Half Year Results 2019 Andrew Wood, CEO Half year results 2019
Disclaimer The information in this presentation about the WorleyParsons Group and its activities is current as at 20 February 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 form and is no t necessarily complete. The financial information contained in the Interim Report for the half year ended 31 December 2018 has been reviewed, but not audited, by the Group's external auditors. This presentation contains forward looking statements. These forward looking statements should not be relied upon as a representation or warranty, express or implied, as to future matters. Prospective financial information has been based on current expectations about future events and is, however, subject to risks, uncertainties, contingencies and assumptions that could cause actual results to differ materially from the expectations described in such prospective financial information. The WorleyParsons Group undertakes no obligation to update any forward looking statement to reflect events or circumstances after the date of the release of this presentation, subject to disclosure requirements applicable to the Group. Nothing in this presentation should be construed as either an offer to sell or solicitation of an offer to buy or sell WorleyParsons Limited securities in any jurisdiction. The information in this presentation is not intended to be relied upon as advice to investors or potential investors and does not take into account your financial objectives, situation or needs. Investors should consult with their own legal, tax, business and/or financial advisors in connection with any investment decision. No representation or warranty is made as to the accuracy, adequacy or reliability of any statements, estimates, opinions or other information contained in this presentation. To the maximum extent permitted by law, all liability and responsibility (including without limitation any liability arising from fault or negligence) for any direct or indirect loss or damage which may be suffered through use or reliance on anything contained in or omitted from this presentation is disclaimed. This presentation may include non-IFRS financial information. The non-IFRS financial information is unaudited and has not been r eviewed by the Group’s external auditors. Non-IFRS financial information should not be considered as an indication of or alternative to an IFRS measure of profitability, financial performance or liquidity. 2 Half year results 2019
HY2019 summary Our strategy is delivering. Improved financial performance ▪ Double digit revenue growth $2,566.2m $98.4m ▪ Improved EBIT and NPAT margins Aggregated revenue Underlying NPAT Balance sheet de-risked +11.1% growth from PCP +25.8% growth from PCP ▪ New USD1.3b syndicated facility agreement ▪ Gearing 25.7%*, leverage 2.1x* $21.0m 2.1x Backlog increased Operating cash flow Leverage * ▪ 2 nd consecutive year of 10% increase vs $44.3 in PCP June 2018: 1.9x ▪ Pace of ASX announced awards increased Jacobs ECR $6.6b Jacobs ECR acquisition on track acquisition ▪ Progress towards completion in late March/April 36 Month Backlog ▪ Operational performance positive 10% growth in 12 months on track Interim dividend 12.5 cents per share * Excluding proceeds from capital raising 3 Refer to pages 16 & 17 for the Statutory Statement of Financial Performance and Half year results 2019 Reconciliation of statutory to underlying NPAT result
Overview HY2019 achievements Aggregated revenue growth, driven by construction services and UK IS acquisition ▪ EBIT and NPAT growth, with higher margins ▪ Financial results Completed $2.9b acquisition capital raising for Jacobs ECR acquisition ▪ New USD1.3b Syndicated Facility Agreement in place ▪ Staff utilization remains on target ▪ Cost out program proving sustainable ▪ Operating parameters Delivered operating leverage ▪ Increased backlog ▪ H1 ASX announced awards highest in ten years ▪ Operational highlights UK IS acquisition integration complete. Revenue synergies flowing ▪ Preparation for day one of Jacobs ECR acquisition at an advanced stage ▪ 4 Half year results 2019
Aggregated revenue and underlying EBIT Revenue and EBIT growth Half on half revenue Half on half underlying EBIT AUD'M H1 H2 AUD'M H1 H2 4,000.0 200.0 166 156 3,107 153 150 140 133 2,619 3,000.0 2,566 150.0 2,439 118 2,310 2,211 2,166 2,000.0 100.0 50.0 1,000.0 0.0 0.0 FY2016 FY2017 FY2018 FY2019 FY2016 FY2017 FY2018 FY2019 ▪ Revenue and EBIT growth from construction services and full period of UK Integrated Solutions business 5 Half year results 2019
