Tecnicas Reunidas Sa · BME:TRE
Tecnicas Reunidas Sa — 9M 2021 Earnings Presentation
22 slides from Tecnicas Reunidas Sa's earnings presentation, Nov 15, 2021
Slide 1: 9M 2021 Results Presentation
9M 2021 RESULTS PRESENTATION NOVEMBER 15TH 2021 JUAN LLADÓ CHAIRMAN
Slide 2: Index
INDEX 1) CURRENT RESULTS IMPACTED BY COVID ENVIRONMENT ▪ Strong Covid impact on operations ▪ Q3 2021 P&L and cash position 2) TR WELL POSITIONED AND RESOURCED TO BENEFIT ▪ €4B new awards: quality and de-risked ▪ Restarting €4B reprogrammed projects ▪ Playing a proactive role in the energy transition
Slide 3: Impacts on operations and project management
IMPACTS ON OPERATIONS AND PROJECT MANAGEMENT Higher costs, lower productivity and slow milestone achievement due to Covid On-site Manpower and logistics Project management ▪ Mobilization and ▪ Manpower management: closed ▪ Slow milestone achievement: low demobilization borders, lack of flights, visa
Slide 4: Impacts on operations and project management: project examples
IMPACTS ON OPERATIONS AND PROJECT MANAGEMENT Higher costs, lower productivity and slow milestone achievement due to Covid Examples of different projects in Middle-East Project 1: manpower on-site Project 2: construction progress Project 3: Covid data 25.000 100% 1,746 positive cases on-site 20.000 8
Slide 5: 40% reduction in sales from 2019
IMPACTS ON OPERATIONS AND PROJECT MANAGEMENT 40% reduction in sales from 2019 Sales bottoming out and expected to rise from Q3 2021 On-site €M 1.302 1.271 1.211 1.181 COVID environment 928 763 700 712 682 659 Manpower and logistics Project Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2
Slide 6: Net cash position
NET CASH POSITION Net cash position €M ▪ One major payment (€90m) delayed to October 1st 197 113 63 94 ▪ Long billing cycles -91 ▪ Slow cash collections from clients 9M 2020 FY 2020 Q1 2021 H1 2021 9M 2021 ▪ Payment to suppliers to consolidate the recovery of Extraordinary event Q3 2021 projects o 1
Slide 7: P&L figures and backlog
P&L FIGURES AND BACKLOG Q3 2021 9M 2021 Sales €682m €2.104m EBIT €0m €-148m Adjusted EBIT* €-3m €40m YTD Order intake €3.7B YTD Backlog €10.4B *9M 2021 Adjusted EBIT includes €188m of extraordinary impacts 7
Slide 8: Index
INDEX 1) CURRENT RESULTS IMPACTED BY COVID ENVIRONMENT ▪ Strong Covid impact on operations ▪ Q3 2021 P&L and cash position 2) TR WELL POSITIONED AND RESOURCED TO BENEFIT ▪ €4B new awards: quality and de-risked ▪ Restarting €4B reprogrammed projects ▪ Playing a proactive role in the energy transition
Slide 9: Investment recovery: TR awards
INVESTMENT RECOVERY TR awards €M COVID environment 1.923 1.785 1.338 1.330 1.230 700 600 88 106 0 2017 2018 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 quarterly quarterly quarterly average average average 9
Slide 10: €4B of diversified and de-risked awards
€4B OF DIVERSIFIED AND DE-RISKED AWARDS Petrochemical plant* Natural Gas Europe Power plant Middle East €600m Latam >€400m Delayed coker* €400m Petrochemical Europe Biofuel plant* FEED for a Petrochemical* complex Europe €240m petrochemical complex Europe plant* Europe >€1,700m €200m+ Europe €550m M
Slide 11: Restarting main reprogrammed projects
