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Energy Supporting Energy Wood Group Capital Markets Day October 2012

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Page 1: Capital markets day 01 10 12 final - Wood

Energy Supporting Energy

Wood Group Capital Markets Day

October 2012

Page 2: Capital markets day 01 10 12 final - Wood

Important notice

This document has been prepared by the Company solely for use at the capital markets day of 1 October. The information in this document has not been independently verified and no representation or warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or opinions contained herein. None of the Company or any of its affiliates, advisors or representatives shall have any liability whatsoever (in negligence or otherwise) for any loss whatsoever arising from any use of this document, or its contents, or otherwise arising in connectionwith this document.

This document does not constitute or form part of any offer or invitation to sell, or any solicitation of any offer to purchase any shares in the Company, nor shall it or any part of it or the fact of its distribution form the basis of, or be relied on in connection with, any contract or commitment or investment decisions relating thereto, nor does it constitute a recommendation regarding theshares of the Company.

Certain statements in this presentation are forward looking statements. By their nature, forward looking statements involve a number of risks, uncertainties or assumptions that could cause actual results or events to differ materially from those expressed or implied by the forward looking statements. These risks, uncertainties or assumptions could adversely affect the outcome and financial effects of the plans and events described herein. Forward looking statements contained in this presentation regardingpast trends or activities should not be taken as representation that such trends or activities will continue in the future. Youshould not place undue reliance on forward looking statements, which speak only as of the date of this presentation.

The Company is under no obligation to update or keep current the information contained in this presentation, including any forward looking statements, or to correct any inaccuracies which may become apparent and any opinions expressed in it are subject to change without notice.

Page 3: Capital markets day 01 10 12 final - Wood

Energy Supporting Energy

OverviewAlan Semple – Chief Financial Officer, John Wood Group PLC

Page 4: Capital markets day 01 10 12 final - Wood

Agenda

Introductions

Engineering division overview

Wood Group Mustang

Wood Group Kenny

Q&A

3

Page 5: Capital markets day 01 10 12 final - Wood

Timetable

4

Start time Time Section Presenter

15.00 00.10 Welcome Alan Semple

15.10 00.20 Introduction to Engineering division

Mike Straughen

15.30 00.50 Wood Group Mustang Steve Knowles

16.20 00.20 Break

16.40 00.50 Wood Group Kenny Steve Wayman

17.30 00.10 Recap and Q&A All

17.40 Drinks reception All

Page 6: Capital markets day 01 10 12 final - Wood

Wood Group organisation Wood Group

Allister Langlands ChairmanBob Keiller Chief Executive OfficerAlan Semple Chief Financial Officer

Wood Group GTSMark Dobler – Chief Executive

Wood Group PSNRobin Watson – Chief Executive

Maintenance Power Solutions

Wood Group Mustang Wood Group Kenny

UK Americas International

EngineeringMike Straughen – Chief Executive

(from 1 November 2012)

5

Page 7: Capital markets day 01 10 12 final - Wood

Our business1

Wood GroupRevenue Over $6bnPeople Over 41,000

Wood Group PSN

World’s largest production facilities support provider

28,000 employees

c55% of Group revenue

Historic EBITA margin rangeof 4.0% to 6.2%

Typical project 3-5 years

Predominantly opex driven

6

Wood Group GTS

World’s leading independent industrialgas turbine aftermarket provider

3,700 employees

c20% of Group revenue

Historic EBITA margin rangeof 4.7% to 8.0%

Typical project 1-5 years

Opex and capex driven

Engineering

World leader in the delivery of engineering services to the upstream,subsea & pipeline and downstreamenergy sectors

10,100 employees

c25% of Group revenue

Historic EBITA margin range of 9.8% to 14.2%

Typical project 3-24 months

Predominantly capex driven

1 Employee numbers and revenue splits as per interim results to 30 June 2012. Divisional EBITA ranges based on reported high and low %s since 2006.

Page 8: Capital markets day 01 10 12 final - Wood

Core Values

Safety & Assurance Safety & assurance is our top priority. We passionately care about the safety of our people and behave as safety leaders. We are committed to preventing injuries and ill health to our people and everyone we work with.

Relationships Our business depends on healthy relationships with customers, business partners and suppliers.

