Worley Limited · ASX:WOR
Worley — Investor Day (December 2021)
63 slides from Worley's investor day presentation, Dec 1, 2021
Slide 1: Delivering a more sustainable world
Delivering a more sustainable world Investor Day 1 December 2021 worley.com
Slide 2: Disclaimer
Disclaimer The information in this presentation about Worley Limited, the entities it controls (Group) and its activities is current as at 1 December 2021 and should be read in conjunction with the Company’s Appendix 4E and Annual Report for the full year ended 30 June 2021. It is in summary form an
Slide 3: Agenda
Agenda Our Our growth Delivering a more transformation framework sustainable world Chris Ashton Mark Trueman • Americas, Karen Sobel • EMEA & APAC, Mark Brantley Worley | Investor Day 1 December 2021 3
Slide 4: Our transformation
Our transformation Chris Ashton, Chief Executive Officer Worley | Investor Day 1 December 2021 4
Slide 5: Acknowledgement of Traditional Custodians
Worley acknowledges and pays respect to the past, present and future Traditional Custodians of Country throughout Australia and extends this acknowledgement and respect to First Peoples in all countries in which we operate. Bili Yilam: Bluetongues Home by Australian Indigenous artist Mick Harding ww
Slide 6: Key messages
Key messages Investment We are a global We are decisions are industry leader accelerating gaining momentum delivering sustainability- in line with the solutions for our focused growth in fundamental shift customers’ line with our towards net-zero complex ambition challenges Worley | Investor Day 1 D
Slide 7: Purpose: Delivering a more sustainable world
Purpose Delivering a more sustainable world Ambition We will be recognized globally as the leader in sustainability solutions Values We value Life | We Rise to the challenge | We’re Stronger together | We Unlock brilliance Worley | Investor Day 1 December 2021 7
Slide 8: Transforming into a high-value solutions provider
We are transforming into a high-value solutions provider enabled by knowledge, data, automation and technology Across diversified end markets and new and emerging sustainability markets Worley | Investor Day 1 December 2021 8
Slide 9: Leveraging our strengths to realize our ambition
Leveraging our strengths to realize our ambition Moving to net-zero, the next decade presents a significant • USD115t cumulative decarbonization investment by 20501 1 capex cycle requiring engineering and project delivery expertise • Over the next 30 years 4x higher total energy investment compared
Slide 10: What differentiates us?
What differentiates us? We provide end-to-end solutions for our customers; from initial concepts, through to delivery, operation and post-closure, our people provide knowledge and high-value solutions to our customers across diverse end markets Our customers are choosing to work with us because of o
Slide 11: Our value proposition
Our value proposition 1 Global leader delivering knowledge- based project and asset services 2 Global earnings base and broad end markets provides diversification 3 Balance sheet to support growth initiatives and shareholder returns • Leading market positions to benefit • Balanced exposure to custom
Slide 12: Realizing our ambition
Realizing our ambition Worley | Investor Day 1 December 2021 12
Slide 13: People, Portfolio, Planet
Our five-year ambition: We will be recognized globally as the leader in sustainability solutions Our People Our Portfolio Our Planet We energize and empower our people to We are our customers' most trusted We partner with customers as stewards drive sustainable impact partner, providing best-in-clas
Slide 14: Our strategic portfolio
Our strategic portfolio Sustainability Pathways Decarbonization • Resource Stewardship • Asset Sustainability • Environment and Society Our core markets Our growth markets Evolving our core markets as we support our Accelerating sustainability-focused growth customers with the energy transition mark
Slide 15: Priority initiatives – accelerating our growth
Priority initiatives – accelerating our growth Positioning Worley to be an industry-leading sustainability solution provider Sustainability Pathways Decarbonization • Resource Stewardship • Asset Sustainability • Environment and Society Accelerating growth areas Continued growth focus Integrated Com
Slide 16: Commitments to deliver our purpose
We’ve made commitments that will help us achieve our purpose of delivering a more sustainable world Worley | Investor Day 1 December 2021 16
Slide 17: Business context and market outlook
Business context and market outlook Worley | Investor Day 1 December 2021 17
Slide 18: Current business context
Current business context Global headcount increased and utilization continues to be on Factored sales pipeline target Backlog ($b) (contract value $) • 49,100 at 31 October, up from 48,000 at 31 July 2021 14.3 14.8 • Increase is predominantly driven by North America turnaround season which is expect
Slide 19: COP26 outcomes and our strategy are aligned
The outcomes from COP26 and our strategy are well aligned COP26 delivered • Continued commitment to 1.5°C and need for greater decarbonizing ambition up to 2030 Acceleration of low emission technology, and the Customer conversations at • “phasing down” of both unabated coal use and inefficient fossi
