Results 2019 Andrew Wood, CEO Half year results 2019 Disclaimer - - PowerPoint PPT Presentation

Half year results 2019

Andrew Wood, CEO

Half Year Results 2019

Half year results 2019 2

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 not 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

• bjectives, 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. Non-IFRS financial information should not be considered as an indication of or alternative to an IFRS measure of profitability, financial performance or

liquidity.

Half year results 2019 3

$2,566.2m

Aggregated revenue +11.1% growth from PCP

$98.4m

Underlying NPAT +25.8% growth from PCP

2.1x

Leverage * June 2018: 1.9x

$6.6b

36 Month Backlog 10% growth in 12 months

Jacobs ECR acquisition

• n track

Improved financial performance

▪ Double digit revenue growth ▪ Improved EBIT and NPAT margins

Balance sheet de-risked

▪ New USD1.3b syndicated facility agreement ▪ Gearing 25.7%*, leverage 2.1x*

Backlog increased

▪ 2nd consecutive year of 10% increase ▪ Pace of ASX announced awards increased

Jacobs ECR acquisition on track

▪ Progress towards completion in late March/April ▪ Operational performance positive

$21.0m

Operating cash flow vs $44.3 in PCP

Interim dividend 12.5 cents per share

HY2019 summary

Our strategy is delivering.

* Excluding proceeds from capital raising Refer to pages 16 & 17 for the Statutory Statement of Financial Performance and Reconciliation of statutory to underlying NPAT result

Half year results 2019 4

Overview

Financial results

HY2019 achievements

Operating parameters Operational highlights

▪ Aggregated revenue growth, driven by construction services and UK IS acquisition ▪ EBIT and NPAT growth, with higher margins ▪ 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 ▪ Delivered operating leverage ▪ Increased backlog ▪ H1 ASX announced awards highest in ten years ▪ UK IS acquisition integration complete. Revenue synergies flowing ▪ Preparation for day one of Jacobs ECR acquisition at an advanced stage

Half year results 2019 5

Aggregated revenue and underlying EBIT

Revenue and EBIT growth

▪ Revenue and EBIT growth from construction services and full period of UK Integrated Solutions business Half on half underlying EBIT Half on half revenue

3,107 2,166 2,310 2,566 2,619 2,211 2,439 0.0 1,000.0 2,000.0 3,000.0 4,000.0 FY2016 FY2017 FY2018 FY2019 AUD'M H1 H2 150 118 133 156 153 140 166 0.0 50.0 100.0 150.0 200.0 FY2016 FY2017 FY2018 FY2019 AUD'M H1 H2

Half year results 2019 6

Backlog growth

36 month backlog ($b)

Backlog as at 31 December 2018

Approximate timing of backlog ($b)

4.7 5.1 6.0 6.4 6.6 3.0 3.5 4.0 4.5 5.0 5.5 6.0 6.5 7.0

Dec-16 Dec-17 Dec-18 Jun-18

0.3 1.6 2.4 2.3

FY19 FY22 FY20 FY21 Jun-17

▪ Second consecutive year of +10% backlog growth (in addition to the contribution from UK IS)

Half year results 2019 ng key s d . 7

Hydrocarbons Power Minerals and metals Chemicals

▪ Increase in recent ASX announced wins providing early positions in next wave of investment ▪ Broad geographic, sector and project phase representation

2 11 8 3 14 16 1 5 9 6 10 7 15 4 12

ASX announced contract awards in FY19

Pace of awards has increased

18

1

Assiut Hydrocracking Complex Egypt

5

Lundin EPCI Norway

9

Collie Power Station O&M

14

Encana EPCM

2

SABIC EPCM Europe

6

ConocoPhillips E&C and EPC

10

BP Terminals NZ MMO

15

Newmont EPCM

3

Tidewater Pipestone EPC

7

KA-CARE Nuclear PMO

11

INEOS Styrolution EPCM

16

Chevron Chemicals Oronite EPC, China

4

Borouge 4 Complex FEED

8

NOVA Chemicals Corunna Cracker Expansion Project (Phase 3)

12

Noor Energy 1 solar power installation

17

Nexen Buzzard Phase 2 development project

13

Woodside Brownfields EPCM Extension

18

Pertamina Balikpapan Refinery

13 17

Half year results 2019

UK Integrated Solutions

Acquisition update

8

Half year results 2019 9 Joint venture with BP for the management & operations of seven fuel storage, handling and distribution centres, plus an associated projects & engineering management contract Contract scope Long term global relationship with BP Relationship Track record of delivering services locally in New Zealand Provision of all management, operations and maintenance services with full responsibility for sites regulatory compliance Work Scope Engineering, project delivery and maintenance services delivered locally Dutyholder experience Expertise / Differentiator Track record delivering projects and O&M support services locally UK Integrated Solutions brings... WorleyParsons NZ brings…

New Zealand – BP WorleyParsons Joint Venture

UK Integrated Solutions – example revenue synergy

Half year results 2019 10 Full construction services including field engineering, procurement, construction & logistics management for offshore facilities Contract Scope Significant facilities rejuvenation capability with many IOCs Relationship Existing relationship with major IOCs & NOCs Project services and construction management expertise to be delivered locally Work Scope Construction, procurement and offshore field accommodation and logistics services A leader in brownfield modifications with strong construction and integrated delivery systems Expertise / Differentiator Recognised as significant contractor in Nigeria and fully locally owned company UK Integrated Solutions brings… WorleyParsons Nigeria JV (DeltaTek) brings …

