technip presentation 2010.pdf

7/27/2019 Technip Presentation 2010.pdf

1/42

2010 Fourth Quarterand Full Year Results

Pho

tos:

Tec

hn

ipPho

tolibrary,

Jean

Gaumy

/Magnum,

Harry

Gruyaert

/Magnum,

Pa

trickZac

hmann/

Magnum,

allrig

htsreserve

d

February 17, 2011


2/42

2Full Year 2010 Results

2010 Year in Review

2010 Financial Highlights

Outlook

Annex

Contents

I.

II.

III.

IV.


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2010 Year in ReviewII.

I.


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2010 Key Achievements

Good execution drove 10.2% Group operating margin

Backlog increased by 1.2 bil lion to 9.2 bil lion

Reinforced strategic investments and R&D

Net cash of 1.3 bil lion

Recommend dividend increase by 0.10

to 1.45 per share


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Onshore/Offshore

2010 Major Projects Delivered to Clients

Subsea

Cascade & Chinook in the Gulf of Mexico

Jubilee in Ghana

Tupi gas export pipeline in Brazil

Talisman Auk & Burghley in the North Sea

Last LNG trains in Qatar and Yemen Last train of Khursaniyah gas plant, Saudi Arabia

Dung Quat refinery, Vietnam

Gdansk refinery, Poland

Biodiesel plant, Singapore

Lower Zakum gas processing platform, UAE

P-51 semi-sub & FLNG FEED, Brazil

Strong execution drove profitability


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MalaysiaPetronasPetronas FLNG

BrazilPetrobrasLogistic support

contracts

Gulf of Mexico5 IOCs*MWCS

AustraliaShellPrelude FLNG

Latin AmericaPDVSA / CupetCienfuegos

Refinery

CountryClientProject

Strategic FEEDs / Services

CanadaCNRLDCU

BrazilShellBC10 phase 2

AngolaAcergyClov Umbilicals

AustraliaBHPMacedon

VenezuelaPDVSAMariscal Sucre

IndiaHPCLVisakh refinery

Gulf of MexicoChevronJack St. Malo

Neutral Zone between

Saudi Arabia and Kuwait

Khafji Joint

OperationsKJO

TurkmenistanPetronasBlock 1 Gas

Development

USAValeroMc Kee &

Memphis

UKBPDevenick

EgyptBurullusWDDM Phase 8a

North SeaBP, BG,

Statoil

Several Frame

Agreements


Diversified / Medium-sized

BrazilPetrobrasIPB Papa-Terra

AlgeriaSonatrachAlgiers Refinery

NorwayStatoilMarulk

QatarQatargas 1PMP

UKTotalIslay

BrazilPetrobrasTupi Pilot


Flagship / Large

Well-Diversified Portfolio of New Contracts

2010

*IOCs: International Oil Companies


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Renewed and Growing Backlog

Backlog across segments

Subsea

Offshore

Onshore

2008 20092007

37%

6%

57%

49%

6%

45%

38%

6%

54%

9,390

7,208

8,018

million

34%

12%

9,228

2010

56%

Recent backlog

9,228 mi llion

2010

2009

2008

2007

56%35%

4%

5%


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Continued Strategic Investments

2007 2008 2009 2010

Net R&D expenditure*

54

4542

57

2007 2008 2009 2010

262

401 424

Capex & Investments504

*R&D costs supported by Technip, excluding project

related R&D costs

2010 key achievements million

1st Reeled heated pipe-in-pipe: Islay

1st IPB** flexible in Brazil: Papa-Terra

Brazilian built flexlay vessel: Skandi Niteroi

Malaysian yard: MHB (Petronas)

MHB

**IPB: Integrated Production Bundles, proprietary technology


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Fourth Quarter Operations &

2010 Financial Highlights

II.


