Worley Limited · ASX:WOR
Worley — WorleyParsons — Investor Day (September 2015)
119 slides from Worley's investor day presentation, Sep 9, 2015
Slide 1: Realize our future
-Realize our future (or = LL
Slide 2: Disclaimer
Disclaimer For personal use only The information in this presentation about the WorleyParsons Group and its activities is current as at 26 August 2015 and should be read in conjunction with the Company’s Appendix 4E and Annual Report for the full year ended 30 June 2015. It is in summary form and is
Slide 3: New York City Investor Day 2015
For personal use only New York City Investor Day 2015 Andrew Wood
Slide 4: OneWay Elements
For personal use only OneWay 12 Elements 4
Slide 5: OneWay to Zero Harm
OneWay to Zero Harm Our safety performance is among the best For personal use only ► Employee Total Recordable Case Frequency Rate (TRCFR) for FY2015 was 0.12 (FY2014: 0.10) ► Achieved a 25% reduction in frequency rate for all employees and managed contractors ► The Group’s HSE Committee has determi
Slide 6: Agenda
Agenda For personal use only ► Financial Year 2015 in review Context ► Strategic framework Corporate ► Purpose strategy ► Realize our future ► 5 strategic themes, 5 projects ► Hydrocarbons Sector ► Minerals, metals and chemicals strategies ► Infrastructure ► Risk management framework ► Headroom and
Slide 7: Financial Year 2015 in review - Overview
Financial Year 2015 in review - Overview Positioning for the future For personal use only ► Subdued activity across total resource sector, both capex and opex ► Revenue remains resilient – high proportion reimbursable ► Customers reporting improved performance ► Cost reduction to stay competitive ►
Slide 8: Group Financial Highlights year trend
Financial Year 2015 in review - Group Financial Highlights 5 year trend For personal use only Aggregated revenue Underlying EBIT Underlying NPAT Cashflow from operations $7,227.5m $355.7m $198.6m $251.3m Underlying result 8
Slide 9: Headcount movements
Financial Year 2015 in review – Headcount movements Continually adjusting the business to suit the market For personal use only Global headcount Headcount Change to Prior Month * Economic downturn Mining Crude price during GFC downturn decline Jul-08 Jan-09 Jul-09 Jan-10 Jul-10 Jan-11 Jul-11 Jan-12
Slide 10: Utilization trending upwards
Financial Year 2015 in review – Utilization trending upwards Monthly hours charged versus utilization rate For personal use only 1500000 Hours Charged Utilization rate 84 1400000 1300000 82 1200000 80 1100000 78 1000000 900000 76 800000 74 700000 72 600000 500000 70 10
Slide 11: Taking action
Financial Year 2015 in review – Taking action Other cost reduction measures For personal use only ► Transferring selected operations to lower cost execution centers ► Transitioning IT costs from fixed to variable ► Increasing occupancy levels in offices ► Lowering average cost of debt 6.0% Cost of d
Slide 12: Contract revenue contribution
Financial Year 2015 in review - Contract revenue contribution Majority of earnings come from smaller contracts For personal use only 9,000 Contribution to aggregated revenue ($m) 7,627 7,364 Aggregated revenue ($m) 8,000 7,227 7,000 1,613 863 624 6,000 637 753 884 597 556 5,000 302 4,000 3,000 4,828
Slide 13: Regional contribution to revenue
Financial Year 2015 in review – Regional contribution to revenue EURMENA region growing its contribution For personal use only 9,000 Contribution to aggregated revenue ($m) 7,627 7,364 Aggregated revenue ($m) 8,000 288 7,227 394 391 7,000 393 325 409 6,000 1,337 1,713 1,896 5,000 4,000 3,307 3,000 3
Slide 14: Group profile
Group profile Strength from diversity For personal use only Capex vs opex 85% 15% Capex Opex Commercial model Typical 1 – 60 85% 15% project Reimbursable Fixed price/Lump Sum duration months Business lines Typical 1 – 36 65% 12% 13% 10% order book Services Major Projects Improve Advisian visibility
Slide 15: Significant awards
