Technip Energies NV · EURONEXT:TE
Technip Energies NV — Q1 2022 Earnings Presentation
32 slides from Technip Energies NV's earnings presentation, Apr 25, 2022
Slide 1: Shifting: Market dynamics and strategic focus – Q1 2022 Results
Shifting Market dynamics and strategic focus Q1 2022 Results Technip Energies – Q1 2022 Results 1
Slide 2: Disclaimer – Forward looking statements
Disclaimer This Presentation is intended for informational purposes only for the shareholders of Technip Energies. This Presentation is not intended for distribution in jurisdictions that require prior regulatory review and authorization to distribute a Presentation of this nature. Forward looking s
Slide 3: Welcome
Welcome Business highlights Arnaud Pieton CEO Financial highlights Bruno Vibert Outlook CFO Technip Energies – Q1 2022 Results 3
Slide 4: Business highlights
Business highlights Arnaud Pieton - CEO Technip Energies – Q1 2022 Results 4
Slide 5: Q1 2022 Key highlights
Q1 2022 Key highlights Delivering operationally while investing to enhance energy transition offering Solid operational progress, Shifting market dynamics; Energy transition profitability and cash flow LNG and energy investments: Hy2gen, generation transition acceleration X1 Wind and Iowa Corn € 1.6
Slide 6: Russia sanctions: context for T.EN operations
Russia sanctions: context for T.EN operations Priorities: protect our people and the interests of our company and shareholders As announced on March 3, 2022, in response to the war in Ukraine, Technip Energies has ceased working on any new business opportunities in Russia. Technip Energies is commit
Slide 7: Key operational highlights
Key operational highlights Delivering key milestones in Project Delivery and Technology, Products & Services LNG Downstream • Bapco Refinery Expansion: All heavy lifts completed; majority of • ECA LNG Phase I Project: All equipment installed. Main substation process equipment ordered, and 60% ready
Slide 8: Important front-end positioning in Q1 2022
Important front-end positioning in Q1 2022 Strong positioning for energy transition projects while decarbonizing traditional markets Floating Fertilizer plant Renewable Carbon Offshore with minimized Diesel Capture CO2 footprint Wind TPS1 TPS TPS Project Delivery • Equinor Firefly Floating Offshore
Slide 9: Financial highlights
Financial highlights Bruno Vibert - CFO Technip Energies – Q1 2022 Results 9
Slide 10: Robust Q1 Performance
Robust Q1 Performance € 1.6bn € 107m € 72m Adjusted Revenue1 Adjusted Recurring EBIT1 Adjusted Net profit2 Q1 2022 Financial Highlights € 0.6bn 0.6 € 3.3bn Adjusted Order Intake Book-to-bill, TTM3 Adjusted Net cash Financial information is presented under Adjusted IFRS (see Appendix 8.0 of Q1 2022 R
Slide 11: Projects Delivery
Projects Delivery Improving performance of underlying business Revenue EBIT Backlog in € Million in € Million in € Billion +X% 3% 19% -13% • Significant Y/Y growth in portfolio outside of Russia as projects ramp up. 1 400 100 7.0% • Strong execution and maturing portfolio 90 15,0 1 200 6.1% 4,3 deli
Slide 12: Technology, Products & Services
Technology, Products & Services Solid Y/Y growth and margin improvement Revenue EBIT Backlog in € Million in € Million in € Million +X% 8% 17% 2% • Growth led by engineering and PMC services. 329 30 1 205 1 176 • Margin benefiting from higher activity 26 levels, notably in PMC, and advisory 305 serv
Slide 13: Other key metrics and balance sheet
Other key metrics and balance sheet Corporate costs €12.8 million Includes FX impact of €(4.6) million. Income Significantly higher Y/Y; spend focused on energy Statement R&D €11.1 million transition strategy. Effective tax rate 28.9% In line with financial framework for 2022. Goodwill €2.1 billion
Slide 14: Robust Free Cash Flow strengthens cash position
Robust Free Cash Flow strengthens cash position Cashflow bridge in € Million • Free Cash Flow1 of €185 million, reflects strong operational performance and €86 million working capital benefit. • Net of working capital, Free Cash Flow of €99 million. • Other notable cash flow items include: • Repayme
Slide 15: Outlook
Option 2 Outlook Arnaud Pieton - CEO Technip Energies – Q1 2022 Results 15
Slide 16: Investing and partnering to drive energy transition
Investing and partnering to drive energy transition • Investment in next-generation FOW1 technology. • Investment and strategic partnership with Hy2gen. • A Green H2 Design – Build – Own and Operate (DBOO) company. • Develop mass manufacturable, competitive structure to lower LCOE2. • Large pipeline
Slide 17: LNG has become critical for energy security
