Maire S.p.A. · MIL:MAIRE
Maire — Maire Tecnimont — Investor Presentation (January 2018)
37 slides from Maire's investor presentation, January 2018
Slide 1: Maire Tecnimont Group Overview
MAIRE TECNIMONT GROUP OVERVIEW January 2018
Slide 2: Disclaimer
DISCLAIMER This document has been prepared by Maire Tecnimont S.p.A. (the “Company”) solely for use in the presentation of the Maire Tecnimont Group (the “Group”). This document does not constitute or form part of any offer or invitation to sell, or any solicitation to purchase any security issued b
Slide 3: Summary
SUMMARY 1. Group Overview 2. Strategy and Competitive Positioning 3. Operations and Commercial Activity 4. Financial Data 5. Conclusions
Slide 4: Maire Tecnimont Group
MAIRE TECNIMONT GROUP • Leading worldwide engineering contractor Key Indicators focusing on: €2.6 bn Revenues (9M 2017) – Oil&Gas 8,400 Employees and E&I professionals – Petrochemicals 50 Operating companies – Fertilizers €7.6 bn Backlog (September 30, 2017) €1.4 bn Market Cap (Jan. 16, 2018) • Flex
Slide 5: Key Milestones
KEY MILESTONES Our Evolution 1899 FIAT GROUP 1937 1971 1972 Listing on the Kinetic Technology Int. - KTI Dutch State Mines – DSM Incorporation of Italian Stock research centre for services More than 40 years of FIAT ENGINEERING Exchange work to coal mines experience in process engineering 2001 1947
Slide 6: Group Structure
GROUP STRUCTURE MAIRE TECNIMONT GROUP OVERVIEW – JANUARY 2018 Large-scale • Refining • Fertilizers • Infrastructure & contracting in: • Hydrogen and Technology Civil Engineering • Oil & Gas Syngas Production • Renewable Energy • Polyolefins • Sulphur Recovery • Fertilizers Business Technology, Engin
Slide 7: Technology, Engineering & Construction
TECHNOLOGY, ENGINEERING & CONSTRUCTION Maire Tecnimont Group’s Presence Across the EPC Value Chain TECHNOLOGY-DRIVEN EXECUTION- DRIVEN PROJECT LIFE-CYCLE LICENSING ENGINEERING PROCUREMENT CONSTRUCTION DEVELOPMENT SUPPORT • Startup FERTILIZERS • Operation Advice OIL & GAS MAIRE TECNIMONT GROUP OVERVI
Slide 8: Infrastructure & Civil Engineering
INFRASTRUCTURE & CIVIL ENGINEERING Long-Lasting Competencies in Transportation and Civil Engineering DESIGN AND CONSTRUCTION OF Underground projects (including the first OVER 30% OF HIGH SPEED & HIGH CAPACITY RAILWAYS driverless metro system in Italy), railways, CURRENTLY OPERATED IN ITALY tunnels,
Slide 9: Extensive International Presence
EXTENSIVE INTERNATIONAL PRESENCE ROME SITTARD MILAN BRAUNSCHWEIG MUMBAI ITALY 2,281 REST OF EUROPE 332 MAIRE TECNIMONT GROUP OVERVIEW – JANUARY 2018 ASIA 2,690 Headquarters REST OF THE Main offices and engineering 75 centres WORLD Subsidiaries, branches and TOTAL representative offices 5,378* EMPLOY
Slide 10: Maire Tecnimont Group's Shareholders
