Asia Pacific 18 September 2013 Chris Birdsong Chief executive - - PowerPoint PPT Presentation

18 September 2013

Growth opportunities in Asia Pacific

Chris Birdsong

Chief executive officer, Asia Pacific

Agenda

3

Current business Regional growth strategy

• Hong Kong
• Mainland China
• South East Asia

Summary Questions and answers

An evolving business

Atkins acquires Haswell, a 50 strong tunnelling business in Hong Kong (established in 1973)

Architecture and landscape design Planning Water & environment Rail infrastructure Safety and reliability Systems assurance Highways and transportation Tunnelling Geotechnical Civil, structural & MEP Government infrastructure Airport infrastructure Buildings and property Programme and project management.

Over 1,200 staff, offices across Asia Pacific

1994 > 2013

Asia Pacific

Attractive margins in a growing business

5

Ongoing diversification in Hong Kong Mainland China contribution has increased to 40% of the region’s revenue Global design centres in Bangalore and Delhi with 1,300 staff (not included above).

FY08 FY09 FY10 FY11 FY12 FY13 Revenue (£m) 37.0 58.0 78.7 80.3 82.9 88.0 Operating profit (£m) 0.5 3.7 5.0 8.2 10.3 8.1 Operating margin (%) 1.4 6.4 6.4 10.2 12.4 9.2 Average staff numbers 974 1,044 1,158 1,152 1,206 1,260 Closing staff numbers 1,002 1,092 1,153 1,154 1,234 1,295

Asia Pacific

Well funded markets

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32% 15% 15% 11% 5% 22% Architecture & building engineering Urban planning & development Water/environment Rail (including mass transit) Roads Other

Split by end market (FY13)

29% 70% Public sector: local government 29% Public sector: national government 1% Private sector 70%

Revenue by client type (FY13)

1%

Current market position

Differentiators Complex infrastructure focus, majority public sector funded Top 3 infrastructure designer

Integrated team for infrastructure projects Wide market reach Strong brand Reputation for quality and efficiency Client oriented service Contractors’ first choice Established delivery mechanism Flexibility - solutions tailored to client requests

Market position Planning and architecture strength Largest urban planning team in mainland China

Hong Kong Mainland China South East Asia

Project and cost management business

Key current competitors

8

Building engineering Infrastructure Planning and architecture

9

Regional growth strategy

Overview

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Hong Kong Mainland China South East Asia

• Mature market
• Future growth through

diversification

• Largest global

construction market

• Increased market

penetration through partnership with local design institutes (LDIs)

• High growth markets
• Increasing our

geographical spread

• Focused on Malaysia,

Vietnam and Singapore

• Long term opportunities in

India, Indonesia and Philippines.

Maintain and build on existing success Develop Expand and diversify

Samson Sin

Managing director, Asia Pacific

Hong Kong

Our business today – design and engineering services

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Structures

– Civils – Buildings

Geotechnical Tunnelling Mechanical, Electrical, Plumbing (MEP)

– Building services – Infrastructure M&E

Government Infrastructure and Contracts (GIC).

Hong Kong

Growth strategy

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• Continued growth expected on the back of the government investment

programme - new land released for residential development

• We have effectively diversified from the previous years’ focus on the

metro developments in Hong Kong – specifically the Airport Authority and the upcoming West Kowloon Cultural District

• A team has been established with the sole purpose of winning

government contracts

• We have become a first choice/leading consultant for design and build

work for contractors.

Design and engineering services

Central reclamation III (1995-2013)

14

Rail infrastructure

Viaduct, tunnel and station design for MTRC

15

Atkins has held lead design roles on the four major rail projects in Hong Kong:

• Express rail link to mainland China
• West Island line extension
• South Island line
• Shatin central link

Work includes: stations, tunnels, viaducts and significant utility and highway diversions We are undertaking a feasibility study for the South Island line west which will start a new phase of metro development.

