Worley Limited · ASX:WOR
Worley — WorleyParsons — Investor Day (October 2008)
61 slides from Worley's investor day presentation, Oct 29, 2008
Slide 1: For personal use only
For personal use only
Slide 2: WorleyParsons Knowledge Management
For personal use only WorleyParsons Knowledge Management Dr Colin McIvor – Chief Knowledge Strategist
Slide 3: Presentation Elements
PRESENTATION For personal use only ELEMENTS ► Expert Locator ► Discipline Portal ► Global Discussion Groups ► WorleyParsons WIKI
Slide 4: Expertise locator
Expertise locator For personal use only 28/10/2008
Slide 5: Discipline portal
For personal use only Discipline portal
Slide 6: Global discussions
For personal use only Global discussions
Slide 7: WorleyParsons' Wiki
For personal use only WorleyParsons’ Wiki
Slide 8: Summary Points
SUMMARY POINTS For personal use only ► WorleyParsons is a knowledge based company – our ability access our full knowledge base differentiates us in many markets ► Global systems permit individuals and teams to collaborate and solve customers issues efficiently ► The knowledge systems have been built
Slide 9: For personal use only
For personal use only
Slide 10: Project Delivery Systems
Project Delivery For personal use only Systems Ensuring consistency and efficiency through a tailored approach Mike Reilly – Global Director
Slide 11: Presentation Elements
PRESENTATION For personal use only ELEMENTS ► Project delivery system needs ► Defining WPMP and EMS ► Live demonstration of both tools
Slide 12: Project delivery system needs
Project delivery system needs For personal use only ► WorleyParsons is a full service project delivery company ► Mega-project developments in all industries involving conceptual studies through to Program Management and EPCM ► Approximately 140 Improve contracts worldwide each involving hundreds of
Slide 13: WPMP and EMS
WPMP and EMS For personal use only X WorleyParsons Project Management Process WPMPV3 Process for planning how to deliver the project X Enterprise Management System Contains processes and detailed procedures for delivering the project, once planned
Slide 14: What is WPMP?
What is WPMP? For personal use only ► It is a risk based process for developing (and supporting) the Project Execution Plan suited to needs of the project ► Provides common, scaleable framework for project execution ► Based on a phased and gated development process Plan Your Work Work Your Plan
Slide 15: The importance of scalability
The importance of scalability For personal use only Small Project Large Project WPMPV3
Slide 16: EMS key features
EMS key features For personal use only ► Global consistency stemming from corporate entity content that flows down to local entities with agreed adjustments to suit local requirements ► High level documents (policies, executive directives) establish expectations and do not vary globally ► Two arms o
Slide 17: Summary Points
SUMMARY POINTS For personal use only ► The project management systems enable a broad cross section of projects to be executed in a predictable manner ► The systems have been built to enable a “scalable” level of management and administration and to reflect WorleyParsons risk management approach ► Ov
Slide 18: For personal use only
For personal use only
Slide 19: WorleyParsons Canada
For personal use only WorleyParsons Canada Larry Benke – Managing Director
Slide 20: Presentation Elements
Presentation Elements For personal use only ► Merger ‘Report Card’ ► Strategy overview ► Synergy successes ► Outlook
Slide 21: Colt and WorleyParsons Canada
January 2007 Colt and WorleyParsons Canada For personal use only Anchorage Canada Edmonton Calgary Toronto Sarnia
Slide 22: Merger 'Report Card'
Merger ‘Report Card’ For personal use only X Integration successfully completed X Diversification into all four CSGs X Global centre for: Heavy oil Pipelines Geomatics Base Metals (one of) X Some early synergies: ‘Ready for Operations’ capability Large module expertise EcoNomics attrac
Slide 23: Growth of the Canadian business
Growth of the Canadian business For personal use only 8,000 Personnel 6,000 WP WP Canada 4,000 Colt Colt 2,000 2007 2007 2008
Slide 24: WorleyParsons Canada, October 2008
WorleyParsons Canada, October 2008 For personal use only Anchorage Canada Fort St. John Fort McMurray Kitimat Grande Prairie Cold Lake Edmonton Lloydminster North Vancouver Vancouver Saskatoon Victoria Sudbury Calgary Nanaimo Toronto Sarnia
Slide 25: Canada 'Strategy on a Page'
Canada ‘Strategy on a Page’ For personal use only Infrastructure Power: & Environment: ‘Step out’ strategies underpinned by X Nuclear power capability existing business X Global centre for marine and coastal X Improve in West X EIA capability X Global Support for geomatics Common Elements: X Be the
Slide 26: Improve Business
