Worley Limited · ASX:WOR

Worley — FY2024 Earnings Presentation

47 slides from Worley's earnings presentation, Aug 27, 2024

  1. Slide 1: Delivering a more sustainable world: Full Year Results 2024

    Delivering a more sustainable world FULL YEAR RESULTS 2024 1 2 3 Business performance Full year results 2024 Outlook AGENDA and strategic progress Chris Ashton Tiernan O’Rourke Chris Ashton

  2. Slide 2: Disclaimer

    Disclaimer The information in this presentation about Worley Limited outcomes. They involve known and unknown risks and and the entities it controls (Group) and the Group’s activities uncertainties, many of which are beyond our control and is current as at 27 August 2024 and is in summary form and w

  3. Slide 3: Performance highlights and key messages

    Performance highlights and key messages Delivered strong and consistent growth in revenue, ↑18% ↑24% 1 earnings and margins, despite headwinds • We’ve delivered a strong FY24 cash result and earnings growth at a higher rate than revenue, despite a challenging macro environment Aggregated revenue Und

  4. Slide 4: Business performance and strategic progress

    Business performance and strategic progress Chris Ashton, Chief Executive Officer Worley - Full year results 2024 4

  5. Slide 5: We support healthy people, relationships and environments

    We support healthy people, We energize and relationships and We value inclusion, empower our people environments diversity and respect Investing in our people Safety and respect at work • we launched our Wellbeing hub • we launched our Respect at Work with over 22,400 visits policy and implemented t

  6. Slide 6: Consistent growth and delivering ESG commitments

    Consistent growth and delivering ESG commitments Aggregated revenue EBITA EBITA% Scope 1 & 2 ESG ratings excl. procurement emissions reduction 10% CAGR 17% CAGR +1.7pp 66% reduction2 FY21 to FY24 FY21 to FY24 FY21 to FY24 FY20 to FY24 Inclusion in DJSI for Australia 11,616 since 2023 7.9 751 100% 9,

  7. Slide 7: Our leading indicators show moderated growth in FY25

    Our leading indicators show moderated growth in FY25 Factored sales pipeline1 Bookings $ 4 0, 0 00 ,0 0 0, 00 0 $ 8. 0 $6.7 $6.6 $6.2 $6.8 15% $ 3 5, 0 00 ,0 0 0, 00 0 $ 7. 0 $5.9 $ 3 0, 0 00 ,0 0 0, 00 0 $ 2 5, 0 00 ,0 0 0, 00 0 $ 6. 0 $1.8 $ 2 0, 0 00 ,0 0 0, 00 0 44% $ 5. 0 $3.1 $ 4. 0 $ 1 5, 0 0

  8. Slide 8: Drivers of backlog change

    Drivers of backlog change Backlog Walk ($b) • Backlog of $13.8b supportive of delivering our strategy in FY25 • Projects delivered during FY24 were more than replaced by new wins and scope increases, despite headwinds, including delays with Venture Global’s CP2 project • Additionally, $1.2b of scope

  9. Slide 9: Long-term fundamentals remain favorable

    Long-term fundamentals remain favorable Geopolitical Digital and Cost of capital Energy technological shifts and project trilemma transformation economics Intersecting macro trends are rebalancing some customer capital allocations in the short term Energy demand continues to grow Chemicals demand tr

  10. Slide 10: Strategic wins

    10 11 Strategic wins 7 4 6 1 Sustainable 2 9 12 8 Transitional 3 Traditional $13.0b $8.1b 5 Bookings in FY24 vs $13.3b in FY23 Sustainability-related1 bookings in FY24 vs $9.2b in FY23 Bookings up H2 FY24 vs H1 FY24 We continue to win work across traditional, transitional and sustainable work 1 CBSR

  11. Slide 11: Full Year Results 2024

    Full Year Results 2024 Tiernan O’Rourke, Chief Financial Officer Worley - Full year results 2024 11

