Slide 1: Delivering a more sustainable world
Delivering a more sustainable world Full year results 2023
Slide 2: Stronger together
Stronger together This piece represents Worley's values and connection to the land 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 op
Slide 3: Disclaimer
Disclaimer The information in this presentation about Worley Limited, the entities it controls (Group) and its activities is current as at 23 August 2023 and is in summary form and is not necessarily complete. It should be read together with the Company’s Appendix 4E, Annual Report for the full-year
Slide 4: Agenda
Agenda Business performance 1 and strategic progress Chris Ashton 2 Full year results 2023 Tiernan O’Rourke 3 Market analysis and outlook Chris Ashton Worley - Full year results 2023 4
Slide 5: Key messages
Key messages 21% Aggregated revenue 1 vs FY22 We’ve delivered strong growth and momentum continues to build. 41% 2 We continue to execute our strategy and have a clear path to increasing revenue, earnings and Sustainability- margins in the near and medium term. related1 revenue vs FY22 3 As a global
Slide 6: Business performance and strategic progress
Business performance and strategic progress Chris Ashton, Chief Executive Officer Worley - Full year results 2023 6
Slide 7: We support healthy lives, respect and well-being
We support healthy lives, respect and well-being We energize, empower and We value inclusion, diversity develop our people and respect Investing in our people Our highest Safety and respect at work • Our new Learning at Worley online platform offers priority • We embedded psychosocial factors into o
Slide 8: Delivering on our ESG business commitments
FY23 result Delivering on our ESG business commitments Environmental 64% 44,700 DJSI Reduction from Scope 1 and Scope 2 GHG Sustainability-related learning accreditations1 Dow Jones emissions baseline (FY20) Sustainability Index up 10,500 from FY22 recognized as a global leader improved by 14% from
Slide 9: FY23 result
FY23 result 25c per Results delivered indicative of increased momentum share Final dividend declared Aggregated $10.9b $4.5b FY23 10.9 FY23 revenue 4.5 +21% FY22 9.1 +41% FY22 3.2 $b $b aggregated revenue in sustainability-related1 work Underlying $635m 6.5% FY23 635 FY23 6.5 EBITA FY22 547 6.4 FY22
Slide 10: Measuring our strategic performance
Measuring our strategic performance Our deliberate actions have driven our strong result and we’re set up for further upside What we said we’d deliver over time What we’ve achieved to date • Growing at a faster rate than overall E,C,R market1 driven by Volume and earnings growth sustainability-relat
Slide 11: Our leading indicators show continued growth
Our leading indicators show continued growth Factored sales pipeline1 Rolling 12-month bookings3 Backlog4 Venture Global in pipeline and backlog 42% 79% Doubled 12% 49% CAGR CAGR $13.3b Sustainability- CAGR CAGR The majority of this integrated Total business Sustainability- wins in FY23 vs
Slide 12: We're continuing to benefit from growing customer investment in sustainability
We’re continuing to benefit from growing customer investment in sustainability We believe our Characteristics of our top 20 customers competitive advantage is: We’re a trusted partner and global 85% ~50% Changing leader of high value solutions to the energy, chemicals and resources markets mix of to
Slide 13: Strategic wins in FY23
Strategic wins in FY23 1 2 3 4 5 6 Groundbreaking on Supporting Venture Supporting Shell’s Enabling emerging Battery chemicals Supporting Anglo largest commercial Global on their Calcasieu global projects through technologies in solar facility for a battery American’s Woodsmith scale direct air capt
Slide 14: Supporting Venture Global on its Calcasieu Pass 2 LNG terminal
Supporting Venture Global on its Calcasieu Pass 2 LNG terminal Low-carbon energy | Integrated gas Venture Global | US We’ve agreed substantive terms for a reimbursable engineering, procurement and construction (EPC) agreement for Venture Global’s Calcasieu Pass 2 LNG export facility in Louisiana, US
Slide 15: Full Year Results 2023
Full Year Results 2023 Tiernan O’Rourke, Chief Financial Officer Worley - Full year results 2023 15
