Maire S.p.A. · MIL:MAIRE
Maire — Maire Tecnimont — FY2013 Earnings Presentation
29 slides from Maire's earnings presentation, Mar 13, 2014
Slide 1: Maire Tecnimont 2013 Results
MAIRE TECNIMONT 2013 RESULTS March 13, 2014 1
Slide 2: Agenda
AGENDA Overview – Fabrizio Di Amato, Chairman Strategy & Risk Management Update – Pierroberto Folgiero, CEO Business Highlights – Pierroberto Folgiero, CEO Financial Data – Alessandro Bernini, CFO Looking Ahead – Pierroberto Folgiero, CEO March 2014 2
Slide 3: Key Messages
KEY MESSAGES • Return to profitability for the full year • Focused commercial effort is leading to awards in line with our strategic approach − Building up a good quality backlog • Operational and financial strengthening will continue in 2014 March 2014 3
Slide 4: Key Consolidated 2013 Financials
KEY CONSOLIDATED 2013 FINANCIALS (€m) Revenues EBITDA Net Income NFP Net Worth March 2014 4
Slide 5: Overview – Strategy & Risk Management Update
Overview Strategy & Risk Management Update – Pierroberto Folgiero, CEO Business Highlights Financial Data Looking Ahead March 2014 5
Slide 6: Strategic Priorities
STRATEGIC INITIATIVES ANNOUNCED IN MARCH 2013 Enhance and Develop Technology Driven Business 1 Align Organization and Reduce EPC Risk pursue Group Synergies 5 Positioning Strategic 2 Priorities 4 Expand Geographic 3 Footprint Develop Engineering Services Revenues March 2014 6
Slide 7: Group Strategy Implementation
GROUP STRATEGY IMPLEMENTATION 1 Recent Activities perfectly match with the Group Strategy : 5 2 4 3 Strategy Key Points Evidence Enhance and Develop • All recent awards won on the basis of our technology edge Technology-Driven Business • Further increased our market share in Urea licensing • €316m r
Slide 8: Expand Geographic Footprint
EXPAND GEOGRAPHIC FOOTPRINT 1 5 2 4 3 New Eng. Projects New EP Projects New US office Historical Presence New EPC Project New JV Enhanced Historical Presence Advanced Commercial New Presence Activity March 2014 8
Slide 9: Align Organization and Pursue Group Synergies
ALIGN ORGANIZATION AND PURSUE GROUP SYNERGIES 1 5 2 4 3 • Streamlined Company structures • Aligned resources to Group strategy G&A expenses €m 110 90 • Decreased G&As by 28.8% vs. 2011 70 50 2011 2012 2013 • Increased commercial and operational coordination among Subsidiaries March 2014 9
Slide 10: Risk Management Update
RISK MANAGEMENT UPDATE … process redesign and implementation completed Sep 2013 Dec 2013 DEDICATED ORGANIZATION DONE RISK IDENTIFICATION, giving priority to DONE the commercial and industrial process RISK AVOIDANCE or MITIGATION through In process DONE the strengthening of specific guidelines RISK M
Slide 11: Risk Management Update
RISK MANAGEMENT UPDATE Maire Tecnimont New Function at Corporate and Board Subsidiary Company level CEO Process & Risk • “Group Process & Risk Management” Management at Maire Tecnimont level CFO General Counsel Subsidiaries • “Project & Risk Opportunity CEO/MD Project Risk & Management in the Subsid
Slide 12: Business Highlights
Overview Strategy & Risk Management Update Business Highlights, Pierroberto Folgiero, CEO Financial Data Looking Ahead March 2014 12
Slide 13: Main Projects Under Execution
MAIN PROJECTS UNDER EXECUTION Project Country Client Contract Value Type Overall Compl. Date (m)* Progress** Mechanical Completion GASCO Abu Dhabi GASCO US$ 2,400 EPC 100% achieved – Perf. testing Borouge 3 Abu Dhabi Borouge US$ 910 EPC 93% 2014 Mechanical Completion Tobolsk Russia Sibur € 674 EPC 1
Slide 14: Main Awards Since 1/1/2013
MAIN AWARDS SINCE 1/1/2013 Fertilizers & Poliolefin, Engineering Services and EP Hydrogen package, EP Hydrogen Poliolefin, Fertilizer Units, EPC Engineering equipment Services supply, EP Fertilizer Hydrogen equipment Unit, EPC supply, EP Refinery Upgarde, EPC Butyl Rubber Fertilizer Poliolefin, Plan
Slide 15: Backlog
