WorleyParsons Delivering What we promise Sydney Investor Day
Agenda Sydney Investor Day Item Time Housekeeping and OneWay Moment 1:15 to 1:20 Welcome address 1:20 to 1:30 Sector Strategies 1:30 to 1:45 Major Projects 1:45 to 2:00 Services 2:00 to 2:15 Improve 2:15 to 2:30 Panel Discussion…
OneWay moment Evacuation Procedures 3
Hydrocarbons Strategy Delivering What we promise Andy Cole 4
Our Corporate Strategy Horizon 2 Growth from the core Horizon 1 Getting better at our core Business development business directions Enhancing & Strategic step-outs through Delivering what we Leveraging our M&A or organic growth…
What we are expecting in FY15 By forecast GM 6
Not all subsectors are created equal 7
The rise and rise of LNG Australian LNG moving into operational and maintenance support phase (Improve) North American LNG - with a focus on Canadas West coast East Africa LNG 8
The UCOG Value Chain 9
MM&C Strategy Delivering What we promise Mark Southey 10
The Mining Value Chain Full asset life engagement 11
Mining and Mine Development Leverage our mining expertise and capability globally 12
Fertilizers - sustained global growth Grow position in Potash, Phosphates & Nitrates Positioning for the long term in fertilizers 13 13
Customer focus on asset optimisation Driving productivity improvement - Bauxite & Alumina Capturing value through our world leading expertise 14 14
Chemicals growth Differentiated offering leveraging China capability Three key focus geographies: US, Middle East and Asia Provide global project solutions through International Chemicals Centre in Beijing Intensify focus in US…
Infrastructure Strategy Delivering What we promise Gerard Dyson 16
Infrastructure Infrastructure Customers 1. Infrastructure customers 1. Shifting to private funding in the developed world 2. Governments still investing and owning in the developing world 3. Population driven utility and transport…
Infrastructure Resource Customers 1. Hydrocarbons customers 1. Pipelines, LNG and liquids terminals and unconventionals 2. Minerals & Metals customers 1. Brownfields optimisation 3. All Customers 1. Changing environmental and…
Infrastructure Economic Infrastructure focus 1. Utilities 1. Power 2. Water 2. Transport 1. Ports 2. Rail Focussing, retaining and deepening technical capability Broad synergies for targeted customers Organic growth,…
Infrastructure Project enablers 1. Environment 1. ESHIA 2. Compliance 3. Sustainable and compliant project delivery 4. Operations and restoration 2. Geosciences 1. Data management 2. Geotechnical, geophysical and geological 20
Major Projects Delivering What we promise Chris Parker 21
Major Projects Our business is delivering large complex projects Consistent application of tools, systems & procedures Experienced management teams Risk mitigation 22
Location BULL ARM FABRICATION SITE ST. JOHNS FLEMISH CAP THE SAME HIBERNIA LATITUDE AS SEATTLE WHITE ROSE HEBRON GRAND TERRA NOVA BANKS 23
Facility Concept 24
Platform Overview DRILLING DERRICK GRAVEL PACK FACILITIES FLARE BOOM POWER GENERATORS DRILLING SUPPORT HELIDECK MODULE LIVING QUARTERS GAS COMPRESSORS SEPARATION / PROCESS EQUIPMENT LIFEBOATS WELLBAY…
Execution Overview 26
Major Projects Global projects 16+ being executed in Major Projects multiple locations contracts Spanning our full project/sector capability 12% Include all phases FY2014 of project delivery aggregated revenue 27
Major Projects Highlights Alaska Gas Spectra BC Gas ExxonMobil Pipeline Pipeline Hebron HHI/Chevron Rosebank FPSO TengizChevroil Phase 4 (FGP) ExxonMobil Point Celanese Thompson Project Trans Fairway Anatolian TransCanada…
Horizon 1 Major Projects Getting better at what we do Business line structure allows Global consistency and best practices The right projects and commercial terms Experienced project teams Recruit and develop talent for global…
Horizon 2 Major Projects Growth from the core Growing with our customers Major Project opportunities identified for award in FY15 1B revenue Onshore developments Floating Major Pipelines LNG Base metals Chemicals 30 30
Major Projects - Hydrocarbons Horizon 2 - Growth from the core Major upstream developments Onshore Alaska & Western Canada LNG Offshore East Africa Deep water Arctic Geographic expansion Mexico East Africa 31
LNG Global LNG Supply & Demand Scenarios 1 Proposed LNG Capacity 2 (682 million tons May 2014) High demand Speculative Base demand Low demand NW Australia Possible Construction Canada Producing 400 MTPA new LNG…
