Technip 3q15 Presentation

55
Third Quarter 2015 Results Paris, October 29, 2015

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S A P PS Consultants SAP PS Questions, Answers, and Explanations

Transcript of Technip 3q15 Presentation

Page 1: Technip 3q15 Presentation

Third Quarter 2015 Results

Paris, October 29, 2015

Page 2: Technip 3q15 Presentation

Safe Harborhis presentation contains both historical and forward-looking statements. These forward-looking statements are not based on historical

facts, but rather reflect our current expectations concerning future results and events and generally may be identified by the use offorward-looking words such as “believe”, “aim”, “expect”, “anticipate”, “intend”, “foresee”, “likely”, “should”, “planned”, “may”, “estimates”,“potential” or other similar words. Similarly, statements that describe our objectives, plans or goals are or may be forward-lookingstatements. These forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause ouractual results, performance or achievements to differ materially from the anticipated results, performance or achievements expressed orimplied by these forward-looking statements. Risks that could cause actual results to differ materially from the results anticipated in theforward-looking statements include, among other things: our ability to successfully continue to originate and execute large servicescontracts, and construction and project risks generally; the level of production-related capital expenditure in the oil and gas industry aswell as other industries; currency fluctuations; interest rate fluctuations; raw material, especially steel as well as maritime freight pricefluctuations; the timing of development of energy resources; armed conflict or political instability in the Arabian-Persian Gulf, Africa orother regions; the strength of competition; control of costs and expenses; the reduced availability of government-sponsored exportfinancing; losses in one or more of our large contracts; U.S. legislation relating to investments in Iran or elsewhere where we seek to dobusiness; changes in tax legislation, rules, regulation or enforcement; intensified price pressure by our competitors; severe weatherconditions; our ability to successfully keep pace with technology changes; our ability to attract and retain qualified personnel; theevolution, interpretation and uniform application and enforcement of International Financial Reporting Standards, IFRS, according towhich we prepare our financial statements as of January 1, 2005; political and social stability in developing countries; competition; supplychain bottlenecks; the ability of our subcontractors to attract skilled labor; the fact that our operations may cause the discharge ofhazardous substances, leading to significant environmental remediation costs; our ability to manage and mitigate logistical challengesdue to underdeveloped infrastructure in some countries where we are performing projects.Some of these risk factors are set forth and discussed in more detail in our Annual Report. Should one of these known or unknown risksmaterialize, or should our underlying assumptions prove incorrect, our future results could be adversely affected, causing these results todiffer materially from those expressed in our forward-looking statements. These factors are not necessarily all of the important factors thatcould cause our actual results to differ materially from those expressed in any of our forward-looking statements. Other unknown orunpredictable factors also could have material adverse effects on our future results. The forward-looking statements included in thisrelease are made only as of the date of this release. We cannot assure you that projected results or events will be achieved. We do notintend, and do not assume any obligation to update any industry information or forward looking information set forth in this release toreflect subsequent events or circumstances.

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This presentation does not constitute an offer or invitation to purchase any securities of Technip in the United States or any otherjurisdiction. Securities may not be offered or sold in the United States absent registration or an exemption from registration. Theinformation contained in this presentation may not be relied upon in deciding whether or not to acquire Technip securities.This presentation is being furnished to you solely for your information, and it may not be reproduced, redistributed or published, directly orindirectly, in whole or in part, to any other person. Non-compliance with these restrictions may result in the violation of legal restrictions ofthe United States or of other jurisdictions.

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Third Quarter 2015 Results2

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Quarter highlights

3

Progress on project execution and restructuring plan across both segments

Subsea growth initiatives Forsys Subsea awarded first two integrated

front-end studies Genesis and its subsurface partner working on

first joint studies

Onshore/Offshore diversified order intake MIDOR refinery, early works, Egypt Polyethylene plant, EPC, Czech Republic Work orders on PMC / services contracts

Results

Third Quarter 2015 Results

Adjusted Revenue of €3.1 billion +14.7% in Subsea +5.8% in Onshore/Offshore

Adjusted OIFRA(1) of €292 million, +21% growth at Group level Subsea adjusted OIFRA(1) of €232 million Onshore/Offshore adjusted OIFRA(1) of

€76 million

Net income rose to €164 million

Adjusted net cash at €1.3 billion

(1)Adjusted Operating Income from Recurring Activities after Income/(Loss) of Equity Affiliates

Order intake of €1.7 billion, ~€17.5 billion backlog

Third Quarter 2015 Key Elements

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3Q 2015 Financial Performance & Progress on Restructuring

Third Quarter 2015 Results4

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Third Quarter 2015 Results

Adjusted Revenue

Adjusted Operating Income(1)

€ million

5

+14.7% 1,232

3Q14 3Q15

193232

3Q14 3Q15

14.3% 15.0%

3Q14 3Q15

1,547

14.3% 15.0%

1,348

Overall group vessel utilization rate 89% in 3Q15, compared with 86% for 3Q14

Offshore campaigns Moho Nord and Block 15/06, West Africa Quad 204, Scotland Åsgard Subsea Compression, Norway Julia and Amethyst, US Gulf of Mexico Malikai subsea, Malaysia Prelude subsea scope, Australia

Engineering / Procurement Kaombo and T.E.N., West Africa Jangkrik and Bangka, Indonesia Kodiak and Stones, US Gulf of Mexico

