Worley Limited · ASX:WOR
Worley — WorleyParsons — Investor Day (November 2008)
181 slides from Worley's investor day presentation, Nov 5, 2008
Slide 1: Strategy, Mergers & Acquisitions
For personal use only Strategy Mergers & Acquisitions Iain Ross – Managing Director Customer Sector Groups, Mergers and Acquisitions, and Strategy
Slide 2: Presentation Elements
PRESENTATION For personal use only ELEMENTS • WorleyParsons’ Differentiators • How the strategy process adds value • Strategic M&A planning • M&A process examples
Slide 3: Working Across all phases of Asset Lifecycle
Working Across all phases of Asset Lifecycle For personal use only
Slide 4: Our Vision
= © @ iD = = e) ) — @) o) — © UL resources & energy Our Vision WorleyParsons WorleyParsons will be the preferred global provider of technical, project and operational support services to our customers, using the distinctive WorleyParsons’ culture to create value for them and prosperity for our peopl
Slide 5: WorleyParsons' Differentiators
WorleyParsons’ Differentiators For personal use only
Slide 6: Differentiator
For personal use only Differentiator 5
Slide 7: Differentiator
For personal use only Differentiator 7
Slide 8: 2002 countries, offices, people
For personal use only 2002 14 countries, 37 offices, 4000 people
Slide 9: 2004 countries, offices, people
For personal use only 2004 18 countries, 52 offices, 4,500 people
Slide 10: 2006 countries, offices, people
For personal use only 2006 30 countries, 94 offices, 14,300 people
Slide 11: 2008 countries, offices, people
For personal use only 2008 38 countries, 118 offices, 32,200 people
Slide 12: How strategy process adds value
How strategy process adds value For personal use only Adding Value Structural Strategy Process Select Project Delivery HVPD Tailored to suit each Improve customer sector MEGA Further refined to fit opportunities in each location Sector Strategy with: Brownfield Greenfield • Global relationsh
Slide 13: Strategic M&A Planning
Strategic M&A Planning For personal use only Culture Market Customers Capacity to compete successfully Geography People Competitors MGT Capability Structure, Competencies, Systems Experience
Slide 14: M&A Process
M&A Process For personal use only 1 2 3 4 5 ENGAGEMENT INTEREST INTENT EXECUTION INTEGRATION
Slide 15: Acquisition Example: Colt Engineering
Acquisition Example: Colt Engineering For personal use only Leverage Market Workshare Customers - in country - outside country Geography Additional Sectors Competitors - M&M - Infrastructure - Power Capability
Slide 16: Acquisition Example: Polestar
Acquisition Example: Polestar For personal use only Leverage Market ¾ Global nuclear Customers Geography ¾ OEM Relationships Competitors Capability ¾ Front-end “pull through”
Slide 17: Concluding Points
For personal use only Concluding Points Strategy development has been a journey for us over many years. We build strategic advantage through our process and focus on what is happening to our customers Our M&A process supports the strategy
Slide 18: For personal use only
For personal use only
Slide 19: Hydrocarbons
For personal use only Hydrocarbons Brian Evans -- Managing Director
Slide 20: Presentation Elements
PRESENTATION ELEMENTS For personal use only • Capabilities & Services • Industry Position • From Our Customers’ View • Our Strategy • Recent Project Awards • Market Assessment • Notable Quotes
Slide 21: Comprehensive global capability
Comprehensive global capability For personal use only UPSTREAM Fixed Offshore Floating Production Systems Onshore/ Offshore Pipelines Subsea Systems Onshore Production Facilities Processing Plants LNG and LNG Regasification DOWNSTREAM Refining Petrochemicals Sulphur Management
Slide 22: Comprehensive range of services
Comprehensive range of services For personal use only X Select XBrings real world experience to the front end, value adding phases to maximise investment return and underlying confidence. X Deliver XConverts the highest potential value options identified at the Select phase, into fully defined and s
Slide 23: Global Rankings – Engineering News Record
Global Rankings – Engineering News Record For personal use only 2008 CATEGORY #2 International Design Firm #2 Industrial Process / Petroleum Design Firm #3 Pipelines Design Firm #6 Offshore and Underwater Facilities Design Firm #10 Petroleum Design Firm #12 Refineries and Petrochemical Plants Design
Slide 24: Crude Oil Price Effects
Crude Oil Price Effects For personal use only X Crude Price Closed at: X On Tuesday, October 28, 2008 X What about today and tomorrow? X What about OPEC?
