Worley Limited · ASX:WOR
Worley — WorleyParsons — H1 FY2006 Earnings Presentation
28 slides from Worley's earnings presentation, Feb 28, 2006
Slide 1: Half Year Results 31 December 2005
WorleyParsons Tesources & energy HALF YEAR RESULTS 31 December 2005 John Grill, Chief Executive Officer David Housego, Chief Financial Officer when experience counts
Slide 2: WorleyParsons Background
WorleyParsons Background resources & energy » Leading professional services provider to the Energy, Resource and Complex Process Industries » Across all phases of projects 4 2 3 4 5 ASSESS SELECT DEFINE EXECUTE OPERATE Project Feasibility [Ly] Development Options Ly! Finalise Scope L-»| Produce Asse
Slide 3: Global Reach
WorleyParsons Global Reach resources & energy Malaysia Kortoh weeuela Ceracos : Malaysia Kuala Lumsily ACW Townsuille Me Vacisy Sone ‘ ote sft eneaste noo eo nana sah Sone : ie oats NEW ZEALAND 32 countries | 72 offices | 13,500 project services personnel
Slide 4: Highlights
WorleyParsons Highlights resources & energy » Record half year net profit of $61.8 million up 142% » EBIT growth of 124% to $92.9 million » International operations contribute 65% of result » Underlying growth of 70% » Basic EPS up 94% to 30.1 cps » EBIT and net margin expansion » Interim dividend u
Slide 5: Material Contract Announcements
WorleyParsons Material Contract Announcements resources & energy » Ma’aden Phosphate PMC contract e $US133 million PMC 5 years * $2.5 million Capex, largest integrated fertiliser plant in world e Largest contract in M&M and Infrastructure for WorleyParsons e Most significant synergy to date » Al Kha
Slide 6: Material Contract Announcements
WorleyParsons Material Contract Announcements resources & energy » Yuzhnoye-Khyichuyu (YK) EPCM Project Award e GWZ Consortium - Front-end engineering design (FEED) and EPCM for $US1.5 billion production facility » Angel Development for Woodside - EPCM Contract e Eos joint venture (KBR / WorleyParso
Slide 7: Integration Update
WorleyParsons Integration Update resources & energy x» Completion of the WorleyParsons transition program » Staff numbers have increased by 3,500 in the past 12 months e Committed, empowered and technically capable people e Retention of senior management team » Enhanced ability to share work between
Slide 8: Synergy Projects
WorleyParsons Synergy Projects resources & energy Strong flow of synergy projects in calendar year: » Highland Gas Project FEED, ExxonMobil in PNG* » Expansion of Alliance, BOC worldwide » Gas Capture & LNG Train, Marathon in Equatorial Guinea » Bibyana Gas Plant, Unocal in Bangladesh » Study and PM
Slide 9: Acquisitions
WorleyParsons Acquisitions resources & energy Strategy of identification, integration and growth of value adding acquisitions. A number of acquisitions announced in % year: » Acquisition of Canadian based Komex — global specialist in environmental and water resource projects » Acquisition of Canadia
Slide 10: Contracts
WorleyParsons resources & energy Contracts ConocoPhillips North Belut - Development Preliminary Engineering ConocoPhillips Bukit Tua Concept Engineering Alinta DBNGP Expansion EPOM PetroPars South Pars 12 GniOfishore PEED Singapore LTA Underground Railway Circle Line 4 & & Woodside LNG Plant Technic
Slide 11: Asset Services
WorleyParsons Asset Services resources & energy » Woodside, $700 million ISC contract — 2008 (+5yrs)* » Tennessee Valley Authority, Alliance extension - 2009* » Western Power, Collie Power Station O&M contract » Brunei Shell, Engineering Design Services » ConocoPhillips, Indonesian Regional Hub - En
Slide 12: David Housego — Chief Financial Officer
WorleyParsons resources & energy David Housego — Chief Financial Officer when experience counts
Slide 13: Financial Performance — Half Year on Half Year
WorleyParsons Financial Performance — % on % resources & energy $M % increase 2005 2004 Aggregated Revenue 94.0 1,137.8 586.5 EBIT 123.5 92.9 41.6 EBIT margin 8.2% 7.1% Profit before tax 131.4 91.7 39.6 Net Profit 141.7 61.8 25.6 Net Margin 5.4% 4.4% Basic EPS (cents per share) 94.2 30.1 15.5 Operat
Slide 14: Change in Net Profit
WorleyParsons Change in Net Profit resources & energy 90 8o | o | 5 2 = = 2B = oan 70 4 g 8 = o $61.8 § s 2 S$ 2 © = < a0 4 & < 5 8 3 e a ° 2 & = < Zz fu 2 [=) — wD s 507 3° © & wo a E 2 cad ss] & ° 405 2 = 2 fal c aa 6 6 ° 30 | $25.6 2 & . 8 = | ¢ 20 4 a s = & a = c 4 = So 0 » International operati