Nigeria - Confidential IOC Client

UK Integrated Solutions – example revenue synergy

Half year results 2019 11 Bringing the best of local country knowledge and experience, with the required expertise, tools and systems of a leading brownfield execution provider (UKIS) for a large offshore upgrade Contract Scope Long standing relationship in the North Sea delivering complex projects and hook-ups Relationship Asset knowledge and connectivity to the local BP asset teams, including optimising local content FEED for the CGLP project with the aim of de-risking the project execution Work Scope Project services, customer interface management and preparation for execution phase Significant brownfield and highly complex projects capability, coupled with advanced engineering systems Expertise / Differentiator Competent deliverer of brownfield Services working alongside the customer and assets in Baku UK Integrated Solutions brings… AGT Local Operations brings…

AGT BP Chirag Gas Lift Project FEED (Azerbaijan, Georgia, Turkey)

UK Integrated Solutions – example revenue synergy

Half year results 2019

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

Health Safety and Environment

Half year results 2019 ng key s d .

Responsible business at WorleyParsons

We have always taken a responsible and sustainable approach to our business. This year we have:

▪

delivered community social impact with a network of champions and the WorleyParsons Foundation

▪

continued our ethics program with enhanced Code of Conduct training

▪

EcoNomics™ has delivered profitable sustainability since 2007

▪

progressed our climate change program and climate change position to reduce emissions across our industry

▪

Implemented responsible business assessments for customer due diligence

▪

established our LGBTIQ+ network Pride@WorleyParsons

Active WorleyParsons Foundation projects

30+

Corporate responsibility themed activities, tracked and reported

2,500+

Carbon emissions reductions (tonnes C02-e) since 2012

48%

Volunteer hours

115,000

Community contributions by operations, our people and fundraising Senior Executives are Women

26%

Board members are Women

40% $22 Million

Ethics helpline available to all our people in 42 countries

42

Code of Conduct training delivered to contractors, employees and partners

25,000+

13

Half year results 2019 ng y s d . 14

Chief Executive Officer Andrew Wood Chief Financial Officer Tom Honan Chief Operating Officer Chris Ashton

Jacobs ECR Acquisition

New Operating Structure

Advisian President Adrian Smith Energy & Chemicals Services Group President Vinayak Pai Major Projects and Integrated Solutions Group President Karen Sobel Mining, Minerals & Metals Services President Andrew Berryman

* New operating structure is DRAFT, pending authority approvals and completion of the Jacobs ECR acquisition

Half year results 2019

Half Year Results 2019

Tom Honan, CFO

15

Half year results 2019 16

Statutory statement of financial performance

31 December 2018 ($m) 31 December 2017 ($m) REVENUE AND OTHER INCOME Professional services revenue 1,943.4 1,913.4 Procurement revenue 318.6 204.2 Construction and fabrication revenue 371.0 286.6 Interest income 10.5 2.8 Other income 2.2 2.4 Total revenue and other income 2,645.7 2,409.4 EXPENSES Professional services costs (1,787.7) (1,769.4) Procurement costs (309.9) (201.1) Construction and fabrication costs (334.2) (263.3) Global support costs (57.5) (58.0) Acquisition costs (12.2) (5.9) Other costs (4.9) (5.5) Borrowing costs (27.7) (32.3) Total expenses (2,534.1) (2,335.5) Share of net profit of associates accounted for using the equity method 5.1 5.9 Income tax expense (29.3) (70.6) Profit after income tax expense 87.4 9.2 PROFIT AFTER INCOME TAX ATTRIBUTABLE TO MEMBERS OF WORLEYPARSONS LTD 82.4 1.4 EARNINGS BEFORE INTEREST AND TAX 133.9 109.3

Half year results 2019

• 1. Reduction in revenue following lower than expected arbitration award in relation to a dispute with a state owned enterprise.
• 2. Relates to a revaluation of the value of WorleyParsons’ deferred tax assets and liabilities arising from the reduction in the US corporate tax rate from 35% to 21%.
• 3. The underlying NPAT result excludes the impact of acquisitions (acquisition costs, bridging facility fee, interest income and foreign exchange gain on term deposits), impact of the arbitration award, restructuring

costs, onerous lease contracts, and the related tax effect, as well as the impact of changes in US tax legislation on tax expense.

17

Reconciliation of statutory to underlying NPAT result

Adjusted for non-trading items

HY2019($m) HY2018($m) Statutory result 82.4 1.4 Add: impact of acquisitions, comprised of: Acquisition costs 12.2 5.9 Bridging facility fee 4.2

• Interest on term deposits

(7.5)

• FX gain on term deposits

(3.4)

• Add: Impact of the arbitration award 1

8.7

• Add: Restructuring costs

0.7 5.5 Add: Onerous lease contracts

• 12.2

Sub-total additions and subtractions 14.9 23.6 Tax effect of Additions and Subtractions 1.1 (5.0) Additions (post-tax) Tax from changes in US tax legislation2

• 58.2

Underlying Net Profit After Tax 3 98.4 78.2

Half year results 2019

▪ Statutory and aggregated revenue increased due to professional services revenue in UKIS and construction revenue ▪ Improved underlying EBIT and NPAT and associated margins ▪ Cash flow down $23.3m

18

HY2019 key financials

• 1. Basic earnings per share for all presented periods were adjusted for equity raised in accordance with the

accounting standards.

• 2. Refer to slide 56 of the Supplementary slides for the definition of Aggregated revenue.
• 3. The underlying EBIT result excludes impact of acquisitions (acquisition costs, bridging facility costs, foreign

exchange gain on term deposits), impact of the arbitration award, restructuring costs and onerous lease contracts. The underlying NPAT result excludes these items and the related tax effect, and also interest income on term deposits and the impact on tax expense from changes in US tax legislation.

