Technip Energies Nv · EURONEXT:TE
Technip Energies Nv — H1 2023 Earnings Presentation
38 slides from Technip Energies Nv's earnings presentation, Nov 2, 2023
Slide 1: Building: A strong backlog and future core, H1 2023 Results
Building A strong backlog and future core H1 2023 Results
Slide 2: Forward looking statements
Forward looking statements This Presentation contains forward-looking statements that reflect Technip Energies’ (the “Company”) intentions, beliefs or current expectations and projections about the Company's future results of operations, anticipated revenues, earnings, cashflows, financial condition
Slide 3: Welcome
Welcome Business highlights Arnaud Pieton CEO Financial highlights Bruno Vibert Outlook CFO Technip Energies – H1 2023 Results 3
Slide 4: Business highlights
Business highlights Arnaud Pieton - CEO Technip Energies – H1 2023 Results 4
Slide 5: H1 2023 – Key highlights
H1 2023 – Key highlights Building a strong backlog and future core Strong H1 profitability, raising Major2 LNG contract win & strong Deploying decarbonization Adj. Rec EBIT margin guidance momentum in TPS contributes to strategy through technology, to 7.0% - 7.5%1 significant Y/Y backlog growth inve
Slide 6: Key operational highlights
Key operational highlights Maintaining strong execution across the portfolio Arctic LNG 2 LNG Downstream CCS Qatar NFE Midor Northern Lights CO2 loading arms Exit from the Project completed. • MIDOR Refinery Expansion: 24 million • Northern Lights CO2 Transport and Storage Project : Liquified CO2 lo
Slide 7: North Field South, Qatar
North Field South, Qatar Strengthening our position on the world’s largest LNG development 16 Mtpa1 incremental >25% ~35% T.EN share of global reduction in GHG capacity emissions2 capacity under construction3 Major award to T.EN Low carbon LNG LNG leadership 2 x 8Mtpa trains to boost Qatar’s Major C
Slide 8: Strong TPS momentum
Strong TPS momentum Underpinning revenue growth trajectory TPS adjusted revenue 1.4 € billion 1.3 1.1 0.8 Segment benefiting from diverse 0.7 range of commercial successes H2 0.5 H2 H2 0.9 0.6 0.6 0.6 H1 H1 H1 H1 FY 2020 FY 2021 FY 2022 H1 2023 Near-record TPS backlog underpins revenue growth trajec
Slide 9: Financial highlights
Financial highlights Bruno Vibert - CFO Technip Energies – H1 2023 Results 9
Slide 10: Solid first half performance
Solid first half performance € 2.8bn 7.3% € 0.70 Adjusted revenue Adjusted recurring EBIT margin Adjusted diluted EPS H1 2022: € 3.3bn H1 2022: 6.3% 0.74 H1 2022: € H1 2023 financial highlights € 9.0bn € 18.9bn € 2.7bn Adjusted order intake Backlog Adjusted net cash H1 2022: € 1.6bn H1 2022: € 13.4b
Slide 11: Updated Company guidance for 2023
Updated Company guidance for 2023 Effective Revenue EBIT margin tax rate €5.7 - 6.2bn 7.0% - 7.5% 26% - 30% Prior guidance: 6.7% - 7.2% Financial inf ormation is presented under adjusted IFRS (see Appendix 8.0 of H1 2023 Results Release). Reconciliation of IFRS to non-IFRS f inancial measures are pr
Slide 12: Project Delivery
Project Delivery Sustained excellence in execution in our long cycle segment Revenue Recurring EBIT Backlog in € million in € million in € million • Revenue: loss of revenue associated with - 27% - 11% + 37% Russia LNG projects partially offset by continued ramp-up on Qatar NFE. 16,815 167 • Margin:
Slide 13: Technology, Products & Services
Technology, Products & Services Substantial backlog increase reinforces revenue growth trajectory Revenue Recurring EBIT Backlog in € million in € million in € million +X% • Revenue: significantly higher technology + 45% + 49% + 78% and product related volumes, notably proprietary equipment for ethy
Slide 14: Other key metrics and balance sheet
