Gaztransport & Technigaz Sa · EURONEXT:GTT
Gaztransport & Technigaz Sa — ODDO BHF Digital Forum January 2021
63 slides from Gaztransport & Technigaz Sa's conference presentation, January 2021
Slide 1: Investor Presentation ODDO BHF Digital Forum
Investor Presentation ODDO BHF DIGITAL FORUM H1 2020 / Q3 2020 results January 2021
Slide 2: Disclaimer
Disclaimer This document is strictly confidential. Any unauthorised access to, appropriation of, copying, modification, use or disclosure thereof, in whole or in part, by any means, for any purpose, infringes GTT’s rights. This document is part of GTT’s proprietary know-how and may contain trade sec
Slide 3: 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 4: Agenda
Agenda 1. Company overview & key highlights 2. Core business: Market & activity update 3. New businesses: LNG as fuel developments 4. Service activity 5. Recent acquisitions 6. Strategic roadmap 7. Financials 8. Outlook Appendices 4
Slide 5: Company overview & Key highlights
1 Company overview & Key highlights 5
Slide 6: GTT at a glance
GTT at a glance Profile A French technology and engineering Consolidated key figures company with more than 50-year track record in € million H1 2020 Expert in liquefied gas containment systems GTT is a public company listed on the Total Revenues 204 Euronext Stock Exchange (Paris), Royalties (newbu
Slide 7: GTT ecosystem
GTT ecosystem Oil & Gas Companies Shipowners End clients and End clients and prescribers prescribers provides services provides services and maintenance Classification Societies Regulatory oversight of the industry Shipyards Direct clients receives new technology certification and licences its membr
Slide 8: GTT covering the entire liquefied gas shipping and storage value chain
GTT covering the entire liquefied gas shipping and storage value chain Exploration Regasification Off Take / Liquefaction Shipping & Production & Storage Consumption Offshore Liquefied Natural Gas Floating Storage and LNG fuelled clients: Carrier (LNGC) Regasification Unit ship (FSRU) shipyards Plat
Slide 9: GTT membrane technologies
GTT membrane technologies Primary General principle: membrane Two membranes Primary insulation Two layers of insulations Secondary membrane Containment system Secondary insulation anchored to the inner hull Hull Mark III system NO96 system 9
Slide 10: GTT, a green stock
GTT, a green stock GTT’s activities are mainly driven by environmental aspects Core business Business model: pure technology and engineering company, no direct emissions Technology: improved performance of LNG carriers with a reduction of the level of LNGC CO2 emissions by 43% over the last 10 years
Slide 11: Key Highlights
Key Highlights Core business: sustained and diversified new orders - Full year 2020: total of 51 new orders (41 LNGC,1 FSRU, 2 FSU, 4 VLEC, 3 Onshore storage) - LNG as Fuel - September 2020: delivery of the first CMA CGM Ultra Large Container Ship - Still 17 vessels in the order book - New services
Slide 12: COVID-19
COVID-19 Health of our employees and their families No severe case reported The Group continues to apply recommendations to employees at head office and abroad, in line with those of the French and local authorities Operational level Head office: a large part of our workforce is currently working fr
Slide 13: Decision of the Korea Fair Trade Commission November 2020
Decision of the Korea Fair Trade Commission 25 November 2020 The KFTC considers that some of the company’s commercial practices have not complied with Korean competition regulations since 2016. GTT to allow those Korean shipyards which would so request to perform all or part of the technical assista
