Technipfmc Plc · NYSE:FTI
Technipfmc — Investor Presentation (July 2024)
39 slides from Technipfmc's investor presentation, July 2024
Slide 1: Investor Relations Overview
Investor Relations Overview July 2024
Slide 2: Disclaimer
Disclaimer Forward-looking statements This communication contains “forward-looking statements” 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 amended. Forward-looking statements usually relat
Slide 3: Contents
Contents 1 Operational and financial highlights 2 Company overview Investor Relations Overview | 3
Slide 4: Section 1: Operational and financial highlights
Section 1: Operational and financial highlights Investor Relations Overview | 4
Slide 5: Q2 2024 Operational summary
Q2 2024 Operational summary Highlights Subsea inbound of $2.8 billion, representing a book-to-bill of 1.4; total Company orders of $3.1 billion Total Company backlog increased to $13.9 billion; highest level achieved since formation of TechnipFMC in 2017 Total Company adjusted EBITDA improved
Slide 6: Q2 2024 Financial results
Q2 2024 Financial results Sequential highlights Total Company adjusted EBITDA of $379 million, excluding the impact of foreign exchange: $3.1B Inbound orders Subsea increased due to strong execution, improved earnings mix from backlog, and higher project and services activity $13.9B Surface Te
Slide 7: Subsea opportunities in the next 24 months
Subsea opportunities in the next 24 months1 EQUINOR PROJECT UPDATES Johan Sverdrup Ph 3 VAR ENERGI Added BEACON Ofelia PETROBRAS Monument Sepia 2 Shell BP Puffin BP Kaskida Tortue CHEVRON BP Aphrodite BEACON Tiber Monument ENI MELLITAH SHELL Northern Hub PTTEP TOTALENERGIES Bahr Essalam Leopard ENI
Slide 8: 2024 Full-year financial guidance
2024 Full-year financial guidance1 As of July 25, 2024 2 Subsea Surface Technologies Revenue in a range of $7.6 – 7.8 billion Revenue in a range of $1.2 – 1.35 billion Adjusted EBITDA margin in a range of 16.5 – 17% Adjusted EBITDA margin in a range of 13 – 15% TechnipFMC Corporate expense
Slide 9: Q2 2024 Cash flow and net debt
Q2 2024 Cash flow and net debt Free cash flow (in $ millions) $180M (51) Net Debt (In millions, unaudited) 231 (122) June 30, 2024 (47) Cash and cash equivalents $ 708 Short-term debt and current portion of long-term debt (322) 708 697 Long-term debt, less current portion (647) Net debt $ (260) Cash
Slide 10: Backlog scheduling provides visibility
Backlog scheduling provides visibility Subsea1 Surface Technologies as of June 30, 2024 as of June 30, 2024 2024 $3.1B 2026+ 2024 $5.4B $12.9 2025+ $1.0 $440M billion $533M billion 2025 $4.5B 1 Backlog does not capture all revenue potential for Subsea Services Investor Relations Overview | 10
Slide 11: Section 2: Company overview
Section 2: Company overview Investor Relations Overview | 11
Slide 12: TechnipFMC snapshot
TechnipFMC snapshot #1 3 41 Integrated solutions Pillars for Energy Transition Countries with current provider for the oil and gas (Offshore floating renewables, operations industry GHG removal, Hydrogen) >90% $8.5bn $13.9bn Total company Total company Total company international revenue revenue2 ba
Slide 13: ESG and TechnipFMC
ESG and TechnipFMC Our corporate strategy and foundational beliefs drive our approach to ESG practices TechnipFMC Corporate Strategy Technology Integration Collaboration Alliances Execution Environmental Social Governance • Our carbon footprint • Awareness and culture • Leadership in HSE • Our clien
Slide 14: Our environmental focus on carbon reduction
Our environmental focus on carbon reduction Targeting 50% reduction in Scope 1 and 2 emissions by 20301 Wind Hydro Hybrid / Biofuels Utilization of renewable resources for internal energy consumption 1. Versus 2017 baseline Investor Relations Overview | 14
Slide 15: Technology leadership
Technology leadership Integration technologies Digital and automation Robotics NextGen Precision Subsea 2.0® subsea controls robotics for ROV Surface production Subsea iProduction™ automation mechatronics Using differentiated technologies to Applying Subsea digital and Utilizing mechatronics to tran