Social Responsibility Being socially responsible is integral to what we do. We aim to make a positive difference to the communities where we operate and seek ways to assist them.

People People are our business. We are professional, high performing team players focused on delivering and drawing on our global expertise.

InnovationInnovation gives us competitive advantage.

Financial Responsibility We expect to receive fair reward for our business performance. We are cost aware and carefully manage our own and our customers’ costs.

Integrity We are proud of our reputation, built over many years, which depends on us doing the right thing.

7

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Key objectives for today

Understand our Engineering business and its drivers

Identify our positions in long term growth markets

Outline our competitive advantage and differentiation

Highlight our future potential and areas of focus

8

Page 10: Capital markets day 01 10 12 final - Wood

Energy Supporting Energy

Engineering divisionMike Straughen – Chief Executive, Engineering

Page 11: Capital markets day 01 10 12 final - Wood

Engineering – Key facts1

Independent engineering solutions provider with market leading positions Expected to contribute c25% of Group revenue in 2012 Anticipate annual EBITA growth in 2012 of over 30% (2011: 32.8%) Generally work on low risk reimbursable contracting model Employ 10,100 worldwide as of June 2012 Operating in over 20 countries with primary hubs in Aberdeen, Calgary, Houston,

London & Perth

10

0

50

100

150

200

250

2006 2007 2008 2009 2010 2011

EBITA ($m)

0200400600800

1,0001,2001,4001,6001,800

2006 2007 2008 2009 2010 2011

Revenue ($m)

0

2,000

4,000

6,000

8,000

10,000

12,000

2006 2007 2008 2009 2010 2011 1H2012

Headcount

0

5

10

15

2006 2007 2008 2009 2010 2011

EBITA %

Delivering good through cycle growth 1 Taken from management information and published annual and interim report data

Page 12: Capital markets day 01 10 12 final - Wood

Key market sectors and principal competition

Sector Activities Competition

Upstream c40% of revenue

Offshore & onshore upstream facilities – deepwater topsides, shallow water jackets and topsides, onshore production plant, heavy oil SAGD production, shale facilities, arctic technology

Worley ParsonsKBRAMECTechnipJacobsBantrel (Bechtel)

Subsea &pipeline

c40% of revenue

Subsea, pipelines & integrity management – offshore and onshore pipelines, subsea systems, flow assurance, riser design, integrity analysis, joint industry projects management, renewables (wind and CO2 sequestration)

IntecSea (Worley Parsons),Genesis (Technip)Germanischer LloydGulf Interstate

Downstream, process & industrial

c20% of revenue

Downstream, process & industrial – refineries, LNG & regasification, petrochemical plants, automotive, industrial & manufacturing plants

FluorJacobsCB&I inc. ShawFoster Wheeler

11 Delivering world class engineering solutions

1 “Upstream” and “Downstream process & industrial” work is conducted by Wood Group Mustang. “Subsea & pipeline” work is conducted by Wood Group Kenny, apart from onshore pipeline work in the Americas which is conducted by Wood Group Mustang.

Page 13: Capital markets day 01 10 12 final - Wood

Market outlook and growth potential

12

Upstream Global offshore market characterised by increasingly complex and technical challenges, large global projects and deepwater arenas

Onshore US benefiting from North American shale activity

Canadian oil sands market continuing to recover

Subsea &pipeline

Subsea market has strong sustainable underlying drivers and sector spending remains robust

North America and Canadian oil sands driving opportunities in gathering, processing and compression for onshore pipeline

Downstream, process & industrial

Petrochemical production coming back to US markets, with gas as a feedstock

Global refining market relatively stable with growth potential in Saudi Arabia, Latin America and China

Market fundamentals driven by supply side challenges, such as depletion and complex or unconventional reservoirs, coupled with rising long term global energy demand

Strong positions in good long term growth markets

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What we do Helping customers achieve predictable outcomes

13

Page 15: Capital markets day 01 10 12 final - Wood

Differentiated topsides capability ENR ranked us as the no 1 design firm in

offshore/underwater facilities Involved in the design of

more global deepwater floating platform facilities than any other contractor

well over half of all Gulf of Mexico deepwater facilities

10% of global deepwater FPSOs We are currently engineering the world’s largest

semi-sub production facility (Ichthys)

