Worley Limited (WOR) Earnings Call Transcript & Summary

Good morning, ladies and gentlemen. My name is John Grill, and I'm the Chair of Worley Limited. On behalf of the Board and management, I'd like to welcome you to the 2021 Annual General Meeting. We are pleased you have taken the time to join us, and thank you for your interest in and support of Worley. The group Company Secretary has confirmed that we have a quorum present, and accordingly, I declare this Annual General Meeting open. As we gather for this meeting, I'd like to acknowledge the traditional owners of the lands on which we all meet today. For me here in this place we now call North Sydney, it is the Cammeraygal of the Eora Nation. We acknowledge the elders, past, present and emerging of all the lands we work and live on, and extend our respect to other Aboriginal and Torres Strait Islander people present. In light of the COVID-19 pandemic and restrictions on physical gatherings, we are hosting our AGM online through a technology platform provided by our service provider, Lumi. This allows shareholders, proxies and guests to participate in the meeting virtually. The notice of the meeting and online virtual meeting guide contain instructions to assist participation. If you experience any difficulties with the online platform, the helpline number is displayed at the top of your screen and is +613-9415-4024. The help line is managed by Computershare Investor Services. All attendees can watch a live webcast of the meeting. In addition, shareholders and proxies may ask questions and cast votes. You will see a split screen with the webcast and presentation slides on the right and the landing page on the left. The landing page is where you may cast votes and ask your question. Shareholders and proxies may submit questions at any time. [Operator Instructions] After each item of business, I will address questions relating to that item. There will also be time to address further questions at the end of the meeting. Please also note that your questions may be moderated or amalgamated if we receive multiple questions on one topic. For those shareholders who wish to ask a verbal question, an audio question facility is available. [Operator Instructions] If you have any issues using the system, please return to the Lumi platform where further information about how to get help is listed on the landing page. Due to time considerations and the importance of making sure that shareholders as a whole have a reasonable opportunity to ask questions, we may not answer all of your questions. [Operator Instructions] Voting today will be conducted by way of a poll on all items of business. In order to provide you with sufficient time to vote, I will shortly open voting for all resolutions. If you're eligible to vote at this meeting, a new voting tab will appear on the landing page. Selecting this tab will display the resolutions and present you with voting options. To cast your vote, select one of the options. There is no need to click submit as the vote is automatically recorded. You do, however, have the ability to change your vote up until the time I declare voting closed. I understand that shareholders and proxies may not stay for the entire meeting, so I declare the polls open now. The voting tab will soon appear, and this means you can vote on items 2 to 5 at any time until I to clear the poll closed. The Board recommends that shareholders and proxies vote in favor of all items. The notice of meeting explains the items in detail, and I'll take the notice of meeting as read. If we experience any technology difficulties today, I'd like to apologize in advance. However, I assure you that we have rehearsed the meeting and thoroughly tested the technology to create a seamless and enjoyable experience for you. If, however, it becomes necessary to adjourn the meeting, we will reconvene today at 1 p.m. Australian Eastern daylight time or at an alternative time as notified to the ASX. If this occurs, we will lodge an ASX notice detailing the next steps. I'd like now to introduce the Worley Board to you. I am in-person at our head office in North Sydney, along with Nuala O'Leary, the Group Company Secretary. We are maintaining physical distancing requirements and complying with all government regulations in relation to COVID-19. Scott Jarrett of Ernst & Young, the company's auditor, is joining the meeting remotely. Scott is available to answer questions. I would now like to introduce our directors who are joining the meeting remotely: Andrew Liveris, Deputy Chair, Lead Independent Director and non-Executive Director; Tom Gorman, non-Executive Director; Chris Haynes, non-Executive Director; Roger Higgins, non-Executive Director; martin Parkinson, non-Executive Director. Emma Stein, non-Executive Director; Juan Suárez Coppel, non-Executive Director, Anne Templeman-Jones, non-Executive Director; Wang Xiao Bin, non-Executive Director; Sharon Warburton, non-Executive Director; and Chris Ashton, the Chief Executive Officer and Managing Director. I appoint Maria Dzopalic of Computershare Investor Services to conduct the poll as returning officer. Maria is joining the meeting remotely. As you know, at Worley, we start every meeting with the safety moment. I would like to share one with you today before we commence the meeting formalities. I'd like you to -- I'd like to introduce you to John who will present our safety moment to you.

Thank you, Chair, and good morning, shareholders. Our safety moment that I'm proud to present is about mental health, which is something I'm particularly passionate about. According to reports, the new global health and economic circumstances of the past 18 months poses the greatest threat to mental health since the Second World War. And to give it some context, in England, prescriptions for antidepressants have reached the highest on record, with more than 6 million prescribed in the last 3 months, leading up to September 2020. In the U.S., there's been a tripling of anxiety and a quadrupling of depression amongst adults when compared to 2019. The CDC released a report showing that 40% of Americans are dealing with some form of anxiety and depression. The disruption over the past 18 months has negatively impacted the mental health of people and created new barriers for people already suffering from mental illness. A World Health Organization survey, which was conducted in mid-2020, clearly showed that services for mental, neurological and substance use disorders have been significantly disrupted, and concerns around mental health and substance use have grown, including concerns around suicidal ideation. Suicide rates have long been on the rise, and they may have worsened over the last 18 months. Globally, we still lose 1 person to suicide every 40 seconds, and that's a sobering statistic. My brother and my niece represent the real people in these statistics, both suffered from anxiety and depression in did so alone and in silence, which is why I'm so passionate about mental health and wanting to make a change. But there's hope. At Worley, we're continually looking at how we can support mental health and well-being. Our life approach centers around how people connect with each other to stay safe and well. Life matters. It's our holistic health and well-being program, covering mental, physical and social well-being. And we have a number of life resources available to support our people who might be struggling with their mental health and wellbeing and to encourage connection and help remove stigmas associated with mental events. This includes our global assistance program, which provides confidential support to people and their families dealing with life's challenges. Our mental health for Manager sessions in which nearly 1,000 of our leaders participated. They learned about common mental health issues and focused on communication skills, early identification of issues as well as the importance of maintaining their own self-care. And we have nearly 300 trained and experienced mental health champions, of which I am one, networked across 29 countries around the globe who can lend a confidential empathetic gear and help people find the professional resources they need at work. We know people are at the heart of the solution. And we're working to educate, promote and support the well-being and reduce the stigma of mental illness, so no one has to feel alone or isolated because we know we are stronger together. Thank you.

