Tecnicas Reunidas Sa · BME:TRE
Tecnicas Reunidas Sa — FY2020 Earnings Presentation
27 slides from Tecnicas Reunidas Sa's earnings presentation, Feb 26, 2021
Slide 1: FY 2020 Results Presentation
FY 2020 RESULTS PRESENTATION FEBRUARY 26TH 2021 JUAN LLADÓ CHAIRMAN
Slide 2: Content
CONTENT ➢ 2020 Financial highlights ➢ 2021 and beyond: A promising future ➢ Outlook 2
Slide 3: Solid performance despite Covid environment
SOLID PERFORMANCE DESPITE COVID ENVIRONMENT ADJUSTED SALES EBIT margin* NET CASH €3.5Bn 3.0% €197M Sales shift due to execution Improving margins Significant net cash slowdown and reprogramming position *Adjusted EBIT includes the impact of Covid (€58 million), re-structuring costs (€16 million) and
Slide 4: Solid performance despite Covid environment
SOLID PERFORMANCE DESPITE COVID ENVIRONMENT ADJUSTED SALES EBIT margin* NET CASH €3.5Bn 3.0% €197M Sales shift due to execution Improving margins Significant net cash slowdown and reprogramming position YTD BACKLOG PIPELINE €8.9Bn €45Bn Strong backlog despite award Actively bidding and well-position
Slide 5: Covid impacted 2020 results through different channels
COVID IMPACTED ON 2020 RESULTS THROUGH DIFFERENT CHANNELS sales ≈ -35% -35% ≈ -1,680 2020 Initial 4,699 guidance 3,521 2019 sales 2020 sales Impact on operating Covid direct net costs and profit restructuring costs Other Covid impacts 5
Slide 6: Margins moving towards normalized business levels
MARGINS MOVING TOWARDS NORMALIZED BUSINESS LEVELS FY 2020 EBIT €M Solid adjusted EBIT margin underpinned by -10 3.0% +16 core Oil & Gas business, despite power division 1.2% +58 underperformance 105 41 EBIT Covid Restructuring Profit from Adjusted costs costs asset sale EBIT 6
Slide 7: Margins moving towards normalized business levels
MARGINS MOVING TOWARDS NORMALIZED BUSINESS LEVELS FY 2020 EBIT 4.3% €M +118 3.0% +16 -10 223 1.2% +58 105 41 EBIT Covid Restructuring Profit from Adjusted Rescheduled Embedded costs costs asset sale EBIT EBIT* EBIT *€ 1,680M of delayed sales at 7.0% gross margin (historical project margin) 7
Slide 8: Cash evolution
CASH EVOLUTION €M 419 371 250 219 215 197 155 113 Q1 2019 H1 2019 9M 2019 FY 2019 Q1 2020 H1 2020 9M 2020 FY 2020 8
Slide 9: Content
CONTENT ➢ 2020 Financial highlights ➢ 2021 and beyond: A promising future ➢ Outlook 9
Slide 10: 2021 and beyond: A promising future
CONTENT ➢ 2021 and beyond: A promising future 1. Securing the margins of our current backlog 2. Capturing efficiencies and streamlining operations 3. Bidding for the next wave of investments 4. Positioning TR in the energy transition 10
Slide 11: Securing the margins of our current backlog
SECURING THE MARGINS OF OUR CURRENT BACKLOG Main contributors to sales in 2021 11
Slide 12: Securing the margins of our current backlog
SECURING THE MARGINS OF OUR CURRENT BACKLOG Reprogrammed projects: active and accelerating in 2022 12
Slide 13: 2021 and beyond: A promising future
CONTENT ➢ 2021 and beyond: A promising future 1. Securing the margins of our current backlog 2. Capturing efficiencies and streamlining operations 3. Bidding for the next wave of investments 4. Positioning TR in the energy transition 13
Slide 14: Capturing efficiencies and streamlining operations
CAPTURING EFFICIENCIES AND STREAMLINING OPERATIONS IMPLEMENTED ANNUALIZED IN 2020 EFFECT Workforce reduction of 26% € 70M € 198M Rentals reduction of >15,000sqm € 1M €9M Optimization in operations € 50M € 50M € 121M € 257M Divestment plan € 28M 14
Slide 15: Capturing efficiencies and streamlining operations
