Plan Design Enable WS Atkins plc
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The Atkins Group is performing well financially. It has around 18,000 staff working globally, with its largest markets being the UK and North America. Atkins provides engineering, design, project management and consulting services across multiple sectors such as transportation, water, environment and energy. It has a strategy of focusing on high-quality services while expanding into new markets and sectors with significant growth potential like mass transit, nuclear and renewables.
Plan Design Enable WS Atkins plc
- 1. WS Atki plc Atkins l Overview March 2011
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- 3. The Group is performing well (1) • Atkins is a multinational engineering consultancy global design firm (2) • The eleventh largest g g g “We remain confident for the • Around 18,000 staff full year despite • “The Group's financial position remains strong” (1) challenging • “We are investing in growth markets and trading continue to benefit from our geographic and conditions in a sector diversification (1) diversification” number of our • “Robust longer-term outlook” (3) markets.” (1) (1) Q3 2010/11 Interim Management Statement 16 February 2011 (2) Engineering News Record 26 July 2010 (3) Cazenove research note 16 February 2011 3
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- 5. 1. Group overview 2. Strategy 2 St t 3. Financial performance 4. Example projects 5
- 6. What we do Plan Design Enable From cost and risk Atkins designs intellectual Our clients entrust us with planning, feasibility studies capital such as the management of and logistics, to impact management systems and projects, people and issues assessments and business processes. We – ensuring that deadlines stakeholder engagement also design physical are met, costs are activity, we plan every ti it l structures such as office t t h ffi controlled and success i t ll d d is aspect of our clients’ towers, schools, bridges delivered. projects. and highways. 6
- 7. Who we are Atkins is one of the world’s leading engineering and design consultancies. We have the depth and breadth of expertise t respond t th f ti to d to the most technically challenging and time-critical infrastructure projects and the urgent transition to a low-carbon economy. 7
- 8. Atkins has quality, breadth and depth Architecture Airports & Ports Asset Management Aerospace Building Design Building Surveying g y g Climate Change Communication & Systems Cost & Project Management Defence Development Infrastructure Environment Services Energy Landscape & Heritage Highways Intelligent Transport Systems Management Consultancy Rail & Metro Transport Operations & Safety Transport Planning Urban Light Transit Urban Planning Water 8
- 9. Atkins at a glance Revenue by geography Revenue by client type UK 54% Public Sector: National Government 20% Europe 4% Public Sector: Local Government 35% Middle East 8% Regulated 13% Asia Pacific 4% Private Sector 32% North America 30% Note: Approximate percentages are of total Group proforma revenue including a full year’s revenue from PBSJ (acquired 1 October 2010). 9
- 10. The Group’s diversified exposure to end markets provides resilience Defence/Security 4% 1% Aerospace p % 1% Education 1% 1% Roads 6% 8% 2% UK Rail 2% 8% 1% Water/Environment 1% 1% 2% 2% Energy 2% 2% Facilities management 3% Other 2% 1% 1% 2% Defence/Security 1% 1% Aerospace 1% 1% Roads 7% 2% North Water/Environment 2% 2% 1% America Energy 2% CMaR 1% 5% Other 2% 2% Middle East 1% 7% Asia Pacific 2% 2% Public Sector National Government Public Sector Local Government Europe (ex UK) 2% 1% 1% Regulated Private Approximate percentages are of total Group proforma revenue including a full year’s revenue from PBSJ (acquired 1 October 2010) CMaR – Construction Management at Risk 10
- 11. Segmental performance UK We deliver engineering and technically integrated H1 FY design as well as project and cost management 2010/11 2009/10 services to a wide range of clients in the public, Financial metrics regulated and private sectors. Revenue £454.7m £983.5m Our areas of operation include water environment water, environment, Operating profit £30.9m £77.3m education, aerospace, defence and infrastructure design as well as significant activity in transportation Operating margin 6.8% 7.9% sectors. In highways, we provide transport planning, advising UK Government and highway authorities on transport policy and investment appraisals; the design of road improvements; applying intelligent transport systems to enhance network performance; and delivering integrated road network management and highway maintenance services. Our rail business provides specialist design services across a range of engineering disciplines, including signalling, civils, electrification and specialist services in strategic planning safety and systems integration planning, principally for heavy rail, rolling stock and metro markets. 11
- 12. Segmental performance North America In the US, we provide infrastructure planning, H1 FY engineering, construction management, 2010/11 2009/10 environmental consulting, urban planning, Financial metrics architecture and programme management services to state and local government clients, Federal agencies Revenue £27.5m £55.0m and private businesses businesses. Operating profit £1.6m £3.4m In the transportation sector we provide engineering Operating margin 5.8% 6.2% design and programme management services for ground, rail, aviation and marine transportation projects for both private and public sector clients. Important note: The figures for the periods shown are as published and include no contribution from PBSJ (acquired 1 October 2010). Our water and environment business delivers environmental services, including siting, compliance and resource management services together with water and water resources projects. In the buildings sector we provide engineering, planning, architecture, surveying and construction management services to public and private clients. 12
