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WORLEY LIMITED Investor Presentation 2021

May 3, 2021

66073_rns_2021-05-03_88998761-d123-439d-b68e-6f51efa791a3.pdf

Investor Presentation

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Macquarie Conference

Chris Ashton, Chief Executive Officer

4 May 2021

worley.com

Worley Macquarie Conference 2021

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Disclaimer

The information in this presentation about Worley Limited and the entities it controls (Group) and its activities is current as at 4 May 2021 and should be read in conjunction with the Company’s Appendix 4D and Interim Financial Report for the half year ended 31 December 2020. It is in summary form and is not necessarily complete. The financial information contained in the Interim Report for the half year ended 31 December 2020 has been reviewed, but not audited, by the Group's external auditors. Any information relating to YTD or the Third Quarter has not been reviewed or audited by the Worley 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 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 Worley 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 reviewed by the Group’s external auditors. NonIFRS financial information should not be considered as an indication of or alternative to an IFRS measure of profitability, financial performance or liquidity.

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Worley Macquarie Conference 2021

Authorized for release by Nuala O’Leary, Group Company Secretary.

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Key messages

1 2 Business set up for the Delivering a more future sustainable world

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Worley Macquarie Conference 2021

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Our actions have set the business up for the future

The safety and well-being of our people remains our priority

Strong capital management: net debt at lowest level since ECR acquisition and disciplined cash collection

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Operational savings target increased by $75m[1] to $350m[1] by June 2022. ECR integration activities complete

14 contract award announcements to date in calendar year 2021. Some deferred work returning, still seeing some project deferrals

Minimal change to headcount since January 2021. AUD:USD has increased over 7c on average from FY2020 to FY2021 to date

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In line with guidance provided in February 2021, on track for improved H2 FY21 compared to H1 FY21

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Worley Macquarie Conference 2021

  1. Annualized savings

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Market update
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Upstream and midstream

  • Some recovery in project sanctioning expected in 2021

  • • Demand for LNG expected to grow faster than supply supporting long term investment

Sustainability themes

  • Increasing number of major oil and gas companies setting net zero targets and pivoting strategies

  • Gas continues to play a role in energy mix as lower-carbon energy source

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Capex and opex oil and gas investment by region
900
600
EMEA
Americas
300
APAC
0
2020 2021 2022 2023 2024 2025
USD b
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Source: Rystad Energy, ServiceDemandCube (February 2021) (EMEA includes Russia and Central Asia)
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Power

  • Capex investment in renewables has remained relatively steady through the pandemic

  • Forward-looking capex spend has increased for major energy companies

Sustainability themes

  • Offshore wind and green hydrogen investment continues to be strong

  • Uptake of renewables will require significant investment in transmission and distribution infrastructure

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Offshore wind annual investment, new capacity
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$60
$40
$20
$0
2020 2021 2022 2023 2024 2025
Source: BloombergNEF, excludes China
USD b (real 2019)
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Market update
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Refining and chemicals

  • Refining industry under ongoing pressure

  • Major chemicals customers reporting improved earnings and increasing capex announcements

Sustainability themes

  • Conversions of refineries for biofuels

  • Chemicals industry to reduce energy intensity through changing feedstocks and production processes

  • Converting chemicals feedstock to biomass and waste

Mining, minerals and metals

  • Resilience in commodity prices including copper and iron ore

  • Sustainability themes

  • Miners looking to reduce emissions from their sites through electrification

  • Materials for batteries: lithium, nickel and cobalt

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Global chemical output rebounding with year-on-year growth forecast
2 2020
2021 2022
-3
Agricultural Chemicals
Basic Chemicals
-8
Specialty Chemicals
Total World
Source: IHS Markit, December 2020
Top 40 mining, minerals and metals companies' capex growth in 2021
output
Year-on-year % change in
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40%
20%
0%
-20%
Coal and Copper Diversified Steel Gold and Grand total
consumable metals and precious metals
fuels mining
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Source: S&P Capital IQ, Top 40 mining companies by market capitalisation, as of 20 January 2021

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Our sustainability pivot providing
the structural framework for growth
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Sustainability as defined by $1.2b revenue in H1 FY21 at Energy transition and circular
our sustainability domain more favorable margins economy opportunities
increased from 11% to 18% of
[1]
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Delivering a more sustainable world
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Worley Macquarie Conference 2021

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through strategic action
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sustainability challenges:
The biggest role we have to play is in supporting
Aligned with Paris Agreement and UN Sustainable
our customers on their sustainability journeys
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Our top 20 customers across all our sectors:
We are part of partnerships and coalitions to contribute to
breakthrough solutions •
70% have publicly stated emissions reduction targets
•
Charter level partner of Princeton Andlinger Center for •
100% are investing in decarbonization
Energy and the Environment
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Worley Macquarie Conference 2021

Our sustainability domain

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Mid to long-term
Capability [1]
opportunity [2]
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Energy Transition Low-carbon hydrogen, CCUS, transition materials, nuclear, solar, offshore wind, DES[3] Circular Economy Waste to energy, bio-based products such as renewable fuel, plastics recovery Restoration Decommissioning, contaminated land management, soil & groundwater remediation Sustainable ECR[4] Infrastructure Climate change resilience, geohazard management, materials sustainability Water Stewardship Water treatment, waste water management, flood risk management, supply & security Environmental Management Air quality management, approvals & compliance, due diligence, incident management Social Value Indigenous participation, heritage protection, stakeholder engagement, public safety

