Technip Energies Nv · EURONEXT:TE
Technip Energies Nv — Investor Day (January 2021)
108 slides from Technip Energies Nv's investor day presentation, Jan 28, 2021
Slide 1: Technip Energies Capital Markets Day
January 2021 Technip Energies Capital Markets Day ADVERTISEMENT Technip Energies - Capital Markets Day 1
Slide 2: Today’s speakers
Today’s speakers Arnaud Pieton Bruno Vibert Marco Villa Magali Castano CEO-elect CFO-elect COO-elect SVP People & Culture Phillip Lindsay Alain Poincheval Stan Knez Charles Cessot Investor Relations Fellow Executive Project Director SVP Process Technology SVP Strategy Technip Energies - Capital Mark
Slide 3: Disclaimer
Disclaimer This presentation is an advertisement relating to the intention of the Com pany (as defined below) to proceed w ith the listing and adm ission of shares in Technip Energies (the "Shares") on Euronext Paris (the "Listing"). This presentation does not constitute a prospectus. This document
Slide 4: Disclaimer contd.
Disclaimer contd. If and w hen the Listing is launched, further details about the Listing w ill be included in a prospectus to be published by the Company in relation to the Listing (the " Prospectus"). Once the Prospectus has been approved by the Netherlands Authority for the Financial Mar kets (St
Slide 5: Key risk factors for consideration
Key risk factors for consideration The follow ing is a selection of the key risks that relate to the Company's industry and business, operations and financial conditions, based on the probability of their occurrence and the expected magnitude of their negativ e impact. In making this selection, Tech
Slide 6: Today's Agenda
Today's Agenda Technip Energies Capital Markets Day Opening remarks Phillip Lindsay, Investor Relations 14:00 – 14:30 Introduction Arnaud Pieton, CEO Technip Energies Pioneer downstream and gas evolution Alain Poincheval, Fellow Executive Project Director 14:30 – 15:45 Accelerate the energy transiti
Slide 7: Transaction rationale and highlights
Transaction rationale and highlights Create two independent companies via spin-off of 50.1% of Technip Energies Distinct and expanding Enhanced focus of Compelling and distinct market opportunities with management, resources investment profiles specific customer bases and capital Bpifrance to invest
Slide 8: We are
We are Technip Energies - Capital Markets Day 8
Slide 9: Safety at the heart of everything we do
Safety at the heart of everything we do TRIR1 0.25 0.16 0.07 0.04 2017 2018 2019 H1 2020 BAPCO - 30 Mmh4 without LTI HURL - 10 Mmh4 without LTI LTIR2 0.03 0.03 0.02 0.01 2017 2018 2019 H1 2020 0.05 SIFR3 0.03 0.02 0.03 2017 2018 2019 H1 2020 Midor - 5 Mmh4 without LTI ALNG 2 - 20 Mmh4 without LTI 1T
Slide 10: A compelling investment case
A compelling investment case Pioneer Accelerate the Leverage Outstanding Financial downstream energy capabilities to delivery strength and and gas transition expand stability evolution opportunity set World leader in H2, sustainable CO2 free solutions, Selectivity driving Asset light, LNG and chemis
Slide 11: Technip Energies at a glance
Technip Energies at a glance TE Paris The Netherlands Euronext Paris listing ticker Headquarters Incorporated ADRs for US investors €6.1B1 A leading E&T company 2 €13.2B1 Revenue Backlog for the Energy Transition 60+ BBB ~15,000 Years of operations Investment grade rating3 Employees in 34 countries
Slide 12: Technip Energies - what we do
Technip Energies - what we do A diversified provider of projects, technologies, products and services Projects Delivery Technology, Products & Services €5.0B1 revenue €1.1B1 revenue • Engineering and project management expertise • Process technologies and proprietary products • Technology integratio
Slide 13: Our ESG pledge for a sustainable future
Our ESG pledge for a sustainable future Making a better tomorrow Energy transition is our business ESG Ambitions • Deliver low-carbon technologies, solutions and projects Today • Code of business conduct • Establish carbon footprint reduction targets for Scope 1, 2 & 3 Today • HSE and D&I policies •
Slide 14: Accountability at CEO and Board-level
Accountability at CEO and Board-level Aligning ESG performance with management compensation 8 Leadership team remuneration metrics • Board Continuity – 5 non-executive directors joining from Individual Restricted Stock TechnipFMC Board targets • Independent non- Directors executive Chairman Joseph R