Manufacturing & other Flexible pipes: Iracema Sul, Iracema Norte,

Sapinhoá, Lula Alto, Brazil Umbilicals: Kaombo, Angola

(1)Adjusted Operating Income from Recurring Activities after Income/(Loss) of Equity Affiliates

3Q 2015 Subsea Operational Highlights

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Third Quarter 2015 Results6

Burgas refinery, Bulgaria: H-Oil® project handed over to client

Heera Redevelopment (HRD) process platform project, India: neared completion

Block SK316, Malaysia: topsides of the central processing platform sailed away

Malikai Tension Leg Platform (TLP), Malaysia: topsides were successfully joined onto the hull

Prelude FLNG, Australia: turret-mooring system was successfully installed onto the hull

Yamal LNG, Russia: 2015 key milestones reached

3Q14 3Q153Q14 3Q15

3Q14 3Q15

Adjusted Revenue

Adjusted Operating Income(1)

+5.8%

1,4761,562

4.7% 4.8%

7076

€ million

(1) Adjusted Operating Income from Recurring Activities after Income/(Loss) of Equity Affiliates

3Q15 Onshore/Offshore Project Highlights

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7 Third Quarter 2015 Results

Main elements:

Foreign exchange impact year-on-year + €183 million on

revenue + €25 million impact on

OIFRA

MHB(4) depreciation charge of €(11) million

Interest expenses of €(26) million

€ million 3Q 14 3Q 15 Y-o-Y Change

Adjusted Revenue 2,825 3,109 10.1%

Adjusted EBITDA(1) 305 372 21.9%

Adjusted EBITDA Margin 10.8% 12.0% 116bp

Adjusted OIFRA(2) 242 292 20.9%

Adjusted Operating Margin 8.5% 9.4% 84bp

Adjusted Financial Result (19) (39) nm

Adjusted Effective Tax Rate 29.4% 29.4% nm

Underlying Net income of the Parent Company(3) 160 184 15.5%

(1) Adjusted OIFRA after Income / (Loss) of Equity Affiliates, excluding Depreciation and Amortization(2) Adjusted OIFRA after Income / (Loss) of Equity Affiliates(3) Net Income of the Parent Company excluding exceptional items(4) 8.5% shares in MHB in Malaysia

Third Quarter 2015 Financial Highlights

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Third Quarter

Adjusted Cash(1) as of June 30, 2015 3,976

Adjusted Cash Generated from / (Used in) Operating Activities 288

Change in Working Capital Requirement (248)

Adjusted Net Cash Generated from / (Used in) Investing Activities (70)

Adjusted Net Cash Generated from / (Used in) Financing Activities and FX Impacts (144)

Adjusted Cash(1) as of September 30, 2015 3,802

8

€ million

Third Quarter 2015 Results

Main elements:

Net construction contracts fell from €(1,539) million in 2Q to €(982) million in 3Q

Capex stable at€(74) million

Adjusted net cash position as of end 3Q 2015: €1,301 million

(1) Adjusted cash and cash equivalents including bank overdrafts

Third Quarter 2015: Cash Flow

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9 Third Quarter 2015 Results

34,000

36,000

38,000

40,000

Jan. Feb. Mar. Apr. May June July Aug Sept.

One-off charge of €14 million in the quarter €585 million taken in total so far, out of

€650 million announced

Exit of some countries through closures or sales continues Sale of Technip in Belgium completed in

October Closure of Myanmar office

In the first nine months of 2015, Group workforce fell by ~2,300

The Deep Constructor vessel removed from Group fleet in 3Q15

2015 Technip Workforce Worldwide Restructuring Plan Highlights

End December 2014: ~38,300 total

headcount 15% contracted

End September 2015: ~36,000 total

headcount 13% contracted

Progress on Restructuring Plan

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10 Third Quarter 2015 Results

Costs

SG&A(1) reduced by nearly €20 million year-on-year

Capex

Net capex reduction on track

Net capex 9 months:

SG&A(1)

9 months:

521479 461

9 months

2013 2014 2015

424

258213

9 months

2013 2014 2015

R&D spending continues to be sustained

(1) Selling, General and Administrative Costs

Continued Capex and Cost Discipline

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11 Third Quarter 2015 Results

Onshore / Offshore

Adjusted revenue over €6 billion

Adjusted underlying operating income from recurring activities(2) between €210 to €230 million

Subsea

Adjusted revenue over €5.5 billion

Adjusted operating income from recurring activities(1) at around €840 million

2015 Objectives:Operating Profit Confirmed, Revenue Increased

(1) Adjusted Operating Income from Recurring Activities after Income/(Loss) of Equity Affiliates(2) Adjusted Operating Income from Recurring Activities after Income/(Loss) of Equity Affiliates excluding Exceptional Items

Page 12: Technip 3q15 Presentation

Technip in the Current Market Environment

Third Quarter 2015 Results12

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Third Quarter 2015 Results13

BeringSea

8 modules offloaded and being installedErection of the first site pre-assembled

pipe rack on-goingOn-the-ground construction

infrastructures well advanced

Yamal, RussiaLoad out and sail away of the first site pre-

assembled pipe rack in July 2015

Load out and sail away of 6 electrical buildings in August 2015Eastern route through