Slide 15: Growth
WorleyParsons resources & energy Growth Aggregated revenue $M OH1 @H2 1,379.5 1,137.8 757.1 4T4.4 2003 2004 2005 2006 NPAT $M OH1 wmH2 66.5 61.8 30.7 25.9 T 7 ] 2003 2004 2005 2006 1st Half FY2006 is 2x FY2004 when experience counts
Slide 16: Basic EPS
WorleyParsons Basic EPS resources & energy 36.6 30.4 229 204 <2 . oH 2003 2004 2008 2006 Financial Year w» 2006 up 92.4% on corresponding period » Equity base 2006 (205 million shares) 2005 (165 million shares) when experience counts
Slide 17: EBIT margin
WorleyParsons EBIT marg in resources & energy . EBIT Margi » EBIT and net margin an expansion is » Contributions include: 74% e High activity levels DN ¢ Profitable / breakeven 5.3% operations e R&D 4.0% Hl 2002 2003 2004 2005 2006 when experience counts
Slide 18: AIFRS Transition
WorleyParsons AIFRS Transition resources & energy » Comparatives for FY 2005 NPAT - 31 December 2004 $M have been restated AGAAP 23.0 » December 2004 NPAT Goodwill amortisation 45 increase of $2.6m Other (1.9) » June 2005 Equity increase of AIFRS 25.6 $5.7m Equity - 30 June 2005 $M AGAAP 384.3 Goodw
Slide 19: Group Cash Flow Half Year
WorleyParsons Group Cash Flow % Year resources & energy $M 2005 2004 Operating cash flow and JV dividends 94.5 57.1 Net interest paid (0.9) (1.9) Tax Paid (27.9) (13.0) Available cash flow 65.7 42.2 Exmouth development (4.2) - Property, plant and equipment (11.1) (1.1) Acquisitions / Investments (20
Slide 20: Dividends
WorleyParsons Dividends resources & energy 80% 4 70% 4 80% 4 20.0 18.5 2 50% 4 = £ = 40% Q 12.0 @ Final a 30%4 CJ Interim 0, 4 20% 5.0 10% 4 0% Tt T T T 7 2003 2004 2005 2006 Financial Year Dividend (cents per share) when experience counts
Slide 21: Hydrocarbons
WorleyParsons Hydrocarbons resources & energy » Historically high level of activity across operations * Aggregated revenue $817.9m (72% of Group total) © Up 96.3% from $416.7m (HY 2004) * EBIT $75.3m (margin 9.2%) » Australasian operations strong result e Angel FEED to EPCM e LNG Train V e Woodside
Slide 22: Hydrocarbons
WorleyParsons Hydrocarbons resources & energy » Asian operational highlights * ConocoPhillips in Indonesia e Retention of Brunei Shell contract (continuous operation since 1989) e« Ranhill WorleyParsons expansion » Significant improvement in Middle East e Oman for PDO e Saudi Arabia — Maintain Poten
Slide 23: Hydrocarbons
WorleyParsons Hydrocarbons resources & energy » Americas operational highlights e Canadian Tar Sands expansion e Major contracts in Venezuela, Nigeria and Bangladesh e Clean fuels upgrade for NZRC e PIJV Iraq oil infrastructure at highest activity level to date » Europe operational highlights e Kaza
Slide 24: Power
WorleyParsons Power resources & energy » Continue to deliver strong growth » Aggregated revenue of $176.1m e 172.6% increase from $64.6m HY 2004 » EBIT of $22.2m (2004 $4.4m) » Performance continues to impress » Major activity includes: e Bulgaria coal and nuclear e Tennessee Valley Authority contra
Slide 25: Minerals and Metals
WorleyParsons Minerals and Metals resources & energy » Aggregated revenue of $112.9m * Revenue increase 40.4% over 2004 ($80.4m) * EBIT $11.3m margin of 10.0% » In line with expectations » Major project activity: e BHPB Worsley e BeMax e Orica Yarwun » Ma’aden contract award e Largest M&M and Infras
Slide 26: Infrastructure
WorleyParsons Infrastructure resources & energy » Aggregated revenue of $32.5m e 25.5% growth on HY 2004 e EBIT of $3.2m (2004 $3.1m) » Continue to support other sectors » Project activity: e FMG Iron Ore and Infrastructure FEED e Ma’aden contract award » International opportunities emerging when ex
Slide 27: Outlook
WorleyParsons Outlook resources & energy “We expect the markets for WorleyParsons’ services will continue to be strong. Our key markets and sectors continue to experience positive conditions, in particular hydrocarbons and power. Based on the strong results ack ‘dso far and subject to reasonable con
Slide 28: Half Year Results December 2005
WorleyParsons Tesources & energy HALF YEAR RESULTS 31 December 2005 John Grill, Chief Executive Officer David Housego, Chief Financial Officer when experience counts