Now I turn to my formal address, which will be followed by an address from Chris Ashton. After Chris' address, you'll have the opportunity to ask questions during the formal business of the meeting. This year, our people, customers and business have been impacted by the global health and economic circumstances. Many countries around the world, including Australia, are still dealing with the impacts of COVID-19. We want to express our deep gratitude for the ongoing resilience, agility and professionalism of our global team who have supported each other while continuing to support our customers in the delivery of their projects and maintaining operations on their critical infrastructure. We will continue to take all appropriate actions to protect our people while ensuring business continuity. The safety and well-being of our people is what matters most. In what has been a difficult period, we have maintained our industry-leading safety performance. This year, our Total Recordable Case Frequency Rate was 0.16 across the group. We are committed to providing a respectful, safe and healthy environment, one where we support each other and our communities. The COVID-19 impacts on site access and travel created an opportunity to develop new and enhanced site practices using technology and innovation. A number of these have been so successful that we are embedding them as leading practice and using them across all the industries in which we work across the world. I'd now like to focus on our results for financial year 2021. Our business has felt the impact of the global economic circumstances, including COVID-19, which have affected our customers, particularly in demand in their end markets. The group reported an underlying net profit after tax of $206 million and a positive operating cash flow of $533 million. Our full year aggregated revenue was $8.8 billion. We have delivered an underlying EBITDA of $468 million. However, this year has been a story of two halves, and I'm pleased to say that we have delivered a better second half in line with our expectations. The Board declared a final dividend payment of $0.25 per fully paid ordinary share unfranked. This is in addition to the interim dividend of $0.25 per share for a total dividend of $0.50 per share for the full year. We've maintained our financial strength during a period of subdued economic activity. We've focused and taken early and deliberate action in the areas we can control. These efforts contributed to the improved results in the second half and have set our business up for future growth. We have driven successful outcomes from both of our cost-saving initiatives. We have completed the ECR acquisition cost synergies program, delivering a total of $190 million in annualized saving by April 2021. At the time of the acquisition, we identified $130 million of annualized savings, and we have exceeded our original targets by $60 million within the expected timeframe. As part of our operational savings program, we have simplified our business. The result is that we can better support our customers in innovative ways to fast-track execution of our strategy. We are on schedule to deliver our increased savings target of $350 million annualized savings by 30th of June 2022. These programs represent permanent structural change and will deliver benefits long into the future. We continue to maintain a strong balance sheet. Our gearing is at 21.7% and leverage is 2x, which is within our target range. We extended our long-term debt maturity profile with the completion of a EUR 500 million sustainability-linked bond under a euro medium-term note program. This was Australia's first sustainability-linked bond, and we're proud that the bond aligns Worley's financing with our purpose. The bond is linked to our Scope 1 and Scope 2 emissions target reduction of just over 57,000 tons of carbon equivalent by 2025. Our earnings base is more diversified across geographies, sectors and customer spend. Our diversification will continue to be important as different sectors and regions recover at different rates. We are driving long-term value for our shareholders, underpinned by our strong balance sheet to support growth initiatives and shareholder returns. As a global leader delivering high-value solutions for our energy, chemicals and resources customers, we are well positioned to benefit from the megatrend towards sustainability. Over the year, we have seen momentum continuing to build in response to climate change. The release of the Intergovernmental Panel on Climate Change, IPCC, Sixth Assessment Report provides further impetus for industry, regulators and government to work together in accelerating the energy transition. As leaders of the world come together for COP26, we expect to see further commitments and outcomes that will accelerate action, lift ambition and encourage the flow of capital to less carbon-intensive assets while seeking nature positive outcomes. The pace and scale of investment in sustainability is predicted to greatly exceed that which we have seen before. This is supported by ESG-focused capital markets, social license to operate and the geopolitical environment. Our purpose is delivering a more sustainable world. And as a leading provider of professional project and asset services, we are uniquely positioned to enable industry to deliver the sustainability imperative. We are a critical part of the solution as our customers transition to a low-carbon future. Our traditional work in energy, chemicals and resources continues to be important -- an important part of our future with sustainability providing a higher rate of growth. Our customers will continue to invest in their traditional businesses given ongoing demand while also investing in decarbonization of existing assets and potential new markets. Well, the biggest impact we can have is providing our customers with solutions to meet their sustainability commitments, we are also committed to operating in line with our purpose. Our Climate Change Position Statement aligns us with the Paris Agreement and the UN Sustainable Development Goals. I'm proud to share that we have made significant progress on reducing our emissions, and we've set a new interim Scope 1 and Scope 2 emissions target to complement our net-zero target. We have committed to a 50% reduction of our Scope 1 and 2 emissions by 2025, in line with our sustainability-linked bond. We will also reduce emissions in our value chains. We have committed to a head a science-based target to reach net-zero Scope 3 emissions by 2050. We are constantly improving our Task Force on climate-related financial disclosures. This year, we have an integrated climate -- we have integrated climate risk into our business strategy development process and further embedded sustainability metrics in our remuneration framework. We also continually assess our potential involvement in carbon intensive projects and run ethics checks on prospective customers and suppliers in line with our responsible business assessment process. We support our people and the communities in which we operate. We are working to create an even more diverse an inclusive environment. One free of discrimination and bias where everyone has equal opportunity is valued, respected and supported. We take a holding diversity and inclusion and recognize that our diversity is our strength. We are further strengthening the governance and operational controls we have in place to reinforce the culture of acting lawfully, ethically and responsibly. We have an ethical supply chain and modern slavery statement, which includes a supply chain risk assessment and due diligence process. Our data protection offers, governs compliance of our cybersecurity program with global data protection requirements as specified in Australia, Europe, the U.S. and other jurisdictions in which we work. Maintaining and enhancing our reputation for integrity, honesty and ethical practices is important to the Board. This will continue to be critical to our future success as we transform our business. We comply with all applicable laws and conduct our business to the highest standard, and we hold our partners and agents to the same high standard. I'd now like to turn to changes we've made to the Board and the executive this financial year. In December '20, we welcome Emma Stein as an Independent non-Executive Director to the Board. Since 2003, Emma has worked as a non-Executive Director for ASX 200 companies as well as private and government-owned companies in Australia and in New Zealand. Her skills and qualifications complement those of the existing Board. In October 2020, Chris Haynes stepped down from the position of Lead Independent Director and Chair of the Health, Safety and Sustainability Committee. He continues to serve on the Board as well as on the People and Remuneration Committee, the Nominations Committee and the Health, Safety and Sustainability Committee. Andrew Liveris has taken on the role of Lead Independent Director. He remains Deputy Chair and also Chair of our Transformation Strategy, a special purpose committee to provide guidance for the development and implementation of our transformational strategy. Roger Higgins has assumed responsibilities as Chair of the Health, Safety and Sustainability Committee. Tom Gorman is stepping down from the position of Chair of the People and Remuneration Committee today. He remains a non-Executive Director and member of the People and Remuneration Committee, the Nominations Committee and the Health, Safety and Sustainability Committee. Emma Stein will assume responsibilities as Chair of the People and Remuneration Committee going forward. The Board undertakes appropriate evaluation, succession and renewal processes to ensure we maintain the appropriate balance of skills, knowledge, experience, independence and diversity to enable it to discharge its duties and responsibilities effectively. Our directors generously allocate the necessary time required to carry out their duties and work to create value for our shareholders. I'd like to take this opportunity to sincerely thank Tom Honan for his significant contribution to the group as Chief Financial Officer. Tom retired on the 21st of June this year. I wish him and his family all the best for his retirement. Charmaine Hopkins was appointed as Interim Chief Financial Officer of the group. Charmaine brings an in-depth understanding of public company reporting requirements and capital structure, and has a strong understanding of our business based on her experience at Worley over recent years. We announced the appointment of Tiernan O’Rourke to the position of Chief Financial Officer of the group. Tiernan will commence on the 29th of November, and brings more than 30 years' experience in financial, commercial and planning roles across a range of industries, sectors and regions. We welcome Tiernan to Worley. Finally, I'd like to thank shareholders for their continued support. I also want to thank our directors, leadership team and most importantly, our people. In the past year, we have overcome great challenges and actively positioned our business for the future. We are delivering on our commitments in line with our expectations and continue to accelerate our strategic transformation. I look forward to working with you to create an exciting future for our company. That concludes my review of financial year 2021. I'd now like to make a few comments regarding our ongoing relationship with Dar Group. We continue to maintain open and positive discussions, and we have agreed on the types of projects or opportunities where we would assess working together. While there is no global agreement, we will evaluate opportunities on a case-by-case basis. The main area we can support Dar Group’s projects is by bringing our sustainability skills and expertise to their markets, where it aligns with our purpose, and is in the best interest of the company and all shareholders. I would now like to ask Chris Ashton, the Chief Executive Officer, to address the meeting.

