AU$ millions – unless otherwise mentioned H1FY13 H1FY12 % Change

Revenue 306.8 274.4 12%

Earnings before Interest, Tax, Depreciation & Amortisation (EBITDA) 21.8 21.9 1%

Earnings before Interest and Tax (EBIT) 14.4 14.4 No change

Profit after Tax 9.1 8.3 10%

Basic Earning per Share - Weighted Average Shares (AU$ cents) 1.9 1.8 6%

EBITDA Margin (%) 7.1% 8.0% 11%

EBIT Margin (%) 4.7% 5.2% 10%

Net Margin (%) 3.0% 3.0% No change

Interest Cover (Times) 13.6 7.8 75%

31-Dec-12 30-Jun-12 % Change

NTA per Share - Period End Shares (AU$ cents) 34.9 34.1 2%

NTA per Share - Period End Shares (SGD cents) 45.2 44.1 3%

Current Ratio (Times) 1.6 1.5 7%

Quick Ratio (Times) 1.1 1.1 No change

Net Debt to Equity ratio (%) 3.1% 3.7% 16%

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Historical Financial Performance

20.5

16.6

17.2

21.9

21.8

H1FY09

H1FY10

H1FY11

H1FY12

H1FY13

EBITDA (AU$M)

9.3

6.3

5.8

8.0

7.1

H1FY09

H1FY10

H1FY11

H1FY12

H1FY13

EBITDA Margin (%)

10.8

5.1

5.1

8.3

9.1

H1FY09

H1FY10

H1FY11

H1FY12

H1FY13

Net Profit After Tax (AU$M)

2.7

1.3

1.3

1.8

1.9

H1FY09

H1FY10

H1FY11

H1FY12

H1FY13

Earnings per Share (Aus cents)

260.5

159.7

298.8

274.4

306.8

H1FY09

H1FY10

H1FY11

H1FY12

H1FY13

Revenue (AU$M)

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Revenue Contribution

Contribution by division Contribution by sector Contribution by geography

AU$478M AU$367M AU$602M

60% 53%

40% 32%

48%

30%

19%

17%

18%

22%

10%

28%

43% 50%

30%

FY09 FY10 FY11 FY12 H1FY13

Integrated Services

Fabrication & Manufacturing

Major Projects

AU$632M AU$478M AU$367M AU$602M AU$632M

94% 89%

93% 95% 93%

6% 11%

7% 5% 7%


I Australia Asia

36%

56% 55% 55%

32%

64%

44% 45% 45%

68%


Oil & Gas Mineral Resources

AU$478M AU$367M AU$602M AU$632M AU$307M AU$307M AU$307M

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Recruiting and training the best people

• Strategy in place to find the best people

domestically and globally

• Structured recruitment process in place to ensure

all due diligence is completed on new personnel

• Recruitment team aligned to the business

structure

• Average of 240 personnel recruited per month for

2011/2012 – highest rate at 434 in 1 month

• Priority placed on retaining AGC people from

project to project

• We make the de-mobilising on projects as

important as on-boarding

Brockman

Our People

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Our People

People Performance

• Training pathways to optimise the potential of our

people with experienced in-house support

• Experienced people capital and industrial relations

teams supporting all personnel

• Award-winning Aboriginal & Torres Strait Islander

programme, supporting both AGC personnel and

local communities

• Confidential employee assistance programme

• Professionally developed performance review

process

83%

10% 7%

Geographic Breakdown

Australia

Singapore

Thailand

1,704

2,471

2,135

2,778 2,667

FY09 FY10 FY11 FY12 H1 FY13

Employee Numbers

83%

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Business Highlights

Oil & Gas, Mining & Industry

Chevron-operated Gorgon project on Barrow Island (November 2012)

• Continued integration of Subsea

Pressure Controls, Singapore

• Secured further work on Chevron

Gorgon pipe spools

• Over AU$17M of scaffolding and

associated services projects awarded

to MAS

• AU$13M Fugro –TSM subsea spools

contract on Woodside’s Greater

Western Flank project

• Ongoing works with Apache Energy

Limited

• Strong focus on LNG sector for 2014

and beyond

• Jimblebar Project – construction

officially commenced September

2012

• AGC awarded ‘Sub-contractor of the

month’ for exceptional performance

on Binningup desalination plant

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Outlook

Tenders and tracking - 12 – 36 months forward looking

Oil & Gas

• Gorgon (LNG)

• Wheatstone (LNG)

• Ichthys (LNG)

