RBS Morgans Annual Queensland Conference 2012
Zimi Meka - Chief Executive Officer, Craig Allen - Chief Financial Officer
10 Oct 2012
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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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Strategy – delivering results
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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
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
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
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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
Energy Environment & Sustainability
Minerals & Metals
Process Infrastructure
Program Management
650 assignments in 2011
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
2012
Revenue
growth
opportunity
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Project phases – extending the project lifecycle offering
Time
Percentages are the illustrative Ausenco revenue share of total project Installed Capital Value (ICV).
Revenues are the illustrative Ausenco 2012 revenue share by project phase.
Cap
ita
l E
xp
en
dit
ure
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
~$160m
~$120m
~$320m
~$50m
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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%
Globally diversified
25% Major
50% Emerging
25% 20 1 1
2006
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Global footprint –
30 offices across 19 countries
Brisbane, Australia
Corporate Office
Asia
Bangkok, Thailand
Beijing, China
Jakarta, Indonesia
Mumbai, India
Australia/South Pacific
Apia, Samoa
Honiara, Solomon Islands
Nuku’alofa, Tonga
Perth, Australia
Port Moresby, Papua New
Guinea
Port Vila, Vanuatu
Sunshine Coast, Australia
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
Salta, Argentina
San Juan, Argentina
Santiago, Chile
8%
Services revenue - by geography
2006
Africa
29% Asia
41% Australia
20% MENA
10%
2012
(1HY) Africa
10% Australia
16% MENA
1% South America
22%
Asia
11%
Central Asia
12%
North America
28%
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A selection of our global projects
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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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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 Queensland, Australia Service Evaluate (PCM) in JV with Worley Parsons Timing Current
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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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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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Antamina Concentrate
Export Terminal
Client Antamina Copper Location Peru Service Planning, design, procurement and construction Value US$2.3 billion
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Strategy and Outlook
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In summary
• 2012 first half performance ahead of guidance
• Ausenco’s focused strategy delivering profitable growth
• Emphasis on building for long term growth
• On track to deliver continued growth through 2013
• Resources and energy sectors continue to provide opportunities
• Ongoing signs of slowing in project approvals in coal and iron ore in Australia
• Clients actively evaluating debottlenecking, optimisation and continuous improvement programs for their operations – provides growth opportunities for Ausenco’s Optimise and Create phase revenue base. Recent Rylson acquisition readily services this market.
• Ausenco’s diversity providing growth opportunities
• Strong global work on hand across multiple sectors and clients – extending into 2014
• Evaluate and Innovate phase work underway by Ausenco on $18.3 billion of projects providing our Create phase pipeline into 2013 and 2014
• Strong balance sheet and operating cash flow provide solid base
• Well positioned to grow long-term shareholder value
• 2012 after-tax earnings guidance upgraded to $41.4 million
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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.
3,450
People
30
Offices
19
Countries
Thank you
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