Gaztransport & Technigaz Sa · EURONEXT:GTT
Gaztransport & Technigaz Sa — FY2021 Earnings Presentation
58 slides from Gaztransport & Technigaz Sa's earnings presentation, Feb 18, 2022
Slide 1: Investor Presentation 2021 Full Year Results
Technology for a sustainable world INVESTOR 2021 FULL YEAR RESULTS PRESENTATION 18 FEBRUARY 2022
Slide 2: Disclaimer
Disclaimer This presentation does not contain or constitute an offer of securities for sale or an invitation or inducement to invest in securities in France, the United States or any other jurisdiction. It includes only summary information and does not purport to be comprehensive. No representation,
Slide 3: Agenda
Agenda 1 2 3 4 5 COMPANY FOCUS ON STRATEGY FINANCIALS OUTLOOK OVERVIEW INNOVATION & ACTIVITY 2021 Full Year Results Presentation – 18/02/2022 3
Slide 4: Company Overview
1 Company Overview 2021 Full Year Results Presentation – 18/02/2022 4
Slide 5: GTT Group: Technology for a sustainable world
GTT Group: Technology for a sustainable world Our Conviction Our Mission Our Key Assets • Technology is the most • Conceive cutting-edge • Human capital: unique efficient enabler of technological solutions combination of skills the energy transition to help building a sustainable • Intellectual capi
Slide 6: Building a sustainable world: core business journey
Building a sustainable world Core business, a journey that started long time ago for GTT LNG containment systems BOR improvement management 2022 LNGC equipped with latest technology emits -47% less CO2 emissions per ton transported compared to 2011 LNGC -47% CO2 emissions(1) Thanks to these continuo
Slide 7: Savings enabled by improvement in GTT technologies since 2010
Building a sustainable world Core business, a journey that started long time ago for GTT IMPROVEMENT IN GTT’S TECHNOLOGIES HAS ENABLED SIGNIFICANT SAVINGS(1) SINCE 2010 LNG >5 million tons/y(2) Consumption avoided Corpus Christi Train 3 project >13 million tons/y Eq. 4% of annual CO2 emissions CO2
Slide 8: Building a sustainable world: new business areas
Building a sustainable world New business areas, a journey that accelerated in 2021 2017 2018 2019 2020 2021 Reduction of 9 2 8 No 27 > 20% CO2 emissions LNG as fuel orders orders orders order orders vs HFO(1) ~15,000 cars Smart Shipping 397 457 1,103 1,261 Vessel performance / Digitalisation Vessel
Slide 9: 2021 Key figures
2021 Key figures Employees New patents A RECORD YEAR FOR ORDERS 535 61 68 Core business LNG as fuel order Book order book 161 units / €795 M 32 units 27 Revenues EBITDA €315 M €172 M 6 2 Dividend LNGC VLEC Onshore storage LNG as Fuel €3.10 Payout ratio 86% 2021 Full Year Results Presentation – 18/02
Slide 10: 2021 Key highlights
2021 Key highlights Core Business: strong commercial performance Innovation: intense activity and development of new technologies • LNG market dynamics remain very positive • Replacement market is a new positive driver for GTT • Development of innovative new technologies in a wide range of areas • F
Slide 11: ESG – Environment 1/2: Climate ambition
ESG – Environment 1/2 Climate ambition GTT’s operational scope GTT’s value chain scope GTT renews its commitment to significantly GTT will continue to reduce upstream and reduce its operational emissions (Scope 1 & 2) downstream vessel emissions, working closely by 2025 with its customers and mariti
Slide 12: ESG – Environment 2/2: EU taxonomy