Slide 15: A transforming energy market
A transforming energy market More energy, less carbon: gas & renewables gaining share in the energy mix Natural gas • Natural gas continues to play a key role (power, heat, transport) Renewables Biomass • Growth in renewables driven by 2019-2040 mass electrification Primary Nuclear energy mix • Hydr
Slide 16: Assisting customers towards net-zero
Assisting customers towards net-zero Technip Energies has a critical role to play Meeting rising global O&G and energy Lowering emissions of demand for energy companies traditional industries Meeting environmental & Pure downstream Decarbonizing the global Energy climate targets players energy syste
Slide 17: Central capabilities throughout the energy landscape
Central capabilities throughout the energy landscape Technip Energies full-cycle offering – target best risk-reward scope Oil Base End Use Conventional energy chains Natural Gas Technology • Power CO2 Early • Heating Growth Engagement Expanding energy Hydrogen • Agriculture chains Projects • Finishe
Slide 18: Energy Transition is our business
Energy Transition is our business Applying our core capabilities to today and tomorrow’s key energy challenges Strategic flexibility – 'architect mindset' meeting LNG Sustainable chemistry customer needs from energy source to end-use Onshore and offshore Biofuels, biochemicals, circular liquefaction
Slide 19: Significant and diversified market opportunity set
Significant and diversified market opportunity set Leveraging capabilities to meet customer needs and energy transition challenges Annual addressable Mid-term trend1 market1 KEY DRIVERS Traditional markets 1-5% BASE LNG, downstream2 and >€70B CAGR Global need to reduce offshore CO2 emissions GDP gro
Slide 20: Technip Energies - Capital Markets Day
Technip Energies - Capital Markets Day 20
Slide 21: Pioneer downstream and gas evolution
Pioneer downstream 01 and gas evolution Highly competitive offering to address significant market opportunity
Slide 22: Base - pioneer downstream and gas evolution
Base - pioneer downstream and gas evolution Highly competitive offering to address significant market opportunity LNG & gas Offshore Downstream monetization T EE P S T EE P S T EE P S • A world leader in LNG • A world leader in • A world leader in €10-15B and GTL1 €10-15B Floating LNG2 €40-45B ethyl
Slide 23: Transition to a low carbon world - gas displacing coal
Transition to a low carbon world - gas displacing coal New LNG capacity to be sanctioned to meet demand 1 >140 Mtpa supply gap Coal Equivalent to >25% of current capacity LNG ~550Mtpa1 >690Mtpa1 Operating / Under construction Estimated 2035 LNG Demand Supply at year-end 2020 Equivalent to ~15 Mega 2
Slide 24: An LNG leader and pioneer with 50+ year track record
An LNG leader and pioneer with 50+ year track record An onshore & floating LNG leader Pioneering LNG innovations 105 Mtpa Onshore Global production delivered Low-to-zero carbon LNG modularization >20% Of operating LNG capacity 1 Mid-scale LNG Floating LNG 7.8 Mtpa World’s largest LNG trains delivere
Slide 25: Zoom on Yamal LNG and Arctic LNG 2
Zoom on Yamal LNG and Arctic LNG 2 Yamal LNG Arctic LNG 2 “… an unprecedented achievement for the LNG industry….” 1 “…The Yamal team joins a larger, more innovative project…” 1 • Modularized facility Trains 1 & 2 commissioned • Modularized facility Gravity-based structures in record time concept • 1
Slide 26: Low-to-zero carbon LNG
Low-to-zero carbon LNG Providing cleaner solutions for brownfield and greenfield LNG projects Our solutions CO2 from • Compression of CO2 feedstock • Dehydration of CO2 75% CO2 from • Increase process & power generation efficiency of em issions occur • Fuel gas decarbonization through H2 substitutio
Slide 27: Extensive offshore expertise and track record
Extensive offshore expertise and track record Bridging customer needs for decarbonized, economical offshore solutions Leader in offshore LNG Lay out & • Pioneer and leader in FLNG and modularization near-shore LNG • Optimizing economics through megamoduleTM concept Upstream 50+ years of HSE design •
Slide 28: Zoom on Coral South FLNG
