Technipfmc Plc · NYSE:FTI
Technipfmc — Investor Presentation (November 2020)
47 slides from Technipfmc's investor presentation, November 2020
Slide 1: Investor Relations Overview
Investor Relations Overview November 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: Contents
Contents 1 Q3 2020 Financial and operational highlights 2 Company overview
Slide 4: Section 1: Q3 2020 Financial and operational highlights
Section 1: Q3 2020 Financial and operational highlights
Slide 5: Strong third quarter results
Strong third quarter results Winning Executing Transforming $2.2B 9.6% 100% Inbound orders Adjusted EBITDA1 margin Targeted savings achieved 45% sequential growth in total Sequential improvement Early achievement of $350+ Company inbound orders across all business segments million in run-rate
Slide 6: Resilient award activity
Resilient award activity Subsea award Technip Energies award Surface Technologies award Q3 award highlights Breidablikk2 6 projects announced globally; $2.8 billion aggregate contract value1 Moerdijk plant modernization High-specification gas Middle East growth opportunities; leveraging equipmen
Slide 7: Accelerating our digital transformation
Accelerating our digital transformation Creating value for our clients and TechnipFMC throughout the project lifecycle Subsea Studio™ iComplete™ Transforming conventional concept, FEED and tendering Integrated completions pad provides simplification and phases into ultra-fast digital field devel
Slide 8: Business transformation
Business transformation Leadership – Seasoned professional Arnaud Pieton appointed President and CEO-elect of Technip 22 years of industry Energies experience Member of Executive Leadership Team since formation of 15+ years with TechnipFMC; TechnipFMC ELT member since merger Aligned on busines
Slide 9: Q3 2020 Company results
Q3 2020 Company results Key highlights Cash flow from operations of $168 million, free cash flow of $95 million in the quarter Achieved full-year targeted run-rate savings of more than $350 million, ahead of schedule Adjusted EBITDA improved sequentially across all segments, driven by strong p
Slide 10: Q3 2020 Segment results
Q3 2020 Segment results Subsea Technip Energies Surface Technologies USD, in millions USD, in millions USD, in millions +12% -70 bps +1% -820 bps -43% -350 bps 1,502 19.1% 1,342 1,596 1,608 397 10.4% 10.9% 11.2% 9.7% 226 7.7% Revenue Adjusted EBITDA margin Revenue Adjusted EBITDA margin Revenue Adju
Slide 11: Q3 2020 cash flow
Q3 2020 cash flow Q3 2020 Items of note Q3 2020 Cash flow walk 2020e Free Cash Flow ($M) (in $ millions) $149 - $299 $300 168 73 Debt reduced by $200 783 $647 million 4,810 when including impacts $100 $95 of amortization and Positive free cash flow foreign exchange $0 $95 million -$56 -$100 -$188 -$
Slide 12: Summary
Summary Strong operational results – all segments delivered sequential improvement in adjusted EBITDA margin Total Company inbound orders of $2.2 billion – sequential growth in Subsea backlog Achieved targeted run-rate savings of more than $350 million – ahead of schedule Significant debt re
Slide 13: Section 2: Company overview
Section 2: Company overview Investor Relations Overview | 13
Slide 14: TechnipFMC snapshot
TechnipFMC snapshot 1 2 >75% Integrated solutions Stock exchange Total company revenue provider for the oil and listings – NYSE outside of U.S.1 gas industry and Euronext Paris $13B $20B $4B Total company Total company Total company cash revenue2 backlog3 balance4 1 Trailing four quarters revenue as
Slide 15: Broadest portfolio of solutions for the oil & gas industry
Broadest portfolio of solutions for the oil & gas industry TECHNIP ENERGIES ▪ Onshore facilities related to the production, treatment and transportation of crude oil and natural gas, as well as transformation of petrochemicals such as ethylene, polymers and fertilizers ▪ Combines engineering, procur
Slide 16: Portfolio leverage to major energy platforms
Portfolio leverage to major energy platforms Subsea LNG Unconventional Product iEPCI™ >105 Mtpa reliability Transforming subsea Global production Leading positions in project economics delivered several products Subsea 2.0™ Revolutionary product 7.8 Mtpa Technology World’s largest LNG Extending asse
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 2006-2019 (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: Subsea – integrated approach redefining subsea project economics
Subsea – 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
Slide 22: Making subsea short-cycle with Subsea 2.0 + iEPCI
Subsea – 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 fie
