Post on 14-Apr-2018
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2010 Fourth Quarterand Full Year Results
Pho
tos:
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ipPho
tolibrary,
Jean
Gaumy
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Harry
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Pa
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February 17, 2011
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2Full Year 2010 Results
2010 Year in Review
2010 Financial Highlights
Outlook
Annex
Contents
I.
II.
III.
IV.
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3Full Year 2010 Results
2010 Year in ReviewII.
I.
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4Full Year 2010 Results
2010 Key Achievements
Good execution drove 10.2% Group operating margin
Backlog increased by 1.2 bil lion to 9.2 bil lion
Reinforced strategic investments and R&D
Net cash of 1.3 bil lion
Recommend dividend increase by 0.10
to 1.45 per share
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5Full Year 2010 Results
Onshore/Offshore
2010 Major Projects Delivered to Clients
Subsea
Cascade & Chinook in the Gulf of Mexico
Jubilee in Ghana
Tupi gas export pipeline in Brazil
Talisman Auk & Burghley in the North Sea
Last LNG trains in Qatar and Yemen Last train of Khursaniyah gas plant, Saudi Arabia
Dung Quat refinery, Vietnam
Gdansk refinery, Poland
Biodiesel plant, Singapore
Lower Zakum gas processing platform, UAE
P-51 semi-sub & FLNG FEED, Brazil
Strong execution drove profitability
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6Full Year 2010 Results
MalaysiaPetronasPetronas FLNG
BrazilPetrobrasLogistic support
contracts
Gulf of Mexico5 IOCs*MWCS
AustraliaShellPrelude FLNG
Latin AmericaPDVSA / CupetCienfuegos
Refinery
CountryClientProject
Strategic FEEDs / Services
CanadaCNRLDCU
BrazilShellBC10 phase 2
AngolaAcergyClov Umbilicals
AustraliaBHPMacedon
VenezuelaPDVSAMariscal Sucre
IndiaHPCLVisakh refinery
Gulf of MexicoChevronJack St. Malo
Neutral Zone between
Saudi Arabia and Kuwait
Khafji Joint
OperationsKJO
TurkmenistanPetronasBlock 1 Gas
Development
USAValeroMc Kee &
Memphis
UKBPDevenick
EgyptBurullusWDDM Phase 8a
North SeaBP, BG,
Statoil
Several Frame
Agreements
CountryClientProject
Diversified / Medium-sized
BrazilPetrobrasIPB Papa-Terra
AlgeriaSonatrachAlgiers Refinery
NorwayStatoilMarulk
QatarQatargas 1PMP
UKTotalIslay
BrazilPetrobrasTupi Pilot
CountryClientProject
Flagship / Large
Well-Diversified Portfolio of New Contracts
2010
*IOCs: International Oil Companies
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7Full Year 2010 Results
Renewed and Growing Backlog
Backlog across segments
Subsea
Offshore
Onshore
2008 20092007
37%
6%
57%
49%
6%
45%
38%
6%
54%
9,390
7,208
8,018
million
34%
12%
9,228
2010
56%
Recent backlog
9,228 mi llion
2010
2009
2008
2007
56%35%
4%
5%
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8Full Year 2010 Results
Continued Strategic Investments
2007 2008 2009 2010
Net R&D expenditure*
54
4542
57
2007 2008 2009 2010
262
401 424
Capex & Investments504
*R&D costs supported by Technip, excluding project
related R&D costs
2010 key achievements million
1st Reeled heated pipe-in-pipe: Islay
1st IPB** flexible in Brazil: Papa-Terra
Brazilian built flexlay vessel: Skandi Niteroi
Malaysian yard: MHB (Petronas)
MHB
**IPB: Integrated Production Bundles, proprietary technology
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9Full Year 2010 Results
Fourth Quarter Operations &
2010 Financial Highlights
II.