Bering StraitWestern route through Suez CanalRoute to Module Intermediate Storage Yard

Engineering Phase 1 nearing completion

Two vessels navigated through Bering Strait, an industry breakthrough

Paris, France Yokohama, Japan

Achieved 2015 key milestones on time, paving the way for winter activities

Batam, Indonesia

Yamal LNG Project: 2015 Progress

Penglai, China

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14 Third Quarter 2015 Results

Client: Sasol Joint venture between Technip (50%) and Fluor (50%) World-scale ethane cracker and derivatives complex to be

located in Lake Charles, Louisiana, USA

Project Overview

FEED(1) & Technology Supply EP(2) EP&Cm(3)

Early involvement to design an effective project execution

scheme with license and FEED for the ethane cracker

Supply one of the most critical part of the cracker, the furnaces

thanks to Technip Stone & Webster Process Technologies

EP&Cm of the ethane cracker to accompany client throughout

project life

Sasol ethane cracker, USA

Source: Sasol

Technip key differentiators: proprietary technologies and strong project management capabilities

(1) Front-End Engineering and Design(2) Engineering and Procurement(3) Engineering, Procurement and Construction Management

Accompany Clients Throughout the Project Lifecycle: Sasol, Lake Charles

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2010-2011 2012-2015 2015 and beyond Group commitment to

R&D taking pre-salt development further

First pilot award for the Tupi field: demonstrated feasibility of flexibles technology

New investment decision to expand manufacturing footprint in Brazil

Strong backlog built throughout the period thanks to qualification of flexible pipe solution led with momentum of awards

New Açuflex flexible pipe plant opened in 2014: world’s most technologically advanced manufacturing plant

Additional R&D to overcome pre-salt technical challenges led to first extended well-test award for Libra field

Client investments confirmed for upstream developments with FPSOs ordered

Technip flexible pipe awards

Future pre-salt developments

Third Quarter 2015 Results15

Iracema Norte

Iracema Sul

Sapinhoa Norte

Libra

Lula NordesteLula Alto

São Paulo

Açuflex Plant, Brazil

Clear Leadership for the Brazilian Pre-Salt Market

Santos Basin

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16 Third Quarter 2015 Results

Two integrated early studies awarded to ForsysSubsea, with different characteristics showing broad interest on the approach: First award: Conceptual study, independent operator,

greenfield development Second award: Front-end study, IOC(1), brownfield

development

Target an EPCI award for Technip / FMC Alliance in 2016

Integrated Subsea Design

Improving equipment and installation converge in subsea architecture

Fast adoption of a new business model to improve deepwater project economics

(1) International Oil Company

Technip / FMC Technologies Alliance: First Two Front-end Awards

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Third Quarter 2015 Results17

Subsea€8.4 billion

2015(3 months)

2017 & beyond2016

Onshore/Offshore€9.0 billion

2015 (3 months)

2017 & beyond2016

3Q 2015 Order Intake: €530 million

3Q 2015 Order Intake: €1,216 million

9 months(Actual)*

9 months(Actual)*

*Adjusted Revenue 9 months 2015

€4.4billion

€1.3billion

€4.2billion

€2.9billion

€4.7billion

€1.5billion

€4.4billion

€3.1billion

Estimated Backlog Scheduling

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18 Third Quarter 2015 Results

Clients New projects delayed Capex/opex discipline, strong focus on cash flow

management Willingness to engage earlier and work differently

Additional capex budget cuts Increased pressure on supply chain Strategic projects prioritized Accelerated standardization and simplification

Contractors and supply chain Industry structural change Aggressive cost reduction plans Price deflation, but not uniform

Further cost base reductions Efficiency improvements (technology, innovation) Capabilities integration (alliances, M&A) Address overcapacity

Market opportunities Pockets of resilience in offshore and subsea

markets Opportunities in onshore

Pockets of geographic resilience:o Brazil pre-salt developments o Downstream in North America, Eastern Europe

and Africa / Middle East New contracting models Increased momentum in Technip / FMC Alliance

What we have seen What we expect

Market Environment

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Technip Priorities

Executing projects with discipline and improved efficiency

Reducing client project costs through standardization and innovation

Reducing our cost base and increasing our competitiveness

Seizing opportunities in targeted markets

Best position ourselves for the future

Strong balance sheet

QHSE(1) culture

Global business with worldwide

footprint

Early involvement and fully integrated

approach

Technology, innovation and

expertise Technip Strengths

Third Quarter 2015 Results

Technip Strengths in a Challenging Environment

(1) Quality Health Safety Environment

Solid backlog of €17.5 billion

at end 3Q15

Diversifiedrevenue streams

Page 20: Technip 3q15 Presentation

Annex

Page 21: Technip 3q15 Presentation

Technip: World Leader Bringing Innovative Solutions to the Energy Industry A world leader in project management, engineering and construction for oil & gas,

chemicals and energy companies

Services provided to clients in segments: Onshore/Offshore and Subsea

36,000 people in 48 countries

2014 Adjusted Revenue: €10.7 billion; Adjusted Operating margin of 7.7%*

* Adjusted operating income from recurring activities after Income/(Loss) of Equity Affiliates, divided by adjusted revenueThird Quarter 2015 Results21

