Worley Limited · ASX:WOR
Worley — Investor Day (May 2023)
53 slides from Worley's investor day presentation, May 9, 2023
Slide 1: Investor Day 2023
Investor Day 2023 Delivering a more sustainable world How we have set the business up for success and how we’re delivering in line with our strategy 1
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 While the Group has prepared this information based Worley Limited, the entities it controls (Group) and its on its current knowledge and understanding and in activities is current as at 9 May 2023 and is in good faith, there are risks and uncert
Slide 4: Agenda
Agenda Delivering our purpose: Session break Why our unique position sets us apart Chris Ashton, CEO Delivering sustained growth: The building blocks driving improved earnings over time Leading the way to a more Tiernan O’Rourke, Chief Financial Officer sustainable future: Our thinking driving actio
Slide 5: Delivering our purpose
Delivering our purpose: Why our unique position sets us apart Chris Ashton Chief Executive Officer
Slide 6: Key messages
Key messages We’re a trusted provider of high-value solutions to 1 our customers and we're benefiting from accelerating customer investment in sustainability. We have a significant and growing natural share of the market. 2 With momentum in the market building strongly, we see a clear path to increa
Slide 7: Worley has transformed into a focused provider of high value solutions
Worley has transformed into a focused provider of high value solutions to our customers in both traditional and sustainability-related1 work We empower our people and build an environment where our people can collaborate, innovate and grow o WorleyParsons o Transformation strategy launched o Establi
Slide 8: Our value proposition
Our value proposition Factored Sales Backlog Aggregated Total business Pipeline1 Revenue Global leader in 32% 11% 8% energy, chemicals and is growing CAGR CAGR CAGR resources markets Dec-20 Dec-22 Dec-20 Dec-22 Dec-20 Dec-22 Factored Sales Backlog Aggregated Increasing proportion Pipeline Reven
Slide 9: Business update
Business update Pipeline2 increasing, up 36% YTD as at 31-Mar-23 • Sustainability-related work1 represents 73% of factored sales pipeline2 • We expect decisions on more than half of our factored sales pipeline 36% in the next 12 months Factored sales Bookings pipeline at • $9.6b in bookings YTD as
Slide 10: Pipeline, bookings and backlog
Pipeline, bookings and backlog Factored sales pipeline1 Rolling 12-month bookings2 Backlog3 15.4 16.7 16 14 28% 40% 56% 73% 12 10 8 $b 6 72% 60% 44% 4 27% 2 0 at Jun-22 at Mar-23 at Jun-22 at Mar-23 at Jun-22 at Mar-23 Traditional Sustainability Traditional Sustainability Traditional Sustainability
Slide 11: Wins are up globally across all of our sectors
Wins are up globally across all of our sectors We’re the go-to global company for new, innovative technologies – our customers are looking to partner with us to bring these new solutions to market at scale 115% Enabling Australia to play a critical Building on traditional work role in Rare Earths s
Slide 12: Leading the way to a more sustainable future
Leading the way to a more sustainable future: Our thinking driving actions Sue Brown Executive Group Director, Sustainability
Slide 13: Evolving sustainability
Evolving sustainability Globally recognized standards emerging • Sustainable investment taxonomies • ISSB Standards • Climate - focus on action post-COP27 • Biodiversity and nature increasing in importance The world must fundamentally overhaul the speed Government focus and investments are increasin
Slide 14: Leading thinking and action
Leading thinking and action Influencing, challenging and empowering our sector to create value: • From Ambition to Reality series with Princeton University • Contributing to leading edge thinking • Innovative industry partnerships Image from the Worley UK Breakfast Briefing in London Worley | Invest
Slide 15: Recognized for our ESG commitments and actions
Recognized for our ESG commitments and actions • Dow Jones Sustainability Index – recognized as a global leader 2022 (Australia and Asia Pacific) • Recognized by CDP as a Climate Change Supplier Engagement Leader 2022 • Climate Change Business Journal's (CCBJ) 2022 Industry Leadership Award for Clim
Slide 16: Supporting our customers with breakthrough projects
Supporting our customers with breakthrough projects First-of-a-kind Implementing one Largest H1 FY23 Traditional / bioplastics of the world's sustainability-related2 commercial scale facility for largest renewable aggregated revenue (%) direct air capture Avantium fuels facilities for Traditional fo
Slide 17: Unlocking value and securing growth
Unlocking value and securing growth: Insights into market trends, strategic priorities, and our competitive edge Andy Hemingway Executive Group Director, Growth
Slide 18: We've set our strategy to capitalize on profitable growth
