Worley Limited · ASX:WOR
Worley — Macquarie Equities 2004 Emerging Leaders Conference
21 slides from Worley's conference presentation, May 7, 2004
Slide 1: Macquarie Equities 2004 Emerging Leaders Conference
Worley Macquarie Equities 2004 Emerging Leaders Conference John Grill Managing Director & Chief Executive Officer 7 May 2004 ia hy Oe AUG ‘4 HYDROCARBONS | MINERALS, METALS & CHEMICALS | INDUSTRIAL & INFRASTRUCTURE | DEVELOPMENTS
Slide 2: Overview
@ Overview @ Half-year Results @ Worsley EPCM Contract Award @ Strategy Differentiator 5 — Acquisitions @ Summary and Outlook
Slide 3: Worley Overview
Worley Overview @ Leading professional services provider to the Energy, Resource and Complex Process Industries @ Across all phases of projects 4 2 3 4 5 IDENTIFY SELECT DEFINE EXECUTE OPERATE Licences Appraisal Asset Dev't Plans Detailed Design Maintain Strategic Fit [»| Concept Eng’g | »| Front-en
Slide 4: International Operations
Worley International Operations @ aia Qari Trinidad ralla @ New Zealand 18 Countries 42 Offices Over 4500 Personnel Nee eee ee ee ee een een ay
Slide 5: Financial Performance
Worley Financial Performance Aggregated Revenue EBITDA EBIT Margin % Net Profit Margin % “Half Year ee hee : 34 Dec 2003 242.3 21.3 16.6 6.9% 12.8 5.3% “Half Year 235. 8 20.5 15.7 6.7% 11.5 4.9% Sade Be 31Dec 2002. ~ Full Year. 2003 W744 415 32.1 6.8% 25.9 5.5% Impact on first half aggregated revenu
Slide 6: Health, Safety and Environment
Worley Health, 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) & A number of initiatives u
Slide 7: Strategy
Worley Strategy @ Differentiators 1. Outstanding Operational & Corporate Performance 2. Focus on Long-term Contracts; Integrated Services Contracts (ISC) and Alliances 4. Comprehensive Geographic Presence and Industry Capability 5. Identification, Integration and Growth of Value-adding Acquisitions
Slide 8: Differentiator No. 3: Success in Project Delivery
Worley Differentiator No 3 Success in Project Delivery; Large and Small i projects will always be important Objective Measures Performance exceeding client expectations Health, Safety and Environment Schedule Cost Quality > 80% Client satisfaction index row capability for large projects EPCM $1 bill
Slide 9: Why Worley Seeks EPCM Opportunities?
Worley Why Worley Seeks EPCM Opportunities? @ Industry support for EPCM Popular execution model for larger, schedule critical or complex projects Highly utilised within industry sectors Worley services @ Appropriate risk allocation Allocated to party most suited to control risk Fits Worley’s chosen
Slide 10: Worsley Alumina Expansion
Worley Worsley Alumina Expansion & EPCM contract awarded for USD192M DCP project increase refinery output to 3.5Mtpa First in a number of planned refinery projects Brownfields de-bottlenecking project @ 2 year project timeframe Design executed in Perth Site presence in 2" year Support from Worley Bu
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 6. Portfolio of Develop
Slide 12: Differentiator No. 5: Acquisitions
Worley Differentiator No 5 Identification, Integration and Growth of Value-adding Acquisitions Objective Identify opportunities, optimise commercial negotiations, due diligence process and business case for merged entity Successful implementation of integration and growth plans Divest under-performi
Slide 13: Process
Worley Process & History of small — medium size acquisitions Extend technical coverage Geographic coverage & Majority of opportunities through existing relationships @ Risk reduced Known management & history Known risk profile Acceptable valuation multiples One-on-one negotiations ~ generally no com
Slide 14: Expansion Through Acquisitions
Worley Expansion Through Acquisitions Geographic Markets Additional Pre-existing a v4 Pre-existing Additional Technical / Industry Capability
Slide 15: Implementation Example: Worley Toussaint & Richardson
Implementation Example Worley Toussaint & Richardson @ Background May 2000 Light metals expertise $15m revenue Phase 4 Scope: Detailed Design & Strategic Intent industry diversification Growth by adding Worley’s capabilities ~ Systems, Alliances/ISCs Growth through Worley’s existing geographic sprea
Slide 16: Implementation Example: Worley Jones & Jones
Implementation Example Worley Jones & Jones @ Background July 2003 JONES & JONES Aluminium industry capability ENGINEERING DESIGN PTY LTD $6m revenue Phase 4 scope: Detailed Design @ Strategic Intent industry sector diversification Growth by adding Worley’s capabilities ~ Systems, Alliances/ISCs Gro
Slide 17: Implementation Example: Jacobs Construction Management Malaysia
Implementation Example Jacobs Construction Management Malaysia (including Protek Engineers) Worley @ Background December 2001 US company exiting market 20 years Malaysian hydrocarbons experience ~ onshore and offshore Good relationships, but poor cost/ profit performance @ Strategic Intent Step chan
Slide 18: Implementation Example: Worley MacDonald Engineering Group
Implementation Example Worley MacDonald Engineering Group @ Background August 2003 Tar sands / heavy oil experience Nearly 40yrs experience in Canada Canada — 2"¢ highest proven oil reserves! @ Strategic Intent Geographic coverage Add technical capability to Hydrocarbons Customer Sector Group Growth
Slide 19: Value Adding Acquisitions - Summary
Worley Value Adding Acquisitions - Summary & Will continue to seek acquisitions that: Add technical depth and breadth increase geographic spread @ Latent financial capacity enables ongoing acquisition of small to mid-size businesses & Conversion ratio of opportunities 1:3-4 @ Low risk strategy Relat
Slide 20: Outlook
Worley Outlook @ Negative effect of strong Australian dollar & Positive effect of lrag 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
Slide 21: Macquarie Equities 2004 Emerging Leaders Conference
Worley Macquarie Equities 2004 Emerging Leaders Conference John Grill Managing Director & Chief Executive Officer 7 May 2004 ia hy Oe AUG ‘4 HYDROCARBONS | MINERALS, METALS & CHEMICALS | INDUSTRIAL & INFRASTRUCTURE | DEVELOPMENTS
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