Slide 1: Delivering a more sustainable world
Delivering a more sustainable world Full year results 2022
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 Disclaimer This presentation 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 ended 30 June 2022 and other announcements lodged with the Australian Securities Exchange. This presentation contains
Slide 4: Agenda
Agenda 1 2 3 Business Full year performance and results Outlook strategic progress 2022 Chris Ashton Tiernan O’Rourke Chris Ashton Worley - Full year results 2022 4
Slide 5: Key messages
Key messages More professional services 1 imagery required Our results are underpinned by improvements in key metrics and are indicative of increasing investment by our customers in sustainability 2 We’re executing on our strategy, and seeing benefits from our investment in targeted growth areas 3 O
Slide 6: Business performance and strategic progress
Business performance and strategic progress Chris Ashton, Chief Executive Officer Worley - Full year results 2022 6 Worley - Full year results 2022 6
Slide 7: We support healthy lives, respect and wellbeing
We support healthy lives, respect and wellbeing Our highest priority is to keep our people safe and well • Supporting our people as we live with COVID-19 • Helping our people and their families in Ukraine and also through our planned safe withdrawal from Russia We’re focused on developing the right
Slide 8: We're driven by a common purpose
We’re driven by a common purpose… ….delivering a more sustainable world Our values: We value Life | We Rise to the Challenge | We are Stronger together | We Unlock brilliance Our ambition is that we will be recognized globally as the leader in sustainability solutions Our strategy is to be a one-sto
Slide 9: FY22 result
FY22 result Results delivered indicative of increased momentum $9,065m $547m 6.0% 25c per share Aggregated revenue Underlying EBITA Underlying EBITA margin Final dividend declared vs $8,774m in FY21 vs $463m in FY214 vs 5.3% in FY21 FY22 interim and final dividend up 3% on pcp up 18% on pcp 50c per
Slide 10: FY22 result: ESG business commitments
FY22 result Delivering on our ESG business commitments AAA 29% 47% 40,000+ rated by MSCI Scope 1 & 2 emissions reduction Graduates recruited were female of our people trained in data sixth consecutive year at FY22 vs FY21 up from 46% in FY21 privacy rated as a trendsetter for the on track to meet ou
Slide 11: Continued improvement in key metrics
Continued improvement in key metrics half-on-half1 Aggregated revenue Underlying EBITA margin Underlying EBITA excluding strategic investment 5 $b 10% % 0.7pp $m 16% 7 300 4.5 6.5 4 6 250 5.5 3.5 5 3 H2 FY21 H1 FY22 H2 FY22 200 H2 FY21 H1 FY22 H2 FY22 Strategic Investment% EBITA% H2 FY21 H1 FY22 H2
Slide 12: Pipeline, bookings and backlog
Pipeline, bookings and backlog Factored sales pipeline1 Rolling 12 month bookings Backlog2 14.3 15.4 12 10 4.3 67% 3.5 8 23% 56% 57% 47% 6 $b 4 10.8 11.1 13% 3% 53% 44% 6% 2 0 at Jul-21 at Jul-22 at Jul-21 at Jul-22 at Jun-21 at Jun-22 Traditional Sustainability Traditional Sustainability Trad
Slide 13: Delivering our ambition
Delivering our ambition Our ambition FY22 achievements demonstrating we are on track Our people • Well managed voluntary turnover, slightly under the industry average We energize and • Over 233,000 visits to our Learning @Worley website empower our people • Mental health fundamentals training series
Slide 14: Delivering our ambition (cont.)
