Oil and Gas Corporate Offices Western Colorado - PowerPoint

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					Earth and Environmental
Capital Markets Seminar
5 June 2009
Important information


Certain statements in this presentation are forward looking statements.
By their nature, forward looking statements involve a number of risks,
uncertainties or assumptions that could cause actual results or events
to differ materially from those expressed or implied by the forward
looking statements. These risks, uncertainties or assumptions could
adversely affect the outcome and financial effects of the plans and
events described herein. Forward looking statements contained in this
presentation regarding past trends or activities should not be taken as
representation that such trends or activities will continue in the future.
You should not place undue reliance on forward looking statements,
which apply only as of the date of this presentation.

This presentation does not constitute or form part of any offer or
invitation to sell, or any solicitation of any offer to purchase any shares
in the Company, nor shall it or any part of it or the fact of its distribution
form the basis of, or be relied on in connection with, any contract or
commitment or investment decisions relating thereto, nor does it
constitute a recommendation regarding the shares of the Company.

Past performance cannot be relied upon as a guide to future
performance.


                                                                                 2
Earth and Environmental
Capital Markets Seminar

Samir Brikho, Chief Executive, AMEC plc
    Core divisions



               Revenue*                                             EBITA**                               Average employees#

              15%                                                 15%                                           18%


                             46%                               26%               59%                                      49%
              39%                                                                                               33%




     Natural Resources                                    Power and Process                               Earth and Environmental
Operates in the oil and gas services,                  Operates in the power, process                   Provides specialist consultancy and
  oil sands and mining markets                             and nuclear markets                                 engineering services



     All figures for year ended 31 December 2008
     * Before internal revenue and excluding the Investments and other activities division
     ** Before corporate costs, pre-tax exceptional items, amortisation and the Investments and other
         activities division, but including joint venture profit before tax
     # Full time equivalents/agency staff, excluding the Investments and other activities division

                                                                                                                                        4
Earth and Environmental


   High value consultancy services
      Diversified portfolio of customers and services
      Provides “halo effect” to other divisions

   Strong growth record
      Growth in environmental legislation
      Increasing corporate social responsibility
      Increasing use of brownfield sites and exploration of environmentally
       sensitive regions
      Highly fragmented market provides opportunities for acquisitions



               One of the world‟s leading environmental and
                  engineering consulting organisations


                                                                               5
Earth and Environmental
Capital Markets Seminar

Roger Jinks, President, Earth and Environmental
Earth and Environmental at a glance




   £400 million revenues 2008           >20% CAGR 2000-2008

   8.4% EBITA margin 2008               Future target 10%+

   Diversified portfolio                Resilient earnings

   >4,000 experts                       Highly transferable

   >140 offices                         12 acquisitions 2007- June ‘09



                 Strong track record of profitable growth




                                                                          7
Earth and Environmental
Organisation



                                                     Chief Executive
                                                     Samir Brikho




                  Finance and
                                                       President                       Human Resources
                   Commercial
                                                      Roger Jinks                        Anne Frese
                Tony Tomljanovic




                                       Western                         South Central                  Northeast
     Western Canada
                                     United States                     United States                North America
      Ian Darrach
                                      Tony Daus                        Bill Brickey                Laurie Davidson




                         Europe                      Pacific and                     Major Federal
                         and UK                  Major Client Sectors                   Projects
                      Elaine Moore                   Paul Pettit                   Charles Mouzannar




                                                                                                                     8
Earth and Environmental
Principal activities


   Provides specialist environmental, geotechnical, programme
    management and consultancy services to a broad range of clients in
    the public and private sectors

   Operates from a regional office network, and is typically characterised
    by a large number of small value contracts with a few larger projects

   “Seller-doer” model employing many specialised consultants:
    engineers, scientists, biologists, toxicologists, planners, chemists,
    sociologists, etc

   Strongly entrepreneurial culture – best growth ideas from
    front-line people


        Highly talented people, adding value to clients‟ operations


                                                                              9
Earth and Environmental
Business profile


   >4,000 employees worldwide
   13,500 contracts performed in 2008 – typically short
    duration
   Typical business parameters:
      Utilisation 70 - 75%
      Multiplier 2.8 - 3.3
   Average contract size £21k
   Contracts are a mixture of cost plus and lump sum
   Local business management and control –
    management training programmes
   Major Client Sector programmes (e.g. US Air Force)
   Technical Council – focus on technical excellence
   Strong safety record – one lost time incident in 2008