ESG – Environment 2/2 EU taxonomy • The Group welcomes the decision by the European Commission, in February 2022, to consider natural gas as a transition energy TAXONOMY REGULATION PRINCIPLES • This decision, which should be applicable in 2023, confirms GTT’s vision of the role of gas as • The Europ
Slide 13: Focus on innovation
2 Focus on innovation 2021 Full Year Results Presentation – 18/02/2022 13
Slide 14: R&D and innovation, at the heart of GTT's strategy
R&D and innovation, at the heart of GTT’s strategy R&D PROPERTY INTELLECTUAL INNOVATION ~10% of revenues over 1st place in ranking Participation to several the last 10 years of mid-size companies innovation programs on average patent applicants at Internal GTT Group the INPI(1) Innovation Challenge
Slide 15: R&D on core technologies enables better energy efficiency
R&D on core technologies enables better energy efficiency BOIL-OFF RATE OF GTT TECHNOLOGIES(1) 0.15% 0.15% Boil-off rate (%/d) 0.115% 0.10% 0.085% 0.085% 0.07% 0.07% Mark III Mark III Mark III NO96 NO96GW NO96 NO96 GTT Flex Flex+ L03+ Super+ Next1 Enabling better energy efficiency by halving boil-of
Slide 16: 2021 – Some key innovations
2021 – Some key innovations MEMBRANE MULTIGAS BUNKER SHIP DIGITAL SOLUTIONS GAS HANDLING Boil-Off Ammonia Ballast Maintenance Reliquefies the excess reduction readiness water free optimisation boil-off gas for LNG fuelled vessels Courtesy of Excelerate Energy General approvals AiP Mark III AiPs for
Slide 17: Innovation roadmap 1/3
Innovation roadmap 1/3 CORE BUSINESS LNG AS FUEL Further reduce Offer the best LNGC CO2 footprint technologies for alternative fuels Enabling better energy Adaptation of core efficiency by reducing technologies to enable vessel's construction & decarbonisation, notably operating costs with LNG as fu
Slide 18: Innovation roadmap 2/3: liquid H2 transport with Shell
Innovation roadmap 2/3 Towards zero-carbon: a safe and scalable deployment of liquid H2 transport COOPERATION AGREEMENT WITH SHELL Technological challenge • Transport very large volumes of hydrogen in liquefied form, at -253°C What is at stake? • Establish a reliable, efficient, and competitive hydr
Slide 19: Innovation roadmap 3/3: Recycool gas handling
Innovation roadmap 3/3 Managing excess boil-off gas of LNG-fuelled vessels in an eco-friendly way GTT’S FIRST GAS HANDLING TECHNOLOGY Technology • New system Recycool™, designed by GTT • Reliquefies the excess boil-off gas by recovering the cold energy from the LNG vaporised for fuelling the engine
Slide 20: Strategy & activity
3 Strategy & activity 2021 Full Year Results Presentation – 18/02/2022 20
Slide 21: Technology for a Sustainable World
Technology for a Sustainable World 6. Transformation LH2 transportation Towards a in partnership with Shell zero-carbon future Hydrogen Electrolysers Gas handling technologies Recycool™ 2. Improvement Evolution of GTT systems: NO96 Super+ 1. Intensification Mark III Flex+ 5. Enlargement Smart shippi
Slide 22: Strategy & activity: LNG carriers & other core applications
Strategy & activity LNG carriers & other core applications 2021 Full Year Results Presentation – 18/02/2022 22
Slide 23: Gas is a growing energy at the core of the energy transition
Gas is a growing energy at the core of the energy transition GAS SHARE IN THE ENERGY MIX (CONSUMPTION IN EXAJOULES) Renewables Renewables 13% 24% Other Oil & Coal 4% Other 46% +138 EJ 4% 695 557 Oil & Coal Gas 58% Gas 25% 26% 93 45 695 5 557 (5) 2020 Oil & Coal Other Gas Renewables 2040 (incl. Bio &
Slide 24: LNG market – 2021 review