Thank you, John. Hello, everyone, and thanks for listening in today. This past year has been one of dynamic global change. Through the COVID-19 pandemic and challenging economic circumstances, I couldn't be more proud of how the whole Worley team has responded and continues to live our values. Our values are that we value life. We rise to the challenge. We're stronger together and we unlock brilliance. We've prioritized the safety and well-being of our people and acted with agility to set our business up for the future. Our people have wholeheartedly embraced our purpose, delivering a more sustainable world. They're energized and motivated to help solve some of the world's most complex challenges. We've seen some great examples of our global teams being stronger together despite the challenges of the global lockdowns. Our people have combined innovation and capability across regions to win strategically important contracts. They've solved complex problems for our customers, all while collaborating virtually. We have a business that holds leadership positions across diverse end markets, and we are transforming into a high-value solutions provider enabled by data, technology and automation, particularly in areas of increasing investment in sustainability. We believe in the safety, health and well-being of our people and communities and the environment because without this, nothing else matters. It's been over a year since our safety, health and well-being approach, Life was introduced and more than 50% of our people surveyed report that it made a positive impact and changed their work behavior. We've stayed focused on our people's mental and physical well-being as the world has moved in and out of COVID-related lockdowns. Let's take a look at some of the results of the year. Our business, like most, has felt the impact of the pandemic. The impact of project deferrals and site access restrictions led to a decrease in our aggregated revenue and underlying EBITDA in FY '21 compared to FY '20. We've seen the business begin to stabilize over the second half with activity levels starting to return on long-term contracts and strategic new awards in early phases. And I'm pleased to report we improved our performance in the second half of FY '21, in line with our expectations. When faced with the global economic circumstances, we took decisive action to accelerate our strategic transformation and recast the cost base of the business. John shared earlier on how we've delivered against our cost savings programs, and it's important to note that the benefits of these programs will flow for years to come. The result of this is a business that is now in better shape than 12 months ago, and will support our growth while maintaining a lower cost base. These actions were a main factor in delivering the improved second half results, delivering a second half underlying EBITDA of $261 million, which was up 26% on the first half. I'm pleased with how we've delivered against our strategic transformation over the year. We delivered $2.8 billion of revenue associated with sustainability or around 32% of group aggregated revenue and at more favorable margins compared to our traditional services. Sustainability is growing and now represents nearly half of the global factored sales pipeline. Our traditional business continues to be an important part of our future, and sustainability provides opportunities for growth beyond this. The outlook presented at the time of the full year results remains consistent with what we are expecting for this financial year. As we've previously stated, we expect the first half to remain in line with recent performance. We are, however, seeing positive indicators for improved performance in the second half of this financial year and beyond. We expect projects in our sustainability pathways to become the largest proportion of our revenue in the medium to long term. We have an important role to play in delivering a more sustainable world, both in partnership with our customers on their projects and in the way we run our business. We are rated as a leader, both for our ESG performance and in our industry for the energy transition services we provide. In caring for our planet, we're taking strategic action on climate change. In terms of our commitments, we are making good progress against our Scope 1 and Scope 2 targets and are committed to achieving Scope 3 emissions by -- net-zero Scope 3 emissions by 2050 via science-based targets. We've joined the business ambition for 1.5 degrees C campaign, aligning our emissions reductions with the aims of the Paris Agreement. We've transitioned our Houston and Perth offices to renewable energy with more offices to come. We've updated our property leasing criteria to include sustainability, and our vehicle fleet in Brazil is transitioned to operate on biofuels. For our people and communities, we are working to create an even more inclusive and diverse environment. We're improving the gender and race diversity of our team. We have a gender-balanced executive team, and 46% of graduates starting during the year were women, up from 28% in FY '20. This year, we held our first Global Inclusion survey. While many of our people told us they have a strong center of belonging and inclusion, the results of the survey also provided us with some clear actions where we need to deepen our focus on inclusion and diversity. As a global business, we are inclusive and we continued to work with First Nations people in the communities in which we operate. For example, in Canada through the Progressive Aboriginal Relations Certification, and in Australia through our Reconciliation Action Plan. In line with our strategic transformation, we're committed to continuous development of our people, and we're aligning learning opportunities to our growth strategy and developing our people with targeted transferable skills through both on-the-job experience and employee-led learning. Beyond the strategic actions we're taking in our own business, we're using our skills and partnering with others to unlock brilliance and catalyze breakthrough thinking at an industry and government level. This is the decade of action. It will require collaboration across sectors to realize the United Nations Sustainable Development Goals. We expect further global commitments and elevated ambition as a result of multilateral negotiations beginning this week at COP26 for climate change and last month at COP15 for biodiversity. Recently, we launched a joint thought leadership paper with Princeton University’s Andlinger Center for Energy and Environment, exploring 5 key shifts in thinking needed to deliver the infrastructure required to achieve net-zero by 2050 and discuss the critical role of companies like Worley. We describe a new paradigm to enable delivery of engineered solutions at the pace and scale necessary to deliver mid-century net-zero targets. Our biggest contribution to delivering a more sustainable world is in the work we do for our customers. Our skills and services are required to solve some of the biggest challenges on the planet, and we are working with our customers to do just that. Our strategy places it at the center of future investment. Our major customers and the investment community are increasing their commitments to net-zero targets by 2050 and are announcing very large transition-related investments to get there. We're well positioned to support our customers as they address the magnitude of the transition to achieve a low-carbon future. Our customers are choosing to work with us because of our global scale, our strong expertise in technology assessment, extensive experience in scaling up first-of-a-kind facilities and our reliability as a delivery partner. I want to sincerely thank Tom Honan, who retired as Chief Financial Officer in June '21. Tom joined us in 2015, and he's made a significant lasting contribution to the business. He helps steward Worley through challenging market conditions and embedded a highly focused and disciplined approach, which will benefit us for years to come. I wish Tom and his family all the best for his retirement. As John mentioned, Tiernan O’Rourke will be joining us as Chief Financial Officer on November 29, and I look forward to welcoming him to the team. I'd also like to take the opportunity to thank Charmaine Hopkins, our Interim CFO, who remains a valued member of our team. In closing, I'm proud of our people and optimistic for the future. We've made great strides this year in executing our accelerated transformation and making sure our business is future fit, and we've done it despite challenging global economic circumstances. I want to acknowledge our remarkable people who've brought us to this position. The agility and resilience they've shown and continue to show exemplifies the spirit of Worley. We rise to the challenge. I'd like to thank each and every one of them for their dedication. To you, our shareholders, I want to say thank you for all the support and the confidence you have in your company. John, back to you.