                                                            10
                       Earth and Environmental
                       Revenue by sector


                      550
                                                                                                     2008 revenue by sector
                      500
                                                                                                               State / Prov 3%
                      450
                                                                                            Mining 14%
                                                                                                                             Federal
                      400
Revenue (£ million)




                                                                                                                             Government
                      350                                                                                                    23%

                      300                                                                Energy
                                                                                           12%
                      250
                      200
                                                                                                                                   Municipal /
                      150                                                               Industrial                                   Water
                                                                                             6%                                      10%
                      100
                      50
                                                                                                  Commercial               Transportation /
                       0                                                                                                   Infrastructure 16%
                                                                                                       16%
                                            2000                       2008
                            Federal Gov't          Municipal / Water   Transportation
                            Commercial             Industrial          Energy
                                                                                          Technical skill sets are highly
                            Mining                 State / Prov
                                                                                          transferable between sectors


                                                                                                                                           11
Earth and Environmental
Diversified portfolio of services

   Archaeology                              Materials engineering, construction
                                              monitoring and testing
   Architecture
                                             Oceanography and meteorology
   Climate change consulting
                                             Programme management
   Ecological studies
                                             Remediation planning and execution
   Engineering design
                                             Socio-economic studies
   Environmental site characterisation
                                             Tailings/waste dump design and
   Environmental impact studies and          construction monitoring
    permitting                               Waste management
   Geotechnical design and analysis         Water and air quality
   Infrastructure design                    Water management, development and
                                              protection

Our differentiator is our people – technical skills, delivery and attitude
                                                                                    12
                       Earth and Environmental
                       Revenue by service


                      550
                                                                                 2008 revenue by service
                      500
                      450                                                     Infrastructure 8%
                      400                                                      Gov‟t                    Environmental 42%
Revenue (£ million)




                                                                         Programme
                      350                                               Management
                      300                                                      20%

                      250
                      200
                      150
                      100                                                     Water
                      50                                                       6%

                       0                                                               Materials   Geotechnical 15%
                                    2000                       2008                         9%

                            Environm ental             Geotechnical
                            Materials                  Water               Strong diversification and
                            Gov't Program m e Mgm 't   Infrastructure      ability to be responsive to hot
                                                                           and cold markets

                                                                                                                      13
     Earth and Environmental
     Office locations


                               UK and
                               Europe
                                 17
                               Offices

  Canada
    49
  Offices




                               Middle
                                East
United States                     3
     76                        Offices
   Offices



                                South
                               America
                                  2
                               Offices




                                    14
Earth and Environmental
Cross AMEC Synergies


   Earth and Environmental is a pathfinder – early
    stage involvement in projects

   Natural Resources – oil sands, major mining
    clients, pipelines

   Power and Process – power sector (wind energy
    and biofuels) transmission lines, nuclear and
    federal sector




    AMEC has unique one-stop shopping skills
             to offer major clients


                                                      15
Earth and Environmental
Acquisitions 2008/9

Geomatrix
   18 offices, 500 staff, primarily California based
   Client base: industrial, oil and gas, commercial, mining and
    municipal
   Builds on AMEC‟s US capability, particularly on the West Coast
   Adds depth to Earth and Environmental‟s US groundwater,
    seismic geotechnical, and environmental remediation capacity
   Adds a large number of top class professionals
OEST Associates Inc.
   Full-service engineering design firm located in Portland, Maine
   100 staff, performs architectural, engineering, construction
    management, land surveying and permitting services




                                                                      16
Earth and Environmental
Acquisitions 2008/9 (cont’d)

Philips Engineering Ltd.
   A 70-person civil engineering firm, located in Burlington, Ontario
   Provides engineering design and construction management services for
    public water and transportation infrastructure systems
Smith Williams Consultants Inc.
   Located in Denver, Colorado – the US center for mining
   A 40-person environmental and geotechnical consulting firm
Arcas Consulting Archaeologists Ltd.
   A 20-person archaeology and anthropology services firm, located in
    Vancouver, British Columbia
Journeaux Bedard and Associates, Inc.
   Based in Montreal, Quebec, a 20-person firm specialising in geotechnical
    design and construction management services


