Annual Report 2015 We are a professional services business, a partner in delivering sustained economic and social progress, creating opportunities for individuals, companies and communities to find and realize their own futures. We can only do this with the support of our shareholders, earned by delivering earnings growth and a satisfactory return on their investment. OUR VALUES Leadership Agility • Energy and excitement • Smallest assignment to world-scale developments • Integrity in all aspects of business • Comprehensive geographic presence • Minimum bureaucracy • Global expertise delivered locally • Committed, empowered and technically • Responsive to customer preferences capable people • Optimum customized solutions • Delivering profitable sustainability Performance Relationships • Industry leadership in health, safety and • Open and respectful environmental performance • A trusted supplier, partner and customer • Consistent results for our customers, delivering on • Collaborative approach to business our promises • Willing to challenge and innovate • People accountable and rewarded for performance • Enduring customer relationships • Innovation delivering value for our customers • Creating wealth for our shareholders WorleyParsons delivers projects, provides expertise in engineering, Contents procurement and construction and offers a wide range of consulting and Group Financial Highlights 1 advisory services. We cover the full lifecycle, from creating new assets to Chairman and CEOs’ Review 2 sustaining and enhancing operating assets, in the hydrocarbons, mineral, Board of Directors 6 metals, chemicals and infrastructure sectors. Our resources and energy are focused on responding to and meeting the needs of our customers over Global Operations and 8 Significant Contract Awards the long term and thereby creating value for our shareholders. Realize Our Future 12 Development 26 Annual General Meeting Corporate Responsibility 31 WorleyParsons’ 2015 Annual General Meeting will be held on Tuesday Operating and Financial Review 38 27 October 2015 commencing at 2.00pm (AEDT) at The Westin Sydney, Directors’ Report 46 1 Martin Place, Sydney. Remuneration Report 51 Financial Statements 67 We have created our 2015 Shareholder results Shareholder Information 115 microsite, which offers our 2015 results Glossary 116 documents and detailed information on our business operations. Corporate Information 117 Visit us online annualreport2015.worleyparsons.com Group FinancialHighlights Group reported in2014. reported 1.8% onthe$7,363.7m of $7,227.5m, adecrease of revenue aggregated wasearnedon The result FIVE YEAR PERFORMANCE AGLANCE AT Return onequity Return Cash flow from operations from Cash flow Net profit margin profit Net Dividends (cents pershare) Dividends (cents Net profit after tax after profit Net Aggregated revenue Aggregated Basic EPS(cents) (cents) Basic EPSnormalized EBIT EBIT margin 1 $M 3 2 $7,227.5 m revenue Aggregated Before amortization of intangibles including tax effect of amortization expense. amortization of includingtaxeffect intangibles of amortization Before taxandunderlyingequity. after profit Based onunderlyingnet revenue attributable to associates provides additional information in relation to the financial performance of theGroup. of thefinancialperformance to inrelation additionalinformation provides associates to attributable revenue of thedisclosure believe Thedirectors associates. asequityaccounted for accounted previously investments of gainonrevaluation andnet income interest nilmargin, at revenue less procurement associates from revenue of plusshare income andother revenue asstatutory isdefined revenue Aggregated 11 12 13 14 15 11 12 13 14 15 $5,903.5m 11 12 13 14 15 11 12 13 14 15 11 12 13 14 15 11 12 13 14 15 $5,903.5m $5,903.5m 11 12 13 14 15 $5,903.5m 11 12 13 14 15 $5,903.5m $7,362.6m $5,903.5m $7,362.6m $7,362.6m $7,362.6m $7,362.6m $7,627.0m $7,362.6m $7,627.0m $7,627.0m $7,627.0m $7,627.0m $7,627.0m 2 $7,363.7m $7,627.0m $7,363.7m $7,627.0m $7,363.7m 1 $7,627.0m $7,627.0m $7,227.5m $7,627.0m $7,227.5m $x,xxx.xm $7,227.5m $x,xxx.xm $x,xxx.xm 3 11 12 13 14 15 Underlying EBIT, excluding excluding Underlying EBIT, in2014. reported 79.7% onthe$428.2m of $87.1m, adecrease