LNG has become critical for energy security Acceleration in new LNG capacity required with a geographic shift in future supply 2030 +210Mtpa1 Russia Filling supply gap sooner; the “need for speed” Estimated new LNG capacity required 30 ? • Europe urgently requires reliable long-term supply of natura
Slide 18: T.EN ESG Roadmap published in Q1 2022
T.EN ESG Roadmap published in Q1 2022 Strengthening ESG Accountability & Transparency Living our Purpose Disclosing our sustainability Evaluating our GHG emissions scope 3 information in our two annual reports • Carbon taskforce with subject-matter experts from various disciplines in place • Methodo
Slide 19: Key takeaways
Key takeaways Solid Q1 with strengthening underlying activity and margins; confirming FY 2022 financial framework. Shifting Investing and partnering to drive value, technology-oriented Energy Transition ambition. Energy independence agenda is shifting market dynamics; driving an acceleration in LNG
Slide 20: Q&A
Option 2 Q&A Technip Energies – Q1 2022 Results 20
Slide 21: Appendix
Option 2 Appendix Technip Energies – Q1 2022 Results 21
Slide 22: 2022 Financial Framework
2022 Financial Framework Effective Revenues EBIT margin tax rate €5.0 - 5.5bn At least 6.5% 28 - 32% Excludes estimated contribution from Excludes estimated EBIT contribution from projects under execution in Russia projects under execution in Russia Financial information is presented under Adjusted
Slide 23: Backlog schedule
Backlog schedule €12,220.9m €3,411.5m Total Backlog 2022 (9M) 2023 €3,928.4m €3,652.5m 2024+ €4,640.1m Russia contribution Adjusted backlog at March 31, 2022, included approximately €3.4 billion associated with projects under execution in Russia. Technip Energies – Q1 2022 Results 23
Slide 24: Adjusted statements of income – Q1 2022
Adjusted statements of income – Q1 2022 Financial information is presented under Adjusted IFRS (see Appendix 8.0 of Q1 2022 Results Release). Reconciliation of IFRS to non-IFRS financial measures are provided in Appendix 1.0, 2.0, 3.0. Technip Energies – Q1 2022 Results 24
Slide 25: Adjusted statements of income – Reconciliation Q1 2022
Adjusted statements of income Reconciliation between IFRS and Adjusted – Q1 2022 Financial information is presented under Adjusted IFRS (see Appendix 8.0 of Q1 2022 Results Release). Reconciliation of IFRS to non-IFRS financial measures are provided in Appendix 1.0, 2.0, 3.0. Technip Energies – Q1 2
Slide 26: Adjusted statements of income – Reconciliation Q1 2021
Adjusted statements of income Reconciliation between IFRS and Adjusted – Q1 2021 Financial information is presented under Adjusted IFRS (see Appendix 8.0 of Q1 2022 Results Release). Reconciliation of IFRS to non-IFRS financial measures are provided in Appendix 1.0, 2.0, 3.0. Technip Energies – Q1 2
Slide 27: Adjusted statements of financial position
Adjusted statements of financial position Financial information is presented under Adjusted IFRS (see Appendix 8.0 of Q1 2022 Results Release). Reconciliation of IFRS to non-IFRS financial measures are provided in Appendix 1.0, 2.0, 3.0. Technip Energies – Q1 2022 Results 27
Slide 28: Adjusted statements of cashflows
Adjusted statements of cashflows Financial information is presented under Adjusted IFRS (see Appendix 8.0 of Q1 2022 Results Release). Reconciliation of IFRS to non-IFRS financial measures are provided in Appendix 1.0, 2.0, 3.0. Technip Energies – Q1 2022 Results 28
Slide 29: Differentiated capital structure
Differentiated capital structure 2022 Q1 Net cash in € Million 2022 Q1 Liquidity in € Million Commercial Paper & Other 41 the Notes1 30 3,928 595 750 3,292 4,648 3,928 Cash RCF Outstanding Liquidity, net Cash Gross Debt Net Cash Commercial Paper • Robust liquidity position comprising of €3.9 billion
Slide 30: Stock information and ADR
Stock information and ADR Stock ADR program Listed on Euronext Paris / SBF 120 index Ticker code: TE / ISIN code: NL0014559478 Exchange: Over-the-Counter Free float: 136.4 million / Outstanding shares: 179.8 million Ratio: 1 ADR : 1 ORD Market Cap at March 31, 2021: €2.1 billion Share price € Volume
Slide 31: A diversified shareholder structure
A diversified shareholder structure A geographically diverse shareholder base forming Equity Split – pro-forma view1 Institutional Investors As a % of Shares Outstanding Regional split Retail Rest of World TechnipFMC3 7,2% 4,9% 7,2% Continental Europe 15,7% 37,5% France 16,9% 47,4% Other incl. hedge
Slide 32: Investor Relations
Investor Relations Phillip Lindsay Vice President, Investor Relations Tel: +44 20 7585 5051 [email protected]