Worley Limited · ASX:WOR
Worley — Investor Day (May 2024)
52 slides from Worley's investor day presentation, May 14, 2024
Slide 1: Delivering a more sustainable world
Delivering a more sustainable world Investor Day 14 May 2024
Slide 2: Disclaimer
Disclaimer The information in this presentation about Worley markets and persistent disruption in supply chains. Limited, the entities it controls (Group) and its activities is current as at 14 May 2024 and is in While the Group has prepared this information based summary form and is not necessarily
Slide 3: Agenda
Agenda Delivering our purpose: Investing for growth: Our business of the future and drivers of growth The building blocks driving improved earnings over time over the short, medium and long term Tiernan O’Rourke Chris Ashton, CEO Chief Financial Officer Unlocking value and securing growth: Technolog
Slide 4: Delivering our purpose
Delivering our purpose Our business of the future and drivers of growth over the short, medium and long term Chris Ashton CEO Worley – Investor Day May 2024
Slide 5: Key messages
Key messages As a leading global provider of innovative sustainability solutions, 1 we're seeing long term growth trends from structural changes in our end markets. Our discipline in execution is evident in our results. We’re consistently delivering on our strategy as demonstrated by increased earni
Slide 6: Business update
Business update Factored Sales Pipeline up 14% YTD as at 31-Mar-24 • Sustainability-related work represents 82% of factored sales pipeline • Factored sales pipeline growth excluding Venture Global, up 8% YTD as at 31-Mar-24 • Traditional work in the factored sales pipeline steady as at 31-Mar-24 YTD
Slide 7: Why invest in Worley?
Why invest in Worley? We’re positioned to capitalize on this trajectory Market forces Because of our: Leading position Structural changes Enables us to benefit from the energy transition and demand shifts Substantial industry structural changes • Early mover advantage with low competitive intensity,
Slide 8: What sets us apart
What sets us apart We believe our comparative advantage is: Our people Our platform Our solutions Inspired people, values-based culture Exceptional performance and delivery Innovative and differentiated solutions Global footprint High proportion of Greater diversity Early-mover Digitally enabled Pro
Slide 9: Strategic wins
Strategic wins 2 1 8 5 9 7 10 Awards announced since H1 FY24 4 Sustainable 6 3 ~$9b ~$5b Transitional Traditional Wins YTD Sustainability-related wins YTD as at 31-Mar-24 as at 31-Mar-24 Diversity of our customers is expanding. We’re partnering with our long term customers and building relationships
Slide 10: Case studies
Shell Hydrogen Case studies Sustainable | Energy Sustainable | Resources Traditional | Energy Shell| Detailed design, procurement & Umicore| EPCM| Canada Aramco | Project management & construction support | Netherlands Battery materials manufacturing plant Engineering Services | Saudi Arabia Service
Slide 11: Unlocking Value and Securing Growth
Unlocking Value and Securing Growth Insights into macro trends, strategic priorities and our competitive edge Sue Brown Executive Group Director, Sustainability Andy Hemingway Executive Group Director, Growth Worley – Investor Day May 2024
Slide 12: Our disciplined execution of our strategy has ensured we're well on our way to delivering on our ambition
Our disciplined execution of our strategy has ensured we’re well on our way to delivering on our ambition Where we Play How we Play How we’ll Win Our Portfolio Our Signature Strengths Our Value Creation Focus We’re leading by supporting We deliver value to customers through We’re executing a portfol
Slide 13: We're seeing strong fundamentals driving long term growth in the sectors we serve
We’re seeing strong fundamentals driving long term growth in the sectors we serve Geopolitical shifts Climate change and Digital and sustainability technological transformation Megatrends Urbanization Energy and and population electrification growth Our response We’re aligned with our We’re partneri
Slide 14: The direction of travel for the energy transition is clear
The direction of travel for the energy transition is clear. The pace of progress and pathway will be driven by the energy trilemma: how to balance energy security, affordability and sustainability over time Worley – Investor Day May 2024 14
Slide 15: Where we play
Where How How we Play we Play we’ll Win Where we play We’re actively managing our portfolio of businesses. We do this by pursuing growth in a structured way in target markets with significant growth opportunities at higher margins Mature Developing Energy Lower carbon Integrated Combustion Midstream
Slide 16: Key growth markets where we have a competitive edge
Where How How Key growth markets where we have a we Play we Play we’ll Win competitive edge We are a leader in traditional, transitional and sustainable markets Energy Chemicals Resources Integrated gas Lower carbon Low-carbon Carbon Low-carbon Petrochemicals Energy transition intensity Oil hydrogen
Slide 17: Our signature strengths drive differentiated value to our customers