Statutory result HY2019 HY2018

• vs. HY2018

Total revenue ($m) 2,645.7 2,409.4 9.8% EBIT ($m) 133.9 109.3 22.5% Net Profit After Tax ($m) 82.4 1.4 n/m Basic EPS (cps)1 23.8 0.5 n/m Interim dividend (cps) 12.5 10.0 25.0% Operating cash flow 21.0 44.3 (52.6%) Underlying result HY2019 HY2018

• vs. HY2018

Aggregated revenue2 ($m) 2,566.2 2,310.1 11.1% Underlying EBIT3 ($m) 156.3 132.9 17.6% Underlying EBIT margin % 6.1% 5.8% 0.3pp Underlying Net Profit After Tax3 ($m) 98.4 78.2 25.8% Underlying NPAT margin % 3.8% 3.4% 0.4pp Underlying basic EPS (cps)1 28.5 27.8 2.5% Underlying operating cash flow 24.5 70.0 (65.0%)

Half year results 2019

▪ Growth in Major Projects and Integrated Solutions (MP&IS) due to a strong performance in Norway and a full period of UK IS ▪ Increase in Services revenue driven by Canada, UAE / Qatar, and South East Asia offset by decreases in Australia West, US East, and UK ▪ Increase in Advisian result due to improvement in margins in IntecSea

• 1. Segment result is underlying EBIT pre Group corporate costs

19

Segment result

By business line

H1 2019 H1 2018

• vs. H1 2018

Aggregated Revenue ($m) 2,566.2 2,310.1 11.1% Services 1,273.2 1,215.8 4.7% Major Projects and Integrated Solutions (MP&IS) 1,026.9 828.0 24.0% Advisian 266.1 266.3 (0.1%) Segment results ($m) 226.3 201.1 12.5% Services 112.6 114.4 (1.6%) Major Projects and Integrated Solutions (MP&IS) 97.8 75.0 30.4% Advisian 15.9 11.7 35.9% Segment results (%) 8.8% 8.7% 0.1 pp Services 8.8% 9.4% (0.6 pp) Major Projects and Integrated Solutions (MP&IS) 9.5% 9.1% 0.4 pp Advisian 6.0% 4.4% 1.6 pp

Half year results 2019

Headcount growing: staff utilization on target

▪ Headcount up 3.2% to 26,910 in the period to Jan 2019 ▪ Broad global growth in Services, partially offset by seasonal declines in North Sea projects ▪ Staff utilization remains on target ▪ Maintained presence in 42 countries

20 Headcount

July 14 Jan 15 July 15 Jan 16 July 16 Jan 17

Growth in global headcount

78% 80% 82% 84% 86% 88% 90% Apr-15 Jul-15 Oct-15Jan-16Apr-16 Jul-16 Oct-16Jan-17Apr-17 Jul-17 Oct-17Jan-18Apr-18 Jul-18 Oct-18Jan-19

Utilisation %

Staff Utilization

Target Monthly rate

Apr-15 Sep-15 Feb-16 Jul-16 Dec-16 May-17 Oct-17 Mar-18 Aug-18 Jan-19

Growth in global headcount

Total Headcount Change from Prior Month

Half year results 2019 21

Key operating indicators

Operating Leverage

Operating Leverage

Revenue ($) Overheads ($)

HY17 FY17 HY18 FY18 HY19

Revenue Overhead

▪ Cost out program is proving sustainable with revenue growth ▪ Margins increasing (vs PCP) ▪ Business continues to be focused on achieving operating leverage with programs institutionalised:

▪ Realize our future program continuing, to address revenue growth, gross margin and cost control ▪ Sustaining Performance management embedded at the performance unit level

4.0% 4.5% 5.0% 5.5% 6.0% 6.5% 7.0% FY15 HY16 FY16 HY17 FY17 HY18 FY18 HY19

EBIT Margin %

2.0% 3.0% 4.0% FY15 HY16 FY16 HY17 FY17 HY18 FY18 HY19

NPAT Margin %

Half year results 2019

Half Year Results 2019

Capital management

22

Half year results 2019 23

Cash flow, net debt and balance sheet

Continuing focus

400 600 800 1,000 HY16 FY16 HY17 FY17 HY18 FY18 HY19 m$

Net Debt* *Net debt, gearing ratio and covenant leverage ratio are calculated on the debt covenant definition and exclude the impact of proceeds from capital raising.

10% 15% 20% 25% 30% 35% HY16 FY16 HY17 FY17 HY18 FY18 HY19

Gearing Ratio* %

Gearing ratio = net debt/net debt + equity

0.5 1.0 1.5 2.0 2.5 3.0 3.5 HY16 FY16 HY17 FY17 HY18 FY18 HY19

*

• 100

100 200 300 HY16 FY16 HY17 FY17 HY18 FY18 HY19

Free Cash Flow

Half year results 2019 24

Gearing metrics

Balance sheet metrics

▪ Gearing at low end of target band of 25-35% ▪ Statutory balance sheet impacted by proceeds of capital raising to fund completion of Jacobs ECR transaction ▪ Average maturity of debt increased to 4.2 years with new debt facility established in February 2019 ▪ One SOE moved to non-current receivables following trigger of formal dispute resolution mechanism