Improve Business For personal use only X Significant part of the Hydrocarbons business • Asset Management • Multiphase Oilsands Projects Phases X New opportunities in Power, Minerals and Metals X Project portfolio positioned for Improve X New offerings • Data management Syncrude, Alberta Canada • HV
Slide 27: Nuclear power initiative
Nuclear power initiative For personal use only X Decision made to build Canadian capability X Bruce Power, OPG and NB Power planning multiple new builds and refurbishments X Reading and Belene offices very supportive, immediate credibility X N286.1 (engineering) and N286.2 (procurement) certificatio
Slide 28: Minerals & Metals initiatives
Minerals & Metals initiatives For personal use only X EPCM project delivery X New Edmonton capability X Sudbury Improve growing X Westmar acquisition July 2008 Marine and port structures Bulk materials handling and loading Key element of our ‘Pit-to-Port’ strategy X Awarded PEP for Vale Serra
Slide 29: EcoNomics Successes
EcoNomics Successes For personal use only X Key risk mitigation strategy for customers…a differentiator for WorleyParsons X Total North Mine President’s Award for work on carbon neutrality Developing Dry Tailings…will be new benchmark X Statoil Thermal SAGD Sustainability deployed in technolog
Slide 30: Outlook…given the financial markets
Outlook…given the financial markets For personal use only X Staff levels and project pipeline remain robust X Price of oil is important Oil sands operating costs Oil price balanced by US$ appreciation Favorable royalty regime Long project timelines X Financing capability more important Pro
Slide 31: For personal use only
For personal use only
Slide 32: Minerals & Metals
For personal use only Minerals & Metals Mark Southey – Managing Director
Slide 33: Presentation Elements
PRESENTATION For personal use only ELEMENTS ► Strategy ► Structure ► Customers ► Sub-sectors
Slide 34: Core growth strategies
Core growth strategies For personal use only X Expand our global footprint X Diversify across commodities X Extend the range of services across the asset lifecycle X Focus on long-term contracts and customer relationships
Slide 35: Robust business platform
Robust business platform For personal use only g China Europe Specialist Base Load Select Middle East Iron Ore Alumina 6% 6% Minerals Engineering 17% Canada 8% 20% 9% 2% Projects 11% US & Latin Aluminium America 31% Ferrous 12% 2% Metals Asia 3% 3% Coal 2% Africa Chemicals Improve 0% 17% Base Metals
Slide 36: Six current strategic initiatives
Six current strategic initiatives For personal use only X Strategic Customer Focus X Grow into developing M&M markets X Focus on ‘Mine to Market’ opportunities X Grow Improve globally X Develop Select offering X Enhance HVE to HVPD capability
Slide 37: Strategic Customer Focus
Strategic Customer Focus For personal use only 2003 2008 2011 Tier 3 Tier 3 Tier 1 Tier 1 Tier 3 Tier 1 Tier 2 Tier 2 Tier 2
Slide 38: Global presence – still room for growth
Global presence – still room for growth For personal use only
Slide 39: Mine to Market
Mine to Market For personal use only X Global trend towards large scale investments X Concentrate demand in regions remote from the mine Mine Concentrator Mineral Processing Ship (Rail / Port) WP Traditional Offering Mine Concentrator Mineral Processing Ship (Rail / Port) WP “Mine to Market offering
Slide 40: Improve in an M&M Environment
Improve in an M&M Environment For personal use only X M&M processing and production facilities are large, costly to operate and subject to extreme ‘wear & tear’ X A safe, compliant and competitive operation can only be maintained by cost effectively managing a large portfolio of brownfield work • Ou
Slide 41: Sector outlook: Iron ore
Sector outlook: Iron ore For personal use only X Secured workload We have a significant and diversified portfolio of secured major iron ore contracts X Focus on funded projects X Pipeline of future work Several major proposals currently in progress Fortescue Metals
Slide 42: Sector outlook: Base Metals
Sector outlook: Base Metals For personal use only X Currently have strong positioning in Improve market sector in Australia X Strong, global Select capability in brownfields optimisation and expansion X Currently engaged in major projects with tier 1 customers X EcoNomics - Air quality and water man
Slide 43: Sector outlook: Base Metals
Sector outlook: Base Metals For personal use only X Global footprint provides access to greater opportunity X ‘Mine to Market’ solutions attractive in new and established regions • Leveraging Westmar capability from recent acquisition X Eastern Europe and South America is a focal point for new resou
Slide 44: Sector outlook: Coal
