Technip Energies Nv · EURONEXT:TE
Technip Energies Nv — Q1 2023 Earnings Presentation
37 slides from Technip Energies Nv's earnings presentation, May 4, 2023
Slide 1: Forging Leadership in the energy transition markets
Forging Leadership in the energy transition markets Q1 2023 Results
Slide 2: Forward looking statements
Forward looking statements This Presentation contains forward-looking statements that reflect Technip Energies’ (the “Company”) intentions, beliefs or current expectations and projections about the Company's future results of operations, anticipated revenues, earnings, cashflows, financial condition
Slide 3: Welcome
Welcome Business highlights Arnaud Pieton CEO Financial highlights Bruno Vibert Outlook CFO Technip Energies – Q1 2023 Results 3
Slide 4: Business highlights
Business highlights Arnaud Pieton - CEO Technip Energies – Q1 2023 Results 4
Slide 5: Q1 2023 – Key highlights
Q1 2023 – Key highlights A strong platform to deliver full year objectives Solid operational progress, Sustained commercial A new integrated company to strong profitability and momentum in TPS with drive green H2 industrialization underlying free cash flow book-to-bill of 1.61 € 1.4bn Adjusted reven
Slide 6: Key operational highlights
Key operational highlights Delivering key milestones in Project Delivery and Technology, Products & Services LNG Downstream • Corinth MOH refinery: New complex in • Qatar Energy NFE: Deliveries and operation less than 35 months after installation of mechanical equipment. contract signature. Launch o
Slide 7: Q1 awards, front-end positioning and partnerships
Q1 awards, front-end positioning and partnerships Momentum sustained for TPS orders, expanding technology offering in blue H 2 LNG Ethylene Clean fuels • Electric-Driven Xi’An LNG, China • QatarEnergy / CPChem , Ras Laffan • LanzaTech DRAGON proj ect, UK – FEED for 79 KTA SAF4 facility utilizing • S
Slide 8: Financial highlights
Financial highlights Bruno Vibert - CFO Technip Energies – Q1 2023 Results 8
Slide 9: Solid Q1 2023 performance
Solid Q1 2023 performance € 1.4bn 7.6% € 0.45 Adjusted revenue Adjusted recurring EBIT margin Adjusted diluted EPS Q1 2022: € 1.6bn Q1 2022: 6.6% 0.41 Q1 2022: € Q1 2023 financial highlights € 0.7bn € 12.0bn € 2.8bn Adjusted order intake Backlog Adjusted net cash Q1 2022: € 0.6bn Q1 2022: € 15.6bn Q
Slide 10: Project Delivery
Project Delivery Sustained excellence in execution in our long cycle segment Revenue Recurring EBIT Backlog in € million in € million in € million • Revenue: continued ramp-up on Qatar - 26% - 14% - 32% NFE more than offset by loss of revenue associated with Russia LNG projects. 14,427 • Margin: +11
Slide 11: Technology, Products & Services
Technology, Products & Services Substantial backlog increase reinforces revenue growth trajectory Revenue Recurring EBIT Backlog in € million in € million in € million +X% • Revenue: significantly higher technology + 37% + 52% + 84% and product related volumes, and strong engineering services activi
Slide 12: Other key metrics and balance sheet
Other key metrics and balance sheet Higher Y/Y due to incremental costs associated with Corporate costs €16.0 million strategic projects and pre-development initiatives. Income Statement Net financial income €20.4 million Reflects higher interest income on cash deposits. Non-cash impact of deconsoli
Slide 13: Strong underlying cash flows
Strong underlying cash flows Cashflow bridge in € million • Operating cash flow: €(134) million; Free cash flow1: €(142) million, impacted by €264 million working capital outflow: • Project Delivery portfolio maturity, absence of large awards in recent quarters, ALNG2 close-out activities. • Free ca
Slide 14: Outlook
Option 2 Outlook Arnaud Pieton - CEO Technip Energies – Q1 2023 Results 14
Slide 15: T.EN & John Cockerill to create Rely
T.EN & John Cockerill to create Rely A new company accelerating green H2 industrialization • T.EN joining forces with a leading electrolyzer provider and experienced industrial company. • Unique combination of technology, engineering, and equipment manufacturing know-how. • Industrially and geograph
Slide 16: Integrated green H2 solutions for decarbonization
Integrated green H2 solutions for decarbonization Low carbon Integrated H2 Transformation O&M1 Key end power generation markets Green eFuels Electrolysis ammonia Refining & Fertilizers PetChem Wind € Liquified H2 Operations & Maintenance Grid Steel Transport Balance eNaturalGas eMethanol of Plant So
Slide 17: Unlocking the Green H2 market
Unlocking the Green H2 market • Breaking cost barriers through integrated offering with standardized and configurable solutions combined with technical and financial advisory. Bridging green electrons • Innovation platform to develop BoP1 and electrolyzer technologies of the future; to accelerate im
Slide 18: Our path to a net zero 2050
Our path to a net zero 2050 Scope 1 & 2 Scope 3 Avoided emissions • 11% reduction in 2022 vs 2019 • Scope 3 upstream reported with • 7.3MtCO2eq avoided for clients in 2022 1 • Five-point action plan to optimize methodology aligned with GHG Protocol: • Includes projects with CO2 capture in buildings
Slide 19: Key takeaways
Key takeaways First quarter results demonstrate strong momentum in TPS and provide a solid platform to deliver our full year objectives Forging Preparing T.EN’s future core with the creation of Rely, an ambitious and innovative new company for an emerging green H2 market Selectively addressing core
