Gaztransport & Technigaz Sa · EURONEXT:GTT
Gaztransport & Technigaz Sa — FY2022 Earnings Presentation
55 slides from Gaztransport & Technigaz Sa's earnings presentation, Feb 17, 2023
Slide 1: FY 2022 Results
FY 2022 Results TECHNOLOGY FOR A SUSTAINABLE WORLD 17 February 2023
Slide 2: Disclaimer
Disclaimer This presentation does not contain or constitute an offer of securities for sale or an invitation or inducement to invest in securities in France, the United States or any other jurisdiction. It includes only summary information and does not purport to be comprehensive. No representation,
Slide 3: Agenda
Agenda 01 02 03 04 05 Company Focus on Strategy & Financials Outlook overview R&D activity 3
Slide 4: Company overview
1 Company overview
Slide 5: GTT Group: Technology for a sustainable world
GTT Group: Technology for a sustainable world Our Conviction Our Mission Our Key Assets Technology is the most efficient Conceive cutting-edge • Human capital: enabler of the energy transition technological solutions unique combination of skills • PEM electrolysers to help building a sustainable wor
Slide 6: GTT's excellence is central under the current energy crisis
GTT’s excellence is central under the current energy crisis 2022 European energy crisis A fast-evolving LNG eco-system • Securing energy supply in the short term • +45% shipyards capacity (LNG eq.120 Mtpa to be replaced) • 4 new active Chinese shipyards • Diversification of energy supply sources • N
Slide 7: Developing adjacent technological solutions for maritime decarbonisation
Developing adjacent technological solutions for the acceleration of maritime industry’s decarbonisation LEVERAGING ON GTT’S TECHNOLOGICAL EXPERTISE 2018 2022 Addressable market Decarbonisation Innovations CO2: -23% vs HFO 2 42 3,500 vessels over No SOx - No NOx LNG as Fuel RecycoolTM orders orders a
Slide 8: Anticipating & enabling a net-carbon future
Anticipating & enabling a net-carbon future Elogen: designing the most efficient electrolyser HYDROGEN and getting ready for mass production LH2 carrier project Ammonia-ready containment systems FURTHER Carbon capture systems dedicated to vessels DECARBONISE And more, through minority stakes in inno
Slide 9: ESG: becoming a strong sustainability partner for our stakeholders
ESG: becoming a strong sustainability partner for our stakeholders A SUSTAINABILITY ROADMAP BASED ON THREE PILLARS 2022 achievements: strengthening ESG Governance • Strategic Committee supervising sustainability policy and targets • Anti-corruption (renewal of ISO 37001 1. Sustainability 2. Innovati
Slide 10: GTT: Towards a zero-carbon future
GTT: Towards a zero-carbon future Carbon capture 6. Transformation LH2 transportation Hydrogen Electrolysers Gas handling technologies Recycool™ Evolution of 2. Improvement GTT systems: NO96 Super+ 1. Intensification Mark III Flex+ Smart shipping Offshore Multigas GBS Weather routing Onshore Advisor
Slide 11: GTT Strategic Ventures
GTT Strategic Ventures Structure dedicated to minority investments in technology start-ups whose innovations have the potential to contribute to First investments the Group's strategic roadmap Named GTT Strategic Ventures, the structure has a budget of • GTT's minority investment in Tunable, €25 mil
Slide 12: Focus on R&D
Focus on R&D Git
Slide 13: R&D and Innovation: At the core of the GTT group
R&D and Innovation At the core of the GTT group ~10% of revenues over the 1st place of mid-size 60+ ongoing R&D projects last 10 years on average companies for patent Involvement in innovation applicants at the INPI, for 160+ employees focus programs, the third consecutive year on R&D GTT Group Inno
Slide 14: Core Business Innovation: Focus on three-tank LNGC
Core Business Innovation Focus on three-tank LNGC AN INNOVATIVE DESIGN OFFERING KEY ADVANTAGES FOR STAKEHOLDERS COMPARED TO THE CONVENTIONAL FOUR-TANK DESIGN Shipyards Shipowners Charterers • Savings • Savings • Improved BOR • Building time • Capex performance; reduction i.e. lower opex • Delivery t
Slide 15: Zero-Carbon Solutions Innovation: Important milestone in LH2 transportation