Financial Year 2015 in review - Significant awards 105 significant awards, 16 awards announced to ASX For personal use only 2 18 2 8 Significant awards have over $1 million EBIT over the contract life. ASX announcements are contracts 15 with over $5 mil EBIT over the contract life or strategic award
Slide 16: Agenda
Agenda For personal use only ► Financial Year 2015 in review Context ► Strategic framework Corporate ► Purpose strategy ► Realize our future ► 5 strategic themes, 5 projects ► Hydrocarbons Sector ► Minerals, metals and chemicals strategies ► Infrastructure ► Risk management framework ► Headroom and
Slide 17: Strategic framework
Strategic frameworkThe scope of presentation Corporate and global sector strategies For personal use only The strategy pyramid shows how the various layers of strategic effort fit together. The 4 levels are 1. Corporate Strategy 2. Global Sector Strategy 3. “Regional” Strategy 4. “Location” Strategy
Slide 18: Purpose
For personal use only Purpose 18
Slide 19: Realize our future
Realize our future Many stories For personal use only NPAT Context: External changes Technical time Capability & Local Presence A company that… Five Strategic Themes Five projects Vision & Purpose 19
Slide 20: Realize our future – External challenges
Realize our future – External challenges For personal use only STRATEGY WEDGE Willingness to Pay X Quantity 1 2 3 Costs 20
Slide 21: The paradigm shift from peak oil to shale revolution
The paradigm shift from peak oil to shale revolution Structural shift in the hydrocarbons market For personal use only ► Oil market investment over the last decade driven by concept of peak oil ► Drove investment into frontier regions and harder to extract reserves ► Shale revolution in North Americ
Slide 22: Return on investment declined long before commodity price falls
Return on investment declined long before commodity price falls Customers were questioning investments in 2013 For personal use only 22
Slide 23: Long term strategy based on unstoppable trends
Long term strategy based on unstoppable trends OPPORTUNITIES FOR WORLEYPARSONS For personal use only Growth of renewables Climate Power Plant Retrofits, Decoms and Advisory service Change Carbon Capture & Storage Continued investment in new and existing developments Urbanisation Access to water with
Slide 24: Near term, business re-positioning for recent market shifts
Near term, business re-positioning for recent market shifts For personal use only OPPORTUNITIES FOR WORLEYPARSONS • Asset productivity enhancement focus Oil Price Shock • Enhanced Oil Recovery • Refining industry margins uptick • Increase in Chemicals activity in SE Asia and ME Low Gas Price • Chemi
Slide 25: Realize our future – through the strategy for growth
Realize our future – through the strategy for growth For personal use only Strategy for growth NPAT Minor adjustments Do nothing time 25
Slide 26: Realize our future - Vision
Realize our future - Vision For personal use only A company that… 26
Slide 27: Realize our future – based on our key differentiator
Realize our future – based on our key differentiator For personal use only Technical Capability & Local Presence 27
Slide 28: Focus on front end and Improve
Focus on front end and Improve Selective delivery offerings For personal use only 28
Slide 29: Strategic themes, projects
5 strategic themes, 5 projects One differentiated strategy For personal use only 29
Slide 30: The right team
The right team Leading and delivering For personal use only 30
Slide 31: Advisian
For personal use only Advisian WorleyParsons Group
Slide 32: Introducing Advisian
Project 1 Introducing Advisian For personal use only Advise + Technician = Advisian Advisian is our new independent advisory and consulting business that sits alongside our other business lines of Services, Major Projects and Improve. Advisian combines the technical consulting capabilities of Worley
Slide 33: Responding to the world's unstoppable trends