Slide 14: Core business: Market & activity update
2 Core business: Market & activity update 14
Slide 15: Overall long term outlook bright for gas and LNG
Overall long term outlook bright for gas and LNG Gas share in the energy mix LNG to lead gas trade growth (bcm) 100% 11% 17% Trade Trade 31% 36% 80% 60% Oil +1,500 bcm Gas 40% Coal Renewables 20% Hydro 0% Nuclear 2018 2040 Gas consumed locally Pipe LNG Gas is the only fossil energy to increase share
Slide 16: BP alternative scenarios all point to a prominent share of gas in the energy mix
BP alternative scenarios all point to a prominent share of gas in the energy mix 4 scenarios considered by BP Gas is central in all 4 scenarios 5,8 4,6 4,3 3,2 4,3 Whatever the scenario, gas grows and BP considers 4 scenarios with common ranks as one of 2 leading energies features, such as ongoing e
Slide 17: Map of LNG flows
Map of LNG flows HE Main LNG producers pre Main LNG consumers Number of LNG carriers @® pecded per Mepa GIT BEB inc supply (mttpa) in 2019 and 2029 FEI NG demand (Mpa) in 2019 and 2029 Significant current LNG flows Significant future LNG flows 17
Slide 18: LNG Supply & Demand: new capacity required from 2027
LNG Supply & Demand: new capacity required from 2027 LNG Supply & Demand balance forecast 700 600 240 Mtpa 500 400 mtpa 300 200 100 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2
Slide 19: LNG market rebalancing
LNG market rebalancing Spot charter rates LNG spot prices LNG Asia LNG Europe US gas (HH) July 19 July 20 Apr 20 Jan 20 Oct 19 Oct 20 After very tough Q2 and Q3 due to Coronavirus, spot LNG and spot charter rates are improving Pushed up by coming winter and economic activity restarting US LNG loadin
Slide 20: Focus on China: LNG imports still increasing in 2020
Focus on China: LNG imports still increasing in 2020 vs. 2019 despite Covid breakthrough China LNG imports 8,0 50 7,0 40 6,0 5,0 30 mtpa mtpa 4,0 43,0 20 38,5 3,0 2,0 10 1,0 - 0 Jan Feb Mar Apr May Jun Jul Aug Jan-Aug 2019 Jan-Aug 2020 2020 vs. 2019 2019 2020 Main source: Wood Mackenzie Most of Chin
Slide 21: Core business long term estimates
Core business long term estimates GTT H1 2020 Sales GTT order estimates over 2020-2029 GBS LNG Fuel 1% Services LNGC: between 285 and 315 units(1) FLNG 2% 3% 1% FSRU VLEC: between 25 and 40 units 7% FSRU: between 10 and 20 units LNGC FLNG: Up to 5 units 86% Onshore and GBS tanks: between 15 and 20 u
Slide 22: New businesses: LNG as fuel developments
3.2 3 New businesses: LNG as fuel developments 22
Slide 23: LNG as fuel: the only mature solution allowing comprehensive environmental compliance
LNG as fuel: LNG is the only mature solution allowing comprehensive environmental compliance Comparison of emissions by fuel type 1 0,75 HFO Base 1 0,5 HFO+ Scrubber LSHFO LNG 0,25 0 Source : DNV NOx emissions for LNG SOX NOX * CO2 Particulates are for XDF engines LNG is in advance of existing and a
Slide 24: GTT's LNG Fuel solutions offering
GTT’s LNG Fuel solutions offering GTT has developed solutions for the main applications of LNG Fuel Solutions for Container Vessels new build and retrofit Cruise Ship – optimizing the space for additional passengers Lean bunker barge to Cost effective solution for bulk carriers standardize the marke
Slide 25: LNG fuel keeps expanding in a very challenging shipbuilding market
LNG fuel keeps expanding in a very challenging shipbuilding market Annual shipping orders (≥20k dwt) and LNG as fuel market share 5000 12% 11% 10% 4000 LNG as fuel market share 8% # vessels ordered 3000 6% 2000 4% 1000 2% 580 (annualized, 290 as 30 June 20) 0 0% 2010 2011 2012 2013 2014 2015 2016 20
