Slide 1: Half year results 2022
2022 Half year results energy | chemicals | ley
Slide 2: Acknowledgement of Traditional Custodians
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 operate. Bili Yilam: Bluetongues Home by Australian Indigenous artist Mick Harding ww
Slide 3: Disclaimer
Disclaimer The information in this presentation about Worley Limited, the entities it controls (Group) and its activities is current as at Nothing in this presentation should be construed as either an offer to sell or solicitation of an offer to buy or sell Worley 23 February 2022 and should be read
Slide 4: Agenda
Agenda 1 2 3 Business Half year Outlook performance and financial results strategic progress 2022 Chris Ashton Tiernan O’Rourke Chris Ashton Worley - Half year results 2022 4
Slide 5: Key messages
Key messages 1 Our half year result is indicative of continued market improvement and is consistent with the outlook provided at FY21 2 Our business is positioned for long- term success and we are accelerating the execution of our strategy 3 We continue to see positive indicators for growth Worley -
Slide 6: Business performance and strategic progress
Business performance and strategic progress Chris Ashton, Chief Executive Officer Worley - Half year results 2022 6
Slide 7: We support healthy lives and promote well-being
We support healthy We value Life lives and promote well-being Our “Life matters” program continues to raise awareness and importance • Our highest priority is to keep our people safe and well of mental, social and physical well-being. • Our people continue to show remarkable flexibility in a dynamic
Slide 8: H1 FY22 result
H1 FY22 result Delivered improved quality of earnings $4,368m $251m 5.7% Above target Aggregated revenue Underlying EBITA EBITA margin Utilization vs $4,498m in H1 FY21 vs $207m in H1 FY21 vs 4.6% at H1 FY21 Headcount steady4 $1.4b $15.1b 12% 25c per share Sustainability aggregated Backlog2 Increase
Slide 9: Delivering on our ESG business commitments
H1 FY22 result Delivering on our ESG business commitments AAA 41% 50%+ 40,000+ Rated by MSCI Scope 1 & 2 emissions Graduates recruited were of our people trained in Code of reduction female Conduct / data privacy Sixth consecutive year up from 46% in FY21 at FY21 vs FY20 B 12k tCO2e 20% ISO 27001 CD
Slide 10: Result driven by improvement in key metrics
Result driven by improvement in key metrics1 Underlying EBITA Underlying EBITA margin m$ 21% % 1.1pp 300 6 200 4 100 2 0 0 H1 FY21 H2 FY21 H1 FY22 H1 FY21 H2 FY21 H1 FY22 Aggregated revenue Backlog Sales pipeline2 Holding 12% 30% b$ b$ Pipeline trend (b$) 5 15 10 2.5 5 0 0 H1 FY21 H2 FY21 H1 FY22 at
Slide 11: Backlog increasing
Backlog increasing • Backlog up 6% at 31 December 2021 vs 30 June 2021 Backlog ($b) • Increase is due to both new wins and renewal of 15.1 15.1 activity levels on long-term contracts 14.3 14.3 1.7 Traditional • Traditional and sustainability components are growing 1.8 4% across all regions 5.5 6.1
Slide 12: Factored sales pipeline increasing
Factored sales pipeline1 increasing Growth in sustainability and traditional opportunities Factored sales pipeline (contract value $) • Increasing sustainability pipeline indicative of progress towards our target for revenue to be 75% sustainability 48% related 12% sustainability • Average sustainab
Slide 13: Delivering a more sustainable world
We’re driven by a common purpose… ….delivering a more sustainable world This drives our transformation We’re delivering on our strategy1 Sustainability revenue and We’re accelerating our Our traditional business opportunities growing across strategic transformation by continues to be an important al
Slide 14: Our strategic portfolio
Our strategic portfolio Sustainability pathways Decarbonization • Resource stewardship • Asset sustainability • Environment and society Our core markets Our growth markets Evolving our core markets as we support our Accelerating sustainability-focused growth customers with the energy transition mark
Slide 15: Strategic wins in sustainability
Strategic awards Strategic wins in sustainability Carbon capture project win for Humber Zero in the UK Anson Resources awards Paradox Lithium Bromine project, US ~ $5b wins DAC-to-fuels with Oxy Low Carbon Ventures, subsidiary of Occidental, Canada Early project phases progressing into next phases i
Slide 16: Featured case study: Shell hydrogen and SAF projects