  12. Slide 12: Key financials

    Key financials Disciplined execution of our ↑ $11,616m ↑ $9,447m strategy has delivered a strong Aggregated revenue Aggregated revenue excl. result Procurement $9,859m in FY23 PF $8,314m in FY23 PF • Achieved our FY24 result despite headwinds, +18% growth +14% growth including delays with Venture Gl

  13. Slide 13: Drivers of EBITA margin improvement

    Drivers of EBITA margin improvement • Increased margin driven by rate improvement as a EBITA % excluding procurement result of our deliberate FY23 (proforma1 basis) to FY24 strategy to focus on higher value solutions • H1/H2 phasing consistent with seasonality of earnings PF1 FY24 H1 to H2 1. ‘Profo

  14. Slide 14: Investing in long-term strategy while navigating short-term dynamics

    Investing in long-term strategy while navigating short- term dynamics Our 3 year $100m strategic What’s next? investment is now complete • We’ll assess the continuation of an annual organic investment program with a focus on investments that will yield accretive returns. What we’ve gained: • built a

  15. Slide 15: Capital management plan

    Capital management plan 70 105% Our capital management position supports our growth plans Target range with good liquidity, the maintenance of strong credit ratings 100% 65 Down from and access to well-priced debt capital 95% 60 63.0 on pcp 4 FY24 Target range 90% 55 FY24 Operating productivity Capi

  16. Slide 16: Our value proposition

    Our value proposition Market forces Structural changes Long term fundamentals Prolonged cyclical supportive remain favorable upturn Substantial industry structural Energy demand increasing, chemicals Investments into the energy changes to benefit Worley in line with GDP, resources demand transition

  17. Slide 17: Outlook

    Outlook Chris Ashton, Chief Executive Officer Worley - Full year results 2024 17

  18. Slide 18: Outlook context

    Outlook context At a macro level Worley is managing three key risks: attraction and retention of highly skilled people to meet demand; inflation and supply chain disruption and their impact on the economics of business; and ongoing geopolitical tensions Market analysis1 affecting normal operations o

  19. Slide 19: Group outlook

    Group outlook1 We’re targeting low double-digit EBITA growth and expect the underlying EBITA margin (excluding the impact of procurement) to be within a range of 8.0-8.5% in FY25. We expect the second half of FY25 to be stronger than the first half as the rebalancing process proceeds during this yea

  20. Slide 20: Performance highlights and key messages

    Performance highlights and key messages Delivered strong and consistent growth in revenue, ↑18% ↑24% 1 earnings and margins, despite headwinds • We’ve delivered a strong FY24 cash result and earnings growth at a Aggregated revenue Underlying EBITA higher rate than revenue, despite a challenging macr

  21. Slide 21: Worley - Full year results 2024

    & Worley - Full year results 2024 21

  22. Slide 22: Supplementary information

    Supplementary information Worley - Full year results 2024 22

  23. Slide 23: Delivering our ambition

    Delivering our ambition Our ambition FY24 achievements demonstrating we are on track • 84% of Be Heard survey participants said their experience at Worley met or exceeded expectations • Launched our Wellbeing hub with over 22,400 visits during FY24 Our people • 18,631 of our people were recognized t

  24. Slide 24: Delivering our ambition

    Delivering our ambition Operational priorities FY24 achievements demonstrating we are on track • Utilization above target (87%+) Operational excellence Quality of earnings, utilization • Percentage of work through GID is 14.9%, up 2.1pp on FY23. GID headcount up 6.1% on FY23 targets, resource & work

  25. Slide 25: How we define our sustainability-related work

    How we define our sustainability-related work We categorize our overall sustainability-related as the sum of Sustainable work and Transitional work. The combination of market segment and solution is used to determine how we categorize the work. We refer to all work falling outside of sustainability-

  26. Slide 26: Our diversified business

    Our diversified business Sustainable1 | Transitional | Traditional A global leader delivering Sector aggregated revenue (%) aggregated revenue (%) knowledge-based project and asset services 6% 17% Traditional • Leading position in energy, 30% Energy 15% 3% Chemicals Transitional chemicals and resour

