2014 deliveRing ReSult S - technip.com · smart and cost-effective solutions as well as most...

2014

Activity And SuStAinAble development RepoRt

deliveRingReSultS

ListeDon the Euronext Paris Exchange

teCHNiP iN 2014

counTries48

miLLioN

iNDustriaL assetson All ConTInEnTS

€825 Adjusted operating income from recurring activities

10.7 € 20.9 billionbacklog at the end of 2014

38,000 PeoPLe

including 6 under construction

27 vessels

a d j u s t e d r e v e n u e

Technip is a world leader in project management, engineering and construction for the energy industry.

From the deepest subsea oil and gas developments to the largest and most complex offshore and onshore infrastructures,

the men and women of Technip are committed to offering smart and cost-effective solutions as well as most innovative

technologies to meet the world’s energy challenges.

With a presence in 48 countries, we have state-of-the-art industrial assets on all continents and operate a fleet of specialized vessels for pipeline installation and subsea

construction. Our conceptual engineering skills and innovative technologies, as well as the focus we put on early engagement,

enable us to help our clients optimize their projects. Our wide portfolio of solutions positions us

as a valued partner for our client base, in order to deliver safe and successful projects that are nothing short of amazing.

Because taking it further is what we do.

DELIVERING RESULTS IS WHAT WE DO

Our teams take constant care in the fabrication of each pipe manufactured in our plants. Excellence and innovation are gathered to serve the major progress to which our Group is contributing today.

While subsea projects are getting closer to water depths of up to 3,000 meters, Technip is constantly pushing back the limits of deepwater operations by making pipes and field installations stronger and smarter. Our integrated approach sets us apart: we master the whole value-chain

of a project. This ensures maximum reliability, which is key to meet deepwater challenges.

Delivering subsea operationsWith a unique integrated approach

Delivering offshore operationsWith customized product range

In the offshore business, our activities include engineering, procurement, construction (EPC) and installation of fixed and floating platforms.

We use a large portfolio of technological solutions to answer the challenges faced by our clients. We are leveraging our expertise

in full-range of offshore facilities, as well as our strong know-how with added-value process skills and proprietary platform design.

Delivering onshore operationsWith a portfolio of leading market technologies

At Technip, in the onshore business, we deliver to our clients all the experience we have acquired for almost 60 years, combined with a large

technology solutions portfolio. We are working on onshore facilities that the energy sector needs, in particular for oil and gas industry

players. Technip is one of the global leaders for the refining business and petrochemical units. We also reinforced our position on project

management consultancy activities by leveraging our expertise in the management of complex projects.

Delivering sustainabilityWith a long-term added-value

At Technip, we strive to create added value on the long-term for the social, economic and environmental benefits of all our stakeholders.

Embedding sustainable development in everything we do and building trust with our stakeholders is the basis of our approach.

sustainability

contents

technip in 2014

Technip worldwide • 142014 in review • 16

Message from the Chairman

& CEO • 22Message from the Head of SD • 24Governance & Organization • 26

2014 in figures • 30

operations

Markets & Strategy • 36Our activities • 39

Subsea • 39Offshore • 45Onshore • 51

Innovation & Technology • 57Quality • 60

Human Resources • 64 Health, safety and security • 68

National content and community

support • 72 Environment • 76

Ethics and compliance • 80

22Message from

the Chairman and CEO, Thierry Pilenko

3438,000 men and women

actively delivering projects

62Delivering added-value

in the long-term

Indicators • 82Glossary • 94

technip in 2014

one technip delivering strong operational

performance

12_13

TECHNIP IN 2014

OPERATIONS

SuSTAINABIlITy

14 TECHNIP WORlDWIDE

16 2014 IN REVIEW

22 MESSAGE FROM THE CHAIRMAN AND CEO

24 MESSAGE FROM THE HEAD

OF SuSTAINABlE DEVElOPMENT

26 GOVERNANCE AND ORGANIzATION

30 2014 IN FIGuRES

TECHNIP IN 2014

OPERATIONS

SuSTAINAbIlITy

TECHNIP | 2014 AcTIvITy ANd SuSTAINAblE dEvElOPmENT REPORT

Calgary

Claremont

BostonWeymouth

Mobile

Mexico CityCiudad del Carmen

BogotaCaracas

Port-of-Spain

St. John’s

Lagos

Accra

Dande

Luanda

Lobito

DohaAl-Khobar

KuwaitCairo

Athens

Rome

New Delhi

Mumbai

Chennai Bangkok RayongHo Chi Minh CityKuala Lumpur

Miri

Balikpapan

Jakarta

BatamSingapore

Tanjung Langsat

Perth

Shanghai

Seoul

St. PetersburgPori

Orkanger

Newscastle

EvantonAberdeen

Milton KeynesLondon

Le Trait

Lisbon Barcelona

MarseilleLyon

StavangerOslo

ParisDüsseldorf

AntwerpFrankfurt

MoscowWarsawZoetermeer

Abu Dhabi

Rio de JaneiroPort of Angra

Macaé

VitóriaAçu

Houston

REGIONAL HEADQUARTERS / O PERATING CENTERS

MANUFACTURING PLANTS (FLEXIBLE PIPELINES)

MANUFACTURING PLANTS (UMBILICALS)

CONSTRUCTION YARD

LOGISTIC BASES

SPOOLBASES

technip WorlDWiDeA mULTI-LOCAL COmPANy

Wherever our clients operate, we have the resources to make their projects a success, with more than 38,000 people in 48 countries, industrial assets

on all continents and a leading-edge fleet of 27 vessels including 6 under construction.*

* As of February 2015.

REGIONAL HEADqUARTERS / OPERATING CENTERS

mANUfACTURING PLANTS (fLExIbLE PIPELINES)

mANUfACTURING PLANTS (UmbILICALS)

CONSTRUCTION yARD

LOGISTIC bASES

SPOOLbASES

Calgary

Claremont

BostonWeymouth

Mobile

Mexico CityCiudad del Carmen

BogotaCaracas

Port-of-Spain

St. John’s

Lagos

Accra

Dande

Luanda

Lobito

DohaAl-Khobar

KuwaitCairo

Athens

Rome

New Delhi

Mumbai

Chennai Bangkok RayongHo Chi Minh CityKuala Lumpur

Miri

Balikpapan

Jakarta

BatamSingapore

Tanjung Langsat

Perth

Shanghai

Seoul

St. PetersburgPori

Orkanger

Newscastle

EvantonAberdeen

Milton KeynesLondon

Le Trait

Lisbon Barcelona

MarseilleLyon

StavangerOslo

ParisDüsseldorf

AntwerpFrankfurt

MoscowWarsawZoetermeer

Abu Dhabi

Rio de JaneiroPort of Angra

Macaé

VitóriaAçu

Houston

REGIONAL HEADQUARTERS / O PERATING CENTERS

MANUFACTURING PLANTS (FLEXIBLE PIPELINES)

MANUFACTURING PLANTS (UMBILICALS)

CONSTRUCTION YARD

LOGISTIC BASES

SPOOLBASES

14_15

RIGID REEl-lAy & J-lAy

3FlExIBlE-lAy

& CONSTRuCTION

15RIGID S-lAy

& HEAVy lIFT

2DIVING & MulTI

SuPPORT VESSElS

7

TECHNIP IN 2014

OPERATIONS

SuSTAINAbIlITy


2014 in revieW

also available at 2014activityandsd.technip.com

The Coral do Atlantico and Estrela do Mar, Technip’s new

pipe-lay support vessels (PlSV), were built to meet pre-salt

demands in Brazil.

02

03

The Kaombo project is the largest subsea contract ever awarded

to Technip and strengthens our position in the ultra-deepwater market. leveraging our alliance

with Heerema, we bring unrivaled capabilities to our clients.

01

Our Bronze Class ranking in the RobecoSAM Sustainability

Awards recognizes our commitment

and sustainability actions.

16_17

05

Technip’s new state-of-the-art manufacturing plant in Açu, Brazil, has delivered its first flexible pipes for pre-salt

developments.

04

Technip has been certified as a Top Employer 2014

in 19 countries, showing that our ambitious global HR policy

is rolled out everywhere we operate.

06

Technip held its first global Gender Diversity Forum in Paris, as part of our strategic priority

to develop a common understanding and gender inclusive

language and create a vision for the future.

For more information, please see p. 67

TECHNIP IN 2014

OPERATIONS

SuSTAINAbIlITy


07

Awarded in 2014 and located in Siberia, the yamal lNG

project will comprise three liquefaction trains of 5.5 million

tons per year that are among the world’s largest.

08

Our new manufacturing facility at Technip umbilicals

in Newcastle is one of the most capable steel tube

umbilical assembly plants in the world.

09

The last unit of the Jubail Export Refinery project

was successfully and safely completed.


18_19

11

Technip and IFPEN renewed their partnership in offshore oil production, focusing on technological innovation to meet offshore deepwater

market requirements.

12

The modernization of our French manufacturing plant

in le Trait, including the inauguration of a new crane, strengthens our leadership

and expertise in flexible pipe technology.

10

The Heidelberg Spar delivery demonstrates the Group’s leadership for this type of

floating platforms and ability to tackle ultra-deepwater

developments.


TECHNIP IN 2014

OPERATIONS

SuSTAINAbIlITy


15

Our newly built multipurpose construction vessel, the North

Sea Atlantic, will deliver pipelay, subsea construction and survey projects and was

designed to meet the highest clients’ requirements.

14

Awarded to the Technip-Samsung Heavy Industries

Consortium by Shell in 2012, the Prelude FlNG project

will help unlock new energy resources offshore and has

the potential to revolutionize natural gas production.

13

With the RAPID uIO contract, Technip is proud to be able to support Petronas in an

expanded presence to deliver this project of strategic importance

to Malaysia.

20_21

18

In 2014, more than 10,300 snapshots were posted on the dedicated One Technip

Day website. A real One Technip spirit shared all over the world! As part of this initiative, more than €10,000 have been raised in

favor of the uNICEF.

17

Covering Project Management Consultancy (PMC) services, the Nasr Phase II contract

consolidates Technip’s position as one of the top-tier Project

Management Consultancy companies worldwide.

16

Technip was awarded a substantial contract for the Juniper field,

offshore Trinidad in 2014. leveraging our unique combination of

complementary assets, technologies and capabilities, this project offers

comprehensive platform and subsea design, as well as detailed

engineering solutions.

TECHNIP IN 2014

OPERATIONS

SuSTAINAbIlITy


2014 wAS AN EVENTfUL yEAR fOR THE wHOLE INDUSTRy. LOOkING bACk, wHAT ObSERVATIONS CAN yOU mAkE ON THE GROUP’S PERfORmANCE?Indeed, 2014 was marked by serious turbulences in the oil and gas business. Nonetheless, we succeeded in reinforcing our position throughout the year. For instance, we recorded an unprecedented order intake of 15.3 billion euros, increasing our backlog to 21 billion euros, with diversified and high quality projects. We also delivered major projects, such as Heidelberg in the Gulf of Mexico, Jubilee Phase 1A in Ghana or the Jubail refinery in Saudi Arabia. While oil services activities encountered significant headwinds, emphasized by the oil price drop, further increasing the pressure put by clients on their supply chains, our reaction has been strong and rapid. Technip brought down its selling, general and administrative expenses by 69 million euros in 2014. We also streamlined our activities, exiting from non-strategic activities and reducing our fleet to 27 vessels.

In parallel, Technip continued to invest and recruit selectively. To expand our portfolio of technological solutions, we acquired the zimmer® polymer business. In terms of equipment, an upgrade plan was launched at our site in le Trait, in France and investments were made at our umbilical plant in Newcastle, uK. Additionally, we continued to develop our talents and added specific skills to our engineering teams.

wHAT ARE THE kEy POINTS Of TECHNIP’S RESULTS fOR 2014?Despite a very changing market, we achieved the objectives we had set earlier in the year.Our adjusted revenue grew by 16% at 10.72 billion euros, crossing the symbolic 10 billion threshold for the first time. Our adjusted operating profit reached 825 million euros with particularly strong performance in the technology, services and equipment parts of our business.Subsea delivered ahead of our expectations, boosted by a solid operational performance in all regions. Onshore/

INTERVIEw

“More than ever, our clients neeD close relationships With contractors of choice such

as technip, in orDer to help theM optiMize their investMents.”

thierry pilenko, Chairman and CEO

22_23

Offshore delivered adjusted revenue higher than expected. However, operationally, as indicated mid-2014, conditions were challenging in a number of respects, reflected in a fall in adjusted operating income of this segment. looking beyond the results, I would like to applaud the work of our teams. The passion they demonstrate remains a powerful driving force for our Group. In 2014, all our employees focused hard on our safety and our quality programs, with clear improvements in both areas. wHAT ARE yOUR fINANCIAL ObjECTIVES fOR 2015?For 2015, based on our record 21 billion euros backlog, we are able to give clear guidance for revenue and profit growth and our main focus will again be on delivering our projects in line with our clients’ expectations. We are not only managing our own costs but our clients increasingly see our range of technologies, services, products and project experience as compelling in managing their project costs too. With all of this in mind, combined with Technip’s robust balance sheet, we propose an 8% increase of our dividend with a scrip alternative. Indeed, we are confident in our ability to create value in the coming years for all our stakeholders.We will therefore continue our efforts to improve our contribution as a responsible player. We operate in 48 countries and are committed to supporting thedevelopment of local economies, for example through partnerships supporting knowledge transfer.

wHAT IS THE OUTLOOk fOR TECHNIP?More than ever, our clients need close relationships with contractors of choice such as Technip, in order to help them optimize their investments. Regardless of the oil price level, they have stressed their need to improve the costs of their projects. Whether through our design studies or our technologies, we have the skills which can enable them to significantly improve returns on their projects, including deep offshore and frontiers areas. Where we have had early engagement with our clients, they have seen our ability to deliver substantial optimization. We will also continue to add new areas of expertise in order to broaden our position as a valued partner for our clients. This is what we have done early 2015 by signing an agreement to form an exclusive alliance with FMC Technologies and to launch the Forsys Subsea joint venture.I am convinced that, in the current context, Technip is well positioned to make the difference and strengthens its leading position in the oil and gas services industry.

Watch the video of the interview at 2014activityandsd.technip.com

TECHNIP IN 2014

OPERATIONS

SUSTAINABILITY

TECHNIP | 2014 ACTIVITY AND SUSTAINABLE DEVELOPMENT REPORT

HOW DID TECHNIP SUSTAINABLE DEVELOPMENT STRATEGY EVOLVE IN 2014?2014 was a year during which we focused on embedding sustainable development more deeply and more widely within the organization. In this regard, we have engaged with a large range of our internal and external stakeholders in order to reinforce the understanding of their expectations towards the material aspects on which Technip should focus on. We undertook this ’materiality assessment’ using the Global Reporting Initiative framework (in compliance with its G4 guidelines).This assessment (see illustration below) helped us to list our top priorities which are now being integrated within our strategy.We firmly believe that sustainable development needs to be part of our company culture, in the same way that safety and quality are. Our goal is to enhance a culture of business responsibility that will generate long-term added value and will foster profitable and sustainable growth for all our stakeholders. WHAT ARE EXAMPLES OF HOW YOU ARE EMBEDDING SUSTAINABLE DEVELOPMENT IN THE COMPANY?In line with our commitment to the 10 principles of the United Nations Global Compact, our strategy is based on four pillars: building a sustainable future, developing people, protecting people and the environment and encouraging local development. For the first pillar, our activities in 2014 focused mainly on increasing internal

awareness and competencies and engaging with our key stakeholders. We continued to build management support right up to the top of the organization through a series of workshops with representatives of key departments and Group executives. Technip’s Board of Directors has decided to put forward one of its independent directors to enhance the visibility of sustainable development and improve the integration of its stakes at the highest level of the Group. We also initiated discussions with some of our clients and suppliers to agree on key sustainability priorities.We dedicated a specific attention in promoting Eco-Design, either through training on Leadership in Energy and Environmental Design standard or in boosting the application of Life-Cycle Assessment methodology in projects. We have moved forward on the “Technip Reference

MATERIALITY MATRIX

Colette Casimir, Senior Vice President, Head of Sustainable Development

“DEVELOPING A CULTURE OF BUSINESS RESPONSIBILITY DELIVERS

LONG-TERM ADDED-VALUE.”

