Full Year Results 2009 1 Overview Good performance for the 2009 - - PDF document

1

Full Year Results 2009

2

Overview

• Good performance for the 2009 Financial

Year

• Challenging markets for oil sands in

Canada and minerals & metals in Australia

• US, Europe, Middle East, and other

markets in Canada and Australia experienced strong operating conditions Kashagan Full Field Development, Kazakhstan

3

Financial Highlights

• Net profit after tax $390.5M Up 13.6%
• Aggregated revenue $6,225M Up 27.0%
• EBITDA $693.2M Up 18.1%
• Operating cash flow $546.4M Up 175%
• Earning per share 161.1c/s Up 13.0%
• Dividend

55 c/s fully franked

• Strong financial capacity

4

Snapshot

• Consolidated position in mega-project

execution and management

• Performance underpinned by

extensive long term contracting base

• Sustainability offering continues to be

well received by customers, leading to projects and opportunities with a significant EcoNomicsTM component

• Quick reaction to shift in market in

Canada and Australia Shell Martinez, USA

5

Safety Performance

• Some outstanding LTI Free milestones:
• 20,000,000 Manhours - Mega EPCM project Saudi Arabia
• 10,000,000 Manhours - Mega EPCM project Canada
• 9,000,000 Manhours - Fabrication yard Thailand
• 6,500,000 Manhours - Construction yard China
• 5,000,000 Manhours - Nigeria operations

0.02 0.02 Lost Workday Case Frequency Rate* 0.11 0.14 Total recordable Case Frequency Rate* 2009 2008 CATEGORY

* WorleyParsons applies the US OSHA (United States Occupational Safety & Health Administration) reporting requirements

6

People

4 million workshare hours completed

28,800 personnel 37 countries

7

Mega-Projects

• Currently involved in 57 “mega-

projects”

• Across the full development

spectrum- from study to execution

• Systems established
• Harsh and remote climate experience

Woodside Pluto LNG, Australia

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Mega-Projects

• Kashagan full field development
• SAMREF’s clean fuels project
• Taccamol integrated chemical

complex

• ExxonMobil PNG LNG development
• Integrated Gas Development

program management

• Egypt’s first nuclear power plant

SAMREF Refinery, Saudi Arabia

9

Long Term Contracts

• Secured 23 new long term contracts
• Renewed 9 contracts
• Currently servicing over 150

customers around the world through these long term collaborative contracts

• Projects focussed on energy

reduction and efficiency increases

• Continue to invest in our systems and

process in this area Petro Canada facility, Canada

10

Long Term Contracts

• BP global offshore operations
• Chevron strategic contractor

relationships

• ExxonMobil Malaysia ESA
• ConocoPhillips Indonesia ESA
• ConocoPhillips Australia ESA
• AGIP KCO O&M technical services

in Kazakhstan

• CNOOC, CNPC frame agreements in

China Bayu Undan Offshore Facility, Australia

11 Optimisation and Recovery Advanced Coal Renewables Carbon Management CCS Advanced Gas Biological Solutions

• First in our peer group to fully embed and integrate sustainability into our core

business and project management processes

12

Responding to the GFC

• Revisited our cost base and margins, identified innovative solutions and

refocused our teams across all markets

• Reduction in personnel in Canada and Australia
• Reviewed all internal costs and initiatives, funding those we determined to be

essential

• Three Executive Directors and Managing Directors in Canada & ANZ have

undertaken a reduction in base salary of between 10% and 15%

• “Sharing the pain” with customers is essential in long term relationships
• Substantially improved operating cash flow in 2009 and subsequent reduction

in gearing

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Full Year Results 2009 Financial Results David Housego

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Financial Profile

AUD $m FY05 FY06 FY07 FY08 FY09

• vs. FY08

Revenue 1 1,379.5 2,464.4 3,534.6 4,900.7 6,225.1 27.0% EBITDA 117.0 219.9 353.4 587.0 693.2 18.1% EBITDA margin 8.5% 8.9% 10.0% 12.0% 11.1% (0.9%) Net profit 66.5 139.1 224.8 343.9 390.5 13.6% Net profit margin 4.8% 5.6% 6.4% 7.0% 6.3% (0.7%) 5 Year CAGR 66.2% 67.7% 66.3% Normalized EPS (cps) 2 35.8 66.9 105.4 153.4 172.8 12.6% Cash flow from operating activities 91.1 115.7 195.9 198.8 546.4 174.8%