Slide 25: Tier One Customer Base
Tier One Customer Base For personal use only
Slide 26: Hydrocarbons Strategy
Hydrocarbons Strategy For personal use only • Further strengthen Key IOC and NOC Customer Relationships • Focus on long term contracts and asset-based services • Success in project delivery & Growing Hubs • Step out strategies • Pull through of capability, services and sectors • Unconventional Hydro
Slide 27: Recent Awards
Recent Awards – For personal use only XArkuntun Dagi – Sakhalin 1 XAgip - Kashagan Full Field Development XWorleyParsons Russian JV, XA JV led by Worley-Parsons was awarded the front-end engineering for the full field Sakhneftegaz Engineering, was awarded development of the giant Kashagan oilfield i
Slide 28: Expanding Geographic Presence
Expanding Geographic Presence For personal use only
Slide 29: Recent Awards – Long Term Contracts
Recent Awards – Long Term Contracts For personal use only X ConocoPhillips Australia X BP EPMS Global Contract XAwarded 3 year contract for XAwarded one of three global Engineering, ConocoPhillips’ operating assets in Project Mangement Services contracts for Australasia including 3 Bayu Undan BP’s w
Slide 30: Recent Awards – Step Out Strategies
Recent Awards – Step Out Strategies For personal use only X HESS Pony Platform - Gulf of Mexico X ConocoPhillips Pipeline Alliance – USA •Subsea System and the TLP Hull and X Five-year renewable Alliance for Mooring Pre-FEED, FEED and execution engineering, procurement & construction support. Hess C
Slide 31: Global Hydrocarbons Market Update
Global Hydrocarbons Market Update For personal use only X Brownfield likely to lead Greenfield in Hydrocarbons demand (as expected) X Major existing Hydrocarbons projects within WorleyParsons have seen very little effect X Some softening in the Global Downstream/Refining and Petrochemicals markets h
Slide 32: Customer Comments
Customer Comments For personal use only X "We have previously indicated that we will be investing about $125 billion over the next five years and that still looks pretty much in place," said Exxon Mobil Chief Executive Rex Tillerson —WSJ Oct 21, 2008 X Chevron CEO Dave O'Reilly echoed these comments
Slide 33: Customer Comments
Customer Comments For personal use only X ConocoPhillips CEO Jim Mulva said ConocoPhillips "will probably keep its capital spending budget flat in 2009 amid continued volatility in the commodity and credit markets…” – ConocoPhillips Quarterly Earnings Call, October 22, 200 X Saudi Arabia’s mega $260
Slide 34: Summary Points
SUMMARY POINTS •Five years of strategy has proven For personal use only successful & robust throughout market cycles. •Investment to create local offices close to customers crystallizes the Improve value proposition: invaluable during the next period. •Traditional Hydrocarbons customers: - IOC or ma
Slide 35: For personal use only
For personal use only
Slide 36: For personal use only
For personal use only
Slide 37: Ed Smith – President
For personal use only Ed Smith – President
Slide 38: Presentation Elements
PRESENTATION For personal use only ELEMENTS ► Capability Overview ► Transaction Overview Merged entity branding Complementary capabilities Value to customers Synergy wins achieved ► Today’s perspective on the deepwater market Key growth regions Industry leadership
Slide 39: Capability overview
Capability overview For personal use only MARINE PIPELINES FLOW ASSURANCE SUBSEA SUBSEA SYSTEMS SYSTEMS FLOATING SYSTEMS LNG SERVICES MARINE RISER SYSTEMS MARINE TERMINALS
Slide 40: Understanding subsea challenges
Understanding subsea challenges For personal use only
Slide 41: Transaction overview
Transaction overview For personal use only X April 1 – 2008 WorleyParsons acquired INTEC Engineering from Hereema Group X Key to WorleyParsons’ long term hydrocarbons strategy Stronger operating bases in Asia, Europe, US Gulf of Mexico, Latin America and the Arctic Specialist high-end consulting
Slide 42: Merger of capability to one brand
Merger of capability to one brand For personal use only X All floating systems, offshore pipelines and subsea capability
Slide 43: Complementary capabilities
Complementary capabilities For personal use only INTECSEA Hull and Moorings for TLPs, Spars and Semi submersibles and TTRs WorleyParsons Topsides, Jackets and overall PM services INTECSEA Marine Pipelines, Production Risers, Subsea, Flow Assurance and FPSOs
Slide 44: Value to INTECSEA customers
Value to INTECSEA customers For personal use only X Covers subsea and floating systems from wellhead to shoreline X Minimizes interface management issues X Provides concept-neutral solutions X Offers creative what-if and proven alternatives X Help in capital planning and prioritizing development opt
Slide 45: Key Projects
Key Projects For personal use only X BHPB’s Shenzi Development X Burullus Gas’ West Delta Deep XINTECSEA have been awarded the pre- XINTECSEA have been awarded an eighth FEED through execution for subsea, risers, extension on this project, continuous as owner's flowlines and Tension Leg Platform for
Slide 46: Key Projects
Key Projects For personal use only DT WCTP 9 00 1000 M-2 130 1100 0 M-3 1 00 2 14 M-1 12 00 1500 H-1 1600 FPSOs 1 – w/gas injection 2 – w/water injection 1700 X Hess’ Pony Development, GoM USA X Kosmos Jubilee, offshore Ghana INTECSEA were awarded the hull & moorings XINTECSEA were awarded the large
Slide 47: Perspective on the deepwater market
Perspective on the deepwater market For personal use only X Offshore production growth forecast 2007-11: Shallow water 18% growth Deepwater 78% growth X Deepwater oil projects face internal hurdle challenges for oil < USD80 100 200 Shallow Off shore 180 Deep 90 Onshore 160 140 Expenditure ($bill
Slide 48: Key growth areas for deepwater
Key growth areas for deepwater For personal use only X INTECSEA is well positioned to meet the future needs of the market Gulf of Mexico Asia Pacific West Africa Brazil
Slide 49: INTECSEA – Industry leadership
INTECSEA – Industry leadership For personal use only Largest FPSO Deepest subsea production system Longest oil and gas tiebacks In the subsea industry the challenges are only First subsea allocation meters increasing: deeper, longer, First super duplex umbilical technically more demanding
Slide 50: Summary Points
SUMMARY POINTS For personal use only ► The strategic acquisition of INTEC Engineering has optimally positioned WorleyParsons is the deepwater market. ► Merging the capability of WorleyParsons, Sea Engineering and INTEC Engineering into INTECSEA has been welcomed by customers ► The deepwater market i
Slide 51: For personal use only
For personal use only
Slide 52: Select – Front End Consulting Division
For personal use only WorleyParsons Select Front End Consulting Division Andy Cole – Global Director
Slide 53: Presentation Elements
PRESENTATION For personal use only ELEMENTS ► What is WorleyParsons’ Select ► Why do companies use Select services? ► The breadth of our capability ► What is our competitive advantage? ► Examples of current projects ► How they influence our business
Slide 54: Who are we?