Project 1 Responding to the world’s unstoppable trends For personal use only By 2030 the global population will be approximately 8.3 billion and the • Accelerating urbanisation world will need: • Water scarcity • Climate change • Resource scarcity • Food security • Social license • Technological cha
Slide 34: Our response is to build a global advisory and consulting business
Project 1 Our response is to build a global advisory and For personal use only consulting business Leverage the deep domain Globally knowledge of 30,000 people connected at WorleyParsons workforce Bring together all consulting capabilities • Evans & Peck • MTG • EcoNomics Solutions across the • Worl
Slide 35: Over 3,000 consultants in countries
Project 1 Over 3,000 consultants in 19 countries For personal use only 35 35
Slide 36: Identifying growth potential by sector and geography
Project 1 Identifying growth potential by sector and For personal use only geography 36
Slide 37: Building the right mix of management and technical consulting
Project 1 Building the right mix of management and For personal use only technical consulting Advisian FY15 Advisian FY16 with Consulting, Advisian future launch Select & INTECSEA state Strategic Consulting Management Consulting Niche/Specialist Consulting Technical Consulting 37
Slide 38: Advisian vs competitors
Project 1 Advisian vs competitors For personal use only 38 Advisian 38
Slide 39: What makes us different?
Project 1 What makes us different? For personal use only Combination of Deep domain knowledge Global reach, We advise across the Strategic, Management backed by real-world local delivery entire business and and Technical experience asset lifecycle Consulting expertise The combination of strategic, O
Slide 40: A diverse and experienced management team
Project 1 A diverse and experienced management team For personal use only * Joined in the last 18 months 40 40
Slide 41: In Summary
Project 1 In Summary For personal use only ► Advisian launched in late 2014 with the merger of three businesses - Evans & Peck, WorleyParsons EcoNomics™ and the newly acquired MTG ► The transfer of the WorleyParsons Technical Consulting, Select and INTECSEA into Advisian was completed on 1 July 2015
Slide 42: For personal use only
For personal use only
Slide 43: Introducing Major Projects
Project 2 Introducing Major Projects For personal use only Major Projects offers our customers specialization in the delivery of large complex projects. The creation of the Major Projects business line reflects our customers’ organizations. It is a global business that supports large and complex pro
Slide 44: Major Projects
Project 2 Major Projects For personal use only Capex vs opex 100% Capex Opex % of Group 12% revenue Sectors Typical 12 – 36 project 93% 7% duration months Hydrocarbons MM&C Infrastructure Typical 12 – 18 order book Customers visibility months 75% 25% Tier 1 Tier 2 & 3 Other (Government, NOC, EPC) Th
Slide 45: Be the global PMC provider of choice
Project 2 Be the global PMC provider of choice For personal use only CONTEXT RESPONSE Owners looking to transfer ► Move away from more risk to EPC/EPCm commodity services into Customers seeking PMC roles projects with less ► Complement EPCm intensive engineering ► Focus on advances in standardiz
Slide 46: Be the global PMC provider of choice
Project 2 Be the global PMC provider of choice Phase 1 – well underway For personal use only ► Build on the long history of PMC delivery in the Middle East, LAM and SSA ► Broaden the range of customers in these geographies ► Tailor PMC services for key IOCs and O/S expanding NOCs ► Maximise the near
Slide 47: Be the global PMC provider of choice
Project 2 Be the global PMC provider of choice Phase 2 – started For personal use only ► Deploy our Digital Enterprise division to create a data-centric PMC platform & set the standard for customer use of digital data ► Drive the PMC offering into the other Sectors & other geographies ► Provide real
Slide 48: Introducing Improve
