Technipfmc Plc · NYSE:FTI
Technipfmc — Investor Presentation (September 2023)
39 slides from Technipfmc's investor presentation, September 2023
Slide 1: Investor Relations Overview
Investor Relations Overview September 2023
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. Forward-looking statements usually relat
Slide 3: Contents
Contents 1 Operational and financial highlights 2 Company overview Investor Relations Overview | 3
Slide 4: Section 1: Operational and financial highlights
Section 1: Operational and financial highlights Investor Relations Overview | 4
Slide 5: Q2 2023 Operational summary
Q2 2023 Operational summary Highlights Subsea inbound of $4.1 billion, a book-to-bill of 2.5; Subsea order outlook to now reach $9 billion in 2023 Six iEPCI™ awards in the quarter, including largest iEPCI™ award to-date for Equinor’s BM-C-33 project FEED pipeline continues to expand, with more
Slide 6: Q2 2023 Financial results
Q2 2023 Financial results Sequential highlights $4.4B Total Company adjusted EBITDA of $254 million, excluding foreign exchange: Inbound orders • Subsea increased due to higher project and service activity and improved backlog margin $13.3B • Surface Technologies improved due to higher revenue and
Slide 7: Shareholder distribution update
Shareholder distribution update Takeaways Initiated quarterly cash dividend of $0.05 per share Repurchase authorization increased to $800 million • $200 million of shares repurchased since initial authorization for average price of $11.77 • $600 million available under remaining authorization
Slide 8: Subsea opportunities in the next 24 months
Subsea opportunities in the next 24 months1 dded Removed hange indded cope alue ncrease to above , M uly update pro ect value ranges reflect potential subsea scope Investor Relations Overview | 8
Slide 9: 2023 Full-year financial guidance
2023 Full-year financial guidance1 As of February 23, 2023 Subsea Surface Technologies Revenue in a range of $5.9 – 6.3 billion Revenue in a range of $1.3 – 1.45 billion Adjusted EBITDA margin in a range of 12.5 – 13.5% Adjusted EBITDA margin in a range of 12 – 14% TechnipFMC Corporate exp
Slide 10: Q2 2023 Cash flow and net debt
Q2 2023 Cash flow and net debt (in $ millions) Free cash flow $103M Net Debt (53) (In millions, unaudited) 156 (50) June 30, 2023 10 Cash and cash equivalents $ 585 Short-term debt and current portion 585 of long-term debt (429) Long-term debt, less current portion (1,000) 522 Net debt $ (844) Cash
Slide 11: Backlog scheduling provides visibility
Backlog scheduling provides visibility Subsea1 Surface Technologies as of June 30, 2023 as of June 30, 2023 2023 $2.4B 2023 2025+ $448M $5.5B $12.1 $1.2 billion 2024+ billion $742M 2024 $4.3B 1 Backlog does not capture all revenue potential for Subsea Services Investor Relations Overview | 11
Slide 12: Section 2: Company overview
Section 2: Company overview Investor Relations Overview | 12
Slide 13: TechnipFMC snapshot
TechnipFMC snapshot #1 3 41 Integrated solutions Pillars for Energy Transition Countries with current provider for the oil and gas (Offshore floating renewables, operations industry GHG removal, Hydrogen) >90% $7.1bn $13.3bn Total company Total company Total company international revenue revenue2 ba
Slide 14: ESG and TechnipFMC
ESG and TechnipFMC Our corporate strategy and foundational beliefs drive our approach to ESG practices TechnipFMC Corporate Strategy Technology Integration Collaboration Alliances Execution Environmental Social Governance • Our carbon footprint • Awareness and culture • Leadership in HSE • Our clien
Slide 15: Our environmental focus on carbon reduction
Our environmental focus on carbon reduction Targeting 50% reduction in Scope 1 and 2 emissions by 20301 Wind Hydro Hybrid / Biofuels Utilization of renewable resources for internal energy consumption 1. Versus 2017 baseline Investor Relations Overview | 15
Slide 16: 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 17: Overview of TechnipFMC segments
Overview of TechnipFMC segments Subsea Surface Technologies Financial contribution Subsea products ‣ Drilling, completion and production wellhead Revenue1 ‣ Trees, manifolds, control, templates, flowline equipment, chokes, compact valves, manifolds and Surface systems, umbilicals and flexibles contr
Slide 18: 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 19: SPS / SURF – critical components of offshore development
SPS / SURF – critical components of offshore development OilStrong 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 2010-2022 (trees) 600 Drilling / Well SPS / SURF 551 Constr
Slide 20: 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 21: 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 22: Integrated approach redefining subsea project economics
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 system i