Who are we? For personal use only X Select is a specialist capability of WorleyParsons, focused on project viability assessment and selection Select covers Phases 1 & 2 … It is the front-end consulting division of WorleyParsons
Slide 55: Why is Select needed?
Why is Select needed? For personal use only X Phase 1 & 2 are known as the ‘value adding’ phases of the asset life cycle X After Select … the project maintains value by keeping to cost & schedule (or erodes value through poor execution)
Slide 56: When do customers use Select?
When do customers use Select? For personal use only
Slide 57: Our global presence
Our global presence For personal use only X There is a Select division in each WorleyParsons location that has the technical expertise and the client base to support such a service | 16 locations | 6% of company EBIT Canada Southeast Asia, • Calgary China & Middle East • Edmonton • Beijing • Toronto
Slide 58: Some differentiators
Some differentiators For personal use only 1. Select is an internal division of WorleyParsons – not a separate company Niche consulting skills combined with practical experience in project delivery and plant operation. Access to a global data base of major capital projects enables customers to m
Slide 59: Select markets
Select markets For personal use only X The Select service offering is tailored to the Customer Sector Group Hydrocarbons Power Minerals & Metals Infrastructure & Environment X Greenfield development X Strategic planning and X Strategic investment X Brownfield optimization financial analysis decision
Slide 60: Why is Select important to WorleyParsons?
Why is Select important to WorleyParsons? For personal use only X Winning the Select phase of a project positions WorleyParsons for the “pull-thru” opportunity. X Select skills attract a premium rate in the market X Strategy delivery platform X Entry vehicle into new markets & regions X Develops kno
Slide 61: M&M Perth project pipeline, January 2007
Example : M&M Perth project pipeline, January 2007 For personal use only SELECT DELIVER IMPROVE Worsley Alumina Efficiency & BHP Billiton Growth Nickel West FMG Cloud Break Team 45 Moly Mines Spinifex Ridge BHPBilliton Worsley Alumina 28/10/2008
Slide 62: M&M Perth project pipeline, January 2008
Example : M&M Perth project pipeline, January 2008 For personal use only SELECT DELIVER IMPROVE Sinosteel Worsley Alumina Midwest & Efficiency BHP Billiton Weld Range Growth Nickel West FMG Cloud Break Team 45 FMG Moly Mines Solomon Team 100 FMG Spinifex Ridge Solomon Team 200 Consmin BHPBilliton Mi
Slide 63: M&M Perth project pipeline, January 2009
Example : M&M Perth project pipeline, January 2009 For personal use only SELECT DELIVER IMPROVE NEW RioTinto 2 NEW Citadel Copper Mine Devel. NEW Rio Tinto Rail NEW Sinosteel Maintenance Worsley Alumina RioTinto 3 Midwest Efficiency & BHP Billiton Weld Range Growth Nickel West NEW FMG Bauxite Res. C
Slide 64: Examples of past 'pull through' from Select
Examples of past ‘pull through’ from Select For personal use only XSingapore LNG Terminal XNorth Rankin 2 XCustomer: Power Gas XCustomer: Woodside Energy Limited XStatus: Currently in FEED Phase XStatus: Currently in Detail Design Phase XTo increase the security of Singapore’s domestic gas XThis is
Slide 65: Examples of past 'Pull Through' from Select
Examples of past “Pull Through” from Select For personal use only XMa’aden Phosphate Project X Perth Seawater Desalination Plant XCustomer: Saudi Arabian Mining Company X Customer: Multiplex Degremont JV XStatus : On going PMC role X Status : Operating Asset XThe project covers development of the ph
Slide 66: Examples of past 'Pull Through' from Select
Examples of past “Pull Through” from Select For personal use only X Pilbara Iron Ore and Infrastructure Project X MacKay River SAGD Expansion X Customer: Fortescue Metals Group X Customer: PetroCanada X Status : Operating asset X Status: Completed FEED Phase X WorleyParsons’ role on this project beg
Slide 67: Examples of current Select studies
