Positioning Strategic partnerships and strong early engagement strengthens our position in the Energy Transition - Technip Energies
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Positioning Strategic partnerships and strong early engagement strengthens our position in the Energy Transition 9M 2021 Results
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 the se 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’ regist ration 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 requ ired by applicable law.
Technip Energies – 9M 2021 Results 2
Welcome
Business highlights Arnaud Pieton
CEO
Financial highlights
Bruno Vibert
Outlook CFO
Technip Energies – 9M 2021 Results 3
Business highlights
Arnaud Pieton - CEO
Technip Energies – 9M 2021 Results 4
9M 2021 Key highlights
Focused operational delivery while positioning for the future
Achieving key milestones; Strategic partnerships Shareholder diversification;
Arctic LNG 2 first modules established to drive HAL acquiring a 9.9% stake
delivered energy transition in T.EN
€ 4.9bn
Adjusted Revenue
6.3%
Adjusted Recurring
€ 16.5bn
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 9M 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 – 9M 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 9M 2021 benef ited f rom a f oreign
exchange impact of €254.9million.
Key operational highlights
Reaching key milestones
LNG Offshore
• Arctic LNG 2: loaded, shipped • Eni Coral Sul FLNG: Offshore
and delivered first modules for mooring pre-laying campaign
Train 1. completed in September.
• Other LNG projects progressing
"Je t'en pris"
well
Arctic LNG 2 ENI Coral FLNG
Downstream TPS
• Bapco Refinery expansion: Over • Bora LyondellBasell
75% of equipment installed at site; Petrochemical’s ethylene plant:
construction progress close to performance guarantees reached;
50%. plant based on T.EN proprietary
technology and process design.
• MIDOR Refinery Expansion
Project: Achieved successful • KOC frame agreement: Kicked-off
completion of Overall Refinery new FEEDs; strengthening long-
Shutdown Works. term relationship.
Bapco Refinery Bora LyondellBasel
Technip Energies – 9M 2021 Results 6
Partnering to drive Energy Transition & diversification
• TCA1 to co-develop • MOU2 to create a JV3 to • JV3 with Nipigaz to drive • 5-year strategic alliance
solutions and IP to advance drive energy transition; the energy transition in to offer PMC4 Services to
low-carbon solutions for UAE and MENA region Russia clients in new markets
LNG / Offshore • Identification capability for • Front-end plus EPC / • Industries include
• Explore new concepts and concrete opportunities like EPCm; decarbonization, infrastructure, energy,
technologies to reduce CO2 CO2 capture, blue/green sustainable chemistry and chemicals and mining &
footprint; Greenfield and hydrogen and ammonia carbon free metals
brownfield
1
Technical Collaboration Agreement.
2 Memorandum of Understanding.
3
Joint Venture. Technip Energies – 9M 2021 Results 7
4 Project Management Consulting.
Technology Driving
development innovation
Delivering Joint Development Program
with Shell Cansolv™ to drive
Proprietary pyrolysis
and purification
smart continuous improvements in
affordability of CO 2 capture;
technologies achieve
high purity monomer
solutions to pilot tests ongoing at waste-
to-energy plant in Norway.
for direct use in
polymer production.
our customers
and partners Technology Technology
integration enabling
Exclusive agreement with Inauguration of
Siemens Energy to jointly demonstration plant for
develop, commercialize Carbios’s enzymatic
and licence Rotating PET recycling process;
Olefins Cracker technology T.EN provided process
to decarbonize olefin development and
production processes. industrialization
services.
Technip Energies – 9M 2021 Results 8
Financial highlights
Bruno Vibert - CFO
Technip Energies – 9M 2021 Results 9
Double-digit growth despite challenging backdrop
€ 4.9bn € 308m € 160m
Adjusted Revenue Adjusted Recurring EBIT1 Adjusted Net profit2
9M 2021 Financial Highlights
€ 8.4bn 1.7 € 2.9bn
Adjusted Order Intake Book-to-bill, TTM3 Adjusted 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 9M 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 – 9M 2021 Results 10
2
Net prof it attributable to Technip Energies Group.
