Technipfmc Plc · NYSE:FTI

Technipfmc — Technip — Q1 2016 Earnings Presentation

50 slides from Technipfmc's earnings presentation, Apr 28, 2016

1. Slide 1: 2016 Results

   ClickQuarter First to edit Master text 2016 Results styles Paris, April 28, 2016

2. 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

3. Slide 3: 1Q 2016: Solid Start to the Year

   1Q 2016: Solid Start to the Year Operational Achievements Financial Performance  Order intake: €930 million reflects overall market outlook  Adjusted Revenue  Subsea: record vessel utilization for a  Subsea at €1.4 billion 1Q supporting multiple installation  Onshore/Offshore at €1.4 billion ca

4. Slide 4: Sound Balance Sheet Maintained

   Sound Balance Sheet Maintained 1Q16 Highlights(1) Net Cash Generated from Operations €82 million EBITDA(2) Credit rating €305 million maintained: Net Cash Position BBB+, outlook stable €1,987 million Bond refinancing Gross Cash completed: €4,320 million €450 million Backlog €15 billion (1) Adjusted

5. Slide 5: 1Q 2016 Operational & Financial Highlights

   1Q 2016 Operational & Financial Highlights

6. Slide 6: Key Milestones on Multiple Projects

   Key Milestones on Multiple Projects North Sea projects successfully completed Golden Eagle, Snøhvit and Gullfaks Offshore campaigns on multiple West First topside load out African projects FMB, Offshore Qatar Girri phase 2 and Block 15/06, Angola TEN, Ghana Moho Nord, Congo TLP float off Malikai TLP

7. Slide 7: Yamal Project Progress in the Quarter

   Yamal Project Progress in the Quarter Construction progress in Sabetta, Russia  Train 1 pilling phase completed  Civil works, roads and foundations on track to receive the modules  7,000 people mobilized on Technip’s scope of work Module delivery on-going  8 modules delivered and installed in 20

8. Slide 8: P&L Performance Supports 2016 Objectives

   P&L Performance Supports 2016 Objectives Y-o-Y € million 1Q 15(1) 1Q 16(1) Change Revenue 2,883 2,762 (4)%  Subsea +7%  High activity in West Africa and Asia EBITDA(2) 244 305 25%  Onshore/offshore (13)%  No significant milestones  Foreign exchange €(97) million EBITDA Margin 8.5% 11.0% 258bp O

9. Slide 9: Cash Flow Generation Reflecting Quarter Activity

   Cash Flow Generation Reflecting Quarter Activity Adjusted Net Cash Bridge € million (23) 178 (305) 199 1,987 1,938 Adjusted net cash Cash from Net capex Net construction Other working Adjusted net cash Dec 2015 operations contracts capital March 2016 9 1Q 2016 Results

10. Slide 10: Accelerated Restructuring Plan on Track

    Accelerated Restructuring Plan on Track Restructuring Plan Highlights SG&A(1) Evolution  One-off charge: €33 million in 1Q16 € million  Sale of activities: Germany and (5)% p.a. Carlyss real estate in the US (11)%  Workforce: down to ~33,000 in 1Q16  Fleet: Skandi Achiever charter ended, 714 645

11. Slide 11: 2016 Objectives Unchanged

    2016 Objectives Unchanged Subsea  Adjusted revenue between €4.7 and €5.0 billion  Adjusted operating income from recurring activities(1) between €640 and €680 million Onshore / Offshore  Adjusted revenue between €5.7 and €6.0 billion  Adjusted operating income from recurring activities(1) betwee

12. Slide 12: Update on Technip in the Current Market Environment

    Update on Technip in the Current Market Environment

13. Slide 13: Market Outlook: the Downturn Will Lead to Fundamental Industry Change

    Market Outlook: the Downturn Will Lead to Fundamental Industry Change 2016 and 2017 Outlook New Industry Paradigm  New project investments continue to be pushed back by low and/or volatile oil price  Emergence of integrated groups of service companies able to provide full-field  Slower offshore i

14. Slide 14: Backlog Provides Visibility Beyond 2016

    Backlog Provides Visibility Beyond 2016 Subsea 1Q 2016 Order Intake: €447 million €6.3 billion €3.4 billion €1.8 billion €1.1 billion 2016 (9 months) 2017 2018 & beyond Onshore & Offshore 1Q 2016 Order Intake: €483 million €8.6 billion €3.8 billion €3.1 billion €1.7 billion 2016 (9 months) 2017 2018