Slide 26: Competition landscape of LNG fuel market
Competition landscape of LNG fuel market LNG fuel tanks competitive landscape LNG as a marine fuel continues its LNG tanks total capacity - cbm penetration in shipping market 11% market share in 2020 20,000 Newbuild & Retrofit Type B • Ultra & Very Large Newbuild Container Vessels The c.30 LNG fuell
Slide 27: LNG Fuel market potential for GTT
LNG Fuel market potential for GTT Relevant Market Segments Historical 10y Shipping Markets Fleet at end 2019 for GTT annual orders MAIN TARGETS Container Ships 3-20+ kTEU Bulkers 100+ kdwt ~225 ~5500 Oil Tankers 125+ kdwt Cruise Ships All size ~35 ~1200 Car & Truck Carriers TOTAL SHIPPING MARKET All
Slide 28: Service activity
3.3 4 Service activity 28
Slide 29: Services to make LNG easy
Services to make LNG easy Support of GTT’s LNG core activities Support for the development of LNG as fuel CONSULTING to get LNG as ENGINEERING fuel projects on track TRAINING To enable projects and to raise support daily awareness operations about LNG LNG TESTS OPERATIONS to facilitate To support LN
Slide 30: Recent acquisitions
3.3 5 Recent acquisitions 30
Slide 31: Marorka, a new step in GTT's digital roadmap
Marorka, a new step in GTT’s digital roadmap A leading global provider of data-driven energy management and operational performance solutions for the international maritime industry Marorka focuses on fuel savings, emission reduction compliance and reporting, and performance optimization More than 6
Slide 32: OSE Engineering
OSE Engineering French tech company specialised in “smart algorithms” applied to complex industrial and technical problems Created in 2014 Serious scientific expertise and credentials Dynamic relationship within top academic networks (talent pool) Profile studiOSE: algorithms design, simulation & va
Slide 33: H2Gen
H2Gen French company leader in Proton Exchange Membrane (PEM) electrolysis Specialised in the design and assembly of electrolysers for the production of green hydrogen • Created in 2014 • Design and assembly • Main applications: of electrolysers industry, mobility • Leader in PEM and energy storage
Slide 34: Green hydrogen strong market potential
Green hydrogen strong market potential Massive public support: Europe could become the first producer of Green Hydrogen by 2025 EU: 40 GW of renewable hydrogen capacity by 2030 (vs around 1 GW in 2019) France: 6.5 GW of renewable hydrogen capacity by 2030 €7.2bn hydrogen development plan over 10 yea
Slide 35: PEM is now gaining momentum as the technology reaches maturity
PEM is now gaining momentum as the technology reaches maturity 80% of the new capacity deployed in the 2015-2019 period has been using PEM technology1 PEM is still being deployed at the MW scale and is expected to reach higher performances in the next few years, as well as increase the overall capac
Slide 36: H2Gen first priorities
H2Gen first priorities Primary focus on technology Target best design Target best performance Target largest power (stacks) In order to be in a position to capture market opportunities Short-term: capitalise on current systems (up to ~1 MW) for light industry and light mobility segments Mid-term: th
Slide 37: Strategic roadmap
6 Strategic roadmap 37
Slide 38: GTT's strategic roadmap
GTT’s strategic roadmap 6. Transformation Technology for a Hydrogen electrolysers sustainable world Smart shipping Gas handling technologies 2. Enhancement Offshore Multigas LNG as LNG Carriers GBS fuel Evolution of NO 96 & Mark Transfer 1. Intensification systems operations 5. Enlargement 3. Improv
Slide 39: Financials
7 Financials 39
Slide 40: H1 2020: Order book overview (core business)
