Strengthening Capital structure and positioning for the Energy Transition
H1 2021 Results
Arctic LNG 2 Project 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 statements
This Presentation contains “forward-looking statements” 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 amended. Forward-looking statements usually relate to future events and anticipated revenues, earnings, cash flows or other aspects of Technip Energies’ operations or operating results. Forward-looking statements are often identified by the words “believe”, “expect”, “anticipate”, “plan”, “intend”, “foresee”, “should”, “would”, “could”, “may”, “estimate”, “outlook”, and similar expressions, including the negative thereof. The absence of these words, however, does not mean that the statements are not forward-looking. These forward-looking statements are based on Technip Energies’ current expectations, beliefs and assumptions concerning future developments and business conditions and their potential effect on Technip Energies. While Technip Energies believes that these forward-looking statements are reasonable as and when made, there can be no assurance that future developments affecting Technip Energies will be those that Technip Energies anticipates.
All of Technip Energies’ forward-looking statements involve risks and uncertainties (some of which are significant or beyond Technip Energies’ control) and assumptions that could cause actual results to differ materially from Technip Energies’ historical experience and Technip Energies’ present expectations or projections. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those set forth in the forward-looking statements.
For information regarding known material factors that could cause actual results to differ from projected results, please see Technip Energies’ risk factors set forth in Technip Energies’ filings with the U.S. Securities and Exchange Commission, which include amendment no. 4 to Technip Energies’ registration statement on Form F-1 filed on February 11, 2021.
Forward-looking statements involve inherent risks and uncertainties and speak only as of the date they are made. Technip Energies undertakes no duty to and will not necessarily update any of the forward-looking statements in light of new information or future events, except to the extent required by applicable law.
Technip Energies – H1 2021 Results 2 Welcome
Business highlights Arnaud Pieton CEO
Financial highlights
Bruno Vibert Outlook CFO
Technip Energies – H1 2021 Results 3 Business highlights
Arnaud Pieton - CEO
Technip Energies – H1 2021 Results 4 H1 2021 Key highlights Building momentum and strengthening Energy Transition positioning
Solid operational progress; Reaching key project Launched BlueH2 by raising FY 2021 margin milestones; Arctic LNG 2 T.EN™; creation of guidance to 5.8% - 6.2% first modules completed Offshore Wind BU
€3.2bn 6.3% €17.5bn Adjusted Revenue Adjusted Recurring Adjusted Backlog2 EBIT1 Margin
Financial inf ormation is presented under an adjusted IFRS f ramework, which records Technip Energies’ proportionate share of equity af filiates and restates the share related to non-controlling interests (see Appendix 9.0 of H1 2021 Results Release), and excludes restructuring expenses, merger and integration costs, and litigation costs. 1 Adjusted recurring EBIT: adjusted prof it bef ore net f inancial expense and income taxes adjusted f or items considered as non-recurring. Technip Energies – H1 2021 Results 5 2 Backlog comprises secured & conf irmed orders f rom customers which will generate f uture rev enues with a high probability .Backlog at H1 2021 benef ited f rom a f oreign exchange impact of €154.5 million. Key operational highlights Delivering on critical milestones
LNG Offshore • Arctic LNG 2: Completion of first • ENI Coral FLNG. Topsides and modules in China. offshore activities ongoing. On track Awaiting for sail-away from SHI1 yard in South • Sempra LNG, IEnova, & Korea by year-end. TotalEnergies Energia Costa image "Je t'en pris" Azul: Two thirds of process • Petronas Kasawari WHP. Wellhead equipment ordered. Site platform jacket & topsides fabrication mobilization started. completed, loaded out for installation. Arctic LNG 2 ENI Coral FLNG
Downstream TPS2 • ExxonMobil Beaumont Refinery • Ynsect Project: Foundation stone expansion project: Delivery of laying ceremony at Ynfarm with 17,000 tons of fabricated modules representatives of the French Awaiting from Asia to the refinery in Texas. Government. image • Long Son olefins plant: 90% • Hong Kong offshore LNG project: progress (in tons) on mechanical Loading Systems shipped 12 works associated with the furnaces. loading arms.
