Technip Energies Nv · EURONEXT:TE
Technip Energies Nv — FY 2023 Earnings Presentation
42 slides from Technip Energies Nv's earnings presentation, Feb 29, 2024
Slide 1: Executing: FY 2023 Results
Executing Outstanding 2023 performance with strong margins, commercial success and strategic positioning FY 2023 Results
Slide 2: Forward looking statements
Forward looking statements This presentation contains forward-looking statements that reflect Technip Energies’ (the “Company”) intentions, beliefs or current expectations and projections about the Company's future results of operations, anticipated revenues, earnings, cashflows, financial condition
Slide 3: Welcome
Welcome Business highlights Arnaud Pieton CEO Financial highlights Bruno Vibert Outlook CFO Technip Energies – FY 2023 Results 3
Slide 4: Enabling net-zero solutions
A robust financial platform for sustainable returns • Multi-year backlog visibility, best-in-class margins, high returns • Asset light with strong balance sheet, high cash conversion, capacity to invest Leadership in the markets of today and tomorrow • Established in LNG, ethylene, sustainable fuels
Slide 5: Business highlights
Business highlights Arnaud Pieton - CEO Technip Energies – FY 2023 Results 5
Slide 6: FY 2023 – Key highlights
FY 2023 – Key highlights Outstanding execution, commercial success and strategic positioning € 6.0bn Adjusted revenue 7.4% Adjusted recurring Robust financial performance; 6.4bn FY 2022: € EBIT margin Adj. Rec EBIT % at top-end of guided range FY 2022: 7.0% € 0.57/sh Proposed dividend1 raised by 10%
Slide 7: Key Q4 operational highlights
Key Q4 operational highlights Maintaining strong execution across the portfolio LNG Downstream TPS Sempra ECA Long Son Canopy by T.EN demo unit TM Sempra ECA LNG: 98% equipment Long Son Olefins: Successful start-up Pilot projects for Canopy by T.EN : delivered at site; 10 million manhours milestone
Slide 8: Executing strategic objectives
Sustain LNG leadership Reinforce strong market position • Selectively convert FEED pipeline to EPC or EPCm • Drive decarbonization agenda North Field South • Deliver new modularized, electrified offerings 2023: Grow TPS Executing Enhance higher margin offering strategic • Technology investment: incr
Slide 9: 2023 demonstrates strength of T.EN's hybrid model
2023 demonstrates strength of T.EN’s hybrid model Combination of long cycle & short cycle segments yields performance and resilience Project Delivery Technology, Products TPS increasing (long cycle) and Services in segments EBIT mix (short cycle) 37% 63% • Selectivity-driven multi-year backlog • Sub
Slide 10: Sustainability achievements Recognition
Sustainability achievements Recognition • Scope 1 & 2 GHG emission AAA reduction: 28% vs 2021 Leadership maintained • 100% of technology & innovation programs dedicated to sustainability 27.7 (2022: 33.3) Top 10% of industry group • 1st global employee share 49 ownership plan: ESOP (2022: 34) Top 7
Slide 11: Financial highlights
Financial highlights Bruno Vibert - CFO Technip Energies – FY 2023 Results 11
Slide 12: Strong FY 2023 performance
Strong FY 2023 performance € 445m € 1.63 € 543m Adjusted Recurring EBIT Adjusted diluted EPS Free cash flow, ex W.cap1 FY 2022: € 451m FY 2022: € 1.79 FY 2022: € 420m FY 2023 financial highlights € 10.1bn € 15.7bn € 2.8bn Adjusted order intake Backlog1 Adjusted net cash FY 2022: € 3.8bn FY 2022: € 1
Slide 13: Project Delivery
Project Delivery Strong margins; backlog expansion provides multi-year revenue visibility Revenue Recurring EBIT Backlog in € million in € million in € million • Revenue: double digit sequential growth H2 - 19% - 20% + 29% vs H1; Y/Y impacted by loss of revenue associated to Russia LNG projects. 396
Slide 14: Technology, Products & Services
Technology, Products & Services Substantial growth in segment financials Revenue Recurring EBIT Backlog in € million in € million in € million +X% • Revenue: driven by technology and + 38% + 43% - 9% proprietary equipment for ethylene, and services and studies. • Margin: +30bps Y/Y benefiting from 1
Slide 15: Other key metrics and balance sheet
