Technipfmc Plc · NYSE:FTI
Technipfmc — Technip — FY2012 Earnings Presentation
67 slides from Technipfmc's earnings presentation, Feb 21, 2013
Slide 1: Fourth Quarter and Full Year 2012 Results
Fourth Quarter and Full Year 2012 Results Paris, February 21, 2013
Slide 2: Safe Harbor
Safe Harbor T his presentation contains both historical and forward-looking statements. These forward-looking statements are not based on historical facts, but rather reflect our current expectations concerning future results and events and generally may be identified by the use of forward-looking w
Slide 3: Contents
Contents 1. 2012: Year in Review 2. Fourth Quarter Operations & 2012 Financial Highlights 3. Sustaining Profitable Growth 4. 2013 Outlook 5. Annex 3
Slide 4: 1. 2012: Year in Review
1. 2012: Year in Review 4 Fourth Quarter and Full Year 2012 Results
Slide 5: 2012: Year of Growth
2012: Year of Growth Financials Achievements Revenue increased by 20%, to €8.2 billion Portfolio diversification maintained Operating margin(1) at 10% for the 4th year Technology and expertise driving order intake Net income of €540 million Global footprint strengthened and workforce exp
Slide 6: Steady Dividend Increase
Steady Dividend Increase Dividend per share (€) 2008 - 2012 (1) CAGR: +9% 1.68 1.58 1.45 1.35 1.20 2008 2009 2010 2011 2012 (1) Recommendation of Technip’s Board of Directors to be approved during the Annual General Meeting 6 Fourth Quarter and Full Year 2012 Results
Slide 7: 2012 Revenue Split by Geography
2012 Revenue Split by Geography Apache II, North Sea Europe / Russia Central Asia Lucius Spar, GoM Americas Burgas refinery, Bulgaria 32% 29% 9% 16% Africa 14% Asia Pacific Middle East Pipelay long term charters, Brazil Jubail refinery, Saudi Arabia G1201 S-lay vessel in Asia Pacific 7 Fourth Quarte
Slide 8: A Solid Platform for Profitable Growth
A Solid Platform for Profitable Growth Backlog by Geography Backlog by Market Split Others 1% 2% Africa 9% 13% 16% 12% Petrochems 11% Refining / 14% 12% Heavy Oil 29% 12% Middle East 48% Gas / LNG / FLNG 37% 21% 42% Americas 18% Shallow Water(1) 11% Asia Pacific 12% 30% Deepwater(1) 23% >1,000 meter
Slide 9: Strategic Initiatives to Expand Capabilities
Strategic Initiatives to Expand Capabilities Technip Stone & Webster Process Technology Commercial Alliance with Heerema Portfolio of cutting edge technologies and 5-year worldwide agreement combining alliances in refining, hydrogen, ethylene, deepwater EPCI capabilities petrochemicals & GTL W
Slide 10: Our New Pipelay Vessel: Deep Orient
Our New Pipelay Vessel: Deep Orient 10 Fourth Quarter and Full Year 2012 Results
Slide 11: 2. 2012: Operational & Financial Highlights
2. 2012: Operational & Financial Highlights 11 Fourth Quarter and Full Year 2012 Results
Slide 12: Fourth Quarter Order Intake & Backlog
Fourth Quarter Order Intake & Backlog € million Order intake Backlog Subsea order intake 6,120 6,050 GirRI project phase 2, Angola 1,216 1,224 914 4,380 Juliet field development, North Sea Starfish S-Lay, Trinidad and Tobago 4Q 11 3Q 12 4Q 12 4Q 11 3Q 12 4Q 12 Onshore/Offshore order intake
Slide 13: Group Financial Highlights
Group Financial Highlights € million (audited) 4Q 12 Change FY 12 Change Revenue 2,300.5 14.2% 8,203.9 20.4% EBITDA(1) 289.0 5.5% 1,016.6 15.1% EBITDA Margin 12.6% (104)bp 12.4% (58)bp Operating Income(2) 237.5 14.1% 821.7 15.8% Operating Margin(2) v 10.3% (1)bp 10.0% (40)bp (1) calculated as operat
Slide 14: Segment Growth and Margins
Segment Growth and Margins € million Onshore/Offshore Subsea Revenue Revenue 1,100 1,200 1,050 964 4Q: +5% 4Q: +25% FY: +8% FY: +36% 4Q 11 4Q 12 4Q 11 4Q 12 Operating Margin(1) Operating Margin(1) 7.2% 16.4% 7.0% 14.9% 14.9% 6.5% FY Operating FY Operating Income(1) +6% Income(1) +21% 4Q 11 4Q 12 FY
Slide 15: Fourth Quarter & FY 2012 Net Income
Fourth Quarter & FY 2012 Net Income € million (audited) 4Q 12 Change FY 12 Change Operating Income(1) 237.5 14.1% 821.7 15.8% Non-Current Operating (2.5) nm (9.5) nm Result Financial Result (35.7) nm (65.3) nm Share of Income of Equity 1.0 nm 1.0 nm Affiliates Income before Tax 200.3 (3.8)% 747.9 5.
