Worley Limited · ASX:WOR
Worley — Investor Day (June 2022)
64 slides from Worley's investor day presentation, Jun 1, 2022
Slide 1: Delivering a more sustainable world
Delivering a more sustainable world Investor Day 1 June 2022
Slide 2: Stronger together
Stronger together This piece represents Worley's values and connection to the land Worley acknowledges and pays respect to the past, present and future Traditional Custodians of Country throughout Australia and extends this acknowledgement and respect to First Peoples in all countries in which we op
Slide 3: Disclaimer
Disclaimer The information in this presentation about Worley Limited, the entities it controls (Group) and its activities is current as at 1 June 2022 and should be read in conjunction with the Company’s Appendix 4D and Interim Financial Report for the half year ended 31 December 2021. It is in summ
Slide 4: Agenda
Agenda Business update • Chris Ashton, Chief Executive Officer Regional updates • Mark Trueman, Americas • Mark Brantley, EMEA & APAC Deep dives • Tiernan O’Rourke, Chief Financial Officer • Sue Brown, Sustainability Accelerating our growth • Adrian Smith, Growth (interim) Worley | Investor Day 1 Ju
Slide 5: Key messages
Key messages 1 2 3 Our We are leaders in Our strategy is transformation is growing markets gaining traction well progressed and our customers as the strategic and we’re are increasing imperative to positioned for their traditional meet net zero growth and sustainability continues to build investment
Slide 6: Business Update
Business Update Chris Ashton Worley | Worley | Investor Day 1 June 6 6 2022
Slide 7: Delivering a more sustainable world
Purpose Delivering a more sustainable world Ambition We will be recognized globally as the leader in sustainability solutions Values We value We We are We Life Rise to the challenge Stronger together Unlock brilliance Worley | Investor Day 1 June 2022 7
Slide 8: Impacts of macro trends
Impacts of macro trends Decade of action Our strategy places us at the centre of accelerating sustainability investment and is gaining traction with existing and emerging customers Wave of sustainability spend is yet to come Different speeds of adoption between OECD and non-OECD countries Geopolitic
Slide 9: Delivering our ambition – our strategy is gaining traction
Delivering our ambition – our strategy is gaining traction Our Ambition1 FY23 Q3 achievements demonstrating we are on track Our People • Industry leading TRCFR2 of 0.16 and SCFR3 of 0.06 at 31-Mar-22 We energize and • Bullying & sexual harassment pilot completed & ready for global deployment empower
Slide 10: Business update
Business update Headcount increased and utilization above target Worley global headcount • Headcount up 7% YTD, as at 30-Apr-22 47,700 50,900 • This includes onsite craft personnel numbers in Russia • Business mix steady 33,800 35,553 • Staff utilization remains above target Operational savings prog
Slide 11: Business update cont. – pipeline, bookings and backlog
Business update cont. – pipeline, bookings and backlog Factored sales pipeline1 Rolling 12 month bookings Backlog2 15.4 12 14.3 10 53% 48% Consistent 8 17% 10.8 11.7 8% 6 $b 4 47% 52% 18% 2 57% 3.5 3.7 6% 0 at Jul-21 at Apr-22 at Jul-21 at Apr-22 at Jun-21 at Mar-22 Sustainability Traditional S
Slide 12: Strategic Awards
Strategic Awards 2200+ Project announcements since H1 FY22 results ~$7.5b FY22 Q3 number of • Avantium reimbursable EPC contract signed for renewable plastics facility value of all wins1 in sustainability wins2 FY22 to end Q3 Up 10% on pcp • Gulf of Mexico offshore services contract awarded by Shell
Slide 13: Leading indicators of future growth
Leading indicators of future growth • We are winning a significant Number of wins in different project phases for sustainability work in FY22 Q3 YTD (each prong of the fan represents one of our sustainability sub-sectors and the different colours represent different project phases) number of early-p
Slide 14: Regional updates
Regional updates Mark Trueman, Americas Mark Brantley, EMEA & APAC
Slide 15: Americas
Factored sales pipeline Americas “ In the past six months, we have begun to see forward momentum with many of our customers who are engaging us to support their growth in 47% 53% both core and growth markets Sustainability Traditional Pipeline and wins Strong pipeline in both “ • core and growth sec
Slide 16: Supporting Heartwell on a new renewable diesel plant
Supporting Heartwell on a new renewable diesel plant Chemicals | Decarbonization Heartwell | US Greenfield project to produce renewable diesel We’re providing detailed and field engineering services for Heartwell Renewables LLC on a greenfield renewable fuels plant in Hastings, Nebraska. The facilit
Slide 17: EMEA & APAC
