Tecnicas Reunidas Sa · BME:TRE
Tecnicas Reunidas Sa — 9M 2020 Earnings Presentation
20 slides from Tecnicas Reunidas Sa's earnings presentation, Nov 11, 2020
Slide 1: Nine Months 2020 Results Presentation
NINE MONTHS 2020 RESULTS PRESENTATION NOVEMBER 11TH 2020 JUAN LLADÓ CHAIRMAN AND CEO
Slide 2: Content
CONTENT Financial highlights under Covid-19 Proactive management in the current environment Energy transition and outlook 2
Slide 3: Solid performance despite Covid environment in 9M 2020
SOLID PERFORMANCE DESPITE COVID ENVIRONMENT IN 9M 2020 BACKLOG SALES €9.2Bn €2.8Bn Strong backlog despite award Sales shift due to execution slowdown slowdown and reprogramming ADJUSTED EBIT margin* NET CASH 3.1% €113M Improving margins Significant net cash position *Adjusted EBIT excludes the impac
Slide 4: Backlog execution reprogrammed due to Covid-19
BACKLOG EXECUTION REPROGRAMMED DUE TO COVID-19 Backlog execution schedule €11.8bn* February 2020 2021 2022 & beyond 2020 €4.9bn €4.1bn €2.8bn *December 2019 backlog + Hassi Messaoud (Algeria) project awarded in January 2020 4
Slide 5: Backlog execution reprogrammed due to Covid-19
BACKLOG EXECUTION REPROGRAMMED DUE TO COVID-19 Backlog execution schedule €11.8bn* February 2020 2021 2022 & beyond 2020 €4.9bn €4.1bn €2.8bn November 2020 2021 2022 & beyond 2020 €3.6bn €3.6bn €4.6bn *December 2019 backlog + Hassi Messaoud (Algeria) project awarded in January 2020 5
Slide 6: Backlog margin moving towards normalized business
BACKLOG MARGIN MOVING TOWARDS NORMALIZED BUSINESS 9M 2020 EBIT €M 3.1% 10 1.2% 44 87 33 EBIT Covid Restructuring Adjusted EBIT 6
Slide 7: Backlog margin moving towards normalized business
BACKLOG MARGIN MOVING TOWARDS NORMALIZED BUSINESS 9M 2020 EBIT 4.1% €M 71* 3.1% 10 158 1.2% 44 87 33 EBIT Covid Restructuring Adjusted Rescheduled Embedded EBIT EBIT EBIT *€ 1,013M of delayed sales at 7.0% gross margin (historical project margin) 7
Slide 8: Content
CONTENT Financial highlights under Covid-19 Proactive management in the current environment Energy transition and outlook 8
Slide 9: Reprogramming is an opportunity for project execution de-risking
REPROGRAMMING IS AN OPPORTUNITY FOR PROJECT EXECUTION DE-RISKING Avoidance of risks arising at construction through better… More defined, advanced and flawless engineering ENGINEERING Less revisions, best bulk material purchasing and less construction reworks Containment of raw materials and commodi
Slide 10: Proactively working to capture efficiencies and streamline operations
PROACTIVELY WORKING TO CAPTURE EFFICIENCIES AND STREAMLINE OPERATIONS ALREADY ANNUALIZED EFFECT IMPLEMENTED Workforce reduction of 20% € 64M € 119M Rentals reduction of >15,000sqm € 1M €9M Optimization in operations € 37M € 50M € 102M € 178M YTD Divestment plan € 28M 56% achieved 10
Slide 11: Strengthened financial profile
STRENGTHENED FINANCIAL PROFILE Credit facilities Debt maturity €M (as of June 2020) (as of 30 Sept 2020) Total cash 1,010 113 118 438 897 275 341 171 169 163 47 64 Bilateral Syndicated Private TOTAL facilities facilities placement 2020 2021 2022 2023 2024 2024+ LIQUIDITY 11
Slide 12: Ongoing pipeline opportunities
ONGOING PIPELINE OPPORTUNITIES $43 Bn in opportunities 4% 11%5% 37% 19% 59% 65% Shif to gas Clean fuels and petchem Bio fuels and renewables Africa and M East Europe Americas Asia 12
Slide 13: Content
CONTENT Financial highlights under Covid-19 Proactive management in the current environment Energy transition and outlook 13
Slide 14: TR's capabilities will play an important role through the energy transition
TR’S CAPABILITIES WILL PLAY AN IMPORTANT ROLE THROUGH THE ENERGY TRANSITION TÉCNICAS REUNIDAS CURRENT ACTIVITY Deployment of WIND AND SOLAR BIOMASS POWER renewable RENEWABLE FUELS POWER GENERATION GENERATION energies Decarbonization REDUCE FLARING AND REDUCE METHANE INTEGRATION WITH of oil and gas S
Slide 15: Our clients are already recognizing our capabilities
OUR CLIENTS ARE ALREADY RECOGNIZING OUR CAPABILITIES Deployment of Decarbonization Development of Production of renewable of oil and gas low carbon clean fuels energies infrastructures technologies In execution In execution In execution In execution Biomass power plants Revamping and high complexity
Slide 16: Main takeaways and business outlook
MAIN TAKEAWAYS AND BUSINESS OUTLOOK Main takeaways Solid performance despite COVID environment Win-win opportunity to profit from projects Cost cutting and operations improvement Strengthened financial profile TR forecast*: Sales Above €3.5 Bn Adjusted EBIT margin Around 3.0% *Assuming the maintenan
Slide 17: 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 statemen
Slide 18: Appendix
ti TECNICAS REUNIDAS CONTENT > APPENDIX 18
Slide 19: Sustainability: ambitious targets and achievements
SUSTAINABILITY: AMBITIOUS TARGETS AND ACHIEVEMENTS ENVIRONMENT SOCIAL GOVERNANCE • Top ranked companies in the CDP 2019 (Carbon • Continuous commitment with the Disclosure Project) – Climate Change with score development of regional áreas, through local • 20% of variable retribution of the executive
Slide 20: SVGINN3Y SVDIND3L
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