Slide 16: Overview of TechnipFMC segments
Overview of TechnipFMC segments Subsea Surface Technologies Financial contribution Subsea products ‣ Drilling, completion and production wellhead Revenue1 Surface 16% ‣ Trees, manifolds, control, templates, flowline equipment, chokes, compact valves, manifolds and systems, umbilicals and flexibles c
Slide 17: Subsea competitive strengths
Subsea competitive strengths Market leading positions built Differentiated offering of Technology advancements to upon innovation and deep integrated products, services: drive greater efficiency and industry knowledge iFEED®, iEPCI™ and iLoF™ simplification Subsea Production FEED Studies Flexibles U
Slide 18: SPS / SURF – critical components of offshore development
SPS / SURF – critical components of offshore development Oil Strong history of & gas industry has strong history SPS / SURF is one of the largest subseatree of subsea treeorders orders components of project costs Subsea tree orders by region 2010-2022 (trees) 600 Drilling / Well SPS / SURF 551 Const
Slide 19: Improving project economics for deepwater projects
Improving project economics for deepwater projects More than 400 deepwater discoveries 500 have yet to be developed 410 Projects 400 Good progress on deepwater cost reductions with potential for additional 300 savings +40% to 60% 200 Standardization, technology and strong project execution can
Slide 20: Subsea offers a full suite of capabilities
Subsea offers a full suite of capabilities Conceptual Design Life-of-Field Project Execution & FEED1 and Maintenance Engineering Procurement Equipment Construction Installation supply Maximized Unique asset Rationalized subsea reliability and architecture Joint SPS+SURF R&D Shortened time to first a
Slide 21: Integrated approach redefining subsea project economics
Integrated approach redefining subsea project economics Traditional approach Enhancements Key benefits One global contractor Reduced material costs Integrated procurement Simplified equipment set-up Optimized subsea architecture Fewer subsea production Optimized flow assurance system i
Slide 22: Making subsea short-cycle with Subsea 2.0 + iEPCI
Making subsea short-cycle with Subsea 2.0® + iEPCI™ Subsea 6 month Break-even Shell Kaikias iEPCI™ schedule price 2.0® reduction <$30/bbl TechnipFMC is changing the subsea paradigm from a long-cycle to a short-cycle business, using Subsea 2.0® and a truly integrated approach (iEPCI™) to field develo
Slide 23: Unique drivers of Subsea revenue growth
Unique drivers of Subsea revenue growth Subsea Services Alliance partners • Diversified revenue base of more than $1.5 billion in 2023 • Long-term, mutually beneficial relationships • Resilient, margin-accretive aftermarket services • iEPCI™ alliances utilize full integrated offering • Service poten
Slide 24: All-electric subsea production systems
All-electric subsea production systems Reducing infrastructure to create low carbon opportunities • Infrastructure and installation time reduced with removal of hydraulic lines, simplified umbilicals and lighter assets • Enables full field electrification of subsea production system, allowing for us
Slide 25: Surface Technologies competitive strengths
Surface Technologies competitive strengths Leading market positions in Delivering technology that Integrated offering delivers up several niche product offerings extends asset life, improves to $1m in savings per well, returns creates unique growth platform Wellhead Flowline Stimulation, Flowback an
Slide 26: iProduction
iProduction™ Separation system Replicating the Subsea playbook to transform onshore production • Proprietary technology and integrated ecosystem streamlines operations; reduces footprint, GHG emissions, capital costs, time to first oil • • Integrated offering operates under a single digital interfac