CAPTURING EFFICIENCIES AND STREAMLINING OPERATIONS o TRansforma: our new toolbox for project execution ✓ Cost reduction ✓ New and streamlined structure ✓ Standardization ✓ Digitalization 15
Slide 16: 2021 and beyond: A promising future
CONTENT ➢ 2021 and beyond: A promising future 1. Securing the margins of our current backlog 2. Capturing efficiencies and streamlining operations 3. Bidding for the next wave of investments 4. Positioning TR in the energy transition 16
Slide 17: Bidding for the next wave of investments
BIDDING FOR THE NEXT WAVE OF INVESTMENTS 7% >$22Bn Shift to gas $45Bn tendered or 46% Clean fuels and petchem total pipeline tendering Bio fuels and renewables in H1 2021 47% 17
Slide 18: 2021 and beyond: A promising future
CONTENT ➢ 2021 and beyond: A promising future 1. Securing the margins of our current backlog 2. Capturing efficiencies and streamlining operations 3. Bidding for the next wave of investments 4. Positioning TR in the energy transition 18
Slide 19: Positioning TR in the energy transition
POSITIONING TR IN THE ENERGY TRANSITION Pipeline: tendering for a wide portfolio of transition technologies 41 11 projects in the pipeline related projects focused on …and focusing on additional to energy transition Next Generation EU opportunities on carbon capture, • 3 in carbon capture (NGEU) fun
Slide 20: Positioning TR in the energy transition
POSITIONING TR IN THE ENERGY TRANSITION • Consultancy services for green hydrogen strategy in Uruguay Executed • FEED for biofuel unit in Netherlands (GUNVOR) • Green hydrogen for public transport • MoU services for green hydrogen for refining Executing • Equipment for wind blades recycling • R&D in
Slide 21: Content
CONTENT ➢ 2020 Financial highlights ➢ 2021 and beyond: A promising future ➢ Outlook 21
Slide 22: Business outlook
BUSINESS OUTLOOK 2021: a year of transition 1. Securing margins 2. Capturing efficiencies 3. Bidding a strong pipeline 4. Positioning for energy transition 2021 TR forecast* ▪ Sales Range of €3.5 Bn ▪ Adjusted EBIT margin Around 3.0% ▪ Awards More than replacing 2021 sales *Assuming current Covid co
Slide 23: Disclaimer
DISCLAIMER This document has been prepared by Técnicas Reunidas S.A. (the Company) solely for use at presentations held in connection with the announcement of the Company's results for the first half of 2020. This document contains forward-looking statements of the Company and/or its management. The
Slide 24: New project for SASA Polyester
NEW PROJECT FOR SASA POLYESTER ➢ EP+Cm of a new petrochemical plant for SASA Polyester in Adana, Turkey for production of Purified Terephtalic Acid (PTA). Total investment of $935 million ➢ PTA is used in the pharmaceutical and textile industries, food life extension and packaging ➢ This project wil
Slide 25: TR's capabilities will play an important role through the energy transition
TR’S CAPABILITIES WILL PLAY AN IMPORTANT ROLE THROUGH THE ENERGY TRANSITION TÉCNICAS REUNIDAS CURRENT ACTIVITY Deployment of WIND AND SOLAR BIOMASS POWER renewable RENEWABLE FUELS POWER GENERATION GENERATION energies Decarbonization REDUCE FLARING AND REDUCE METHANE INTEGRATION WITH of oil and gas S
Slide 26: Sustainability: ambitious targets and achievements
SUSTAINABILITY: AMBITIOUS TARGETS AND ACHIEVEMENTS ENVIRONMENT SOCIAL GOVERNANCE • Top ranked companies in the CDP 2019 (Carbon • Continuous commitment with the Disclosure Project) – Climate Change with score development of regional áreas, through local • 20% of variable retribution of the executive
Slide 27: Tecnicas Reunidas
y TECNICAS REUNIDAS