Worley Limited · ASX:WOR
Worley — WorleyParsons — Macquarie Securities Emerging Leaders Conference 2005
20 slides from Worley's conference presentation, May 6, 2005
Slide 1: Macquarie Securities 2005 Emerging Leaders Conference
WorleyParsons Macquarie Securities — 2005 Emerging Leaders Conference John Grill - Managing Director and CEO 6-May-05 HYDROCARBONS
Slide 2: Agenda
WorleyParsons Agenda Background Half-year Results Recent Wins Integration Update Strategy Update Outlook
Slide 3: WorleyParsons Background
WorleyParsons Background Leading professional services provider to the Energy, Resource and Complex Process Industries Organised into 4 Customer Sector Groups: Hydrocarbons | Power | Minerals & Metals | Infrastructure Across all phases of projects 1 2 3 4 5 ASSESS SELECT DEFINE EXECUTE OPERATE Proje
Slide 4: Half Year Highlights
WorleyParsons Half Year Highlights improved safety performance in 2004 80.5% rise in net profit after tax to $23.0m EBIT growth of 123.6% to $37.1m @40% EBIT growth from pre existing Worley businesses e Parsons E&C performs ahead of expectations Interim dividend increased to 7.5 cents Integration of
Slide 5: Material Contract Announcements
WorleyParsons Material Contract Announcements PNG Gas Project FEED
Slide 6: Material Contract Announcements
WorleyParsons Material Contract Announcements Belene Nuclear Power Plant for NEK eWorleyParsons (Reading, USA and Bulgaria) —2 x 1,000 megawatt units RasGas Consolidated Maintenance Contract eTransfield Worley TRAGS —LNG facilities Qatar North West Shelf LNG Phase V eWorleyParsons / Foster Wheeler —
Slide 7: Recent Wins — Synergy Projects
WorleyParsons Recent Wins — Synergy Projects ExxonMobil PNG Gas Project — Papua New Guinea eEOS Joint Venture (KBR / WorleyParsons) —PNG Gas to Australian Maritime Border Marathon Oil LNG Study — Equatorial Guinea eWorleyParsons (Houston) —Offshore gas production, onshore LNG production British Gas
Slide 8: Integration Update
WorleyParsons Integration Update Organisation performing strongly Performance of Parsons E&C ahead of expectations Transition implementation plan completed in March All operations overlap resolved with no loss of future value Ongoing program for further organisational development implemented Handful
Slide 9: 9,500 project services personnel
= 9,500 project services personnel
Slide 10: The Hedgehog and The Fox
WorleyParsons The Hedgehog and The Fox Foxes pursue many ends at the same time and see the world in all its complexity. They are “scattered or diffused, moving on many levels”. Hedgehogs understand that the essence of profound insight is simplicity. Hedgehogs see what is essential, and ignore the re
Slide 11: Strategic Direction
WorleyParsons Strategic Direction Strategic blueprint reviewed in light of acquisition of Parsons E&C eMore balanced, more capable, global e|lncreased contracted length of revenue e Greater diversification — geographic and industry Only minor changes to strategy required Key performance measures rev
Slide 12: Differentiators
WorleyParsons Differentiators Pre-2005 2005 and beyond
Slide 13: 1. Industry leadership in HSE performance
WorleyParsons = 1. industry leadership in HSE performance Progressive change in WorleyParsons scope of works @EPCM / PMC e Mega projects eSub-contractor management Greater responsibility for and ability to influence for overall HSE outcome on projects Our clients’ view eMost important element of per
Slide 14: 2. Outstanding Operational and Corporate Performance
2. Outstanding Operational and WorleyParsons ad Corporate Performance What’s changed e HSE now handled as an individual item (Differentiator 1) e New objective — Retention of key personnel > 95% What remains the same e Management of risk — No material events @ Quality and effectiveness of the board
Slide 15: 3. Focus on long-term contracts, integrated services contracts and alliances
3. Focus on long-term contracts, integrated WorleyParsons ad services contracts and alliances What’s changed e Increased alliance and ISC coverage in Americas and Europe e >70% revenue from long-term contracts (revised from >50%) What remains the same e Retain, extend and expand existing contracts e
Slide 16: 4. Success in project delivery — large and small
WorleyParsons 4. Success in project delivery — large and small What’s changed e Achieved previous target of securing 2 projects with >$1B capital value each e Major / mega projects — Capability gained through acquisition, to extend to South-East Asia, Australia e Small projects — Extend capability t
Slide 17: 5. Comprehensive geographic presence and industry capability
5. Comprehensive geographic presence and WorleyParsons industry capability What’s changed e Portfolio of infrastructure investments now treated as a subset Will continue to consider selective investment in infrastructure projects 30% of manhours in High Value Engineering centres What remains the sam
Slide 18: 6. Identification, integration and growth of value-adding acquisitions
WorleyParsons 6. Identification, integration and growth of value-adding acquisitions What’s changed e Achieved target of 1 major acquisition @ Capacity to undertake another major acquisition — Focus on bedding-down Parsons E&C acquisition What remains the same e Acquisitions to expand capability and
Slide 19: In Summary
WorleyParsons In Summary 4 Nba
Slide 20: Outlook
WorleyParsons Outlook “It is likely that the market for WorleyParsons’ services will continue to be very strong. Our key markets and sectors continue to experience positive conditions. “We indicated our expectation that the acquisition of Parsons E&C would be earnings per share accretive (pre amorti
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