Worleyparsons : Presentation

Full Year Results 2019

Andrew Wood, CEO

Disclaimer

The information in this presentation about WorleyParsons Limited and its activities is current as at 21 August 2019 and should be read in conjunction with the Company's Appendix 4E and Annual Report for the full year ended 30 June 2019. It is in summary form and is not necessarily complete. The financial information contained in the Annual Report for the full year ended 30 June 2019 has been audited by the external auditors of WorleyParsons.

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. WorleyParsons Limited 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 reviewed by the external auditors of WorleyParsons. Non-IFRS financial information should not be considered as an indication of or alternative to an IFRS measure of profitability, financial performance or liquidity.

Full year results 2019	2

FY2019 summary

Our strategy is delivering

Improved financial performance

$6,439.1m

Aggregated revenue

+36% growth from FY18

$236.3m

Operating cash flow

vs $259.7m in FY18

$18b

36 Month Backlog

10% growthin 12 months*

$259.8m

Underlying NPATA

+43% growth from FY18

1.9x

Leverage

December 2018: 2.1x

ECR transition

on track

• Underlying revenue growth of 17% plus ECR contribution
• Improved NPATA margins

Balance sheet strengthened

• Leverage 1.9x, gearing 20.9%
• Cash flat (net of impact of acquisition)
• Refinanced syndicated debt facility

Backlog increased

• Proforma backlog increased 10%
• Diversification of earnings through increased opex revenue and chemicals revenue

ECR acquisition and integration on track

	Transition progressed to plan
	Cost, margin and revenue synergies being delivered
	Safety performance remains industry leading

Final dividend 15.0 cents per share



*on 30 June 2018 proforma backlog using Worley definition

Refer to pages 19 & 20 for the Statutory Statement of Financial Performance and Reconciliation of statutory to underlying NPATA result

Full year results 2019	3

Overview

FY2019 achievements

Financial results

Operating parameters

Operational highlights

• Underlying revenue growth, in addition to contribution from ECR acquisition
• EBITA and NPATA growth, with higher NPATA margin
• Strengthened balance sheet and refinanced core debt facilities
• Transition cost synergies and revenue synergies flowing
• Earnings diversification from increased opex and chemicals revenues
• Staff utilization remains on target
• Focus on operating leverage continues
• Increased backlog across all sectors
• Industry leading safety performance
• ECR acquisition completed
• Integration activities on track with cost, margin and revenue synergies being realised
• Moving from transition to transformation

Full year results 2019	4

Health Safety and Environment

Our safety performance

• Employee Total Recordable Case Frequency Rate (TRCFR*) for FY19 was0.11(FY18: 0.12)
• Employee, Contractor & Subcontractor and Partner TRCFR for FY19 was0.14(FY18: 0.15)

The Group's HSE Committee focus areas H1 FY20

• Implement Life Saving Rules
• Launch and embed a new Assurance system
• Continue our focus on field HSE
• Continue our progress with the recommendations of the Task Force onClimate-Related Financial Disclosures (TCFD)

*TRCFR - Total recordable case frequency rate based on the number of cases per 200,000 hours worked	5

Responsible business at Worley

We have always taken a responsible and sustainable approach to our business

This year we have:

• responsible business assessment requirements embedded into standard work processes
• continued to support our customers navigate the global energy transition (1,350+ new energy projects and counting)
• supported STEM education around the world via initiatives in our local offices
• further developed our engagement with indigenous communities around the world
• delivered community social impact with a network of champions and the Worley Foundation
• continued our ethics program with Code of Conduct training and development

50+

Active

Worley

Foundation projects

1,350+

New Energy projects globally

7thyear

reporting consistent with Global Reporting Initiative (GRI)

26%

Senior executives are women

40,000+

Code of Conduct training delivered to contractors, employees and partners

10thyear

participating in Carbon Disclosure Project

40%

Board members are women

51

Ethics helpline available to all our people in 42 countries

24%

Carbon emissions reductions (tonnes C02-e) since 2016

For more information on Worley's ESG activities, refer to our Corporate Responsibility report at

https://www.worley.com/investors/reports-and-presentations#2019

Full year results 2019	6

Aggregated revenue and underlying EBITA

Revenue and EBITA growth

			Half on half revenue									Half on half underlying EBITA
AUD'm						H1		H2					AUD'm					H1		H2
5,000.0											3,873			300.0												250
													250.0
4,000.0		3,107
												200.0			159	163				172		163
3,000.0		2,619								2,439	2,566						147
	2,166	2,211	2,310			150.0			128	141
2,000.0
													100.0
1,000.0
													50.0
0.0														0.0
		FY2016		FY2017		FY2018	FY2019					FY2016	FY2017			FY2018	FY2019

• Revenue and EBITA growth from underlying business in addition to ECR acquisition

Full year results 2019	7

Backlog growth

Backlog (AUD'b)*

	20.0		16.4	17.6			17.4	18.0
	18.0
	16.0
	14.0
			10.8
AUD'b	12.0		9.9			10.6
10.0
	8.0
	6.0
	4.0
		6.5	6.8			6.8
	2.0
	-
		Jun-18		Dec-18				Mar-19	Jun-19
					WorleyParsons		ECR		Worley

*proforma backlog using Worley definition for June 2018 to March 2019

• Backlog continues to grow with increasing contributions from both ECR and WorleyParsons.
• MPIS and MMM Services driving growth
• Backlog growth across all sectors
• Refer to slides 48 & 49 for sector and regional breakdown

Full year results 2019	8

Earnings diversification - growth in opex and chemicals

Business mix

100%
10%	10%	11%	9%
80%
					55%	43%
60%
75%	81%
40%
							48%
20%
15%			34%
0%	9%
	FY16		FY17	FY18	FY19 pro forma
			Opex		Modification, Sustaining and Small Capex			Major Capital Projects

FY18 revenue split by sector	FY19 revenue split by sector - proforma
9%	11%
13%

49%

40%

78%

• Deliberate strategy over last three years to increase earnings diversity and resilience with growth in opex based contracts
• Sector mix diversifying with growth of historically more stable chemicals exposure
• Our focus is not lump sum turnkey (LSTK) contracts

