Slide 1: Delivering a more sustainable world
Delivering a more sustainable world Full year results 2021 Chris Ashton, Chief Executive Officer
Slide 2: Bili Yilam: Bluetongues Home
Bili Yilam: Bluetongues Home by Australian Indigenous artist Mick Harding ngargawarendj.com Worley Full Year Results 2021 2
Slide 3: Disclaimer
Disclaimer The information in this presentation about Worley Limited, the entities it controls (Group) and its activities is current as at 25 August 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 and
Slide 4: Agenda
Agenda Business performance Full year results Outlook and strategic progress 2021 Chris Ashton Chris Ashton Charmaine Hopkins Worley Full Year Results 2021 4
Slide 5: Protecting our people
Protecting our people We’re focused on providing a safe work environment for our people while continuing to deliver for our customers • Our processes for managing COVID-19 have helped to keep our people safe and shown our remarkable flexibility • We have advanced tools to promote collaboration, netw
Slide 6: Full year highlights
Image: From ambition to reality; Weaving the threads of net-zero delivery Find out more at www.worley.com/our- thinking/from-ambition-to-reality Full year highlights Worley Full Year Results 2021 6 6
Slide 7: Our strategy is delivering and positions us for long term success
Our strategy is delivering and positions us for long term success Delivered improved Maintained financial Positioned for Delivered progress on earnings in H2 FY21 strength the future our strategy $8,774m $621m $190m 32% Aggregated revenue Underlying operating cash flow ECR acquisition cost synergy t
Slide 8: Results context
Results context Key drivers for EBITA change FY21 H2 FY21 • The COVID-19 pandemic and global economic circumstances • Business has stabilized over the half; we are starting to see activity have impacted demand in our customers’ end markets levels increase with key awards in early phases • The key dr
Slide 9: We've delivered an improved H2 FY21
We’ve delivered an improved H2 FY21 Underlying EBITA1 EBITA margin Underlying operating cash flow m$ 32% % 1.5pp 14% 300 m$ 300 5 150 150 2.5 0 0 0 H1 FY21 H2 FY21 H1 FY21 H2 FY21 H1 FY21 H2 FY21 Aggregated revenue1 Backlog1 Sales pipeline2 Holding 8% 16% 5 b$ b$ Pipeline trend (b$) 15 10 2.5 5 0 0
Slide 10: Backlog is building and sales pipeline increasing
Backlog is building and Backlog ($b) sales pipeline1 increasing 13.5 14.3 13.5 14.3 1.8 Traditional 2.1 3% 5.5 Backlog 5.3 10.5 10.8 • Backlog is $14.3b up from $13.5b at H1 FY21 6.1 7.0 Sustainability • Both traditional and sustainability components are growing 3.0 3.5 17% • Our diversification r
Slide 11: Strategic awards
Strategic awards Sustainability Traditional Strategic partnership Early phase engineering Brownfield solutions contract Battery material plant Licensing agreement for circular economy services for upstream and to Gulf of Mexico asset downstream assets services contract for solvent technology Avantiu
Slide 12: Positioned for the future
Image: From ambition to reality; Weaving the threads of net-zero delivery Find out more at www.worley.com/our- thinking/from-ambition-to-reality Positioned for the future Worley Full Year Results 2021 12 12
Slide 13: Our actions have set the business up for the future
Our actions have Focused and disciplined cash collection set the business Managing headcount while building capability up for the future Increased average debt maturity with sustainability-linked bond Strong capital management: net debt down from FY20 and gearing ratio below target range Cost out pr
Slide 14: We continue to accelerate our transformation strategy
We continue to accelerate our transformation strategy Addressing Establish strong Prudent Capture Continuous climate change financial position capital opportunities in operational through for future growth management sustainability1 improvements strategic action • Industry leading TRCFR • Diversific
Slide 15: 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 Global earnings
