Gaztransport & Technigaz Sa · EURONEXT:GTT
Gaztransport & Technigaz Sa — Investor Presentation (June 2015)
49 slides from Gaztransport & Technigaz Sa's investor presentation, June 2015
Slide 1: Investor Presentation June 2015
Investor Presentation June 2015
Slide 2: Disclaimer
Disclaimer This document contains information resulting from testing, experience and know-how of GTT, which are protected under the legal regime of undisclosed information and trade secret (notably TRIPS Art. 39) and under Copyright law. This document is strictly confidential and the exclusive prope
Slide 3: 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 4: Agenda
Agenda Key highlights 1. Company Overview: GTT a global leader in LNG containment 2. Sector Forecasts & Business Update 3. Financials 4. Strategy & Outlook Appendices 4
Slide 5: Key highlights for 2014
Key highlights for 2014 A record level of orders with diversified intake in 2014 Including ice-breaker LNGC, ethane carriers and small onshore tank Return to LNGC market for historic licensee New licensee Leading to increased visibility A strong flow of innovations in technologies & services Success
Slide 6: Key highlights of the first quarter 2015
Key highlights of the first quarter 2015 25 LNGC orders All 2015 orders will use the NO 96 GW technology 5 new ice-breaker LNGC ordered Long term relationship with DSME First order for an LNG bunker barge dedicated to the North-American marine market 100% designed by GTT Will be equipped with the in
Slide 7: Company Overview: GTT, a global leader in LNG containment
Company Overview: 1 GTT, a global leader in LNG containment 7
Slide 8: GTT designs containment systems with cryogenic membranes
GTT designs containment systems with cryogenic membranes LNGC GTT provides proprietary technologies VLEC FLNG GTT provides services available for a broad range of products Tank for LNG- FSRU fuelled ship GTT provides detailed engineering (design studies, construction assistance) for Barge Onshore ta
Slide 9: GTT, leading engineering at the core of the LNG sector
GTT, leading engineering at the core of the LNG sector GTT offers broad exposure across the LNG shipping and storage value chain Exploration Re- Off Take / Liquefaction Shipping & Production Gasification Consumption Offshore clients: shipyards Platform / LNG fuelled Installation FLNG LNGC FSRU Gas-t
Slide 10: Deep relationships with all stakeholders of the LNG sector
Deep relationships with all stakeholders of the LNG sector Prescription of containment technology Oil & Gas Companies Ship-owners O&G companies are end Ship-owners order users and prescribers of vessels from shipyards LNG vessels GTT provides GTT provides services modification, feasibility including
Slide 11: GTT, the global leader in LNG containment technologies
GTT, the global leader in LNG containment technologies Company overview Leading position Expert in LNG with a more than 50-year track record Current Global LNG Fleet (1) Others GTT is based in France with R&D facilities close to <1% Paris, and on-site employee presence at shipyards Moss 28% 3 subsid
Slide 12: GTT received a record level of orders in 2014
GTT received a record level of orders in 2014 Technology Ship owner Number Shipyard/EPC Type Delivery Year Mark III Flex Knutsen 2 Hyundai LNGC 2016 Mark III Flex K Line + MOL + NYK Line + SCI 1 Hyundai LNGC 2016 Mark III BW Maritime 1 Samsung FSRU (RV) 2016 Q1 2014: NO 96 MOL 1 Daewoo FSRU 2016 9 o
Slide 13: 27 orders received since the beginning of 2015
27 orders received since the beginning of 2015 Technology Ship owner Number Shipyard/EPC Type Delivery Year NO 96 GW Teekay LNG 4 Daewoo LNGC 2017-2018 NO 96 GW Maran Gas Maritime 4 Daewoo LNGC 2018-2019 NO 96 GW Yamal Trade 5 Daewoo Ice-breaker LNGC 2017-2019 NO 96 GW Chandris (Hellas) INC. 1 Daewo
Slide 14: A well-balanced portfolio and strong order book as at March 31, 2015
A well-balanced portfolio and strong order book as at March 31, 2015 Strong order book of 129 units Long term visibility, deliveries up to 2020 116 LNGC/VLEC 3 FLNG 40 36 36 6 FSRU/RV 3 onshore storage 31 30 Deliveries 1 LNG bunker barge 22 20 11 Q1 2015 movements in the order book 10 2 Deliveries:
Slide 15: Sector Forecasts & Business Update
Sector Forecasts & 2 Business Update 15
Slide 16: Sector Forecasts 1/4: Strong demand dynamics underpin LNG growth
Sector Forecasts 1/4: Strong demand dynamics underpin LNG growth Demand drivers Strong global LNG demand growth 450 North Africa Natural gas drivers North America Natural gas is the fastest growing 400 South America Middle East major energy source Abundant, widespread resources 350 Europe Least carb
Slide 17: Sector Forecasts 2/4: Major liquefaction projects to come
Sector Forecasts 2/4 : Major liquefaction projects to come Some major liquefaction projects with a FID expected in the short term Additional capacity needed to meet demand Sabine Pass 600 (trains 1 & 2) 15 Golden Pass Mtpa Obtained before 2014 Obtained Obtained 500 Cameron Corpus Christi Nominal sta