Slide 23: iEPCI – The industry standard
iEPCI™ – The industry standard iEPCI™ is a structural transformation iEPCI™ acceleration $4 60% $3 $2 $1 40% 20% $3B+ 6 5 iEPCI™ Repeat New $0 2016 2017 2018 2019 0% projects awarded iEPCI™ iEPCI™ in 2019 customers alliances iEPCI™ award value ($B) iEPCI™ % of FTI Subsea orders • Widespread adoption
Slide 24: Unique drivers of revenue growth
Unique drivers of revenue growth Subsea Services Alliance partners • Diversified revenue base of approximately $1 billion • Long-term, mutually beneficial relationships • Resilient, margin-accretive aftermarket services • iEPCI™ alliances utilize full integrated offering • Service potential on ~50%
Slide 25: 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 26: Technip Energies competitive strengths
Technip Energies competitive strengths A market leader, notably in the Balanced portfolio of projects, Mega-project capability, areas of gas and downstream clients, geographies, and contracts world class execution Offshore Onshore Floating Fixed Platforms FLNG LNG Ethylene Refining Petrochemicals Pl
Slide 27: Well-positioned for the energy transition
Well-positioned for the energy transition Gas and green chemistry – a platform for sustainable growth Gas Green Chemistry A fundamental role to A structural play in the transition growth opportunity Gas Processing Top 3 Biological Biofuels Components Biopolymers LNG Leader Circular Plastics Chemistr
Slide 28: Technip Energies – differentiated growth opportunities
Technip Energies – differentiated growth opportunities Process Technologies / PMC LNG Rising demand for petrochemicals Improving market dynamics ▪ Favorable feedstock to product differentials ▪ Rising FEED activity ▪ Technology definition and selection activity ▪ Increasing tendering opportuniti
Slide 29: Growth potential driven by LNG market leadership
Growth potential driven by LNG market leadership Market leadership Diversity in projects and technologies 105 Mtpa >20% 7.8 Mtpa Pioneer in modularization • Onshore LNG trains on an unprecedented scale Global production Of operating LNG World’s largest delivered capacity LNG trains • Greater cost an
Slide 30: A diversified pure-play with extensive capabilities
A diversified pure-play with extensive capabilities Projects Services • LNG • Gas monetization • Feasibility studies • Floating LNG • Refining • Consulting • Fixed and • Ethylene, • Project management consultancy floating platforms petrochemicals Process Technology Products • Ethylene • Petrochemica
Slide 31: 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 32: Comprehensive offering – from concept to project delivery and beyond
Comprehensive offering – from concept to project delivery and beyond A unique global leader in oil and gas projects, technologies, systems and services Subsea Technip Energies Surface Technologies Subsea products Project management, proprietary ‣ Drilling, completion and production ‣ Trees, manifold
Slide 33: Appendix
Appendix
Slide 34: 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 35: 2020 Full-year financial guidance
2020 Full-year financial guidance1 Updated October 21, 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 ma
Slide 36: Subsea opportunities in the next 24 months
Subsea opportunities in the next 24 months1 PROJECT UPDATES Added PETROBRAS Mero 4 PETROBRAS Buzios 6 PETROBRAS Buzios 8 Removed PETROBRAS Itapu* PETROBRAS Mero 2 EXXONMOBIL Payara Investor Relations Overview | 36
Slide 37: 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: $133m September 30, 2020 June 30, 2020 June 30, 2020 to
Slide 38: Backlog visibility
Backlog visibility 1 3Q 2020 Inbound orders: $1,607 million Subsea Non-consolidated Backlog 2 $7.2 billion Subsea $1.1 billion $3.4 billion $2.7 billion 3 2020 2021 2022 & beyond 2020 $36 million 1 Backlog does not capture all revenue potential for subsea services. 2021 $129 million 2022+ $509 milli
Slide 39: Select financial data
Select financial data Three Months Ended Three Months Ended Revenue September 30, 2020 June 30, 2020 March 31, 2020 December 31, 2019 September 30, 2019 Inbound Orders (1) September 30, 2020 June 30, 2020 March 31, 2020 December 31, 2019 September 30, 2019 Subsea $ 1,501.8 $ 1,378.5 $ 1,253.1 $ 1,48
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Slide 47: Investor Relations contacts
Investor Relations contacts Matthew Seinsheimer Vice President, Investor Relations Tel.: +1 281 260 3665 Email: InvestorRelations@TechnipFMC.com Phillip Lindsay Director, Investor Relations (Europe) Tel.: +44 (0) 20 3429 3929 Email: InvestorRelations@TechnipFMC.com TechnipFMC.com