Worley Limited · ASX:WOR
Worley — Investor Day (June 2019)
129 slides from Worley's investor day presentation, Jun 5, 2019
Slide 1: Investor Day
Investor Day Wednesday 5 June 2019 Worley Investor Day 2019
Slide 2: Disclaimer
Disclaimer The information in this presentation about the WorleyParsons Limited (“Worley Group”) and its activities is current as at 5 June 2019 and should be read in conjunction with the Company’s Appendix 4D and Interim Financial Report for the half year ended 31 December 2018. It is in summary fo
Slide 3: Welcome and context
Welcome and context Welcome Acknowledgement Emergency procedures Order of proceedings Worley Investor Day 2019 3
Slide 4: Agenda
Agenda Registration Welcome and context OneWay™ moment Welcome to Worley Financial reporting Transition and transformation Q&A Morning tea Energy & Chemicals Services Major Projects & Integrated Solutions Mining, Minerals & Metals Services Advisian Q&A Wrap up Lunch Worley Investor Day 2019 4
Slide 5: Stronger Together, Safer Together
Stronger Together, Safer Together Catherine Wallis Worley Investor Day 2019 5
Slide 6: Stronger Together Safer Together
Stronger Together Safer Together ▪ Safety Week, 6-10th May ▪ United on safety as a core value ▪ Opportunity to explore safety through the lens of Past, Present & Future ▪ Local activity and events ▪ 24 hour online discussion Worley Investor Day 2019 6
Slide 7: Safety Week activities and events
Safety Week activities and events Insight and learning Courageous Connecting Curiosity Collaboration conversations Worley Investor Day 2019 7
Slide 8: Welcome to Worley
Welcome to Worley Andrew Wood, CEO Worley Investor Day 2019 8
Slide 9: Worley, a leading global provider of professional project and asset services
Worley, a leading global provider of professional project and asset services in the energy, chemicals and resources sectors 9
Slide 10: Worley - A bigger, brighter future
Worley - A bigger, brighter future 56,700 Different perspectives, insights, capabilities and expertise people from around the globe for the benefits of our customers and of the industries in which we work 51 countries Worley Investor Day 2019 10
Slide 11: Long history of successful transactions
Long history of successful transactions ▪ Canadian presence ECR ▪ Downstream & chemicals leadership ▪ Construction and fabrication offering ▪ Construction, maintenance and turnaround resources ▪ Long-term relationship business in brownfield services ▪ Competitive position via India Global Integrated
Slide 12: Management team
Management team Chief Executive Officer Andrew Wood Chief Operating Officer Chief Financial Officer Chris Ashton Tom Honan Advisian Energy & Chemicals Major Projects & Mining, Minerals Services Integrated Solutions & Metals Services Adrian Smith Vinayak Pai Karen Sobel Andrew Berryman President Grou
Slide 13: Current focus
Current focus . Integrate the operations and deliver cost & 1 revenue synergies, aligned with the existing strategic priorities ▪ Cost synergy target increased from AUD130m to AUD150m 2 Development of the transformational strategy for the new Worley that will: ▪ Enhance our leadership position in ch
Slide 14: Global energy transition
Global energy transition Worley Investor Day 2019 14
Slide 15: Global energy transition
Global energy World primary energy demand by fuel and scenario (Mtoe) transition Coal Oil Gas Nuclear Renewables Mtoes Actual New Policies ▪ Direction of change in energy mix is clear, however the pace of change is not ▪ Each country will react differently ▪ Oil and gas expected to increase annual s
Slide 16: Energy transition opportunities: Upstream & midstream
Energy transition opportunities: Upstream & midstream Gas as the transition fuel…new oil demand remains Conventional oil and gas investment ▪ Pick-up in approvals of new upstream projects Billion boe Offshore Onshore required to match demand 25 25 20 Crude oil 20 Gas ▪ Upstream investment to 2022 is
Slide 17: Energy transition opportunities: Downstream & chemicals - Refining
Energy transition opportunities: Downstream & chemicals Refining investments responding ▪ Major shifts in the composition of oil product demand Change in the composition of global oil product demand is presenting challenges for refiners: ▪ fall in demand for gasoline and diesel Lighter ends Gasoline
Slide 18: Energy transition opportunities: Chemicals & petrochemicals
Energy transition opportunities: Downstream & chemicals Chemicals & petrochemicals play important role ▪ Industry to play important role in the global energy transition Global primary chemical production by scenario ▪ Key contributor to global oil demand Production (Mt) million tonnes NPS SDS 2017 3