Zoom on Coral South FLNG A first for Mozambique, showcasing Technip Energies’ offshore capabilities New frontier 3.4 Mtpa offshore LNG production deepwater offshore Mozambique Unique Challenging Double hull vessel Harsh conditions project 432m long, 220,000 tons designed to handle cat. 5 cyclones co
Slide 29: A diversified and innovative downstream offering
A diversified and innovative downstream offering Creating value across the downstream value chain Differentiated offering >40% ethylene licensing market share1 Emission reductions Digitally-enabled through efficiency process monitoring, >45 grassroot ethylene plants gains and beyond lifecycle servic
Slide 30: Zoom on decarbonizing ethylene
Zoom on decarbonizing ethylene Proprietary technology and equipment innovation to reduce environmental footprint New cracking furnace design: significant modernization contract for Shell Moerdijk >30% Reduction in emissions / ton of ethylene • Reduce total annual emissions at facility by 10% produce
Slide 31: Key takeaways: Pioneer downstream and gas evolution
Key takeaways Pioneer downstream and gas evolution • Recognized partner of choice globally with 50+ year track record and leading positions in LNG and ethylene • Positioned to capitalize on robust medium-term outlook with highly competitive offering & technology portfolio Pioneer downstream and gas
Slide 32: Accelerate the energy transition
Accelerate the energy 02 transition transition Unlocking energy chains of tomorrow
Slide 33: Growth - accelerate the energy transition
Growth - accelerate the energy transition Unlocking the energy chains of tomorrow Hydrogen Sustainable chemistry CO2 management T EE P T EE P T EE P • A world leader1 with • Key proprietary • >50 references for CO2 €5-10B >270 plants delivered €5-10B technologies in €1-5B removal solutions Annual (>
Slide 34: A hydrogen leader ready to tackle new megatrend
A hydrogen leader ready to tackle new megatrend From refinery commodity to energy transition enabler 600 Mtpa Blue: ~15% CAGR 500 Green: ~20% CAGR 400 €90B 300 CAPEX2 200 100 - 2020 2025 2030 2035 2040 2045 2050 50 years of core Proprietary steam #1 in hydrogen1 Extensive Global alliances competence
Slide 35: Hydrogen future is both blue and green
Hydrogen future is both blue and green Leverage leading position to provide decarbonized and carbon-free hydrogen solutions Blue hydrogen – extensive capabilities Green hydrogen – growth opportunity H2 Reforming Offshore or + onshore Electrolysis H2 technology CCUS renewables CO2 • 50+ references wi
Slide 36: Zoom on McPhy strategic investment & partnership
Zoom on McPhy strategic investment & partnership Accelerate the development of large-scale and competitive green hydrogen solutions “An important milestone for the future of the green hydrogen industry”3 Tier 1 electrolyzer supplier1 Address commercial opportunities, Shape integrate offerings and ma
Slide 37: Proprietary technology portfolio
Proprietary technology portfolio A leading portfolio of process technologies Intellectual property portfolio expansion #1 #1 in Hydrogen1 in Ethylene 2 270 plants 150 plants + 3,000 +100% patents • Key growth platforms in sustainable Badger chemistry & polymers + 1,500 portfolio Zim m er patents acq
Slide 38: Sustainable chemistry
Sustainable chemistry Biomass displacing fossil as feedstock, recycling for virtuous resource consumption Bio-fuels Bio-chemicals Circular economy Proprietary technologies • +2G1 Bio-ethanol • Drop-in chemicals • Plastics to bio-oil • +2G1 Bio-diesel • Bio-polymers • Plastics to monomers Proprietary
Slide 39: Zoom on Neste partnership
Zoom on Neste partnership A collaboration for future NEXBTLTM renewable diesel projects Successful realization of two world scale renewable diesel plants in the late 2000’s “Neste’s partner of choice for future NEXBTLTM projects”1 Rotterdam ~8MMbbl/y Key provider of FEED services for NEXBTLTM Singap
Slide 40: Zoom on PLAnet alliance
Zoom on PLAnetTM alliance Enabling sustainable bio-plastics Sugars Lactic acid PolyLactic Acid Recycling unit (PLA) plastic or composting Renewable Bio-based feedstock alternative & circular to plastics economy “A fully integrated technology offering from sugars to PLA” Alliance Futerro, Sulzer, Tec
Slide 41: CO2 management throughout project lifecycle