Project 3 Introducing Improve For personal use only The Improve business line provides our customers with global best practice solutions to optimize the performance of their operating assets. It is a global business line that provides relationship based support to our customers’ global-scale assets,
Slide 49: Improve
Project 3 Improve For personal use only Capex vs opex 85% 15% Capex Opex % of Group 13% revenue Sectors Typical 36 – 60 relationship 85% 15% duration months Hydrocarbons MM&C Infrastructure Typical 12 – 36 order book Customers visibility months 50% 45% 5% Tier 1 Tier 2 & 3 Other (Government, NOC, EP
Slide 50: Build a leading Improve business
Project 3 Build a leading Improve business For personal use only CONTEXT RESPONSE Customers, in the mature ► Continue to focus on the key basins, increasingly want an basins, that allow us to integrated offering leverage our existing strengths Whilst CAPEX is constrained , and global customer OP
Slide 51: Build a leading Improve business
Project 3 Build a leading Improve business Phase 1 – well underway For personal use only ► Continue to meet the needs of customers in these challenging times ► Focus on those customers seeking a more integrated service ► Focus on key basins where we hold a differentiated position across Offshore , P
Slide 52: Build a leading Improve business
Project 3 Build a leading Improve business Phase 2 – started For personal use only ► Diversify services offered in home basins ► Follow existing global customers into new regions ► Duplicate the heritage “domain knowledge” led strategy into other growth subsectors across the globe , such as water 52
Slide 53: Introducing Services
Project 4 Introducing Services For personal use only The Services business line utilizes the knowledge and capability throughout our global organization to deliver solutions for our local customers. Services works hand in glove with Major Projects, Improve and Advisian to ensure we do what is right
Slide 54: Services
Project 4 Services For personal use only Capex vs opex 80% 20% Capex Opex % of Group 65% revenue Sectors Typical 1 – 24 contract 70% 15% 15% duration months Hydrocarbons MM&C Infrastructure Typical 3–6 order book Customers visibility months 25% 60% 15% Tier 1 Tier 2 & 3 Other (Government, NOC, EPC)
Slide 55: Be the smartest, most agile local service provider
Project 4 Be the smartest, most agile local service provider For personal use only CONTEXT RESPONSE Our strong local relationships ► Avoid / move from and wide geographic coverage commoditized market segments remain key differentiators ► Focus on improving our Whilst some of our local customer’s
Slide 56: Be the smartest, most agile local service provider – Phase 1
Project 4 Be the smartest, most agile local service provider Phase 1 – Completed For personal use only ► Address immediate financial priorities (utilization, overhead, cash collection) ► Improve ROIC of bottom 10 locations ► Simplify our business 56
Slide 57: Be the smartest, most agile local service provider – Phase 2
Project 4 Be the smartest, most agile local service provider Phase 2 – well underway For personal use only ► Empowered locations to pursue opportunities available in their market ► Support customers meet localization mandates ► Focus on growing locations where we can be No 1 of 3 ► Stewards the inte
Slide 58: Services – Local delivery of global capability
Project 4 Be the smartest, most agile local service provider Services – Local delivery of global capability For personal use only Case study ► A single organization to deliver EPC services • Engineering design completed between Beijing and Calgary • Prefabricated steel and piping shipped to WorleyPa
Slide 59: Introducing the Global Delivery Center
Project 5 Driving the use of global delivery centres and applying digital technology to revolutionize the delivery of our services Introducing the Global Delivery Center For personal use only The Global Delivery Center supports all four business lines to deliver lower cost engineering services to ou
Slide 60: Be the company that leapfrogs the competition in global delivery centers
