Full Year Results 2010 1 Overview Continuation of challenging - - PowerPoint PPT Presentation

1

Full Year Results 2010

Overview

• Continuation of challenging global

economic environment economic environment

• Full year result in line with guidance
• Mega projects and long term

g p j g contracts secured

• Well positioned for growth in 2011
• Increased headcount in 2011
• Increased role in developing world

today and in the future

ExxonMobil – Maintain Integrity Program, Nigeria

Financial Highlights

Net profit after tax

$291.1M Down 25.5%

Aggregated revenue

$4,967.1M Down 20.1%

EBITDA

$519.3M Down 25.1%

Operating cash flow

$279.6M E i h 118 5 / D 26 4%

Earning per share

118.5c/s Down 26.4%

Final dividend

40.0 c/s

(FX impact $41 million)

Snapshot

Disappointed by the level of downturn

in some markets

United States hydrocarbons and power

were impacted

Canadian oil sands market in 2nd half

not as strong as anticipated

Expanded operations in the developing Expanded operations in the developing

world

• CNEC acquisition strategic position
• Joint ventures in developing world

performed well

• Increased share in China joint venture
• Increased share in China joint venture

(approximately 80%)

Woodside - LNG Modularised Train

Snapshot

Significant new mega-projects

• Currently executing 57 mega-projects,

Currently executing 57 mega projects, from study to execution

• Systems and workshare proven
• Significant utilisation of remote and harsh

(desert, arctic) climate experience

Secured 48 long-term Improve

• g

p contracts in 12 countries

• Increased demand in all sectors
• Significant investment in systems to

support these contracts

Suncor - Firebag Phase III project, Canada

Global Reach, Local Operations

3 million workshare hours completed

30,000 personnel 40 countries

Safety Performance

Our safety performance was in line with

previous year y

Increased EPCM delivery in 2010 saw

field execution hours of 163.7 million, a significant increase a significant increase

Improved safety performance by

contractors on projects

Launched Serious about Zero Program

(SAZ) – HSE Observation and Conversation Training Program Conversation Training Program

Development and implementation of the

OneWay™ integrity management f k h d ll framework has progressed well

Mega-Projects & Material Awards

Canada

• EPCOR Keephills Unit 3
• Shell Albian Sands
• Total’s Joslyn North Mine oil sands plant

Spectra Energy’s Ft Nelson project Saudi Arabia

• Ma’aden Phosphate plant
• Ma’aden Alumina refinery and mine

UK ConocoPhillips Jasmine project Australia

• Woodside Pluto LNG
• ExxonMobil PNG PLNG
• Karara Mining iron ore project

Singapore

• Spectra Energy s Ft Nelson project
• Suncor Energy’s Firebag 3 construction services

USA

• Santee Cooper Units 3&4

Brazil

• ConocoPhillips Jasmine project

United Arab Emirates

• GASCO/Adgas Integrated Gas Development

Nigeria

• ExxonMobil Maintain Integrity Program

Singapore

• ExxonMobil Single Parallel Train

Vietnam

• Chevron Chuandongbei offshore

Brazil

• Vale S11 D Mine

ExxonMobil Maintain Integrity Program South Africa

• Transnet Multi Product Pipeline

Long Term Contracts

• WorleyParsons performance underpinned

by extensive long-term contracting base y g g

• Five global/ multi-regional

agreements

• 28 new contracts awarded
• 20 contracts renewed
• 200 contracts serviced on this basis
• Selection based upon:
• Recognition of our high & sustained

capability

• Proven safety performance
• Proven safety performance
• Proven contract performance

New Global or Multi Regional Agreements New Global or Multi Regional Agreements

Emergence of Developing World

The developing (Non OECD) world:

F ll IOC

Control of Global Oil and Gas Reserves 2009

• Own the majority of the oil and gas

reserves I ti i d t k t

New Russian Companies 6% Full IOC access 6%

+ Investing in downstream markets + The greatest opportunities in the minerals and metals market

NOCs (equity access) 10%

+ Have rapidly growing power consumption, nuclear a valid option + Have the greatest need for

NOCs (limited equity access ) 78%

+ Have the greatest need for infrastructure + Have increasing access to investment capital