CO2 management throughout project lifecycle Delivering innovative solutions to fulfill customer low-carbon ambitions Gen-CAT TM – proprietary carbon assessment tool Digital Early Technology • Assessment of direct / indirect emissions throughout engagement advisory entire project lifecycle services •
Slide 42: Zoom on Acorn CCS and Hydrogen
Zoom on Acorn CCS and Hydrogen Making best use of existing assets to deliver low-carbon infrastructures “Cutting-edge technology to reduce emissions” 1 Objective: Create a major hydrogen and CCS hub in Scotland Our scope: screening & feasibility study Deliver a cost-competitive and low-risk project
Slide 43: Zoom on carbon capture as a product offering
Zoom on carbon capture as a product offering Delivering high value carbon capture module to any industrial application Pilot plant successfully delivered, paves way towards a full-scale solution Pilot project in FOV waste-to-energy plant • CO2 capture plant <1Y delivered in 21 weeks Delivery • Based
Slide 44: Key takeaways: Accelerate the energy transition
Key takeaways Accelerate the energy transition • Leveraging a pioneering mindset to remain at the forefront as the market evolves towards new energy chains • Market shift towards hydrogen, sustainable chemistry and low-carbon infrastructures plays to our strengths Accelerate the energy transition •
Slide 45: Leverage capabilities to expand opportunity set
Leverage capabilities to 03 expand opportunity set Bring core capabilities to attractive new markets
Slide 46: Upside - leverage capabilities to expand opportunity set
Upside - leverage capabilities to expand opportunity set Bring core capabilities to attractive new markets Services Energy transition Industries T EE S T EE P S T EE P S €5-10B • Advisory & consulting €1-5B • Offshore wind €5-10B • Life sciences Annual • Project Management Annual • Offshore hydrogen
Slide 47: Enhance our high value services to customers
Enhance our high value services to customers Display our unique capabilities through advisory and project management consulting Advisory services Project Management Consultancy (PMC) Support customers to achieve De-risk execution from investment and safety goals technology selection to delivery Prop
Slide 48: Zoom on Plant Performance Improvement
Zoom on Plant Performance Improvement Support advisory by unlocking life-of-plant opportunities with real-time process monitoring Cloud-based universal process tool Enabling multiple optimization Energy From Offshore and transition upstream to onshore (CCUS, sustainable chemistry, hydrogen) downstre
Slide 49: An ideal partner for floating offshore wind
An ideal partner for floating offshore wind Applying offshore capabilities to full-scale renewable energy projects Development – from wind farm architecture to operations Hywind for Equinor Technology – economical floater design and - scale-up Delivered first industrial size floating wind project Pr
Slide 50: Positioning in offshore electron to hydrogen
Positioning in offshore electron to hydrogen Bridging offshore wind and hydrogen transformation to unlock new possibilities Integration capabilities – from electron to Hydrogen as a clean energy carrier hydrogen molecule, and offshore to onshore Differentiated design and execution capabilities Ensur
Slide 51: Zoom on Offshore C-Hub concept
Zoom on Offshore C-HubTM concept Innovative solution to overcome CO2 management challenges Adaptable, relocatable and flexible • Optimal for emissions from multiple locations with various sources / quantities • Onshore CO2 capture and liquefaction • LCO2 carriers transport liquefied CO 2 to the inje
Slide 52: Servicing other industries
Servicing other industries Applying our core capabilities and leveraging international footprint beyond energy Life sciences Metals & Nuclear Agritech • Resilient customer spending: steady • Crucial market for energy transition: key • Fast-evolving market adapting to baseload demand and relocation w
Slide 53: Propel innovation via platforms in key ecosystems
Propel innovation via platforms in key ecosystems Bringing external and internal energies together Europe Silicon Valley Boston area India Incubating & developing Weymouth Frankfurt R&D center R&D center technologies Supporting scale-up of breakthrough technologies Collaborating with institutions on
Slide 54: Key takeaways: Leverage capabilities to expand opportunity set
