Tecnicas Reunidas SA · BME:TRE
Tecnicas Reunidas SA — FY2007 Earnings Presentation
25 slides from Tecnicas Reunidas SA's earnings presentation, Feb 29, 2008
Slide 1: Year 2007 Results Presentation
TECNICAS REUNIDAS Juan Lladó CEO Year 2007 Results Presentation 29th of February 2008
Slide 2: Index
INDEX TECNICAS REUNIDAS ¾ BACKLOG ¾ MAIN RECENT AWARDS ¾ SPOTLIGHT ON HYDROCRAKING EXPERIENCE ¾ HUMAN RESOURCES ¾ 2007 FINANCIAL RESULTS ¾ YEAR END BALANCE 1
Slide 3: Delivery: Execution of Current Backlog
DELIVERY: Execution of Current Backlog Strong Backlog Awards (1) Backlog (1) €m €m 4,000 3,582 5,000 4,713 4,500 3,500 4,000 3,000 2,621 3,500 3,040 2,500 3,000 2,000 1,485 2,500 1,712 2,000 1,500 713 1,500 983 1,000 1,000 500 500 0 0 2004 2005 2006 2007 2004 2005 2006 2007 (1) Does not include data
Slide 4: Year 2007 Backlog by project
Year 2007 Backlog by project Project Country Client End Khabarovsk Russia OC Alliance 2011 Sines* Portugal Galp 2011 Borouge Project* United Arabs Emirates ADNOC/ Borealis 2010 Hydrocraker -Cartagena* Spain Repsol 2010 Phenolics Plant- Kayan* Saudi Arabia Sabic 2009 Refining Units Chile Enap 2009 Du
Slide 5: Year 2007 Backlog by Project
Year 2007 Backlog by Project Project Country Client End Mejillones Chile Codelco/Suez 2009 Saih Rawl (compression) Oman PDO 2009 Medgaz Algeria Medgaz 2009 RKF Algeria Cepsa/Sonatrach 2008 Upstream TFT Algeria Total/Repsol/Sonatrach 2008 and Gas Hawiyah Saudi Arabia Saudi Aramco 2008 Ju'aymah Saudi
Slide 6: Year 2007 Backlog: €4,713 M
HEALTHY AND DIVERSIFIED BACKLOG Year 2007 Backlog: € 4,713 M OBE REST ¾ More than 73% of backlog awarded in 2007 ¾ Approx. 65% awarded on OBE basis 5
Slide 7: Diversification of the backlog in 2007
HEALTHY AND DIVERSIFIED BACKLOG Saudi Arabia Russia 18% UAE 12% 17% Oman Portugal 5% 13% Latam Spain ROW 7% 23% 6% ¾ Diversification of the backlog in 2007 by: country client 6
Slide 8: Tecnicas Reunidas Index
TECNICAS REUNIDAS ¾ BACKLOG ¾ MAIN RECENT AWARDS ¾ SPOTLIGHT ON HYDROCRAKING EXPERIENCE ¾ HUMAN RESOURCES ¾ 2007 FINANCIAL RESULTS ¾ YEAR END BALANCE 7
Slide 9: Cartagena's Refinery Expansion (Spain)
MAIN RECENT AWARDS Cartagena’s Refinery Expansion (Spain) Highlights ¾ Contract converted into a Lump Sum Turnkey (LTSK) includes two new hydrogen units of 90 kt/year and 50 kt/year. The conversion took place in January 2008. ¾ The total contract amount for TR is above € 1,000 million. ¾ A 5,500 kt/
Slide 10: Khabarovsk Refinery
MAIN RECENT AWARDS Khabarovsk Refinery Highlights ¾ New project that will increase the production of low sulphur diesel and kerosene up to 1.5 million tonnes per year: New Hydrocraking unit, Hydrotreating, Hydrogen production, Amine Regeneration, Sour Water Stripping and Sulphur Recovery together
Slide 11: LNG Regasification Terminal in Mejillones (Chile)
MAIN RECENT AWARDS LNG Regasification Terminal in Mejillones (Chile) BOLIVIA PARAGUAY Mejillones CHILE Highlights ¾ New regasification terminal with capacity of 235.000 Nm3/h .The plant will provide natural gas for electric generation to be used mostly in the mining sector. ¾ In order to reduce exec
Slide 12: Tecnicas Reunidas Index
TECNICAS REUNIDAS ¾ BACKLOG ¾ MAIN RECENT AWARDS ¾ SPOTLIGHT ON HYDROCRAKING EXPERIENCE ¾ HUMAN RESOURCES ¾ 2007 FINANCIAL RESULTS ¾ YEAR END BALANCE 11