Slide 16: Net Cash Position
Net Cash Position 3 Months € million 2012 Capital Expenditures: €519 m Net Cash Position as of 183.5 4% September 30, 2012 3% Others Cash Generated from / (Used in) Onshore/ 226.1 Operations Offshore 33% Change in Working Capital 3.2 Requirements Recurring 21% Capex(2) Capital Expenditures (161.3) M
Slide 17: 3. Sustaining Profitable Growth
3. Sustaining Profitable Growth 17 Fourth Quarter and Full Year 2012 Results
Slide 18: Diversified Backlog by Contract Size and Type
Diversified Backlog by Contract Size and Type Subsea Onshore & Offshore €6.0 billion backlog €8.2 billion backlog Largest projects: Quad 204, Bøyla, Largest projects: Prelude FLNG, Mariscal Sucre Ethylene XXI Over 10 projects in €100 - 350m Around 15 projects in €100 - 600m Over 70 pro
Slide 19: Differentiating Assets
Differentiating Assets Pori and MHB yards Lucius, Anadarko: under fabrication Heidelberg, Anadarko: early works Big Dog, BP: design phase, through 10-year frame agreement Malikai Tension Leg Platform, Shell: awarded in 4Q 2012 Le Trait and Açu plants Large diameter flexible pipes for ultra
Slide 20: Differentiating Technologies: 2012 Industry and Technip Firsts
Differentiating Technologies: 2012 Industry and Technip Firsts Subsea Onshore & Offshore Islay electrically traced heated pipe-in-pipe Petronas FLNG 1 World 1st ETH-PIP installed in the North Sea, Contract award to design the 1st Malaysian FLNG, the improves flow assurance and reduces operat
Slide 21: Very Broad Execution Capabilities in Subsea
Very Broad Execution Capabilities in Subsea Heavy Lift J-Lay & S-Lay Reel-Lay J-Lay & Subsea Reel-Lay Heavy Lift Ultra-deep water infield lines Deepwater infield lines Deep-to-shore (Very high tensions: alliance with Heerema) 21 Fourth Quarter and Full Year 2012 Results
Slide 22: Integrated Business Model: Target Contracts from Project Early Stages
Integrated Business Model: Target Contracts from Project Early Stages Conceptual & FEED EPC Licensing Key contracts won from FEED in 2012 Ethylene XXI, Mexico Upper Zakum EPC 1, Middle East Burgas refinery, Bulgaria Aasta Hansteen Spar, Norway Petronas FLNG 1, Malaysia 22 Fourth Quarter
Slide 23: Integrated Service Offering Across Segments
Integrated Service Offering Across Segments Wheatstone, Australia Ichthys, Australia Malikai, Malaysia Lucius, Gulf of Mexico FPSO & FPU detailed Tension Leg Platform Platform FEED Lucius Spar hull EPC engineering EPC Platform detailed Subsea export pipelines Subsea field Offshore commissioning Subs
Slide 24: 36,500 People Throughout the World, Growing Close to Clients
36,500 People Throughout the World, Growing Close to Clients 4,900 +58% 8,400 +22% 3,900 2,300 +95% 3,550 +53% +97% 8,500 +102% Fleet & others 750 4,200 +50% +62% 109 Nationalities across 48 countries Dec. 2012 Dec. 2006 24 Fourth Quarter and Full Year 2012 Results
Slide 25: 4. 2013 Outlook
4. 2013 Outlook 25 Fourth Quarter and Full Year 2012 Results
Slide 26: 2013 Full Year Outlook
2013 Full Year Outlook(1) Group revenue growing 11% to 16% to between €9.1 and €9.5 billion Subsea revenue growing to between €4.3 and 4.6 billion, with operating margin(2) around 15% Onshore/Offshore revenue growing to between €4.7 and €5.1 billion, with operating margin(2) between 6% and 7%