Page 22: Technip 3q15 Presentation

(1) Former Duco

Evanton

Orkanger

Flexibras:Vitória

Flexibras:Açu

Macaé

Port of Angra

Pori

Asiaflex Products:Tanjung Langsat Batam

Flexi France: Le Trait

Perth

Angoflex: Lobito

Dande

Technip Umbilicals(1) Inc:Houston

Mobile

Houston

Kuala Lumpur

Rome

London

4 Flexible Pipe Plants

4 Umbilicals Plants

4 Spoolbases

1 Construction Yard

3 Logistic Bases

Regional Headquarters

Operating Centers

Technip Umbilicals(1) Ltd: Newcastle

Third Quarter 2015 Results22

Calgary

Claremont

WeymouthBoston

Port-Of-SpainCaracas

Bogota

Ciudad del CarmenMexico City

Accra Lagos

LisbonBarcelona

Warsaw

St. Petersburg

Moscow

AntwerpLyon

Cairo

Athens

New Delhi

Mumbai

Chennai

Abu DhabiAl-Khobar

Doha

Kuwait

Seoul

Shanghai

Jakarta

Balikpapan

BangkokRayong

Ho Chi Minh City

St. John’s

Singapore

Milton Keynes

Aberdeen Oslo

Rio de Janeiro

MarseilleParis Frankfurt

Zoetermeer Düsseldorf

Luanda

Stavanger

Global Business with Unique Worldwide Footprint

Page 23: Technip 3q15 Presentation

2014Adjusted Revenue: €5,844 millionAdjusted Operating Income*: €276 million

2014Adjusted Revenue: €4,880 millionAdjusted Operating Income*: €635 million

Segment activity / Know-how Preliminary studies to detail design Project management: engineering, procurement,

construction Technology supply and project management

Key differentiators Proprietary pipe technologies (rigid & flexible) Leading industrial plants and operational facilities Alliances with industry leading partners

Key differentiators High added-value process design skills Proficiency in design of all platform types Proprietary technology, know-how and license partners

Segment activity / Know-how Subsea field architecture & integrated subsea design Manufacturing, Spooling & Installation pipelines Project management: engineering, procurement,

construction, logistics and installation using our high-end fleet

Onshore/Offshore

* Adjusted operating income from recurring activities after Income/(Loss) of Equity Affiliates

Deepwater infield lines

Ultra-deep water infield lines Deep-to-shore

Two contrasting business cycles and financial models

Subsea

23

Complementary Business Segments

Third Quarter 2015 Results

Page 24: Technip 3q15 Presentation

42%

19%

5%11%

23%

24

Backlog of €17.5 billion diversified by geography and by market split

Asia PacificMiddle East

Europe Russia

Central Asia

Africa

Americas

1%12%2%

27%

26%

32%

PetrochemsOthers

Gas / LNG / FLNG

Shallow Water*

Deepwater>1,000 meters*

Refining / Heavy Oil

* Includes subsea & offshore

As of September 30, 2015

Third Quarter 2015 Results

As of September 30, 2015

Worldwide Presence across Multiple Markets Addressing all Clients

Page 25: Technip 3q15 Presentation

(1) Backlog as of September 30, 2015. Long term charters not included, reflects the new application of IFRS 10, 11 & 1225

€8.4 billion backlog

Largest projects: Kaombo, Angola Moho Nord, Congo Jangkrik, Indonesia Lula Alto, Brazil T.E.N., Ghana Edradour, Scotland

Subsea

16 projects in €100 - 350 million Block 15/06, Angola Mariscal Sucre Dragon APS, Venezuela Lapa NE, Brazil

~60 projects in €10 - 100 million Bangka, Indonesia Iracema Sul, Brazil

Third Quarter 2015 Results

Onshore & Offshore €9.0 billion backlog

Largest projects: Yamal LNG, Russia Umm Lulu offshore facilities, UAE Martin Linge platform, Norway Prelude FLNG, Australia CP Chem polyethylene plant, USA Duslo Ammonia plant, Slovakia

13 projects in €100 - 600 million Juniper field, Trinidad & Tobago Unipetrol HDPE Litvinov, Czech

Republic

~29 projects in €10 - 100 million Browse FLNG FEED, Australia Malikaï TLP, Malaysia Phu My Ammonia plant, Vietnam

Pursue a Balance of Contract Sizes(1)

Page 26: Technip 3q15 Presentation

26

EPCI Projects (Subsea)

Technology

EPC Projects (Onshore/Offshore)

Vessel services

EP&CmProject Management Consultancy

Manufacturing

Conceptual and FEEDLife-of-field services

Diversified Revenue Streams Across our Segments

Third Quarter 2015 Results

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June 30, September 30,2015 2015

Fixed Assets 6,617.2 6,442.0

Construction Contracts – Amounts in Assets 952.5 973.1

Other Assets 4,350.8 3,940.7

Cash & Cash Equivalents 3,976.5 3,802.2

Total Assets 15,897.0 15,158.0

Shareholders’ Equity 4,288.5 4,403.3

Construction Contracts – Amounts in Liabilities 2,491.1 1,954.8

Financial Debts 2,562.0 2,501.4

Other Liabilities 6,555.4 6,298.5

Total Shareholders’ Equity & Liabilities 15,897.0 15,158.0

€ million

27

Adjusted Consolidated Statement of Financial Position

Third Quarter 2015 Results

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28

53%

7%7%

30%

R&D €83 million in 2014 to be sustained

2014 Cost base

Employee costs€2.3 billionOthers including Contracted€1.3 billionOperating leases€0.3 billion