15. Slide 15: Order Intake: Mix of Short Cycle Projects and Long Term Opportunities

    Order Intake: Mix of Short Cycle Projects and Long Term Opportunities…  Onshore/Offshore Projects  Technology, Equipment & Consulting  Continued conversion of reimbursable work  Air Products hydrogen plant, USA  Mutliple Front-End Engineering Design  SP Olefins gas cracker, China (FEED) and ot

16. Slide 16: Broad-Based Oilfield Services and Equipment Company

    Broad-Based Oilfield Services and Equipment Company From an EPC(I) Company … … to an Integrated Oilfield Services and Equipment Company Unique E&C footprint Onshore/  60 years of complex greenfield and brownfield Offshore developments Onshore/ Projects  Long-term relationship with clients Offshore

17. Slide 17: Adapt to Resist and Shape the Future

    Adapt to Resist and Shape the Future FOCUS FOCUS LEADERSHIP LEADERSHIP CLIENT INSIGHT Design & deliver economically viable projects COST STRUCTURE Protect profitability and cashflow BALANCE SHEET Solid partner for long term projects BROAD-BASED OFFER Secure and expand addressable market 17 1Q 2016 R

18. Slide 18: Annex

    Technip 18

19. Slide 19: Fully Integrated Model

    Fully Integrated Model Technip 19

20. Slide 20: Fully Integrated Business Model

    Fully Integrated Business Model Onshore / Offshore Projects Technology, Equipment and Consulting  Engineering Services  Vessel chartering  Engineering Procurement  Manufacturing  Engineering Procurement  Project Management Consultancy Construction  Conceptual studies and FEED  Engineering Pr

21. Slide 21: Technip Onshore Capabilities

    Technip Onshore Capabilities Full Range of Expertise Gas Monetization Petrochemicals Refining Others  LNG  Ethylene  Clean Fuels  Mining and Metals  NGL  Polyolefins  Grassroots  Infrastructures  GTL  Gas Treatment  Aromatics  Heavy Oil  Renewable Activities  Fertilizers  Upgraders 

22. Slide 22: A Unique and Customized Product Range to Match Offshore Client Needs

    A Unique and Customized Product Range to Match Offshore Client Needs Floating Platforms FLNG FPSO Semi-Submersible Spar TLP  Leader in FLNG  Delivered some of the world’s  Designed its own semi-  Leader in Spar design &  Delivering our first TLP in  Combination of Onshore and largest FPSOs sub

23. Slide 23: FLNG Leader with First Mover Advantage

    FLNG Leader with First Mover Advantage Shell Prelude FLNG Petronas FLNG Satu  LNG capacity: 3.6 mtpa  LNG capacity: 1.2 mtpa  Field: Prelude, Western Australia  Field: Offshore Malaysia Project status: Project status:  Construction ongoing in Korea  Execution started in June 2012  Hull steel

24. Slide 24: Onshore/Offshore: Diversified Projects and Worldwide Footprint

    Onshore/Offshore: Diversified Projects and Worldwide Footprint What we do Example of projects Gas Monetization  Prelude FLNG, EPCI, Australia Gas treatment LNG(1)  Yamal LNG, EPC, Russia FLNG(2)  Petronas FLNG Satu, EPCIC, Malaysia Yemen LNG, Yemen GTL(3) Refining  Burgas Refinery, EPC, Bulgaria

25. Slide 25: Technology, Equipment and Consulting

    Technology, Equipment and Consulting How we built these businesses Partnerships Acquisitions Capex R&D  FMC Technologies  Stone & Webster Process  Asiaflex plant  Sustained investments in  RPS Group Technology  Açu plant 2015: €86 million  Sasol GTL(1)  Zimmer  Le Trait upgrade  Innovation

26. Slide 26: Integrated Subsea Solutions at Conceptual Stage

    Integrated Subsea Solutions at Conceptual Stage (1) (2) Providing independent subsea architecture development and component Proprietary Technologies Improving equipment and installation selection converge in subsea architecture Electrically Trace In-line Monitoring Heated Pipe-in- Technologies pipe

27. Slide 27: Technology: A Clear Market Differentiator

    Technology: A Clear Market Differentiator Sustained R&D Investments Examples of Subsea Technologies €86 million of  Electrically Trace € million R&D in 2015 Heated Pipe-in-Pipe 90 75  Al Cable Power 60 Umbilical 45 Examples of Process Technologies 30  DIESTA: Dual enhanced heat 15 transfer surfac