Slide 20: Key drivers for growth across our markets
Key drivers for growth across our markets The next decade presents a “… 4x increase in global significant capex energy investment over the Opportunities cycle requiring engineering next 30 years (vs pcp), including the decline in fossil and project delivery expertise • Strong growth in renewables, p
Slide 21: Integrated Gas - market fundamentals and outlook
Low-carbon Conventional Chemicals Resources energy energy and fuels Integrated Gas - market fundamentals and outlook Near-term global gas demand is Significant investments needed Gas supports a transition to 1 2 3 forecast to grow to meet growing demand lower emissions Natural Gas demand growth comp
Slide 22: Woodside gas plants
Woodside gas plants Decarbonization | Energy Frame agreement for the provision of services to Woodside gas plants in Western Australia Worley has provided brownfield engineering services to Woodside for over 30 years. The agreement covers engineering studies and technical support, front-end engineer
Slide 23: Clean energy - market fundamentals and outlook
Low-carbon Conventional Chemicals Resources energy energy and fuels Clean energy - market fundamentals and outlook Net-zero driving unprecedented Long-term customers Track record across 1 2 3 investment transitioning into new markets technologies Clean energy supply by type to 2050 Canada’s first mi
Slide 24: Making a new offshore wind technology a reality
Making a new offshore wind technology a reality Decarbonization | Energy TwinWay Project TwinWay is a proof of concept to verify and commercialize Hexicon’s foundation technology, TwinWind, for floating wind. This is the first project where Hexicon’s patented design will be deployed at full scale. W
Slide 25: Oil - market fundamentals and outlook
Conventional Chemicals Low-carbon energy Treasury energy Committee and fuels version 3 Resources Oil - market fundamentals and outlook Demand rebounds to pre-COVID Short term investment growth Track record in decarbonization 1 levels 2 expected 3 to reduce emissions intensity The predicted 2030 supp
Slide 26: Chevron subsea tieback
Chevron Allseas subsea tieback decommissioning Energy | Traditional Asset sustainability | Energy Brownfield solutions to Gulf of Mexico Safely decommissioning aging assets is asset becoming an increasingly important focus The project will establish a subsea tieback for energyscheme development prod
Slide 27: Chemicals - market fundamentals and outlook
Low-carbon Conventional Chemicals Resources energy energy and fuels Chemicals - market fundamentals and outlook Resilient market rebounding Decarbonization investments are We are providing solutions 1 2 3 to the chemicals industry strongly post-pandemic accelerating Demand outlook1 Chemical producti
Slide 28: Greenfield integrated refinery and petrochemicals complex
Greenfield integrated refinery and petrochemicals complex Traditional | Chemicals Red Sea National Refining and Petrochemicals Company (Red Sea Co) has awarded Worley a services contract for a greenfield integrated refinery and petrochemicals complex in Egypt The project, which will be located in th
Slide 29: Fuels - market fundamentals and outlook
Low-carbon Conventional Chemicals Resources energy energy and fuels Fuels - market fundamentals and outlook Shifting fundamentals across Transition to low-carbon fuels is We are a leader in 1 2 3 sustainable aviation fuels planned capacity growth critical for NZE 2050 Planned renewable diesel Liquid
Slide 30: Partnering with Shell on sustainable aviation fuel and renewable diesel
Partnering with Shell to produce sustainable aviation fuel and renewable diesel Decarbonization | Chemicals Shell awards Worley a significant low-carbon fuels services contract in The Netherlands We’re providing detailed design and procurement services to support the development of a low- carbon fue
Slide 31: Resources - market fundamentals and outlook
Low-carbon Conventional Chemicals Resources energy energy and fuels Resources - market fundamentals and outlook Strong capital spend across our Significant capex investment to Broad portfolio exposure with 1 core resource markets 2 3 meet energy transition demand market share upside Our diversified
Slide 32: Paradox lithium bromine project
Paradox lithium bromine project Decarbonization | Resources Anson Resources awards agreement for Paradox Lithium Bromine project A1 Lithium Inc., a subsidiary of Anson Resources Limited, has awarded Worley an agreement to conduct a detailed feasibility study on their Paradox Lithium Bromine project
Slide 33: Our growth framework
Our growth framework Mark Trueman, Executive Group Director - Growth Worley | Investor Day 1 December 2021 33
Slide 34: Accelerating our growth – our priority initiatives
Accelerating our growth – our priority initiatives Sustainability Pathways Decarbonization • Resource Stewardship • Asset Sustainability • Environment and Society Delivering growth Accelerating growth areas Continued growth focus • Capability building through development of new solutions and strateg