Slide 16: We provide our customers with solutions to meet their sustainability commitments
Industry leader Worley achieved an ‘Overperforming’ score Rystad’s Energy Transition score 1 We provide our customers with AAA rated by MSCI for fifth consecutive year 2 solutions to meet their sustainability First Australian company to issue sustainability-linked bond commitments Produced thought l
Slide 17: We operate consistent with our purpose: delivering a more sustainable world
We operate consistent with our purpose: delivering a more sustainable world Caring for our planet We operate in an environmentally responsible manner and provide our customers with Committed to achieve solutions for the world’s complex environmental and sustainability challenges: net-zero Scope 3 em
Slide 18: We're partnering to catalyze breakthrough thinking
We’re partnering to catalyze Shift from “economic” to “social- economic- breakthrough thinking environmental” Broadening value Turning net-zero ambitions into reality Digital platforms The digital Enabling Address uncertainty create the trust to through development accelerant options Requires the de
Slide 19: Delivering on our strategy
Image: From ambition to reality; Weaving the threads of net-zero delivery Find out more at www.worley.com/our- thinking/from-ambition-to-reality Delivering on our strategy Worley Full Year Results 2021 19
Slide 20: Our strategic transformation
Our strategic transformation Our strategy positions us at Solution provider for our customers World-class delivery Safety | Quality | Speed | Efficiency the center of future Work with our customers and other Change the way we work by leveraging investment stakeholders globally and nationally to supp
Slide 21: Sustainability is a growing part of our business
Sustainability is a growing part of our business • Sustainability1 represents $2.8b (32%) of FY21 Energy transition and circular economy Environment, social and water aggregated revenue, up from 29% at H1 FY21 Excluding gas and LNG 30% 25% • Energy transition and circular economy 6.2% opportunities
Slide 22: Sustainability project complexity drives gross margin
Sustainability project complexity drives gross margin • FY21 sustainability projects delivered a more favorable gross margin percentage compared to our other services • We’re targeting complex projects involving technology Gross Margin % delivered in FY21 integration, modification to existing facili
Slide 23: Our traditional business continues to be an important part of our future
Our traditional business continues to be an important part of our future We value our long term relationships with our customers “ We have a strong upstream business delivering significant value for years to come, generating cash for shareholder returns, and also funding our transition.” “ We believ
Slide 24: Our traditional business is a strong foundation from which we will grow
Our traditional business is a strong foundation from which we will grow We’re supporting our customers as they address the magnitude of the transition to a low-carbon future Sustainability Sustainability investment opens new and emerging markets Revenue with existing and new customers We deliver sus
Slide 25: Shell
“ “Working with Shell Canada on its Polaris CCS project reinforces our commitment to helping our customers navigate the energy transition” - Chris Ashton, Chief Executive Officer, Worley Shell Chemicals | Decarbonization Worley awarded an engineering services contract by Shell Canada for a proposed
Slide 26: Chevron
Chevron Energy | Traditional Chevron awards global professional services contract to Worley Worley has been awarded a global contract for early phase engineering services by Chevron. Under the contract, Worley will provide early phase engineering services to global upstream & downstream projects, bo
Slide 27: Syrah Resources