Delivering our ambition (cont.) Operational priorities FY22 achievements demonstrating we are on track Operational excellence • Utilization above target (87%+) Quality of earnings, • 73% growth in GID hours in FY22 compared to pcp; GID utilization at 12.2%, up from 7.1% at Jun-21 utilization targets
Slide 15: Our strategic portfolio
Our strategic portfolio Our markets span multiple sub-sectors across Energy, Chemicals and Resources Core Transitional Breakthrough markets markets markets & (Strengthen (Extend capabilities and support) high-growth (Create valuable businesses) options) Fertilizers Upstream Combustion Nuclear Resour
Slide 16: Strategic awards
Strategic Strategic wins awards Selected announcements in H2 FY22 Strategic wins in sustainability related work • Agreement on EPC terms with 1PointFive for the first large scale Direct Air ~ $11b Capture facility2 • Greenfield renewable diesel facility for Heartwell, engineering and design wins in
Slide 17: Saudi Aramco gas program
Saudi Aramco gas program Low Carbon Energy | Integrated gas Saudi Aramco | Saudi Arabia Unconventional resources program We’ve been awarded two project management service contracts for Aramco’s unconventional gas program in North and South Arabia and Jafurah. Under the contracts, we’ll provide FEED,
Slide 18: 1PointFive Direct Air Capture
1PointFive Direct Air Capture Low carbon energy | Decarbonization 1PointFive | US Largest commercial scale development using Carbon Engineering’s Direct Air Capture (DAC) technology We’ve completed the front-end engineering and design (FEED) phase for the first DAC facility in the Permian, and have
Slide 19: Hydrogen digital platform and remote demo centre
Hydrogen digital platform and remote demo centre Energy | Decarbonization The Hague | Netherlands Driving towards commercial viability We’ve entered into a collaboration agreement with ABB and IBM to create a digital platform connecting asset, operation and enterprise with an objective of reducing t
Slide 20: Gudai-Darri Phase 1
Gudai-Darri Phase 1 Resources | Traditional Rio Tinto | Australia Moving from early phase into project delivery for greenfield mine This project features an unprecedented deployment of technology innovations, including autonomous trucks, trains and drills, as well as the world’s first autonomous wat
Slide 21: Corpus Christi Polymers project
Corpus Christi Polymers project Petrochemicals | Traditional Corpus Christi Polymers | USA Building an integrated PTA-PET vertical production plant – the largest of its kind in the world We’re providing construction management and general services to help Corpus Christi build a plant capable of prod
Slide 22: Full year results 2022
Full year results 2022 Tiernan O’Rourke, Chief Financial Officer Worley - Full year results 2022 22 Worley - Full year results 2022 22
Slide 23: Financial headlines
Financial headlines Aggregated revenue $9,065m Compared to $8,774m in FY21 Cash generation Americas segment EBITA $271m Compared to $258m in FY215 Performance EMEA & APAC segment EBITA $464m Compared to $354m in FY21 Underlying EBITA $547m Compared to $463m in FY215 Improvement in cash conversion4 d
Slide 24: FY22 key financials
FY22 key financials STATUTORY RESULT FY22 FY21 vs. FY21 Total revenue ($m) 9,705 9,526 2% EBITA ($m) 449 319 41% NPATA ($m) 243 157 55% Dividends (cps) 50 50 - Operating cash flow 316 533 (41%) UNDERLYING RESULT FY22 FY21 vs. FY21 Revenue is higher than prior comparative period Aggregated revenue ($
Slide 25: Drivers of underlying EBITA change
Drivers of underlying EBITA change Margins continue to improve taking into account: EBITA change drivers 5 (4) 24 • Increased H2 FY22 earnings consistent (3) 11 12 with seasonality • Strategic investment in organic growth 296 priorities of $30m for FY22 251 • Net benefits from cost savings programs
Slide 26: Returning to historical levels
$m Underlying EBITA half-on-half 500 H1 FY20 earnings = $366m 400 18% Returning to 300 200 growth in FY221 historical levels 100 0 H1 FY20 H2 FY20 H1 FY21 H2 FY21 H1 FY22 H2 FY22 H1 FY23 H2 FY23 Charts are indicative of growth trend in the $m Aggregated revenue half-on-half near term 8,000 H1 FY20 r
Slide 27: Cost savings initiatives delivering long-term benefits
Cost savings initiatives delivering long-term Providing scalability for the business benefits Savings delivered Target • • Costs incurred in FY22 are $67m Using FY22 as a basis: incremental $361m $375m annualised savings of recurring savings savings of actions taken in FY22 will be a as at June 2022
Slide 28: New operating models and solutions will drive incremental future earnings
New operating models and solutions will drive incremental future earnings New operating models Sustainability solutions Technology & Digital solutions Gross margin excluding procurement% FY22 Revenue FY22 Revenue Backlog Traditional Sustainability • Our thought-leadership with Princeton • We deploy
