WORLEY LIMITED — Annual Report 2021

Aug 24, 2021

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Appendix 4E Year Ended 30 June 2021

Worley Limited ABN 17 096 090 158

Level 17

141 Walker Street North Sydney NSW 2060 Australia Ph: +61 2 8923 6866 Fax: +61 2 8923 6877

www.worley.com

RESULTS FOR ANNOUNCEMENT TO THE MARKET[1]

STATUTORY RESULT

STATUTORY RESULT
	Consolidated
	30 JUNE	30 JUNE	Change	Change
	2021	2020
	$’M	$’M	$’M	%
Revenue and other income	9,526	13,068	(3,542)	(27)
Earnings before interest, tax and amortization (EBITA)2	324	498	(174)	(35)
Profit before income tax expense	147	267	(120)	(45)
Profit after income tax expense attributable to members of Worley Limited	86	171	(85)	(50)
EBITA margin on aggregated revenue	3.7%	4.4%	-	(0.7)pp
Basic earnings per share (cents)	16.5	32.8	(16.3)	(50)
Diluted earnings per share (cents)	16.3	32.7	(16.4)	(50)

UNDERLYING RESULT

Costs in relation to transition, transformation and restructuring activities and government subsidies (net of direct costs) have been excluded from the underlying result. The directors consider underlying profit information is important to understand the sustainable performance of the company by excluding selected significant items and amortization on acquired intangible assets.

selected significant items and amortization on acquired intangible assets.
	Consolidated
	30 JUNE	30 JUNE	Change	Change
	2021	2020
	$’M	$’M	$’M	%
EBITA3	468	743	(275)	(37)
EBITA margin on aggregated revenue	5.3%	6.6%	-	(1.3)pp
NPATA attributable to members of Worley Limited4	281	432	(151)	(35)
Basic earnings per share (cents)5	53.8	82.9	(29.1)	(35)
Operating cash flow, net of procurement cash movements6	621	1,028	(407)	(40)

1 The International Financial Reporting Standards financial information contained within this Appendix 4E has been derived from the 30 June 2021 Annual Financial Report, which has been audited by Ernst & Young. However, this Appendix 4E has not been audited.

2 EBITA is defined as earnings before interest, tax and amortization on intangible assets acquired through business combinations.

3 Per segment note 3(E) of the 30 June 2021 Financial Report.

4 NPATA is defined as profit after tax excluding the post tax impact of amortization on intangible assets acquired through business combinations.

5 Basic Earnings per share calculated on a NPATA basis

6 Underlying cash flow is defined as statutory operating cash flow adjusted for the cash effects of underlying adjustments and procurement cash movements.

RECONCILIATION OF STATUTORY PROFIT AFTER INCOME TAX EXPENSE TO UNDERLYING PROFIT AFTER INCOME TAX AND BEFORE AMORTIZATION[1]

AMORTIZATION1
	Consolidated
	30 JUNE	30	JUNE
	2021		2020
	$’M		$’M
Profit after income tax expense attributable to members of Worley Limited	86		171
Impact of transformation and restructuring:
Payroll restructuring	43		41
Impairment of property assets	38		51
Onerous contracts, consulting and other costs	63		29
International Government subsidies, net of direct costs	(70)		(18)
Transition costs	55		147
Impairment of other assets	12		-
Impact of arbitration award2	-		(3)
Gain on disposal of subsidiary/investment	(7)		(2)
Certain one off other items	(1)		(7)
Impairment of investment in equity accounted associates	11		7
One off costs of refinancing debt with EMTN issuance	4		-
Net tax expense on the items excluded from underlying earnings	(39)		(66)
Underlying tax adjustments	11		1
Underlying profit after income tax expense attributable to members of Worley Limited	206		351
Amortization of intangible assets acquired through business combinations	100		109
Tax effect on amortization of intangible assets acquired through business combinations	(25)		(28)
Underlying NPATA attributable to members of Worley Limited	281		432

AGGREGATED REVENUE RESULT

Aggregated revenue is defined as statutory revenue and other income plus share of revenue from associates, less procurement revenue at nil margin, passthrough revenue at nil margin[3] and interest income. The Directors of Worley Limited believe the disclosure of the relevant share of revenue from associates provides additional information in relation to the financial performance of Worley Limited Group.

	Consolidated	Consolidated
	30 JUNE	30 JUNE	Change	Change
	2021	2020
	$’M	$’M	$'M	%
Revenue and other income	9,526	13,068	(3,542)	(27)
Less: procurement revenue at nil margin (including share of revenue from associates)	(949)	(2,190)	(1,241)	57
Add: share of revenue from associates	210	393	(183)	(47)
Less: interest income	(6)	(10)	(4)	40
Less: gain on sale of investment	(7)	(2)	(5)	n/a
Less: Certain one off other income items	-	(7)	(7)	n/a
(Less)/Add: impact of the arbitration award	-	(3)	(3)	n/a
Aggregated revenue	8,774	11,249	(2,475)	(22)

1 The directors consider underlying profit information is important to understand the sustainable performance of the Company by excluding selected significant items and amortization on acquired intangible assets.

2 (Increase)/reduction in revenue from an arbitration award in relation to a dispute with a state owned enterprise.

3 Pass-through at nil-margin refers to sub-contract packages for services or materials where Worley does not receive a margin.

DIVIDEND
	Amount
Interim dividend (cents), unfranked	25.0
Proposed final dividend per share (cents), unfranked	25.0
Record date for determining entitlement to final dividend	1 September 2021
Date dividend is to be paid	29 September 2021

The directors have resolved to pay a final dividend of 25.0 cents per fully paid ordinary share, including exchangeable shares, unfranked (2020: 25.0 cents per share). The Company will make total dividend payments of 50.0 cents per share for the financial year ended 30 June 2021 (2020: 50.0 cents per share).

NET ASSETS PER SHARE

NET ASSETS PER SHARE
	Consolidated
	30 JUNE	30 JUNE
	2021	2020
	$	$
Net assets per share	10.71	11.39
Net tangible liabilities per share1	(0.87)	(0.89)

Further information on the results of operations is included in the media release and in the 2021 Annual Report dated 25 August 2021 accompanying this Appendix 4E.

1 Right of use assets recognized and measured under AASB 16 Leases are included in the net tangible assets per share calculation as at 30 June 2021, consistent with 30 June 2020.