Worley Limited · ASX:WOR
Worley — Investor Day (June 2021)
87 slides from Worley's investor day presentation, Jun 2, 2021
Slide 1: Delivering a more sustainable world
Delivering a more sustainable world Investor Day 2 June 2021 worley.com Worley Investor Day 2 June 2021 1
Slide 2: Disclaimer
Disclaimer The information in this presentation about Worley Limited and the entities it controls (Group) and its activities is current as at 2 June 2021 and should be read in conjunction with the Company’s Appendix 4D and Interim Financial Report for the half year ended 31 December 2020. It is in s
Slide 3: Agenda
Agenda Delivering a more Sustainability Strategy in action sustainable world pathways Americas - Karen Sobel Chris Ashton Mark Trueman EMEA & APAC - Vinayak Pai Worley Investor Day 2 June 2021 3
Slide 4: Bili Yilam: Bluetongues Home
Bili Yilam: Bluetongues Home by Australian Indigenous artist Mick Harding www.ngargawarendj.com Worley Investor Day 2 June 2021 4
Slide 5: Key messages
• We remain on track to deliver an improved H2 FY21 • Our actions have set us up for the future • We’re delivering in line with our expectations as we accelerate our strategic transformation Key messages • Sustainability1 is already a growing part of our business with more favorable gross margins2 •
Slide 6: Managing through COVID-19
Managing through COVID-19 We’re focused on providing a safe work environment for our people while continuing to deliver for our customers • Field services continue with modified practices and applying smart technology • Flexible working from home solutions are in place enabled by our technology plat
Slide 7: Our transformation journey
Our transformation journey 2018 – 2020 Today Future Diversified the business Accelerated our transformation Set up for our future • Transformative acquisitions • Executing on our strategy with • Pre-eminent global high-end diversifying earnings, end markets sustainability1 already 29% of solutions p
Slide 8: Current business context
Current business context Global headcount remains stable ECR cost synergies program Backlog at $14.1b 1 Hiring in Canada and India on the back of major completed Up from $13.5b from H1 FY21 2 project wins and returning turnaround work $190m run rate achieved by April 2021 Activity levels on long ter
Slide 9: Recent project awards
Recent project awards Sustainability Other energy, chemicals and resources Project win rate is up from prior half Worley enters strategic partnership H2U selects Worley to engineer Cheniere awards Worley four CITGO awards Worley a to promote circular economy large-scale green hydrogen and master ser
Slide 10: Driving long-term shareholder value
Driving long-term shareholder value • Global leader delivering knowledge-based project and asset services • Leading market positions to benefit from sustainability mega trend at more favorable margins1 • Innovative solutions to solve complex challenges through our people and technology Long-term • G
Slide 11: Delivering on our commitments has set our business up for the future
Delivering on our commitments has set our business up for the future Addressing Establish strong Capture Continuous Prudent capital climate change financial position opportunities in operational management through strategic for future growth sustainability1 improvements action • Industry leading TRC
Slide 12: What makes Worley unique
What makes Worley unique Worley WorleyInvestor InvestorDay Day22June June2021 2021 12 12
Slide 13: Elements which contribute to our success
Safety, health and well-being Without it, nothing else matters Culture and values Our people are energized by our purpose delivering a more sustainable world Elements which Our people and capability Marshal and deploy capability anywhere in the world at contribute to scale and pace to solve our cust
Slide 14: Strategic transformation
Strategic transformation Solution provider World-class delivery for our customers Safety | Quality | Speed | Efficiency Work with our customers and other Change the way we work by leveraging stakeholders globally and nationally to knowledge, data, digital and process support them through their susta
Slide 15: Our People strategy supports our transformation and purpose
Our People strategy supports our transformation and purpose …delivering a more sustainable world Shape of the workforce Future fit People experience • Deepen our focus on diversity through • Capabilities and skills to support growth in • Safety, well-being and mental health of our actions to improve