“ “We are delighted to expand our relationship with Syrah and further support Syrah’s production of materials that play an important role in the energy transition. ” - Chris Ashton, Chief Executive Officer, Worley Syrah Resources Resources | Decarbonization Syrah awards services contract for battery
Slide 28: BookraMEG
BookraMEG Chemicals | Traditional A world-class and award-winning petrochemical project in the US The MEGlobal Americas Inc. BookraMEG project in Oyster Creek, Tx is a 750,000-ton facility in that produces monoethylene glycol and diethylene glycol. These are used in some of our everyday products inc
Slide 29: Small modular reactors
“ SMRs are key to meeting the world’s climate change initiatives. This contract positions us in the emerging SMR market and supports achieving a low-carbon future. - Chris Ashton, Chief Executive Officer, Worley Small modular reactors Energy | Decarbonization Confidential customer awards a Services
Slide 30: Market update
Image: From ambition to reality; Weaving the threads of net-zero delivery Find out more at www.worley.com/our- thinking/from-ambition-to-reality Market update Worley Full Year Results 2021 30
Slide 31: The energy, chemicals and resources markets are evolving
The energy, chemicals and resources markets are evolving Providing expanded opportunities for growth Our traditional markets are adapting to change Energy, chemicals and resources markets are an important part of our future as we support our customers navigate significant challenges with sustainabil
Slide 32: The markets we serve
The markets we serve Defining where we do business Energy Chemicals Resources Conventional Chemicals Low carbon energy Resources energy and fuels Combustion energy Integrated gas Chemicals Bulk commodities Midstream infrastructure Renewable energy Low carbon fuels Energy transition materials Offshor
Slide 33: Conventional energy
Conventional energy Sector outlook • Global demand and supply of crude oil remains on course to continue rebalancing this year • According to IEA, global oil demand is set to return to pre- pandemic levels by the end of 2022 • Recent 2021 capital expenditure guidance from oil majors indicates discip
Slide 34: Low carbon energy
Low carbon energy Sector outlook • The energy transition has initiated structural changes in future fuel mix. While the outlook for oil demand is uncertain, gas has a more robust future as the lowest carbon intensity fossil fuel. • Strong growth with material investment in both transmission and dist
Slide 35: Chemicals and fuels
Chemicals and fuels Sector outlook Chemicals: • Global industry demand and profitability has returned to 2019 levels with investment planning and funding reinstated • Chemicals market is integrating energy transition into all investment decisions and committing to reduce energy intensity of feedstoc
Slide 36: Resources
Resources Sector outlook • Miners to benefit from commodity consumption growth, as global recovery continues and many market indicators at multiyear highs • The 2021 capex forecast is up 18% from 2020 (Top 400), as delayed programs resume, and activity ramps-up spurred by strong metal prices (source
Slide 37: We have a clear strategy for growth
We have a clear strategy for growth For FY22, we Sustainability pathways will report sustainability 1. Decarbonization 2. Resource stewardship Carbon management results under Decarbonization Low carbon fuels & feedstocks Bio-based materials Metals recovery Sulphur recovery Water stewardship these pa
Slide 38: Investing for future growth
Investing for future growth We are going to accelerate our strategic transformation by investing in our sustainability pathways, digital enablement and process technology Partnering We will build strategic partnerships to We will develop new capabilities to deliver innovative solutions and new captu
Slide 39: Investment to grow organically
Investment to grow organically We forecast to invest $100m1 over three years to build sustainability competencies organically Sustainability pathways Growth areas Investment Benefits (Examples only) • Capability building through • Accelerated capture of 1. Decarbonization strategic hires sustainabil