“ Featured case study 1 We can only make Shell’s transformation and the energy transition successful when we work together with strong partners. We are therefore proud to collaborate with Worley, helping to engineer a more sustainable world.” - Jos van Winsen, General Manager, Energy and Chemicals P
Slide 17: Humber Zero carbon capture facility
“ Featured case study 2 Worley has extensive expertise and Low-carbon energy | Decarbonization experience in delivering the critical phases VPI Immingham LLP | UK of major projects” - Jonathan Briggs, VPI Project Director for Humber Zero. Humber Zero carbon capture facility FEED contract for a post-
Slide 18: World-scale chemical recycling plant
“ Featured case study 3 Trinseo chose Worley and Synova Chemicals and fuels | Resource stewardship to move forward with because of Trinseo | Belgium their leadership in their respective areas, the efficiency World-scale chemical and maturity of their technologies and approaches, recycling plant and
Slide 19: Sustainable battery grade lithium project
Featured case study 4 “ Resources | Decarbonization Galaxy | Argentina Worley is a leading global engineering firm and has been Supporting the development involved in all aspects of lithium of sustainable, global battery brine operations which will be invaluable in executing our DFS grade lithium pr
Slide 20: Aramco offshore contracts and Ras Tanura residue upgrade
Featured case study 5 Conventional Energy | Traditional Chemicals | Traditional Saudi Aramco | Saudi Arabia Saudi Aramco | Saudi Arabia Extension of contracts for Residue upgrade at Aramco’s Aramco’s offshore facilities Ras Tanura refinery We have held these contracts for the past Advisian, our cons
Slide 21: Strategic progress: our ambition
Strategic progress Our ambition will set the direction for our transformation TRANSFORMATION AMBITION PURPOSE Delivering a more We will be We are transforming into a sustainable world recognized globally high-value solutions as the leader in provider enabled by sustainability knowledge, data, soluti
Slide 22: Delivering our ambition
Delivering our ambition Our Ambition Achievements Our People • We foster a safe, inclusive and innovative work environment • Sustainability and D&I metrics embedded into leader and corporate We energize and that inspires our people scorecards empower our • We provide outstanding opportunities to lea
Slide 23: Delivering our ambition (cont'd)
Delivering our ambition (cont’d) Operational Priorities Achievements Operational • Quality of earnings improvement • Utilization above target (87%+) excellence • 120% growth in GID hours compared to H1 FY21 and utilization steadily • Utilization targets increasing • Resource management • DSO is 62 d
Slide 24: Half year financial results 2022
Half year financial results 2022 Tiernan O’Rourke, Chief Financial Officer Worley - Half year results 2022 24
Slide 25: Financial headlines
Financial headlines Aggregated revenue $4,368m Compared to $4,498m in H1 FY21 Performance Cash generation Underlying EBITA $251m Compared to $207m in H1 FY21 Gearing1 22.8% Below target range 25 -35 % Capital management Leverage2 2.2x Compared to 2.0x at 30 June 2021 Liquidity3 $1,409m Compared to $
Slide 26: Americas
Americas Sector aggregated Sustainability revenue (%) aggregated revenue (%) Highlights • Continued focus on health, safety and well-being of our people in COVID’s sustaining 75% presence 45% • Slower ramp-up of a number of key projects in the half, with these expected to deliver in 49% $2.0b $2.0b
Slide 27: EMEA & APAC
EMEA & APAC Sector aggregated Sustainability revenue (%) aggregated revenue (%) Highlights 30% • Health, safety and well-being of our people is our priority 62% • Increased market activity and investment by our customers 49% $2.4b $2.4b 38% • Volume increases in EMEA and ANZ whilst retaining cost ba
Slide 28: H1 FY22 key financials
H1 FY22 key financials STATUTORY RESULT H1 FY22 H1 FY21 vs. H1 FY21 Total revenue ($m) 4,662 4,876 (4%) EBITA ($m) 202 140 44% NPATA ($m) 114 60 90% • Revenue is down on the prior comparative period Basic EPS (cps) 15.1 4.3 251% but has steadied over the half as site access and Interim dividend (cps
Slide 29: Reconciliation of statutory to underlying results
Reconciliation Reconciliation of statutory results to underlying results H1 FY22 H1 FY21 of statutory to ($m) ($m) Statutory result (NPAT for the Group) 80 21 underlying results Add: Net finance costs 27 41 Add: Amortization of acquired intangible assets 49 52 Adjusted for non-trading items Add: Inc
Slide 30: Drivers of underlying EBITA change