Thank you, Chris. Ladies and gentlemen, we now come to the formal business of the meeting. There are a number of procedural matters to which I must draw to your attention. In the notice of meeting, we invited shareholders to submit online written questions by Wednesday last week. We did not receive any questions through this forum. This is a shareholders' meeting, and only shareholders, their attorneys, proxies and authorized company representatives are entitled to ask questions or vote live during this meeting. In the interest of the meeting, I ask that questions be confined to the business of the meeting and shareholder issues. You have the opportunity to ask questions at all times throughout the meeting through the online portal. After each item of business, I will address questions relating to that item. Questions may be moderated or combined, particularly if we receive many questions on one topic. To ensure all shareholders have time to ask written or verbal questions, we'll take 2 questions per shareholder per item, and if time permits, will allow further questions. We will endeavor to answer as many questions as we can. As Chair, I will determine who is best placed to answer each question. There will also be a time to address further questions at the end of the formal items of business. As a Board, we wish to encourage all shareholders to vote, including institutions and those who are not able to attend these meetings. Voting exclusions related to each item of business are set out in the notice of meeting. Before moving on, I confirm that I hold a number of open proxies as Chair of the meeting. As set out in the notice of meeting, I will be voting all available undirected proxies in favor of each item of business. The first item of business listed on the Notice of Meeting is to receive and consider the financial report, which includes the directors' report and auditor's report as set out in the company's annual report for the financial year ended 30 June 2021. There is no resolution for this item. This item of business provides shareholders with the opportunity to ask questions about the financial report and the business and management of the company in general. Shareholders can also ask questions of the auditor relevant to the conduct of the audit. The preparation and content of the auditor's report, the accounting policies adopted in preparing the financial statements and the auditor's independence. We will now address shareholder questions on this item. Please note, we will focus specifically on the remuneration report later in the meeting. Nuala, can you please read out any written questions received for this item.

Good morning, shareholders. John, there are no written questions for this item. We have received an audio question.

So we will now turn to verbal questions and...

Thank you, John. I will read and introduce the question. The question is received from Gary Barton of the Australian Shareholders' Association. And his question relates to Item 1. John, could you please ask Gary to announce his question?

Gary, could you please answer your question?

Since the announcement of the Jacob's ECR acquisition for $4.5 billion, the share price has decreased from $18 to below $11. The oil price has rallied and the market capitalization has only increased marginally. Could the Chairman provide any intellect as to why?

I'll -- I mean, I think as I've pointed out in my talk, the -- I mean, the markets around the world have been affected very much by the very -- the reduced oil price and by COVID, which has made radical changes to the number of projects that put on hold during the period. Very few of them have been canceled and some of them are starting to up again. But nearly all of the effects on the share price of being local and our revenue and profitability have been affected by those 2 factors, the drop in the oil price and COVID, which have both been substantial for all companies in our business.

Okay. Another question.

Go ahead with your further question.

John, whilst we check if Gary has a second question, as you indicated, we'll progress to a second audio question. The question comes from Ian Davey, and his question relates to company strategy. Good morning, Ian, could you please ask your question?

Worley said it uses climate-related scenarios, including the IEA's net-zero by 2050 as part of its strategy development process, and also as a net-zero by 2050 and 1.5 degree Celsius business ambition. So why does the company's strategy still allows to facilitate new oil and gas projects when the IEA has confirmed these are incompatible with net-zero 2050 and 1.5 degrees Celsius?

Worley's strategy is to continue with its existing business, while we are transforming the company and moving into the sustainability business it's not part of our strategy to be discontinuing a business. A lot of our customers are, in fact, working in both their continuing activities in oil and gas and moving into sustainability. And Worley is doing the same thing. And this will transition with time in the same way our customers will transition with time. So that's really the answer to that question. Any further questions?

Thank you, John. We have another audio question. The message is from Jan McNichol. Jan, you have a question relating to company strategy. Please go ahead.

Yes. Thank you, Mr. Chair. Yes, look, the time is something that we're running out of. Well, Worley has made a lot of noise about sustainability and climate action recently. But in this year's annual report, I see Worley is targeting its new contracts to provide early phase engineering services to Chevron. This is Chevron, one of the single largest corporate contributors to global emissions in history. The same Chevron that funded and propagated this information to delay and avoid climate actions, and the same Chevron that's pursuing new oil and gas developments that are incompatible with the International Energy Agency's net-zero by 2050 pathway, and plans to significantly increase production when carbon tracker research shows that it must decrease by over half the coming decade in order to align with net-zero by 2050. How on earth can work on Chevron's new projects be approved under Worley's responsible business assessments? And doesn't this work completely undermine Worley's climate commitment to sustainability and climate action, and reveal those claims to be nothing more than greenwash?

And really, my answer to the last question is exactly the same answer to your question. Thank you. Are there any further questions?

Thank you, John. We have no further audio questions, but we do have some written online questions. I will read those questions now. This question is from Early Bird Holdings. The question is as follows. With respect, can you please clarify how Andrew Liveris, who misled the public on national television in relation to employment dependency on gas as a feedstock and advocates for the much challenged gas-led recovery, is consistent with Worley's admirable and sincere sustainability aims and commitments?

I mean, Andrew is a very valuable member of our Board, and he Chairs our Transformation Strategy Committee, which is helping Worley move its business model from the traditional areas into sustainability. Is -- gas is certainly part of that role, and certainly, gas will be part of Australia's transition and of many countries in the world's transition. So Andrew, would you like to say anything yourself?