MAIRE TECNIMONT GROUP’S SHAREHOLDERS Major Shareholders % of ordinary shares % of voting rights* GLV Capital S.p.A. 54.877% 70.865% Arab Development Establishment 5.091% 3.287% (ARDECO) MAIRE TECNIMONT GROUP OVERVIEW – JANUARY 2018 Schroders PLC 4.984% 3.218% Other institutional and retail 35.048% 2
Slide 11: Summary
SUMMARY 1. Group Overview 2. Strategy and Competitive Positioning 3. Operations and Commercial Activity 4. Financial Data 5. Conclusions
Slide 12: Maire Tecnimont's Strategic Priorities
MAIRE TECNIMONT’S STRATEGIC PRIORITIES Enhance and Develop Technology Driven Business Align Organization and 1 Strengthen EPC in the Pursue Group Synergies Core Business 5 2 Strategic Priorities MAIRE TECNIMONT GROUP OVERVIEW – JANUARY 2018 4 3 Expand Geographic Develop Engineering Services Footprin
Slide 13: Strategy Implementation
STRATEGY IMPLEMENTATION TECHNOLOGY-DRIVEN EXECUTION- DRIVEN PROJECT LIFE-CYCLE LICENSING ENGINEERING PROCUREMENT CONSTRUCTION DEVELOPMENT SUPPORT PROJECT LIFE-CYCLE DEVELOPMENT Detailed SUPPORT Direct Engineering PRODUCTS License Basic Feed Services EP EPC • Pre-empt competitive • Improve client MAI
Slide 14: Global & Technological Leadership
GLOBAL & TECHNOLOGICAL LEADERSHIP PETROCHEMICALS FERTILIZERS OIL & GAS Well rooted technology orientation: market leader (#1) for installed capacity 54% Market share in WELL RECOGNIZED LEADERSHIP in Licensing hydrogen licensing urea plants technology and in licensing 30% technology (#1 worldwide)* S
Slide 15: Our Operations Are Driven by Positive Business Trends
OUR OPERATIONS ARE DRIVEN BY POSITIVE BUSINESS TRENDS PETCHEM • Gas monetization: Cheap feedstock supports owner’s investment attractiveness • Strong demand for plastics-based products FERTILIZERS • Gas monetization • Demography and agricultural modernization driving long term demand for nitrogen-ba
Slide 16: Differentiating Factors vs. Our Competitors
DIFFERENTIATING FACTORS VS. OUR COMPETITORS • Our focus is Downstream and Gas Transformation, not Upstream • Flexible business model • Asset light: no idleness • Leverage on our strong technological IPs MAIRE TECNIMONT GROUP OVERVIEW – JANUARY 2018 • Client diversification (NOCs vs. IOCs) • Global a
Slide 17: Maire Tecnimont Has Been Outperforming the Sector
MAIRE TECNIMONT HAS BEEN OUTPERFORMING THE SECTOR Maire Tecnimont’s Relative Performance, 6/20/14 – 1/15/18 Maire Tecnimont BEUOILS Index WTI Future 220 170 120 MAIRE TECNIMONT GROUP OVERVIEW – JANUARY 2018 70 20 Jun-14 Sep-14 Dec-14 Mar-15 Jun-15 Sep-15 Dec-15 Mar-16 Jun-16 Sep-16 Dec-16 Mar-17 Jun
Slide 18: Group Responsiveness to Market Discontinuity
GROUP RESPONSIVENESS TO MARKET DISCONTINUITY •Dedicated revamping engineering initiatives •New way of originating •Siluria Technologies business through early •H2S cracking involvement in REVAMPING •Technologies adjacent to urea investment initiatives •New Clean Coal Technologies PROJECT TECHNOLOGY
Slide 19: Summary
