Slide 1: H1 2022 Results Investor Presentation
Technology for a sustainable world INVESTOR H1 2022 Results PRESENTATION July 29, 2022
Slide 2: Disclaimer
Disclaimer This presentation does not contain or constitute an offer of securities for sale or an invitation or inducement to invest in securities in France, the United States or any other jurisdiction. It includes only summary information and does not purport to be comprehensive. No representation,
Slide 3: Agenda
Agenda 1 2 3 4 5 KEY FOCUS ON STRATEGY FINANCIALS OUTLOOK HIGHLIGHTS INNOVATION & ACTIVITY H1 2022 Results Presentation – 29/07/2022 3
Slide 4: GTT Group: Technology for a sustainable world
GTT Group: Technology for a sustainable world Our Conviction Our Mission Our Key Assets • Technology is the most • Conceive cutting-edge • Human capital: unique efficient enabler of technological solutions combination of skills the energy transition to help building a sustainable • Intellectual capi
Slide 5: Key Highlights
1 Key Highlights H1 2022 Results Presentation – 29/07/2022 5
Slide 6: H1 2022: Key Highlights
H1 2022: Key Highlights Orders and revenues Smart Shipping • Core business: 88 LNGCs ordered in H1 2022 • New contract to equip more than 30 vessels within • LNG as fuel: 38 orders in H1 2022 2 years • H1 2022 revenues: €144.2 million, -13% due to a base Elogen effect, with H1 2021 benefitting from
Slide 7: H1 2022 orderbook: already a new record thanks to strong commercial momentum
H1 2022 orderbook: already a new record thanks to strong commercial momentum Order book FY 2021 H1 2022 new orders H1 2022 deliveries Order book H1 2022 LNGC 137 +88 (15) 210 VLEC 6 - (4) 2 FSRU 0 - - 0 FSU 2 - - 2 FLNG 1 - (1) 0 Onshore Storage 12 - - 12 GBS 3 - - 3 88 (20) GTT order book movements
Slide 8: Focus on innovation
2 Focus on innovation H1 2022 Results Presentation – 29/07/2022 8
Slide 9: H1 2022 Innovation: development of new technologies for maritime transport
H1 2022 Innovation: development of new technologies to improve the environmental performance of maritime transport THREE-TANK LNGC LIQUID H2 TRANSPORT Ongoing AiP process for a 174k m3 three-tank 2 AiPs from DNV for the basic design of the LNGC concept for Mark III and NO96 vessel and the containmen
Slide 10: Strategy & activity: LNG carriers & other core applications
3 Strategy & activity LNG carriers & other core applications H1 2022 Results Presentation – 29/07/2022 10
Slide 11: Europe: Russian gas to be partially offset by LNG imports
Europe: Russian gas to be partially offset by LNG imports EU GAS DEMAND (2021) 10 FSRU PROJECTS FIDED IN H1 22 IN EUROPE Germany: x4 Brunsbuttel (RWE) Wilhelmshaven (RWE) Proposed FSRUs Unknown location x2 (Uniper) Other LNG FIDed FSRUs in H1 22 21% Russian LNG Operating/FIDed before 2022 FSRUs Othe
Slide 12: While spot prices are highly volatile, long term prices remain attractive
While spot prices are highly volatile, long term prices remain attractive SPOT LNG PRICES AT RECORD LEVELS 40 couleur 35 Asian Spot LNG 30 European 25 Spot LNG High LNG spot prices $/Mmbtu 20 reflect 15 LNG Long term • A lack of available LNG on the (Oil index) 10 market 5 • Competition between Asia
Slide 13: LNG contracting activity at its highest level ever
LNG contracting activity at its highest level ever LNG LT SPA (>10Y) SIGNED LT SPA SIGNED IN 2022 BY DESTINATION Mtpa Mtpa 25 Europe; 5 20 Portfolio/Trader; 16 15 10 China; 9 5 0 Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 Q3 20 Q4 20 Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 Q2 22 Other From US pre FID projects From n
Slide 14: LNG supply & demand: new capacity required as of today
LNG supply & demand: new capacity required as of today LNG SUPPLY & DEMAND BALANCE FORECAST 800 700 ~270 Mtpa 600 500 Current geopolitical situation increases global demand mtpa 400 • Current LNG consumption 300 constrained by lack of available supply 200 100 • More FIDs required to fill the gap in
Slide 15: LNG supply: already 2 FIDs in 2022 for 23 Mtpa
LNG supply: already 2 FIDs in 2022 for 23 Mtpa VOLUME Contracted (SPA) PROJECT COUNTRY OPERATOR Comments (Mtpa) as 30/06/2022 Plaquemines Phase 1 US Venture Global 13 FID in Q2 22 FID in 2022 Corpus Christi Stage III US Cheniere 10 FID in Q2 22 Plaquemines Phase 2 US Venture Global 7 70% Driftwood P
Slide 16: GTT well positioned to capture orders from vessel renewal