Ability to bring on acquisitions, retain key staff, integrate and drive growth
                                                                                 17
Earth and Environmental
Capital Markets Seminar

Elaine Moore, Executive Vice President UK/Europe,
Earth and Environmental
Earth and Environmental
Public and private sector customers




80% of our business is repeat business – many long-term customers
                                                                    19
Earth and Environmental
Sanofi-Aventis, United States

Rhone-Poulenc Superfund Site, Portland,
Oregon
   Value:      £38m
   Duration: 2000 – 2014
   Scope:
     - Consulting and engineering services for risk management
       of environmental contamination due to manufacturing
   Services:
     - Design and implementation of multi-media investigations
     - Human health and ecological risk assessments
     - Site remedial investigation/feasibility reports
   Project highlights:
     - Developing 30 year life-cycle costs, including 25 year
       post-remedy monitoring)
     - Assist Sanofi-Aventis in regulatory agency negotiations
     - Advance 3D visualisation for data interpretation
     - Development of nine-layer numerical groundwater model
                                                                 20
Earth and Environmental
Bank of America, United States

White Swan Cleaners, Groundwater
Contamination Superfund Site, New Jersey
   Value:      £6.7m
   Duration: 2004 – 2010
   Scope:
     - Remedial Investigation and Feasibility Study
   Services:
     - Extensive field investigation programme within a 2.5
       square mile project area                                 3D Mapping of Contaminant Plumes
     - Passive vapour surveys, membrane interface probe            Under Regional Project Area

       (MIP), transect and profile sampling, geochemical,
       stable and radiogenic isotope analysis of groundwater
     - Risk assessments and remediation treatability (in-situ
       bioremediation) and feasibility studies
   Project highlights:
     - The largest application in the US of MIP technology


                                                                                           21
Earth and Environmental
US Air Force, United States

Patrick Air Force Base / Cape Canaveral Air
Force Station, Florida
 Value:        £37.3m
 Duration:     2000 - Present
 Scope:
     - Multi-year beach and shoreline restoration and
       renourishment of Atlantic Coastline eroded by hurricanes
     - Removal of buildings, structures and site infrastructure
       from Atlas and Titan Missile Launch Complexes
 Services:
     - Design, permitting, installation and monitoring
     - Programme planning, permitting and demolition
   Project highlights:
     - Design and installation of innovative mangrove and
       gabion basket for shoreline protection
     - Recycled 15 tons of steel, 13 tons of concrete, 5000 yd3
       asphalt – exceeding pollution prevention goals
     - Restored 20 acres of lands for future use
                                                                  22
Earth and Environmental
State of Alabama, United States

FY08 Digital Flood Insurance Rate Map (DFIRM) Maintenance
   Value:     £8.6m
   Duration: 2005 – 2011
   Scope and services:
     - Update DFIRMs using detailed engineering
      procedures and mapping information and develop
      procedure to determine and document mapping
      needs
   Project highlights:
     - AMEC assisted the State in preparing a Business
       Case for funding from the US Federal Emergency
       Management Agency (FEMA)
     - FEMA has expressed interest in reviewing our
       mapping needs documentation process for
       potential national use




                                                            23
Earth and Environmental
National Grid, United Kingdom

Grain to Shorne Gas Pipeline, Kent
   Value:      £1.9m
   Duration: 2007 – 2009
   Scope:
     - Construction of new 21km, high-pressure gas pipeline to
       meet the increasing demand for gas in London and the
       South of England
   Services:
     - Archaeology, ecology and transport surveys,
       environmental impact assessment and geotechnical study
   Project highlights:
     - Pipeline intersected two sensitive coastal habitat areas
     - Cost savings of £1.4m through environmental mitigation
     - Integrated client programme with the Power and Process
       division




                                                                  24
Earth and Environmental
Capital Markets Seminar

Tony Daus, Executive Vice President Western US,
Earth and Environmental
Earth and Environmental
US Navy, United States