SUMMARY 1. Group Overview 2. Strategy and Competitive Positioning 3. Operations and Commercial Activity 4. Financial Data 5. Conclusions
Slide 20: Main Petrochemical Projects
MAIN PETROCHEMICAL PROJECTS HDPE PLANT, SUMGAYIT (AZERBAIJAN) LLDPE-HDPE-PP PLANTS, SOHAR (OMAN) PP PLANT, SUMGAYIT (AZERBAIJAN) CLIENT: SOCAR Polymer CLIENT: ORPIC CLIENT: SOCAR Polymer CONTRACT TYPE: EPC - PP, HDPE €350m CONTRACT TYPE: EPC US$895m CONTRACT TYPE: EPC - PP, HDPE €180m PDH PLANT, TOB
Slide 21: Main Oil & Gas Projects
MAIN OIL & GAS PROJECTS OIL & GAS TREATMENT PLANT, LUBIATOW DELAYED COKER COMPLEX PROJECT AND HYDROWAX (POLAND) VACUUM DISTILLATION, GDANSK (POLAND) CLIENT: Polish Oil & Gas Company CLIENT: Lotos Asfalt SP. ZO.O CONTRACT TYPE: EP €91m CONTRACT TYPE: EPC €304m REFINERY OFF GAS(ROG) PROJECT, ANTWERP (
Slide 22: Main Fertilizers Projects
MAIN FERTILIZERS PROJECTS AMMONIA PLANT, KINGISEPP (RUSSIAN FEDERATION) YARA, SLUISKIL (THE NETHERLANDS) CLIENT: EuroChem Mineral and Chemical Company CLIENT: Yara International ASA CONTRACT TYPE: EPC €660m CONTRACT TYPE: EPC €125m AMMONIA/UREA PLANT NEVINNOMYSSK IOWA FERTILIZER COMPANY, WEVER, IOWA
Slide 23: Flagship Projects
FLAGSHIP PROJECTS Polyolefins Gas Treatment BOROUGE 3, ABU DHABI, UAE HABSHAN 5, ABU DHABI, UAE MAIRE TECNIMONT GROUP OVERVIEW – JANUARY 2018 Refinery Fertilizers ROG PROJECT, ANTWERP, BELGIUM IOWA FERTILIZER COMPANY, IOWA, USA 23
Slide 24: 2017 Flagship Project: The Amurski Gas Processing Plant
2017 FLAGSHIP PROJECT: THE AMURSKI GAS PROCESSING PLANT Project Overview • Country: Russia • Ultimate Client: Gazprom Group through JSC NIPIgaspererabotka • Overall Value: €3.9bn • Scope of Work: EPC of “Package number 3” (Utilities, Infrastructure and Offsites facilities) of the Amurski Gas Process
Slide 25: Order Intake
ORDER INTAKE € billion Average = 3.0 4.0 MAIRE TECNIMONT GROUP OVERVIEW – JANUARY 2018 3.2 MAIRE TECNIMONT – 9M 2017 FINANCIAL RESULTS 2.8 1.8 FY 2014 FY 2015 FY 2016 9M 2017 Strong Order Intake Driven by Tech Leadership and Favorable Industry Dynamics 25
Slide 26: Backlog
BACKLOG Backlog by Business Unit (€m, 31/3-30/9/17) Backlog by Geography (Sep. 2017) 8,601 423 7,633 Africa 2% Others 376 5,827 9% Asia 434 8% 8,178 7,257 21% 60% MAIRE TECNIMONT GROUP OVERVIEW – JANUARY 2018 5,393 Middle East Europe 31/3/17 30/6/17 30/9/17 TE&C & Infrastructure Solid and Diversifie
Slide 27: Maire Tecnimont's Backlog vs. WTI Oil Price
MAIRE TECNIMONT’S BACKLOG VS. WTI OIL PRICE* Backlog WTI 250 200 150 100 MAIRE TECNIMONT GROUP OVERVIEW – JANUARY 2018 50 0 6/30/2014 12/31/2014 6/30/2015 12/31/2015 6/30/2016 12/31/2016 9/30/2017 6/30/2017 * Relative scale. 30 June 2014 = 100 27
Slide 28: Backlog Analysis – TE&C Business Unit
BACKLOG ANALYSIS – TE&C BUSINESS UNIT Backlog by Type (€m, 30/6-30/9/17) Book to Bill Ratio* (31/3-30/9/17) 8,178 7,257 7,547 2.9 6,693 2.3 MAIRE TECNIMONT GROUP OVERVIEW – JANUARY 2018 2.1 85 546 467 97 30/6/17 30/9/17 31/3/17 30/6/17 30/9/17 E EP EPC Good mix between E, EP, and EPC Excellent cover