was the year EBIT for $452.2m reported in $452.2m reported 21.3%onthe of decrease was$355.7m,a year the for Dagi settlement, and impairment 11 12 13 14 15 11 12 13 14 15 $474.2m $539.9m $87.1m EBIT 11 12 13 14 15 11 12 13 14 15 $474.2m $5,903.5m 11 12 13 14 15 $474.2m $539.9m 11 12 13 14 15 11 12 13 14 15 $474.2m 5,903.5 $5,903.5m $474.2m $539.9m $474.2m 19.8% $474.2m $5,903.5m 293.8 364.2 148.3 539.9 159.4 $530.3m $537.9m 2011 6.2% 9.1% $530.3m $537.9m 86.0 $530.3m $7,362.6m $530.3m $537.9m $530.3m $7,362.6m $530.3m $537.9m $530.3m $7,362.6m $527.0m $527.0m $530.3m $7,362.6m $527.0m $527.0m $527.0m $7,627.0m $527.0m $527.0m $527.0m $7,627.0m $527.0m $527.0m Arkutun- $527.0m $7,627.0m $452.2m $428.2m $7,627.0m $452.2m $428.2m $452.2m $7,363.7m $452.2m $428.2m $452.2m $7,363.7m $452.2m $428.2m 7,362.6 2014. $452.2m $7,363.7m $355.7m $87.1m 18.0% 437.5 353.2 143.7 537.9 152.7 $87.1m 2012 4.8% $355.7m 7.3% $355.7m $87.1m 91.0 ($54.9m) after tax profit Net 11 12 13 14 15 11 12 13 14 15 7,627.0 $263.4m reported in $263.4m reported 24.6%onthe of decrease 2015 was$198.6m, a for business restructure, withthe China associated andtax Dagi settlement Arkutun- impairment, excluding Underlying NPAT, in 2014. reported profit $249.1m net 122%onthe of a decrease $54.9m, lossof was anet 2015 for result The fullyear 11 12 13 14 15 11 12 13 14 15 $298.5m $364.2m 16.2% 443.5 322.1 130.8 527.0 137.8 2013 11 12 13 14 15 $298.5m $364.2m 11 12 13 14 15 11 12 13 14 15 4.2% 6.9% $298.5m $364.2m 11 12 13 14 15 92.5 $298.5m $364.2m $298.5m $364.2m $298.5m $364.2m $298.5m $364.2m $345.6m $353.2m $345.6m $353.2m $345.6m $353.2m $345.6m $353.2m $345.6m $353.2m $345.6m $353.2m $322.1m $322.1m $322.1m $322.1m $322.1m $322.1m $322.1m $322.1m $322.1m $322.1m 7,363.7 $322.1m $322.1m $263.4m $249.1m 12.5% $249.1m 550.1 249.1 101.0 428.2 108.5 $263.4m $249.1m $263.4m2014 3.4% 5.8% $249.1m 85.0 $263.4m $263.4m $249.1m $263.4m $249.1m $249.1m 2014. $263.4m $249.1m $198.6m $(54.9)m $xxx.xm $xxx.xm $198.6m $(54.9)m $xxx.xm $xxx.xm $198.6m $(54.9)m $xxx.xm $xxx.xm Cash flow from operations from Cash flow $251.3m 7,227.5 underlying NPAT. 127%of of cash conversion was $251.3m,representing operations from Cash flow 11 12 13 14 15 (0.8%) 11 12 13 14 15 (54.9) (22.2) (14.7) 251.3 2015 11 12 13 14 15 $293.8m 11 12 13 14 15 1.2% 9.2% 56.0 87.1 11 12 13 14 15 $293.8m WorleyParsons $293.8m 11 12 13 14 15 11 12 13 14 15 $293.8m 11 12 13 14 15 $293.8m $437.5m $293.8m $437.5m $437.5m $437.5m $437.5m $443.5m $437.5m $443.5m $443.5m $443.5m $443.5m % change $443.5m $443.5m Annual Report 2015 $443.5m $550.1m (122.0) (122.0) $550.1m (113.5) $550.1m (54.3) (34.1) $550.1m (79 $550.1m $550.1m (1.8) $550.1m $251.3m . $251.3m 7) $xxx.xm $251.3m $xxx.xm $251.3m $xxx.xm 1 CHAIRMAN AND CEOS’ REVIEW Chairman and CEOs’ Review Positioning for the future. John Grill AO and Andrew Wood 2 WorleyParsons Annual Report 2015 s on fron s on Imp u t e cu ro oc n Fo v F d e PMC Welcome to the WorleyParsons Annual Selective delivery offerings Report for 2015. EPCM/EPC The past 12 months have been a challenging time for our customers who have been impacted by sustained Our strategy is explained on page 15 low commodity prices and the fall in oil prices. This has led to reduced activity levels across the resources and energy The five strategic themes are: sectors. WorleyParsons has not been • to build a world class advisory and immune from the impact of this reduction consulting business in our customers’ capital and operating • to be the global project management expenditure, although our geographic consultant of choice • to build a leading Improve business diversification and broad range of services • to be the smartest most agile local have been important factors in maintaining service provider a resilient business. • to be the company that leapfrogs the competition in the use of our global delivery We have developed a strategy for the medium center and applies digital technology to to longer term that responds to the unstoppable revolutionize the delivery of our services. trends and market shifts we have been observing. Our strategy to return the business to growth is built around our five strategic themes leading to one differentiated strategy to ‘Realize our future’.