Tecnicas Reunidas Sa · BME:TRE
Tecnicas Reunidas Sa — FY2009 Earnings Presentation
25 slides from Tecnicas Reunidas Sa's earnings presentation, Mar 1, 2010
Slide 1: Year 2009 Results Presentation
TECNICAS REUNIDAS Juan Lladó CEO Year 2009 Results Presentation 1st of March 2010
Slide 2: A Successful 2009 for TR under a Challenging Environment
A SUCCESSFUL 2009 FOR TR UNDER A CHALLENGING ENVIRONMENT ¾ Solid execution track record ¾ Healthy and diversified backlog, spanning until 2014 ¾ Build up of quality resources for further growth and competitiveness ¾ Continuous growth in results, dividends and financial strength ¾ Progressive improve
Slide 3: Index
INDEX TECNICAS REUNIDAS ¾ SOLID EXECUTION ¾ HEALTHY BACKLOG ¾ QUALITY RESOURCES ¾ FINANCIAL STRENGTH ¾ ENVIRONMENT AND OUTLOOK 2
Slide 4: Solid Track Record of Execution
SOLID TRACK RECORD OF EXECUTION EXCELLENCE IN EXECUTION OF MAJOR AND COMPLEX PROJECTS AROUND THE WORLD KHABAROVSK IZMIT SINES SAS CARTAGENA JUBAIL BOROUGE KAYAN TALARA Oil and gas Power I&I 3
Slide 5: Commercial Strategy Based on Excellence in Execution and Client Satisfaction
SOLID TRACK RECORD OF EXECUTION COMMERCIAL STRATEGY IS BASED ON EXCELLENCE IN EXECUTION AND CLIENT SATISFACTION ¾ CLIENT SATISFACTION FEEDS BACK INTO REPEAT BUSINESS: RECENT AWARDS TÜPRAS 9 SAUDI ARAMCO 9 ADNOC 9 4
Slide 6: Healthy Backlog
TECNICAS REUNIDAS ¾ SOLID EXECUTION ¾ HEALTHY BACKLOG ¾ QUALITY RESOURCES ¾ FINANCIAL STRENGTH ¾ ENVIRONMENT AND OUTLOOK 5
Slide 7: FY 2009 Backlog
FY 2009 BACKLOG Backlog €m 7,000 6,000 4,713 4,711 4,820 5,000 ¾ HEALTHY 4,000 3,040 ¾ DIVERSIFIED 3,000 ¾ SPANS TO 2014 2,000 1,000 0 2006 2007 2008 2009 Oil and gas Power 6
Slide 8: Healthy Backlog Based on De-risked Awards
HEALTHY BACKLOG BASED ON DE-RISKED AWARDS PROJECTS AWARDED 2009-2010 TALARA O.B.E (INCLUDING FEED) IZMIT O.B.E (INCLUDING FEED) SINES CONVERTED O.B.E JUBAIL LSTK: WITHIN BUDGET SAMIR LSTK AFTER TR’S FEED SAS JV WITH CONSTRUCTION COMPANY 7
Slide 9: FY 2009 Awards and YTD Awards
FY 2009 AWARDS and YTD Awards €m 4,500 4,000 3,582 3,500 Awards 2010: 3,000 2,621 2,661 ¾ Izmit Refinery 2,500 2,207 2,000 ¾ Talara Refinery 1,500 1,000 500 0 2006 2007 2008 2009 2010 Last years reported awards 2010 awards 8
Slide 10: Major 2009 and YTD Awards and OBE Conversion
MAJOR 2009 AND YTD AWARDS AND OBE CONVERSION SAS, Abu Dhabi ¾ Package B: Development of the Sahil and Shah oil fields ¾ Contract value: $ 1,300 million (60%) Al Jubail Refinery, Saudi Arabia ¾ Package 1: Distillation and hydroprocessing Units ¾ Contract value: € 1,200 million Sines Conversion, Portu
Slide 11: Detail on Recent Awards: Modernization of Talara Refinery, Peru
DETAIL ON RECENT AWARDS Modernization of Talara Refinery, Peru Highlights ¾ OBE contract for revamping and extension of the Talara Refinery (Peru) ¾ Project includes main distillation and processing units, such as: catalytic cracking, vacuum distillates, hydrotreating of diesel, hydrotreating of cra
Slide 12: Detail on Recent Awards: Upgrading of Izmit Refinery, Turkey
