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
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
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
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
28.
29.
30.
31.
32.
33.
34.
35.
36.
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