Slide 29: Our $100m strategic investment
Our $100m strategic investment Stood up 8 Targeted global growth units2 supported by Investment focus for FY22 strategic hires Investment to date • 30% on market assessments and planning $30m • 40% spent on capability building through strategic hires and agile teams Investment opex1 in FY22 Addressa
Slide 30: We're targeting growth areas and making progress
We’re targeting growth areas and making progress towards our ambition Growth in pipeline Selected growth Addressable Value of wins in Our proportion of sustainability revenue5 since our strategic area1 market (FY25)2 FY22 by revenue4 80% focus3 70% CCUS $3b 80% $84m 60% 50% Low carbon 40% $3b 80% $8
Slide 31: Outlook
Outlook Chris Ashton, Chief Executive Officer Worley - Full year results 2022 31 Worley - Full year results 2022 31
Slide 32: We're well positioned to meet the opportunities and challenges
We’re well positioned to meet the opportunities and challenges of the current market Opportunities which will drive incremental revenue, EBITA and margin growth in the short to medium term Decade Our customers are investing in their existing We’re well positioned across high growth markets of action
Slide 33: Market update
Market update Weighted average growth in FY23 for our High capex investment growth rates are expected to continue into the medium term addressable market across Charts show rate of projected cumulative increase in capex investment in our markets by calendar year from a 2021 baseline1 all sectors is
Slide 34: Group outlook
Group outlook We are well positioned to meet the opportunities and We expect our average FY22 underlying EBITA margin challenges of the current market. The geopolitical (excluding the impact of procurement) to be sustained environment is elevating the need for energy into FY23. independence and secu
Slide 35: Key messages
Key messages More professional services 1 imagery required Our results are underpinned by improvements in key metrics and are indicative of increasing investment by our customers in sustainability 2 We’re executing on our strategy, and seeing benefits from our investment in targeted growth areas 3 O
Slide 36: Worley - Full year results 2022
& Worley - Full year results 2022 36
Slide 37: Supplementary information
Supplementary information Worley - Full year results 2022 37 Worley - Full year results 2022 37
Slide 38: Our diversified business
Our diversified business Sector aggregated Traditional / sustainability Sustainability aggregated Global leader delivering revenue (%) aggregated revenue (%) revenue (%) knowledge-based project Traditional Low-Carbon and asset services 14% 14% Low Carbon Energy Energy 13% Energy 31% Traditional 21%
Slide 39: Americas
Americas Sector aggregated revenue (%) Sustainability aggregated revenue (%) Highlights 74% • Continued focus on health, safety and wellbeing of our people, and building an 45% inclusive environment 49% $4.2b $4.2b • Starting to see growth in sustainability project wins, especially in offshore wind,
Slide 40: EMEA & APAC
EMEA & APAC Sector aggregated Sustainability Highlights revenue (%) aggregated revenue (%) • Health, safety and wellbeing of our people continues to be our priority as we live and work with COVID-19 29% • Customers continue to invest in developing their assets and moving to a low carbon 50% $4.9b $4
Slide 41: How we define our sustainability related work
How we define our sustainability related work We define our sustainability-related business through four pathways: asset sustainability; resource stewardship; decarbonization; and environment & society. This is calculated based on two measures: 1. The work we conduct in relation to the following mar
Slide 42: Sustainability revenue and pipeline
Sustainability revenue and pipeline Resource stewardship Decarbonization 49% 6% 40.1% 5% Decarbonization Revenue % revenue Revenue % 4% 4% Other 23% 26% decarbonization Other (excluding decarbonization 23% 24% Integrated gas2 integrated gas) 12% 9% Integrated gas2 up 73% FY21 FY22 Jul-21 Jul-22 FY21
Slide 43: Number of wins in different project phases
Number of wins in different project phases for sustainability work in FY22 (each prong of the fan represents one of our sustainability sub-sectors and the different colours represent different project phases) Leading indicators Project Phase Wins by project phase1 Low carbon hydrogen Operations and
Slide 44: Reconciliation of statutory to underlying results
Reconciliation of statutory results to underlying H2 FY22 H1 FY22 FY22 FY21 results ($m) ($m) ($m) ($m) Statutory result (NPAT for the Group) 97 80 177 81 Add: Net finance costs 33 27 60 77 Add: Amortization of acquired intangible assets 46 49 95 100 Reconciliation of statutory Add: Income Tax Expen
Slide 45: Segment EBITA results
