Positioned for Global GrowthRichard Leupen, Managing Director and CEOMacquarie Australia Conference, Sydney3 May 2012
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Strategic Overview
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UGL Today
Marketcapitalisation Our
values
Sectors Geography Customers Services
A service company focussed on outsourcing, andsupporting essential infrastructure, resources and property assets
safety, integrity, outstanding customer service, teamwork, honesty and openness in communication
• Technology partners• Alliance or
risk-sharing contracts• EPCM• Global coverage• PPPs
• Power• Rail• Resources• Property• Transport• Water
• Australia & New Zealand
• Asia• Middle East• North America
• Government• Blue-chip companies• Institutions
• Project management• Engineering design• Construction• Fabrication• Asset management• Operations• Maintenance• Corporate real estate• Facilities management
A$2.2BPeople(including contractors) 55,000FY11 revenue A$4.6B
Delivery method
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Our Strategic Journey
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Drivers for Growth
Sector Leadership
• Resources• Power• Water• Rail• Transportation• Property
Risk Management
• Robust systems and processes• Alliance and cost-plus contracts• Blue chip and government clients• Sensible, balanced trading terms• Geographic diversification
Financial Strength
• Strong balance sheet• Low capital intensity• Robust cash flow• Flexibility to grow
Sustainable Earnings
• Balanced recurring revenues• Long term capital works alliances• Diverse earnings streams• Strong order book• Solid opportunity pipeline
Market Leadership
• People• Safety• Technology partnerships • Intellectual property • Outstanding customer service
UGLStrategy
Business Positioning
• Exposure tolong term growth trends
• Significant market opportunities• Strong technical component• World class technology• End to end solutions
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Key Areas of Strategic Focus
Property Integration
• Becoming the world’s third largest property services company• Capitalising on unique service offering• Leveraging exposure to Asia and US recovery
• Core values remain unchanged• Remain vigilant on cost management• Significant investment in people and systems ongoing• Risk management framework critical to support sustainable growth
• Global trend towards public and private sector outsourcing expected to grow and endure
• New operational structure will enhance our ability to be a significant participant in the outsourcing of essential services
• Realigning into 3 business units from 1 July 2012: Engineering, Operations & Maintenance (incl. Defence), Property
• Enhance market focus and delivery across key sectors• Building world class competencies in project and programme management
Business Realignment
Global Outsourcing
Core Foundations
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DTZ - Already Delivering Momentum
Global Footprint
• Expanded footprint covering the UK, Europe and Asian markets• Increased exposure to high growth markets especially China, India and
Singapore
• Over $300 million in new wins across the combined property services business since acquisition
• Significant momentum in tendering activity for global mandates
• Collaboratively working across regions and clients to secure new wins• Key revenue generators retained• Business improvement plans on-track• Targeting industry average EBIT margins within 18-24 months• Potential rebranding to DTZ progressing
• Self perform versus agency model• Truly integrated end-to-end service offering to clients globally and to global
clients seeking a single solutions provider• Combined platform being well received by clients• All key clients retained and new clients engaged
Differentiation From Peers
Win Momentum
Business PerformanceF
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Key DTZ Wins Since Acquisition
• Molex: global portfolio management, transaction advisory and lease administration (35 countries, 145 locations)
• Clarcor: site selection, incentives and brokerage consulting for expansion of production facilities and offices in China to a new facility of over 700,000 SF
• Klépierre: bi-annual valuation of over 70 shopping centres across Europe
• Shanghai Tower: pre-completion consultancy including market research, project positioning and leasing strategy
• Multinational company: 2 year extension of contract and commitment to develop a “perpetual partnership”. Full estate management and transaction services across 4,000 locations in North America, Asia and Europe
• Major Chinese technology company: relocation of China facilities
• Major French retail company: valuation of 131 properties across Europe
• Investment management: new major pension fund account in the UK For
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Our Fully Integrated End-to-End Property Services Offering
Leasing Agency and Brokerage
Investment and Asset Management
Research
Valuation
Energy and Sustainability
Consulting
Project Management
Tenant Representation
Property Management
Integrated Facilities Management
Capital Markets / Investment Agency
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Core Services
• Advice on the sale, acquisition and funding of commercial real estate
• Brokered over $40bn in investment transactions in the UK in last 5 years
• #1 investment agent in China
Research
Valuation
Leasing Agency and Brokerage
Integrated Facilities
Management
Energy and Sustainability
Capital Markets / Investment
Agency
Investment and Asset
Management
Property Management
Consulting Project Management
Tenant Representation
Global Corporate Services
• Consultancy services on complex real estate development
• Advised on over 100 town centre regeneration schemes in the UK
• Advised on commercial development of 250 metro stations in China
• Advice on real estate sustainability strategies to meet sustainability goals
• A single point of contact for multinational occupiers