3
Trailing 12-months.FY 2021 Updated guidance
Adjusted
Adjusted Effective
Recurring
Revenues tax rate
EBIT margin1
€6.5 – 6.8bn At least 6.0% 30 - 35%
Prior guidance Prior guidance
€6.5 – 7.0bn 5.8% - 6.2%
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 9M 2021 Results Release), and excludes restructuring expenses, merger and integration costs, and litigation costs.
Additional guidance items include: (1) Y amal net contract liability reduction of €150 – 200 million; and (2) depreciation and amortization expense of approximately €100 million. Technip Energies – 9M 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
Robust project execution drives strong financial performance
Revenue EBIT1 Backlog2
in € Million in € Million in € Billion
+X%
11% 9% 44%
• Activity build on Arctic LNG 2; ramp-
up on recently awarded LNG projects.
4,100 3,996 275 255
• Strong execution offsets dilutive 3,900 250 15.3
impact of large, early-stage projects.
3,700 3,605
225 234 15.0
2020 EBIT excludes COVID-19 costs. 200
3,500
175
• Lower order intake in Q3, but 3,300 150 11.0 10.6
significant backlog growth Y/Y. 3,100 125
6.5% 6.4%
100
2,900
75 7.0
1.9 2,700
50
Book-to-Bill, 2,500 25
TTM3
2,300 0 3.0
9M 2020 9M 2021 9M 2020 9M 2021 9M 2020 9M 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 9M 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 – 9M 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 growth and margin expansion
Revenue EBIT1 Backlog2
in € Million in € Million in € Million
+X%
13% 29% 6%
• Strong growth in Services, Process
Technology and Loading Systems. 1,212.0
1,000 90
914 1,200.0
79
• Margins benefit from higher activity 900
809
80 1,057.0
levels overall and mix. 800 70 1,000.0
61
700
60
• Good order momentum driving 600 800.0
steady backlog growth. 50 8.6%
500
40 7.5%
400 600.0
30
300
1.1 200 20
400.0
Book-to-Bill, 100 10
TTM3
0 0 200.0
9M 2020 9M 2021 9M 2020 9M 2021 9M 2020 9M 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 9M 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 – 9M 2021 Results 13
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.Other key metrics and balance sheet
Strengthening balance sheet picture
Materially lower Y/Y reflecting streamlined
Corporate costs €26.0 million corporate structure and fuller segment allocation.
Other
Income
Effective tax rate 34.1% Consistent with FY 2021 guidance.
Statement
items
Mark-to-market impact of investments in traded
Net financial expense €18.5 million securities.
>87% long-term debt associated to our inaugural
Gross debt €681 million bond offering.
Balance
Sheet Net cash €2.9 billion Boosted by strong free cash flow year-to-date.
Continued upward trend related to project progress
Net contract liability €3.1 billion and associated billing.
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 9M 2021 Results Release), and excludes restructuring expenses, merger and integration costs, and litigation costs.
Technip Energies – 9M 2021 Results 14Robust Free Cash Flow strengthens cash position
Cashflow bridge
in € Million
FCF excluding working
capital: €244 million
• Robust free cash flow1 YTD; reflects strong
operational performance and significant
working capital benefit associated with new Working Capital
awards and milestones2. inf low: €534 million
• Cash flow from financing includes €20 million
share re-purchase, €58 million of lease
principal repayment, and €9m associated with
the implementation of the liquidity contract.
3
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 9M 2021 Results Release), and excludes restructuring expenses, merger and integrat ion costs, and litigation costs.
1 Free cash f low is calculated as cash prov ided by operating activ ities of €807.2 million less capital expenditures, net, of €27.7 million.
2
Technip Energies – 9M 2021 Results 15
The v ariation in net contract liabilities is disclosed in Appendix 2.0: Adjusted Statements of Financial Position.
3
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.A diversified shareholder structure
Free float increasing; a geographically diverse shareholder base forming
Equity Split – pro-forma view1 Institutional Investors
As a % of Shares Outstanding Regional Split
Retail
Rest of World
TechnipFMC 8.2%
4.8%
Continental
12.3% Europe 14.2%
37.2%
France
45.7%
Other incl.
15.1%
hedge funds
16.1% Institutional UK &
(long only) Ireland
28.7%
North
Strategic 17.7% America
shareholders2
• HAL acquiring a 9.9% stake in Technip Energies3 • Well-diversified across key geographies
• TechnipFMC stake to reduce to ~12%3 from ~50% at spin
1 Source: IHS Markit shareholder analysis as of August 31, 2021. Pro -forma view reflects shareholder structure post completion of HAL Investments B.V’s 9.9% acquisition.