Thank you, Mr. Chairman. I think your answer was very, very much what I would say. Energy transition is what Worley is always about as is every company on the planet, and getting to net-zero 2050 is a goal of the nation now, which I'm very proud of, as well as the goal of Worley's to help companies and customers get to that. And I really do believe our strategy to do that and our Board's alignment with management is absolute, and that includes me.

Thank you, Andrew. Further question?

There are no further questions on this item.

Thank you, Nuala. Moving to the next item of business. 5 of the company's directors are standing for election or reelection today. For Item 2A, shareholders are asked to consider the reelection of Andrew Liveris. Andrew was appointed to the Board in September 2018. He is the Deputy Chair, Lead Independent Director and a member of the Health, Safety and Sustainability Committee, the People and Remuneration Committee and the Nominations Committee. Andrew also chairs the Transformation Strategy Committee, which is a special purpose committee to provide guidance for the development and implementation of our transformational strategy. I'd like -- now I'd like to give Andrew an opportunity to address the meeting.

Chair, Directors, shareholders, ladies and gentlemen, I joined Worley as a Director in September 2018, and I'm the Deputy Chair and Lead Independent Director. I am pleased to offer myself for reelection. I come to the role at Worley with a number of common touch points. Born in Australia, I found my progress in developmental roles around the world. An engineer, I found my expertise both constantly valued and constantly tested in evolving challenges and technological innovation. A 40-year employee of Dow Chemical, I've had close engagement with a great many of the technical and created challenges faced by oil staff every day. So in many ways, a natural fit. One element from my background is particularly relevant today. I was appointed CEO of Dow Chemical in 2004 on the basis of a strategy to transform the company. While there were a number of large investments and quite a few divestments in that process, the heart of it was in the pursuit of high-value product, a business driven by science and engineering. The transformation was delivered. And I'm pleased to say that Dow Chemical today is in a strong position and a market leader. As you know, Worley has embraced the transformation required to meet today's challenges of sustainability, most obviously in the efficiencies and fuel sources we all use for energy. I believe that my experience and expertise is highly applicable to these demands. As a Board member at Aramco and IBM, I am highly engaged with companies that are each separately building strategies and managing events that are aligned with Worley's need to meet both energy market and order technological challenges. As Chairman at Lucid, I've engaged with the team developing the next generation of electric passenger vehicles. And at Novonix, where I'm a Director, we are working at the cutting edge of battery technology. Worley's critical role in the global energy transition is in the activation of policy, delivery of solutions will be complex and often uncertain. This is what Worley does best. But we will also work closely with other stakeholders, notably governments, to reduce the risks and maximize the effectiveness of solutions in a rapidly evolving technology environment. I've work closely with governments in very many countries throughout my career. And most recently, I was asked by the Australian government to provide some forward-looking views on manufacturing, technology and skills relevant to the opportunities and challenges facing us today. This work was based on similar reviews I had been part of in the U.S.A. working with industry and advisers to supporting the Presidents of the United States. Having been myself a CEO, leading a strategic transformation at Dow Chemical, I'm conscious of the roles that boards and executive management each play. Clarity around those roles is something I regard as critical to success, never more so than during a period of transformation. I will continue to have the time to dedicate myself to my duties as a Director at Worley and fulfill my roles of Deputy Chair and Lead Independent Director. In summary, I believe that my experience and expertise are a good fit for the Board of Worley in what is a time of opportunity and challenge.

Thank you, Andrew. The directors recommend that Andrew will be reelected to the Worley Board and the shareholders vote in favor of Item 2A. The resolution is shown on the presentation slide on your screen. Also on the slide are the proxies received in respect of Andrew's reelection. Nuala, can you please read out any written questions relating to this item?

John, there are no recent questions for this item. But we do have Gary Barton from the Australian Shareholders' Association on the telephone line. He has a question for Item 2 or -- to refer to Andrew. Gary, could you please ask your question now?

Firstly, a general comment. Other companies give a detailed matrix of each Director [indiscernible]. Will Worley publish this matrix in the future? And I'll have similar questions to all directors seeking reelection or election. Mr. Liveris, at Worley corporation, corporate government statement has a matrix that identifies skills and experiences. 9 categories list directors with only practical level skills. In which category do you have basic level skills? And how will you add value to the Board, which probably is a part of it in the -- in your presentation?

Let me answer the general question, and I'll let Andrew answer those specific questions. The Board skills matrix published in our corporate governance statements reflects the recommendations of the ASX Corporate Governance Council. We have also followed the council's nonbinding suggestion by defining each of the areas in our matrix consistent with best practice. While each Director will not necessarily have experience in each of these areas captured by the matrix, the Board seeks to ensure that its membership includes an appropriate mix of directors with skills and experience to be effective and add value. I'll now ask Andrew to answer the specific question you asked in relation to him.

Thank you, Mr. Chairman, and thank you for your question. As you've already indicated, I answered part of it in my reelection for. There's no question that modern boards and the breadth of capability that each of us can bring should be under the scrutineer shareholders. My global experience base, my technology background, my client background in chemicals and oil and gas, and then now, my current background in renewables and sustainability and then managing transitions at the intersection of government business and civil society. I'm also a member of 2 NGOs. I think it's very important that we understand how to change the tact of a company in terms of strategy from what was a way to actually add value to ways to be inclusive to add value to all constituencies, and of course, reward the shareholder in so doing. I believe I bring those sorts of skills in managing those intersections. And in addition to that, having managed a very large global corporation, I understand balance sheets and financial streams and cash flow management in my various roles at Dow and also on other boards. Thank you.

Thank you, Andrew. Are there any further questions?

There are no further questions.

Okay. So we'll move on for Item 2B. Shareholders are asked to consider the reelection of Thomas Gorman. Tom was appointed to the Board in December 2017. He is Chair of the People and Remuneration Committee -- or was under this meeting, and a member of the Health, Safety and Sustainability Committee and the Nominations Committee. I'd now like to give Tom an opportunity to address the meeting.

Well, thank you very much, John. Hello, and thank you for this opportunity to present my credentials to continue as a non-Executive Director of Worley Limited. I have held a number of executive positions over my 35-year business career, including senior leadership roles in finance, marketing and sales, project management, logistics, mergers and acquisitions and Investor Relations. I have worked and lived on 4 continents, including approximately 13 years in Australia, and have managed complex international operations in multiple countries with sophisticated supply chains for the bulk of my career. I spent the majority of my career with Ford Motor Company, culminating with the role of President of Ford Australia. I left Ford in early 2008 to join Brambles Limited and retired from Brambles as CEO in 2017. I now live in the United States. Since retiring from active full-time executive life, I have built a portfolio of activities, which includes serving as a non-Executive Director for commercial enterprises, advisory work with senior executives and active support of nonprofit organizations, including the Nature Conservancy in my home state of Maine. These activities allow me to remain current with the key issues facing global enterprises today and afford me the opportunity to continue to build a meaningful set of experiences to further contribute to the Worley Board. I have served as a non-Executive Director of Worley since December of 2017 and feel privileged to be a part of this outstanding Board of Directors. I believe I bring complementary skills to the Board. And combined with my perspective as an ex-CEO and U.S. resident, with a deep love and understanding of Australia, I believe I have been able to contribute positively to the Board discussions that help shape the future of Worley. I am deeply committed to the success of Worley and have the time available to fully perform my Director duties. I appreciate your support of my candidacy to continue as a non-Executive Director of your company. Thank you.