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10Full Year 2010 Results
Fourth Quarter Subsea Operational Highlights
Successfully completed offshore operations: Talisman AUK & Burghley in the North Sea
Tupi gas export line in Brazil
Jubilee in Ghana
West Delta Deep Marine phase 7 in Egypt
Several works with Skandi Arctic in the North Sea
Offshore operations in progress:
Block 31 and Pazflor in Angola
Asiaflex plant was inaugurated by the Malaysian Prime Minister and initial
production started
Asset activity
Vessel utilization rate was 76% compared with 81% a year ago
Good activity continued at flexible pipe production units
Brazilian-flagged Skandi Vitoria successfully completed first offshore operations
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11Full Year 2010 Results
Fourth Quarter Onshore/Offshore Operational Highlights
Projects delivered to client: Last of Qatar LNG trains
Gdansk refinery, Poland
Lower Zakum gas processing facilities offshore Abu Dhabi
Biodiesel plant in Singapore
FEED for Brazilian Floating LNG
Pre-commissioning/Commissioning & start-up activities in progress
Pre-commissioning started on Biodiesel plant for Neste Oil in Rotterdam
Work in progress:
Saudi Arabia: Jubail refinery United Arab Emirates: Asab 3
Turkmenistan: Block 1 Gas development
Qatar: PMP
China: Yinchuan, Ningxia LNG
Brazil: P-56 semi-submersible and P-58 / P-62 FPSOs
FEED activities in progress:
Floating LNG FEED for Shell's Prelude field near Australia
Gas processing platform for Wheatstone, offshore Australia
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12Full Year 2010 Results
Fourth Quarter Order Intake & Backlog Highlights
Order intake
1Q 10
720
440
4Q 10
773
2Q 10 Dec. 31
2010
Sept. 30
2010
Backlog
3,1113,141
Order intake
1,774
749
Backlog
6,1175,361
1Q 10 4Q 102Q 10 Dec. 31
2010
Sept. 30
2010
Onshore/Offshore Order intake
Algiers refinery, Algeria
Offshore EPCM contract in Venezuela
Several small and medium-sized projectsnotably onshore in Canada and Australia
3,053
Dec. 31
2009
4,965
Dec. 31
2009
Subsea Order Intake
Brazil: 91km gas export pipelines
BC10 phase 2 EPCI
Charter renewal
Clov umbilicals, Angola
Jack & St. Malo development fields, GoM
897
million
698
3Q 10
906
3Q 10
Total 2010: 2,631
Total 2010: 4,326
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13Full Year 2010 Results
Full Year Financial Performance million (audited)
* from recurring activities
Revenue
(5)%
FY 09
2,7322,866
FY 10
Subsea Onshore/Offshore
Revenue
(7)%
3,3503,590
+8%
207191
+85bp
6%5%
Operating income*
(14)%
457533
(187)bp
17%19%
Operating income*
FY 09 FY 10 FY 09 FY 10
FY 09 FY 10
FY 09 FY 10 FY 09 FY 10
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14Full Year 2010 Results
Full Year 2010
Group Financial Highlights
(1) calculated as operating income from recurring activities before depreciation and amortization(2) from recurring activities
(3) 2009 included 245m exceptional provision for TSKJ matter
3.811.59Diluted EPS ()
1.451.35Dividend per share ()
(5.6)(247.5)Other Operating Income (3)
2.4(8.1)Minority Interests
-4.7Income of Equity Affiliates
594.6373.2Profit Before Tax
(20.1)(60.7)Financial Result
417.6170.4Net Income
10.2%10.5%Operating margin (2)
12.8%14.0%EBITDA margin
(179.4)(194.7)Income Tax
620.3676.7Operating Income (2)
777.3900.8EBITDA (1)
6,081.96,456.0Revenue
FY 09 million
30.2% effective tax rate
Lower IFRS impacts
+ 0.10
Operating Profitability above
10% for the second year running
FY 10
Lower one-off charges
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15Full Year 2010 Results
901.8Increase in Gross Debt
1,332.3Net Cash as of December 31, 2010
450.5Increase in Gross Cash
(114.7)Share Acquisitions
157.6Others
(143.6)Dividend Payment
(500.9)Change in Working Capital
(388.9)Capex
539.2Operating Cash Flow
1,783.6Net Cash as of December 31, 2009
12 months million
MHB investment
Includes 174 million TSKJ payments
Net Cash Flow Statement
Short-term debt was refinanced to 5 &
10 year maturities
2009 dividend per share: 1.35
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16Full Year 2010 Results
OutlookII.III.