Energy	Chemicals	Resources		Energy	Chemicals	Resources

Full year results 2019	9

Long term asset contract wins in FY19

Americas

Shell,San Joaquin Valley Engineering Services

Dow,Electrical and Instrumentation Services

BP,Mad Dog 2 GoM Integration Services

BP,Wells and Fluids

BP,GOO Cat C EPC

BP,BP VMS

BP Chemicals,Texas City Chemicals Alliance

Chevron,San Joaquin Valley Engineering Services

ConocoPhillips,Winter Drilling 2018-2019

Corpus Christi Polymers, Triumph Project

LyondellBasell,Multi-site Small Cap Alliance

Phillips 66, MSA - EPC

UCSF,Power O&M Services Renewal

W.R. Grace,Big Cat Project

MMG Peru SAC,Las Bambas Master Services Agreement Antofagasta Minerals SA,AMSA MSA - Contrato Marco Centinela Compania Minera del Pacifico S.A.,CAPM MSA

ENAP REFINERIAS S.A., MSA Downstream ENAP

Anglo American Sur SA,MSA EP 3 years for Los Bronces FY20 Minera Escondida Limitada,SIB FY20 Framework Agreements DOW,MSA - Engineering Services

Livent, EPCM Services for Lithium Carbonate Program Shell,MSA - Engineering Services

Raizen,MSA - Engineering Services YPF,MSA - Engineering Services YPF,Engineering Services

CBA - Cia Brasileira de Aluminio, MSA - Engineering ServicesEquinor Brasil S.A., MSA - Engineering Services

SBM Offshore N.V.,MSA - Engineering Services

EMEA

CNOOC International, Buzzard Phase 2 - EPC

EnQuest,E&C Term Contract

Shell,SNS E&C Framework Agreement

Perenco,SNS - General Engineering Services

GSP Offshore,Gloria Jack-up Removal

GSP Offshore,Integrated Services Contract

ConocoPhillips, E&C

Repsol,AES Services Framework

BPTT,Beachfield Valve Upgrade Project

Deltatek Offshore,EDOP Tranche Phase 2

Sasol Group Technology, EC Partnership

BAPCO,Water O&M

Qatar Petrochemical Company, Provision of Engineering

Services

Total E&P Qatar, Al Khalij Block

North Oil Company,EPSCM Frame Agreement

Opex based contract wins

supporting backlog growth and

earnings resilience

APAC
Alcoa Inc,Engineering and Project delivery Services
BP,Kwinana Refinery Alliance
Woodside,Engineering and Procurement Services
BP New Zealand Oil Services Limited (NZOSL), Delivery Services
BHP,Minerals Australia Engineering Services Provision
Newcrest Lihir, EPCM Services
Tomago,Aluminium Alliance
Brunei LNG,Engineering Contract
Shell,Bukom Engineering and Project Services
Singapore LNG, Engineering, Consultancy & Site Supervision Services
Evonik, Engineering Services Agreement
SynergyCollie Power Station O&M
BHPYarnima Power Station O&M
SynergyAlbany Gracemere Windfarm O&M
Full year results 2019	10

Opex contracts refer to long term asset based contracts including sustaining capital contracts

Sector update

Full year results 2019	11

Energy: upstream & midstream

Upstream investment

Conventional oil and gas investment

Pick-up in approvals of new upstream projects

required to match demand

Billion boe 25

Offshore Onshore

20

15

10

Crude oil

Gas

5

0

2011 2012 2013 2014 2015 2016 2017 2018 NPS SDS

Annual avg. 2018-25

2011 2012 2013 2014 2015 2016 2017 2018 NPS SDS

Annual avg. 2018-25

Oil production with no new investment from 2018 vs estimated demand in NPS and SDS

150

mb/d

100

50

0
2010	2020	2030	2040

Source: International Energy Agency (IEA), World Energy Investment 2019

*3-year CAGR estimate to 2022 extracted from Rystad Energy, UCUBE (May,2019)

Conventional crude Tight oil

NGLs - Natural gas liquids EHOB - Extra-heavy oil & bitumen Other

NPS demand SDS demand

NPS = New Policies Scenario

SDS = Sustainable Development Scenario

Upstream investment to 2022 is estimated at

11% CAGR for gas and 4% CAGR for oil*

Midstream market is experiencing a sharp

increase in project sanctions aligned to our global

footprint

Growth opportunities across the value chain:

oil & gas production, processing, storage

& transport

greenfield LNG

floating storage & regasification

gas-fired power generation, transmission

& distribution

Full year results 2019	12

Energy: power and new energy

Renewables & electrification

• Investment trend towards low carbon power generation and delivery:
• • solar and wind
  • nuclear
  • hydro
  • power networks and storage
• Focus areas for growth
• • offshore wind (capex and opex)
  • distributed energy systems (including microgrids & storage)
  • emerging technologies - including hydrogen
  • power operations & maintenance

								Global investment in power by technology
																			Coal power
2018																			Gas power
																			Oil power
																			Nuclear
Annual																			Solar PV and wind
average
2025-30																			Hydro and other
(NPS)																			renewables
																			Grids and
Annual																			battery storage
average
2025-30
(SDS)
0		200	400	600	800	1000	1200	1400

USD billion (2018)

Source: International Energy Agency (IEA), World Energy Investment 2019

NPS = New Policies Scenario

SDS = Sustainable Development Scenario

Full year results 2019	13

Chemicals

Market opportunity & focus

Global chemicals industry capex mix (2019 to 2023)

Accessing key growth markets

Europe

China

• FDI market in China: Regulatory changes on foreign ownership stimulating investment into China

Leveraging core capability

			10%	52%
	23%
				2%
North		1%		12%	Rest of Asia
America

South America	Rest of world
& Caribbean
Source:IHS Markit (2019)

• Extensive delivery capability in India and China enabling execution in local market andlarge-scale global projects

