Worley Limited · ASX:WOR
Worley — WorleyParsons — Macquarie Securities Emerging Leaders Conference (May 2006)
24 slides from Worley's conference presentation, May 4, 2006
Slide 1: WorleyParsons Strategy Update
WorleyParsons resources & energy Macquarie Securities Emerging Leaders Conference WorleyParsons Strategy Update John Grill —- Managing Director / Chief Executive Officer when experience counts
Slide 2: Global reach
WorleyParsons Global reach fesources & energy Neweastle Sydne! Rockingham y Whangaret uckiand
Slide 3: Agenda
WorleyParsons Agenda fesources & energy » Contract announcements » Strategy process update e Hydrocarbons e Power Minerals and Metals e Infrastructure » Conclusions » Outlook » Q&A e when experience counts
Slide 4: Contract announcements
WorleyParsons Contract announcements fesources & energy » Exxonmobil Chemicals Beaumont Texas e Asset Services » NCP Petrochemical Complex e ChevronPhillips and Saudi Industrial Investments e US$35m » CNOOC Refinery Scope Reduction » KOC Program Management Services Contract e US$220m (US$166m procur
Slide 5: The Hedgehog and the Fox
WorleyParsons The Hedgehog and the Fox fesources & energy 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
Slide 6: Strategy process
WorleyParsons Strategy process fesources & energy » WorleyParsons has well established strategy development process » Key component is comprehensive analysis of industry / sector » Assessment of current capability » Match industry analysis with capability e Opportunities that match our capability e
Slide 7: Strategy process cont’d ...
WorleyParsons Strategy process cont’d ... fesources & energy » Strategy at customer sector / industry level e Regional / operational mix provides solid reality check e Groupwide initiatives and funding priority identified » Desired merger & acquisitions characteristics » Indications of trend of clie
Slide 8: Differentiators
WorleyParsons Differentiators fesources & energy 1. Committed, empowered and technically capable people 6. identification, integration and growth of value-adding acquisitions when experience counts
Slide 9: Meeting the global resource challenge
WorleyParsons Meeting the global resource challenge fesources & energy » New entrants to industry e Graduates e Attract back into industry » Utilise HVE centres e Traditionally China / India e Non traditional Asia, FSU, other » Workshare and increased global utilisation » Retention of existing staff
Slide 10: What has changed? What remains the same?
WorleyParsons fesources & energy What has changed? a inline arn What remains the same?
Slide 11: Source of energy supplies in 2004
WorleyParsons Source of energy supplies in 2004 fesources & energy Hydro Nuclear @lectric Energy 6% 6% Oil 37% Coal 27% Natural Gas 24% Source: BP Resources 2004 when experience counts
Slide 12: Hydrocarbons - oil reserves
WorleyParsons Hydrocarbons - oil reserves fesources & energy » >75% of oil reserves held by NOCs Saudi Aramco Iraq NOC Kuwait Petroleum ADNOC National iran Oi! Co PDV Libyan Nat Oil Co Pemex EZ Nigerian NPC QatarPC fou Lukoil ExxonMobil Petrochina G National Oil Company Yukos @ Other Shell 50 100 15
Slide 13: Hydrocarbons - gas reserves
WorleyParsons Hydrocarbons - gas reserves fesources & energy » >87% of gas reserves held by NOCs Source: Douglas Westwood Co. » Relationships with IOCs remain important as facilities are debottlenecked and an increased focus on asset integrity develops » NOCs will move to multi country / region when
Slide 14: Hydrocarbons - relationships
WorleyParsons Hydrocarbons - relationships fesources & energy » Relationship with |OCs (Independent Oil Companies) e Design and build new projects e De-bottleneck existing facilities, asset integrity e Projects are larger, complex, difficult, remote and in joint venture » Relationship with NOCs (Nat
Slide 15: Hydrocarbons - changes
WorleyParsons Hydrocarbons - changes fesources & energy What has changed: » NOCs of increasing importance e Local content and technical knowledge » Brownfields faster than greenfields » Requirement to mobilise resources globally e Increasing importance of joint ventures » Downstream and petrochemica
Slide 16: Power - changes
WorleyParsons Power - changes fesources & energy What has changed: » Increased focus on nuclear energy » Increased opportunity for asset services » IGCC / Clean coal » Air quality control South East Europe (EU mandatory) » WorleyParsons can grow connected business on hub strategy » WorleyParsons pos
Slide 17: Power - connected business hubs
WorleyParsons Power - connected business hubs fesources & energy INDONESIA Bus. Focus area with resource base || Opportunistic / needs more research
Slide 18: Power - remained same
WorleyParsons Power - remained same fesources & energy What remains the same: » Positive conditions in global power industry » New coal, new nuclear, new gas » Air quality control / clean coal US » New power development driven by local / regional growth e GDP growth / population changes » Continued
Slide 19: Minerals & Metals - changes
WorleyParsons Minerals & Metals - changes fesources & energy What has changed: » Increased project demand in Middle East e Increased linkage with Hydrocarbons and Power sector » Increased need for know how / technology e Route to asset services » Increased capability in base metals » Smelting and ga
Slide 20: Minerals & Metals - remained same
WorleyParsons Minerals & Metals - remained same fesources & energy What remains the same: » Deferral / delay of projects due to cost and resource issues » Continuing focus on development and roll out of asset services » Continue to build EPCM / PMC capability and experience » Alumina market leadersh
Slide 21: Infrastructure - changes
WorleyParsons Infrastructure - changes fesources & energy What has changed: » “The infrastructure customer sector group will use its capabilities to deliver complete infrastructure solutions to clients in the hydrocarbons, minerals and metals and power customer sectors across all phases of the proje
Slide 22: Conclusions
WorleyParsons Conclusions fesources & energy » Current industries and sectors still present growth opportunities » People, people, people » Acquisitions still available to infill capability, extend geographic coverage and provide additional resources when experience counts
Slide 23: Outlook
WorleyParsons Outlook fesources & 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 achieved so far and subject to reasonable
Slide 24: WorleyParsons Strategy Update
WorleyParsons resources & energy Macquarie Securities Emerging Leaders Conference WorleyParsons Strategy Update John Grill —- Managing Director / Chief Executive Officer when experience counts
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