Tecnicas Reunidas Sa · BME:TRE
Tecnicas Reunidas Sa — H1 2020 Earnings Presentation
13 slides from Tecnicas Reunidas Sa's earnings presentation, Jul 29, 2020
Slide 1: First Half 2020 Results Presentation
FIRST HALF 2020 RESULTS PRESENTATION JULY 29TH 2020 JUAN LLADÓ CEO
Slide 2: Content
CONTENT ➢ Backlog with outstanding clients ➢ Managing execution under COVID ➢ Optimization and efficiency ➢ H1 2020 results ➢ Healthy financial position ➢ Pipeline and outlook 2
Slide 3: Backlog with outstanding clients
BACKLOG WITH OUTSTANDING CLIENTS €10.1 Bn Backlog > 2x annual sales ▪ First tier industrial customers 55% ▪ Privileged and 40% longstanding relationship ▪ Recurrent customers 5% Upstream Downstream Power 3
Slide 4: Managing execution under COVID
MANAGING EXECUTION UNDER COVID ▪ Managing COVID: project by project, month by month o Engineers back in home office o Improvement in logistics and fabrication o Adjusting labour mobilisation o Cash management through the supply chain ▪ Efficient adjustment to customer demands 4
Slide 5: Managing execution under COVID: Duqm (May 2020)
MANAGING EXECUTION UNDER COVID Duqm (May 2020) Vacuum distillation unit erection 5
Slide 6: Managing execution under COVID: Haradh (May 2020)
MANAGING EXECUTION UNDER COVID Haradh (May 2020) Panoramic view and flare stack erection 6
Slide 7: TR-ansforma: changing our management approach
TR-ANSFORMA: CHANGING OUR MANAGEMENT APPROACH Corporate costs reduction Efficient procurement and ▪ Actively working in subcontracting optimization initiatives since mid 2019 Cost reduction in workforce, on site and home office ▪ Increasing the initial scope: finding new Strengthening planning, cost
Slide 8: H1 2020 Results
H1 2020 RESULTS PROFIT AND LOSS ▪ Impact of COVID in € Million H1 2020 H1 2019 Var. revenues Revenues 2,108.7 2,216.7 -4.9% ▪ EBIT Margin EBIT 33.1 27.4 +20.8% o Favoured by newer Margin 1.6% 1.2% project margins, Net financial results -12.5 -6.3 TR-ansforma plan and Profit before taxes 20.1 19.3 +4
Slide 9: Healthy financial position
HEALTHY FINANCIAL POSITION Net Cash Position €M ▪ Clients adapting cash 419 payment to COVID scenario 370 ▪ Strengthened balance sheet and liquidity position 250 o €437 million refinanced in 219 215 favorable conditions (2024 154 maturity) Q1 2019 Q2 2019 Q3 2019 2019 Q1 2020 Q2 2020 9
Slide 10: Ongoing pipeline opportunities
ONGOING PIPELINE OPPORTUNITIES B$ in 42 opportunities 5% 7% 10% 47% 18% 48% 65% Natural gas Clean fuels and petchem Bio fuels and renewables Africa and M East Europe Americas Asia 10
Slide 11: Business and market outlook
BUSINESS AND MARKET OUTLOOK ✓ TR is well positioned: ▪ Backlog with outstanding customers ▪ Managing execution under Covid ▪ Achieving results in the cost optimization and efficiency plan ▪ Healthy financial position ▪ Ongoing pipeline ✓ Facing the future with prudent optimism 11
Slide 12: Disclaimer
DISCLAIMER This document has been prepared by Técnicas Reunidas S.A. (the Company) solely for use at presentations held in connection with the announcement of the Company's results for the first half of 2020. This document contains forward-looking statements of the Company and/or its management. The
Slide 13: Tecnicas Reunidas
J TECNICAS REUNIDAS