Technipfmc Plc · NYSE:FTI

Technipfmc — Q3 2018 Earnings Presentation

24 slides from Technipfmc's earnings presentation, Oct 25, 2018

  1. Slide 1: Q3 2018 Earnings Call Presentation

    Q3 2018 Earnings Call Presentation October 25, 2018

  2. Slide 2: Disclaimer

    Disclaimer Forward-looking statements We would like to caution you with respect to any “forward-looking statements” made in this presentation as defined in Section 27A of the United States Securities Act of 1933, as amended, and Section 21E of the United States Securities Exchange Act of 1934, as am

  3. Slide 3: Q3 2018 Overview

    Q3 2018 Overview Financial Results and Operational Highlights Doug Pferdehirt, Chief Executive Officer Maryann Mannen, EVP and Chief Financial Officer

  4. Slide 4: Q3 2018 Financial highlights

    Q3 2018 Financial highlights Total Company $3.1B REVENUE Subsea $1.2B, Onshore/Offshore $1.5B Surface Technologies $402M Total Company $431M Adjusted EBITDA(1) Operating segments $488M Total Company inbound orders $3.6B INBOUND ORDERS Subsea $1.6B, Onshore/Offshore $1.7B Surface Technologies $427M a

  5. Slide 5: Strong project execution – Yamal LNG

    Strong project execution – Yamal LNG  Project milestones  Project highlights(1) 2017 2018 2019 Train 1 Train 2 Train 3 delivered delivered early accelerated delivery 68 Cargoes offloaded 5 million metric tons LNG volume shipped “…The second LNG train commissioned six months ahead of its original s

  6. Slide 6: Solid execution – delivered iEPCI projects to date

    Solid execution – delivered 3 iEPCI™ projects to date Equinor Trestakk Award date: November 2016 Project highlights: > Early involvement – iFEED™(1) converted to iEPCI™(2) > Integrated connection technology; lighter, cost effective > Successful installation within a single marine season Equinor Visu

  7. Slide 7: Outlook supportive of our key growth markets

    Outlook supportive of our key growth markets Subsea LNG Unconventional Offshore Final Investment Decisions(1) Emerging LNG supply-demand gap(2) North America onshore capex(3) (4) 30 120 Mtpa 250 25 100 200 20 80 150 15 60 100 10 40 5 20 50 0 0 0 # of FIDs Oil Price ($/b Brent) Capex (In $ billions)

  8. Slide 8: Subsea opportunities in the next 24 months

    Subsea opportunities in the next 24 months* EQUINOR Johan Sverdrup 2 EXXONMOBIL Neptun Deep CHEVRON RELIANCE Anchor MJ-1 WOODSIDE Sangomar ENI Merakes EXXONMOBIL SHELL Payara Bonga SW TOTAL INPEX Preowei ENI Ichthys 2a PETROBRAS Zabazaba Mero 1 CONOCOPHILLIPS PETROBRAS Barossa Mero 2 ENI PETROBRAS K

  9. Slide 9: Q3 2018 Financial highlights

    Q3 2018 Financial highlights Revenue OTHER ITEMS $3.1 billion  After-tax charges and (credits) of $3 million  Corporate expense of $58 million, excluding charges and Adjusted EBITDA(1) $431 million (credits); includes $34 million, or $0.05 per diluted share, $488 million from Subsea, Onshore/Offsh

  10. Slide 10: Q3 2018 Segment results

    Q3 2018 Segment results Subsea Onshore/Offshore Surface Technologies USD, in millions USD, in millions USD, in millions -18% -203 bps -34% +423 bps +14% -209 bps 1,478 17.6% 2,308 14.8% 402 20.1% 15.6% 354 18.0% 1,209 1,532 10.6% Revenue Adjusted EBITDA margin Revenue Adjusted EBITDA margin Revenue

  11. Slide 11: Backlog evolution – growth and improved revenue visibility

    Backlog evolution – growth and improved revenue visibility Subsea Backlog Onshore/Offshore Backlog (In $ billions) (In $ billions) +7% +31% 6.2 6.2 6.3 8.4 5.9 6.1 8.3 7.6 7.5 6.4 4.2 2.8 2.3 3.4 1.7 2.5 1.6 1.1 1.5 1.0 3Q'17 4Q'17 1Q'18 2Q'18 3Q'18 3Q'17 4Q'17 1Q'18 2Q'18 3Q'18 Backlog Conversion i