Deepwater topsides

Largest independent subsea & pipelines technology group of its kind in the world

Engineered, managed or appraised more than half of all subsea developments in the main global arenas

Analysed, designed or verified riser systems on over 90% of floating developments in the UK sector of North Sea, over 80% in GOM, and over 70% of West African deepwater projects

Subsea solutions

Oil sands (in-situ)

One of the leading providers of engineering, procurement and construction management (EPCM) services for in-situ thermal heavy oil developments in Canada

Downstream

One of the leaders in the design and engineering of grassroots and revamped fluid catalytic crackers in North America

Automation

Control Engineering ranked us as no 1 system integrator giants of the year in 2012

Market leading positions

14

Page 16: Capital markets day 01 10 12 final - Wood

Strong long term customer relationships

15

Others (Including Pipeline Operators, EPC Contractors)

35%

5%38%

22%

Revenue by customer type1

IOC

Independents

1 Based on contracting arrangement with immediate customers; source management information to 30 June 2012

NOC

Others

IOC

NOC

Independents

Page 17: Capital markets day 01 10 12 final - Wood

Markets

Maintain a balanced market sector portfolio Build out our global footprint and retain a strong position in North America

Customers

Maintain excellence in execution and high customer satisfaction Increase activity with NOCs and retain a broad customer base

People

Continue to recruit, train, develop and retain the best people Make greater use of our global resource pool

Capability

Continue to invest in our systems, software and technical differentiation Enhance capability in selected areas: Arctic, renewables and integrity management

Engineering – key areas of focus

16

Page 18: Capital markets day 01 10 12 final - Wood

Engineering – a global footprint

South America 1,100 People

North America 6,000 People

Europe1,500 People

Middle East & Africa 700 People

Asia300 People

Australia 500 People

17

Local office

Major hub

Headcount based on management information as at June 2012

Page 19: Capital markets day 01 10 12 final - Wood

Key messages for today High quality & motivated people – confident in our ability to continue to attract future

talent

Market leading positions in long term growth areas

Long term customer relationships with significant repeat business

Virtuous circle - best people > best projects > best people

Early involvement allows opportunity to add value

Broad and expanding geographic footprint

Largely reimbursable contracting model

Order book and future prospects remain strong

Well positioned for future growth

Delivering world class engineering solutions 18

Page 20: Capital markets day 01 10 12 final - Wood

Energy Supporting Energy

Wood Group MustangSteve Knowles – Chief Executive, Wood Group Mustang

Page 21: Capital markets day 01 10 12 final - Wood

What we doGlobal Engineering, Procurement, Construction Management (EPCM)

20

CONCEPT PRELIMINARY ENGINEERING ENGINEERING PROCUREMENT

MANAGEMENTCONSTRUCTION MANAGEMENT

STARTUPSUPPORT

PROJECT MANAGEMENT

SAFETY & ENVIRONMENTAL

Offshore Onshore Pipeline Process Plants & Industrial AutomationThermal Heavy Oil

Page 22: Capital markets day 01 10 12 final - Wood

History 1987 - Mustang Engineering founded in Houston, TX

1990 – First “deepwater” project; deck and facilities design for BP in 314 meters of water

1992 – Pipeline Business Unit established

1996 – Process Plants and Automation Business Units established

1997-2007 - Deepwater program expansion (BP, ExxonMobil, Kerr McGee, Chevron)

2000 – Mustang Engineering and Alliance acquired by Wood Group (1,400 people in US)

2001 – Acquisition of Energeticos in Colombia

2004 – London office established

2006 – Acquisition of Global Performance (Process & Industrial Business Unit)

2007 – Acquisition of IMV Projects (Thermal heavy oil)

