Slide 1: TechnipFMC: Leading Integrated Solutions Provider for the Oil and Gas Industry
TechnipFMC: Leading Integrated Solutions Provider for the Oil and Gas Industry Roadshow October 31st to November 10th, 2016 1
Slide 2: Disclaimer: Forward-Looking Statements
Disclaimer Important Information for Investors and Securityholders Forward-Looking Statements This communication contains “forward-looking statements.” All statements other than statements of historical fact contained in this report are forward-looking statements within the meaning of Section 27A of
Slide 3: Disclaimer: No Offer or Solicitation
Disclaimer No Offer or Solicitation This communication is not intended to and does not constitute an offer to sell or the solicitation of an offer to subscribe for or buy or an invitation to purchase or subscribe for any securities or the solicitation of any vote in any jurisdiction pursuant to the
Slide 4: Disclaimer: Participants in the Solicitation
Disclaimer Participants in the Solicitation FMC Technologies, Technip, TechnipFMC and their respective directors and executive officers may be deemed to be participants in the solicitation of proxies from the stockholders of FMC Technologies and Technip, respectively, in respect of the proposed tran
Slide 5: Meeting Attendees
Meeting Attendees Thierry Douglas Maryann Pilenko Pferdehirt Mannen • Current Role: • Current Role: • Current Role: Chairman and Chief President and Chief Chief Financial Officer of Executive Officer of Executive Officer of FMC Technologies Technip FMC Technologies • Future Role: Executive • Future
Slide 6: Transaction Update, Market Update, Combining Forces
1 Transaction Update 2 Market Update 3 Combining Forces to Create an Integrated Industry Leader 4 TechnipFMC – Strong Financial Profile 6
Slide 7: Section 1: Transaction Update
Section 1: Transaction Update 7
Slide 8: TechnipFMC: Broadest Portfolio of Solutions for Oil and Gas
TechnipFMC: Broadest Portfolio of Solutions for the Production and Transformation of Oil and Gas ONSHORE/OFFSHORE Deepwater Mining & Metals Shallow Water LNG FLNG Petrochemicals Refining & Hydrogen SURFACE Surface Production & Drilling Systems SUBSEA Jetty Loading Arms Life of field and monitoring S
Slide 9: Clear Leadership and Balanced Governance; Key Terms of the Transaction
Key Terms of the Transaction Transaction TechnipFMC incorporated in the U.K. Structure U.S. reverse triangular merger for FMC Technologies and European cross-border merger for Technip All-Stock Merger Listing Shares listed on the NYSE and Euronext Paris with TechnipFMC seeking inclusion in S&P
Slide 10: The Future Executive Leadership Team
The Future Executive Leadership Team 10
Slide 11: Good Progress on Technip and FMC Technologies Merger Process
Good Progress on Technip and FMC Technologies Merger Process October 24, 2016 October 7, 2016 French foreign May 19, 2016 US foreign investment Combination investment approval (MINEFI) Early 2017 announcement approval (CFIUS) Expected October 25, 2016 combination October 4, 2016 October 24, 2016 Doc
Slide 12: Upcoming Shareholders' Vote on the Proposed Combination
Upcoming Shareholders’ Vote on the Proposed Combination Technip and FMC Technologies shareholders to vote on the proposed combination at their respective shareholders meetings GENERAL SHAREHOLDERS MEETING / SPECIAL MEETING OF Shareholders meeting SPECIAL SHAREHOLDERS MEETING (1) STOCKHOLDERS (2) Dec
Slide 13: Section 2: Market Update
Section 2: Market Update Technip 13 MC Technologies
Slide 14: Offshore Remains Critical to the Future
Offshore Remains Critical to the Future… ~36 Million Barrels / Day of Incremental Production …With a Large Portion to Come from Deepwater Required by 2025e… MMb/d MMb/d 12.0 110 ~8.5 10.0 100 8.0 90 6.0 80 4.0 70 2.0 60 0.0 2016 2025 2015 Decline Incremental 2025 Current Sources of Production Deepwa
Slide 15: …and It Accounts for Majority of Majors' Production