INTERVIEW

Medium

High

High

Developing & protecting people

Building long-term relationships with local communities

Protecting the environment

Relevance for Technip

Rele

vanc

e fo

r St

akeh

olde

rs

Investing in national capacities

Meeting clients requirements & expectations

Maintaining the highest ethical standard

24_25

Catalogue of Sustainable and Innovative Solutions”, involving our centers of excellence for technological innovation and expertise, such as our Innovation & Technology Center, Technip Stone & Webster Process Technology, Group Intellectual Property Department and the Expert Network. For protecting people and the environment, we have reinforced our actions towards Human Rights and climate change. Finally, local development happens mainly through community support and national content. I am particularly proud of our national content best practices in Angola, Colombia, Congo, Ghana and Malaysia, where we are increasing the level of locally sourced employees and fostering the transfer of technical knowledge to nationals. This has been made possible through close relationships with universities, as illustrated by the Memoranda of understanding we signed in India and in Malaysia. HOw DO yOU mEASURE THIS GROwING mATURITy?Transparency and measurability are vital parts of our sustainable development strategy. Working closely with our internal stakeholders on the definition of relevant indicators measuring our performance will help us growing our maturity taking into account the Global Reporting Initiative (GRI-G4) framework.We are also proud of our Bronze Class ranking in the RobecoSAM Sustainability Awards and our inclusion in the Dow Jones Sustainability Indices (DJSI) since 2001.

wHAT ARE yOUR ObjECTIVES fOR 2015? Sustainable development is a journey, not a destination. As we mature, the goal is to embed and inspire positive energy inside and outside the organization. For example, starting in 2015, we will engage with our top 20 suppliers and subcontractors to make sure their organizations are also improving in terms of sustainability. We expect the “Technip Reference Catalogue of Sustainable and Innovative Solutions” to move ahead and support deeper dialogue with key clients on Technip’s approach to anticipate the impact of climate change on the infrastructures delivered. Finally, we will produce in 2015 a sustainable development procedure to help integrating sustainability more and more inside our project tendering and execution, the priority being to initiate the discussions on sustainability matters with our clients at the earliest stage of the life-cycle of our projects.

Watch the video “sustainable Development in action” at 2014activityandsd.technip.com

TECHNIP IN 2014

OPERATIONS

SuSTAINAbIlITy

TECHNIP | 2014 ACTIVITy AND SuSTAINABlE DEVElOPMENT REPORT

continuous enhanceMent Delivers iMproveD governance

At Technip our commitment to delivering results extends all the way up to the Executive Committee and to the Board of Directors.

GOVERNANCE AND ORGANIzATION

effective decision-making delivers clear direction

The Chairman and Chief Executive Officer (CEO) is responsible for the general management of Technip and is assisted by the Executive Committee. As of February 2015, the Executive Committee is comprised of the Chairman and CEO, two Presidents from our business segments (Subsea and Onshore/Offshore) and one President from the operational business.

The Group Chief Financial Officer, Group Human Resources Director and Group General Counsel represent three key support functions.

The Executive Committee prepares decisions for approval by the Board of Directors, including those related to objectives, strategic orientations, budgets, accounts, investments and divestments. It supervises the monitoring of major contracts and evaluates key investment decisions. It also examines plans and recommendations regarding internal audits, information systems and telecommunications, human resources and asset management. Two special committees report to the Chairman and CEO: the Ethics and Compliance Committee and the Disclosure Committee.

❶

❹THIERRy PIlENKO CHAIRmAN AND CHIEf ExECUTIVE OffICER

“We ended 2014 with a record backlog of €21 billion of high quality and diversified projects, confirming the visibility we have in our business beyond 2015. In a changing market environment, we are closely engaged with our clients to help them manage their project costs, through our range of technologies, products and services.”

❺THIERRy PARMENTIER GROUP HUmAN RESOURCES DIRECTOR

“Working together as “One Technip” is key to deliver our projects successfully. Unity was at the heart of our actions in 2014: we strengthened the employer brand, promoted gender intelligence and focused on skills development through intergenerational knowledge sharing.”

❻NEllO uCCEllETTI PRESIDENT ONSHORE/OffSHORE

“We focus on strategic early engagement in the project lifecycle of our clients to develop optimized cost- and schedule-driven projects, while strengthening new revenue streams such as our PMC activities based on consultancy services for project management.”

❸JulIAN WAlDRON GROUP CHIEf fINANCIAL OffICER

“We invested in 2014 selectively and developed our strategic assets, as illustrated by the €68 million modernization plan initiated for our manufacturing plant based in France. At the same time, we pursued our cost reduction efforts and our focus on CAPEX discipline.”

❷HAllVARD HASSElKNIPPE PRESIDENT SUbSEA

“In 2014 we further strengthened our client relationships among others by entering several long term frame agreements. Leveraging our unique subsea vertical integration we continued to provide differentiating and competitive solutions from concept phase to execution to our clients.”

❼JOHN HARRISON GROUP GENERAL COUNSEL

“At Technip, we strive to conduct business to the highest ethical standards transposing our general principles into concrete operating procedures.”

❶KNuT BOE PRESIDENT NORTH SEA CANADA

“In 2014, we focused on enhancing our strategic industrial assets, like our investment in our state- of-the art manufacturing plant in Newcastle, UK, designed to meet the demand of the steel tube umbilical market worldwide.”

❼

❻❹

❺

❷

❸

TECHNIP IN 2014

OPERATIONS

SuSTAINAbIlITy


transparent dialogue with shareholders

Each year, we organize meetings with shareholders owning more than 0.5% of Technip’s share capital and proxy advisors in order to present and explain our corporate governance and especially the resolutions to be submitted at the following Annual General Meeting. These meetings in Continental Europe, the uK and the uSA are a great opportunity for us to exchange views with the participants and take into consideration their recommendations and guidelines in order to achieve excellence in governance.

Onboarding and development of board members To increase the time-to-efficiency of board members, we plan to further improve our induction program, concentrating on Technip’s business segments in addition to key specificities of the Group and its industry. Board members have the opportunity to meet the Executive Committee’s members and key operational staff. Current board members will be invited to attend “refresher” courses on a wide variety of projects. In addition to press reports, we have also planned to share with board members the external information sources currently made available to management.

Reflecting our commitment to Gender DiversityWith five women and eight nationalities out of 12 members, the Board illustrates Technip’s strong commitment to diversity and complies with legislation, which requires women to make up at least 40% of the board members of French listed companies in 2016.

In order to assist in the performance of its duties, the Board of Directors has established four special committees: an Audit Committee, a Nominations and Remunerations Committee and a Strategic Committee, all three of which were formed in 2003 and an Ethics and Governance Committee which was formed in 2008. These Committees are mainly made up of independent directors or totally for the Nominations and Remunerations Committee. Each Committee deeply works on matters belonging to the scope of competencies for which it was formed in order to propose recommendations to the Board of Directors as a whole.

coMposition of the boarD of Directors

as of february 28, 2015

28_29

* Independent Director

GéRARD HAUSER* CORPORATE DIRECTOR AND SENIOR INDEPENDENT DIRECTOR OF TECHNIP

mANISHA GIROTRA* CHIEF ExECuTIVE OFFICER OF MOElIS & COMPANy INDIA PRIVATE lIMITED

C. mAURy DEVINE* CORPORATE DIRECTOR

jOHN O’LEARy* CHIEF ExECuTIVE OFFICER OF STRAND ENERGy

jOSEPH RINALDI* PARTNER IN DAVIS POlK & WARDWEll

PASCAL COLOmbANI* CHAIRMAN OF THE BOARD OF DIRECTORS OF VAlEO

LETICIA COSTA* DEAN GRADuATE PROGRAMS AT INSPER

mARIE-ANGE DEbON SENIOR ExECuTIVE VICE PRESIDENT OF SuEz ENVIRONNEMENT IN CHARGE OF THE INTERNATIONAl DIVISION

THIERRy PILENkO CHAIRMAN AND CEO OF TECHNIP

OLIVIER APPERT CHAIRMAN OF IFP ÉNERGIES NOuVEllES

ALExANDRA bECH GjøRV* PARTNER IN ADVOKATFIRMAET HJORT DA

PIERRE-jEAN SIVIGNON* CHIEF FINANCIAl OFFICER OF CARREFOuR GROuP

TECHNIP IN 2014

OPERATIONS

SuSTAINAbIlITy


2014 was a year of record backlog for Technip with €20.9 billion of firm orders with clients and record visibility beyond 2015 thanks to many multi-year projects. A diversified portfolio was maintained with a major focus on early involvement and technology to better serve clients’ needs in order to

build fit-for-purpose solutions. Major awards were won like Kaombo in Angola and Yamal LNG in Russia boosting revenue and backlog.

Key financial figures2014 IN fIGURES

ADjUSTED OPERATING INCOmE fROm RECURRING

ACTIVITIES* (€ MIllION)

834.52013

824.62014

ADjUSTED REVENUE* (€ MIllION)

10,724.52014

9,285.12013

Subsea adjusted revenue in 2014 delivered ahead of expectations. Operational performance was strong across all regions. Subsea adjusted operating margin was 13% for full year 2014 versus 14.1% in 2013, reflecting the backlog growth with a balanced range of contract sizes from small to major projects and a mix of deep and shallow water projects across all regions, in particular West Africa, Brazil and North Sea.

In 2014, Technip pursued the rationalization of its fleet to prepare for multi-year projects in 2015 and beyond. At the same time, Technip launched the start-up investments of the new plants in Açu, Brazil and Newcastle, uK. Two pipe-lay support vessels (PlSV) were delivered in Brazil.

Onshore/Offshore adjusted revenue was supported notably by the ramp-up on the yamal lNG project

in Russia and other projects such as a Program Management Consultancy (PMC) contract for the RAPID project in Malaysia and uSA downstream projects. Onshore/Offshore performance was impacted by a number of operational factors, including lower activity on later stage projects compared to early stage projects. Onshore/Offshore adjusted operating margin was 4.7% for full year 2014 versus 6.7% in 2013.

30_31

At the end of the fourth quarter 2014, Technip’s backlog rose to the record level of €20.9 billion (firm orders with clients), compared with €15.5 billion at the end of 2013. This backlog is diversified by geography, market split, customer and nature of contract, as per Technip’s strategy to remain differentiated in the current market environment. Technip’s portfolio of projects also provides record visibility, mainly due to multi-year projects which support the Group’s plants and assets utilization rates. Indeed, some subsea projects such as Kaombo or Juniper will be in offshore phases after 2016 while some onshore projects like yamal lNG have construction phases planned after 2016.

As of December 31, 2014, the Group’s adjusted net cash position was €1,125 million compared to €832 million at the end of December 2013.

Concerning adjusted capex, we spent €376 million in 2014. Technip’s investment in key differentiating assets during the year included the start-up costs of the new flexible pipe plant in Açu, Brazil and the steel umbilical plant in Newcastle, uK, as well as the delivery our new construction vessel North Sea Atlantic and two PlSVs in Brazil. Technip also made several divestments to focus on its core activities. These included the closure of Technip Offshore Wind, the sale of Technip TPS, a subsidiary specialized in building engineering and the sale of the uS and Indian diving businesses.

ADjUSTED NET CASH* (€ MIllION)

831.62013

1,125.32014

bACkLOG (€ MIllION)

15,4752013

20,9362014

* In 2014, Technip applied for the first time inter alia IFRS 11 – Joint Arrangements. In its full year financial statements, Technip has incorporated the most recent interpretation of the guidelines concerning this standard issued by IFRIC in which all single project joint arrangements structured through incorporated entities can be only accounted as joint ventures. Technip will continue to report and provide forward looking information on an adjusted basis corresponding to its previous framework in order to ensure consistency and comparability between periods and projects and to share with all market participants the financial reporting framework used for management purposes.

TECHNIP IN 2014

OPERATIONS

SuSTAINAbIlITy


We maintain our progressive dividend policy and propose an 8% increase with a scrip alternative, reflecting our confidence in our ability to create value in the coming years for all our stakeholders.

Technip’s shares are listed on the Euronext Paris exchange and in the United States, within the OTC market in the form of American

Depositary Receipts (ADR), one Technip share representing four ADRs.

technip anD the stocK MarKet

SUSTAINAbLE DEVELOPmENT INDExES Sustainable development concerns are integrated into Technip’s approach to project execution and in defining and applying its values. Thanks to our achievements in sustainable development, the Group has been part of the Dow Jones Sustainability Indexes (DJSI) since 2001. In January 2015, the Bronze Medal in RobecoSAM’s yearbook confirmed the Group’s status as one of the sustainability leaders in its industry. Besides, Technip is part of the Euronext Vigeo Eurozone 120 list.

SHAREHOLDERS AND INVESTORS CONTACTSTechnip’s financial communications team is available to answer questions and provide information to individual shareholders, institutional investors and financial analysts in both English and French:

Individual shareholders relations Tel.: +33 (0)1 47 78 66 75E-mail: [email protected] and analysts relations Tel.: +33 (0)1 47 78 68 34E-mail: [email protected]

More information on Technip and its share ownership is available in the Shareholders section of our website www.technip.com

As of December 31, 2014, Technip’s shares ranked 39th on the CAC 40 by weighted capitalization (0.59%).In 2014, Technip built a strong backlog of €20.9 billion and our approach remains focused on project execution excellence, diversified order intake, capital and cost discipline and engaging early with clients to provide them with differentiated assets to serve them with cost-driven and technological solutions.

A challenging market environment, due mainly to the sharp drop in the price of oil (-44% year-on-year for West Texas Intermediate), had a negative impact on the share prices of oil and gas services’ companies. Technip’s share price decreased by 29% in 2014, from €70.00 as of December 31, 2013 to €49.42 as of December 31, 2014. In the same period, the transaction volume of Technip shares rose by 25%.

2.00 (1)

2014

1.852013

DIVIDEND fOR THE fISCAL yEAR (€ PER SHARE)

(1) Recommendation of Technip’s Board of Directors to be approved during the Annual General Meeting

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TECHNIP’S fINANCIAL CALENDAR

fEbRUARy 18 2014 fourth quarter and full-year results

Annual General Meeting of Shareholders

APRIL 23 2015 first quarter results

jULy 30 2015 second quarter results

OCTObER 29 2015 third quarter results

mAIN ExHIbITIONS

mARCH 25-27 OMC Ravenna, Italy

jUNE 2-5 WGC Paris, FrancejUNE 2-6 OGA Kuala lumpur, Malaysia

mAy 4-7 OTC HOuSTON Houston, uSA

OCTObER 27-29 OTC BRAzIl Rio de Janeiro, BrazilOCTObER 27-30 GASTECH Singapore, Singapore

NOVEmbER 9-12 ADIPEC, Abu Dhabi, uAE

2015

Institutional Investors

uK & Ireland 9.6%


France 13.8%


North America 37.6%

Bpifrance 5.2%

Individual shareholders* 7.5%

Institutional Investors Rest of world 15.0%

Treasury shares 1.2%

Others 5.8%

IFP Énergies nouvelles 2.5%

Employees 1.8%

SHAREHOLDING STRUCTURE AS OF NOVEMBER 2014

Source: Thomson Reuters, Shareholder Analysis, Nov 2014

* Some nominative shareholders were previously classified under unidentified and are now included in retail shareholders. November 2013 and May and November 2014 have been restated accordingly. The overall number of retail shareholders has remained constant.

operations

38,000 men and women actively delivering projects

TECHNIP IN 2014

OPERATIONS

SuSTAINABIlITy

34_35

36 MARKETS & STRATEGy

39 OuR ACTIVITIES

391Subsea / 45 Offshore / 51 Onshore

57 INNOVATION & TECHNOlOGy

60 QuAlITy

Technip | 2014 Activity And SuStAinAble development RepoRt

TECHNIP IN 2014

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SuSTAINABIlITy

involvement, technology, integrated approach with key differentiating assets, execution capabilities and a diversified portfolio.

Expanded portfolioOur business is diversified both geographically and between our three activities – Subsea, Offshore and Onshore –providing us with multiple, balanced revenue streams. Moreover, relatively recent additions to our portfolio grew strongly in 2014. For example, while Technip PMC, our business unit which offers Project Management Consultancy services – from the definition to the operational phases – is only two years of operation, PMC projects won to date represent an estimated revenue potential exceeding uSD 1 billion, providing excellent visibility over the next five years. leveraging our wide portfolio of solutions, including conceptual technology and FEED resources, we get involved very early in projects. It generates recurrent revenue in the short-term while better positioning us for potential award of engineering, procurement and

solid backlog delivers long-term visibility

The short-term visibility of future oil prices remained unclear as the year’s closed. In the mid-term, however, the International Energy Agency (IEA) estimates that worldwide oil consumption will grow by 15 million barrels per day (mb/d) between 2015 and 2035. To meet this demand the world’s oil producers will need to develop over 30 mb/d of new reserves. For natural gas, the IEA sees an increase of nearly 50% in production by 2035 versus 2011. On the upside, lower prices mean cheaper feedstock, which benefit downstream industries like petrochemicals.

Despite challenging current market conditions, our backlog close to €21 billion in confirmed orders at the end of 2014 enables us to have long-term visibility. To continue to deliver profitable and sustainable growth, we remain focused on a strategic framework based on early

mARkETS & STRATEGy

integrateD approach Delivers Differentiation

in shifting MarKet

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construction (EPC) contracts in the mid-term. Technip Stone & Webster Process Technology generates EPC work opportunities and provides recurrent margins from technology licensing.

Pursuing our integrated approachWe continued to be more vertically integrated. In 2014, we opened a new flexible pipe manufacturing plant in Açu, Brazil, inaugurated a steel umbilicals production facility in Newcastle, uK and announced a €68 million investment plan for our flagship flexible pipe plant in le Trait, France.