2 Includes stock held by Bpifrance, HAL Investments B.V, IFP Energies Nouvelles, and members of the Board.
3
Technip Energies – 9M 2021 Results 16
Subject to HAL Investments B.V obtaining customary regulatory approvals; expected early in the fourth quarter of 2021.Option 2
Outlook
Arnaud Pieton - CEO
Technip Energies – 9M 2021 Results 17Leading position in LNG – a critical transition fuel
The future is low-carbon LNG
Global LNG capacity
>55 Mtpa2 +110 Mtpa
under construction Supply gap 3 by 2035;
with T.EN & partners Post current equivalent to >20% of
2021 out of 130 Mtpa 2035
new-build wave current capacity
~450Mtpa ~580Mtpa ~690Mtpa
Estim ated LNG
LNG Capacity1 LNG Capacity
Capacity
Future
Futuregrowth
growth
regions
regions aligned
with T.EN
Aligned with core
T.EN
positioning
core positioning
Existing plants Future plants
Upgrade, Significant
hydrogen fuels, decarbonization
CCS, electric including full
Strong
Strongmodular
modular
motors electrification
content
content
In large
acrossproportion
majority of
of
future prospects
future prospects
1 LNG nameplate capacity, excluding 130Mtpa under construction at September 30, 2021.
2
Technip Energies – 9M 2021 Results 18
IHS Markit liquefaction database as of September 30, 2021.
3 Based on Technip Energies estimates derived from reported data and IEA estimates.
.Clean Hydrogen - a rapidly
evolving market
Positioning for long-term growth with relevant expertise
>20GW
accessible
opportunities globally
T.EN at forefront of technology integration and scale-up
• Single-point systems integrator with standardized digital solutions. Modular solutions:
leveraging modular expertise in design and integration. • 7x increase in Green Hydrogen
project engagement year-on-year.
• McPhy: strategic investment & technology agreement; jointly pursuing commercial
opportunities. • 15+ Green Hydrogen studies
completed or ongoing.
• Technology agnostic: importance of agility and partnerships as industry evolves.
• Regional concentration:
Europe, India and APAC,
supported by policy drive;
First PEM1 electrolyzer project secured Longer-term potential in North
• EPCC contract for India’s largest PEM based hydrogen project for NTPC. America, Middle East.
• 5MW Hydrogen Generation Plant utilizing PEM electrolysis.
• Potential to convert to a large-scale green hydrogen facility.
1 Proton Exchange Membrane.
Technip Energies – 9M 2021 Results 19On track to deliver our ESG Roadmap
Sustained progress in reaching our ESG ambitions
ESG Roadmap update Inclusion in Action
• Completed: Stakeholder engagement and Materiality assessment; 12 topics • Global Inclusion Training: reinforcing
identified as priorities for internal and external stakeholders. inclusion foundations.
• Ongoing: Internal taskforce (>150 employees) helping to define ESG KPIs. • Inclusion Team Talks: identify unhelpful
barriers and take daily actions.
• Implementing further support measures
for Disabled Workers at T.EN France.
Accreditations
• Building Responsibly: T.EN appointed
to the Steering Committee.
• Gold Medal by Ecovadis: Technip
France awarded for their ESG
performance.
Technip Energies – 9M 2021 Results 20Key takeaways
Strong 9M 2021 revenues, EBIT and cash flows. Further
Achieving
diversification of our shareholder base
Positioning Strategic partnerships to develop technology and solutions to
drive energy transition
A floor for FY 2021 margins; backlog and strengthening
Confirming macro environment supports medium-term growth outlook
notably for LNG, carbon capture and hydrogen
Technip Energies – 9M 2021 Results 21Option 2
Q&A
Technip Energies – 9M 2021 Results 22Option 2
Appendix
Technip Energies – 9M 2021 Results 23Backlog schedule
Total €16,464.2m
Backlog
€1,690.2m
€6,173.2m
2021
(3M)
€8,600.8m
2022
2023+
Backlog comprises secured & conf irmed orders f rom customers which will generate f uture rev enues with a high probability . Backlog at 9M 2021 benef ited f rom a f oreign exchange
impact of €254.9million.
