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NATIXIS SECURITIES OIL SERVICE CONFERENCE – Technip

Technip · Sep 22, 2008 · 53 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. NATIXIS SECURITIES OIL SERVICE CONFERENCE – Technip – slide 1
    Delivering Growth and Profit Thierry Pilenko, CEO Natixis Securities Oil Service Conference September 22, 2008
  2. NATIXIS SECURITIES OIL SERVICE CONFERENCE – Technip – slide 2
    Contents I. Technip at a glance II. Market Position & Trends III. Financial Performance IV. Strategy Going Forward V. Risk Management Annex 2
  3. NATIXIS SECURITIES OIL SERVICE CONFERENCE – Technip – slide 3
    I. Technip at a glance 3
  4. NATIXIS SECURITIES OIL SERVICE CONFERENCE – Technip – slide 4
    Technip Today Worldwide leader in engineering, project management and technologies, serving the oil & gas industry for 50 years 23,000 employees in 46 countries, Industrial assets on 5 continents, a fleet of 16 vessels (19 vessels end…
  5. NATIXIS SECURITIES OIL SERVICE CONFERENCE – Technip – slide 5
    Strategic Framework SUBSEA OFFSHORE ONSHORE New organization based on 6 regions with full P&L accountability Vertically integrated Subsea business unit More balanced business per segment, region and market Investing in…
  6. NATIXIS SECURITIES OIL SERVICE CONFERENCE – Technip – slide 6
    Two Complementary Business Models SUBSEA OFFSHORE ONSHORE u Capital intensive: u Negative capital employed: fleet and manufacturing units low fixed assets u Negative working capital u Negative working capital u Vertical…
  7. NATIXIS SECURITIES OIL SERVICE CONFERENCE – Technip – slide 7
    Subsea Services Architectures Products Deep Water Installation Flexible Pipes & Construction (in house manufacturing) Rigid Pipelines Pipelaying u Vertical integration Inspection, u In-house technologies Umbilicals…
  8. NATIXIS SECURITIES OIL SERVICE CONFERENCE – Technip – slide 8
    Offshore TPG 500 Unideck Semi-submersible Spar EDP FPSO u Engineering u Innovative concepts u Proprietary platform design u Proven track record in engineering and construction 8
  9. NATIXIS SECURITIES OIL SERVICE CONFERENCE – Technip – slide 9
    Onshore Refining & Heavy Oil Gas Processing Petrochemicals Clean Fuels Gas Treatment Ethylene Grass Roots GTL Polyolefins Heavy Oil upgraders LNG Aromatics Hydrogen Fertilizers u Project management know-how u Strong process…
  10. NATIXIS SECURITIES OIL SERVICE CONFERENCE – Technip – slide 10
    Worldwide Presence Orkanger Stavanger Pori Evanton Aberdeen Oslo St. Petersburg Newcastle Calgary London The Hague St. Johns Dsseldorf Le Trait Paris Lyon Los Angeles Rome Barcelona Athens Houston Abu Dhabi Shanghai…
  11. NATIXIS SECURITIES OIL SERVICE CONFERENCE – Technip – slide 11
    Technip: a Fleet of 19 Vessels by 2010 Current fleet: 16 vessels 3 new vessels New build Diving Support Vessel Class III Deep Blue Deep Pioneer Sunrise 2000 Venturer Largest & most sophisticated in its category Statoil frame…
  12. NATIXIS SECURITIES OIL SERVICE CONFERENCE – Technip – slide 12
    Multi-local Engineering Capacity 3 million 8.5 million Aberdeen Oslo St. Petersburg The Hague Calgary St. Johns Paris Lyon Barcelona Rome 4.5 million Los Angeles Athens Houston Abu Dhabi Shanghai Doha New Delhi Monterrey…
  13. NATIXIS SECURITIES OIL SERVICE CONFERENCE – Technip – slide 13