Slide 16: Key financials
Key financials FY23 FY22 vs. FY22 Aggregated revenue $10,928m $9,065m 21% Aggregated revenue excl. procurement $9,737m $8,566m 14% • Procurement revenue has grown $635m $547m 16% Underlying EBITA 2.4x on pcp due to project mix. Underlying EBITA % on revenue excl. procurement 6.5% 6.4% 0.1pp • Statut
Slide 17: Drivers of EBITA margin change
Drivers of EBITA margin change • Professional services in our FY22 to FY23 (proforma1 basis) business mix increased, driving increased margin over the second half. • FY23 impacted by timing of costs in relation to software and our investment into automation and technology, this is a non-recurring im
Slide 18: Higher margins flow from our pipeline into earnings over time
Higher margins flow from our pipeline into earnings over time We’re seeing margin growth in …which is converting into …this gives us confidence that margins our factored sales pipeline1… improved backlog2 margin… delivered will continue to improve over time. The growth trend in our factored sales pi
Slide 19: Demonstrating progress on our margin expansion
Demonstrating progress on our margin expansion Our actions are creating a runway for continued margin upside in the medium term What we said New work being won Operational Asset efficiency and we’d deliver at higher margins leverage business productivity over time We expand the value we bring to our
Slide 20: Our $100m strategic investment
Our $100m strategic investment $37m investment in FY23 1 We’ve developed differentiated solutions • 20% on market assessments and planning • 45% on capability building through strategic hires, agile teams, industry and customer partnerships H • 20% on digital enablement and new solutions • 15% on de
Slide 21: Capital management plan
Capital management plan Our capital management position supports our growth plans with good liquidity, the maintenance of strong credit ratings and access to well-priced debt capital 95% 70 Operating productivity Capital productivity 68 Target range Target range 90% 66 1 FY23 operating cash flow 2 6
Slide 22: Market analysis and outlook
Market analysis and outlook Chris Ashton, Chief Executive Officer Worley - Full year results 2022 22 Worley - Full Worley yearyear - Full results 2023 results 2023 22 22
Slide 23: We're a different company today and see a future of sustained growth
We’re a different company today and see a future of sustained growth Worley Worley Worley on 2021 today1 track ambition 5% 12% Revenue by Professional Professional Greater focus towards 31% professional services and business type Construction 20% Construction 64% Procurement • Pivot towards 68% Proc
Slide 24: Market update
Market update Market analysis3 15% Capital investment by our key customers is growing at a faster rate compared with the total energy, chemicals and resources 10% New and emerging (ECR) market due to our focus on customers and major projects sustainability-related investment. 5% generating further u
Slide 25: Group outlook
Group outlook 1 We expect FY24 aggregated revenue excluding procurement to grow (on FY23 proforma) as new and emerging customers and major projects generate further upside. We also expect procurement volumes to grow further on FY23. We expect the underlying EBITA margin (excluding the impact of proc
Slide 26: Key messages
Key messages 21% Aggregated revenue 1 vs FY22 We’ve delivered strong growth and momentum continues to build. 41% 2 We continue to execute our strategy and have a clear path to increasing revenue, earnings and Sustainability- margins in the near and medium term. related1 revenue vs FY22 3 As a global
Slide 27: Worley - Full year results 2023
& Worley - Full year results 2023 27
Slide 28: Supplementary information
Supplementary information Worley - Full year results 2023 28
Slide 29: Delivering our ambition
Delivering our ambition Our ambition FY23 achievements demonstrating we are on track Our people • Launched our peer-to-peer recognition program, Appreciate. Over 32,000 recognitions to date. We energize and • Launched our new eLearning platform in February 23, with over 26,200 learning modules compl
Slide 30: Delivering our ambition (cont.)