Examples of current Select studies For personal use only XAlaska North Slope Renewal Program X Wheatstone Development XCustomer: BP Alaska X Customer: Chevron Australia Ltd XSelect office : Arcadia, California X Select Office : Perth, WA XBP Exploration Alaska established the Alaska North Slope X Ch
Slide 68: Summary Points
SUMMARY POINTS For personal use only ► Select is a key element of the WorleyParsons’ service offering covering the front end development of projects ► Consulting services executed from 16 locations ► Strong track record in all four industry sectors ► WorleyParsons is committed to further developing
Slide 69: For personal use only
For personal use only
Slide 70: Mega-projects
For personal use only Mega-projects Bill Hall – Managing Director
Slide 71: Presentation Elements
PRESENTATION For personal use only ELEMENTS ► Defining mega-projects ► Execution challenges ► Our approach ► Examples of current mega- projects
Slide 72: Defining mega-projects
Defining mega-projects For personal use only X Total installed cost for our portion of the project in excess of $1 billion X Significant services X Engineering X Engineering/Procurement X Engineering/Procurement/Construction Management (EPCm) X Program Management (PMC) services overseeing multiple c
Slide 73: The number of mega-projects is increasing
The number of mega-projects is increasing For personal use only X Remote locations X Technology challenges X Merged customers chasing elephants X Cost increases X Economy of scale
Slide 74: Key challenges
Key challenges For personal use only X Logistics X Complexity X Need to workshare X Need to partner X Cost and schedule prediction and achievement X Construction contractor size and capability X Foreign exchange X Cash flow predictions and management X Impacts on getting it wrong
Slide 75: Our approach
Our approach For personal use only X Treat as a stand alone business X Run by a Managing Director charged with: • Starting the business up • Maintaining a safe environment • Producing a quality product • Operating on schedule • Operating within budget. • Set up stage for Improve X Employ common syst
Slide 76: Our approach
Our approach For personal use only X Project management staff are global resources X Local resources X Maintain a long track record as an exemplary partner X Excellence in Select phase X Construction management capability X Worldwide procurement
Slide 77: Pluto; Exxon Mobil Singapore Parallel Train
For personal use only X Pluto Exxon Mobil - Singapore Parallel Train
Slide 78: Chevron Phillips - NCP
For personal use only Chevron Phillips - NCP
Slide 79: TCO, Kazakhstan
For personal use only TCO, Kazahkstan
Slide 80: Agip KCO – Kashagan Full Field Development
For personal use only Agip KCO – Kashagan Full Field Development
Slide 81: Nigeria – Maintain Integrity Projects
For personal use only Nigeria – Maintain Integrity Projects
Slide 82: Woodside Energy - Pluto LNG development
For personal use only Woodside Energy - Pluto LNG development
Slide 83: Arkutun – Dagi Field Development
For personal use only Arkutun – Dagi Field Development
Slide 84: Belene Nuclear Power Plant
For personal use only Belene Nuclear Power Plant
Slide 85: UAE – EMAL Aluminium Smelter
For personal use only UAE – EMAL Aluminium Smelter
Slide 86: Saudi Arabia – Ma'aden
For personal use only Saudi Arabia – Ma’aden
Slide 87: Summary Points
SUMMARY POINTS For personal use only ► Mega-projects will continue to be funded by tier one companies and nations ► Successful execution of these projects is challenging and within the remit of few contractors around the world ► The creation of a separate division to meet these challenges has proven
Slide 88: For personal use only
For personal use only
Slide 89: Improve
WorleyParsons For personal use only Improve Graeme Henderson – ANZ Director Improve Colin Hamilton – One Steel Alliance Manager
Slide 90: Presentation Elements
PRESENTATION For personal use only ELEMENTS ►What is Improve and why is attractive to WorleyParsons? ►Global growth of the Improve business ►Improve growth strategies
Slide 91: What is Improve?