Immediate revenue synergy opportunities

• China + India execution powerhouse
• Full project delivery offering in Asia and the Middle East
• Leverage extensivefront-end

capability

Full year results 2019	14

Resources: mining, minerals & metals

Market focus

Capex continues with strong market fundamentals across key commodities

• Focus is on life of mine extension and increased investment in underground mining
• Copper: structural supply deficit emerging in 2023
• Fertilizers: ongoing investment driven by global population growth and food shortage
• Iron ore: large sustaining capital investment, market tightens with recent supply disruptions and demand for higher grade ore

Mining, minerals and metals annual global capex

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

Source: Factset CAPEX Data (May, 2019)*

Global balance in refined copper market (t/year)

Surplus
								Deficit
2015	2016	2017	2018	2019	2020	2021	2022	2023

Source: CRU presentation, World Copper Conference (April, 2019)

Full year results 2019	15

Australia's largest energy & resource service provider

Currently involved in over $100 billion of energy & resource investment in Australia

Rio Tinto

Koodaideri iron ore

BHP

South Flank iron ore

Rio Tinto

Cape Lambert

Woodside

Northwest shelf assets

Onshore & offshore

Chevron

Gorgon & Wheatstone LNG

Barrow & Thevenard Island

Alcoa

Sustaining capital program

Synergy, AGL, Ratch, Palisade, BHP, Pacific Hydro, Mitsui Operations & maintenance of 36 power assets totalling 1/3rdof Australia's power generation fleet

Newmont Tanami gold mine

BHP

Olympic Dam

Queensland Gas Co.

QCLNG

Newcrest

Cadia gold mine

Viva Energy Geelong refinery

Esso

Longford facilities

• Australian company of global significance
• Largest exporter of high value services
• Key growth enabler for businesses & technologies
• Engineer of record and lead service provider for major energy and resource assets
• Operates a third of Australia's power generation fleet in addition to three major gas pipelines

Full year results 2019	16

Leader in the United States of America

Worley employs over 14,500 people in over 20 offices nationwide

Engineer of Record for more than		80construction &
15%of USA's nuclear fleet
	fabrication sites nationwide
totalling 17,000 MW

Lead contractor

for the largest alpha olefins facility in the world

#1in the United States, we are…

• Largest Australian employer in professional and asset services
• An industry leading contractor for skilled craft trades, with over 80 construction sites
• One of the largest energy and chemical project and asset services providers

…supported by trusted partnerships in industry, technology and innovation across the nation.

Full year results 2019	17

Full Year Results 2019

Tom Honan, CFO

Full year results 2019	18

Statutory statement of financial performance

	30 June 2019	30 June 2018
	($m)	($m)
REVENUE AND OTHER INCOME
Professional services revenue	4,531.1	3,837.3
Procurement revenue	1,020.4	432.3
Construction and fabrication revenue	1,328.6	552.5
Interest income	36.5	5.5
Other income	7.7	8.2
Total revenue and other income	6,924.3	4,835.8
EXPENSES

Professional services costs

Procurement costs

Construction and fabrication costs

Global support costs

Acquisition costs

Transition and other costs

Borrowing costs

Total expenses

Share of net profit of associates accounted for using the equity method

Income tax expense

Profit after income tax expense

PROFIT AFTER INCOME TAX ATTRIBUTABLE TO MEMBERS OF WORLEYPARSONS LTD

(4,156.5)	(3,530.7)
(992.0)	(417.3)
(1,215.6)	(497.4)
(154.2)	(110.7)
(50.6)	(5.9)
(48.8)	(14.2)
(71.7)	(63.9)
(6,689.4)	(4,640.1)
10.5	9.7
(81.4)	(129.7)
164.0	75.7
151.9	62.2

Full year results 2019	19

Reconciliation of statutory to underlying NPATA results

Adjusted for non-trading items

	FY2019($m)	FY2018($m)
Statutory result (NPAT)	151.9	62.2
Acquisition & related transition costs (See Note 1)	82.2	5.9
Impact of the arbitration award1	8.7	-
Other Restructuring costs	0.7	14.2
Onerous lease (non acquisition related)	-	12.2
Impairment of associate intangible assets	-	2.7
Sub-total additions and subtractions	91.6	35.0
Tax effect of Additions and Subtractions	(7.5)	(7.5)
Additions (post-tax)
Tax from changes in tax legislation2	3.4	81.7
Underlying Net Profit After Tax 3	239.4	171.4
Amortisation of intangibles	27.5	14.2
Tax on intangibles	(7.1)	(3.6)
Underlying NPATA 4	259.8	182.0

Note 1: Acquisition & Related Transition Costs	FY2019($m) FY2018($m)
Acquisition costs	50.6	5.9
Transition costs	35.0	-
Onerous lease contracts	8.9	-
Bridging facility fee	4.2	-
Interest on term deposits, net of capitalized costs write off	(27.4)	-
Foreign exchange gain on term deposits	(3.4)	-
US foreign tax credits write off due to ECR acquisition	14.3

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 Worley's deferred tax assets and liabilities arising from the reduction in the corporate tax rates in provincial Canada and the US.
3. The underlying NPAT result excludes the impact of acquisitions (acquisition and transition costs, bridging facility fee, interest income net of capitalized cost write off, foreign exchange gain on term deposits and US foreign tax credits write off due to the ECR acquisition), impact of the arbitration award, other restructuring costs, onerous lease contracts (non acquisition related), and the related tax effect, as well as the impact of changes in tax legislation on tax expense.

4. NPATA is defined as profit after tax excluding the post tax impact of amortization on intangible assets acquired through business combinations. Underlying NPATA is defined as underlying NPAT	Full year results 2019	20
excluding post tax impact of amortization of intangible assets acquired through business combinations.