Project 5 Be the company that leapfrogs the competition in the use For personal use only of global delivery centers and applies digital technology to revolutionize the delivery of our services CONTEXT RESPONSE In the short term the ► Immediately boost our economic environment competitiveness throu
Slide 61: Global Delivery Center
Project 5 Driving the use of global delivery centres and applying digital technology to revolutionize the delivery of our services Global Delivery Center For personal use only ► Benefits to all four business lines ► More competitive positions while protecting margins ► Phase 1: Well underway • Accel
Slide 62: Services – Local delivery of global capability
Project 5 Driving the use of global delivery centres and applying digital technology to revolutionize the delivery of our services Services – Local delivery of global capability For personal use only Case study ► GDC delivered commercial savings for our Canadian oil sands customer • Key factor in wi
Slide 63: Projects
5 projects One differentiated strategy For personal use only 63
Slide 64: Agenda
Agenda For personal use only ► Financial Year 2015 in review Context ► Strategic framework Corporate ► Purpose strategy ► Realize our future ► 5 strategic themes, 5 projects ► Hydrocarbons Sector ► Minerals, metals and chemicals strategies ► Infrastructure ► Risk management framework ► Headroom and
Slide 65: Sector Strategies
For personal use only Sector Strategies Andy Cole
Slide 66: Sector intent
Sector intent For personal use only HYDROCARBONS • Balanced revenue from upstream, midstream and downstream • Provide the platform for earnings diversification MINERALS, METALS & CHEMICALS • Broaden across the entire value-chain (Select > Deliver > Improve) • Grow Chemicals into a standalone sector
Slide 67: Hydrocarbons
For personal use only Sector strategies Hydrocarbons
Slide 68: Our Hydrocarbons business in FY15
Our Hydrocarbons business in FY15 Dominated by exposure to upstream, greenfields and Tier 1s For personal use only Upstream Sector growth has underpinned much of our growth over the last decade Midstream Downstream Upstream Greenfields developments have dominated as our customers strived to meet dem
Slide 69: Recent customer trends
Recent customer trends ► Prior to the oil price shock: Oil company profits were already being eroded by the For personal use only increasing level of investment required to produce incremental barrels of oil ► Margins already ► T1 Procurement Tier 1 squeezed prior to oil departments have price shock
Slide 70: Strengthen by diversification
Strengthen by diversification For personal use only (1) (2) (3) 70
Slide 71: Grow in midstream and downstream
Grow in midstream and downstream Earnings growth channel 1: Stream For personal use only Head room for growth available in Midstream and Downstream Midstream Pipelines Downstream Midstream LNG Upstream Upstream Refining Downstream Petrochemicals ► Peg the gains we have made over the last 2 decades i
Slide 72: Grow OPEX exposure
Grow OPEX exposure Earnings growth channel 2: Expenditure For personal use only Access both CAPEX and OPEX over the asset lifecycle Greenfields (CAPEX) Greenfields Brownfields Brownfields (CAPEX + OPEX) Differentiator/ Offering 1. foc Production enhancement / Profit improvement Advisory Improve busi
Slide 73: Diversify customer base
Diversify customer base Earnings growth channel 3: Customer For personal use only Maintain current Tier 1 relationships and develop Tier 2, NOC and Asian EPC customer base Tier 2 Tier 1 Tier 2 Tier 1 Tier 1 Tier 3 Tier 3 Asian EPC NOC Asian EPC NOC ► Maintain and leverage current Tier 1 customer rel
Slide 74: Customer view
Customer view Regarded by Hydrocarbons customers as the market leader For personal use only Source: AlphaWise, Morgan Stanley Research, 20 March 2015, WorleyParsons Ltd. Asia Insight: Franchise discount unwarranted 74 74
Slide 75: Minerals, Metals & Chemicals
For personal use only Sector strategies Minerals, Metals & Chemicals
Slide 76: Where is our business now?