What is Improve? For personal use only ► Improve focuses on the worldwide asset services business. helping our customers achieve world class capital effectiveness in their brownfield operations through our unique approach to long term contracts. ► We provide a full range of: • High value project del
Slide 92: Why Improve contracts are attractive
Why Improve contracts are attractive For personal use only WorleyParsons’ Improve Model Traditional Contracting New Asset EPCM $50m PMC or EPCM AUD100m $250m Improve Existing Asset $50m PMC or Replacement Asset EPCM EPCM AUD100m $250m Improve Existing Asset
Slide 93: Total asset life-cycle value approach
Total asset life-cyle value approach For personal use only Brownfield Assets “Leave behind” Improve Improve Major Projects Major • Asset Services • Major green-fields Brownfields & Management Projects • Operations & Maintenance Support • Business Improvement “Pull • Project portfolio through” delive
Slide 94: Why Improve is important to WorleyParsons
Why Improve is important to WorleyParsons For personal use only X Executing Improve work ‘grounds’ WorleyParsons in the realities of the key success factors for our customers in their industries and regions. X Enhances WorleyParsons safety culture X Exceptional opportunity to identify high value opp
Slide 95: Our competitive advantage
Our competitive advantage For personal use only 1. Location, location, location 114 offices worldwide – 85 offices with less than 200 personnel Close to customers’ operations and substantial enough to support full service 2. Service tailored to customer business objectives in each region and ind
Slide 96: Global growth of Improve contracts
Global growth of Improve contracts For personal use only 160 140 120 100 80 60 40 20 0 2002 2003 2004 2005 2006 2007 2008 Year
Slide 97: Global map of Improve contracts – Currently
Global map of Improve contracts – Currently 139 For personal use only Canada Improve Customers (36 Contracts) • Agrium • ConocoPhillips Canada • Innovene • Shell (2 contracts) Europe/Africa Improve Customers (3 Contracts) • Albian Sands (Shell) • Devon Canada Corporation • Layton Bros Construction C
Slide 98: Our preferred position with customers
Our preferred position with customers For personal use only Best Price Analysis Global Product Sourcing Redesign Category Sourcing Strategy Process Strategic Product Relationship Redesign Improvement Few qualified suppliers Category High dependence on supply Sourcing Volume Strategy A degree o
Slide 99: Improve growth strategies
Improve growth strategies For personal use only Scenario A B C D E Key Client Alliance Alliance Alliance Project Alliance Grow Grow Create Retain Service Service Reference Alliance Site Brown- fields Project Alliance Alliance Alliance Site #1 Site #2 Site #3 Value to WorleyParsons
Slide 100: In-house capability development program
In-house capability development program For personal use only Approximately A$40M invested in the Improve capability over the past ten years People training and development Systems and operating platform Forums and conferences Knowledge management Decision making software and intellectua
Slide 101: Improve Full Value Index
Improve Full Value Index For personal use only Business Benefits from Global Sharing of Leading Practices Europe Canada Asia Improve USA ANZ Latin America
Slide 102: Alliance, Newcastle, NSW
For personal use only Alliance, Newcastle, NSW Colin Hamilton – Alliance Manager
Slide 103: OneSteel timeline
OneSteel timeline For personal use only Alliance Value Pre Project Stream Review reviews Mapping Alliance Go/No-Go Overhead Project Deployment Meeting Intranet Review Cycle Time FEL Health Gated Reduction Index Process Quarterly Scoring Business Capital Plan Review Profit 90 day Steering @ risk plan
Slide 104: Key metrics on the One Steel contract
Key metrics on the One Steel contract For personal use only 2002 2004 2008 Alliance productivity (capital spend per employee) (Alliance Commenced) Budget $25M $25m $25M $400,000 $350,000 Spend $16M $11.5M $23.9M $300,000 $250,000 % budgeted 40% 35% 5% $200,000 projects cancelled $150,000 or deferred
Slide 105: Cycle time
Cycle time For personal use only Project Cycle Time Jun 08 900 Execute 800 Authorisation 700 Define Phase Assess/Select Gap 600 Calendar Days Assess Phase 500 400 3 9 5 10 300 5 1 4 12 200 14 3 7 2 8 14 10 3 5 5 5 100 15 6 3 2 2 17 4 9 16 13 9 5 12 1 0 et 05 05 06 06 06 06 07 07 07 07 08 08 e rg t i
Slide 106: Key Learnings
Key Learnings: For personal use only ► Quality user requirement specification ► Front End Loading process ► Right rigor at right time (streamline where appropriate) ► Quarterly capital review meeting ► Rolling plan, minimum Assess phase to enter and composite ranking ► Creatively challenge and kill
Slide 107: Summary Points
SUMMARY POINTS For personal use only ► Improve is a core offering within WorleyParsons that provides multiple options for ongoing services to customers ► Continues to be globally successful at retaining and growing existing contracts and securing new contracts ► Have developed a strong in-house know
Slide 108: For personal use only
For personal use only
Slide 109: Risk Management
For personal use only WorleyParsons Risk Management Greg Clinnick – Global Director
Slide 110: Presentation Elements
PRESENTATION For personal use only ELEMENTS ► Enterprise risk management rationale ► Risk management framework ► Business resilience R3 ► Risk management resources ► Example of the project risk management process ► Alignment with corporate vision
Slide 111: Enterprise risk management
Enterprise risk management For personal use only X Vision To increase shareholder value by creating in WorleyParsons a culture of risk management commensurate with our entrepreneurial spirit X Goals To have a risk management process in place across the whole Enterprise To have risk management
Slide 112: Why do we do it?