Remedial Design and Action, Alameda, California
   Value:      £9m
   Duration: 2008 – 2012
   Scope:
     - Environmental remediation at former US naval site
   Services:
     - Excavation and disposal of contaminated soils from two-
       acre area, construction of a 12-acre landfill cover,
       treatment of volatile organic compounds in groundwater
       through in-situ chemical oxidation technology
   Project highlights:
     - Intense public interest due to prime location in San
       Francisco Bay area
     - Feature article in Civil Engineering magazine (Jan 2009)
     - Largest task order to-date under Performance-Based
       Multiple Award Contract (PERMAC) ID/IQ



                                                                  26
Earth and Environmental
Sapphire Energy, United States

Commercial Demonstration Plant Permitting/Design, New Mexico
 Value:       £1m
 Duration:    2009 – 2010
 Scope:
    - Environmental and land-use permitting; civil and
     geotechnical design services
 Services:
    - Land acquisition, water rights procurement and civil and
     geotechnical engineering for a 1,100 acre facility – follow-
     up services will include construction management services
     for the £50m facility
 Project highlights:
    - Providing services on the first commercial demonstration
      algae “pond to pump” programme
    - This programme and technologies enjoy very high profile
      status as a viable approach to a sustainable energy source



                                                                    27
Earth and Environmental
Tampa Bay Water, United States

Resource Optimisation – Water Supply Management, Florida
 Value:        £1.1m
 Duration:     2003 – 2009
 Scope:
     - Water supply optimisation, numerical modelling
   Services:
     - Develop and implement numerical optimisation models for
       managing water resources with uncertain demand and
       climate variation
 Project highlights:
     - AMEC has been retained to develop state-of-the-practice
       models for optimising water supply for the Tampa Bay tri-
       county area
     - Many water supply companies across the US and overseas
       are facing similar management and operation challenges in
       the face of climate change, water quality degradation and
       urban growth


                                                                   28
Earth and Environmental
Confidential client, Africa

Permitting of Gold Mines, Ghana
 Value:       £4-5m
 Duration:    2006 – 2010
 Scope:
    - Environmental and land-use permitting, cultural resources
     and water resources planning
 Services:
    - Environmental baseline and land-use permitting services,
     water sources analysis, and social impact assessment for
     multiple mine projects in central Ghana
 Project highlights:
    - AMEC has been retained to provide services on major
      new developments
    - AMEC is in excellent position to provide ongoing
      professional services for the subsequent development and
      operation of the mine projects
    - Client mine was one of the first in Africa permitted in full
      compliance with the World Bank‟s Equator Principles
                                                                     29
Earth and Environmental
Capital Markets Seminar

Roger Jinks, President, Earth and Environmental
Earth and Environmental
Enbridge, Canada

Enbridge Northern Gateway Pipeline, Edmonton to Kitimat
   Value:     £20m
   Duration: 2002 – 2011
   Scope:
     - 1200km oil export pipeline and condensate
       import pipeline
   Services:
     - Geotechnical, water resources, environmental
   Project highlights:
     - The pipeline system will traverse some of the
       most challenging terrain in North America – two
       mountain ranges, 60 major river crossings, and
       high altitude terrain - requiring two 7km long
       tunnels




                                                          31
Earth and Environmental
Imperial Oil Ventures Limited, Canada

Kearl Oil Sands, Fort McMurray, Alberta
   Duration: 2007 – 2012
   Scope:
     - Engineering, procurement and construction management
   Services (E&E):
     - Geotechnical, surface water, environment and
       regulatory, surveys and roads
   Project highlights:
     - Largest integrated project for AMEC – fully integrating
       all of AMEC‟s capabilities
     - Earth and Environmental has utilised resources
       globally – North America and UK




                                                                 32
Earth and Environmental
Nova Scotia Transportation and Works, Canada

Asphalt Concrete Inspection Services,
Nova Scotia
   Value:      £1.5m annually
   Duration: 2001 – 2011
   Scope:
     - Province of Nova Scotia annual highway pavement
       programme
   Services:
     - Provision of quality assurance, materials engineering and
       consulting services
   Project highlights:
     - Received AMEC „Award of Excellence‟ in 2007
     - AMEC‟s long-term involvement with Nova Scotia
       significantly increased our profile in Eastern Canada

Currently developing ‘Green Paving’ software program that
    measures and certifies greenhouse gas reductions
                                                                   33
Earth and Environmental
Alberta Transportation, Canada