• 1. Net debt to net debt + equity (statutury definition)
• 2. Net debt to net debt + equity (excluding the impact of equity raise)
• 3. Loans, finance lease and overdrafts
• 4. Available facilities plus cash
• 5. As defined for debt covenant calculations

HY2019 FY2018 Gearing ratio1 % (71.0%) 23.0% Gearing ratio2 % 25.7% 23.0% Facility utilization3 % 27.6% 60.1% Average cost of debt % 4.5% 4.5% Total liquidity4 4,422 951 Total liquidity, excluding impact of proceeds from capital raising 4 2,060 951 Average maturity (years) 2.2 2.6 Interest cover (times)5 % 6.2x 5.8x Statutory net debt, $m (2,122) 663 Net debt excluding the impact of proceeds from capital raising, $m 784 663 Net Debt/EBITDA (times)5 Net cash 1.9x Net Debt/EBITDA (times), excluding the impact of proceeds from capital raising 2.1x 1.9x

Half year results 2019 25

Liquidity

Core facility refinanced

▪

The refinance has been completed with improved terms compared to the previous facility agreement

▪

The Syndicated Facility Agreement (“SFA”) provides a foundation to deliver strategy through

▪

Refinancing the syndicated bank debt facility which was due to mature in December 2020

▪

Replacing the bridge facility and completing the funding package to purchase Jacobs ECR

▪

Improving and resetting financial covenant headroom

▪

Extending debt maturity to 2024

▪

The new facility enables WorleyParsons to comfortably meet funding requirements over the 5 year period and includes a covenant package which compares favourably with previous arrangements

▪

Wells Fargo Bank, HSBC Bank and Standard Chartered Bank acted as Joint Lead Arrangers for the transaction

Half year results 2019 26

Liquidity

Core facility refinanced

▪ Core debt facility refinanced during FY19. New facility consists of USD500 million multi-currency revolving facility and USD800 million term loans maturing in February 2024 ▪ The refinance was over subscribed and includes a mix of existing and new banks ▪ Replaces the bridge loan announced in October 2018 ▪ Maintained strong liquidity position and weighted average tenor increases from 2.2 years to 4.2 years

• 200

400 600 800 1,000 1,200 1,400 1,600 1,800

FY19 FY20 FY21 FY22 FY23 FY24 USPP Overdraft SFA RCF SFA TLA Bilateral

Half year results 2019

Jacobs ECR – Acquisition Update

Chris Ashton, COO

27

Half year results 2019 28

The acquisition of Jacobs ECR drives our growth plan across all three horizons

▪ Our clear focus is to merge the operations of the two companies, deliver our strategy and achieve the cost, margin and revenue synergies

Half year results 2019

Delivering significant benefits to WorleyParsons’ shareholders

Generates material EPS accretion and returns for shareholders

1

Creates a pre-eminent global provider of professional project and asset services in resources and energy

2

Provides global sector leadership across Hydrocarbons, Chemicals and Minerals & Metals

3

Delivers enhanced earnings diversification and resilience

4

Brings significant value upside through cost and revenue synergies

5

29

In combining two complementary organisations, the transaction:

Half year results 2019 30

Global sector leadership across Hydrocarbons, Chemicals and Minerals & Metals

Jacobs ECR #9 #8 #7 #6 #5 #4 WorleyParsons #2 MergeCo #10 WorleyParsons #8 #7 #6 #5 #4 Jacobs ECR #2 MergeCo

30 ENR Hydrocarbons global design rankings1 (upstream only) ENR Chemicals global design rankings1 (includes Petrochemicals & Refining) ENR Metals & Mining sector global design rankings1

#10 WorleyParsons Jacobs ECR #7 #6 #5 #4 #3 MergeCo #1

Notes: 1. ENR Global Sourcebook 2018. Design firms (excluding construction) ranked by revenue estimate (international and domestic); adjustments applied to consider Global revenue by sector where only International revenue was provided; Hydrocarbons excludes downstream petrochemicals & refining revenue; Chemicals includes chemicals (non petroleum), petrochemicals & refining revenue.

Half year results 2019 31

Jacobs ECR acquisition progress - Summary

Synergy Realization Regulatory approvals Separation readiness Transition planning

Activities Progress Achievements

• US, Canada, EU received
• Pending RSA competition approvals and CFIUS
• Jacobs working towards meeting their commitments for

separation readiness prior to closing

• Joint transition team - all tools and processes fully
• perational
• key deliverables ahead of day 1 close all on track
• Cost synergies validated
• Implementation planning underway and on track

Culture & People

• New operating model and selection of key leadership well

advanced

Cost Margin and revenue

• Margin and revenue synergies validated
• Implementation planning underway and on track

ECR performance

• Jacobs ECR has delivered solid Q4CY18 operating

performance including increased earnings and sales

Half year results 2019 ng key s d .