FY2019 key financials

Statutory result	FY2019	FY2018	vs. FY2018
Total revenue ($m)	6,924.3	4,835.8	43.2%
EBITA ($m)	308.1	278.0	10.8%
NPATA ($m)	172.3	72.8	136.7%
Basic EPS (cps)1	36.4	22.6	61.1%
Final dividend (cps)	15.0	15.0	-
Total dividend (cps)	27.5	25.0	10.0%
Operating cash flow	236.3	259.7	(9.0%)
Underlying result	FY2019	FY2018	vs. FY2018
Aggregated revenue2($m)	6,439.1	4,749.2	35.6%
Underlying EBITA3($m)	412.8	313.0	31.9%
Underlying EBITA margin %	6.4%	6.6%	(0.2pp)
Underlying Net Profit After Tax and	259.8
Amortisation3($m)	182.0	42.7%
Underlying NPATA margin %	4.0%	3.8%	0.2pp
Underlying basic EPS (cps)4	62.2	66.2	(6.0%)
Underlying operating cash flow	255.1	293.7	(13.1%)

• Statutory and aggregated revenue increased due to the acquisition of ECR during the year and underlying performance.
• Improved underlying EBITA and NPATA
• Improved NPATA margins
• Operating cashflow flat (excluding items related to acquisition and transition activities)

1. Basic earnings per share for all presented periods were adjusted for equity raised in accordance with the accounting standards.
2. Refer to slide 53 of the Supplementary slides for the definition of Aggregated revenue.
3. The underlying EBITA result excludes impact of acquisitions (acquisition and transition costs, bridging facility costs, foreign exchange gain on term deposits), impact of the arbitration award, other restructuring costs and onerous lease contracts (non acquisition related) and amortization of intangible assets acquired through business combination. Refer to slide 18 for definition of NPATA.
4. Underlying basic EPS have been calculated on underlying NPATA basis

Full year results 2019	21

Segment result

By line of business

	FY 2019	FY 2018	vs. FY 2018
Aggregated Revenue ($m)	6,439.1	4,749.2	35.6%
Energy & Chemicals Services	2,854.2	2,218.7	28.6%
Mining, Minerals & Metals Services	286.2	151.7	88.7%
Major Projects and Integrated
Solutions (MP&IS)	2,745.0	1,866.6	47.1%
Advisian	553.7	512.2	8.1%
Segment results ($m)	576.5	426.1	35.3%
Energy & Chemicals Services	278.8	227.0	22.8%
Mining, Minerals & Metals Services	31.0	9.2	237.0%
Major Projects and Integrated
Solutions (MP&IS)	231.7	172.4	34.4%
Advisian	35.0	17.5	100.0%
Segment results (%) 1	9.0%	9.0%	0.0 pp
Energy & Chemicals Services	9.8%	10.2%	(0.4 pp)
Mining, Minerals & Metals Services	10.8%	6.1%	4.7 pp
Major Projects and Integrated
Solutions (MP&IS)	8.4%	9.2%	(0.8 pp)
Advisian	6.3%	3.4%	2.9 pp

• ECR driving growth in MPIS and MMM Services
• Margin improvement in MMM Services due to increased volumes and stronger project performance
• MPIS margin impacted by increased volumes of lower margin construction revenue in North America and increased procurement
• Margin improving in Advisian from a low base

1. Segment result is underlying EBITA pre Group corporate costs

Full year results 2019	22

Headcount growing: staff utilization on target

Worley Global Headcount

Acquisition

ECR

ECR

Staff Utilization

Headcount

Change to Prior Month

90%

Acquisition

UKIS

Acquisition

88%

%

86%

Utilisation

82%

84%

80%

Target

Monthly rate

Jul-16

Oct-16

Jan-17

Apr-17

Jul-17

Oct-17

Jan-18

Apr-18

Jul-18

Oct-18

Jan-19

Apr-19

Jul-19

78%

Jul-16

Oct-16

Jan-17

Apr-17

Jul-17

Oct-17

Jan-18

Apr-18

Jul-18

Oct-18

Jan-19

Apr-19

Jul-19

Worley Global Headcount

July 2019

15,100

Craft

Staff

43,000

• Staff utilization remains on target
• Maintained presence in 51 countries
• Headcount 58,100 at 31 July 2019
• Growth in headcount in underlying business 2,100 in FY2019

Full year results 2019	23

Key operating indicators

Margin growth

• Trend of margin growth continues with strong focus on cost control
• Increased volumes of lower margin construction work in North America, as per acquisition business model

7.0%		EBITA Margin %
6.0%
5.0%
4.0%
FY16	HY17	FY17	HY18	FY18	HY19	FY19

NPATA Margin %

5.0%
4.0%
3.0%
2.0%
1.0%
FY16	HY17	FY17	HY18	FY18	HY19	FY19

Full year results 2019	24

Key operating indicators

Operating leverage

	WorleyParsons- Operating Leverage				ECR- Operating Leverage
Revenue($)				Overheads($)	Revenue($)	Revenue	Overhead
	Revenue	Overhead
HY18	FY18	HY19	FY19		HY18	FY18	HY19	FY19

• Cost control is embedded in the cultures of both organizations that have created Worley
• Focus on achieving further margin growth with driver on gross margin / overhead ratio
• Business continues to be focused on achieving operating leverage with performance unit based programs from ECR and WorleyParsons being merged:
• • Realize our futureprogram continuing, to address gross margin optimisation and cost control
  • Sustaining Performancemanagement at the performance unit level

Overheads ($)

Full year results 2019	25

Full Year Results 2019

Capital management

Full year results 2019	26

Cash flow, net debt and balance sheet

Continuing focus

m$		Operating Cash Flow
300
200
100
0
FY16	HY17	FY17	HY18	FY18	HY19	FY19
-100

m$			Net Debt*
1,400
900
400
FY16	HY17	FY17	HY18	FY18	HY19	FY19

		Gearing Ratio* %
35%			UKIS
30%			Acquisition			ECR
					Acquisition
25%
20%	Gearing ratio = net debt/net debt + equity
15%
FY16	HY17	FY17	HY18	FY18	HY19	FY19

Leverage Ratio*

3.5			UKIS
3.0					ECR
		Acquisition
			Acquisition
2.5
2.0
1.5
1.0
0.5
FY16	HY17	FY17	HY18	FY18	HY19	FY19

$4.9 billion of acquisitions in last two years - with leverage and gearing improvement
27
*Net debt, gearing ratio and leverage ratio are calculated on the debt covenant definition. HY19 excludes the impact of proceeds from capital raising.	Full year results 2019