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17Full Year 2010 Results 1717
Todays View: 2011 Business Environment
Political uncertainty in
North Africa Continued tendering
across the Gulf of Guinea
Africa
Investment in refining andpetrochemicals
Promising market for
flexible pipe & umbilical
solutions
Strong momentum in gas-
related projects
India/Asia Pacif ic
Some activity in Canadian oil sands
Limited opportunities in US onshore
North America
Onshore very slow
Increasing focus on
renewable energies
Europe
Momentum in major projects limited
by drilling permits
Gulf of Mexico
Positive trend continues
Tendering turning to awards
North Sea
Strategic investments continueacross region including offshore
Weighted towards Saudi Arabia
Middle East
Several onshore/offshore
projects moving forward
Non pre-salt work active
Flexible pipe technologies
used for both pre-salt &
traditional fields
Strong focus on logistics &
local content
High level of tendering for
projects & assets
Onshore opportunities
Brazil
Latin America
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18Full Year 2010 Results
2011: Focus on Sustainable & Profitable Growth
Strategic Priorities
Balanced, profitable backlog
Key differentiating assets
Local content
Technology
Vertical integration
Execution capability
2011 YTD Key Initiatives
Capitalize on worldwide footprint
Investment in wind turbine
technology
Reinforcing steel tubes umbilicals
capability
Dedicated flexlay vessel for
Asian market
New high-end flexible
manufacturing plant in Brazil
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19Full Year 2010 Results
Four New Growth Initiatives for 2011
1. Expansion of steel tube
umbilicals capability
2. Dedicated newbuild flexlay vessel
for Asian market
3. High-end flexible manufacturing
in Brazil
4. Strategic foothold in offshore
wind market
1. Technips Umbilicals capacity
Houston
(GoM) Lobito(West Af rica)
Asiaf lex
(Asia Pacific)
Newcastle
(North Sea)
2. Newbui lt vessel for Asian market
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20Full Year 2010 Results
20
3. Expansion of Brazil Manufacturing Footprint
Infield lines Export lines
Buoyancy can FSHR(2), Technip's hybrid system
(1): Integrated Production Bundle
(2): Free Standing Hybrid Riser
Flexible riser & jumper
Rigid riser/flowline/export
IPB flexib le pipe
Flexible flowline
IPB(1)
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21Full Year 2010 Results
R&D program on vertical-axisfloating wind turbine
4. Strategic Foothold in Offshore Wind
Technips
priorities
UK-based subsea wind cable-
installation company
Subocean acquisition: 2011 Vertiwind project: 2011
Leverage Technip's engineering, project management expertise
and installation know-how
Develop skills & assets, plus relevant partnerships
Initial focus on European market
World's first full-scale floating
wind turbine
Hywind project: 2009
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22Full Year 2010 Results
Technips Backlog by Geography and Activity
By Geography
Europe / Russia
Central Asia
AfricaAsia
Pacific
Americas
Middle
East
18%
32%
8%
24% 18%
Market Split
21%7%
35%
11%
25%
Deepwater
>1,000 meters
PetrochemsOther (1%)
Gas / LNG
Refining /Heavy Oil
Shallow Water
Current business is diversified across key growth markets
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23Full Year 2010 Results
9,227.94,986.31,130.93,110.7Total
959.9506.2103.0350.72013+
3,042.21,918.5522.9600.82012
2,561.6
Onshore
5,225.8505.02,159.22011
GroupOffshoreSubsea
Solid, Profitable Backlog with Good Visibili ty
million (not audited)
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24Full Year 2010 Results 24
2011 Full Year Outlook*
Improved visibil ity in the last three months allows us to revise our initial view
upwards:
Group revenue around 6.5 - 6.7 billion
Subsea revenue around 2.6 - 2.7 bil lion
Subsea operating margin above 15%
Onshore/Offshore combined operating margin between 6.0% and 6.5%
*at current exchange rate
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25Full Year 2010 Results
AnnexII.IV.