Transformation Transition Separation

The transition journey to a new company

32

2018 2019 2020

Day 1

Half year results 2019

IT ▪ License scale discount, management and support rationalization, infrastructure rationalization, vendor support rationalization ▪ Consolidation of functional overhead Property ▪ Relocate employees to underutilised offices and higher density greenfield offices, and sub-lease excess space G&A ▪ Functional overhead consolidation – management, admin and support functions Indirect Procurement ▪ Leverage scale on 3rd party support services Cost synergy Implementation costs ▪ One-off implementation costs of approximately A$160m ▪ Primarily incurred within the first 12 months following completion

33

$130m cost synergies expected to deliver benefits within 2 years

IT Property G&A Indirect procurement Total cost synergies Estimated A$130m p.a. cost synergies within 2 years

Cost synergies

Significant value upside through cost synergies

Half year results 2019

Example Revenue Synergy opportunities

34

Complete offshore

• ffering in the Gulf
• f Mexico

Onshore upstream in Alaska Untapping the UCOG market in the Permian Full delivery and

• perations service
• ffering in Oman

+

Bringing together Jacobs ECR specialist offerings including floating topsides and construction capability with WorleyParsons capabilities in subsea and hook-up and commissioning capability to bring a complete offshore delivery offering in the Gulf of Mexico Connecting Jacobs ECR comprehensive operations EPC and modularisation delivery capability with WorleyParsons local EPCM capability and Arctic project experience to deliver a service offering capable of delivering projects to the Alaskan market Utilising both companies long term in country presence and joining the in-country EPCM large project delivery capability of Jacobs ECR with WorleyParsons Engineering & maintenance, modifications and operations track record to provide a full service offering to upstream, midstream and downstream customers in Oman Combining the world class industrial water capability of Jacobs ECR with WorleyParsons heritage in delivering large diameter pipelines and deep resource infrastructure capabilities to provide a unique delivery solution to the shale gas market in the Permian basin

Hydrocarbons (upstream and midstream)

Revenue Synergies

Half year results 2019 35

Downstream and Chemicals

Full project delivery offering in Asia and Middle East China + India execution powerhouse Full brownfield service offering World scale Advisory solutions

+

Combining the extensive front-end and FEED capability of Jacobs ECR with WorleyParsons world class PMC capability to service proposed large scale integrated refining and petrochemicals projects in Asia and the Middle East from project conception to delivery Joining Jacobs ECR market leading downstream capability in India with WorleyParsons China Specialty Chemicals Global Centre of Excellence to create an unrivalled execution solution scale and capability across the entire downstream market Combining Jacobs ECR comprehensive technical consulting service offering with WorleyParsons Advisian diverse advisory offering as well as both organisations digital capabilities to provide a market leading front end concept and advisory service Leveraging Jacobs ECR direct hire EPC project delivery capability and WorleyParsons strong track record in servicing the brownfields market to provide an flexible delivery solution on site. Immediate focus areas include the United States Gulf Coast

Revenue Synergies

Example Revenue Synergy opportunities

Half year results 2019 36

Mining, Minerals and Metals

Revenue Synergies

Complete deep underground mining offering Full brownfields and sustaining capital service

• ffering

Downstream Smelting and refining in the Americas Delivery across the entire lithium value chain

+

Combining Jacobs ECR’s strong capability in underground material handling and mineral processing with WorleyParsons comprehensive experience in mine planning and mine development as well as specialist shaft sinking capability to form a complete global mine life extension offering (key markets include gold and copper) Building on Jacobs ECR’s strong relationships with global miners across multiple commodities and combining that with WorleyParsons MMO and brownfield processes and capability to target key sustaining capital markets Leveraging Jacobs ECR strong mining presence in the Americas and their significant minerals processing expertise with WorleyParsons global smelting and refining capability and strong local front-end capability to service operations across both North and South America Joining Jacobs ECR’s world class downstream capability including the Chemetics offering with WorleyParsons extensive track record in delivering front-end Lithium studies and modelling capability to service the entire value chain in a growing lithium market (key regional focus will be the Americas)

Example Revenue Synergy opportunities

Half year results 2019

Sector Update

37

Half year results 2019 38

Global Energy Transition

Electrification to accelerate

• 600
• 300

300 600 900 1200 1500

Advanced economies Developing economies Advanced economies Developing economies Advanced economies Developing economies

Renewables & nuclear Gas Oil

Renewables Nuclear Other Power Industry Cars

Petro- chemical

Other Mtoe Source: IEA, World Energy Outlook 2018

▪ Energy mix transformation continues to accelerate towards electrification ▪ Global power demand to rise 60% ▪ Renewables (primarily solar and wind) and gas the growth energy sources ▪ Oil consumption continues to increase Change in global energy demand, 2017-2040

Half year results 2019

Despite the volatility in the market due to geopolitical uncertainties, customer earnings and spending continue to grow

▪ Upstream: Investments are predicted to grow ~10% in FY20 on the back of emerging supply gap ▪ Natural Gas: Economic & environmental drivers boost transition to gas, 2019 a record year for LNG ▪ IMO 2020: requires a shift in refining industry ▪ Shale Revolution: Growth in Permian, continued production growth ▪ Digital Transformation: Improved operational efficiency for a more sustainable market

39

Hydrocarbons

Improving Market Outlook

Number of project approvals by year

Source: Rystad Energy, Upstream Trends Report, Dec 2018 (23%) 4% 8% 4% 5% (30%) (20%) (10%) 0% 10% 2016 2017 2018 2019 2020

Select Oil & Gas majors – global capex YoY growth (%)

Source: FactSet as at 1 February 2019. - Broker consensus capex estimates for Anadarko Petroleum, BP, Canadian Natural Resources, Chevron, China Petroleum & Chemical, CNOOC, ConocoPhillips, Devon Energy, Eni, EOG Resources, ExxonMobil, Gazprom, Occidental Petroleum, Oil & Natural Gas Corp, PetroChina, Repsol, Rosneft, Royal Dutch Shell, Statoil, Suncor Energy, Surgutneftegas and Total.