Slide 23: Making subsea short-cycle with Subsea 2.0 + iEPCI
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 field develo
Slide 24: Unique drivers of Subsea revenue growth
Unique drivers of Subsea revenue growth Subsea Services Alliance partners • Diversified revenue base of approximately $1.2 billion in 2022 • Long-term, mutually beneficial relationships • Resilient, margin-accretive aftermarket services • iEPCI™ alliances utilize full integrated offering • ervice po
Slide 25: All-electric subsea production systems
All-electric subsea production systems Reducing infrastructure to create low carbon opportunities • Infrastructure and installation time reduced with removal of hydraulic lines, simplified umbilicals and lighter assets • Enables full field electrification of subsea production system, allowing for us
Slide 26: 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 27: iProduction
iProduction™ Separation system Replicating the Subsea playbook to transform onshore production • Proprietary technology and integrated ecosystem streamlines operations; reduces footprint, GHG emissions, capital costs, time to first oil • • Integrated offering operates under a single digital interfac
Slide 28: New Energy
New Energy Core competencies drive our three strategic pillars Greenhouse gas removal Offshore floating renewables Hydrogen integrated Offshore Novel Energies – iONE™ Market approach driven by 3 main pillars; our role in the long-term path to net zero will be as offshore ‘Energy rchitect’ • Greenhou
Slide 29: Deep Purple – Redefining subsea energy
Deep Purple™ – Redefining subsea energy Integrating renewables and hydrogen storage to deliver new energy resources • Collaboration with clients and partners to make renewables more commercially viable offshore • Utilize hydrogen fuel cells to store excess power Novel wind generated from wind and wa
Slide 30: Appendix
Appendix Investor Relations Overview | 30
Slide 31: Glossary
Glossary Term Definition Term Definition CAGR Compound Annual Growth Rate iLOF™ Integrated Life of Field CCS Carbon Capture and Storage LNG Liquefied Natural Gas ESG Environmental, Social and Governance MMb/d Million Barrels per Day FID Final Investment Decision Mtpa Million Metric Tonnes per Annum
Slide 32: Q2 2023 Supporting financial data
Q2 2023 Supporting financial data Investor Relations Overview | 32
Slide 33: Reconciliation of GAAP to non-GAAP financial measures
Exhibit 6 TECHNIPFMC PLC AND CONSOLIDATED SUBSIDIARIES RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (In millions, unaudited) In addition to financial results determined in accordance with U.S. generally accepted accounting principles (GAAP), the second quarter 2023 Earnings Release also inc
Slide 34: Reconciliation of GAAP to non-GAAP: Q2 2023
Exhibit 8 TECHNIPFMC PLC AND CONSOLIDATED SUBSIDIARIES RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (In millions, unaudited) Three Months Ended June 30, 2023 Foreign Surface Corporate Exchange, net and Subsea Technologies Expense Other Total Revenue $ 1,618.4 $ 353.8 $ — $ — $ 1,972.2 Opera
Slide 35: Reconciliation of GAAP to non-GAAP: Q1 2023
Exhibit 8 TECHNIPFMC PLC AND CONSOLIDATED SUBSIDIARIES RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (In millions, unaudited) Three Months Ended March 31, 2023 Foreign Surf ace Corporate Exchange, net Subsea Technologies Expense and Other Total Revenue $ 1,387.6 $ 329.8 $ — $ — $ 1,717.4 Ope
Slide 36: Reconciliation of GAAP to non-GAAP: Q2 2022
Exhibit 8 TECHNIPFMC PLC AND CONSOLIDATED SUBSIDIARIES RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (In millions, unaudited) Three Months Ended June 30, 2022 Surface Corporate Foreign Subsea Technologies Expense Exchange, net Total Revenue $ 1,414.6 $ 302.6 $ — $ — $ 1,717.2 Operating profi
Slide 37: Reconciliation of GAAP to non-GAAP: net debt
Exhibit 10 TECHNIPFMC PLC AND CONSOLIDATED SUBSIDIARIES RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (In millions, unaudited) June 30, March 31, June 30, 2023 2023 2022 Cash and cash equivalents $ 585.2 $ 522.3 $ 684.9 Short-term debt and current portion of long-term debt (429.5) (385.0) (1
Slide 38: Reconciliation of GAAP to non-GAAP: free cash flow
Exhibit 11 TECHNIPFMC PLC AND CONSOLIDATED SUBSIDIARIES RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (In millions, unaudited) Three Months Ended June 30, Six Months Ended June 30, 2023 2023 2022 Cash provided (required) by operating activities from continuing operations $ 156.2 $ (230.0) $
Slide 39: Investor Relations contacts
Investor Relations contacts Matthew Seinsheimer Senior Vice President, Investor Relations and Corporate Development Tel.: +1 281 260 3665 Email: InvestorRelations@TechnipFMC.com James Davis Director, Investor Relations Tel.: +1 281 260 3665 Email: InvestorRelations@TechnipFMC.com TechnipFMC.com