Maire S.p.A. · MIL:MAIRE
Maire — Maire Tecnimont — Investor Presentation (March 2016)
26 slides from Maire's investor presentation, March 2016
Slide 1: Maire Tecnimont Group Overview
MAIRE TECNIMONT GROUP OVERVIEW MARCH 2016
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: Agenda
Agenda Group Overview Strategy Operations Financial Data March 2016 3
Slide 4: Maire Tecnimont Group
Maire Tecnimont Group Key Indicators (FY2015) • Leading worldwide engineering contractor focusing on: €1.67bn Revenues − Oil&Gas 4,600 Employees − Petrochemicals − Fertilizers 45 Operating companies €6.9bn Backlog (31/12/2015) • Flexible Business Model spanning the €780m Market Cap (11/3/2016) entir
Slide 5: Strong Competitive Positioning in Key Technological Segments
Strong Competitive Positioning in 3 Key Technological Segments Market share in polyolefins* Petrochemicals 30% (#1 worldwide as per capacity installed in the last 6 yrs.) 40% Market share in LDPE* (Low Density PolyEthylene) Market share in licensing urea plants technology (#1 Fertilizers 52% worldwi
Slide 6: Group History
Group History 1899 FIAT GROUP 1972 1971 Incorporation of 1937 Kinetic Technology Int. - KTI FIAT ENGINEERING Dutch State Mines – DSM More than 40 years of 2001 research centre for services work experience in process engineering Acquisition of FIAT Avio’s Electric to coal mines 1988 Design & Construc
Slide 7: Services Provided
Services Provided Maire Tecnimont Group’s Presence Across the EPC Value Chain TECHNOLOGY DRIVEN EXECUTION DRIVEN SECTOR LICENSING PROCESS & PROPRIETARY ENGINEERING PROCUREMENT CONSTRUCTION VALUE CHAIN EQUIPMENT DESIGN FERTILIZERS OIL& GAS PETROCHEMICALS Subsidiary: March 2016 7
Slide 8: Extensive International Presence
Extensive International Presence About 4,600 employees, more than half are employed outside of Italy Presence in about 30 countries with 45 operating companies Salzgitter Sittard Milan Rome EMPLOYEES BY REGION Italy 1,994 Mumbai Rest of Europe 238 Asia 2,336 Rest of the World 28 Total 4,596 Average
Slide 9: Agenda
Agenda Group Overview Strategy Operations Financial Data March 2016 9
Slide 10: Maire Tecnimont's Strategic Priorities
Maire Tecnimont’s Strategic Priorities…. Enhance and Develop Technology Driven Business 1 Align Organization and Pursue Group Synergies 5 Reduce EPC Risk Positioning Strategic 2 Priorities 4 Expand Geographic 3 Footprint Develop Engineering Services Revenues March 2016 10
Slide 11: Focused on Technology-Driven Business and Selective EPCs
… Focused on Technology-Driven Business and Selective EPCs TECHNOLOGY DRIVEN EXECUTION DRIVEN SECTOR LICENSING PROCESS VALUE ENGINEERING PROCUREMENT CONSTRUCTION DESIGN CHAIN DETAILED DIRECT ENGINEERING PRODUCTS LICENSE BASIC FEED SERVICES EP EPC TYPICAL VOLUMES* € 1-10m € 1-10m € 4-15m € 10-40m € 5
Slide 12: Key Implications of the Group's Strategic Approach
Key Implications of the Group’s Strategic Approach • Do not chase volumes for volumes’ sake • Focus on marginality • E, EP, EPC mix more important than in the past • Leverage on technology competition Our Strategic Approach Has Been Very Successful March 2016 12
Slide 13: Agenda
Agenda Group Overview Strategy Operations Financial Data March 2016 13
Slide 14: Main Projects Worldwide
Main Projects Worldwide Selected Completed and Under Execution Projects ADGAS - UAE Oil & Gas Treatment Eurochem - Russia US$490m Gazprom NEFT - Tobolsk– Siberia Russia Fertilizers Polyolefin (PDH) Oil &Gas €480mn €660mn €660mn ADCO - UAE Oil & Gas Treatment IOWA - USA US$2.3bn Fertilizers Socar - A