Strengthening our portfolio of downstream technologies, we also acquired the zimmer® polymer process technology business of Air liquide Global E&C Solutions Germany. In addition, to boost our engineering capabilities in the offshore business, we acquired an equity share in Kanfa, a topsides/processing technology specialist and we took majority stake in Inocean, a firm specialized in hull design, bringing additional competencies and strengthening our position in the North Sea market.Our execution capabilities have also been reinforced through closer ties with clients, for example in the form of alliances and frame agreements, like we did in 2014 with Petronas Carigali Sdn Bhd in signing a five-year framework agreement for engineering, procurement, construction & installation (EPCI) or supply-only of flexible pipes for company’s projects in Malaysia. Another example is the signature between Technip in Italy and Biochemtex, which is the major shareholder of Beta Renewables, of an alliance agreement for future Biochemtex Second Generation Bioethanol projects.

1 Investing in our assets is key in our integrated approach.2 Technip focuses on delivering substantial optimization

thanks to its early engagement in projects.

1 2

backlog of confirmed orders at the end of 2014

Close to

€21 billion

TECHNIP IN 2014

OPERATIONS

susTaINabIlITy

TEchNIP | 2014 aCTIvITy aNd susTaINablE dEvEloPmENT REPoRT

client focus delivers answers to long-term challenges

In the context of market volatility, the main aim of our business model is to meet our clients’ needs, delivering cost- and schedule-driven solutions. The growing complexity of field development calls for larger, more integrated and more experienced partners who are able to anticipate the challenges energy companies face and provide end-to-end schedule-driven and cost-optimized solutions. An example

of this would be BP’s decision to award us a substantial engineering, procurement, installation and commissioning (EPIC) contract for its Juniper project in Trinidad and Tobago. We had been involved in the project from the early stage, thanks to our expertise in offshore and subsea. We were selected for the EPIC, firstly because we were able to drive the client’s costs down by optimizing the field architecture and secondly because we could provide not only the engineering, installation and commissioning of the topsides and jacket, but also the subsea pipelines and umbilicals.

Finally, our strategy also enables us to help customers control capital and operating costs by making decisions early on that yield efficiencies when operations begin. For example, in the Papa-Terra field offshore Brazil, Technip flexible integrated production bundle (IPB) risers were chosen by Petrobras to increase the temperature of the heavy oil after maintenance shutdowns, enabling the wells to be restarted quickly, safely and sustainably without injecting costly chemicals.

1 The modernization of Technip’s flexible pipe manufacturing plant in le Trait is part of our technological innovation and differentiation strategy.

2 Technip’s operating center in Houston, uSA, is in charge of the engineering and project management of the Juniper project.

1 2

investment plan for our flagship flexible pipe plant

in le Trait, France

€68 M

SubseaopErationS

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subseaoperations

€68 mILLION MODERNIzATION PlAN FOR lE TRAIT, FRANCE,

FlExIBlE PIPE PlANT

7 mANUfACTURING PLANTS 27 VESSElS INCluDING 6 uNDER CONSTRuCTION

NEW Açu mANufAcTurINg plANTIN BrAzIl prOgrESSINg

ON rAmp-up•

UNIqUE INTEGRATED APPROACH: cOvErINg DESIgN, ENgINEErINg,

prOjEcT mANAgEmENT, mANufAcTurINg Of rIgID pIpES, flExIBlES AND

umBIlIcAlS, SpOOlINg, pIpElAy AND INSTAllATION

INAugurATION Of NEW fAcTOry, ONE Of THE WOrlD’S lArgEST STEEl TuBE umBIlIcAl ASSEmBly plANT, IN

NEWScASTlE-upON-TyNE, uK•

AmONG OUR LARGEST PROjECTS: mOHO (cONgO), pAzflOr (ANgOlA),

QuAD 204 (uNITED KINgDOm), KAOmBO (ANgOlA), jANgKrIK (INDONESIA) AND

BlOcK 15/06 (ANgOlA)

ADjuSTED OpErATINg mArgINADjuSTED rEvENuE BAcKlOg

€9.7 bILLION €4.9 bILLION

70 12prOjEcTS BETWEEN €10 – 100 mILLION

prOjEcTS BETWEEN €100 – 350 mILLION

AlmOST

13%

TECHNIP IN 2014

OPERATIONS

susTaINabIlITy


SUbSEA

integrateD approach anD close ties Deliver access

to Differentiating technology anD assets

partnerships deliver new projects

Developing fields in deep waters of 3,000 meters raises geographical challenges and implies to solve technical hurdles of producing heavy, corrosive hydrocarbons at higher pressure and extreme temperatures. In this context of falling oil prices and high costs, making the right decisions in the early stages of a project translates into offering fit-for-purpose solutions for field development. It is why the choice of technology partners is more critical than ever. Close relationships between clients and solutions providers drive cost optimization.

Stronger, deeper relationshipsIn 2014 we saw an increased interest among our subsea clients towards building and strengthening partnerships with us, in order to benefit from our integrated approach and technology. One good example of this was the signature in November 2014 of a five-year framework

agreement with Petronas Carigali Sdn Bhd (PCSB) for engineering, procurement, construction & installation (EPCI) or supply-only of flexible pipes for company’s projects in Malaysia. Our Asiaflex Products flexible pipe manufacturing plant located in Johor, Malaysia, will execute the framework agreement and manage the project teams in Kuala lumpur and the regionally dedicated construction vessel, the Deep Orient.

In the North Sea, we extended our long-standing relationship with Statoil, ExxonMobil and Gassco with the renewal of a subsea services framework agreement for the maintenance of underwater pipelines, requiring advanced technology. The new contract replaces the existing frame agreement that ran for eight years. We will provide subsea services for four years, with the option to renew for additional periods up to seven years. The area of operation includes continental areas from the Barents Sea to the Mediterranean Sea, the Baltic Sea and North Atlantic Ocean as well as Newfoundland, Canada.

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1 Asiaflex Products is the first flexible pipe and umbilical manufacturing facility in Asia.

2 In 2014, we added expertise to broaden our position as a valued partner and showed flexibility to adapt to clients demands.

1 2

wins around the world2014 started with two new ultra-deepwater contracts in Brazil, covering the supply of flexible pipes for pre-salt fields. Production began in 2014 at our Flexibras plant in Açu, Brazil. The flexible pipes were designed by the R&D team at our Flexi France plant in le Trait, France. Another kind of partnership yielded a strong win in 2014. Total E&P Angola awarded the Technip Heerema Alliance with a major lump-sum contract for the EPCI and pre-commissioning of the subsea umbilicals, risers and flowlines for the Kaombo project. This contract is the direct result of establishing a strategic alliance with Heerema in 2012. Valued at approximately uSD 3.5 billion with a Technip share of around 55%, it is the largest subsea contract ever awarded to Technip and strengthens our position in the ultra-deepwater market. The challenges of production at these depths are such that major industry players need a partner who can offer them additional capabilities and leading-edge technologies, R&D and assets.

2014 year also saw a number of additional major wins in many areas in the world, reinforcing our geographically-diversified position. We continued to expand our footprint in Angola with the award of the Block 15/06 subsea project. In the North Sea region, Technip was awarded a large contract by Total E&P uK for the Edradour Development. In Asia Pacific, we reinforced our position with a major contract for the Jangkrik project as well as a substantial subsea contract for Bangka development, both located in Indonesia. In the Middle East, we strengthened our presence with a substantial contract with Dubai Petroleum Establishment (DPE). This new project came just a couple months after we successfully completed our first subsea project for DPE in the South West Fateh and Falah fields, reflecting the client’s growing confidence in our capabilities and our rising prominence in the Middle East subsea market.

In the uS Gulf of Mexico, our unique integrated approach to the subsea business, from conception to fabrication

TECHNIP IN 2014

OPERATIONS

susTaINabIlITy


and installation, resulted in two contracts. Anadarko, a long-standing client, selected Technip to design, manufacture and install the Pipeline End Termination and End Manifolds for its K2 Riser Base Gas lift project. Deep Gulf Energy chose Technip to develop the subsea tie-back to the Devils Tower Truss Spar located in Mississippi Canyon Block 773.

strategic assets deliver competitive advantage

Through their relationships with us, our clients benefit from our unique integrated approach. In addition to the design and engineering work, Technip is the only player to both fabricate and install flexible pipes in the world.

Investing in manufacturingIn 2014, we announced a major modernization plan of what we consider to be the cornerstone of our subsea

integrated approach: the Flexi France plant in le Trait, France. It focuses on the installation of new-generation machines and site optimization to fit 12-meter diameter reels that will provide room for twice as many flexible pipes on each reel. The investment will also create a new area dedicated to testing the next generation of flexible pipes. The investment amounts to €68 million and will reinforce our global leading position in the production of flexible pipes, for the development of subsea oil and gas fields.le Trait is one of the four flexible pipe plants in the Group. The others are located in Vitória and Açu, Brazil and Tangjung langsat, Malaysia. Açu, which began production in 2014, is the most technologically-advanced plant in the world and is also leading pre-salt R&D efforts for flexible pipes. Together with Technip’s plant in Vitória, our logistics bases in Macaé and Angra, as well as our operating center in Rio de Janeiro, it is helping the Group expand our business capabilities in the highly technological challenging Brazilian pre-salt market.

“close relationships between clients and solutions providers drive cost optimization.”

Flexible pipes are fabricated in Technip’s plants around the world.

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VESSELS IN ACTION AROUND THE WORLD

Our vessel utilization rate averaged 80% in 2014, compared to 75% in 2013 and peaking at 88% in the second quarter. Our fleet maintenance operations went as planned, with the Deep Blue returning to work in the third quarter.

In the US Gulf of Mexico, several ongoing projects in offshore phase were completed, mainly performed by the Deep Blue, Deep Energy and Global 1200 vessels. The Deep Energy was also active in the North Sea, working on the Bøyla and Åsgard projects. Also, North Sea Atlantic went to work soon after delivery on Åsgard.

The Deep Orient and the Global 1201 were mobilized in Asia Pacific. The former completed its offshore campaign on Panyu project in China and the latter completed offshore works on the Laila and D12 projects in Malaysia. The Global 1201 vessel also progressed on the Greater Western Flank rigid pipelay operations in Australia before heading to the United Arab Emirates to install the Jalilah B pipelines.

In West Africa, the Deep Pioneer performed pipelay operations for the Block 15/06 development for most of the year. Across the Atlantic in Brazil, the Coral do Atlantico, one of our two new PLSVs, began operations and the Skandi Vitória, one of our vessels on long-term charter, began installation of flexible pipes in the Papa-Terra pre-salt field.

RESULTS DELIVERED

We will also focus on improvements for the rigid pipe fabrication facility (spoolbase) in Mobile, Alabama, USA, which will be supported by a portion of the proceeds from the divestment of our North American diving assets to Ranger Offshore Inc. in 2014. We also inaugurated in May 2014 a new umbilicals plant at our manufacturing site in Newcastle-Upon-tyne, UK. It is one of the world’s most advanced steel tube umbilical manufacturing systems and houses a state-of-the-art vertical helix assembly machine (VHAM) and large carousels to accommodate the larger diameters and longer lengths of umbilicals that clients require for increasingly complex field

vessel utilization rate average in 2014

80%


TECHNIP IN 2014

OPERATIONS

SuSTAINABIlITy

of umbilicals and flowlines for the Anadarko lucius project in the Gulf of Mexico before heading to the North Sea where she laid over 50 km of pipeline for the Marathon Bøyla project and worked on the Åsgard Subsea Compression project.

And joining the fleet in summer 2015 will be the Skandi Africa, the new flagship for deepwater construction with its 650 meters tiltable system tower for flexible pipe lay operations and 900 tonnes AHC crane. The new diving support vessel for the North Sea Canada region is also under construction.

developments. Our other umbilical manufacturing sites are in Houston, uSA; lobito, Angola and Tangjung langsat, Malaysia.

fleet continues to be optimizedFurther in 2014, the final link of the integration chain – our fleet of vessels – continued to be optimized. We currently have 21 vessels in service and six under construction. The North Sea Atlantic successfully entered into service this year. This multipurpose construction vessel is designed to meet the highest requirements for subsea work. Although she will work predominantly in the North Sea, she is suitable for deepwater operations worldwide. As further demonstration of our commitment to the Brazilian pre-salt market, the two pipelay support vessels (PlSV) built as part of the Technip-Odebrecht partnership signed in 2011 were inaugurated in April 2014. Finally, 2014 saw the one-year service anniversary for the Deep Energy, the fastest and one of the largest pipelay vessels ever built. In 2014, she installed more than 20 km

The North Sea Atlantic is our newly built multipurpose construction vessel designed to deliver pipelay, subsea construction and survey projects.

x_4544_45

offshoreoperations

15TH SPAR DELIVERED OuT OF 19 SPARS IN OPERATION WORlDWIDE

ExPERTISE IN fULL RANGE Of OffSHOrE fAcIlITIES:

mASTErINg DESIgN Of All plATfOrm TypES (flNg, SpArS, fIxED plATfOrmS

AND fpSO), ADDED-vAluE prOcESS SKIllS AND prOjEcT ExEcuTION cApABIlITIES

• fLNG LEADERSHIP:

TWO fAcIlITIES uNDEr cONSTrucTIONAfTEr frONT-END ENgINEErINg DESIgN

(fEED) cOmplETION fOr SHEll AND pETrONAS; SEvErAl cONcEpTuAl

STuDIES fOr vArIOuS clIENTS

mAIN OffSHORE ONGOING PROjECTS:

SHEll prEluDE (AuSTrAlIA), umm lulu (uAE), mArTIN lINgE (NOrWAy),

BlOcK SK316 (mAlAySIA) AND HEjrE (DENmArK)

• INVESTmENTS IN OffSHORE

COmPETENCIES: SHArE purcHASE IN KANfA,

A TOpSIDES/prOcESSINg TEcHNOlOgy SpEcIAlIST AND mAjOrITy STAKE IN INOcEAN, A NOrWEgIAN fIrm

SpEcIAlIzED IN Hull DESIgN

4.7% ONSHOrE/OffSHOrE ADjuSTED OpErATINg mArgIN

€5.8 bILLION ONSHOrE/OffSHOrE

ADjuSTED rEvENuE


BAcKlOg

ONSHOrE/OffSHOrE prOjEcTS BETWEEN €10 – 100 mILLION40 ONSHOrE/OffSHOrE

prOjEcTS BETWEEN €100 –600 mILLION18AlmOST

TECHNIP IN 2014

OPERATIONS

susTaINabIlITy


OffSHORE

from the Americas…In September 2014, we won a substantial engineering, procurement, installation and construction (EPIC) contract from BP Trinidad and Tobago llC for the development of the Juniper project, to be located off the South East coast of Trinidad. The scope of work consists of design, detailed engineering, procurement, construction, load out and mechanical completion of 4,000-tonne topsides that can process 590 million standard cubic feet per day of gas and a 5,500-tonne jacket. leveraging our integrated approach, the contract also covers provision and installation of subsea infrastructure.

… to the North SeaIn the North Sea, Technip in consortium with Samsung Heavy Industries, continued to work on the topsides for a fixed production platform that will be installed in Total E&P Norge’s Martin linge development. The design of the platform topside according to the Norwegian regulations represents an engineering challenge. Thanks to a pro-active

conventional offshore delivers a strong foundation

In the offshore business, Technip is one of the few operators capable of offering solutions for any offshore challenges. In terms of capabilities, we provide conceptual studies and front-end engineering design (FEED) as well as project management and engineering, procurement, construction (EPC) of fixed and floating platforms. Our portfolio of solutions spans from fixed platforms for shallow water and Spars to semi-submersibles, tension leg platforms (TlP) and floating production for deep to ultra-deepwater.

Conventional shallow-water projects represent the vast majority of offshore investments today. But conventional is not synonymous with easy. New shallow-water developments, no matter where they are located, are increasingly challenging. In 2014, we saw significant developments around the globe of these types of projects.

expertise anD experience at any Depth Deliver

strong global footprint anD bacKlog

46_47

weight control approach, we aim to maintain the overall weight of topside, which will enable each of the four modules to be installed with just one lift.

In 2014, the jacket and wellhead unit were delivered for the HEJRE project, which was awarded to Technip, in partnership with DSME, in 2012. located offshore Denmark

at a water depth of 70 meters, HEJRE includes a 11,500-tonne topside supported by a 7,500-tonne jacket and is designed to process high pressure and high temperature hydrocarbon fluids. The platform also offers living quarters for 70 people. The contract covers engineering, procurement, fabrication, hook-up and commissioning assistance for the fixed wellhead, process platform and associated facilities. Furthermore, in 2014 we acquired a stake in Kanfa, a topsides/processing technology specialist and we took majority stake in Inocean, a firm specialized in hull design, bringing additional competencies and strengthening our position in the North Sea market.

from the middle East…In this region, Abu Dhabi Marine Operating Company (ADMA-OPCO) awarded us a contract for project management consultancy (PMC) services for the EPC phases of the zakum Oil lines Replacement Project-Phase 1 (zKOl). The zKOl project will replace

“the combination of our technologies and capabilities in the subsea, offshore and onshore business, has enabled us to consolidate our position of flng leader.”

1 2 Our employees are committed to delivering high quality solutions.