Where is our business now? Minerals, Metals and Chemicals sector For personal use only MINERALS & METALS CHEMICALS • Subdued commodity • Buoyant demand prices • Strong capex • Low capex environment • New low cost feedstock • Cost focus Revenue breakdown 76
Slide 77: Minerals & Metals customer trends
Minerals & Metals customer trends For personal use only ► Pressure to “sweat the assets” and for responsible capital management ► Big miners have financial capacity to invest in innovation / new technology (eg IROC, Process Centres, Mines of the Future) Tier 1’s ► Divesting non core assets (eg BHPB
Slide 78: Minerals and Metals Strategy
Minerals and Metals Strategy Build out our offering across the entire mining value chain For personal use only Resource ► Broaden the revenue base via building out our offering to service the full value chain from the initial Advisory consulting assignments to the management of the eventual facility
Slide 79: Moving upstream in the value chain
Moving upstream in the value chain For personal use only Maintain strong technical depth Services across the full Mining Global business underpinned across a portfolio of Minerals & value chain and asset lifecycle by the four sustainable regions Metals The Mining Value Chain VALUE CHAIN EXTENSION: P
Slide 80: Build technical depth across the portfolio
Build technical depth across the portfolio For personal use only Maintain strong technical depth Services across the full Mining Global business underpinned across a portfolio of Minerals & value chain and asset lifecycle by the four sustainable regions Metals STRENGTH THROUGH DIVERSITY: Position fo
Slide 81: Focus on the regions
Focus on the 4 regions For personal use only Maintain strong technical depth Services across the full Mining Global business underpinned across a portfolio of Minerals & value chain and asset lifecycle by the four sustainable regions Metals The Mining Value Chain FOCUSED GEOGRAPHIES: Position for up
Slide 82: Chemicals market trends
Chemicals market trends For personal use only ► Chemicals customer portfolios continue to grow to meet consumer demand Tier 1 customer ► Complexities of feedstock change impacting investment priorities focus • Investments strategies re-visited • Feedstock supply/demand and pricing (oil vs gas) uncer
Slide 83: Chemicals Strategy
Chemicals Strategy China to the world For personal use only ► Further investment in our China based International Chemicals hub is a key component of our global Chemicals strategy ► Providing a highly competitive delivery solution to our customers globally Service offering across full asset lifecycl
Slide 84: China to the World
China to the World For personal use only Using our strength in China together with the associated cost advantages Build out across the 4 subsectors of Petrochemicals , Polymers , Inorganics and Speciality Chemicals Multiple global relationships with targeted Tier 1 customers China 84
Slide 85: Build-out of capability
Build-out of capability For personal use only Using our strength in China together with the associated cost advantages Build out across the 4 subsectors of Petrochemicals , Polymers , Inorganics and Speciality Chemicals Multiple global relationships with targeted Tier 1 customers Source: BHP Billito
Slide 86: Tier customer focus
Teir 1 customer focus For personal use only Using our strength in China together with the associated cost advantages Build out across the 4 subsectors of Petrochemicals , Polymers , Inorganics and Speciality Chemicals Multiple global relationships with targeted Tier 1 customers 86
Slide 87: Infrastructure
For personal use only Sector strategies Infrastructure
Slide 88: Infrastructure: Where is our business now?
Infrastructure Where is our business now? For personal use only Customers: Even split between public and resource Scope: Focus has been on Greenfields Long-term customers Public Sector Undifferentiated Public & Brownfields Resource Utilities Sector Resource Greenfields Long-term Public & Utilities S
Slide 89: Customer trends
Customer trends For personal use only ► Pressure to “sweat” assets given low commodity prices ► Downsizing overheads and personnel Resources ► Cutting CAPEX and delaying new projects customers ► Continuing with enabling studies to position for finance ► Divesting non core assets (Tier 1s selling pow