50 100 150 200 250 300 350 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Offshore Onshore (ex shale)

Half year results 2019

Chemicals & Downstream - earnings diversification and resilience

40 Global chemicals capital expenditure

Source: Oxford Economics (2018)

A step change in exposure to the stable and expanding chemicals and downstream markets

▪ Chemicals capital expenditure displays limited cyclicality: The industry is underpinned by continued demand growth for manufactured end-user products ▪ Supported by global unstoppable trends: ▪ population growth ▪ increasing urbanization ▪ globalization ▪ food security

39% 20% 23% 7% 11% 62% 13% 6% 4% 15%

MergeCo pro forma WorleyParsons pre-acquisition

FY18 revenue Upstream Downstream Chemicals M&M Infrastructure

2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

Source: IHS (July 2018)

Global refining capital expenditure

$- $-

Half year results 2019

▪ Recent increase in large project FIDs ▪ Iron ore: new Australian mines to replace declining production from existing facilities ▪ Copper: structural supply deficit emerging from 2020 ▪ Phosphates: MENA focus ▪ Gold: increased activity and market consolidation

Source: Platts; Worldsteel; BHP Analysis. (Emerging Asia includes India, ASEAN and other south Asian countries.), WorleyParsons

Minerals & Metals

Return to investment

Global copper market balance (Kt) Global steel demand growth

Surplus Deficit

Source: Newmont, Investor Presentation, May 2018

41

$- $10 $20 $30 $40 $50 $60 2017 2018 2019

Billions ($AUD)

Global Mining capital expenditure

top 15 global miners (by market capitalization)

Half year results 2019

Outlook

Andrew Wood, CEO

42

Half year results 2019

▪ Revenue* up 11.1%, EBIT* up 17.6%, NPAT* up 25.8% ▪ Operating leverage continues ▪ Backlog increased ▪ Increase in pace of ASX announced awards has continued into FY2019 ▪ Integration of UK IS acquisition exceeding expectations ▪ On track for expected completion of Jacobs ECR acquisition in late March/April ▪ Completed $2.9b capital raising ▪ Refinanced core debt facility ▪ Business well positioned to capture future market upside as industry leader in Hydrocarbons, Chemicals and Minerals & Metals

* Underlying results 43

Concluding remarks

Progress in HY2019

Half year results 2019 ✓ 2019 Chemicals capex continuing long term growth trend ✓ 2019 Hydrocarbons capex >35% below 2013 peaks … and below longer term market low point ✓ 2019 Minerals & Metals capex >50% below 2013 peaks … and below longer term market low point 44

Notes: 1. Average broker consensus capex estimates for Anadarko Petroleum, BP, Canadian Natural Resources, Chevron, China Petroleum & Chemical, CNOOC, ConocoPhillips, Devon Energy, Eni, EOG Resources, ExxonMobil, Gazprom, Occidental Petroleum, Oil & Natural Gas Corp, PetroChina, Repsol, Rosneft, Royal Dutch Shell, Statoil, Suncor Energy, Surgutneftegas and Total 2. Average broker consensus capex estimates for ALROSA, Anglo American, BHP Billiton, Fortescue Metals, Freeport-McMoRan, Fresnillo, Glencore, Norilsk Nickel, Norsk Hydro, Rio Tinto, South32, Southern Copper Corporation and Vale

Chemicals annual global capex Minerals & Metals annual global capex2 Highlights Hydrocarbons annual global capex1

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Source: Factset (2019) Source: Factset (2019) Source: Oxford Economics (2018)

Jacobs ECR delivers enhanced earnings diversification and resilience

… with all sectors indicating medium term growth

$- $- $-

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Half year results 2019

Driven by continued improvement in market conditions, our resources and energy customers are increasing early phase activity for the next cycle of investment. This is reflected in the recent level of contract awards and our growing backlog. By maintaining our focus and growing our position in the resources and energy markets we expect to deliver improved earnings in FY2019, before including the contribution of the Jacobs ECR acquisition. Our focus on costs will continue so that operating leverage is delivered as the business grows. We expect to continue to improve

• ur balance sheet metrics in FY2019 (excluding the impact of the

capital raising). We expect earnings to be weighted to the second half, before including the contribution of the Jacobs ECR acquisition. Completion of the acquisition is currently planned for late March/April this year.

45

Group outlook

Half year results 2019

Half Year Results 2019

Q&A

46

Half year results 2019

Half Year Results 2019

Supplementary information

47

Half year results 2019

▪ Revenue growth in APAC supported by

NZ, SEA and China, offset by Australia

• West. The Operational EBIT decrease is

driven by Australia West offset with improvements in South East Asia. ▪ Increase in EMEA due to growth in Norway, a full period of UK IS, and strong performances in the UAE & Qatar, Saudi Arabia, Bulgaria and Central Asia offset by decreases in UK, Oman and Kuwait. ▪ AM decreases due to Cord project completions FY18 and US East, offset by increases in Canada West, US West and Latin America.

48

Segment result

By region By region

H1 2019 H1 2018

• vs. H1 2018

Aggregated Revenue ($m) 2,566.2 2,310.1 11.1% APAC 584.3 558.7 4.6% EMEA 1,192.9 938.4 27.1% AM 789.0 813.0 (3.0%) Operational EBIT ($m) 226.3 201.1 12.5% APAC 47.6 49.6 (4.0%) EMEA 117.7 78.9 49.2% AM 61.0 72.6 (16.0%) Operational EBIT (%) 8.8% 8.7% 0.1 pp APAC 8.1% 8.9% (0.8 pp) EMEA 9.9% 8.4% 1.5 pp AM 7.7% 8.9% (1.2 pp)