78%

IOC I d d t Oil ( d ) C i

capital

Source: Offshore Technology

IOC - Independent Oil (and gas) Companies NOC – National Oil (and gas) Companies

WorleyParsons Response

Developing a significant footprint in Latin

America

• Brazil, Chile, Peru, Argentina, Colombia

Developing a significant footprint in the

F S i t U i Former Soviet Union

• Kazakhstan, Russia, Bulgaria

Developing a significant footprint in Africa Developing a significant footprint in Africa

• South Africa, Nigeria, Angola, Libya, Egypt

Largest foreign EPCM contractor in China 20+ years experience in developing local

capability

• Brunei Malaysia Thailand Oman Nigeria
• Brunei, Malaysia, Thailand, Oman, Nigeria,

China, Kazakhstan, Brazil

Global systems to support local capability to

execute work in country

12

Financial Results David Housego

Financial Profile

$m FY06 FY07 FY08 FY09 FY10 vs.FY09 Aggregated Revenue 2,459.1 3,525.4 4,882.4 6,219.4 4,967.1 (20.1%) EBITDA 219.9 353.4 587.0 693.2 519.3 (25.1%) EBITDA Margin 8.9% 10.0% 12.0% 11.1% 10.5% (0.6%) Net profit 139.1 224.8 343.9 390.5 291.1 (25.5%) Net profit margin 5.7% 6.4% 7.0% 6.3% 5.9% (0.4%) 5 Year CAGR 66.2% 67.7% 66.3% 34.4% Normalised EPS (cps) 1 66.9 105.4 153.4 172.8 128.2 (25.8%) ROE 32.1% 31.3% 24.5% 25.4% 16.7% (8.7%) Cash flow from operating activities 115.7 195.9 198.8 546.4 279.6 (48.8%)

1 Before amortization of intangibles including tax effect of amortization expense

Before amortization of intangibles including tax effect of amortization expense

Financial Profile

10.7 9.7 EBIT Margin % 4,882.4 6,219.4 4,967.1 Aggregated Revenue $m 8.1 9.1 8.6 2,354.1 3,256.1 2,548.1 2,459.1 3,525.4 4,882.4 , 2006 2007 2008 2009 2010 1,134.9 1,455.8 2006 2007 2008 2009 2010

• Margin improved on 1H
• Earnings weighted to 2nd half per guidance

343.9 390.5 291 1 Net profit $m

g g p g

• Effective tax rate of 23% (2009: 28.6%)
• US & Canada
• Associates

152.7 197.5 138.0 139.1 224.8 291.1

• FX translation impact $41m
• Dividend payout ratio 63.6%

61.8 94.5 2006 2007 2008 2009 2010 2006 2007 2008 2009 2010

Change in Net Profit g FY10 v FY09

390.5 (117.9) (23 5) 21 0 (10 6) 71.5 (3.5) (40.9) 291.1 (23.5) (0.8) 21.0 (10.6) 5.3 $m FY09 NPAT Hydrocarbons Power Minerals & Metals Infrastructure & Environment Corporate

• verhead

Net Interest Income Tax Minority Interest FX Impact FY10 NPAT

Hydrocarbons y

• EBIT margin maintained
• EBIT margin maintained
• AME and ANZ solid result
• North America impacted by downstream

hydrocarbons market f /

• Europe and Africa delays on major/mega

projects

• Canada 2H result improved again on 1H (not

at rate expected)

Power

• US performance improved in 2H
• Europe & Africa weaker in 2H but overall

positive year on year

• ANZ / AME / Canada steady

Minerals & Metals

• ANZ and AME contribute 86% of segment
• ANZ and AME contribute 86% of segment

revenue

• Improvement in 2H margin and EBIT v 1H
• Year on year performance reasonable in

volatile market

Infrastructure & Environment

• Overall strong performance
• Overall strong performance
• Improved EBIT margin
• ANZ result benefited from 6 months of Evans