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26Full Year 2010 Results
Group Balance Sheet
Dec. 31, 2009
2,591.7Other Assets
4,146.0Fixed Assets
4,551.6Other Liabilities
1,773.4Financial Debt
3,202.1Shareholders Equity
(including minority interests)
10,222.0Total Assets
3,105.7
Dec. 31, 2010
Cash & Cash Equivalents
million (audited)
10,222.0Total Shareholders Equity and Liabilities
378.6Construction Contracts
694.9Construction Contracts
2,109.7
3,646.0
4,004.6
872.7
2,717.1
8,570.0
2,656.3
8,570.0
158.0
975.6
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27Full Year 2010 Results
Subsea Fourth Quarter Figures
+9%
4Q 09
714656
4Q 10
+6.9%
165154Margin
(195)bp
16.2%18.1%
4Q 09 4Q 10 4Q 09 4Q 10
Revenue
Operating income*
* from recurring activities
million
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28Full Year 2010 Results
Onshore Fourth Quarter Figures
+23%804653
* from recurring activities
5747
7.0%
4Q 09 4Q 10
4Q 09 4Q 09
7.1%
Revenue
Operating income*
million
4Q 10 4Q 10
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29Full Year 2010 Results
Offshore Fourth Quarter Figures
+85%
249
135
* from recurring activities
562.1%
4.1%
4Q 09 4Q 10
4Q 09 4Q 10 4Q 09 4Q 10
Revenue
Operating income*
million
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30Full Year 2010 Results
Technip Today
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31Full Year 2010 Results 31
Bringing Innovative Solutions to Clients in 3 Segments
Worldwide leadership
Unique vertical integration Design & Project Management Manufacturing & Spooling Installation R&D
First class assets and
technologies Manufacturing plants High performing vessels Advanced rigid & flexible pipes
Innovative engineering
capabilities
Proprietary platform
design
Proven track record in
engineering &
construction
Strong reputation with
customers & business
partners
Project execution expertise
High added-value process
know-how
Subsea Offshore Onshore
TPG 500 Uni dec k Sem i-s ub mers ibl e Spar EDP FPSO/FLNG
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32Full Year 2010 Results
X Capital intensive:
fleet and manufacturing units
X Vertical integration from engineering
to manufacturing & construction
Two Complementary Business Models
Driving Financial Structure and Performance
X Negative capital employed:
low fixed assets
X High degree of outsourcing
& sub-contracting
* from recurring activities
FY 09
533457
FY 10
million
Operating Income*
18.6%
FY 09 FY 10
16.7%
Operating Margin*
FY 09
191 207
FY 10
million
CombinedOperating Income*
FY 09 FY 10
CombinedOperating Margin*
X Negative working capital
Subsea Offshore/Onshore
5.3%6.2%
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33Full Year 2010 Results 33
Technips Worldwide Presence
Aberdeen
Paris
St. Johns
Luanda
Rio de Janeiro
Houston
Mumbai
Kuala Lumpur
Perth
Lagos
Vitria
Los Angeles
Caracas
Dande
Lobito
Port Harcourt
Barcelona
Lyon
RomeAthens
The HagueDsseldorf
St. PetersburgEvanton
LondonNewcastle
Abu Dhabi
Doha
Chennai Bangkok
Singapore
Jakarta
Balikpapan
Shanghai
Pori
Le Trait
Bogota
New Delhi
Regional Headquarters / Operating centers
Spoolbases
Manufacturing plants (flexible pipelines)
Manufacturing plants (umbilicals)
Construction yard
Tanjung Langsat(operational in 2010)
Calgary
Monterrey
Oslo
Orkanger
Stavanger
Services base
Baku
Angra Porto
Seven Empowered Regions
L Di ifi d C t B B l d B t
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34Full Year 2010 Results
Large Diversified Customer Base Balanced Between
National Oil Companies and International Oil Companies
S l E ti
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35Full Year 2010 Results
Installation Manufacture & Fabricate
R&D
Manufacturing
plants on all
continents
Flexible plants:
France, Brazil, Malaysia
Rigid spoolbases:UK, Norway, USA, Angola
Logist ic bases:
Brazil
Umbilical plants:
UK, USA, Angola
State-of-the-art
fleet designed to:
Install pipes
Heavy
construction
Diving support
Seamless Execution
Subsea, a Unique Vertically Integrated Business Model
Close to
production sites
Proprietary
technology
Design & Project Management
Dedicated
engineeringteams around
the world
Strategic locations
Paris
Aberdeen
OsloHouston
Kuala Lumpur
Perth
Rio de Janeiro
2
World-class
R&D facilities
Le Trait (France)Aberdeen (UK)
Newcastle (UK)
Rio & Vitoria (Brazil)
1
34
f