Slide 19: Energy transition opportunities: Mining, minerals & metals
Energy transition opportunities: Mining, minerals & metals Energy transition minerals ▪ Our core MMM capability is aligned to metals critical to the energy transition: ▪ aluminium ▪ copper & nickel ▪ lithium & cobalt ▪ Well positioned to bring our digital and new energy capabilities to support new a
Slide 20: Energy transition opportunities: Power & new energy
Energy transition opportunities: Power & new energy Renewables & electrification ▪ Investment trend towards low carbon Global investment in power by technology power generation and delivery: ▪ solar and wind Coal power 2018 Gas power ▪ nuclear Oil power ▪ hydro Nuclear ▪ power networks and storage A
Slide 21: Energy transition opportunities: All sectors
Energy transition opportunities: All sectors Optimization and efficiency Fugitive Emissions Technology New Policies Scenario Sustainable Development Scenario Renewable Fuels Combined Heat and Power Plants 37% 36% 8% 20% Efficiency and Renewables and Reducing Other: fossil fuel reducing least-efficie
Slide 22: The way we work
The way we work Worley Investor Day 2019 22
Slide 23: Worley digital evolution: From new to business as usual
Worley digital evolution: From new to ‘business as usual’ We view the macro through the lens of to invest and develop new to systematically take ideas to level drivers… our domain expertise…. core capabilities and culture…. the end business value capture. Project Innovation Council execution Unstopp
Slide 24: Applied digital mining
Applied digital mining “From Australia to the world” ENGINEERING EXPERIENCE Organizational Business process Data MINING SECTOR EXPERIENCE change optimization visualization AdditiveNow: 3D metal IoT sensors for Aerial data management printing for spare parts real-time data and inspections manufacturi
Slide 25: Summary
Summary ▪ Welcome to our new Worley ▪ New management team ▪ Leveraging history of major transaction success ▪ Transition focused on integrating operations and realizing cost, margin & revenue synergies ▪ Cost synergy target increased from AUD130m to AUD150m ▪ Transformation philosophy designed to bu
Slide 26: Financial Reporting
Financial Reporting Tom Honan, CFO Worley Investor Day 2019 26
Slide 27: Business line structure across the asset lifecycle
Worley’s business line structure offers support across all phases of the asset lifecycle Advisian offers consulting services across the life cycle Worley Investor Day 2019 27
Slide 28: New business profile & reporting
New business profile & reporting Capex vs opex 13% 43% 44% Major capital projects Modifications, sustaining and small capex Opex Commercial model 83% 17% Reimbursable Lump Sum/Fixed Price Lines of Business 7% 47% 8% 38% Advisian Energy & Chemicals Services MMM Services Major Projects & Integrated So
Slide 29: Headcount and utilization
Headcount and utilization Headcount WorleyParsons staff utilization Jacobs ECR technical utilization 94% March 2019 94% Utilization % 92% Utilization % 6,600 90% 92% 21,000 88% 86% April 2019 90% 84% 15,500 82% 80% 88% Jan-17 Mar-17 May-17 Jul-17 Sep-17 Nov-17 Jan-18 Mar-18 May-18 Jul-18 Sep-18 Nov-
Slide 30: Key operating indicators
Key operating indicators Operating leverage ▪ Cost out program is proving sustainable with revenue WorleyParsons – Operating leverage growth in both heritage organizations ▪ Focus on achieving further margin growth with driver Overheads ($) on gross margin / overhead ratio Revenue ($) ▪ Business con
Slide 31: Working capital
Working capital ▪ Most regions & businesses DSO by business performing at or ahead of target 100+ 100+ 100+ ▪ Heritage Jacobs ECR performance meets Worley target expectations 100 80 60 40 20 0 Jacobs Business Unit Comparison ECR Days Apr-19 Target Worley Investor Day 2019 31
Slide 32: Improved debt structure
Improved debt structure Additional flexibility and liquidity ▪ Core debt facility successfully refinanced Debt facility maturity profile in February 2019 ▪ The new Syndicated Facility consists of a USD500m multi-currency revolving credit facility and USD800m term loans maturing in 2024 ▪ Debt struct
Slide 33: Backlog
Backlog 18.0 ▪ Backlog definition revised to align across new 15.0 organization1 12.0 10.8 10.6 ▪ Historic numbers restated 9.9 to new definition AUD billions 9.0 6.0 6.3 6.5 6.8 6.8 3.0 5.5 1 Refer to Appendix: Supplementary Information - Jun-17 Dec-17 Jun-18 Dec-18 Mar-19 WorleyParsons Jacobs ECR
Slide 34: Backlog by region and sector