Slide 27: Backlog Visibility
Backlog Visibility(1) € million Subsea Onshore/Offshore Group 2013 3,242 3,842 7,084 2014 1,682 2,820 4,502 2015+ 1,126 1,539 2,665 Total 6,050 8,201 14,251 (1) Backlog estimated scheduling as of December 31, 2012 27 Fourth Quarter and Full Year 2012 Results
Slide 28: Key Factors Influencing 2013 Subsea Margins
Key Factors Influencing 2013 Subsea Margins A Busy, Growing Subsea Market Worldwide Subsea Backlog Growth Subsea Backlog Growth Towards Asia Pacific € billion CAGR: +39% Asia Pacific 5% 16% 6.0 Africa 28% 10% 4.4 39% 3.1 Americas 47% 35% Europe/Russia/Central Asia 21% Dec. 10 Dec. 11 Dec. 12 Dec. 20
Slide 29: 2013 Operational Priorities
2013 Operational Priorities Maintain our focus on project execution to ensure reliability in project delivery Delivery and use of differentiating assets, with start-up of the Deep Orient, Deep Energy & Açu plant Reinforce leadership position in offshore production facilities, notably on FLNGs
Slide 30: Business Environment
Business Environment North Sea High level of subsea awards continues North America Increase in platform activity Upswing in US Gulf of Mexico Increasing activity in Mexico US shale gas driving onshore downstream investments Middle East Sustained volume of activity Good opportunities of
Slide 31: Delivering Sustainable & Profitable Growth
Delivering Sustainable & Profitable Growth Our Strategic Framework Well diversified, profitable backlog Key differentiating assets Technology Execution capability Vertical integration National content 31 Fourth Quarter and Full Year 2012 Results
Slide 32: 5. Annex
5. Annex 32 Fourth Quarter and Full Year 2012 Results
Slide 33: A World Leader Bringing Innovative Solutions to the Oil & Gas Industry
A World Leader Bringing Innovative Solutions to the Oil & Gas Industry Subsea Onshore/Offshore Worldwide leadership Proven track record with customers & Unique vertical integration business partners Design & Project Management Engineering & construction Manufacturing & Spooling Project
Slide 34: Diversified & Balanced Customer Base
Diversified & Balanced Customer Base National Oil Companies International Oil Companies 34 Fourth Quarter and Full Year 2012 Results
Slide 35: Two Complementary Business Models Driving Financial Structure and Performance
Two Complementary Business Models Driving Financial Structure and Performance € million Subsea Onshore/Offshore Operating Operating Operating Operating Backlog Backlog Income1 Margin1 Income1 Margin1 8,201 6,050 603 498 16.8% 290 14.9% 274 7.1% 7.0% FY 11 FY 12 FY 11 FY 12 FY 12 FY 11 FY 12 FY 11 FY
Slide 36: Fourth Quarter Subsea Highlights
Fourth Quarter Subsea Highlights € million Offshore main operations completed Revenue Vigdis NE field development, Norway 1,200 Jubilee 1A, Ghana 964 Main ongoing projects Boyla field development, Norway Goliat, Barents Sea 4Q 11 4Q 12 Golden Eagle, UK Operating Income1 BC-10 phase 2
Slide 37: Fourth Quarter Onshore/Offshore Highlights
Fourth Quarter Onshore/Offshore Highlights € million Upstream Asab 3, UAE Revenue Ichthys FPSO, Australia 1,050 1,100 Lucius Spar, Gulf of Mexico Hejre platform, Denmark Gas, LNG & FLNG 4Q 11 4Q 12 PMP, Qatar Prelude FLNG, Australia Operating Income1 Petronas FLNG 1, Malaysia 79 7.
