Tecnicas Reunidas Sa · BME:TRE
Tecnicas Reunidas Sa — Q1 2020 Earnings Presentation
17 slides from Tecnicas Reunidas Sa's earnings presentation, May 25, 2020
Slide 1: First Quarter 2020 Results Presentation
FIRST QUARTER 2020 RESULTS PRESENTATION MAY 25TH 2020 JUAN LLADÓ CEO
Slide 2: Market Environment: Unprecedented Context, TR Strengths to Face It
MARKET ENVIRONMENT UNPRECEDENTED CONTEXT TR STRENGTHS TO FACE IT COVID pandemic 1. Solid backlog 2. Continuity in project execution • Oil price collapse 3. Optimisation and efficiency program • World recession 4. Strong financial position 5. Ongoing pipeline 2
Slide 3: Content
CONTENT ➢ Solid backlog ➢ Continuity in execution ➢ Optimization and efficiency ➢ Strong financial position ➢ Q1 2020 results ➢ Pipeline and outlook 3
Slide 4: Solid Backlog
SOLID BACKLOG €10.9 Bn Backlog > 2x annual sales ▪ First tier industrial customers 55% ▪ Solid project fundamentals 40% ▪ Project rescheduling, without cancellations 5% ▪ Earnings visibility Upstream Downstream Power 4
Slide 5: Content
CONTENT ➢ Solid backlog ➢ Continuity in execution ➢ Optimization and efficiency ➢ Strong financial position ➢ Q1 2020 results ➢ Pipeline and outlook 5
Slide 6: Continuity in Project Execution
CONTINUITY IN PROJECT EXECUTION Impact Mitigation Engineering ▪ Engineering and home office task ▪ Smart work for 5,000 engineers with high forces work disruption productivity Procurement ▪ Delays in fabrication, inspections, ▪ Successful virtual inspections logistics availability and customs ▪ Chan
Slide 7: Content
CONTENT ➢ Solid backlog ➢ Continuity in execution ➢ Optimization and efficiency ➢ Strong financial position ➢ Q1 2020 results ➢ Pipeline and outlook 7
Slide 8: Optimization and Efficiency Program TR-ansforma
OPTIMIZATION AND EFFICIENCY PROGRAM Initiative launched at the end of 2019 to consolidate TR-ansforma margins and increase competitiveness ▪ Overhead costs reduction Corporate costs reduction ▪ Third party services reduction ▪ Further standardisation of procedures ▪ Improvement of cash flow manageme
Slide 9: Content
CONTENT ➢ Solid backlog ➢ Continuity in execution ➢ Optimization and efficiency ➢ Strong financial position ➢ Q1 2020 results ➢ Pipeline and outlook 9
Slide 10: Strong Financial Position
STRONG FINANCIAL POSITION Net Cash Position €M 419 ▪ Strong net cash position 370 ▪ Robust balance sheet and liquidity position to face uncertainties o € 1,234 million total liquidity: 258 250 • € 1,082 million gross cash 219 215 • € 242 million credit lines o € 904 million total financing: o € 662
Slide 11: Content
CONTENT ➢ Solid backlog ➢ Continuity in execution ➢ Optimization and efficiency ➢ Strong financial position ➢ Q1 2020 results ➢ Pipeline and outlook 11
Slide 12: Q1 2020 Results: Profit and Loss
Q1 2020 RESULTS PROFIT AND LOSS € Million Q1 2020 Q1 2019 Var. Revenues 1,181 915 +29% EBIT 23.7 10.6 +124% Margin 2.0% 1.2% Net financial results -11.3 -3.6 Profit before taxes 12.4 5.7 +117% Taxes -3.7 -2.0 Net profit 8.7 3.7 +135% 12
Slide 13: Content
CONTENT ➢ Solid backlog ➢ Continuity in execution ➢ Optimization and efficiency ➢ Strong financial position ➢ Q1 2020 results ➢ Pipeline and outlook 13
Slide 14: Pipeline Opportunities
PIPELINE OPPORTUNITIES 83% 40 US$B in opportunities in non-oil production industries 52% ▪ No pipeline cancellations 21% ▪ Delays in decision making process 17% ▪ 65% in Middle East 10% ▪ Increase of feasibility studies and Oil Gas Downstream Power FEEDs signals future investments 14
Slide 15: Business and Market Outlook
BUSINESS AND MARKET OUTLOOK ✓ TR is well positioned: ▪ Solid backlog ▪ Continuity in project execution ▪ Cost optimization and efficiency plan in place ▪ Strong financial position ▪ Ongoing pipeline with delayed awards ✓ Facing the future with prudent optimism 15
Slide 16: Disclaimer
DISCLAIMER This document has been prepared by Técnicas Reunidas S.A. (the Company) solely for use at presentations held in connection with the announcement of the Company's results for the first quarter of 2020. This document contains forward-looking statements of the Company and/or its management.
Slide 17: Tecnicas Reunidas
y TECNICAS REUNIDAS