Slide 90: Power
Power Energy demand forecast to grow circa 20% to 2030 For personal use only Source: BHP Billiton, 24 Nov 2014 90
Slide 91: Water
Water Opportunities in advisory, sourcing, treatment and disposal For personal use only 91
Slide 92: Ports
Ports Seaborne trade rising 4.1% this year For personal use only 92
Slide 93: Rail
Rail Global rail travel is projected to double by 2050 For personal use only Railway Projections (thousand track‐km) Source: International Energy Agency 93
Slide 94: Infrastructure strategy
FY16 Infrastructure Infrastructure strategy Strategy Shift from undifferentiated public sector to resource and long-term public customers Balanced greenfield and brownfield customer portfolio For personal use only Long-term Customer Type Public Sector Brownfields Undifferentiated Resource ► Target H
Slide 95: FY16 Sector strategy Summaries
FY16 Sector strategy Summaries For personal use only HYDROCARBONS • Balanced revenue from upstream and midstream / downstream • Access both CAPEX and OPEX revenue streams MINERALS, METALS & CHEMICALS • Extend services across the full value chain • Strengthen the sub-sector offerings through deep ind
Slide 96: Financial
For personal use only Financial Simon Holt
Slide 97: Financial management
Financial management Managing 4 key financial risks For personal use only ► Currency • Matching currency of revenue to the currency of costs • Negotiated rate adjustments based on exchange rate fluctuations • Cross currency swaps • Translation risk for currencies other than AUD ► Interest rate • 95%
Slide 98: Currency management
Currency management Natural hedge on P&L For personal use only Currency % of Underlying Average Weighted Group EBIT movement % average impact • FX impact on Underlying % Group EBIT was $11.2 CAD 24 1 0.13 mil or 3.2% USD - unpegged 13 3 0.71 USD - pegged 7 10 0.41 • P&L impact based on GBP 12 5 0.65
Slide 99: Liquidity management – Gearing ratio
Liquidity management Gearing ratio within target range For personal use only Gearing ratio (%) 40% 35% 30% Target range 25% 20% 15% FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 HY2015 FY2015 Gearing ratio = net debt/net debt + equity 99
Slide 100: Liquidity management – Financial flexibility
Liquidity management Adequate financial flexibility For personal use only Net debt/EBITDA (times) 20 EBITDA/Interest expense 3 (times) 2.5 15 2 1.5 10 1 5 0.5 0 0 Key financial covenant exclude non-cash non-recurring items calculated on rolling 12 months 100
Slide 101: Key financial drivers of debt covenants
Liquidity management Key financial drivers of debt covenants For personal use only Financial drivers Impact Commentary EBITDA Higher EBITDA 12 months to 30 June improves headroom on affected by one off covenants charges Foreign exchange Impacts gross debt FX impact on gross based on USD:AUD debt was
Slide 102: Liquidity management – Long dated debt
Liquidity management Long dated debt For personal use only Facility type profile $m 800.0 600.0 400.0 200.0 0.0 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 Bilateral Syndicated USPP 1,000 Debt facility utilization profile $m 800 600 400 200 - FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2
Slide 103: Financial framework
Financial framework Current priorities For personal use only ► Existing business needs circa capex $70 – 80 mil • Increased requirement in FY2016 and FY2017 to fund eBIS ► Maintain flexibility to pursue growth • Organic growth requires working capital investment of circa 3 months salary per employee
Slide 104: Strategy funding requirements
Strategy funding requirements Returning capital to shareholders For personal use only Dividend history 200 90.0% 180 79.6% 80.0% 160 70.8% 70.8% 69.7% Cents per share 70.0% 140 64.7% Payout ratio % 63.6% 120 57.8% 60.0% 100 50.0% 80 55 51 51 60 50 51 40 40.0% 40 22 30.0% 20 38 35.5 36 40 41.5 34 34
Slide 105: Summary
For personal use only Summary Andrew Wood
Slide 106: Writing our own story