2009-10 – Established presence in Angola, Malaysia, and Saudi Arabia

2011 – Acquisition of ISI Solutions

Now a business of circa 7,600 people in 13 countries

21

Page 23: Capital markets day 01 10 12 final - Wood

Shallow and Deepwater ExpertiseExperience in all facility types

Floating LNG

Gas ProcessingCompression Facilities

Shale Developments

Steam Assisted Gravity DrainageWastewater Management

Pipeline EngineeringRight of Way

Inspection & Survey

RefiningPetrochemicals & Chemicals

Industrial Plants

Systems IntegrationDistributed Control SystemsAdvance Process Controls

Structure & range of services

Automation & ControlPipelineProcess Plants &

Industrial

Onshore

22

Thermal Heavy OilOffshore

Page 24: Capital markets day 01 10 12 final - Wood

North America5,400 people

Houston, Calgary, Greenville, Denver

EAMIR1,000 people

Woking, Al Khobar, Luanda, Mumbai

Latin America1,000 people

Mexico City, Bogota, Mendoza, Buenos Aires,

Santiago, Lima

• MAJOR WORK ARENAS• Permanent officeSelect project locations

••

Asia Pacific200 people

Kuala Lumpur

•GoM

SingaporeIndia

Global reach, local touch

Global footprint

23

•• •••CANADA

••

• •

•COLOMBIABrazil•AUSTRALIA

New Zealand

ChinaJapan

VietnamMalaysia

•SE ASIA

ChilePeru

Argentina

•MIDDLE EASTNigeria

Angola

•NORTH SEA

Libya UAESpain

UKNorway

Alaska

E. Guinea

Egypt

•WEST AFRICA

Iraq

Indonesia

• South Korea

Mozambique

•USA

Kazakhstan Russia

Page 25: Capital markets day 01 10 12 final - Wood

Offshore Large global projects Expanding project development in deepwater arenas Increasing complexity of projects requiring more engineering

Onshore Impact of shale regions – unprecedented activity level in North America IOCs moving into gas gathering, processing, and compression Emerging global shale developments

Thermal Heavy Oil Oil price is the major driver Canadian oil sands market continuing to recover Continued investment by IOCs and NOCs

Market drivers and characteristics

24

Page 26: Capital markets day 01 10 12 final - Wood

Pipeline North America shale and Canadian oil sands driving infrastructure

enhancements Economics driving general shift to liquids in North America Infrastructure developments continue in Latin America

Process Plants & Industrial Expansion in the chemical market in the US due to low cost natural gas price US refining stable, regional expansion in select markets Emerging opportunity in manufacturing facilities in automotive and aerospace

Automation Significant global market growth Clients focused on efficiency, systems integration, and security Market growth in both greenfield and brownfield projects

Market drivers and characteristics

25

Page 27: Capital markets day 01 10 12 final - Wood

Wood Group Mustang position

Ranked #1 by Control Engineering in their list of 100 System Integrator Giants

Automation & Control

Ranked #1 in ENR’s Top Engineers in Offshore and Underwater Facilities

Offshore

Ranked #1 in ENR’s Top Engineers in Pipelines

Pipeline

Recognised Leader in FCC projects

Process Plants & Industrial

Leader in compression, CO2, and EOR

Onshore

26

Leader in SAGD Facilities engineering

Thermal Heavy Oil

Page 28: Capital markets day 01 10 12 final - Wood

World class project portfolio – excellence in offshore

27

Page 29: Capital markets day 01 10 12 final - Wood

Responsive to client needs

Broad technical resource capabilities

Solution independent service provider

Leverage world class tools into project delivery

Client Satisfaction and Repeat Business

Our competitive advantage

28

People Oriented…Project Driven®

Page 30: Capital markets day 01 10 12 final - Wood

Key clientsClient Offshore Onshore Thermal

Heavy Oil PipelineProcessPlants & Industrial

Automation

Anadarko X X XAramco X X X XCenovus X XChevron X X X X X XConoco Phillips X X X X XDSME X XEastman X XEcopetrol X X X XExxonMobil X X X X XHess X X XNoble Energy X XOccidental X X X XSamsung XShell X X X X X XStatoil X X

29

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Other55%Top 5

25%

Second 520%

FEED30%EPCM

15%

Other10%

Detailed Engineering45%

Service split

Customer analysis1

30

Top clients by revenue

Offshore30%

Onshore7%

Heavy Oil13%

Pipeline22%

PP&I21%

Automation7%

Business unit split

1 Based on management information for the six months to June 2012, mix subject to change over time

Page 32: Capital markets day 01 10 12 final - Wood

Maintain customer focus to retain our market leading positions

Continued focus on safety in design and integrity management

Excellence in execution and project delivery

Geographic expansion in response to customer mix shifting towards NOCs, which means further local staff growth and training

Enhancing work share capabilities

Maintaining a low risk, largely reimbursable business model

Resource recruiting, training and retention

Key areas of focus

31

Page 33: Capital markets day 01 10 12 final - Wood

Strong position across long-term growth markets

Sustainable client relationships

Active deepwater markets

Positioned well for growth in US and international shale markets

Demonstrated employer of choice

We Deliver!