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Fourth Quarter Subsea Operational Highlights

Successfully completed offshore operations: Talisman AUK & Burghley in the North Sea

Tupi gas export line in Brazil

Jubilee in Ghana

West Delta Deep Marine phase 7 in Egypt

Several works with Skandi Arctic in the North Sea

Offshore operations in progress:

Block 31 and Pazflor in Angola

Asiaflex plant was inaugurated by the Malaysian Prime Minister and initial

production started

Asset activity

Vessel utilization rate was 76% compared with 81% a year ago

Good activity continued at flexible pipe production units

Brazilian-flagged Skandi Vitoria successfully completed first offshore operations


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Fourth Quarter Onshore/Offshore Operational Highlights

Projects delivered to client: Last of Qatar LNG trains

Gdansk refinery, Poland

Lower Zakum gas processing facilities offshore Abu Dhabi

Biodiesel plant in Singapore

FEED for Brazilian Floating LNG

Pre-commissioning/Commissioning & start-up activities in progress

Pre-commissioning started on Biodiesel plant for Neste Oil in Rotterdam

Work in progress:

Saudi Arabia: Jubail refinery United Arab Emirates: Asab 3

Turkmenistan: Block 1 Gas development

Qatar: PMP

China: Yinchuan, Ningxia LNG

Brazil: P-56 semi-submersible and P-58 / P-62 FPSOs

FEED activities in progress:

Floating LNG FEED for Shell's Prelude field near Australia

Gas processing platform for Wheatstone, offshore Australia


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Fourth Quarter Order Intake & Backlog Highlights

Order intake

1Q 10

720

440

4Q 10

773

2Q 10 Dec. 31

2010

Sept. 30

2010

Backlog

3,1113,141

Order intake

1,774

749

Backlog

6,1175,361

1Q 10 4Q 102Q 10 Dec. 31

2010

Sept. 30

2010

Onshore/Offshore Order intake

Algiers refinery, Algeria

Offshore EPCM contract in Venezuela

Several small and medium-sized projectsnotably onshore in Canada and Australia

3,053

Dec. 31

2009

4,965

Dec. 31

2009

Subsea Order Intake

Brazil: 91km gas export pipelines

BC10 phase 2 EPCI

Charter renewal

Clov umbilicals, Angola

Jack & St. Malo development fields, GoM

897

million

698

3Q 10

906

3Q 10

Total 2010: 2,631

Total 2010: 4,326


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Full Year Financial Performance million (audited)

* from recurring activities

Revenue

(5)%

FY 09

2,7322,866

FY 10

Subsea Onshore/Offshore

Revenue

(7)%

3,3503,590

+8%

207191

+85bp

6%5%

Operating income*

(14)%

457533

(187)bp

17%19%

Operating income*

FY 09 FY 10 FY 09 FY 10

FY 09 FY 10

FY 09 FY 10 FY 09 FY 10


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Full Year 2010

Group Financial Highlights

(1) calculated as operating income from recurring activities before depreciation and amortization(2) from recurring activities

(3) 2009 included 245m exceptional provision for TSKJ matter

3.811.59Diluted EPS ()

1.451.35Dividend per share ()

(5.6)(247.5)Other Operating Income (3)

2.4(8.1)Minority Interests

-4.7Income of Equity Affiliates

594.6373.2Profit Before Tax

(20.1)(60.7)Financial Result

417.6170.4Net Income

10.2%10.5%Operating margin (2)

12.8%14.0%EBITDA margin

(179.4)(194.7)Income Tax

620.3676.7Operating Income (2)

777.3900.8EBITDA (1)

6,081.96,456.0Revenue

FY 09 million

30.2% effective tax rate

Lower IFRS impacts

+ 0.10

Operating Profitability above

10% for the second year running

FY 10

Lower one-off charges


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901.8Increase in Gross Debt

1,332.3Net Cash as of December 31, 2010

450.5Increase in Gross Cash

(114.7)Share Acquisitions

157.6Others

(143.6)Dividend Payment

(500.9)Change in Working Capital

(388.9)Capex

539.2Operating Cash Flow

1,783.6Net Cash as of December 31, 2009

12 months million

MHB investment

Includes 174 million TSKJ payments

Net Cash Flow Statement

Short-term debt was refinanced to 5 &

10 year maturities

2009 dividend per share: 1.35


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OutlookII.III.


