Technipfmc Plc · NYSE:FTI
Technipfmc — Investor Presentation (March 2024)
41 slides from Technipfmc's investor presentation, March 2024
Slide 1: Investor Relations Overview
Investor Relations Overview March 2024
Slide 2: Disclaimer
Disclaimer Forward-looking statements This communication contains “forward-looking statements” 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 amended. Forward-looking statements usually relat
Slide 3: Contents
Contents 1 Operational and financial highlights 2 Company overview Investor Relations Overview | 3
Slide 4: Section 1: Operational and financial highlights
Section 1: Operational and financial highlights Investor Relations Overview | 4
Slide 5: Q4 2023 Operational summary
Q4 2023 Operational summary Highlights Subsea inbound of $1.3 billion; full-year orders of $9.7 billion driven by record level of iEPCI™ awards Subsea ending backlog of $12.2 billion; highest level since creation of TechnipFMC Sequential revenue growth in Subsea Services; asset maintenance and
Slide 6: Q4 2023 Financial results
Q4 2023 Financial results Sequential highlights Total Company adjusted EBITDA of $245 million, excluding foreign exchange: $1.5B Inbound orders • Subsea declined due to seasonal impact on vessel-based project activity and mix of projects executed from backlog $13.2B • Surface Technologies benefite
Slide 7: Subsea opportunities in the next 24 months
Subsea opportunities in the next 24 months1 EQUINOR Fram Sør EQUINOR BP Johan Sverdrup Ph 3 Kaskida CHEVRON BP Aphrodite Tiber ENERGEAN SHEL L Katlan (Olympus) ENI Leopard EXXONMOBIL Gendalo / Gandang Whiptail MELLITAH Bahr Essalam ONGC ENI WOODSIDE EXXONMOBIL KG-DWN-98/2 Cluster 3 Maha Trion Guyana
Slide 8: 2024 Full-year financial guidance
2024 Full-year financial guidance1 As of February 22, 2024 Subsea Surface Technologies Revenue in a range of $7.2 – 7.6 billion Revenue in a range of $1.2 – 1.35 billion Adjusted EBITDA margin in a range of 15.5 – 16.5% Adjusted EBITDA margin in a range of 13 – 15% • Includes anticipated fin
Slide 9: Q4 2023 Cash flow and net debt
Q4 2023 Cash flow and net debt Free cash flow (in $ millions) $630M (72) Net Debt (In millions, unaudited) (303) December 31, 701 2023 (77) 11 Cash and cash equivalents $ 952 Short-term debt and current portion 952 of long-term debt (154) Long-term debt, less current portion (913) 691 Net debt $ (11
Slide 10: Backlog scheduling provides visibility
Backlog scheduling provides visibility Subsea1 Surface Technologies as of December 31, 2023 as of December 31, 2023 2026+ $3.9B 2024 $4.8B 2024 $12.2 2025+ $1.1 $484M billion $583M billion 2025 $3.4B 1 Backlog does not capture all revenue potential for Subsea Services Investor Relations Overview | 1
Slide 11: Section 2: Company overview
Section 2: Company overview Investor Relations Overview | 11
Slide 12: TechnipFMC snapshot
TechnipFMC snapshot #1 3 41 Integrated solutions Pillars for Energy Transition Countries with current provider for the oil and gas (Offshore floating renewables, operations industry GHG removal, Hydrogen) >90% $7.8bn $13.2bn Total company Total company Total company international revenue revenue2 ba
Slide 13: ESG and TechnipFMC
ESG and TechnipFMC Our corporate strategy and foundational beliefs drive our approach to ESG practices TechnipFMC Corporate Strategy Technology Integration Collaboration Alliances Execution Environmental Social Governance • Our carbon footprint • Awareness and culture • Leadership in HSE • Our clien
Slide 14: Our environmental focus on carbon reduction
Our environmental focus on carbon reduction Targeting 50% reduction in Scope 1 and 2 emissions by 20301 Wind Hydro Hybrid / Biofuels Utilization of renewable resources for internal energy consumption 1. Versus 2017 baseline Investor Relations Overview | 14
Slide 15: Technology leadership
Technology leadership Integration technologies Digital and automation Robotics NextGen Precision Subsea 2.0™ subsea controls robotics for ROV Surface production Subsea iProduction™ automation mechatronics Using differentiated technologies to Applying Subsea digital and Utilizing mechatronics to tran
Slide 16: Overview of TechnipFMC segments