Slide 20: Q&A
Q&A Technip Energies – Q1 2023 Results 20
Slide 21: Appendix
Option 2 Appendix Technip Energies – Q1 2023 Results 21
Slide 22: Corporate structure overview
Corporate structure overview Independent engineering & project development company ~90% • 60% owned & controlled by T.EN, 40% by John Cockerill. • Governance: Board of Directors with representatives from T.EN (4), John Cockerill (3), and 1 independent. 60% 40% ~10% Joint innovation platform IP / • U
Slide 23: Integrated green H2 solutions for decarbonization
Integrated green H2 solutions for decarbonization Robust Integrated offering Innovation investment Strong ambitions Foundations unlocking the market for long-term to 2030 and beyond • Access to 200+ H2 specialists • Industrial scale solutions • Drive sustainable economics • To be the leading company
Slide 24: Unique Innovation Platform
Unique Innovation Platform To deliver continued technology enhancements A common R&D platform LCOH1 Benefit Utility scale • Integrated technology and engineering resources. solutions Future electrolysis • To develop optimised green H2 solutions including balance technology of plant and balance of si
Slide 25: Rapid demand growth for green H2 expected through 2030
Rapid demand growth for green H2 expected through 2030 Green hydrogen demand Market shift towards large projects Key end markets for hydrogen Global Green H2 and derivatives expected growth Electrolyzer orders (at FID) % of total GW (GW, cumulative) Refining & PetChem Fertilizers >€200bn Capex, cumu
Slide 26: Full company guidance for 2023
Full company guidance for 2023 Profitability consistent with framework outlined at Capital Markets Day1 Effective Revenue EBIT margin tax rate €5.7 - 6.2bn 6.7% - 7.2% 26% - 30% Financial inf ormation is presented under adjusted IFRS (see Appendix 8.0 of Q1 2023 Results Release). Reconciliation of I
Slide 27: Backlog schedule
Backlog schedule Total €12,047m adjusted backlog 9M 2023 2024 €4,510m €3,750m 2025+ €3,787m Adjusted backlog at March 31, 2023, has been impacted by f oreign exchange of €(147.9) million. Technip Energies – Q1 2023 Results 27
Slide 28: Adjusted statements of income – Q1 2023
Adjusted statements of income – Q1 2023 Financial inf ormation is presented under adjusted IFRS (see Appendix 8.0 of Q1 2023 Results Release). Reconciliation of IFRS to non-IFRS f inancial measures are prov ided in appendices. Technip Energies – Q1 2023 Results 28
Slide 29: Adjusted statements of income – Q1 2023 reconciliation
Adjusted statements of income Reconciliation between IFRS and Adjusted – Q1 2023 Financial inf ormation is presented under adjusted IFRS (see Appendix 8.0 of Q1 2023 Results Release). Reconciliation of IFRS to non-IFRS f inancial measures are prov ided in appendices. Technip Energies – Q1 2023 Resul
Slide 30: Adjusted statements of income – Q1 2022 reconciliation
Adjusted statements of income Reconciliation between IFRS and Adjusted – Q1 2022 Financial inf ormation is presented under adjusted IFRS (see Appendix 8.0 of Q1 2023 Results Release). Reconciliation of IFRS to non-IFRS f inancial measures are prov ided in appendices. Technip Energies – Q1 2023 Resul
Slide 31: Adjusted statements of financial position
Adjusted statements of financial position Financial inf ormation is presented under adjusted IFRS (see Appendix 8.0 of Q1 2023 Results Release). Reconciliation of IFRS to non-IFRS f inancial measures are prov ided in appendices. Technip Energies – Q1 2023 Results 31
Slide 32: Adjusted statements of cashflows
Adjusted statements of cashflows Financial inf ormation is presented under adjusted IFRS (see Appendix 8.0 of Q1 2023 Results Release). Reconciliation of IFRS to non-IFRS f inancial measures are prov ided in appendices. Technip Energies – Q1 2023 Results 32
Slide 33: Differentiated capital structure
Differentiated capital structure Liquidity, March 31, 2023 Net cash, March 31, 2023 in € million in € million 80 750 113 Commercial paper & other the Notes1 596 4,212 3,542 3,542 2,833 Cash RCF Outstanding Liquidity, net Cash Gross debt Net cash commercial paper • Robust liquidity position comprisin
Slide 34: Stock information and ADR
Stock information and ADR Stock ADR program Listed on Euronext Paris / SBF 120 index Ticker code: TE / ISIN code: NL0014559478 Exchange: Over-the-Counter Free float: 139.0 million / Outstanding shares: 179.8 million Ratio: 1 ADR : 1 ORD Market Cap at March 31, 2023: €3.5 billion Share price € Volume
Slide 35: Technip Energies upcoming investor events
Technip Energies upcoming investor events Opportunities to interact with company management and investor relations Investor Relations Team May 4, 2023 Q1 2023 Results Phillip Lindsay May 10, 2023 2023 Shareholders Annual General Meeting Vice President, Investor Relations Tel: +44 20 7585 5051 June 1
Slide 36: A diversified shareholder structure
A diversified shareholder structure Ownership split Geographic split As a % of shares outstanding Institutional investors Retail Rest of World 2.5% 7.0% Institutional Other incl. Europe 15.9% (long only) hedge funds 11.1% 32.4% France T.EN treasury 3.1% 56.1% 22.5% UK & Ireland Strategic 22.7% 26.7%
Slide 37: Investor Relations
Investor Relations Phillip Lindsay Vice President, Investor Relations Tel: +44 20 7585 5051 phillip.lindsay@technipenergies.com Investor Relations Corentin Cargouët Manager, Investor Relations Tel: +33 6 71 21 12 45 corentin.cargouet@technipenergies.com