Key takeaways Leverage capabilities to expand opportunity set • Expanded advisory and high value services offering without compromising selectivity • Utilizing core skills in bridging electron to molecule and project Leverage delivery expertise to expand into carbon-free markets capabilities to expa
Slide 55: Outstanding delivery
04 Outstanding delivery Selectivity in an opportunity-rich environment
Slide 56: 60+ years of successful delivery
60+ years of successful delivery Transforming energies with a pioneering spirit Camel LNG Prelude and Satu Yamal LNG Neste Singapore Jubail World’s first LNG plant (1964) World’s first FLNGs Largest Arctic Proj ect World’s largest bio-diesel World’s deepest conv ersion plant refinery CP Chem Aasta H
Slide 57: Proven and disciplined operating model
Proven and disciplined operating model Selectivity, our recipe for outstanding delivery Early Proprietary Strong risk Technical and engagement technology management & project portfolio controls management expertise Digital as an enabler Technip Energies - Capital Markets Day 57
Slide 58: Early engagement
Early engagement Making projects economically viable Apply optimal technologies & define specifications For best execution and project economics Scenario Development Feasibility Concept Selection • Reduce risk for project execution • Ensure continuity through the project lifecycle • Reduce overall i
Slide 59: Risk management & controls
Risk management & controls Efficient, consistent and safe execution Risk management & control methodology Transversal Pre-bidding Proposal phase Execution phase Execution risks à Control Design • Pre-qualification • Risk evaluation • Continuous risk assessment • Early tendering • Project Management
Slide 60: Zoom on disciplined commercial approach
Zoom on disciplined commercial approach Project selectivity - key to delivering solid operational and financial performance Early Known Known Technologies2 Engagement1 partners geography NOVATEK - ARCTIC LNG 2 BAPCO - BMP REFINERY MIDOR - REFINERY EXPANSION BP - TORTUE FPSO LONG SON PETROCHEMICALS R
Slide 61: Digital - derisking execution, creating opportunities
Digital - derisking execution, creating opportunities Connecting proprietary solutions to optimize the full asset lifecycle Innovative Data & analytics digital project as foundations execution Early Proprietary Strong risk Technical engagement technology management and project portfolio & controls m
Slide 62: Zoom on Ultra Front End Suite
Zoom on Ultra Front EndTM Suite Digital engagement with customers during the earliest planning phase An open cloud platform • Digital toolbox – help customers to evaluate asset development opportunities faster, with greater clarity Framing and Automated Realize greater Presenting data analyzing the
Slide 63: Zoom on SPEED model
Zoom on SPEEDTM model Taking system engineering to the next level Data-centric & customized approach Standardized & designed offer Collaborate with Up to 20% of time customers on saving for cost & schedule dedicated tasks optimization Applicable to both Stable workload proprietary and & competencies
Slide 64: Talented global workforce across 34 countries
Talented global workforce across 34 countries Passion to deliver whatever the challenge Europe ≈ 6,500 Americas ≈ 1,500 India ≈ 2,650 Middle East ~15,000 skilled and Africa ≈ 1,700 engaged employees providing flexible APAC ≈ 2,300 execution and proximity to customers Technip Energies - Capital Marke
Slide 65: Experienced, diverse and dynamic workforce
Experienced, diverse and dynamic workforce 104 9y 28% Nationalities Average seniority Women (time spent at the Company) 46% ~310 ~450 Millennials and Generation Z Technical experts Project managers1 with industry leadership 1From project manager lev el 1 up to f ellow executiv e project director, in
Slide 66: Human Energies - project organization at the core
Human Energies - project organization at the core Ability to drive execution from young engineers to fellow executive project directors Arunika Lay Menn Elisabeth Process engineer Senior project engineer Project manager • Recent graduate engineer • 16Y experience on both FEED and EPC • Joined compan
Slide 67: Human Energies - technical expertise at the core