Key takeaways

32

Page 34: Capital markets day 01 10 12 final - Wood

Energy Supporting Energy

Wood Group KennySteve Wayman – Chief Executive, Wood Group Kenny

Page 35: Capital markets day 01 10 12 final - Wood

What we do

34

Subsea (SURF) & Pipelines

All of Facilities (AoF) Integrity Management

Production Risers

SURF & Pipelines Project Management

Floating Systems Buoys, SPMs

Drilling Risers

Moorings

Systems Flow Assurance &

Modelling

Life Cycle Engineering & Management of Subsea Systems & Associated Facilities

Experience that Delivers

Page 36: Capital markets day 01 10 12 final - Wood

1978 - J P Kenny & Partners founded, focused on offshore pipeline design

1986 - Completed our first subsea facilities project (Oxy Scapa)

1993 - Acquired by Wood Group with 300 people in 5 locations

2001 - Organic start up of Wood Group Integrity Management (WGIM)

2004 - Acquired Multiphase Solutions Inc (Msi)

2008 - Acquired Marine Computational Systems (MCS)

2008 - Awarded BP 5 year Subsea Global Agreement (GA)

2010 - Acquired SgurrEnergy

2012 - Awarded Shell Enterprise Frame Agreement (EFA) for subsea EPCM services

Now a business unit of c2,500 people in 25 permanent offices in 16 countries

History

35

Page 37: Capital markets day 01 10 12 final - Wood

World’s largest independent engineer/manager of subsea & pipeline systems.Full suite of specialist skills all in‐house: flow assurance, risers, materials

Subsea systems& pipelines

engineering & management

Flow assurance,process

optimisation,on-line systems

services & software

Materials engineering,

AoFintegrity assurance,services & software

Risers, moorings, flexibles, floatingsystems, drilling

engineering services & software

Renewable energy

consultancy services & products

Structure & range of services

36 Experience that Delivers

Page 38: Capital markets day 01 10 12 final - Wood

UK 900-1,000 people

Aberdeen, London, Glasgow, Newcastle

Europe 100-200 people Galway, Paris,

Stavanger, Oslo

Africa/M. East 100-200 people

Abu Dhabi, Lagos, Luanda, Baku

India 100-200 people

Delhi, Pune, Chennai

SE Asia 100-200 people

Kuala Lumpur, Jakarta, Beijing

Australia400-500 people

Perth, Melbourne, Brisbane

• MAJOR WORK ARENAS• Permanent officeSelect project locations

••

••

••

PhilippinesIsrael

S. Africa

Ghana

Algeria

UgandaOman

Mozambique

••

••

Americas 400-500 people

Houston, Vancouver, Maine, Rio

•••

••

• •

• •

• • •

•GoM

NWS• •TIMOR SEA

•CASPIAN

N SEA/WoS•

ANGOLA•

•UAE

•SARAWAK/SABAH

At. Canada

Barents Sea

Korea

Brazil

E. Med.

India

Queensland

TrinidadNigeria

International business: 25 permanent offices in 16 countries

Global footprint

37

Page 39: Capital markets day 01 10 12 final - Wood

Subsea market has strong sustainable underlying drivers

Low incremental cost – Tie-backs or Subsea to Beach (S2B)

Speed to market – can be 2 years

Sophisticated international supply chain with increased capacity

Increasing equipment & systems reliability

Equipment standardisation opportunity

Market drivers and characteristics

38 Experience that Delivers

Page 40: Capital markets day 01 10 12 final - Wood

Sector & share -

Subsea sector spending remains strong

Wood Group Kenny focused on increased market share

& new services/areas

Consistently high staff utilisation due to high demand

Emerging opportunities –

Chinese operators & contractors expanding internationally

needing high end design & project management technical skills

(example Sinopec for Ghana)