D&A €0.3 billion

Project costs

Subcontractor: e.g. construction companies

Procurement

€830 million of cost savings, with full year impact in 2017

€700 million of cost savings in 2016

Fixed costs: €4.3 billion

Variable costs: depending on total project revenues

Accelerated Restructuring plan : Savings

Third Quarter 2015 Results

Page 29: Technip 3q15 Presentation

Deepwater infield linesUltra-deep water infield lines (Very high tensions: alliance with Heerema)

Deep-to-shore

S-Lay

HeavyLift

Subsea Heavy

Lift

J-Lay &

Reel-Lay

J-Lay &

Reel-Lay

Third Quarter 2015 Results29

Very Broad Execution Capabilities in Subsea

Page 30: Technip 3q15 Presentation

Umbilicals(Power & control)

Electrically Trace Heated Pipe-in-pipe

In-line Monitoring Technologies

Integrated Production Bundle

Third Quarter 2015 Results30

Agnostic Solutions

Proprietary Technologies

Integrating Technip subsea proprietary technologies and

offshore platform know-how with third party processing equipment to

provide innovative development

Providing independent architecture development and component selection

Improving equipment and installation converge in subsea architecture

Vendor Based Solutions

Broader Integrated Solutions from the Conceptual Stage

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Third Quarter 2015 Results31

Provides independent decision support from pre-feasibility, through feasibility, concept selection and pre-FEED

Dedicated engineers and designers delivering fit-for-purpose solutions for more than 25 years

One of the largest subsea designers in the world

Niche onshore and offshore global project delivery: FEED, detailed design & Project Management

Experts at operations support, asset integrity and decommissioning

Can simplify and speed-up project execution by leveraging the in-country resources of Technip, as required

Genesis adds value at the front-end of projects

Differentiation Through Genesis

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Early engagement to bring added value for a more cost- and schedule-effective solution

Links the know-how and expertise for the design and construction gained on Prelude FLNG by our teams

Client: Woodside and Shell

Consortium with Samsung Heavy Industries

Location: Development of 3 fields: Brecknock, Calliance & Torosa, located 425 kilometers North of Broome, Western Australia

Scope of work*: FEED for three FLNG units signed with Shell, then novated

to Woodside as operator

EPCI of the three FLNG units subject to clients’ FID at the end of the FEED

Award Overview

*Order intake recognized: in 2Q15 only for firm part of award: FEED

Australia

BrowseBasin

Browse FLNG Development

Picture courtesy of Shell

Bringing together our unique combination of expertise from Subsea to Onshore

32

Strategy in Practice: Browse FLNG

Third Quarter 2015 Results

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33 Third Quarter 2015 Results

Installation

Supply

Engineering

Supply

Engineering

Supply

Engineering

Installation

Procurement

SURF(1)

SSP(2)

SPS(3)

Topside

Seabed to surface fieldoptimization

Monitoring and surveillance, data analysis and advisory

services

(1) Subsea, Umbilicals, Risers and Flowlines(2) SSP: Subsea Processing(3) SPS: Subsea Production Systems

Life-of-field Early involvement

Engineering

Installation

Installation

Forsys Subsea: Unique Scope of Alliance Covering Complete Solution from Seabed to Surface

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(1) Inaugurated in June 2013

Electrically trace heated pipe-in-pipe (ETH-PIP)

Sustain R&D efforts on all of our product lines Open innovation and increased technology collaboration with our

clients Pursue our leading competitive edge with differentiating

technologies and assets Focus on making our client’s projects economically viable

Third Quarter 2015 Results34

ITC ShowroomInnovation & Technology Center (1) in Rueil-Malmaison, France

Think technology, think Technip

Innovation & Technology Center (ITC): our R&D Focus

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35

€ million

Group R&D Investments Examples of Subsea Technologies

0

15

30

45

60

75

90

2010 2011 2012 2013 2014

Electrically Trace Heated Pipe-in-Pipe

DIESTA: Dual enhanced heat transfer surfaces for tubes in air fin coolers

Swirl Flow Tube technology

Examples of Process Technologies

Technology is a clear differentiator in today’s market

Al Cable Power Umbilical

Technology Investment: Creates Sustainable Leadership

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Skandi ArcticWellservicerOreliaSkandi AchieverOlympic ChallengerNormand Pioneer

(1) As of September 30, 2015 - fleet of 19 vessels excluding 6 under construction: 4 PLSVs in Brazil, Skandi Africa (Construction vessel), Deep Explorer (DSV) (2) Photo by Bjørn Ottosen, courtesy of North Sea Shipping

Third Quarter 2015 Results36

Wholly-owned/controlled LeasedJointly-owned

S-Lay Heavy Lift Global 1200

Global 1201

Diving Multi Support Vessel

6 vessels

Flexible Lay &

Construction

Deep OrientDeep PioneerNorth Sea AtlanticNorth Sea Giant Coral Do AtlanticoEstrela Do MarSkandi NiteroiSkandi Vitoria

(2)