Factored sales pipeline EMEA & APAC “ 56% 44% Our customers are increasing investment spend especially in sustainability. Sustainability Traditional Our customers are reviewing their portfolios based on geopolitical risk. They are looking to us to be a trusted partner Pipeline and wins to support th
Slide 18: Advancing to the next phase of Avantium's bioplastics project
Advancing to the next phase of Avantium's bioplastics project Chemicals | Resources stewardship Avantium | Netherlands World’s first facility to produce furandicarboxylic acid (FDCA) on a commercial scale We’re progressing to the EPC phase of the development of Avantium’s flagship facility in Delfzi
Slide 19: Advancing our ambition
Advancing our ambition People, Portfolio, Planet Chris Ashton, Our People & Our Portfolio Sue Brown, Our Planet 19
Slide 20: Our People
We are Our People stronger together Our actions are focussed on: • Strengthening the ‘Worley Experience’ through building a differentiated culture • Attracting and retaining the right people with the right capabilities for growth Development Values and Safety and Remuneration Attraction and and re-s
Slide 21: Our Portfolio
Our Portfolio We are accelerating sustainability- focused growth as the energy transition requires us to straddle two worlds We are partnering with our existing and emerging customers to solve their most challenging problems We use digital technologies and data to deliver solutions smarter and faste
Slide 22: Our strategic portfolio
Our strategic portfolio We are accelerating sustainability-focused growth as the energy transition requires us to straddle two worlds Sustainability pathways Decarbonization | Resource stewardship | Asset sustainability | Environment and society Sectors Our core markets Our growth markets Evolving o
Slide 23: Why our customers choose to work with us
“ Why our customers choose to work with us We help our customers solve their toughest business problems We selected Worley based on our experience working with …commercialize and …manage my natural them and believe their method maximize the resources to minimize of driving innovation within their va
Slide 24: Unlocking the true potential of digital technologies and data
Unlocking the true potential of digital technologies and data at pace and scale to achieve our purpose Recent examples: Block chain pilot with our customers Green hydrogen partnership (IBM & ABB) Worley HD (holistic design) offshore wind Worley | Investor Day 1 June 2022 24
Slide 25: Our Planet
Our Planet We are delivering on our own sustainability commitments We are leaders in stewarding a more sustainable world Our biggest role is in supporting our existing and emerging customers to reach net zero Worley | Investor Day 1 June 2022 25
Slide 26: We've come a long way on our journey to delivering a more sustainable world
We’ve come a long way on our journey Developed our ambition to be to delivering a more sustainable world recognized globally as the leader in sustainability solutions Joined the Business Ambition for 1.5°C Submission of Science Based Published “From ambition to reality” Targets for Scope 1, 2 and 3
Slide 27: Our Thought leadership
Our Thought leadership Princeton E-ffiliates Partnership “If we develop energy infrastructure the way we always have, we won’t get to net zero by 2050. We might not even get halfway.” Worley | Investor Day 1 June 2022 27
Slide 28: Climate Change Position Statement
Climate Change Position Statement Reduce our emissions to net zero: As the world seeks to urgently reduce • By 2030 for Scope 1 and 2 greenhouse gas emissions to net zero, our • By 2050 for Scope 3 We will set 1.5°C aligned science-based targets. role is clear. We’re increasing our focus on the deca
Slide 29: Building for the future
Building for the future Tiernan O’Rourke Worley | Worley | Investor Day 1 June 29 29 2022
Slide 30: Our current business
Our current business • Diversified across end-markets and customer spend • Revenue spread evenly across H1 FY22 total aggregated revenue H1 FY22 sustainability revenue sustainability, traditional chemicals and energy Traditional Low-Carbon 29% 12% Energy • Sustainability solutions support 7% Energy
Slide 31: Areas that will underpin improved earnings
Areas that will underpin improved earnings Sustainability work Professional services Cost savings benefits Gross margin% H1 FY22 Additive benefits from Gross margin% H1 FY22 cost savings programs1 600 500 400 300 $m 200 100 0 Traditional Sustainability H2 FY19 H2 FY23 Operational cost savings ECR co
Slide 32: What you can expect as our ambition emerges
What you can expect as our ambition emerges We aspire to Scale our Accelerate Deliver business in line growth in increased with increasing targeted areas margins customer investments • Targeted growth in high margin work • Scalable business set to benefit from • Continued headcount growth • Traditio