E Africa: Mozambique, Uganda (Onshore), Kenya/Tanzania (Offshore)

E Mediterranean: Israel & Cyprus big gas finds = Export pipelines

European Offshore Wind – Oil & Gas skills knowledge transfer

Market drivers and characteristics

39 Experience that Delivers

Page 41: Capital markets day 01 10 12 final - Wood

Wood Group Kenny position Largest subsea engineering specialist by both

headcount & global footprint

Strong blue-chip client base - several active, technology-hungry operators, repeat business often sole sourced

Reputation & track record for consistent delivery of complex technical projects in harsh environments

Resilience through-cycle due to balance of greenfield & brownfield business

40 Experience that Delivers

Page 42: Capital markets day 01 10 12 final - Wood

BEST PEOPLE > BEST PROJECTS > VIRTUOUS CIRCLEBP Quad 204

Major WoS Green &

Brownfield S/S EPMS

BP Quad 204 Major WoS

Green & Brownfield S/S EPMS

Sinopec Ghana

Gas Export

line PMS

Sinopec Ghana

Gas Export

line PMS

Suncor Terra Nova Riser remediation

Suncor Terra Nova Riser remediation

GALSI World’s deepest trunkline 2,824m

GALSI World’s deepest trunkline 2,824m

Shell Linnorm S/S FEED

HP/HT

Shell Linnorm S/S FEED

HP/HT

Shell Sabah Gumusut Deep

water S/S Integrated

team

Shell Sabah Gumusut Deep

water S/S Integrated

team

BP Caspian programme S/S FEED SD2, COP

BP Caspian programme S/S FEED SD2, COP

Anadarko Mozambique

PL design competition

Anadarko Mozambique

PL design competition

Shell Prelude FLNG –Flowline design & AoF I/M

Shell Prelude FLNG –Flowline design & AoF I/M

NWS S/S projects: Chevron Gorgon,

Hess Equus,

WEL Browse

NWS S/S projects: Chevron Gorgon,

Hess Equus,

WEL Browse

Chevron JSM DW

GoM detail design

Chevron JSM DW

GoM detail design

Saipem P-55 Roncador SCR detail

design

Saipem P-55 Roncador SCR detail

design

BP GoM Galapagos Deepwater S/S FEED

BP GoM Galapagos Deepwater S/S FEED

Shtokman 1 Pipeline FEED

Sub Arctic

Shtokman 1 Pipeline FEED

Sub Arctic

BP Angola Bl. 31 PSVM

S/S FEED

BP Angola Bl. 31 PSVM

S/S FEED

World class project portfolio

41 Experience that Delivers

Page 43: Capital markets day 01 10 12 final - Wood

Independent of all suppliers, construction contractors & proprietary solutions

Unique combination of engineer project delivery (75%) + specialist services (25%)

High staff: contract ratio, high retention rates, large number of industry experts on staff

Strong corporate memory - knowledge sharing, gold standards, engineering authority network

Our competitive advantage – biggest and best in our served market

42 Experience that Delivers

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Designed >500,000 km of trunk lines worldwide, including world’s deepest @2,824m subsea (26 inch diameter), and world’s longest heated pipeline (Onshore) >600kms

Engineered, managed or studied over half of all subsea systems installed in 4 key global arenas (N Sea, Gulf of Mexico, NW Shelf, W Africa)

Analysed, designed or verified riser systems on >90% of FPSs in UKNS, >80% in GoM, & >70% in W African deepwater

Double award winning “Subsea Company of the Year” in UK (2007) and Australia (2011)

Our competitive advantage – biggest and best in our served market

43 Experience that Delivers

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Software - we develop, sell & apply industry-leading in house software in Dynamic riser/mooring & pipe lay analysis Real-time process simulation, system modelling, virtual metering & leak detection, on-line

operator training simulators (“Virtuoso” suite) Web-based asset integrity data repository & associated suite of expert RBI/FFP Systems

(“Nexus-IC”)

Know-How State of the Art HP/HT & PiPiP (cryogenic) design World renowned experts on flexible pipe, cyclonic pipeline stabilisation Unique on-line Subsea & Pipeline Technical Training Academy

