Worley Limited · ASX:WOR
Worley — WorleyParsons — Macquarie Equities Conference (May 2008)
29 slides from Worley's conference presentation, May 8, 2008
Slide 1: Macquarie Equities Conference
For personal use only Macquarie Equities Conference David Housego – Chief Financial Officer 8 May 2008
Slide 2: Introduction
Introduction For personal use only X Corporate Update X Strategy Update X Conclusion and Outlook
Slide 3: Background
Background For personal use only X Leading professional services provider to the Energy, Resource and Complex Process Industries X Across all phases of projects 1 2 3 4 5 IDENTIFY EVALUATE DEFINE EXECUTE OPERATE • Project feasibility • Feasibility studies • Preliminary Engineering • Detailed Enginee
Slide 4: 2008 / 2009 Half Year Highlights
2008 / 2009 Half Year Highlights For personal use only X Interim net profit up 61.6 % to $152.7 million X Half year EBITDA growth of 86.1% to $263.1 million X EBITDA margin expansion to 11.1% (2006: 9.7%) X Underlying EBITDA growth approximately 31% (normalised for Colt acquisition and foreign excha
Slide 5: Global Reach
Global Reach For personal use only 27,700 project services personnel | 105 offices | 34 countries
Slide 6: What Differentiates WorleyParsons
What Differentiates WorleyParsons For personal use only Committed empowered and Comprehensive technically capable people geographic presence Outstanding Industry leadership operational in health, safety and corporate and environmental performance performance Success in project Focus on long-term del
Slide 7: Project Development Phases
Project Development Phases For personal use only
Slide 8: Material Contract Announcements
Material Contract Announcements* For personal use only X Chemaweyaat Petrochemical Complex LOI clarification X EPCM for Spinifex Ridge Molybdenum Project (Moly Mines) X EPCM for North Rankin 2 project for Woodside X Contract for Petrom S.A. in Romania X Acquisition of deepwater hydrocarbons speciali
Slide 9: INTEC Transaction Summary
INTEC Transaction Summary For personal use only X Acquisition of 100% of INTEC from Heerema Group for $US 108.5m X Price reflects a 9.5 x EBITDA multiple on pro forma 31 Dec 2007 earnings • Expected to be accretive • Acquisition to be debt funded (US Private Placement completed) • Expect revenue syn
Slide 10: Intec Capability
Intec Capability For personal use only INTEC is a leading service provider in the following deepwater sectors: • Offshore Pipelines • Subsea Systems • Flow Assurance and Operability • Marine Risers • Offshore Field Development Scope of services across these sectors include consulting, concept select
Slide 11: Completes Our Deepwater Capability
Completes Our Deepwater Capability For personal use only INTEC WorleyParsons represents a new and exciting value proposition – “delivering complete and integrated solutions for all deepwater systems” Source: Offshore Magazine
Slide 12: The Hedgehog And The Fox
The Hedgehog And The Fox For personal use only “Foxes pursue many ends at the same time and see the world in all its complexity. They are “scattered or diffused, moving on many levels”. Hedgehogs understand that the essence of profound insight is simplicity. Hedgehogs see what is essential, and igno
Slide 13: History Of Strategy
History Of Strategy For personal use only 2000 2001 2002 2003 2004 2005 2006 2007 2008
Slide 14: Markets We Serve
Markets We Serve For personal use only Upstream Downstream Hydrocarbons Hydrocarbons Power Minerals & Metals Infrastructure Fixed Offshore Facilities Refining Coal-Fired Plants Alumina Transport Floating Production Petrochemicals Nuclear Aluminum Buildings Systems Chemicals Gas Turbine/ Base Metals
Slide 15: Strategy
Strategy For personal use only X “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”. X Snapshot on two sectors: • Hydrocarbons • Power
Slide 16: Hydrocarbon Sources Changing From Conventional
Hydrocarbon Sources Changing From Conventional For personal use only X Conventional production to 2010 will reduce as deepwater, LNG, Artic, Acid Sour, and Tight Gas basins become increasingly prominent X Increased complexity in accessing and producing hydrocarbons Heavy Oil Deepwater Heavy Oil 7% 3
Slide 17: NOCs Continue to Increase Foothold over World Reserves
NOCs Continue to Increase Foothold over World Reserves For personal use only Saudi Aramco 259.4 Iraq NOC 112.5 Kuw ait Petroleum 96.5 X International Oil Companies Abu Dhabi NOC 92.2 National Oil Company have only access to 6% of National Iran Oil Co 89.7 Other world reserves PDVSA (Venezuela) 77.2
Slide 18: Global Electric Generation Forecast
Global Electric Generation Forecast For personal use only X Global electric generation increases at a rate of 2.4% annually X Global electric generation increases by approximately 55% from 2010-2030 X Electric generation increases by 1.5% in North America and 0.8% in Europe in the 2006-30 period
Slide 19: Generation by Fuel Type
Generation by Fuel Type For personal use only X Coal and natural gas remain the global dominant fuels X In North America growth in coal is dependent upon carbon regulation X Growth in both X Nuclear and renewable energy may be understated considering the dramatic increase in concern about climate ch
Slide 20: Strategy Business Elements
Strategy Business Elements For personal use only X Number of key elements of differentiators continue to be emphasised in 2008/2009 strategy plan Resources & Worksharing Acquisitions Mix Risk Framework Global / Local Delivery and Sustainability
Slide 21: Resources And Workshare
Resources And Workshare For personal use only X Attraction, development and retention of committed, empowered and technically capable people remains our biggest challenge X Long term and short term incentive schemes are assisting us in our aspiration to be ‘Employer of Choice’ X Continue to recruit
Slide 22: October 2004 U.S. Offices
October 2004 U.S. Offices For personal use only Greenway Plaza, Houston
Slide 23: April 2008 U.S. Offices
April 2008 U.S. Offices For personal use only Billings Bismarck Richland Hampton Minneapolis Boston Martinez Sacramento Idaho Falls Chicago Reading Los Altos Denver Arcadia Monrovia Tulsa Chattanooga Aiken Long Beach Dallas Katy Deer Park Westchase Greenway Plaza
Slide 24: Multi-Office Execution
Multi-Office Execution For personal use only Alliance Specialists Low Cost Home Office Center Design Support Local Contractor Consistent Execution with Project Systems
Slide 25: Risk Framework
Risk Framework For personal use only X We define risk as the effect of uncertainty on our business objectives, both negative and positive X Risk Management enables us to make business decisions by taking better account of the uncertainty implicit in our business and the possibility of future events
Slide 26: Business Risk Management
Business Risk Management For personal use only X Identification of risks (threats and opportunities) that may impact on business achieving their objectives / values X Prioritization of these risks X Development of plans to manage and optimize advantage from identified risks X Regular monitoring, rev
Slide 27: Acquisitions
Acquisitions For personal use only X Macro conditions still supportive of additional acquisition opportunities • Consolidation of sectors continues X ‘Organisational capacity’ and ‘financial capacity’ required X Cultural fit is threshold issue X Preference for building additional capacity in ‘non hy
Slide 28: In Summary
For personal use only In Summary
Slide 29: 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 favourable we expect to achieve inc
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