Thank you, Tom. The directors recommend that Tom be reelected to the Worley Board and the shareholders vote in favor of Item 2B. The resolution is shown on the presentation slide on your screen. Also on the slide are the proxies received in respect of Tom's reelection. Nuala, can you please read out any written questions relating to this item?

There are no written questions on this item.

We'll now turn to verbal questions. Are there any verbal -- any questions for this item waiting on the phone line?

Yes. John, Gary Barton of the Australian Shareholders' Association has a question on this item. Gary, please ask your question.

Mr. Gorman, just a similar question to Andrew about the Worley corporate governance statement, with the matrix identifying skills and experiences, 9 categories list directors with only practical level skills. Which categories do you have these base level skills?

Tom, can you directly answer the question?

Yes. Thank you very much, John. And Gary, it's great to hear you. Unfortunately. It's been a while since we've seen each other in-person. But I think John has responded to the question in terms of the matrix previously, when you asked that question to Andrew. So look, without repeating my pre-take message, what I would say that I bring to the Worley Board is really two things. One, as a senior executive in multiple jurisdictions across a number of commercial areas, I have a wealth of experience that I can bring to the Board table and to assist the operating management. And the second thing is, as a U.S. domiciled executive, I think it gives me a great opportunity to see what's happening among the largest markets around the world and share that U.S. perspective with the Board and along with sharing that with the operating management. As said, it's been a privilege to work with this Board, and I believe I can continue to support the Chairman, the rest of the Board members and the operating team going forward. Thank you.

Thank you, Tom. Any further questions?

There are no further questions.

For Item 2C, shareholders are asked to consider the election of Emma Stein. Emma was appointed to the Board in December 2020. She's a member of the People and Remuneration Committee and the Nominations Committee. I would now like to give Emma an opportunity to address the meeting.

Good morning, shareholders. It's my pleasure to be here today seeking your support for my election to the Board of Worley. As I give this address, I remind you that the position of trust that you, the owners of Worley, placing me and my colleagues as your directors. For the past 18 years, I've worked as a non-Executive Director on the boards of companies planning of a wide range of industrial, traditional energy, renewables, mining and natural resource sectors, Australian listed as well as privately owned companies with ownership rating from government to family and private equity. In addition to the concept of trust going to the heart of our fiduciary duties, my lived experience working as a non-Executive Director has underscored that delicate complex, and at times, difficult role in taking care of your company to the standards you expect while supporting it to prosper and increasing value. While these aspects of the role remain the same, the wider social and business context is ever changing and none more so than at Worley. Worley is so well placed to work with clients, old and new and around the globe, developing new solutions for society response to climate change, continues to decarbonize and set higher and higher standards for resource stewardship waste for use and societal impact. This work is exciting, but demanding. It presents risk and opportunity. It aligns with our purpose. I do hope that my background, experience [indiscernible] having a company in the fast deregulating U.K. and European energy sectors, having governed through the highs and lows of several commodity cycles, having worked with companies thought of as hard to abate and having shaped strategies and investments in new assets that facilitate effective energy systems and lower carbon supply chains. And finally, I hope that I bring an inquiring mind to the role, which in turn helps me in my work with the wider Worley team. I very much look forward to gaining your support. Thank you, and good morning.

Thank you, Emma. The directors recommend that Emma be elected to the Worley Board and the shareholders vote in favor of Item 2C. The resolution is shown on the presentation slide on your screen. Also on the slide are the proxies received in respect to Emma's election. Nuala, can you please read out any written questions relating to this item?

There are no written questions on this item.

Any -- are there any questions on phone line?

Yes, we have a question from Gary Barton of the Australian Shareholders' Association. Gary, could you please ask your question?

A similar question as previously about the skills and experience. Can you identify where you have your base level skills in regard to the categories, please?

Emma, can you answer -- please answer Gary's question?

Thanks, John. Gary, in terms of the way in which the skill is presented through the matrix, the areas where I felt I had less background was in the categories of professional services, emerging tech and to some extent, in legal and risk, whereas I believe that my value-add really lies in the categories of governance, leadership, organizational structure, stakeholder management, strategy and finance and commercial.

Thank you, Emma. Any further questions?

There are no further questions on this item.

Okay. For Item 2D, shareholders are asked to consider the election of Anne -- reelection of Anne Templeman-Jones. Anne was appointed to the Board in November 2017. She is Chair of the Audit and Risk Committee and a member of the Nominations Committee. I'd now like to give Anne an opportunity to address the meeting.

Good morning, ladies and gentlemen. Today, I seek your support in reelecting me as Non-Executive Director of Worley for a further 3-year term. Since my initial appointment to the Board in November 2017, I have served as the Chair of the Audit and Risk Committee and as a member of the Nominations, Treasury and Disclosure committees. As a full-time professional non-Executive Director with a diverse portfolio across different industry sectors, I contributed insights to my Worley roles that have been drawn from the full lengths and depths of my professional learnings. This has been particularly important during this time of a net change. The period I've been on the Worley Board has been characterized by rapidly changing geopolitical and economic environment to inexorable march of climate change, the enormous human and business impacts of the global pandemic and the cybersecurity events that have sharpened the focus on critical infrastructure, particularly in the energy sector. At the same time, burgeoning opportunities are presenting in the sustainability space, especially in energy transition and the circular economy. Together, these forces have reshaped Worley's risk profile, and we have made clear strategic choices on the future direction of our business. I believe my experience in risk identification, impact analysis and mitigation response gives me insights on how to continue to implement an even stronger risk management framework that is effective. This is particularly valuable, given our exposure to geopolitical change, our ongoing business transformation and the rising cyber threats faced in all fields. Worley is accelerating its strategic transformation, and in doing so, is making choices regarding legacy simplification of new ways of upgrading. I have been a disciplined and assistance-seeking approach to both process and governance, one that connects the dots across the enterprise while balancing short-term and long-term perspectives, recognizing interdependencies. And I'm comfortable challenging management to ensure Worley achieves an outcome that best minimizes risks, while allowing us to grasp the emerging opportunities. Professionally my portfolio has evolved. And in taking on the role as the Chair of a small ASX-listed company, I've maintained a balance in my workflow that is well within my capability. In doing so, I continue to have the support of our Chair and my fellow Board colleagues. My commitment to Worley and our drive to deliver sustainable outcomes for our customers is as strong as ever. I seek today in reelecting me as a non-Executive Director, so I can continue to work with colleagues and management to serve you, our shareholders. Thank you.