28. Slide 28: Technip Process Technology Diversifies Revenue Streams

    Technip Process Technology Diversifies Revenue Streams Offering three types of services Licenses Process Design / Engineering Proprietary Equipment  Licensed proprietary  Process design packages /  Design, supply and installation technologies chosen at early engineering to guarantee plant of crit

29. Slide 29: Broad Offer of Technology, Equipment and Consulting Solutions

    Broad Offer of Technology, Equipment and Consulting Solutions What we do Example of on-going projects Equipment  Libra and Lula Alto pre-salt flexible supply, Brazil Supply  Block 15/06 East Hub umbilical supply, Angola Le Trait, France  Shell frame-agreement Early  Forsys FEEDs Involvement  Ge

30. Slide 30: Broad Execution Capabilities in Subsea

    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) 30 1Q 2016 Results

31. Slide 31: Strategic Alliances and Partnerships to Reinforce our Position

    Strategic Alliances and Partnerships to Reinforce our Position Alliance with Heerema Integrated approach including for ultra-deepwater sub-surface expertise with RPS Group Heerema’s vessel Aegir Exclusive alliance with Partnership with for pipeline welding Mobile spoolbase, USA 31 1Q 2016 Results

32. Slide 32: High Performing Fleet Per Type of Vessel

    High Performing Fleet(1) Per Type of Vessel (2) Deep Orient Deep Pioneer North Sea Atlantic Deep Arctic Flexible Lay Diving Multi & North Sea Giant Wellservicer Support Construction Skandi Africa Vessel Orelia 9 vessels Coral Do Atlantico 4 vessels Olympic Challenger Estrela Do Mar Skandi Niteroi Sk

33. Slide 33: Flexibility in Fleet Management

    Flexibility in Fleet Management 2013 2014 2015 2016-2017 New +1 (Deep Arctic) +1 (Deep Explorer) Divested -8 -2 -2 Wholly-owned 19 11 10 9 New +2 +4 Divested -1 Jointly-owned 3 5 4 8 New +1 +1 (Skandi Africa) Divested -1 -1 -1-2 Leased 5 5 5 3-4 Under Construction 9 6 5 0 Total Fleet 36 27 24 20-21

34. Slide 34: Subsea: Multiple Projects Filling Plant & Assets Utilization

    Subsea: Multiple Projects Filling Plant & Assets Utilization What we do Example of on-going EPCI projects Frontier Projects  Stones, GoM Ultra-deep water  Odd Job, GoM Skandi Vitoria, Brazil  South Santa Cruz and Barataria fields, GoM First Class  TEN, Ghana (with ) Partnerships  Kaombo, Angola

35. Slide 35: Technip World Leader

    Technip World Leader Technip

36. Slide 36: Technip: World Leader Bringing Innovative Solutions to the Energy Industry

    Technip: World Leader Bringing Innovative Solutions to the Energy Industry  A world leader in project management, engineering and construction for oil & gas, chemicals and energy companies  ~33,000 people in 45 countries  2015 Adjusted Revenue: €12 billion; Adjusted OIFRA(1): €802 million Subsea

37. Slide 37: Global Business with Unique Worldwide Footprint

    Global Business with Unique Worldwide Footprint Evanton Technip Umbilicals(1) Ltd: Newcastle Orkanger Pori Stavanger St. Petersburg Aberdeen Oslo Zoetermeer Moscow Calgary Milton Keynes St. John’s London Warsaw Paris Frankfurt Boston Flexi France: Lyon Le Trait Marseille Seoul Weymouth Barcelona Rom

38. Slide 38: Worldwide Presence across Multiple Markets Addressing all Clients

    Worldwide Presence across Multiple Markets Addressing all Clients Backlog of €14.9 billion diversified by geography and by market split Gas / LNG / FLNG 36% Europe Russia 52% Central Asia Deepwater >1,000 meters* 27% Africa 17% Americas Shallow Water* 23% 18% Asia Pacific Refining / Heavy Oil / 9% 1

39. Slide 39: Pursue a Balance of Contract Sizes

    Pursue a Balance of Contract Sizes(1) Subsea Onshore & Offshore  €6.3 billion backlog  €8.6 billion backlog  Largest projects:  Largest projects:  Kaombo, Angola  Yamal LNG, Russia  Jangkrik, Indonesia  Umm Lulu offshore facilities, UAE  Moho Nord, Congo  11 projects in €100 - 300 million

