Slide 1: Q1 2018 Earnings Call Presentation
Q1 2018 Earnings Call Presentation May 10, 2018
Slide 2: Disclaimer
Disclaimer Forward-looking statements We would like to caution you with respect to any “forward-looking statements” made in this presentation 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 am
Slide 3: Q1 2018 Overview
Q1 2018 Overview Financial Results and Operational Highlights Doug Pferdehirt, Chief Executive Officer Maryann Mannen, EVP and Chief Financial Officer
Slide 4: Financial highlights
Q1 2018 Financial highlights Total Company $3.1B REVENUE Subsea $1.2B, Onshore/Offshore $1.6B Surface Technologies $372M Total Company $387M Adjusted EBITDA(1) Operating segments $437M Total Company inbound orders $3.5B INBOUND ORDERS Subsea $1.2B, Onshore/Offshore $1.8B Surface Technologies $410M a
Slide 5: iEPCI: Leveraging capabilities, improving revenue mix
iEPCI™: Leveraging capabilities, improving revenue mix Q1 2018 iEPCI™ awards Energean Karish and Tanin: Leveraging capabilities across business segments – seabed to shore Karish and Tanin LLOG Who Dat: Leveraging capabilities in subsea processing in Israel Subsea Production to boost pressure, up
Slide 6: Subsea opportunities in the next 24 months
Subsea opportunities in the next 24 months* STATOIL Johan Sverdrup 2 CNOOC Liuhua 16-2 EXXONMOBIL SHELL Neptun Deep Vito RELIANCE MJ-1 CAIRN & WOODSIDE ENI CHEVRON SNE Zohr 2 POSCO-DAEWOO Anchor & Tigris SHWE 2 ENI ONGC EXXONMOBIL KGD5 98/2 Liza 2 Zabazaba CONOCOPHILLIPS Barossa SHELL Bonga SW PETRO
Slide 7: Onshore/Offshore inbound – from FEED to EPC
Onshore/Offshore inbound – from FEED to EPC Q1 2018 inbound orders: Onshore/Offshore Strength across multiple end markets Gas Processing Petrochemicals Refining Onshore $1.8B Offshore Process Americas FEED FPSO Technologies Middle East, Asia Pacific $1.8B Africa Europe, Russia, Central Asia FEED = f
Slide 8: Growth potential driven by LNG market leadership
Growth potential driven by LNG market leadership Leadership Differentiation 90 Mtpa Global production >20% Of operating LNG 7.8 Mtpa World’s largest LNG An integrated offering from wellhead to LNG loading delivered capacity(1) trains delivered Diversity in scale and technology ▪ Solutions for re
Slide 9: Growth potential driven by new technologies
Growth potential driven by new technologies Magma Strategic Collaboration Agreement Subsea 2.0TM Magma’s composite technology accelerates development Subsea 2.0TM components have been of next generation Hybrid Flexible Pipe (HFP) included in 50% of 2018 FEED studies HFP will complete our Subse
Slide 10: Financial highlights
Q1 2018 Financial highlights Revenue OTHER ITEMS $3.1 billion After-tax charges and (credits) of $36 million Corporate expense of $52 million, excluding charges and Adjusted EBITDA(1) $387 million (credits); includes $19 million of net foreign exchange loss $437 million from Subsea, Onshore/Offs
Slide 11: Segment results
Q1 2018 Segment results Subsea Onshore/Offshore Surface Technologies USD, in millions USD, in millions USD, in millions - 14% - 276 bps - 11% + 504 bps + 50% - 96 bps 1,377 17.3% 1,764 14.5% 14.6% 1,573 372 13.7% 1,180 13.5% 8.6% 248 Revenue Adjusted EBITDA margin Revenue Adjusted EBITDA margin Reve
Slide 12: Cash flow impacted by discretionary items, supported by strong balance sheet
Cash flow impacted by discretionary items, supported by strong balance sheet 6,737 Discretionary Spend Cash required by operating activities of $(202) million; $275M working capital draw a function of project cycles Discretionary items totaled $275 million $120 million: Reduced borrowings, net
Slide 13: Financial impact of ASC Topic 606 / IFRS 15
Financial impact of ASC Topic 606 / IFRS 15 Revenue from Contracts with Customers Income statement, backlog adjustments Margin guidance increased – Onshore/Offshore 2018 Guidance - Onshore/Offshore Modified retrospective method; no prior-period adjustments Revenue in a range of $5.3-5.7 billion
Slide 14: Summary
Summary Q1 2018 – strong inbound orders Total company orders of $3.5 billion; orders exceeded revenues in all segments Subsea book-to-bill > 1 one on a trailing 12-month basis Onshore/Offshore inbound diverse by end-market and geography Market leadership – integrated model and LNG 3 iEPCI™ p
Slide 15: Appendix
Appendix
Slide 16: Backlog visibility
Backlog visibility Subsea* 1Q 2018 Inbound orders: $1,228 million $6.1 billion $2.9 billion $1.7 billion $1.6 billion 2018 (9 months) 2019 2020 & beyond * Backlog does not capture all revenue potential for subsea services. Onshore/Offshore 1Q 2018 Inbound orders: $1,850 million $7.5 billion $3.9 bil
Slide 17: 2018 Full Guidance
2018 Full Guidance *Updated May 9, 2018 Subsea Onshore/Offshore Surface Technologies Revenue in a range of $5.0–5.3 billion Revenue in a range of $5.3–5.7 billion Revenue in a range of $1.5–1.6 billion EBITDA margin1 at least 14% EBITDA margin1 at least 11.5%* EBITDA margin1 at least 17.
Slide 18: Q1 2018 Earnings Call Presentation | 18
Q1 2018 Earnings Call Presentation | 18
Slide 19: Q1 2018 Earnings Call Presentation | 19
Q1 2018 Earnings Call Presentation | 19
Slide 20: Q1 2018 Earnings Call Presentation | 20
Q1 2018 Earnings Call Presentation | 20
Slide 21: Q1 2018 Earnings Call Presentation | 21
Q1 2018 Earnings Call Presentation | 21
Slide 22: Q1 2018 Earnings Call Presentation | 22
Q1 2018 Earnings Call Presentation | 22