Slide 40: Full year result 2021
Image: From ambition to reality; Weaving the threads of net-zero delivery Find out more at www.worley.com/our- thinking/from-ambition-to-reality Full year result 2021 Worley Full Year Results 2021 40 40
Slide 41: Financial headlines
Financial headlines Statutory operating cash flow $533m Compared to $829m in FY20 Cash generation Underlying operating cash flow $621m Compared to $1,028m in FY20 Aggregated revenue $8,774m Compared to $11,249m in FY20 Performance Underlying EBITA $468m Compared to $743m in FY20 Gearing1 21.7% Below
Slide 42: Statutory statement of financial performance
30 June 2021 30 June 2020 For the year ended ($m) ($m) REVENUE AND OTHER INCOME Professional services revenue 5,420 7,350 Procurement revenue 1,411 2,964 Construction and fabrication revenue 2,679 2,720 Other income 10 24 Statutory statement of Interest income Total revenue and other income 6 9,526
Slide 43: Reconciliation of statutory to underlying results
30 June 2021 30 June 2020 For the year ended ($m) ($m) Statutory result (NPAT) 86 171 Reconciliation Transition costs Impact of transformation and restructuring 55 147 of statutory to Payroll restructuring 43 41 underlying results Impairment of property assets 38 51 Onerous contracts and other costs
Slide 44: FY21 key financials
FY21 key financials STATUTORY RESULT FY2021 FY2020 vs. FY2020 Total revenue ($m) 9,526 13,068 (27%) • The COVID-19 pandemic and global economic circumstances have impacted our customers’ end EBITA ($m) 324 498 (35%) markets resulting in delays in capital expenditure and NPATA ($m) 161 252 (36%) proj
Slide 45: Drivers of EBITA change
Drivers of EBITA change Key drivers of net business decline from FY20 Key drivers of net business growth from H1 FY21 • Net business decline of $540m driven by global economic circumstances • Net business growth of $30m despite volume reductions, business mix including the COVID-19 pandemic and FX •
Slide 46: Delivered improved margins in H2 FY21
Delivered improved margins in H2 FY21 Key drivers of business mix change H2 FY21 key drivers of EBITA margin change • Increased proportion of lower-margin construction and fabrication • H2 FY21 margin benefits from cost-out actions delivered in H1 FY21 revenue, which is historically less variable in
Slide 47: Delivering on our cost out programs
Delivering on our cost out programs Recurring savings going forward ECR cost synergies program completed $327m1 of operational savings target delivered Increased Target ✓IT Increased Target ✓Discretionary spend Migration of systems & data complete $350m 1 by Jun 22 Embedded global integrated platfor
Slide 48: Balance sheet metrics
Balance sheet metrics • Strengthened through $621m underlying operating FY2021 FY2020 cash flow (net of procurement) Gearing ratio1 21.7% 22.9% • Gearing well below target band of 25-35% Facility utilization2 64.8% 57.3% Average cost of debt3 1.9% 3.3% • Average maturity of debt is 2.9 years Total l
Slide 49: Cash flow, net debt and balance sheet
Cash flow, net debt and balance sheet Continuing focus Underlying operating cash flow Gearing ratio1, actual % m$ 35% UKIS 1,200 ECR acquisition 30% acquisition 1,000 25% 800 20% 600 15% 400 10% 200 5% Gearing ratio = net debt/net debt + equity - 0% FY17 FY18 FY19 FY20 FY21 FY17 FY18 FY19 FY20 FY21
Slide 50: Capital management
Capital management Strong liquidity position • Issued Australia’s first Sustainability Linked Bond Underlying debt facilities expiry by maturity date under the EMTN program at a coupon of 0.875% 1,400 • Extended average debt maturity to 2.9 years 1,200 • Maintained strong liquidity position post 1,0
Slide 51: Headcount: utilization on target
Headcount: utilization on target • Headcount at 47,700 at 30 June 2021, down 1% on H1 FY21 Worley global headcount • Headcount is 48,000 at 31 July 2021 remaining stable 50,000 • Staff utilization remains above target 40,000 • Managing headcount while building capability remains a Staff 30,000 40,70