& Peck contribution; remains biggest market

Cash Flow

$m FY07 FY08 FY09 FY10 EBITDA 353.4 587.0 693.2 519.3 Interest and tax paid (65.9) (137.4) (215.8) (185.6) Working capital / other (91.6) (250.8) 69.0 (54.1) Net cash inflow from operating activities 195.9 198.8 546.4 279.6 Net cash outflow from investing activities (905.7) (325.6) (133.4) (144.8) Net cash (outflow) / inflow from financing activities 753.0 101.4 (316.5) (175.4) Key metrics Cash from operations / net profit (%) 87.2% 57.8% 139.9% 96.0% DSO - countback method (days) 62.6 65.0

Liquidity & Gearing y g

Key Metrics Jun-08 Jun-09 Jun-10 Liquidity Summary $m Jun-08 Jun-09 Jun-10 Gearing ratio 31.4% 25.5% 25.8% Loan & OD facilities 1,094.0 1,376.1 1,286.1 Facility utilization 67.3% 54.2% 60.8% Less: facilities utilized (735.9) (745.2) (781.5) Average cost of debt 6.1% 5.5% 5.2% Available facilities 358.1 630.9 504.6 Average maturity (years) 4.6 4.1 3.8 Plus: cash 86.0 178.3 140.5 Interest cover 11 7x 14 1x 13 3x Total liquidity 444 1 809 2 645 1 Interest cover 11.7x 14.1x 13.3x Total liquidity 444.1 809.2 645.1 Net Debt/EBITDA 1.1x 0.8x 1.2x Bonding facility utilization 77 3% 52 9% 50 1% Bonding facilities 221 9 452 5 669 1

• Significant financial capacity

H d L d OD b di f iliti

Bonding facility utilization 77.3% 52.9% 50.1% Bonding facilities 221.9 452.5 669.1

• Headroom on Loan and OD bonding facilities
• Gearing ratio maintained at low end of target range of 25-35%
• 2011 facility renewals $188.7m

Hydrocarbons

Revenue $3,425.4M

• 27.7%

Key project awards include:

• Total - Joslyn Creek North project, Canada

EBIT $375.6M

• 29.4%

Margin 11%

• 0.2%
• ConocoPhillips - Jasmine Development, North

Sea

• ExxonMobil - Sakhalin 1 Arkutun Dagi offshore

ExxonMobil Sakhalin 1 Arkutun Dagi offshore platform contract extension, Russia

• MEG Energy – Christina Lake phase 2B SAGD

project, Canada p j ,

• Spectra Energy – Ft. Nelson North processing

plant, Canada

• SABIC

Jubail Olefins Complex Saudi Arabia

• SABIC - Jubail Olefins Complex, Saudi Arabia
• PDO - Amal Steam Surface facilities, Oman
• PetroVietnam - Bien Dong 1, Vietnam
• Esso - Longford Gas Conditioning, Australia

Hydrocarbons

Key Improve contract awards include:

• BP - Global agreement EPMS services

g Onshore facilities

• Chevron - Global terminals alliance
• Woodside - Offshore gas and onshore LNG

Woodside Offshore gas and onshore LNG, Australia

• ExxonMobil - LNG project services contract,

PNG PNG

• ConocoPhillips - Engineering services

contract, Indonesia

• Syncrude

CoSyn alliance contract extension

• Syncrude - CoSyn alliance contract extension,

Canada

• Imperial Oil - Upstream alliance contract

extension Canada extension, Canada

• Total - Engineering services agreement,

Nigeria

ExxonMobil Sakhalin 1 Arkutun-Dagi offshore platform, Russia

BP Gulf of Mexico

BP incident anticipated to create a

f h i ff h itti range of changes in offshore permitting in all United States waters

Potential for higher activity in Brazil,

g y , West Africa and Asia

Scope of services for our BP Gulf of

Mexico contracts unaffected Mexico contracts unaffected

WorleyParsons and INTECSEA made

a significant contribution to the solution BP – Gulf of Mexico assets

Hydrocarbons

SEGMENT OUTLOOK:

Recovery in the upstream segment both Recovery in the upstream segment, both

• nshore and offshore, while the

downstream market remains challenging with some opportunities expected in developing markets