1 Aggregated revenue 2 Before amortization of intangibles including tax effect of amortization expense

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Financial Ratios

Target ROE: 20%

1 Aggregated revenue

197.5 H2 66.5 139.1 224.8 343.9 390.5 2005 2006 2007 2008 2009 Net profit $m H1 3,259.6 H2 1,379.5 2,464.4 3,534.6 4,900.7 6,225.1 2005 2006 2007 2008 2009 Revenue 1 $m H1 8.5 8.9 10.0 12.0 11.1 2005 2006 2007 2008 2009 EBITDA Margin % 24.5 32.1 31.3 24.5 25.4 2005 2006 2007 2008 2009 Return on Equity %

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Change In Net Profit FY09 vs. FY08

• Tax rate 28.6% (FY08: 28.9%)
• FX translation impact ~ $29m net profit vs. FY08. USD 2009 74.9c v’s 2008 89.6c

343.9 116.6 1.1 0.3 (14.4) 2.6 (20.9) (11.9) (19.8) (7.0) 390.5 200.0 250.0 300.0 350.0 400.0 450.0 500.0 FY08 Hydrocarbons Power Minerals & Metals Infrastructure & Environment Corporate

• verhead *

Depreciation & Amortisation Net Interest Income Tax Minority Interest FY09 $m

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Segment Results

FY08 FY09 Change Hydrocarbons Revenue 3,612.5 4,749.1 31.5% EBITDA 438.5 555.1 26.6% EBITDA Margin 12.1% 11.7% (0.4%) Power Revenue 469.2 547.7 16.7% EBITDA 65.4 66.5 1.7% EBITDA / Revenue 13.9% 12.1% (1.8%) Minerals & Metals Revenue 471.1 589.2 25.1% EBITDA 85.3 85.6 0.4% EBITDA / Revenue 18.1% 14.5% (3.6%) Infrastructure & Environment Revenue 342.6 367.6 7.3% EBITDA 49.4 35.0 (29.1%) EBITDA / Revenue 14.4% 9.5% (4.9%)

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Cash Flow

$m FY05 FY06 FY07 FY08 FY09

EBITDA 117.0 219.9 353.4 587.0 693.2 Interest and tax paid (34.4) (54.7) (65.9) (137.4) (215.8) Working capital / Other 8.5 (49.5) (91.6) (250.8) 69.0 Cash flow from operations 91.1 115.7 195.9 198.8 546.4 Key metrics: Net working capital / revenue (%) 4.0% 5.1% 6.8% 8.7% 5.2% DSO (days) 81.3 69.3 77.4 87.4 67.8 Cash from operations / net profit (%) 137.0% 83.2% 87.2% 57.8% 139.9%

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Cash Flow

100 200 300 400 500 600 FY05 FY06 FY07 FY08 FY09 AUD $M

Cash flow from operations

(400.0) (200.0) ‐ 200.0 400.0 600.0 800.0 1,000.0 FY05 FY06 FY07 FY08 FY09 AUD $M

Cash flow from financing activities

(1,000.0) (900.0) (800.0) (700.0) (600.0) (500.0) (400.0) (300.0) (200.0) (100.0) ‐ FY05 FY06 FY07 FY08 FY09 AUD $M

Cash flow from investing activities

• Cash flow from operations up 175%
• No acquisitions in year; proceeds from

asset sale; increase in PP&E to $148m

• Repayment of borrowings; ($100m)

increased dividends; no new equity

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Liquidity & Gearing

Liquidity Summary $M Jun-07 Jun-08 Jun-09

Loan & OD facilities 761.9 1,094.0 1,376.1 Less: facilities utilized (518.3) (735.9) (745.2) Available facilities 243.6 358.1 630.9 Plus: cash 118.6 86.0 178.3 Total liquidity 362.2 444.1 809.2 Bonding facilities 184.5 221.9 452.5

Key Metrics Jun-07 Jun-08 Jun-09

Gearing ratio 22.3% 31.4% 25.5% Facility utilization 68.0% 67.3% 54.2% Average cost of debt

• 6.1%

5.5% Average maturity (years)

• 4.6

4.1 Interest cover 16.0x 11.7x 14.1x Net Debt/EBITDA 1.1x 1.1x 0.8x Bonding facility utilization 55.4% 77.3% 52.9%

• Refinanced US$190m and A$115m of loan facilities (new syndicated facility limit of

US$300m), US$60m maturing in Feb 2010 and US$240m maturing in Feb 2012

• Loan and overdraft facilities of $368.9m to be refinanced in 2010 ($46.8m overdraft) – 58%
• f available headroom. $178m cash
• Bonding and guarantee capacity increased in 2009 to $452m.