ExxonMobil Beaumont Refinery Loading Systems
1 Samsung Heav y Industries. 2 Technology , Products & Serv ices. Technip Energies – H1 2021 Results 6 Winning strategically important awards for TPS Commercial successes across key Energy Transition areas
Northern lights CCS4 - First Hummingbird® Loading Systems award
catalyst supply agreement for liquefied CO2 for LanzaJet biorefinery, US equipment • Ethanol-to-ethylene catalyst. • Contract for the world first
• First commercial demonstration liquefied CO2 marine scale integrated biorefinery loading arms. at Freedom Pines. Two contracts for Neste Indian Oil Corporation Rotterdam Renewables Para Xylene and Purified TPS1 Production Platform, the TPS Terephthalic Acid Netherlands complex project, India
5 • EPsCm2 for production of • Large EPCC contract. Sustainable Aviation Fuel. • Delivery of new 1.2 MMTPA • FEED3 for Neste's next possible PTA plant and associated renewable products refinery facilities. in Rotterdam.
TPS Project Delivery
1 Technology , Products & Serv ices 2 Engineering, Procurement, serv ices and Construction management. Technip Energies – H1 2021 Results 7 3 Front-End Engineering and Design. 4 Carbon Capture and Storage 5 Engineering, Procurement, Construction and Commissioning. Technology Driving development innovation Delivering First 100% hydrogen firing Partnership with leading with proprietary LSV®1 biotech company to burner technology integrate their bio- smart successful, avoiding direct fermentation process CO2 emissions through fuel with Hummingbird® to solutions to substitution. convert CO2 to ethylene. our customers and partners Technology Technology integration enabling SnapLNG™ - A Modularization and productized solution, technology integration developed in cooperation expertise leading to first with Air Products, based on “Blue Ammonia” project a compact modular design pre-FEED award in for mid-scale LNG plants. Northern Europe.
1 Large Scale Vortex Burner. Technip Energies – H1 2021 Results 8 Financial highlights
Bruno Vibert - CFO
Technip Energies – H1 2021 Results 9 Robust H1 2021 performance
€3.2bn €204m €100m Adjusted Revenue Adjusted Recurring EBIT1 Adjusted Net profit2
H1 2021 Financial Highlights
€7.9bn 1.8 €2.5bn Order Intake Book-to-bill, TTM3 Net cash
Financial inf ormation is presented under an adjusted IFRS f ramework, which records Technip Energies’ proportionate share of equity af filiates and restates the share related to non-controlling interests (see Appendix 9.0 of H1 2021 Results Release), and excludes restructuring expenses, merger and integration costs, and litigation costs. 1 Adjusted recurring EBIT: adjusted prof it bef ore net f inancial expense and income taxes adjusted f or items considered as non-recurring. Technip Energies – H1 2021 Results 10 2 Net prof it attributable to Technip Energies Group. 3 Trailing 12-months. Raising 2021 margin guidance Continued confidence in our outlook
Effective Revenues EBIT margin1 tax rate €6.5 - 7.0bn 5.8% - 6.2% 30 - 35%
5.5% - 6.0%
Financial inf ormation is presented under an adjusted IFRS f ramework, which records Technip Energies’ proportionate share of equity af filiates and restates the share related to non-controlling interests (see Appendix 9.0 of H1 2021 Results Release), and excludes restructuring expenses, merger and integration costs, and litigation costs. Additional guidance items include: (1) Yamal net contract liability reduction of €150 – 200 million; and (2) depreciation and amortization expense of approximately €100 million. Technip Energies – H1 2021 Results 11 1 Adjusted recurring EBIT: adjusted prof it bef ore net f inancial expense and income taxes adjusted f or items considered as non-recurring. Guidance is stated excluding one-of f costs of €30 million. Projects Delivery Growth trajectory confirmed as strong execution continues
Revenue EBIT1 Backlog2 in € Million in € Million in € Billion
