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

Full Year Results 2010 1

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 � Earning per share E i h 118 5 / 118.5c/s D Down 26.4% 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 framework has progressed well k h d ll

Mega-Projects & Material Awards Canada Saudi Arabia Australia EPCOR Keephills Unit 3 Ma’aden Phosphate plant Woodside Pluto LNG • • • Shell Albian Sands Ma’aden Alumina refinery and mine ExxonMobil PNG PLNG • • • Total’s Joslyn North Mine oil sands plant UK Karara Mining iron ore project • • Spectra Energy s Ft Nelson project Spectra Energy’s Ft Nelson project ConocoPhillips Jasmine project ConocoPhillips Jasmine project Singapore Singapore • • Suncor Energy’s Firebag 3 construction services United Arab Emirates ExxonMobil Single Parallel Train • • USA GASCO/Adgas Integrated Gas Development Vietnam • Santee Cooper Units 3&4 Nigeria Chevron Chuandongbei offshore • • Brazil Brazil ExxonMobil Maintain Integrity Program ExxonMobil Maintain Integrity Program • Vale S11 D Mine 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 Control of Global Oil and Gas Reserves 2009 � The developing (Non OECD) world: Full IOC access F ll IOC New Russian • Own the majority of the oil and gas 6% Companies reserves 6% + Investing in downstream markets I ti i d t k t NOCs (equity access) + The greatest opportunities in the 10% minerals and metals market + Have rapidly growing power NOCs (limited consumption, nuclear a valid option equity access ) 78% 78% + Have the greatest need for + Have the greatest need for infrastructure + Have increasing access to investment capital capital IOC IOC - Independent Oil (and gas) Companies I d d t Oil ( d ) C i NOC – National Oil (and gas) Companies Source: Offshore Technology

WorleyParsons Response � Developing a significant footprint in Latin America • Brazil, Chile, Peru, Argentina, Colombia � Developing a significant footprint in the F Former Soviet Union S i t U i • 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

Financial Results David Housego 12

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 EBIT Margin % Aggregated Revenue $m 6,219.4 10.7 9.7 4,967.1 , 4,882.4 4,882.4 9.1 8.6 8.1 3,525.4 3,256.1 2,548.1 2,459.1 2,354.1 1,455.8 1,134.9 2006 2007 2008 2009 2010 2006 2007 2008 2009 2010 Net profit $m 390.5 Margin improved on 1H � 343.9 Earnings weighted to 2 nd half per guidance g g p g � 291 1 291.1 Effective tax rate of 23% (2009: 28.6%) � 224.8 - US & Canada 197.5 - Associates 152.7 139.1 138.0 FX translation impact $41m � 94.5 61.8 Dividend payout ratio 63.6% � 2006 2006 2007 2007 2008 2008 2009 2009 2010 2010

Change in Net Profit g FY10 v FY09 (117.9) 390.5 (3.5) 71.5 (40.9) 291.1 (23 5) (23.5) (10.6) (10 6) 21 0 21.0 5.3 (0.8) $m FY09 NPAT Hydrocarbons Power Minerals & Infrastructure & Corporate Net Interest Income Tax Minority Interest FX Impact FY10 NPAT Metals Environment overhead

Hydrocarbons y EBIT margin maintained EBIT margin maintained � � AME and ANZ solid result � North America impacted by downstream � hydrocarbons market Europe and Africa delays on major/mega f / � 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 Interest cover 11.7x 11 7x 14.1x 14 1x 13 3x 13.3x Total liquidity Total liquidity 444 1 444.1 809 2 809.2 645 1 645.1 Net Debt/EBITDA 1.1x 0.8x 1.2x Bonding facility utilization Bonding facility utilization 77 3% 77.3% 52 9% 52.9% 50 1% 50.1% Bonding facilities Bonding facilities 221 9 221.9 452 5 452.5 669.1 669 1 Significant financial capacity � H Headroom on Loan and OD bonding facilities d L d OD b di f iliti � Gearing ratio maintained at low end of target range of 25-35% � 2011 facility renewals $188.7m �