Worley Limited · ASX:WOR
Worley — WorleyParsons — FY2006 Earnings Presentation
32 slides from Worley's earnings presentation, Aug 29, 2006
Slide 1: Full Year Results 30 June 2006
WorleyParsons resources & energy Full Year Results 30 June 2006 John Grill, Chief Executive Officer David Housego, Chief Financial Officer Fer inane Se ee when-experience counts
Slide 2: WorleyParsons Background
WorleyParsons Background Tesources & energy # Leading professional services provider to the Energy, Resource and Complex Process Industries »® Across all phases of projects 1 2 3 4 5 IDENTIFY SELECT DEFINE EXECUTE OPERATE Project Feasibility [»] Development Options [] Finalise Scope i»! Produce Asse
Slide 3: Global Reach
WorleyParsons Global Reach Tesources & energy a a 2 @Philippinos Marila be lies Kuala Beleit Malaysia Kuala Lempty. and ses Sriacha Tewnevile Mackay’ Gladstone ‘BPSDENE @ Whangarei Spotswood ee Bir ygtasmania pad New Plgouth Grrrconres NEW ZEALAND 14,300 project services personnel | 94 offices | 30
Slide 4: Highlights
WorleyParsons Highlights Tesources & energy % Record annual net profit of $139.1 million up 109.3% ® 2°4 half net profit increase of 25.1% from 1* half result @ Full year EBIT growth of 95.0% to $199.5 million a Underlying EBIT growth of 73% ® International operations contributing 64% % EPS (before
Slide 5: Organisational highlights
WorleyParsons Organisational highlights Tesources & energy w Performance of the 14,300 people engaged in the WorleyParsons business e The performance of our exceptional people in the year has strengthened our client relationships and reputation in our market places w Record number of new contract aw
Slide 6: Organisational highlights
WorleyParsons Organisational highlights Tesources & energy Expected benefits from the Parsons E&C acquisition and the other smaller acquisitions we have made recently continue to be realized # Continue to evaluate opportunities to further extend the capability and reach of the company e Acquisitions
Slide 7: Pluto LNG Development
WorleyParsons Pluto LNG Development Tesources & energy w Award of 2 FEED contracts to WorleyParsons joint ventures for Pluto Gas Field by Woodside # Onshore LNG Plant e Foster Wheeler (60%) WorleyParsons (40%) FWWP joint venture e 5-6 mtpa plant and associated infrastructure e FWWP performing LNG V
Slide 8: Material Contract Announcements
WorleyParsons Material Contract Announcements Tesources & energy w Three-Year Service Contract with ExxonMobil Chemicals at Beaumont, Texas # NCP Petrochemical Complex FEED, Houston and Saudi Arabia « Program Management Services Contract for Kuwait Oil Company # The Pilbara Infrastructure Project, W
Slide 9: Contracts
WorleyParsons Contracts Tesources & energy IDENTIFY 1 Project Feasibility Business Strategy | Study for expansion of Olympic Dam facility « | SELECT 2 for BHP Billiton Development Optimise! Arsine CO2 Removal Plant Installation Project « THUMSCO<<¢ Execution Strategy Future fuels siting study - Unit
Slide 10: David Housego — Chief Financial Officer
WorleyParsons Tesources & energy David Housego — Chief Financial Officer experience counts:
Slide 11: Financial performance
WorleyParsons Tesources & energy Financial performance $M 2005 2006 = Growth % Aggregated Revenue 1,379.5 2,464.4 78.6 EBIT 102.3 199.5 95.0 EBIT margin 74% 8.1% Profit before tax 98.6 196.9 99.8 Net Profit 66.5 139.1 109.3 Net Margin 4.8% 5.6% EPS (before amortisation) cps 36.6 68.5 87.2 Operating
Slide 12: Financial Highlights
WorleyParsons Tesources & energy Financial Highlights $M 2002 2003 2004 2005 2006 Aggregated Revenue 437.8 474.4 614.8 1,379.5 2,464.4 EBIT 25.9 32.4 40.4 102.3 199.5 EBIT margin 5.9% 6.8% 7.9% 7.4% 8.1% Net profit 17.7 25.9 30.7 66.5 139.1 Net profit margin 4.0% 5.5% 6.0% 48% 5.6% CAGR* 46.3% 31.7%
Slide 13: Change in Net Profit
WorleyParsons Change in Net Profit Tesources & energy 200.0 | 180.0 | SF g ° 160.0 | 2 8 5 8 5 z 3 & S = 2 3 9 S 4 < 2 a % 2 re) 140.0 8 S 8 8 s § @ = 8 5 B 12004 8 & g 2 3 8 100.0 | “ 80.0 | = g | O a 60.0 8 g : g 40.0 5 Ea - i Management estimate of $13.0m EBIT for Q1 2005 PEC m Like on like EBIT
Slide 14: Group Cash Flow
WorleyParsons Tesources & energy Group Cash Flow $M Operating cash flow and JV dividends Net interest paid Tax Paid Available cash flow Acquisitions / Investments Property, plant and equipment Exmouth development Net cash flow before dividends and funding Issue of shares Dividends paid Borrowings Ne
Slide 15: Financial ratios
WorleyParsons Tesources & energy Financial ratios $M 2005 2006 Effective tax rate 30.3% 28.0% Cash on hand 64.0 70.3 Total Assets 839.3 1,162.4 Equity 390.4 475.3 Return on Equity 25.4% 32.1% Gearing (Net debt / Net debt + Equity) 1.5% 10.2% EBITDA Interest cover 16.3 27.6 when-experience counts
Slide 16: Growth
WorleyParsons Growth resources & energy Aggregated revenue $M Net Profit $M 2,464.4 139.4 1,379.5 66.5 4744 5148 25.9 30.7 : T T r J r T T T 1 2003 2004 2005 2006 2003 2004 2005 2006 OHt BH2 DHt m@H2 when-experience counts
Slide 17: EPS and Dividends