Half year results 2019

▪ Hydrocarbons revenue increase from UK IS, Norway, and Canada West partially offset by lower revenues in the US, Cord and parts of the Middle East ▪ M&M revenue growth from Major Projects in Australia ▪ Chemicals growth due to EPC projects in China and growth from the recently acquired business in Germany ▪ Infrastructure revenue and EBIT lower due to a reduction in power revenues in the US and Saudi Arabia

¹ Professional Services includes procurement revenue at margin and other income

49

Segment result

By sector

H1 2019 H1 2018

• vs. H1 2018

Aggregated Revenue ($m) 2,566.2 2,310.1 11.1% Hydrocarbons 1,949.7 1,725.7 13.0% Professional Services ¹ 1,578.7 1,439.1 9.7% Construction & Fabrication 371.0 286.6 29.4% Minerals, Metals & Chemicals 265.3 214.1 23.9% Infrastructure 351.2 370.3 (5.2%) Operational EBIT ($m) 226.3 201.1 12.5% Hydrocarbons 183.6 158.0 16.2% Professional Services 146.8 132.7 10.6% Construction & Fabrication 36.8 25.3 45.5% Minerals, Metals & Chemicals 18.9 16.3 16.0% Infrastructure 23.8 26.8 (11.2%) Operational EBIT (%) 8.8% 8.7% 0.1 pp Hydrocarbons 9.4% 9.2% 0.2 pp Professional Services 9.3% 9.2% 0.1 pp Construction & Fabrication 9.9% 8.8% 1.1 pp Minerals, Metals & Chemicals 7.1% 7.6% (0.5 pp) Infrastructure 6.8% 7.2% (0.4 pp)

Half year results 2019 50

Global operations and employee numbers

115

• ffices

42

countries

26,910

people

Half year results 2019 1.3 2.4 2.9 51

Backlog increased

0.6 1.1 4.9

Backlog by region

as at 31 December 2018

Backlog by sector

as at 31 December 2018 Australia, Pacific, Asia, China (APAC) Americas (AM) Europe, Middle East, Africa (EMEA) Minerals, Metals & Chemicals Infrastructure Hydrocarbons

Half year results 2019 52

Backlog increased

6.4 6.6 0.4 0.1 0.7

• 1.0

2.0 3.0 4.0 5.0 6.0 7.0 8.0

A$'B

6.4 6.6 0.1 0.2 0.1

• 1.0

2.0 3.0 4.0 5.0 6.0 7.0

A$'B

Backlog by region

as at 31 December 2018

Backlog by sector

as at 31 December 2018

Half year results 2019 53

Underlying earnings profile

180.8 150.2 117.9 132.9 156.3 237.2 152.5 139.9 165.9 418.0 302.7 257.8 298.8 FY2015 FY2016 FY2017 FY2018 FY2019

Group Underlying EBIT $m

H2 H1 104.3 73.9 57.1 78.2 98.4 138.8 79.2 66.1 93.2 243.1 153.1 123.2 171.4 FY2015 FY2016 FY2017 FY2018 FY2019

Group Underlying NPAT $m

H2 H1

Half year results 2019 54

Margin profile

5.0% 4.8% 5.4% 5.8% 6.1% 6.5% 5.8% 6.3% 6.8% 5.8% 5.3% 5.9% 6.3% FY2015 FY2016 (Restated) FY2017 FY2018 FY2019

Operational Underlying EBIT %

H1 H2 Total 2.9% 2.4% 2.6% 3.4% 3.8% 3.8% 3.0% 3.0% 3.8% 3.4% 2.7% 2.8% 3.6% FY2015 FY2016 (Restated) FY2017 FY2018 FY2019

Operational Underlying NPAT %

H1 H2 Total

Half year results 2019 55

Revenue split

ANZ, 17% Asia, 6% USA & LAM, 15% Canada, 16% Europe, 29% Middle East & Africa, 16%

Contribution to aggregated revenue (%)

76% 10% 14%

Sector aggregated revenue (%)

Hydrocarbons Minerals, Metals & Chemicals Infrastructure

Half year results 2019

1- Reduction in revenue following lower than expected arbitration award in relation to a dispute with a state owned enterprise. *Aggregated revenue is defined as statutory revenue and other income plus share of revenue from associates, less procurement revenue at nil margin, pass-through revenue at nil-margin and interest income and the impact of the arbitration award. The Directors of WorleyParsons Limited believe the disclosure of the share of revenue from associates provides additional information in relation to the financial performance of WorleyParsons Limited Group.

56

Revenue reconciliation

HY2019 ($m) HY2018($m) vs HY2018 Revenue and other income 2,645.7 2,409.4 9.8% Plus: Impact of the arbitration award1 8.7

• n/m

Less: Procurement revenue at nil margin (136.9) (43.7) 213.3% Less: Pass through revenue at nil margin (36.9) (138.8) (73.4%) Plus: Share of revenue from associates 96.1 86.0 11.7% Less: Interest income (10.5) (2.8) 275.0% Less: Net gain on revaluation of investments previously accounted for as joint operations

• #DIV/0!

Aggregated revenue* 2,566.2 2,310.1 11.1% Professional services 2,011.3 1,860.6 8.1% Construction and fabrication 371.0 286.6 29.4% Procurement revenue at margin 181.7 160.5 13.2% Other income 2.2 2.4 (8.3%)

Half year results 2019

1- Reduction in revenue following lower than expected arbitration award in relation to a dispute with a state owned enterprise. * The underlying EBIT result excludes the impact of acquisitions (acquisition costs, bridging facility costs and FX on term deposits), impact of the arbitration award, restructuring costs and onerous lease contracts.