Gearing metrics

Balance sheet metrics

	FY2019	HY2019
Gearing ratio1	20.9%	25.7%
Facility utilization2	72.7%	27.6%
Average cost of debt	4.5%	4.5%
Total liquidity3	1,303	2,060
Average maturity (years)	3.3	2.2
Interest cover (times)4	11.9x	6.2x
Statutory net debt5, $m	1,593	784
Net Debt/EBITDA (times)4	1.9x	2.1x

• Gearing below target band of25-35%
• Average maturity of debt increased to 3.3 years with new debt facility established in February 2019
• As at 30 June 2019 three SOE receivables arenon-current following trigger of dispute resolution mechanisms
• Considerable efforts to collect SOE receivables across the period including one arbitration award and appeal (with costs) in favour of Worley

1. Net debt to net debt + equity (statutory definition). HY2019: Net debt to net debt + equity (excluding the impact of equity raise)
2. Loans, finance lease and overdrafts
3. Available facilities plus cash. HY2019: Available facilities plus cash excluding the impact of proceeds from capital raising
4. As defined for debt covenant calculations
5. HY2019: Net debt excluding the impact of proceeds from capital raising

Full year results 2019	28

Liquidity

Core facility refinanced

	1,800
	1,600
	1,400
	1,200
A$m	1,000
800

600

400

200

-

FY20	FY21		FY22	FY23		FY24
Syndicate Revolving Facility			USPP		Term Loan		Bilateral		Overdraft

• Balance sheet further strengthened
• Core debt facility refinanced during FY19. New facility consists of USD500 millionmulti-currency revolving facility and USD800 million term loans
• Maintains strong liquidity position and increases weighted average tenor with the core debt facility maturing in 2024

Full year results 2019	29

ECR - Acquisition update

Chris Ashton, COO

Full year results 2019	30

FY2019 summary

Transition progress summary - on track

Activities			Progress			Achievements
Completion Activities					Completion achieved on time
					Day 1 successful and objectives met
Transition					Transition underway and meeting expectations
					Action plans developed and being aggressively managed
			Cost	Implementation underway with ~75% of total expected recurring synergies enabled
							in FY20. Refer to slide 32
Synergy Realization			Margin					GID margin synergy development built into FY20 budget. Refer slide 33
			Revenue					Revenue synergies being realized in line with business case

New operational and functional structure in place

Culture & PeopleEngagement and communication activities underway to build alignment across business

Customer Engagement

Transformation

• Good customer response to expanded capabilities
• Key customers engaged in shaping future delivery models
• Transformation activities commenced
• Engagement with the new organization is underway

Full year results 2019	31

Synergy realization - cost synergies

Cost synergy target increased from initial $130m to $150m, expected to progressively deliver benefits over the next two years

Cost synergies AUD'm

IT	Migration of systems and data underway
	Consolidation of applications on track

Estimated $150m p.a.

Cost synergies within two years

Property

Overheads

Indirect

procurement

Cost synergy

Implementation

costs

• Relocations underway; initial wave of office consolidations completed (e.g., Houston, Singapore plus over ten smaller locations) with several larger offices planned in next four months (e.g., Edmonton, Perth, Singapore, Stockton, Reading)
• Synergies being realized
• New operating model in place, overhead reductions underway and resulting synergies being delivered
• Savings already realized fromnon-transferred corporate and other overheads
• Negotiated several key indirect procurement contracts
• Additional contracts under negotiation
• Estimatedone-off implementation costs of approximately AUD110m, plus AUD10m of CAPEX
• Approximately AUD55m of capex costs related to modernization including IT upgrades
• Costs primarily incurred within the first 12 months following completion

IT	Property	G&A	Indirect	Total cost
			procurement	synergies	32
			Full year results 2019

Increasing GID uptake is expected to generate incremental margin synergies within the next three years

How does increasing GID deliver margin improvement?

How we plan to ensure the business hits their targets

Case study - location	Source: Company financials				GID %
$35			Gross Margin (GM)		Net Operating Profit (NOP)			GID as % of Billable Hrs	30%
$30									25%
$25									20%
$20									15%
$15
$10									10%
$5									5%
$0										0%
2016		2017	2018	2019

Win Rate - 40% Win Rate - 80%

• GID championsestablished in each region
• Detailed GID usage assumptions as part of FY20budgeting processreviewed with operations and sales teams
• Regularlytracking GID hoursacross businesses using dashboards
• Establishedrelationship mappingbetween home office and GID

locations to drive momentum	Full year results 2019	33

Synergy realization - margin synergies: shared services

Shared services blueprint

• Plan to extract additional value from shared services over three horizons (in the next three years):

Horizon 1 - retire TSAs

• • Horizon 2 - extend services & coverage
  • Horizon 3 - new services ("NextGen")
• Expand the current shared services centers in Kuala Lumpur and Mumbai to a third in the Americastime-zone, better supporting the larger Worley organization
• Pursue process optimization, robotic automation andself-service opportunities
• Benefits not included in current cost synergy target

Horizon 1

Activities		Progress

Transition end-to-end Project Accounting from Jacobs Krakow shared services to our Worley Mumbai shared services centre

Split ECR Procure-to-Pay (P2P) work from the ECR US global P2P hub into three shared services centers in Worley to maximize service delivery and cost

Full year results 2019	34

Synergy realization - revenue synergies: MPIS

Alaska EPCm to EPC

Contract	Existing EPC contract from BP for their Cat B & C projects on the North Slope
	WorleyParsons brings...	ECR brings…
	NANA WorleyParsons a joint venture with a
	native corporation in Anchorage and on the North	40+ years of arctic experience in delivering large
Relationship	Slope who undertake project delivery
EPC projects in Alaska, including the Nanushuk
(engineering, procurement and project and
	development for Oil Search
	construction management) commissioning and
	3D scanning
Work Scope	Engineering, Procurement and Construction	Fabrication and construction capabilities in Alaska
Management (EPCm)
Expertize /
Now that we are Worley, we have the capability to deliver the fabrication and construction services
Differentiator	beyond the engineering and procurement

Full year results 2019	35

Synergy realization - revenue synergies: MPIS

Gulf of Mexico BP Mad Dog 2

Hook-up and commissioning integration services for BP's Mad Dog 2 project and the Argos deep-

Contractwater platform in the Gulf of Mexico. Under the contract, Worley will prepare for arrival of the FPU in the Gulf of Mexico and complete final systems commissioning in Texas, offshore hook-up at the Mad Dog field and handover of the platform to BP's Global Operations Organization

WorleyParsons and ECR bring...