Slide 18: Sector Forecasts 3/4: Increasing need for LNG shipping and storage
Sector Forecasts 3/4: Increasing need for LNG shipping and storage Drivers of increase in shipping activity LNGC required in selected key countries (1) 0.6 0.6 0.9 1.2 2 2.2 More complex LNG trade routes 80 64 Increasing cross-basin trade 60 46 Emerging routes 40 US exports into Pacific Basin via Pa
Slide 19: Sector Forecasts 4/4: Encouraging LNG shipping and storage forecasts
Sector Forecasts 4/4: Encouraging LNG shipping and storage forecasts (2015-2024) Forecast LNGC orders Forecast FSRU orders GTT expected GTT expected Order forecasts sector share Order forecasts sector share Base Base 239 84% 20 80% case case High case 307 87% High case 30 80% Forecast FLNG orders Fo
Slide 20: Offshore market – GTT's expertise already recognized
Business Update 1/3: Offshore market – GTT’s expertise already recognized FSRU: GTT, the solution of choice FLNG: the new frontier of the LNG World Existing fleet: 21 Existing fleet: 0 FSRU(1) In order: 3(1) In order: 7, of which 3 Technologies: orders received in 100% GTT 2014 and 1 in 2015 Technol
Slide 21: Business Update 2/3: Onshore market - A large and attractive sector
Business Update 2/3: Onshore market - A large and attractive sector Membrane tanks, a proven containment storage solution Existing GTT tanks: 33 in operation In order: 3, of which 1 received in 2014 Photo credit: GDF SUEZ_ HELSLY CEDRIC et DUREUIL PHILIPPE GTT Licensees: 16 What is an Onshore Storag
Slide 22: Business Update 3/3: Range of services to support ship-owners
Business Update 3/3: Range of services to support ship-owners ASSISTANCE & INTERVENTION GTT On Site HEARS TIBIA MONITORING & PERFORMANCE INSPECTION & OPTIMIZATION TAMI Training SLOSHIELD New services to come… MOON 22
Slide 23: Financials
Financials Gl] eu =we Uw. wee = a)
Slide 24: 2014 financial performance in line with objectives
2014 financial performance in line with objectives Summary financials Key highlights High level of revenues As of 31/12, in € M 2012A 2013A 2014A Positive annual growth since 2012 Total Revenues 89 218 227 95% of revenue derived from royalties EBITDA(1) 48 144 142 Strong margins Margin (%) 54% 66% 6
Slide 25: Stronger order book and visibility on future revenue
Stronger order book and visibility on future revenue Order book Order book by year of delivery (units per year) Total orders to be delivered between 2015 – 2020 Secured revenues Secured revenues from current order book In € M In € M Increased visibility with c. €590 M of revenue secured between 2015
Slide 26: A cost base offering a high operating leverage
A cost base offering a high operating leverage GTT operational costs(1) Key comments Lean cost base offering high operating leverage As of 31/12, in € M 2013A 2014A Change (%) Total costs stable at around 40% of sales Salaries and Social Charges (28.3) (37.4) +32% Staff costs represent c. 50% of GTT
Slide 27: First quarter 2015 revenues at €54.7 million
First quarter 2015 revenues at €54,7 million Summary financials Key comments As of 31/03, in € M Q1 2014 Q1 2015 Change (%) Total revenues: €54.7 million Revenues from royalties: €50.6 million Revenues 59.1 54.7 -7.5% Driven mainly by LNGC/VLEC Royalties 56.4 50.6 -10.3% Slight decrease linked to a
Slide 28: Strategic Roadmap & Outlook
4 Strategic Roadmap & Outlook 28
Slide 29: Strategic Roadmap - Develop promising new business areas and products
Strategic Roadmap - Develop promising new business areas and products Enlargement LNG as a fuel REACH4 Small / Very small New concepts: onshore tanks e.g. inspection equipment and services New applications HEARS Assistance & Intervention Enhancement TIBIA New TAMI customers / geographies Onshore Off
Slide 30: Strategic Roadmap (2/4) Small scale and barge applications
Strategic Roadmap (2/4) Small scale and barge applications: A worldwide emerging market representing a great potential Small LNG carriers and barges are crucial for supplying merchant vessels with LNG Significant geographical potential: Caribbean, China, India, Middle East/Mediterranean, North Ameri
Slide 31: First order for an LNG bunker barge dedicated to the North American market
First order for an LNG bunker barge dedicated to the North American market A strong partnership: Shipyard Shipowner Shipowner Classification society Fully designed by GTT, this barge will be built with the innovative Mark III Flex technology and will be equipped with the bunker mast REACH4 Delivery
Slide 32: Strategic Roadmap (3/4) LNG as a fuel - GTT technologies well-suited
Strategic Roadmap (3/4) LNG as a fuel - GTT technologies well-suited A new growing market driven by A great opportunity for GTT regulatory, environmental and economic concerns Norway Baltic Sea North Sea North America Mediterranean Japan U.S. Caribbean Mexico Singapore Existing ECA Potential ECA Sou
Slide 33: Strategic Roadmap (4/4) Ethane / Multi-gas carriers
