Slide 1: FY 2021 Results Presentation
FY 2021 RESULTS PRESENTATION MARCH 1ST 2022 JUAN LLADÓ – EXECUTIVE CHAIRMAN EDUARDO SAN MIGUEL - CEO
Slide 2: Index
INDEX 1) EXECUTIVE CHAIRMAN REMARKS 2) 2021 RESULTS 3) 2022 GUIDANCE 4) OUTLOOK AND MAIN STRATEGIC LINES 2
Slide 3: Executive Chairman Remarks
EXECUTIVE CHAIRMAN REMARKS EXECUTIVE CHAIRMAN Juan Lladó 3
Slide 4: TR's three main accomplishments
EXECUTIVE CHAIRMAN REMARKS TR’s three main accomplishments Organization Financial position Backlog strengthened reinforced rebuilt ▪ Highly experienced team ▪ European funds support ▪ €4.8bn awards in last through SEPI 14 months ▪ Pilot the new growth phase ▪ Diversified and de-risked 4
Slide 5: TR's New Organization
TR’S NEW ORGANIZATION Experienced management team to address the new growth stage ▪ CEO: Eduardo San Miguel o Former CFO o 17 years of experience in TR Executive Chairman Juan Lladó ▪ Deputy CEO and Commercial and Strategy Deputy CEO, General Manager: Arturo Crossley CEO Commercial and Strategy Edua
Slide 6: SEPI Funds Will Support Our Growth Strategy
SEPI FUNDS WILL SUPPORT OUR GROWTH STRATEGY European requirements Why is TR strategic? o Leading company in the design and o Heavily impacted by Covid construction of industrial plants in the energy sector o Solvent and viable company o For both traditional and new energies o Strategic company for S
Slide 7: New Awards: Diversified and De-risked
NEW AWARDS: DIVERSIFIED AND DE-RISKED €4.8bn awards Petrochemicals Natural Gas Power & Water Clean Fuels Energy transition €2,050m €1,150m €900m €470m €200m ▪ Orlen €900m ▪ Qatargas €700m ▪ GE Poland €300m ▪ Gazprom €240m ▪ G.I.Dynamics €200m ▪ Sasa €600m ▪ ADNOC €450m ▪ Siemens ▪ YPF €230m Mexico €
Slide 8: New Awards: Diversified and De-risked
NEW AWARDS: DIVERSIFIED AND DE-RISKED €4.8bn awards Petrochemicals Natural Gas Power & Water Clean Fuels Energy transition €2,050m €1,150m €900m €470m €200m ▪ Orlen €900m ▪ Qatargas €700m ▪ GE Poland €300m ▪ Gazprom €240m ▪ G.I.Dynamics €200m ▪ Sasa €600m ▪ ADNOC €450m ▪ Siemens ▪ YPF €230m Mexico €
Slide 9: New Awards: Diversified and De-risked
NEW AWARDS: DIVERSIFIED AND DE-RISKED €4.8bn awards Petrochemicals Natural Gas Power & Water Clean Fuels Energy transition €2,050m €1,150m €900m €470m €200m ▪ Orlen €900m ▪ Qatargas €700m ▪ GE Poland €300m ▪ Gazprom €240m ▪ G.I.Dynamics €200m ▪ Sasa €600m ▪ ADNOC €450m ▪ Siemens ▪ YPF €230m Mexico €
Slide 10: New Awards: Diversified and De-risked
NEW AWARDS: DIVERSIFIED AND DE-RISKED €4.8bn awards Petrochemicals Natural Gas Power & Water Clean Fuels Energy transition €2,050m €1,150m €900m €470m €200m ▪ Orlen €900m ▪ Qatargas €700m ▪ GE Poland €300m ▪ Gazprom €240m ▪ G.I.Dynamics €200m ▪ Sasa €600m ▪ ADNOC €450m ▪ Siemens ▪ YPF €230m Mexico €
Slide 11: New Awards: Diversified and De-risked
NEW AWARDS: DIVERSIFIED AND DE-RISKED €4.8bn awards Petrochemicals Natural Gas Power & Water Clean Fuels Energy transition €2,050m €1,150m €900m €470m €200m ▪ Orlen €900m ▪ Qatargas €700m ▪ GE Poland €300m ▪ Gazprom €240m ▪ G.I.Dynamics €200m ▪ Sasa €600m ▪ ADNOC €450m ▪ Siemens ▪ YPF €230m Mexico €
Slide 12: Fresh, De-risked and Diversified Backlog
FRESH, DE-RISKED AND DIVERSIFIED BACKLOG €11.1bn YTD backlog Advanced projects Reprogrammed projects New awards 12% of backlog 47% of backlog 41% of backlog ▪ Delivering to full client ▪ Optimized execution scenario ▪ Achieving de-risked execution satisfaction even under COVID ▪ Either finished proc