    Attract and Develop Qualified Resources Worldwide Technip headcount by location 23,000 Middle East Asia-Pacific India 18,000 Russia, Central Asia +25% CAGR Africa South America North America Other Europe Germany 6,000…
  14. NATIXIS SECURITIES OIL SERVICE CONFERENCE – Technip – slide 14
    II. Market Position & Trends 14
  15. NATIXIS SECURITIES OIL SERVICE CONFERENCE – Technip – slide 15
    Technips Strong Relationships with both IOCs & NOCs Gas Refining, Offshore Subsea processing / Hydrogen, Petrochems Recent projects examples facilities LNG Heavy oils P P P P Shah Deniz, Greater Plutonio, Secco PE P P P P…
  16. NATIXIS SECURITIES OIL SERVICE CONFERENCE – Technip – slide 16
    Market evolution: Subsea Key Indicators Market by Region Umbilicals Installed Subsea Trees (km) (units by onstream year) 10.0 10.3 9.6 Asia Pacific 7.9 USA 8,000 800 7.5 Brazil 5.9 6,000 600 Africa & Med. 4,000 400 Mid. East,…
  17. NATIXIS SECURITIES OIL SERVICE CONFERENCE – Technip – slide 17
    Market evolution: Onshore Technip Backlog Anticipated Market Growth 12 (mt) as of June 30, 2008 4,073 million Ethylene 8 capacity addition 4 Petrochems Other Gas processing 0 Ethylene Gas treatment 2005 2012 Polyolefins 4%…
  18. NATIXIS SECURITIES OIL SERVICE CONFERENCE – Technip – slide 18
    III. Financial Performance 18
  19. NATIXIS SECURITIES OIL SERVICE CONFERENCE – Technip – slide 19
    2005 - 2007 Financial Performance in millions (audited) Revenue 7,887 6,927 5,376 2005 2006 2007 EBITDA1, EBIT and Net Income EBITDA EBIT Net Income 493 410 374 333 231 247 200 93 126 2005 2006 20072 2005 2006…
  20. NATIXIS SECURITIES OIL SERVICE CONFERENCE – Technip – slide 20
    1H 2008 vs 1H 2007 Financial Performance in millions (not audited) Revenue 3,619 3,641 1H 2007 1H 2008 EBITDA1, EBIT and Net Income EBITDA EBIT Net Income 366 307 294 236 193 148 1H 2007 1H 2008 1H 2007 1H 2008…
  21. NATIXIS SECURITIES OIL SERVICE CONFERENCE – Technip – slide 21
    Technips Financial Performance (not audited) Operating Margin per Segment 18.8% SUBSEA 15.8% 10.3% 9.7% 8.5% 7.3% 6.6% 5.4% OFFSHORE 5.1% 5.2% 4.8% 3.6% 3.5% 3.8% 3.2% 4.1% 2.2% ONSHORE 2.1% 2.7% 1.6% 2002 2003…
  22. NATIXIS SECURITIES OIL SERVICE CONFERENCE – Technip – slide 22
    Balancing backlog mix: segment, region and market Segment Region Market Asia Europe / Russia Onshore 68% Other Pacific Central Asia Petrochems 51% 7% 2% Deepwater 10% 22% Refining / Americas 18% 35% Heavy Oil 24% 6%…
  23. NATIXIS SECURITIES OIL SERVICE CONFERENCE – Technip – slide 23
    2008 Full Year Outlook* Revenue Subsea 2.7 billion Offshore / Onshore 4.7 billion Group 7.4 billion Operating Margin Subsea 18.0% Offshore / Onshore (combined) reaffirmed 3.8% Group 8.0% Net Cash Situation 1.1 - 1.3 billion at…
  24. NATIXIS SECURITIES OIL SERVICE CONFERENCE – Technip – slide 24
    IV. Strategy Going Forward 24
  25. NATIXIS SECURITIES OIL SERVICE CONFERENCE – Technip – slide 25
    Technips main Capex projects to fuel Subsea organic growth New DSV Capacity Increase 2010 Capacity New DSV (2007 - 2010) +20% 5,800 Vessels +40% Vessel-days/year Le Trait Flexible +40% 1,100 km/year* Pipes Houston Umbilicals…
  26. NATIXIS SECURITIES OIL SERVICE CONFERENCE – Technip – slide 26
    Technological Solutions to address new challenges: Deeper Water Spar Arctic Spar 2,000 2,000 1,500 1,500 Chukchi Sea 1,000 1,000 Houston 500 500 Barents Sea Orphan Basin 00 meters meters Nakika (Shell) Perdido…
