Tecnicas Reunidas Sa · BME:TRE
Tecnicas Reunidas Sa — FY2022 Earnings Presentation
22 slides from Tecnicas Reunidas Sa's earnings presentation, Mar 1, 2023
Slide 1: FY 2022 Results
FY 2022 Results March 1st 2023 Juan Lladó – Executive Chairman Eduardo San Miguel - CEO
Slide 2: Index
Index 1 2022 commercial activity 2 Recent awards and pipeline 3 2022 results 4 Risk mitigation 5 2023 guidance 2
Slide 3: Index
Index 1 2022 commercial activity 2 Recent awards and pipeline 3 2022 results 4 Risk mitigation 5 2023 guidance Juan Lladó – Executive Chairman 3
Slide 4: 2022 commercial activity
2022 commercial activity Carbon Steel Container Freight (USD/t) (USD/40ft container) 1.600 12.000 1.400 10.000 Volatile macro environment and 1.200 8.000 spike in raw material prices in the first half of 2022 delayed major 1.000 6.000 4.000 FIDs in the energy sector 800 600 2.000 400 0 January-19 Ja
Slide 5: Intense start of the year but macro environment disrupting investments in the sector
2022 commercial activity Intense start of the year but macro environment disrupting investments in the sector 1/1/2022 1/1/2023 Major LNG project Early in Europe engagements Kazazot (client undisclosed) €1.0Bn €0.7Bn >€1.5Bn Ukrainian conflict 5
Slide 6: 2022 has confirmed a strong positioning in low carbon technologies
2022 has confirmed a strong positioning in low carbon technologies Catalina: 500 MW green hydrogen project in Spain Hydrogen Conoco/JERA: Multi giga green ammonia project in US value chain ACWA Power: green ammonia project in Middle East €1.8 Bn Circular AMA: 90 ktpy waste to methanol in Amsterdam e
Slide 7: Técnicas Reunidas
TECNICAS REUNIDAS Zz track TECNICAS REUNIDAS
Slide 8: Index
Index 1 2022 commercial activity 2 Recent awards and pipeline 3 2022 results 4 Risk mitigation 5 2023 guidance Juan Lladó – Executive Chairman 8
Slide 9: Recent awards: Kazazot
Recent awards Kazazot Engineering design under FEED-OBE contract, to be executed at Madrid headquarters FEED expected to be finalized in the current year Once completed, TR will execute FEED OBE contract to full EPC under agreed OBE terms develop a world class Total EPC investment of $1 billion+ amm
Slide 10: Pipeline is sizeable, solid and growing
Pipeline is 3% sizeable, solid 13% 21% Refining and growing Pipeline by Petrochemical Natural Gas product 29% 34% Low carbon technologies Other B€ 69 2023 – 2024 Pipeline 22 8.5 Total Pipeline Key opportunities New expected awards 10
Slide 11: Index
Index 1 2022 commercial activity 2 Recent awards and pipeline 3 2022 results 4 Risk mitigation 5 2023 guidance Eduardo San Miguel – CEO 11
Slide 12: 2022 results: quarterly sales evolution
2022 results Quarterly sales evolution €M 1.423 Q4 2022 FY 2022 1.271 1.181 1.156 Sales €1,423m €4,233m 928 881 EBIT €39m €9m 763 773 700 712 682 703 659 Net cash position(1) €158m €158m Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 (1) Inclu
Slide 13: 2022 results: quarterly EBIT evolution
2022 results Quarterly EBIT evolution €M EBIT Margin 2.7% Q4 2022 FY 2022 2.3% 39 Sales €1,423m €4,233m 0.9% 27 EBIT €39m €9m 7 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Net cash position(1) €158m €158m -64 -7.2% (1) Includes €175m of PPL (Profit Participating Loan) 13
Slide 14: 2022 results: net cash evolution
2022 results Net cash evolution in 2022 €M +139 158 +175 -80 Q4 2022 FY 2022 -76 Sales €1,423m €4,233m FY 2021 PPL SEPI Touat Gaz Operating cash FY 2022 bond execution EBIT €39m €9m Net cash evolution in 2022 Net cash position(1) €158m €158m €M 134 158 104 61 -76 FY 2021 Q1 2022 H1 2022 9M 2022 FY 2
Slide 15: Index
Index 1 2022 commercial activity 2 Recent awards and pipeline 3 2022 results 4 Risk mitigation 5 2023 guidance Eduardo San Miguel – CEO 15
Slide 16: Strategy to mitigate construction risk
Strategy to mitigate construction risk 2021-22 AWARDS (€6BN) 2 3 4 1 4% 11% 32% 28% EPC through FEED or Partnerships with other No construction or competitive FEED: Goal of 30% of man hours only construction engineering companies under service contracts Thorough assessment of potential and local con
Slide 17: Index
Index 1 2022 commercial activity 2 Recent awards and pipeline 3 2022 results 4 Risk mitigation 5 2023 guidance Juan Lladó – Executive Chairman 17
Slide 18: 2023 Guidance
2023 Guidance The energy industry is at the beginning of €4Bn an investment supercycle SALES TR is a relevant player in the energy transition industry TR is actively seeking the risk reduction of its 4% current and future backlog Efficiency programs to optimize operations, EBIT MARGIN increase margi
Slide 19: Slide 19
Slide 20: Recent awards: INEOS & Qatargas
Recent awards INEOS & Qatargas TR expertise and know-how recognized by new clients with additional scope Auxiliary units and offsites utilities added to the initial scope of the contracts Additional works to projects More than €500 million added to existing projects awarded by Qatargas and INEOS dur
Slide 21: Pipeline analysis
3% Pipeline 13% 21% Refining analysis Petrochemical Pipeline by Natural Gas product 29% Low carbon technologies 34% Other 8% Middle East Latam Pipeline by 20% 50% Europe NorAm geography 5% Asia Pacific 13% Row 5% 3% 24% H1 2023 Pipeline by 33% H2 2023 calendar H1 2024 (expected award date) 41% H2 20
Slide 22: 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 statem