• APLNG

• GLNG

• QCLNG

Mineral Resources

• Roy Hill (iron ore)

• QAL (allumina)

• Western Turner (iron ore)

• Syncline Stage 2 (iron ore)

• Tan Burrup (ammonium

nitrate)

Pipe spools, AGC Kwinana Workshop

Pipe spools, AGC Kwinana Workshop

58%

41%

1%

Over AU$4.5 Billion worth of tenders submitted

Oil & Gas

Mining & Resources

Infrastructure

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Market Conditions

11 ‘mega’ projects worth $201b,

or 76% of total $268b

• Jimblebar

• Sino Iron

• Gladstone LNG

• Queensland Curtis LNG

• Australia Pacific LNG

• Wheatstone LNG

• Ichthys LNG

• Gorgon LNG

Number and Value of Committed Stage Projects

LNG, Oil, Gas $195b 73%

Iron Ore $26b 10%

Infrastructure $25b 9%

Other $22b 8%

Total $268b 100%

Source: Bureau of Resources and Energy Economics, Resource and Energy Major Projects Publication, October 2012

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Market Conditions

• Record mining capital expenditure in 2011-12 of

$82.1b, up 68% on 2010-11

• Forecasted growth of 45% in 2012-13 to $119b

Australian Mining Capital

Expenditure

Number of Resource & Energy Projects by

Stage

27%

44%

23%

6%

PubliclyAnnounced(>$91b)

FeasabilityStage ($292b)

CommittedStage ($268b)

Completed($12b)

Committed Stage Projects by Region

19%

25%

46%

5%

2% 2% 0% 1%

NSW (18.4%)

QLD (25.3%)

WA (46%)

NT (4.6%)

SA (2.3%)

VIC (2.3%)

TAS (0%)

Other* (1.1%)


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Market Conditions

Committed Stage Projects By Location


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The Road Ahead

• Western Australia, Northern

Territory and Queensland

are growth regions

• Increased investment in

LNG and unconventional

gas

• Barriers for entry into

construction remain high

• Projects are becoming

larger and more complex

• Desire for integrated service

provider

• Iron Ore price on the rise

Significant trends and

competitive conditions

Halyard Wing Deck Loadout

Karara Early Works

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The Road Ahead - Summary

Outlook longer term – Growth

Initiatives:

• Increased maintenance

opportunities as projects

are completed

• Very early stages of large

scale projects (3 to 4 years

of strong market remain)

• Promising outlook for iron

ore and coal project

pipeline

• LNG construction

opportunities remain

buoyant

Karara Early Works

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Summary

• Buoyant market conditions,

providing a strong project pipeline

from 2014 onwards

• Healthy financial position and

robust order book

• Company structure has been

realigned to increase cross-selling

opportunities

• Company well positioned to take

advantage of opportunities as we

position ourselves for growth Brockman

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Appendix Additional Information 14 February 2013

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Who We Are

Grant Pestell

Independent Non-Executive Director

Dr Chew Kia Ngee

Independent Non-Executive Director and

Chairman

Damien O’Reilly


Laurie McGregor Barlow

Chief Executive Officer and Managing Director

Stuart Maxwell Kenny

Non-Independent Non-Executive Director

Barry Alfred Carson

Non-Independent Non-Executive Director

Kok Pak Chow


Kelvin Lee Kiam Hwee


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Project Snapshot

Binningup Desalination Plant Project Client: Southern Seawater Alliance

Location Kwinana, WA

Contract Value AU$26.5 million

Contract Period Sept 2012 - Current

Scope of Work De-bottlenecking project

involving construction and installation of

all structural, mechanical, piping, electrical

and instrumentation works associated with

the upgrade to the PP2 facility. AGC will

also supply pipe spooling and fabricated

plate requirements for this project.

CSBP AN3 PP2 Expansion Project Principal: CSBP / PCM: AECOM

Location Jimblebar, WA

Contract Value AU$48.8 million

Contract Period June 2012-Current

Scope of Work The new 35 Mtpa ore

handling facility at Jimblebar will involve

the construction of a primary crusher to

Run of Mine (ROM) ore from the

surrounding Jimblebar Ore bodies and a

3.4km overland conveyor (OLC) system

to transfer primary crushed ore to the

coarse ore stockpile.

Location Binningup, WA

Contract Value AU$30 million

Contract Period March 2011-Current

Scope of Work Structural, mechanical

and piping installation of the main

facility as well as fabrication of the

secondary steelwork. As well as

painting, fireproofing and protective

coatings and the expansion to a 100GL

per year capacity.