- 13. Segmental performance Middle East In the Middle East, we provide a full range of design, H1 FY engineering and project management services for 2010/11 2009/10 buildings, transportation and other infrastructure Financial metrics programmes from our nine centres across the region. Revenue £70.5m £136.6m We deliver services to public sector bodies such as Operating profit £8.1m £14.0m transport authorities, municipal bodies and planning councils as well as the private sector. Operating margin 11.5% 10.2% We are continuing to move from established sectors such as residential and commercial high rise building to developing new sectors such as transport (airports and rail), infrastructure (mixed use and water), health, defence and energy. 13
- 14. Segmental performance Asia Pacific and Europe In our Asia Pacific business we provide engineering, H1 FY planning, urban design, architectural and rail design 2010/11 2009/10 services. Financial metrics In mainland China our focus is on urban planning Revenue £73.4m £148.8m together with architectural and landscape Operating profit £4.0m £7.4m architectural design. Operating margin 5.4% 5.0% In Hong Kong we deliver services in urban rail development and highways/bridges design. Our European business comprises operations in Denmark, Sweden, Poland, Portugal and Ireland. Of these, Scandinavia is a key market in which we provide rail and urban planning services. 14
- 15. Segmental performance Energy We are engaged in, and actively growing our H1 FY capability for, all aspects of the developing energy 2010/11 2009/10 market with the allied issues of climate change, Financial metrics sustainability and energy security. Revenue £47.7m £82.0m In electricity generation we are helping both Operating profit £4.0m £8.4m conventional and nuclear sectors maintain output and extend the life of assets, and we are engaged in Operating margin 8.4% 10.2% planning and enabling the next generation of nuclear power stations as well as providing support in decommissioning. In the oil and gas industry we provide design and integrity management services with activity at all stages of the value chain. We are also active in the energy efficiency and renewable markets, providing a comprehensive range of services in all aspects of renewable energy technology, from initial feasibility studies through to detailed engineering. 15
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- 17. 1. Group overview 2. Strategy 2 St t 3. Financial performance 4. Example projects 17
- 18. Positioned for Growth Strategy Clear multi-skill, multi-local strategy Capability C bilit Continuing focus on quality Opportunity Platforms for growth 18
- 19. Our multi-skill, multi-local strategy has three priorities High performing To have a portfolio of high performing businesses Each business to continue to improve the quality of its skills in its local businesses markets, developing capabilities and driving efficiencies – forging deep client relationships. Addressing To have the breadth and depth of skills to address increasingly complex projects, increasing revenue in priority sectors attractive Maintaining or acquiring strong technical skills in robust markets and g q g g markets focusing resources from across the whole Group on exploiting opportunities in sectors such as mass transit, nuclear and renewables. Market To have several home markets where the business is market leader opportunities Organic investment and acquisitions to strengthen our market position in our existing geographic markets and elsewhere. 19
- 20. Progressing to address opportunities People People c.18,000 c.18,000 Group Strategy Executive Group Organisation Organisation AP Energy DES H&T Rail ME C&E MPS AM UK NA ME &E Revenue Revenue UK UK Europe Europe Middle East Middle East Asia Pacif ic Asia Pacif ic North America North America 2008 2011 20
- 21. Focused actions Action Example Group actions Repositioning for UK ongoing market Redeployment Carbon tools challenges + North Platform PBSJ America for growth acquisition Network chairs Geographic Middle Successfully expansion and sector adding skills + East diversification Process Bridge g enhancements Asia Pacific A i P ifi Improving quality engineering and Europe and margin acquisition + Nuclear JV Energy Investing for growth I ti f th Skill t transfer f with Assystem 21
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- 23. 1. Group overview 2. Strategy 2 St t 3. Financial performance 4. Example projects 23
- 24. Flexing resources to reflect anticipated market d ti i t d k t demand d 20 18 16 14 12 ‘000 10 8 6 4 2 0 Mar 05 Sep 05 Mar 06 Sep 06 Mar 07 Sep 07 Mar 08 Sep 08 Mar 09 Sep 09 Mar 10 30 Sep 1 Oct 10 10 People 24
- 25. Being the right size 1,600 Full year: Non UK revenue Non-UK 1,400 Full year: UK revenue First half revenue 1,200 1,000 £m 800 600 400 200 0 2005 2006 2007 2008 2009 2010 2011 Year ended 31 March 25
- 26. Improving the business – our focus on margin Full year operating profit 140 First half operating profit 8% Operating margin 120 7% 6% 100 £m 5% 80 4% 60 3% 40 2% 20 1% 0 0% 2005 2006 2007 2008 2009 2010 2011 Year ended 31 March 26
- 27. 1. Group overview 2. Strategy 2 St t 3. Financial performance 4. Example projects 27
- 37. Disclaimer The information in this presentation pack which does not purport to be comprehensive has been provided by Atkins, and has not been independently verified. While this information has been prepared in good faith, no representation or warranty, express or implied, is or will be made and no responsibility or liability is or will be accepted by Atkins, as to or in relation to the accuracy or completeness of this presentation pack or any other written or oral information made available as part of the presentation and any such liability is expressly disclaimed Further whilst Atkins may disclaimed. Further, subsequently update the information made available in this presentation, we expressly disclaim any obligation to do so. The presentation contains indications of likely future developments and other forward-looking statements that are subject to risk factors associated with, among other things, the economic and business circumstances occurring from time to time in the countries, sectors and business segments in which the Group operates. These and other factors could adversely affect the Group’s results, strategy and prospects. Forward-looking statements involve risks, uncertainties and assumptions. Th relate t events and/or d d ti They l t to t d/ depend on circumstances i th f t d i t in the future which hi h could cause actual results and outcomes to differ. No obligation is assumed to update any forward-looking statements, whether as a result of new information, future events or otherwise. 64