  27. NATIXIS SECURITIES OIL SERVICE CONFERENCE – Technip – slide 27
    Technological Solutions to address new challenges: Floating LNG solutions Subsea services & product Cryogenic flexible pipe Processing system FPSO provider LNG carrier FPSO LNG (FLNG) Interface of technologies and…
  28. NATIXIS SECURITIES OIL SERVICE CONFERENCE – Technip – slide 28
    Onshore Technologies Development Hydrogen: LNG: Ethylene: Enhanced Heat Transfer Cryogenic rigid pipe-in-pipe Increased Selectivity 25 to 30% increase in Robust & heavy duty Increased efficiency CO2 hydrogen production No expansion…
  29. NATIXIS SECURITIES OIL SERVICE CONFERENCE – Technip – slide 29
    V. Risk Management 29
  30. NATIXIS SECURITIES OIL SERVICE CONFERENCE – Technip – slide 30
    Oil service market conditions Strong demand, yet Volatile raw material prices Persistent cost inflation Construction Wages Capex Workforce shortage Experienced engineers Welders Construction manual labours Worsening security…
  31. NATIXIS SECURITIES OIL SERVICE CONFERENCE – Technip – slide 31
    Technips Initiatives Reduce exposure to Procurement and Construction risks Promote alternative contractual forms: Engineering and Procurement as Lump Sum + Construction Management Increase reimbursable contracts versus Lump Sum…
  32. NATIXIS SECURITIES OIL SERVICE CONFERENCE – Technip – slide 32
    Results thus far Subsea Improved profitability to fund new capex for further development ROCE 15% annualized target obtained Well balanced geographic spread and contract size Dedicated business unit for global asset optimization and…
  33. NATIXIS SECURITIES OIL SERVICE CONFERENCE – Technip – slide 33
    Risk Management Going Forward Subsea Higher subsea content with sustained margins through technological differentiation Considering consolidation process to strengthen our market position Offshore/Onshore Grow activity:…
  34. NATIXIS SECURITIES OIL SERVICE CONFERENCE – Technip – slide 34
    Technip ISIN: FR0000131708 Bloomberg: TEC FP Reuters: TECF.PA SEDOL: 4874160 35
  35. NATIXIS SECURITIES OIL SERVICE CONFERENCE – Technip – slide 35
    Annex 36
  36. NATIXIS SECURITIES OIL SERVICE CONFERENCE – Technip – slide 36
    1H 2008 Financial Highlights 37
  37. NATIXIS SECURITIES OIL SERVICE CONFERENCE – Technip – slide 37
    First Half Income Statement in millions, (not audited) 3,640.5 3,619.3 +0.6% Revenue 366.2 307.3 +19.2% EBITDA(1) 294.4 +24.7% 236.0 Operating Income(2) 192.9 +30.6% 147.7 Net Income 1.83 +29.8% 1.41 EPS 1H 2007…
  38. NATIXIS SECURITIES OIL SERVICE CONFERENCE – Technip – slide 38
    Subsea in millions, (not audited) Segment 1,182 1,152 Revenue stable Revenue (2.6)% Revenue recognition on Agbami slipped, while MA-D6 provided good input 1H 07 1H 08 Segment 276 Strong operating income 219 24.0% Good…
  39. NATIXIS SECURITIES OIL SERVICE CONFERENCE – Technip – slide 39
    Offshore in millions, (not audited) Segment 406 Revenue declined 14.7% year-on-year as 346 expected Lower contribution from Akpo FPSO in second Revenue quarter 2008 and completion of Dalia FPSO in June (15)% 2007 1H 07 1H 08…
  40. NATIXIS SECURITIES OIL SERVICE CONFERENCE – Technip – slide 40
    Onshore in millions, (not audited) Revenue stable compared to last year Segment As major EPC lump sum contracts are executed 2,142 2,031 Revenue Operating margin continues to improve +6% Our de-risking strategy on new projects…