1 2

TECHNIP IN 2014

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susTaINabIlITy


consortium). umm lulu is a large offshore super complex totaling over 90,000 tonnes. We are responsible for the engineering of the project and share the procurement and commissioning works with NPCC. The platform’s topsides will be installed using our floatover method, which allows a high proportion of the hook-up and pre-commissioning work to be completed onshore prior to load-out, thereby significantly reducing both the duration and cost of the offshore commissioning phase.

… to AsiaIn Malaysia, we continued to make progress on the central processing platform and a bridge-linked wellhead, as part of an engineering, procurement, construction, installation and commissioning (EPCIC) contract that was awarded to a joint venture between Technip and Malaysia Marine and Heavy Engineering. This facility is part of the Block SK316 gas field development in Sarawak, Malaysia, in a water depth of 104 meters.

aged oil pipelines in the zakum field, aiming to enhance integrity assessment and sustain oil production. The first phase consists of about 90 kilometers of oil pipelines replacement and associated wellhead towers modification work.

In Abu Dhabi, work continued on the umm lulu project, which was awarded in 2013 to a consortium of Technip and National Petroleum Construction Company (NPCC

1 2 Our expertise covers a wide range of offshore infrastructures.

1 2

weight of the umm lulu large offshore super complex

90,000 tonnes

48_49

flng delivers competitive advantage

The market for floating liquefied natural gas (FlNG) facilities continues to mature. Once considered as a new way of bringing remote offshore gas resources to the market, FlNG is increasingly seen as an economically environmentally advantageous and an economically feasible alternative to developing onshore liquefaction facilities. Depending on the field’s location, FlNGs may be more competitive than an onshore lNG plant. In this context, we continued to progress on two of the market’s most important FlNG projects. Our integrated approach, with a combination of proprietary technologies and capabilities in the subsea, offshore and onshore business, has enabled us to consolidate our position of FlNG leader.

ANADARKO HEIDElBERG SPAR

In late 2014, we delivered the Heidelberg Spar to Anadarko Petroleum, one month ahead of schedule and just two years after construction began in our yard in Pori, Finland. The Heidelberg Spar is the 15th Spar delivered by Technip (out of 19 Spars in operation worldwide) and demonstrates the Group’s leadership for this kind of floating platform. Heidelberg is the result of a long-standing relationship with Anadarko, which has, over the years, made extensive use of Technip’s know-how and expertise in Spar technology.

The Heidelberg Spar will join its twin, Lucius, which we delivered last year to Anadarko and which is currently in operations in the Gulf of Mexico. It has a capacity of more than 80,000 barrels of oil and 2.3 million cubic meters of natural gas per day.

The two twin-truss Spars were developed using a “design one; build two” strategy, enabling Anadarko to benefit from optimized cost- and schedule-driven projects.

Technip’s operating center in Houston, Texas, USA, provided the overall project management and engineering. The detailed hull design and fabrication were carried out by our construction yard in Pori, Finland.

RESULTS DELIVERED

TECHNIP IN 2014

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Prelude first Turret mooring System modules are being integratedFor the Shell Prelude FlNG project, which was awarded to the Technip Samsung Consortium in 2012, the first modules of the turret mooring system (TMS) have been delivered to the Samsung Heavy Industries yard located in Geoje, South Korea, where they are currently being integrated, as well as the topsides’ modules. Technip is also executing a large subsea installation contract for Prelude, covering the management of key interfaces with the hook-up and commissioning of the Prelude FlNG facility.The consortium also has a 15-year master agreement with Shell for the design, construction and installation of multiple FlNG facilities over the span of the contract.

Awarded to the Technip Samsung Heavy Industries Consortium by Shell, the Prelude FlNG project will help unlock new energy resources offshore.

Topside work begins for Petronas fLNGIn April 2014, Petronas launched the hull of its first floating liquefied natural gas (PFlNG 1) facility at the Daewoo Shipbuilding & Marine Engineering (DS ME) shipyard in Okpo, South Korea. Soon after, work began on the topsides designed by Technip’s operating centers in Kuala lumpur,Malaysia and Paris, France.

Our emergence as the leading FlNG engineering contractor positions us well for future expansion of offshore or near-shore FlNG.

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operations

onshore VERy mAjOR PROjECT AwARD:

yAmAl lNg (NOvATEK, TOTAl AND cNpc), A prOjEcT lOcATED

IN SIBErIA, AWArDED TO TEcHNIp fOr 3 gAS lIQuEfAcTION TrAINS

Of 5.5 mTpA cApAcITy EAcH

ExPANDED ONSHORE DOwNSTREAm POSITION: ETHylENE AND pETrOcHEmIcAlS

DErIvATIvES, rEfININg, lIQuEfIED NATurAl gAS (lNg)

& gAS-TO-lIQuIDS (gTl), fErTIlIzErS

EARLy INVOLVEmENT: TO ADDRESS ClIENT NEEDS FOR OPTIMIzED

COST- AND SCHEDulE-DRIVEN PROJECTS

STRATEGIC ACqUISITION: zIMMER® POlyMER TECHNOlOGy BuSINESS

IN ORDER TO CONTINuE TO ExPAND OuR RANGE OF ExPERTISE

ONSHOrE/OffSHOrE prOjEcTS BETWEEN €10 – 100 mILLION

ONSHOrE/OffSHOrE prOjEcTS BETWEEN €100 – 600 mILLION40 18AlmOST

€11.2 bILLIONONSHOrE/OffSHOrE

BAcKlOg


ADjuSTED rEvENuE

ONSHOrE/OffSHOrE ADjuSTED OpErATINg mArgIN4.7%

TECHNIP IN 2014

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susTaINabIlITy


ONSHORE

early involveMent anD project ManageMent

consultancy Deliver groWth anD

future opportunities

early involvement and technologies deliver long-term value creation

In recent years, we have widened our portfolio of onshore solutions, notably through the acquisition of Stone & Webster process technologies in 2012 and pursued a strategy of early involvement, to meet increasing client needs and expectations for optimized cost- and schedule-driven projects.

Deep understanding yields important EPC contractsIn May 2014, we finalized the award of a very major engineering, procurement and construction (EPC) contract for the yamal lNG project. For 14 months prior to the award, we had been involved in providing project planning, detailed engineering, estimation and procurement work for the client. This gave us a comprehensive understanding of the project, around

which the project execution plan had been built. JSC yamal lNG selected Technip and its partners for the EPC of three liquefaction trains that are among the world’s largest. This award validates our strategy of collaborative risk management with our clients with proper definition of costs and schedule in a detailed project execution scheme before content finalization.

bolstering onshore technologiesEarly involvement is also a key driver when it comes to selecting processing technologies. Our successful acquisition of Stone & Webster process technologies in 2012 strengthened our portfolio of cutting-edge solutions in refining, hydrogen, ethylene, petrochemicals and GTl.

This enabled us to set up a worldwide technology licensing business under the Technip Stone & Webster Process Technology brand. In 2014, we further reinforced our downstream technology portfolio by purchasing

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1 2

1 The yamal lNG facility will comprise three liquefaction trains that are among the world’s largest.

2 Technip is a leading lNG player involved in several projects.

from Air liquide Global E&C Solutions Germany all of its zimmer® polymer technology business. This new polymers technology business is integrated into Technip Stone & Webster Process Technology. In petrochemicals, we also built on the expertise of our Badger Joint Venture with ExxonMobil and on existing technology alliances with leading players such as BP, Ineos, Sabic, Topsøe and Total.

Our technologies were at the heart of a major downstream success in North America this year. Sasol awarded Technip a contract to supply our proprietary ethylene technology and front-end engineering design (FEED) for a world-class ethane cracker to be located at Sasol’s lake Charles site in louisiana, uSA. Soon after, Sasol also selected us to provide engineering and procurement for eight proprietary ultra Selective Conversion (uSC®) furnaces for the same lake Charles cracker.

In biofuels, Technip in Italy and Biochemtex, which is the major shareholder of Beta Renewables, signed

an alliance agreement for future Biochemtex Second Generation Bioethanol projects. Biochemtex owns the world’s leading second-generation bioethanol technology (PROESA) that allows to produce biofuels using non-edible biomass. We also won a contract for Cargill’s new ethanol plant in Germany, reflecting our position as a leading provider of biomass ethanol production technology and demonstrating our leadership in market-leading biofuel technologies.

“in 2014, we further reinforced our downstream technology portfolio.”

TECHNIP IN 2014

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susTaINabIlITy


1 Technip PMC provides experienced personnel to manage projects on behalf of our customers.

2 Over the years, Technip, alone or in joint venture, has executed several important projects in Ras laffan Industrial City in Qatar.

1 2

tools plus a keen understanding of how to deliver projects successfully. Technip PMC gathers all the know-how and expertise we have acquired over the years, in executing some of the world’s most challenging projects.

Linking fEED to PmC and to executionIn June 2014, Petronas awarded Technip, as leader of a joint venture with Fluor, a substantial PMC contract for the Refinery and Petrochemical Integrated Development (RAPID) project located in the state of Johor, Malaysia. The contract includes overall project and site management of the RAPID project and provision of project management services for 22 specific engineering, procurement, construction and commissioning (EPCC) packages. A couple months after this contract was awarded, Petronas also announced that our joint venture with Fluor would be responsible for the execution of the utilities, interconnecting and off-sites (uIO) work for the RAPID project. Our operating center in Kuala lumpur, Malaysia, is in charge of the execution.

fast growing pmc business delivers new source of revenues

As projects have become bigger and more complex, we have pursued an onshore strategy focused on early project involvement and delivery.

One important development has been the growth of Technip Project Management Consultancy (PMC), the business unit which was launched in 2013. In only two years, the projects won and to be executed by Technip PMC represent an estimated revenue potential exceeding uSD 1 billion, providing good visibility over the next five-years.

Headquartered in london, Technip PMC manages the development and execution of projects on behalf of our clients through highly experienced personnel. Carrying out large-scale projects requires people with the right experience of execution and project management

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The PMC and uIO contracts followed the FEED that we were awarded in 2012 for the RAPID project, demonstrating the “pull-through” value of early involvement.

PmC takes off in middle EastAlso this year, Abu Dhabi Marine Operating Company (ADMA-OPCO) selected Technip PMC for the management of the EPC works of the Nasr Phase II Full Field Development project – Packages 1, 2 & 3. The scope of work covers the overall management of the EPC phases under execution in the united Arab Emirates, Singapore and South Korea. Earlier in February 2014,

OuTSTANDING SAFETy RECORD IN JuBAIl

In 2014, we handed over our portions of the 400,000 barrels-per-day Al Jubail refinery to its owner, Saudi Aramco Total Refining and Petrochemical Company’s (SATORP), a joint venture between France’s Total and Saudi Aramco. This massive grassroots project has been our largest single onshore project since 2009.

From the start, safety was both client’s and Technip’s main priority. We spent 90 million man-hours executing our portion of Jubail without a single Lost Time Incident.

Originally we were contracted for program management services (PMS), which included FEED, developing capital and operating cost estimates, preparing the EPC bid packages, and providing management services during the EPC execution. SATORP later awarded us two EPC contracts for the hydro and catalytic cracking conversion process units, some utility units and the network and process control system of the entire refinery.

The SATORP Al Jubail complex came on stream mid-2014, eight years after the first agreements were signed and just five years after construction began.

RESULTS DELIVERED

Technip PMC estimated revenue potential

usD 1 billion

TECHNIP IN 2014

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susTaINabIlITy


At Technip, we are committed to meeting our clients’ safety requirements on our onshore projects.

ADMA-OPCO attributed a subsea PMC contract for the EPC phases of zakum Oil lines Replacement Project-Phase 1 (zKOl) to Technip PMC. These new awards, in addition to the five-year Project Management Consultancy services contract awarded by Kuwait Oil Company (KOC) at the end of 2013, continue to reinforce our position in project management consultancy within the region, where we have risen to the top of the field in a short span of time.

“We have pursued a strategy focusing on early involvement.”

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Deeper cooperation Delivers technology

breaKthroughs

INNOVATION & TECHNOLOGy

600+ PATENT fAmILIES REGISTERED,

IN OvEr 90 cOuNTrIES •

GLObAL NETwORk Of mOrE THAN 500 ExpErTS

•

OVER 10 R&D CENTERS, cOvErINg Our BuSINESS SEgmENTS,

WOrlDWIDE (BENElux, BrAzIl, frANcE, INDIA, uK, uS)

•

r&D: mOrE THAN EvEr A kEy DRIVER fOR

COmPETITIVENESS AT A TImE WHEN clIENTS ArE lOOKINg

TO OpTImIzE THEIr INvESTmENTS

ONE INNOVATION & TECHNOLOGy CENTER,

A cENTrAl HuB fOr THE mANAgEmENT Of SuBSEA TEcHNOlOgy DEvElOpmENTS,

BASED IN ruEIl-mAlmAISON, frANcE•

CAPITALIzING ON R&D: frOm cArBON fIBEr ArmOr

TO ANTI-H2S pOlymEr SHEATH TO ENSurE ENvIrONmENT prOTEcTION

•

INNOvATION & TEcHNOlOgy: A STRATEGIC fOCUS AS KEy DIffErENTIATOr

•

ALmOST €85 mILLION ANNuAl r&D INvESTmENT

TECHNIP IN 2014

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susTaINabIlITy


research partnerships deliver out-of-the-box thinking

Research co-development plays an important role in our innovation and technology strategy. In 2014, Technip renewed partnerships with leading research institutes. We extended the framework agreement with IFP Energies nouvelles (IFPEN) to respond to the new challenges of the ultra-deep offshore developments. This alliance builds on more than 40 years of close collaboration between Technip and IFPEN, a public-sector research and training center. The work will focus on developing technologies for flexible and rigid pipes as well as umbilicals.The renewal of this partnership paves the way for continued collaboration on ongoing initiatives such as the anti-H2S polymer sheath (a patented solution) for flexible pipes, or risers with composite carbon fiber armor, which both enable Technip to address the challenges associated with ultra-deepwater projects. This partnership covers new areas of research such as flow assurance and asset integrity

management to optimize life-of-field services. The agreement leverages the expertise of IFPEN’s applied research teams and the Institute’s industrial-scale testing facilities.We also renewed our technology partnership with France’s Alternative Energies and Atomic Energy Commission (CEA). The Commission is a renowned expert in material sciences and robotics, especially for applications in hostile and inaccessible environments. Our collaboration with CEA has led to breakthroughs in real-time pipe monitoring using miniature embedded sensors, or to the development of a collaborative robot to perform one of the flexible end fitting difficult and labour intensive mounting operations.

working with clients delivers innovation

Our research work is complemented by in-field technology development. By working hand in hand with clients and industry partners, we are helping solve some of the major flow assurance challenges, such as hydrate formation

1 ETH-PiP is a technology qualified for continuous heating over 25 years at operating temperatures up to 120°C.

2 Anti-H2S layer is a new Technip patented technology that expands the domain of application of flexible pipes.

“our research work is complemented by in-field technology development.”

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in production flowlines and riser systems. Technip is a leader in electrically trace heated pipe-in-pipe systems (ETH-PiP) enabling to maintain a minimum temperature in the production system, either during transient period (shut-down) or during steady state production, in order to avoid hydrate formation and/or wax deposition, hence preventing pipeline blockage and consequent impact on production and the environment.

On projects where we worked in conjunction with ExxonMobil, Total, Woodside Energy and IFPEN, we have taken ETH-PiP a step further by developing a solution that uses active heating to dissociate hydrate plugs safely. The final successful testing of this technology was completed in 2014 and the results were presented at the 8th International Conference on Gas Hydrates. Another example of how we use our innovations to enable clients to deliver their own breakthroughs is the Special Handling System we have developed for Statoil’s Åsgard development (see “results delivered” box).

HElPING STATOIl DEVElOP A SuBSEA FACTORy

340 meters below the rough and frigid waters of the Norwegian Sea, Statoil is revolutionizing gas production, accompanied by Technip.

To extend the lifespan of the Åsgard field, Statoil is installing a subsea compression system using a ship-borne Special Handling System (SHS), which has been designed, built and will be operated by Technip.

Subsea gas compression opens up new possibilities for Statoil in deeper waters and further offshore, by enabling operations in areas where offshore facilities are more complex to develop, like harsh environment. It is also an important step towards realizing a subsea factory – a processing facility on the seabed that is remotely controlled from the shore.

Once the compressors come online in 2015, Technip will provide module support. The SHS will be fitted permanently on the North Sea Giant, our highly advanced inspection, maintenance and repair vessel, capable of retrieving and reinstalling any of the 400-tonne compression modules in heavy seas with up to nine-meter waves.

21

RESULTS DELIVERED

TECHNIP IN 2014

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susTaINabIlITy


investing in quality Delivers a true

culture of excellence

qUALITy

widespread engagement delivers change in mindset

We rolled out Quartz in 2014. Quartz focuses on integrating the quality mindset from the very start of our activities; it is designed to reenergize individual passion for quality by giving all employees the tools needed to manage risks, anticipate problems and share experiences with each other.

The first and most important facet of Quartz is quality leadership, which is defined as empowering everyone to be a quality leader. To foster it, in 2014, the program’s main objective was awareness and education. 1,500 managers attended Quartz leadership Workshops held throughout the year. Within one week of deploying the new Quartz e-learning tools, over 2,200 people had completed the online training. The year’s awareness activities reached a momentum in November 2014, which was World Quality Month.