Slide 13: Refining Leadership
REFINING LEADERSHIP 1963: 1st Grassroots Refinery Project for Repsol 300 units Crude distillation, Hydrodesulphurizers & Basic Refining 188 units Hydrotreaters, CCR, Sulphur recovery Vacuum distillation, FCC, Conversion Units 64 units Hydrocracking, Delayed coker Isomerization, Alkylation, Dimerizat
Slide 14: Refining: Hydrocraking Current Projects
REFINING: Hydrocraking Current Projects RUSSIA Cartagena PORTUGAL SPAIN REPSOL Khabarovsk Sines OC ALLIANCE GALP Huelva CEPSA CHINA Guanxi PETROCHINA 13
Slide 15: Tecnicas Reunidas Index
TECNICAS REUNIDAS ¾ BACKLOG ¾ MAIN RECENT AWARDS ¾ SPOTLIGHT ON HYDROCRAKING EXPERIENCE ¾ HUMAN RESOURCES ¾ 2007 FINANCIAL RESULTS ¾ YEAR END BALANCE 14
Slide 16: Human Resources
HUMAN RESOURCES 1 Headquarters Spain 2 TR abroad Employees Weight Employees 5,000 900 751 4,500 3,661 800 650 4,000 3,004 Non- 700 3,500 Technical 2,488 455 3,000 19% 600 2,200 2,500 15% 500 2,000 8% 400 14% 147 1,500 Technical 300 23% 81% 1,000 25% 200 13% 500 100 0 0 2004 2005 2006 2007 2004 2005
Slide 17: Tecnicas Reunidas Index
TECNICAS REUNIDAS ¾ BACKLOG ¾ MAIN RECENT AWARDS ¾ SPOTLIGHT ON HYDROCRAKING EXPERIENCE ¾ HUMAN RESOURCES ¾ 2007 FINANCIAL RESULTS ¾ YEAR END BALANCE 16
Slide 18: Sales and EBITDA Growth
SALES and EBITDA GROWTH SALES EBITDA €m €m 3,000 160 2,500 2,005 140 113 62% 70% 80% 120 2,000 23% 1,235 100 112% 48% 66 1,500 80 685 556 60 31 1,000 21 40 500 20 0 0 2004 2005 2006 2007 2004 2005 2006 2007 *Adjusted figures 17
Slide 19: Margins: Enhancement and Protection
MARGINS: Enhancement and Protection EBITDA MARGIN EBIT MARGIN % % 7.0% 5.7% 7.0% 5.4% 5.4% 4.6% 5.1% 6.0% 6.0% 4.2% 3.8% 5.0% 5.0% 3.3% 4.0% 4.0% 3.0% 3.0% 2.0% 2.0% 1.0% 1.0% 0.0% 0.0% 2004 2005 2006 2007 2004 2005 2006 2007 *Adjusted figures 18
Slide 20: Financial Results
FINANCIAL RESULTS Profit and Loss Account € million 2007 2006* Var. Revenues 2,005.2 1,234.5 62% EBITDA 113.3 66.6 70% Margin 5.7% 5.4% EBIT 108.0 62.7 72% Margin 5.4% 5.1% Net Financial Results 6.0 5.2 Profit before Taxes 114.6 68.4 68% Taxes -6.7 -2.9 Net Income 107.9 65.4 65% * Adjusted figures (
Slide 21: Net Cash Position and Dividends Policy
NET CASH POSITION AND DIVIDENDS POLICY ¾ Net cash position at December 31st, 2007: € 422 million ¾ 2006 Dividends: € 0.64 per share (€ 35.8 million, 50% payout) Dividend progression Net Cash Position 50 500 40 400 30 19.0 50% 300 422 20 200 25.2 261 318 10 16.8 100 0 0 2006 2007 2005 2006 2007 Inter
Slide 22: Tecnicas Reunidas Index
TECNICAS REUNIDAS ¾ BACKLOG ¾ MAIN RECENT AWARDS ¾ SPOTLIGHT ON HYDROCRAKING EXPERIENCE ¾ HUMAN RESOURCES ¾ 2007 FINANCIAL RESULTS ¾ YEAR END BALANCE 21
Slide 23: Year End Balance
YEAR END BALANCE ¾ Gaining new customers ¾ Breaking into new markets ¾ Record backlog and awards Positive outlook for ¾ Growing Sales, EBITDA and 2008 and beyond Profits ¾ Highly qualified workforce ¾ Strong cash generation 22
Slide 24: UNIDAS
= UNIDAS
Slide 25: Disclaimer
Disclaimer This document has been prepared by Tecnicas Reunidas S.A. (the Company) solely for use at presentations held in connection with the announcement of the Company's results for the Year 2007. This document contains forward-looking statements of the Company and/or its management. These forwar