Emergence of unconventional gas

provides a potential new market p p

• pportunity in several regions - United

States, Canada, China, Oman and Australia in particular

Growing market for the expansion of

WorleyParsons Improve services on a global basis

Woodside LNG Train – Main Cryogenic Heat Exchanger Lift

Power

Continuation of trend in Canada, Western

Europe, United States and Australia toward

Revenue $509.5M

• 7.2%

less energy demand

Developing world demand

EBIT $39.3M

• 41.1%

Margin 7.7%

• 4.5%

Key project awards include:

• ADGAS - Additional power generation facility at

Das Island, Abu Dhabi Das Island, Abu Dhabi

• PetroVietnam - Thai binh 2 coal plant, Vietnam
• Ferreira Gomes - Hydro power plant, Brazil
• American Electric Power - Mountaineer CO2

capture project, United States T P T b ti d tiliti

• Tuas Power - Tembusu cogeneration and utilities

plant, Singapore

Conventional Power

Key Improve contract awards include:

• Tennessee Valley Authority

Combined fossil

• Tennessee Valley Authority - Combined fossil

and nuclear energy contract, United States

• Arizona Public Service - Fleet wide support

ser ices contract United States services contract, United States

• Pacific Gas & Electric - Diablo Canyon

nuclear engineering services, United States

• Loy Yang A - Power station and mine five

year asset management and maintenance services contract, Australia

• Saudi Electric Commission - Consultancy

services agreement

27

Liddell - Power Station, Australia

Nuclear Power

High level of nuclear activity in 2010

• Program management for new build

units - Bulgaria, Armenia, Jordan and Egypt

• Operating plant support services -

Canada, United States, Slovenia, Sweden and Bulgaria

• Feasibility studies in - Slovenia,

Slovakia, Czech Republic and Russia

Crystal River Nuclear Power Plant, United States

Power

SEGMENT OUTLOOK:

• Improved operational performance in the

United States

• Regional development in Eastern Europe and
• Regional development in Eastern Europe and

the Former Soviet Union, Latin America and the Middle East

• Expansion of nuclear services across our
• p

markets

• Further development of Improve services

Peach Bottom - Nuclear Power Plant, USA

Minerals & Metals

Revenue $562.4M

• 3.6%

Key project awards include:

• Vale - S11D project Brazil

EBIT $77.0M

• 6.8%

Margin 13.7%

• 0.5%

Vale S11D project, Brazil

• BHP Billiton - Cerro Motoso FC01 rebuild

EPCM, Colombia Ma’aden Alcoa’s joint ba ite mine and

• Ma’aden - Alcoa’s joint bauxite mine and

alumina refinery, Saudi Arabia

• FERTIL - Fertil 2 Ammonia / Urea complex,

UAE UAE

• Sasol Mining - Shondoni project, South

Africa

• Orica - Nanning detonator plant, China
• Karara Mining - Iron ore project, Australia

Minerals & Metals

Key Improve contract awards include:

• Rio Tinto – long-term framework agreement

Rio Tinto long term framework agreement

• Dupont - Global EPCM services agreement
• Alcoa refineries in Bunbury and Wagerup -

Ser ices agreement A stralia Services agreement, Australia

• US Steel - Capital projects alliance, United

States

• One Steel – Whyalla engineering services

agreement, Australia

• Vale Coal - Engineering services agreement,

Australia

AAL - Aughinish, Ireland

Minerals & Metals

SEGMENT OUTLOOK:

Conditions continue to improve Conditions continue to improve

• Early signs of recovery in the non-Chinese

demand for commodities

Trend towards global services

agreements with major tier 1 customers

Strengthening of activities in Latin Strengthening of activities in Latin

America and Africa

Investing in deeper engagement with tier

1 customers Rio Tinto Gove Refinery Australia Rio Tinto, Gove Refinery, Australia