Deepwater CAPEX Subsea Tree Capex (USM) by Subsea Tree Capex (%) Water Depth (meters) by Water Depth (meters) 2014-2018 Deepwater installation Capex US115 billion, doubling from 2009-2013 Deepwater trees account for 84% of Capex…
Potential in Arctic reserves Image source: Infield Systems, Global Offshore Oil and Gas Outlook February 2013 174 discovered fields in Arctic, 83% of discovered resources are Russian Estimated spend Alaska US30-50B in next decade…
Major Projects MM&C Horizon 2 - Growth from the core Minerals and Metals improving outlook for study activity Chemicals investment in US driven by low cost shale gas Global fertilizer opportunities driven by increased need for…
Chemicals Incremental US Chemical Industry CAPEX New Chemical Capital Investment from Shale Gas by Asset Type Piping & Valves Building Construction Construction Instrumentation & Electrical Major Process Equipment…
Global Major Projects Outlook Key projects with significant procurement spend winding down in FY2015 FY2015 margin improvement focus Creation of Major Projects business line Further developing our Global Delivery Centers Training…
Services Delivering What we promise Ian Wilkinson 38
Services Our purpose is to provide services to local customers utilising the full range of capability of the WorleyParsons organization, and to nurture and develop the broad technical knowledge and capability of our people. We…
Services Europe North America Middle East North Africa Australia Pacific Asia China 5 Sub Saharan Africa Regions Latin America 2 Global Businesses Energy Resourcing 40
Broad and deep technical capability UCOG Floating Systems & Subsea Heavy Oil LNG / FLNG Pipeline Systems Offshore Gas Processing Pipeline Systems Water Aluminium Water Offshore Environment Renewables (Hydro) Environment Ports…
Services Regions and Global Businesses Major Projects Services Improve Europe Sub Saharan Australia Pacific Middle East Latin America North America INTECSEA ERG Africa Asia China North Africa Europe Middle East North 4%…
Europe Middle East North Africa Major Projects Services Improve Europe Sub Saharan Australia Pacific Middle East Latin America North America INTECSEA ERG Africa Asia China North Africa United Kingdom Norway Bulgaria…
Europe Middle East North Africa Key capabilities Upstream and downstream hydrocarbons Nuclear power Strong Hydrocarbons front end capability in UK Ports Renewable power Strong history in Middle East PMC Long term contracts…
Sub-Saharan Africa Major Projects Services Improve Europe Sub Saharan Australia Pacific Middle East Latin America North America INTECSEA ERG Africa Asia China North Africa South Africa Nigeria Angola Mozambique…
Sub-Saharan Africa Key capabilities Upstream hydrocarbons (market leader in Nigeria) Pipelines Mining (particularly deep shaft underground) Minerals and metals (particularly precious metals) Power (particularly renewables)…
Latin America Major Projects Services Improve Europe Sub Saharan Australia Pacific Middle East Latin America North America INTECSEA ERG Africa Asia China North Africa Chile Brazil Colombia Mexico Peru Ecuador 1400…
Latin America Key capabilities Minerals and metals (particularly base metals) Hydropower Infrastructure Upstream hydrocarbons Growth opportunities Challenged markets Mexico (hydrocarbons) Minerals and metals Ecuador, Columbia,…
North America Major Projects Services Improve Europe Sub Saharan Australia Pacific Middle East Latin America North America INTECSEA ERG Africa Asia China North Africa North America North America North America North America…
North America Key capabilities Hydrocarbons upstream and downstream Minerals and metals Chemicals Power (fossil and nuclear) Enabling infrastructure Growth opportunities Challenged markets UCOG Minerals and metals Gas…
Australia Pacific Asia China Major Projects Services Improve Europe Sub Saharan Australia Pacific Middle East Latin America North America INTECSEA ERG Africa Asia China North Africa Australia East Australia West New Zealand…
Australia Pacific Asia China Key capabilities Upstream and downstream hydrocarbons Minerals and metals (particularly iron ore) Chemicals Power Enabling infrastructure Growth opportunities Challenged markets Chemicals Minerals…