Slide 52: Backlog
Backlog For long-term O&M contracts, the • Backlog is up 8%1 at 30 June 2021 vs current run-rate is applied over a 36-month period under our backlog 31 December 2020 definition • Traditional and sustainability components (0.2) (0.1) are growing 0.9 • Growth largely in energy sector and (4.3) America
Slide 53: Americas
Americas Sector aggregated Sustainability Factored sales revenue (%) aggregated revenue (%) pipeline (%) FY21 highlights 74% • Primary focus on health, safety and well-being of our 44% 50% 52% 48% people 26% • Result impacted by COVID-19 with key sites inaccessible 6% and curtailed customer spending
Slide 54: EMEA & APAC
EMEA & APAC Sector aggregated Sustainability Factored sales revenue (%) aggregated revenue (%) pipeline (%) FY21 highlights 32% 63% • Health, safety and well-being of our people is our priority 58% 50% • Result impacted by volume reductions in Middle East and 37% 42% Africa, and ramp down of major p
Slide 55: Summary
Image: From ambition to reality; Weaving the threads of net-zero delivery Find out more at www.worley.com/our- thinking/from-ambition-to-reality Summary Chris Ashton, Chief Executive Officer Worley Full Year Results 2021 55
Slide 56: Summary
Global economic circumstances, including COVID-19 impacted FY21 results • COVID-19 continues to have an impact as different regions and sectors will recover at different rates We’ve delivered an improved underlying EBITA in H2 FY21 • Business has stabilized with activity levels returning on long ter
Slide 57: Group outlook
Group outlook We have seen our business stabilize over H2 FY21 Our traditional business continues to be an with positive indicators in increasing backlog and important part of our future with sustainability factored sales pipeline. We are likely to see a providing a higher rate of future growth at m
Slide 58: Worley Full Year Results 2021
& Worley Full Year Results 2021
Slide 59: Supplementary information
Supplementary information Worley Full Year Results 2021 59
Slide 60: Segment results: by region
Segment results By region FY2021 FY2020 vs. FY 2020 • Americas margin decrease was impacted by Aggregated revenue ($m) 8,774 11,249 (22%) COVID-19 with key sites inaccessible and Americas 3,769 5,490 (31%) curtailed customer spending across the region. EMEA 3,333 3,815 (13%) It was also impacted by
Slide 61: Segment results H1 FY21 vs H2 FY21
Segment results H1 FY21 vs H2 FY21 H2 FY2021 H1 FY2021 vs. HY1 2021 By region Aggregated revenue ($m) 4,276 4,498 (5%) Americas 1,862 1,907 (2%) • Americas continued to see capex discipline by EMEA 1,666 1,667 (0%) customers, although activity levels are APAC 748 924 (19%) returning on long term con
Slide 62: Segment results: by sector
Segment results By sector FY2021 FY2020 vs. FY 2020 • Energy margin decrease was impacted by Aggregated revenue 8,774 11,249 (22%) ($m) project deferrals and site access issues resulting from the global economic Energy 4,394 5,302 (17%) circumstances including the COVID-19 Chemicals 3,250 4,525 (28%
Slide 63: Segment results: by region
Segment results By region Americas EMEA APAC TOTAL FY2021 FY2020 vs. FY 2020 FY2021 FY2020 vs. FY 2020 FY2021 FY2020 vs. FY 2020 FY2021 FY2020 vs. FY 2020 Aggregated revenue 3,769 5,490 (31%) 3,333 3,815 (13%) 1,672 1,944 (14%) 8,774 11,249 (22%) Professional services1 1,758 3,002 (41%) 2,297 2,914
Slide 64: Underlying earnings profile
Underlying earnings profile Group underlying EBITA $m 694 743 468 413 377 H2 313 359 251 261 H1 172 366 335 141 162 207 FY2018 FY2019 FY2019 Pro Forma FY2020 FY2021 Group underlying NPATA $m 432 H2 260 281 182 216 H1 157 164 97 216 85 103 117 FY2018 FY2019 FY2020 FY2021 The modified retrospective ap
Slide 65: Margin profile
Margin profile FY21 Key Operating Indicators • Underlying EBITA margin impacted by Underlying EBITA % change in business mix and rate of volume reduction H1 H2 • Professional services segment margin % 6.8% 6.2% 6.1% 7.2% 6.6% 6.1% Total improved compared to H1 FY21 5.6% 5.3% 4.6% • Higher proportion