Quality has always been a strategic priority for Technip. With a strong focus on execution, our teams are mobilized to successfully deliver projects to help our clients tackle complex challenges. In order to improve the quality performance of our projects, we implemented methodologies, processes, knowledge and risk management, key performance indicators and measurement systems. The following step in our quality journey was Quartz, our three-year Quality program developed in 2013.

1,500managers attended a Quartz leadership Workshop in 2014

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“ONE MANuFACTuRING” RAISES CuSTOMER SATISFACTION

The flexible pipes we are fabricating are designed to take up challenges – to resist internal and external pressure, extreme temperatures and corrosive mediums. Quality is key.

In 2014, our four flexible pipe plants implemented the “One Manufacturing” approach, an excellence program aimed at producing flexible pipes with the same level of quality, whether they are manufactured in Brazil, France or Malaysia. The objective is to continue improve customer satisfaction by increasing the quality of our products.

Developed by an international and multi-disciplinary team, “One Manufacturing” was deployed among over 4,500 employees in the plants over the course of the year 2014. It took existing best practices and combined them into a common strategic plan. It is built on a framework called “BEST”, which stands for BEtter and Safer Together.

Today, our four flexible pipe plants share the same suppliers and logistic strategies and have aligned their technical processes. This enables Technip to streamline the global planning of production: any plant can produce any order with the same high level of quality.

To mark the occasion, quality days were held throughout the organization, attracting almost 2,000 attendees. The Quartz intranet portal was relaunched in the same month and received 11,000 unique visitors in the same period – out of a workforce of more than 38,000.Another important part of education is sharing best practices. During the workshops held in November, nearly 80 new “lessons learned” were collected from project team members. These best practices are shared across the Group and available to all to never stop learning.

increased effectiveness delivers measurable progress

Quartz is a three-year program that will continue to ramp up in intensity and scope throughout the company. The goal of Quartz is to embed a culture of operational excellence and continuous improvement in the Group by 2016. As an illustration of the measurable impact of Quartz on improving quality on operation, we can point out that about 130 quality excellence projects were implemented by the end of 2014. These projects are initiatives to improve operational performance or business excellence. Quality Alerts have more visibility and are now treated as an opportunity to learn and improve. Before Quartz, Technip used to record on average 6-8 quality alerts annually. In 2014, 32 alerts were reported. Supplier and subcontractor management is another important part of Quartz. Technip now proactively evaluates suppliers and subcontractors to reduce operational risks that could adversely affect quality and costs. With Quartz, in 2014 alone, about 40 of them carried out technical-risk base assessment. These and many other Quartz initiatives have resulted in improvements in operations performance and business excellence. We estimate that up to end 2014, Quartz, in its initial implementation, has created the opportunity to reduce the inefficiency and so improve performances by €25-30 million in our main operations.

All our employees focus hard on our safety and quality programs.

RESULTS DELIVERED

sustainability

Delivering added-value

in the long-term

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TECHNIP IN 2014

OPERATION

SUSTAINAbILITy

64 HuMAN RESOuRCES

68 HEAlTH, SAFETy & SECuRITy

72 NATIONAl CONTENT & COMMuNITy SuPPORT

76 ENVIRONMENT

80 ETHICS & COMPlIANCE

TECHNIP IN 2014

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sustainability

technip | 2014 ACTIvITy ANd SuSTAINAblE dEvElOPmENT REPORT

cooperation betWeen all Delivers shareD

achieveMents

HUmAN RESOURCES

19 COUNTRIES cErTIfIED AS A TOp EmplOyEr

IN 2014•

25% Of TECHNIP’S EmPLOyEES ArE WOmEN

48 COUNTRIES, 118 NATIONAlITIES

•

1st COmPANy IN THE ENErgy INDuSTry

cErTIfIED TO THE EDgE STANDArD, THE glOBAl STANDArD fOr gENDEr

EQuAlITy IN THE WOrKplAcE

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teaming up across the business delivers sustainable solutions

Enabling “One Technip”An increasing number of our major projects, such as yamal lNG, in Russia and Kaombo, in Angola, are multi-center driven: the scope of work includes different packages that are executed by several operating centers, manufacturing plants and dedicated construction yards. Working together as “One Technip” is key to successful execution.

In this respect, Human Resources (HR) work closely with the business as a partner to attract, select and align the mobilization of staff, to ensure a successful execution of the project. This process benefits from the current deployment of the Job Classification project (see next section). Close cooperation between business and HR is crucial to manage staffing challenges and ensure employee engagement remains at the highest possible level.

Another way we work as “One Technip” is through workload sharing. In this challenging business environment affected by the oil price drop, we reassigned workload within the Group to ensure that entities remained active at optimal levels.

Strengthening our employer brandIn 2014, we were certified as a Top Employer in 19 countries (eight in Europe, four in the Americas and seven in Asia Pacific) and two continents (Asia Pacific and Europe). This certification has been awarded by the independent Top Employers Institute, a specialist in the field of research into HR management and working conditions. This award recognizes the excellence of our Human Resources practices and teams. We will continue working to expand the number of countries in which we are certified, with the aim of obtaining the global certification in 2015. In addition, we have embraced social media to raise the attractiveness of Technip as a global employer. Over 95% of our 280,000 linkedIn followers are not Technip

Knowledge sharing across generations is a priority at Technip.

TECHNIP IN 2014

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sustainability


To promote this critical topic throughout the whole company, an internal and external communications plan was also implemented in 2014. Activities included holding our first ever Gender Diversity Forum, introducing a global visual identity for Gender Diversity at Technip, dedicating the July 2014 issue of the horizons internal magazine to Gender Diversity and sponsoring the Global Summit of Women held in Paris in June 2014. As a result of these and many other efforts, Technip became the first company in the energy industry to be certified to the EDGE (Economic Dividends for Gender Equality) standard, the global standard for gender equality in the workplace.

Speaking a common HR languageTo empower employees to drive their own careers with Technip, the Human Resources department and the business have been working together on the Job Classification project. 2014 was a turning point for this initiative. After rich and positive discussions with

employees. In 2014, we created a “careers” tab on our Facebook page. At the end of the year the corporate page counted more than 30,000 fans. We also use Twitter for attraction and recruitment purposes by sharing one job opportunity by week.

increased understanding delivers empowerment across the company

Increasing gender diversityGender Diversity is an absolute priority for Technip for which a specific strategy and action plan was executed in 2014 and will continue during 2015 and beyond. Gender Intelligence workshops with the Regional Executive Committees of all regions were completed by July 2014, in order to raise awareness on this topic. A cascade plan, following “Train the Trainer” workshops to bring knowledge in-house, was initiated in three regions in 2014 and will be extended to all regions in 2015.

In 2014, we continued to develop our talents and we added specific skills in our teams.

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the social partners and approval by Technip’s senior executives, the deployment of our new Job Classification system started in 2014 and will be completed globally in 2015. The system provides all employees, managers and HR with a common language when talking about jobs, which enables us to define and describe potential careers within Technip more clearly. It also supports internal mobility because it is now much easier to compare job descriptions and responsibilities across business segments, regions and departments.

Furthermore, we encourage employees to have regular career talks with their HR representatives. These dialogues are an opportunity to take time out of day-to-day activities and reflect on future career paths.

knowledge sharing across generationsIntergenerational knowledge sharing is a priority at Technip. For example, our Project leader Development Program transfers knowledge from experienced mentors to a new generation of project managers. The Program currently has 60 mentors and 110 participants. In addition, technical experts, including recently retirees, lead a wide range of training courses to new hires and specialists through Technip university. Actually, 6% of Technip’s workforce is over the age of 60 and their combined experience and knowledge is a priceless asset that the Group cannot afford to lose. For several years now, our goal has been to transfer their knowledge to younger generations through special training programs and missions. For example, in 2014, we sponsored a 12-day workshop in Ghana, run by a recently retired Technip engineer, on the fundamentals of subsea engineering for final year students at the Regional Maritime university.

Across social relationsTechnip has built a culture based on trust, mutual respect and dialogue. The quality and frequency of the discussion with our social partners remain a key priority for Group HR. In 2014, 40 collective bargaining agreements were entered into within 14 entities and 174 agreements were in force within 24 entities. Furthermore, the European Works Council includes 14 employee representatives who meet twice a year.

GENDER DIVERSITy FORuM

On September 29, 2014, Technip held its first global Gender Diversity Forum in Paris. It was attended by 70 participants, including Technip leaders and representatives from all the regions and external guests, including two Technip clients and partners on gender diversity actions as well as one member of the Board of Directors.

The purpose of the Forum was to share some of the actions and commitments from the different regions, to help create a common understanding and gender inclusive language and to define a vision for the future of Gender Diversity at Technip. A specific workshop was dedicated to the latter topic, with a vision exercise for the future which consisted of drawing a picture on a flipchart representing what Gender Diversity will look like in 2015.

The Forum was also the opportunity to celebrate some of the excellent achievements of women at Technip.

RESULTS DELIVERED

TECHNIP IN 2014

OPERATIONS

sustainability


aMbitious policy Delivers iMproveD

perforMance

HEALTH, SAfETy & SECURITy

9,200 LEADERSHIP AND mANAgEmENT vISITS

•

709,000 HOURS Of HSE TrAININg

0.19 TOTAL RECORDAbLE CASE fREqUENCy

(Trcf) IN 2014, vErSuS 0.26 IN 2013•

2,200 HSE AUDITS cONDucTED

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The pace of leadership and management visits remained high, with over 9,200 leadership and management visits conducted worldwide last year. In addition, top management now conducts detailed reviews of all reported incidents that could potentially lead to serious injuries within 10 days of the occurrence. This reflects the priority given to safety and ensures that the required corrective action is taken rapidly in order to avoid recurrence.

A total of 202 million man-hours were worked at Technip’s facilities, offices and sites worldwide in 2014.

actionable data delivers effective systems and tools

HSE is essential to our industry and is an absolute priority for Technip. We work continuously to improve employees’ working conditions in terms of health, safety and environment. Everyone at Technip is responsible for ensuring a safer environment on our worksites throughout the world.

Our total recordable case frequency (TRCF), which measures the recordable incidents per 200,000 hours worked, decreased from 0.26 in 2013 to 0.19 in 2014. In addition, we managed to further decrease the frequency of incidents that could potentially lead to serious injuries from 0.14 to 0.12, demonstrating our continued efforts to improve our systems and processes but also our safety culture.

10,200employees attended

Pulse training in 2014

Our employees strive to strictly apply our health, safety and environment (HSE) policy.

TECHNIP IN 2014

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sustainability


communications, such as tool box talks, incident alerts, safety moments and active communication by our managers and supervisors in the workplace.

enabling personal leadership delivers sustainable culture of safety

Procedures and systems are only half of the story when it comes to safety. Employee engagement holds the other key to create a culture of safety. Consequently, we empower them to become safety leaders. The first way is through training. Our Pulse program is the main way we develop a positive HSE culture within Technip. It aims to create awareness of the challenges posed by safety and of the human, material and financial costs of accidents. So far, more than 33,000 employees have attended Pulse sessions, ranging from senior managers and managers/supervisors to the general workforce and engineers.

In 2014, we worked extensively on improving our systems and tools. We implemented five performance standards to further harmonize the management of the main high risk activities (works at height, lifting and rigging, confined spaces, excavations and trenching and road and travels) and will continue to implement and improve the existing ones in 2015.

After its initial rollout in 2013, our 12 Safety Actions campaign was extended and refreshed in 2014. These actions, which must be learned and adopted by everyone to ensure a greater level of safety on Technip sites, consist of six Do’s and six Don’ts. years of HSE data show us that if workers respect the 12 Safety Actions they can significantly reduce the risk of accidents for themselves and their co-workers. Dedicated videos and a mobile application were developed in 2014 to support the training and give additional practical examples in an understandable and user-friendly manner. This was complemented by ongoing e-learning, classroom training and other day-to-day

1 2

1 Doing the right thing is an absolute commitment for Technip and a priority in our industry.

2 From project sites to offices, our people strive everyday to reach the highest HSE standards.

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The cornerstone of Pulse is a special leadership and communication program that trains each employee to become safety leaders. The goal is to train 75% of Technip’s employees by 2015. In 2014, Technip top management and executives conducted more than 800 HSE leadership visits and 9,200 management walkthroughs. In 2015, we will focus on the implementation of the Pulse program on our projects around the globe involving our clients and contractors.

The second way we empower employees is through behavior-based safety (BBS). Several programs are currently implemented in our regions. These programs work by showing how individual actions affect those around us. They demonstrate how all employees play a life-saving role in HSE best practices.

In 2014, we extended the implementation of BBS programs into a wider range of activities and conducted a comprehensive review of the most effective BBS Programs amongst our regions. Based on the results, we developed a common framework for Technip that we plan to implement in all our operational activities in the next three years, starting with a focus on our plants and vessels in 2015.

Combined with Pulse, BBS will ensure that everyone at Technip sees safety as a value as well as a priority. We are empowering employees to take responsibility for the safety of their co-workers and not just themselves and encouraging them to go beyond the call of duty when it comes to HSE.

BEHAVIOR-BASED SAFETy IN ACTION

In October 2012, Technip won a major onshore contract as part of a joint venture for the design and construction of the new Etileno XXI petrochemical complex in the Mexican state of Veracruz. The million tonne-per-year ethylene cracker will be the most modern and efficient in operation in the Americas. No onshore facility this big or complex has ever been built in the region.

A vast BBS program was implemented in 2013 for most of the people recruited for the 16,000 strong workforce, with over 220,000 hours of HSE training and more than 46,000 BBS observation and coaching sessions. Today, more than 95% of observations are reported as safe for over 58 million man-hours worked.

As further evidence of the effectiveness of BBS, in 2014, 10 million man-hours were worked with no time lost to injury, an average of three million per month. In less than two years, the TRCF at Etileno XXI has dropped by nearly 70%, from 0.85 to 0.27.

9,200leadership visits and

management walkthroughs

RESULTS DELIVERED

TECHNIP IN 2014

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sustainability


NATIONAL CONTENT & COmmUNITy SUPPORT

supporting local coMMunities Delivers future DevelopMent

contributing locally delivers strong national content

Operating in 48 countries around the world, Technip has always focused on increasing national capabilities. In 2014, 80% of employees were nationals and 84% of staff in management positions were nationals. Today, we have over 118 nationalities contributing to the “One Technip” approach.With every new contract comes the opportunity to improve the employability of locally sourced staff, to reinforce our relationship with community stakeholders and to build a durable presence in the country. To ensure the effectiveness of our approach, each of the regions implements a strategy guided by our Group principles but adapted to the local context and regulations.

Hiring talents locally depends on the availability of a trained and qualified talent pool. Hence, in 2014, we continued to work closely with universities

in several countries to help develop the next generation of engineers and technicians. One example is the signing of a Memorandum of understanding (Mou) between Technip in India and the Indian Institute of Technology in Madras, to establish a broad partnership in areas including research collaborations with the ocean, civil and metallurgical and materials engineering departments. We can also illustrate this will with the Mou between

“in 2014, we continued to work closely with universities in several countries to help develop the next generation of engineers and technicians.”

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1 2 We increasingly focus on integrating sustainable development approach to our projects and we foster to encourage partnerships with local stakeholders.

1 2

Technip in Malaysia and Curtin university Sarawak which aims to enhance their commitment in training, knowledge sharing and development programs.Our vision of national content is not restricted to local employment; it is also a source of diversity for our leadership and project teams. The 2014-15 class of the Global leadership Program comprised 38 candidates representing a wide cross-section of nationalities. This program is the breeding ground for our next generation of leaders. Furthermore, our Project Management Knowledge Transfer program, which develops talent in this key domain, involved 77 participants of 14 nationalities in 2014.Another way for us to encourage the development of the local economy and labor force is through suppliers and subcontractors. As a first step, we require our local partners to comply with the united Nations Global Compact and we strive to monitor their compliance regularly. In 2014, 40% (corresponding to approximately 1.95 billion euros) of the overall Procurement expenditure is certified

to be sourced in the same country of purchase, reflecting our commitment to contributing to the economies of countries where we operate. In 2014, we appointed a National Content and local Communities Coordinator at Group level, to promote and harmonize the integration of local content in the supply chain. It is also important that our local subcontractors work to apply the same high standards as Technip. That is why in 2014, they received more than 28,000 hours of Pulse for the Workforce training, Technip’s unique global HSE leadership program, in addition to the standard HSE awareness training that subcontractors receive.

84%of staff in management positions

were nationals in 2014

TECHNIP IN 2014

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sustainability


close relationships deliver sustained local engagement

Technip’s approach to local communities spans from supporting long-term programs, such as the READy Fund (the French Red Cross disaster preparedness and response fund), to providing assistance, for example in the case of a local emergency.

For long-term initiatives, we foster open and transparent relationships with key local stakeholders to ensure that positive results will last long after Technip has built and handed over the project to the operator. Most of them focus on youth, health and education, with strong commitment to supporting local partners and universities.