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17Full Year 2010 Results 1717

Todays View: 2011 Business Environment

Political uncertainty in

North Africa Continued tendering

across the Gulf of Guinea

Africa

Investment in refining andpetrochemicals

Promising market for

flexible pipe & umbilical

solutions

Strong momentum in gas-

related projects

India/Asia Pacif ic

Some activity in Canadian oil sands

Limited opportunities in US onshore

North America

Onshore very slow

Increasing focus on

renewable energies

Europe

Momentum in major projects limited

by drilling permits

Gulf of Mexico

Positive trend continues

Tendering turning to awards

North Sea

Strategic investments continueacross region including offshore

Weighted towards Saudi Arabia

Middle East

Several onshore/offshore

projects moving forward

Non pre-salt work active

Flexible pipe technologies

used for both pre-salt &

traditional fields

Strong focus on logistics &

local content

High level of tendering for

projects & assets

Onshore opportunities

Brazil

Latin America


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2011: Focus on Sustainable & Profitable Growth

Strategic Priorities

Balanced, profitable backlog

Key differentiating assets

Local content

Technology

Vertical integration

Execution capability

2011 YTD Key Initiatives

Capitalize on worldwide footprint

Investment in wind turbine

technology

Reinforcing steel tubes umbilicals

capability

Dedicated flexlay vessel for

Asian market

New high-end flexible

manufacturing plant in Brazil


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Four New Growth Initiatives for 2011

1. Expansion of steel tube

umbilicals capability

2. Dedicated newbuild flexlay vessel

for Asian market

3. High-end flexible manufacturing

in Brazil

4. Strategic foothold in offshore

wind market

1. Technips Umbilicals capacity

Houston

(GoM) Lobito(West Af rica)

Asiaf lex

(Asia Pacific)

Newcastle

(North Sea)

2. Newbui lt vessel for Asian market


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20

3. Expansion of Brazil Manufacturing Footprint

Infield lines Export lines

Buoyancy can FSHR(2), Technip's hybrid system

(1): Integrated Production Bundle

(2): Free Standing Hybrid Riser

Flexible riser & jumper

Rigid riser/flowline/export

IPB flexib le pipe

Flexible flowline

IPB(1)


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R&D program on vertical-axisfloating wind turbine

4. Strategic Foothold in Offshore Wind

Technips

priorities

UK-based subsea wind cable-

installation company

Subocean acquisition: 2011 Vertiwind project: 2011

Leverage Technip's engineering, project management expertise

and installation know-how

Develop skills & assets, plus relevant partnerships

Initial focus on European market

World's first full-scale floating

wind turbine

Hywind project: 2009


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Technips Backlog by Geography and Activity

By Geography

Europe / Russia

Central Asia

AfricaAsia

Pacific

Americas

Middle

East

18%

32%

8%

24% 18%

Market Split

21%7%

35%

11%

25%

Deepwater

>1,000 meters

PetrochemsOther (1%)

Gas / LNG

Refining /Heavy Oil

Shallow Water

Current business is diversified across key growth markets


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9,227.94,986.31,130.93,110.7Total

959.9506.2103.0350.72013+

3,042.21,918.5522.9600.82012

2,561.6

Onshore

5,225.8505.02,159.22011

GroupOffshoreSubsea

Solid, Profitable Backlog with Good Visibili ty

million (not audited)


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2011 Full Year Outlook*

Improved visibil ity in the last three months allows us to revise our initial view

upwards:

Group revenue around 6.5 - 6.7 billion

Subsea revenue around 2.6 - 2.7 bil lion

Subsea operating margin above 15%

Onshore/Offshore combined operating margin between 6.0% and 6.5%

*at current exchange rate


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AnnexII.IV.


