Tecnicas Reunidas Sa · BME:TRE
Tecnicas Reunidas Sa — FY2010 Earnings Presentation
27 slides from Tecnicas Reunidas Sa's earnings presentation, Mar 1, 2011
Slide 1: Year 2010 Results Presentation
TECNICAS REUNIDAS Juan Lladó CEO Year 2010 Results Presentation 1st of March 2011
Slide 2: 2010: Building a Stronger TR
2010: BUILDING A STRONGER TR TECNICAS REUNIDAS ¾ SUCCESFUL DELIVERY OF MAJOR PROJECTS ¾ RECORD LEVEL OF AWARDS AND BACKLOG ¾ POSITIVE OPERATING RESULTS AND PROJECT EXECUTION ¾ BUILD UP OF NEW BUSINESS OPPORTUNITIES 1
Slide 3: Successful Delivery of Major Projects: Kayan, SABIC, Saudi Arabia
SUCCESFUL DELIVERY OF MAJOR PROJECTS KAYAN, SABIC, SAUDI ARABIA Phenolics complex • OBE with conversion LSTK • 40.7 MM Safe Man Hours • 8,000 workers at peak 2
Slide 4: Successful Delivery of Major Projects: Borouge, ADNOC, UAE
SUCCESFUL DELIVERY OF MAJOR PROJECTS BOROUGE, ADNOC, UAE Utilities, offsites and external interconnecting project • OBE with conversion to LSTK • 36 MM safe man hours • 7,400 workers at peak 3
Slide 5: 2010: Building a Stronger TR
2010: BUILDING A STRONGER TR TECNICAS REUNIDAS ¾ SUCCESFUL DELIVERY OF MAJOR PROJECTS ¾ RECORD LEVEL OF AWARDS AND BACKLOG ¾ POSITIVE OPERATING RESULTS AND PROJECT EXECUTION ¾ BUILD UP OF NEW BUSINESS OPPORTUNITIES 4
Slide 6: Record Levels of Awards and Backlog
RECORD LEVELS OF AWARDS AND BACKLOG Awards €m 4,500 2010 Major Awards 4,000 3,582 3,619 3,500 IZMIT 3,000 TALARA 2,621 2,661 2,500 2,207 SHAH 2,000 MARGARITA 1,500 YANBU 1,000 ZHUHAI LNG 500 MEJILLONES 0 2006 2007 2008 2009 2010 5
Slide 7: Major 2010 Awards
MAJOR 2010 AWARDS Izmit Refinery, Turkey ¾ Increase distillation capacity and construction of new conversion units ¾ Estimated investment value: $ 1,500 million Talara Refinery, Peru ¾ Revamping and construction of new process units (distillation, conversion) to increase production of mid distillate
Slide 8: Major 2010 Awards
MAJOR 2010 AWARDS Yanbu Refinery, Saudi Arabia ¾ Package 1: Delayed coker unit and mercaptan removal unit ¾ Contract value: $ 770 million Zhuhai LNG, China ¾ Three LNG tanks and a LNG terminal ¾ Contract value: $ 140 million Mejillones Tank, Chile ¾ LNG storage tank ¾ Contract value: $ 140 million 7
Slide 9: Record Levels of Awards and Backlog: Backlog
RECORD LEVELS OF AWARDS AND BACKLOG Backlog €m 7.000 6.000 5,730 4,713 4,711 4,820 5.000 4.000 3,040 3.000 2.000 1.000 0 2006 2007 2008 2009 2010 Oil and gas Power 8
Slide 10: Backlog Analysis by Award Date and Geography
BACKLOG ANALYSIS BY AWARD DATE BY GEOGRAPHY Europe 13% Rest of 36% 59% 9% Middle East 11% Spain Saudi 3% 19% Arabia 26% ROW 24% ≤ 2007 2008 2009 2010 9
Slide 11: Backlog Analysis by Contract Type and Client
BACKLOG ANALYSIS BY CONTRACT TYPE BY CLIENT 7% 49% NOCs IOCs 55% 40% 43% UTILITIES & OTHERS OBE LSTK OTHER 5% 10
Slide 12: 2010: Building a Stronger TR
2010: BUILDING A STRONGER TR TECNICAS REUNIDAS ¾ SUCCESFUL DELIVERY OF MAJOR PROJECTS ¾ RECORD LEVEL OF AWARDS AND BACKLOG ¾ POSITIVE OPERATING RESULTS AND PROJECT EXECUTION ¾ BUILD UP OF NEW BUSINESS OPPORTUNITIES 11
Slide 13: Solid Track Record of Backlog Execution: Oil & Gas
SOLID TRACK RECORD OF BACKLOG EXECUTION EXCELLENCE IN EXECUTION IN OIL & GAS PROJECTS AROUND THE WORLD SAS SHAH JUBAIL YANBU BOROUGE KAYAN Oil and gas Power & Water 12
Slide 14: Solid Track Record of Backlog Execution: Oil & Gas
SOLID TRACK RECORD OF BACKLOG EXECUTION EXCELLENCE IN EXECUTION IN OIL & GAS PROJECTS AROUND THE WORLD ELEFSINA KHABAROVSK SINES IZMIT CARTAGENA Oil and gas Power & Water 13
Slide 15: Solid Track Record of Backlog Execution: Oil & Gas