Slide 16: Customers recognize our competitive advantage
Customers recognize our competitive advantage Customer Worley has extensive, relevant experience relationships and we are confident they will be a valuable partner in developing standardized and Global scale Innovation replicable eMethanol facilities. and proven and Liquid Wind CEO and Founder, Clae
Slide 17: Doing digital, being digital
Delivering solutions smarter and faster is necessary to achieve the scale of the sustainability challenge ahead doing being digital digital Developing and delivering Digital is part of our identity digitally enhanced technology It’s how we work and how we think to achieve global sustainability Worle
Slide 18: Combining domain expertise and digital deployment capability
Combining our domain expertise and digital deployment capability to support innovation and growth in the industries we serve We’re accelerating our digital We’re expanding our process We’re leveraging Advisory and technology to create high value technology IP portfolio in growth knowledge to support
Slide 19: Replic8
Replic8 Artificial Intelligence tool to drive smart engineering solutions Replic8 automates the mass reproduction of repeatable deliverables It’s not the nimble speed to market or the notable reduction in cost that impresses us as The tool can achieve up to 60% schedule much as the absolute quality
Slide 20: OmniSight
OmniSight Data solutions driving faster, smarter project delivery The OmniSight app combines project data into a single platform connecting all phases of project delivery and operations of geographically spread assets. The app gives a complete and real-time view of the project and enables data-led d
Slide 21: The digital store
The digital store Increasing productivity through robotic process automation We have developed over 100 bots in-house to solve difficult, time-consuming or repetitive tasks. The bots are available to our teams globally through our digital store. Worley Investor Day 2 June 2021 21
Slide 22: PowerPredict
PowerPredict Our digital solution for windfarms Machine learning technology which improves five-minute ahead wind power generation predictions by more than 45%. This project shows how industry, represented by our visionary partners Worley, and academia can create real impact together both commercial
Slide 23: Technology readiness
We have a leading role to play in delivering bold technology solutions Commercially ready To achieve decarbonization all low-carbon large global deployment technologies will need to be continually developed • Solar and onshore wind and deployed • Electrification, energy efficiency and grid transform
Slide 24: Delivering a more sustainable world
Delivering a more sustainable world Worley Investor Day 2 June 2021 24
Slide 25: Addressing climate change through strategic action
Addressing climate change through strategic action We operate in an environmentally responsible manner and provide our customers with solutions for complex sustainability challenges: 12 months ago, we shared our goals and we’re delivering Committed to net zero Scope 1 and 2 emissions by 2030 and int
Slide 26: Our biggest role is supporting our customers on their sustainability journeys
ESG leaders Worley is … Our biggest role is supporting our AAA rated by MSCI for fifth consecutive year1 customers on their A top 20 ASX performer on ESG disclosure and sustainability journeys alignment with UN SDGs2 – RMIT3 A sector leader as assessed by ACSI4 1. MSCI ESG Issuer Communications 7 th
Slide 27: Key partnerships
Key partnerships We are part of partnerships and coalitions to contribute to breakthrough solutions • Charter level partner of Princeton Andlinger Center for Energy and the Environment • Founding member of the Australian Climate Leaders Coalition • Member of the global Energy Transitions Commission
Slide 28: Our strategy places us at the center of future investment
Our strategy places us at the center of future investment Worley WorleyInvestor InvestorDay Day22June June2021 2021 28 28
Slide 29: USD1 trillion per year decarbonization investment
Decarbonization investment Target net-zero emissions energy business by 2050 Sets ambition to become net-zero by 2050 Sets ambition to get to net-zero by 2050 needed to reach net-zero by 2050 Plans to invest >USD2b per year Targeting 50 GW of renewable Scope 1 and 2 by 2050. ≥60% would be more than
Slide 30: What does the scale of this spend look like?
