Tecnicas Reunidas Sa · BME:TRE
Tecnicas Reunidas Sa — Q1 2021 Earnings Presentation
19 slides from Tecnicas Reunidas Sa's earnings presentation, May 13, 2021
Slide 1: Q1 2021 Results Presentation
Q1 2021 RESULTS PRESENTATION MAY 13TH 2021 JUAN LLADÓ CHAIRMAN
Slide 2: Preparing for the new investment wave in a transition year
PREPARING FOR THE NEW INVESTMENT WAVE IN A TRANSITION YEAR CHALLENGING IMMEDIATE ENVIRONMENT AWARDS ➢ Delivering projects ➢ Major investment wave ➢ Covid impact ➢ Materialized awards ➢ Active management ➢ Already in the energy transition 2
Slide 3: Challenging environment
PREPARING FOR THE NEW INVESTMENT WAVE IN A TRANSITION YEAR CHALLENGING ENVIRONMENT ➢ Delivering projects ➢ Covid impact ➢ Active management 3
Slide 4: Our delivery track record: a history of trustable execution
OUR DELIVERY TRACK RECORD: A HISTORY OF TRUSTABLE EXECUTION Most challenging environment > delivering projects ➢ 2021: delivery of large and strategic projects FADHILI AL ZOUR RAS TANURA o TR’s contract value: $3,000m o TR’s contract value: $2,000m o TR’s contract value: $1,600m o One of the biggest
Slide 5: On-going impact of Covid: UK Teesside biomass plant
ON-GOING IMPACT OF COVID: UK TEESSIDE BIOMASS PLANT Most challenging environment > Covid ➢ Contract termination by client on 11th May ➢ Highly complex environment faced since the project beginning (Brexit and Covid) ➢ Scrupulous compliance of HSE standards in specially challenging UK Covid environme
Slide 6: Q1 2021 EBIT
Q1 2021 EBIT Most challenging environment > active management Q1 2021 EBIT €M 5.7% +2 -12 43 +103 -50 EBIT Covid UK Other Covid Restructuring Adjusted (Teesside) impact costs EBIT 6
Slide 7: TR-ansforma: the outcome of our active cost management
TR-ANSFORMA: THE OUTCOME OF OUR ACTIVE COST MANAGEMENT Most challenging environment > active management Expected savings for 2021 Full activity year Corporate restructuring €8M €11M Rentals reduction €6M €9M Project execution €26M €50M €40M €70M 7
Slide 8: Cash management
CASH MANAGEMENT Most challenging environment > active management Net cash position €M ➢ Cash evolution depends on: 197 155 o Delivery of large projects in process 113 63 o Reprogrammed projects H1 2020 9M 2020 FY 2020 Q1 2021 o New awards 8
Slide 9: Q1 2021 figures illustrate a transition scenario
Q1 2021 FIGURES ILLUSTRATE A TRANSITION SCENARIO Sales €763m EBIT €-50m Adjusted EBIT* €43m Adjusted EBIT margin* 5.7% Net cash €63m YTD Order intake €1.9bn YTD Backlog €10.2bn *Adjusted EBIT includes net UK Covid impact (€103m), net ex-UK Covid impact (€-12m) and restructuring costs (€2m) 9
Slide 10: Immediate awards
PREPARING FOR THE NEW INVESTMENT WAVE IN A TRANSITION YEAR IMMEDIATE AWARDS ➢ Major investment wave ➢ Materialized awards ➢ Already in the energy transition 10
Slide 11: The market sees a new wave of investments to keep up with demand
THE MARKET SEES A NEW WAVE OF INVESTMENTS TO KEEP UP WITH DEMAND Immediate awards > major investment wave “There are more reasons to “We are increasingly optimistic be optimistic that better days on the macroeconomic scenario are coming.” for 2021.” (Saudi Aramco) (Repsol) Sector confidence about ac
Slide 12: €50bn pipeline
THE MARKET SEES A NEW WAVE OF INVESTMENTS TO KEEP UP WITH DEMAND Immediate awards > major investment wave €50bn pipeline Well positioned for immediate awards ➢ Firmly confident on more than full replacement of 2021 sales: o Expected order intake €4bn+ ➢ Activity in 2021: top-ranked bidder in €7.5bn
Slide 13: YTD awards
YTD AWARDS Immediate awards > materialized awards SASA €600m Petrochemical plant (PTA) in Turkey for SASA Polyester YTD Order intake Olefins plant in Europe €1,000m €1.9bn Petrochemical plant (client undisclosed) Energy transition (waste to methanol) >€200m YTD backlog Biofuel plant in Amsterdam for
Slide 14: Well positioned for €7.5bn immediate awards; €1.9bn already awarded
WELL POSITIONED FOR €7.5BN IMMEDIATE AWARDS; €1.9BN ALREADY AWARDED Immediate awards > materialized awards Natural Gas SASA* Delayed Coker Middle East Europe Europe >€400m Petrochemical complex €600m >€200m Europe >€1,700m Energy transition* Power plant Petrochemical complex Europe Latam Europe >€20
Slide 15: We are present in all the major decarbonization technologies
WE ARE PRESENT IN ALL THE MAJOR DECARBONIZATION TECHNOLOGIES Immediate awards > already in the energy transition Energy transition pipeline: €3.0bn ➢ Agreement with oil major for green/blue hydrogen in refining operations Hydrogen ➢ Engineering services for use of green hydrogen in transport in Spai
Slide 16: 2021 guidance: sales, adjusted EBIT margin, awards
PREPARING FOR THE NEW INVESTMENT WAVE IN A TRANSITION YEAR CHALLENGING IMMEDIATE ENVIRONMENT AWARDS SALES Range of €3.5bn ADJUSTED EBIT margin Around 3.0% AWARDS €4bn+ *Assuming current COVID conditions and trends 16
Slide 17: Tecnicas Reunidas
y TECNICAS REUNIDAS
Slide 18: Pipeline analysis
PIPELINE ANALYSIS Pipeline per division Pipeline per geography 14% 9% 5% Clean Fuels Middle East 6% Petrochemical Asia 5% Energy Transition Europe 38% Natural Gas 32% 39% Africa Other LatAm 37% 6% Pipeline per calendar North America (expected award date) 9% 18% 20% Q2 2021 H2 2021 H1 2022 19% H2 202
Slide 19: 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 statemen