Design and build infrastructure

Hong Kong link road

16

Atkins has the full design role on design and build contract for China State Construction involving:

• Tunnelling
• Reclamation
• Viaduct
• Roadworks
• Buildings
• Ventilation

Airport opportunities

Expansion programme and 3rd runway

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Atkins has five current contracts on HK Airport covering:

• Development of new apron areas
• Reclamation study for 3rd runway
• Scheme design for 3rd runway
• Automated people mover
• Taxiways
• Aircraft stands.

Mainland China

Our business today

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Urban masterplanning and landscaping

• Economic studies
• Transit orientated design
• Project scale from city blocks to

entire cities

Architecture

• Iconic high rise
• Mixed use design
• Resorts

Complemented by our Hong Kong design skills

• Water engineering
• Transport and systems engineering
• Bridge design
• Project management
• MEP

Work is undertaken in collaboration with local design institutes who complete detailed design.

Mainland China

Growth strategy

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• Mainland China’s GDP is growing at a healthy rate of 7% and is the most

significant economy in the region

• Urbanisation is expected to continue for the next decade
• Another 300m people to be urbanised over the next 20 years
• Demand for liveable and efficient cities is increasing
• Atkins’ architecture and urban planning teams have become adept at

working with local partners

• Our holistic approach to ‘future proofing cities’ will be used to service a

wider range of clients.

Mainland China – a foundation for growth

Urban planning and infrastructure

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Huizhou Nankunshan – Wanmaping Tourist Hotel, Kejia Heritage Village and Residential Community Meixi Lake, Changsha – Eco City

Mainland China – growing cities and resorts

Architecture

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Lishui resort Concept through to detail design. Project under construction for a repeat client. Baoneng 550m supertower, Shenyang From concept to detail design. Project currently in design for a repeat client.

Growing through strategic relationships

Chinese contractors – domestic and overseas opportunities

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Liangtang Boundary Crossing Contract 6 Xiangtan, Tianjin – riverside new town development

South East Asia

Our business today

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• Building and property project and programme management

expertise - primarily servicing Faithful+Gould’s (F+G) multi- national, industrial client base

• Key current clients include: Ikea, Rolls Royce, BASF, Merck,

Roche, Michelin and GSK

• Recently established presence in Malaysia and Vietnam to

pursue rail and architecture opportunities

• Actively looking to expand our business via M&A.

South East Asia

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• Hong Kong remains the operational

centre of the business directly

• verseeing mainland China expansion

and any further regional growth.

• Singapore will act as a technical hub

providing specialist services for Malaysia, Thailand and Indonesia

• Vietnam will support expansion into

Cambodia and Laos in due course

• Indian global design centres (GDC)

enable growth in the wider region and a base for exploring the local market.

South East Asia infrastructure

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Source: Business monitor limited infrastructure reports

18.3 23.4 26.0 15.1 17.7 19.1 12.7 16.1 18.4 15.4 17.0 17.6

10 20 30 40 50 60 70 80 90 2013F 2015F 2016F $ Bn Malaysia Singapore Vietnam Hong Kong

Forecast growth in construction value

21%

South East Asia focus

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Malaysia Major programme of rail infrastructure just starting Government objective to raise standard of living to “Developed Nation” by 2020 Singapore Ongoing programme of rail infrastructure development Headquarters of several regional developers and major institutional clients Vietnam Long term opportunities in planning, building and infrastructure Government is looking at major development and rail projects. Infrastructure design services for key institutional clients and contractors Planning services to complement / guide infrastructure development Infrastructure and civil design services to complement existing providers Architectural entry point to build brand Teaming with international contractors to pursue rail transport projects.

Investment programmes Opportunities for Atkins

South East Asia

Recent wins

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Klang Valley MRT Line 1, Malaysia Hotel in Ho Chi Minh City, Vietnam

Summary

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Focused approach to high growth markets

• Hong Kong – continued diversification of our strong, multi-disciplinary

engineering business

• Mainland China – partnering with LDIs to support rapid urbanisation

agenda

• South East Asia – initial growth driven by rail projects and architecture

in Malaysia, Singapore and Vietnam.

Disclaimer

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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 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. They relate to events and/or depend on circumstances in the future which could cause actual results and outcomes to differ materially from those currently

• expected. No obligation is assumed to update any forward-looking statements, whether as a

result of new information, future events or otherwise.

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