What does the scale of this spend look like? Achieving net-zero by 2050 would require building: Size of Melbourne Cricket Ground the largest carbon capture and storage (CCS) project currently operating every week from now until 2050 or the largest solar plant every two days or the largest green hydr
Slide 31: Journey for energy, chemicals and resources markets
Journey for energy, chemicals and resources markets Providing expanded opportunities for growth Scale of new markets unlike any we’ve 3 seen before We are well positioned for growth as we provide solutions to support our existing and emerging customers on their sustainability journeys. Balanced tran
Slide 32: Our sales pipeline continues to grow across all sectors
Our sales pipeline1 continues to grow across all sectors We are pleased with the level of work we’re winning in line with our expectations Global sales pipeline has increased since H1 FY21 Market themes • Including both traditional and sustainability projects Energy • Major hydrocarbons companies co
Slide 33: We are actively targeting sustainability to be the largest proportion of future revenue
1 Sustainability is a growing part of our business1,2 at more favorable gross margins3 2 Our traditional business continues to be an important part of our future and sustainability provides opportunities for We are actively growth beyond this targeting sustainability to be 3 We are pleased with the
Slide 34: Sustainability pathways
We have a clear strategy for growth These are our sustainability pathways 1. Decarbonization 2. Resource stewardship Carbon management Bio-based materials Sulphur recovery Low carbon fuels Decarbonization & feedstocks Metals recovery Water stewardship infrastructure Energy efficiency Nuclear energy
Slide 35: Growth opportunities in our sustainability pathways
Growth opportunities in our sustainability pathways Decarbonization Resource stewardship Sustainability pathway 1 Sustainability pathway 2 Total global decarbonization investment equates to over USD1.5t per year. For water stewardship alone, the global market size is estimated to be Worley addressab
Slide 36: Sustainability opportunities have a more favorable gross margin
Sustainability opportunities have a more favorable gross margin1 Our target sustainability opportunities are: Our results are in line with our expectations: • Technically complex involving technology • In H1 FY21 we delivered $1.2b sustainability integration, modification to existing facilities, rev
Slide 37: Summary
• We remain on track to deliver an improved H2 FY21 • Our actions have set us up for the future • We’re delivering in line with our expectations as we accelerate our strategic transformation Summary • Sustainability1 is already a growing part of our business with more favorable gross margins2 • We a
Slide 38: Sustainability pathways
Sustainability pathways Mark Trueman, Executive Group Director - Growth Worley Investor Day 2 June 2021 38
Slide 39: Market update
Upstream & Power Midstream Market update Mining, Minerals Refining & & Metals Chemicals Worley Investor Day 2 June 2021 39
Slide 40: Sustainability domains: our evolution to pathways
Sustainability domains: our evolution to ‘pathways’ Sustainability domain for Worley Focus themes Water Sustainable Environmental Energy transition Circular economy Restoration Social value stewardship infrastructure management Resource Asset Environment Decarbonization stewardship sustainability an
Slide 41: Decarbonization
Decarbonization Sustainability Pathway 1 Decarbonization Carbon management Low carbon fuels & feedstocks Decarbonization infrastructure Energy efficiency Nuclear energy & electrification Renewable energy Energy transition materials Highlighting today: Our experience: Circular economy – low carbon fu
Slide 42: Low carbon fuels
Low carbon fuels Circular economy “ As a leader in the supply of sustainable aviation fuel our drop-in fuel gives the same performance as traditional jet fuel, but with around an 80% Market overview reduction in carbon emissions over its lifecycle compared to the fuel it replaces. USD265b USD45b Inv
Slide 43: Velocys
Decarbonization 60+ million 640,000 80,000 litres of sustainable jet fuel tonnes of waste per year tonnes of estimated net CO2 and naphtha per year diverted from landfills saved every year 70% reduction in GHG emissions 90% reduction in Velocys particulate matter Low-carbon fuels The first waste-to-