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 - Downstream capacity to increase FERTILIZERS - Gas monetization: Cheap feedstock supports owner’s investment attractiveness - Demography driving demand for ni
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 • Client diversification (NOCs vs. IOCs) • Global approach with focus on specific geographies Our
Slide 17: Historical Order Intake
Historical Order Intake Pre-Strategy Post-Strategy (€m) Implementation Implementation Average 2011-13: €1,650m 3,209 2,776 2,069 1,708 1,174 2011 2012 2013 2014 2015 Main Awards 2014 Main Awards 2015 ADCO (UAE) $2.3bn Eurochem (Russia) €660m Fatima Group and Midwest Fertilizers (USA) $1.6bn (MoU) Ga
Slide 18: Backlog
Backlog Backlog by Business Unit Backlog by Geography (Dec. 2015) (€m, 2013-2015) 6,893 Others 438 17% Europe 4,951 406 38% 3,482 Asia 12% 502 6,455 4,545 2,980 33% 31/12/13 31/12/14 31/12/15 TE&C Infrastructure Middle East A Well Diversified Backlog that provides a Solid Base to Future Revenues Mar
Slide 19: Backlog Analysis – TE&C Business Unit
Backlog Analysis – TE&C Business Unit Backlog by Type (E, EP & EPC), €m Book to Bill Ratio 6,455 4,545 5,483 2,980 3,561 4.2 1,697 3.1 2.2 1,048 794 846 235 190 126 31/12/13 31/12/14 31/12/15 31/12/13 31/12/14 31/12/15 E EP EPC Good mix between E, EP, and EPC Excellent cover for future revenues Marc
Slide 20: Outlook on Commercial Activity
Outlook on Commercial Activity Commercial Activity in TE&C (€bn) 32 28 6.6 24 4.0 20 5.2 7.7 16 5.3 12 3.8 8 17.9 15.4 4 9.7 0 Dec 13 Dec 14 Dec 15 PROSPECT PREQUALIFICATION & PRE-TENDERING TENDERING TENDERED We Maintain a Good Pipeline of Excellent Opportunities March 2016 20
Slide 21: Commercial Activity's Geographical Breakdown (TE&C)
Commercial Activity’s Geographical Breakdown (TE&C)* C.I.S. Europe POLIOLEFINE POLIOLEFINE FERTILIZER €6.4bn €1.0bn FERTILIZER GAS TREATMENT REFINERY North America Asia POLIOLEFINE POLIOLEFINE €1.2bn FERTILIZER FERTILIZER €2.9bn GAS TREATMENT LNG €8.6bn Middle East POLIOLEFINE FERTILIZER GAS TREATME
Slide 22: Agenda
Agenda Group Overview Strategy Operations Financial Data March 2016 22
Slide 23: Consolidated Income Statement & Balance Sheet
Consolidated Income Statement & Balance Sheet INCOME STATEMENT €m FY 2010 FY 2011 FY 2012 FY 2013(1) FY 2014 FY 2015 • Revenues’ performance in line with turnaround Revenues 2,535.9 2,646.3 2,186 1,498.2 1,583.2 1,669.6 strategy and asset disposals EBITDA 133.1 (305.1) (159.2) 116.1 126.9 130.8 • St
Slide 24: Net Financial Debt and Cash Flow Bridge
Net Financial Debt and Cash Flow Bridge Net Financial Debt (€m) 365.0 3.7 71.3 - 239.4 Derivatives Conv. Bond 125.6 290.0 11.9 Net Bank Debt 73.1 40.6 Dec 2014 Dec 2015 Cash Flow Bridge (€m) 130.8 365.0 36.6 125.6 152.6 7.4 Net Debt EBITDA Change in NWC Capex Net Financial Charges Net Debt Dec-2014
Slide 25: Spread of Bank Debt Refinancings, 2013-2015
Spread of Bank Debt Refinancings, 2013-2015 Spread (bps) 600 500 400 300 540 200 395 250 100 0 May 2013 Apr 2015 Dec 2015 Amount (€m) €350 €320 €350 Final Maturity 12/2017 2018-2019 12/2020 We Have More Than Halved our Bank Financing Cost since 2013 March 2016 25
Slide 26: Investor Relations
Investor Relations Via Gaetano De Castillia, 6A 20124 Milano T +39 02 6313-7823 Investor-relations@mairetecnimont.It March 2016 26