Willbros Group            (NYSE : WG)          2012 Credit SuisseEngineering & Construction Conference            June 7, ...
Forward Looking Statements This presentation contains forward looking statements.           All statements, other than sta...
Willbros Vision and Values  Our mission is to be a multi-billion dollar engineering and   construction company with a dive...
2006      Reduced Exposure to Unstable Markets                                     De-risk Backlog                        ...
Focused on North America and Diversified                                                                          2007Serv...
2009Diversified Services, Geographies and Markets                            2010• Residual effect from financial        •...
Delivered on 2011 Objectives to Transform                                                                                 ...
2012Willbros Today… Positioned for Success       Recent Accomplishments                       Positive Market Indications•...
Focusing on Growth Markets in North America       Willbros has the backlog, resources and         expertise to drive profi...
Financial Overview
Willbros Financial Snapshot                          Historical Revenue                                            Revenue...
Backlog               Total Backlog by Segment (1)                                                     Major Projects     ...
Improving Adjusted EBITDA While Reducing Debt • Year over year Q1 revenue growth driven primarily by our expanded U.S.    ...
Liquidity and Free Cash Flow(1)•   Cash and cash equivalents of approximately $48.9 million•   $175 million credit facilit...
WG is Undervalued Relative to Peers             2013 EV/EBITDA Valuation                                                  ...
Key Investment Considerations•   Worldwide brand recognition and reputation for quality, safety and    schedule / price ce...
www.willbros.com
Upcoming SlideShare
Loading in …5
×

Willbros - Credit Suisse Engineering & Construction Conference

491 views
418 views

Published on

Willbros Group presentation at the 2012 Credit Suisse
Engineering & Construction Conference
http://www.willbros.com
http://phx.corporate-ir.net/phoenix.zhtml?c=95816&p=irol-presentations

Published in: Business, Health & Medicine
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
491
On SlideShare
0
From Embeds
0
Number of Embeds
1
Actions
Shares
0
Downloads
6
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Willbros - Credit Suisse Engineering & Construction Conference