Other key metrics and balance sheet Higher Y/Y due to incremental costs associated with Corporate costs € 30.7 million strategic projects and pre-development initiatives. Income Statement Net financial income € 37.1 million Benefit of higher rates of interest on cash deposits. Settlement of PNF matt
Slide 15: Solid underlying cash flows
Solid underlying cash flows Cashflow bridge in € million • Operating cash flow: €(2) million; Free cash flow1: €(24) million, impacted by €203 million working capital outflow: • Project Delivery portfolio maturity and ALNG2 project close- out activities, partially offset by down-payment on NFS. • Fr
Slide 16: Outlook
Option 2 Outlook Arnaud Pieton - CEO Technip Energies – H1 2023 Results 16
Slide 17: H1 2023 – Actively deploying our strategy
H1 2023 – Actively deploying our strategy Delivering on our ambition while preparing the future Sustaining leadership Growing TPS Preparing future Core North Field South, Qatar • Major LNG award consolidating leading • Acquisition of R&D company in Lyon, France • Capture.Now – Full CCUS value chain
Slide 18: Our platform to transform carbon into opportunities
Our platform to transform carbon into opportunities T.EN Portfolio1 T.EN’s Capture.Now offering across the CCUS & decarbonization value chain Blue H2 by T.ENTM ~30 Tech selection & Pre-combustion integration for Mtpa injection facilities Blue Am m onia FEED / EPC / EPCm Calciner CO2 Capture for Stor
Slide 19: Capture with Confidence
Capture with Confidence Proven, integrated post-combustion solutions for any emitter Canopy C200 PILOT C10 C100 C200 C+ MARINE 1.5 ktpa 10 ktpa 100 ktpa 200 ktpa Bespoke sizing Optimized & design offshore design Test anyw here, Any scale for Offshore Standardized sizes for sm aller emitters anytim e
Slide 20: Key takeaways
Key takeaways Robust H1 execution; raising FY 2023 margin guidance Building Major LNG win confirms leadership; drives backlog to record high Implementing strategy to deliver TPS growth and future core Technip Energies – H1 2023 Results 20
Slide 21: Q&A
Q&A Technip Energies – H1 2023 Results 21
Slide 22: Appendix
Option 2 Appendix Technip Energies – H1 2023 Results 22
Slide 23: Industry leading solutions for ethylene
Industry leading solutions for ethylene T.EN, LyondellBasell and CPChem join forces to drive decarbonization of ethylene plants Electric-driven furnaces Commercial scale pilot • Critical enabler of decarbonized ethylene plants • Initial demonstration scale design • Low carbon electricity displaces f
Slide 24: Supporting TPS growth
Supporting TPS growth Positioned for growth in our future core markets Processium lab acquisition SEED Energy acquisition Expand T.EN’s laboratories Accelerate digital services positioning • To develop next-generation processes and • Broaden T.EN’s digital services offering to enhance manufacturing
Slide 25: Backlog schedule
Backlog schedule Total €18,892m adjusted backlog 6M 2023 2024 €2,940m €4,551m 2025+ €11,401m Adjusted backlog at June 30, 2023, has been impacted by f oreign exchange of €(199.5) million. Technip Energies – H1 2023 Results 25
Slide 26: Adjusted statements of income – H1 2023
Adjusted statements of income – H1 2023 Financial inf ormation is presented under adjusted IFRS (see Appendix 8.0 of H1 2023 Results Release). Reconciliation of IFRS to non-IFRS f inancial measures are prov ided in appendices. Technip Energies – H1 2023 Results 26
Slide 27: Adjusted statements of income – Q2 2023
Adjusted statements of income – Q2 2023 Financial inf ormation is presented under adjusted IFRS (see Appendix 8.0 of H1 2023 Results Release). Reconciliation of IFRS to non-IFRS f inancial measures are prov ided in appendices. Technip Energies – H1 2023 Results 27
