Tecnicas Reunidas Sa · BME:TRE
Tecnicas Reunidas Sa — Tecnicas Reunidas Sa Ord — FY2023 Earnings Presentation
30 slides from Tecnicas Reunidas Sa's earnings presentation, Feb 29, 2024
Slide 1: FY 2023 Results
FY 2023 Results February 29th 2024 Juan Lladó – Executive Chairman Eduardo San Miguel - CEO
Slide 2: Index
Index 1 2023 Overall Outcome 2 2023 Business Performance 3 2023 Financial Results 4 Next Steps & 2024 Guidance 2
Slide 3: Index
Index 1 2023 Overall Outcome 2 2023 Business Performance 3 2023 Financial Results 4 Next Steps & 2024 Guidance 3
Slide 4: 2023 Overall Outcome
1. 2023 Overall Outcome Net Revenues EBIT Net Income €4.1bn €157m €60m vs €4.2bn in 2022 vs €9m in 2022 vs -€35m in 2022 Net Cash YTD Backlog Order Intake* €348m €11.4bn €6.1bn vs €158mn in 2022 vs €10.7bn in 2022 vs €1.7bn in 2022 4 * 2023 figure includes Riyas proyect award (€2bn): “kick-off” took
Slide 5: Riyas for Saudi Aramco
Riyas for Saudi Aramco Project awarded to the JV Técnicas Reunidas (65%)-SINOPEC (35%) Total EPC investment: $3.3 billion (TR’s scope amounts $2.2 billion) TR’s backlog risk mitigation strategy: Two EPCs to develop Riyas JV with Sinopec NGL Fractionation Facility in First outcome of the Alliance si
Slide 6: Index
Index 1 2023 Overall Outcome 2 2023 Business Performance Backlog Early Engineering Service Contracts Business Segments Main Project Achievements Key Strategic Milestones 3 2023 Financial Results 4 Next Steps & 2024 Guidance 6
Slide 7: Backlog
2. 2023 Business Performance 2.1. Backlog Backlog 15.000 (EURm) 12.000 11,407 9.000 6.000 3.000 0 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023* Successful 2023* awards have consolidated a more solid & fresh backlog * 2023 figure includes Riyas proyect award (€2bn): “kick-off” took place in Q4 2
Slide 8: Early Engineering Service Contracts
2. 2023 Business Performance 2.2. Early Engineering Service Contracts • TR has strengthened its position as a Number of pre-FEEDs, FEEDs & early key Technological Contractor engineering works awarded 56 • Dual Strategy achieved: o Consolidating client´s confidence to jointly shape and define their k
Slide 9: Business Segments
2. 2023 Business Performance 2.3. Business Segments Refining Natural Gas (EURbn) (EURbn) Weight in total backlog 2021 4.4 2021 6.7 3.5 2021: 41% 2022 2021: 40% 2022 2023: 17% 4.3 3.8 2023: 59% 2023 2.0 2023 Petrochemicals Low Carbon Technologies (EURbn) (EURbn) 2.8 2021 2.1 2021 0.6 1.9 2022 2021: 1
Slide 10: Main Project Achievements: Haradh
2. 2023 Business Performance 2.4. Main Project Achievements: Haradh, Duqm, SEWA and Exxon Outcome for Saudi Arabia: • An increase of daily gas production by 1.4 BSCFD • Additional 20 production years Total EPC contract value above EUR2.2 billion Despite remoteness, logistic difficulties and severe C
Slide 11: Main Project Achievements: Duqm
2. 2023 Business Performance 2.4. Main Project Achievements: Haradh, Duqm, SEWA and Exxon One of the largest investments carried out in Oman JV TR-Daewoo contract value amounted EUR2.9 billion (TR’s scope amounts EUR1.9 billion) Cornerstone of the Duqm Special Economic Zone, Oman’s next industrial c
Slide 12: Main Project Achievements: SEWA
2. 2023 Business Performance 2.4. Main Project Achievements: Haradh, Duqm, SEWA and Exxon • First independent combined cycle in Sharjah (UAE) and one of most efficient power plants in the Middle East • Total EPC contract value above EUR300 million • Fast track project executed in consortium with Gen
Slide 13: Main Project Achievements: Exxon
2. 2023 Business Performance 2.4. Main Project Achievements: Haradh, Duqm, SEWA and Exxon Yards (Thailand): • 19 out of 20 shipments delivered to Singapore with one of TR’s heaviest module ever erected (4,200 Tons) • 30 millions safe manhours achieved Site (Singapore): • 10 millions safe manhours ac
Slide 14: Key Strategic Milestones: TRACK, Alliance, Risk mitigation
2. 2023 Business Performance 2.5. Key Strategic Milestones TRACK Alliance TR-SINOPEC Risk mitigation in awards Resources evolution Financial position 14