• Unified access to global leasing agency and brokerage teams
• End-to-end facilities management and maintenance services
• Working with clients to achieve specific risk/ return objectives from property portfolios
• More than $12bn in FUM across UK/Europe• Best performance track record of any UK
investment management firm
• Advice and transaction execution on behalf of landlords, developers and occupiers
• #1 retail leasing agent in the UK
• Consultancy services to support clients in the construction, refurbishment and maintenance of properties
• 1,000 projects managed globally with combined capital value close to $2.4b
• Property management for investors and occupiers
• Manage property for half of the top 20 occupiers in the world
• #1 in property management in China
• High quality research on commercial property markets worldwide
• Coverage across 30 countries and over 60 cities
• Advice on leasing and lease administration on behalf of tenants
• Valuation, appraisal and due diligence advice
• Valuations worldwide in excess of $390bn • #1 in valuations in China, top 3 in UK and
key European markets
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Representative Clients by Industry
Commercial/Corporate
Financial Institutions
Government Public Venue/Institutions
Technology/Life Sciences
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Select Client Projects
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Global Footprint in Property Services
45Countries
194Cities
$1.9b¹Combined Revenue
45,000Personnel
24,000Employees
Combined UGL Services and DTZ
¹ Based on FY2011 revenue for UGL and FY2012 estimate for DTZ. Assumes an A$:£ exchange rate of 0.611
#1 CRE firm in Greater China
Top 4 CRE firm in UK
#1 CRE firm in Netherlands
#1 in Sweden in Valuation & Corporate Services
Top 4 CRE firm in Germany
#1 in Poland in Property
Management, Retail &
Corporate Services
#1 in Qatar in Valuation, Leasing Agency,
Consulting & Corporate Services
#1 Most Recommended CRE
firm in 2011 (Watkins Research
Group)
#1 in Czech Republic in
Retail & Corporate Services
Market leading positions in Singapore &
ANZ
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Market Position in Property Services
Key attributes:• Global coverage• Single brand• Majority / equity ownership• Full service
Global / controlled
Local / alliance
Narrow Broad
Coverage
Scope of services
CBREJLL
UGL Services and DTZ
C&W
Colliers
SavillsKnight Frank
BNP Paribas REGrubb & Ellis
Cassidy TurleyNewmark
GVAAOS
Cresa PartnersStudley
Key players in property services
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Becoming a Global Property Services Leader
0.30.4
1.1
1.6
1.4 1.3
1.9
FY06 FY07 FY08 FY09 FY10 FY11 FY11Pro‐forma
Property Services revenue ($bn)
UGL acquires facilities services firm UNICCO,adding 20,000 employees in North America
UGL acquires Singapore-based Premas, expanding into 16 major cities in Asia
UGL acquires CRE firm DTZ, expanding presence in the UK, Europe, Middle East and Asia
2005 2006 2007 2011
UGL acquires Chicago-based CRE firm Equis, establishing a presence in the US and India
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Australia71%
North America20%
Asia/ROW9%
Property Services
29%
Rail27%
Infrastructure23%
Resources21%
Property Services37%
Infrastructure21%
Rail24%
Resources18%
EMEA7%
Americas19%
Australia65%
Asia9%
DTZ Impact on UGL
Pre DTZ - FY2011 revenue by division Post DTZ - FY2011 pro-forma revenue by division
Total FY2011: A$5.1bnPre DTZ – FY2011 revenue by region Post DTZ – FY2011 pro-forma revenue by region
Total FY2011: A$5.1bn
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Total FY2011: A$4.6bn
Total FY2011: A$4.6bn
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EMEA19%
Asia Pacific30%
Americas51%
Facilities Management72%
CRE28%
DTZ Impact on Property Services
Pre DTZ - FY2011 revenue by service line Post DTZ - FY2011 pro-forma revenue by service line
Pre DTZ – FY2011 revenue by region Post DTZ – FY2011 pro-forma revenue by region
Total FY2011: A$1.9bn
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Total FY2011: A$1.9bn
Facilities Management
92%
CRE8%
Total FY2011: A$1.3bn
North America69%
Asia Pacific30%
ROW1%
Total FY2011: A$1.3bn
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Key Future Success Factors for UGL in Property Services
Global IT platform
• Rolling out a single, comprehensive property IT platform globally over the next 12-18 months
• Market leading, bespoke system allowing significant differentiation from peers
• Continued trend to outsource and globalisation of clients creating significant opportunities for future growth
• Highly fragmented market with a limited number of global competitors• Opportunities to participate in industry consolidation to build further scale and
market leadership
• Total global property market estimated at US$125bn• Top 5 property services companies represent only around 10% of total global
market
Addressable Market
Industry Consolidation
Global Outsourcing
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HY2012 Results Highlights
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Revenue & Profit Growth(underlying results)
Operating Revenue ($m) Net profit after tax ($m)
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EPS & DPS Growth(underlying results)
Earnings per share (¢) Dividends per share (¢)
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HY2012 Divisional Overview
UGL Infrastructure
• Strong top line growth• Power generation and transmission opportunities supported by private
investment• Strengthened presence in communications sector with key win in Victoria• Bidding activity healthy in key sectors although water flat
UGLRail
• Consistent margin performance• Renewal of major maintenance contract with RailCorp a major win• Strong growth in freight locomotive demand supporting growth• Oscar 3 and MTM Melbourne train franchise performing well
UGLResources
• Strong recovery in financial performance• Substantial growth in asset management and maintenance projects• High levels of bidding activity with visible pipeline