Delivering our ambition (cont.) Operational priorities FY23 achievements demonstrating we are on track Operational excellence • Utilization above target (87%+). Quality of earnings, • 16% growth in GID hours; GID headcount up 23% from FY22. utilization targets, resource & working • 63 days DSO, rema
Slide 31: Our value proposition
Our value proposition Factored sales Backlog Aggregated pipeline1,2 revenue Global leader in Total business 42% 12% 8% energy, chemicals and is growing CAGR3 CAGR CAGR resources markets Jun-21 Jun-23 Jun-21 Jun-23 Jun-21 Jun-23 Factored sales Backlog Aggregated Increasing proportion pipeline1,2
Slide 32: Our diversified business
Our diversified business Sector aggregated Traditional / sustainability-related1 Sustainability-related1 work A global leader delivering knowledge- revenue (%) work aggregated revenue (%) aggregated revenue (%) based project and asset services Low-Carbon Low Carbon • Leading position in energy, 19%
Slide 33: How we define our sustainability-related work
How we define our sustainability-related work We define our sustainability-related business through four pathways: asset sustainability; resource stewardship; decarbonization; and environment & society. This is calculated based on two measures: 1. The work we conduct in relation to the following mar
Slide 34: Sustainability-related work revenue and factored sales pipeline
Sustainability-related1 work revenue and factored sales pipeline2 Decarbonization Resource stewardship 71% 7% 50% Other 5% Revenue % Revenue % 38% decarbonization 5% 4% 4% 4% 30% 23% 26% Other decarbonization 46% Integrated gas 22% 24% 12% 9% 10% Integrated gas FY21 FY22 FY23 Jul-21 Jul-22 Jul-23 FY
Slide 35: Low-carbon hydrogen
Number of wins in different project phases for sustainability- related1 work FY23 as at 30-June-23 Sustainability-related1 The fan depicts the work we do across all phases within our of our sustainability-related sub- projects are increasing sectors. As projects progress through later phases the pro
Slide 36: Reconciliation of statutory to underlying results
Reconciliation of Reconciliation of statutory results to H1 FY23 H2 FY23 FY23 FY22 underlying results ($m) ($m) ($m) ($m) Statutory result (NPAT for the Group) (96) 142 46 177 statutory to underlying Add: Net finance costs 48 62 110 60 results adjusted for non-trading items Add: Amortization of acqu
Slide 37: Segment EBITA results
FY23 FY22 vs. FY22 Segment Aggregated revenue ($m) Americas 10,928 4,846 9,065 4,187 20.6% 15.7% EBITA results EMEA 4,023 3,168 27.0% By region APAC 2,059 1,710 20.4% Segment EBITA ($m) 848 735 15.4% • Americas increase in EBITA was driven by a strong H2 with a ramp up of key projects and improved m
Slide 38: Segment results H1 FY23 vs H2 FY23
H2 FY23 H1 FY23 vs. H1 FY23 Aggregated revenue ($m) 5,726 5,202 10.1% Segment results Americas 2,454 2,392 2.6% H1 FY23 vs H2 FY23 EMEA 2,177 1,846 17.9% By region APAC 1,095 964 13.6% Segment EBITA ($m) 457 391 16.9% • Americas increase in EBITA was delivered by Americas 169 128 32.0% ramp up of ke
Slide 39: Segment results
Segment results By region Americas EMEA APAC TOTAL FY23 FY22 vs. FY22 FY23 FY22 vs. FY22 FY23 FY22 vs. FY22 FY23 FY22 vs. FY22 Aggregated revenue ($m) 4,846 4,187 16% 4,023 3,168 27% 2,059 1,710 20% 10,928 9,065 21% Professional services1 2,203 1,860 18% 2,578 2,300 12% 1,952 1,600 22% 6,733 5,760 1
Slide 40: Segment EBITA
FY23 FY22 vs. FY22 Aggregated revenue ($m) 10,928 9,065 20.6% Segment EBITA Energy 5,192 4,477 16.0% Chemicals 3,645 3,308 10.2% By sector Resources 2,091 1,280 63.4% Segment EBITA ($m) 848 735 15.4% • Energy sector has grown, benefiting from market Energy 360 327 10.1% growth due to global energy s
Slide 41: Proforma information
Proforma information Worley Group results adjusted to exclude divested North American turnaround and maintenance business Group Metrics H1 FY22 H2 FY22 FY22 H1 FY23 H2 FY23 FY23 Professional Services1 2,774 2,986 5,760 3,061 3,672 6,733 Construction & Fabrication 836 900 1,736 992 943 1,935 Procurem
Slide 42: Proforma information
