Worley Limited · ASX:WOR
Worley — WorleyParsons — Investor Day (October 2008)
50 slides from Worley's investor day presentation, Oct 29, 2008
Slide 1: Strategy, Mergers & Acquisitions
For personal use only Strategy Mergers & Acquisitions Iain Ross – Managing Director Customer Sector Groups, Mergers and Acquisitions, and Strategy
Slide 2: Presentation Elements
PRESENTATION For personal use only ELEMENTS • WorleyParsons’ Differentiators • How the strategy process adds value • Strategic M&A planning • M&A process examples
Slide 3: Working Across all phases of Asset Lifecycle
Working Across all phases of Asset Lifecycle For personal use only
Slide 4: Our Vision
= © @ iD = = e) ) — @) o) — © UL resources & energy Our Vision WorleyParsons WorleyParsons will be the preferred global provider of technical, project and operational support services to our customers, using the distinctive WorleyParsons’ culture to create value for them and prosperity for our peopl
Slide 5: WorleyParsons' Differentiators
WorleyParsons’ Differentiators For personal use only
Slide 6: Differentiator
For personal use only Differentiator 5
Slide 7: Differentiator
For personal use only Differentiator 7
Slide 8: 2002 countries, offices, 4000 people
For personal use only 2002 14 countries, 37 offices, 4000 people
Slide 9: 2004 countries, offices, 4,500 people
For personal use only 2004 18 countries, 52 offices, 4,500 people
Slide 10: 2006 countries, offices, 14,300 people
For personal use only 2006 30 countries, 94 offices, 14,300 people
Slide 11: 2008 countries, offices, 32,200 people
For personal use only 2008 38 countries, 118 offices, 32,200 people
Slide 12: How strategy process adds value
How strategy process adds value For personal use only Adding Value Structural Strategy Process Select Project Delivery HVPD Tailored to suit each Improve customer sector MEGA Further refined to fit opportunities in each location Sector Strategy with: Brownfield Greenfield • Global relationsh
Slide 13: Strategic M&A Planning
Strategic M&A Planning For personal use only Culture Market Customers Capacity to compete successfully Geography People Competitors MGT Capability Structure, Competencies, Systems Experience
Slide 14: M&A Process
M&A Process For personal use only 1 2 3 4 5 ENGAGEMENT INTEREST INTENT EXECUTION INTEGRATION
Slide 15: Acquisition Example: Colt Engineering
Acquisition Example: Colt Engineering For personal use only Leverage Market Workshare Customers - in country - outside country Geography Additional Sectors Competitors - M&M - Infrastructure - Power Capability
Slide 16: Acquisition Example: Polestar
Acquisition Example: Polestar For personal use only Leverage Market ¾ Global nuclear Customers Geography ¾ OEM Relationships Competitors Capability ¾ Front-end “pull through”
Slide 17: Concluding Points
For personal use only Concluding Points Strategy development has been a journey for us over many years. We build strategic advantage through our process and focus on what is happening to our customers Our M&A process supports the strategy
Slide 18: For personal use only
For personal use only
Slide 19: Hydrocarbons
For personal use only Hydrocarbons Brian Evans -- Managing Director
Slide 20: Presentation Elements
PRESENTATION ELEMENTS For personal use only • Capabilities & Services • Industry Position • From Our Customers’ View • Our Strategy • Recent Project Awards • Market Assessment • Notable Quotes
Slide 21: Comprehensive global capability
Comprehensive global capability For personal use only UPSTREAM Fixed Offshore Floating Production Systems Onshore/ Offshore Pipelines Subsea Systems Onshore Production Facilities Processing Plants LNG and LNG Regasification DOWNSTREAM Refining Petrochemicals Sulphur Management
Slide 22: Comprehensive range of services
Comprehensive range of services For personal use only X Select XBrings real world experience to the front end, value adding phases to maximise investment return and underlying confidence. X Deliver XConverts the highest potential value options identified at the Select phase, into fully defined and s
Slide 23: Global Rankings – Engineering News Record
Global Rankings – Engineering News Record For personal use only 2008 CATEGORY #2 International Design Firm #2 Industrial Process / Petroleum Design Firm #3 Pipelines Design Firm #6 Offshore and Underwater Facilities Design Firm #10 Petroleum Design Firm #12 Refineries and Petrochemical Plants Design
Slide 24: Crude Oil Price Effects
Crude Oil Price Effects For personal use only X Crude Price Closed at: X On Tuesday, October 28, 2008 X What about today and tomorrow? X What about OPEC?