Human Energies - technical expertise at the core Ability to integrate technologies from young engineers to fellow experts Dhivaahar Nicole Manikandan Process safety engineer Senior process engineer Project development director • 5Y experience • 8Y experience • 28Y experience • Focus on HSE Design •
Slide 68: Technip Energies leadership team
Technip Energies leadership team Average 25+ years of industry expertise Stan Knez Alain Poincheval Christophe Bélorgeot Marco Villa Arnaud Pieton Bruno Vibert Magali Castano Christophe Virondaud Charles Cessot SVP Process Fellow Executiv e SVP Communications COO-elect CEO-elect CFO-elect SVP People
Slide 69: Key takeaways: Outstanding delivery
Key takeaways Outstanding delivery • Proven operating model combining digital solutions, early engagement, technology and risk management • A disciplined commercial approach underpinned by stringent selectivity criteria Outstanding delivery • Human Energies - a global team of ~15,000 professionals w
Slide 70: Financial strength and stability
Financial stability strength and 05 stability A foundation for sustainable shareholder returns
Slide 71: Financial strength and stability
Financial strength and stability A foundation for sustainable shareholder returns Strong High ROIC Early cash Asset light & revenue & potential & conversion of strong balance margin Dividend earnings sheet visibility commitment1 A unique platform for value creation in the Energy Transition 1Subject
Slide 72: Two leading business units
Two leading business units Key financial highlights Projects Delivery Technology, Products & Services €5.0B 1 €12.1B 2 €1.1B 1 €1.1B 2 Revenue Backlog Revenue Backlog Backlog- Cash Strategic linked generation Shorter Accretive Long-cycle revenue revenue through the Cycle margins growth growth cycle
Slide 73: Delivering industry leading performance
Delivering industry leading performance Selectivity and execution driving robust margins Revenue1 EBIT 1 Backlog2 € Billion € Million € Billion 470 16,08,0% 1.0 6,0 7.1% 420 6.4% 14,07,0% 5,0 1.1 1.2 370 5.8% 12,06,0% 4,0 320 1.1 10,05,0% 270 3,0 8,0 4,0% 1.0 220 15.0 393 6,0 2,0 4.2 4.3 170 303 3,0
Slide 74: Strong earnings delivery
Strong earnings delivery Financial resilience in unprecedented times Revenue & EBIT1 margin Backlog2 9 € Billion 8,0% € Billion 7.1% 8 5.6 - 5.8% 7,0% H1 2020 12.1 1.1 7 6,0% 2019 15.0 1.0 5,0% 6 0.6 4,0% -3,0 2,0 7,0 12,0 17,0 5 H2 2.9 – 3.1 3,0% 4 H2 2020E • Resilient performance despite COVID-19;
Slide 75: Well diversified and Energy Transition-ready backlog
Well diversified and Energy Transition-ready backlog Providing strong future earnings visibility Backlog scheduling By project value By market Backlog € Billion Energy Transition H1 Revenue € Billion > €1B incl. LNG 1 4.6 5 projects €500M-1B 40% 5.5 8 projects €100-500M 60% 3.1 3.0 160+ projects < €
Slide 76: Selective growth and upside potential
Selective growth and upside potential Clear momentum of Energy Transition prospects beyond LNG By traditional markets and geography Energy transition (ex-LNG) 3000,0 Offshore / Americas Europe & others LNG & gas Africa 2500,0 monetization 14% 18% 2000,0 30% > 8x 33% APAC & 12% 1500,0 ~ €90B India ~
Slide 77: Financial outlook and guidance
Financial outlook and guidance Selective growth and upside potential 2020e 2021e Medium-term outlook • Single-digit growth, constant currency Revenues €5.9 – 6.1B1 €6.5 - 7.0B • Backlog execution & substantial pipeline 5.5% - 6.0% • Target 100bps+ increase for EBIT margin 2 5.6% - 5.8% (exc. one-off
Slide 78: A clear path to increased profitability
A clear path to increased profitability Investment focused on growth while improving margins Medium-term margin potential Cost optimization 20% lower SG&A despite higher absolute R&D spend Proj ect maturity, 10% execution & risk mitigation Technology & Mix effect 15% 5.6 - 5.8% Cost optimization 202
Slide 79: Financial principles - project cash flow curve
Financial principles - project cash flow curve Key business objective - a positive cash position through project lifecycle Typical project cash flows Key drivers • Bidding principle - net cash flow positive Cash flows throughout the project lifecycle • Project execution with a resolute cash manageme
Slide 80: Strong balance sheet enables strategic growth