Slide 33: Sector updates
Sector updates Chris Ashton Worley | Worley | Investor Day 1 June 33 33 2022
Slide 34: Low-carbon energy - market fundamentals and outlook
Low-carbon energy Low-carbon energy - market fundamentals and outlook Clean energy investment projected to Renewed focus on energy security and Low-carbon energy continues to drive 1 rapidly grow to meet net-zero targets 2 independence is accelerating low 3 our growth carbon energy investment Clean
Slide 35: Power to X
Power to X Energy | Renewable Energy “ This project enables Oman to use its natural resources to produce green fuels for self-use and export, and supports our purpose of delivering a Green Energy Oman | Oman more sustainable world. - Dr Hans Dieter Hermes, Vice President of Clean Supporting Oman’s l
Slide 36: Conventional energy - market fundamentals and outlook
Treasury Committee version 3 Conventional energy Conventional energy - market fundamentals and outlook Mid term forecast for demand shows Investment growth expected to Playing a key role in developing the 1 year-on-year increases 2 continue 3 world’s first green energy island Mid term liquids supply
Slide 37: Supporting Shell's low-carbon journey in the Gulf of Mexico
Supporting Shell’s low-carbon journey in the Gulf of Mexico Energy | Traditional Shell | US A digitized and more efficient project delivery model We’ll provide engineering and procurement services to support five of Shell’s assets in the Gulf of Mexico (GOM). We’re supporting Shell’s continued work
Slide 38: Chemicals - market fundamentals and outlook
Chemicals and fuels Chemicals - market fundamentals and outlook Showing resilience as world responds Continued acceleration toward net World leader in developing 1 to conflict 2 zero 3 first of a kind solutions Announced net zero targets from Chemical market – investment by Region Chemical Recycling
Slide 39: Borouge Greenfield petrochemical complex
Borouge 4 Greenfield petrochemical complex Chemicals | Traditional Borouge | UAE Developing the largest single-site polyolefins complex in the world We’re working as the PMC for EPC services for the fourth expansion of Borouge’s integrated polyolefins complex in Ruwais, United Arab Emirates. This ex
Slide 40: Fuels - market fundamentals and outlook
Chemicals and fuels Fuels - market fundamentals and outlook Global fuel supply has rebounded to Advanced low-carbon fuel market is We have strong capability in 1 2019 levels 2 expanding rapidly 3 Sustainable Aviation Fuel (SAF) Alfanar’s low-carbon Global refining crude throughput1 Cumulative low-ca
Slide 41: Humber Refinery Carbon Capture
Humber Refinery Carbon Capture Fuels | Decarbonization Phillips 66 | UK “ Making sustainable transformation a reality with the Phillips 66 Humber Refinery Early front-end engineering services working to integrate Shell’s carbon capture technology – CANSOLV – into the We’re looking forward to refiner
Slide 42: Resources - market fundamentals and outlook
Resources Resources - market fundamentals and outlook Investment levels have risen to new Decarbonization expected to generate We value our long term relationships 1 record in every region: APAC, EMEA, 2 structural change in metal demand 3 with our customers Americas Investment required in transitio
Slide 43: Unlocking new copper resources
“ Today, the world consumes 30 million tonnes of copper per year Unlocking new copper resources Resources | Decarbonization Glencore | Canada and by the year 2050, following this trajectory, we've got to produce Going underground to reach rich ore bodies 60 million tonnes of Currently the world’s de
Slide 44: Accelerating our growth
Accelerating our growth Adrian Smith
Slide 45: Our priority initiatives
Our priority initiatives We are seeing Continued growth focus • Accelerating customer demand in each of these Accelerating growth in breakthrough markets markets and capabilities strategic priorities • Growth in scale of the projects (e.g. low-carbon Breakthrough markets hydrogen is moving from the
Slide 46: Our strategic investment
Our strategic investment Our plan: Our progress update: We forecast $100m of organic investment over three $13m invested as at H1 FY22, $35m forecast for FY22 years to accelerate our sustainability pathways, digital • Growth unit leadership in place and addressable markets defined for majority of
Slide 47: We're targeting the right areas and making progress
We’re targeting the right areas and making progress Growth area Demand Progress – FY23 and beyond Low carbon Net Zero 2050 path requires a USD 1.2t investment Number of wins up 70% FY22 YTD compared to pcp2 hydrogen between now and 20301 Carbon capture Policy support growing significantly across Can
Slide 48: Low Carbon Hydrogen- market fundamentals and outlook