UN Sustainable Development Goals (SDGs)

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  1. Relative strength in capability, with capacity to grow 2. Relative size of market opportunity 3. Distributed energy systems 4. Energy, Chemicals and Resources

High Medium Low

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Worley Macquarie Conference 2021

Sustainability is a growing part of our business

  • Sustainability represented 29% of H1 FY21 aggregated revenue, similar to whole of FY2020

  • Sustainability opportunities represent 45% of factored sales pipeline[1] at January 2021

  • Around 50% of sustainability opportunities have award date within 12 months

  • Energy transition and circular economy factored sales pipeline[1] opportunities are accelerating

  • Sustainability project awards increasing in complexity, volume and scale

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Sustainability domain
50%
45%
45%
39%
40%
35% 20%
29%
30%
21%
25%
3%
20% 18% 3.7%
15% 3% 1 1
3.7%
10%
2% 18%
4.5%
5% 11%
4%
0%
H1 FY21 revenue Factored sales pipeline Nov-20 Factored sales pipeline Jan-21
Energy transition and circular economy Environment, social and water
Transition materials Gas and LNG
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Worley Macquarie Conference 2021

  1. Factored for likelihood of project proceeding and award to Worley

Sustainability project complexity drives gross margin

  • Our target sustainability projects are technically complex with a similar risk profile to other services – not lump sum turn-key

  • Sustainability opportunities in our factored sales pipeline[1] have a more favorable gross margin percentage compared to our other services

  • Gross margin differences across sustainability domain are mostly due to type of work performed

  • Sustainability projects provide opportunities for alternative commercial models, particularly with emerging customers

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Factored sales pipeline revenue [1] (proportion of total)
25%
20%
15%
10%
5%
0%
Energy transition and Environment, social and Transition materials Gas and LNG
circular economy water
Factored sales pipeline gross margin [1]
All other energy, chemicals
and resources services
factored sales pipeline
gross margin %
Energy transition and Environment, social and Transition materials Gas and LNG
circular economy water
Gross margin (%)
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Worley Macquarie Conference 2021

  1. Factored for likelihood of project proceeding and award to Worley, January 2021

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Delivering sustainable outcomes for customers
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Energy Transition

Circular Economy

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Track record of 2400+ Energy Transition projects
70+ 200+ 700+ 130+
Wind power projects Renewable fuels & waste-to-
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energy projects
projects and storage (CCUS) projects
Refer page 13 Refer page 14, 15 Refer page 16 Refer page 17
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Nouryon
Low-carbon hydrogen
Green hydrogen for the Amsterdam metropolitan area
•
Scaling up plant capacity for the world’s first
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100 MW electrolyzer built
•
Decarbonizing steel production and providing
renewable feedstock for biofuel production
•
Broader opportunities across supply chain
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1PointFive
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CCUS
First commercial scale development using of
Carbon Engineering’s Direct Air Capture (DAC)
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The technology involves the removal of CO2
directly from the atmosphere
Each DAC unit has an expected design
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Drax
CCUS
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Our work for Drax has the potential to capture
and store a combined total of 8 million tonnes
of carbon dioxide a year
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Ørsted Offshore wind

Designing and installing ‘Revolution Wind’ An offshore wind farm for Connecticut and Rhode Island that will generate enough to power more than 350,000 homes

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Phillips 66
Renewable fuels
Converting refinery to renewable fuels-
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manufacturing facility
•
Expected to be one of the world’s largest facilities
of its kind
•
Will produce up to 2.5 billion litres per year of
renewable transportation fuels
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Customers recognize our competitive advantage
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“We partnered with Worley for this historic “The Worley team brings strong expertise
project because our organizations are like- in technology assessment and has
minded in their vision of sustainability. extensive experience in scaling up first-
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Worley has a proven track record of true of-a-kind plants. We highly value our
innovation, and that will be essential to collaboration with Worley in the next
bring DAC to commercial scale.” exciting stage of development.”
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Customer Global scale and Delivery of technically Experts with Innovation and relationships proven track record complex projects transferable skills technology solutions

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Worley Macquarie Conference 2021

Summary

Business set up for the future

  • We continue to actively manage what is in our control

  • Diversified business is a strength as different geographies and sectors recover at different rates

  • We expect to see continued investment in our other services in line with demand

  • On track for improved result in H2 FY21 compared to H1 FY21

Delivering a more sustainable world

  • Our sustainability pivot provides the structural framework for growth and positions us at the center of significant investment across our sectors

  • We are using our specialized expertise to deliver complex solutions for our customers as they transition to a low-carbon world

  • Sustainability opportunities in our are

  • factored sales pipeline[1] accelerating

  • Sustainability opportunities in our factored sales pipeline[1] have a more favorable gross margin percentage compared to our other services

We are very pleased with the level of work we are winning

  • Factored for likelihood of project proceeding and award to Worley

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&
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Registered office:

Level 17, 141 Walker Street North Sydney NSW 2060 Australia

T: +61 2 8923 6866

E: [email protected]

Worley Limited ABN 17 096 090 158

worley.com

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