Other key metrics and balance sheet Strong balance sheet with significant underlying net cash position R&D € 62 million Spend equiv. to 1.0% of revenue vs 0.8% in 2022. Income Statement Net financial income € 86 million Higher interest rate benefit on gross cash position. Effective tax rate 29.9% Wi
Slide 16: Solid underlying free cash flow
Solid underlying free cash flow Cashflow bridge in € million • Operating cash flow: €261m; Free cash flow1: €213m, notwithstanding €331m working capital outflow. • Free cash flow, excluding working capital impact, €543m; Free cash conversion from Adj. Rec. EBIT: 122%. • Other items of note: • €30m c
Slide 17: A longer-term perspective on cash flow
Zooming out: a longer-term perspective on cash flow Strengthening Assessing freeour position cash on the world’s flow generation sincelargest LNGcreation company development Free cash flow, € 1.3bn FCF generation since 2021 € 7.1/sh Cumulative FCF, 1 excl wcap € /share Consistently high FCF conversi
Slide 18: Attractive total shareholder returns
Attractive total shareholder returns Strengthening our position Proposing an increase on the world’s in dividend largestaLNG and initiating development share buyback Share TSR since Dividend +10% buyback € 100m inception +88% • 2023 proposed dividend: €0.57/share • Supplemental return of capital to
Slide 19: Company guidance for 2024
Company guidance for 2024 On track to deliver our medium-term framework Effective Revenue EBIT margin tax rate €6.1 - 6.6bn 7.0% - 7.5% 26% - 30% 1 EPS : double-digit growth Financial inf ormation is presented under adjusted IFRS (see Appendix 8.0 of FY 2023 Results Release). Reconciliation of IFRS
Slide 20: Outlook
Option 2 Outlook Arnaud Pieton - CEO Technip Energies – FY 2023 Results 20
Slide 21: A view from T.EN: key observations and market trends
Energy affordability & security Continued importance of traditional markets • Reliable execution of large projects A view from • Resource availability and competence T.EN Emissions abatement Progressive adoption of decarbonization solutions Key observations • Electrified LNG + CO2 capture, ethylene,
Slide 22: T.EN leadership in key markets
T.EN leadership in key markets LNG Carbon Capture Sustainable Fuels Ethylene +60Mtpa >90 awards c.3,000Ktpa +35,000Ktpa from study to EPC in 2023+ across T.EN SAF portfolio from study to T.EN portfolio from study to EPC in In FEED / proposal stage by T.EN Capture.Now platform EPC in 2023+ 2023+ Exte
Slide 23: Strategic objectives for 2024
Strategic objectives for 2024 Focusing on our core competences and differentiated capabilities Strengthen leadership in Build proprietary technology our target markets demo plants Commercial success with Enhance performance through new offerings digitalization and AI Enabling NET ZERO solutions Coll
Slide 24: Key takeaways
KEY TAKEAWAYS Successful 2023 with solid financials and growth in orders; supporting a 10% dividend increase and share buyback Hybrid model delivers performance, resilience Executing and differentiation supporting T.EN’s strong outlook Delivering on strategic priorities to drive competitive advantag
Slide 25: Capital Markets Day Q4 2024
TECHNIP ENERGIES Capital Markets Day Q42024 ‘)
Slide 26: Q&A
Q&A Technip Energies – FY 2023 Results 26
Slide 27: Appendix
Option 2 Appendix Technip Energies – FY 2023 Results 27
Slide 28: Backlog schedule
Backlog schedule Total €15,713m adjusted backlog 2024 2025 €5,097m €4,070m 2026+ €6,546m Adjusted backlog at December 31, 2023, has been impacted by f oreign exchange of €(230.6) million. Technip Energies – FY 2023 Results 28
Slide 29: Medium-term financial framework
Medium-term financial framework Confirming strong revenue growth potential and stability in margin outlook Revenue EBIT %1 Project €5 - 6bn (selectivity-driven) 6.5% – 7.5% Maturing pipeline, larger LNG Backlog strength, Delivery / energy transition orders quality replenishment R&D ~1% of revenue Ex
Slide 30: Adjusted statements of income – FY 2023
Adjusted statements of income – FY 2023 Financial inf ormation is presented under adjusted IFRS (see Appendix 8.0 of FY 2023 Results Release). Reconciliation of IFRS to non-IFRS f inancial measures are prov ided in appendices. Technip Energies – FY 2023 Results 30