Strong balance sheet enables strategic growth Platform for high returns on invested capital Pro forma adj usted capital structure (EUR billion) Capital structure highlights Equity 1.2B Goodwill 2.2B • “People” business – low tangible fixed Debt 0.7B assets and low capital investment needs Non-curren
Slide 81: Cash flow conversion of earnings through NCL
Cash flow conversion of earnings through NCL Net contract liability includes future earnings already cashed-in Net contract liability (NCL)1 Yamal illustration As of June 30, 2020 Yamal contract Reduction in contract liabilities: €75.0M 18% December 31, 2019 to June 30, 2020 liabilities €2.7 Payment
Slide 82: Differentiated capital structure
IFRS view Differentiated capital structure Strong liquidity and limited leverage Strong liquidity Limited leverage € Million 3 500 Commercial Paper 125 125 750 3 000 3,053 3,678 626 2 500 1.9x 3,053 2,302 2 000 Bridge to Bond Gross Debt / 2021 EBIT1 1 500 -7.5x 1 000 Cash RCF Outstanding Liquidity,
Slide 83: Capital allocation focused on strong balance sheet
Capital allocation focused on strong balance sheet Consistency in financial performance drives high returns on invested capital Sustainable high ROIC1 20 18 16 14 12 12% – 15% 10 8 12-15% 6 4 13% 11-13% 2 0 Balanced 2019 2020E 2021E capital allocation Consistent dividend policy • Asset light, low ca
Slide 84: Key takeaways: Financial strength and stability
Key takeaways Financial strength and stability • Industry leading financial performance supported by commercial astuteness and robust project execution • Quality backlog and strong prospective pipeline underpinning Financial guidance; initiatives to drive medium-term margin expansion strength and st
Slide 85: Closing remarks
Closing remarks Making a better tomorrow
Slide 86: A compelling investment case
A compelling investment case Pioneer Accelerate the Leverage Outstanding Financial downstream energy capabilities to delivery strength and and gas transition expand stability evolution opportunity set A leading Engineering and Technology company for the Energy Transition Note: world leader in LNG -
Slide 87: Unique capability set to enable the energy transition
Unique capability set to enable the energy transition Selectivity underpinning 60+ years of operational excellence Asset light model with sustainable returns potential Technip Energies - Capital Markets Day 87
Slide 88: Appendix
Appendix
Slide 89: Leadership Team
Leadership Team Average 25+ years of diverse industry expertise Arnaud Pieton Bruno Vibert Marco Villa CEO-elect CFO-elect COO-elect Current: President Technip Energies Current: SVP Finance Technip Energies Current: President Operations, Technip Energies Prior experience: 22 years of industry Prior
Slide 90: Peers landscape
Peers landscape Projects Delivery Technology, Products & Services E&C players Engineering consultancy LNG Technology portfolio Energy transition pure players Technip Energies - Capital Markets Day 90
Slide 91: Accounting principles explained
Accounting principles explained Adjusted IFRS – our approach for greater transparency The adjusted view Proportional adjustments Showing the economical view of project Joint Yamal LNG Ventures; integrating line by line for respective • 50% proportional share share of joint venture project entities •
Slide 92: Financial principles – gross margin recognition
Financial principles – gross margin recognition A prudent approach to gross margin recognition Recognition on a typical project Key drivers Gross margin recognition Non-linear margin recognition; conservative recognition in early stages of a project Gross margin recognition subject to: • Project spe
Slide 93: Financial principles – net contract liabilities
Financial principles – net contract liabilities Balance sheet mirror revenue recognition and cash collection Contract liabilities Typical project example Cash / Revenue Payment received from customer (project to date) 100 A Expenses (costs incurred) – project to date 70 Gross margin 5 Revenue recogn
Slide 94: Income statement
Income statement in € Million 2017 2018 2019 H1 2020 Order Intake 3,787.4 6,924.0 12,779.6 1,162.1 Revenues 5,242.3 4,467.1 5,529.8 3,011.1 Gross Margin 699.8 682.7 853.3 412.5 % Gross Margin 13.3% 15.3% 15.4% 13.7% Indirect costs (364.3) (374.8) (363.0) (196.2) EBITDA (excl. Charges) 335.5 307.9 49
Slide 95: Income statement – adjusted recurring EBIT