H1 2020: Order book overview (core business) Order book in units Order book by year of delivery (units per year) In units In units (2) 16 (4) 34 Order book in value Revenues expected from current order book (1) In €M In €M (3) 194 (5) 180 (1) Royalties from core business, i.e. excluding LNG as Fuel
Slide 41: H1 2020 financial performance
H1 2020 financial performance Summary consolidated accounts Key highlights in € M H1 2019 H1 2020 Change Revenues: +66.2% Newbuilds (royalties): +71%. Royalties from LNGCs Total Revenues 122.6 203.8 66.2% fully benefit from the last two years strong flow of EBITDA (1) 70.9 136.6 92.7% orders Margin
Slide 42: H1 2020 Cost base
H1 2020 Cost base GTT consolidated operational costs Key highlights in € M H1 2019 H1 2020 Change (%) External costs: +28.3% Goods purchased -2.6 -2.8 7.5% Subcontractors +54.7%, due to the increase of % sales -2% -1% orderbook Travel expenditures: -20.1% due to the Covid Subcontracted Test and cris
Slide 43: First nine months 2020 consolidated revenues
First nine months 2020 consolidated revenues Summary financials Key highlights Change in €M 9M 2019 9M 2020 (%) Total revenues: €306 million (+53%) Revenues 199.7 305.6 +53% Newbuilds (royalties): + 56% Newbuilds 188.9 295.4 +56% • Record level of royalties generated by high number of % of revenues
Slide 44: Dividend
Dividend 2018 2019 Consolidated net profit (IFRS) €142.8 M €143.4 M Total dividend Dividend per share €3.12 €3.25 Total amount paid €115.6 M €120.5 M Pay out ratio 81% 84% Dividend amount 3.12 +4% 3.25 1.79 1.75 2.50 1.50 1.33 2018 2019 2020 Interim Final (1) Dividend payout ratio calculated on prof
Slide 45: Outlook
8 Outlook 45
Slide 46: 2020 Outlook confirmed
2020 Outlook confirmed GTT revenue(1) 2020 consolidated revenue estimated in a range of €375M to €405M EBITDA 2020 consolidated EBITDA estimated in a range of €235M to €255M Dividend 2020 and 2021 payout of at least 80% Payment(2) (1) In the absence of any significant delays or cancellations in orde
Slide 47: Thank you for your attention
Thank you for your attention Image courtesy of STX, Engie, Excelerate, Reliance, SCF Group, Shell, CMA CGM, Conrad 47 Masque PowerPoint - January 2020 CONFIDENTIAL
Slide 48: Appendix
GIT Appendix
Slide 49: A streamlined group and organisation
A streamlined group and organisation GTT Group Philippe Berterottière Chairman and Chief Executive Officer GTT SA organisation Eric Dehouck Deputy CEO Lélia Ghilini General Counsel/ Director of Legal Affairs Jean-Baptiste Julien Bec David Colson Karim Chapot Sandrine Vibert Marc Haestier Anouar Kias
Slide 50: 9M 2020: strong level of orderbook
9M 2020: strong level of orderbook CORE BUSINESS Order book: 135 units 9M 2020 movements in the order book 108 LNGC 1 FLNG New orders: 28 (18 LNGC, 4 VLEC, 1 FSRU, 2 FSU, 10 VLEC 3 onshore storage) 6 Onshore storage 5 FSRU Deliveries: 26 (23 LNGC, 2 FSRU, 1 FLNG) 3 GBS 2 FSU NEW BUSINESS (LNG FUEL)
Slide 51: LNGCs – Our main business
LNGCs – Our main business Vessels equipped for transporting LNG Existing GTT fleet: 384 units1 In order: 113 units1 26 construction shipyards under license1 Our strengths Technological leadership, boil-off divided by 2 in the last 5 years Long term industrial partnerships with major shipyards A uniq
Slide 52: GTT supports CO2 emissions reductions thanks to continuous improvements
GTT supports CO2 emissions reductions thanks to continuous improvements of its systems Comparison of 2 typical LNG carriers in 2010 (Steam Turbine) and 2020 (MEGI/XDF) CO2 saved Engine type LNG tank Boil Off Size Consumption per cbm transported* Steam Turbine Mark III 0,15% 145k cbm 110t/d - MEGI /