  1. 1. Willbros Group (NYSE : WG) 2012 Credit SuisseEngineering & Construction Conference June 7, 2012
  2. 2. Forward Looking Statements This presentation contains forward looking statements. All statements, other than statements of historical facts which address activities, events or developments the Company expects or anticipates will or may occur in the future, are forward looking statements. A number of risks and uncertainties could cause actual results to differ materially from these statements. These risk factors are described in the Company’s documents and reports filed with the SEC. The Company assumes no obligation to update publicly such forward looking statements, whether as a result of new information, future events or otherwise. This presentation contains non-GAAP numbers and a reconciliation is provided in the Appendix. 2 June 2012
  3. 3. Willbros Vision and Values Our mission is to be a multi-billion dollar engineering and construction company with a diversified revenue stream, exposure to high growth opportunities and ability to achieve more stable and predictable results 3 June 2012
  4. 4. 2006 Reduced Exposure to Unstable Markets De-risk Backlog • Discontinued operations in South ($ in millions) $1,200 America and West Africa $900 – Closed offices in Bolivia and $600 Venezuela $300 – Announced decision to sell Nigeria assets and operations $0 (1) 2003 2004 2005 2005 2006 U.S. & Canada International Disco Ops Focus on Large Diameter Pipeline Market in U.S.(2) • Demand for large-diameter Canada pipeline construction drives 22% backlog growth in the U.S. Oman U.S. Pipeline 6% – Construction 72% – Engineering – EPC(1) Excludes discontinued operations(2) Backlog as of 02/28/2007 4 June 2012
  5. 5. Focused on North America and Diversified 2007Services 2008• Sold Nigeria operations and redeployed cash: Delivered Improved Operating Results – Increased U.S. large diameter capacity ($ in millions) from 1½ to 3 spreads $42 10.0% 7.7% – Supplemented Canadian capacity $36 7.6% 7.1% 8.0% replacing / retrofitting equipment $30 5.9% 6.7%• Expanded capabilities through key $24 6.0% acquisitions: $18 4.5% 4.0% – InServ $12 2.0% (downstream market) $6 – Midwest (cross-country pipeline $0 0.7% 0.0% construction in Canada) (1.0%) ($6) (2.0)%• Improved financial and project 1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 management systems, processes Op Loss Op Inc Op Margin and procedures 5 June 2012
  6. 6. 2009Diversified Services, Geographies and Markets 2010• Residual effect from financial • Diversification achieved via crisis continued to negatively acquisitions: impact demand for our – Wink Engineering (2009) hydrocarbon-centric services: – Gained access to engineering – Maintenance spending postponed and EPC opportunities in the and capital spending delayed or downstream market cancelled across North America – InfrastruX (2010) – Reinforced need to expand service – Diversified capabilities into offerings and diversify end-market utility transmission and exposure distribution market – Expanded geographic presence – Enhanced midstream capabilities – Increased recurring services backlog (greater visibility) 6 June 2012
  7. 7. Delivered on 2011 Objectives to Transform 2011 Willbros Returning Willbros to profitability and strengthening the balance sheet Objective Status • 2011debt reduction of $123.4 millionReduce debt by approximately • Additional $36.7 million paid against Term Loan YTD 2012(1)$50 - $100 million • Remaining principal balance of $139.2 million on the outstanding Term LoanImprove project management • Increased executive level project management oversighttools and capabilities • Engaged in enterprise-wide improvements and implementationMaintain focus on North America • Continued to execute on utility transmission construction projects • Implemented regional strategy in U.S. Upstream with office locations in the Permian Basin and Eagle Ford, Barnett, Marcellus, Haynesville, Bakken, Niobrara and Utica Shale plays • Pipeline Integrity Management Services • New management team in Canada focused on oil sands-centric markets while discontinued operations in cross-country pipeline construction • Made improvements over last years performance and our HSERemain focused on Safety management system implementation and safety culture enhancement programs are continuing on target(1) 2012 debt reduction as of 05/07/2012 7 June 2012
  8. 8. 2012Willbros Today… Positioned for Success Recent Accomplishments Positive Market Indications• Settled West Africa Pipeline Company • Oil & Gas segment: (WAPCO) litigation – 70% of planned 2012 revenue committed• Completed DOJ monitorship and all – Downstream engineering profitable and charges dismissed adding additional resources• 2012 debt reduction goal of $50 - $100 – Downstream Gulf Coast office awarded MSA at a major refinery in Pascagoula million – Awarded Red River Project• Changed segment reporting structure – Developed cloud-based pipeline lifecycle to mirror strategic growth opportunities: integrity management solution with – Utility T&D – Canada GeoEye and served from the Google – Oil & Gas Earth Builder platform• Focus on improving the results of our • Canada has nearly $4 billion in near underperforming business units: term prospects – Focused best management talent on • Utility T&D segment: operational improvements – Over $400 million in transmission backlog – Either quickly turnaround or exit these – Willbros T&D generating profit in 2Q12 businesses 8 June 2012
  9. 9. Focusing on Growth Markets in North America Willbros has the backlog, resources and expertise to drive profitability from: • Utility Transmission & Distribution Build-Out • U.S. Oil and Gas Infrastructure: – Large Diameter Pipelines – Liquids-rich Resource Development – Pipeline Integrity Management Services • Canadian Oil Sands Production 9 June 2012
  10. 10. Financial Overview
  11. 11. Willbros Financial Snapshot Historical Revenue Revenue 1Q12 ($ in millions) $3,000 $2,500 Utility T&D 33% $827 $1,900 Oil & Gas $2,000 59% $1,700 $599 $1,500 $309 Canada 8% $1,000 $1,913 $1,600 $1,260 $500 $1,192 Total: $419.1 million $0 2008 2009 2010 (1) 2011 2012 Guidance Willbros InfrastruX(1) InfrastruX revenue Jan – Jun 2010 11 June 2012
  12. 12. Backlog Total Backlog by Segment (1) Major Projects Canada 12% Total Backlog Oncor Oil & Gas 29% MPRP Utility T&D ECHO 59% Red River Project $2.3 billion 12 Month Backlog by Segment (1) NiSource Oil & Gas Camp Pendleton 52% Canada 10% Oman LNG Maintenance Syncrude Maintenance Husky Sunrise Tanks Utility T&D 38% 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q $1.0 billion 2012 2013(1)March 31, 2012 12 June 2012
  13. 13. Improving Adjusted EBITDA While Reducing Debt • Year over year Q1 revenue growth driven primarily by our expanded U.S. upstream presence and service offerings and improved resource utilization in the Utility T&D segment, especially in the Texas market • Paid $30 million against the Term Loan during 1Q12 and an additional $6.7 million in 2Q12 ($ in millions) Q1 2012 Q1 2011 Contract revenue $419.1 $323.8 Adjusted EBITDA $6.2 ($6.6) Adjusted operating loss(1) N/A ($26.6)(1) Backlog (12 month) 980.8 946.8 Cash 48.9 68.3 Total debt 238.1 355.1(1)Adjusted operating loss from continuing operations excludes $6 million change in fair value of contingent earn-out liability for Q1 2011. 13 June 2012
  14. 14. Liquidity and Free Cash Flow(1)• Cash and cash equivalents of approximately $48.9 million• $175 million credit facility ‒ $25 million cash revolver available provided pro-forma leverage ratio does not exceed 3 to 1 ‒ $38 million letters of credit drawn ‒ $59 million cash revolver borrowings• Maturity profile ‒ $32 million of convertible notes due in December 2012 ‒ Senior credit facility due in June 2013 ‒ Term loan due in June 2014• Flexible maintenance and capital expenditure requirements(1)March 31, 2012 14 June 2012
  15. 15. WG is Undervalued Relative to Peers 2013 EV/EBITDA Valuation 2013 Price/Cash Flow Valuation8x 12x 10x6x 8x4x 6x 4x2x 2x0x 0x WG FWLT MTRX MYRG MTZ EXH PIKE DY CBI PWR TTEK TISI EXH WG MTZ MYRG TISI DY FWLT MTRX CBI TTEK PWR 2013 Price/Sales Valuation 0.8x 0.6x 0.4x 0.2x Source: Thomson One Pricing as of May 17, 2012 0.0x WG EXH MYRG MTRX MTZ PIKE FWLT DY CBI PWR TTEK TISI 15 June 2012
  16. 16. Key Investment Considerations• Worldwide brand recognition and reputation for quality, safety and schedule / price certainty• Strategically positioned to capture opportunities in to burgeoning markets including: electric transmission, hydrocarbon infrastructure and the Canadian oil sands• Broad range of services enhanced by in-house engineering• Critical scale, extensive geographic presence and strong customer base reduces cyclicality and risk• Balanced revenue base from recurring services and EPC / discrete projects• Trading at a discount to peer group based on most valuation metrics 16 June 2012
  17. 17. www.willbros.com

×