Slide 25: Tier One Customer Base
Tier One Customer Base For personal use only
Slide 26: Hydrocarbons Strategy
Hydrocarbons Strategy For personal use only • Further strengthen Key IOC and NOC Customer Relationships • Focus on long term contracts and asset-based services • Success in project delivery & Growing Hubs • Step out strategies • Pull through of capability, services and sectors • Unconventional Hydro
Slide 27: Recent Awards
Recent Awards – For personal use only XArkuntun Dagi – Sakhalin 1 XAgip - Kashagan Full Field Development XWorleyParsons Russian JV, XA JV led by Worley-Parsons was awarded the front-end engineering for the full field Sakhneftegaz Engineering, was awarded development of the giant Kashagan oilfield i
Slide 28: Expanding Geographic Presence
Expanding Geographic Presence For personal use only
Slide 29: Recent Awards – Long Term Contracts
Recent Awards – Long Term Contracts For personal use only X ConocoPhillips Australia X BP EPMS Global Contract XAwarded 3 year contract for XAwarded one of three global Engineering, ConocoPhillips’ operating assets in Project Mangement Services contracts for Australasia including 3 Bayu Undan BP’s w
Slide 30: Recent Awards – Step Out Strategies
Recent Awards – Step Out Strategies For personal use only X HESS Pony Platform - Gulf of Mexico X ConocoPhillips Pipeline Alliance – USA •Subsea System and the TLP Hull and X Five-year renewable Alliance for Mooring Pre-FEED, FEED and execution engineering, procurement & construction support. Hess C
Slide 31: Global Hydrocarbons Market Update
Global Hydrocarbons Market Update For personal use only X Brownfield likely to lead Greenfield in Hydrocarbons demand (as expected) X Major existing Hydrocarbons projects within WorleyParsons have seen very little effect X Some softening in the Global Downstream/Refining and Petrochemicals markets h
Slide 32: Customer Comments
Customer Comments For personal use only X "We have previously indicated that we will be investing about $125 billion over the next five years and that still looks pretty much in place," said Exxon Mobil Chief Executive Rex Tillerson —WSJ Oct 21, 2008 X Chevron CEO Dave O'Reilly echoed these comments
Slide 33: Customer Comments
Customer Comments For personal use only X ConocoPhillips CEO Jim Mulva said ConocoPhillips "will probably keep its capital spending budget flat in 2009 amid continued volatility in the commodity and credit markets…” – ConocoPhillips Quarterly Earnings Call, October 22, 200 X Saudi Arabia’s mega $260
Slide 34: Summary Points
SUMMARY POINTS •Five years of strategy has proven For personal use only successful & robust throughout market cycles. •Investment to create local offices close to customers crystallizes the Improve value proposition: invaluable during the next period. •Traditional Hydrocarbons customers: - IOC or ma
Slide 35: For personal use only
For personal use only
Slide 36: For personal use only
For personal use only
Slide 37: Ed Smith – President
For personal use only Ed Smith – President
Slide 38: Presentation Elements
PRESENTATION For personal use only ELEMENTS ► Capability Overview ► Transaction Overview Merged entity branding Complementary capabilities Value to customers Synergy wins achieved ► Today’s perspective on the deepwater market Key growth regions Industry leadership
Slide 39: Capability overview
Capability overview For personal use only MARINE PIPELINES FLOW ASSURANCE SUBSEA SUBSEA SYSTEMS SYSTEMS FLOATING SYSTEMS LNG SERVICES MARINE RISER SYSTEMS MARINE TERMINALS
Slide 40: Understanding subsea challenges
Understanding subsea challenges For personal use only
Slide 41: Transaction overview
Transaction overview For personal use only X April 1 – 2008 WorleyParsons acquired INTEC Engineering from Hereema Group X Key to WorleyParsons’ long term hydrocarbons strategy Stronger operating bases in Asia, Europe, US Gulf of Mexico, Latin America and the Arctic Specialist high-end consulting
Slide 42: Merger of capability to one brand
Merger of capability to one brand For personal use only X All floating systems, offshore pipelines and subsea capability
Slide 43: Complementary capabilities
Complementary capabilities For personal use only INTECSEA Hull and Moorings for TLPs, Spars and Semi submersibles and TTRs WorleyParsons Topsides, Jackets and overall PM services INTECSEA Marine Pipelines, Production Risers, Subsea, Flow Assurance and FPSOs
Slide 44: Value to INTECSEA customers
Value to INTECSEA customers For personal use only X Covers subsea and floating systems from wellhead to shoreline X Minimizes interface management issues X Provides concept-neutral solutions X Offers creative what-if and proven alternatives X Help in capital planning and prioritizing development opt
Slide 45: Key Projects
Key Projects For personal use only X BHPB’s Shenzi Development X Burullus Gas’ West Delta Deep XINTECSEA have been awarded the pre- XINTECSEA have been awarded an eighth FEED through execution for subsea, risers, extension on this project, continuous as owner's flowlines and Tension Leg Platform for
Slide 46: Key Projects
Key Projects For personal use only DT WCTP 9 00 1000 M-2 130 1100 0 M-3 1 00 2 14 M-1 12 00 1500 H-1 1600 FPSOs 1 – w/gas injection 2 – w/water injection 1700 X Hess’ Pony Development, GoM USA X Kosmos Jubilee, offshore Ghana INTECSEA were awarded the hull & moorings XINTECSEA were awarded the large
Slide 47: Perspective on the deepwater market
Perspective on the deepwater market For personal use only X Offshore production growth forecast 2007-11: Shallow water 18% growth Deepwater 78% growth X Deepwater oil projects face internal hurdle challenges for oil < USD80 100 200 Shallow Off shore 180 Deep 90 Onshore 160 140 Expenditure ($bill
Slide 48: Key growth areas for deepwater
Key growth areas for deepwater For personal use only X INTECSEA is well positioned to meet the future needs of the market Gulf of Mexico Asia Pacific West Africa Brazil
Slide 49: INTECSEA – Industry leadership
INTECSEA – Industry leadership For personal use only Largest FPSO Deepest subsea production system Longest oil and gas tiebacks In the subsea industry the challenges are only First subsea allocation meters increasing: deeper, longer, First super duplex umbilical technically more demanding
Slide 50: Summary Points
SUMMARY POINTS For personal use only ► The strategic acquisition of INTEC Engineering has optimally positioned WorleyParsons is the deepwater market. ► Merging the capability of WorleyParsons, Sea Engineering and INTEC Engineering into INTECSEA has been welcomed by customers ► The deepwater market i