Slide 27: New Energy
New Energy Core competencies drive our three strategic pillars Greenhouse gas removal Offshore floating renewables Hydrogen New Energy business to serve as system architect and integrator Market approach driven by 3 main pillars; our role in the long-term path to net zero will be as offshore ‘Energy
Slide 28: Deep Purple – Redefining subsea energy
Deep Purple™ – Redefining subsea energy Integrating renewables and hydrogen storage to deliver new energy resources • Collaboration with clients and partners to make renewables more commercially viable offshore • Utilize hydrogen fuel cells to store excess power Novel wind generated from wind and wa
Slide 29: Appendix
Appendix Investor Relations Overview | 29
Slide 30: Glossary
Glossary Term Definition Term Definition CAGR Compound Annual Growth Rate iLOF™ Integrated Life of Field CCS Carbon Capture and Storage LNG Liquefied Natural Gas ESG Environmental, Social and Governance MMb/d Million Barrels per Day FID Final Investment Decision Mtpa Million Metric Tonnes per Annum
Slide 31: Q2 2024 Supporting financial data
Q2 2024 Supporting financial data Investor Relations Overview | 31
Slide 32: Reconciliation of GAAP to non-GAAP financial measures
Exhibit 6 TECHNIPFMC PLC AND CONSOLIDATED SUBSIDIARIES RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (In millions, except per share data, unaudited) In addition to financial results determined in accordance with U.S. generally accepted accounting principles (GAAP), the second quarter 2024 Ea
Slide 33: Reconciliation of GAAP to non-GAAP financial measures
Exhibit 7 TECHNIPFMC PLC AND CONSOLIDATED SUBSIDIARIES RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (In millions, unaudited) Three Months Ended Six Months Ended June 30, 2024 March 31, 2024 June 30, 2023 June 30, 2024 June 30, 2023 Net income (loss) attributable to TechnipFMC plc $ 186.5 $
Slide 34: Reconciliation of GAAP to non-GAAP financial measures
Exhibit 8 TECHNIPFMC PLC AND CONSOLIDATED SUBSIDIARIES RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (In millions, unaudited) Three Months Ended June 30, 2024 Surface Corporate Foreign Subsea Technologies Expense Exchange, net Total Revenue $ 2,009.1 $ 316.5 $ — $ — $ 2,325.6 Operating profi
Slide 35: Reconciliation of GAAP to non-GAAP financial measures
Exhibit 8 TECHNIPFMC PLC AND CONSOLIDATED SUBSIDIARIES RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (In millions, unaudited) Three Months Ended March 31, 2024 Surface Corporate Foreign Subsea Technologies Expense Exchange, net Total Revenue $ 1,734.8 $ 307.2 $ — $ — $ 2,042.0 Operating prof
Slide 36: Reconciliation of GAAP to non-GAAP financial measures
Exhibit 8 TECHNIPFMC PLC AND CONSOLIDATED SUBSIDIARIES RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (In millions, unaudited) Three Months Ended June 30, 2023 Surface Corporate Foreign Subsea Technologies Expense Exchange, net Total Revenue $ 1,618.4 $ 353.8 $ — $ — $ 1,972.2 Operating profi
Slide 37: Net debt reconciliation
Exhibit 10 TECHNIPFMC PLC AND CONSOLIDATED SUBSIDIARIES RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (In millions, unaudited) June 30, 2024 March 31, 2024 June 30, 2023 Cash and cash equivalents $ 708.2 $ 696.8 $ 585.2 Short-term debt and current portion of long-term debt (321.6) (136.6) (4
Slide 38: Free cash flow reconciliation
Exhibit 11 TECHNIPFMC PLC AND CONSOLIDATED SUBSIDIARIES RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (In millions, unaudited) Three Months Ended June 30, Six Months Ended June 30, 2024 2024 2023 Cash provided (required) by operating activities $ 230.9 $ 104.2 $ (230.0) Capital expenditures
Slide 39: Investor Relations contacts
Investor Relations contacts Matthew Seinsheimer Senior Vice President, Investor Relations and Corporate Development Tel.: +1 281 260 3665 Email: InvestorRelations@TechnipFMC.com James Davis Director, Investor Relations Tel.: +1 281 260 3665 Email: InvestorRelations@TechnipFMC.com TechnipFMC.com