  41. NATIXIS SECURITIES OIL SERVICE CONFERENCE – Technip – slide 41
    Subsea Return on Capital Employed in millions Subsea Others** Group 2006 2007 1H 08 2006 2007 1H 08 2006 2007 1H 08 Non Current Assets 2,701 2,763 2,840 698 701 674 3,399 3,464 3 514 Working Capital and (601) (1,131) (1,165)…
  42. NATIXIS SECURITIES OIL SERVICE CONFERENCE – Technip – slide 42
    June 30, 2008 Backlog Estimated Scheduling* in millions Subsea Offshore Onshore Group 2H 2008 1,436 265 1,899 3,600 2009 1,243 160 1,939 3,342 2010+ 820 56 235 1,111 Total 3,499 481 4,073 8,053 *Excludes Block 31…
  43. NATIXIS SECURITIES OIL SERVICE CONFERENCE – Technip – slide 43
    Backlog by Contract Award Date as of June 30, 2008 Subsea Offshore Onshore 3,499 million 481 million 4,073 million 4% 6% 8% 7% 25% 34% 43% 25% 49% 56% 14% 29% < 2005 2005 2006 2007 1H 2008 44
  44. NATIXIS SECURITIES OIL SERVICE CONFERENCE – Technip – slide 44
    First Half Group Income Statement in millions, except EPS 1H 07 1H 08 Change ex. FX impact Revenue 3,619.3 3,640.5 0.6% 7.8% EBITDA* 307.3 366.2 19.2% 23.2% Operating Income from Recurring Activities 236.0 294.4 24.7% 28.0% Income…
  45. NATIXIS SECURITIES OIL SERVICE CONFERENCE – Technip – slide 45
    Group Balance Sheet in millions Dec. 31, 2007 June 30, 2008 FIXED ASSETS 3,279.1 3,319.5 OTHER ASSETS 2,418.7 2,452.2 CASH & CASH EQUIVALENTS 2,401.5 2,155.8 TOTAL ASSETS 8,099.3 7,927.5 SHAREHOLDERS EQUITY (incl. min.…
  46. NATIXIS SECURITIES OIL SERVICE CONFERENCE – Technip – slide 46
    First Half 2008 in millions Net Cash Flow Statement Net Cash as of December 31, 2007 1,704.3 Operating Cash Flow 268.9 Capex (147.8) Working Capital (172.3) Dividends payment (125.1) Others (62.1) Net Cash as of June 30,…
  47. NATIXIS SECURITIES OIL SERVICE CONFERENCE – Technip – slide 47
    Market Trends 48
  48. NATIXIS SECURITIES OIL SERVICE CONFERENCE – Technip – slide 48
    Solid fundamentals and outlook for the oil & gas industry Oil supply and E&P Capex evolution CAPEX in US billion mb/d 360 90 Global Oil Demand Growth 35% Production 80 of current 320 Depletion Effect * Capacity production 280…
  49. NATIXIS SECURITIES OIL SERVICE CONFERENCE – Technip – slide 49
    High Capex level required to increase production capacities Canadian Tar Sands LNG Demand Production O&G Expenditures mb/d bcm 4 (Average per year) 600 3 450 + 7% pa. 2 300 1 420 bn 150 + 10% pa. 0 12% 0 2005 2010 2015 2020…
  50. NATIXIS SECURITIES OIL SERVICE CONFERENCE – Technip – slide 50
    Continuous shift of oil & gas onshore markets towards the East Relative importance of Middle-East and Asia 2,380 Gboe 88 Mt 28 Mt 7.3 Mb/d 24 Mboe/d 100% Africa Europe & Eurasia 80% South America North America 60% 93%…
  51. NATIXIS SECURITIES OIL SERVICE CONFERENCE – Technip – slide 51
    Contract Risk Profiles Contractors Roles and Responsibilities 100% Construction/ Installation Contract Value Procurement Engineering/ Project Mgt 0% EPC EPCM EPCM E&P EPCM FEED LS LS LS LS Reimb. Reimb./LS Lower…
  52. NATIXIS SECURITIES OIL SERVICE CONFERENCE – Technip – slide 52
    Shareholder structure 53
  53. NATIXIS SECURITIES OIL SERVICE CONFERENCE – Technip – slide 53
    Shareholding structure as of December 31, 2007 Others 2.9% Treasury Shares French Institutional Investors 2.9% 16.3% Individual shareholders 5.6% IFP 2.9% Employees 2.4% Other Institutional Investors 67% Listed on…

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