Slide 38: Consolidated Statement of Financial Position
Consolidated Statement of Financial Position € million (audited) Dec. 31, Dec. 31, 20111 2012 Fixed Assets 5,662.0 6,022.2 Construction Contracts – Amounts in Assets 588.0 454.3 Other Assets 2,711.8 2,815.2 Cash & Cash Equivalents 2,808.7 2,289.3 Total Assets 11,770.5 11,581.0 Shareholders’ Equity 3
Slide 39: Investment in Key Subsea Assets
Investment in Key Subsea Assets Plants 5 2007 New long-term charters 7, incl. 1 under construction North Sea Giant Vessels 18 2007 Newbuild vessel in Norway, delivery in 2014 33, incl. 5 under construction As of December 31, 2012 39 Fourth Quarter and Full Year 2012 Results
Slide 40: Onshore/Offshore Key Markets
Onshore/Offshore Key Markets Onshore Downstream Unique Position Expertise in Full Range of Offshore Facilities Petrochemical & Floating LNG Ethylene Refining Spar LNG & GTL Fixed platform Fertilizer FPSO 40 Fourth Quarter and Full Year 2012 Results
Slide 41: Subsea Vertical Integration: Customer Support from Concept to Execution
Subsea Vertical Integration: Customer Support from Concept to Execution Concept Execution Project Engineering & Procurement P R Upstream O Engineering Manufacturing J With Genesis1 E Flexible risers Rigid Pipeline Umbilicals C and flowlines Welding/Spooling Pre-FEED* and FEED T Offshore fi
Slide 42: Delivering Best-for-Project Solutions Through Genesis
Delivering Best-for-Project Solutions Through Genesis Genesis: A wholly owned subsidiary of Technip Provide independent, early phase engineering support to concept selection Fixed and floating platform configuration and selection Subsea architecture development and component selection Prov
Slide 43: Commercial Alliance with Heerema
Commercial Alliance with Heerema 5-year worldwide alliance agreement combining capabilities for EPCI projects in ultra-deepwater Working together through ad-hoc JV, consortiums or subcontract arrangements to best answer client requirements Alliance effective immediately on an exclusive basis
Slide 44: Ultra-Deepwater Challenges
Ultra-Deepwater Challenges Deeper water and Vessels with higher tension heavier pipes pipe laying capacities Vessels with higher Heavier subsea equipment lifting/abandonment capacity Increasing use of EPCI Larger developments contracts requiring with contracting interfaces extensive project increasi
Slide 45: Helping Clients to Develop Ultra-deepwater Fields
Helping Clients to Develop Ultra-deepwater Fields Geographical footprint covers key subsea markets worldwide (engineering, sales & business development, yards, spoolbases, flexible & umbilical plants) Unique set of capabilities for ultra- Track record in engineering & project deepwater market: m
Slide 46: High Performing Fleet of 33 Vessels
High Performing Fleet of 33 Vessels1 Flexible-Lay & Construction Rigid Reel-Lay & Rigid S-Lay and Heavy Lift J-Lay 11 units 4 units 5 units Skandi Vitoria Skandi Niteroi G1200 G1201 Deep Blue Deep Sunrise Constructor 2000 Deep Pioneer Hercules Comanche Apache II Normand ST 2612 Progress Deep Orient2
Slide 47: Flexible Pipe Manufacturing Plants
Flexible Pipe Manufacturing Plants Flexi France Le Trait, France Asiaflex Products Tanjung Langsat, Malaysia Flexibrás Vitória, Brazil Port of Açu Açu, Brazil 47 Fourth Quarter and Full Year 2012 Results
Slide 48: Offshore Manufacturing & Logistic Bases
