Delivering Growth and Profit Thierry Pilenko, CEO Lehman Brothers CEO Energy/Power Conference September 3, 2008
Contents I. Technip at a glance II. Market Position & Trends III. Financial Performance IV. Strategy Going Forward Annex 2
I. Technip at a glance 3
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…
Strategic Framework SUBSEA OFFSHORE ONSHORE Organization based on 6 regions with full P&L accountability Vertically integrated Subsea business unit More balanced backlog per segment, region and market On going investment…
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 integration…
Subsea Services Products Deep Water Installation Flexible Pipes & Construction (in house manufacturing) Rigid Pipelines Pipelaying u Vertical integration Inspection, u In-house technologies Umbilicals Repair &…
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
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…
Worldwide Presence Orkanger Stavanger Pori Evanton Aberdeen Oslo St. Petersburg Newcastle Calgary London The Hague St. Johns Dsseldorf Le Trait Paris Lyon Rome Los Angeles Barcelona Athens Houston Abu Dhabi Shanghai…
Technip: a Fleet of 19 Vessels by 2010 Current fleet: 16 vessels 3 new ships New build Diving Support Vessel Class III Deep Blue Deep Pioneer Sunrise 2000 Venturer Largest & most sophisticated in its category (Statoil frame…
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…
Attract and Develop Qualified Resources Worldwide Technip headcount by location Middle East 23,000 Asia-Pacific India 18,000 Russia, Central Asia Africa South America North America Other Europe Germany 6,000 United…
II. Market Position & Trends 14
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…
Market evolution: Subsea Key Indicators Market by Region Installed Umbilicals Subsea Trees (km) (units by onstream year) billion 10.0 10.3 9.3 Asia Pacific 8.0 8,000 800 7.5 USA 5.9 Brazil 6,000 600 Africa & MED 4,000 400…
Onshore markets Technip Backlog Anticipated Market Growth (June 30, 2008) 12 (mt) Total: 4,073 million Ethylene 8 capacity addition 4 Petrochems Other Gas processing 0 Ethylene Gas treatment 2005 2012 Polyolefins 4% LNG PTA…
III. Financial Performance 18
2005 - 2007 Financial Performance in millions (audited) Revenue 7,887 6,927 5,376 2005 2006 2007 EBITDA (1), EBIT and Net Income EBITDA EBIT Net Income 493 410 374 333 231 247 200 93 126 2005 2006 2007(2) 2005…
1H 2008 vs 1H 2007 Financial Performance in millions (audited) Revenue 3,619 3,641 1H 2007 1H 2008 EBITDA (1), EBIT and Net Income EBITDA EBIT Net Income 366 307 294 236 193 148 1H 2007 1H 2008 1H 2007 1H 2008 1H…
Balancing backlog mix: segment, region and market Segment Region Market June 30, 2008 8,053 June 30, 2008 8,053 Asia Europe / Russia Onshore 68% Other Pacific Central Asia Petrochems 51% 7% 2% Deepwater 10% 22% Refining /…
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…
IV. Strategy Going Forward 24
Technip Organic Growth Strategy Clear strategic focus on Oil & Gas with sustainable differentiation Capex program to upgrade and expand our key enabling assets Commitment to technology and know-how to address new frontier…
Main Capex projects to expand Subsea asset base New DSV Capacity Increase 2010 Capacity New DSV (2007 -2010) +20% 5,800 Vessels +40% Vessel-days days/year Le Trait Flexible +40% 1,100 km/year* Pipes Houston Umbilicals +25% 700…
Technological Solutions to address Deeper Water Nakika (Shell) Perdido (Shell) Chinook & Cascade (Petrobras) Reeled Pipe-in-pipe Steel Spar operating with the A new application of FSHR further to the Catenary Risers deepest water…
Onshore Technologies Development Hydrogen: LNG: Ethylene: Energy Efficiency & Enhanced Heat Transfer Energy efficiency Increased Selectivity Increased efficiency 25 to 30% increase in hydrogen New vs 1st generation: Reduced fuel CO2…
Creating Shareholders Value Increase Subsea content Improve Offshore and Onshore operating margin and reduce volatility Lower risk profile and balanced portfolio Differentiating strategy based on human resources, assets and…
Trading Technip ISIN: FR0000131708 32
Annex 33
1H 2008 Financial Highlights 34
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…
Subsea in millions, (not audited) Segment 1,182 1,152 Revenue Revenue stable (2.6)% Revenue recognition on Agbami slipped, while MA-D6 1H 07 1H 08 provided good input Segment 276 219 Strong operating income 24.0% EBITDA1…
Offshore in millions, (not audited) Segment 406 346 Revenue declined 14.7% year-on-year as expected Lower contribution from Akpo FPSO in second quarter 2008 Revenue and completion of Dalia FPSO in June 2007 (15)% Operating…
Onshore in millions, (not audited) Revenue stable compared to last year Segment As major EPC lumpsum contracts are executed 2,142 2,031 Revenue Operating margin continues to improve +6% Our de-risking strategy on new projects…
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 Others (601) (1,131)…
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 40
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 41
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…
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.…
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,…
Market Trends 45
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…
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…
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%…
Shareholder structure 49
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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