WORLEY LIMITED — Annual Report 2023

Aug 22, 2023

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Appendix 4E Year Ended 30 June 2023

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

RESULTS FOR ANNOUNCEMENT TO THE MARKET1 STATUTORY RESULT
	CONSOLIDATED
	30 JUNE	30 JUNE
	2023	2022	CHANGE	CHANGE
	$’M	$’M	$’M	%
Revenue and other income	11,333	9,705	1,628	17
Earnings before interest, tax and amortization (EBITA)2	345	449	(104)	(23)
Profit before income tax expense	146	294	(148)	(50)
NPATA attributable to members of Worley Limited3	104	243	(139)	(57)
Profit after income tax expense attributable to members of WorleyLimited	37	172	(135)	(78)
EBITA margin on aggregated revenue4	3.2%	5.0%	-	(1.8)
Operating cash flow	260	316	(56)	(18)
	CONSOLIDATED
	30 JUNE	30 JUNE
	2023	2022	CHANGE	CHANGE
	CENTS	CENTS	CENTS	%
Basic earnings per share	7.0	32.8	(25.8)	(79)
Diluted earnings per share	7.0	32.6	(25.6)	(79)

On 26 May 2023, Worley completed the sale of the North American Maintenance, Turnaround and Power Operations & Maintenance business ("the disposal group"). As a result of this, a loss on sale and related expenses of $240 million was recognized within the loss on sale of disposal group and related expenses line of the Consolidated Statement of Financial Performance and treated as an exclusion from underlying earnings.

UNDERLYING RESULT

During FY2023 cost adjustments comprise those in relation to the shared services transformation and a loss on sale of disposal group and related expenses which have been excluded from the underlying result. The directors consider underlying result information is important to understand the sustainable performance of the company by excluding selected significant items and amortization on acquired intangible assets.

	CONSOLIDATED	CONSOLIDATED
	30 JUNE	30 JUNE
	2023	2022	CHANGE	CHANGE
	$’M	$’M	$’M	%
Aggregate Revenue	10,928	9,065	1,863	21
EBITA5	635	547	88	16
EBITA margin on aggregated revenue4	5.8%	6.0%	-	(0.2pp)
EBITA margin on aggregated revenue (excluding segment procurement revenue at margin)6	6.5%	6.4%	-	0.1pp
NPATA attributable to members of Worley Limited	348	329	19	6
Operatingcash flow8	324	376	(52)	(14)
		Consolidated
	30 JUNE	30 JUNE
	2023	2022	CHANGE	CHANGE
	CENTS	CENTS	CENTS	%
Basic earnings per share7	66.2	62.8	3.4	5

1 Statutory financial information contained within the Appendix 4E has been derived from the 30 June 2023 Annual Financial Report which has been audited by PricewaterhouseCoopers ('PWC'). 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 NPATA is defined as net profit after tax excluding the post tax impact of amortization on intangible assets acquired through business combinations.

• 4 Aggregated revenue is defined per “Aggregated Revenue Result” section on page 2 of Appendix 4E.

• 5 Per segment note 3(E) of the 30 June 2023 Financial Report.

6 The Group delivers value to customers by providing engineering and construction expertise. In delivering such services, the Group will procure goods or services and earn margin on the subsequent sale to customers. Procurement at Margin is considered a key value added service which would not occur without the engineering or construction services. Consequently, EBITA margin on aggregated revenue (excluding segment procurement revenue at margin) is calculated as Underlying EBITA / (Aggregated Revenue less Segment Procurement Revenue at Margin).

7 Basic underlying earnings per share are calculated on NPATA basis

• 8 Underlying cash flow is defined as statutory operating cash flow adjusted for the cash effects of cost adjustments, as described in the underlying result description below.

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

AMORTIZATION1
	CONSOLIDATED
	30 JUNE	30 JUNE
	2023	2022
	$’M	$’M
Profit after income tax expense attributable to members of WorleyLimited	37	172
Costs in relation to cost saving programs	50	67
Impact of transformation and restructuring:
Shared services transformation	50	53
Payroll and other restructuring costs	-	15
Other transformation and transition costs	-	(1)
Loss on sale of disposal group and related expenses2	240	-
Net impact of historical legal matters	-	16
Impact of withdrawal from Russia	-	14
Other	-	1
Net tax expense on items excluded from underlyingearnings	(46)	(12)
Underlying profit after income tax expense attributable to members of WorleyLimited	281	258
Amortization of intangible assets acquired through business combination	89	95
Tax effect on amortization of intangible assets acquired through business combination	(22)	(24)
UnderlyingNPATA attributable to members of WorleyLimited	348	329

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 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.

provides additional information in relation to the financial performance of Worley Limited	Group.
	CONSOLIDATED
	30 JUNE	30 JUNE
	2023	2022	CHANGE	CHANGE
	$’M	$’M	$'M	%
Revenue and other income	11,333	9,705	1,628	17
Less:procurement revenue at nil margin (includingshare of revenue from associates)	(1,192)	(946)	(246)	26
Revenue excluding procurement revenue at nil margin	10,141	8,759	1,382	16
Add: share of revenue from associates	794	310	484	156
Less: interest income	(7)	(4)	(3)	75
Aggregated revenue	10,928	9,065	1,863	21
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			30	August 2023
Date dividend is to be paid			27 September 2023

The directors have resolved to pay a final dividend of 25.0 cents per fully paid ordinary share, including exchangeable shares, unfranked (2022: 25.0 cents per share, unfranked). The Company will make total dividend payments of 50.0 cents per share for the financial year ended 30 June 2023 (2022: 50.0 cents per share, unfranked).

1 During FY2023 cost adjustments comprise those in relation to the shared services transformation and a loss on sale of disposal group and related expenses which have been excluded from the underlying result. In FY2022 costs in relation to cost saving programmes, net impact of historical legal matters, impact of withdrawal from Russia and certain other one-off costs have been also excluded from the underlying result. The directors consider underlying result information is important to understand the sustainable performance of the company by excluding selected significant items and amortization on acquired intangible assets.

2 The Group has excluded Loss on disposal and related expenses (refer to note 21(C)) of the Annual Financial report for further details and a resulting tax impact from the underlying results.

NET ASSETS PER SHARE

NET ASSETS PER SHARE
	CONSOLIDATED
	30 JUNE	30	JUNE
	2023		2022
	$		$
Net assets per share	10.65	10.83
Net tangible liabilitiesper share1	(0.89)	(0.90)

Further information on the results of operations is included in the media release and in the 2023 Annual Financial Report dated 23 August 2023 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 2023, consistent with 30 June 2022.