For example, in Colombia, we support “Merquemos Juntos”, a local cooperative organization started 19 years ago to promote economic empowerment for women as a way of counteracting the violence endemic

to the Barrancabermeja region. “Merquemos juntos” is an association that gives work to women, head of households and consists in several projects: community restaurants where lunches are served, grocery shops and microcredits grants that empower small businesses. To date, over 2,200 people have directly benefited from this program. Other illustrations of our engagement include Technip in Malaysia, which is helping a local indigenous community in the country to become economically self-sufficient thanks to ecotourism. Another example is Technip in Brazil,

40%of the overall Procurement

expenditure is certified to be sourced in the same country of purchase

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which is helping underprivileged young people prepare for university entrance exams. Most recently, in 2014, Technip in Angola began assisting the Arnaldo Janssen Centre, which offers medical care, social welfare and vocational training to the street children of luanda.

As far as our assistance programs are concerned, the Technip Relief and Development Fund supports non-profit social and general interest projects through donations. It also contributes to emergency missions. The donations are distributed to the international Federation of Red Cross/Red Crescent. Technip also renewed its support for the Red Cross READy Fund in 2014 and as part of the partnership with the Red Cross, the Corporate Doctor spent three weeks working in Guinea to contribute to fight Ebola.

1 A long lasting presence in Brazil since 1977.2 At Technip, national content is one of our strategic priorities.

1 2

HElPING DEVElOP THE TAlENT OF THE FuTuRE

Colombia and Malaysia are two countries facing a shortage of adequately qualified local talents for local energy projects. To help Colombia staff fulfill its new offshore developments with local content, Technip has established a long-term agreement with the University of Los Andes, one of region’s top engineering schools. With the help of our clients Anadarko and Shell, we have been sending experts from our offices in Houston to teach exploration, drilling, subsea engineering and safety, maintenance and operations of offshore facilities. In 2014 the course consisted of 14 modules and 112 hours of teaching. Since 2012, 103 students have completed the course. In 2015, Ecopetrol, the national oil company, will join the program and the number of modules will increase to 17 totaling 136 hours.

In Malaysia, Technip has developed programs aimed exclusively at young Malaysians. The training combines theory, onsite learning and formal certification for piping and structural engineering. These initiatives are coordinated through partnerships with the governmental agencies SHRDC (Selangor Human Resources Development Centre) and TalentCorp.

We have also signed memoranda of understanding with four different Malaysian universities. 114 piping engineers have been trained and certified as a result and Technip has hired 90 of them since 2006. We have trained, certified and hired 15 Malaysian structural engineers since 2012. Finally, 383 Malaysian employees have been seconded in overseas assignments within Technip since 2009.

RESULTS DELIVERED

TECHNIP IN 2014

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sustainability


innovation Delivers

sustainable benefits

ENVIRONmENT

GROUP’S ENVIRONmENTAL ObjECTIVES:

1. ImprOvEmENT: prOAcTIvE ENvIrONmENTAl

mANAgEmENT

2. prEvENTION: rEDucINg THE ImpAcT

ON THE ENvIrONmENT AND mANAgINg rISK

3. rEDucTION: IN ENErgy, NATurAl

rESOurcES uSE AND WASTE gENErATION

wORLD ENVIRONmENT DAy cElEBrATED IN juNE 2014

IN mOrE THAN 22 COUNTRIES ACROSS

THE GROUP•

mORE THAN 75% Of NON-HAzArDOuS WASTE

SENT TO rEcyclINg

76_77

sustainable solutions and practices. The initiative was followed by additional training sessions and actions held at regional level.To give higher visibility, both internally and externally to our most sustainable innovations, we decided to create the “Technip Reference Catalogue of Sustainable and Innovative Solutions”. We have identified some of the best solutions involving our centers of excellence for technological innovations and expertise such as Technip Stone and Webster.To foster the implementation of eco-design best practices, we successfully applied life-Cycle Assessment (lCA) methodology in two projects. Moreover, we developed a new Integrated Waste Management solution to minimize waste-to-landfill and create local employment. Internally, we continued to implement measures to reduce the energy consumption and environmental impact of our plants, vessels and offices. Most of our vessels are equipped to use low-sulfur fuel oil, to comply with new regulations on Emission Control Areas effective January

Technip fosters responsible best practice sharing.

At Technip, we strive to reduce the environmental footprint of our operations and also those of our clients. We are convinced that our approach combining sustainability and innovation in the solutions we deliver to our clients generates progress for all stakeholders.

increasing skills and awareness delivers better performance

Our sustainable development strategy focuses on leveraging innovation to increase environmental protection, energy efficiency and natural resources conservation as part of our solutions and our operations.

Eco-design is a key driver in this sustainable and innovative strategy. This is why in June 2014, more than 70 Technip engineers attended a seminar and training on “leadership in Energy and Environmental Design”, the international certification program that recognizes best-in-class

TECHNIP IN 2014

OPERATIONS

sustainability


2015. They also operate Shipboard Energy Efficiency Management Plans to identify and apply a wide range of energy efficiency and CO2 emissions reduction methods. In addition, our two newest plants in Açu, Brazil and Newcastle-upon-Tyne, uK, integrate state-of-the-art energy saving and natural resources conservation. Our offices have been running a Green Office program since 2010, which is now producing good results.These and other initiatives have enabled Technip to achieve an 85C Carbon Disclosure Project score in 2014, up from 66C in 2011: these are the scores made from a survey ranking both the transparency and the performance of our climate change strategy.As part of our membership in World Ocean Council, Technip participates in the underwater Noise Modeling and Arctic protection working groups. Being member of Kyoto Club, Technip is promoting an open dialogue with institutions and non-profit organizations on climate change, low carbon economy, bio-based industry and green buildings.

reinforced leadership delivers sustainable technology

As a technology leader in the energy industry, we are pursuing the development of sustainable technologies. We focus on energy consumption and reduction of the risk of pollution. For example, we have adopted double-walled self-containment tanks for light hydrocarbons in our projects worldwide and our work on pipe integrity monitoring – as part of our R&D Morphopipe program –

Technip is striving to reduce the environmental impact of its activities.

70engineers completed leadership

in Energy and Environmental Design training

78_79

reduces the risk of failure due to asset fatigue. Our electrically trace heated pipe-in-pipe (ETH-PiP) technology eliminates the need to dissolve gas hydrate plugs with chemicals that could be harmful to environment.

We are also active in technology partnerships. In 2014, we formed an alliance with Biochemtex, which controls PROESA, the world’s leading second-generation bioethanol technology that converts non-edible biomass into biofuels. This alliance aims to achieve industry leading capital productivity, through the highest standards of HSE, operability, accelerated technological innovation, project execution related developments and reduced project life cycle.

As part of our commitment to the development of sustainable and innovative solutions for our customers, we were awarded a contract by Shell uK limited for the front-end engineering design (FEED) for the onshore elements of the Peterhead Gas Carbon Capture and Storage (CCS) demonstration project in Scotland. The project is designed to capture, compress and transport by pipeline one million tonnes a year of carbon dioxide to an offshore gas reservoir for long-term storage beneath the North Sea. The FEED scope includes a grassroots carbon capture and compression plant and modifications to an existing combined cycle gas turbine power plant.

Another successful example of partnership is the large Scale Vortex Burner, a new technology jointly developed by Technip and Air Products, which ensures ultra-low NOx emissions (gases formed whenever combustion occurs in the presence of nitrogen), higher efficiency and improved reliability for a wide range of furnaces.

ENVIRONMENTAl EDuCATION

Technology alone cannot ensure sustainability. That is why at the Flexibras plant in Açu, Brazil, we invested not only in wastewater treatment, solar heating, rainwater collection and waste management technologies, but also in education to the community.

The goal was to raise awareness among local students and teachers about the region’s ecosystem and natural heritage. Over the span of two months, 48 students from eight local public schools and 26 teachers attended a special training, consisting of classroom work and field classes.

The courses were developed and delivered in conjunction with the Brazilian Instituto Federal Fluminense (federal institute of higher education) and the Municipal Board of Education and Culture.

The work the students did was presented during a local environmental fair, to further insist on the importance to respect and protect the local eco-system to a wider audience.

RESULTS DELIVERED

TECHNIP IN 2014

OPERATIONS

sustainability


ethical behavior Delivers

coMpetitiveness

ETHICS & COmPLIANCE

promoting best practices. One of its main tasks is to monitor the adherence to ethical principles within the Group.

The second pillar is the Ethics and Compliance Committee. Composed of 11 senior managers from across the Group, it reports directly to the Chairman and Chief Executing Officer (CEO). It oversees the implementation of Technip’s Ethics Charter and related policies and procedures. Headed by the Group Chief Compliance Officer (GCCO), it submits an annual review to the Chairman and CEO and recommends

One of Technip’s corporate values is “Doing the right thing” which means conducting business to the highest ethical standards.

Technip maintains a strong commitment to conducting business with honesty, integrity and fairness. We strive to conduct business to the highest standards and in compliance with the legislation in place. The Group is a signatory of the united Nations Global Compact. Our employees are thoroughly trained and we regularly update our procedures to ensure they meet such highest standards.

expanded organization delivers greater engagement

Our compliance program has a dedicated structure that stretches from the Board of Directors to every level of the Group. The first pillar is the Ethics and Governance Committee. Created in December 2008, it is composed of Board members and assists the Board of Directors in

TECHNIP IN 2014

OPERATIONS

SUSTAINAbILITy

11people are part of the Ethics and Compliance Committee

80_81

improvements. It was very active in 2014, notably on reviewing charitable contributions, gifts and hospitality, training and donations. All Technip employees can report to the Ethics and Compliance Committee suspected non-compliance actions, through an independently managed whistleblowing process.

Rounding out the organization is the GCCO, who is in charge of applying and enforcing the Ethics Charter and all applicable anti-corruption policies and procedures. The GCCO also implements and monitors Technip’s Ethics and Compliance program across the Group and reports directly to the Group General Counsel and the Board of Directors via the Ethics and Governance Committee. Regional Compliance Officers are in charge of applying Technip’s anti-corruption and compliance policies at regional level.

clear guidance delivers strict compliance

To govern our business operations, we have implemented several ethics-related operational standards that transpose our general principles into concrete operating procedures. These policies are continually enhanced and revised when necessary. They apply to all operations worldwide.

For example, the Doing Business Abroad-Anti-Corruption policy provides a clear and comprehensive Group-wide framework to help employees operate with honesty and integrity. We also pay particular attention to any factors that could cast doubt on the honesty and integrity of third parties involved in Technip’s business. Our due diligence procedures for commercial consultants, joint ventures/consortia, customs agents and freight forwarders as well as subcontractors, enable us to assess and manage corruption risks while conducting business globally.

These and other policies have contributed to a large-scale initiative to create Technip’s first Code of Conduct. It is currently in the final stages of completion and will be ready for publication in 2015. It will then be made available worldwide and will serve as guidance to employees and as a resource for stakeholders to better understand the role and importance of compliance within Technip.

ETHICS TRAINING ExPANDED

In 2014, Technip continued with the regular training organized by Regional Compliance Officers and the Ethics and Compliance Committee. A special e-learning module was developed and launched to train specifically identified employees on export control regulations, with a particular focus on the rules of export control and embargoes of the European Union and of the United States.

The first objective of the Technip Ethics Charter is to offer opportunities for success to all our suppliers, partners and subcontractors in a spirit of fair competition and mutually rewarding collaboration. Hence, in 2014, Technip continued to train specifically identified employees on antitrust regulations and competition law, both at Corporate and Regional level.

Finally, a new e-learning program was developed in 2014 and will be launched in 2015. The aim is to ensure that specifically identified employees within the Group are appropriately educated on anti-corruption compliance on a regular basis.

RESULTS DELIVERED

inDicators

82_83

84 REPORTING SCOPE

86 SOCIAl DATA

88 ENVIRONMENTAl INDICATORS

90 SuMMARy OF ADJuSTED FINANCIAl INFORMATION

91 GlOBAl REPORTING INITIATIVE

94 GlOSSARy

INDICATORS


reporting scope

INDICATORS

Angola

Australia

Brazil

Brunei

FinlandCanada

Colombia

France

Germany

Ghana

Greece

India

Indonesia

Vietnam

Venezuela

USA

UK

Italy

Malaysia

Mexico

Norway

Singapore

Spain

Thailand

The Netherlands

UAE

Social data 2014The 2014 reporting scope follows the financial and legal scopes of consolidation. This includes 84 entities belonging to the Group as of December 31, 2014, including entities that were acquired or newly consolidated in 2014 (current scope).For consistency purposes and to facilitate the comparison between two consecutive years, the reporting carried out on training and absenteeism does not take into account data collected from entities that have not been consolidated within the Group throughout the entire year.The scope covers: (i) personnel on the payroll and (ii) contracted workforce as agency personnel and contractors working on vessels and industrial sites throughout the Group except those working on construction sites. The input, collection and consolidation of social data have been established using a common software tool across the Group. A protocol defining the social indicators is reviewed and improved each year based upon feedback from the entities and auditors.

Environmental data 2014The environmental reporting scope covers all existing entities consolidated in the Group, excluding entities acquired in 2014. It follows the Group’s requirements defined for recording Health, Safety and Environment (HSE) incidents, indicators and man-hours worked. Environmental data are thus recorded and reported at Group level when Technip owns or manages the site and if Technip is responsible for directly

managing the work. They include Technip employees, contracted workforce and sub-contractors working on these sites.For environmental reporting purposes, the Group’s operations are divided into four categories: construction sites, industrial sites, fleet and offices. The reporting requirements applicable to each category are defined in Group’s guidelines, regularly updated and improved, the last version being fully applied since 2014.Environmental data are collected and reported by sites throughout the year by means of a common HSE data management system used across the entire Group. Data are then consolidated at Group level and internal reports on the Group’s environmental performances are issued every quarter. Since 2012, data are audited by a third party in the framework of the French Grenelle II law on non-financial reporting. Additional information on the reporting scope and methodology as well as examples of initiatives and best practices are presented in annex E of the 2014 Reference Document.

84_85

Angola

Australia

Brazil

Brunei

FinlandCanada

Colombia

France

Germany

Ghana

Greece

India

Indonesia

Vietnam

Venezuela

USA

UK

Italy

Malaysia

Mexico

Norway

Singapore

Spain

Thailand

The Netherlands

UAE

Angola

Australia

Brazil

Brunei

FinlandCanada

Colombia

France

Germany

Ghana

Greece

India

Indonesia

Vietnam

Venezuela

USA

UK

Italy

Malaysia

Mexico

Norway

Singapore

Spain

Thailand

The Netherlands

UAE

Countries in which Technip entities have reported their social and/or environmental data (including offices, construction sites and industrial sites).

Countries in which Technip has carried out initiatives in favor of local communities in 2014.


social Data

INDICATORS

bREAkDOwN Of TOTAL wORkfORCE PER CONTRACT(Coverage rate: 100% of employees on payroll and contracted workforce)

12/31/2014 12/31/2013

Employees on payroll 32,367 32,243

Permanent employees 28,862 28,593

Temporary employees (fixed-term) 3,505 3,650

Contracted workforce 5,930 6,588

Contracted workers at industrial sites (plants, spoolbase and yard) and fleet 1,778 2,537

Other contracted workforce (agency personnel and contracted workers not at industrial sites and fleet)

4,152 4,051

Total workforce 38,297 38,831

bREAkDOwN Of EmPLOyEES by GEOGRAPHIC zONE(Coverage rate: 100% of employees on payroll)

12/31/2014 12/31/2013

Europe 11,331 11,239

Americas 8,941 8,924

Asia Pacific 8,662 8,690

Middle East 2,354 2,427

Africa 791 737

Russia & Central Asia 288 226

Total employees on payroll 32,367 32,243

PAyROLL EmPLOyEES: HIRES AND DEPARTURES(Coverage rate: 100% of employees on payroll for entities present in the Group as of December 31, 2014)

2014 2013

Hires 6,240 7,055



Departures 6,085 5,595



Renewal rate of permanent positions (1) 0.96 1.56

(1) Start/termination of permanent positions.

REASONS fOR DEPARTURES (PERmANENT EmPLOyEES)(Coverage rate: 100% of permanent employees on payroll for entities present in the Group as of December 31, 2014)

2014 2013

Voluntary reasons of leaving (resignations, retirements) 2,284 1,997

lay-off/redundancy/dismissal 1,308 597

Transfers between entities 195 174

Other reasons 206 196

Total 3,993 2,964

bREAkDOwN ACCORDING TO GENDER(Coverage rate: 100% of employees on payroll)

12/31/2014 12/31/2013

managers (2) 3,710 3,747Women 19% 19%

Men 81% 81%

Non managers 24,723 26,108Women 29% 27%

Men 71% 73%

blue Collar employees(3) 3,934 2,388Women 4% 7%

Men 96% 93%

Total 32,367 32,243Women 25% 25%

Men 75% 75%

(2) Employees who appraise subordinates in accordance with the “Human Resources Without Borders” program.