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Group Balance Sheet

Dec. 31, 2009

2,591.7Other Assets

4,146.0Fixed Assets

4,551.6Other Liabilities

1,773.4Financial Debt

3,202.1Shareholders Equity

(including minority interests)

10,222.0Total Assets

3,105.7

Dec. 31, 2010

Cash & Cash Equivalents

million (audited)

10,222.0Total Shareholders Equity and Liabilities

378.6Construction Contracts

694.9Construction Contracts

2,109.7

3,646.0

4,004.6

872.7

2,717.1

8,570.0

2,656.3

8,570.0

158.0

975.6


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Subsea Fourth Quarter Figures

+9%

4Q 09

714656

4Q 10

+6.9%

165154Margin

(195)bp

16.2%18.1%

4Q 09 4Q 10 4Q 09 4Q 10

Revenue

Operating income*


million


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Onshore Fourth Quarter Figures

+23%804653


5747

7.0%

4Q 09 4Q 10

4Q 09 4Q 09

7.1%

Revenue

Operating income*

million

4Q 10 4Q 10


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Offshore Fourth Quarter Figures

+85%

249

135


562.1%

4.1%

4Q 09 4Q 10

4Q 09 4Q 10 4Q 09 4Q 10

Revenue

Operating income*

million


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Technip Today


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Bringing Innovative Solutions to Clients in 3 Segments

Worldwide leadership

Unique vertical integration Design & Project Management Manufacturing & Spooling Installation R&D

First class assets and

technologies Manufacturing plants High performing vessels Advanced rigid & flexible pipes

Innovative engineering

capabilities

Proprietary platform

design

Proven track record in

engineering &

construction

Strong reputation with

customers & business

partners

Project execution expertise

High added-value process

know-how

Subsea Offshore Onshore

TPG 500 Uni dec k Sem i-s ub mers ibl e Spar EDP FPSO/FLNG


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X Capital intensive:

fleet and manufacturing units

X Vertical integration from engineering

to manufacturing & construction

Two Complementary Business Models

Driving Financial Structure and Performance

X Negative capital employed:

low fixed assets

X High degree of outsourcing

& sub-contracting


FY 09

533457

FY 10

million

Operating Income*

18.6%

FY 09 FY 10

16.7%

Operating Margin*

FY 09

191 207

FY 10

million

CombinedOperating Income*

FY 09 FY 10

CombinedOperating Margin*

X Negative working capital

Subsea Offshore/Onshore

5.3%6.2%


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Technips Worldwide Presence

Aberdeen

Paris

St. Johns

Luanda

Rio de Janeiro

Houston

Mumbai

Kuala Lumpur

Perth

Lagos

Vitria

Los Angeles

Caracas

Dande

Lobito

Port Harcourt

Barcelona

Lyon

RomeAthens

The HagueDsseldorf

St. PetersburgEvanton

LondonNewcastle

Abu Dhabi

Doha

Chennai Bangkok

Singapore

Jakarta

Balikpapan

Shanghai

Pori

Le Trait

Bogota

New Delhi

Regional Headquarters / Operating centers

Spoolbases

Manufacturing plants (flexible pipelines)

Manufacturing plants (umbilicals)

Construction yard

Tanjung Langsat(operational in 2010)

Calgary

Monterrey

Oslo

Orkanger

Stavanger

Services base

Baku

Angra Porto

Seven Empowered Regions

L Di ifi d C t B B l d B t


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Large Diversified Customer Base Balanced Between

National Oil Companies and International Oil Companies

S l E ti


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Installation Manufacture & Fabricate

R&D

Manufacturing

plants on all

continents

Flexible plants:

France, Brazil, Malaysia

Rigid spoolbases:UK, Norway, USA, Angola

Logist ic bases:

Brazil

Umbilical plants:

UK, USA, Angola

State-of-the-art

fleet designed to:

Install pipes

Heavy

construction

Diving support

Seamless Execution

Subsea, a Unique Vertically Integrated Business Model

Close to

production sites

Proprietary

technology

Design & Project Management

Dedicated

engineeringteams around

the world

Strategic locations

Paris

Aberdeen

OsloHouston

Kuala Lumpur

Perth

Rio de Janeiro

2

World-class

R&D facilities

Le Trait (France)Aberdeen (UK)

Newcastle (UK)

Rio & Vitoria (Brazil)

1

34

f


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High Performing Fleet

Pipelay Vessels

Heavy

Construction

Vessels (HCV)

Diving Support

Vessels (DSV)