Backlog by region and sector Backlog by region Backlog by sector as at 31 March 2019 as at 31 March 2019 2.5 Americas 1.9 Energy 5.3 Europe, Middle East, 7.4 Chemicals Africa (EMEA) 8.1 Resources 9.6 Australia, Pacific, Asia, China (APAC) Worley Investor Day 2019 34
Slide 35: Summary
Summary This is Tom’s summary on financials Use any image we haven’t used yet. ▪ New operating model ▪ New business reporting profile that best reflects our diversified markets and broader offerings ▪ Operating metrics remain strong following financial integration ▪ Continued discipline on reducing
Slide 36: Transition and Transformation
Transition and Transformation Chris Ashton, COO Worley Investor Day 2019 36
Slide 37: The transition journey to a new company
The transition journey to a new company Day 1 April 26 2018 2019 2020 Separation Transition Transformation Worley Investor Day 2019 37
Slide 38: Jacobs ECR acquisition progress - summary
Jacobs ECR acquisition progress - summary Activities Progress Achievements ▪ Completion achieved Completion Activities ▪ Day 1 roll-out successful and objectives met ▪ Transition team in place with tools and processes operational Transition ▪ Program milestones on track ▪ Cost synergies validated an
Slide 39: Transition - Shift from planning to action
Transition - Shift from planning to action ▪ Strong, proven leadership in place & organization set up for delivery of synergies Value ▪ Engaged a leading management consulting Regional workstreams management Clear plans firm to de-risk delivery of planned synergies Clear expectations and actions for
Slide 40: Synergy realization – Cost synergies
Synergy realization – Cost synergies Cost synergies increased from AUD130m to AUD150m, expected to progressively deliver benefits over the next two years Estimated AUD150m p.a. ▪ Planning advanced and implementation underway Cost synergies AUDm cost synergies within two years IT ▪ Consolidation of f
Slide 41: Synergy realization – Margin synergies: GID
Synergy realization – Margin synergies: GID Global Integrated Delivery (GID) ▪ Leverage Jacobs ECR’s strong proven utilization of GID into heritage WorleyParsons ▪ Capture margin synergies enabled by wage arbitrage of hours delivered in India for global projects ▪ Replicate GID incremental system-wi
Slide 42: Synergy realization – Margin synergies: Shared services
Synergy realization – Margin synergies: Shared services Shared Services Processes ▪ Plan to extract additional value from shared services over three Budgeting and Planning Accounting/Transaction Processing l Variance Analysis l General Ledger Accounting horizons (in the next three years): Financial
Slide 43: Synergy realization – revenue synergies
Synergy realization – revenue synergies Better ▪ Revenue synergy opportunities identified, Position linked to improved win-rate and quantity We now have a of work contested as a result of: better chance of winning ▪ improved positioning ▪ larger offering and Larger Scope We can now offer greater sco
Slide 44: Realizing revenue synergy opportunities - examples
Realizing revenue synergy Complete deep underground mining offering Full brownfields and sustaining opportunities - examples capital service offering Downstream smelting and World-scale refining in the Americas advisory solutions China + India execution powerhouse Full brownfield service offering Fu
Slide 45: MMM Services – Revenue synergy Argentina – Orocobre
MMM Services – Revenue synergy Argentina – Orocobre Stage 2 expansion at Olaroz Engineering, Procurement, Management and Construction (EPCM) contractor for the “Stage 2” Contract expansion project for the Solar de Olaroz lithium facility. Worley will oversee the chemical process review and design of
Slide 46: E&C Services – Revenue synergy Canada
E&C Services – Revenue synergy Canada – Confidential project Stage 1 development planning for a multi stage greenfield in-situ project that involves replication Contract of a standard design for the Centralized Processing Facilities (CPF) and well pads. WorleyParsons brings... Jacobs ECR brings… Lon
Slide 47: MPIS – Revenue synergy Canada – Fabrication expansion
MPIS – Revenue synergy Canada – Fabrication expansion Within days of the merger, the Edmonton-based Jacobs ECR fabrication facility began seamlessly Contract fabricating pipe spools for Cord’s customer’s project. The customer approved the shop’s use of Scope Worley’s weld procedures prior to the mer
Slide 48: E&C Services – Revenue synergy Spain
E&C Services – Revenue synergy Spain – Confidential, Chemical Plant Debottlenecking Revamp Contract Pre-FEED + FEED for the debottlenecking revamp to increase capacity of an existing elastomers plant Scope in Spain. Scope includes pre-award of equipment, CAPEX estimate +/-10% and EPC execution plan.