Rigid ReelLay & J-Lay

Apache IIDeep BlueDeep Energy3 vessels2 vessels

8 vessels

High Performing Fleet(1) Per Type of Vessel

Page 37: Technip 3q15 Presentation

Divested -8 -3

Total Fleet

Leased

Jointly-owned

37

36

19

5

27 20-2223

Wholly-owned 11 9 9

5 5 5 3-5

201520142013 2016-2017

4 83

9 6 5 0Under Construction

New

New +2 +4

Third Quarter 2015 Results

Divested -1 -1

New +1 (Skandi Africa)+1

+1 (Skandi Arctic)

-1

+1 (Deep Explorer)

-1

0-2

Divested

Flexibility in Fleet Management

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Third Quarter 2015 Results38

Broad capabilities from deep to shore

Flexible-Lay & Construction, S-lay, J-Lay, Rigid Reel-Lay, Diving Support

fully-owned, jointly-owned, long-term and short-term charters and leases

Top tier assets

Heerema alliance for deepwater projectsFlexible pipelay PLSVs for Brazil

Diving assets for North Sea and CanadaConstruction vessels for complex West African projects

Fleet flexibility through mix of contract types

Track record & good utilization worldwide

Global 1200

Deep BlueDeep Energy

PLSVs Skandi Arctic

Global 1200

Technip’s Differentiation through its Fleet Strategy

Page 39: Technip 3q15 Presentation

Gas treatment LNG

(Liquefied Natural Gas) GTL (Gas-to-Liquids)

Ethylene Polyolefins Aromatics Fertilizers

Hydrogen Clean fuels Heavy oil upgraders

Braskem Ethylene XXI, FEED & EPC, Mexico CPChem polyethylene plants, EPC, USA Sasol Ethane Cracker, FEED & EP&Cm, USA ASCENT, PDP & License, USA DUSLO Ammonia plant, EPC, Slovakia Phu My Ammonia plant, EPC, Vietnam

Burgas refinery, EPC, Bulgaria Petronas RAPID, FEED & PMC & EPCm,

Malaysia Basra Refinery Upgrading Project, PMC, Iraq MIDOR Refinery, early works, Egypt

Fengzhen LNG Plant, EP, China Yamal LNG, EPC, Russia Browse FLNG, FEED, Australia

Gas Monetization

Refining

Petrochemicals

Third Quarter 2015 Results39

World Leader in Gas Monetization, Refining and Petrochemicals

Page 40: Technip 3q15 Presentation

Third Quarter 2015 Results40

Product Line Technologies

Proprietary Technologies for Steam Cracking and Olefin PurificationEthylene

Hydrogen Steam Methane Reforming, Syngas and Hydrogen Production

Polyolefins, Styrenics, Phenolics, Purified Terephthalic AcidPetrochemicals& Polymers

Refining Fluid Catalytic Cracking, Refinery/Petchem Integration, Master Plan

Gas Monetization Gas Processing, Cryogenic Fractionation, Liquefaction

Fertilizers Ammonia/Urea, Phosphoric and Sulfuric Acids

Renewables Renewable Fuels, Geothermal, Carbon Capture

Metals & Mining Fluosolids® metal roasting, mixer/settler

Proprietary technologies

Best-in-class alliance partners

Investments in R&D

‘‘First of a kind’’ technology

Global teams of technological experts

Close integration between technology & project delivery

Technip has a Portfolio of Market Leading Process Technologies

Page 41: Technip 3q15 Presentation

Licensed proprietary technologies chosen at early stage of projects

Process Design / Engineering Proprietary Equipment Licenses

Design, supply and installation of critical proprietary equipment

Process design packages / engineering to guarantee plantperformance

Assistance to plant start-up and follow-up during plant production

~US$50 million*<US$5 million* <US$50 million*

* Project size order of magnitudeThird Quarter 2015 Results41

Offering three types of services

Technip Stone & Webster Process Technology Diversifies Revenue Streams

Page 42: Technip 3q15 Presentation

Diversity in scale, LNG technology and location

42 Third Quarter 2015 Results

Leading in innovation rich areas: Shell Prelude FLNG, Petronas FLNG 1, Browse FLNG (FEED) Mid-scale LNG

Technologically strong: introduced many concepts to the industry that are widely used today

Safety in design, modularization, marine works, global procurement…

Yemen LNG

Prelude FLNG*

Yamal LNG

Hanas LNG

* Picture courtesy of Shell

Technip’s Differentiators in LNG

Page 43: Technip 3q15 Presentation

Third Quarter 2015 Results43

Module sail away from yard

First module offloading

Substation installation

Engineering Phase 1 nearing completion First modules sailed away in July 2015 All of the 8 modules were delivered at Sabetta as planned On-the-ground construction infrastructures well advanced

Client: Yamal LNG (Novatek, Total, CNPC, Silk Road Fund) Technip leader of partnership (50%) with JGC & Chiyoda 3 trains of 5.5 mtpa capacity each 200 modules weighing ~450,000 tons in total to be shipped to Sabetta Early involvement with 14 months of project planning and detailed

engineering Order Intake Lump-sum scope €4.5 billion: engineering, procurement and modules

fabrication Reimbursable scope ~$4 billion: logistics and on-the-ground construction