Offshore Manufacturing & Logistic Bases Mobile, Alabama, USA Orkanger, Norway Evanton, UK Port of Angra, Brazil Dande, Angola Carlyss, Louisiana, USA 48 Fourth Quarter and Full Year 2012 Results
Slide 49: Umbilicals Manufacturing Plants
Umbilicals Manufacturing Plants Duco Ltd Newcastle, UK Duco Inc Houston, USA Asiaflex Products Tanjung Langsat, Malaysia Angoflex Lobito, Angola 49 Fourth Quarter and Full Year 2012 Results
Slide 50: Providing Innovative Solutions for Offshore & Subsea Developments
Providing Innovative Solutions for Offshore & Subsea Developments Carbon Fiber Armor Integrated Production Electrically Trace Floating LNG Spars Flexible Pipe Bundle Heated Pipe-in-pipe Breakthrough: Solution for harsh Reduction of Improve flow Active insulation develop remote gas waters d
Slide 51: FLNG, an Innovative Solution for our Customers
FLNG1, an Innovative Solution for our Customers Floating LNG moving from concept to reality 2 facilities under construction after FEED completion Several conceptual studies for various clients Shell FLNG Petronas FLNG Petrobras FLNG 15 year master agreement LNG capacity: 1.2 mtpa L
Slide 52: Acquisition of Stone & Webster Process Technologies
Acquisition of Stone & Webster Process Technologies Acquisition completed on August 31, 2012 Cash consideration of ~€225 million Perimeter excludes Toronto and Baton Rouge sites and all legacy EPC contracts retained by Shaw Cost synergies (notably premises, IT) approximately €7 million, with
Slide 53: Technology Strength Diversifies Our Revenue
Technology Strength Diversifies Our Revenue Process Technologies Licenses Process Design / Engineering Proprietary Equipment Licensed proprietary technologies Process design packages / Design, supply and installation of chosen at early stage of projects engineering to guarantee plant critical
Slide 54: Stone & Webster Process Technologies: Enhanced Portfolio of Downstream Technologies
Stone & Webster Process Technologies: Enhanced Portfolio of Downstream Technologies Business Domains Technologies and Skills Cryogenic separation LNG Cooperation with Air Products and Chemicals, Inc. (APCI) GTL Exclusive co-developer of Sasol Fischer Tropsch reactor technology Steam reformer
Slide 55: Worldwide Organization Dedicated to Downstream Technologies
Worldwide Organization Dedicated to Downstream Technologies Milton Keynes Cambridge Zoetermeer Beijing Claremont Paris Rome Houston Abu Dhabi Mumbai Kuala Lumpur / Singapore Operating centers Associated operating centers Sales offices Technip Stone & Webster Process Technology Team of ~1,200 peo
Slide 56: Technip Stone & Webster Process Technology Leading Position in Growing Markets
Technip Stone & Webster Process Technology Leading Position in Growing Markets Strong Track Record Recent Key Projects ~35% installed capacities with ~120 references CP Chem cracker, USA S&W Ethylene ~25% of licensing over the past 10 years Braskem Comperj petrochemical complex, Brazil Bra
Slide 57: A Unique Worldwide Footprint
A Unique Worldwide Footprint Orkanger Evanton Oslo Pori Aberdeen Stavanger St. Petersburg St. John’s Newcastle Milton Keynes Warsaw London The Hague Calgary Cambridge Le Trait Düsseldorf Paris Lyon Rome Los Angeles Weymouth Ashgabat Barcelona Athens Seoul Houston Baghdad Mobile Cairo Al Khobar New D
Slide 58: Africa: Local Partner With Commitment to Long-term Presence