  12. Slide 12: Cash flow impacted by project timing, discretionary spend

    Cash flow impacted by project timing, discretionary spend 1 Growth (in $ millions) > Funding growth initiatives > Capital expenditures in-line with full-year guidance of $300 million 5,555 5,553 2 Dividend > $0.13/share; $179 million paid YTD > Sustainable dividend with potential to grow over time 3

  13. Slide 13: 2018 Full Guidance

    2018 Full Guidance(1) *Updated October 24, 2018 Subsea Onshore/Offshore Surface Technologies  Revenue in a range of $5.0–5.3 billion  Revenue in a range of $5.8–6.1* billion  Revenue in a range of $1.5–1.6 billion  EBITDA margin at least 14% (excluding  EBITDA margin at least 13%* (excluding 

  14. Slide 14: Summary

    Summary Q3 2018 highlights  Total Company adjusted EBITDA margin improved 74 bps year-over-year, driven by Onshore/Offshore  Strong inbound order trends support a return to backlog growth – up 9% versus prior-year quarter  Positive operating cash flow led by strong cash management and project mil

  15. Slide 15: Appendix

    Appendix

  16. Slide 16: Backlog visibility

    Backlog visibility Subsea(1) 3Q 2018 Inbound orders: $1,554 million Non-consolidated Backlog(2) $6.3 billion $2.8 billion Subsea $1.1 billion $2.4 billion 2018 (3 months) 2019 2018(3) $23 million 2020 & beyond (1) Backlog does not capture all revenue potential for subsea services. 2019 $180 million

  17. Slide 17: 3Q18 Updates: Subsea opportunities in the next 24 months

    3Q18 Updates: Subsea opportunities in the next 24 months* PROJECT UPDATES Added Removed CHEVRON CHEVRON Anchor Anchor & Tigris TOTAL CHEVRON Lapa Rosebank ENI CNOOC Merakes Lingshui 17-2 PETROBRAS EXXONMOBIL Mero 2 Liza 2 ENI ONGC Kalimba KGD5 98/2 EXXONMOBIL Payara $250M to $500M $500M to $1,000M a

  18. Slide 18: Select financial data

    Select financial data Three Months Ended Three Months Ended Revenue September 30, 2018 June 30, 2018 March 31, 2018 December 31, 2017 September 30, 2017 Inbound Orders (1) September 30, 2018 June 30, 2018 March 31, 2018 December 31, 2017 September 30, 2017 Subsea $ 1,209.1 $ 1,217.4 $ 1,180.2 $ 1,29

  19. Slide 19: Reconciliation of GAAP to Non-GAAP Financial Measures

    TECHNIPFMC PLC AND CONSOLIDATED SUBSIDIARIES RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (In millions, unaudited) Charges and Credits In addition to financial results determined in accordance with U.S. generally accepted accounting principles (GAAP), the third quarter 2018 Earnings Release

  20. Slide 20: Reconciliation of GAAP to Non-GAAP Financial Measures

    TECHNIPFMC PLC AND CONSOLIDATED SUBSIDIARIES RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (In millions, except per share amounts) (Unaudited) Three Months Ended Nine Months Ended September 30, September 30, 2018 2017 2018 2017 (after-tax) Net income (loss) attributable to TechnipFMC plc, as

  21. Slide 21: Reconciliation of GAAP to Non-GAAP Financial Measures

    TECHNIPFMC PLC AND CONSOLIDATED SUBSIDIARIES RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (In millions, unaudited) Three Months Ended September 30, 2018 Onshore/ Surface Corporate Subsea Offshore Technologies and Other Total Revenue $ 1,209.1 $ 1,532.5 $ 402.2 $ — $ 3,143.8 Operating profit

  22. Slide 22: Reconciliation of GAAP to Non-GAAP Financial Measures

    TECHNIPFMC PLC AND CONSOLIDATED SUBSIDIARIES RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (In millions, unaudited) Three Months Ended September 30, 2017 Onshore/ Surface Corporate Subsea Offshore Technologies and Other Total Revenue $ 1,478.2 $ 2,308.1 $ 353.9 $ 0.7 $ 4,140.9 Operating prof

  23. Slide 23: Reconciliation of GAAP to Non-GAAP Financial Measures

    TECHNIPFMC PLC AND CONSOLIDATED SUBSIDIARIES RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (In millions, unaudited) September 30, December 31, 2018 2017 Cash and cash equivalents $ 5,553.3 $ 6,737.4 Short-term debt and current portion of long-term debt (78.4) (77.1) Long-term debt, less curr

  24. Slide 24: TechnipFMC

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