Gaztransport & Technigaz Sa · EURONEXT:GTT
Gaztransport & Technigaz Sa — H1 2021 Earnings Presentation
52 slides from Gaztransport & Technigaz Sa's earnings presentation, Jul 28, 2021
Slide 1: Investor presentation H1 2021 results
Investor presentation H1 2021 results July 28, 2021
Slide 2: Disclaimer
Disclaimer This presentation does not contain or constitute an offer of securities for sale or an invitation or inducement to invest in securities in France, the United States or any other jurisdiction. It includes only summary information and does not purport to be comprehensive. No representation,
Slide 3: Agenda
Agenda 1. Company overview & key highlights 2. Core business: Market & activity update 3. New businesses LNG as fuel Smart Shipping Elogen 4. Focus on innovation 5. Financials 6. Strategic roadmap 7. Outlook Appendices 3
Slide 4: Company overview & Key highlights
1 Company overview & Key highlights 4
Slide 5: GTT at a glance
GTT at a glance Profile A French technology and engineering Consolidated key figures company with more than 50-year track record in € million H1 2021 Expert in liquefied gas containment systems Total Revenues 165 Public company listed on the Euronext Stock Exchange (Paris), compartment A EBITDA 96 5
Slide 6: H1 2021 Key Highlights
H1 2021 Key Highlights H1 2021 Revenues: €165 million, -19 % vs H1 2020, +35% vs H1 2019 Core business: robust order intake H1: 18 LNGCs, 2 VLECs and 6 onshore storage In July: 9 LNGCs FID Qatar North Field Expansion: +33 Mtpa, adding significant order potential for GTT LNG as fuel Order of 12 conta
Slide 7: Overview of order book evolution in H1 2021
Overview of order book evolution in H1 2021 LNGC 122 +18 (30) 110 VLEC 9 +2 (5) 6 FSRU 4 - (1) 2* FSU 2 - - 2 FLNG 1 - - 1 Onshore Storage 6 +6 - 12 GBS 3 - - 3 26 (36) 147 GTT order book 136 movements (core business) Order book FY 2020 H1 2021 new orders H1 2021 deliveries Order book H1 2021 LNG as
Slide 8: ESG responsibility at the core of GTT's DNA
ESG responsibility at the core of GTT’s DNA Environment Net Zero carbon ambition for 2025 Own scope: a set of actions currently being implemented to reduce GHG emissions, aligned with a 1.5°C trajectory, within the SBTI* framework. Impact scope: commitment for decarbonisation of the shipping industr
Slide 9: Core business: Market & activity update
2 Core business: Market & activity update 9
Slide 10: LNG Supply & Demand: new capacity required
LNG Supply & Demand: new capacity required LNG Supply & Demand balance forecast 800 700 600 300 Mtpa 500 Mtpa 400 300 200 100 0 2007 2017 2038 2000 2001 2002 2003 2004 2005 2006 2008 2009 2010 2011 2012 2013 2014 2015 2016 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 20
Slide 11: c.92 more LNGCs required for liquefaction projects under construction
c.92 more LNGCs required for liquefaction projects under construction LNGCs supply demand balance of Under Construction liquefaction plants Contracted Forecasted Project Location Capacity LNGCs requirement Start-Up (Mtpa) Sabine Pass T6 US East 2022 4,5 10 Calcasieu Pass US East 2022 8 12 Tangguh Ph
Slide 12: China leading the LNG demand growth in 2021
China leading the LNG demand growth in 2021 Main LNG importers demand comparison Jan-May 2021 vs. 2020 40 35% +32% 35 30% 30 25% imports (Mtpa) 25 20% Growth 20 15% 15 +9% 10% 10 +7% 5 5% 0% - 0% Japan China S. Korea India Jan - May 20 Jan- May 21 Growth Source: Argus. Strong LNG import growth in H1
Slide 13: Carbon cuts initiatives
All stakeholders from the LNG value chain tackling carbon footprint, GTT being part of the solution Value chain 1 CO2 reduction initiatives commitments Qatar upstream facilities emissions cut by 15% & elimination Gas production of routine flaring Limit fugitive methane emissions along the gas value
Slide 14: GTT is well positioned to capture orders from vessels renewal
GTT is well positioned to capture orders from vessels renewal Charterers and ship-owners to intensify Existing LNGC fleet by engine type shift to more modern vessels Better environmental footprint Better economics MEGI-XDF; 122; 22% C.50% of the fleet in service running with Steam older generation e
Slide 15: New businesses: the new frontiers of energy transition
3.2 3 New businesses: the new frontiers of energy transition 15
Slide 16: Promoting LNG as fuel to accelerate energy transition
Promoting LNG as fuel to accelerate energy transition 16
Slide 17: 17 container ship orders received in H1 2021
17 container ship orders received in H1 2021 CMA CGM Order to equip 12 container ships 3rd order since 2017 14,000 m3 tank Shipyards : 6 ships in Hudong-Zhonghua 6 ships in Jiangnan Shipyard Seaspan First order to equip 5 container ships 12,000 m3 tank Adapted to NH3 use Shipyard : Samsung Heavy Ind
Slide 18: 2021: LNG as fuel containerships strongly picking up
2021: LNG as fuel containerships strongly picking up 10k+ TEU containerships orders 160 40 140 35 10k+ TEU containership orders 10k+ TEU LNG fueled orders 120 30 100 25 80 20 10kTEU+ orders incl LNG fueled 60 15 40 10 20 5 0 0 Source : Clarksons. 2016 2017 2018 2019 2020 H1 2021 H1 2021 marked by st
Slide 19: Regulations will drive significant changes in the shipping industry
Regulations will drive significant changes in the shipping industry IMO is complementing a compulsory regulation IMO current targets (non binding): International shipping to reduce CO2 emissions per transport work by 70% in 2050 vs 2008 and global fleet to reduce the total annual GHG emissions by 50