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Other

• Final dividend declared of 55 cps; 100% franked
• To be paid on 28th September 2009; record date 3rd September 2009
• AGM: 27th October 2009
• Investor Day: late November 2009 (Date to be confirmed)
• EPS hurdle for 2010 award. Compound growth of CPI + 8% EPS growth for 3

years

• Investor mix at 31 July 2009:
• 25% founders & staff
• 25% domestic institutions
• 21% foreign institutions
• 29% other investors

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Full Year Results 2009 Sector Review & Outlook John Grill

23

Hydrocarbons

• Major projects executed in 2009
• Shell’s Albian Sands - Canada
• Woodside’s Pluto LNG - Australia
• Petrobras’ Comperj complex - Brazil
• SAMREF’s refinery - Saudi Arabia
• Saudi Aramco’s Ras Tanura - Saudi Arabia
• Key awards
• Keystone pipeline expansion - linking oil

sands to US refineries

• Point Thompson - Alaska
• Gas Treatment Plant - Alaska
• Polimerica’s Jose Olephins - Venezuela

Revenue $4,749.1M +31% EBITDA $555.1M +27% Margin 11.7%

• 0.4%

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Hydrocarbons

OUTLOOK:

Expect similar result as FY09

• Growth in Middle East, US
• Offset by
• FX on higher Australian dollar
• Decline in earnings in Australia
• Rebuilding of demand in Canada

BP Assets, Gulf of Mexico

25

Power

• Economic crisis affecting demand and

capital availability, however we are seeing

• pportunities for growth
• Power plant upgrades and infrastructure

projects in US, Saudi Arabia, Singapore, Canada, Peru

• PMC and engineering for Vietnam

Electricity

• Owners Engineering role in Canada, US,

Bulgaria Mexico, Vietnam

• Relationships with GE and Siemens
• Leader position in Solar – 11 countries
• World’s first solar tower in Spain

Revenue $547.7M +17% EBITDA $66.5M +2.0% Margin 12.1%

• 1.8%

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Nuclear

Bruce Power, Canada

• Experiencing significant work in
• perating and new build plants
• Bulgaria
• Egypt
• Armenia
• 10 year development schedule
• STARS Licence Renewal in US
• Providing plant life extension

submissions

• Extension of Fossil Plants long term

contracts to include nuclear fleet

27

Power Outlook

OUTLOOK:

Key drivers include

• Continued performance in the US
• Regional development in Europe
• Nuclear and renewable developments

We would expect growth in earnings in

the Power sector in 2010 Solar Power

28

Minerals and Metals

• Experienced rapid slowdown in second

half

• Continued role on EMAL, Abu Dhabi
• Ma’aden Phosphate success has led to

phosphate projects in:

• Egypt
• Australia
• South Africa
• Key Awards
• Tia Maria Copper – Peru
• Serra Sul Iron ore – Brazil
• Lead Smelter – Australia
• Coal study – South Africa

Revenue $589.2M +25% EBITDA $85.6M 0% Margin 14.5%

• 3.6%

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Minerals and Metals

OUTLOOK:

• As confidence grows we see renewed

interest in progressing projects

• Likelihood of new project development

to remain subdued

• Encouraged by the continuing spend in

Improve

• Expect earnings to be materially below

FY09 EMAL, Abu Dhabi

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Infrastructure and Environment

• Sector impacted by contraction of

resources sector

• Successfully completed our role on FMG
• “Pit to Port” Program Management
• FMG
• Karara Iron ore
• Oakajee Port and Rail
• Rail recognised globally
• Singapore underground station
• Mecca- Medina – Jeddah high speed rail

link

• Site and Master Planning
• Nigeria, South Africa, China

Pit to Port Solutions Revenue $367.6M +7% EBITDA $35.0M

• 29%

Margin 9.5%

• 4.9%

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Infrastructure & Environment

Fortescue Metals Group, Australia OUTLOOK:

• Outlook is improving in 2010
• Solid demand in
• Water
• Waste water
• Desalination
• Remediation services
• Carbon advisory services
• Nascent recovery in resource sector

projects

• We currently expect an

improvement in earnings in this segment in 2010

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Awards - Select

• Colorado Governor’s Energy Office

Environmental Studies - USA

• Alberta Oil Sands Water Use Strategy

Study - Canada

• Climate Change Engineering Risk

Assessment - Global

• Climate Change Study, London, World
• Bank. - Global
• Ultra Clean Coal Assessment - USA
• Nuclear powered Aluminium smelting

feasibility study - Russia

• AMAL Steam FEED – Oman
• Sulphur Recovery Unit revamp –

Singapore

• Acid Plant Review - Bulgaria
• AGRP Feed – Kuwait
• Yolla Platform expansion – Australia
• Clio Upstream study – Australia
• AS2 Conceptual Study - Canada
• Vanykov Smelting process –

Kazakhstan

• Air and Noise modelling – Spain
• Block 8 North Study – South Africa
• Onshore LNG study – Norway
• Wheatstone LNG T2 – Australia
• Borouge 3 Feasibility study – Abu Dhabi
• IGCC plant evaluation – USA
• SUBAN Gas Plant Phase 3 study -

Indonesia

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Awards - Deliver

• Fertil 2 EPC Phase – Abu Dhabi
• Belene NPP – Bulgaria
• Taylorville OE – USA
• Voyageur Pipeline – Canada
• Refinery expansion – Canada
• Karara PMC – Australia
• LM 600a Peking Units – USA
• NCP Petrochemical Phase 4 – Saudi

Arabia

• Firebag Stage 4 – Canada
• Mabruh Oil Al Jurf Phase 2 – Abu Dhabi
• Biomass Conversion – Canada
• Growth Area Station Program - Australia

Doha Port expansion – UAE Siemens T-Power – USA LER project – China MCE C485 Project – Singapore Sakhalin II offshore processing – Russia Alumina refinery – Saudi Arabia Heng Shan project – Australia Perth desalination – Australia Lodi Energy centre- USA BL England Phase III – USA AMAL Steam Project – Oman SEC Oil Pipeline CM – Saudi Arabia Line 2 Mass Rapid Transport System -

Singapore

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Awards - Improve

• Shell ESA – Canada
• Shell Martinez – USA
• BP EPCM agreement – Global
• Chevron Pipelines and terminals –

Global

• Imperial Oil ESA – Canada
• Petro Canada ESA – Canada
• Chevron ESA – Angola
• Xcel Energy MSA – USA
• Pacific Gas and Electric MSA – USA
• Westinghouse Electric MSA – USA
• One Steel Whyalla – Australia
• Great Point Energy - USA
• ENMAX MSA - Canada
• Allegheny GSA – USA
• Contra Costa Electric EPC MSA – USA
• Con-Edison GSA - USA
• Chevron Nigeria ESA Phase II – Nigeria
• Total E&P Nigeria Limited, Frame

Agreement - Nigeria

• Brunei Shell EDS extension – Brunei
• OneSteel Improve renewal – Australia
• Pacificorp MSA – USA
• Inco Vale Goro ISC – New Caledonia
• ConocoPhillips ESA – Australia
• Sasol Technology Framework

Agreement - Global

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Summary 2010

• Mega-project capability has resulted

in significant awards across all the project phases

• Long term contracts will underpin

regional performance

• Sustainability and Renewables

capability seeing increased demand

• Significant effort to “share the pain”

with customers

• Strength of Australian dollar
• Canada and Australia stabilised,

remainder of world robust

36

Sector Outlook

• Hydrocarbons: Growth in Middle East

and US offset by other factors. Result expected to be in line with FY09

• Power: Regional development in Europe

and Renewables

• Minerals and Metals: Expected result

materially below FY09, awaiting market

• investment. Improve contracts will

underpin the performance

• Infrastructure and Environment:

Improving result Santee Cooper Power Station, USA

37

Group Outlook

“Many of our key markets remain robust and we are encouraged by the evidence of some improvement in a number of the markets most affected in 2009 and by the continued award of significant contracts. “However, the effects of extensive project deferrals and delays experienced through the second half of 2009 are expected to continue into 2010. Earnings will also be affected by ongoing pressure on margins and the likely negative impact of a higher Australian dollar. “At this stage, the continuing uncertain market conditions make it unlikely that we can repeat this year’s result in the 2010 financial year. We expect, therefore, to report a modest decrease in earnings in 2010, with earnings weighted to the second half of the financial year. “We are confident that our medium-term and long-term prospects remain very positive based on our competitive position and our strong financial capacity. The company continues to evaluate opportunities for new business growth that will add to

• ur existing capabilities and provide value for our shareholders.”