Infrastructure & Environment

Key markets in I&E

Integrated pit-to-port market in mining

Revenue $469.8M +34.2%

Integrated pit to port market in mining

• Oakajee Port and Rail for bulk commodity

supply chain, Australia

I f

t t d tiliti f j

EBIT $47.7M +57.9% Margin 10.2% +1.6%

Infrastructure and utilities for major

resource projects

• Saudi Ports Authority - new port, Saudi Arabia
• New Doha Port, Qatar
• Ivanhoe Mines - Oyo Tolgoi copper / gold

mine infrastructure, Mongolia , g

Infrastructure & Environment

Management of water solutions for

resource developments

• Woodside – wave and hydrodynamic modeling, for

site selection

• Support for water management for coal seam

methane market , Australia

• Water recovery & efficiency strategies for the oil

sands market, Canada Environmental services

• Origin - coal seam methane development, Australia
• ExxonMobil - oil field development West Qurna1

p Field, Iraq

The ability to provide services with a strong EcoNomicsTM component continues to be an p important differentiator Alcoa Train Australia Alcoa Train, Australia

Infrastructure & Environment

SEGMENT OUTLOOK:

C

ti d d l t ll

Continued development across all

key sectors and regions

Emphasis on growth of pit-to-port

capability throughout Asia, Africa and Latin America

Focus on environmental capability

p y assisting major developments

Increased importance on remediation

and decommissioning of spent and decommissioning of spent facilities

Prospects remain positive for 2011

Saudi Ports Authority – Saudi Arabia Saudi Ports Authority Saudi Arabia

Summary 2010

• 2010 demonstrated importance of

mega projects and long-term g j g contracts to our performance

• Markets remain competitive, United

States downstream remains States downstream remains challenging

• Operations stabilised through 2nd half,

headcount increasing

• Diversification continuing
• Hydrocarbons Non Hydrocarbons
• Developed world Developing

Petro Canada, Edmonton refinery

Group Outlook

Commenting on the outlook for the WorleyParsons Group Mr John Grill said: Commenting on the outlook for the WorleyParsons Group, Mr John Grill said:

“We expect the markets for our services to show improvement through 2011, and on this b i t t hi i d i i 2011 basis we expect to achieve increased earnings in 2011. “The company continues to evaluate opportunities for new business growth that will add to its existing capabilities and provide value for our shareholders. “The company is confident that its medium-term and long-term prospects remain positive based on its competitive position, its diversified operations and strong financial capacity.”

August 2010

38

Full Year Results 2010

Contractual Acronyms

D4 – Deactivation, Decontamination, Decommissioning, Demolition EDS – Engineering and Design Services E&P – Engineering and Procurement EPC E i i P t d C t ti EPC – Engineering, Procurement and Construction EPCM – Engineering, Procurement and Construction Management ESA – Engineering Services Agreement ESA Engineering Services Agreement ESP – Engineering Services Provider FEED – Front End Engineering and Design FEL – Front End Loading GSA – General Services Agreement OE O E i OE – Owners Engineer PCM – Procurement and Construction Management PMC – Project Management Consultancy PMC Project Management Consultancy

FX Translation Impact

125 0 130.0

Revenue by region* % Movement in major currencies

110 0 115.0 120.0 125.0 95 0 100.0 105.0 110.0

* Per segment note

90.0 95.0 Jul-09 Jul-09 Aug-09 Sep-09 Oct-09 Nov-09 Dec-09 Jan-10 Feb-10 Mar-10 Apr-10 May-10 Jun-10 Jul-10

Per segment note

USD GBP CAD

Currency Average exchange rate FY09 FY10 FY10 ∆ USD 1 5 AUD:USD 74 9 88 1 13 2 Annualised A$m NPAT translation impact of 1c ∆ USD 1.5 AUD:USD 74.9 88.1 13.2 GBP 0.5 AUD:GBP 46.3 55.8 9.5 CAD 0.9 AUD:CAD 87.1 93.1 6.0

Other

DIVIDEND HISTORY AMORTISATION

A ti ti P fil ($ AUD)

70 0 80.0 90.0

Amortisation Profile ($m AUD)

50.0 60.0 70.0 20.0 30.0 40.0

• 40 cps final dividend declared
• Full year earnings payout ratio of 63 6%

0.0 10.0 FY10 FY11 FY12 FY13 FY14

Acquired intangibles Other intangibles

• Full year earnings payout ratio of 63.6%

q g g

• Based on asset balances as at June 2010.
• FY11 peak due to full year impact of FY10

i iti h d ll t f l b l ft acquisitions; phased rollout of global software