…and It Accounts for Majority of Majors’ Production …While More Than 50% of the Majors’ 2P Reserves Offshore Contributes Significantly to Majors’ Production… Remaining Is Offshore 2016 Production by Classification (%) (1) Remaining 2P Reserves by Classification (%) (1) 100% 100% 4% 10% 15% 16% 18% 3
Slide 16: SPS and SURF Remain Critical Components of Offshore Development
SPS and SURF Remain Critical Components of Offshore Development SPS and SURF components represent up to 1/3rd of deepwater development costs and remain well-positioned for a market recovery given the importance of offshore production to future hydrocarbon supply SPS / SURF is One of the Largest Comp
Slide 17: TechnipFMC Will Be Best Positioned to Seize Opportunities
TechnipFMC Will Be Best Positioned to Seize Opportunities Across Upstream and Downstream 17
Slide 18: Section 3: Combining Forces to Create an Integrated Industry Leader
Section 3: Combining Forces to Create an Integrated Industry Leader 18
Slide 19: Combining Forces to Create an Integrated Industry Leader
Combining Forces to Create an Integrated Industry Leader TechnipFMC Will Do More Create a unique contracting model Accelerate and integrate technology innovation Deliver both a lower project cost and operating structure Develop integrated offerings beyond subsea Increasing interest in the in
Slide 20: Supported by Most Recent Achievements of the Alliance
Supported by Most Recent Achievements of the Alliance ALLIANCE First Alliance Award Unique Subsea Integrated Design 20 17 Client: Hurricane No. of FEED Studies 15 10 Alliance selected as exclusive provider of subsea solutions for the Lancaster 5 EPS(1) and for subsequent development of the Great
Slide 21: TechnipFMC is the Sole Player Offering Full Suite of Capabilities
TechnipFMC is the Sole Player Offering Full Suite of Capabilities Conceptual Design Life-of-Field Project Execution Decommissioning & FEED & Maintenance Equipment Engineering Procurement Construction Installation Rationalized supply Maximised subsea reliability and architecture Unique asset and upti
Slide 22: "Making it Real"
“Making it Real” Redefine Industry Redesign Subsea Integrate Technologies Reinvent Products 22
Slide 23: Reinvent Products
Reinvent Products Compact Subsea Manifold Reduce product complexity with proprietary technology Create differentiated products that focus on deliverability and installability Case Study: Traditional versus Compact Subsea Manifold Simplicity – 50% fewer parts Deliverability – 50% schedule r
Slide 24: Integrate Complementary Technologies
Integrate Complementary Technologies Subsea processing Connector Manifold ETH PiP(1) Flexible pipe Direct Tie-In Increased Optimized Simplified efficiency connectivity architecture (1) ETH PiP: Electrically Trace Heated Pipe-in-Pipe 24
Slide 25: Redesign Subsea Through Integrated Approach
Redesign Subsea Through Integrated Approach Key Benefits Traditional Approach 50% of risers and flowlines 6 PLETS at end of Fewer SPS interfaces Less complexity through flowlines reduced part counts Fewer risers and flowlines Enhancements Faster installation time Lower cost through integra
Slide 26: Redefine Project Economics
Redefine Project Economics Reduced cost of materials and increased purchasing power Integrated Eg. Lighter-smaller Subsea Equipment, Procurement Carbon Fiber armor within flexibles Reduced interfaces and risk accelerated Optimized subsea One Simplified architecture reducing time to first oil SPS & S
Slide 27: Subsea Services Provide Growth Opportunities Throughout System Life Cycle
Subsea Services Provide Growth Opportunities Throughout the Entire System Life Cycle Operation and management Installation Maintain production, increase recovery The Subsea System Life Cycle Drilling and Plug and completion abandonment Subsea Asset Production Well Drilling Installation Field IMR man
Slide 28: Onshore/Offshore: Strong Enabler to Capture Downstream Market Resilience