Technip Energies – 9M 2021 Results 24Adjusted statements of income – 9M 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 9M 2021 Results Release), and excludes restructuring expenses, merger and integration costs, and litigation costs.
Technip Energies – 9M 2021 Results 25Adjusted statements of income
Reconciliation between IFRS and Adjusted – 9M 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 9M 2021 Results Release), and excludes restructuring expenses, merger and integration costs, and litigation costs.
Technip Energies – 9M 2021 Results 26Adjusted statements of income
Reconciliation between IFRS and Adjusted – 9M 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 9M 2021 Results Release), and excludes restructuring expenses, merger and integration costs, and litigation costs.
Technip Energies – 9M 2021 Results 27Adjusted statements of income – Q3 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 9M 2021 Results Release), and excludes restructuring expenses, merger and integration costs, and litigation costs.
Technip Energies – 9M 2021 Results 28Adjusted statements of income
Reconciliation between IFRS and Adjusted – Q3 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 9M 2021 Results Release), and excludes restructuring expenses, merger and integration costs, and litigation costs.
Technip Energies – 9M 2021 Results 29Adjusted statements of income
Reconciliation between IFRS and Adjusted – Q3 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 9M 2021 Results Release), and excludes restructuring expenses, merger and integration costs, and litigation costs.
Technip Energies – 9M 2021 Results 30Adjusted 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 9M 2021 Results Release), and excludes restructuring expenses, merger and integration costs, and litigation costs.
Technip Energies – 9M 2021 Results 31Adjusted 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 9M 2021 Results Release), and excludes restructuring expenses, merger and integration costs, and litigation costs.
Technip Energies – 9M 2021 Results 32Yamal LNG – Interpreting the disclosures
Project disclosure data Contract liabilities structure
In € Millions
Contract liabilities, proportionate share Reduction in contract liabilities: €142m
December 31, 2020 to September 30, 2021
345 203
Dec 31, 2020 Sept 30, 2021 Payments to Vendors or Technip Energies
Cash required by operating activities,
proportionate share
Vendor
(29.9) (19.0) (Cost)
Continued strong execution
Sep 30, 2020 Sept 30, 2021 and plant performance will
Nine months ended Nine 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 9M 2021 Results Release), and excludes restructuring expenses, merger and integration costs, and litigation costs.
Technip Energies – 9M 2021 Results 33Differentiated capital structure
Q3 Liquidity Q3 Net cash
in € Million in € Million
80
4,000 Commercial Paper
& Other
87
750 3,500
4,268 the Notes1
3,598
594
3,000
3,598 2,917
2,500
2,000
1,500
1,000
Cash RCF Outstanding Liquidity, net Cash Gross Debt Net Cash
Commercial Paper
• Robust liquidity position comprising of €3,598 million • Strong net cash position of € 2.9 billion.
gross cash plus €670 million available capacity under the
RCF; net of €80 million outstanding commercial paper.
• Short-term debt accounts for 13% of total.
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 9M 2021 Results Release), and excludes restructuring expenses, merger and integration 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 – 9M 2021 Results 34Stock 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: 124.4 million / Outstanding shares: 179.8 million Ratio: 1 ADR : 1 ORD
Market Cap at September 30, 2021: €2.1 billion
Share price €
Volume
• DR ISIN: US87854Y1091
1,600,000 16
• Symbol: THNPY
1,400,000 14
1,200,000 12 • CUSIP number: 87854Y109
1,000,000 10 • American Depositary Receipt (ADR) Program:
800,000 8
Sponsored Level I
600,000 6
400,000 4 • Sponsor of ADR program:
200,000 2
J.P. Morgan Chase Bank, N.A.
0 0
01- Apr-21 01- Ma y-2 1 01- Jun -21 01- Jul -21 01- Aug-2 1 01- Sep-2 1 01- Oct-21 • For further information:
https://www.adr.com/drprofile/87854Y109
5-day average Close
Source: Thomson Reuters Eikon Technip Energies – 9M 2021 Results 35Investor Relations Phillip Lindsay Vice President, Investor Relations Tel: +44 20 3429 3929 phillip.lindsay@technipenergies.com
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