Slide 44: Energy Transition Materials
Energy Transition “ Today, the data shows a looming mismatch between Materials the world’s strengthened climate ambitions and the availability of critical minerals that are essential to Market overview realising those ambitions. IEA executive director, Faith Birol USD1.7t USD255b cumulative investme
Slide 45: Hu'u Project
Decarbonization Hu’u Project 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 temperature of the resourc
Slide 46: Offshore wind
Offshore wind “ Success in this round marks bp’s entry into one of the world’s best offshore wind markets. This is both important progress towards bp’s transformation into Market overview an integrated energy company as well as a significant $480b $65b next step in our long history in the UK. Capex
Slide 47: MMA Offshore
Decarbonization MMA Offshore Building a partnership for offshore wind Bringing operations and maintenance capabilities into new emerging markets within Asia Taiwan’s offshore wind market alone is forecasting a 8 x capacity growth to more than 10 GW between 2021 and 2030 (BNEF), providing significant
Slide 48: Low-carbon hydrogen
Low-carbon hydrogen “ This project will be a stepping-stone for the circular economy. With the support of the EU and the region and backed by an experienced technology supplier and customer Market overview agreements, we are ready to move to the next phase of implementing Europe’s first large-scale
Slide 49: Shell
Decarbonization Shell Low-carbon Hydrogen Largest commercial green hydrogen production facility in the world Worley has been awarded an early engineering services contract to support the development of a new 200 MW electrolysis-based hydrogen plant As a first-of-its-kind project on this scale, the f
Slide 50: Carbon capture, utilization and storage
Carbon capture, utilization and storage “ The triple effect of increased tax incentives, substantially higher ESG focus and improving cost has generated a wave of CCS projects with an Market overview expected average growth of more than 150% over USD12b the next three years. USD100b Estimated invest
Slide 51: Drax
Decarbonization Drax CCUS Our work for Drax has the potential to capture and store a combined total of 8 million tonnes of carbon dioxide a year That is equivalent to taking 1.5 million passenger cars off the road Image courtesy of Drax Worley WorleyInvestor InvestorDay Day22June June2021 2021 51 51
Slide 52: Carbon Risk Index Service (ACRIS)
Decarbonization Carbon Risk Index Service (ACRIS) ACRIS is a web-enabled suite of tools focused on the ammonia, aluminium and refining industries. It provides subscribers the tools and insight they need to manage risks and opportunities associated with carbon emissions. The service is based on Worle
Slide 53: Resource stewardship
Resource stewardship Sustainability Pathway 2 Resource Stewardship Bio-based materials Sulphur recovery Metals recovery Water stewardship Plastics recovery Highlighting today: Water stewardship Our experience: 1,200+ Sulphur recovery units worldwide Plastics recovery >60% Of global sulphur recovery
Slide 54: Plastics recovery
Plastics recovery “ Advanced recycling has a crucial role to play in the current recycling mix as it can capture value from plastic waste streams traditionally ignored or Market overview discarded. Sabic $64b $2.7b Capex to meet required Annual addressable 2050 recovery capacity1 market revenue pote
Slide 55: SABIC Plastic Energy
Resource stewardship SABIC Plastic Energy Transforming plastic waste into circular polymers in the Netherlands This new advanced recycling unit will upscale the production of circular polymers significantly. This will provide customers with greater access to more sustainable materials, which are rec
Slide 56: Sulphur Recovery
Sulphur Recovery “ Many gas reserves are richer in hydrogen sulphide (H2S) and, therefore, sulphur. At the same time, tighter standards mean gas plants need to achieve deeper levels of sulphur removal in order to meet their environmental mandate. Sulphur recovery Market overview efficiencies of over
Slide 57: Taking steps to achieve zero sulphur emissions with COOL Separations