Proforma information Worley Group results adjusted to exclude divested North American turnaround and maintenance business Segment Information 1 H1 FY22 H2 FY22 FY22 H1 FY23 H2 FY23 FY23 Aggregated Revenue Americas 1,453 1,664 3,117 1,789 1,988 3,777 Segment EBITA Americas 96 144 240 114 153 267 Segm
Slide 43: Margin profile
Margin profile Underlying EBITA % Underlying EBITA $m 6.8% 6.5% 6.4% 6.1% 6.1% 5.8% 726 635 606 547 516 6.5% 6.3% 6.0% 6.1% Proforma 463 5.3% 5.7% 5.4% 5.8% 360 352 337 296 283 H2 256 FY20 FY21 FY22 FY23 366 H1 207 251 233 283 269 Underlying EBITA % (excl procurement) 7.3% 6.9% 7.3% 7.0% 6.5% 6.6% F
Slide 44: Calculation of EBITA% excluding procurement
H1 FY23 H2 FY23 FY23 Calculation of EBITA% Aggregated revenue ($m) 5,202 5,726 10,928 excluding procurement Growth rate on pcp 21% EBITA ($m) 283 352 635 Underlying Underlying EBITA Growth rate on pcp 16% EBITA margin = excluding aggregated revenue – EBITA% 5.4% 6.1% 5.8% procurement procurement rev
Slide 45: Foreign exchange
Foreign exchange Impact total EBITA (A$m) 9 5 3 2 1 3 A $m (1) (4) (11) USD US Pegged CAD EGP MXN MAD NOK ARS Other Group EBITA FX Translation impact 5 7 A $m (57) FY21 FY22 FY23 Worley - Full year results 2023 45
Slide 46: Cash collection
FY23 FY22 ($m) ($m) Cash collection EBITA2 585 449 Add: Depreciation, amortization and significant 219 214 non-cash items Cash conversion was 86.6%, adjusted to include Less: Interest and tax paid (158) (105) working capital recovery for the 1-month post- completion of the North American turnaround
Slide 47: Balance sheet and liquidity metrics
as at 30-Jun-23 as at 30-Jun-22 Balance sheet and Average cost of debt2 3.9% 1.9% liquidity metrics Average maturity (years) 3.7 2.2 Interest cover (times) 7.2x 10.6x • Gearing at levels supportive of future growth Net debt, $m (statutory definition) 1,830 1,662 • Average maturity of debt is 3.72 ye
Slide 48: Capital management: Debt maturity profile
Debt Maturity Profile as at 30 June 2023 Capital management: 1,400 Improved funding and maturity in FY23 1,200 • In May, Worley refinanced and extended its Syndicated Bank Loan Facilities of US$ 1.2b. The facilities comprise 1,000 a US$ 400m term loan maturing in May 2027 and a US$ 800m revolving mu
Slide 49: Headcount
Headcount: Worley global headcount • Utilization remains above target. 50,000 • Professional services staff headcount is 40,000 41,700 at 30 June 23, up 15% on FY22. 36,200 38,200 Staff 30,000 36,000 33,800 34,500 41,700 • Global Integrated Delivery (GID) headcount is 20,000 Craft Note 1 4,900 at 30
Slide 50: Backlog increasing
Backlog1,2 increasing 14.1 14.1 13.3 13.3 12.4 12.4 2.8 3.6 1.7 7.1 7.7 4.0 3.0 2.8 8.3 6.7 7.5 7.7 6.4 6.2 4.1 at Jun-22 at Dec-22 at Jun-23 at Jun-22 at Dec-22 at Jun-23 Energy Chemicals Resources Traditional Sustainability- work related3 work 1.7 Americas 3.6 Energy 4.9 EMEA 7.7 Chemicals 7.5 APA
Slide 51: Glossary
Glossary $, $m, $b – Australian dollars unless otherwise stated, Australian FY – Financial Year millions of dollars, Australian billions of dollars GDP - Gross Domestic Product APAC - Australia, Pacific, Asia & China GID - Global Integrated Delivery B2B - Business to Business GST - Goods and Service
Slide 52: 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. Backlog is not in constant currency, and is reported using the year end exchange rates. With resp
Slide 53: Rules for items excluded from underlying results
Rules for items excluded from underlying results Worley has guidelines for determining items to be excluded from non IFRS profit measures, such as underlying NPATA and underlying EBITA. These guidelines are for determining underlying profit for internal management reporting and external reporting pu
Slide 54: Fixed price vs reimbursable contract types
Fixed price vs reimbursable contract types • Reimbursable Contracts (~80% of our revenue): • Contracts based on reimbursement of reasonable and allowable actual costs plus agreed profits including incentives, partial/fixed fee in accordance with the contract terms and conditions. • Fixed Price Contr
Slide 55: Registered office
Registered office: Level 17, 141 Walker Street North Sydney NSW 2060 Australia T: +61 2 8923 6866 E: investor.relations@worley.com E: media.relations@worley.com Worley Limited ABN 17 096 090 158 worley.com Worley - Full year results 2023 55