Slide 15: Key Strategic Milestones
2. 2023 Business Performance 2.5. Key Strategic Milestones 1. Awards worth 2. New network of 3. New platforms (US 4. New services €300m for partnerships with and Europe) and new offered: project engineering licensors and industries (steel and development services technology providers cement) reached
Slide 16: Alliance TR - SINOPEC
2. 2023 Business Performance 2.5. Key Strategic Milestones Alliance TR - SINOPEC • Key partnership with one of the major EPC players in the industry • Initial Outcome: o Award of Riyas Development for Saudi Aramco (more than USD3.3 billion) o 6 jointly bids already submitted and 5 more in upcoming m
Slide 17: Risk mitigation in new awards
2. 2023 Business Performance 2.5. Key Strategic Milestones Risk mitigation in new awards 1 30% of TRs engineering 2 No construction scope or only 3 EPC through FEED or 4 Partnerships with other manhours capacity devoted to construction management competitive FEED: thorough engineering companies and
Slide 18: Resources evolution
2. 2023 Business Performance 2.5. Key Strategic Milestones Resources evolution Workforce Overhead costs (# of employees at the end of the year) (EURm) +25% -5% 102.7 9,174 7,311 7,848 97.3 92.7 2021 2022 2023 2021 2022 2023 Steady overhead costs optimization while reinforcing our engineering capacit
Slide 19: Financial position
2. 2023 Business Performance 2.5. Key Strategic Milestones Financial position Equity overview (EURm) • Equity position strengthening: Equity SEPI PPL o Successful EUR150m capital increase 175 achieved in Q2 2023 o Organic equity increase (EUR92m) ~400 • Balance sheet deleveraging 175 325 (14% decrea
Slide 20: Index
Index 1 2023 Overall Outcome 2 2023 Business Performance 3 2023 Financial Results 4 Next Steps & 2024 Guidance 20
Slide 21: 2023 Financial results: Highlights
3. 2023 Financial results 3.1. Highlights Revenues EBIT (EURm) (EURm) 157 Robust level of sales 4,233 4,135 9 EBIT goal achieved 2022 2023 2022 2023 Net cash position Net Cash Gross Debt gaining strength (EURm) (EURm) 348 802 Indebtedness scheduled 158 686 reduction achieved 2022 2023 2022 2023 21
Slide 22: Quarterly EBIT evolution
3. 2023 Financial results 3.2. Quarterly EBIT evolution • Confirmed recovery of margins quarter after quarter 4.0% 4.1% 3.7% 3.5% • Risk mitigation strategy starts 2.7% to deliver 2.3% • Successful project delivery • Cost efficiency mindset Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 (Transforma
Slide 23: Adjusted P&L
3. 2023 Financial results 3.3. Adjusted P&L 2023 2022 Net revenues 4,135.2 4,233.4 EBIT 156.6 8.7 Financial result* -36.9 -27.2 Income taxes -43.6 -15.9 Adjusted Net income* 75.6 -34.5 * Adjusted by the extraordinary non-cash item of €-15.9 million, related to a subsidiary liquidation during 2023 23
Slide 24: Cash & Indebtedness
3. 2023 Financial results 3.4. Cash & Indebtness +8% -14% +120% 960 1034 348 802 686 158 Gross cash Gross cash Gross debt Gross debt Net cash 2022 Net cash 2023 31.12.22 31.12.23 31.12.22 31.12.23 Balance sheet deleveraging (=future lower debt service in P&L) 24
Slide 25: Index
Index 1 2023 Overall Outcome 2 2023 Business Performance 3 2023 Financial Results 4 Next Steps & 2024 Guidance 25
Slide 26: Next Steps
4. Next Steps & 2024 Guidance 4.1. Next Steps Convert solid performance into shareholders value • Reinforce a cash flow driven business model • Strengthen service contract business line • Consolidate TR’s energy transition through “track” 26
Slide 27: 2024 Guidance
4. Next Steps & 2024 Guidance 4.2. 2024 Guidance ~€4.5bn 4% SALES EBIT MARGIN 27
Slide 28: Save the Date: Capital Markets Day
SAVE THE DATE Capital Markets Day 22nd – 24th May, 2024 Abu Dhabi, UAE
Slide 29: Slide 29
Slide 30: 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. This document contains forward-looking statements of the Company and/or its management. These forward-looking statem
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