Resource stewardship Taking steps to achieve zero sulphur emissions with COOL Separations Comprimo, Worley's sulphur technology business, has acquired the rights to license the Eutectic Freeze Crystallization (EFC) Technology from COOL Separations EFC produces clean water from industrial wastewater
Slide 58: Water stewardship
Water stewardship “ “Water scarcity is already having an impact on energy production and reliability; further constraints may call into question the physical, economic and Market overview environmental viability of future projects. $400b $20b IEA Global Capex and Opex Addressable market2 spend1 (exc
Slide 59: Shaping Yanacocha's future water strategy
Resource stewardship Shaping Yanacocha’s future water strategy We are supporting Minera Yanacocha S.R.L. (owned by Newmont, Minas Buenaventura, and Sumitomo Corp.) plot their water strategy as this world-class gold mine in Peru transitions to next generation mining and production over the next decad
Slide 60: Asset sustainability
Asset sustainability Sustainability Pathway 3 Asset Sustainability Asset performance Decommissioning Climate change adaptation & restoration Sustainable design Highlighting today: Our experience: Decommissioning and restoration 25,000+ projects over 40 years 300+ consultants (Advisian) 1,200+ engine
Slide 61: Decommissioning and Restoration
Decommissioning and Restoration “ Coal phase-out policies, and the rise of renewables is estimated to lead to cumulative retirement of 3,324 GW of energy assets under Sustainable Development Market overview Scenario. Source: IEA World Energy Outlook 2020 $70b $5b Estimated global spend Annual addres
Slide 62: Kuwait Oil Company & United Nations
Asset sustainability Kuwait Oil Company & United Nations Managing the largest remediation program in the world The UN funded Kuwait Environmental Remediation Program (KERP) involves clean up of 26 million m3 of crude oil contaminated soils and aims to restore the land to its natural state. The proje
Slide 63: Environment and society
Environment and society Sustainability Pathway 4 Environment & Society Sustainability advisory Safety & risk Environmental management Geosciences Social performance Remediation & liability management Policy & regulatory Highlighting today: Environment, society and sustainability Our experience: 30,0
Slide 64: Environment, society and sustainability
Environment, society and sustainability “ We know that climate risk is investment risk. We also believe the climate transition presents a historic investment opportunity. Market overview Blackrock $60b 50%- 75% Global environment and is readily accessible2 society consulting market Total assets usin
Slide 65: The Great Lakes Wind Study
Environment and society The Great Lakes Wind Study Assessing the feasibility of developing wind energy in the Great Lakes for New York State Energy Research and Development Authority Advisian is partnering with the National Renewable Energy Laboratory and The Brattle Group to determine if the Great
Slide 66: We provide knowledge, IP and technology solutions at scale
We provide knowledge, intellectual property and technology solutions at scale to address the world’s complex sustainability challenges Worley WorleyInvestor InvestorDay Day22June June2021 2021 66 66
Slide 67: Summary
• Our sustainability pathways provide the lens through which we see the opportunities for growth • We are actively targeting sustainability to be Summary the largest proportion of our future revenue • We have extensive experience across our sustainability pathways • We will continue to evaluate our
Slide 68: Sustainability in action
Sustainability in action Americas and EMEA & APAC Worley Investor Day 2 June 2021 68
Slide 69: Americas
Americas Karen Sobel | Group President, Americas Worley Investor Day 2 June 2021 69
Slide 70: Leadership focus on sustainability of our people, business and growth
Leadership focus on sustainability of our people, our business and growth of sustainability pathways. Markets are bouncing back with increased activity and stronger earnings Delivering excellence in project execution; EPFC is a differentiator Worley Investor Day 2 June 2021 70
Slide 71: Strategic focus areas in Americas