40. Slide 40: Adjusted Consolidated Statement of Financial Position

    Adjusted Consolidated Statement of Financial Position € million December 31, March 31, 2015 2016 Fixed Assets 6,507.9 6,394.2 Construction Contracts – Amounts in Assets 652.0 699.1 Other Assets 3,874.7 3,904.2 Cash & Cash Equivalents 4,501.4 4,319.5 Total Assets 15,536.0 15,317.0 Shareholders’ Equit

41. Slide 41: Technip: Long Term Partner

    Technip: Long Term Partner(1)  Heerema  Serimax Alliance through combination of unique A strategic partnership to invest in joint assets and engineering resources to help R&D programs and innovative reel-lay clients best address the fast growing welding solutions to meet the growing subsea ultra-d

42. Slide 42: Technip in Africa

    Technip in Africa Assets & Activities Key Projects  1st office founded in 1995  GirRI Phase 1 and 2, Angola  Engineering & project management centers  Egina flexible pipe supply, Nigeria  Moho Nord, Congo  Spoolbase: Dande, Angola  T.E.N., Ghana  Umbilical manufacturing plant: Angoflex, Lobi

43. Slide 43: Technip in Asia Pacific

    Technip in Asia Pacific Assets & Activities Prelude FLNG, Australia  Founded in 1982  Successful partnerships and alliances with COOEC, HQC & MMHE  Engineering & project management centers  Flexible/umbilical manufacturing plant: Asiaflex, Tanjung Langsat, Malaysia, 1st and only one in Asia  Lo

44. Slide 44: Technip in Middle East

    Technip in Middle East Assets & Activities Key Projects  Founded in 1984  Halobutyl elastomer plant, Saudi Arabia  Engineering & project management centers  Umm Lulu package 2, UAE  Wide range of services: from conceptual and  FMB platforms, Qatar feasibility studies to lump-sum turnkey projec

45. Slide 45: Technip in North America

    Technip in North America(1) Assets & Activities  Founded in 1971  Engineering & project management centers with Subsea, and Onshore/Offshore capabilities  Spoolbase Lucius Spar, US Gulf of Mexico  Mobile, Alabama  Umbilicals plant  Technip Umbilicals Inc, Channelview, Texas  Vessels: Deep Blu

46. Slide 46: Technip in North Sea Canada

    Technip in North Sea Canada Assets & Activities  1st office founded in 1978  Engineering & project management centers  Spoolbases  Orkanger, Norway Orkanger Pori  Evanton, Scotland  Steel tube/thermoplastic umbilical plant Evanton Oslo  Technip Umbilicals Ltd, Newcastle, UK Stavanger Aberdeen

47. Slide 47: Technip in Brazil

    Technip in Brazil Assets & Activities  Founded in 1977 ~40 years  Exceeds national content requirements  Operational discipline Açu, Brazil  Flexible supply expertise BAVIT Flexibras:  Wide range of assets: Vitória Flexibras:  High-end manufacturing plants: Vitória and Açu Açu (world’s most te

48. Slide 48: Shareholding Structure, November 2015 (May 2015)

    Shareholding Structure, November 2015 (May 2015) Others 4.7% / (4.4%) Rest of World* 19.0% / (19.3%) Treasury Shares 0.7% / (1.0%) Employees 1.7% / (1.7%) Individual Shareholders 9.1% / (7.5%) IFP Energies Nouvelles 2.4% / (2.4%) BPI 5.3% / (5.2%) North America 37.3% / (37.0 %) French Institutional

49. Slide 49: Technip's Share Information

    Technip’s Share Information ISIN: FR0000131708 Bloomberg: TEC FP Reuters: TECF.PA SEDOL: 4874160 OTC ADR ISIN: US8785462099 OTCQX: TKPPY Convertible Bonds: OCEANE 2011 ISIN: FR0011163864 49 1Q 2016 Results

50. Slide 50: Technip has a sponsored Level 1 ADR

     Technip has a sponsored Level 1 ADR  Bloomberg ticker: TKPPY  CUSIP: 878546209  OTC ADR ISIN: US8785462099  ADR ratio: 1 ORD: 4 ADRs  Depositary bank:  Citibank Shareholder Services  Depositary bank contacts:  ADR broker helpline:  London: +44 207 547 6500 michael.woods@citi.com  New Yor

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