UGL Services Presentation

UGL Services Presentation
Full-Year
2011 Results Presentation
Bob Shibuya, Group President - UGL Services
Monday, 24 October 2011
UGL Overview
A service company supporting essential infrastructure, resources and property sectors
Market
Capitalisation
A$2.0b
(as at 21 Oct 11)
People
(including contractors)
Delivery method
• Technology partners
• Alliance or
risk-sharing contracts
• EPCM
• Global coverage
• PPPs
47,829
Sectors
• Energy
• Rail
• Resources
• Property
• Transport
• Water
Revenue
EBIT
Order Book
$4.6b
$249.4m
$8.2b
Our
values
safety, integrity,
outstanding customer
service, teamwork,
honesty and openness
in communication
Geography
Customers
Services
• Australia
• Government
• Blue-chip companies
• Public institutions
• Consulting
• Project management
• Design
• Construction
• Fabrication
• Operations
& New Zealand
• Asia
• Middle East
• North America
& maintenance
• Asset management
• Facilities management
• Corporate real estate
*figures based on the 2011 financial year
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UGL Business Unit Overview
UGL Infrastructure is a
leading provider of design,
construction and
maintenance services to
the water, energy and
transport systems sectors
in Australia, New Zealand,
Asia and North America.
UGL Rail is Australia’s
largest and most
experienced provider of
rolling stock and
infrastructure solutions to
the passenger and freight
rail sectors – and
a growing player in the
Asian rail industry.
UGL Resources is a
leading provider of project
delivery and asset
services in the mining and
mineral processing, oil
and gas, chemicals and
industrial processing
industries.
UGL Services provides
end-to-end corporate real
estate and facilities
management services to
corporations, governments
and institutions in
Australia, New Zealand,
Asia, North America and
the Middle East.
Revenue
Revenue
Revenue
Revenue
$1,066m
EBIT
$83.3m
23%
29%
$1,250m
EBIT
$84.8m
27%
29%
$959m
EBIT
$44.0m
Order Book
Order Book
Order Book
$1,595m
$2,815m
$973m
19%
* figures based on the 2011 financial year
34%
21%
15%
$1,329m
EBIT
$76.5m
29%
27%
Order Book
12%
$2,837m
35%
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How does UGL Services
fit into the UGL Strategy?
Business Positioning
Market Leadership
• Exposure to
long term growth trends
• Significant market opportunities
• Strong technical component
• World class technology
• End to end solutions
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•
People
Safety
Technology partnerships
Intellectual property
Outstanding customer service
Sustainable Earnings
Risk Management
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•
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•
•
Robust systems and processes
Alliance and cost-plus contracts
Blue chip and government clients
Sensible, balanced trading terms
Geographic diversification
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•
UGL
Strategy
Balanced recurring revenues
Long term capital works alliances
Diverse earnings streams
Strong order book
Solid opportunity pipeline
Financial Strength
Sector Leadership
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•
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Strong balance sheet
Low capital intensity
Robust cash flow
Flexibility to grow
Resources
Power
Water
Property
Rail
Transportation
4
UGL Services Global Team
Bob Shibuya
Group President
North America
George Keches
Chief Executive
Boston
David Montross
Chief Executive
Chicago
ANZ
ASIA
Henry Arundel
Chief Executive
Michael Su
Chief Executive
EMEA
Stuart Carmichael
Executive General
Manager
GLOBAL INFRASTRUCTURE
Jeff Peterson
Chief Information
Officer
Mary Tamaki
Global Director of
Marketing
Caren Shadel-Sevil
Group Manager
Human Resources –
Services
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UGL Services Overview
Bob Shibuya, Group President - UGL Services
Monday, 24 October 2011
UGL Services – Global Positioning
UGL Services offers world-class real estate and facilities management
services at unparalleled performance levels to corporations,
governments and institutions across the globe.
Our client focused, end-to-end solutions model allows us to
incorporate real estate advisory, integrated facilities management,
project management and sustainability services, with the flexibility and
expertise to meet the most exacting of client service needs on a local,
regional and global basis.