Strategic focus areas in Americas Low carbon fuels CCUS Plastics recovery Energy transition materials Solar/DES Offshore wind Hydrogen Worley WorleyInvestor InvestorDay Day22June June2021 2021 71 71
Slide 72: 1PointFive
1PointFive CCUS First commercial scale development using of Carbon Engineering’s Direct Air Capture (DAC) technology The technology involves the removal of CO2 directly from the atmosphere When complete, each unit will be capable of extracting one million metric tons of atmospheric CO2 annually Worl
Slide 73: Phillips 66
Phillips 66 Renewable fuels 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 litres per year of renewable transportation fuels Worley WorleyInvestor InvestorDay Day22June June2021 2021 73 73
Slide 74: Chevron
Chevron Offshore Subsea tieback development for Gulf of Mexico • Brownfield modification services for subsea and topsides design (water depth 2,006 m) • Supporting Chevron’s objective of executing capital projects safely and at a low incremental cost of development Worley WorleyInvestor InvestorDay
Slide 75: EMEA & APAC
EMEA & APAC Vinayak Pai | Group President, EMEA & APAC Worley Investor Day 2 June 2021 75
Slide 76: Business fundamentals are strong in both major projects and base load
Business fundamentals are strong in both our major projects and base load Our resilient people have successfully navigated market uncertainties, we’ve held volume Strategic commitments on sustainability are well embedded. Worley Investor Day 2 June 2021 76
Slide 77: Strategic focus areas in EMEA and APAC
Strategic focus areas in EMEA and APAC Regulatory support Wind Hydrogen CCUS Low carbon fuels Circular economy Worley WorleyInvestor InvestorDay Day22June June2021 2021 77 77
Slide 78: Liquid Wind
Liquid Wind Low carbon fuels and feedstocks First commercial scale eMethanol facility for Liquid Wind “ Worley has extensive, relevant experience and we are confident it will be a valuable partner in developing standardized and replicable eMethanol facilities Claes Fredriksson, CEO and Founder at Li
Slide 79: SIMS Resource Renewal program
SIMS Resource Renewal program Converting recycled materials into Syngas and other valuable chemical feedstocks SIMS Resource Renewal program is looking to develop similar facilities in US, UK and Europe Worley Investor Day 2 June 2021 79
Slide 80: Worley Investor Day 2 June 2021
& Worley Investor Day 2 June 2021 80
Slide 81: Supplementary information
Supplementary information Worley Investor Day 2 June 2021 81
Slide 82: Glossary
Glossary $, $m Australian dollars unless otherwise stated, Australian millions of dollars FY – Financial Year ACSI - Australian Council of Superannuation Investors Limited GDP - Gross domestic product APAC - Region encompassing Australia, Pacific, Asia and China GHG - Greenhouse Gas Emissions ASX –
Slide 83: Backlog definition
Backlog definition Backlog is the total dollar value of the amount of revenues expected to be recorded as a result of work performed under contracts or purchase/work orders already awarded to the Group. With respect to discrete projects an amount is included for the work expected to be received in t
Slide 84: Speaker profiles
Speaker profiles Chris Ashton Tom Honan Chief Executive Officer Chief Financial Officer Chris was appointed Chief Executive Officer and Managing Director on Joining Worley on 1 December 2015, Tom is accountable for finance, information 24 February 2020. He joined Worley in 1998 and has held many lea
Slide 85: Speaker profiles
Speaker profiles Karen Sobel Vinayak Pai Group President, Americas Group President, EMEA & APAC Karen is responsible for all Worley businesses in the Americas which includes a Vinayak is responsible for all Worley businesses in the EMEA and APAC regions. large portion of the construction, maintenanc
Slide 86: Speaker profiles
Speaker profiles Mark Trueman Veréna Preston Executive Group Director, Growth Group Director, Investor Relations Mark is responsible for Growth covering strategy, sales, sector leadership, Veréna is responsible for Investor Relations. Prior to this she led Internal Audit for technology ventures and
Slide 87: Registered office
Registered office: Level 17, 141 Walker Street North Sydney NSW 2060 Australia T: +61 2 8923 6866 E: investor.relations@worley.com Worley Limited ABN 17 096 090 158 worley.com