Why do we do it? For personal use only X Corporate governance and compliance with ASX Principle 7 X A business necessity. Complies with risk management and ISO standards X Proven to be effective in increasing the likelihood of achieving desired outcomes X Supports alignment with clients and stakehol
Slide 113: Alignment with corporate vision
Alignment with corporate vision For personal use only SEEK AVOID X First grade clients X Aggressive commercial and contractual terms X Fair and reasonable contract terms X Lump sum turn key EPC projects X Reimbursable commercial arrangements X Construction (although low risk reimbursable constructio
Slide 114: WorleyParsons risk management framework
WorleyParsons risk management framework For personal use only X Delegation of authority High ethical and corporate governance standards Business appropriate reporting structures and communications Contract review and special risks Effective systems and processes (WPMP/EMS/Oracle/Knowledge Ma
Slide 115: Business Resilience R3
Business Resilience R3 For personal use only X Ready, Response, Recovery Crisis and emergency management Security and intelligence Mobility management Business continuity Reputation management X Application High risk locations Emergency medical treatment and evacuations Hurricanes
Slide 116: Project risk management process
Project risk mamagement process For personal use only X Requires that all new proposals and projects are assessed, classified Risk Map Insignificant Minor Consequence Moderate Major Catastrophic and managed in terms of the Before Treatment 1 Up To $10,000 2 Up To $100,000 3 18 33 56 57 81 3 Up To $1
Slide 117: Project risk process outcomes
Project risk process outcomes For personal use only X Alignment of the project team Risk Map Insignificant Minor Consequence Moderate Major Catastrophic After Treatment 1 2 3 4 5 X Better understanding of the Up To $10,000 Up To $100,000 3 18 33 56 57 81 Up To $1,000,000 9 46 92 107 113 Up To $10,00
Slide 118: Project risk process deliverables
Project risk process deliverables For personal use only
Slide 119: Outcomes from risk management
Outcomes from risk management For personal use only X No material events X Few legal claims or disputes X Outstanding client and long term contract retention record X Sustained growth and profitability X Successful strategies and business decisions X Good project outcomes for clients
Slide 120: Deliverables from formal risk workshops
Deliverables from formal risk workshops For personal use only X Register of risks and opportunities for the project X Mitigation plans with assigned responsibilities and completion dates X Mitigation plans aligned with risk ratings and priorities X Risk map X Alignment of project team and other stak
Slide 121: Summary Points
SUMMARY POINTS For personal use only ► Our aim is to manage and control risks to achieve optimal outcomes in line with corporate strategy ► Impregnated into the culture of the company and embedded into our Management Systems ► Completed global roll out business resilience program – R3 ► Ongoing vigi
Slide 122: For personal use only
For personal use only
Slide 123: Knowledge Management
For personal use only WorleyParsons Knowledge Management Dr Colin McIvor – Chief Knowledge Strategist
Slide 124: Presentation Elements
PRESENTATION For personal use only ELEMENTS ► Expert Locator ► Discipline Portal ► Global Discussion Groups ► WorleyParsons WIKI
Slide 125: Expertise locator
Expertise locator For personal use only 5/11/2008
Slide 126: Discipline portal
For personal use only Discipline portal
Slide 127: Global discussions
For personal use only Global discussions
Slide 128: WorleyParsons' Wiki
For personal use only WorleyParsons’ Wiki
Slide 129: Summary Points
SUMMARY POINTS For personal use only ► WorleyParsons is a knowledge based company – our ability access our full knowledge base differentiates us in many markets ► Global systems permit individuals and teams to collaborate and solve customers issues efficiently ► The knowledge systems have been built
Slide 130: For personal use only
For personal use only
Slide 131: Project Delivery Systems
Project Delivery For personal use only Systems Ensuring consistency and efficiency through a tailored approach Mike Reilly – Global Director
Slide 132: Presentation Elements
PRESENTATION For personal use only ELEMENTS ► Project delivery system needs ► Defining WPMP and EMS ► Live demonstration of both tools
Slide 133: Project delivery system needs
Project delivery system needs For personal use only ► WorleyParsons is a full service project delivery company ► Mega-project developments in all industries involving conceptual studies through to Program Management and EPCM ► Approximately 140 Improve contracts worldwide each involving hundreds of
Slide 134: WPMP and EMS
WPMP and EMS For personal use only X WorleyParsons Project Management Process WPMPV3 Process for planning how to deliver the project X Enterprise Management System Contains processes and detailed procedures for delivering the project, once planned
Slide 135: What is WPMP?
What is WPMP? For personal use only ► It is a risk based process for developing (and supporting) the Project Execution Plan suited to needs of the project ► Provides common, scaleable framework for project execution ► Based on a phased and gated development process Plan Your Work Work Your Plan
Slide 136: The importance of scalability
The importance of scalability For personal use only Small Project Large Project WPMPV3
Slide 137: EMS key features
EMS key features For personal use only ► Global consistency stemming from corporate entity content that flows down to local entities with agreed adjustments to suit local requirements ► High level documents (policies, executive directives) establish expectations and do not vary globally ► Two arms o