Zero-Carbon Solutions Innovation Important milestone in LH2 transportation Cooperation agreement with Shell DNV has issued 2 Approvals in Principle for: • the design of a membrane type containment system for liquefied hydrogen • the preliminary concept design of a LH2 carrier (10k) Paving the way fo
Slide 16: Onboard Carbon Capture: MERVENT 2025
Zero-Carbon Solutions Onboard Carbon Capture: MERVENT 2025(1) Project: design, build and operate, by 2025, the first commercial container ship with hybrid wind-assisted and synthetic fuel propulsion GTT contribution to the project: • Conception of an innovative system for CO2 capture with prototype
Slide 17: Development of hydrogen engine
Zero-Carbon Solutions Development of hydrogen engine HyMot consortium project: intensify research on the development of a hydrogen engine for lightweight utility vehicles with the support of ADEME(1) OSE Engineering contribution to the project: • Characterisation of users and uses of lightweight uti
Slide 18: R&D and Innovation Roadmap
R&D and Innovation Roadmap Business Further reducing LNGC CO2 footprint Improvement of containment system performance Core Enabling better energy efficiency and reducing vessel construction & operating costs 3-tank design GTT Next1 Offering the best technologies as Fuel Recycool Onboard Carbon Captu
Slide 19: Strategy and activity: LNG carriers and other core applications
3 Strategy and activity LNG CARRIERS AND OTHER CORE APPLICATIONS
Slide 20: A combination of growth drivers will boost LNG Carrier demand
A combination of growth drivers will boost LNG Carrier demand LNG Carriers LNG Natural Gas • Coal-to-gas switch • Pipe-to-LNG switch: flexibility, • Acceleration of replacement market Growth drivers (environment) security of supply and reduced due to environmental regulations • Complementarity depen
Slide 21: LNG demand: strong growth expected by 2040
LNG demand: strong growth expected by 2040 LNG DEMAND OUTLOOK LNG SUPPLY/DEMAND BALANCE 800 CAGR 2022-2040: 2.8-3.5%/y 800 BP New Momentum CENTRAL 700 Shell 700 SCENARIOS Wood Mackenzie 600 600 Supply/Demand Gap NET ZERO c.240-325 Mtpa 500 BP Accelerated 500 COMMITMENT IEA Stated Policies Mtpa Mtpa
Slide 22: LNG supply: 2022 strong SPA expected to lead to FIDs in 2023
LNG supply: 2022 strong SPA expected to lead to FIDs in 2023 SPA PROJECT CONTRACTING 4 FIDs taken in 2022, representing c.28 Mtpa • 2 onshore projects (SPA) 100% FID Corpus Christi Stage III (10.5 Mtpa), US − Corpus Christi Stage III (US), 10.5 Mtpa − Plaquemines Phase 1 (US), 13 Mtpa FID Plaquemine
Slide 23: New environmental regulation: accelerating fleet renewal and sustaining orders
New environmental regulation: accelerating fleet renewal and sustaining orders …MAINLY COMPOSED BY OLDER AN AGING FLEET OF LNGCS… ENGINE TECHNOLOGIES… 60 CII regulation (IMO): from January 2023, # LNGCs deliveries 50 40 a vessel rated E for 1 year can no 30 MEGI/XDF longer be operated without correc
Slide 24: Latest GTT technologies enable higher savings than ever
Latest GTT technologies enable higher savings than ever BOIL OFF GAINS THANKS TO GTT EFFICIENT TECHNOLOGIES (MARK III FLEX+ VS MARK III) In 2022, owners with Mark III Flex+ 60 6 and with no reliq have saved $37m/y $100k/d 50 5 • High performing Containment Systems more European spot LNG price Mont
Slide 25: Long term estimates for GTT orders
Long term estimates for GTT orders ESTIMATED GTT CUMULATED ORDERS OVER 2023-2032 LNGC Between 400 & 450 units VLEC Between 25 & 40 units FSRU Up to 10 units(1) FLNG 5 units Onshore & GBS tanks Between 25 & 30 units (1) Exclude conversion of existing LNG carriers into FSRU 2022 Full Year Results Pres
Slide 26: Strategy and activity: LNG as fuel
3 Strategy and activity LNG AS FUEL
Slide 27: LNG as a fuel: 2022 record orders for GTT
LNG as a fuel: 2022 record orders for GTT LNG as a fuel represented 56% 7K + TEU CONTAINERSHIPS ORDERS of 7k+ TEU containerships in 2022 • Market share doubled vs 2021 (56% vs 26%) 120 60% 100 50% Record orders received by GTT in 2022 with 42 containerships # 7k+ TEU LNG fueled orders • 44% Market s
Slide 28: LNG: best way to comply with new environmental regulation
