Slide 1: Full Year Results - 30 June 2007
For personal use only Full Year Results - 30 June 2007 John Grill – Managing Director / Chief Executive Officer David Housego – Chief Financial Officer
Slide 2: Background
Background For personal use only Leading professional services provider to the Energy, Resource and Complex Process Industries Across all phases of projects 1 2 3 4 5 ASSESS SELECT DEFINE EXECUTE IMPROVE Project Feasibility Development Options Finalise Scope Detailed Design Operate Asset Busines
Slide 3: Highlights
Highlights For personal use only Full year net profit up 61.6 % to $224.8 million Colt integration and performance are positive Full year EBITDA growth of 60.7% to $353.4 million Normalised EPS up 57.5% to 105.4 cents per share International operations contribute 72.4% of earnings EBIT a
Slide 4: Colt Integration & Performance
Colt Integration & Performance For personal use only Colt integration and performance positive Canadian operations – Leader in oil sands, heavy oil and pipelines – Largest operation for WorleyParsons (pro forma 2007) Number of synergy wins since completion • Marsulux Sulphur Recovery • INCO EP
Slide 5: Highlights
Highlights For personal use only Growth in organisation to approx 23,800 people – Colt + improved retention + new hires + smaller acquisitions Record number of new contracts awarded in 2007 – Size and scope of projects continues to increase – Revenue length and visibility grows Safety performa
Slide 6: Global Reach
Global Reach For personal use only 23,800 project services personnel | 84 offices | 32 countries 6
Slide 7: Material Announcements
Material Announcements1 For personal use only EPCM for Emirates Aluminium (EMAL) EPCM for Mobil Producing Nigeria Project Management Services contract for Sipchem 2nd Phase of Belene Nuclear Project for NEK Umm Shaif engineering services contract Baytown services contract for ExxonMobil
Slide 8: Full Year Results - June 2007
For personal use only Full Year Results - 30 June 2007 David Housego – Chief Financial Officer 8
Slide 9: Financial Profile
Financial Profile For personal use only % Growth $M 2003 2004 2005 2006 2007 on 2006 Aggregated Revenue 474.4 514.8 1,379.5 2,464.4 3,534.6 43.4% EBIT 32.1 40.4 102.3 199.5 319.1 59.9% EBIT margin 6.8% 7.9% 7.4% 8.1% 9.0% Net profit 25.9 30.7 66.5 139.1 224.8 61.6% Net profit margin 5.5% 6.0% 4.8% 5
Slide 10: Change In Net Profit
Change In Net Profit For personal use only 270 Power Amortisation Net interest Infrastructure Corporate overhead 240 Minerals & Metals Income Tax 210 $M 180 Hydrocarbons 150 Colt 120 30 June 06 30 June 07 Colt contribution of $42.0m EBIT AUD: USD 78.3c (74.7c 2006) Like on like EBIT growth 43.
Slide 11: Revenue & Net Profit
Revenue & Net Profit For personal use only Aggregated revenue $M Net profit $M 224.8 3,534.6 2,464.4 139.1 1,379.5 66.5 474.4 514.8 30.7 25.9 2003 2004 2005 2006 2007 2003 2004 2005 2006 2007 H1 H2 H1 H2 Revenue CAGR since 2003 of 65.2% Net profit margin 6.4% (2006: 5.6%) 11
Slide 12: Earnings Per Share & Dividends
Earnings Per Share & Dividends For personal use only Dividends cps Normalised EPS 105.4 60.5 41.0 66.9 35.8 20.0 22.4 12.0 20.4 5.0 2003 2004 2005 2006 2007 2003 2004 2005 2006 2007 Interim Final H1 H2 2007 normalised EPS up 57.5% on 2006 Final dividend of 32.5 cps (payout 60.4%) 12
Slide 13: Financial Ratios
Financial Ratios For personal use only Profitability 7 Positive Margin Expansion 6.4 6.0 - Operating scale and volume 6 5.6 Net profit margin % 5.5 - Reimbursable revenue profile 5 4.8 - Expansion of services and products 4 - Overhead management - Accretive acquisitions 3 2003 2004 2005 2006 2007
Slide 14: 2007 Cash Flow
2007 Cash Flow For personal use only Operational cash flow - $m Operational cash flow - $m EBITDA 353.4 Net interest paid (10.8) Increased working capital 91.6 Net Tax Paid (55.1) increase 287.5 in cash Small acquisitions 63.1 $43.1m Increase in borrowings 55.5 P,P&E 40.0 Dividends paid 105.2 Colt a
Slide 15: Systems Update
Systems Update For personal use only Acquisition of Parsons E&C (Nov 2004) provided impetus for complete update of our project delivery systems: largest internal project undertaken + + Project Execution Standard Workflow Integration of HR & Financials 2008/09 Integrated System enables – Improved
Slide 16: LTIP, Board and Shareholder Profile
Corporate Update For personal use only 3 year EPS hurdle for Long Term Incentive plan (LTIP) increased to 20% compound growth. (up from 8% +CPI) Shareholder approval sought at AGM for increase to Non Executive Director (NED) fee pool to $1.75m - Additional director(s), increased scope and size -
Slide 17: Colt Acquisition Purchase Price Allocation
Colt Acquisition Purchase Price Allocation For personal use only PPA $M AUD Preliminary Actual Identified intangible assets 136.1 125.8 Deferred income tax liability arising from PPA (44.6) (39.4) Net tangible assets 110.4 116.1 Goodwill 961.4 933.4 Consideration paid 1,158.8 1,135.9 Expected Amorti
Slide 18: Hydrocarbons