  27. Slide 27: Key financials

    FY24 FY23 PF vs. FY23 PF Key financials Aggregated revenue $11,616m $9,859m 18% Aggregated revenue excl. procurement $9,447m $8,314m 14% • Professional services revenue has increased 16% on pcp due to changing Underlying EBITA $751m $606m 24% project mix Underlying EBITA margin % excl. procurement 7

  28. Slide 28: Sustainability-related project wins

    Number of wins in different project phases for sustainability-related1 work in FY24 as at 30-Jun-24 Sustainability- related1 project The fan depicts the work we do across all phases within our sustainability-related sub- sectors. As projects progress through later phases, the project size increases

  29. Slide 29: Reconciliation of statutory results to underlying results

    Reconciliation of statutory results to underlying results H1 FY24 H2 FY24 ($m) ($m) FY24 ($m) FY23 ($m) Reconciliation of Statutory result (NPAT for the Group) 109 204 313 46 statutory to Add: Net finance costs 57 51 108 110 underlying results Add: Amortization of acquired intangible assets 43 42 85

  30. Slide 30: Segment EBITA results by region

    Segment FY24 FY23 PF vs. FY23 PF EBITA results Aggregated revenue ($m) 11,616 9,859 17.8% By region Americas 4,794 3,777 26.9% EMEA 4,609 4,023 14.6% • Americas EBITA increase driven by APAC 2,213 2,059 7.5% project mix with increase in professional Segment EBITA ($m) 1,064 818 30.1% services and st

  31. Slide 31: Segment results H1 FY24 vs H2 FY24

    H2 FY24 H1 FY24 vs. H1 FY24 Segment results H1 FY24 vs H2 FY24 Aggregated revenue ($m) 6,006 5,610 7.1% Americas 2,536 2,258 12.3% EMEA 2,391 2,218 7.8% By region APAC 1,079 1,134 (4.9%) • Americas increase in margin in H2 was Segment EBITA ($m) 594 470 26.4% driven by project mix with an increase i

  32. Slide 32: Segment results

    Segment results By region Americas EMEA APAC TOTAL vs. FY23 vs. FY23 vs. FY23 FY24 FY23 PF FY24 FY23 PF FY24 FY23 PF FY24 FY23 PF vs. FY23 PF PF PF PF Aggregated revenue ($m) 4,794 3,777 26.9% 4,609 4,023 14.6% 2,213 2,059 7.5% 11,616 9,859 17.8% Professional services1 2,770 2,249 23.2% 2,962 2,578

  33. Slide 33: Regional highlights

    Regional highlights Americas EMEA / APAC Aggregated revenue1 Factored sales Backlog1,3,4 Aggregated revenue Factored sales Backlog3,4 6 pipeline1,2,4 8 Pipeline2,4 12% 5 27% 6 7 10 33% 6 4 31% 42% 32% 31% 5 48% 53% 48% 47% 3 10.4% 90% 3 8% 26% 4 46% 11.8% 58% 74% 5 10% 57% Segment margin 57% Segment

  34. Slide 34: Segment EBITA by sector

    Segment EBITA FY24 FY23 PF vs. FY23 PF By sector Aggregated revenue ($m) 11,616 9,859 17.8% Energy 5,561 4,924 12.9% • Energy sector has grown, benefiting from continued global investment in Chemicals 3,541 2,888 22.6% sustainability and traditional projects. Resources 2,514 2,047 22.8% • Chemicals

  35. Slide 35: Margin profile

    Margin profile Underlying EBITA % H1 Underlying EBITA $m 6.8% 726 751 6.1% 6.5% 6.4% 6.1% H2 5.8% 635 606 Total 547 516 Proforma 5.7% 6.3% 6.0% 6.1% 5.8% 6.1% 6.8% 6.5% 360 463 406 5.4% 352 337 296 283 H2 256 FY22 FY23 FY24 H1 366 345 251 233 283 269 207 Underlying EBITA % (excl procurement) 7.6% 7.