Overview of TechnipFMC segments Subsea Surface Technologies Financial contribution Subsea products ‣ Drilling, completion and production wellhead Revenue1 ‣ Trees, manifolds, control, templates, flowline equipment, chokes, compact valves, manifolds and Surface systems, umbilicals and flexibles contr
Slide 17: Subsea competitive strengths
Subsea competitive strengths Market leading positions built Differentiated offering of Technology advancements to upon innovation and deep integrated products, services: drive greater efficiency and industry knowledge iFEED™, iEPCI™ and iLoF™ simplification Subsea Production FEED Studies Flexibles U
Slide 18: SPS / SURF – critical components of offshore development
SPS / SURF – critical components of offshore development Oil Strong history of & gas industry has strong history SPS / SURF is one of the largest subseatree of subsea treeorders orders components of project costs Subsea tree orders by region 2010-2022 (trees) 600 Drilling / Well SPS / SURF 551 Const
Slide 19: Improving project economics for deepwater projects
Improving project economics for deepwater projects More than 400 deepwater discoveries 500 have yet to be developed 410 Projects 400 Good progress on deepwater cost reductions with potential for additional 300 savings +40% to 60% 200 Standardization, technology and strong project execution can
Slide 20: Subsea offers a full suite of capabilities
Subsea offers a full suite of capabilities Conceptual Design Life-of-Field Project Execution & FEED1 and Maintenance Engineering Procurement Equipment Construction Installation supply Maximized Unique asset Rationalized subsea reliability and architecture Joint SPS+SURF R&D Shortened time to first a
Slide 21: Integrated approach redefining subsea project economics
Integrated approach redefining subsea project economics Traditional approach Enhancements Key benefits One global contractor Reduced material costs Integrated procurement Simplified equipment set-up Optimized subsea architecture Fewer subsea production Optimized flow assurance system i
Slide 22: Making subsea short-cycle with Subsea 2.0 + iEPCI
Making subsea short-cycle with Subsea 2.0™ + iEPCI™ Subsea 6 month Break-even Shell Kaikias iEPCI™ schedule price 2.0™ reduction <$30/bbl TechnipFMC is changing the subsea paradigm from a long-cycle to a short-cycle business, using Subsea 2.0™ and a truly integrated approach (iEPCI™) to field develo
Slide 23: Unique drivers of Subsea revenue growth
Unique drivers of Subsea revenue growth Subsea Services Alliance partners • Diversified revenue base of more than $1.5 billion in 2023 • Long-term, mutually beneficial relationships • Resilient, margin-accretive aftermarket services • iEPCI™ alliances utilize full integrated offering • Service poten
Slide 24: All-electric subsea production systems
All-electric subsea production systems Reducing infrastructure to create low carbon opportunities • Infrastructure and installation time reduced with removal of hydraulic lines, simplified umbilicals and lighter assets • Enables full field electrification of subsea production system, allowing for us
Slide 25: Surface Technologies competitive strengths
Surface Technologies competitive strengths Leading market positions in Delivering technology that Integrated offering delivers up several niche product offerings extends asset life, improves to $1m in savings per well, returns creates unique growth platform Wellhead Flowline Stimulation, Flowback an
Slide 26: iProduction
iProduction™ Separation system Replicating the Subsea playbook to transform onshore production • Proprietary technology and integrated ecosystem streamlines operations; reduces footprint, GHG emissions, capital costs, time to first oil • • Integrated offering operates under a single digital interfac
Slide 27: New Energy
New Energy Core competencies drive our three strategic pillars Greenhouse gas removal Offshore floating renewables Hydrogen integrated Offshore Novel Energies – iONE™ Market approach driven by 3 main pillars; our role in the long-term path to net zero will be as offshore ‘Energy Architect’ • Greenho
Slide 28: Deep Purple – Redefining subsea energy