RESTARTING MAIN REPROGRAMMED PROJECTS Sales ramp up due to YTD backlog status (€10.4B) reprogrammed projects restart and new awards €M Reprogrammed projects 1.302 1.271 23% 1.211 1.181 42% New awards in 2021 928 763 35% Projects executed under Covid 700 712 659 682 More than €4B reprogrammed Q2 2019
Slide 12: TR and the energy transition
TR AND THE ENERGY TRANSITION Main projects under execution: ▪ Circular economy o G.I.Dynamics: bio methanol plant from residual waste and biomass o Swiss Zinc: technology licensing for metals recovery on solid waste o ZAR Foundation: technology license for phosphor recovery on wastewater sludge Requ
Slide 13: TR and the energy transition
TR AND THE ENERGY TRANSITION ▪ Catalyzing projects related to energy transition o Decarbonization roadmaps o Second generation bioethanol plant o Green ammonia for low carbon shipping …and actively taking the lead ▪ Structuring own and third party technologies for the energy transition to make energ
Slide 14: SEPI funds to confirm our growth strategy
SEPI FUNDS TO CONFIRM OUR GROWTH STRATEGY o Reference tenor: 4.5 years, subject to business evolution ▪ €340m injection of funds from o Participative loan (hybrid equity) of €175m SEPI support o 4.5 year bullet payment o Euribor + 4.5% average ▪ Supporting scheme developed by the EU for strategic an
Slide 15: Index
INDEX 1) CURRENT RESULTS IMPACTED BY COVID ENVIRONMENT ▪ Strong Covid impact on operations ▪ Q3 2021 P&L and cash position 2) TR WELL POSITIONED AND RESOURCED TO BENEFIT ▪ €4B new awards: quality and de-risked ▪ Restarting €4B reprogrammed projects ▪ Playing a proactive role in the energy transition
Slide 16: Outlook and 2021 guidance
OUTLOOK AND 2021 GUIDANCE MACRO & AWARDS ▪ Higher oil and gas prices driving new investments EXECUTION ▪ Fast vaccination progress 2021 Guidance* ▪ On-site manpower level improving ▪ Logistics constraints decreasing Sales €3B+ ▪ Clients willing to move ahead EBIT (for H2 2021) Breakeven on current c
Slide 17: Outlook and 2022 guidance
OUTLOOK AND 2022 GUIDANCE MACRO & AWARDS ▪ Oil and gas prices remain at current levels ▪ Additional awards EXECUTION ▪ Projects awarded in 2021 2022 Guidance* moving to accretive phases ▪ Restarting reprogrammed Sales ~ €4B projects ▪ COVID scenario improves EBIT margin Above 2% Awards ~ €4B ENERGY
Slide 18: Outlook and mid-term target
OUTLOOK AND MID-TERM TARGET MACRO & AWARDS ▪ Oil and gas prices remain at current levels ▪ Additional awards from pipeline Mid-term target* EXECUTION ▪ Fresh and healthy backlog ▪ COVID with limited impact Sales ~ €5B EBIT margin ~ 4% ENERGY TRANSITION ▪ Materializing projects and technologies ▪ Con
Slide 19: Técnicas Reunidas
y TECNICAS REUNIDAS
Slide 20: 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 21: Key awards recently materialized: client trust and franchise strength
KEY AWARDS RECENTLY MATERIALIZED: CLIENT TRUST AND FRANCHISE STRENGTH EPC for a liquified natural gas project for the EPC for a new polypropylene plant in Turkey Competitive FEED for a new expansion of Qatargas onshore facilities at for a JV formed by Rönesans and Sonatrach polypropylene unit in Rus
Slide 22: Pipeline analysis
PIPELINE ANALYSIS Pipeline per division Pipeline per calendar Pipeline per geography (expected award date) 6% 9% 2% Clean Fuels 19% 13% Middle East 6% 7% Asia Pacific Petrochemical Q4 2022 32% Europe 46% Energy Transition H1 2022 LatAm 21% Natural Gas H2 2022 Other 48% H1 2023 29% 39% North America