Project Overview

As of September 30, 2015

Project 2015 Milestones

Yamal LNG Project Overview

Page 44: Technip 3q15 Presentation

44

Technip OffshoreA Complete Range of Products, Technologies & Services

Fixed Facilities

Floating Facilities

Services

Conventional Fixed Platforms

Self-Elevating (TPG 500) GBS Artificial Islands Floatover

InstallationHUC –

Modifications

FPSO Semi-Submersible Spar TLP FLNG

GBS: Gravity Base StructureHUC: Hook-Up & CommissioningFPSO: Floating Production Storage & OffloadingTLP: Tension Leg PlatformFLNG: Floating Liquefied Natural GasThird Quarter 2015 Results

Page 45: Technip 3q15 Presentation

FLNG Leader with First Mover Advantage

Third Quarter 2015 Results45

Shell Prelude FLNG Petronas FLNG 1

Project status: Construction ongoing in Korea Hull steel cut in October 2012 Launched hull in November 2013 First Topside installed in 2014 As of 3Q15, all process/utility modules

lifted, turret mooring system installed onto hull

Project status: Construction ongoing in Korea Execution started in June 2012 Hull steel cut in June 2013 Launched hull on April 7, 2014 First topside installed September 2014 All remaining modules and the 135

meter flare lifted onto hull

Unique combination of Technip’s technologies and know-how from all of our business segments

LNG capacity: 3.6 mtpa Field: Prelude, Western Australia

LNG capacity: 1.2 mtpa Field: Offshore Malaysia

Page 46: Technip 3q15 Presentation

Technip: Long Term Partner(1)

Sasol Front-end engineering services for future Sasol GTL projects

Air Products 20-year milestone of the longest and most productive global hydrogen alliance supporting the oil and gas industry

ExxonMobilCreation of a JV. Badger Licensing LLC to offer technology in the area of phenolics to produce cumene and bisphenol-A (BPA) and in the area of styrenics to produce ethylbenzene and styrene

MMHELong-term strategic collaboration to work jointly on onshore and offshore projects, designing and building offshore platforms, exchanging expertise and developing technology

COOECCombines the know-how, technical resources, complementary assets, commercial and financial capabilities of both companies to target deepwater EPCI SURF projects in China

HQCTwo joint ventures to improve access to the European and Chinese procurement markets

HeeremaAlliance through combination of unique assets and engineering resources to help clients best address the fast growing subsea ultra-deepwater market

ShellAgreement to enhance collaboration on the design, engineering, procurement, construction and installation of future FLNG facilities

BP Long-standing agreement in the purified terephthalic acid domain. Also the exclusive provider of the Inside Battery Limit FEED to BP for third-party licensing

Third Quarter 2015 Results46(1) Multitude of other partnerships and alliances apart from the ones listed above

FMC TechnologiesAgreement to form an exclusive alliance and to launch Forsys Subsea, a 50/50 joint venture that will unite the skills and capabilities of two subsea industry leaders.

Page 47: Technip 3q15 Presentation

Engineering & project management centers

Spoolbase: Dande, Angola

Umbilical manufacturing Plant: Angoflex, Angola

GirRI Phase 1 and 2, Angola Egina flexible pipe supply, Nigeria Moho Nord, Congo T.E.N., Ghana Block 15/06, Angola Kaombo, Angola

1st office founded in 1995 Strong national content Ultra-deep water projects

requiring technical innovation

Assets & Activities

Key Projects

Technip in Africa

Accra Lagos

Dande

LuandaAngoflex: Lobito

Dande spoolbase

Angoflex, Lobito

Third Quarter 2015 Results47

Operating centers

Spoolbase

Umbilicals Plant

As of September 30, 2015

Africa: Expanding Footprint and Long Term Prospects

Page 48: Technip 3q15 Presentation

Prelude FLNG, Australia Wheatstone, Australia Malikai TLP, Malaysia Block SK 316, Malaysia Jangkrik, Indonesia RAPID, Malaysia Bangka, Indonesia Liuhua TLPs 11-1 and 16-2, China Phu My Ammonia plant, Vietnam Browse FLNG FEED, Australia

Engineering & project management centers

Flexible/umbilical manufacturing plant:Asiaflex, Malaysia, 1st and only one in Asia

Logistic base: Batam, Indonesia Fabrication yard: MHB(1), Malaysia, with solid

platform track record Vessels: G1201(2), Deep Orient

Perth

Bangkok

Shanghai

Singapore

Jakarta

Balikpapan

Founded in 1982 Successful partnerships and

alliances: COOEC, HQC & MMHE

Technip in Asia Pacific

(1) MHB: Malaysia Marine and Heavy Engineering Holdings Berhad of which Technip holds 8.5%

Batam

Assets & Activities

Key ProjectsNew Delhi

Mumbai

Chennai

Seoul

Rayong

Ho Chi Minh City

(2) Operating partly in Asia Pacific

Prelude FLNG, Australia

Third Quarter 2015 Results48

Regional Headquarters

Logistic Base

Umbilicals plant

Operating centers

Flexible Pipe Plants

Asiaflex Products:Tanjung Langsat

Kuala Lumpur

Asiaflex, Malaysia

As of September 30, 2015

Asia Pacific: Global Implementation for High Potential Market

Page 49: Technip 3q15 Presentation

Upper Zakum 750 + EPC1, UAE

Halobutyl elastomer plant, Saudi Arabia

Umm Lulu package 2, UAE

FMB platforms, Qatar

New Refinery units FEED, Bahrain

Nasr Phase II Full Field Development, UAE

Basra Refinery Upgrading Project, Iraq

Key Projects

Founded in 1984

Technip in Middle East

Abu Dhabi, UAE

Al-KhobarDoha

Abu Dhabi

Engineering & project management centers

Wide range of services: from conceptual and feasibility studies to lump-sum turnkey projects