LNG market – 2021 review GAS TRADING MARKET SHARE EVOLUTION SPOT & LONG-TERM LNG PRICES 65% 70 60% 60 50 Spot LNG Asia 55% LNG $/Mmbtu 40 Spot LNG Europe 50% 30 Long term Asian Pipeline LNG (oil index) 45% 20 Long term Asian LNG (US LNG) 40% 10 35% 0 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Slide 25: LNG demand estimated to double by 2040
LNG demand estimated to double by 2040 GLOBAL LNG DEMAND FORECASTS (in Mtpa) Mtpa 850 Wood Mackenzie 800 BP Business as Usual 750 700 BP Rapid Transition By 2040: LNG demand 650 Total Energies growing in all scenarii Shell High Case 600 Shell Low Case Beyond 2040: existing 550 Wood Mackenzie 2˚C gro
Slide 26: Asia to remain the key growth driver for LNG, mainly China
Asia to remain the key growth driver for LNG, mainly driven by China LNG DEMAND OF TOP 5 IMPORTERS CHINA ENERGY MIX (2020) Renewables; 5% 90 Oil; 20% Hydro; 8% China 80 Nuclear; 2% Japan 70 60 Gas; 8% 50 Korea 40 30 India 20 Taiwan 10 0 2015 2016 2017 2018 2019 2020 2021 Coal; 57% Source: WoodMacken
Slide 27: LNG supply & demand: new capacity required
LNG supply & demand: new capacity required LNG SUPPLY & DEMAND BALANCE FORECAST Mtpa 800 700 600 ~280 Mtpa 388 Mtpa More FIDs are required 500 to fill the supply / demand 400 gap from 2030 300 200 100 0 Supply - Operational Supply - Under Construction LNG Demand Source: WoodMackenzie Q4 2021 2021 Fu
Slide 28: 91 additional LNGCs required for liquefaction projects under construction
91 additional LNGCs required for liquefaction projects under construction LNGCs SUPPLY & DEMAND BALANCE OF UNDER CONSTRUCTION LIQUEFACTION PLANTS ON 31/12/2021 Forecasted Contracted Project Location LNGCs requirement Start-Up capacity (Mtpa) Market still requires 91 additional Sabine Pass T6(1) US E
Slide 29: Liquefaction FID tracker: good in 2021, promising for 2022-23
Liquefaction FID tracker: good in 2021, promising for 2022-23 VOLUME PROJECT COUNTRY OPERATOR (Mtpa) 51 Mtpa sanctioned in 2021, FID taken Northfield expansion Qatar QatarEnergies 33 the 2nd best year ever in 2021: Baltic LNG Russia Gazprom 13 • Catching-up after a quiet 2020 51mtpa Pluto T2 Austral
Slide 30: LNG shipping market: tight and volatile in 2021
LNG shipping market: tight and volatile in 2021 SPOT LNGCS CHARTER RATES 1 YEAR CHARTER RATES 31.2020 51.2020 18.2021 38.2021 4.2022 31.2020 51.2020 18.2021 38.2021 4.2022 31/2020 31/2020 Spot charter rates have exceeded $200k/d in 1 year charter rates under great pressure 2021, as many vessels were
Slide 31: GTT well positioned to capture orders from vessel renewal
GTT well positioned to capture orders from vessel renewal LNGC FLEET BY PROPULSION TYPE LNGC ENDING CHARTERING CONTRACTS 35 ST; 246; 41% MEGI/XDF; 147; 24% 30 25 6 1 4 4 # LNGCs 20 9 6 4 15 1 10 19 15 15 14 5 0 2022 2023 2024 2025 Diesel; 50; 8% DFDE; 164; 27% ST DFDE MEGI/XDF Steam Turbine LNGCs re
Slide 32: Growing long-term estimates for GTT orders
Growing long-term estimates for GTT orders ESTIMATED GTT CUMULATED ORDERS OVER 2022-2031 LNGC Between 330 & 360 units VLEC Between 25 & 40 units FSRU Up to 10 units(1) FLNG 5 units Onshore & GBS tanks Between 25 & 30 units (1) Exclude conversion of existing LNG carriers into FSRU 2021 Full Year Resu
Slide 33: Strategy & activity: LNG as fuel
Strategy & activity LNG as fuel 2021 Full Year Results Presentation – 18/02/2022 33
Slide 34: LNG as fuel: environmental drivers are strong incentives
LNG as fuel: environmental drivers are strong incentives ENERGY EFFICIENCY DESIGN INDEX (EEDI) TARGETS SET BY THE IMO By 2050, IMO targets (non binding): 23,000 boxes containership – (i) shipping companies to have EEDI (g.CO2/t.mile) reduced CO2 emissions by 70% versus 2008 levels – (ii) global flee