We’ve set our strategy to capitalize on profitable growth Market outlook Our core beliefs Our Ambition Where we play: We’re leading by supporting We’re bridging two worlds customers in traditional hard-to-abate markets We will be recognized as the world accelerates towards more decarbonize while sha
Slide 19: Low-carbon energy – Power & hydrogen
Sector deep dives Low-carbon energy – Power & hydrogen Strong market growth continues in We’re focused on high-value market We continue to deliver key projects 1 order to meet sustainability targets 2 segments, emerging technologies 3 in low-carbon energy and integrated projects Clean energy investm
Slide 20: Low-carbon energy – Integrated gas & Conventional energy
Low-carbon energy – Sector deep dives Integrated gas & Conventional energy Strong economics support growth We’ve invested in capability for our Playing a key role in major projects 1 in LNG and Upstream Hydrocarbons 2 growth regions and are expanding 3 around the world and leading in Market our cust
Slide 21: Chemicals and fuels
Sector deep dives Chemicals and fuels Resilient demand growth supported Low-carbon fuels market is growing We’re taking our extensive US 1 by steady investments 2 at an unprecedented pace 3 experience in refinery conversions across the world Chemicals market – regional investments1 Low-carbon fuel p
Slide 22: Resources
Sector deep dives Resources Resources market continues to We’re growing our market share We’re converting early phase work 1 grow by ~20% annually 2 across all our target markets 3 and value our long term relationships with our customers Demand for energy transition metals1 High CAPEX investments gr
Slide 23: Leading sustainable change
Leading sustainable change e.g. Battery cathode active materials facility within Northvolt’s Ett battery gigafactory Focused steps in breakthrough markets 3 We’re actively managing our portfolio of businesses and placing targeted bets in growth markets, capabilities and offerings that drive value cr
Slide 24: Investing in transformation
Investing in transformation: Creating accretive businesses Adrian Smith Executive Group Director, Transformation
Slide 25: Our priority focus areas to deliver on our ambition
Our priority focus areas to deliver on our ambition 1 2 3 4 Incubating and Transforming Scaling world developing solutions Portfolio our project class consultancy for our chosen high management delivery solutions growth markets Worley | Investor Day 9 May 2023 25
Slide 26: How we create value through strategic alignment
How we create value through strategic alignment Identify Incubate Scale Identify strategic Solution Business Development Launch Post Integrate into operations opportunities scoping case launch Growth & Growth Transformation Operations Portfolio decision Portfolio decision point: Qualify point: Gradu
Slide 27: Creating accretive businesses
Creating accretive businesses Our $100m strategic investment Ongoing investment1 focus includes: • New solution development (e.g. through digital enablement) Targeted at high growth / high margin markets • Capability building through strategic hires Value of wins in Selected Addressable market Q3 FY
Slide 28: Battery materials
Battery materials We service the entire value chain BHP Nickel West $10b Kwinana Refinery expansion Anson Resources’ Paradox Addressable market1 lithium bromine project Raw Materials Refined Full scale precursor cathode active material plant Intermediates Galaxy Resources’ Sal de Vida lithium projec
Slide 29: Carbon capture, utilization and storage
Carbon capture, utilization and storage Project examples $15b+ 59mtpa VPI Immingham Humber Zero Working on the FEED for the Post Carbon Addressable market1 Supporting Shell Canada Products: Polaris project which Capture facilities to be installed at VPI’s 1,200 would capture CO2 from the MW Combined
Slide 30: Low-carbon hydrogen
Low-carbon hydrogen Project examples Supporting Ørsted in developing green hydrogen production Developing Shell’s new 200-megawatt $15b delivered to Yara’s electrolysis-based hydrogen plant – Addressable market1 ammonia production in the largest green hydrogen plant in the Sluiskil, Netherlands worl
Slide 31: Session break
Session break Worley | Investor Day 9 May 2023 31
Slide 32: Delivering sustained growth
Delivering sustained growth: The building blocks driving improved earnings over time Tiernan O’Rourke Chief Financial Officer
Slide 33: Earnings momentum is accelerating
Earnings momentum is accelerating Building blocks to medium-term EBITA growth Double digit medium-term EBITA CAGR1 EBITA margins growing to Continued market circa 7.5+%3 in FY24 Continued growth in share gains across (excluding procurement) addressable market growth units Current EBITA Market growth
Slide 34: Leading indicators of future growth
1. Market growth Sustainability- Leading indicators of future Number of wins in different project phases for sustainability-related work YTD as at 31-Mar-23 related projects (each prong of the fan represents one of our sustainability-related sub-sectors and the different colours represent different
