Worley Limited · ASX:WOR
Worley — Merger or Acquisition (October 2004)
40 slides from Worley's merger presentation, Oct 7, 2004
Slide 1: Acquisition of Parsons E&C
PARSONS EsC Acquisition of Parsons E&C John Grill, Managing Director and Chief Executive Officer, Worley Willian Hall, Chairman and Chief Executive Officer, Parsons E&C 7 October 2004 HYDROCARBONS | MINERALS, METALS & CHEMICALS | INDUSTRIAL & INFRASTRUCTURE | POWER WATER & DEVELOPMENTS
Slide 2: Important Notice
Worley eaesons Esc Important Notice DISCLAIMER This presentation contains information regarding the proposed offer by Worley Group Limited (Worley} of fully pald ordinary shares (Shares) as part of a proposed institutional placement (Placement) and non-renounceable entitiement offer (Entitlement Off
Slide 3: Agenda
Worley e4esowvs Esc & Transaction Overview & Overview of Parsons E&C & WorleyParsons & Funding &@ Q&A
Slide 4: Transaction Overview
Worley e4esowvs Esc Transaction Overview Acquisition of 100% of Parsons E&C from Parsons ESOP Purchase price of US$245 million (approximately A$350 million) Parsons E&C is a design and project services company with a significant presence in the global oil and gas, refining, petrochemical and chemica
Slide 5: Transaction Overview: Financial impact
Worley e4esowvs Esc Transaction Overview Financial impact: Attractive acquisition price; 6.9 x EBITDA proforma December 2003 Funded by mixture of debt and equity - underwritten Gearing approximately 25% 33.1% EPS accretive (pre-amortisation), for proforma 12 months to 30 June 2004 25.7% EPS accretiv
Slide 6: Transaction Overview: Source of Funds
Worley e4esowvs Esc Transaction Overview Source of Funds AUD Equity’ 200 Debt 164 Total’ 364 Notes: ’ Based on underwritten floor price of A$3.60 2 Including acquisition costs A$14 million Proceeds of Offer (US$245m) Repayment of Note to Parsons Corp (US$166m) Distribution to ESOP participants 401K
Slide 7: Transaction Overview: Composite financials
Worley eaesons Esc Transaction Overview Unaudited Composite Audited Worley WorleyParsons A$m' 30 June 2004" 30 June 2004 Revenue 375.5 1,132.6 EBITDA 49.0 103.7 Depreciation {4.1} (10.4) Amortisation (4.5) (20.7) EBIT 40.4 72.6 Net interest expense 0.3 (8.2) Profit before tax 40.7 64.4 Income tax ex
Slide 8: Why Parsons E&C?
Worley e4esowvs Esc Transaction Overview Why Parsons E&C? Clear strategic fit for Worley: @ Large Programme Management and EPCM capabilities @ Full service offering @ Geographic and industry diversification @ Opportunities for sector expansion & Strong strategic relationships and quality client base
Slide 9: Worley's six strategic differentiators
Worley e4esowvs Esc Transaction Overview Worley’s six strategic differentiators: 1. Outstanding operational and corporate performance v 2. Focus on long-term contracts, integrated services contracts and alliances v 3. Success in project delivery — large and small v 4. Comprehensive geographic presen
Slide 10: Transaction Overview
Worley e4esowvs Esc Transaction Overview & Stock Purchase Agreement signed Thursday 7th October 2004 & Key senior executives, including Bill Hall, to remain with the business @ Due diligence involving key Worley operational executives, legal, accounting and tax advisers & Certain residual liabilitie
Slide 11: Overview of Parsons E&C
Worley e4esowvs Esc & Transaction Overview @ Overview of Parsons E&C &@ WorleyParsons @ Funding @ Q&A
Slide 12: Overview of Parsons E&C
Worley e4esowvs Esc Overview of Parsons E&C @ Parsons Corporation founded in 1944 & Parsons E&C (Energy and Chemicals) separated from Parsons Corporation in 2002 Focus on core business for both groups Stand-alone basis since 2002 Cost reimbursable contracting and risk profile @ Parsons E&C Sectors i
Slide 13: Overview of Parsons E&C: Services