WorleyParsons Tesources & energy EPS and Dividends Dividends Basic EPS 41.0 68.0 ® g gQ x oO g 36.0 oa 200 ra 20.6 5 . oO 18.1 oO 12.0 o = = a 2003 2004 2005 2006 2003 2004 2005 2006 Olnterim @ Final a 2006 EPS up 88.9% » Final dividend of 22.5 cps, payout ratio 60.4% when-experience counts
Slide 18: Hydrocarbons
WorleyParsons Hydrocarbons Tesources & energy Drivers for WorleyParsons business in 2006 # Increased activity in downstream & petrochemical markets globally in 2006 w Increased capital spending on upstream, downstream and petrochemicals in the Middle East in 2006 # Project risk profile lower; all pa
Slide 19: Hydrocarbons continued
WorleyParsons Hydrocarbons continued Tesources & energy w Continued strong performance in 2006 e Aggregated revenue of $1,777.7m (72% of group total) e Up 79.9% from 2005 e EBIT $158.7m (2005 $81.3m) # Significant improvement in performance in Middle East e Saudi Arabia and Oman, Abu Dhabi expansion
Slide 20: Hydrocarbons continued
WorleyParsons Hydrocarbons continued Tesources & energy w Outstanding performance in US and Canada w Major projects activity e ExxonMobil Venezuela e ExxonMobil and Chevron Texaco Nigeria e Unocal Bangladesh # Downstream market expansion in 2006 e NZRC clean fuels e Exxon Chemical Beaumont Texas ser
Slide 21: Hydrocarbons continued
WorleyParsons Hydrocarbons continued Tesources & energy # Australian operations strong performance in 2006 » Major project execution e Angel Gas Development Woodside e® PNG Highlands Gas Esso e LNG V Woodside » Ongoing asset services contracts performed well in year » Asian operations e Continued st
Slide 22: Hydrocarbons continued
WorleyParsons Hydrocarbons continued Tesources & energy w# The outlook for the Hydrocarbons business remains positive. Historically high oil prices, increasing demand for gas, the upturn in downstream refining and petrochemical activity together with the expected continued development of major FEED
Slide 23: Power
WorleyParsons Power Tesources & energy # Aggregated revenue of $367.8m e Revenue growth 113.3% e EBIT $47.8m, margin 13.0% w# Qutstanding result in US operations and Europe e Clean coal projects e New 600 MW Coal project for Santee Cooper e TVA services contract e Bulgaria contracts for Belene Nucle
Slide 24: Power continued
WorleyParsons Power continued Tesources & energy w The outlook for the Power business in 2007 remains positive. Continued demand for new coal and nuclear facilities, greenfield gas plants, air quality control systems on existing coal plants and an increase in demand for power delivery services provi
Slide 25: Minerals & Metals
WorleyParsons Minerals & Metals Tesources & energy wn Aggregated revenue of $202.2m e Revenue increase 26.5% * EBIT $27.7m, margin 13.7% Major project activity included: e BHP Billiton Worsley « Bemax mineral sands e Orica Yarwun « Ma’aden Phosphate Long term alliances developed in 2006 e Zinifex Po
Slide 26: Minerals & Metals continued
WorleyParsons Minerals & Metals continued Tesources & energy w The outlook for the Minerals & Metals sector remains positive with the continued pressure and competition for resources being the major constraining factor in the sector. The focus for 2007 will be on the transition of current feasibilit
Slide 27: Infrastructure
WorleyParsons Infrastructure Tesources & energy # Aggregated revenue of $126.8m © 114.2% growth in 2006 * EBIT $9.7m, margin 7.7% » Transformation of Infrastructure business commenced in 2006 e Acquisition of Calgary based Komex Environmental to develop environmental capability # Strengthened manage
Slide 28: Infrastructure continued
WorleyParsons Infrastructure continued Tesources & energy w Underlying demand in the Infrastructure market remains strong in most markets in which the company operates. The increased size and capability of the Infrastructure group leaves it well positioned to respond to this demand. when-experience
Slide 29: Developments
WorleyParsons Developments Tesources & energy w Developments activities expanded in 2006 » Esperance Energy project in line with expectations w» Exmouth Energy project on line Q1 2007 e Cost overruns on project; $1.9m impairment charge e Contribute $6.3m equity on completion of project # United Util
Slide 30: Differentiators
WorleyParsons Differentiators Tesources & energy # Committed, empowered and technically capable people w Industry leadership in Health, Safety and Environment » Outstanding corporate and operational performance # Focus on long term contracts and asset services ® Success in project delivery-large and
Slide 31: Outlook
WorleyParsons Outlook Tesources & energy “We expect the markets for WorleyParsons’ services will continue to be strong. Our key markets and sectors are experiencing positive conditions and we are well positioned to respond to these opportunities. Subject to conditions remaining favourable in these m
Slide 32: Full Year Results June 2006
WorleyParsons resources & energy Full Year Results 30 June 2006 John Grill, Chief Executive Officer David Housego, Chief Financial Officer Fer inane Se ee when-experience counts