Onshore/Offshore: Strong Enabler to Capture Downstream Market Resilience in 2016 and 2017 MIDOR refinery, Egypt Over 50 years of greenfield & Involvement since refinery brownfield expertise construction in the 1990’s Direct FEED award leading to EPC Technip helped arrange ECA(1) and project fi
Slide 29: Surface Technologies: Creating Value with Market Leading Products
Surface Technologies: Creating Value with Market Leading Products and Integrated Solutions Surface Integrated Services (SIS) “One Vendor One Invoice One Lead = Improved Synergies and Completion Quality” Integration of surface wellhead, completions, and measurement Fluid Control SIS: Leading pr
Slide 30: Section 4: TechnipFMC – Strong Financial Profile
Section 4: TechnipFMC – Strong Financial Profile 30
Slide 31: Building on Complementarity to Create a Broad-Based Market Leader
Building on Complementarity to Create a Broad- Based Market Leader… Subsea Onshore / Offshore Surface Subsea products: Project management, proprietary Drilling, completion and production technology, equipment and early studies wellhead equipment, chokes, compact – Trees, manifolds, control, te
Slide 32: …With Significant Scale
…With Significant Scale… Third Largest OFS Company by Revenue Top 10 OFS Companies by 2015A Revenue ($Bn) 44.3 45 30 23.6 Proforma 19.7 16.5 15.7 14.8 15 13.3 12.5 9.4 6.4 0 SLB HAL TECFMC GE BHI NOV TEC SPM WFT FTI O&G Source: Company Filings; EUR/USD FX rate as of 28-Oct-2016 32
Slide 33: …and One of the Strongest Balance Sheets Amongst OFS Providers
…and One of the Strongest Balance Sheets Amongst OFS Providers One of the Lowest Leverage Levels… …and a Significant Cash Position 2015A Debt / EBITDA (2) (x) Top Listed OFS Companies (1) by 2015A Net Cash / EBITDA (2) (x) 8 3 7.5 1.7 0.9 1 6 5.7 (0.3) (1) (0.6) (0.9) (1.3) (1.3) Proforma 4 3.7 (3)
Slide 34: Track Record of Sustainable Returns
Track Record of Sustainable Returns EBITDA (1) Margin 2013-2016 YTD 16.8 % 13.5 % 12.4 % 11.5 % 10.2 % 10.4 % 11.4 % 8.0 % 2013 2014 2015 2016 YTD 2013 2014 2015 2016 YTD ROCE (2) 2013-2015 19.0% 13.6% 13.8% 15.2% 12.1% 11.4% 12.4% 12.8% 2013 2014 2015 Average 2013 2014 2015 Average Source: Company
Slide 35: Operating Cash Flow Exceeds Investment Needs
Operating Cash Flow Exceeds Investment Needs Capex ($mm) 629 410 404 322 314 251 106 93 2013 2014 2015 2016 YTD 2013 2014 2015 2016 YTD Operating Cash Flow ($mm) 1,441 1,140 948 893 932 795 355 227 2013 2014 2015 2016 YTD 2013 2014 2015 2016 YTD Source: Company Filings; EUR/USD FX rate as of 28-Oct-
Slide 36: The Combined Group Will Benefit from a Balanced Business Exposure
The Combined Group Will Benefit from a Balanced Business Exposure Sep-2016 Pro Forma Backlog by Segment Total: $13.4bn $3.0bn $16.4bn 2016 YTD Pro Forma Revenue by Segment Subsea 55% Total: $8.3bn $3.5bn $11.8bn Subsea Onshore & Offshore Surface Energy Source: Company Filings; EUR/USD FX rate as of
Slide 37: Significant Potential for Cost Synergies
Significant Potential for Cost Synergies… Pre-Tax Cost Synergies of approximately $400m expected by 2019 Supply Chain Commodity raw material cost savings Base plan Stretch Better terms with shared suppliers Beneficial scale effect from Additional cost higher volumes reduction opportunities C
Slide 38: …and Multiple Opportunities to Create Revenue Synergies
…and Multiple Opportunities to Create Revenue Synergies Early involvement can improve positioning on new projects Strong differentiation provides immediate and significant cost reduction Portfolio of projects and solutions can capture greater subsea scope Substantial revenue growth from expa
Slide 39: TechnipFMC: Driving Change by Redefining the Production and Transformation of Oil & Gas
TechnipFMC: Driving Change by Redefining the Production and Transformation of Oil & Gas Builds a comprehensive and flexible offering across each market from concept to project delivery and beyond Products: best-in-class equipment and systems provider Leading and highly complementary equipment offe