Segment EBITA results By region FY22 FY21 vs. FY21 • Americas increase in EBITA was driven by a Aggregated revenue ($m) 9,065 8,774 3% strong H2 with a ramp up of key projects and Americas 4,187 3,769 11% improved margins in construction and EMEA 3,168 3,333 (5%) fabrication business from H1 APAC 1,
Slide 46: Segment results H1 FY22 vs H2 FY22
Segment results H1 FY22 vs H2 FY22 By region H2 FY22 H1 FY22 vs. H1 FY22 Aggregated revenue ($m) 4,697 4,368 8% Americas 2,202 1,985 11% • Americas increase in EBITA was delivered by ramp up of key projects in the half and margin EMEA 1,620 1,548 5% improvements across the business APAC 875 835 5% S
Slide 47: Segment results
Segment results By region Americas EMEA APAC TOTAL FY22 FY21 vs. FY21 FY22 FY21 vs. FY21 FY22 FY21 vs. FY21 FY22 FY21 vs. FY21 Aggregated revenue ($m) 4,187 3,769 11% 3,168 3,333 (5%) 1,710 1,672 2% 9,065 8,774 3% Professional services1 1,860 1,758 6% 2,300 2,297 (0%) 1,600 1,578 1% 5,760 5,633 2% C
Slide 48: Segment EBITA by sector
Segment EBITA By sector FY22 FY21 vs. FY21 • Energy sector has shown resilience through Aggregated revenue ($m) 9,065 8,774 3% increased margins while navigating the global Energy 4,477 4,394 2% political climate Chemicals 3,308 3,250 2% • Chemicals strong performance is a result of Resources 1,280
Slide 49: Margin profile
Margin profile Underlying EBITA % Underlying EBITA $m H1 726 H2 547 6.9% 360 463 6.1% 6.5% 6.0% 6.3% 6.0% Total 5.7% 296 H2 5.3% 4.6% 256 H1 366 207 251 FY2020 FY2021 FY2022 FY2020 FY2021 FY2022 Underlying NPATA % Underlying NPATA $m H1 419 H2 329 277 203 Total H2 179 3.6% 3.9% 3.7% 3.7% 3.8% 3.6% 1
Slide 50: Foreign exchange
Foreign exchange Impact total EBITA (A$m) 4 2 1 1 1 1 (1) (1) (1) (3) USD CAD CNY NOK SAR GBP BGN ARS EUR Other Group EBITA FX Translation impact (A$m) 11 5 (57) FY20 FY21 FY22 Worley - Full year results 2022 50
Slide 51: Cashflow
Cashflow EBITA FY22 ($m) 449 FY21 ($m) 319 Add: Depreciation, amortization and significant non-cash 214 290 items • Strong second half cash flows generated Less: Interest and tax paid after the first half was impacted by (105) (111) working capital requirements. (Less)/add: Receivables movement (202
Slide 52: Cash closely tracking earnings
Cash closely tracking earnings Cash Conversion Cash conversion1 FY20 163% 700 FY21250% 154% Cash conversion more closely tracking earnings 602 in H2 FY22 600 FY22 88% 200% Continued demonstration of disciplined 208% approach to cash collection: 500 162% 148% • DSO reduced by five days 400 150% 117%
Slide 53: Balance sheet and liquidity metrics
Balance sheet and as at 30-Jun-22 as at 30-Jun-21 Gearing ratio1 22.6% 21.7% liquidity metrics Average cost of debt2 1.9% 1.9% Average maturity (years) 2.2 2.9 Interest cover (times) 10.6x 9.1x • Gearing at levels supportive of future growth Net debt, $m (statutory definition) 1,662 1,546 • Average
Slide 54: Headcount: utilization above target
Headcount: Worley global headcount utilization 50,000 above target 40,000 33,800 34,500 36,200 Staff 30,000 36,000 Craft 20,000 10,000 • Headcount at 51,300 at 30 June 2022, 12,400 13,900 13,800 15,100 up 8% on FY21 0 H1 FY21 FY21 H1 FY22 FY 22 • Staff utilization remains above target • GID headcoun
Slide 55: Backlog increasing
Backlog increasing 0.0 15.1 15.4 15.1 15.4 1.7 1.8 6.1 6.2 11.1 11.2 7.3 7.4 Sustainability 3.9 4.3 10% at Dec-21 at Jun-22 at Dec-21 at Jun-22 Energy Chemicals Resources Sustainability Traditional 2.0 1.8 Energy Americas 7.4 Chemicals 7.8 EMEA 5.6 6.2 Resources APAC Worley - Full year results 2022
Slide 56: Cost savings programs
Cost savings programs Operational cost savings program 500 Drivers of EBITA change H1 FY22 to H2 FY22 ($m) 361 400 300 316 Operational savings $10.5m $m 200 34.5 12.5 3 5 100 296 251 246 246 258.5 261.5 H2 H1 H2 H1 H2 H1 H2 FY20 FY21 FY22 FY23 Recurring H1 FY22 EBITA Savings already in H1 FY22 actio
Slide 57: Our priority growth areas
Our priority growth areas Growth units Strategic priorities Breakthrough markets The main focus of our Power networks Midstream Offshore Ports and strategic investment is to and energy storage Water energy infrastructure wind terminals Infrastructure accelerate our growth units - the breakthrough ma
Slide 58: Glossary
Glossary $, $m, $b – Australian dollars unless otherwise stated, Australian millions of FY – Financial Year 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 59: Backlog definition
Backlog definition Backlog is the total dollar value of the amount of revenues Due to the variation in the nature, size, expected duration, expected to be recorded as a result of work performed under funding commitments and the scope of services required by contracts or purchase/work orders already
Slide 60: 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 61: 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 62: 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 Worley - Full year results 2022 62