Worley e4esowvs Esc Overview of Parsons E&C Programme Management and EPCM services cover: @ Programme Management Large, long-term projects @ Oil and Gas production Large, long-term projects Harsh environments and modular design @ Gas treatment and processing Sulphur expertise Power @ Extensive syste
Slide 14: Parsons E&C Group Worldwide
[iia] Worley eaesons Esc Parsons E&C Group Worldwide United Kingdom Ukraine Russjan Arctic France United States and Canada Germany Sweden Poland Htaly Romania Croatia Bulgaria Slovenia Uzbekistan E Kazakhstan Sakhalin Island Korea Moscow Office Philippines Venezuela India Nigeria Malaysia Colombia A
Slide 15: Historical Financials
Worley e4esowvs Esc Overview of Parsons E&C Historical Financials 12 months to 12 months to 6 months US$m 31 December 2002 31 December 2003 30 June 2004A ADJUSTED EBITDA ' 31.3 35.7 22.3 Depreciation (3.4) (4.8) (2.1) Amortisation - - - ADJUSTED EBIT ' 27.9 30.9 20.2 Notes: 1 Adjusted to exclude exp
Slide 16: Service to Industry
Service to Industry Worley 24RSONS Ecc Wellhead to Wire Chemicals & | Petrochem
Slide 17: Shaybah Development Programme
Worl Programme Management orley PARSONS EsC Shaybah Development Programme Client: Saudi ARAMCO Location: Shaybah, Saudi Arabia Services: FEED, PM, CM Project Cost: US$1.5 billion Gas compression plant Water desalination plant 650 km access road Airstrip at Shaybah 600 km, 48-inch pipeline (600 MBPD)
Slide 18: Kuwait Restoration/Upgrade
Worley e4esovs Esc Programme Management y . Kuwait Restoration/Upgrade Client: Kuwait Oil Company Location: Kuwait Services: PM & CM @ Project cost: US$3+ billion & Programme management services for the restoration and upgrade of oil and gas production facilities @ Grass roots gathering centers (190
Slide 19: Tengizchevroil Second Generation Project
il P Worley 24esoNns EsC Oil and Gas Production Tengizchevroil Second Generation Project Client: Tengizchevroil Location: Kazakhstan Services: EPCM @ Project cost: US$3 billion @ Continued development of Tengiz Field with 6 to 9 billion barrels of recoverable oil f@ Production rate increased from 20
Slide 20: Kashagan East Field Development
Worley 24esoNns EsC Oil and Gas Production Kashagan East Field Development Client: Agip KCO Location: Caspian Region, Kazakhstan Services: Conceptual and FEED Services US$7 billon FEED 150,000 BPD offshore Oil Production 420 mmscfd Associated Gas 23% H,S in Associated Gas Onshore Gas Treatment & Sul
Slide 21: Sakhalin II Definition Engineering
Worley 24esonws esc Sakhalin Il — Definition Engineering Client: Sakhalin Energy investment Co. (Shell) Location: Sakhalin island, Russia Services: FEED US$2 billon FEED Onshore, Offshore, Export Pipelines 3 Offshore Platforms 150,000 BPD Oil 50,000 BPD Condensate {,800mmscid @ Peak Production Grass
Slide 22: Module for ARCO Alaska's GHX-2 Project
Module for Worley eanscne Enc ARCO Alaska’s GHX-2 Project
Slide 23: GHX-2 Gas Handling Expansion
Worley eaesowvs Esc GHX-2 Gas Handling Expansion Client: BP/ARCO Alaska Location: Prudhoe Bay, Alaska Services: PM, E, P, CS, Precommissioning, Commissioning, Start-up @ Project cost: US$1.1 billion @ Four new Frame 6 tandem compressor modules @ Two gathering center modules - 270 MBPD @ One low temp
Slide 24: Endicott
Worley e4esowvs Esc Endicott Client: BP Exploration Location: Endicott Isiand, Alaska Services: EPCM Project cost: US$1.4 billion Design two artificial gravel islands and causeway @ 150,000 BPD oil & gas production Produced water and seawater injection 120 production and injection wells 600-bed cons
Slide 25: Refining
Worley eaesons Esc Refining & 38 Crackers & 140 Hydrotreaters @ 25 Hydrogen Plants & 500 Sulphur Recovery Plants @ Full EPCM Capability & Conversion of FEEDs to Completed Plants
Slide 26: UK Gas Processing Plants
[iia] Worley eaesons Esc UK Gas Processing Plants "y MOBIL SAGE 2 GAS TERMINAL - 2 Phases ST FERGUS GAS COMPLEX ST FERGUS FULMAR EXPANSION ami, ST FERGUS MILLER TERMINAL * From Brent Field From Frigg Fleta MOSSMORRAN NGL COMPLEX BRAEFOOT BAY NGL EXPORT TERMINAL British Gae” AMETHYST TERMINAL #4| EAS