Slide 28: Adjusted statements of income: IFRS to Adjusted H1 2023
Adjusted statements of income Reconciliation between IFRS and Adjusted – H1 2023 Financial inf ormation is presented under adjusted IFRS (see Appendix 8.0 of H1 2023 Results Release). Reconciliation of IFRS to non-IFRS f inancial measures are prov ided in appendices. Technip Energies – H1 2023 Resul
Slide 29: Adjusted statements of income: IFRS to Adjusted H1 2022
Adjusted statements of income Reconciliation between IFRS and Adjusted – H1 2022 Financial inf ormation is presented under adjusted IFRS (see Appendix 8.0 of H1 2023 Results Release). Reconciliation of IFRS to non-IFRS f inancial measures are prov ided in appendices. Technip Energies – H1 2023 Resul
Slide 30: Adjusted statements of income: IFRS to Adjusted Q2 2023
Adjusted statements of income Reconciliation between IFRS and Adjusted – Q2 2023 Financial inf ormation is presented under adjusted IFRS (see Appendix 8.0 of H1 2023 Results Release). Reconciliation of IFRS to non-IFRS f inancial measures are prov ided in appendices. Technip Energies – H1 2023 Resul
Slide 31: Adjusted statements of income: IFRS to Adjusted Q2 2022
Adjusted statements of income Reconciliation between IFRS and Adjusted – Q2 2022 Financial inf ormation is presented under adjusted IFRS (see Appendix 8.0 of H1 2023 Results Release). Reconciliation of IFRS to non-IFRS f inancial measures are prov ided in appendices. Technip Energies – H1 2023 Resul
Slide 32: Adjusted statements of financial position
Adjusted statements of financial position Financial inf ormation is presented under adjusted IFRS (see Appendix 8.0 of H1 2023 Results Release). Reconciliation of IFRS to non-IFRS f inancial measures are prov ided in appendices. Technip Energies – H1 2023 Results 32
Slide 33: Adjusted statements of cashflows
Adjusted statements of cashflows Financial inf ormation is presented under adjusted IFRS (see Appendix 8.0 of H1 2023 Results Release). Reconciliation of IFRS to non-IFRS f inancial measures are prov ided in appendices. Technip Energies – H1 2023 Results 33
Slide 34: Differentiated capital structure
Differentiated capital structure Net liquidity, June 30, 2023 Net cash, June 30, 2023 € million € million 80 130 750 Commercial paper & other 596 the Notes1 4,099 3,429 3,429 2,703 Cash RCF Outstanding Liquidity Cash Gross debt Net cash commercial paper • Robust liquidity position comprised of €4.1
Slide 35: Stock information and ADR
Stock information and ADR Stock ADR program Listed on Euronext Paris / SBF 120 index Ticker code: TE / ISIN code: NL0014559478 Exchange: Over-the-Counter Free float: 139.0 million / Outstanding shares: 179.8 million Ratio: 1 ADR : 1 ORD Market Cap on June 30, 2023: €3.8 billion Share price € Volume
Slide 36: Technip Energies upcoming investor events
Technip Energies upcoming investor events Opportunities to interact with company management and investor relations Investor Relations Team July 27, 2023 First Half 2023 Results Phillip Lindsay August 30, 2023 RBC Energy ‘Back to School’ Fireside Chat, Virtual Vice President, Investor Relations Tel:
Slide 37: A diversified shareholder structure
A diversified shareholder structure Ownership split Geographic split As a % of shares outstanding Institutional investors Retail Rest of World Other incl. 2.6% hedge funds 5.5% 4.3% Institutional T.EN treasury (long only) Europe 15.5% 2.5% 35.7% France 22.7% 21.9% Strategic 64.9% shareholders1 UK &
Slide 38: Investor Relations
Investor Relations Phillip Lindsay Vice President, Investor Relations Tel: +44 20 7585 5051 phillip.lindsay@technipenergies.com Investor Relations Corentin Cargouët Manager, Investor Relations Tel: +33 6 71 21 12 45 corentin.cargouet@technipenergies.com