UKIS brings…

Worley positioned as an indispensable partner to BP, through an ever-expanding suite of technical Relationshipsupport services, which now include regional data

hosting, re-design of engineering standards and practices, digital twin designs

North Sea delivery methods from the nearly- completed Clair Ridge commissioning program. Over the next 2-3 years, up to a dozen key Aberdeen managers will contribute vital knowledge to the successful delivery of this commissioning program

Work Scope	Hook-up and commissioning integration services	Technical input

Expertize /Combination of local relationship and long term support, with newly added specialist asset support

Differentiatorexpertise from IntecSea

Full year results 2019	36

Synergy realization - revenue synergies: IntecSea

Netherlands asset advisory consultancy for refinery

Contract	The technical experts within the Advisian asset advisory team are supporting refinery client via the
E&C Services in the Hague for a number of customers where materials and corrosion technical
	expertise is required for investigation of failures and material selection of modifications
	WorleyParsons brings...	ECR brings…
Relationship	Asset advisory expertise	Existing long term relationship with refinery
Work Scope	Materials/ corrosion support for refinery failure	Existing contract which would have
subcontracted the asset advisory work in the
investigation
	past
Expertize /
Combination of local relationship and long term support, with newly added specialist asset integrity /
Differentiator	corrosion and materials expertise from Advisian asset advisory team

Full year results 2019	37

Synergy realization - revenue synergies: IntecSea

Europe confidential customer - master services agreement

Contract	Using existing Advisian relationship to facilitate a refinery audit by the legacy ECR consultancy team
for an asset Advisian had assisted with the technical due diligence
	WorleyParsons brings...	ECR brings…

Previous relationship with client in due diligence and asset advisory service . We assisted with

Relationshiptechnical due diligence in the specific refinery acquisition where the refinery operations review was carried out by others

Refinery audit capability and deep domain knowledge and subject matter experts

Work Scope	Technical due diligence	Refinery audit

Combination of existing relationship and technical expertise to extend our services to asset types that

Expertize /we would not have been able to previously deliver with confidence

DifferentiatorExpanded frame agreement with customer to cover all Worley group consulting and engineering activities

Full year results 2019	38

Synergy realization - revenue synergies: Energy & Chemicals Services

Spain Dynasol, chemicals plant debottlenecking revamp

Contract	Pre-FEED + FEED for the debottlenecking revamp to increase capacity of an existing elastomers plant
in Spain. Scope includes pre-award of equipment, CAPEX estimate +/-10% and EPC execution plan
	WorleyParsons brings...	ECR brings…
Relationship	Recently executed FEED + PMC for analogous	Executing revamp for the customer in analogous
greenfield plant in China for same customer	plant in South America
Work Scope	Avoidance of new hires having to undergo	Joint execution team from project kick-off
synergistically combining resources and expertise
learning curve and fast ramp-up
	from both organizations

Existing relationship with Dynasol in China.

Expertize /Moreover, Worley now offers an exceptional Differentiatorcombination of technical expertise and in-country

knowledge from the Madrid office

Expertize in this project type, having successfully completed a similar revamp in Mexico

Full year results 2019	39

Synergy realization - revenue synergies: Energy & Chemicals Services

Canada East main duct redesign - confidential customer

Contract	Leveraging the Sarnia office chemicals expertize to complete FEL 1 /2 for the main duct redesign
project
	WorleyParsons brings...	ECR brings…
Relationship	Track record of successfully delivering small/mid	Long term relationship with customer locally and
cap projects to chemical customers in the Canada
globally
	East marketplace
		Previously provided local presence through
Work Scope	Provide FEL1/2 for a Main Duct Redesign Project	Cincinnati offices and leveraging the global ECR
expertize and the small cap portfolio execution
		model to meet the customer needs
	Track record of successfully delivering projects in	Proven ability to leverage remote resources
Expertize /	successfully to execute project work (small / mid
the US midwest region cost effectively by	cap projects don't have to be executed by local
Differentiator
leveraging the US / Canada FX benefit	small engineering firms). Remote offices and GID

are many times better solutions

Full year results 2019	40

Transformation

• Drive benefits from our new scale and market leadership position
• Focus on mutually beneficial long term outcomes with our energy, chemicals and resources customers
• Capitalise on key macro trends - energy transition, automation and data analytics, workforce changes, industry social licence
• Become a respected thought leader, embracing innovation and new ways of working
• Deliver service levels that create a step change in the value we bring … and the rewards we receive

Focus

Transition

Time

Transformation

Full year results 2019	41

Outlook

Andrew Wood, CEO

Full year results 2019	42

Progress in FY19

• Revenue* up 36%, EBITA* up 32%, NPATA* up 43%
• Acquisition complete
• Integration of ECR acquisition meeting expectations with more synergies developed in addition to those identifiedpre-acquisition
• Operating leverage continues
• Proforma backlog increased by 10%
• Balance sheet strengthened
• Business well positioned as an industry leader in the energy, chemicals and resources sectors

* Underlying results	Full year results 2019		43

Group outlook

The energy, chemicals and resources market indicators and growth in backlog provide evidence of continued improvement in market conditions. However, our markets are being tempered by macroeconomic global uncertainty.

As a result of the ECR acquisition, we have enhanced the diversity and resilience of our earnings. Worley has the global technical and financial strength to support its Energy, Chemicals and Resource customers as they navigate a changing world.

