Slide 1: Q2 2020 Earnings Call Presentation
Q2 2020 Earnings Call Presentation July 30, 2020
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. Words such as “guidance,” “confident,” “
Slide 3: Q2 2020 Overview
Q2 2020 Overview Financial Results and Operational Highlights Doug Pferdehirt, Chairman and Chief Executive Officer Maryann Mannen, EVP and Chief Financial Officer
Slide 4: Strong foundational pillars
Strong foundational pillars Balance sheet Backlog Business transformation $6.8B $20.6B $350M+ Cash and Liquidity Total Company backlog Targeted savings Repaid outstanding borrowings Constructive customer dialogue Drive real change to ensure we under revolving credit facility resulting in great
Slide 5: Transforming our business
Transforming our business Drive real change • Employ fewer assets while delivering more comprehensive solutions • Targeted actions taken across the portfolio, particularly in Surface Technologies • Accelerating deployment of digital and automation technologies to drive greater efficiency Align with
Slide 6: Subsea opportunities in the next 24 months
Subsea opportunities in the next 24 months1 Projects extended beyond 24 months PETRONAS EQUINOR Kelidang Krafla BP EQUINOR CONOCOPHILLIPS PAJ Bay Du Nord Tommeliten EXXONMOBIL Neptun Deep BHP SHELL Trion Gato Do Mato PETRONAS TOTAL TOTAL Limbayong BP North Platte EXXONMOBIL Preowei Tortue 2 Payara T
Slide 7: Leadership in LNG provides differentiated outlook
Leadership in LNG provides differentiated outlook Win Strong execution drives future award success Deliver FID Progressing through delivery phase on Coral FLNG and Arctic LNG 2; Yamal LNG in warranty phase Reinforcing our competitive position through successful execution of complex projects We
Slide 8: Q2 2020 Company results
Q2 2020 Company results Q2 2020 EPS walk Revenue of $3.2 billion $ millions $ / share GAAP net income, as reported $ 11.7 $ 0.03 Adjusted EBITDA of $241 million Charges and credits, after-tax $ 30.5 $ 0.06 Adjusted net income, as reported $ 42.2 $ 0.09 Other items impacting results: Cash and liquidi
Slide 9: Segment results
Q2 2020 Segment results Subsea Technip Energies Surface Technologies USD, in millions USD, in millions USD, in millions -9% -510 bps +2% -810 bps -43% -770 bps 18.7% 1,509 1,505 1,538 421 1,379 12.3% 10.6% 11.1% 242 7.2% 3.4% Revenue Adjusted EBITDA margin Revenue Adjusted EBITDA margin Revenue Adju
Slide 10: Strengthening the balance sheet
Strengthening the balance sheet Liquidity changes from March 31, 20201 Additional steps taken (In billions USD) 0.2 Secured permanent amendment to total 0.5 0.1 capitalization covenant; allows add-back of 0.4 $6.8B $3.2 billion of previously impaired goodwill 0.8 Fully repaid the $500 million ou
Slide 11: 2020 Full-year financial guidance
2020 Full-year financial guidance1 *Updated July 29, 2020 Subsea Technip Energies Surface Technologies Revenue in a range of $5.3–5.6 billion* Revenue in a range of $6.3–6.8 billion Revenue in a range of $950–1,150 million* EBITDA margin at least 8.5%* EBITDA margin at least 10% EBITDA m
Slide 12: Summary
Summary Annualized cost savings to exceed $350M, driven by accelerated cost actions Business and digital transformation enabled by cash and liquidity of $6.8B and backlog of nearly $21B Cost reduction, backlog visibility and resilient execution provide us with confidence in 2020 guidance Q2 20
Slide 13: Appendix
Appendix Q2 2020 Earnings Call Presentation | 13
Slide 14: Subsea opportunities in the next 24 months
Subsea opportunities in the next 24 months1 PROJECT UPDATES Added TOTAL Begonia CONOCOPHILLIPS Tommeliten BHP Trion PETROBRAS Buzios 7 Removed EQUINOR Breidablikk Q2 2020 Earnings Call Presentation | 14
Slide 15: TechnipFMC liquidity (as of June 30, 2020)
TechnipFMC liquidity (as of June 30, 2020) Cash and cash equivalents Liquidity Supporting data $9 Supporting data $8.6B (In billions) June 30 2020 $8 Cash and cash equivalents $ 4.8 $2.5B revolving credit facility 2.5 $6.8B $7 €500M revolving credit facility 0.6 Held by Operating cash Cash & cash eq
Slide 16: Financial disclosures – Yamal LNG
Financial disclosures – Yamal LNG Project disclosure data Contract liabilities structure TechnipFMC plc and Consolidated Subsidiaries Business Segment Data for Yamal LNG Joint Venture (In millions, unaudited) Reduction in contract liabilities: $88m June 30, 2020 March 31, 2020 March 31, 2020 to June
Slide 17: Backlog visibility
Backlog visibility 1 2Q 2020 Inbound orders: $512 million Subsea Non-consolidated Backlog 2 $7.1 billion Subsea $2.2 billion $2.9 billion $2.0 billion 3 2020 2021 2022 & beyond 2020 $65 million 1 Backlog does not capture all revenue potential for subsea services. 2021 $133 million 2022+ $505 million
Slide 18: Glossary
Glossary Term Definition Term Definition Bcm Billion Cubic Meters per Annum MMb/d Million Barrels per Day CAGR Compound Annual Growth Rate MRL Mandatorily redeemable financial liability E&C Engineering and Construction Mtpa Million Metric Tonnes per Annum FID Final Investment Decision NAM North Amer
Slide 19: Select financial data
Select financial data Three Months Ended Three Months Ended Revenue June 30, 2020 March 31, 2020 December 31, 2019 September 30, 2019 June 30, 2019 Inbound Orders (1) June 30, 2020 March 31, 2020 December 31, 2019 September 30, 2019 June 30, 2019 Subsea $ 1,378.5 $ 1,253.1 $ 1,486.8 $ 1,342.2 $ 1,50
Slide 20: Liquidity reconciliation
Liquidity reconciliation (in billions, unaudited) March 31, June 30, 2020 2020 Cash and cash equivalents $ 5.0 $ 4.8 $2.5B revolving credit facility 2.5 2.5 €500M revolving credit facility 0.6 £600M Bank of England COVID Facility 0.8 Total liquidity 7.5 8.6 Less: Commercial paper 1.4 1.5 Less: $2.5B
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Slide 28: TechnipFMC
» 3 TechnipFMC