Jimblebar SMP Project Client: BHP

Location North-west coast of WA


Contract Period Jul 2011-Current

Scope of Work Fabrication, supply,

testing, inspection, storage and

delivery of adjustable pipe support

structures weighing in excess of 900

metric tonnes.

Gorgon Adjustable Pipe Supports Fabrication Client: Chevron Australia

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Project Snapshot

Location Cloudbreak, WA


Contract Period Nov 2011-Current

Scope of Work The scope includes the

addition of; a front end circuit of wet

scrubbing and screening; new desands

module and tails thickening; tailings

transfer and modifications to the

existing desands modules for the

Cloudbreak Enhancement Project at

Fortescue's Cloudbreak mine site.

Cloudbreak Engineering Procurement & Construction Client: Fortescue Metals Group

Location Karara, WA


Contract Period March 2011-Current

Scope of Work Structural, mechanical

and piping installation works at the

company’s iron ore process plant. The

contract involves all mechanical

disciplines, scaffolding,

rigging and procurement for the main

Process Plant.

Karara Main Works Contract Client: Karara Mining / Operator: Gindalbie Metals

Dampier Incremental Expansion Project Client: Rio Tinto

Location: Parker Point, Dampier, WA

Contract Value: AU$33 million

Contract Period Sept 2011 – Aug 2012

Scope of Work: The contract consists of

the construction of two new surge bins,

installation of two new belt feeders, two

new conveyor sections, two new transfer

stations and various other modifications to

existing conveyors.

Location: Tom Price, WA

Contract Value: AU$22 million

Contact Period Sept 2011 – June 2012

Scope of Work: The design, supply,

manufacture, delivery, installation,

construction, testing and commissioning

of a low grade iron ore pilot plant (LGPP)

at the Brockman 4 Mine. AGC’s scope is

inclusive of structural, mechanical,

piping, electrical and instrumentation.

Brockman 4 Low Grade Pilot Plant Project Client: Hamersley Iron Pty Ltd

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Project Snapshot

Location North West Shelf, WA

Contract Value AU$14 million per

annum

Contract Period Jan 2010-Current

Scope of Work General and

campaign services, and minor capital

works at Apache’s Varanus Island

facilities and offshore assets. The

scope involves all mechanical

disciplines, sheet-metal fabrication,

insulation, scaffolding, rigging and

electrical and instrumentation.

Apache Integrated Services Contract Client: Apache Energy Limited

Location Pinjarra, Kwinana & Wagerup, WA

Contract Value AU$12 million per annum

Contract Period 2007-Current

Scope of Work Multidiscipline

maintenance shutdown support services to

Alcoa’s Alumina Refineries in WA.

Additional to the planned and unplanned

shutdowns on the calcination circuits, AGC

was also awarded capital work upgrades

and refurbishment projects which included

fabrication and onsite installation at the

Pinjarra and Wagerup refineries.

Alcoa Calciner Maintenance Contract Client: Alcoa Alumina Australia

Location Karratha, WA


Contract Period Apr 2010-Current

Scope of Work Painting and insulation

works for the Pluto LNG onshore plant.

The scope of work includes the supply

and installation of all insulation,

cladding and ancillary materials;

fabrication and application of cladding

products; and painting and fireproofing

coatings of the storage tanks and

associated utilities, pipelines and jetty

facilities.

Pluto LNG Scaffolding, Painting & Insulation Client: FWW / Operator: Woodside

Location North-west coast of WA


Contract Period Jul 2011-Current

Scope of Work The manufacture of pipe

spools for the Gorgon Project, The

scope of work covers receiving material,

fabrication, storage, coating and testing

of 19,000 pipe spools of various

diameters, weighing approximately 7,500

tonnes.

Gorgon Pipe Spools Fabrication Client: Chevron Australia

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Disclaimer

The information in this presentation:

• Is not an offer or recommendation to purchase or subscribe for securities

in AusGroup Limited or to retain any securities currently held

• Does not take into account the potential and current individual investment

objectives or the financial situation of investors

• Was prepared with due care and attention and is current at the date of the

presentation

• Actual results may materially vary from any forecasts (where applicable)

in the presentation.

Documents

Half Year 2013 Financial Results - AGC/AusGroup · Half Year 2013 Financial Results ... A process to assist in ... Chevron-operated Gorgon project on Barrow Island (November 2012)