20,000 employees | 74 offices | 13 countries | Over 9 billion square feet under management
7
History of UGL Services
1994
1996
1998
2000
KFPW acquires
Australian
Property Group
Listed on ASX
as United
Construction
Group
UGL acquires
Kilpatrick Green
2002
2004
2006
UGL expands
into New
Zealand
Merges KFPW
with Kilpatrick
Green facilities
UGL acquires management
KFPW
business
UGL acquires
Boston-based
facilities services
business
UNICCO Service
Company, adding
20,000
employees in
North America
UGL acquires
Singapore-based
Premas
International –
expanding into 16
major cities in
Asia
Knight Frank and
Price Waterhouse
establish Knight
Frank Price
Waterhouse –
KFPW
2008
2010
2011
Rebranded
UGL Services
UGL acquires Chicagobased corporate real
estate business Equis
Corporation, establishing
a presence throughout
the United States and
India
Significant Dates of Legacy Company
1849
1896
1949
1984
1999
Price Waterhouse
founded by Samuel
Lowell Price
Knight Frank
founded in
London
Unicco
founded
Equis
founded
Premas
founded
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UGL Services – Service Offering
Who we are today: Integrated RE / FM services provider
REAL ESTATE
INTEGRATED FACILITIES MANAGEMENT
Real Estate
Project Management
Operations and
Maintenance
Soft Services
Sustainability
• Strategic Consulting
• Workplace Strategy
• Utilities
• Janitorial
• Energy Management
• Lease Administration
• Project Management
• Heating/HVAC
• Exterior Services
• Site Selection/
• Move Management
• Recycling and Waste
• Office Services
Government
Incentives
• Transaction Advisory
and Brokerage
Services
• Portfolio
Management
• Tenant Improvement
• Development
Consulting
• Construction
Management
• Facility Strategy
Management
• Environmental
Management
• Engineering
• IT and Telecom
• Façade Maintenance
• Logistics
• Space Management
• Environmental
Reporting
• Environmental
Strategy
• LEED Certification
• Procurement
• Program Delivery
• Corporate Finance
• Financial Incentives
• Audit and Recovery
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UGL Services Coverage
UGL Services
Alliance Partnerships
20,000 Employees
Access to an additional 290,000 people
13 Countries
in 65 additional countries
10
Representative Projects
Singapore Sports Hub, Singapore
353,000 m2 Sports Hub/stadium
• Equity partner
• Integrated facilities management
• Lifecycle management
Rolls Royce, North America
70 locations, 650,000 m2
• Portfolio and transaction management
• Data management
• Project management
• Audit & Recovery
• Integrated facilities management
Aspire Zone, Qatar
Sports complex: 50,000 seat stadium,
sports hall, Academy, aquatic center, orthopedic
hospital, mosque, and more
• Integrated facilities management
• Engineering and maintenance
• Energy management
• Project management
• Call center operations
Chrysler, North America
205 locations, 73.4 million m2
• Portfolio and transaction management
• Data management
• Audit & Recovery
• Integrated facilities management
Sydney Opera House, Australia
World renowned cultural landmark,
hosts more than 1 million visitors and
2,500 live performances each year
• Building conservation
• Operations and maintenance
• Sustainability services
Zurich, North America
441 locations, 827,000 m2
• Portfolio management
• Transaction advisory
• Strategic consulting
• Integrated facilities management
• Project management
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Leaders in Customer Satisfaction
UGL Services ranks the #1 most recommended corporate real estate firm
The Watkins Research Group, Inc., in a joint project with Flaspöhler Research Group, conducted
interviews with 208 corporate real estate decision makers. The survey evaluated 23 corporate real
estate service providers and identified key considerations in selecting these providers.
For each firm a respondent said they used we asked,
“How likely are you to recommend (firm used) to
a business associate or colleague?
Client Advocate Scores
2011 Overall
% of Advocates
UGL Services
72.0%
Jones Lang LaSalle
52.5%
CB Richard Ellis
28.0%
NAI Global
DTZ
19.2%
19.0%
The 10 most used factors to evaluate “what’s best for
my situation”.
UGL Services ranks in the top 5 for all 10 factors
and #1 in 4 of them
10 most used factors
UGL’s Rank
Delivers results on time and within budget
1
Is business “savvy”
2
Understand and avoids conflicts of interest
1
Adapts service to fit my firm’s needs and culture
1
Financial strength
5
Pricing is rational
1
Has a strong and respected reputation
5
Monitors performance with metrics
3
Uses State of the Art technology
4
Has offices where I need them
4
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Operational Report - Services
$m
Sales - $m
EBIT - $m
EBIT / Sales
Order book - $b
FY11
FY10 Change
1,328.9 1,361.9
76.5
71.5
5.8%
5.2%
2.8
2.8
(2%)
7%
2011 Highlights
• Successful expansion in the Middle East and
China
• Excellent performance from Asia-Pacific
• Continued turnaround in the US Corporate
Real Estate business
-
• Ongoing improvement in Australia and New
Zealand
• Stable revenue and earnings contribution
EBIT $m
2012 Outlook
• US turnaround expected to deliver solid
growth
• Middle East has further expansion prospects
• Australian, NZ and Asian businesses in
excellent shape
• Outsourcing trend will gather pace
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Market Outlook
Uncertainty on the horizon
“Strong outlook for Asia Pacific
office markets”
August 4, 2011, Propertywire
“Pent up commercial demand due
to release”
September 2, 2011, Brokernews.com / ANZ
“UK FM sector looks overseas for
opportunity”
July 2, 2011, FM World
“Consumer confidence at Great
Recession level”
August, 29, 2011, CNN World
14
Market Trends and Issues
•
Flight to Quality
•
Consolidation of service provider relationships
•
Outsourcing increasingly popular
•
Global tenders becoming more prevalent
15
Impact on Property Services Industry
•
Consolidation of property services industry
•
Strategic alliances on the rise
•
Delay and downsizing of occupancy lease/purchase
commitments
•
Technology infrastructure costs drive smaller firms out
of Accounts business
16
Evolution of IFM and RE Sourcing
Pre-1980s
80s to
Mid-90s
Mid-90s
To 2000
Early 2000s
To mid-2000s
Mid-2000s
And onward
Self-perform
Out-tasking
Outsourcing
Integrated facilities
management
Global integrated
business services
Low-tech services
such as cleaning,
security, food services
and landscaping are
individually sourced by
different locations to
external providers
A combination of lowtech and high-tech
services – such as
electrical, mechanicalare outsources in
service bundles
Facilities management
and real estate
services are
outsourced to a single
service provider,
which manages
subcontractors
Facilities management
and real estate
services are
organizationally
aligned with other
support services such
as finance, HR,
procurement and IT –
and outsourced in a
global bundle across
business units.