(3) Employees who perform physical work. A blue collar employee with a management role, as defined above, will be qualified as a “Manager”.

bREAkDOwN wOmEN/mEN by GEOGRAPHIC zONE(Coverage rate: 100% of employees on payroll)

12/31/2014 women men

Africa 149 642

Asia Pacific 2,143 6,519

Europe 3,113 8,218


Middle East 297 2,057

North America 1,003 2,735

South America 1,139 4,064

Total 7,975 24,392

PROfIT SHARING (IN € THOUSANDS)

12/31/2014 12/31/2013

Amounts allocated to incentive profit sharing (France, Spain, Italy) 21,990 15,449

Amounts allocated to mandatory profit sharing (France) 6,280 5,253

86_87

65+: 1.9%

55 to 59: 6.2%

45 to 49: 9.8%

35 to 39: 16.4%

25 to 29: 15.8%

60 to 64: 3.9%

50 to 54: 7.5%

40 to 44: 12.7%

30 to 34: 21.4%

-25 years: 4.4%

Russia and Central Asia: 1%

Africa: 2%

Europe: 35%Americas: 28%

Asia Pacific: 27%Middle East: 7%

AbSENTEEISm (ExCLUDING REASONS OTHER THAN ILLNESS OR INjURy)(Coverage rate: 99% of employees on payroll)

2014 2013

Occupational illness 0.03% 0.01%

Occupational injury 0.04% 0.04%

Non-occupational illness/injury 1.79% 1.83%

Total (illness/injury) 1.86% 1.88%

bREAkDOwN Of ExPATRIATES by HOmE OffICE(Coverage rate: 100% of employees on payroll)

12/31/2014 12/31/2013

Europe 831 785

Asia Pacific 332 392

Middle East 239 172

South America 106 110

North America 89 66


Africa 2 2

Total 1,608 1,530

AGE PyRAmID – 12/31/2014(Coverage rate: 100% of employees on payroll)

TRAINING Of EmPLOyEES ON PAyROLL(Coverage rate: 99% of employees on payroll)

2014 2013(3)

Training hours by gender (2) 901,808 801,392

Women (2) 218,213 194,921

Men (2) 683,595 606,471

Training hours by topic 973,449 874,472

Technical training 297,080 301,162

Non-technical training (including management, cross disciplines, IT and certification)

309,557 216,895

Project management training 28,051 22,990

Health, safety, security (including Pulse training) 210,508 234,769

languages 77,168 76,397

Human rights, ethics and Technip values awareness training 29,525 22,259

Others 21,560 n/a

Number of employees on payroll who benefited from at least one training course during the year

25,678 25,153

Women 6,509 6,622

Men 19,169 18,531

(2) Excluding Pulse hours.(3) Adjustments made with reference to the 2013 Activity and Sustainable Development Report.

ORGANIzATION Of wORkING HOURS(Coverage rate: 100% of employees on payroll except overtime hours, which coverage rate is 51%)

12/31/2014 12/31/2013

Number of full-time employees 31,747 31,637

Number of part-time employees 620 606

Number of employees working in shifts 2,908 2,972

Overtime hours (France and main headquarters) 1,115,298 1,310,954

EmPLOyEES PER GEOGRAPHIC zONE


environMental inDicators

INDICATORS

2014 20132014 breakdown

Constructionsites

Industrial sites fleet Offices

Energy consumption

Natural gas and lPG (MWh) 98,158 27,010 82,138 9,321 0 6,699

Fuel-oil, diesel, gasoline (MWh) 1,163,134 1,842,349 301,069 57,381 798,413 6,271

Electricity (MWh) 134,429 122,398 16,859 52,554 0 65,016

Total energy consumption (MWh) 1,395,721 1,991,757 400,066 119,256 798,413 77,986

Greenhouse gas (GHG) emissions

Direct / Scope 1 emissions (ton eq CO2) 332,610 497,101 98,692 17,224 213,682 3,012

Indirect / Scope 2 emissions (ton eq CO2) 53,618 42,103 6,248 14,966 0 32,404

Total GHG emissions (ton eq CO2) 386,228 539,204 104,940 32,190 213,682 35,416

water and wastewater

Total water consumption (m3) 1,539,844 1,418,924 352,419 576,422 138,828 472,175

Industrial, domestic and ballast effluents (m3) (1) 956,162 808,456 308,684 108,995 165,688 372,795

waste generated

Non-hazardous waste (metric ton) (2) 547,105 156,558 481,448 36,956 25,192 3,509

Hazardous waste (metric ton) 5,939 5,881 442 3,160 1,831 506

Total waste generated (metric ton) (2) 553,044 162,439 481,890 40,116 27,023 4,015

Annual expenditure on environmental protection

Total capital expenditure committed (k€) 3,001 2,481 916 829 965 291

Provisions and guarantees to cover environmental risks (k€) 0 0 0 0 0 0

Decontamination costs (k€) 0 0 0 0 0 0

Number of fines and compensation awards 0 0 0 0 0 0

Amount of fines and compensation awards (k€) 0 0 0 0 0 0

Total environmental expenditure (k€) 3,001 2,481 916 829 965 291

man-hours worked in sites contributing to environmental reporting (million) 154.3 158.4 85.4 14.5 8.1 46.2

Performance indicators

Energy consumption (kWh/man-hour worked) (3) 9.05 12.57 4.69 8.20 98.04 1.69

Greenhouse gas emissions (kg eq CO2/man-hour worked) (3) 2.50 3.40 1.23 2.21 26.24 0.77

Water consumption (liter/man-hour worked) (3) 9.98 8.96 4.13 39.65 17.05 10.21

Waste generated (kg/man-hour worked) (2) (3) 3.58 1.03 5.64 2.76 3.32 0.09

(1) Effluents treated in water treatment plants either on site or offsite and discharged into the natural environment, including ballast water from vessels. (2) Including around 350,000 metric tons of clean soil excavated from construction sites and dedicated to future environmental restoration and backfilling. (3) Man-hours worked considered in the performance indicators are equal to man-hours worked in sites contributing to environmental reporting.

88_89

Technip’s main environmental indicators in 2014In 2014, the coverage in terms of environmental reporting remained stable compared to 2013, both in terms of number of sites reporting and total number of man-hours worked.

Efforts pursued since several years by all types of site (construction, industrial, vessels, offices) in order to reduce their energy consumption are now producing good results with a significant decrease in energy and greenhouse gas emissions performance indicators. Data related to water has slightly increased despite reusing and recycling practices carried out by a majority of sites. A significant increase in non-hazardous waste quantities can be noted, due to clean soil excavated on major construction sites which will be reused for backfilling and for environmental restoration projects. In 2014, six new indicators on waste management have been developed, detailing the final destination of waste (sent to recycling, incineration or landfill); in 2014, recycling was the primary method of disposal for both hazardous (for around 36%) and non-hazardous waste (for around 76%).

Atmospheric emissions (kg eq CO2/man-hour worked) (3)

2014

2012

2013

2.50

3.40

4.57

waste generated (kg/man-hour worked) (2) (3)

2014

2012

2013

3.58

1.03

0.84

water consumption (liter/man-hour worked) (3)

2014

2012

2013

9.98

8.96

17.88

Energy consumption (kwh/man-hour worked) (3)

2014

2012

2013

9.05

12.57

16.88


suMMary of aDjusteD financial inforMation

INDICATORS

10.7

Adjusted revenue (€ billion)

2014

0 2 4 6 8 10 12

2013

825

Adjusted operating income from recurring activities (€ million)

2014

0 200 400 600 800 1 000

2013

1 200

ADjUSTED(1) CONSOLIDATED STATEmENT Of INCOmE

€ million(Except Diluted Earnings per Share, and Diluted Number of Shares)

full year – Audited

2014 2013

Revenue 10,724.5 9,285.1

Gross Margin 1,514.2 1,605.1

Research & Development Expenses (82.6) (75.5)

SG&A and Other (625.2) (694.7)

Share of Income/(loss) of Equity Affiliates 18.2 (0.4)

OIfRA after Income/(Loss) of Equity Affiliates 824.6 834.5

Non-Current Operating Result (73.6) –

Operating Income 751.0 834.5

Financial Result (128.5) (78.6)

Income / (Loss) before Tax 622.5 755.9

Income Tax Expense (180.1) (185.9)

Non-Controlling Interests (5.8) (6.9)

Net Income/(Loss) of the Parent Company 436.6 563.1

Diluted Number of Shares 125,270,614 124,777,476

Diluted Earnings per Share (€) 3.65 4.68

ADjUSTED(1) CONSOLIDATED STATEmENT Of fINANCIAL POSITION

€ million Dec. 31, 2014Audited

Dec. 31, 2013Audited

Fixed Assets 6,414.2 5,976.9

Deferred Tax Assets 391.0 260.1

Non-Current Assets 6,805.2 6,237.0

Construction Contracts – Amounts in Assets 756.3 405.0

Inventories, Trade Receivables and Other 3,297.0 3,172.1

Cash & Cash Equivalents 3,738.3 3,205.4

Current Assets 7,791.6 6,782.5

Assets Classified as Held for Sale 3.2 4.0

Total Assets 14,600.0 13,023.5 Shareholders’ Equity (Parent Company) 4,363.4 4,156.8

Non-Controlling Interests 11.8 17.3

Shareholders’ Equity 4,375.2 4,174.1

Non-Current Financial Debts 2,356.6 2,214.3

Non-Current Provisions 232.9 261.5

Deferred Tax liabilities and Other Non-Current liabilities 249.1 247.7

Non-Current Liabilities 2,838.6 2,723.5

Current Financial Debts 256.4 159.5

Current Provisions 328.3 218.2

Construction Contracts – Amounts in liabilities 2,258.2 1,721.4

Trade Payables & Other 4,543.3 4,026.8

Current Liabilities 7,386.2 6,125.9 Total Shareholders’ Equity & Liabilities 14,600.0 13,023.5 Net Cash Position 1,125.3 831.6

(1) The adjustment elements refer to the proportionate consolidation of incorporated entities linked to construction projects in partnership. The joint arrangements, in which the Group is involved can be mainly divided in two categories: those concluded for the construction of a specific project and those concluded for the construction and the operation of vessels, notably the pipelay support vessels in Brazil (PlSV). Project execution in partnership is one of the key elements of Technip business and as a consequence, Technip decided, for management purposes, to continue to report construction projects in proportionate consolidation, whatever the legal structuring of the joint arrangement and whether the legal arrangement includes incorporated entities containing part or all of the arrangement and to share this reporting with all market participants. The pipelay support vessel entities remain consolidated under equity method, their management and operation mode answering clearly to the definition of a joint venture according to IFRS 11.

20.9

backlog (€ billion)

2014

0 4 8 12 16 20

2013

24

2014 fINANCIAL PERfORmANCE

90_91

global reporting initiative

ADjUSTED(1) CONSOLIDATED STATEmENT Of CASH fLOwS

€ millionfull year – Audited

2014 2013

Net Income/(loss) of the Parent Company 436.6 563.1

Depreciation & Amortization of Fixed Assets 283.3 217.8

Stock Options and Performance Share Charges 40.0 46.0

Non-Current Provisions (including Employee Benefits) (35.4) 22.9

Deferred Income Tax 21.4 12.1

Net (Gains)/losses on Disposal of Assets and Investments (7.1) (18.7)

Non-Controlling Interests and Other 23.8 43.2

Cash Generated from/ (used in) Operations 762.6 886.4

Change in working Capital Requirements 104.9 419.2

Net Cash Generated from/ (used in) Operating Activities 867.5 1,305.6

Capital Expenditures (375.6) (575.2)

Proceeds from Non-Current Asset Disposals 86.0 79.3

Acquisitions of Financial Assets (36.7) –

Acquisition Costs of Consolidated Companies, Net of Cash acquired (58.8) (8.2)

Net Cash Generated from/ (used in) Investing Activities (385.1) (504.1)

Net Increase/(Decrease) in Borrowings 80.0 501.1

Capital Increase 11.7 25.6

Dividends Paid (206.5) (186.0)

Share Buy-Back and Other (44.6) (40.0) Net Cash Generated from/ (used in) financing Activities (159.4) 300.7

Net Effects of foreign Exchange Rate Changes 211.4 (138.3)

Net Increase/(Decrease) in Cash and Cash Equivalents 534.4 963.9

Bank Overdrafts at Period Beginning (2.4) (0.3)

Cash and Cash Equivalents at Period Beginning 3,205.4 2,239.4

Bank Overdrafts at Period End (0.9) (2.4)

Cash and Cash Equivalents at Period End 3,738.3 3,205.4

534.4 963.9

GENERAL STANDARD DISCLOSURES (GRI*G4) In green: aspects related to Technip commitment to the ten principles of the UN Global Compact.

GENERAL STANDARD DISCLOSURES

SECTION/PAGE ExTERNAL ASSURANCE**

Strategy and analysis

G4-1 ASDR: Interviews of Thierry Pilenkoand Colette Casimir p. 22 to 25 –

Organizational profileG4-3 Section 5.1.1 p. 31 ✓G4-4 Section 6 p. 37 to 53 ✓G4-5 Section 5.1.4 p. 31 ✓

G4-6http://www.technip.com/en/about-us/

technip-worldwide/main-locations-country

✓

G4-7 Section 8.1 p. 56 to 61 ✓G4-8 Section 3.1 p. 7, 8 and Section 6.1 p. 38 to 42 ✓

G4-9Section 3.2 p. 8 to 10, Section 8.1 p. 56 to

61, Section 10 p. 74 to 76 and 17.1.1 p. 111 to 113

–

G4-10 Annex E, Section 3.2 p. 271 to 274 and 3.5.1 p. 283 ✓

G4-11 Annex E, Section 3.6 p. 284 to 285 ✓

G4-12 Section 6.5 p. 52 and Annex E, Section 5.1 p. 313 to 316 ✓

G4-13 Section 6.1.2 p. 42, Section 8.1 p. 56 to 61 and Section 20.1. Note 2 p. 146 ✓

G4-14 Section 4 p. 11 to 30, Annex E, Sections 3.7, 3.8, 3.9 p. 285 to 291 ✓

G4-15Section 4.8 p. 25 to 30, Annex E Section 1.2

p. 261 and 262, Section 3.9 p. 289 to 291 and Section 4.1.2 p. 292

–

G4-16 Annex E, Section 1.1.3. p. 254 to 258 ✓

Identified material aspects and boundaries G4-17 Section 8.1 p. 56 ✓G4-18 Annex E, Section 1.1.3.c p. 257 ✓G4-19 Annex E, Section 1.1.3.c p. 258 ✓

G4-20Annex E Section 1.1.3.d p. 258 and Section 7

(Specific Standard Disclosures Table) p. 327

✓

G4-21Annex E Section 1.1.3.d p. 258 and Section 7

(Specific Standard Disclosures Table) p. 327

✓

G4-22 No restatement of information ✓G4-23 No significant changes ✓

Stakeholder engagementG4-24 Annex E, Section 1.1.3.a p. 254 ✓G4-25 Annex E, Section 1.1.3.a p. 254 ✓

G4-26 Annex E, Section 1.1.3.a p. 254, Section 1.1.5 p. 259 and Section 2.4.1 p. 266 ✓

G4-27 Annex E, Section 1.1.3.b p. 256 and Section 1.3 p. 263 ✓

Report profileG4-28 January 1, 2014 to December 31, 2014 ✓G4-29 December 31, 2013 ✓G4-30 Annual ✓G4-31 Colette Casimir ✓

G4-32 Annex E, Section 7 p. 326 to 328 and Annex F p. 329 to 331 ✓

G4-33 Annex E, Section 1.1.5 p. 259 and Annex F p. 329 to 331 ✓

Governance

G4-34Section 14 p. 84 to 91 and Section 16 p. 102

to 110, Annex C p. 232 to and Annex E, Section 1.1.2 p. 252 to 254

✓

Ethics & integrity

G4-56 Annex E, Section 1.1.1 p. 252, Section 1.1.2 p. 252 to 254 and 1.2 p. 261 to 263 ✓

* Aspect identified as material by Technip stakeholders but not reported by GRI G4 guidance.** The statement of external assurance is located in Annexe F, Section 1 page 330 of the 2014 Reference Document.

In 2014, Technip decided to publish information related to sustainable development ’in accordance’ with the Core option of the Global Reporting Initiative (GRI) G4 guiding principles. The GRI is an international organization which promotes transparency regarding non-financial information, stakeholder’s engagement and the definition of the material aspects of a company. The table below shows the G4 indicators relevant for Technip and where to find it in this report and in Technip Reference Document 2014.