Slide 49: E&C Services – Revenue synergy US East
E&C Services – Revenue synergy US East – Confidential customer, ELG/CCR Engineering Contract Conceptual engineering studies to develop solutions compliant with guidelines for effluent and coal Scope combustion residuals. Preparations for final detail design work. WorleyParsons brings... Jacobs ECR b
Slide 50: Transformation Focus
Transformation ▪ Shape and claim new spaces in the Transformation markets we serve ▪ Engage in creative partnerships with our customers and suppliers ▪ Deliver a level of service that generates step-change in our industry Focus ▪ Build a purposeful, innovative and Transition sustainable culture ▪ Cr
Slide 51: Summary
Summary ▪ Transaction successfully completed with synergy capture in action ▪ Transition up and running – thoroughly planned and resourced ▪ Focused on areas of synergy; cost, margin, shared services and revenue ▪ Cost synergy target increased from AUD130m to AUD150m ▪ Positive customer feedback ▪ T
Slide 52: Worley Investor Day 2019
& Worley Investor Day 2019 52
Slide 53: Lines of Business
Lines of Business Driving the Strategy Worley Investor Day 2019 53
Slide 54: Energy & Chemicals Services
Energy & Chemicals Services Vinayak Pai Worley Investor Day 2019 54
Slide 55: Overview of E&C Services
Overview of E&C Services Global footprint with long-term customer Canada relationships in key strategic markets 3,000 Europe UK 3,100 Asia ▪ Leading technical services provider delivering full life- 1,500 3,200 USA Middle cycle capabilities across Energy and Chemicals 5,600 East sectors India Africa
Slide 56: Operating model
Operating model Typical projects include: ▪ Sustaining capital programs Capex and opex balance improving resiliency in earnings ▪ Discrete improvement projects ▪ Greenfield projects WorleyParsons Jacobs ECR Worley Operate globally – Execute locally Denver, CO Center of Excellence for midstream and U
Slide 57: Customer driven solutions across asset lifecycle
Customer driven solutions across asset lifecycle Customer needs Our solution Hub and spoke Local knowledge and resource ▪ Large global delivery centers for large global projects ▪ Local offices for small and sustaining capital projects ▪ Recruit top talent ▪ Consistency ▪ People development and upsk
Slide 58: Revenue synergy opportunities to drive growth in E&C Services
Revenue synergy Unconventional oil & gas in Permian Delivering WorleyParsons power opportunities to drive capabilities to Jacobs ECR customers growth in Focus on US power Full project delivery offering in GoM – Jacobs ECR and renewables E&C Services topsides and WorleyParsons subsea/floating systems
Slide 59: Focused on driving location profitability
Focused on driving Gross Margin G&A – Global trend for Jacobs ECR location profitability GM/G&A Strong focus on improving the profitability of E&C Services within each location ▪ Evaluate each location on ratio of GM / G&A 16Q1 16Q2 16Q3 16Q4 17Q1 17Q2 17Q3 17Q4 18Q1 18Q2 18Q3 18Q4 19Q1 19Q2 Case st
Slide 60: GID is a major driver of profitable growth
GID is a major driver of profitable growth across the business GID workhours (Jacobs ECR) Why GID? How we do it? ▪ Increase win rates ▪ Build trust between customers & global employees ▪ Competitive with low cost service providers ▪ Apply consistent systems, tools and processes ▪ Help improve schedu
Slide 61: Downstream and chemicals sector
Downstream and chemicals sector Overview Three key industry segments ▪ Worley has expanded capability across the Energy & Chemicals value chain Refining Petrochemicals Chemicals ▪ Key steps in value chain progression Downstream value chain 1. Refining oil into products such as fuels Sector diversifi
Slide 62: Refining
Refining Market outlook Regional contribution to change in global refined product demand ▪ Longer-term decline in traditional refining markets: As transportation fuel demand 2018 to 2050 (million b/d) nears its peak, customers are re-evaluating their product mix as a result of competition 13.5% with
Slide 63: Refining
Refining Crude distillation capacity additions to 2025 Market opportunities & focus 26% 22% Middle East Leveraging core capability Asia Remainder 52% ▪ Sustaining capital: Extend existing relationships in mature markets into growth geographies Source: IHS Markit (2019) Accessing key growth markets C
Slide 64: Petrochemicals
Petrochemicals Market outlook Chemicals & petrochemicals sector End use products Primary Chemicals Consumer Goods ▪ Petrochemicals market growth forecast: Growth for petrochemicals historically exceeds Light Olefins GDP growth, forecast to continue with demand Ethylene, Propylene Packaging Petrochem