Where How How Our signature strengths drive we Play we Play we’ll Win differentiated value to our customers People and values- Exceptional performance Innovative and based culture and delivery differentiated solutions Our diverse talent of ~50,000 highly Knowledge premium gained from an Customer-cen
Slide 18: We have a range of strategic levers to drive value creation
Where How How We have a range of strategic levers to drive we Play we Play we’ll Win value creation for our shareholders and customers Develop (build, buy, partner) technologies Continue evaluating and investing in new New growth Technology that are complementary to our core and horizons for growth
Slide 19: Delivering projects that are shaping our industry
Delivering projects that are shaping our industry Direct air From Ambition to Reality1 capture We’re delivering reimbursable EPC for the world’s largest Direct Air Capture project with Oxy’s Broadening value Broadening 1PointFive using standardized delivery solutions value Shift from ‘economic’ to t
Slide 20: Enabling the Strategy through Transformation
Enabling the Strategy through Transformation Reimagining project delivery and the role of automation and AI Adrian Smith Executive Group Director, Transformation Worley – Investor Day May 2024
Slide 21: The role of Transformation
The role of Transformation Growth Identify strategic opportunities Delivering critical elements of the strategy Transformation through a disciplined and programmatic approach Growing our Digital Scaling new Operations consulting business enablement businesses Embed into operations Worley – Investor
Slide 22: Built accretive businesses
37 active CCUS projects across Built accretive businesses four continents (Asia, Australia, Europe, North America) Our $100m strategic investment These projects are being designed to capture or transport a total of $6.8b CCUS over 90 million tonnes per year of What we’ve gained: CO2 Contract value o
Slide 23: Worley Consulting
Worley Consulting Building on our existing footprint, we’re expanding our business globally We’re growing our offerings using digital enablement and applying alternative commercial models Our solutions translate our knowledge, data and insights to address our customers’ needs across the asset lifecy
Slide 24: Fast tracking our digital enablement
Fast tracking our digital enablement • Moving fast and early • Value focus for our customers and us • Open idea generation with centralized prioritization, development and deployment • Solution and ecosystem formation with key partners • Responsible and ethical AI: safe, secure and governed Our Adva
Slide 25: Value creation horizons as we evolve our digital enablement through the ADL
Value creation horizons as we evolve our digital enablement through the ADL 3 Margin accretive by aligning our commercial models to appropriately share in the additional 2 Boost labour value provided to our productivity, customers supporting our customers to Enable our ~50,000 Enhance operational ac
Slide 26: What's next: Reshaping the future
What’s next Reshaping the future Reimagining project delivery and the Working with our customers and partners role of automation and generative AI presents a significant opportunity We’re developing use cases under the following 6 opportunity areas: AI driven design, optimization & automation AI acc
Slide 27: Investing for Growth
Investing for Growth The building blocks driving improved earnings over time Tiernan O’Rourke Chief Financial Officer Worley – Investor Day May 2024
Slide 28: Our deliberate actions have established a solid foundation for long term growth
Our deliberate actions have established a solid foundation on which to build long term growth Sustaining Cash-generative, double-digit low-capital intensity medium-term business, What we said we’d EBITA CAGR1 What we’ve Achieved double consistently ambition deliver over time achieved digit to date E
Slide 29: Key building blocks maintain our comparative advantage and support margin upside
Key building blocks maintain our comparative advantage + support margin upside Digital enablement and Technology Solutions • On-going investment in productized process technology Operational leverage solutions and productivity • On-going investment in New work being won automation, generative AI Mar
Slide 30: We've established a range of signposts to help guide our progress
We’ve established a range of signposts to help guide our progress Digital enablement and Technology Solutions Operational leverage and productivity New work being won Market growth and at higher margins increased market share We see growth and margin Good conversion rate to These leading indicators
Slide 31: We've established a range of signposts to help guide our progress
We’ve established a range of signposts to help guide our progress Digital enablement and Technology Solutions Operational leverage and productivity4 New work being won Market growth and at higher margins increased market share Professional GID utilization services revenue % (%)1 Digital enablement3
Slide 32: Investing for the future
Investing for the future Our capital management position supports our growth plans with good liquidity, the maintenance of strong credit ratings and access to well-priced debt capital Our capital management Capital priorities for FY25 architecture Funding our growth Operating productivity Capital pr