Slide 138: Summary Points
SUMMARY POINTS For personal use only ► The project management systems enable a broad cross section of projects to be executed in a predictable manner ► The systems have been built to enable a “scalable” level of management and administration and to reflect WorleyParsons risk management approach ► Ov
Slide 139: For personal use only
For personal use only
Slide 140: WorleyParsons Canada
For personal use only WorleyParsons Canada Larry Benke – Managing Director
Slide 141: Presentation Elements
Presentation Elements For personal use only ► Merger ‘Report Card’ ► Strategy overview ► Synergy successes ► Outlook
Slide 142: January 2007 - Colt & WorleyParsons Canada
January 2007 - Colt & WorleyParsons Canada For personal use only Canada Fort McMurray Grande Prairie Edmonton Lloydminster Vancouver Victoria Calgary Nanaimo Toronto Sarnia
Slide 143: Merger 'Report Card'
Merger ‘Report Card’ For personal use only X Integration successfully completed X Diversification into all four CSGs X Global centre for: Heavy oil Pipelines Geomatics Base Metals (one of) X Some early synergies: ‘Ready for Operations’ capability Large module expertise EcoNomics attrac
Slide 144: Growth of the Canadian business
Growth of the Canadian business For personal use only 8,000 Personnel 6,000 WP WP Canada 4,000 Colt Colt 2,000 2007 2007 2008
Slide 145: WorleyParsons Canada, October 2008
WorleyParsons Canada, October 2008 For personal use only Anchorage Canada Fort St. John Fort McMurray Kitimat Grande Prairie Cold Lake Edmonton Lloydminster North Vancouver Vancouver Saskatoon Victoria Sudbury Calgary Nanaimo Toronto Sarnia
Slide 146: Canada 'Strategy on a Page'
Canada ‘Strategy on a Page’ For personal use only Infrastructure & Power Environment ‘Step out’ strategies underpinned by existing business X Global centre for marine and coastal X Nuclear power capability Common Elements: X EIA capability X Improve in West X Global Support for geomatics Hydrocarbon
Slide 147: Improve Business
Improve Business For personal use only X Significant part of the Hydrocarbons business • Asset Management • Multiphase Oilsands Projects Phases X New opportunities in Power, Minerals and Metals X Project portfolio positioned for Improve X New offerings • Data management Syncrude, Alberta Canada • HV
Slide 148: Nuclear power initiative
Nuclear power initiative For personal use only X Decision made to build Canadian capability X Reading and Belene offices very supportive, immediate credibility X N286.1 (engineering) and N286.2 (procurement) certifications X OPG nuclear waste management Successfully completed 2 projects Opportun
Slide 149: Minerals & Metals initiatives
Minerals & Metals initiatives For personal use only X EPCM project delivery X New Edmonton capability X Sudbury Improve growing X Westmar acquisition July 2008 Marine and port structures Bulk materials handling and loading Key element of our ‘Mine to Market’ strategy X Awarded PEP for Vale Ser
Slide 150: EcoNomics Successes
EcoNomics Successes For personal use only X Key risk mitigation strategy for customers…a differentiator for WorleyParsons X Total North Mine President’s Award for work on carbon neutrality Developing Dry Tailings…will be new benchmark X Statoil Thermal SAGD Sustainability deployed in technolog
Slide 151: Outlook…given the financial markets
Outlook…given the financial markets For personal use only X Staff levels and project pipeline remain robust X Price of oil is important Oil sands operating costs Oil price balanced by US$ appreciation Favorable royalty regime Long project timelines X Financing capability more important Pro
Slide 152: Minerals & Metals
For personal use only Minerals & Metals Mark Southey – Managing Director
Slide 153: Presentation Elements
PRESENTATION For personal use only ELEMENTS ► Strategy ► Structure ► Customers ► Sub-sectors
Slide 154: Core growth strategies
Core growth strategies For personal use only X Expand our global footprint X Diversify across commodities X Extend the range of services across the asset lifecycle X Focus on long-term contracts and customer relationships
Slide 155: Robust business platform
Robust business platform For personal use only g China Europe Specialist Base Load Select Middle East Iron Ore Alumina 6% 6% Minerals Engineering 17% Canada 8% 20% 9% 2% Projects 11% US & Latin Aluminium America 31% Ferrous 12% 2% Metals Asia 3% 3% Coal 2% Africa Chemicals Improve 0% 17% Base Metals
Slide 156: Six current strategic initiatives
Six current strategic initiatives For personal use only X Strategic Customer Focus X Grow into developing M&M markets X Focus on ‘Mine to Market’ opportunities X Grow Improve globally X Develop Select offering X Enhance HVE to HVPD capability
Slide 157: Strategic Customer Focus
Strategic Customer Focus For personal use only 2003 2008 2011 Tier 3 Tier 3 Tier 1 Tier 1 Tier 3 Tier 1 Tier 2 Tier 2 Tier 2
Slide 158: Global presence – still room for growth
Global presence – still room for growth For personal use only
Slide 159: Mine to Market
Mine to Market For personal use only X Global trend towards large scale investments X Concentrate demand in regions remote from the mine Mine Concentrator Mineral Processing Ship (Rail / Port) WP Traditional Offering Mine Concentrator Mineral Processing Ship (Rail / Port) WP “Mine to Market offering
Slide 160: Improve in an M&M Environment
Improve in an M&M Environment For personal use only X M&M processing and production facilities are large, costly to operate and subject to extreme ‘wear & tear’ X A safe, compliant and competitive operation can only be maintained by cost effectively managing a large portfolio of brownfield work • Ou
Slide 161: Sector outlook: Iron ore