Slide 65: Petrochemicals
Petrochemicals Market opportunities & focus Accessing key growth markets Production of key petrochemicals products ▪ Grass roots ethylene complexes: ▪ Mixed feed cracker complexes with a focus in the Middle East and India ▪ US ethylene complexes based on shale gas ▪ Pursue western investments into C
Slide 66: Chemicals
Chemicals Market outlook Chemicals capital expenditure: Trend and outlook ▪ Stable growth market: Chemicals industry represents a large and historically stable market strongly linked to GDP growth. Investment cycles CAGR (2019-2024): 3% historically display limited cyclicality ▪ Multiple market driv
Slide 67: Chemicals
Chemicals Market opportunities & focus Global chemicals industry capex (2019 to 2023) Accessing key growth markets China ▪ FDI market in China: Regulatory changes Europe on foreign ownership stimulating investment into China Leveraging core capability ▪ Extensive delivery capability in India and 10%
Slide 68: BASF Global Engineering Alliance
BASF Global Engineering Alliance Strong relationship originated in China and Belgium Global contract Regional partnerships in place since 2011 Global Service Agreement since 2014 Providing multidisciplinary engineering services in Site engineering Antwerp, Ludwigshafen and Schwarzheide delivering Eu
Slide 69: MEGlobal US Gulf Coast – BOOKRAMEG project
MEGlobal US Gulf Coast – BOOKRAMEG project Design and construction of a world scale MEG facility Contract scope including both ISBL and OSBL scope. PDP, FEED, EPC/CM Schedule Project mechanical completion within schedule On time delivery incentive bandwidth established by customer Project issued 90%
Slide 70: BP Oman – Khazzan Gas project
BP Oman – Khazzan Gas project Project objective to deliver gas and condensate Image – Resolution for large screen power point product from the southern sector of Block 61. Selected as BP’s EPCM partner for the long-term Contract complex USD16b program, providing key leadership scope and technical sp
Slide 71: Gulf of Mexico
Confidential Gulf of Mexico FEED, detailed design, and procurement for semi- submersible deep-water platform in the Gulf of Contract scope Mexico Topsides by heritage Jacobs ECR; hull, hull systems and topsides main steel by heritage WorleyParsons Worked closely with customer to redesign a solution
Slide 72: Summary
Summary ▪ Diverse sector capability across the entire E&C value chain ▪ Unrivalled global footprint ▪ Core markets with positive long-term outlook ▪ Blue-chip customer relationships ▪ Proven GID driving competitiveness ▪ Strategic growth focus matched to emerging opportunity Worley Investor Day 2019
Slide 73: Major Projects & Integrated Solutions
Major Projects & Integrated Solutions Karen Sobel Worley Investor Day 2019 73
Slide 74: Innovation in MPIS
Innovation in MPIS Worley Investor Day 2019 74
Slide 75: Innovation in MPIS
Innovation in MPIS Worley Investor Day 2019 75
Slide 76: Worley Investor Day 2019
Worley Investor Day 2019 76
Slide 77: Major Projects & Integrated Solutions (MPIS) Virtuous circle
Major Projects & Integrated Solutions (MPIS) Never leaving Winning the asset the right Virtuous work circle Maximizing ROI at every stage of the asset life cycle Executing the work well Worley Investor Day 2019 77
Slide 78: Overview of MPIS
Overview of MPIS Globally aligned for value Integrated Major Solutions Projects Downstream, MMM and power Fabrication, Integrated Modularization Solutions & Greenfield Upstream, Construction midstream and LNG Worley Investor Day 2019 78 78
Slide 79: Powerful growth engine
Powerful growth engine ▪ Construction capability is ingrained in the MPIS value chain ▪ Well-developed workforce delivers successful construction projects 18,000+ craft and construction management resources 10 fabrication & modularization facilities Worley Investor Day 2019 79 79
Slide 80: Craft and construction management
Craft and construction management Alaska Canada Europe United States Sakhalin Island Morocco Middle East 120+ Australia sites Worley Investor Day 2019 80
Slide 81: Delivering value – starting with our people
Delivering value Success story – starting with our people Investing in training our craft workforce in the US and Canada Construction workers in US and Canada obtain National Center Investing in training our field-based workforce: for Construction Education & Research (NCCER) Certification ▪ accurat
Slide 82: Unlocking the value of MPIS