BACKLOG Backlog by Business Unit Backlog by Geography (€m, 2011-2013) (Dec. 2013) Sales €1,398m COCIV & Copenhagen Disposals 17% 41% 21% 21% Europe Americas Middle East Others A well diversified backlog that provides a solid base to future revenues March 2014 15
Slide 16: Backlog Visibility
BACKLOG VISIBILITY* Backlog by Type (E, EP & EPC) Backlog by Year of Execution Dec. 2013, €m 2,980 18% 1,697 49% 33% 1,048 235 E EP EPC 2014 2015 2016 an beyond * Excluding the Infrastructure BU March 2014 16
Slide 17: Business Trends
BUSINESS TRENDS FERTILIZERS PETCHEM OIL & GAS - Shale Gas - Shale Gas - Shale Gas - Demography - Downstream - Revamping & capacity to increase Capacity upgrade - Technology barrier March 2014 17
Slide 18: Outlook on Commercial Activity
OUTLOOK ON COMMERCIAL ACTIVITY Commercial activity in OG&P Strong pipeline of bidding opportunities We are actively pursuing an increasing number of opportunities March 2014 18
Slide 19: Current Commercial Activity Around the World (OG&P)
CURRENT COMMERCIAL ACTIVITY AROUND THE WORLD (OG&P)* C.I.S. Europe POLIOLEFINE POLIOLEFINE FERTILIZER €2.7bn €1.5bn FERTILIZER GAS TREATMENT GAS TREATMENT North America Asia POLIOLEFINE POLIOLEFINE €2.9bn FERTILIZER FERTILIZER €6,0bn REFINERY GAS TREATMENT LNG Middle East POLIOLEFINE €3,3bn FERTILIZ
Slide 20: Financial Data
Overview Strategy & Risk Management Update Business Highlights Financial Data – Alessandro Bernini, CFO Looking Ahead March 2014 20
Slide 21: Consolidated Income Statement & Balance Sheet
CONSOLIDATED INCOME STATEMENT & BALANCE SHEET INCOME STATEMENT €m FY 2012 FY 2013 Δ% Revenues 2,186.8 1,656.2 (24%) EBITDA (159.2) 116.1 n.m. EBITDA % -7.3% 7.0% n.m. EBIT (187.4) 90.0 n.m. Group Net Income/(Loss) (207.6) 17.3 n.m. BALANCE SHEET €m as of Dec '12 Dec '13 Δ Net Invested Capital (Asset
Slide 22: Business Unit Results: Oil, Gas & Petrochemicals
BUSINESS UNIT RESULTS: OIL, GAS & PETROCHEMICALS €m FY 2012 FY 2013 % change Revenues 1,810.1 1,306.7 (28%) Business Profit 165.0 171.9 4% Business Margin 9.1% 13.1% 4.0 p.p. R&D (0.2) (4.3) n.m. G&A (73.8) (66.9) (9%) EBITDA 91.1 100.7 11% EBITDA Margin 5.0% 7.7% 2.7 p.p. • Recovery in profitabilit
Slide 23: Business Unit Results: Power and Infrastructure
BUSINESS UNIT RESULTS: POWER AND INFRASTRUCTURE Power €m FY 2012 FY 2013 % change • Focus on E and EP will be reflected in the Revenues 177.5 48.2 (73%) Business Loss (208.8) (3.2) n.m. numbers starting in 2014 Business Margin n.m. (6.7%) n.m. G&A (7.7) (2.4) (69%) EBITDA (216.5) (5.6) n.m. EBITDA M
Slide 24: Net Financial Debt and Cash Flow
NET FINANCIAL DEBT AND CASH FLOW Net Financial Debt (€m) Dec 31, 2012 Dec 31, 2013 Cash Flow (€m) CF NFP Changes Capital Net Financial NFP EBITDA Capex Financial Dec 31, 2012 in NWC Increase Expenses Dec 31, 2013 Assets March 2014 24
Slide 25: Group Bank Debt Maturity Profile
GROUP BANK DEBT MATURITY PROFILE Bank Debt Principals’ Repayments (€m, 2014-2017) 200 150 100 174 50 97.6 90 43.7 0 2014 2015 2016 2017 90% OF FUTURE REPAYMENTS WILL TAKE PLACE FROM 2015 ONWARDS March 2014 25
Slide 26: The Convertible Bond
THE CONVERTIBLE BOND • First access to the debt capital market Geographical Split (%) • Generated demand from high-quality investors, mainly abroad 4.4 12.4 • Diversified our funding sources, 24.3 increasing the Group’s financial 33.0 flexibility 5.9 • Future conversion will lead a larger float • Su
Slide 27: Looking Ahead
Overview Strategy & Risk Management update Business Highlights Financial Data Looking Ahead – Pierroberto Folgiero, CEO March 2014 27
Slide 28: Looking Ahead
LOOKING AHEAD • Increase in volumes thanks to recent acquisitions • Backlog mix aligned to Group Strategy • Continue to expand into selected countries and form new alliances • Disposal plan ongoing March 2014 28
Slide 29: Investor Relations
Investor Relations Via Gaetano De Castillia, 6A 20124 Milano T +39 02 6313-7823 Investor-relations@mairetecnimont.It March 2014 29