Backlog growth Approximate timing of backlog ($b) 36 month backlog ($b) Backlog as at 31 December 2018 7.0 6.5 FY19 2.3 6.0 5.5 FY20 2.4 5.0 6.6 6.4 6.0 4.5 FY21 1.6 5.1 4.0 4.7 3.5 FY22 0.3 3.0 Dec-16 Jun-18 Dec-18 Jun-17 Dec-17 ▪ Second consecutive year of +10% backlog growth (in addition to the contribution from UK IS) 6 Half year results 2019
ASX announced contract awards in FY19 Pace of awards has increased ng key s 5 d 17 6 . 8 3 14 2 Hydrocarbons Increase in recent ASX ▪ Power 11 16 announced wins providing 4 12 1 early positions in next 7 Minerals and metals wave of investment Chemicals Broad geographic, sector ▪ and project phase 18 representation 15 13 9 10 1 5 9 14 Assiut Hydrocracking Complex Egypt Lundin EPCI Norway Collie Power Station O&M Encana EPCM 2 6 10 15 SABIC EPCM Europe ConocoPhillips E&C and EPC BP Terminals NZ MMO Newmont EPCM KA-CARE Nuclear PMO 3 7 11 16 Tidewater Pipestone EPC INEOS Styrolution EPCM Chevron Chemicals Oronite EPC, China NOVA Chemicals Corunna Cracker Expansion Project 4 8 12 17 Borouge 4 Complex FEED Noor Energy 1 solar power installation Nexen Buzzard Phase 2 development project (Phase 3) 13 18 7 Woodside Brownfields EPCM Extension Pertamina Balikpapan Refinery Half year results 2019
UK Integrated Solutions Acquisition update 8 Half year results 2019
UK Integrated Solutions – example revenue synergy New Zealand – BP WorleyParsons Joint Venture Joint venture with BP for the management & operations of seven fuel storage, handling and Contract scope distribution centres, plus an associated projects & engineering management contract UK Integrated Solutions brings... WorleyParsons NZ brings… Track record of delivering services locally in Relationship Long term global relationship with BP New Zealand Provision of all management, operations and Engineering, project delivery and Work Scope maintenance services with full responsibility for sites maintenance services delivered locally regulatory compliance Expertise / Track record delivering projects and O&M Dutyholder experience Differentiator support services locally 9 Half year results 2019
UK Integrated Solutions – example revenue synergy Nigeria - Confidential IOC Client Full construction services including field engineering, procurement, construction & logistics Contract Scope management for offshore facilities UK Integrated Solutions brings… WorleyParsons Nigeria JV (DeltaTek ) brings … Significant facilities rejuvenation capability with many Existing relationship with major IOCs & Relationship IOCs NOCs Construction, procurement and offshore Project services and construction management Work Scope field accommodation and logistics expertise to be delivered locally services Expertise / A leader in brownfield modifications with strong Recognised as significant contractor in Differentiator construction and integrated delivery systems Nigeria and fully locally owned company 10 Half year results 2019
UK Integrated Solutions – example revenue synergy AGT BP Chirag Gas Lift Project FEED (Azerbaijan, Georgia, Turkey) Bringing the best of local country knowledge and experience, with the required expertise, tools and Contract Scope systems of a leading brownfield execution provider (UKIS) for a large offshore upgrade UK Integrated Solutions brings… AGT Local Operations brings… Asset knowledge and connectivity to the Long standing relationship in the North Sea delivering Relationship local BP asset teams, including optimising complex projects and hook-ups local content Project services, customer interface FEED for the CGLP project with the aim of de-risking Work Scope management and preparation for the project execution execution phase Significant brownfield and highly complex projects Competent deliverer of brownfield Expertise / capability, coupled with advanced engineering Services working alongside the customer Differentiator systems and assets in Baku 11 Half year results 2019
Health Safety and Environment Our safety performance ▪ Employee Total Recordable Case Frequency Rate (TRCFR) at December 2018 was 0.10) (June 2018: 0.12) ▪ Employee, Contractor & Subcontractor and Partner TRCFR at December 2018 was 0.14 (June 2018: 0.15) The Group’s HSE Committee focus areas for FY2019 ▪ Situational awareness in the field ▪ Automation of HSE systems ▪ Use of predictive analytics (eg SaltGrid) ▪ Climate related risks and opportunities 12 Half year results 2019
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