Deep Blue Apache II Deep Energy

Deep Pioneer Sunrise 2000 Skandi Vitoria

Alliance

Wellservicer

Seamec 2

Seamec 3Venturer

Seamec 1 Orelia Seamec Princess

2 major

vessel

upgrades

Skandi Arctic Skandi Achiever

2 new

assets

Deep Constructor Skandi Niteroi

3 units

5 units

10 units

J bil E l f S l P j t E ti


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Jubilee, an Example of a Seamless Project Execution

Houston

Paris

Multi vessel

installation

(incl . Deep Blue

& Deep Pioneer)

Jubilee

First offshore fielddeveloped in Ghana

Engineering,Fabrication andInstallation projectsinvolving Technipscenters in:

Paris,

Houston,

Angola

Fabrication of flexiblepipes in Le Trait,France

Mobilization ofDeep Blue andDeep Pioneer foroffshore campaign

Le Trait

Fabrication o fflexible pipes at

Le Trait

Angola

Coordinated

Engineering

teams from the

Subsea

Division

Ghana

T h i A i P ifi R i l H b


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Technips Asia Pacific Regional Hub

Enhance local content and cl ient proximity

Provide proven technology, world class engineering and execution

Reinforce regional capability: Onshore/Offshore/Subsea

Technips

priorities

Major fabrication yard in South East Asia

Centrally located

Strong platform fabrication track record

Support from MISC/PETRONAS

Collaboration agreement to provide EPCI

capability and technology to PETRONAS

Investment in MHB

1st and only Asian flexible/umbilical

manufacturing plant

Offshore logistic base

Dedicated local installation capacity

Asiaflex

Perth

Bangkok

Shanghai

Singapore

Jakarta

Balikpapan

Kuala Lumpur

Technips Operating Centers

Flexible/Umbilical manufacturing p lant

MHBs yard

3,750 people

Founded in 1982

Technip in Asia Pacific

St t f th A t T h l i ll B i S t


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Ethylene IncreasedEfficiency

Cryogenic RigidPipe-in-Pipe

Flow-AssuranceUltra Deepwater

State-of-the-Art Technology in all Business Segments

Unrivalled high technological assetsNumerous proprietary technologies and

partnerships with licensors

LNG unloading/

long distanceapplications

Heated and moni tored

Flexible Pipes

3,000m (7- 11 )

Flexible Pipes

Heated Rig id

Pipe-in-Pipe

Design,

manufacture &qualify flexible

pipes for 3,000 m

water depth

Integration of gas

lift tubes, electricalcables or optic

fibers in the

production r iser

New Electrical

Trace Heatingtechnology

qualified by

major clients

Increasing

ethylene andrefining

efficiency

Subsea Offshore Onshore

Reeled Heated Pipe in Pipe


40/42


Technips ETH* technology Islay Project, UK North Sea

Reeled Heated Pipe-in-Pipe

6 km tie-back in 122 meters of water

Major challenge: hydrates formation

EPCI project, valued in excess of

60 million

Offshore deployment in mid-2011

with Technips fleet

Flow assurance: heated pipe-in-pipe

Fibre optic temperature monitoring

Fast installation: reeled pipe-in-pipe

Built-in directly onshore, at our spoolbases

Higher insulation efficiency: lower power

requirements

*ETH: Electrical Trace Heating

FLNG1 an Innovative Solution for our Customers


41/42


Synergies of Technips broad ranging

strengths in all three business segments

FLNG1, an Innovative Solution for our Customers

FLNG is a commercially attractive and

environmentally sensitive approach for

offshore gas fields in remote locations

Technips unique combination of skills and

technology:

LNG process

Offshore facilities

Subsea infrastructures

Shell: 15 year master agreement

Petrobras FEED awarded at the end of 2009

1,476 x 230 feet, (450 x 75 meters), 3.5 mtpa LNG capaci ty

1: Floating Liquified Natural Gas

Sh h ldi St t D b 2010


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Shareholding Structure, December 2010

Listed on NYSE Euronext ParisSource: IPREO December 2010

North America

24.8%

Treasury Shares

2.7%

Employees

2.2%

IFP

2.7%

Rest of World18.9%

French Institutional Investors20.3%

Individual shareholders

6.1%

Others

4.6%

UK & Ireland

12.3%

Institutional

Investors

81.7%

FSI

5.4%

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