Unlocking the value of MPIS Line of Business Sharing capabilities Integrated synergies Solutions Downstream, MMM and power Major + = Unlocking Small-capital Integrated Turnaround Projects engineering Solutions capability services value Upstream Fabrication, Modularization & Greenfield Construction W
Slide 83: Lubrizol Zeus
Lubrizol La Porte, Texas – Lubrizol Zeus Need image Contract scope EPC of a proprietary chemical plant Construction- Early construction established sequence and detailed focused Field Installation Work Packaging (FIWP) to drive engineering efficient installation & procurement >90% detailed design us
Slide 84: Encana – Pipestone processing facility
Encana Corporation Alberta, Canada – Pipestone processing facility Engineering, Procurement, Fabrication, and Construction (EPFC) scope for a greenfield 200m Contract scope standard cubic feet per day, sour, shallow-cut gas processing plant EPFC Complete lump sum, EPFC delivery of a gas plant for de
Slide 85: Eastman Chemical – Kingsport and Longview
Eastman Chemical Company Kingsport, TN and Longview, TX Turnarounds, shop fabrication, capital material Contract scope warehouse operations, supplemental maintenance, capital program management and technical support Long-term Nearly nine-year tenure; proven performance led to relationships & winning
Slide 86: Upstream, midstream and LNG integrated solutions
Upstream, midstream and LNG integrated solutions Global portfolio Proven success with North Sea hook-up & Hook-up commissioning services spring boarded to GoM, & commissioning including successful integration of scrum principles Alaska Worley has the most competent and diverse portfolio full-service
Slide 87: Revenue synergy opportunities to drive growth in MPIS
Revenue synergy US and European customer projects in China and SE Asia Chemicals and petrochemicals opportunities to drive FE + FEED + PMC growth in MPIS Offshore Gulf of Mexico – EPC and MMO Unconventional oil & gas in Permian Integrated Solutions growth (Refining & MMM) LNG Gulf Coast - MMO China
Slide 88: Summary
Summary ▪ Win the right work. Execute projects well. Never leave the asset – solutions for the full asset life cycle ▪ MPIS now has a larger global footprint and is enabled to deliver in-house EPC solutions to our customers ▪ We invest in our people to deliver the best value ▪ We partner with custom
Slide 89: Mining, Minerals & Metals Services
Mining, Minerals & Metals Services Andrew Berryman Worley Investor Day 2019 89
Slide 90: Overview of MMM Services
Overview of MMM Services Global capability Base Metals Copper, Cobalt, Lead, Zinc Precious Metals Gold, Platinum, Diamond Light Metals Bauxite & Alumina, Aluminium Bulk Commodities Iron ore, Coal Fertilizers (including JESA in Morocco) Phosphates, Potash New Energy commodities (eg. battery minerals)
Slide 91: Overview of MMM Services
Overview of MMM Services EMEA Tier 1 customers Balanced ANZ geographic spread aligned with our customers and market opportunity Americas ASIA Worley Investor Day 2019 91
Slide 92: Market outlook
Market outlook Mining, Minerals and Metals annual global capex Capex continues with strong market fundamentals across key commodities ▪ Focus is on life of mine extension and increased investment in underground mining ▪ Copper: structure supply deficit emerging in 2023 ▪ Fertilizers: investment driv
Slide 93: Sustaining capital growth
Sustaining capital growth ▪ Sustaining capital is a key pillar to our growth strategy ▪ Revenue from sustaining capital spend represents over half our global Mining, Minerals and Metals Services business ▪ Sustaining capital investments are expected to continue across growth commodities, including i
Slide 94: Chemetics sulphuric acid technology
Fabrication ▪ Delivers technology and solutions for sulphuric acid and electrochemical plants across industries ▪ Major consumer of sulphuric acid is the mining industry – copper, lithium, nickel, zinc, and phosphates ▪ New mines often demand on-site acid supply due to transportation constraints ▪ O
Slide 95: Mongolia – Oyu Tolgoi underground copper mine
Oyu Tolgoi Mongolia – Oyu Tolgoi underground copper mine EPCM delivery of the expanded underground Contract scope development and copper processing facility Underground Team specializing in mining including mining underground and surface material handling, shaft solutions sinking, mineral processing
Slide 96: Chile – Chuquicamata underground copper mine
Codelco Chile – Chuquicamata underground copper mine Conceptual study, pre-feasibility study for the Contract scope project that will transition one of the world’s largest open-pit mines into an underground mine Conceptual engineering for ore extraction options; Underground panel caving and block ca