+X% 7% - 8% 35% • Revenue growth Y/Y; ramp-up on Arctic LNG and recent major awards 2,650 200 2,623 182 16.3 • Lower margins anticipated due to early 168 2,600 2,452 175 project phasing and corporate cost 15.0 150 allocation; execution remains solid2,550 12.1 125 2,500 • Backlog strengthened owing to major 11.0 LNG and downstream awards 100 7.4% 2,450 75 6.4% 2,400 7.0 1.9 50 2,350 Book-to-Bill, 25 TTM3 2,300 0 3.0 H1 2020 H1 2021 H1 2020 H1 2021 H1 2020 H1 2021 EBIT margin
Financial inf ormation is presented under an adjusted IFRS f ramework, which records Technip Energies’ proportionate share of equity af filiates and restates the share related to non-controlling interests (see Appendix 9.0 of H1 2021 Results Release), and excludes restructuring expenses, merger and integration costs, and litigation costs. 1 Adjusted recurring EBIT: adjusted prof it bef ore net f inancial expense and income taxes adjusted f or items considered as non-recurring. Technip Energies – H1 2021 Results 12 2 Backlog comprises secured & conf irmed orders f rom customers which will generate f uture rev enues with a high probability . 3 TTM: trailing 12-months. Technology, Products & Services Strong Y/Y revenue growth with mix-led margin expansion
Revenue EBIT1 Backlog2 in € Million in € Million in € Million +X%
11% 25% 6% • Strong revenue improvement Y/Y; led by services and Loading Systems 1,200 621 55 1200.0 700 1,130 • 100bps margin expansion; significant 50 1100.0 600 44 improvement in EBIT Y/Y 559 1000.0
500 40 900.0 • Solid order intake momentum 800.0 strengthens backlog 400 30 8.8% 700.0
300 7.8% 600.0 20 500.0 200 1.1 10 400.0 100 Book-to-Bill, 300.0 TTM3 0 0 200.0 H1 2020 H1 2021 H1 2020 H1 2021 H1 2020 H1 2021 EBIT margin
Financial inf ormation is presented under an adjusted IFRS f ramework, which records Technip Energies’ proportionate share of equity af filiates and restates the share related to non-controlling interests (see Appendix 9.0 of H1 2021 Results Release), and excludes restructuring expenses, merger and integration costs, and litigation costs. 1 Adjusted recurring EBIT: adjusted prof it bef ore net f inancial expense and income taxes adjusted f or items considered as non-recurring. Technip Energies – H1 2021 Results 13 2 Backlog comprises secured & conf irmed orders f rom customers which will generate f uture rev enues with a high probability . 3TTM: trailing 12-months. Other key metrics and balance sheet Continuous focus on costs and strong balance sheet
Corporate costs €18 million Positive trend with fit-for-purpose organization
Other P&L items Effective tax rate 33.7% Consistent with FY 2021 guidance
Non-recurring items €31 million Largely Spin-off related, mostly incurred in Q1 2021
Refinancing €600 million Successful inaugural bond offering
Balance sheet Net cash €2.5 billion Benefiting from strong YTD free cash flow
Slightly up versus year-end position; H1 position Net contract liability €2.9 billion notably linked to trade receivables increase
Financial inf ormation is presented under an adjusted IFRS f ramework, which records Technip Energies’ proportionate share of equity af filiates and restates the share related to non-controlling interests (see Appendix 9.0 of H1 2021 Results Release), and excludes restructuring expenses, merger and integration costs, and litigation costs. Technip Energies – H1 2021 Results 14 Reinforced capital structure and strong cashflow
Limited gross debt, majority long-term Cashflow bridge in € Million in € Million
€620m Bridge €594m New Loan Notes1
€98m CP €86m CP and Other and Other Gross Debt Q1 2021 Gross Debt H1 2021
2
• Successful pricing of inaugural offering of €600 million of 1.125% • Strong free cash flow3 YTD, reflecting strong operational performance and senior unsecured notes due 2028. More than 3x oversubscribed. working capital benefit associated with new awards and milestones.
• €620 million bridge loan repaid in full. Leverage stable and limited; • Cash flow from financing includes €20 million share re-purchase, short-term debt reduces to < 13% of total portfolio. €47 million of debt reduction and €22 million of lease principal repayment.