SOLID TRACK RECORD OF BACKLOG EXECUTION EXCELLENCE IN EXECUTION IN OIL & GAS PROJECTS AROUND THE WORLD PEMEX TALARA MARGARITA CODELCO-SUEZ ENAP Oil and gas Power & Water 14
Slide 16: Solid Track Record of Backlog Execution: Power and Water
SOLID TRACK RECORD OF BACKLOG EXECUTION EXCELLENCE IN EXECUTION IN POWER AND WATER PROJECTS AROUND THE WORLD FENNOVOIMA TVO OLKILOUTO III MOERDIJK CCGTs SPAIN MONTOIRE DE ITER BRETAGNE LUNGMEN TAISHAN MANIFA PERTH Oil and gas Power & Water 15
Slide 17: Solid Track Record: Large and Complex Projects
SOLID TRACK RECORD OF BACKLOG EXECUTION EXCELLENCE IN EXECUTION OF LARGE AND COMPLEX PROJECTS AROUND THE WORLD FENNOVOIMA TVO OLKILOUTO III ELEFSINA MOERDIJK KHABAROVSK MONTOIRE DE CCGTs SPAIN BRETAGNE SINES IZMIT ITER SAS PEMEX TAISHAN ZHUHAI CARTAGENA JUBAIL LUNGMEN SHAH YANBU MANIFA BOROUGE TALAR
Slide 18: Sales and EBITDA Growth
SALES AND EBITDA GROWTH SALES EBITDA €m +5% €m +4% 3,000 2,771 2,634 180 163 2,479 148 156 2,500 150 2,005 2,000 113 120 1,500 90 1,000 60 500 30 0 0 2007 2008 2009 2010 2007 2008 2009 2010 17
Slide 19: Financial Results
FINANCIAL RESULTS Profit and Loss Account 2010 2009 Var. € million Revenues 2,771.4 2,634.3 5.2% EBITDA 162.9 155.9 4.5% Margin 5.9% 5.9% EBIT 155.5 149.0 4.4% Margin 5.6% 5.7% Ordinary Net Financial Results 10.4 12.8 Adjusted Profit Before Taxes* 163.5 160.8 1.7% Ordinary Taxes -26,2 -15.4 Adjusted
Slide 20: Settlement of Tax Assessment
SETTLEMENT OF TAX ASSESMENT AMOUNT CONCEPT ACCOUNTING TREATMENT € MILLION 2004 – 2007 Assesments 22.6 2010 Tax Expense Delayed interests 3.6 2010 Financial Expense 2008 – 2009 Corporate tax increase 13.1 2010 Tax Expense TOTAL 39.3 ¾ Agreement with Tax Agency to increase transfer prices for resource
Slide 21: Net Cash Position and Dividends
NET CASH POSITION AND DIVIDENS ¾ 2010 Net cash position: € 525 million ¾ 2010 Dividend: € 1.34 per share €m 900 DPS progression 796 €/Share CAGR 20% 1.5 575 525 1.3 600 1.1 422 0.65 0.68 0.68 0.9 300 0.7 0.52 0.5 0.34 0.3 0.64 0.66 0.66 0.45 0.30 0 0.1 2007 2008 2009 2010 2007 2008 2009 2010 2011* I
Slide 22: Human Resources
HUMAN RESOURCES Headquarters Spain + TR Abroad Employees CAGR 10% 7,000 5,955 6,000 5,571 Employment growth in 2010: 5,232 5,000 4,412 ¾ 7% overall 4,000 ¾ 7% in graduates 3,000 2,000 1,000 0 2007 2008 2009 2010 21
Slide 23: 2010: Building a Stronger TR
2010: BUILDING A STRONGER TR TECNICAS REUNIDAS ¾ SUCCESFUL DELIVERY OF MAJOR PROJECTS ¾ RECORD LEVEL OF AWARDS AND BACKLOG ¾ POSITIVE OPERATING RESULTS AND PROJECT EXECUTION ¾ BUILD UP OF NEW BUSINESS OPPORTUNITIES 22
Slide 24: Build Up of New Business Opportunities
BUILD UP OF NEW BUSINESS OPPORTUNITIES ¾ Geographical expansion: Getting closer to new major potential clients in: – Latin America – Russia – Eastern Europe – Asia ¾ Product expansion: Refining: new conversion units (e.g. flexicoker) Chemicals: nitric acid Power outside Spain Nuclear • Com
Slide 25: Business Outlook for 2011
BUSINESS OUTLOOK FOR 2011 ¾ Positive order intake outlook: currently negotiating potential awards for more than 70% of 2010 sales. ¾ Healthy and increased backlog together with solid execution expected to provide in 2011: Higher sales Stable margins Growing profits and dividends ¾ Positive eco
Slide 26: Disclaimer
Disclaimer This document has been prepared by Tecnicas Reunidas S.A. (the Company) solely for use at presentations held in connection with the announcement of the Company's results for the year 2010. This document contains forward-looking statements of the Company and/or its management. These forwar
Slide 27: UNIDAS
= UNIDAS