Sector outlook: Iron ore For personal use only X Secured workload We have a significant and diversified portfolio of secured major iron ore contracts X Focus on funded projects X Pipeline of future work Several major proposals currently in progress Fortescue Metals
Slide 162: Sector outlook: Base Metals
Sector outlook: Base Metals For personal use only X Currently have strong positioning in Improve market sector in Australia X Strong, global Select capability in brownfields optimisation and expansion X Currently engaged in major projects with tier 1 customers X EcoNomics - Air quality and water man
Slide 163: Sector outlook: Base Metals
Sector outlook: Base Metals For personal use only X Global footprint provides access to greater opportunity X ‘Mine to Market’ solutions attractive in new and established regions • Leveraging Westmar capability from recent acquisition X Eastern Europe and South America is a focal point for new resou
Slide 164: Sector outlook: Coal
Sector outlook: Coal For personal use only X Current coal exposure is in Improve and brownfield projects X Significant opportunity to grow Improve X ‘Mine to Market’ offering ideally suited to this sector X Expectations of reduced demand, but less impacted than other commodities X Significant EcoNom
Slide 165: Sector outlook: Steel
Sector outlook: Steel For personal use only X WorleyParsons has an Improve focus X Select opportunities for smelter optimisation and off-gas handling X Focus on air quality and energy optimisation • WorleyParsons Gas Cleaning supporting US steel industry to meet emission compliance X Limited downtur
Slide 166: Sector outlook: Aluminium/alumina
Sector outlook: Aluminium/alumina For personal use only X Aluminium likely to recover more slowly than other commodities X Several studies, projects and Improve contracts in hand with tier 1 and tier 2 companies X Very strong Improve base load with the opportunity to grow X Select engagement for gre
Slide 167: Sector outlook: Chemicals
Sector outlook: Chemicals For personal use only ► Growth, profitability and investment in the chemical sector is driven by: Market growth CAPEX / OPEX Logistics f Fertilizers Population/ Wealth f Solar Energy f China f Middle East and North Africa Ma’aden, Saudi Arabia f United States
Slide 168: Summary Points
SUMMARY POINTS For personal use only ► Well diversified – Not dependant on one commodity or one customer type or region ► Strong Improve backbone with opportunity to grow ► Well positioned to take advantage of the sustainable opportunities in each of the sectors and regions in the short term ► Long
Slide 169: For personal use only
For personal use only
Slide 170: Australia and New Zealand
For personal use only Australia and New Zealand Andrew Wood – Managing Director
Slide 171: Presentation Elements
PRESENTATION For personal use only ELEMENTS • Current status • Regional Initiatives • Workshare • Water • Rail • LNG • Power • Retaining and securing Improve contracts
Slide 172: Current Status
Current Status For personal use only X ANZ Personnel – 8,100 • Up 35% on Oct 2007 • Only Australian full service delivery company X 26 offices • 17 based close to customers resource operations 9,000 8,000 7,000 6,000 Hydro 5,000 2008 M&M Infra 4,000 Pow er 3,000 2007 2,000 2006 1,000 0
Slide 173: Regional Initiative - Workshare
Regional Initiative - Workshare For personal use only X 1Q09- ANZ imported 260,000 hours of work from other WorleyParsons offices around the world X 1Q09- ANZ exported 116,000 hours to other offices (primarily Beijing for HVE engineering) In September the Victorian operation was awarded the Victoria
Slide 174: Regional Initiative - Water
Regional Initiative - Water For personal use only Gibson Island Water Recycling Perth Desalination Plant Wimmera Mallee Pipeline Stage 2 Sydney Desalination Plant
Slide 175: Regional Initiative – Transportation (Rail)
Regional Initiative – Transportation (Rail) For personal use only COMMONWEALTH AUSTRALIA: DEPARTMENT OF INFRASTRUCTRE, TRANSPORT AND REGIONAL PLANNING (DOTARS).
Slide 176: Regional Initiative - LNG
Regional Initiative - LNG For personal use only Prospect Size (mtpa) TIC** (AUD bn) FID Pluto Train 2 4.5 4 2009 Wheatstone 10 7 2010 Greater Sunrise 5.3 6 2009 Gorgon 15 11 2011 Ichthys 7.6 7 2008 Scarborough 6 6 2010 Prelude 3.5 5 2009 Browse 14 12 2010 Santos 4 6 2010 QGC/BG 4 8 2009 Arrow Energy
Slide 177: Sustainable Business Solutions in Power
Sustainable Business Solutions in Power For personal use only X Leading companies and governments to new solutions. X Using our technical expertise, relationships and deliver capability to provide regional solutions for the benefit of all parties and the community Integrated Power - Pilbara Advanced
Slide 178: Regional Initiative – Retain, Expand Improve
Regional Initiative – Retain, Expand Improve For personal use only • GEMCO • ConocoPhillips • Apache • Incitec Pivot • BP Kwinana • ConocoPhillips • Energy Developments • BMA Goonyella Riverside Mine • Griffin Power (TWPS) • KJO • Occidental • Vermillion • Boyne Smelters (BSL) • Verve Energy [TWPS]
Slide 179: Recent Improve Awards
Recent Improve Awards For personal use only XThe Worsley Alumina Improve contract has consistently been ranked Top Quintile. The contract has been rated by BHP Billiton as Best Practice in: Investment Process Owner Buy-in; Project; Recognition; and Front End Loading. After completing the Select phas
Slide 180: Woodside Energy North Rankin
For personal use only Woodside Energy North Rankin 2
Slide 181: Summary Points
SUMMARY POINTS For personal use only ► Substantial business within WorleyParsons’ global operations ► Significant amount of sector, project and technical leadership exported to global operations ► Well positioned in Water, Rail, LNG, Power markets across ANZ ► The trust built through our customer re