Africa: Local Partner With Commitment to Long-term Presence Technip in Africa Assets & Activities ~750 people Engineering & project management 1st office founded in 1995 centers Cairo Umbilical manufacturing plant: Angoflex, Angola Spoolbase: Dande, Angola Logistic base: Port Harcourt, N
Slide 59: Asia Pacific: Dedicated Assets for High Potential Market
Asia Pacific: Dedicated Assets for High Potential Market Assets & Activities Technip in Asia Pacific Engineering & project management centers ~8,500 people Flexible/umbilical manufacturing plant: Asiaflex, Founded in 1982 Malaysia, 1st and only one in Asia Logistic base: Batam, Indonesia
Slide 60: Middle East: Largest Engineering Capacity in the Region
Middle East: Largest Engineering Capacity in the Region Assets & Activities Technip in Middle East Engineering & project management ~2,300 people centers Founded in 1984 Wide range of services: from conceptual and feasibility studies to lump sum turnkey projects Baghdad Construction method
Slide 61: North America: Solid Reputation With Enhanced Portfolio of Downstream Technologies
North America: Solid Reputation With Enhanced Portfolio of Downstream Technologies Assets & Activities Engineering & project management centers with North America Subsea, and Onshore/Offshore capabilities ~3,900 people Spoolbases Mobile, Alabama Founded in 1971 Carlyss, Lousiana Umbili
Slide 62: North Sea Canada: Market Leadership in a Growing Market
North Sea Canada: Market Leadership in a Growing Market Assets & Activities Technip in North Sea Engineering & project management centers ~4,900 people Spoolbases Orkanger, Norway 1st office founded in 1978 Evanton, UK Steel tube/thermoplastic umbilical plant Duco Newcastle, UK Orkan
Slide 63: Brazil: 35 years of Local Presence
Brazil: 35 years of Local Presence Assets & Activities Technip in Brazil Engineering & project management centers ~3,700 People Flexible/umbilical manufacturing plants Founded in 1977 Flexibras: since 1986 Port of Açu: High-end flexible manufacturing plant1 Logistic base Campos basin
Slide 64: Technip in Brazil: Steady Development to Provide Unmatched Local Content
Technip in Brazil: Steady Development to Provide Unmatched Local Content Flexible pipe frame agreement with Petrobras 1st IPB2 in Brazil 2012 1st Brazilian PLSV: Skandi Vitória Roncador Field Development & P-52 Platform 2010 1,800m water depth 2007 ~3,700 people 1st LTC1 with Petrobras: Garoupa Plat
Slide 65: Shareholding Structure, November 2012
Shareholding Structure, November 2012 North America 31.7% Employees 2.6% Treasury Shares 2.0% UK & Ireland 11.7% Others Institutional 4.7% Investors 83.1% Individual Shareholders 5.1% Rest of World IFP Energies Nouvelles 18.1% 2.5% FSI 5.2% French Institutional Investors 16.4% Listed on NYSE Euronex
Slide 66: Technip's Share Information
Technip’s Share Information ISIN: FR0000131708 Bloomberg: TEC FP Reuters: TECF.PA SEDOL: 4874160 OTC ADR ISIN: US8785462099 ADR: TKPPY Convertible Bonds: OCEANE 2010 ISIN: FR0010962704 OCEANE 2011 ISIN: FR0011163864 Private Placement Notes: ISIN: FR0010828095 66
Slide 67: Technip has a sponsored Level 1 ADR
Technip has a sponsored Level 1 ADR Bloomberg ticker: TKPPY CUSIP: 878546209 OTC ADR ISIN: US8785462099 Depositary bank: Deutsche Bank Trust Company Americas Depositary bank contacts: ADR broker helpline: +1 212 250 9100 (New York) +44 207 547 6500 (London) e-mail: adr@db.com ADR website: www.adr.db