INTECSEA Major Projects Services Improve Europe Sub Saharan Australia Pacific Middle East Latin America North America INTECSEA ERG Africa Asia China North Africa Houston Woking Delft Perth / Melb Kuala Lumpur Singapore…
Concept Selection and Specialist Technical Capability for: Subsea systems Flow assurance Marine pipelines Asset integrity Floating systems Marine terminals Marine riser systems Arctic developments 54 54
30+ Years of innovation and groundbreaking achievements Pipelines Deepest S-lay pipeline Deepest J-lay pipeline Longest offshore pipeline First offshore arctic oil pipeline First arctic pipeline leak detection system Risers…
INTECSEA Growth opportunities Offshore Full Field Development (concept selection) Mexico Gulf of Mexico with IOCs and Pemex East Africa offshore Mozambique Brazil India Deepwater off the east coast Deepwater brownfield…
Energy Resources Group Major Projects Services Improve Europe Sub Saharan Australia Pacific Middle East Latin America North America INTECSEA ERG Africa Asia China North Africa Perth Brisbane London Singapore Houston…
Energy Resourcing Group Overview Vertically integrated recruitment and contracting services company specialising in the energy sector, primarily hydrocarbons related One of the largest energy specialist engineering staffing…
Services Technical Recruitment - Permanent - Local & International Technical Recruitment - Contract Local & /International Contractor/Payroll management & mobility services - Local & International Sub-Vendor Management Services…
Major Customers 60
Horizon 1 Services Getting better at what we do Business Line structure allows local business to focus on core activities Servicing local customers Nurturing technical experts Making it easier to aggregate capability Simplifying the…
Services- Hydrocarbons Horizon 2 - Growth from the core UNCONVENTIONAL OIL & GAS: Contrado JV with MWH with a focus on North America Queensland, China, East Africa FIELD DEVELOPMENT PLANNING (FDP) Strengthen front-end offering combining…
Services MM&C Horizon 2 - Growth from the core UNDERGROUND MINE DEVELOPMENT Leverage deep expertise in South Africa to increase market share CHEMICALS RAPID GROWTH STRATEGY Accelerate growth leveraging China capability and cost base.…
Services Infrastructure Horizon 2 - Growth from the core EXPANDED SELECT Build and concentrate enabling capabilities to support early entry to major development markets TARGETED NON-RESOURCE eg Ports, Nuclear, Renewables WATER Take unique…
Improve Delivering What we promise Randy Karren 65
Improve Definition The provision of value-added services via a long-term contract to support our customers business or operation. The services include: Brownfield project delivery Customer-defined portfolio delivery (Brownfield and…
Improve business line Why Support customers to attain capital effectiveness and capital efficiency for their assets Aligned with our customers organizational structures Cost-effective delivery model Scope Nominated strategic…
Improve/Services business interface Enduring customer relationships in both Improve and Services business line We nominated certain relationships into Improve business line to support business growth Tier one customers whose…
Improve Horizon 1 Existing relationship focus areas Enhanced HSE performance Operational excellence Predictable project outcomes Cost efficiency & effectiveness Customer service focus Global best practices 70
Improve Horizon 1 Long-term relationship strategies Retain current base Simplify and secure our workflow 1.7 B FY14 Longer-term commitments Shell ExxonMobil Strategic BP partner ConocoPhillips Return on Multiple regional…
Improve Horizon 2 Strategies / focus areas Full service project delivery Asset management and business improvement Petrochem and water Operations support Turnaround management New customers / new geographies 72
Improve Horizon 2 Opportunities Strong pipeline of opportunities globally Currently tracking opportunities amounting to over 3.4B in revenue 65+ potential Improve relationships identified Opportunities span across Hydrocarbons and…
Improve Hydrocarbons Improve business strategies Growth Services Full service EPC/EPCM delivery Asset Management Growth Geographies USA South Asia Canada Gulf of Mexico Middle East Growth Subsectors LNG Petrochemical Heavy…
Improve MM&C Improve business strategies Growth Services Asset optimization Petrochemical asset development and support Growth Geographies Northern Canada USA Gulf Coast Chile Growth Subsectors Alumina Chemicals Base metals…