Highway 63 Twinning – Northeast Alberta Transportation Corridor
 Value:       £8m
 Duration:    2008 – 2012
 Scope:
    - Clearing of the highway corridor, construction of
     31.4km of roadway including truck staging area and
     two bridge structures
 Services:
    - Provision of preliminary engineering, detailed highway
     and bridge design, land acquisition, construction
     supervision, post construction engineering and legal
     surveys
 Project highlights:
    - Since 2005, AMEC‟s planning group has led the NATC
      planning work
    - AMEC is the full-service provider, including:
      transportation, materials, geotechnical, environmental,
      and planning
                                                                  34
Earth and Environmental
City of Wichita, United States

Wichita Kansas Levee Evaluation and Design
 Value:    £1.9m
 Duration: 2008 – 2009                                3D Point Cloud
 Scope and services:
    - Evaluate levee system and recommend
      corrective actions
    - Detailed analyses of more than 97 miles of
      levees protecting Wichita
    - AMEC is evaluating the structural integrity of
      the levees under flood conditions
 Project highlights:
    - First major levee system in US to fall under
      FEMA‟s Provisional Accredited Levee (PAL)
      system
    - Disciplines include geotechnical, water
      resources, civil, electrical, mechanical,
      geographic information systems (GIS), and
      survey

                                                              35
 Earth and Environmental
 Financial performance

£ million                                               2008                    2007

    Revenue                                            400.2                   288.4     +39%
    EBITA*                                               33.5                   21.2     +58%
    EBITA Margin                                        8.4%                   7.4%    +100 bps

    Average employees**                                3,933                   3,576     +10%

    Revenue growth breakdown:
      - 19% revenue growth organically
      - 12% revenue growth by acquisitions



                Robust growth across the private and Federal sectors

* Before £2.1m deferred consideration on Earth and Environmental acquisitions
** Full time equivalents/agency staff
                                                                                                   36
Earth and Environmental
2009 outlook

Downside:
   Industrial/commercial clients
   State/Municipal funding reductions
   Mining/oil and gas – junior to intermediate companies
Upside:
   Stimulus funding – US and Canada
   US Federal – Air Force, Navy, Army Corps of
    Engineers
   Transportation – Western US and Canada
   Renewable energy – private and public sector
   Water sector – dams and levees, water supply and
    quality




                                                            37
Earth and Environmental
Operational Excellence




                          38
                       Earth and Environmental
                       Regional revenue market analysis

                                                              Revenue by Competitor
                 4.0

                 3.5

                 3.0
 Revenue (£bn)




                 2.5                                                                                Non-Environmental revenue
                                                                                                    Environmental revenue
                 2.0

                 1.5

                 1.0

                 0.5

                 0.0
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                                               Total North American market ~£25 billion
                                   Highly fragmented business – always opportunities to consolidate

Source: EFCG April 2008, ENR July 2007, Thomson                                                                                 39
                Earth and Environmental
                Regional margin market analysis

                                                      EBIT margin by Competitor*



               14%
               12%
               10%
               8%
  Margin (%)




               6%
               4%
               2%
               0%
               2%-
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                                                                                                                                      *
                 *Competitor margins reported for total company.
                 * *As CH2MHILL is a private company, EBIT margin was identified per SEC Filings.




Source: EFCG April 2008, ENR July 2007, Thomson                                                                                     40
Earth and Environmental
Strategic goals

   Leading global provider of earth and environmental services
    - Top 3 geotechnical service provider globally
    - Expanded global capabilities in environmental planning and permitting,
      particularly in the US
    - Growth in water services, particularly in the US Sunbelt
    - Global growth in Europe, South America, Australia


   Strong regional supplier of infrastructure engineering services
    - Growth in the transportation sector in the US Sunbelt and Canada
    - Expand water engineering services




                                                                               41
Earth and Environmental summary




   Strong record of revenue growth     >20% CAGR 2000-2008

   Attractive margins                  Future target 10%+

   Diversified portfolio               Resilient earnings

   >4,000 experts                      Highly transferable

   Large and fragmented sector         Further acquisitions expected



                 A key differentiator of AMEC’s services




                                                                        42
Questions

				
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