Financial inf ormation is presented under an adjusted IFRS f ramework, which records Technip Energies’ proportionate share of equity af filiates and restates the share related to non- controlling interests (see Appendix 9.0 of H1 2021 Results Release), and excludes restructuring expenses, merger and integrat ion costs, and litigation costs. 1 1.125% senior unsecured notes due 2028; €594 million ref lects the €600 million Notes net of f ees and redemption premium. Technip Energies – H1 2021 Results 15 2 SDA is the Separation and Distribution Agreement, which relates to certain transactions which were carried out in the execution of the Spin-of f of Technip Energies resulting notably in cash transf ers between Technip Energies and TechnipFMC as well as some contributions. The net impact on cash & cash equiv alents at December 31, 2020, was -€151 million. 3 Free cash f low is calculated as cash prov ided by operating activ ities of €354.6 million less capital expenditures, net, of €15.4 million. Option 2
Outlook
Arnaud Pieton - CEO
Technip Energies – H1 2021 Results 16 Industry-leading solutions for blue hydrogen
Full suite of deeply-decarbonized solutions for blue hydrogen
Lowest Levelized Cost of Proprietary Technology Key geographic basins w Hydrogen (LCOH) • Recuperative reforming through TPR®2 and • North Sea EARTH®3 • Maximum hydrogen yield • Russia • Enhanced SMR4 • Minimum energy demand (fuel + power) • North America • Achieves complete steam balance & reduced • Middle East carbon footprint
Up to 99% reduction in CO2 In-house technical expertise Flexible applications • Compared to traditional hydrogen production • Heat integration & high efficiency • Facilitating clean energy carriers • Highly-efficient carbon avoidance and CCUS1 • DeepShift - Deep carbon shifting • Decarbonization of LNG, steel, cement, techniques • Tailored product purification power, chemicals, etc.
1 Carbon capture, utilization and storage. 2 Technip Parallel Ref ormer. 3 Enhanced Annular Reactor Tubes f or Hy drogen. Technip Energies – H1 2021 Results 17 4 Steam Methane Ref ormer. SMR with CO2 Removal Floating Offshore Wind – our capabilities The experience, IP and know-how to be a leading player
Relevant expertise and Digitally-enabled technology position and scalable offering
• Global leader in floating solutions – • Capacity to industrialize and No. of naval architects ~50 mass fabricate at favourable economics • Scalable INO 12MW proprietary floater – • State-of-the-art software and certification in progress simulation tools to optimize full windfarm • Robust Semi Submersible design – • Life-of-field services offering suitable for harsh environment including digital twin
Flexible commercial models for a high growth market • Dedicated BU created; EPCI and Services commercial models • PMC business securing services work, active pursuit of several other opportunities • Significant opportunity: ~6GW of capacity to be commissioned by 20301
Technip Energies – H1 2021 Results 18 1 GWEC - Global Of f shore Wind Report 2020. Strong ESG momentum On track with our Sustainability Roadmap
ESG roadmap momentum Taking care • ESG KPI included in T.EN’s €750 million revolving credit facility • Fund raising to support India during the Covid-19 pandemic • Stakeholder engagement • 5,800 employees participated in an all-employee survey (38% • New Health Safety Environment response rate) Pulse program to create HSE leaders • 100+ external stakeholders involved through interviews and survey • Smart Working promoting a more • Materiality matrix and ESG priorities agile culture with new ways of working and collaborating
Supporting
• 70 initiatives supporting local communities in 17 countries • Focus on education • 400 students benefited in Mozambique • 360 students are part of the ‘Shine’ program in Malaysia
Result of 2021 Materiality Assessment
Technip Energies – H1 2021 Results 19 Key takeaways
Strengthening Robust H1 2021 results, margin guidance raised and capital structure strengthened
Positioning Strategic positioning and commercial success in many Energy Transition areas; solid progress on sustainability roadmap
Delivering Quality backlog supports medium-term growth trajectory
Technip Energies – H1 2021 Results 20 Option 2
Q&A
Technip Energies – H1 2021 Results 21 Option 2
Appendix
Technip Energies – H1 2021 Results 22 Backlog schedule
Total €17,473.4m Backlog
€3,523.4m
€5,933.2m 2021 (6M) €8,016.8m 2022
2023+
Backlog comprises secured & conf irmed orders f rom customers which will generate f uture rev enues with a high probability . Backlog at H1 2021 benef ited f rom a f oreign exchange impact of €154.5 million. Technip Energies – H1 2021 Results 23 Adjusted statements of income – H1 2021