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36Full Year 2010 Results
High Performing Fleet
Pipelay Vessels
Heavy
Construction
Vessels (HCV)
Diving Support
Vessels (DSV)
Deep Blue Apache II Deep Energy
Deep Pioneer Sunrise 2000 Skandi Vitoria
Alliance
Wellservicer
Seamec 2
Seamec 3Venturer
Seamec 1 Orelia Seamec Princess
2 major
vessel
upgrades
Skandi Arctic Skandi Achiever
2 new
assets
Deep Constructor Skandi Niteroi
3 units
5 units
10 units
J bil E l f S l P j t E ti
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37Full Year 2010 Results
Jubilee, an Example of a Seamless Project Execution
Houston
Paris
Multi vessel
installation
(incl . Deep Blue
& Deep Pioneer)
Jubilee
First offshore fielddeveloped in Ghana
Engineering,Fabrication andInstallation projectsinvolving Technipscenters in:
Paris,
Houston,
Angola
Fabrication of flexiblepipes in Le Trait,France
Mobilization ofDeep Blue andDeep Pioneer foroffshore campaign
Le Trait
Fabrication o fflexible pipes at
Le Trait
Angola
Coordinated
Engineering
teams from the
Subsea
Division
Ghana
T h i A i P ifi R i l H b
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38Full Year 2010 Results
Technips Asia Pacific Regional Hub
Enhance local content and cl ient proximity
Provide proven technology, world class engineering and execution
Reinforce regional capability: Onshore/Offshore/Subsea
Technips
priorities
Major fabrication yard in South East Asia
Centrally located
Strong platform fabrication track record
Support from MISC/PETRONAS
Collaboration agreement to provide EPCI
capability and technology to PETRONAS
Investment in MHB
1st and only Asian flexible/umbilical
manufacturing plant
Offshore logistic base
Dedicated local installation capacity
Asiaflex
Perth
Bangkok
Shanghai
Singapore
Jakarta
Balikpapan
Kuala Lumpur
Technips Operating Centers
Flexible/Umbilical manufacturing p lant
MHBs yard
3,750 people
Founded in 1982
Technip in Asia Pacific
St t f th A t T h l i ll B i S t
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39Full Year 2010 Results
Ethylene IncreasedEfficiency
Cryogenic RigidPipe-in-Pipe
Flow-AssuranceUltra Deepwater
State-of-the-Art Technology in all Business Segments
Unrivalled high technological assetsNumerous proprietary technologies and
partnerships with licensors
LNG unloading/
long distanceapplications
Heated and moni tored
Flexible Pipes
3,000m (7- 11 )
Flexible Pipes
Heated Rig id
Pipe-in-Pipe
Design,
manufacture &qualify flexible
pipes for 3,000 m
water depth
Integration of gas
lift tubes, electricalcables or optic
fibers in the
production r iser
New Electrical
Trace Heatingtechnology
qualified by
major clients
Increasing
ethylene andrefining
efficiency
Subsea Offshore Onshore
Reeled Heated Pipe in Pipe
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40Full Year 2010 Results
Technips ETH* technology Islay Project, UK North Sea
Reeled Heated Pipe-in-Pipe
6 km tie-back in 122 meters of water
Major challenge: hydrates formation
EPCI project, valued in excess of
60 million
Offshore deployment in mid-2011
with Technips fleet
Flow assurance: heated pipe-in-pipe
Fibre optic temperature monitoring
Fast installation: reeled pipe-in-pipe
Built-in directly onshore, at our spoolbases
Higher insulation efficiency: lower power
requirements
*ETH: Electrical Trace Heating
FLNG1 an Innovative Solution for our Customers
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41Full Year 2010 Results
Synergies of Technips broad ranging
strengths in all three business segments
FLNG1, an Innovative Solution for our Customers
FLNG is a commercially attractive and
environmentally sensitive approach for
offshore gas fields in remote locations
Technips unique combination of skills and
technology:
LNG process
Offshore facilities
Subsea infrastructures
Shell: 15 year master agreement
Petrobras FEED awarded at the end of 2009
1,476 x 230 feet, (450 x 75 meters), 3.5 mtpa LNG capaci ty
1: Floating Liquified Natural Gas
Sh h ldi St t D b 2010
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42Full Year 2010 Results
Shareholding Structure, December 2010
Listed on NYSE Euronext ParisSource: IPREO December 2010
North America
24.8%
Treasury Shares
2.7%
Employees
2.2%
IFP
2.7%
Rest of World18.9%
French Institutional Investors20.3%
Individual shareholders
6.1%
Others
4.6%
UK & Ireland
12.3%
Institutional
Investors
81.7%
FSI
5.4%