LNG: best way to comply with new environmental regulation LNG compliant until 2035-2040 • Immediate 20-25% CO2 reduction vs Diesel • This gain enables a reasonable and LNG AND METHANOL TRAJECTORY VS FUEL progressive incorporation of bio and e- LNG EU MARITIME REGULATION Methanol is not compliant tod
Slide 29: Strategy and activity: Digital solutions
3 Strategy and activity DIGITAL SOLUTIONS
Slide 30: Digital solutions: Optimising energy efficiency & safety for sustainable ships
Digital solutions: Optimising energy efficiency & safety for sustainable ships Leveraging GTT’s key assets… • Naval architecture • Marine engineering • Unique LNG expertise • Industrial-grade standards …to develop state-of-the-art digital solutions… • Vessel performance • Electronic fuel management
Slide 31: Digital Solutions: Focus on key innovations
Digital Solutions Focus on key innovations ExxonMobil approves Lloyd’s Register’s AiP Lloyd’s Register’s AiP Launch of a new advanced Ascenz’ Electronic Fuel for the new “POWER” digital for LNG membrane tanks Route Optimisation solution Monitoring System solution solution to optimize ship-to- predic
Slide 32: Digital Solutions: Focus on 2022 key commercial milestones
Digital Solutions Focus on 2022 key commercial milestones EFMS Smart bunkering End-to-end (Electronic Fuel Management System) solution digital solutions First contract with a major First contract in Europe New contracts with a major Mexican shipowner to equip with a major ferry owner player for more
Slide 33: Strategy and activity: Elogen
3 Strategy and activity ELOGEN
Slide 34: In 2022, Elogen successfully completed key milestones
In 2022, Elogen successfully completed key milestones IPCEI Key figures • Elogen has been awarded a €86m State support (IPCEI(1) scheme) kicking off its industrial transformation 2022 Order Intake 2022 Revenues(2) • Massification : gigafactory will allow standardization, cost reduction and increased
Slide 35: New flagship contracts signed by Elogen
New flagship contracts signed by Elogen First double-digit project (10 MW) First offshore project (2.5 MW) • With Enertrag SE, the European specialist in renewable • With CrossWind, a joint venture between Shell and Eneco1 for energy solutions (1,857 MW in operation), for the supply the supply of a
Slide 36: Elogen's electrolyser current efficiency is best-in-class
Elogen’s electrolyser current efficiency is best-in-class BENCHMARK OF ELOGEN ENERGY EFFICIENCY AGAINST PEM COMPETITION 50 51 52 53 Electrolyser Efficiency 54 55 56 57 58 Player 1 Player 3 Player 5 59 Player 2 Player 4 Elogen 60 0 1 2 3 4 5 6 7 Electrolyser Capacity (MW) Continuous R&D on innovative
Slide 37: Green hydrogen expected growth to require additional production capacity
Green hydrogen expected growth to require additional production capacity HYDROGEN DEMAND GROWTH SCENARII BY 2050 500 4500 A significant market potential for electrolysers in all CAGR 2019-2050: 2.4 to 6.3%/y scenarios 4000 BP « Net Zero » • Up to 300 GW of electrolysers required by 2030*, and up to
Slide 38: Many projects select PEM as the preferred technology
Many projects currently under discussion select PEM as the preferred technology ELECTROLYSER PROJECTS BY STATUS AND TECHNOLOGY 16 80% PEM technology is the most suitable to produce green H2 from renewables and target cost parity 14 70% with grey H2 12 60% • Most suitable technology for renewable ene
Slide 39: Preparing for tomorrow while keeping its costs under control
Preparing for tomorrow while keeping its costs under control Electrolyser market is still in investment phase • All players in negative EBITDA area • Elogen’s EBITDA breakeven expected to be achieved from mid-decade Elogen aims at limiting cash consumption by • Selecting contracts • Managing costs B
Slide 40: Financials
4 Financials
Slide 41: 2022 orderbook: a new record of orders
2022 orderbook: a new record of orders Order book Dec. 2021 FY 2022 new orders FY 2022 deliveries Order book Dec. 2022 (1) LNGC 137 +162 (28) 256(1) VLEC 6 +2 (4) 4 FSRU 0 +1 - 1 FSU 2 - - 2 FLNG 1 - (1) 0 Onshore Storage 12 - (1) 11 3 - - 0 (1) GBS +165 (34) GTT order book movements (core business)
Slide 42: 2022 core business orderbook: a high visibility over the next 4 years