Slide 20: LNG, cleanest and cheapest marine fuel and long term solution
LNG, cleanest and cheapest marine fuel and long term solution CO2 emissions vs 2050 fuel price (Well to wake) 900 800 Ammonia Current conventional fuels 700 Methanol MDO (Well to Wake, gCo2/kWhengine) 600 LNG 500 CO2 emissions 400 Developing biofuels 300 Biodiesel 200 Biomethanol Future synthetic fu
Slide 21: Smart shipping: Optimizing energy-efficiency with digital solutions
Smart shipping: Optimizing energy-efficiency with digital solutions 21
Slide 22: Smart shipping: Digital Technologies for optimized energy efficiency and safety
Smart shipping: Digital Technologies for optimized energy efficiency and safety Use of state of the art digital technologies to Reduce operational cost Reduce emissions Improve safety Market drivers: Cost reduction Environmental and safety regulation Need for transparency between stakeholders Emergi
Slide 23: Deployment of synergies toward a unique Smart Shipping platform
Deployment of synergies toward a unique Smart Shipping platform Comprehensive Smart Shipping solution ► More functions GTT Digital Platform + ► Bigger market share ► Improved margin Continuous organic development + ► Turnkey solution for vessel performance Opportunistic acquisitions + Advanced AI ma
Slide 24: Building a strong commercial network
Building a strong commercial network using GTT capacity to align and talk to all stakeholders GTT capacity to talk to all the stakeholders in the decision-making chain is key Ship yards Owners Charterers GTT Digital Platform is recognised as « future-proof » Part of an established Group (vs. start-u
Slide 25: Ascenz launched an innovative solution to improve the bunkering process
Ascenz just launched an innovative solution to improve the bunkering process Electronic Bunker Delivery Note (eBDN) is a solution developed by Ascenz to improve the efficiency and transparency of bunkering process Supports trust between participants in the bunker trade, including banks, buyers and s
Slide 26: Playing a key role in the green hydrogen revolution
Playing a key role in the green hydrogen revolution 26
Slide 27: Elogen's commercial activities
Elogen’s commercial activities 2 scales of products Containerized Large Scale Key financial figures Electrolysers Electrolysis Plants H1 Order Intake H1 Revenue From 50 kW to 10s, 100s MW €4.6 €2.5 several MW Today From 2023 million million With a design flexible for 4 key applications 2021 Revenue
Slide 28: Elogen's industrial model
Elogen’s industrial model Elogen is a technology NEXT STEPS Increase production capacity designer of complete Reduce CAPEX via massification electrolysers, with full control of R&D Full set of competencies to deliver Design and installation of a pilot stack assembly complete electrolysers line in Le
Slide 29: Cost of hydrogen: improving electrolysers efficiency
Cost of hydrogen: improving electrolysers efficiency is a key driver to reduce OPEX Breakdown of hydrogen cost (€/kg) – base 100 Maintenance Maintenance Water Water OPEX c.73% Power OPEX Power c.92% Key assumptions Renewables Grid connected connected (renewable energy) Electrolyser Capacity 1 MW Dis
Slide 30: PEM technology's advantages
PEM technology’s advantages Adapted to Capable of the inherent managing grid intermittency fluctuations of renewable thanks to fast energies response times PEM is the most Simple to Saves space adapted technology to maintain, no due to limited handling of equipment produce hydrogen from haza
Slide 31: Focus on innovation
4 Focus on innovation 31
Slide 32: R&D and innovation are at the heart of GTT's development
R&D and innovation are at the heart of GTT’s development Dynamic IP strategy Unique combination of skills For the second consecutive year, GTT stands at 2010-2020 R&D budget averaging 10% of 1st place in ranking of the mid size companies total Group’s revenues patent applicants at the INPI (in Franc
Slide 33: H1 2021 innovation update
H1 2021 innovation update Multigas Segment Membrane Bunker ship Digital solutions LNG Fuel Boil-Off Ammonia Ballast water Maintenance Large-capacity reduction readiness free optimization container ships Technology Courtesy of Excelerate Energy General AiP Mark III AiPs for the Embarked tank AiP appr
Slide 34: Financials
5 Financials 34
Slide 35: Order book offers long visibility
Order book (core business(1)) offers long visibility Order book in units Order book by year of delivery (units per year) In units In units 147 63 64 54 135 136 36 (3) 38 38 39 32 28 25 28 15 12 6 6 As at Jun. 30, As at Dec. 31, As at Jun. 30, 2021 2021 2022 2023 2024 >2025 2020 2020 Order book at Ju
Slide 36: H1 2021 financial performance in line with expectations
H1 2021 financial performance in line with expectations Summary consolidated accounts Key highlights in € M H1 2020 H1 2021 Change Revenues: €165.3 million (-19% vs H1 2020 and +35% vs H1 2019) Total Revenues 203.8 165.3 -18.9% Revenues from newbuilds (royalties): EBITDA (1) 136.6 96.5 -29.3% €154 m
Slide 37: H1 2021 Stable cost base despite impact of acquisitions
H1 2021 Stable cost base despite impact of acquisitions GTT consolidated operational costs Key highlights in € M H1 2020 H1 2021 Change (%) Goods purchased -2.8 -4.8 +68.7% % sales -1% -3% External costs (-0.4%) Subcontractors: Subcontracted Test and -17.7% linked to the level of activity -17.6 -14.