Thank you, Anne. The directors recommend that Anne be reelected to the Worley Board and that shareholders vote in favor of Item 2D. The resolution is shown on the presentation slide on your screen. Also on the slide are the proxies received in respect of Anne's reelection. Nuala, can you please readout any written questions relating to this item?

There are no written questions on this item, John. However, we do have an audio question from Gary Barton of the Australian Shareholders' Association. Gary, would you please ask your question now?

Just a similar question to the other one -- other directors. Could you identify which categories you have base level skills according to the skills matrix?

Anne, I'll ask you to please answer the question directly.

Thanks, John, and thanks, Gary, for your question. I'm very confident that the disciplines I had around the skills I talked about in my speech in terms of risk and governance, financial management, but particularly, in operating in both strategic aspects to deal with some of the massive change that Worley is going through, particularly in the industry it has where it requires and an eighth sense of curiosity, and I certainly have a lot of that, to be able to actually really try and assess and actually link the dots in terms of some of the strategic choices that we are making.

Thank you, Anne. Are there any further questions?

There are no further questions.

For Item 2E, shareholders are asked to consider the reelection of Wang Xiao Bin. Xiao Bin was appointed to the Board in December 2011. She's a member of the Audit and Risk Committee and the Nominations Committee. I'd now like to give Xiao Bin an opportunity to address the meeting.

I'm very honored to have served on the Board of Worley since December 2011. I feel very privileged to be part of this outstanding Board of Directors and seeking your support for reelection as a director for one last term of 3 years. The global energy landscape will change more in the next 10 years than in the previous 100. This brings enormous opportunities for Worley as we set our strategies and shape our organization to deliver a more sustainable future. I have worked in the power industry as a senior executive for 18 years, going through a major shift from fossil fuels to renewable energy, combating climate change, reducing greenhouse gas emissions while meeting industrial and consumer demand for clean, reliable and affordable energy. I believe my experience and industry knowledge is very relevant and instrumental to Worley as we embark on our journey of energy transition. I was born in China, attained tertiary education and qualified as a Chartered Accountant and a Certified Practising Accountant in Australia. I worked in the investment banking industry for 8 years and completed many capital markets transactions and emanate advisory work in the Asia Pacific region. I'm deeply committed to the success of Worley. I'll discharge my fiduciary duty as a Director due diligently, maintain the highest standards of integrity and professionalism and always strive for the best interests of our shareholders. Thank you.

Thank you, Xiao Bin. The directors recommend that Xiao Bin be reelected to the Worley Board and the shareholders vote in favor of Item 2E. The resolution is shown on the presentation slide on your screen, also on the slide of the proxies received in respect of Xiao Bin's reelection. Nuala, can you please readout any written questions relating to this item?

There are no written questions on this item.

And then can now turn to verbal questions. Are any questions for this item waiting on the phone line?

There are no questions on the phone line at the moment, John. We will check. ASA had indicated they would ask an extra question, so we will do that check now. There are no further questions on this item.

Thank you, Nuala. We now come to Item 3, the adoption of the company's remuneration report for the financial year ended 30th of June 2021. As required by the Corporations Act, the vote on this item is advisory-only and does not bind the directors or the company. However, the Board will take the voting results and discussion into account when considering the company's ongoing remuneration strategy. I'd now like to ask Tom Gorman, the Chair of the People and Remuneration Committee, to address the meeting.

Good morning, everyone. My name is Tom Gorman, and as Chair of the People and Remuneration Committee, I have been the Lead non-Executive Director responsible for the development of this year's remuneration report. This report explains in detail how we approach remuneration at Worley and the remuneration outcomes for the financial year 2021. I would encourage you to read the entire remuneration report as it provides context and background to the matters I will cover today. Let me begin by saying that we are pleased with the performance outcomes in what has been a very challenging year. We have been very focused on supporting our people and our customers throughout this difficult period. We are also now very well positioned for our transformation and sustainability journey. Our people are navigating constant change as our customers and markets are changing rapidly. Our customers face new challenges, and we're working with them to solve complex problems. At the same time, new customers are emerging. Rising demand for renewable and more sustainable solutions are shifting dynamics in the marketplace. We are excited about the significant opportunity for our work and for our people. As markets and opportunities evolve, we need to adapt and learn quickly. In July 2020, we introduced a simplified operating model with improved customer interfaces and agility. This positions us for growth in new sectors and increases our focus on digitalization and the energy transition. We also saw some changes to our executive leadership, with Vinayak Pai leading Europe, Middle East, Africa and Asia Pacific; and Karen Sobel leading the Americas. Tom Honan announced his decision to retire in July of 2021, and we thank Tom for his contribution to Worley. The safety and well-being of our people is our top priority. Our people have gone above and beyond to care for and help each other through COVID-19. We provided practical support and care to our people through a range of actions, including: providing greater flexibility to work remotely; and mental health assistance through our employee assistance program for all of our people. Our people and their capabilities are our competitive advantage. We are committed to be best-in-class capabilities to deliver for our customers and grow our position in target sectors. More than ever, we are supporting our people to develop their skills and leadership so they can adapt and thrive. We are also dedicated to creating a diverse and inclusive culture that truly unlocks brilliance. Throughout 2021, our people demonstrated how they rise to the challenge and deliver innovative solutions to complex problems. Executive remuneration supports our global strategy and culture. Our remuneration strategy is designed to support our strategy and drive sustainable outperformance over the short, medium and long term. It supports Worley's purpose, values, strategic objectives and risk appetite. We are a global business with significant operations and people in multiple countries, with nearly half of our senior leaders in North America. Our remuneration strategy must, therefore, be internationally competitive to attract, motivate, retain and mobilize the best people in the increasingly competitive global markets we serve. Our strategy creates strong shareholder alignment by incorporating significant equity components to encourage executives to behave like owners focus on creating long-term value and stay with us through business cycles. For fiscal year 2021, we made changes to the remuneration framework to eliminate elements our shareholders did not support and to strengthen the performance focus of our plans. We introduced a performance condition and extended the performance period for the deferred equity plan. We also extended the long-term incentive period by one year and review the comparative group for relative total shareholder return. I will now turn to the performance and remuneration outcomes for the year. The executive team worked tenaciously to support customers as the market conditions and COVID-19 impacted their businesses. Notwithstanding the many market challenges, people numbers and utilizations have remained strong. A dedicated focus on cash management has ensured a strong liquidity position. The Board is pleased with the continued performance of the business throughout this difficult period and commends the executive team. We highlight the following performance results compared to the objectives set by the Board in the STI scorecard. The underlying NPATA result was $281 million, reflecting the market challenges experienced throughout the year. Cash received was greater than statutory revenues. Health and safety expectations were met, and leadership in Health, Safety and Sustainability was strong. Our operating model changes delivered strong cost savings. We made good progress in diversity and inclusion. And despite the challenging business conditions, new businesses won in strategic priority sectors was excellent. This positions us well to grow our business in sustainability in FY 2022. In making decisions regarding FY 2021, we carefully reviewed the performance results compared to the stretch targets set at the beginning of the year. The Board has a policy to review underlying earnings measures for remuneration purposes to ensure our executives are being appropriately held to account for their actions and delivering the annual target. And we also consider investment and transformational opportunities without banks. For FY 2021, we excluded costs related to the ECR transition, transformation and restructuring costs, gains and losses from sales of business units, impairment of investments and government payments or subsidies in relation to COVID-19. Worley did not receive JobKeeper or other COVID-related support from the Australian government. Additionally, we consider a number of factors to determine the remuneration outcomes for the Chief Executive Officer and other executives and the extent to which any general Board discretion would be applied. This covered broader measures of performance and outcomes for our people, customers, shareholders, suppliers and communities. The Board did not apply discretion to remuneration outcomes. The Board considers the overall outcomes are a fair reflection of FY '21 performance. This has resulted in the CEO and other executives receiving an STI payout of 71% of target. Our long-term performance outcomes are disappointing. Earnings per share growth was negative 15.6%, and this is compound per annum above inflation over the last few years, and TSR relative to Worley peers was 46th percentile over the same period. As a result, no equity rights will vest under the FY 2019 long-term incentive plan. We will evolve the executive remuneration framework further in FY2022 to ensure it strongly aligns to; our remuneration strategy and principles; our strategy to transform and grow our business with our customers in sustainability; and to create our desired culture. Our remuneration framework will continue to have the same variable remuneration components and vesting timeframes. Our performance condition was introduced for the deferred equity program in FY 2021, and this will be retained. However, we will strengthen the framework by making the following key changes in FY '22. We will rebalance the remuneration mix to reduce the maximum cash STI to 150% of target and increase equity, with the majority weighted towards the LTI. These changes will improve alignment and competitiveness of our remuneration mix to our Australian and global peer groups. We will evolve the STI framework to drive our sustainability focus and to enable our transformation. As we transform our business, we will be very focused on delivering sustainable, long-term returns to shareholders and positive outcome for all of our stakeholders. Next year, we will review the LTI plan further to ensure it is well positioned to support this focus. We are committed to engage and communicate clearly with shareholders on the framework and any key changes we make. We continue to focus on keeping our people safe, satisfying our customers and ensuring our business remains strong for many years to come. Our purpose, delivering a more sustainable world, is clear and at the center of everything we do. Finally, I want to thank you, our shareholders, for your support over the year. I am pleased to engage with all shareholders about the matters set out in this report. Thank you very much.