GTT well positioned to capture orders from vessel renewal LNGC FLEET BY PROPULSION TYPE EXISTING LNGC FLEET BY DELIVERY DATE ST; 240; 39% 60 MEGI/XDF; 164; 27% 50 40 30 20 10 0 Before 1998 2002 2006 2010 2014 2018 2022 1995 Diesel; 52; 8% Diesel DFDE MEGI/MEGA/XDF ST DFDE; 164; 26% Steam Turbine and
Slide 17: Growing long-term estimates for GTT orders
Growing long-term estimates for GTT orders ESTIMATED GTT CUMULATIVE ORDERS OVER MID 2022- MID 2031 (10 YEARS) LNGC Between 400 & 450 units VLEC Between 25 & 40 units FSRU Up to 10 units(1) FLNG 5 units Onshore & GBS tanks Between 25 & 30 units (1) Exclude conversion of existing LNG carriers into FSR
Slide 18: Strategy & activity: LNG as fuel
3 Strategy & activity LNG as fuel H1 2022 Results Presentation – 29/07/2022 18
Slide 19: Growing attractiveness of LNG as fuel
Growing attractiveness of LNG as fuel LNG FUEL MARKET SHARE ON LARGE VESSELS1 160 70% 140 60% LNG fuel market share 120 LNG fuelled Orders 50% 100 40% 65% of large vessel orders are 80 LNG fuel in H1 22 vs 35% in 30% 60 2021 20% 40 • Driven by high penetration of LNG 20 10% as fuel in containerships
Slide 20: LNG fuel: GTT orders on containerships strongly picking up
LNG fuel: GTT orders on containerships strongly picking up 7K+ TEU LNG FUELLED CONTAINERSHIP ORDERS 80 70 GTT market share above 50% in 2022 # 7k+ TEU LNG fuelled orders 60 on 7k+ TEU LNG fuelled 50 containerships 40 Expanding market in mid-size 30 containerships 20 10 0 2016 2017 2018 2019 2020 202
Slide 21: Strategy & activity: Smart shipping
3 Strategy & activity Smart shipping: Optimising energy- efficiency with digital solutions H1 2022 Results Presentation – 29/07/2022 21
Slide 22: Smart Shipping: new milestones in H1 2022
Smart Shipping: new milestones in H1 2022 Key innovations New contract with a major - Speed optimisation now player for more than 30 vessels adapted to offshore vessels - deployment of sensors, - New module for LNG fuelled automatic data collection systems vessels: heel and bunker and intelligent so
Slide 23: Strategy & activity: ELOGEN
Strategy & activity ELOGEN H1 2022 Results Presentation – 29/07/2022 23
Slide 24: Elogen – New international partnerships with strong local players
Elogen – New international partnerships with strong local players Photo à updater Signature with Valmax Signature with HiFraser Signature of a LOI with Technology Corporation Group of a collaboration Charbone Hydrogen to of a collaboration agreement for the provide PEM electrolysers agreement for th
Slide 25: Elogen – New milestones in July 2022
Elogen – New milestones in July 2022 Validation by the European Commission New contract with Symbio for the supply of Elogen's participation in the Hydrogen of a PEM electrolyser with an initial IPCEI capacity of 2.5 MW The project consists in increasing the intensity Delivery by Elogen during the f
Slide 26: Elogen growth to rely on its three strategic pillars
Elogen growth to rely on its three strategic pillars R&D PRODUCTION MASSIFICATION • Increase competitiveness through cost • Elogen is currently the only player producing New materials reduction and efficiency improvement in France (Les Ulis, Greater Paris area) (kWh/H2kg) and create entry barriers C
Slide 27: Financials
4 FINANCIALS H1 2022 Results Presentation – 29/07/2022 27
Slide 28: H1 2022: An all time high order book
H1 2022: An all time high order book (core business(1)) ORDER BOOK IN UNITS ORDER BOOK BY YEAR OF DELIVERY (UNITS PER YEAR) In units In units Order book at June 30, 2021 Order book at Dec. 31, 2021 80 Order book at June 30, 2022 229 63 161 57 136 45 45 38 42 39 37 25 24 20(2) 15 5 1 2 17 As at June
Slide 29: H1 2022: Consolidated revenues
H1 2022: Consolidated revenues SUMMARY FINANCIALS KEY HIGHLIGHTS in €M H1 2021 H1 2022 Change Revenues An expected decrease in H1 22 Total Revenues 165.3 144.2 -12.7% €144M due to base effect • Revenues from newbuilds (royalties): New Builds 153.9 130.7 -15.1% €131 million (-15% vs H1 2021) % of rev
Slide 30: H1 2022: Financial performance in line with expectations
H1 2022: Financial performance in line with expectations SUMMARY CONSOLIDATED ACCOUNTS KEY HIGHLIGHTS EBITDA (-17% vs H1 2021) in €M H1 2021 H1 2022 Change • Lean and fit cost approach €80M • Limited impact of Elogen due to commercial Total Revenues 165.3 144.2 -12.7% and R&D efforts EBITDA(1) 96.5
Slide 31: H1 2022: Stable cost base