Research & development Currently running 6 JIPs on wide range of topics R&D programme with University of Strathclyde on wind turbine condition monitoring & wind

farm performance optimisation In-house technology for business: large annual investment programme Full time technology development director plus full EA/SME network

Technology leadership & differentiation – unmatched range of proprietary software & know-how

44 Experience that Delivers

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Customer analysis1

45 Experience that Delivers

57%

43%Top 5

Others

48%

30%

9%

3%3%

3% 4%

Business stream splitSubsea

Offshore pipeline

IntegritymanagementOnshore pipeline

PMS

Renewables

46%

41%

9%

4%

Spread of work by contract modelGlobal agreement/Cost-Plus

Reimbursable viaschedule of rates

Lump sum man hoursonly

Software

AnadarkoApacheBPChevronShell

Top clients by revenue

1 Based on management information for the six months to June 2012, mix subject to change over time

Page 47: Capital markets day 01 10 12 final - Wood

More outsourcing by operators. Leading to IOCs engaging in restricted-access global agreements to secure top suppliers’ resources

This “locks out” new entrants or marginal players

Increased vigilance and focus on integrity assurance

Also, increased focus on process safety & inherent safety in design

Increased emphasis on training, re-skilling & competency measurement

Subsea & pipeline FEEDs mainly bid/awarded separately from topside/host FEED (or with options to combine or separate)

Market now mainly focused on multiple offshore contracts which need managing/interfacing

Customer trends, priorities, analysis

46 Experience that Delivers

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Retain/attain top three global business position in each of ourchosen sectors

Stick closely to our niche but fill it beyond pure design. Targetincreased revenue from non design-based activities

Add on complementary adjacent businesses using our provenmodel & style = technology-led services

Maintain low risk, largely reimbursable manhour-based model

Retain blend of large projects & global agreements providing volume/bedrock & high utilisation, plus niche consulting & software at higher margins

Be responsive to customer mix shifting towards NOCs, which means further local staff growth & training

Key areas of focus

47 Experience that Delivers

Page 49: Capital markets day 01 10 12 final - Wood

Renowned specialist brand, acknowledged leaders in the subsea field

Strong positions across long term growth markets

Highly differentiated model, technology-leaders with pull-through services

Broad geographic footprint – springboard for continued expansion

Restricted market access to large/long term work scopes for aspiring entrants

Biggest and best in our sector

Key takeaways

48 Experience that Delivers

Page 50: Capital markets day 01 10 12 final - Wood

Energy Supporting Energy

Engineering divisionMike Straughen – Chief Executive, Engineering

Page 51: Capital markets day 01 10 12 final - Wood

Key messages for today High quality & motivated people – confident in our ability to continue to attract future

talent

Market leading positions in long term growth areas

Long term customer relationships with significant repeat business

Virtuous circle - best people > best projects > best people

Early involvement allows opportunity to add value

Broad and expanding geographic footprint

Largely reimbursable contracting model

Order book and future prospects remain strong

Well positioned for future growth

Delivering world class engineering solutions 50

Page 52: Capital markets day 01 10 12 final - Wood

Appendix

Page 53: Capital markets day 01 10 12 final - Wood

Case studies

52

Feed, detailed design and procurement for CO2 recovery plant in the Permian Basin.

Ichthys – will be the world’s largest semi-submersible central processing facility. Located northwest coast of Australia in 250 meters of water.

Client: OccidentalLocation: Texas, USA

Construction support including a 3,400’ directional drill of the Ohio River. Steep terrain and limited space on each side of the river.

Client: SamsungLocation: Australia

Client: Caiman EnergyLocation: Marcellus, USA

Hydraulic system modeling, project management, procurement, environmental permitting, GIS, survey, drafting and construction management/inspection support.

Client: EcopetrolLocation: Colombia

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Case studies

53

Client: CCRLLocation: Saskatchewan, Canada

Client: ExxonMobilLocation: SingaporeLargest ExxonMobil chemical plant in the world. Main automation contractor, upgrade of existing facility, process control and information systems for new facility. Greater than 450,000 man hours.

FEED and Detail Design for the grass roots of a $1.9 billion refinery expansion project. Expansion includes (FCC) complex to increase capacity to 130,000 barrels per day of crude processing.