In FY2020 we expect to deliver the benefits of the acquisition of ECR including the realization of cost, margin and revenue synergies.

Full year results 2019	44

Full Year Results 2019

Q&A

Full year results 2019	45

Full Year Results 2019

Supplementary information

Full year results 2019	46

Segment result

By region

Aggregated Revenue ($m)

APAC

EMEA

AM

Operational EBITA ($m)

APAC

EMEA

AM

Operational EBITA (%)

APAC

EMEA

AM

FY 2019	FY 2018	vs. FY 2018
6,439.1	4,749.2	35.6%
1,347.0	1,080.9	24.6%
2,656.6	2,121.7	25.2%
2,435.5	1,546.6	57.5%
576.5	426.1	35.3%
127.0	105.0	21.0%
251.9	192.9	30.6%
197.6	128.2	54.1%
9.0%	9.0%	0.0 pp
9.4%	9.7%	(0.3 pp)
9.5%	9.1%	0.4 pp
8.1%	8.3%	(0.2 pp)

• ECR drives growth in all regions, and North America in particular
• Strong performance in Norway and Middle East as well as increased procurement revenue in UKIS is leading the growth in EMEA
• Canada supporting strong growth in the Americas
• Increase in operational EBITA margin offset by increase in low margin construction revenue in ECR

Full year results 2019	47

Segment result

By sector

	FY 2019	FY 2018	vs. FY 2018
Aggregated Revenue ($m)	6,439.1	4,749.2	35.6%
Energy	4,480.1	3,720.1	20.4%
Professional Services ¹	3,418.6	3,167.6	7.9%
Construction & Fabrication	1,061.5	552.5	92.1%
Chemicals	1,326.6	599.0	121.5%
Resources	632.4	430.1	47.0%
Operational EBITA ($m)	576.5	426.1	35.3%
Energy	437.1	347.7	25.7%
Professional Services ¹	330.9	290.6	13.9%
Construction & Fabrication	106.2	57.1	86.0%
Chemicals	94.3	43.0	119.3%
Resources	45.1	35.4	27.4%
Operational EBITA (%)	9.0%	9.0%	0.0 pp
Energy	9.8%	9.3%	0.5 pp
Professional Services ¹	9.7%	9.2%	0.5 pp
Construction & Fabrication	10.0%	10.3%	(0.3 pp)
Chemicals	7.1%	7.2%	(0.1 pp)
Resources	7.1%	8.2%	(1.1 pp)

• ECR brings growth in all sectors, and construction & fabrication
• Strong growth in Canada, Oman and Qatar supported the aggregated revenue in the Energy sector for FY2019
• The acquisition of ECR drove the increase in aggregated revenue in the Chemicals sector, as did continued growth in North American and European markets

1. Professional Services includes procurement revenue at margin and other income.

Full year results 2019	48

Global operations and employee numbers

58,100

people

51

countries

Full year results 2019	49

Backlog increased

Backlog by region AUD'b

as at 30 June 2019

2.2

4.7

11.1

Backlog by sector AUD'b

as at 30 June 2019

Americas (AM)		2.3		Chemicals
Europe, Middle East,	7.8			Energy
Africa (EMEA)				Resources
Australia, Pacific,		7.9
Asia, China (APAC)

Full year results 2019	50

Backlog increased

Backlog* by region	Backlog* by sector
as at 30 June 2019	as at 30 June 2019

AUD'b

20.0

18.0

16.0

14.0

12.0

10.0

8.0

6.0

4.0

2.0

-

	1.6	0.1	(0.1)	20.0			0.8	0.5	0.3
	18.0
				16.0
				14.0
				12.0
				AUD'b
	16.4		18.0	10.0		16.4			18.0
		8.0
				6.0
				4.0
				2.0
				-

*Backlog for 30 June 2018 includes ECR

Full year results 2019	51

Underlying earnings profile

				Group underlying EBITA AUD'm
										H2
										H1
439.8								412.8
248.0	321.9	274.6		313.0
					250.2
162.6
					171.7
		146.9
191.8	159.3	127.7		141.3		162.6
	FY2015		FY2016		FY2017	FY2018	FY2019
				Group underlying NPATA AUD'm
										H2
258.4								259.8	H1
146.3	166.6	135.0		182.0		156.4
			97.5
		86.3	71.0
112.1				84.5		103.4
80.3	64.0
	FY2015		FY2016		FY2017	FY2018	FY2019

Full year results 2019	52

Margin profile

Underlying EBITA %

										7.0%				H1
							6.6%
5.3%	6.9%	6.1%	5.1%	6.2%	5.6%	5.9%	6.3%	6.1%	6.6%	6.3%	6.5%	6.4%	H2
										Total

FY2015

FY2016 (Restated)

FY2017

FY2018

FY2019

Underlying NPATA %

													H1
4.0%	3.6%						3.7%	4.0%	3.8%	4.0%	4.0%	4.0%	H2
3.3%	2.9%	3.0%	3.2%	3.1%	Total
3.1%
		2.6%

FY2015	FY2016 (Restated)	FY2017	FY2018	FY2019
53
				Full year results 2019

Revenue split

Region aggregated revenue (%)

8% 15%

20% 6%

18%

33%

ANZ

Asia

Canada

Europe

USA & LAM

Middle East & Africa

Sector aggregated revenue (%)

10%

20%			Energy
		Chemicals
	70%		Resources

Region aggregated revenue (%) (proforma)

Sector aggregated revenue (%) (proforma)

7%	10%	6%			ANZ
				Asia
			16%		Canada
37%				Europe

USA & LAM

Middle East & Africa

24%

11%

49%

40%

Energy

Chemicals

Resources

54

Revenue reconciliation

	FY2019 ($m)	FY2018($m)	vs FY2018
Revenue and other income	6,924.3	4,835.8	43.2%
Less: Procurement revenue at nil margin	(608.0)	(94.4)	544.1%
Less: Pass through revenue at nil margin	(32.4)	(157.3)	(79.4%)
Plus: Share of revenue from associates	183.0	170.6	7.3%
Plus: Impact of arbitrational award ¹	8.7	-	n/m
Less: Interest income	(36.5)	(5.5)	563.6%
Less: Net gain on revaluation of investments previously		-	#DIV/0!
accounted for as joint operations
Aggregated revenue 2	6,439.1	4,749.2	35.6%
Professional services	4,685.9	3,850.6	21.7%
Construction and fabrication	1,328.6	552.5	140.5%
Procurement revenue at margin	416.9	337.9	23.4%
Other income	7.7	8.2	(6.1%)

