Worley Limited · ASX:WOR
Worley — Investor Day (December 2020)
66 slides from Worley's investor day presentation, Dec 2, 2020
Slide 1: Delivering a more sustainable world
Delivering a more sustainable world Sustainability Investor Day 2 December 2020 worley.com Worley Sustainability Investor Day
Slide 2: Disclaimer
Disclaimer The information in this presentation about Worley Limited, the entities it controls (Group) and its activities is current as at 2 December 2020 and should be read in conjunction with the Company’s Appendix 4E and Annual Report for the full year ended 30 June 2020. It is in summary form an
Slide 3: Agenda
Agenda 1 2 3 Strategic pivot Sustainability Sustainability to sustainability focus areas in action Worley Sustainability Investor Day 3
Slide 4: Safety moment
Safety moment Sue Brown Worley Sustainability Investor Day
Slide 5: Delivering a more sustainable world
Delivering a more sustainable world We value We We are We Life Rise to the challenge Stronger together Unlock brilliance Worley Sustainability Investor Day 5
Slide 6: Strategic pivot to sustainability
1 Strategic pivot to sustainability Chris Ashton | Chief Executive Officer Worley Sustainability Investor Day 6
Slide 7: Bili Yilam: Bluetongues Home
Bili Yilam: Bluetongues Home by Australian Indigenous artist Mick Harding www.ngargawarendj.com Worley Sustainability Investor Day 7
Slide 8: Current business context
Current business context Worley Sustainability Investor Day
Slide 9: We are a global company headquartered in Australia
A leading global provider of professional project and asset services in the energy, chemicals and resources sectors We are a global company headquartered in Australia As a knowledge-based service provider, we use our knowledge and capabilities to support our customers to move towards a low-carbon fu
Slide 10: Operating update
Operating update Global headcount 49,200 at 31 October 2020 5% from 30 June 2020 Site access restrictions and deferred turnaround activity due mainly to COVID-19 Economic circumstances impacting end market demand, project delays and deferrals occurring Staff utilization Remains on target FX headwind
Slide 11: Operating update
Operating update Discretionary Property ECR acquisition cost synergies - on track spend rationalization Approx. 75% • Target increased to $190 million to be delivered Ahead of run rate, complete, property by April 2021 in line on an spend reduced by 30% ongoing basis • $177 million run rate delivere
Slide 12: A number of forces have emerged
A number of forces have emerged These forces are changing the markets in which we operate and shaping how our customers position their roles in the energy, chemicals and resources industries. Climate change Energy transition Circular economy Data utilization and automation We are working with our cu
Slide 13: Momentum building to achieve sustainable outcomes
Momentum building to achieve sustainable outcomes The world’s most influential economies have moved to explicit targets to achieve 50% of global GDP ESG ETFs double net-zero carbon emissions and carbon emissions currently in 2020 under net-zero commitments USD 8 billion net inflows in October 2020 P
Slide 14: Major capital investment is required to deliver sustainability outcomes
Major capital investment is required to deliver sustainability outcomes • IEA estimates investment of almost USD 3 trillion per year to 2030 under its Sustainable Development Scenario1 • Goldman Sachs estimates investment of USD 1-2 trillion per year to 2030 is required in energy industry infrastruc
Slide 15: Customers across all sectors are committing to sustainability goals
Customers across all sectors are committing to sustainability goals 2050 2050 2030 2050 2050 2040 Scope 1, 2, 3 Scope 1, 2, 3 Achieve CO2- Carbon neutral Scope 1, 2 Scope 1, 2 net-zero net-zero neutral growth net-zero net-zero emissions target emissions target emissions target emissions target Inves
Slide 16: Customers across all sectors are committing to sustainability goals
Customers across all sectors are committing to sustainability goals 2030 2030 2035 2040 2040 2042 Scope 1, 2 Zero carbon in Scope 1, 2 Scope 1, 2, 3 Scope 1, 2 Scope 1, 2 negative emissions Europe net-zero net-zero net-zero net-zero emissions target emissions target emissions target emissions target
Slide 17: Delivering a more sustainable world
We are driven by a common purpose Our transformation strategy Delivering To enhance our Company’s leadership position in energy, chemicals and resources we will: a more sustainable work with our customers and other stakeholders nationally and globally to change the way we work by leveraging automati
Slide 18: Our competitive advantage
Our competitive advantage Customer Adjacency to New ways of Scale People relationships current business working • Long-term relationships • Global reach • Experienced in delivering • Experts with fungible • Digitally enabled with customers who will technically complex skills workforce • A partner to
Slide 19: What does sustainability mean for Worley?