Client: ConocoPhillipsLocation: Alberta, CanadaFull-field development for largest-ever SAGD earthworks scope and facility expansion. Performed conceptual engineering, FEED, Detailed Engineering, Constructability Services, and Procurement Management.

Tamar - Detailed engineering and design of topsides and deck structure, with total weight of 14,000 st.

Client: Noble EnergyLocation: Offshore Israel

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“We have enjoyed a long relationship with J P Kenny and they have been an important participant in our project teams. JPK has carried out this work effectively, professionally and with technical excellence.”–Anadarko

“WGIM performance was of a high quality standard, specifically the quality of report writing, and support from Jakarta office which was exceptional.” - Origin Energy

“Many thanks for your excellent support which has been a major contributor to us reaching a stage whereby we can commence manufacture with confidence. WGIM personnel go that extra mile.”– Shell

“Excellent work on Galapagos & NaKika 3. JPK brings in the necessary resources despite a difficult market, executing in a high quality manner & continually finding improvement opportunities.“ - BP

“We successfully completed the last remaining task at Lomond last night and the platform has recommenced production after >2 months downtime. This was a very complex workscope, developed at short notice, with many challenges along the way. Many thanks to you all at WGIM for making this a safe and successful operation. A fantastic team effort.” - BG Group

“The increases in the size, competence/dedication of the JPK teams is particularly appreciated. As are your efforts to provide additional teams to cope with our concurrent vessel/platform requirements.” - BP

“May I take the opportunity to thank you all at JPK for your 4 1/2 yr major contribution, which was always grounded, highly professional and fully engaged.”– Shtokman project

Customer commendations & endorsements

54 Experience that Delivers

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Case studies

55 Experience that Delivers

Client: Gazprom, Total, Statoil consortiumLocation: Barents Sea, RussiaFEED for a 600 km 44” diameter pipeline & fibre optic cable from Shtokman field to shore near Murmansk. Field lies north of the Arctic circle. Technical challenges included floating ice offshore & permafrost conditions onshore.

Client: Reliance Industries via AllseasLocation: Offshore E. India

KG-D6 field 1200m WD. Detail design of 36 pipelines = 300 kms, 47 PLETs, 11 subsea structures, 36 umbilicals, 58 diverless spools, 5 SSIVs, 29 pipeline anchors, 8.5 million m3 of dredging & 1mm tonnes of rock dump.

Client: GALSI consortiumLocation: MediterraneanPre-FEED, FEED & survey mgmt of world’s deepest gas trunkline (2,824m). Bringing gas from Algeria, via Sardinia to mainland Italy. 550 kms x 26/32” offshore + 300 kms x 48” onshore. Ultra heavy wall design to prevent collapse.

Client: Total UKLocation: N SeaDeveloped & implemented new S/S pipelines & controls integrity management system (PIMS). Documentation including; preparedness response, major accident prevention, emergency response & ESDV management procedures, pipeling operating procedures, pipeline RBI manual.

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Case studies

56 Experience that Delivers

Client: BPLocation: Angola, W AfricaSubsea engineering FEED & tech. Support for 4 fields Plutao, Venus, Saturno & Marte (PSVM), Block 31, ultra deepwater (2,500m). Designed for a series of “standardised” and sequential field developments with the aim of reducing capex/bbl.

Client: ConocoPhillipsLocation: Southern N Sea UKSupply of virtual operator gas pipeline & process simulator for production, gathering & transmission system. Real-time, on-line controls for optimizing gas & liquids productivity.

Client: Chevron – Gorgon Location: NWS AustraliaIn Joint-Venture - pre-FEED, FEED & EPCM for Subsea facilities & pipelines, incl. Vendor & Inst. Contractor mgmt. 180 kms “S2B” from Jansz in 1,350m WD via Gorgon to Barrow Is. LNG plant. Achieved A$800m budget cost savings through innovations eg hybrid CRA pipe, pressure protection system, scarp crossing & pipeline stabilisation.

Client: CairnLocation: Rajasthan, India

FEED, detail design & technical support to procurement /construction for a waxy crude export pipeline from Mangala field. Teams based in Indian project office and on site. At >600 kms this 24” oil pipeline + 8” gas line piggy back is the world’s longest heated pipeline. Now operating for 2 yrs+.