Tecnicas Reunidas SA · BME:TRE
Tecnicas Reunidas SA — FY2006 Earnings Presentation
24 slides from Tecnicas Reunidas SA's earnings presentation, Feb 28, 2007
Slide 1: Year 2006 Results Presentation
TECNICAS REUNIDAS Juan Lladó CEO Year 2006 Results Presentation 28th of February 2007
Slide 2: Disclaimer
Disclaimer This document has been prepared by Tecnicas Reunidas, S.A. (the Company) solely for use at presentations held in connection with the announcement of the Company's results for the year 2006. This document contains forward-looking statements of the Company and/or its management. These forwa
Slide 3: Index
TECNICAS REUNIDAS Index BUSINESS HIGHLIGHTS YEAR 2006 FINANCIAL RESULTS
Slide 4: Business Highlights
TECNICAS REUNIDAS BUSINESS HIGHLIGHTS YEAR 2006 FINANCIAL RESULTS
Slide 5: Management Priorities
Management Priorities Management of Strong Business Growth DELIVERY MANAGEMENT CUSTOMERS PRIORITIES HUMAN RESOURCES MARGINS 4
Slide 6: DELIVERY: Execution of Current Backlog
DELIVERY: Execution of Current Backlog Recent strong awards with improved conditions ensure profitable growth Awards (1) Backlog (1) €m €m 3,000 3,040 2,621 3,000 2,500 2,500 2,000 2,000 1,712 1,458 1,500 1,500 1,000 983 713 1,000 736 500 307 500 0 0 2003 2004 2005 2006 2003 2004 2005 2006 Oil and g
Slide 7: DELIVERY: End 2006 Backlog
DELIVERY: End 2006 Backlog Contracted Name Location Client End Date Total Backlog Size Dec 2006 Rabigh Saudi Arabia Saudi Aramco 2008 Hydrocraker Huelva Spain CEPSA 2009 Phenol-Cumene Plant Spain CEPSA 2006 Coker Chile ENAP 2008 Nitric Acid Plant Chile ENAEX 2008 HDS – Bio Bio Chile ENAP 2008 Refini
Slide 8: DELIVERY: Rabigh
wy DELIVERY: Rabigh A TECNICAS REUNIDAS
Slide 9: DELIVERY: Rabigh
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Slide 10: DELIVERY: Rabigh
DELIVERY: Rabigh uy’ TECNICAS REUNIDAS comin WORKER
Slide 11: CUSTOMERS: Key Awards - Hydrocracking complex for Repsol in Cartagena
CUSTOMERS: Key Awards Hydrocracking complex for Repsol in Cartagena Description To enhance the production scheme of the Cartagena refinery, allowing the processing of crude oil with a high sulphur content, from its current distillation capacity of 5.5 million t/y to 11 million t/y. 10
Slide 12: CUSTOMERS: Key Awards - Hydrocracking complex for Repsol in Cartagena
CUSTOMERS: Key Awards Hydrocracking complex for Repsol in Cartagena Highlights Key Dates ¾Largest Spanish refining ¾OBE start date: 23-10-6 investment over the last ten years ¾Estimated EPC start date: Nov-2007 ¾First OBE+EPC contract in Spain ¾Expected completion: Oct - 2009 Scope Information -HYDR
Slide 13: CUSTOMERS: Key Awards - Medgaz
CUSTOMERS: Key Awards Almería receiving terminal Benisaf compression station Maximum depth: 2.160 m. Length: 210 km. Highlights Key Dates ¾ Additional natural gas supply to Europe ¾ Start date: January 2007 ¾ NG from the Hassi R’Mel field ¾ Expected completion: October 2009 ¾ Medgaz: 36% Sonatrach,
Slide 14: CUSTOMERS: Key Awards - Saudi Kayan Phenolics plant
CUSTOMERS: Key Awards Phenolics plant for Saudi Kayan Petrochemical Company in Al Jubail Highlights Key Dates ¾ TR is the sole contractor ¾ Start date: 22nd February 2007 ¾ Part of the new Saudi ¾ Completion: October 2009 Kayan world’s largest grassroots petrochemicals project AL JUBAIL SABIC: A new
Slide 15: CUSTOMERS: Key Awards - Scope description
CUSTOMERS: Key Awards Scope description ¾ 290,000-t/y cumene unit ¾ 240,000-t/y bisphenol-A facility ¾ 220,000-t/y phenol plant ¾ 71,000-t/y acetone recovery unit Technical Information ¾Cumene and bisphenol technology licence by Badger (Shaw Group) ¾Phenol technology licence by Kellogg Brown & Root
Slide 16: Human Resources
HUMAN RESOURCES Headquarters and Central Production Center Satellite Engineering Centers Employees Weight Employees 3,004 3,000 2,488 Non- 700 650 2,500 Technical 2,098 2,200 16% 600 20% 2,000 14% 455 3% 500 1,500 400 Technical 22% 80% 300 1,000 13% 5.4% 200 147 500 100 17 0 0 2003 2004 2005 2006 20
Slide 17: MARGINS: Enhancement and Protection
MARGINS: Enhancement and Protection EBITDA MARGIN % 5.1%* ¾ Economies of scale ¾ Improvement in contracting conditions 4.6% 3.8% ¾ Selective projects 2004 2005 2006 * 5.4% excluding IPO costs 16
Slide 18: MARGINS: Fresh Backlog
MARGINS: “FRESH” BACKLOG 2006 Backlog 2006 Backlog + Kayan* 2006 REST 2006/07 REST ¾ 2/3 of end 2006 backlog awarded ¾ 3/4 of backlog awarded in 2006/07 in the year 2006 ¾ Approx. 60% awarded in OBE basis * Kayan Project awarded in February 2007 17
Slide 19: Year 2006 Financial Results
TECNICAS REUNIDAS BUSINESS HIGHLIGHTS YEAR 2006 FINANCIAL RESULTS 18
Slide 20: Sales and EBITDA growth
Sales and EBITDA growth SALES ADJUSTED EBITDA €m €m 1,235 70 66 (1) 65 1,000 60 55 50 685 80% 45 40 556 35 112% 31 500 30 25 21 20 15 10 5 0 0 2004 2005 2006 2004 2005 2006 (1) Excluding IPO costs of € 2.8 million 19
Slide 21: Financial Results
Financial Results Profit and Loss Account 2006 2005 Var. € million Revenues 1,234.5 685.1 80.2% EBITDA 63.5 31.3 103.0% Margin 5.1% 4.6% EBIT 59.6 28.6 108.5% Margin 4.8% 4.2% Net Financial Results 5.2 6.8 Profit before Taxes 78.2 36.6 113.7% Taxes -6.4 5.0 Net Income 71.8 41.6 72.5% 20
Slide 22: Financial Results - Adjusted Profit and Loss Account
Financial Results Adjusted Profit and Loss Account (IPO costs and sale of assets excluded) 2006 2005 Var. € million Revenues 1,234.5 685.1 80.2% Adjusted EBITDA (1) 66.3 31.3 112.0% Margin 5.4% 4.6% Adjusted EBIT (1) 62.4 28.6 118.3% Margin 5.1% 4.2% Net Financial Results 5.2 6.8 Adjusted Profit bef
Slide 23: Net Cash Position
Net Cash Position* € million 340 317 320 300 280 261 260 240 220 200 180 151 160 140 120 100 80 60 40 20 0 2004 2005 2006 ¾ Cash outflow of € 72 million in 2006 from distribution of ordinary dividends and reserves. ¾ Dividend policy: 40%- 50% payout The company agreed in December the distribution
Slide 24: UNIDAS
= UNIDAS