57

EBIT reconciliation

HY2019 ($m) HY2018 ($m) EBIT 133.9 109.3 Add: impact of acquisitions, comprised of: Acquisition costs 12.2 5.9 Bridging facility fee 4.2

• FX gain on term deposit

(3.4)

• Add: impact of the arbitration award1

8.7 Add: restructuring costs 0.7 5.5 Add: onerous lease contracts

• 12.2

Underlying EBIT* 156.3 132.9

Half year results 2019 58

Cash flow

HY2019 ($m) HY2018 ($m) EBIT 133.9 109.3 Add: Depreciation, amortization 31.8 36.6 Less: Interest and tax paid (23.9) (40.2) Less: Working capital/other (120.8) (61.4) Net cash inflow from operating activities 21.0 44.3 Non-recurring costs paid less interest income received 3.5 25.7 Underlying operating cash flow 24.5 70.0 Net procurement cash outflow (3.5) 14.4 Underlying operating cash flow net of procurement cash flows 21.0 84.4

▪ Excludes impact of proceeds from capital raising

Half year results 2019 59

Liquidity and debt maturity

Notes: 1 – Loan, finance lease and overdraft facilities (inclusive of the bridge facility) as at 31 December 2018.* 2 – Facilities utilized assume to exclude the impact of funds received from equity raise. 3 – Cash as at 31 December 2018 excluding cash funds from equity raise. 4 - Loan, finance lease and overdraft facilities include the limits for the new Syndicated facility completed in February 2019 that replaces the Bridging facility that was in place as at 31 December 2018. The balance is a looking forward estimate is based on the exchange rates as at 31 December 2018. 5 – Facilities utilized assume the proforma debt after completion of Jacobs ECR. The amount is a looking forward estimate and is based on the exchange rates as at 31 December 2018.

Liquidity Summary $m HY2019 FY2018 Change Liquidity (excluding impact of equity raise in HY2019) Loan, finance lease & overdraft facilities1 2,373 1,677 41.5% Less: facilities utilized2 (1,178) (1,008) 16.9% Available facilities 1,195 669 78.6% Plus: cash3 343 282 21.6% Total liquidity 1,538 951 61.7% Proforma liquidity after the Jacobs ECR deal completion Loan, finance lease & overdraft facilities4 2,596 1,677 54.8% Less: facilities utilized5 (1,788) (1,008) 77.4% Available facilities 808 669 20.8% Plus: cash3 343 282 21.6% Total liquidity 1,151 951 21.0% Bonding Bonding facilities 1,202 1,221 (1.6%) Bonding facility utilization, % 42% 43% (1pp)

Half year results 2019 60

Foreign exchange translation impact

Currency AUD $m NPAT translation impact of 1c ∆ AUD:USD (0.61) AUD:GBP 0.18 AUD:CAD 0.32 Currency Average exchange rate movement Spot exchange rate movement BRL 12.7% (4.3%) CAD (3.4%) (1.8%) CNY (4.1%) (1.1%) EUR (5.2%) (3.6%) GBP (5.6%) (1.3%) NOK (3.8%) 2.4% SGD (6.1%) 4.3% USD (7.1%) (4.5%) KZT 1.1% 5.7% Currency HY2019 HY2018

change

AUD:USD 72.4 77.9 (7.1%) AUD:GBP 55.9 59.2 (5.6%) AUD:CAD 95.1 98.4 (3.4%)

Movement in major currencies against AUD (indexed)

80 85 90 95 100 105 110 115 AUDUSD AUDGBP AUDCAD

Half year results 2019 61

Foreign exchange

11 12 (8.3) 0.1 (0.8)

• 10
• 5

5 10 15 FY15 FY16 FY17 FY18 FY19

Group EBIT FX translation

0.9 0.2 0.2 0.3 0.6 (0.4) 0.7 0.1 0.2 0.7 (2.2) (0.1) 0.3 (3.2) 0.9

• 3.5
• 3.0
• 2.5
• 2.0
• 1.5
• 1.0
• 0.5

0.0 0.5 1.0 1.5 CAD CNY EUR GBP KWD KZT NOK NZD QAR US Pegged USD ZAR BGN TRY OTHER A $m

Impact total EBIT

Half year results 2019 62

Acronyms

ADNOC - Abu Dhabi National Oil Company APAC – Australia, Pacific, Asia, China AM – Americas ASX - Australian Securities Exchange CPS – Cents Per Share C02e - Carbon dioxide equivalent DSO – Day Sales Outstanding EBIT – Earnings Before Interest and Tax EBITDA – Earnings Before Interest and Tax, Depreciation and Amortization EMEA – Europe, Middle East and Africa EPC - Engineering, Procurement & Construction EPCIC – Engineering, Procurement, Construction, Installation & Commissioning EPFC - Engineering, Procurement, Fabrication & Construction EPS – Earnings Per Share FEED – Front end engineering and design FID – Final Investment Decision FX – Foreign Exchange FY – Financial Year HSE – Health Safety and Environment HY – Half Year IFRS - International Financial Reporting Standards IS – Integrated Solutions LNG – Liquefied Natural Gas MENA – Middle East & North Africa MP&IS – Major Projects and Integrated Solutions MMO – Maintenance, Modifications and Operations NPAT – Net Profit After Tax PMC - Project Management Consultant/Consultancy QGC – Queensland Gas Company TCFD - Task Force on Climate-related Financial Disclosures TRCFR - Total Recordable Case Frequency Rate UK IS – UK Integrated Solutions (formerly AFW UK) YASREF - Yanbu Aramco Sinopec Refining Company YoY – Year on Year