What does sustainability mean for Worley? Worley Sustainability Investor Day
Slide 20: Core services and our sustainability domain
Core services and our sustainability domain Core services Energy, chemicals and resources UN SDGs Energy Transition Low-carbon hydrogen, CCUS, gas, electrification, renewable power, transition materials Circular Economy Waste to energy, bio-based products such as renewable fuel, plastics recovery Re
Slide 21: Sustainability is a growing part of our business
Sustainability is a growing part of our business 1 Sustainability domain will become our core over time Sustainability domain 2 Government intervention, technology advances and customer commitments Group revenue will influence rate of change 3 Core services Incentive program for senior leaders based
Slide 22: Sustainability is a growing part of our business
Sustainability is Energy transition and circular economy Environment, social and water Excluding gas and LNG a growing part of 15% 4% 3% 3.5% 3.7% 10% 11% 2% our business 5% 3% 1% 0% 0% FY2020 revenue Factored sales FY2020 revenue Factored sales opportunities1 opportunities1 • Increase in opportunit
Slide 23: Strong sustainability track record
Strong sustainability track record 2,300+ energy transition projects Electric vehicle battery manufacturing Building infrastructure to Offshore wind O&M support the e-mobility Oil and gas production Providing inspection and Sustainable fuels revolution - Finland renewable electrification maintenance
Slide 24: Delivering global expertise in Australia
Delivering global expertise in Australia Feasibility study to commercialize Supporting the renewable based world’s largest hydrogen to carbon capture ammonia and storage production Decarbonizing project Powering a mineral gold mine extraction with a hybrid through lower renewables emission Operation
Slide 25: Sustainability focus areas
2 Sustainability focus areas Mark Trueman | Executive Group Director, Growth Worley Sustainability Investor Day 25
Slide 26: Offshore wind
Offshore wind Worley Sustainability Investor Day 26
Slide 27: Offshore wind
Offshore wind Grid Wind Grid Environmental turbines integration baseline studies Substation Undersea Undersea cabling cabling Foundation Batteries Hydrogen Worley Sustainability Investor Day 27
Slide 28: Offshore wind
Offshore wind “ Offshore wind has matured at a rapid pace and can now be considered a Market overview cornerstone in the green transformation AUD 480 billion AUD 65 billion in many places in the world. Capex global spend to Addressable market Ørsted 20301 spend to 20302 160 GW additional capacity to
Slide 29: Offshore wind
Offshore wind Worley overview Projects 110+ 230+ 80% revenue • Design for offshore sub stations Offshore wind Offshore wind is reoccurring from Tier 1 OEMs under • Marine design for offshore construction projects O&M projects long-term framework agreements • Inspection services to many of the UK’s o
Slide 30: Low-carbon hydrogen
Low-carbon hydrogen Worley Sustainability Investor Day 30
Slide 31: Low-carbon hydrogen
Low-carbon hydrogen Grey hydrogen Blue hydrogen Green hydrogen Transport and End use storage Heavy vehicle transport Ammonia or other hydrogen carrier Power generation Liquid hydrogen Industrial and chemicals Worley Sustainability Investor Day 31
Slide 32: Low-carbon hydrogen
Low-carbon hydrogen “ We are focused on hydrogen because of the role we see it playing in the world’s Market overview energy mix. We aim to produce hydrogen USD 680 billion USD 200 billion local to markets in the mid-2020s and Investment required to 2040 to achieve SDS targets1 Estimated capex spend
Slide 33: Low-carbon hydrogen
Low-carbon hydrogen Projects Worley overview • Supporting the world’s largest green hydrogen project 80+ 3x Hydrogen projects Increased factored sales • Advisory services to produce green delivered pipeline in last six months hydrogen from offshore wind • Study to construct and operate a green hydro
Slide 34: Circular economy
Circular economy Worley Sustainability Investor Day 34
Slide 35: Circular economy
Circular economy Resources flows Waste prevention and avoidance Recycling in closed loops Hierarchy of management Our opportunity: Chemical depolymerization for plastic recovery Recycling Our opportunity: Asset recycling services: Requis, our online equipment exchange platform Energy recovery Our op
Slide 36: Circular economy: Plastics recovery
Circular economy: “ We want to take waste plastics that are tough to recycle by traditional methods and turn them back Plastics recovery into chemicals – creating a circle. These chemicals Market overview will meet our customers’ growing demands for high quality and sustainable products. AUD 64 bill
Slide 37: Circular economy: Renewable fuels
Circular economy: “ As a leader in the supply of sustainable aviation fuel our drop-in fuel gives the same performance Renewable fuels as traditional jet fuel, but with around an 80% Market overview reduction in carbon emissions over its lifecycle compared to the fuel it replaces. USD 265 billion 3.