  36. Slide 36: Calculation of EBITA% excluding procurement

    Calculation of H1 FY24 H2 FY24 FY24 EBITA% Aggregated revenue ($m) 5,610 6,006 11,616 excluding Growth rate on pcp 17.8% procurement EBITA ($m) 345 406 751 Underlying EBITA Underlying EBITA Growth rate on pcp 23.9% margin excluding = aggregated revenue procurement – procurement EBITA% 6.1% 6.8% 6.5%

  37. Slide 37: Foreign exchange

    Foreign exchange Constant currency FX impact Group EBITA FX Translation Impact 5 7 A $m (17) FY22 FY23 FY24 Impact Total EBITA (A$m) 9 6 5 2 3 3 2 A $m (47) Worley - Full year results 2024 37 ARS USD US Pegged EUR GBP NGN MAD Other

  38. Slide 38: Cash collection

    Cash collection FY24 ($m) FY23 ($m) EBITA3 693 585 Normalized cash conversion was 99.0%1, adjusted to exclude the prepayment of Add: Depreciation, amortization and significant 310 219 software costs previously included ($12m) non-cash items and certain timing adjustments as we Less: Interest and tax

  39. Slide 39: Balance sheet and liquidity metrics

    as at as at 30-Jun-24 30-Jun-23 Weighted average cost of debt (net interest)1 4.3% 3.9% Balance sheet Weighted average cost of debt2 4.7% 4.5% and liquidity Average maturity (years) 2.9 3.7 metrics Interest cover (times) 8.6x 7.2x • Improved liquidity position resulting Net debt, $m (statutory defin

  40. Slide 40: Capital management: Debt

    Capital Debt Maturity Profile as at 30 Jun 2024 management: Debt Bilateral EMTN Overdraft AMTN Syndicate Revolving Facility Term Loan • Maintained a well-diverse debt portfolio • Weighted average debt maturity at 2.9 1,400 years • Investment grade credit ratings, 1,200 provides access to well-priced

  41. Slide 41: Utilization

    • Utilization1 remains above target and is 92% Staff Utilization1 20% % of work through GID 88.5% at 30 June 2024 91% • Global Integrated Delivery (GID) 18% 90% headcount is 5,200 at 30 June 24, up 89% 16% 6.1% on FY23. Percentage of work 88% through GID is 14.9%, up 2.1pp on 87% 14% FY23. (Total In

  42. Slide 42: Backlog

    Backlog 14.8 Backlog Walk ($b) 14.1 13.8 3.6 4.2 4.0 7.2 7.4 6.0 2.8 3.4 3.1 2.0 2.1 1.3 7.7 7.2 6.7 5.4 5.6 5.7 at Jun-23 at Dec-23 at Jun-24 at Jun-23 at Dec-23 at Jun-24 Energy Chemicals Resources Traditional Transitional Sustainable 1.5 Americas 4.0 Energy 5.5 EMEA 6.7 Chemicals Resources 6.8 AP

  43. Slide 43: Glossary

    Glossary $, $m, $b – Australian dollars unless otherwise stated, Australian GID - Global Integrated Delivery millions of dollars, Australian billions of dollars gm – Gross margin APAC - Australia, Pacific, Asia & China GST - Goods and Services Tax CAPEX - Capital expenditure IFRS - International Fin

  44. Slide 44: 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 respe

  45. Slide 45: 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

  46. Slide 46: Fixed price vs reimbursable contract types

    Fixed price vs reimbursable contract types Reimbursable Contracts (~84% of our revenue in FY24): • These contracts are based on reimbursing of reasonable and allowable actual costs plus profits. In addition to the base profits these contracts generate, we may earn further incentives from creating en

  47. Slide 47: Registered office

    Registered office: Level 19, 420 George Street Sydney NSW 2000 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 2024 47

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