Hydrocarbons For personal use only Aggregated revenue Revenue $2,585m, up 45%. EBIT $240m, up 53%. EBIT margin 9.3% (2006:8.9%) 3,000 2,500 Strong demand continued in 2007 in all segments and regions. Particularly strong growth in the 2,000 Middle East and Downstream $M 1,500 Colt acquisition
Slide 19: Power
Power For personal use only Aggregated revenue Revenue $437.4m, up 19%. EBIT $58m up 21%. EBIT margin13.2% (2006:13.0%) 500 450 400 Demand for new power generation including 350 nuclear and air quality control projects 300 continues $M 250 200 150 Contract awards in solar, nuclear, coal, IGCC
Slide 20: Minerals and Metals
Minerals and Metals For personal use only Aggregated revenue Revenue $293m, up 45%. EBIT $43m, up 54%. EBIT margin14.6% (2006: 13.7%) 350 300 Strong global market. ARA WorleyParsons in 250 Chile establishes a base in Latin American 200 Award of EMAL smelter EPCM; ongoing $M 150 Ma’aden and FMG
Slide 21: Infrastructure
Infrastructure For personal use only Aggregated revenue Revenue $220m, up 73%. EBIT $20 million, up 110%. EBIT margin 9.3% (2006 7.7%) 350 300 Infrastructure component of world scale 250 resource projects; Ma'aden, FMG, Pluto 200 Specialized services in water & wastewater, $M 150 marine and ra
Slide 22: Helping WorleyParsons Thrive in a Changing World
For personal use only Helping WorleyParsons Thrive in a Changing World 22
Slide 23: What Differentiates WorleyParsons?
What Differentiates WorleyParsons? For personal use only 23
Slide 24: What Differentiates WorleyParsons?
What Differentiates WorleyParsons? For personal use only 24
Slide 25: Delivering Profitable Sustainability
Delivering Profitable Sustainability For personal use only Our range of services and technologies that profitably embed environmental, social and financial sustainability into project delivery, across the asset lifecycle 25
Slide 26: Delivering Profitable Sustainability: The Imperative
Delivering Profitable Sustainability For personal use only The Imperative Changes Opportunity resources costs optimise resource use stakeholder expectations account to stakeholders legislation implement change requirement for adaptation innovative technical solutions & change customer response work
Slide 27: Delivering Profitable Sustainability: Definition
Delivering Profitable Sustainability For personal use only Definition A prefix meaning ‘concerned with ‘The laws of logic and nature’ living things in relation to their environment’ From the Greek ‘nomikos’ meaning ‘law’ From the Greek ‘oikos’ meaning ‘house’ Nomic is also a game in which the rules
Slide 28: Delivering Profitable Sustainability: Approach
Delivering Profitable Sustainability For personal use only Approach social, ecological, community profitable operations improvement in environment improvement in business sustainability perspective technology perspective assess, understand & model deliver innovative solutions understand the changes
Slide 29: Capabilities & technologies
Delivering Profitable Sustainability For personal use only Capabilities & technologies will be delivered as a seamless extension of our established project delivery capability Assessment Efficiency Treatment Mitigation • Strategic environmental• Energy efficiency • Gas cleaning • Renewable energy &
Slide 30: Sustainability project experience
For personal use only Zero Gen power station Sydney Water ASSESSMENT Lake Clifton sustainable coastal development Tomago aluminium shelter Cockburn Sound coastal studies Fonterra energy efficient project Terramin Resources (EIA – possibly PFS and tailings) Zero Gen power station Sydney Water Lake Cl
Slide 31: Project example: Sydney Water Renewable Energy Generation Program
For personal use only Project example Sydney Water Renewable Energy Generation Program Energy Partnership with Sydney Water Potential Energy Aimed at energy efficiency Renewable energy implementation - Biogas Image - Energy recovery turbines From annual 15% reduction in reliance on fossil re
Slide 32: Project example: Ivanpah Solar Electric Generating Station
For personal use only Project example Ivanpah Solar Electric Generating Station Solar thermal power station World’s first using dispersed “power towers” Engineering support to BrightSource Energy, California 400 MW renewable power Assist with the State’s goal of 20% renewable power by 2010
Slide 33: Project example: Fonterra Energy Reduction Project
For personal use only Project example Fonterra Energy Reduction Project Manufacturing facilities, New Zealand Energy efficiency monitoring & assessment Re-thinking of project boundaries Complex process design Integration of water, heat and energy systems 17% overall reduction in energy u
Slide 34: Continue to review our own operations, worldwide.
For personal use only Continue to review our own operations, worldwide. 34
Slide 35: Outlook
Outlook For personal use only We expect the markets for WorleyParsons’ services will remain strong. Our key markets and sectors continue to experience positive conditions and we are well positioned to respond to these opportunities. Subject to conditions remaining favorable in these markets we exp