Bundled business
process outsourcing
(BPO) across multiple
functions is emerging
as an option
Most, if not all,
activities are
performed in-house.
Source: KPMG 2011 Real Estate and Facilities Management
Outsourcing Pulse Survey
17
Size of Market
2010 Global Market
2010 Market Share by Revenue
$5.1B
CBRE
20%
Asia
18%
Europe
Source: UMS Advisory
$3.2B
$1.8B
JLL $4.2B C&W
JCI
$1.4B
UGL
$1.1B
Colliers
62%
United States
$107B
All Others
Estimated revenue = $125 billion (US$)
Source: Public Information
18
Competitive Position – Real Estate
Real Estate Services – Key Players
Global/
Controlled
CB Richard Ellis
Jones Lang LaSalle
Key Attributes
• Global Coverage
• Single Brand
C&W
• Majority/Equity
Ownership
Colliers
Coverage
CresaPartners
Studley
UGL
AOS
GVA
Cassidy Turley
Newmark
• Full Service
DTZ
Savills
Knight Frank
BNP
Grubb & Ellis
Local/
Alliance
Narrow
Scope of Services
Broad
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Competitive Landscape – FM
Global FM market is dominated by bundled and I-FM service providers,
with majority of the large players operating across multiple countries
FM market is mostly ruled by bundled and I-FM service providers, with FM services forming just a small part of their
overall portfolio; top players are generally engaged in a myriad of industrial and economic business sectors, ranging from
energy and construction services to FM and consultancy services.
Service Integration
Single Service Providers.
Bundled Service Providers.
I-FM Service Providers.
Provide single FM related
service, such as support
services or specialized software
for FM. Generally, these
companies are relatively small
in size with limited geographic
presence.
Provide a set of five or more FM
related services, such as support
services, property management,
security services, technical
maintenance and waste
management. They may enter into
strategic partnerships to provide
the complete spectrum of services.
Provide the entire gamut of FM
services, including cleaning,
support, property, catering and
security services, to public and
private sector clients.
ABM
Carillion
CBRE
Dalkia
Emcor
Fluor
Johnson Controls
Jones Lang LaSalle
Aramark
Bilfinger+Berger
ISS
Mitie
Serco
Sodexo
UGL Services
Bundled and I-FM service providers are global players operating in a broad array of industries, in addition to FM services, such as:
• Health, Energy, Science, Transport, Real Estate, Natural Gas, Construction, Home Affairs, Infrastructure and Government Services
Source:Company Websites; TSC Research and AnalysisService Integration
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REFM Outsourcing Usage Trends
Current REFM outsourcing usage and market demand conditions
Workplace services
60%
Facilities services
48%
Transactions/brokerage
46%
Lease administration
33%
Project mgt ($20M+)
26%
Facilities management
24%
Project mgt(<$20M)
Space management
Real estate and facilities IT
Portfolio strategy/planning
7%
37%
11%
30%
20%
28%
30%
33%
33%
47%
20%
24%
43%
36%
32%
22%
Key Findings
• Most commonly outsourced REFM
process area is workplace services
• The second most frequently outsourced
area is facilities, e.g. HVAC, electrical,
mechanical, building repair
• REFM portfolio strategy and planning
was the least often outsourced area
22%
50%
16%
11%
27%
48%
72%
Currently fully outsourced
Currently partially outsourced
Planning to outsource in
next 12 months
Planning to outsource 12+ months out
No plans to outsource
Source: KPMG 2011 Real Estate and Facilities Management
Outsourcing Pulse Survey
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Global Strategy
Become a top three global property service provider
Strategy
Objective
Progress-to-date
Consolidate and
build brand
UGL
Premas, Equis and Unicco
have transitioned from
sub-brands to divisions
Leverage existing client
relations
Consolidate sale and client
management teams
Search for new global sales
and client management
leadership underway
Deliver integrated RE and
FM consistently
throughout the world
Establish best-in-class
platforms in Europe and Asia
Active discussions with
people and firms in target
markets
Optimize efficiency and
best practices
Develop global leadership
team
New CIO, new marketing
director, inbound CFO/COO
Grow profitably at 10%+
Expand into new
geographic markets and
service sectors
Active M&A pipeline and
recruitment of high-profile
firms, teams and individuals
Opportunity Target
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Q&A
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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