ASX Announcement Tuesday, 23 May 2017 ASX: WPL OTC: WOPEY Woodside Petroleum Ltd. ACN 004 898 962 Woodside Plaza 240 St Georges Terrace Perth WA 6000 Australia www.woodside.com.au DELIVERING VALUE GROWTH 2017 INVESTOR BRIEFING DAY Woodside today outlined its plans to further grow production in the years ahead, focusing on costeffective opportunities to maximise the potential of its existing assets while unlocking value from its significant resource base. At Woodside s annual Investor Briefing Day, CEO Peter Coleman said the company had successfully navigated a challenging external environment and was now poised to deliver value growth while maintaining its commitment to shareholder distributions. In the near term we expect to generate increasing cash flow and returns from our existing business and committed projects, and we see further upside potential from lower capital intensity and quickerto-market opportunities. Our portfolio offers exciting prospects for growing shareholder value that will coincide with rising global demand for gas and an anticipated supply shortfall. In particular, Woodside is well positioned to capitalise on an expected increase in demand from emerging Asian markets. Woodside has taken advantage of market conditions to strategically build its portfolio with a view to growing production by attracting resources to existing facilities on the planned Burrup Hub. At a time when large greenfield projects are challenging, Woodside is preparing to capture new value from low-cost brownfield developments. Mr Coleman outlined three five-year horizons, during which Woodside would focus on cash generation, unlocking value and repeating successes. To access the live webcast of the Investor Briefing Day, follow the link from www.woodside.com.au. A copy of Woodside s Investor Briefing Day 2017 slide pack is attached. Contacts: MEDIA Michelle Grady W: 61 8 9348 5995 M: 61 418 938 660 E: michelle.grady@woodside.com.au INVESTORS Damien Gare W: 61 8 9348 4421 M: 61 417 111 697 E: investor@woodside.com.au
SYDNEY, AUSTRALIA
DAMIEN GARE
Sheraton on the Park evacuation plan Exits to Grand Staircase
Agenda
Focus for today
Disclaimer and important notice
Statements on strategy and targets
Notes on Petroleum Resource Estimates
Glossary
PETER COLEMAN
Fundamentals
Our focus
Woodside today $
Introducing the Horizons Horizon I Horizon II Horizon III
Roadmap for today 1. 2. 3. 4. 5. Horizon I Horizon I Horizon I Horizon I Horizon I Horizon II Horizon II Horizon II Horizon II Horizon III Horizon III Horizon III
Defining the future Horizon I
World-class LNG and oil Horizon II
Low-cost growth
Significant cash generation Horizon I Growth Wheatstone Greater Enfield Wheatstone Greater Enfield Base Base Horizon I Horizon II
Differentiated business model UNIQUELY POSITIONED
Strategy delivers value & sustainable shareholder distributions Horizon I Horizon II Horizon III
Carbon resilience
Summary
ANTHEA MCKINNELL
2016 financial performance 94.9 MMboe $868m $2.7bn 83 cps $2.6bn 24% 104 cps $114m BBB $8.5/boe Baa1
Leading margins and ROACE 100% 50% Source: Bloomberg (50%)
Woodside Cash flow supports dividends and growth 112 109 99 54 45 3.5 3.3 4.8 2.5 2.6 Source: Bloomberg
Cost focus continues -48%
Strong liquidity
Balance sheet supports growth 25%
Access to premium diversified debt markets
15 10 5 0 Horizon I Cash from Operations Cash Uses
Horizon I Horizon II Cash from Operations Cash Uses
Investment 55% 45%
REINHARDT MATISONS STEPHEN HALL
LNG demand continues to grow
Increasing support for natural gas
Increasing diversity of LNG market 2013 2014 2015 2016
A global portfolio LNG supplier
% of production Balancing revenue and operational flexibility
Delivering strong price outcomes
Resilient to price downside
Increasing upside 20% 2x Total LNG supply Equity-lifted LNG 2x Number of supply sources
Creating an LNG fuels market 5 billion litres p.a. 3 billion litres p.a.
PETER COLEMAN
Defining the future Horizon I
Committed production growth with upside potential Senegal (SNE) Pluto expansion
Maintaining high margins through Horizon I
Wheatstone: first production mid-2017
Greater Enfield: high cash margins
Pluto: increasing capacity through expansion To KGP
Senegal oil: Delineating the resource base, preparing for development
PETER COLEMAN
World-class LNG and oil Horizon II
Uniquely positioned to commercialise key assets
Burrup Hub: low capital intensity concepts
Opportunity to fill KGP
Browse: one of the lowest cost undeveloped gas resources
Scarborough: significant uncommitted resource
Significant resource development through existing infrastructure
Myanmar Northern Rakhine Basin: Concept select early 2018
Myanmar Southern Rakhine Basin: Concept select end 2018
PETER COLEMAN
Establishing global hubs Horizon III
Kitimat: Material cost reductions
Kitimat: Liard basin a world-class resource
MIKE UTSLER
ktco2/year Improving health, safety and environment performance Potential savings
Continued outstanding operational performance OPERATIONAL EXCELLENCE 1
Positioning Woodside for global growth Molecules to unlock the Burrup Hub Improve energy efficiency Produce the limit LNG as transport fuel Lean, nimble and marketfocused supply chain Modular and lean LNG plant Lean capital project executive (brown and greenfield) Agile organisation and lean processes Analytics driven operations
PETER COLEMAN
Summary
PHIL LOADER
Delivering value and sustainable growth
Lower risk / higher impact testing new plays 2
Execution, value delivery and growth focus
High-impact drilling
Myanmar: Execution, commercialisation and growth
Myanmar: Execution, commercialisation and growth
Australia: Accelerated value realisation
Senegal: Commercialise SNE and grow resources
Atlantic margins and Sub-Saharan Africa
Inventory development, execution and value creation on target
SHAUN GREGORY
Advantage through innovation
Reducing exploration time and cost
Upstream: extending reach
Downstream: Plant of the Future Kitimat Concepts ($/tpa) FOOT PRINT PER MTPA
Improving reliability and capacity
Production Data Analytics DECISION MAKERS
Wireless instruments AGRU IMPACT
Unlocking Woodside s collective intelligence
FutureLab: Our innovation engine
How we do it
Future Proof Woodside
HENDRIK SNYMAN MICHAEL ROBINSON
Affordable energy drives our business model
Improvement and excellence in everything we do
Number of Improvements Continuously improving the business CASE STUDY
Disciplined way of doing business CASE STUDY Woodside Management System improving clarity and transparency, springboard for further improvement
Value-driven collaboration with our vendors -100x
A culture that encourages challenging the status quo E A CASE STUDY B D C
> A$740m 1 in cost savings 2.
Continuing to reduce Kitimat s cost of supply 30% to 40% REDUCTION
Minimising exposure to cost escalation
Conditioned to sustain low-cost performance