Slide 38: Circular economy
Circular economy Projects Worley overview • We have been involved in almost every major renewable fuel project in the US in 139+ 60% the last ten years Renewable fuels and Of current US renewable • Designing flagship facility to produce 100% waste-to-energy diesel projects plant-based chemicals feed
Slide 39: Carbon capture, use and storage
Carbon capture, use and storage Worley Sustainability Investor Day 39
Slide 40: Carbon capture, use and storage
Carbon capture, use and storage Capture LNG, natural gas, refineries, cement/steel plants, power stations, direct capture from Compression atmosphere Natural gas Oil CO2 Transport Biomass Coal Use Storage Storage Worley Sustainability Investor Day 40
Slide 41: Carbon capture, use and storage
Carbon capture, use “ Carbon capture and storage is a crucial and storage technology for reaching the goals of the Market overview Paris Agreement and we are committed to ~USD 100 billion ~USD 12 billion working with others to create real change. Estimated investment to Addressable market spend Equi
Slide 42: Carbon capture, use and storage
Carbon capture, use and storage Projects Worley overview • Engineering and procurement services for world’s largest commercial-scale carbon 205+ 1.5x dioxide injection project Carbon capture use and Increased factored sales storage projects pipeline compared to • Early engineering and design for two
Slide 43: Sustainability in action
3 Sustainability in action Americas and EMEA & APAC Worley Sustainability Investor Day 43
Slide 44: Americas
Americas Karen Sobel | Group President, Americas Worley Sustainability Investor Day
Slide 45: I want to acknowledge the resilience of our people over the last six months
I want to acknowledge the resilience of our people over the last six months Worley Sustainability Investor Day 45
Slide 46: Sustainability focus areas in Americas
Sustainability focus areas in Americas Renewable fuels Offshore wind Plastics recycling Water stewardship Large scale solar Circular economy Worley Sustainability Investor Day 46
Slide 47: Sustainability work in our locations
Sustainability work in our locations 1 North America East • Power center of excellence in Reading 2 Gulf Coast • Leverage topside design expertise in Houston and Metairie for 3 North America West • Biofuels center of excellence in California • Converting refineries for renewable feedstock offshore w
Slide 48: Agilyx and INEOS Styrolution
Agilyx and INEOS Styrolution Chemical recycling to advance circular economy for plastics The facility will have capacity to recycle up to 100 tons of post-consumer polystyrene feedstock per day Worley Sustainability Investor Day 48
Slide 49: Ørsted
Ørsted Designing and installing ‘Revolution Wind’ A wind farm that will generate enough to power more than 350,000 homes Worley Sustainability Investor Day 49
Slide 50: Mikisew Cree Advisian Environmental
Mikisew Cree Advisian Environmental Partnering with the Mikisew Cree First Nation on sustainable projects Creating shared value with First Nations Peoples Worley Sustainability Investor Day 50
Slide 51: EMEA & APAC
EMEA & APAC Vinayak Pai | Group President, EMEA & APAC Worley Sustainability Investor Day
Slide 52: Our teams are focussed on safety and well-being
Our teams are focussed on safety and well-being and have shown great character these last six months Worley Sustainability Investor Day 52
Slide 53: Sustainability focus areas in EMEA & APAC
Sustainability focus areas in EMEA & APAC Electrification Offshore wind Hydrogen Circular economy CCUS Biofuels Worley Sustainability Investor Day 53
Slide 54: Sustainability work in our locations
Sustainability work in our locations 1 Europe 2 United Kingdom 3 Middle East • Large bio-fuels projects with • Pre-FEED CCUS projects • Various gas-related projects TIC of €1 billion • Technical studies 4 5 • Green hydrogen Australia Advisian • Diesel fuel replacement • Advisory for site specific st
Slide 55: Drax
Drax 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 Sustainability Investor Day 55
Slide 56: Avantium
Avantium Textiles, packaging and film from plant sugars 100% plant-based chemicals that are fully recyclable and used to make bio-based plastics Worley Sustainability Investor Day 56
Slide 57: Summary
Summary Worley Sustainability Investor Day
Slide 58: Sustainability is a growing part of our business
Sustainability is a growing part of our business • The world is facing sustainability challenges which will require the largest allocation of capital in history to address • Sustainability is at the core of our strategy • We are well positioned to realize growth opportunities • Worley is a leader in
Slide 59: Q&A
Q&A
Slide 60: Worley
Worley energy | chemicals | resources
Slide 61: Supplementary information
Supplementary information Worley Sustainability Investor Day
Slide 62: Acronyms
Acronyms Financial Times Stock Exchange 100 Index, APAC Australia, Pacific, Asia and China FTSE 100 OEM Original Equipment Manufacturer benchmark UK stock market index Cotation Assistée en Continu, CAC 40 FX Foreign Exchange O&M Operations & Maintenance benchmark French stock market index 2020 finan
Slide 63: Speaker profiles
Speaker profiles Worley Sustainability Investor Day
Slide 64: Chris Ashton and Tom Honan
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, 24 February 2020. He joined Worley in 1998 and has held many leadership information technolog
Slide 65: Karen Sobel and Vinayak Pai
Karen Sobel Vinayak Pai Group President, Americas Group President, EMEA & APAC Karen is responsible for all Worley businesses in the Americas which Vinayak is responsible for all Worley businesses in the EMEA and APAC includes a large portion of the construction, maintenance and operations regions.
Slide 66: Mark Trueman and Veréna Preston
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 technology ventures and Advisian consulting. Audit