Slide 33: Technology Solutions for the New World
Technology Solutions for the New World Expanding our existing process technology portfolio Laura Leonard Group President, Technology Solutions Worley – Investor Day May 2024
Slide 34: The energy transition is creating opportunities for new and innovative process technology
The energy transition is creating opportunities for new and innovative process technology Customers Our customers have changing needs and our customer base is expanding as new markets are developing Opportunity The result is white space for new process technology entrants across all the markets we s
Slide 35: We're leveraging our combined experience in process Technology Solutions
We’re leveraging our combined experience in process Technology Solutions Our proprietary solutions deliver value to our customers & shareholders via: 100 years 60 years Technology licenses Proprietary equipment & catalysts EPF delivery 1200+ 300+ designed and licensed gas treating and sulphur recove
Slide 36: Designing a technology portfolio for the 'new world'
Designing a technology portfolio for the ‘new world’ We are targeting a suite of technologies in highly attractive subsectors aligned with our strategy to become a material part of Worley executing build, buy and partner approach Where we play Mature Developing Energy Lower carbon Integrated Combust
Slide 37: Expanding our Technology Portfolio
Expanding our Technology Portfolio Commercializing Pseudo Expanding Specialized Scaling new battery Dry Gas System Equipment Fabrication materials technology Integrated Market │ Established, Nuclear Market │ Gaining momentum, Battery Market │ Shifting dynamics, gas steady growth significant growth m
Slide 38: Our Business in Focus
Our Business in Focus Addressing the challenges and opportunities ahead Karen Furlani Mark Brantley Executive Group Director, Group President, EMEA & Risk APAC and Project Delivery, HSE & Quality Mark Trueman Vikki Pink Group President, Americas Chief People Officer Worley – Investor Day May 2024
Slide 39: Regional updates
Regional updates Americas EMEA APAC Backlog Backlog We’re currently delivering some of the highest profile energy projects in the $5.8b The performance of the company and of our region shows how we’re making $9.0b US – Stratos and CP2. We also building as at 29-Feb-24 excellent progress toward our A
Slide 40: Our people and our culture
Our people and our culture People Risk Attraction and At a macro level, retention Worley is managing • Global voluntary turnover three key risks: We have a relentless focus on continuing the trend Culture is critical from a risk perspective. • attraction and retention of attracting the right people
Slide 41: Key messages
Key messages As a leading global provider of innovative sustainability solutions, 1 we're seeing long term growth trends from structural changes in our end markets. Our discipline in execution is evident in our results. We’re consistently delivering on our strategy as demonstrated by increased earni
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Slide 43: Supplementary information
Supplementary information Worley – Investor Day May 2024 43
Slide 44: Energy
Energy Sector Our strategy and themes differentiators • Immediate pressures from the global energy crisis conflict • We’re developing innovative solutions across traditional, have eased from highs in 2022, but energy markets transitional and sustainable work as our customers remain susceptible to sh
Slide 45: Chemicals
Chemicals Sector Our strategy and themes differentiators • Chemicals • We’re working closely with some of the world’s • Chemical demand expected to increase, driven by the largest chemical companies to help decarbonize energy transition, increasing population and their operations through energy effi
Slide 46: Resources
Resources Sector Our strategy and themes differentiators • Market fundamentals remain robust, driven by demand • We’ve built capacity and capability in the right for metals essential for the energy transition, the need commodities, in the right markets, with the right to decarbonize mining operation
Slide 47: 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-
Slide 48: Factored Sales Pipeline and Backlog
Factored Sales Pipeline and Backlog Factored Sales Pipeline1 Backlog 14.8 14.8 14.1 14.8 14.8 4E +1 0 60 .00 14.1 3.5 E+10 18% 3.6 4.2 4.4 17% 55 .00 7.2 7.0 3E +1 0 7.4 2.5 E+10 50 .00 2.8 3.4 3.5 33% 37% 2.0 1.9 2E +1 0 42% 45 .00 82% 1.3 7.7 7.2 6.9 1.5 E+10 47% 23% 40 .00 5.4 5.6 5.9 1E +1 0 46%
Slide 49: Low-carbon hydrogen
Number of wins in different project phases for sustainability-related1 work in FY24 as at 31-Mar-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
Slide 50: Glossary
Glossary $, $m, $b – Australian dollars unless otherwise stated, Australian GID - Global Integrated Delivery millions of dollars, Australian billions of dollars GTL – Gas to liquids APAC - Australia, Pacific, Asia & China gm – Gross margin AI – Artificial Intelligence k – thousand CAPEX - Capital ex
Slide 51: 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
Slide 52: Registered office
Registered office: Level 17, 141 Walker Street North Sydney NSW 2060 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 – Investor Day May 2024 52