Slide 35: Adapting existing assets
Adapting existing assets Addressable market overview Our strategy for growth Our foundation for growth Customer needs addressed ~200 Represents only parts of the value chain and geographies where we will participate • Diagnose the challenges (economic, physical, other) faced by assets Projects in FY
Slide 36: Phillips 66 refinery conversion
Phillips 66 refinery conversion Decarbonization | Chemicals Converting refinery to renewable fuels- manufacturing facility Expected to be one of the world’s largest facilities of its kind Will produce up to 2.5b liters per year of renewable transportation fuels Worley | Investor Day 1 December 2021
Slide 37: Green hydrogen
Green hydrogen Addressable market overview Our strategy for growth Our foundation for growth Represents only parts of the value chain and geographies where Customer needs addressed we will participate • Ensure lower supply cost of hydrogen 100+ Double-digit Factored sales pipeline ~$3b-6b1 ~50% 1 •
Slide 38: One of the largest commercial green hydrogen production facilities
One of the largest commercial green hydrogen production facilities in the world Decarbonization | Chemicals First-of-its-kind project on this scale Early engineering services contract for Shell to support the development of a new 200 MW electrolysis-based hydrogen plant The facility will be located
Slide 39: Carbon capture, utilization and storage
Carbon capture, utilization and storage Addressable market overview Our strategy for growth Our foundation for growth Represents only parts of the value chain and geographies where Customer needs addressed we will participate • Reduce or remove carbon emissions to 205+ > 30x atmosphere in upstream h
Slide 40: Direct air capture (DAC) to fuels project
Direct air capture (DAC) to fuels project Decarbonization | Energy Oxy Low Carbon Ventures and Squamish Huron Clean Energy Corporation Expected to be the first commercial-scale project of its kind and is anticipated to produce up to 100ML of ultra-low carbon fuel annually The facility is being desig
Slide 41: Water
Water Addressable market overview Our strategy for growth Our foundation for growth Represents only parts of the value chain and geographies where Customer needs addressed we will participate • Water security, climate change mitigation, water ~300 utilization efficiency and system resilience ~$15b+1
Slide 42: Water sourcing for green hydrogen
Water sourcing for green hydrogen Resource stewardship | Energy Gigastack Consortium / Humber UK Selecting a cost-effective water sourcing and treatment strategy for a green hydrogen project. Included evaluation of multiple sources, including estuarial seawater, condensates, and treated wastewater.
Slide 43: Plastics recovery
Plastics recovery Addressable market overview Our strategy for growth Our foundation for growth Represents only parts of the value chain and geographies where Customer needs addressed we will participate • Community and ESG pressure to reduce plastic ~30 waste ~$6b1 ~7% 1 • Reducing environmental im
Slide 44: How chemical recycling is giving plastic waste a new purpose
How chemical recycling is giving plastic waste a new purpose Resource stewardship | Chemicals and fuels Commercial scale polystyrene chemical recycling We’ve partnered with Agilyx and INEOS Styrolution to provide engineering design services for a commercial-scale polystyrene chemical recycling facil
Slide 45: Copper
Copper Addressable market overview Our strategy for growth Our foundation for growth Represents only parts of the value chain and geographies where Customer needs addressed we will participate • Declining ore body grades and increased depths. 150+ ~$63b+1 ~6% 1 • Reduced project development timeline
Slide 46: Copper enabling new energy
Copper enabling new energy Decarbonization | Resources Unlocking new copper resources The Hu’u Project is a large high-grade copper and gold ore body being studied by PT Sumbawa Timur Mining (STM), which is owned by Vale S.A. and PT Aneka Tambang (Antam). The depth, geotechnical characteristics and
Slide 47: Delivering a more sustainable world
Delivering a more sustainable world Karen Sobel, Group President - Americas Mark Brantley, Group President - EMEA & APAC Worley | Investor Day 1 December 2021 47
Slide 48: Key messages
Key messages Investment We are a global We are decisions are industry leader accelerating gaining momentum delivering sustainability- in line with the solutions for our focused growth in fundamental shift customers’ line with our towards net-zero complex ambition challenges Worley | Investor Day 1 D
Slide 49: Worley | Investor Day 1 December 2021
& Worley | Investor Day 1 December 2021 49
Slide 50: Supplementary information
Supplementary information Worley | Investor Day 1 December 2021 50
Slide 51: Commonly asked questions
Commonly asked questions 1 Is there a “transition gap”, i.e. will there be a decline in traditional work before sustainability opportunities backfill current revenues? 2 Do you need a new set of customers? 3 Are the skills of your current people transferable onto sustainability projects? 4 What do y
Slide 52: Is there a transition gap?
