Worley Limited · ASX:WOR
Worley — WorleyParsons — Macquarie Securities Australian Conference 2007
25 slides from Worley's conference presentation, May 2, 2007
Slide 1: Macquarie Securities Australian Conference 2007
WorleyParsons resources & energy Macquarie Securities Australian Conference 2007 John Grill - Managing Director / Chief Executive Officer when experience counts
Slide 2: Agenda
WorleyParsons Agenda Tesources & energy = Background = Half-year results = Colt update = Strategy update = Qutlook 2 when experience counts
Slide 3: Background
WorleyParsons Background Tesources & energy Leading professional services provider to the Energy, Resource and Complex Process Industries Organised into 4 Customer Sector Groups: Hydrocarbons | Power | Minerals & Metals | Infrastructure Across all phases of projects 1 2 3 4 5 ASSESS SELECT DEFINE EX
Slide 4: Highlights
WorleyParsons Highlights Tesources & energy « Half year net profit of $94.5 million up 53.0% on the first half FYO6 = Half year net profit up 22.3% on the second half of FY06 * EBIT growth of 23.1% to $131.2 million on the previous half = International operations contribute approx 70%; 80% post Colt
Slide 5: Material announcements
WorleyParsons Material announcements" Tesources & energy = Acquisition of 100% of Sea Engineering Inc = Awarded EPCM contract for Mobil Producing Nigeria = Awarded Project Management Services contract by Sipchem = Awarded 2nd Phase of Belene Project = Award of Umm Shaif engineering services contract
Slide 6: Colt Integration
WorleyParsons Colt Integration Tesources & energy = Completion 12 March 2007. Earnings to accrue from that date. = The integration process is a proven WorleyParsons process utilised to — ensure that our Canadian businesses continue to safely deliver to our clients and to budget and — to determine a
Slide 7: Colt Integration continued....
WorleyParsons Colt Integration continued.... Tesources & energy * Priorities — Key management systems decisions — Roll out of delegations (complete) — Roll out of risk framework — Building awareness of non hydrocarbons opportunities — Capturing synergies — Integration of financial reporting (full co
Slide 8: Colt Integration continued....
WorleyParsons Colt Integration continued.... Tesources & energy » First synergy win! Total awards Jocelyn Creek SAGD to combined Colt & Komex team = Additional early synergies are being identified in the Minerals and Metals sector with: — Colt Ontario supporting HGE in pursuit of significant project
Slide 9: Global WorleyParsons Operations
WorleyParsons Global WorleyParsons Operations Tesources & energy Se — — Nanaimo; Vancauvg Boer Parl M Ker i - ‘hilippines Manila afapsia i Malaysia Caco Larne Seog Bear] Kucie Bele ei 18 Nig, i ingap eh "e tndanesia Jaxar et ut ‘Mackay os Gladstone Gp frstinne wnangarel weklans 9 7Now Piyouth GBPrve
Slide 10: The Hedgehog and The Fox
WorleyParsons The Hedgehog and The Fox Tesources & 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 11: Differentiators
WorleyParsons Differentiators Tesources & energy = Committed, empowered and technically capable people * Industry leadership in Health, Safety and Environment = Outstanding operational and corporate performance = Focus on long term contracts = Success in project delivery - large and small = Strength
Slide 12: Safety
WorleyParsons Safety Tesources & energy = Recently developed 5 year HSE strategy. A key part of that strategy is a new behaviour based HSE framework. = This will comprise what is required to achieve Zero expectations for what our processes and procedures are to deliver behavioural expectations of st
Slide 13: Strategy Business Elements
WorleyParsons Strategy Business Elements Tesources & energy Markets we service remain strong Number of key elements of the differentiators are being emphasised in 2007/2008 strategy plan: 3 when experience counts
Slide 14: Watch this space for a Paradigm Shift
WorleyParsons Watch this space for a Paradigm Shift Tesources & energy A service that fully embeds environmental, social and economic sustainability into all aspects of project delivery, across the asset life-cycle. 4 when experience counts
Slide 15: Whether you take a social view (Green)
WorleyParsons Whether you take a social view (Green) Tesources & energy = World is changing — Inexorably rising population — Huge stress on natural world — Massive resource demands — Species extinctions — Changing climate — Significant global risks for humanity = To meet challenge: — Build in busine
Slide 16: Or a financial view (Black)
WorleyParsons Or a financial view (Black) Tesources & energy = World is changing ~— Increasing energy costs ~ Increasing resource costs (water, etc) — Tightening legislation — Public opinion and community attitudes changing — Increased costs of environmental and social compliance — Volatility = To m
Slide 17: Client's Perspective — API Sustainability
Client’s Perspective — API Sustainability WorleyParsons Reporting Tesources & energy 7 when experience counts
Slide 18: Client's Perspective — API Sustainability
Client’s Perspective — API Sustainability WorleyParsons Reporting Tesources & energy New Solution 18 ce counts
Slide 19: Resilience — Future Proofing
WorleyParsons Resilience — Future Proofing Tesources & energy Plus.....move the perspective (decision window) out to the future. Normal Decision No’ Near Future 20 Years SS $s/T $20/T $85/T? Cost of CO, emissions $0.1/m3 $ 1.0/m3 $5/m3? Cost of Water $0.05/KWhr $ 0.50/KWhr $i/kwhr? = Cost of Energy
Slide 20: Resources Development and Workshare
WorleyParsons Resources Development and Workshare Tesources & energy « Attraction, development and retention of committed, empowered and technically capable people remains our biggest challenge = Long term and short term incentive schemes are assisting us in our aspiration to be ‘Employer of Choice’
Slide 21: Global / Local delivery
WorleyParsons Global / Local delivery Tesources & energy = Our operating profile presents us with a number of unique opportunities = Our large number of offices close to our clients coupled with hub offices is recognised as a key differentiator and supported by our customers = Understanding and inte
Slide 22: Acquisitions
WorleyParsons Acquisitions Tesources & energy = Macro conditions still supportive of additional acquisition opportunities = ‘Organisational capacity’ and ‘financial capacity’ required = Cultural fit is fundamental = Preference for building additional capacity in ‘non hydrocarbons’ sectors = Signific
Slide 23: Risk Framework
WorleyParsons Risk Framework Tesources & energy = We define risk as the effect of uncertainty on our business objectives, both negative and positive = Risk Management enables us to make business decisions by taking better account of the uncertainty implicit in our business and the possibility of fut
Slide 24: resources & energy
WorleyParsons —_— resources & energy a ie 24 where ce counts
Slide 25: Outlook
WorleyParsons Outlook Tesources & energy = We expect the markets for WorleyParsons’ services will continue to be strong. Our key markets and sectors are experiencing positive conditions and we are well positioned to respond to these opportunities. Subject to conditions remaining favourable in these
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