Worley Limited · ASX:WOR
Worley — UBS Emerging Companies Conference (April 2004)
22 slides from Worley's conference presentation, Apr 27, 2004
Slide 1: UBS Emerging Companies Conference
UBS Emerging Companies Conference John Grill Managing Director & Chief Executive Officer NN ee ye HYDROCARBONS | MINERALS, METALS & CHEMCALS | INDUSTRIAL & INFRASTRUCTURE | DEVELOPMENTS
Slide 2: Agenda
Worley Agenda i@ Overview @ Half-year Results @ Strategy Differentiator 1—HSE @ Strategy Differentiator 3 - EPCM Project Execution m@ Summary and Outlook
Slide 3: Overview
Worley Overview @ Leading professional services provider to the Energy, Resource and Complex Process Industries @ Across ail phases of projects 1 2 3 4 5 IDENTIFY SELECT DEFINE EXECUTE OPERATE Licences Appraisal Asset Dev't Plans Detailed Design Maintain Strategic Fit Lp{ Concept Eng’g L.»| Front-en
Slide 4: International Operations
Worley international Operations ted States Trinidad @ New Zealand 18 Countries 42 Offices Over 4500 Personnel BERR EEE TE Ec TEBE TEBE ELE
Slide 5: Financial Performance
Financial Performance "Half Year" Half Year’ Full Year’ See ended on ended o. . 2008" 31. Dée 2003/31 Dec 2002. Aggregated Revenue ) 242.3 235.8 AT4.4 EBITDA 21.3, 20.5. 41.5 EBIT 16.6 15.7, 32.1 Margin % 6.9% 6.7% 6.8% Net Profit | 12.8 15 25.9 5.3% | 4.9% 5.5% Margin % : Impact on first half aggre
Slide 6: Strategy
Worley Strategy @ Differentiators 1. Outstanding Operational & Corporate Performanc 2. Focus on Long-term Contracts; Integrated Services Contracts (ISC) and Alliances 3. Success in Project Delivery; Large and Small 4, Comprehensive Geographic Presence and Industry Capability §. Identification, Integ
Slide 7: Differentiator No 1: Outstanding Operational & Corporate Performance
Worley Differentiator No 1 Outstanding Operational & Corporate Performance mae do what we are currently doing as well as possible TRIFR <2.0° tolel recordable injury frequency rate per million rrenhours Health, Safety 8 Environment systems aucit. compliance > 85%. Management of risk No material even
Slide 8: Health, Safety and Environment
Worley Heath, Safety and Environment & Worley & Joint Ventures - 2003 LTIFR — 0.65 (Target <0.5) TRIFR — 4.24 (Target <2.0) 9.2M manhours (expecting to exceed 10M manhours in 2004) @ Worley & Joint Ventures ~ 2004 YTD LTIFR — 0.47 (Target <0.5) TRIFR — 2.81 (Target <2.0) @ The Challenges Keeping it
Slide 9: Examples of HSE Achievements
Examples of HSE Achievements Cortificate of Achtmomant "Vhis ie to certify that Pesventing, Retedill ovley Sedst Kied providing SMEP with Bingineering Desig Services is ereveitls verified 10 have suc: Lew ‘lly avhieved ue category of a ssement Quesdonnaice on in dw SMEP HSE Esso Shell Malaysia 14yrs
Slide 10: Iraq RIO
Worley Iraq RIO m Safety of our personnel is paramount & Appropriate measures have been taken @ Personnel are aware of the higher risks @ Our partner has extensive experience in similar repair & continuity projects @ Limited ability to comment on operational aspects of this contract
Slide 11: Strategy
Worley Strategy @ Differentiators 1. Outstanding Operational & Corporate Performance 2. Focus on Long-term Contracts; Integrated Services Contracts (ISC) and Alliances 3. Success in Project Delivery; Large and Small 4, Comprehensive Geographic Presence and Industry Capability §. Identification, Inte
Slide 12: Origin
Origin erp ri Mas ExonMobil prtisncos? BASF Wi BOC : CALTEX @M OL SEARGH LIMITED 6p Worsley Alumina Py (ici _RIO . 686 onpbittiton PINTO Pee @Energy, wocose Chevrontexaco Bakraagten CREED International RONTEMAN UNOCAL@ eS ; 5 Z ae Fu SO
Slide 13: Differentiator No 3: Success in Project Delivery; Large and Small
Worley Differentiator No 3 Success in Project Delivery; Large and Smal! wee projects will always be important Performance exceeding client expectations Health, Safety and Environment Schedule Cost Quality > 80% Client satisfaction index ‘Ow capability for large projects EPCM $1 billion; major / mega
Slide 14: Typical Contracting Models
Worley Typical Contracting Models @ EPCM Contracting “The EPCM contractor is an extension of the Owner, executing all contracts and procurement under the name of the Owner and being compensated on either a lump sum or reimbursable basis to perform engineering and management services.” @ Organisation
Slide 15: Industry Contracting Trends
Worley Industry Contracting Trends % of contracts | 1980 . Traditional a EPC EPCM Other % of contracts 1990 EPC EPCM Other % of contracts | 2000 Other Traditional EPC (Worley / Developed Markets)
Slide 16: EPCM Contracting Model
EPCM Contracting Model Contract Contract Contract ” Project Management Construction / Contract Procurement Management Engineering Design EPCM Services Provider | Management Management
Slide 17: Contracting Model Selection - Commercial Factors
Worley Contracting Model Selection - Commercial Factors Project Cost Confidence Requirement 2 Cost Contingency Visibility & Control Alignment of Business | Hi | Objectives ' Driven by project finance requirements 2? EPCM cost performance improved under incentivised contracis
Slide 18: Why Energy & Resource Sectors Seek EPCM Providers
Worley Why Energy & Resource Sectors Seek EPCM Providers @ Weil defined project scope not required @ Overlap of detailed design and construction phases Expensive long lead items procured early @ Optimise capital schedule for organisation i@ Preference ta use relationship (global reach) contractors C
Slide 19: Why Worley Seeks EPCM Opportunities?
Worley Why Worley Seeks EPCM Opportunities? @ Industry support for EPCM Popular execution model for larger, schedule critical or compiex projects Highly utilised within industry sectors Worley services & Appropriate risk allocation Allocated to party most sulted to control risk Fits Worley’s chosen
Slide 20: Worley's Recent EPCM Projects
Worley Worley’s Recent EPCM Projects CH4 Premier Ol Aughinish Alumina Lid. Moranbah CSM Project Yetagun Capacity Upgrade Plant Expansion Chevron Thailand Apache China Corp. MEP Stages 1 & 2 Zhao Dong Development @ Ongoing systems & capability improvements w@ Targeted recruitment
Slide 21: EPCM Summary
Worley EPCM Summary @ Projects will always be important @ Significant global CAPEX in energy & resource sectors @ Nore services, everywhere @ Outsourcing trend continuing @ Project delivery offers long term growth prospects
Slide 22: Outlook
Worley Outlook @ Negative effect of strong Australian dollar @ Positive effect of Iraq contract. Uncertainty as to speed of ramp up @ Solid increase in long term & alliance contracts @ Worley load in core business sound with good prospects @ Stronger performance in second half @ Earning growth in fu
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