Technipfmc Plc · NYSE:FTI
Technipfmc — Q4 2017 Earnings Presentation
20 slides from Technipfmc's earnings presentation, Feb 22, 2018
Slide 1: Q4 2017 Earnings Call Presentation
Q4 2017 Earnings Call Presentation February 22, 2018
Slide 2: Disclaimer
Disclaimer Forward-looking statements We would like to caution you with respect to any “forward-looking statements” made in this presentation as defined in Section 27A of the United States Securities Act of 1933, as amended, and Section 21E of the United States Securities Exchange Act of 1934, as am
Slide 3: Q4 2017 Overview
Q4 2017 Overview Financial Results and Operational Highlights Doug Pferdehirt, Chief Executive Officer Maryann Mannen, EVP and Chief Financial Officer
Slide 4: Q4 2017 Financial highlights
Q4 2017 Financial highlights Total Company $3.7B Subsea $1.3B REVENUE Onshore/Offshore $2B Surface Technologies $372M Total Company $573M Adjusted EBITDA(1) Operating segments $614M INBOUND ORDERS Total Company inbound orders $3B; Subsea $1.7B and BACKLOG Total Company backlog $13B CASH Net cash(2)
Slide 5: 2017 – A transformational journey
2017 – A transformational journey Executing Winning Strong financial performance Increase in Subsea orders ▪ Segment margins ahead of guidance ▪ $5.1B in 2017, +27%(1) vs 2016 Robust project execution Differentiated commercial model ▪ Yamal LNG: first cargo loaded ▪ XOM Liza: new technology ▪ Pr
Slide 6: Market opportunities
Market opportunities Subsea LNG Smaller projects, direct awards Market rebalancing to drive activity Subsea tiebacks, alliance partners Large project opportunities Shift in composition of operators North America Arctic Growing prominence of Independents Middle East Future offshore capex C
Slide 7: Market spotlight: Surface Technologies – North America
Market spotlight: Surface Technologies – North America NAM Rig Count Frac Intensity NAM Revenue # of frac stages / well 30 2014 Peak 2,500 25 2018e 2,000 20 1,500 15 1,000 10 500 5 - 0 2 0 1 4 2014 2 0 1 5 2015 2 0 1 6 2016 2 0 1 72017 2014 2014 2015 20152 0 1 6 2016 2 0 1 7 2017 % of Revenue 2017 S
Slide 8: Subsea opportunities in the next 24 months
Subsea opportunities in the next 24 months STATOIL Johan Sverdrup 2 CNOOC Liuhua 16-2 EXXONMOBIL SHELL Neptun Deep Vito RELIANCE MJ-1 CAIRN & WOODSIDE ENI CHEVRON SNE Zohr 2 POSCO-DAEWOO Anchor & Tigris SHWE 2 ENI ONGC EXXONMOBIL KGD5 98/2 Liza 2 Zabazaba CONOCOPHILLIPS Barossa SHELL Bonga SW PETROB
Slide 9: Q4 2017 Financial highlights
Q4 2017 Financial highlights Revenue $3.7 billion Adjusted EBITDA(1) $573 million $614 million from Subsea, Onshore/Offshore, Surface Technologies Adjusted Diluted EPS(1) $0.20 Net Cash(2) $2.9 billion Backlog $13 billion (1) Adjusted results exclude the impact of exceptional charges and credits fro
Slide 10: Q4 2017 Financial highlights
Q4 2017 Financial highlights Revenue OTHER ITEMS $3.7 billion After-tax charges and (credits) of $245 million, including $138 million non-cash charge related to tax reform Adjusted EBITDA(1) $573 million Corporate expense of $42 million, excluding charges and $614 million from Subsea, Onshore/Of
Slide 11: Q4 2017 Segment results
Q4 2017 Segment results Subsea Onshore/Offshore Surface Technologies USD, in millions USD, in millions USD, in millions - 36% - 70 bps - 2% + 810 bps + 23% + 1460 bps 2,024 19.6% 18.9% 2,061 2,020 14.6% 372 20.4% 304 1,292 6.5% 5.8% Revenue Adjusted EBITDA margin Revenue Adjusted EBITDA margin Reven
Slide 12: 2018 Full Guidance
2018 Full Guidance *Items updated February 21, 2018 Subsea Onshore/Offshore Surface Technologies Revenue in a range of $5.0–5.3 billion Revenue in a range of $5.3–5.7 billion Revenue in a range of $1.5–1.6 billion EBITDA margin(1) at least 14% EBITDA margin(1) at least 10.5%* EBITDA marg
Slide 13: Summary
Summary Q4 2017 – Positive momentum continues Robust operating performance across all segments, particularly in Onshore/Offshore Subsea segment book-to-bill above 1.3x; VNG Norge Fenja is first major* iEPCI™ award Bapco’s Sitra refinery award announced; confidence of further downstream awards
Slide 14: Appendix
Appendix Q4 2017 Earnings Call Presentation | 14
Slide 15: Backlog visibility
Backlog visibility Subsea* 4Q 2017 Inbound orders: $1,725 million $6.2 billion $3.4 billion $1.6 billion $1.3 billion 2018 2019 2020 & beyond * Backlog does not capture all revenue potential for subsea services. Onshore & Offshore** 4Q 2017 Inbound orders: $874 million $6.4 billion $4.2 billion $1.5
Slide 16: Reconciliation of GAAP to Non-GAAP Financial Measures
TECHNIPFMC PLC AND CONSOLIDATED SUBSIDIARIES RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (In millions, unaudited) Charges and Credits In addition to financial results determined in accordance with U.S. generally accepted accounting principles (GAAP), the Fourth Quarter 2017 Earnings Releas
Slide 17: Reconciliation of GAAP to Non-GAAP Financial Measures
TECHNIPFMC PLC AND CONSOLIDATED SUBSIDIARIES RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (In millions except per share amounts) (Unaudited) Three Months Ended Twelve Months Ended December 31 December 31 2017 2016 2017 2016 (after-tax) Net income (loss) attributable to TechnipFMC plc, as re
Slide 18: Reconciliation of GAAP to Non-GAAP Financial Measures
TECHNIPFMC PLC AND CONSOLIDATED SUBSIDIARIES RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (In millions, unaudited) Three Months Ended December 31, 2017 Onshore/ Surface Corporate and Subsea Offshore Technologies Other Total Revenue $ 1,292.2 $ 2,019.5 $ 372.3 $ (1.0) $ 3,683.0 Operating pro
Slide 19: Reconciliation of GAAP to Non-GAAP Financial Measures
TECHNIPFMC PLC AND CONSOLIDATED SUBSIDIARIES RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (In millions, unaudited) Pro Forma Three Months Ended December 31, 2016 Onshore/ Surface Corporate and (including legacy FMC Technologies and PPA adjustments) Subsea Offshore Technologies Other Total R
Slide 20: Reconciliation of GAAP to Non-GAAP Financial Measures
TECHNIPFMC PLC AND CONSOLIDATED SUBSIDIARIES RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (In millions, unaudited) December 31 December 31, 2017 2016 Cash and cash equivalents $ 6,737.4 $ 6,269.3 Short-term debt and current portion of long-term debt (77.1) (683.6) Long-term debt, less curre