Our traditional services continue to be a strong foundation with sustainability services growing at a higher rate #1 3rd party Paris-aligned1 forecasts show near-term increase in traditional investment with sustainability investment accelerating in the near to mid-term Is there a “transition gap”, i
Slide 53: Do you need a new set of customers?
All of our top 20 customers are already investing in decarbonizing activities, and this investment is accelerating #2 The majority of our sustainability revenue in FY21 was from the existing long-term customers Do you need a new set of We are supporting our customers as they address the customers? m
Slide 54: Are the skills of your people transferable?
We have the right industry leading talent, experience, skills and capability to create the right solutions for our customers. #3 Our people have transferable skills and we have a strong, ongoing commitment to learning. Our purpose, ambition and values are genuine and highly Are the skills of your cu
Slide 55: What do you mean by sustainability?
Our sustainability pathways support all the markets we serve 1. Decarbonization Total decarbonization investment #4 Carbon management equates to over USD1.5t per year. Low carbon fuels Decarbonization & feedstocks Worley’s addressable market is 3% infrastructure Nuclear energy to 15% of total spend.
Slide 56: Why work on technologies not yet commercially viable?
To achieve decarbonization all low-carbon technologies will #5 need to be continually developed and deployed We have a leading role to play in Some technologies aren’t yet delivering bold technology commercially viable, why are solutions across the full spectrum you working on these of technology re
Slide 57: We continue to accelerate our transformation strategy
We continue to accelerate our transformation strategy Strong financial Addressing Capture Continuous Prudent capital climate change operational position for future opportunities in management through strategic improvements growth sustainability1 action • Industry leading TRCFR • Diversification of e
Slide 58: Cost Savings Programs
Cost Savings Programs ECR acquisition cost synergy delivery ($m) Operational Savings delivery ($m) Savings delivered 2 3 9 Savings delivered In-period savings carried into run rate 4 In-period savings carried into run rate Savings total Savings total Savings to be delivered Savings to be delivered 2
Slide 59: Glossary
Glossary $, $m, $b - Australian dollars unless otherwise stated, Australian GW - Gigawatt millions of dollars, Australian billions of dollars HY - Half Year AET-1.5 - Accelerated Energy Transition Scenario IEA - International Energy Agency APAC - Australia, Pacific, Asia & China IOCs - International
Slide 60: Speaker profiles
Speaker profiles Chris Ashton Mark Trueman Chief Executive Officer Executive Group Director, Growth Chris was appointed Chief Executive Officer and Managing Director on 24 February 2020. Mark is responsible for Growth covering strategy, sales, sector leadership, technology He joined Worley in 1998 a
Slide 61: Speaker profiles
Speaker profiles Karen Sobel Mark Brantley Group President, Americas Group President, EMEA & APAC Karen is responsible for all Worley businesses in the Americas which includes a large portion Mark is responsible for all Worley businesses in the EMEA and APAC regions. Prior to of the construction, ma
Slide 62: Speaker profiles
Speaker profiles Charmaine Hopkins Tiernan O’Rourke Executive Group Director, Chief Financial Officer Corporate Finance Tiernan was appointed as Chief Financial Officer effective 29 November 2021. His Charmaine joined Worley in May 2016 leading the Corporate Finance team on portfolio includes financ
Slide 63: Speaker profiles
Speaker profiles Registered office: Level 17, 141 Walker Street Veréna Preston North Sydney NSW 2060 Group Director, Investor Relations Australia Veréna is responsible for Investor Relations. Prior to this she led Internal Audit for T: +61 2 8923 6866 the Group and was Managing Director at Advisian,