SPECIfIC STANDARD DISCLOSURES (GRI*G4) In green: Aspects related to Technip commitment to the ten principles of the UN Global Compact.

mATERIAL ASPECTS

INDICATORS, DISCLOSURE ON mANAGEmENT APPROACH (DmA)

COVERAGE bOUNDARy wITHIN TECHNIP

bOUNDARy OUTSIDE TECHNIP

external assurance**

CATEGORy: ENVIRONmENTAL

Energy use

G4-DMA: Annex E, Section 4.2.2 p. 297 to 301

Offices, Fleet,Industrial sites,

Construction sitesSuppliers

✓

G4-EN3: Annex E, Section 4.2.2.a p. 297 to 299 ✓



Emissions: Greenhouse Gas (GHG)

G4-DMA: Annex E, Section 4.2.2.b p. 299 to 300

Offices, Fleet,Industrial sites,

Construction sites

Clients,Suppliers

✓

G4-EN15: Annex E, Section 4.2.2.b p. 299 to 300 ✓




Emissions: other air pollutants

G4-DMA: Annex E, Section 4.2.2.c p. 300 to 301Fleet, Industrial sites,

Construction sitesClients,

Suppliers

✓

G4-EN20: Annex E, Section 4.2.2.c p. 300 to 301 –

G4-EN21: Annex E, Section 4.2.2.c p. 300 to 301 ✓

Biodiversity and ecosystems

G4-DMA: Annex E, Section 4.2.5 p. 306 to 307Fleet, Industrial sites,

Construction sitesClients,

Suppliers

✓

G4-EN11: Annex E, Section 4.2.5 p. 306 to 307 –

G4-EN12: Annex E, Section 4.2.5 p. 306 to 307 –

Hazardous substances*

DMA: Annex E, Section 4.2.4 p. 304 to 306 Fleet, Industrial sites,Construction sites

Clients,Suppliers

✓

G4-EN24: Annex E, Section 4.2.4 p. 304 to 306 ✓

Water & wastewater*

DMA: Annex E, Sections 4.2.3a and b p. 301 to 303Offices, Fleet,Industrial sites,

Construction sites

Clients,Suppliers

✓



Solid waste*

DMA: Annex E, Section 4.2.3.c p. 303 to 304Offices, Fleet,Industrial sites,

Construction sites

Clients,Suppliers

✓



CATEGORy: SOCIAL

Labor practices and decent work

General conditions of employment

G4-DMA: Annex E, Section 3.2.2 p. 273 to 274

Employees

–

G4-lA1: Annex E, Section 3.2.2.a p. 273 ✓

G4-lA3: Annex E, Section 3.2.2.b p. 273 to 274 ✓

Diversity and equal opportunity

G4-DMA: Annex E, Section 3.4 p. 280 to 283Employees

–

G4-lA12: Annex E, Section 3.4 p. 280 to 283 ✓

Safe and healthful workplace*

DMA: Annex E, Sections 3.7 and 3.8 p. 285 to 288

EmployeesContracted workforce

–

G4-lA6: Annex E, Sections 3.7 and 3.8 p. 285 to 288 ✓

G4-lA8: Annex E, Section 3.6 p. 284 and 285 ✓

Employee development*

DMA: Annex E, Section 3.3 p. 275 to 280

Employees

–

G4-lA9: Annex E, Section 3.3.2 p. 279 to 280 ✓

G4-lA11: Annex E, Section 3.3.1 p. 275 to 278 ✓

Fully Partly* Aspect identified as material by Technip stakeholders but not reported by GRI G4 guidance.** The statement of external assurance is located in Annexe F, Section 1 page 330 of the 2014 Reference Document..In 2014, Technip decided to publish information related to sustainable development ’in accordance’ with the Core option of the Global Reporting Initiative (GRI) G4 guiding principles. The GRI is an international organization which promotes transparency regarding non-financial information, stakeholder’s engagement and the definition of the material aspects of a company. The table below shows the G4 indicators relevant for Technip and where to find it in this report and in Technip Reference Document 2014.

92_93

SPECIfIC STANDARD DISCLOSURES (GRI*G4) – CONTINUED In green: Aspects related to Technip commitment to the ten principles of the UN Global Compact.

mATERIAL ASPECTS

INDICATORS, DISCLOSURE ON mANAGEmENT APPROACH (DmA)

COVERAGE bOUNDARy wITHIN TECHNIP

bOUNDARy OUTSIDE TECHNIP

external assurance**

CATEGORy: SOCIAL

Human rights

Human rights G4-DMA: Annex E, Section 5.2 p. 316 to 318 Employees

Contracted workforce, local communities, Clients,Suppliers, Sub-contractors,

NGOs

✓

Indigenous and local communities rights G4-DMA: Annex E, Section 6 p. 322 to 325

local communities, NGOs

–

Society

Anti-corruptionG4-DMA: Annex E, Section 1.2.1 p. 262 and 263

Employees

Contracted workforce, Clients, Suppliers,

Sub-contractors, Investors, Shareholders, Authorities

✓

G4-SO4: Annex E, Section 1.2.1 p. 262 and 263 –

Local content*

DMA: Annex E, Section 5 p. 313 to 322

local communities, Clients, NGOs

✓

G4-EC6: Annex E, Section 5.1 p. 313 to 316 –

G4-EC8: Annex E, Section 5 p. 313 to 322 ✓

G4-EC9: Annex E, Section 5.1 p. 313 to 316 –

Sustainability in the supply chain* DMA: Annex E, Section 5.1 p. 313 to 316

Clients, Suppliers, Sub-contractors

✓

Risk & crisis management*

DMA: Section 4 p. 11 to 30 and Annex E, Sections 1.1.2 p. 253 and 254 local communities, Clients,

Investors, Shareholders

–

G4-SO4: Annex E, Section 1.2.1 p. 262 and 263 –

Asset integrity and emergency preparedness*

DMA: Annex E, Section 2.3 p. 266Fleet,

Industrial sites,Construction sites

local communities, Clients, Sub-contractors

✓

Responsible marketing & sales* DMA: Annex E, Section 1.2.3 p. 263

Clients,Suppliers

–

Product responsibility

Compliance with laws & regulations G4-DMA: Annex E, Section 1.2 p. 261 to 263

Clients, Suppliers,Investors, Shareholders,

Authorities–

Security practices* DMA: Annex E, Section 3.9 p. 289 to 291

Employees, Offices, Fleet, Industrial sites,

Construction sites

Contracted workforce, local communities, Clients, Suppliers, Sub-contractors

–

Product safety* DMA: Annex E, Section 2.2 p. 264 to 266local communities, Clients, Suppliers

–

Innovative technology* DMA: Annex E, Section 2.4 p. 266 to 269

Clients,Suppliers

–

CATEGORy: ECONOmIC

Fair and long-term business relations* DMA: Annex E, Section 1.2.2 p. 263 Clients, Suppliers –

Corporate governance and integrity*

DMA: Annex E, Section 1.1.2 p. 252 to 254 Clients, Investors, Shareholders, Authorities

–

G4-38: Section 14 p. 84 to 91 –

Client satisfaction*DMA: Annex E, Section 2 p. 263 to 269

Clients✓

G4-PR5: Annex E, Section 2.1 p. 263 to 264 ✓

Fully Partly* Aspect identified as material by Technip stakeholders but not reported by GRI G4 guidance.** The statement of external assurance is located in Annexe F, Section 1 page 330 of the 2014 Reference Document..


glossary

Anti-H2S: The anti H2S layer is a leak-proof sheath made of a composite material which is placed between the pressure sheath and the pressure vault of a flexible pipe. The metallic oxide additives within the layer will chemically react with the H2S entering the ’Anti H2S’ sheath af ter permeat ion through the pressure sheath. This reaction will act as a barri-er to H2S during all the service life of the flexible pipe.

bi-metallic: Pipe construction with a corrosion resistant alloy (CRA) layer on the inner surface of the carbon steel pipe. This is obtained either through a CRA liner mechanically bonded to the carbon steel pipe (i .e. Mechanically lined Pipe – MlP) or through the deposit of CRA metallurgically bonded to the carbon steel pipe inner surface by welding overlay (i.e. Cladded pipe).

biomass-based fuel: These include, but are not limited to wood, sawdust, grass cuttings, biodegradable domestic refuse, charcoal, agricultural waste, crops and dried manure.

Carbon fiber armor: An exclu-sive technology for the compo-sition of flexible risers, for use in deepwater, allowing them to weigh 50% less than traditional flexible pipes while offering excellent corrosion and fatigue resistance.

CCS (Carbon Capture and Storage): The CCS is a solution for reducing greenhouse gas emissions from industrial installations in response to global warming.

C S R (C o rp o rate S o c i a l Responsibility): A concept whereby companies integrate social and environmental con-cerns in their business opera-tions and in their interaction

with their stakeholders on a voluntary basis. CSR concerns actions by companies over and above their legal obligations towards society and the envi-ronment (definition of the Eu Commission).

EPC (Engineering, Procure-ment, Construction): Type of contract comprising manage-ment and engineering services, procurement of equipment and materials, construction.

EPIC (Engineering, Procure-ment, Installation, Commis-sioning): An EPIC or “turnkey” contract integrates the respon-sibility going from the concep-tion to the final acceptance of one or more elements of a production system. It can be awarded for all, or part, of a field development.

ETH-PIP Technology: Reelable electrically trace heated pipe-in-pipe: a new technology developed and qualified by Technip for use in shallow and deepwater applications alike and qualified by Technip and Total for higher temperature applications. Successful de-ployment of ETH-PIP will enhance or enable production operability in certain flow and temperature conditions, where subsea pipelines transporting hydrocarbons are liable to blockage through the forma-tion of hydrates or wax.

fEED (front-End Engineering Design): Engineering studies whose detail allows the client to launch the bidding process for the execution of the project.

fLNG (floating liquefied natural gas unit): In a FlNG solution, the gas liquefaction installations are situated direct-ly above the offshore gas field, thus making the construction of long subsea pipelines and

large onshore infrastructure unnecessary.

floatover: Installation method of an integrated production deck (topsides) on a fixed or floating offshore structure without heavy lift operations.

flowline: A flexible or rigid pipe, laid on the seabed, which allows the transportation of oil/gas production or injection of fluids. Its length can vary from a few hundred meters to several kilometers.

fPSO (floating, Production, Storage and Offloading): A converted ship or custom-built vessel used as a support of oil and gas installations and for temporary storage of the oil prior to transport.

furnace: Furnace is an enclosed structure in which material is heated to high temperatures to produce ethylene and other products. This occurs in two sections. In the radiant section, the tubes receive heat through thermal radiation and the pyrolysis reaction (cracking) takes place. In the convection section, the flue gas is cooled to deliver high thermal efficien-cy by recovering the remaining heat.

Global Compact: International initiative of the united Nations, launched in 2000. It unites public and private businesses around 10 universal principles relating to human rights, labor and the environment. Technip has been an official member of the Global Compact since 2003.

Greenhouse gas: Any of the at-mospheric gases that contrib-ute to the greenhouse effect by absorbing infrared radiation produced by the solar warming of the Earth’s surface. Green-house gases include carbon dioxide, methane, nitrous oxide and water vapor. These gases can be naturally occurring or produced by human activity.

GRI (Global Reporting Initia-tive): A group of stakeholders engaged in ensuring that

reporting on economic, envi-ronmental and social perfor-mance by all organizations becomes as stringent and sys-tematic as financial reporting. The GRI achieves this vision by providing a framework for reporting sustainable develop-ment. The components of this reporting framework are devel-oped through a comprehensive approach to reaching decisions by consensus among the vari-ous stakeholders.

GTL (Gas-to-Liquids): Trans-formation of natural gas into liquid fuels (Fischer Tropsch technology).

HDPE: High-density polyethyl-ene.

HSE (Health, Safety and Envi-ronment): Defines all measures taken by Technip to guarantee the occupational health and safety of individuals and the protection of the environment during the performance of it business activities, whether in offices or on construction sites.

HVS (Heave and Vortex- Induced motion Suppressed) semi-submersible platform: A low-motion semi-submersible platform, reducing the fatigue on risers connected to it, ena-bling it to support large diame-ter steel catenary risers in water depths that would not be pos-sible for conventional semis. As such, it is a technology suited to deepwater developments.

Hydrogen: Hydrogen is widely used in petroleum refining processes to remove impurities found in crude oil such as sul-fur, olefins and aromatics to meet the product fuels specifi-cations. Removing these com-ponents allows gasoline and diesel to burn cleaner and thus makes hydrogen a critical component in the production of cleaner fuels needed by modern, efficient internal com-bustion engines.

IPb (Integrated Production bundle): A patented flexible riser combining multiple func-tions of production and gas lift,

incorporating both active heat-ing and passive insulation. The IPB ensures regular flow in diffi-cult conditions.

ISO 9001: A standard dealing with quality management standards. It sets out the requirements that organiza-tions must meet to comply with the standard.

ISO 14001: A standard dealing with environmental manage-ment systems.

jumper: A short section of pipe for the connection of two subsea structures.

Lean & Six Sigma: To improve competitiveness, lean focuses on cost and schedule improve-ment and Six Sigma on quality by reducing defect rate . Technip integrated a quality program based on these meth-ods at the end of 2010.

Liquefied Natural Gas (LNG): Natural gas, liquefied by cool-ing its temperature to -162°C, thus reducing its volume 600 times, allowing its trans-port by boat.

manifold: A piece of pipe with several lateral outlets and/or inlets for connecting one pipe with others.

mEG: Mono-ethylene glycol, used to control hydrate forma-tion in production fluids.

Natural gas: Consists primarily of methane (CH4) as well as some carbon dioxide and other impurities such as sulfur-based gases.

Petrochemicals: Industry re-lating to chemical compounds derived from hydrocarbons.

Pipe-in-Pipe or flowline: Steel pipes assembly consisting of a standard production pipe sur-rounded by a so-called carrier pipe. The gap between the car-rier and production pipes is filled with an insulation materi-al (a high thermal performance material can be used).

Pipeline installation: Tech-nip’s fleet masters the three

installation methods for rigid pipes: J-lay (a vertical lay sys-tem, in deep water), S-lay (the most common installation method for steel pipe in medi-um to shallow water. A horizon-tal lay from the back of a vessel, under tension, which gives it an “S” configuration) and reeled-lay (an onshore assembly of rigid steel pipeline, made of long sections welded together as they are spooled onto a ves-sel-mounted reel for transit and subsequent cost-effective unreeling onto the seabed. Minimum welding is done at sea), as well as Flexible-lay (including the Vertical lay Sys-tem – VlS, a proprietary tech-nology for installation of flexi-ble pipes in deep water).

PLET (Pipeline End Termina-tion): Subsea structure to con-nect rigid flowline and flexible riser.

PRS (Pipeline Repair System): this system comprises a wide range of equipment for pipeline repair, both manned and remotely operated, including welding machines, installation structures or pipeline retrieval tools.

Pulse: A Technip program aim-ing to develop a positive HSE culture through leadership and communication.

quartz: A Technip quality pro-gram aiming to educate, inform and motivate Technip’s em-ployees and stakeholders to sustain a culture of excellence and continuous improvement of our business.

Riser: Pipe or assembly of flexi-ble or rigid pipes used to trans-fer produced fluids from the seabed to surface facilities and transfer injection or control fluids from the surface facilities to the seabed.

SA 8000 (Social Accounta-bility 8000): An international standardized code of conduct for improving working condi-tions worldwide.

Semi-submersible platform: Offshore platform that is stabi-lized by pontoons whose degree of immersion can be changed through ballasting and de-ballasting.

Shale gas: Natural gas held in shale, rocks made up of thin layers of fine-grained sedi-ments. Shale formations have very low permeability.

SmkTm: Technip’s proprietary coil technology used in a furnace. Enabling selectivity optimization to obtain very large capacity furnaces. The largest capacity furnace in the world uses SMK ™ techno-logy and has a capacity of 210,000 tons per year of ethyl-ene per furnace cell.

Sour water stripper: Removal of H2S and ammonia from sour water in order to reuse or dispose of it.

Spar: A cylinder-shaped float-ing of fshore drill ing and production platform partially submerged that is particularly well-adapted to deep water by using top tensioned risers and surface wellheads.

Spool: Short length pipe con-necting a subsea pipeline and a riser, or a pipe and a subsea structure.

SSIV: Subsea Isolation Valve.

SST (Spiral Stacket Turret): A flexible hose-based alternative to the traditional mechanical swivel stack to be used in float-ing units.

Sustainable Development: Development that meets the needs of the present without compromising the ability of fu-ture generations to meet their own needs (Definition from the united Nations’ 1987 Report of the World Commission on Envi-ronment and Development).

Synthesis gas: Gas mixture that primarily contains varying amounts of hydrogen and car-bon monoxide and often some carbon dioxide.

Technip PmC (Project man-agement Consultancy): Tech-nip’s business unit in charge of assisting its customers in achieving their business objec-tives, from the Technology & licensor selection phase to the management of multina-tional consortia in the execu-tion and successful delivery of world-scale, lump-sum turnkey projects.

Template: A steel protection structure with integrated mani-folds and wellheads.

Teta wire: Wire with a specific, patented, T-shape used in flexi-ble pipe to resist the radial effect of the internal pressure. used for high pressure and harsh environments.

wye piece: A connection between two pipelines which allows pigging to be performed from either of the pipelines.

94_95

Adjectives used in Technip press releases to define contracts

Amount in € Onshore and offshore contracts

Subsea contracts

< 50 million No adjective No adjective

50 – 100 million Significant Important

100 – 250 million Important Substantial

250 – 500 million Substantial large

500 – 1000 million large Major

1000 + million Major Major

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Technip

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Tel.: +33 (0)1 47 78 24 23

Email: [email protected]

www.technip.com

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Photos: Anadarko, British Petroleum, DSME, Thierry Gonzales, laurent Masurel, north Sea Shipping, odebrecht,

Petronas, Jérôme Retru, Samsung Heavy Industries, SAToRP, Shell, Technip photo library – all rights reserved.

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