H1 2022: Stable cost base GTT CONSOLIDATED OPERATIONAL COSTS KEY HIGHLIGHTS in €M H1 2021 H1 2022 Change (%) Goods purchased (+25% vs H1 2021) Goods purchased (4.8) (6.0) +25.1% €6M • Increase due to Elogen ongoing contracts % sales -3% -4% Subcontracted Test and Studies (14.4) (12.7) -12.0% Rental
Slide 32: Update on GTT Russian exposure
Update on GTT Russian exposure Projects being built in Russia Projects dedicated specifically LNGC projects for Russia, built to Arctic conditions, built in Asia in Asia, able to operate in all types of conditions Contracts Contracts • 15 ice-breaking LNGCs (Zvezda • 6 ice-breaking LNGCs, in Asian s
Slide 33: Outlook
Changer photo 5 Outlook H1 2022 Results Presentation – 29/07/2022 33
Slide 34: 2022 Outlook
2022 Outlook On February 17, 2022, the Group published the following outlook for 2022: 2022 consolidated revenue estimated in a range Revenue of €290M to €320M Taking into account some delays in ships construction schedules during 2022 consolidated EBITDA estimated in a range the first half of the y
Slide 35: 2022 Mid-term outlook
2022 Mid-term outlook Revenue and results expected, from 2023 onwards, will be significantly higher than in 2022, driven by robust order momentum. Furthermore, the crisis highlights the importance of gas globally, the need for European countries to achieve energy independence in respect of Russia an
Slide 36: Appendices
Appendices H1 2022 Results Presentation – 29/07/2022 36
Slide 37: Glossary
Glossary The following abbreviations have been used throughout this document BOR Boil Off Rate FSU Floating Storage Unit MEGI M-type, Electronically Controlled Gas Injection APAC Asia-Pacific GBS Gravity Based Structure Mtpa Million tons per annum CAGR Compound Annual Growth Rate GHG Greenhouse Gase
Slide 38: Innovation roadmap
Innovation roadmap CORE BUSINESS LNG AS FUEL Further reduce Offer the best LNGC CO2 footprint technologies for alternative fuels Enabling better energy Adaptation of core efficiency by reducing technologies to enable vessel's construction & decarbonisation, notably operating costs with LNG as fuel A
Slide 39: Technology for a Sustainable World
Technology for a Sustainable World 6. Transformation LH2 transportation Towards a in partnership with Shell zero-carbon future Hydrogen Electrolysers Gas handling technologies Recycool™ 2. Improvement Evolution of GTT systems: NO96 Super+ 1. Intensification Mark III Flex+ 5. Enlargement Smart shippi
Slide 40: High mid term charter rates reflecting a lack of available modern LNGCs
High mid term charter rates reflecting a lack of available modern LNGCs 1 YEAR CHARTER RATES ABOVE $150K/D $200k/d MEGI/XDF (174k cbm) DFDE (155-165k cbm) LNG shipping very tensed in $100k/d mid term Steam Turbine (138-145k cbm) • Highest level ever for MEGI/XDF 1y charter rate ($170k/d in June) Jan
Slide 41: LNG as fuel: the best transition energy for the shipping industry
LNG as fuel: the best transition energy for the shipping industry Alternative fuels Traditional LNG Methanol Ammonia MDO(4) Current CO2 emissions (gCO2/kWh WtW(1)) 530 720 790 690 Decarbonisation potential (in next 10-15 years) With bio and e-fuels e-ammonia only Bio diesel only Price(2) ($/MWh) ~38
Slide 42: LNG as fuel: GTT is targeting a wide range of markets
LNG as fuel: GTT is targeting a wide range of markets where LNG and membrane are the right fit Market potential Rationale for LNG fuel Rationale for GTT membrane technology Market over the next Segments 10 years Reputation / High Expensive No room Space charterer push on Other (source: Clarksons) co
Slide 43: Cost of hydrogen: Improving electrolysers efficiency is a key driver to reduce OPEX
Cost of hydrogen: Improving electrolysers efficiency is a key driver to reduce OPEX BREAKDOWN OF HYDROGEN COST (€/KG) – BASE 100 Maintenance Maintenance Water Water OPEX c.73% Power OPEX Power c.92% Key assumptions Renewables Grid connected connected (renewable energy) Electrolyser Capacity 1 MW Dis
Slide 44: An attractive business model supporting high cash generation
An attractive business model supporting high cash generation Invoicing and revenue recognition Business model supports high cash generation % of contract (1) Revenue is recognized pro-rata temporis c. 9 to12 months c. 18 months Delivery between construction milestones 10000 studies royalties Initial
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