Sector outlook: Coal For personal use only X Current coal exposure is in Improve and brownfield projects X Significant opportunity to grow Improve X ‘Mine to Market’ offering ideally suited to this sector X Expectations of reduced demand, but less impacted than other commodities X Significant EcoNom
Slide 45: Sector outlook: Steel
Sector outlook: Steel For personal use only X WorleyParsons has an Improve focus X Select opportunities for smelter optimisation and off-gas handling X Focus on air quality and energy optimisation • WorleyParsons Gas Cleaning supporting US steel industry to meet emission compliance X Limited downtur
Slide 46: Sector outlook: Aluminium/alumina
Sector outlook: Aluminium/alumina For personal use only X Aluminium likely to recover more slowly than other commodities X Several studies, projects and Improve contracts in hand with tier 1 and tier 2 companies X Very strong Improve base load with the opportunity to grow X Select engagement for gre
Slide 47: Sector outlook: Chemicals
Sector outlook: Chemicals For personal use only ► Growth, profitability and investment in the chemical sector is driven by: Market growth CAPEX / OPEX Logistics f Fertilizers Population/ Wealth f Solar Energy f China f Middle East and North Africa Ma’aden, Saudi Arabia f United States
Slide 48: Summary Points
SUMMARY POINTS For personal use only ► Well diversified – Not dependant on one commodity or one customer type or region ► Strong Improve backbone with opportunity to grow ► Well positioned to take advantage of the sustainable opportunities in each of the sectors and regions in the short term ► Long
Slide 49: For personal use only
For personal use only
Slide 50: Australia and New Zealand
For personal use only Australia and New Zealand Andrew Wood – Managing Director
Slide 51: Presentation Elements
PRESENTATION For personal use only ELEMENTS • Current status • Regional Initiatives • Workshare • Water • Rail • LNG • Power • Retaining and securing Improve contracts
Slide 52: Current Status
Current Status For personal use only X ANZ Personnel – 8,100 • Up 35% on Oct 2007 • Only Australian full service delivery company X 26 offices • 17 based close to customers resource operations 9,000 8,000 7,000 6,000 Hydro 5,000 2008 M&M Infra 4,000 Pow er 3,000 2007 2,000 2006 1,000 0
Slide 53: Regional Initiative - Workshare
Regional Initiative - Workshare For personal use only X 1Q09- ANZ imported 260,000 hours of work from other WorleyParsons offices around the world X 1Q09- ANZ exported 116,000 hours to other offices (primarily Beijing for HVE engineering) In September the Victorian operation was awarded the Victoria
Slide 54: Regional Initiative - Water
Regional Initiative - Water For personal use only Gibson Island Water Recycling Perth Desalination Plant Wimmera Mallee Pipeline Stage 2 Sydney Desalination Plant
Slide 55: Regional Initiative – Transportation (Rail)
Regional Initiative – Transportation (Rail) For personal use only COMMONWEALTH AUSTRALIA: DEPARTMENT OF INFRASTRUCTRE, TRANSPORT AND REGIONAL PLANNING (DOTARS).
Slide 56: Regional Initiative - LNG
Regional Initiative - LNG For personal use only Prospect Size (mtpa) TIC** (AUD bn) FID Pluto Train 2 4.5 4 2009 Wheatstone 10 7 2010 Greater Sunrise 5.3 6 2009 Gorgon 15 11 2011 Ichthys 7.6 7 2008 Scarborough 6 6 2010 Prelude 3.5 5 2009 Browse 14 12 2010 Santos 4 6 2010 QGC/BG 4 8 2009 Arrow Energy
Slide 57: Sustainable Business Solutions in Power
Sustainable Business Solutions in Power For personal use only X Leading companies and governments to new solutions. X Using our technical expertise, relationships and deliver capability to provide regional solutions for the benefit of all parties and the community Integrated Power - Pilbara Advanced
Slide 58: Regional Initiative – Retain, Expand Improve
Regional Initiative – Retain, Expand Improve For personal use only • GEMCO • ConocoPhillips • Apache • Incitec Pivot • BP Kwinana • ConocoPhillips • Energy Developments • BMA Goonyella Riverside Mine • Griffin Power (TWPS) • KJO • Occidental • Vermillion • Boyne Smelters (BSL) • Verve Energy [TWPS]
Slide 59: Recent Improve Awards
Recent Improve Awards For personal use only XThe Worsley Alumina Improve contract has consistently been ranked Top Quintile. The contract has been rated by BHP Billiton as Best Practice in: Investment Process Owner Buy-in; Project; Recognition; and Front End Loading. After completing the Select phas
Slide 60: Woodside Energy North Rankin
For personal use only Woodside Energy North Rankin 2
Slide 61: Summary Points
SUMMARY POINTS For personal use only ► Substantial business within WorleyParsons’ global operations ► Significant amount of sector, project and technical leadership exported to global operations ► Well positioned in Water, Rail, LNG, Power markets across ANZ ► The trust built through our customer re