Summary Writing our own story For personal use only ► Story commenced with our restructure in 2014 ► Clear vision for the company ► Period of transition ► Responding to current market conditions ► Adapting to unstoppable trends ► Corporate strategy delivered through 5 projects ► Robust sector strate
Slide 107: Supplementary slides
For personal use only Supplementary slides
Slide 108: Group Financial Profile
Group Financial Profile Redundancy and onerous lease charges lower 2H result For personal use only FY2015 FY2014 vs. FY2014 1H2015 2H2015 Aggregated revenue1 ($m) 7,227.5 7,363.7 (2)% 3,613.7 3,613.8 Underlying EBIT2 ($m) 355.7 452.2 (21)% 180.8 174.9 Underlying EBIT margin 4.9% 6.1% (1.2)% 5.0% 4.8
Slide 109: Non-trading items
Non-trading items YOY result down only 11% after adjustment For personal use only FY2015 ($m) FY2014 ($m) Additions Fair value gain - 11.4 Sub-total additions - 11.4 Subtractions Impairment of goodwill (198.6) - Redundancies, post tax (27.3) (9.8) Onerous leases & write down of leasehold improvement
Slide 110: Operational results by business line
Operational results by business line Adjusting for charges For personal use only FY2015 FY2014 vs. FY2014 Aggregated revenue1 ($m) 7,227.5 7,363.7 (2)% Services 5,501.4 5,618.2 (2%) Major Project 922.7 862.9 7% Improve 649.0 785.6 (17%) Development 154.4 97.0 59% FY2015 FY2014 Normalized Normalized
Slide 111: Operational results by sector
Operational results by sector Adjusting for charges For personal use only FY2015 FY2014 vs. FY2014 Aggregated revenue1 ($m) 7,227.5 7,363.7 (2)% Hydrocarbons 5,332.1 5,371.5 (1%) MM&C 903.7 1065.9 (15%) Infrastructure 991.7 926.3 7% FY2015 FY2014 Normalized Normalized EBIT EBIT margin (%) margin (%)
Slide 112: Advisian
Project 1 Advisian For personal use only Capex vs opex 70% 30% Capex Opex % of Group 10% revenue Sectors Typical 2 – 12 project 50% 10% 40% duration months Hydrocarbons MM&C Infrastructure Typical 3–6 order book Customers visibility months 30% 60% 10% Tier 1 Tier 2 & 3 Other (Government, NOC, EPC) T
Slide 113: Andrew Wood
Andrew Wood Chief Executive Officer For personal use only Andrew was appointed as Chief Executive Officer effective 23 October 2012. With a tenure of over 21 years with the Group, and over 34 years’ experience in the resources and energy industry, Andrew has extensive knowledge across the Group. His
Slide 114: Filippo Abba
Filippo Abba Group Managing Director – Major Projects For personal use only Filippo is accountable for the growth and performance of both the nominated global Major Projects’ portfolio and Improve relationships within WorleyParsons. Prior to joining WorleyParsons, Filippo held a number of senior rol
Slide 115: Andy Cole
Andy Cole Group Managing Director - Strategy For personal use only Andy is responsible for the development of the Corporate and Sector level growth strategy within WorleyParsons which covers all operating business lines and addresses the Hydrocarbons, Minerals & Metals, Chemicals and Infrastructure
Slide 116: Dennis Finn
Dennis Finn Group Managing Director – Advisian For personal use only Dennis is responsible for Advisian, WorleyParsons’ global advisory and consulting business. Dennis joined WorleyParsons from PwC in 2014 and has a strong background in transformational change, global strategy and high impact custom
Slide 117: Simon Holt
Simon Holt Chief Financial Officer For personal use only Simon is the Chief Financial Officer and has overall responsibility for finance including Treasury, Property Leasing, Tax, Shared Services, Information Management, Corporate Procurement, Travel, Corporate Finance and Reporting. Simon also has
Slide 118: Chris Parker
Chris Parker Regional Managing Director – North America Services For personal use only Chris is responsible for the North America Services Region. Chris has over 30 years’ experience across a wide range of sectors including oil and gas, petrochemicals, power generation and infrastructure. Chris join
Slide 119: Fran van Reyk
Fran van Reyk Director Investor Relations and Group Communications For personal use only Fran is responsible for day to day contact with investors as well as the Group’s external and internal communications functions. Prior to joining WorleyParsons in 2012, Fran held a number of senior positions in