Slide 27: Hawiyah Gas Development
[iia] Worley e4esowvs Esc Hawiyah Gas Development Client: Saudi Aramco Location: Hawiyah, Saudi Arabia Services: FEED, PM, CM # Project cost: US$1.9 billion a 2.4 BSCFD grass roots gas plant @ 220,000 BPD condensate aw HS removal/sulfur recovery a Gas dehydration # Utilities a Infrastructure @ 800 k
Slide 28: Parsons E&C-Power Experience Summary
Parsons E&C-Power Worley earas . Y ONS Es Experience Summary a i, Gas Turbine — Over 33,000 MW Nuclear — 11,100 MW (Balance of Plant) Ne ee ee ee ee ee ee ee ee ee eee ee
Slide 29: Parsons E&C Power: Coal Projects
Parsons E&C Power Worley e4esowvs Esc Coal Projects @ Santee Cooper - Cross Units 3 & 4, 2 x 600 MW-COD 2007/09-EPCM @ Western Greenbrier - Phase 1 90 MW Waste Coal-fired CFB-COD 2008- EPCM @ Corn Belt-91 MW LEB (in contract negotiations-sub to Alberici Construction)- COD 2008-Engineering and Start-
Slide 30: Gas Turbine Projects
Parsons E&C Power Worley PaRsons Esc Gas Turbine Projects Tractebel — Chehalis, 500 MW CC, 7FA-COD Fall 2003 HEP-Croatia-Te-To 160 MW Co-Generation-COD 2003 Tractebel — Ennis, 350 MW, 501G-COD 2003 Constellation — Holland, 650 MW CC, 7FA-COD 2002 Sempra/Occidental — Elk Hills, 500 MW CC, 7FA-COD 200
Slide 31: WorleyParsons
Worley eaesons Esc @ Transaction Overview & Overview of Parsons E&C & WorleyParsons & Funding B Q&A
Slide 32: Worley Overview
Worley eaesons Esc Worley Overview @ Leading professional services provider & Worley operates as a matrix of geographic locations coupled with four Customer Sector Groups: Hydrocarbons Minerals, Metals & Chemicals Industrial & Infrastructure Power, Water & Developments & Listed on the Australian Sto
Slide 33: Clear Strategic Fit
Worley eaesons Esc Clear Strategic Fit & Worley gains Large project EPCM and Programme Management Extended onshore and downstream hydrocarbons capability Global power capability Geographic presence in all key markets & Parsons E&C gains Offshore oil & gas capability Minerals & metals capability Inte
Slide 34: Transition and integration
Worley eaesons Esc Transition and integration @ Existing relationship through joint ventures in America and the Middle East & A transition team has been established comprising senior executives from both Worley and Parsons E&C & Little overlap in geography or capabilities Integration of operations i
Slide 35: WorleyParsons: Financial impact
Worley eaesons Esc WorleyParsons Financial impact: @ The Directors believe the combined WorleyParsons will be capable of producing improved financial returns compared to each of Worley and Parsons E&C on a stand—alone basis & On a proforma basis for the 12 months ended 30 June 2004, the acquisition
Slide 36: Funding
Worley e4esowvs Esc & Transaction Overview & Overview of Parsons E&C &@ WorleyParsons @ Funding @ Q&A
Slide 37: Funding Overview
Worley eaesons Esc Funding Overview @ Total acquisition cost is US$245 million (approximately A$350 million) @ Funded by mixture of debt and equity @ Equity raising to comprise a 15% placement and 2 for 9 Entitlement Offer @ Proforma gearing as at 30 June 2004 — approximately 25% Acquisition cost $1
Slide 38: Funding: Equity
Worley eaesons Esc Funding Equity # Up to 15% placement and 2 for 9 Entitlement Offer @ Entitlement Offer is non-renounceable and Entitlements are non- transferable @ Institutional offer via bookbuild on 7th and 8th October @ Bookbuild underwritten at $3.60 Founder shareholders already committed Tot
Slide 39: Indicative Timetable
Worley e4esowvs Esc Funding Indicative Timetable Trading halt Institutional Offer Offer to Qualifying Institutional Snarehoiders opens Offer to Qualifying Institutional Shareholders closes Issue price announced and institutional allocations advised Trading halt ceases Record Date for determining Ent
Slide 40: Agenda / Q&A
Worley eaesons Esc & Transaction Overview & Overview of Parsons E&C & WorleyParsons & Funding B Q&A