1. Reduction in revenue following lower than expected arbitration award in relation to a dispute with a state owned enterprise
2. 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

Full year results 2019	55

EBITA reconciliation

	FY2019 ($m)	FY2018 ($m)
EBITA	308.1	278.0
Add: impact of acquisitions, comprised of:
Acquisition costs	50.6	5.9
Transition costs	35.0	-
Onerous lease contracts	8.9	-
Bridging facility fee	4.2	-
Foreign exchange gain on term deposits	(3.4)	-
Add: impact of the arbitration award1	8.7	-
Add: onerous lease (non-acquisition related)		12.2
Add: Restructuring costs	0.7	14.2
Add: Impairment of associate intangible	-
assets	2.7
Underlying EBITA2	412.8	313.0

1. Reduction in revenue following lower than expected arbitration award in relation to a dispute with a state owned enterprise
2. The underlying EBITA result excludes the impact of acquisitions (acquisition and transition costs, bridging facility costs and FX on term deposits), impact of the arbitration award, restructuring costs and onerous lease contracts and amortization of intangibles recognized on business combinations

Full year results 2019	56

Cash flow

	FY2019 ($m)	FY2018 ($m)
EBITA	308.1	278.0
Add: Depreciation, amortization	93.2	68.0
Less: Interest and tax paid	(42.0)	(81.5)
Less: Working capital/other	(123.0)	(4.8)
Net cash inflow from operating activities	236.3	259.7
Cash restructuring costs paid	18.8	34.0
Underlying operating cash flow	255.1	293.7
Net procurement cash outflow	(15.9)	4.8
	239.2
Underlying operating cash flow net of procurement cash flows	298.5

Full year results 2019	57

Cash flow

Bridge to cash balance

																																																											Underlying op. cash
																							Underlying operating
																								cash flow - 255.1																											flow $255.1m
							Cash one off costs paid - 18.8	273 (34)																	492			$18.8m for one off
																																	(11)		(99)									non-trading items
																																																							including $31m of
																																													(29)
	278					(1)		31		(31)																								(946)												interest received
	(18)				16																		1062

Full year results 2019	58

Liquidity and debt maturity

Liquidity Summary AUD'm	FY2019	HY2019	Change
Liquidity
Loan, finance lease & overdraft facilities1	2,962	2,373	24.8%
Less: facilities utilized2	(2,153)	(1,178)	82.8%
Available facilities	809	1,195	(32.3%)
Plus: cash	494	343	44.0%
Total liquidity	1,303	1,538	(15.3%)
Bonding
Bonding facilities	1,540	1,202	28.1%
Bonding facility utilization, %	58%	42%	(16pp)

1. Loan, finance lease and overdraft facilities (inclusive of the bridge facility) as at 30 June 2019. HY2019: excludes impact of equity raise
2. HY2019: excludes impact of equity raise

Full year results 2019	59

Foreign exchange translation impact

Movement in major currencies against AUD (indexed)

106

104

102

100

98

96

94

92

90

88 Jul-18Aug-18Sep-18Oct-18Nov-18Dec-18Jan-19Feb-19Mar-19Apr-19May-19Jun-19

AUDUSD AUDCAD AUDGBP

Currency	AUD $m NPAT translation
impact of 1c ∆
AUD:USD	(0.44)

Currency	Average exchange	Spot exchange rate
rate movement	movement
BRL	7.7%		(5.8%)
CAD	(3.8%)		(5.8%)
CNY	(3.3%)		(1.1%)
EUR	(3.6%)		(3.1%)
GBP	(4.0%)		(1.7%)
NOK	(2.3%)		(1.0%)
SGD	(6.2%)		(5.7%)
USD	(7.9%)		(4.7%)
KZT	3.7%		6.2%
Currency	FY2019	FY2018	change
AUD:USD	71.5	77.6	(7.9%)

AUD:GBP	0.09	AUD:GBP	55.3	57.6	(4.0%)
AUD:CAD	5.95	AUD:CAD	94.7	98.4	(3.8%)
60
				Full year results 2019

Foreign exchange

A $m

6.0	Impact total EBITA
4.0

2.0 4.4

0.7	0.4	0.1	0.4	1.2	0.7	0.2	0.6	1.4	0.1	0.5	0.3	0.3	0.5
-
					(1.3)			(2.4)
											(2.9)
-2.0
-4.0

			CAD	CLP	CNY	EUR GBP KWD	KZT NOK NZD OTHER QAR	US	USD ZAR BND	INR NGN BGN
	15												Pegged
							Group EBITA FX translation
	10
			11		12
$m	5
													5.2
												0.1
0
A
	-5									(8.3)
-10
		FY15			FY16			FY17		FY18		FY19
						61
																Full year results 2019

Acronyms

APAC- Australia, Pacific, Asia, China AM- Americas

ASX- Australian Securities Exchange CAGR- Compound Annual Growth Rate CPS- Cents Per Share

EBIT- Earnings Before Interest and Tax

EBITDA- Earnings Before Interest and Tax, Depreciation and Amortization EMEA- Europe, Middle East and Africa

ECR- Energy, Chemicals and Resources diversion acquired from Jacobs Engineering Group Inc in the financial year of FY2019

EPC- Engineering, Procurement & Construction EPS- Earnings Per Share

ESG- Environment Social Governance FEED- Front end engineering and design

FX- Foreign Exchange

FY- Financial Year

GID- Global Integrated Delivery

HSE- Health Safety and Environment

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

NPS- New Policy Scenarios

SDS- Sustainable Development Scenario

STEM- Science, technology, engineering and mathematics

Full year results 2019	62