Slide 97: Western Australia – South Flank iron ore project
BHP Western Australia – South Flank iron ore project Deliver engineering and consulting services. The project is expanding the existing Mining Area C (MAC) operation with ore sourced from the Contract scope adjacent South Flank deposit. Includes major process infrastructure and non-process infrastru
Slide 98: Khouribga, Morocco – Beni Amir phosphate wash plant
OCP Khouribga, Morocco – Beni Amir phosphate wash plant This project develops a wash plant that contains two Contract scope phosphate wash lines to enhance the quality and adapt the transportation through pipeline No similar project in the world for phosphates Industry The 190km pipeline is the long
Slide 99: Revenue synergy opportunities to drive growth in MMM Services
Revenue synergy World-scale advisory solutions opportunities to drive growth Full project delivery offering in MMM Services in all key geographies Applied digital mining China + India execution powerhouse Leadership position in underground mining from concept through to execution Strength across com
Slide 100: Summary
Summary ▪ Global leadership position ▪ Industry seeing strong project development pipelines ▪ High growth potential in sustaining capital, particularly in iron ore, copper and fertilizers ▪ Drive growth through long-term partnerships with our key customers ▪ Capitalize on revenue synergies including
Slide 101: Advisian
Advisian Adrian Smith Worley Investor Day 2019 101
Slide 102: Advisian business profile
Advisian business profile Advisian is the global advisory, consulting and early project development line of business for Worley and is a key enabler to the broader business. Unique to its offering is the ability to combine technical and advisory valued solutions Advisian offers consulting services a
Slide 103: Our value proposition
Our value proposition Clustering our capabilities to cover the seven critical aspects of capital projects where we can drive financial, schedule and macro-economic benefits for our customers. Market and organization Financial impact (ROCE, optimized CAPEX Political and environmental risks & OPEX) Pr
Slide 104: Downstream & Market Services
Downstream & Market Services The combination of our teams enhances our offering to the market. It provides a new addition to Advisian with the market and subscription market services offering and capability Downstream ▪ Technical and economic consulting practice provides customer project development
Slide 105: Sulphur & Process Technology
Sulphur & Process Technology Together, as two of the largest sulphur technology suppliers, our combined capabilities, project histories, and portfolios are unmatched in the industry Comprimo adds: ▪ Specialist technologies for gas processing and sulphur removal in addition to Worley Sulphur (Shell –
Slide 106: Revenue synergy opportunities to drive growth in Advisian
Revenue synergy Downstream & chemicals opportunities to drive Front-End + FEED + PMC Complete offshore growth in Advisian offering in Gulf of Mexico Resource infrastructure to MMM and downstream Industrial water offering Modularization for refineries (Sulphur units) Sulphur value chain Power sector
Slide 107: Gulf of Mexico – multiple projects
Confidential customer Gulf of Mexico – multiple projects Advocacy implementation, maintenance and Contract scope reliability studies, production optimization studies and automated dashboards Developed a strategic and trusted advisory Strong relationship through excellent project delivery, relationsh
Slide 108: Imperial Oil – Canada strategic environmental protection
Imperial Oil Canada – Strategic environmental protection Varied environmental services across multiple sites. Contract scope Includes water, ESG, decommissioning & restoration and geoscience services From planning and approvals, social licence and Support through geohazard assessment to plant decomm
Slide 109: Russia to Turkey – TurkStream natural gas pipeline
South Stream Transport B.V. Russia to Turkey – TurkStream natural gas pipeline Feasibility study, FEED, detailed design, owners Contract scope engineering, survey management, specialist engineering studies, permitting support Technology Successfully extended the notional technology limits extension
Slide 110: Ruwais, UAE - Borouge 4 petrochemical complex
Borouge (JV between Abu Dhabi National Oil Company (ADNOC) and Borealis) Ruwais, UAE - Borouge 4 petrochemical complex Pre-FEED, including detailed licensor evaluations, Contract scope capital cost estimates & site surveys, integration and logistics studies Optimal integration of the world’s largest
