Slide 1: Analyst Day 2017 Break-out presentations
Analyst Day 2017 Break-out presentations
Slide 2: Disclaimer
Disclaimer Forward-looking statements We would like to caution you with respect to any “forward-looking statements” made in this commentary as defined in Section 27A of the United States Securities Act of 1933, as amended, and Section 21E of the United States Securities Exchange Act of 1934, as amen
Slide 3: Subsea Services - iLoF
Analyst Day 2017 Subsea Services - iLoF™
Slide 4: Subsea services
Subsea services Wellheads Installation & Asset Refurb & Well Intervention Plug & IMR Completion Upgrade Abandonment Monitoring & Data Analytics ROVs Analyst Day 4
Slide 5: Subsea services sales
Subsea services sales CAGR = 12+% Growth drivers Installed base size & aging Inspection, maintenance & repair Vessel-based well intervention iLoF™ SPS + SURF integrated services Digital services 2017e 2020e Analyst Day 5
Slide 6: Subsea tree and control module lifecycle
Subsea tree and control module lifecycle Recompletion Upgrade Life extension Refurbishment & upgrade drivers Completion rework (after ~ 7 years) Upgrade equipment SCM #1 SCM #2 SCM #3 performance Field life extensions XT #1 XT #2 <5 5 - 10 11 - 15 16 - 20 > 20 Age (# of years in operation) Ana
Slide 7: Driving execution
Driving execution Cycle time Cost -30% -60% Historical Present Historical Present Facility investments Actions Condition based monitoring taken Customer collaboration Analyst Day 7
Slide 8: Subsea tree refurbishment – before and after
Subsea tree refurbishment – before and after Analyst Day 8
Slide 9: Subsea robotics
Subsea robotics Three decades of leadership Analyst Day 9
Slide 10: Consistent focus: Productivity, Ease of use
Consistent focus Productivity Ease of use Analyst Day 10
Slide 11: Evidenced by: Subsea manipulators
Evidenced by: Subsea manipulators #1 Analyst Day 11
Slide 12: Evidenced by: ROV systems
Evidenced by: ROV systems More users than all providers combined Analyst Day 12
Slide 13: Subsea services – summary
Subsea services – summary ▪ $3.5b current market…wellheads + installation + CAGR = 12+% refurb + intervention tools ▪ $6.5b additional market…integrated vessel-based IMR + intervention + P&A + SPS/SURF ▪ Total market = 9% CAGR…new wells account for < 15% of growth ▪ TechnipFMC sales > 9% CAGR, due t
Slide 14: Onshore/Offshore – World Class Execution
Analyst Day 2017 Onshore/Offshore – World Class Execution
Slide 15: Our focus areas in Onshore/Offshore
Our focus areas in Onshore/Offshore ONSHORE OFFSHORE Gas processing Petrochemicals Refining Fixed platforms FLNG Floating ▪ Gas treatment ▪ Ethylene ▪ Clean fuels ▪ Conventional jackets ▪ FPSO platforms ▪ GTL ▪ Polyolefins ▪ Grassroots ▪ TPG 500 ▪ Spar ▪ LNG ▪ Aromatics ▪ Heavy oil upgraders ▪ GBS ▪
Slide 16: Our competencies support our unique business model
Our competencies support our unique business model Proprietary equipment supply Key levers Digital solutions • Project management • Technology & innovation Construction Commissioning • Selectivity & early involvement management & start-up • Efficient & integrated EPC Procurement Technical services B
Slide 17: We have a balanced portfolio and a global geographical footprint
We have a balanced portfolio and a global geographical footprint Revenue breakdown 100% Others 80% Lump Sum 60% 40% Reimbursable 20% 0% 2010 2017 9M Source: Company data Analyst Day 17
Slide 18: Early engagement is making projects economically viable
Early engagement is making projects economically viable Opportunity to influence value 100% Influence curve Early Engagement = the best way to make the right technologies choices and to define specifications in order to reduce overall investment cost Feasibility Concept FEED Detailed Design EPC Proj
Slide 19: Innovation and technology drive our differentiation
Innovation and technology drive our differentiation • Every project starts with the choice of a technology • We continuously invest in technology & proprietary equipment • Digital solutions and data analytics are making plants and equipment smarter and more respectful of environment • Selective posi
Slide 20: Managing risks and partners for efficient and integrated EPC
Managing risks and partners for efficient and integrated EPC Risk management process Transversal Execution Pre-bidding Proposal phase Execution phase risks Pre-qualification Risk evaluation Continuous risk assessment Early tendering Authorization to tender Project management report Risk Authorizatio
Slide 21: Onshore/Offshore operating model delivers industry leading financial performance
Onshore/Offshore operating model delivers industry leading financial performance Elements of unique operating model 2011-2018e Adjusted EBITDA Margin1 10% 8% • Early engagement • Project selectivity 6% • Technology and innovation 4% • Risk management 2% • Project execution 0% 2011 2012 2013 2014 201
Slide 22: We are keeping focused on our main priorities
We are keeping focused on our main priorities SELECTIVITY Balancing our portfolio Leveraging our relationships to maintain early engagement Following-up on our accessible markets DIFFERENTIATION Leveraging technology capabilities, client intimacy and geographical presence Helping our clien
Slide 23: Shell Prelude FLNG Building the future of LNG
Shell Prelude FLNG Building the future of LNG | 23
Slide 24: Appendix
Appendix 24
Slide 25: Reconciliation of GAAP to non-GAAP financial measures
Reconciliation of GAAP to non-GAAP financial measures Onshore/Offshore Segment FY 11 FY 12 FY 13 FY 14 FY 15 FY 16 in millions EUR, unaudited Actuals Actuals Actuals Actuals Actuals Actuals Revenues 3,841.0 4,156.3 5,220.1 5,844.1 6,332.7 5,761.7 Operating Income (Loss) from Recurring Activities aft
Slide 26: Surface Technologies – Integrated Commercial Models
Analyst Day 2017 Surface Technologies – Integrated Commercial Models
Slide 27: Value of integrated approach
Value of integrated approach Time saved for operator Decommissioning 50% 25% 50% 50% 25% Rig up – Well Prep Rig up - Frac Rig up – Drillout Rig up – Flowback Rig Down 20% Reduction in 35% Reduction in $1m Savings per well manpower completion costs Analyst Day 27
Slide 28: Thank you
» 3 TechnipFMC Thank you