DETAIL ON RECENT AWARDS Upgrading of Izmit Refinery, Turkey Highlights ¾ OBE contract for the upgrade of the Izmit Refinery (Turkey) ¾ Project includes: hydrocraker, vacuum, coker, naphtha hydrogeneration, diesel desulfurization, hydrogen, sulphur recovery, amine regeneration and sour water strippin
Slide 13: Detail on Recent Awards: Sines Refinery Conversion, Portugal
DETAIL ON RECENT AWARDS Sines Refinery Conversion, Portugal Highlights ¾ OBE contract converted to LSTK for the expansion of the Sines Refinery (Portugal) ¾ Project includes: new hydrocracking unit, a steam reformer, other auxiliary new units and the revamping of existing processes such as topping u
Slide 14: Quality Resources
TECNICAS REUNIDAS ¾ SOLID EXECUTION ¾ HEALTHY BACKLOG ¾ QUALITY RESOURCES ¾ FINANCIAL STRENGTH ¾ ENVIRONMENT AND OUTLOOK 13
Slide 15: Human Resources
HUMAN RESOURCES Headquarters Spain + TR Abroad Employees CAGR 15% Employment growth in 2009: 6,000 5,571 5,232 ¾ 6% overall 5,000 4,412 ¾ 10.5% in graduates 4,000 3,654 3,000 • Headquarters in Spain 2,000 1,000 • Satellite Centres 0 • Diversified Subcontractors 2006 2007 2008 2009 14
Slide 16: Financial Strength
TECNICAS REUNIDAS ¾ SOLID EXECUTION ¾ HEALTHY BACKLOG ¾ QUALITY RESOURCES ¾ FINANCIAL STRENGTH ¾ ENVIRONMENT AND OUTLOOK 15
Slide 17: Sales and EBITDA Growth
SALES AND EBITDA GROWTH SALES EBITDA €m +6% €m 3,000 +5% 2,634 180 2,479 156 2,500 160 148 2,005 140 2,000 113 120 1,500 1,235 100 80 66 1,000 60 40 500 20 0 0 2006 2007 2008 2009 2006 2007 2008 2009 16
Slide 18: Margin Sustainability
MARGIN SUSTAINABILITY EBITDA MARGIN EBIT MARGIN % % 7.0% 7.0% 5.7% 6.0% 5.9% 6.0% 6.0% 5.7% 5.7% 5.4% 5.4% 5.1% 5.0% 5.0% 4.0% 4.0% 3.0% 3.0% 2.0% 2.0% 1.0% 1.0% 0.0% 0.0% 2006 2007 2008 2009 2006 2007 2008 2009 17
Slide 19: Financial Results
FINANCIAL RESULTS Profit and Loss Account 2009 2008 Var. € million Revenues 2,634.3 2,478.5 6.3% EBITDA 155.9 148.3 5.1% Margin 5.9% 6.0% EBIT 149.0 142.3 4.7% Margin 5.7% 5.7% Net Financial Results 12.8 4.7 Profit Before Taxes 160.8 147.5 9.0% Taxes -15.4 -7.2 Net Income 145.4 140.3 3.6% 18
Slide 20: Net Cash Position
NET CASH POSITION ¾ Net cash position at December 31st, 2009: € 796 million €m 900 796 575 600 422 0.34 300 0 2007 2008 2009 19
Slide 21: Dividend Policy
DIVIDEND POLICY ¾ 2008 Dividend payment: € 1.29 per share (€ 70.1 million, 50% payout) DPS progression €/Share 1.5 CAGR 28% 1.3 1.1 0.65 0.68 0.9 0.7 0.52 0.5 0.34 0.64 0.66 0.3 0.45 0.30 0.1 2007 2008 2009 2010* Interim dividend (January) Complementary dividend (July) * Pending approval of AGM 20
Slide 22: Environment and Outlook
TECNICAS REUNIDAS ¾ SOLID EXECUTION ¾ HEALTHY BACKLOG ¾ QUALITY RESOURCES ¾ FINANCIAL STRENGTH ¾ ENVIRONMENT AND OUTLOOK 21
Slide 23: Progressive Improvement in the Business Environment
PROGRESIVE IMPROVEMENT IN THE BUSINESS ENVIRONMENT ¾ Resiliency of Middle East upstream and downstream investment throughout 2009 ¾ Resurgence of projects outside the Middle East in 2H2009-2010 ¾ Geographical shift of the world downstream investment: from developed countries toward producers and m
Slide 24: 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 2009. This document contains forward-looking statements of the Company and/or its management. These forwar
Slide 25: UNIDAS
y UNIDAS