Slide 13: 2021 Results / 2022 Guidance
2021 RESULTS 2022 GUIDANCE CEO Eduardo San Miguel 13
Slide 14: 2021 Results
2021 RESULTS ▪ Covid: o Slow milestone achievement Sales €2.808m o Projects reprogramming EBIT €-157m ▪ Teesside project ▪ Covid costs not recovered Adjusted EBIT* €48m ▪ Lower fixed costs absorption ▪ Teesside project outflow Net cash position €-76m ▪ Covid: o Slow pace of project execution o Slow
Slide 15: Great Management Effort to Offset Covid Impact
GREAT MANAGEMENT EFFORT TO OFFSET COVID IMPACT Figures correspond to accumulated 2020 – 2021 years DESPITE 40% LOWER SALES THAN … AND WITHOUT TEESSIDE WE EXPECTED IN 2020-2021… ALMOST BROKE EVEN >€10bn -40% €6bn 2020-21 2020-21 EBIT without Actual EBIT Teesside €-17M Sales in FY 2020-21 €-115M 2019
Slide 16: SEPI Funds Will Support Our Growth Strategy
SEPI FUNDS WILL SUPPORT OUR GROWTH STRATEGY Terms and conditions 4.5 years reference tenor subject to business evolution €340m injection of funds from SEPI support Dividends restricted until loans are fully repaid €175m participative loan €165m ordinary loan: (booked as equity): o 4.5 year bullet pa
Slide 17: 2022 Guidance: Confirmed
2022 GUIDANCE: CONFIRMED ▪ COVID scenario: progressively back to normality ▪ Quick restart of reprogrammed projects ▪ Projects awarded in 2021 at initial stages ▪ TR-ansforma plan continues to optimize operations and costs 2022 Guidance ▪ Oil majors stepping up investment plans on the back of strong
Slide 18: Working Capital
WORKING CAPITAL Net cash ▪ Working capital deterioration in 2020 and 2021 €M due to Covid: 371 o No awards in 2020 o Slow pace of projects 197 o Slow resolution of negotiations o Advances to suppliers to support operations -76 ▪ Strong management focus in 2022 to convert working capital into cash: 2
Slide 19: Raw Materials Environment
RAW MATERIALS ENVIRONMENT ▪ 2022 guidance already includes raw materials impact ▪ New raw materials pricing already included in recent and current bids ▪ Agreements with nominated subcontractors in bidding stage ▪ Clients open to partially share extraordinary costs TR is proactively ▪ On-going imple
Slide 20: Outlook and Main Strategic Lines
OUTLOOK AND MAIN STRATEGIC LINES EXECUTIVE CHAIRMAN Juan Lladó 20
Slide 21: Promising Business Outlook
PROMISING BUSINESS OUTLOOK €45bn pipeline in 2022 ▪ Strong energy demand results in high prices that support rising investment activity for 2022 and beyond ▪ Opportunities in energy transition becoming tangible and material ▪ Increasing opportunities in petrochemicals and natural gas ▪ TR’s engineer
Slide 22: TR's Main Strategic Lines
TR’S MAIN STRATEGIC LINES 1 Accelerate energy transition Mid-term target 2 Reduce construction risk Awards €5B 3 Diversify towards less mature markets Sales €5B 4 Increase efficiency and digitalization EBIT margin 4% 5 Spanish technology hub 22
Slide 23: Tecnicas Reunidas
y TECNICAS REUNIDAS
Slide 24: 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. This document contains forward-looking statements of the Company and/or its management. These forward looking statemen
Slide 25: Pipeline Analysis
PIPELINE ANALYSIS Pipeline per division Pipeline per calendar Pipeline per geography (expected award date) 8% 7% 5% Clean Fuels 5% Middle East 5% 3% 22% Asia Pacific Petrochemical 25% H1 2022 31% Europe 18% 46% Energy Transition H2 2022 LatAm Natural Gas H1 2023 52% North America Other 8% H2 2023 Re