Low Carbon Hydrogen- market fundamentals and outlook Hydrogen demand continues to Where are our customers investing Growth investment is driving 1 increase 2 3 acceleration Hydrogen Demand Projection Customer Investments Our Performance 78 EJ: exajoule, 1018j Shell bp Ørsted Low Carbon Hydrogen reve
Slide 49: Delivering a differentiated solution through continued innovation
Delivering a differentiated solution through continued innovation Innovation is essential to the proposition: Engineering • Strong focus on driving lower capex & opex Adopting a highly solutions to achieve FID – demanding a new automated, digital approach approach that accelerates engineering to del
Slide 50: Ørsted
Ørsted Energy | Decarbonization Ørsted | Netherlands Developing green hydrogen We’re supporting Ørsted in developing green hydrogen production delivered to Yara’s ammonia production in Sluiskil, Netherlands. Project Haddock aims to replace fossil hydrogen with renewable hydrogen in the production of
Slide 51: Integrated Gas – a strategic priority for Worley and our customers
Integrated Gas – a strategic priority for Worley and our customers 1 Demand is strong for integrated gas 2 Integrated Gas is a strategic priority 3 Gas is foundational in transitioning to a more sustainable world for Worley There is unprecedented growth in integrated Forecast capacity outlook to gro
Slide 52: Our integrated gas global footprint
Our integrated gas global footprint involved in the development of 40% 41 42 or worldwide FSRU projects We have 20 continuous years of providing LNG support to our customers Integrated gas factored sales pipeline up 180% since May 2020 Countries where Worley has executed integrated gas projects LNG
Slide 53: Key messages
Key messages 1 2 3 Our We are leaders in Our strategy is transformation is growing markets gaining traction well progressed and our as the strategic and we’re customers are imperative to positioned for increasing their meet net zero growth traditional and continues to build sustainability momentum i
Slide 54: &
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Slide 55: Supplementary information
Supplementary information
Slide 56: Sustainability pathways
Sustainability pathways 1. Decarbonization Carbon management Low-carbon fuels Decarbonization & feedstocks infrastructure Nuclear energy Energy efficiency Renewable energy & electrification Energy transition materials 2. Resource stewardship Bio-based materials Sulphur recovery Metals recovery Water
Slide 57: People Portfolio Planet
Our five-year ambition: We will be recognized globally as the leader in sustainability solutions Our People Our Portfolio Our Planet We energize and empower our people to We are our customers' most trusted We partner with customers as stewards of a drive sustainable impact partner, providing best-in
Slide 58: Backlog definition Fixed price vs reimbursable contract types
Backlog definition Fixed price vs reimbursable contract types Backlog is the total dollar value of the amount of revenues expected Reimbursable Contracts (~80% of our revenue): to be recorded as a result of work performed under contracts or Contracts based on reimbursement of reasonable and allowabl
Slide 59: 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 60: Glossary
Glossary $, $m, $b – Australian dollars unless otherwise EMEA - Services business line region encompassing MW - Megawatt stated, Australian millions of dollars, Australian Europe, Middle East and Africa Mtpa - Million Tons per Year billions of dollars EPC – Engineering, Procurement, Construction O&M
Slide 61: Speaker profiles
Speaker profiles Chris Ashton Tiernan O’Rourke Chief Executive Officer Chief Financial Officer Chris was appointed Chief Executive Officer and Managing Tiernan was appointed as Chief Financial Officer effective Director on 24 February 2020. He joined Worley in 1998 and 29 November 2021. His portfoli
Slide 62: Speaker profiles
Speaker profiles Mark Brantley Mark Trueman Group President, EMEA & APAC Group President, Americas Mark is responsible for all Worley businesses in the EMEA and Mark takes over responsibility for all Worley businesses in the APAC regions. Prior to this he was President for Europe, the Americas effec
Slide 63: Speaker profiles
Speaker profiles Sue Brown Adrian Smith Executive Group Director, Executive Group Director, Growth Sustainability (interim) and President, Advisian Sue is accountable for driving the sustainability vision and strategy Adrian has over 25 years of broad project and operational for Worley, advising the
Slide 64: Speaker profiles
Speaker profiles Veréna Preston Group Director, Investor Relations Registered office: Veréna is responsible for Investor Relations. Prior to this she led Internal Audit for the Group and was Managing Director at Level 17, 141 Walker Street Advisian, the consulting division of Worley, which she North