Slide 29: Outlook on Commercial Activity (TE&C)
OUTLOOK ON COMMERCIAL ACTIVITY (TE&C) Commercial Pipeline (€bn, Mar ’17-Sep ‘17) 37.2 39.2 35.2 6.5 9.5 9.0 7.2 5.8 6.2 23.5 23.9 MAIRE TECNIMONT GROUP OVERVIEW – JANUARY 2018 20.0 Mar '17 Jun'17 Sep'17 Prospect, Prequalification & Pre-Tendering Tendering Tendered Our Pipeline is the Highest Ever 29
Slide 30: Commercial Activity's Geographical Breakdown (TE&C)
COMMERCIAL ACTIVITY’S GEOGRAPHICAL BREAKDOWN (TE&C)* C.I.S. FERTILIZER €8.7bn POLYOLEFIN GAS TREATMENT Europe REFINERY POLYOLEFIN €1.6bn REFINERY North and Central Asia America €2.0bn FERTILIZER POLYOLEFIN POLYOLEFIN GAS TREATMENT €7.1bn Middle East MAIRE TECNIMONT GROUP OVERVIEW – JANUARY 2018 FERT
Slide 31: Summary
SUMMARY 1. Group Overview 2. Strategy and Competitive Positioning 3. Operations and Commercial Activity 4. Financial Data 5. Conclusions
Slide 32: Consolidated Income Statement & Balance Sheet
CONSOLIDATED INCOME STATEMENT & BALANCE SHEET INCOME STATEMENT €m 2014 2015 2016 9M 2017 • Revenues’ • Growth in revenues driven Revenues 1,583.2 1,669.6 2,435.4 2,588.4 by execution of record- EBITDA 126.9 130.8 160.0 143.3 level backlog EBITDA % 8.0% 7.8% 6.6% 5.5% • Steady growth in EBITDA EBIT 1
Slide 33: Cash Flow Bridge
CASH FLOW BRIDGE Cash Flow Bridge, 2017 (€m) 9.8 15.1 35.2 89.3 16.6 MAIRE TECNIMONT GROUP OVERVIEW – JANUARY 2018 42.8 Net Debt Operating Cash Net Financial Capex Dividends and Net Cash Dec 2016 Flows and Forex Income Treasury Shares Sep 2017 33
Slide 34: Spread of Bank Debt Refinancings, 2013-2017
SPREAD OF BANK DEBT REFINANCINGS, 2013-2017 Spread (bps) 600 500 400 300 540 200 395 MAIRE TECNIMONT GROUP OVERVIEW – JANUARY 2018 250 100 195 0 May 2013 Apr 2015 Dec 2015 Apr-17 Refinancing Date May 2013 Apr 2015 Dec 2015 Apr 2017 Amount (€m) €350 €320 €350 €350 Final Maturity 12/2017 2018-2019 12/
Slide 35: Summary
SUMMARY 1. Group Overview 2. Strategy and Competitive Positioning 3. Operations and Commercial Activity 4. Financial Data 5. Conclusions
Slide 36: Conclusions
CONCLUSIONS • Leading worldwide engineering contractor focusing on Oil&Gas, Petrochemicals and Fertilizers − Providing Technological Solutions throughout the entire EPC Value Chain • Entirely focused on Gas Treatment, Downstream and Onshore MAIRE TECNIMONT GROUP OVERVIEW – JANUARY 2018 • Flexible bu
Slide 37: Headquarters and Investor Relations
Maire Tecnimont Group’s Headquarters Via Gaetano De Castillia, 6A 20124 Milan info@mairetecnimont.it Investor Relations T +39 02 6313-7823 F +39 02 6313-733702 6313-7823 MAIRE TECNIMONT GROUP OVERVIEW – JANUARY 2018 Investor-relations@mairetecnimont.It www.mairetecnimont.com
Maire Tecnimont — Investor Presentation (January 2018) on 6ix