Financial inf ormation is presented under an adjusted IFRS f ramework, which records Technip Energies’ proportionate share of equity af filiates and restates the share related to non-controlling interests (see Appendix 9.0 of H1 2021 Results Release), and excludes restructuring expenses, merger and integration costs, and litigation costs. Technip Energies – H1 2021 Results 24 Adjusted statements of income Reconciliation between IFRS and Adjusted – H1 2021
Financial inf ormation is presented under an adjusted IFRS f ramework, which records Technip Energies’ proportionate share of equity af filiates and restates the share related to non-controlling interests (see Appendix 9.0 of H1 2021 Results Release), and excludes restructuring expenses, merger and integration costs, and litigation costs. Technip Energies – H1 2021 Results 25 Adjusted statements of income Reconciliation between IFRS and Adjusted – H1 2020
Financial inf ormation is presented under an adjusted IFRS f ramework, which records Technip Energies’ proportionate share of equity af filiates and restates the share related to non-controlling interests (see Appendix 9.0 of H1 2021 Results Release), and excludes restructuring expenses, merger and integration costs, and litigation costs. Technip Energies – H1 2021 Results 26 Adjusted statements of income – Q2 2021
Financial inf ormation is presented under an adjusted IFRS f ramework, which records Technip Energies’ proportionate share of equity af filiates and restates the share related to non-controlling interests (see Appendix 9.0 of H1 2021 Results Release), and excludes restructuring expenses, merger and integration costs, and litigation costs. Technip Energies – H1 2021 Results 27 Adjusted statements of income Reconciliation between IFRS and Adjusted – Q2 2021
Financial inf ormation is presented under an adjusted IFRS f ramework, which records Technip Energies’ proportionate share of equity af filiates and restates the share related to non-controlling interests (see Appendix 9.0 of H1 2021 Results Release), and excludes restructuring expenses, merger and integration costs, and litigation costs. Technip Energies – H1 2021 Results 28 Adjusted statements of income Reconciliation between IFRS and Adjusted – Q2 2020
Financial inf ormation is presented under an adjusted IFRS f ramework, which records Technip Energies’ proportionate share of equity af filiates and restates the share related to non-controlling interests (see Appendix 9.0 of H1 2021 Results Release), and excludes restructuring expenses, merger and integration costs, and litigation costs. Technip Energies – H1 2021 Results 29 Adjusted statements of financial position
Financial inf ormation is presented under an adjusted IFRS f ramework, which records Technip Energies’ proportionate share of equity af filiates and restates the share related to non-controlling interests (see Appendix 9.0 of H1 2021 Results Release), and excludes restructuring expenses, merger and integration costs, and litigation costs. Technip Energies – H1 2021 Results 30 Adjusted statements of cashflows
Financial inf ormation is presented under an adjusted IFRS f ramework, which records Technip Energies’ proportionate share of equity af filiates and restates the share related to non-controlling interests (see Appendix 9.0 of H1 2021 Results Release), and excludes restructuring expenses, merger and integration costs, and litigation costs. Technip Energies – H1 2021 Results 31 Yamal LNG – Interpreting the disclosures
Project disclosure data Contract liabilities structure In € Millions Contract liabilities Reduction in contract liabilities: €83m December 31, 2020 to June 30, 2021 345 262 Dec 31, 2020 June 30, 2021 Payments to Vendors or Technip Energies
Cash required by operating activities Vendor (Cost) (22.3) (14.6) Continued strong execution June 30, 2020 June 30, 2021 and plant performance will Six months ended Six months ended reduce project cost, increasing Technip Energies profit
Financial inf ormation is presented under an adjusted IFRS f ramework, which records Technip Energies’ proportionate share of equity af filiates and restates the share related to non-controlling interests (see Appendix 9.0 of H1 2021 Results Release), and excludes restructuring expenses, merger and integration costs, and litigation costs. Technip Energies – H1 2021 Results 32 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: 108.4 million / Outstanding shares: 179.8 million Ratio: 1 ADR : 1 ORD Market Cap at June 30, 2021: €2.1 billion
Volume Share price €
10,000,000 16 • DR ISIN: US87854Y1091
9,000,000 14 • Symbol: THNPY 8,000,000 12 7,000,000 • CUSIP number: 87854Y109 10 6,000,000 • American Depositary Receipt (ADR) Program: 5,000,000 8 Sponsored Level I 4,000,000 6 3,000,000 • Sponsor of ADR program: 4 2,000,000 2 J.P. Morgan Chase Bank, N.A. 1,000,000
0 0 • For further information: https://www.adr.com/drprofile/87854Y109
Volume High Low Close
Source: Thomson Reuters Eikon Technip Energies – H1 2021 Results 33 Investor Relations Phillip Lindsay Vice President, Investor Relations Tel: +44 20 3429 3929 [email protected]