Slide 35: LNG as fuel: the best transition energy for shipping
LNG as fuel: the best transition energy for the shipping industry Alternative fuels Traditional LNG Methanol Ammonia MDO(4) Current CO2 emissions (gCO2/kWh WtW(1)) 530 720 790 690 Decarbonisation potential (in next 10-15 years) With bio and e-fuels e-ammonia only Bio diesel only Price(2) ($/MWh) ~38
Slide 36: GTT has become a reference solution for containerships
GTT has become a reference solution for containerships LNG FUELLED 10K+ TEU CONTAINERSHIP ORDERS 45 200 40 180 Record year for GTT LNG fueled 160 with about half of the large 10k+ TEU containership orders 35 containerships orders 10k+ TEU LNG fuelled orders 140 30 25 120 GTT becoming 100 the leading
Slide 37: GTT targeting a wide range of markets for LNG and membrane
GTT is targeting a wide range of markets where LNG and membrane are the right fit Market potential Rationale for LNG fuel Rationale for GTT membrane technology Market over the next Segments 10 years Reputation / High Expensive No room Space charterer push on Other (source: Clarksons) commercial inte
Slide 38: Smart shipping: optimising energy-efficiency with digital solutions
Strategy & activity Smart shipping: Optimising energy- efficiency with digital solutions 2021 Full Year Results Presentation – 18/02/2022 38
Slide 39: Digital Technologies for optimised energy efficiency and safety
Digital Technologies for optimised energy efficiency and safety Use of state-of-the-art digital technologies to: • Reduce operational cost • Reduce emissions • Improve safety Market drivers • Cost reduction • Environmental and safety regulation • Need for transparency between stakeholders Emerging m
Slide 40: Digital Solutions for sustainable shipping
Digital Solutions for sustainable shipping GTT DIGITAL PLATFORM 2021 achievements • AiP(1) from BV for the tank predictive maintenance solution (Sloshing Virtual Sensor) ► Turnkey solutions • MPA(2) awarded Ascenz a funding for vessel performance under MINT(3) Fund to develop & safety management the
Slide 41: Digital Solutions to monitor the fleet
Digital Solutions to monitor the fleet Focus on Carbon Intensity Index (CII) monitoring is a critical topic for the maritime industry and a key driver for smart shipping GTT new digital features provide a clear overview of the vessel scores and targets, enabling our customers to monitor their fleet
Slide 42: Strategy & activity: Elogen
Strategy & activity ELOGEN 2021 Full Year Results Presentation – 18/02/2022 42
Slide 43: Elogen, a key French player in green hydrogen
Elogen, a key French player Key figures in green hydrogen A successful transformation since the acquisition by GTT 2021 Order Intake 2021 Revenues(2) • Team reinforcement with 25 new hires • Commercial wins on innovative projects (HyPSTER project with Storengy, SmartQuart project with E.ON) • Nearly
Slide 44: Well-positioned on a very dynamic electrolyser market
Well-positioned on a very dynamic electrolyser market ELECTROLYSER PROJECTS BY CAPACITY RANGE ELECTROLYSER FUTURE PROJECTS IN THE WORLD AND MATURITY 100% 140 % in number of projects 100- 120 75% ≥1000MW 1-10MW 1000MW 100 80 GW 50% ≥100- 1000MW 60 10-50MW 40 25% <1MW 20 0% 0 1 - Operational or Under
Slide 45: PEM technology offers high growth potential
PEM technology offers high growth potential PEM IS THE PREFERRED TECHNOLOGY PEM technology is the most adapted solution FOR NEW PROJECTS* to produce green H2 Solide Oxyde (SOEC) <1% • Most adapted technology to the intermittence of renewable energy – Flexible and responsive technology adapted to “st