Slide 111: Western Australia – Carnegie SOP project
BCI Minerals Western Australia – Carnegie SOP project Engaged as the hydrogeology and brine resource Contract scope consultant for Lake Carnegie as part of the scoping study Supported the establishment of an initial exploration Challenge target and inferred mineral resource for Lake Carnegie Worked
Slide 112: Summary
Summary ▪ Unique combination of technical and advisory capabilities ▪ Clustering capabilities is a key strength, differentiator and strategic enabler ▪ Numerous opportunities to drive growth through revenue synergies ▪ Early positioning with customers and successful high-end engagements leads to fur
Slide 113: Worley Investor Day 2019
& Worley Investor Day 2019 113
Slide 114: Concluding remarks
Concluding remarks ▪ Leading global service provider with deeper capability & expanded global footprint ▪ Growth potential in all our core markets ▪ Transition program exceeding expectations - cost synergy target raised ▪ Realizing revenue synergies through projects ▪ Developing margin synergies and
Slide 115: Worley Investor Day 2019
Worley energy | chemicals | resources Worley Investor Day 2019 115
Slide 116: Appendix
Appendix Supplementary information Worley Investor Day 2019 116
Slide 117: Acronyms
Acronyms Acronym Meaning Acronym Meaning AASB Australian Accounting Standards Board DB Design Build APAC Australia, Pacific, Asia & China DSO Days sales outstanding AUD Australian Dollar E&C Energy & Chemicals AUDm Australian Dollar millions ECR Energy, Chemicals & Resources AWP Advanced work packag
Slide 118: Acronyms
Acronyms Acronym Meaning Acronym Meaning GID Global Integrated Delivery MMO Maintenance, Modifications and Operations Gt CO2 - eqiv Gigaton carbon dioxide equivalent Mtoe Million tonnes of oil equivalent GM Gross Margin NPS New Policies Scenario GoM Gulf of Mexico O&M Operations & Maintenance Gt Gig
Slide 119: Speakers
Speakers Profiles Worley Investor Day 2019 119
Slide 120: Andrew Wood, Tom Honan
Andrew Wood Tom Honan Chief Executive Officer Chief Financial Officer Andrew was appointed Chief Executive Officer of WorleyParsons Limited in Joining Worley on 1 December 2015, Tom is accountable for finance, 2012. An ASX listed global engineering and project delivery company information management
Slide 121: Chris Ashton, Vinayak Pai
Chris Ashton Vinayak Pai Chief Operating Officer Group President, Energy & Chemical Services Chris is accountable for the growth and performance of the Major Projects Vinayak is responsible for the newly formed Energy & Chemical Services and Integrated Solutions portfolio across the organization whi
Slide 122: Karen Sobel, Andrew Berryman
Karen Sobel Andrew Berryman Group President, Major Projects & Integrated Solutions President, Mining, Metals & Minerals Services Karen is accountable for the growth and performance of the Major Projects Andrew leads our global Mining, Minerals & Metals Services Business, and Integrated Solutions por
Slide 123: Adrian Smith, Mark Trueman
Adrian Smith Mark Trueman President, Advisian Executive Group Director Strategy, Planning and Investor Relations Adrian is responsible for Advisian, WorleyParsons’ global advisory business. Mark is the Executive Group Director of Strategy, Planning and Investor Adrian joined WorleyParsons in 1998 an
Slide 124: AASB 16 Leases
AASB 16 Leases Impact Worley Investor Day 2019 124
Slide 125: Impact of AASB 16 Leases
Impact of AASB 16 Leases ▪ The group will adopt AASB 16 on 1 July 2019 ▪ AASB 16 brings the majority of leases on balance sheet ▪ The net impact is recognized against retained earnings ▪ There will be a significant impact on the Group’s assets and The actual impact will depend on liabilities, as wel
Slide 126: IFRS 16 P&L Impact – example
IFRS 16 P&L Impact – example The example below is set out for a six year lease starting on 1 July 2019 with $11,000 annual property lease payments ($10,000 for rental and $1,000 for on costs). Current accounting Under AASB 16 Change standards Recognition of Right of use of asset Revenue 100,000 100,
Slide 127: Backlog
Backlog Revised definition Worley Investor Day 2019 127
Slide 128: Backlog definition
Backlog definition Backlog is the total dollar value of the amount of revenues expected to be recorded for the next 36 months as a result of work performed under contracts or purchase/work orders already awarded to the Group. Old definition With respect to long-term agreements and framework agreemen
Slide 129: Worley Investor Day 2019
Worley energy | chemicals | resources Worley Investor Day 2019 129