Slide 53: 54 ageing vessels with charter contract ending by 2023
54 ageing vessels with charter contract ending by 2023 LNGCs carriers* with charter contract ending by 2023 90 LNGC chart contract to end by 2023 35 Of which 54 equipped with steam turbine propulsion; also smaller vessels (<140k 30 cbm) 25 20 MEGI/XDF Charterers and ship-owners to prepare the DFDE 1
Slide 54: FSRUs – A flexible solution for opening quickly new access to energy
FSRUs – A flexible solution for opening quickly new access to energy Major competitive advantage vs. land-based terminals: Quick to build/deploy & mobile Better local acceptability & easier permitting Affordable / no upfront CapEx Adapted to more volatile LNG prices Quality controlled construction i
Slide 55: Focus on Onshore storage
Focus on Onshore storage GTT has received 2 orders for 3 Onshore tanks in China 2 x 220k cbm GST with Chinese licensee HQCEQ for a new regas terminal of Beijing Gas in Tianjin (North East China) Construction already began (foundations) 1 x 29k cbm GST with CPECCCNC for peak-shaving requirements for
Slide 56: Onshore storage: GST technology for a reduced carbon footprint
Onshore storage: GST technology for a reduced carbon footprint Carbon Footprint in tons CO2-eq 10 000 8 000 Carbon Footprint in tons CO2-eq 30 000 10 000 Carbon Footprint in tons CO2-eq Concrete 25 000 6 000 8 000 Metal C 20 000 4 000 6 000 Insulation Construct M 15 000 2 000 4 000 10 000 Transport
Slide 57: GBS is suitable for a very wide range of applications
GBS is suitable for a very wide range of applications @ SemCorp @ Acciona Concrete or steel, installed in jetty, breakwater dike or nearshore GBS range 5k 50k 200k+ Storage capacity (cbm) LNG SUPPLY CHAIN • Liquefaction or regasification plants • Peak Shaving • Satellite Station • Inland distributio
Slide 58: Focus on GTT's competitive advantages on LNGCs
Focus on GTT’s competitive advantages on LNGCs GTT’s technology positioning (1) GTT Moss SPB KC-1 ▶ Integrated tank ▶ Integrated tank ▶ Self supported spheric tank ▶ Self supported prismaticl tank Technology (membrane) (membrane) ▶ Atmospheric pressure ▶ Atmospheric pressure ▶ Atmospheric pressure ▶
Slide 59: LNG Fuel: wide network of partnerships
LNG Fuel: wide network of partnerships 25 shipyards under licensed agreements Network of membrane tank outfitters A close relationship with engine makers and FGHS1 providers (1) Fuel Gas Handling System 59
Slide 60: Focus on GTT's competitive advantages on LNG fuel
Focus on GTT’s competitive advantages on LNG fuel GTT’s technology positioning on LNG fuel GTT Membrane Prismatic Type B Type C ▶ Self supported Cylindrical tank Technology ▶ Integrated tank ▶ Self supported tank ▶ Pressurized principle ▶ Atmospheric pressure ▶ Atmospheric pressure ▶ Insulation: vac
Slide 61: An attractive business model supporting high cash generation
An attractive business model supporting high cash generation Invoicing and revenue recognition Business model supports high cash generation % of contract (1) c. 9 to12 months c. 18 months Delivery Revenue is recognized pro-rata 10000 studies royalties temporis between construction milestones 8000 Sh
Slide 62: Appendix: track record of high margin and strong backlog
Appendix: track record of high margin and strong backlog 2008 2011 Economic crisis Fukushima US shale gas boom 120 112 66 30 18 52 77 99 114 118 96 89 97 133 66 51 44 47 37 Evolution of new 34 35 26 21 GTT orders (1)(2) 19 7 4 1 5 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Slide 63: Contact
Contact: information-financiere@gtt.fr / +33 1 30 23 20 87
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