Improve Infrastructure Improve business strategies Growth Services Water management Advisory Regulatory support Growth Geographies Alberta oil sands USA Gulf Coast Asia Canada West Coast SSA Growth Subsectors Water…
Improve business line Alliances and long-term relationships provide a deep understanding of customer drivers 150+ Improve draws on the experience and Improve capabilities of our global resources Contracts Knowledge accumulated…
Improve industry trends Customers are seeking Enhanced HSE performance Better alignment to customer business drivers Long-term commitment and relationships (Tier 1s) Cost, quality and schedule certainty Asset integrity and assurance…
Panel Discussion Delivering What we promise 79
New Ventures Group Delivering What we promise Greg Clinnick 80
New Ventures Group Formed mid 2013 Provides a structured and disciplined approach to identifying, incubating and implementing new businesses Small senior team with access to internal and external specialist resources Oversees our…
Horizon 3 Our new ventures - Digital Enterprise and Advisian 82
Advisian Our Advisory business A highly valued global advisory business Combines strategic and business thinking and domain knowledge with the broad and deep technical and delivery capabilities within WorleyParsons to solve our…
The journey to Advisian WorleyParsons acquired Evans & Peck in December 2009. Largely an Australian based public sector infrastructure focused advisory business Deloitte Alliance in Canada commenced in late 2012, then in Australia…
Advisian High calibre leadership Dennis Finn joins WorleyParsons as the CEO of Advisian Dennis brings a wealth of experience and a strong background in global strategy, transformational change and high impact customer focused…
Advisian Announcement of MTG acquisition Founded in 1983, MTG is a global operational consulting firm focused on the oil & gas, petrochemicals and chemical industries MTG helps clients accelerate the delivery of financial and…
Digital Enterprise The DE roadmap Customers are seeking the next productivity breakthrough The DE facilitates the digitization of our customers businesses enhancing decision making throughout the create and operate phase of their…
Potential benefits of the digital asset concept Capital costs reduction of up to 5% through data integrity alone Increased speed to market through reduced project cycle time of up to 20% Reduce design cost by up to 70% through reuse…
More information yes please 89
Services North America Delivering What we promise Greg Conlon 90
Services Overview of 6 locations Restructure discussion Merging of CAN and USAC Benefits of restructure Business Unit overview Interface with Improve and Major Projects INTECSEA 91
North America Services The merged North America is the bedrock from which we maintain, enhance and leverage our broad and deep technical capabilities and 40+ Offices our diverse geographic presence 32% of FY14 Revenue 92
New Organisation Business Lines Major Projects Services Improve Europe Sub Saharan Australia Pacific Regions (6) Middle East North America Latin America INTECSEA Africa Asia China North Africa Locations (6) North America…
Benefits of the restructure The Services business line provides the foundation for the way we deliver projects for the resources and energy sectors in North America (and internationally) (and with the other business lines) it is…
Organisational Concept 95
Location & BU Concept Central Pipelines CORD East Upstream M&M Sulphur, Arctic Power & Nuclear West I&E Downstream & Chemicals UCOG Offshore 10,500+ Employees Gulf 6 Locations INTECSEA Coast 96
Unconventional Oil & Gas Contrado provides full integration of field development, synchronizing surface infrastructure with hydrocarbons production. Through collaboration with our customers, we specifically aim to integrate water,…
North America Resources 98
Upstream Strong heritage market Active in Gas field & midstream developments, front end LNG work and facilities associated with pipeline network expansions Repositioning for Oil Sands recovery under capital cost efficiency pressure…
Pipelines Full range of engineering, procurement and construction management (EPCM) services covering all facets of on-shore pipelines, from large-diameter, long-distance transmission pipelines to small-inch gathering and distribution…