Slide 46: Cost of hydrogen: improving electrolyser efficiency to reduce OPEX
Cost of hydrogen: Improving electrolysers efficiency is a key driver to reduce OPEX BREAKDOWN OF HYDROGEN COST (€/KG) – BASE 100 Maintenance Maintenance Water Water OPEX c.73% Power OPEX Power c.92% Key assumptions Renewables Grid connected connected (renewable energy) Electrolyser Capacity 1 MW Dis
Slide 47: Elogen growth to rely on its three strategic pillars
Elogen growth to rely on its three strategic pillars R&D PRODUCTION MASSIFICATION • Increase competitiveness through cost • Elogen is currently the only player producing reduction and efficiency improvement in France (Les Ulis, Greater Paris area) (kWh/H2kg) and create entry barriers Currently • Up
Slide 48: Financials
4 FINANCIALS 2021 Full Year Results Presentation – 18/02/2022 48
Slide 49: 2021: An order book that reflects the commercial dynamics
2021: An order book that reflects the commercial dynamics Order book FY 2020 Dec 2021 new orders Dec 2021 deliveries Order book FY 2021 LNGC 122 +68 (53) 137 VLEC 9 +2 (5) 6 FSRU 4 - (3) 0* FSU 2 - - 2 FLNG 1 - - 1 Onshore Storage 6 +6 - 12 GBS 3 - - 3 76 (61) GTT order book movements ** (core busin
Slide 50: FY 2021: An all time high order book
FY 2021: An all time high order book (core business(1)) ORDER BOOK IN UNITS ORDER BOOK BY YEAR OF DELIVERY (UNITS PER YEAR) In units In units 57 Order book at Dec.31, 2019 161 45 Order book at Dec.31, 2020 147 42 Order book at Dec.31, 2021 38 133 28 21 17 12 3 3 6 1 As at Dec. 31, As at Dec.31, As a
Slide 51: FY 2021: Robust financial performance
FY 2021: Robust financial performance SUMMARY CONSOLIDATED ACCOUNTS KEY HIGHLIGHTS Revenues (-21% vs 2020 and +9% vs 2019) in €M FY 2020 FY 2021 Change €315M • Revenues from newbuilds (royalties): €292.4 million (-23% vs 2020 peak) Total Revenues 396.4 314.7 -20.6% • Revenues from Elogen: €5.6 milli
Slide 52: FY 2021: Stable cost base in spite of recent acquisitions impact
FY 2021: Stable cost base in spite of recent acquisitions impact GTT CONSOLIDATED OPERATIONAL COSTS KEY HIGHLIGHTS in €M FY 2020 FY 2021 Change (%) Goods purchased (+46% vs 2020) Goods purchased (8.7) (12.7) +46% €13M • Due to Elogen contract % sales -2% -4% Subcontracted Test and Studies (38.2) (27
Slide 53: 2021 Dividend
2021 Dividend 2018 2019 2020 2021 Consolidated net profit (IFRS) €142.8 M €143.4 M €198.9 M €134.1 M Net earnings per share(1) €3.85 €3.87 €5.36 €3.62 84% 86% Pay Out(2) 81% 80% 4.29 Dividend 3.25 3.12 1.79 3.10 Amount 1.75 1.79 1.75 Balance dividend of €1.75(3) • Record date: June 6, 2022 2.50 • Pa
Slide 54: Outlook
Changer photo 5 Outlook 2021 Full Year Results Presentation – 18/02/2022 54
Slide 55: 2022 Outlook
2022 Outlook Revenue 2022 consolidated revenue estimated in a range of €290M to €320M EBITDA 2022 consolidated EBITDA estimated in a range of €140M to €170M Dividend 2022 dividend: amount at least equivalent to that proposed for fiscal Payment(1) year 2021 Mid-term Revenue and results expected, from
Slide 56: Q&A
Q&A 56
Slide 57: Glossary
Glossary The following abbreviations have been used throughout this document BOR Boil Off Rate FSU Floating Storage Unit MEGI M-type, Electronically Controlled Gas Injection APAC Asia-Pacific GBS Gravity Based Structure Mtpa Million tons per annum CAGR Compound Annual Growth Rate GHG Greenhouse Gase
Slide 58: Slide 58
GTT (Gaztransport & Technigaz) — FY2021 Earnings Presentation on 6ix