Strategic Roadmap (4/4) Ethane / Multi-gas carriers – A new and wide playground for GTT Ethane carriers demand by 2020 Ethane carriers Source: Poten & Partners GTT technologies suitable for a large range of liquid gas storage and transportation other than LNG (buthane, propane, ammonia, …) 6 VLEC (V
Slide 34: Outlook for 2015
Outlook for 2015(1) Expected 2015 revenue close to €227 M Net margin of c. 50% 2015 dividend payout of at least 80%(2) (1) Notwithstanding further changes in GTT’s markets (2) GTT by-laws provide that dividends may be paid in cash or in shares based on each shareholder’s preference and subject to AG
Slide 35: Medium-term outlook
Medium-term outlook(1) 270-280 LNGC New GTT 25-35 FSRU Orders over 2015-2024 3-7 FLNG 15-20 onshore storage tanks (large tanks) 2016 revenue growth of at least 10% vs 2015, which represents GTT revenue(2) more than €250 M c. €590 M of revenue secured between 2015 and 2020 Dividend Dividend payout of
Slide 36: Q&A Session
Q&A Session Cl axuwe WT. Ww. ee —_
Slide 37: Appendices
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Slide 38: Appendix 1: US projects
Appendix 1: US projects Development of US LNG projects provides for significant potential export capacity Significant potential US LNG development projects Department of Energy Federal Energy Regulatory Commission To/From FTA To/From non-FTA Projects Object Nominal capacity (Mtpa) *1 Status *1 Filed
Slide 39: Appendix 2: GTT Business Model
Appendix 2: GTT Business Model Illustrative LNGC revenue recognition summary Illustrative revenue recognition 2014 key statistics % of total revenues – order of 4 LNGCs placed on June 30 of year 0 c. 18 months c. 18 months studies royalties Total orders: 36 56% TOTAL LNGC Studies collected on ORDERS
Slide 40: Appendix 2: GTT Business Model
Appendix 2: GTT Business Model An attractive business model supporting high cash generation Invoicing and revenue recognition Business model supports high cash generation % of contract (1) c. 18 months c. 18 months Delivery ▶ Revenue is recognized pro-rata temporis studies royalties between mileston
Slide 41: Appendix 2: GTT Business Model
Appendix 2: GTT Business Model Strong revenue growth since 2012 reflecting recent increase in order intake Historical revenue development Order book evolution In € M In number of orders – at end of period 114 99 250 227 77 218 10 7 52 200 18 2010 2011 2012 2013 2014 150 2014 Revenue Breakdown 210 21
Slide 42: Appendix 2: GTT Business Model
Appendix 2: GTT Business Model Managing employee base to meet growing demand Evolution of GTT staff GTT staff by type of contract 400 370 377 Non-permanent 300 286 18% 242 200 100 Permanent 82% 0 2011 Dec 31, 2011 2012 Dec 31, 2012 2013 Dec 31, 2013 201431, 2014 Dec Total: 377 employees(1) Staff lev
Slide 43: Appendix 3: General information
Appendix 3: General information Unique technology with key competitive advantages Membrane technology overview GTT’s technology positioning (1) GTT is the only company which widely offers GTT Moss LNG membrane containment technology for ships: Technology ▶ Membrane (Mark III, NO ▶ Spherical technolo
Slide 44: Appendix 3: General information
Appendix 3: General information Track record of high margin and strong increase in backlog since 2010 Current backlog (3) 120 112 66 30 18 52 77 99 114 44 47 37 34 26 Evolution of new 19 GTT orders (1)(2) 7 4 1 2006 2007 2008 2009 2010 2011 2012 2013 2014 LNGC/VLEC FSRU/FLNG Onshore storage Historic
Slide 45: GTT SA organisation
Appendix 3: General information A streamlined group and organisation GTT Group GTT North America Cryovision GTT Training Subsidiary Subsidiary Subsidiary Philippe Berterottière Chairman and Chief Executive Officer GTT SA organisation Research Committee Pierre Lecourtois Organization and Quality Léli
Slide 46: Appendix 3: General information
Appendix 3: General information GTT membrane technologies NO 96 Mark III Primary Invar membrane Primary stainless steel membrane Top bridge Invar pad tongue Primary Corner Metallic insert insulation box panel Hard wood key Coupler Secondary Invar Inner membrane hull Top plywood Inner hull Insulation
Slide 47: Appendix 3: General information
Appendix 3: General information New developments are coming up, providing enhanced operational performance and flexibility Mark V for LNG Carriers NO 96 Max Bonded triplex replaced with Invar: Innovative pillar-type insulation box Innovative secondary membrane, construction allowing quicker industri
Slide 48: Appendix 3: General information
Appendix 3: General information Adding value to the LNG chain from GTT innovation LNG Boil Off Rate (BOR) is a parameter for the performance of LNG containment systems GTT has brought major improvements on its technologies and is continuously striving to enhance them Example: the 6 basis points (bp)
Slide 49: Thank you for your attention
Thank you for your attention information-financiere@gtt.fr 49
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