Deep Purple™ – Redefining subsea energy Integrating renewables and hydrogen storage to deliver new energy resources • Collaboration with clients and partners to make renewables more commercially viable offshore • Utilize hydrogen fuel cells to store excess power Novel wind generated from wind and wa
Slide 29: Appendix
Appendix Investor Relations Overview | 29
Slide 30: Glossary
Glossary Term Definition Term Definition CAGR Compound Annual Growth Rate iLOF™ Integrated Life of Field CCS Carbon Capture and Storage LNG Liquefied Natural Gas ESG Environmental, Social and Governance MMb/d Million Barrels per Day FID Final Investment Decision Mtpa Million Metric Tonnes per Annum
Slide 31: Q4 2023 Supporting financial data
Q4 2023 Supporting financial data Investor Relations Overview | 31
Slide 32: Reconciliation of GAAP to non-GAAP financial measures
Exhibit 6 TECHNIPFMC PLC AND CONSOLIDATED SUBSIDIARIES RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (In millions, except per share data, unaudited) In addition to financial results determined in accordance with U.S. generally accepted accounting principles (GAAP), the fourth quarter 2023 Ea
Slide 33: Reconciliation of GAAP to non-GAAP financial measures
Exhibit 7 TECHNIPFMC PLC AND CONSOLIDATED SUBSIDIARIES RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (In millions, unaudited) Three Months Ended Year Ended December 31, September 30, December 31, December 31, December 31, 2023 2023 2022 2023 2022 Net income (loss) attributable to TechnipFMC
Slide 34: Reconciliation of GAAP to non-GAAP: Q4 2023
Exhibit 8 TECHNIPFMC PLC AND CONSOLIDATED SUBSIDIARIES RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (In millions, unaudited) Three Months Ended December 31, 2023 Surface Technologie Corporate Foreign Subsea s Expense Exchange, net Total Revenue $ 1,720.5 $ 357.2 $ — $ — $ 2,077.7 Operating
Slide 35: Reconciliation of GAAP to non-GAAP: Q3 2023
Exhibit 8 TECHNIPFMC PLC AND CONSOLIDATED SUBSIDIARIES RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (In millions, unaudited) Three Months Ended September 30, 2023 Surface Technologie Corporate Foreign Subsea s Expense Exchange, net Total Revenue $ 1,708.3 $ 348.6 $ — $ — $ 2,056.9 Operating
Slide 36: Reconciliation of GAAP to non-GAAP: Q4 2022
Exhibit 8 TECHNIPFMC PLC AND CONSOLIDATED SUBSIDIARIES RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (In millions, unaudited) Three Months Ended December 31, 2022 Surface Technologie Corporate Foreign Subsea s Expense Exchange, net Total Revenue $ 1,342.5 $ 351.9 $ — $ — $ 1,694.4 Operating
Slide 37: Reconciliation of GAAP to non-GAAP: Year 2023
Exhibit 9 TECHNIPFMC PLC AND CONSOLIDATED SUBSIDIARIES RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (In millions, unaudited) Year Ended December 31, 2023 Foreign Surface Corporate Exchange, Subsea Technologies Expense net Total Revenue $ 6,434.8 $ 1,389.4 $ — $ — $ 7,824.2 Operating profit
Slide 38: Reconciliation of GAAP to non-GAAP: Year 2022
Exhibit 9 TECHNIPFMC PLC AND CONSOLIDATED SUBSIDIARIES RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (In millions, unaudited) Year Ended December 31, 2022 Foreign Exchange, Surface Corporate net and Subsea Technologies Expense Other Total Revenue $ 5,461.2 $ 1,239.2 $ — $ — $ 6,700.4 Operati
Slide 39: Net debt reconciliation
Exhibit 10 TECHNIPFMC PLC AND CONSOLIDATED SUBSIDIARIES RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (In millions, unaudited) December 31, September 30, December 31, 2023 2023 2022 Cash and cash equivalents $ 951.7 $ 690.9 $ 1,057.1 Short-term debt and current portion of long-term debt (153
Slide 40: Free cash flow reconciliation
Exhibit 11 TECHNIPFMC PLC AND CONSOLIDATED SUBSIDIARIES RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (In millions, unaudited) Three Months Ended Year Ended December 31, December 31, 2023 2023 2022 Cash provided by operating activities $ 701.1 $ 693.0 $ 352.1 Capital expenditures (71.5) (225
Slide 41: Investor Relations contacts
Investor Relations contacts Matthew Seinsheimer Senior Vice President, Investor Relations and Corporate Development Tel.: +1 281 260 3665 Email: InvestorRelations@TechnipFMC.com James Davis Director, Investor Relations Tel.: +1 281 260 3665 Email: InvestorRelations@TechnipFMC.com TechnipFMC.com