Drivers of underlying EBITA change • Margins continue to improve taking into account: EBITA change drivers • H1/H2 phasing consistent with seasonality of our earnings $m 9 13 5 15 13 • Strategic investment in our organic growth 29 priorities of $13m 261 251 • Total recurring cost saving benefit of $
Slide 31: Cost savings initiatives delivering long-term benefits
Cost savings initiatives delivering long-term benefits Providing scalability for the business 500 Operational cost savings program Savings delivered Increased target 400 $352m $375m 300 annualised savings as at of recurring savings by 200 December 2021 June 2023 ✓ Discretionary spend Shared Services
Slide 32: Strategic investment
Strategic investment Green hydrogen We forecast $100m of organic investment over three >20% years to accelerate our sustainability pathways, Factored sales pipeline digital enablement and process technology Carbon increase over previous capture use and storage 6 months >30x Investment to date Organi
Slide 33: Outlook
Outlook Chris Ashton, Chief Executive Officer Worley - Half year results 2022 33
Slide 34: Market update
Market update All of our sectors are experiencing capex investment growth 2022 2022 2022 2022 renewables & gas chemicals mining oil investment 12% investment investment investment 14% compared to 2021 13% 7% compared to 2021 compared to 2021 compared to 2021 levels2 levels1 levels3 levels4 Low-c
Slide 35: Market update: share of total investments
Market update All of our sectors are experiencing growth in their traditional businesses and low-carbon investments Low-carbon investment commitments as a share of total Low-carbon investment plans by selected customers investments by Energy majors1 €57 billion investment in renewables by 2027 2 60%
Slide 36: Group outlook
Group outlook We continue to see growth in our customers’ end markets with the rate of We have maintained our cost base at the low levels achieved at FY21, allowing the change differing between regions and business to scale efficiently as we grow sectors. and deliver improved earnings in the medium
Slide 37: Key messages
Key messages 1 Our half year result is indicative of continued market improvement and is consistent with the outlook provided at FY21 2 Our business is positioned for long- term success and we are accelerating the execution of our strategy 3 We continue to see positive indicators for growth Worley -
Slide 38: Worley - Half year results 2022
& Worley - Half year results 2022 38
Slide 39: Supplementary information
Supplementary information Worley - Half year results 2022 39
Slide 40: Our diversified business
Our diversified business Sustainability / traditional Regional aggregated Global leader delivering knowledge-based aggregated revenue (%) revenue (%) project and asset services 14% 14% Low-carbon energy 32% • Leading position in Energy, Chemicals and Sustainability Conventional energy Resources Trad
Slide 41: Sustainability pathways
Sustainability pathways 1. Decarbonization Carbon management Low-carbon fuels Decarbonization & feedstocks Decarbonization Resource stewardship infrastructure Nuclear energy Energy efficiency & electrification Renewable energy 50% 40.1% 42.8% 4.5% 5% 5.0% Energy transition materials 40% 3.7% 3.8% Re
Slide 42: Segment results by region
Segment results By region H1 FY22 H1 FY21 vs. H1 FY21 Aggregated revenue ($m) 4,368 4,498 (3%) • Americas increase in aggregated revenue was Americas 1,985 1,907 4% driven by growth in lower margin construction EMEA 1,548 1,667 (7%) and fabrication business while margins were APAC 835 924 (10%) impa
Slide 43: Segment results H1 FY22 vs H2 FY21
Segment results H1 FY22 vs H2 FY21 H1 FY22 H2 FY21 vs. H2 FY21 By region Aggregated revenue ($m) 4,368 4,276 2% Americas 1,985 1,862 7% • Americas drop in margin was due to increasing EMEA 1,548 1,666 (7%) construction work and a one-off project impact APAC 835 748 12% Segment results ($m) 335 334 0
Slide 44: Segment results by sector
Segment results By sector H1 FY22 H1 FY21 vs. H1 FY21 Aggregated revenue ($m) 4,368 4,498 (3%) • Energy margin has increased with project Energy 2,129 2,182 (2%) activity returning, improved site access and Chemicals 1,622 1,655 (2%) increased award of sustainability projects at Resources 617 661 (7
Slide 45: Segment results by region and service
Segment results By region Americas EMEA APAC TOTAL H1 FY22 H1 FY21 vs. H1 FY21 H1 FY22 H1 FY21 vs. H1 FY21 H1 FY22 H1 FY21 vs. H1 FY21 H1 FY22 H1 FY21 vs. H1 FY21 Aggregated revenue ($m) 1,985 1,907 4% 1,548 1,667 (7%) 835 924 (10%) 4,368 4,498 (3%) Professional services1 879 938 (6%) 1,114 1,193 (7
Slide 46: Margin profile