38

Full Year Results 2009

39

Contractual Acronyms

EDS – Engineering and Design Services E&P – Engineering and Procurement EPC – Engineering, Procurement and Construction EPCM – Engineering, Procurement and Construction Management ESA – Engineering Services Agreement ESP – Engineering Services Provider FEED – Front End Engineering and Design FEL – Front End Loading GSA – General Services Agreement OE – Owners Engineer PMC – Project Management Consultancy

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FX Translation Impact

• FX translation impact ~AUD $29m net profit vs. FY08 (5.2% growth vs. 13.6%)

Currency Annualized AUD $m NPAT translation impact of 1c ∆ AUD:CAD 0.9 AUD:GBP 0.9 AUD: USD 2.4 Currency FY08 FY09 FY08 ∆ AUD:CAD 90.6 87.1 4.0% AUD:GBP 44.8 46.3 (3.2%) AUD: USD 89.6 74.9 19.6%

65.0 70.0 75.0 80.0 85.0 90.0 95.0 100.0 105.0 110.0 115.0 120.0 125.0 Jul-07 Sep-07 Nov-07 Jan-08 Mar-08 May-08 Jul-08 Sep-08 Nov-08 Jan-09 Mar-09 May-09 Jul-09 Movement in Major Currencies

USD GBP CAD

Asia & Middle East 17% Europe & Africa 14% Americas 20% Canada 25% Australia & New Zealand 24%

Aggregated Revenue FY09

41

Gearing Ratio Reconciliation

Gearing Ratio $M Net Debt Total Equity Gearing Ratio June 2008 649.9 1,416.5 31.4% FX impact 113.3 32.5 Underlying debt repaid (99.8)

• Underlying increase in cash

(96.5)

• Profit
• 390.5

Dividend paid

• (207.0)

Other

• 22.6

June 2009 566.9 1,655.1 25.5%

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Key Metric Definitions / Calculations

• Aggregated revenue
• Aggregated revenue = statutory revenue + share of revenue from associates –

procurement services revenue at nil margin

• Net working capital / revenue1
• Net working capital = trade & other receivables + WIP2 – trade & other payables – current

provisions3

• DSO
• DSO = WIP2 + debtors4 / revenue1 * 365
• Notes:
• 1 Revenue = statutory “services” revenue (i.e. total statutory revenue excluding interest

income, dividends, other income and share of profit of associates)

• 2 WIP = inventories + unbilled receivables
• 3 Current provisions = current provisions + income tax payable – deferred revenue
• 4 Debtors = trade receivables – allowance for doubtful debts
• Balance sheet values are closing balances and include assets held for sale

43

Sector Outlooks

• Hydrocarbons

Our expectation for Hydrocarbons in 2010 is a result similar to that reported in 2009, with expected growth in the Middle East and United States, offset by the anticipated foreign exchange impact of a higher Australian dollar, a decline in earnings in Australia due to the completion of a number of major gas projects, and a rebuilding of demand in the Canadian market.

• Power

Key drivers in the Power sector in 2010 will be continued good performance in our US operations, our regional development in Europe, nuclear and renewable; such as solar and wind. National and international carbon emissions policies have the potential, when implemented, to further encourage investment in the power market.

• Notwithstanding the likely negative anticipated foreign exchange impact of a higher Australian dollar we would expect growth in

earnings in the Power sector in 2010.

• Minerals and Metals

As confidence continues to grow in the sector on the back of some recovery and stabilization in commodity prices, there is renewed interest and activity in the progression of a number of previously deferred or stalled projects. While the rate of new project development is likely to be subdued in 2010, our early-phase study and feasibility work should ensure we are well positioned when these projects recommence. We are also encouraged by the continuing spend in the asset services sector. However, at this stage we expect earnings in this sector for 2010 to be materially below those reported for 2009.

• Infrastructure and Environment

The outlook for the Infrastructure & Environment sector is improving in 2010. Solid demand in water and wastewater management, desalination, remediation services and carbon advisory services, in conjunction with the nascent recovery in major resource sector projects should result in increased demand for our services. We currently expect an improvement in earnings in this segment in 2010.