Income statement – adjusted recurring EBIT in € Million 2017 2018 2019 H1 2020 Profit before financial expense, net 228.3 40.0 270.3 198.8 and income taxes - Adjusted Restructuring and other non-recurring 48.0 11.3 52.4 (46.8) items Exceptional Items Merger and integration costs allocated 26.2 15.4
Slide 96: Balance sheet
Balance sheet in € Million 2017 2018 2019 H1 2020 Goodwill & non-current assets 2,477 2,525 2,885 2,842 Trade receivables 706 1,124 989 989 Cash and cash equivalents 2,681 2,470 3,053 3,509 Contract assets 445 272 400 362 Other current assets 698 448 534 720 Total assets 7,008 6,838 7,861 8,422 Tota
Slide 97: Cash flow statement
Cash flow statement In € Million 2017 2018 2019 H1 2020 Cash and cash equivalents, beginning of period 3,545.9 2,681.1 2,469.5 3,053.1 Cash provided (required) by operating activities 183.7 492.8 1,193.2 697.8 Cash provided (required) by investing activities (13.4) (11.7) (36.8) (20.4) Cash provided
Slide 98: H1 2020 Income statement
H1 2020 Income statement Reconciliations from IFRS consolidated to adjusted IFRS H1 2020 H1 2020 in € Million Adjustments Consolidated Adjusted Revenues 2,829.4 181.7 3,011.1 Total Costs and expenses 2,552.0 231.5 2,783.5 Other income (expense), net (23.8) (5.2) (29.0) Income from equity affiliates
Slide 99: H1 2020 Tax statement (interim)
H1 2020 Tax statement (interim) Reconciliations from IFRS consolidated to adjusted IFRS H1 2020 H1 2020 Adjustments in € Million Consolidated Adjusted YTD PBT 183.5 14.6 198.1 YTD projected tax (expense)/benefit (73.3) (73.3) Discrete adjustments (expense)/benefit 4.8 3.1 7.9 Total Tax expense (68.5
Slide 100: H1 2020 Balance sheet
H1 2020 Balance sheet Reconciliations from IFRS consolidated to adjusted IFRS Pro-forma in € Million H1 2020 H1 2020 Capital Adjustments Adjustments Consolidated Adjusted Structure Day 1 of trading Goodwill & non-current assets 2,910 (68) 2,842 (33) 2,809 Trade receivables 942 47 989 (73) 916 Cash a
Slide 101: H1 2020 Cash flow statement
H1 2020 Cash flow statement Reconciliations from IFRS consolidated to adjusted IFRS H1 2020 H1 2020 in € Million Adjustments Consolidated Adjusted Cash and cash equivalents, beginning of period 3,563.6 (510.6) 3,053.1 Cash provided (required) by operating activities 473.3 224.5 697.8 Cash provided (
Slide 102: 2019 income statement
2019 income statement Reconciliations from IFRS consolidated to adjusted IFRS 2019 2019 in € Million Adjustments Consolidated Adjusted Revenues 5 768.7 (238.9) 5 529.8 Total Costs and expenses 5 059.7 156.8 5 216.5 Other income (expense), net (38.7) (6.4) (45.1) Income from equity affiliates 2.9 (0.
Slide 103: 2019 tax statement
2019 tax statement Reconciliations from IFRS statements to normalized tax rate 2019 Non-recurring 2019 in € Million Consolidated Items Adjusted Normalized PBT 338.6 71.1 409.7 At French tax rate (34.43%) (116.6) (14.6) (131.2) Mix and Valuation allowance (34.1) 32.9 6.1 Net change in tax contingenci
Slide 104: Capitalization and indebtedness
Capitalization and indebtedness Projected capital structure based on November 30, 2020 position As of Adjustments As of June 30, 1 in € Million Movements November 30, For financing & As adjusted 2020 consumption of spin-off 2020 Cash and cash equivalents 3,672.2 (369.4) 3,302.8 (249.8) 3,053.0 Trade
Slide 105: Return On Invested Capital (ROIC)
Return On Invested Capital (ROIC) in € Million 2019 Actuals 2020F 2021F Min3 Max 3 Min3 Max 3 Revenues 5,530 5,900 6,100 6,500 7,000 EBIT % 7.1% 5.6% 5.8% 5.5% 6.0% EBIT (€ Million) 393 330 354 358 420 Normalised Tax Rate 35% 35% 30% 35% 30% Normalised Tax exp. 137 . 116 106 125 126 NOPAT 1 256 214
Slide 106: Yamal LNG – Interpreting the disclosures
Yamal LNG – Interpreting the disclosures Adjusted IFRS View Project disclosure data Contract liabilities structure In € Millions Dec 31, Jun 30, Reduction in contract liabilities: €75.0m 2019 2020 December 31, 2019 to June 30, 2020 Contract liabilities 564.9 489.9 Payments to Vendors or Technip Ener
Slide 107: Yamal LNG – Interpreting the disclosures
Yamal LNG – Interpreting the disclosures IFRS View Project disclosure data Contract liabilities structure In € Millions Dec 31, Jun 30, 2019 2020 Reduction in contract liabilities: €149.9m December 31, 2019 to June 30, 2020 Contract liabilities 1 129.7 979.8 Payments to Vendors or JV partners Mandat
Slide 108: Thank You
Thank You