Margin profile Underlying EBITA % Underlying EBITA $m 743 H1 468 H2 377 7.2% H2 6.1% 6.6% 6.1% Total 261 5.3% 5.7% 5.7% H1 4.6% 366 207 251 FY2020 FY2021 FY2022 FY2020 FY2021 FY2022 Underlying NPATA % Underlying NPATA $m 432 H1 H2 281 216 H2 Total 164 3.6% 4.1% 3.8% 3.8% H1 3.2% 3.4% 3.4% 2.6% 216 1
Slide 47: Foreign exchange
Foreign exchange 3 Impact total EBITA 2 1 2 1 1 1 1 1 A $m 0 (1) (1) (1) (1) (1) (1) (1) (2) USD CAD INR KZT MNT NOK BRL ARS COP EUR US Pegged Other 60 Group EBITA FX Translation impact 40 20 11 (1) - A $m (20) (58) (40) (60) FY20 FY21 H1 FY22 Worley - Half year results 2022 47
Slide 48: Cashflow
Cashflow H1 FY22 ($m) H1 FY21 ($m) • Cash inflow remains high based on our 202 140 disciplined approach to cash and our EBITA strong customer relationships Add: Depreciation, amortization and significant non-cash items 98 125 Less: Interest and tax paid (59) (55) • Cash outflow movements have been i
Slide 49: Cash closely tracking earnings
Cash closely tracking earnings Cash realization Receipts from customers over total revenue earned 8000 120% Continued demonstration of disciplined 6000 110% approach to cash collection: Cash realisation 4000 100% $m • Cash realisation at 104% (receipts from 2 Receipts from customers 109% 111% custom
Slide 50: Balance sheet and liquidity metrics
Balance sheet and liquidity metrics H1 FY22 FY21 Gearing ratio1 22.8% 21.7% Average cost of debt2 2.0% 1.9% • Stabilized through $110m underlying operating cash flow Average maturity (years) 2.4 2.9 • Gearing below target band of 25-35% Interest cover (times) 11.6x 9.2x Net debt, $m (covenant defini
Slide 51: Headcount: utilization above target
Headcount: utilization above target Worley global headcount 50,000 • Headcount at 48,400 at 31 December 2021, up 1% on FY21 40,000 Staff 30,000 36,000 33,800 34,500 • Headcount is 49,400 at 31 January 2022 Craft 20,000 • Staff utilization remains above target 10,000 13,900 13,800 12,400 0 H1 FY21 FY
Slide 52: Backlog
Backlog 0.2 0.1 4.7 5.4 14.3 15.1 30-Jun-21 FX translation Project Backlog New wins and 31-Dec-21 cancellations delivered revaluations 2.0 1.7 Energy Americas 7.7 EMEA 7.3 Chemicals 5.4 6.1 APAC Resources Worley - Half year results 2022 52
Slide 53: Details of recurring cost savings in period
Details of recurring cost savings in period Operational savings delivery ($m) Drivers of EBITA change H2 FY21 to H1 FY22($m) Savings delivered In-period savings carried into run rate Savings total 23 Savings to be delivered 5 25 Operational savings $12m 14 41 ECR acquisition cost synergies $1m 121 5
Slide 54: Cost to deliver program savings
Cost to deliver program savings ECR cost synergies program Operational cost savings program 500 350 300 400 250 200 300 $m $m 150 200 100 50 100 0 H2 H1 H2 H1 H2 FY19 FY20 FY21 Recurring H2 H1 H2 H1 H2 H1 H2 savings FY20 FY21 FY22 FY23 Recurring54 Savings delivered (annual recurring) ECR cost synerg
Slide 55: Priority initiatives – accelerating our growth
Priority initiatives – accelerating our growth Positioning Worley to be an industry-leading sustainability solution provider Sustainability pathways Decarbonization • Resource stewardship • Asset sustainability • Environment and society Accelerating growth areas Continued growth focus Integrated Com
Slide 56: Glossary
Glossary $, $m, $b – Australian dollars unless otherwise stated, Australian millions of dollars, Australian billions of dollars APAC - Australia, Pacific, Asia & China FY – Financial Year GID - Global Integrated Delivery GRIT - Growth, Resilience, Innovation, and Transition ACSC - Australian Cyber S
Slide 57: Backlog definition
Backlog Backlog is the total dollar value of the amount of revenues expected to be Due to the variation in the nature, size, expected duration, funding commitments definition recorded as a result of work performed under contracts or purchase/work orders and the scope of services required by our cont
Slide 58: 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
Slide 59: Fixed price vs reimbursable contract types
Fixed price vs reimbursable contract types Reimbursable Contracts (~80% of our revenue): • Contracts based on reimbursement of reasonable and allowable actual costs plus agreed profits including incentives, partial/fixed fee in accordance with the contract terms and conditions. Fixed Price Contracts
Slide 60: Registered office and contact details
Registered office: Level 17, 141 Walker Street North Sydney NSW 2060 Australia T: +61 2 8923 6866 E: investor.relations@worley.com Worley Limited ABN 17 096 090 158 worley.com