2022 core business(1) orderbook: a high visibility over the next 4 years ORDER BOOK IN UNITS ORDER BOOK BY YEAR OF DELIVERY (UNITS PER YEAR) Order book at Dec. 31, 2020 In units In units Order book at Dec. 31, 2021 84 Order book at Dec. 31, 2022 72 76 274 57 45 42 147 161 28 17 12 6 0 0 As at Dec. 3
Slide 43: FY 2022 Consolidated Revenues
FY 2022 Consolidated Revenues SUMMARY REVENUES KEY HIGHLIGHTS in €m 2021 2022 Change (%) Revenues in line with expectations, Total Revenues 314.7 307.3 -2.4% Q4 22 revenue growth (+14.1% vs Q4 21) • 2022 revenues from newbuilds (royalties): Newbuilds 292.4 279.5 -4.4% − €279.5 million, -4.4% vs 2021
Slide 44: FY 2022: Stable cost base
FY 2022: Stable cost base GTT CONSOLIDATED OPERATIONAL COSTS KEY HIGHLIGHTS in €m 2021 2022 Change (%) Goods purchased (12.7) (13.5) +6.3% Goods purchased (+€0.8 million vs 2021) % of revenues -4% -4% €14M • Slight increase due to Elogen Subcontracted Test and Studies (27.6) (26.9) -2.5% Rental and
Slide 45: FY 2022: Financial performance in line with expectations
FY 2022: Financial performance in line with expectations SUMMARY CONSOLIDATED ACCOUNTS KEY HIGHLIGHTS in €m 2021 2022 Change (%) Total Revenues 314.7 307.3 -2.4% EBITDA (-6.4% vs 2021) EBITDA(1) 172.2 161.1 -6.4% €161M • In line with the decrease Margin (%) 54.7% 52.4% in revenues from core business
Slide 46: 2022 Dividend: in line with guidance
2022 Dividend: in line with guidance 2018 2019 2020 2021 2022 Consolidated net profit (IFRS) €142.8 M €143.4 M €198.9 M €134.1 M 128.3 Net earnings per share(1) €3.85 €3.87 €5.36 €3.63 €3.48 86% 89% 84% 81% 80% Pay-Out(2) 4.29 Dividend 3.12 3.25 3.10 3.10 Amount 1.79 1.79 1.75 1.75 1.55 Balance divi
Slide 47: Outlook
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Slide 48: 2023 Outlook
2023 Outlook Revenue 2023 consolidated revenue estimated in a range of €385M to €430M EBITDA 2023 consolidated EBITDA estimated in a range of €190M to €235M Dividend 2023 dividend payout of at least 80% of consolidated net income Payment(1) Note: In the absence of any significant delays or cancellat
Slide 49: Appendices
Appendices
Slide 50: CII: emissions in operation – CO2/ton mile transported
CII: emissions in operation – CO2/ton mile transported Annual rating • From 2023: Annual rating (A to E), with first results in May 24 • Each ship needs to be better than C • If rating D for 3 consecutive years or rating E for 1 year: develop and implement an approved corrective action plan (SEEMP)
Slide 51: LNGC: CII reduction factor & other
LNGC: CII reduction factor & other Discount applied to consumption of reliq / cargo cooling systems • Agreed at MEPC 78 • 75% discount in 2023, and reduces 3%/y to reach 0% discount in 2048 NB: Largely favors Qmax/Qflex who reliquefy 100% of the BOG (6MW reliq) Discount for N2 boil off • N2 in the c
Slide 52: Elogen growth to rely on its three strategic pillars
Elogen growth to rely on its three strategic pillars PRODUCTION MASSIFICATION R&D • Production scale-up at Les • Increased efforts toward products Currently Ulis (160 MW) standardisation • Portfolio development Maximise - Reaching large stack capacities technological - Optimized features by market e
Slide 53: Update on GTT Russian exposure
Update on GTT Russian exposure Projects being built in Russia Projects dedicated specifically to LNGC projects for Russia, Arctic conditions, built in Asia built in Asia, able to operate • 15 ice-breaking LNGCs (Zvezda): in all types of conditions contract suspended since January, 8th, • 6 ice-break
Slide 54: An attractive business model supporting high cash generation
An attractive business model supporting high cash generation Invoicing and revenue recognition Business model supports high cash generation % of contract (1) Revenue is recognized pro-rata temporis c. 9 to12 months c. 18 months Delivery between construction milestones 10000 studies royalties Initial
Slide 55: Glossary
Glossary The following abbreviations have been used throughout this document BOR Boil Off Rate FSU Floating Storage Unit MEGI M-type, Electronically Controlled Gas Injection APAC Asia-Pacific GBS Gravity Based Structure Mtpa Million tons per annum CAGR Compound Annual Growth Rate GHG Greenhouse Gase
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