Slide 38: Strategic roadmap
6 Strategic roadmap 38
Slide 39: GTT's strategic roadmap
GTT’s strategic roadmap Technology for a 6. Transformation Hydrogen chain sustainable world: towards a low Hydrogen carbon future Electrolysers Gas handling technologies Evolution of 2. Improvement GTT systems: NO96 Super+ 1. Intensification Mark III Flex+ 5. Enlargement Offshore Multigas GBS Innova
Slide 40: Outlook
7 Outlook 40
Slide 41: FY 2021 Outlook confirmed
FY 2021 Outlook confirmed GTT revenue(1) 2021 consolidated revenue estimated in a range of €285M to €315M EBITDA 2021 consolidated EBITDA estimated in a range of €150M to €170M Dividend 2021 payout of at least 80% Payment(2) (1) In the absence of any significant delays or cancellations in orders. Va
Slide 42: Conclusion
Conclusion Highly-skilled GTT teams are committed to building a sustainable world 42
Slide 43: Appendix
GIT Appendix
Slide 44: A unique expertise valued from shipyards to O&G majors for over 50 years
A unique expertise valued from shipyards to O&G majors for over 50 years Oil & Gas companies are Shipowners are GTT’s end GTT’s end clients and clients and prescribers prescribers GTT’s technology receives certification & approval Shipyards are GTT’s direct from classification clients societies 44
Slide 45: A strengthened management team
A strengthened management team To accelerate GTT’s development strategy based on innovation, energy transition and digitalisation of maritime transport Philippe Berterottière Chairman and Chief Executive Officer Lélia Ghilini General Counsel/ Director of Legal Affairs ~13 people Jean-Baptiste Virgin
Slide 46: EU's legislative package proposal on carbon reduction
EU’s legislative package proposal on carbon reduction (unveiled on 14 July 2021) EU’s target: Reduce GHG emissions by at least 55% by 2030 compared with 1990 12 proposals, including 4 for shipping, subject to decision by the European parliament and member states Proposal What? What voyages? How much
Slide 47: Focus on GTT's competitive advantages on LNGCs
Focus on GTT’s competitive advantages on LNGCs GTT’s technology positioning (1) GTT Moss SPB KC-1 ▶ Integrated tank ▶ Integrated tank ▶ Self supported spheric tank ▶ Self supported prismaticl tank Technology (membrane) (membrane) ▶ Atmospheric pressure ▶ Atmospheric pressure ▶ Atmospheric pressure ▶
Slide 48: Focus on GTT's competitive advantages on LNG fuel
Focus on GTT’s competitive advantages on LNG fuel GTT’s technology positioning on LNG fuel GTT Membrane Prismatic Type B Type C ▶ Self supported Cylindrical tank Technology ▶ Integrated tank ▶ Self supported tank ▶ Pressurized principle ▶ Atmospheric pressure ▶ Atmospheric pressure ▶ Insulation: vac
Slide 49: Technical lexicon
Technical lexicon Electrolyser Tap water O2 Electrolyser = Stacks + Balance of Plant Stack Stack AC Power H2 at 30 bar (i.e. the full system) Stack BOP the reactor where the H2O split reaction occurs Balance of Plant (BOP) Mainly piping and utilities processing 49
Slide 50: An attractive business model supporting high cash generation
An attractive business model supporting high cash generation Invoicing and revenue recognition Business model supports high cash generation % of contract (1) Revenue is recognized pro-rata temporis c. 9 to12 months c. 18 months Delivery between construction milestones 10000 studies royalties Initial
Slide 51: Glossary
Glossary The following abbreviations have been used throughout this document M-type, Electronically Controlled Gas BOR Boil Off Rate FSU Floating Storage Unit MEGI Injection APAC Asia-Pacific GBS Gravity Based Structure Mtpa Million tons per annum CAGR Compound Annual Growth Rate GHG Greenhouse Gase
Slide 52: Contact
Contact: information-financiere@gtt.fr / +33 1 30 23 20 87
GTT (Gaztransport & Technigaz) — H1 2021 Earnings Presentation on 6ix