TECHNIP Daniel Valot Chairman and CEO CHEUVREUX AUTUMN CONFERENCE Paris, France September 30, 2005
I. TECHNIP OVERVIEW II. 2005 BUSINESS TRENDS III. THE WAY FORWARD Cheuvreux Autumn Conference 2
I. TECHNIP OVERVIEW 1. Technip Today: What We Do 2. Global Network 3. Market Positioning 4. Ranking Cheuvreux Autumn Conference 3
1. Technip Today: What We Do SURF (Subsea Pipelines) Onshore Downstream Dalia SURF Qatargas II LNG Plant Sincor (Venezuela) Offshore Facilities Industries Dalia FPSO SPAR Harding TPG 500 Airbus A380 Assembly Plant…
2. Global Network: Engineering Centers, Yards & Plants Oslo Aberdeen St. Petersburg St. Johns The Hague Dsseldorf Los Paris Angeles Rome Baku Houston Qatar Shanghai New Delhi Abu Dhabi Mumbai Chennai Bangkok Caracas Kuala…
3. Technip: Well Positioned on the Fastest Growing Markets of the Oil and Gas Industry DEEP OFFSHORE Kikeh SPAR + SURF (Malaysia) P-52 SURF (Brazil) Akpo FPSO (Nigeria) Agbami SURF (Nigeria) LNG Yemen LNG RasGas III (Qatar)…
4. Technip's Ranking Among International Oil and Gas Contractors Revenues * (USD in Millions) 7,000 No. 1 6,000 5,000 6,313 4,000 3,000 No. 5 2,000 No. 7 2,153 1,000 1,482 1994 1999 2004 * Non-domestic oil and gas…
II. 2005 BUSINESS TRENDS 1. Strategic Initiatives Are Bearing Fruit 2. Order Intake at All-Time High 3. 2005 Updated Financial Targets Cheuvreux Autumn Conference 9
1. Strategic Initiatives Are Bearing Fruit INITIATIVE RESULT Ethylene Acquisition of KTI 9th & 10th Comp., Iran (2001) (1999) Ras Laffan, Qatar (2005) Yanbu, S. Arabia (2005) Deep Offshore Acquisition of Aker Subsea Pipelines:…
2. 2005 Order Intake at All-Time High Euros in Billions 8.0 5.1 2.7 9 Months 2004 Full Year 2004 9 Months 2005 Cheuvreux Autumn Conference 11
3. 2005 Updated Financial Targets (IFRS) Feb. 2005 Sept. 2005 Revenues: 4.8 4.9 billion 5.2 billion Operating Margin: 4.8% 4.8% Net Income: 112.4 million 112.4 million Strong cash generation should lead to a further…
III. THE WAY FORWARD 1. Market Fundamentals Are Changing 2. Market Conditions Are Improving 3. New Organizational Structure 4. Business Strategy Going Forward Cheuvreux Autumn Conference 13
1. Market Fundamentals Are Changing Upstream Upstream 2004/2003 Oil demand + 3.4 % Highest growth in 20 years World oil reserves 0% No growth OPEC spare capacity 2% Lowest level in 30 years (% of world demand) Downstream…
2. Market Conditions Are Improving Less volatility in the euro / dollar exchange rate Relative stabilization in most raw material markets Improving cooperation between oil companies and contractors Cheuvreux Autumn…
3. New Organizational Structure Following the acquisitions of 2001, the oil and gas business of the Group was managed by 2 divisions: offshore and onshore-downstream Integration of activities allows us now to merge these 2…
4. Business Strategy Going Forward Drivers Key Business Technips Technips Strategy Strategy Segments Maintain Create Near Term Long Term Leadership Leadership Growth Areas Growth Areas Deep Offshore Depletion of LNG conventional…
For more information, please contact: INVESTOR RELATIONS G. Christopher Welton Tel. +33 (0) 1 47 48 66 74 e-mail: cweltontechnip.com Xavier dOuince Tel. +33 (0) 1 47 78 25 75 e-mail: xdouincetechnip.com Cheuvreux Autumn…
IV. ANNEXES 1. The Workforce Leverage 2. Workforce Leverage and Economies of Scale Cheuvreux Autumn Conference 21
1. The Workforce Leverage TYPICAL LSTK CONTRACT On lump-sum turnkey (LSTK) Revenues contracts, in-house workforce costs account for 10% to 15% of the total contract value In-house workforce mobilization is sustained during a…
2. Workforce Leverage and Economies of Scale Estimated In-house Staff Needed to Generate 1 Billion Revenue from: 50 service contracts worth 20 million each: 2,500 10 LSTK contracts worth 100 million each: 850 1 LSTK contract…
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