Thank you, Tom. The resolution is shown on the presentation slide on your screen. Also on the slide are the proxies received in respect of this item. The Board recommends that shareholders vote in favor of Item 3. If you have any questions on these items, please submit them now if you've not have already done so. Nuala, can you please readout any written questions relating to this item?

There are no written questions on this item. We do have a phone call from Gary Barton of the Australian Shareholders' Association. Gary, would you please ask your question now?

Yes. Tom, just to start with, you've had a very interesting term as the Remuneration Manager, especially of the Jacobs acquisition, which doubled the workforce, you had COVID, and you've also received a strike against the company. I know we don't agree on everything, but I think, yes, a job well done. So like the question I have is about the short-term incentive. You're paying them, which you're paying in cash. Most companies pay a percentage as equity. We, as shareholders, like to see executives have skin in the game. Will the company consider changing this policy?

Tom, would you answer the question, please?

Thank you very much, John. And Gary, thank you for your kind words. And before I answer your question, let me just say, it has been a pleasure working with you. You are correct that we don't always agree, but I think as a company, we've listened, and your impact has been meaningful. To specifically respond to your question, I think there are two things I'd like to just make note for those attending this meeting. One is, we say this all the time, but Worley is a global enterprise. And we need to have a remuneration framework that is competitively -- that is competitive globally. That always -- that means at times, it isn't always perfectly in line with what you might see in an Australian-only business, but we're competing for talent on a global basis. Specifically, as you talk about the mix between cash and equity, we actually are in complete agreement with you. We think it's critically important that our senior executives act as owners, and a big portion of their compensation is in fact, in equity. If you look at FY '21, Gary, you'll see that 45% of the total remuneration of our CEO was in equity. A large portion of that is at risk with hurdles to be met. So I think we're in alignment there. And to see that you've had an impact, you'll see that in FY '22, we're actually recommending furthering -- the change that we're making will further shift the mix, where equity will be more than 50% of the total compensation of our executives. So having equity as part of our framework is critically important. And we'll continue to monitor all of the developments, and Emma will do this going forward, all developments to make sure that we're competitive and our executives act as owners, which I believe they do. So thank you very much, Gary.

Thank you, Tom. Are there any further questions?

There are no further questions.

Thank you, Nuala. I will remind you that voting on Items 2 to 5 will close after we address questions on Item 5. We now come to Item 4, which relates to the grant of deferred restricted share rights to Chris Ashton. If the grant is approved, the rights will make up won of the at-risk equity components of Chris' variable pay arrangements. The resolution is shown on the presentation slide on your screen, also on the slide of the proxies received in respect of this item. The Board, with Chris Ashton abstaining, recommends that shareholders vote in favor of Item 4. Nuala, can you please read out any written questions relating to this item.

There are no written questions on this item.

We'll now turn to verbal questions. Are there any questions for this item waiting on the phone line?

There are no verbal questions, John.

Thank you, Nuala. We now come to Item 5, which relates to the grant of long-term performance rights to Chris Ashton. This is the last item of business, so please ensure you vote now because the poll will close very soon and after this item. The resolution is shown on the presentation slide on your screen, also on the slide of the proxies received in respect of this item. The Board, with Chris Ashton abstaining, recommends that shareholders vote in favor of Item 5. If you have any questions on these items, please submit them now if you've not already done so. Nuala, can you please read out any written questions relating to this item?

There are no written questions on this item.

We'll now turn to verbal questions. Are there any questions for this item waiting on the phone line?

No, John. There are no further questions.

Thank you, Nuala. Please cast your votes for Items 2 to 5 now if you haven't already done so. I will close the poll in 1 minute. Please finalize your votes now. I will now play a short 2-minute video from our people. [Voting] [Presentation]

We hope you enjoyed that recording. Nuala, can you please confirm that the poll is closed?

Thank you, Chair. The returning officer has confirmed to me that the poll is now closed.

We will now take general questions. Nuala, can you please readout any questions from shareholders that have not already been addressed?

There are no written questions on the line or -- and there are no -- and I'm just checking with our moderator offline, John, to confirm there is no telephone call. Confirming, John, there are no further questions written or telephone.

Ladies and gentlemen, as there is no further business, I declare the meeting closed. The results of the meeting will be released to the ASX as soon as possible after this meeting. On behalf of the Board, I thank you all for attending the AGM and engaging with us before and during the meeting. Please stay safe.