Slide 35: Sustainability earnings profile continues to accelerate
2. Increased market share Sustainability earnings profile continues to accelerate Medium-term growth underpinned by pipeline and backlog Sustainability-related factored Sustainability-related backlog3 Sustainability-related revenue sales pipeline1,2 Material uptick 59% CAGR4 driven by substantial
Slide 36: Higher gross margins will continue to flow through from pipeline into revenue
3. Margin expansion Higher gross margins will continue to flow through from pipeline into revenue Factored sales Backlog GM% excluding Margin improvements are already pipeline PSR2 GM% procurement 0.5% coming through with more to come 0.5% EBITA increase at H1FY23 from rate improvement EBITA increas
Slide 37: We'll see further margin improvement as we grow
3. Margin expansion We’ll see further margin improvement as we grow Reimbursable contracting models will remain our main commercial model to support consistency of delivery Relatively stable cost Sustained margin Reduced variable costs base through cost improvement through through automation, Resour
Slide 38: Capital management plan
4. Further upside 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 70 95% Operating 93% 68 Capital productivity productivity Target range 66 91% Target range FY22 64
Slide 39: Active portfolio management
4. Further upside Active portfolio management Mergers, acquisitions and divestments will continue to play a role in us achieving our Ambition 2023+ Focus on investment 2019 for organic growth, Jacobs ECR 2023 partnerships and Sale of Americas acquisitions in line Gave us diversification across Energ
Slide 40: Regions in focus
Regions in focus: Addressing the challenges and opportunities ahead Mark Trueman – Group President, Americas Mark Brantley – Group President, EMEA and APAC Vikki Pink – Chief People Officer
Slide 41: Americas
Americas “ We continue to see increasing activity across both traditional and sustainability-related1 markets. Our traditional business remains strong especially in oil, petrochemicals and fuels. The US Inflation Reduction Act has been a major catalyst for noticeable increases in sustainability-rela
Slide 42: EMEA & APAC
EMEA & APAC “ We’re in an exciting time across EMEA & APAC. We’re seeing a lot of positive growth and capital investments across our sectors. We’re in a great position to support our customers where they are deploying a global portfolio approach to reach their net zero commitments. We have the capac
Slide 43: Worley | Investor Day 9 May 2023
Worley | Investor Day 9 May 2023 43
Slide 44: Key messages
Key messages We’re a trusted provider of high-value solutions to 1 our customers and we're benefiting from accelerating customer investment in sustainability. We have a significant and growing natural share of the market. 2 With momentum in the market building strongly, we see a clear path to increa
Slide 45: Supplementary
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Slide 46: 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 47: 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 48: Glossary
Glossary $, $m, $b Australian dollars unless otherwise stated, Australian millions of dollars, Australian billions of dollars GICS Global Industry Classification Standard AUD Australian dollars GID Global Integrated Delivery APAC Australia, Pacific, Asia & China GM Gross Margin b Billion GW Giga wat
Slide 49: Speaker profiles
Speaker profiles Chris Ashton Tiernan O’Rourke Chief Executive Officer Chief Financial Officer Chris is the CEO and Managing Director of Worley. A leading Tiernan was appointed as Chief Financial Officer effective global provider of professional project and asset services, 29 November 2021. His port
Slide 50: Speaker profiles
Speaker profiles Sue Brown Andy Hemingway Executive Group Director, Executive Group Director, Sustainability Growth Sue is accountable for driving the sustainability vision and strategy Andy was appointed as Executive Group Director, Growth for Worley, advising the Board and management on emerging e
Slide 51: Speaker profiles
Speaker profiles Adrian Smith Vikki Pink Executive Group Director, Chief People Officer Transformation Adrian has over 30 years of broad project and operational Vikki brings multi industry, global experience and sound experience in the hydrocarbons, infrastructure, minerals, leadership capability in
Slide 52: Speaker profiles
Speaker profiles Mark Brantley Mark Trueman Group President, EMEA & APAC and Group President, Americas Project Delivery, HSE & Quality Mark is responsible for growing and advancing the business in Mark is responsible for all Worley businesses in the Americas, which the EMEA and APAC regions in line
Slide 53: Speaker profiles
Speaker profiles Veréna Preston Senior Group Director, Investor Relations Registered office: Veréna is responsible for Investor Relations. Prior to this she led Internal Audit for the Group and was Managing Director Level 17, 141 Walker Street at Advisian, the consulting division of Worley, which sh