Slide 66: Revenue reconciliation
Revenue reconciliation FY2021 ($m) FY2020 ($m) vsFY2020 Revenue and other income 9,526 13,068 (3,542) Less: Procurement revenue at nil margin (including share of revenue from associates) (949) (2,190) 1,241 Plus: Share of revenue from associates 210 393 (183) Less: Pass through revenue at nil margin
Slide 67: EBITA reconciliation
EBITA reconciliation FY2021 ($m) FY2020 ($m) EBITA1 324 498 Impact of acquisitions, comprised of: Transition costs 55 147 Impact of transformation, restructuring, comprised of: Payroll restructuring 43 41 Impairment of property assets 38 51 Onerous contracts, consulting and other costs 63 29 Governm
Slide 68: Cashflow
Cashflow FY2021 ($m) FY2020 ($m) EBITA 324 498 Add: Depreciation, amortization and impairments 290 321 Less: Interest and tax paid (111) (166) Add/(less): Working capital/other 30 176 Net cash inflow from operating activities 533 829 Non recurring costs and income 170 205 International Government su
Slide 69: Cashflow
Cashflow Bridge to cash balance (108) Improved cash collection (13) (62) (17) across the Group 674 (261) (6) (136) 18 (170) 19 101 490 493 Worley Full Year Results 2021 69
Slide 70: Liquidity and debt maturity
Liquidity and debt maturity Liquidity summary $’m Liquidity FY2021 FY2020 Change Loan & overdraft facilities 2,715 3,256 (17%) Less: facilities utilized (1,760) (1,867) 6% Available facilities 955 1,389 (31%) Plus: cash 526 490 7% Total liquidity 1,481 1,879 (21%) Bonding Bonding facilities 1,685 1,
Slide 71: Foreign exchange translation impact
Foreign exchange translation impact Movement in major currencies against AUD (indexed) Average exchange Spot exchange rate Currency rate movement movement BRL 34.9% 2.2% CAD 6.4% (1.1%) CNY 4.8% 0.9% EUR 3.2% 2.7% GBP 4.2% (2.1%) NOK 4.3% (3.3.%) SGD 8.3% 5.0% USD 11.3% 8.5% KZT 19.2% 14.7% AUD $m N
Slide 72: Foreign exchange
Foreign exchange 15 Impact total EBITA 10 A $m 13 5 9 9 5 5 4 3 3 2 2 2 1 0 USD CAD INR KZT MNT NOK BRL ARS COP EUR US Pegged Other 60 Group EBITA FX Translation impact 40 20 (0) 11 5 (8) 0.1 - A $m (20) (58) (40) (60) FY16 FY17 FY18 FY19 FY20 FY21 The modified retrospective approach has been applie
Slide 73: Backlog
Backlog (0.2) 0.6 0.3 0.1 1.9 Americas 13.5 14.3 A#039;B 7.4 EMEA 5.0 APAC 31 Dec 2020 FX Americas EMEA APAC 30 June 2021 (0.2) (0.2) 0.9 0.3 1.8 Energy Chemicals 13.5 14.3 A#039;B 7.0 5.5 Resources 31 Dec 2020 FX Energy Chemicals Resources 30 June 2021 Worley Worley Full Year Results Results 2021 73
Slide 74: Cost Savings Programs
Cost Savings Programs ECR acquisition cost synergy delivery ($m) Operational Savings delivery ($m) Savings delivered 2 3 9 Savings delivered In-period savings carried into run rate 4 In-period savings carried into run rate Savings total Savings total Savings to be delivered Savings to be delivered 2
Slide 75: Details of recurring cost savings in period
Details of recurring cost savings in period Drivers of EBITA Change FY20 to FY21 ($m) Drivers of EBITA Change H1 FY21 to H2 FY21($m) Operational Savings ECR acquisition cost $247m ECR acquisition cost Operational Savings synergies $76m synergies $3m $30m 118 165 30 (58) 134 7 (36) 14 (65) (9) 60 (54
Slide 76: Glossary
Glossary $, $m, $b – Australian dollars unless otherwise stated, Australian millions of HY - Half Year dollars, Australian billions of dollars IEA - International Energy Agency AABS - Australian Accounting Standards Board IFRS - International Financial Reporting Standard APAC - Australia, Pacific, A
Slide 77: 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 78: Speaker profiles
Speaker profiles Chris Ashton Charmaine Hopkins Chief Executive Officer Chief Financial Officer (Interim) Chris was appointed Chief Executive Officer and Managing Director on 24 February 2020. Charmaine was appointed interim Chief Financial Officer on 22 June 2021 and is He joined Worley in 1998 and
Slide 79: 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