Slide 31: Adjusted statements of income – Q4 2023
Adjusted statements of income – Q4 2023 Financial inf ormation is presented under adjusted IFRS (see Appendix 8.0 of FY 2023 Results Release). Reconciliation of IFRS to non-IFRS f inancial measures are prov ided in appendices. Technip Energies – FY 2023 Results 31
Slide 32: Reconciliation between IFRS and Adjusted – FY 2023
Adjusted statements of income Reconciliation between IFRS and Adjusted – FY 2023 Financial inf ormation is presented under adjusted IFRS (see Appendix 8.0 of FY 2023 Results Release). Reconciliation of IFRS to non-IFRS f inancial measures are prov ided in appendices. Technip Energies – FY 2023 Resul
Slide 33: Reconciliation between IFRS and Adjusted – FY 2022
Adjusted statements of income Reconciliation between IFRS and Adjusted – FY 2022 Financial inf ormation is presented under adjusted IFRS (see Appendix 8.0 of FY 2023 Results Release). Reconciliation of IFRS to non-IFRS f inancial measures are prov ided in appendices. Technip Energies – FY 2023 Resul
Slide 34: Reconciliation between IFRS and Adjusted – Q4 2023
Adjusted statements of income Reconciliation between IFRS and Adjusted – Q4 2023 Financial inf ormation is presented under adjusted IFRS (see Appendix 8.0 of FY 2023 Results Release). Reconciliation of IFRS to non-IFRS f inancial measures are prov ided in appendices. Technip Energies – FY 2023 Resul
Slide 35: Reconciliation between IFRS and Adjusted – Q4 2022
Adjusted statements of income Reconciliation between IFRS and Adjusted – Q4 2022 Financial inf ormation is presented under adjusted IFRS (see Appendix 8.0 of FY 2023 Results Release). Reconciliation of IFRS to non-IFRS f inancial measures are prov ided in appendices. Technip Energies – FY 2023 Resul
Slide 36: Adjusted statements of financial position
Adjusted statements of financial position Financial inf ormation is presented under adjusted IFRS (see Appendix 8.0 of FY 2023 Results Release). Reconciliation of IFRS to non-IFRS f inancial measures are prov ided in appendices. Technip Energies – FY 2023 Results 36
Slide 37: Adjusted statements of cashflows
Adjusted statements of cashflows Financial inf ormation is presented under adjusted IFRS (see Appendix 8.0 of FY 2023 Results Release). Reconciliation of IFRS to non-IFRS f inancial measures are prov ided in appendices. Technip Energies – FY 2023 Results 37
Slide 38: Differentiated capital structure
Differentiated capital structure Net liquidity, December 31, 2023 Net cash, December 31, 2023 € million € million 80 161 750 Commercial Paper & Others 600 the Notes1 4,239 3,569 3,569 2,808 Cash RCF Outstanding Liquidity Cash Gross debt Net cash commercial paper • Robust liquidity position comprised
Slide 39: Stock information and ADR
Stock information and ADR Stock ADR program Listed on Euronext Paris / SBF 120 index Ticker code: TE / ISIN code: NL0014559478 Exchange: Over-the-Counter Free float: 137.8 million / Outstanding shares: 180.5 million Ratio: 1 ADR : 1 ORD Market Cap on Dec 31, 2023: €3.8 billion Share price € Volume •
Slide 40: Technip Energies upcoming investor events
Technip Energies upcoming investor events Opportunities to interact with company management and investor relations March 11-14, 2024 March 14, 2024 March 19, 2024 May 2, 2024 May 7, 2024 May 14, 2024 May 29, 2024 FY Results Roadshow Barclays Decarbonisation Jefferies Mid-Cap Q1 2024 Results AGM, Cit
Slide 41: A diversified shareholder structure
A diversified shareholder structure Equity Split Institutional Investors As a % of Shares Outstanding Regional split Retail Rest of World 3.7% Other incl. hedge funds 5.8% Continental Europe Institutional 7.8% (long only) 16.1% France 33.5% T.EN treasury 2.5% 59.5% Strategic 23.0% shareholders1 UK &
Slide 42: Investor Relations
Investor Relations Phillip Lindsay Vice President, Investor Relations Tel: +44 20 7585 5051 phillip.lindsay@ten.com Investor Relations Corentin Cargouët Manager, Investor Relations Tel: +33 6 71 21 12 45 corentin.cargouet@ten.com