UGLServices
• Solid operating performance impacted by adverse FX movement• US transaction volumes impacted by subdued macroeconomic conditions• Momentum in Asia and Australia & New Zealand businesses continue• DTZ integration progressing well with neutral impact on 1H12 earnings
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Our People
Employee numbers* Breakdown by division
UGL Infrastructure 2,821 5.1%UGL Rail 2,242 4.1%UGL Resources 4,402 8.0%UGL Services 45,345 82.3%Shared Services 252 0.5%Group 62 0.1%
*includes contractors
Total55,125
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Outlook
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New Contract Wins & Extensions
• Ichthys LNG power plant• Solomon Mine power station• Regional Rail Link rail systems in Victoria• Solomon Rail Spur communications system• Preferred on ANZAC Ship maintenance
UGL Infrastructure
• MainTrain renewal• Orders for over 30 locomotives for supply to
Rio Tinto and other leading resources companies
• Long term locomotive maintenance service and support agreements
UGL Rail
• Maintenance projects with Rio Tinto at Hail Creek, BHP Billiton at Olympic Dam, BMA at Gregory Crinum and CP Mining at Sino Steel plant
• Multiple asset services projects across coal, iron ore and oil and gas sectors
UGL Resources
• NAB, DFAT and Sydney Airport renewals• Key FM agreements with Asian and
Australian government agencies• Key FM agreements for Sun Life Stadium,
Tufts University and Schlumberger
UGL Services
$4.7b in New Wins and Extensions*
* Current figure
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Order Book
Historic growth ($m) Order book excludes significant value
Preferred tender status $1.2b• Property services• Rolling stock and maintenance• Power generation
Options in existing contracts $3.4b• Rail maintenance• Property services• Locomotive orders
Recurring maintenance $6.3b• Historic renewal rate 90-95%• Value over five years• Excludes fixed term contracts
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Order Book Breakdown
By year ($m) By divisionBy type
Alliance style projects $0.9b
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Pipeline
Weighted and Qualified ($m) Status
Note: Weighted & Qualified – excludes any opportunities with a go-get less than 25%
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Group Outlook
• Record order book provides sustainable earnings growth• Ongoing significant investment in people, systems and processes• Commitment to risk management and cost discipline continues• Strong financial position with low capital intensity
Stability and discipline unchanged
• Property integration and capitalising on unique platform• Realigning into 3 business units from 1 July 2012 to enhance market focus and delivery:
Engineering, Operations & Maintenance (incl. Defence), Property• Building world class competencies in project and programme management• Positioning to capture significant outsourcing opportunities as global outsourcing trend endures• Leveraging exposure to Asia and US recovery
Significant growth opportunities
• Continuing to forecast around 5% underlying NPAT growth in FY12• Order book is growing at record levels with further upside • Bidding pipeline is solid and visible
Growth targets for FY12 confirmed
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Important Notice
This presentation and any oral presentation accompanying it:
• is not an offer, invitation, inducement or recommendation to purchase or subscribe for any securities in UGL Limited (“UGL”) or to retain any securities currently held;
• is for information purposes only, is in summary form and does not purport to be complete;
• is not intended to be relied upon as advice to investors or potential investors and does not take into account the investment objectives, financial situation or needs of any particular investor, potential investor or any other person. Such persons should consider seeking independent financial advice depending on their specific investment objectives, financial situation or needs when deciding if an investment is appropriate or varying any investment;
• may contain forward looking statements. Any forward looking statements are not guarantees of future performance. Any forward looking statements have been prepared on the basis of a number of assumptions which may prove to be incorrect or involve known and unknown risks, uncertainties and other factors, many of which are beyond the control of UGL, which may cause actual results, performance or achievements to differ materially from those expressed or implied in such statements. There can be no assurance that actual outcomes will not differ materially from these statements. Any forward looking statement reflects views held only as of the date of this presentation. Subject to any continuing obligations under applicable law or any relevant stock exchange listing rules, UGL does not undertake any obligation to publicly update or revise any of the forward looking statements or any change in events, conditions or circumstances on which any such statement is based.
No representation or warranty, express or implied, is made as to the fairness, accuracy, completeness or correctness of the information, opinions and conclusions contained in this presentation and any oral presentation accompanying it. To the maximum extent permitted by law, UGL and its related bodies corporate, and their respective directors, officers, employees, agents and advisers, disclaim and exclude all liability (including, without limitation, any liability arising from fault or negligence) for any loss, damage, claim, demand, cost and expense of whatever nature arising in any way out of or in connection with this presentation and any oral presentation accompanying it, including any error or omission therefrom, or otherwise arising in connection with any reliance by any person on any part of this presentation and any oral presentation accompanying it.
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