Construction methods center & supervision hub

Assets & Activities

Third Quarter 2015 Results49

Operating centers

Kuwait

Yemen LNG

As of September 30, 2015

Middle East: Largest Engineering Capacity in the Region

Page 50: Technip 3q15 Presentation

CPChem, polyethylene plants, Texas, USA

Ethylene XXI plant, Mexico

Delta House, US Gulf of Mexico

Juniper, Trinidad and Tobago

ASCENT ethane cracker and polyethylene units, West Virginia, USA

Sasol ethane cracker, Lousiana, USA

K2 Riser Bas Gas Lift, US Gulf of Mexico

Blind Faith 2, US Gulf of Mexico

BostonWeymouth

Calgary

Claremont

Mexico City Ciudad delCarmen

HoustonMobile

Engineering & project management centers with Subsea, and Onshore/Offshore capabilities

SpoolbaseMobile, Alabama

Umbilicals plant Channelview, Texas

Vessels: Deep Blue, Global Orion, G1200

Assets & Activities

Key Projects

Founded in 1971

Technip in North America(1)

Ethylene XXI Plant, Mexico

Technip Umbilicals Inc

Third Quarter 2015 Results50

Regional Headquarters

Spoolbase

Umbilicals plant

Operating centers

Lucius Spar, US Gulf of Mexico

Mobile spoolbase, Alabama

Technip Umbilicals plant, Texas

(1) Including Canada As of September 30, 2015

North America: Solid Reputation With Enhanced Portfolio of Downstream Technologies

Page 51: Technip 3q15 Presentation

St. John’s

Evanton

London

Pori

Oslo

Orkanger

Stavanger

Milton Keynes

Aberdeen

Engineering & project management centers Spoolbases Orkanger, Norway Evanton, Scotland

Steel tube/thermoplastic umbilical plant Technip Umbilical, Newcastle, UK

Yard: Pori, Finland, specialized in Spar platforms fabrication

Vessels:

Assets & Activities

Spoolbases

Construction yard

Umbilicals plant

Quad 204, Scotland

Åsgard Subsea Compression, Norway

Valdemar & Roar Gas Lift, Denmark

Edradour & Glenlivet, Scotland

Kraken, Scotland

Gullfaks, Norway

Key Projects

Apache II

Skandi Arctic Deep Energy

Skandi Achiever

Regional HeadquarterOperating centers

1st office founded in 1978

Technip in North Sea

Third Quarter 2015 Results51

Technip Umbilicals Ltd: Newcastle

Evanton spoolbase, Scotland Newcastle plant, UK

As of September 30, 2015

North Sea Canada: Strong Presence

Page 52: Technip 3q15 Presentation

Wide range of assets: High-end manufacturing plants: Vitória and

Açu (world’s most technologically advanced plant)

9 Flexible Pipelay vessels (PLSVs) on long-term charters(1)

Commitment to R&D: taking pre-salt development further

Vertical integration: providing supply chain & logistic solutions

Differentiating Assets & Activities

Flexible pipe supply for ultra-deep pre-salt developments: Sapinhoá & Lula Nordeste, Iracema Sul, Sapinhoá Norte & I5, Iracema Norte, Lula Alto, Libra EWT(2)

Key Projects

Founded in 1977 Exceeds national content requirements Operational discipline Flexible supply expertise

Technip in Brazil

(1) including four under construction & four Brazilian built(2) Extended well test

Flexibras:Vitória

Flexibras:Açu

MacaéPort of Angra

Rio de Janeiro

Third Quarter 2015 Results52

Regional Headquarters

Port and Logistic bases

Manufacturing plants (flexible pipelines)

Coral Do Atlantico & Estrela Do Mar

Flexibras, Brazil

~40 years

Açu, Brazil

As of September 30, 2015

Brazil: Building a Solid & Profitable Subsea Business

Page 53: Technip 3q15 Presentation

Listed on Euronext Paris

53

North America37.0% / (37.6%)

Treasury Shares1.0% / (1.2%)

Employees1.7% / (1.8%)

IFP Energies Nouvelles2.4% / (2.5%)

Rest of World19.3% / (15.0%)

French Institutional Investors11.4% / (13.8%)

Individual Shareholders7.5% / (7.5%)

Others4.4% / (5.8%)

UK & Ireland10.1% / (9.6%)

BPI5.2% / (5.2%)

Source: NASDAQ, Shareholder Analysis, May 2015Third Quarter 2015 Results

Shareholding Structure, May 2015 (Nov 2014)

Page 54: Technip 3q15 Presentation

54

Bloomberg: TEC FP Reuters: TECF.PA SEDOL: 4874160

OTC ADR ISIN: US8785462099OTCQX: TKPPY

Convertible Bonds:OCEANE 2010 ISIN: FR0010962704OCEANE 2011 ISIN: FR0011163864

ISIN: FR0000131708

Third Quarter 2015 Results

Technip’s Share Information

Page 55: Technip 3q15 Presentation

Bloomberg ticker: TKPPY CUSIP: 878546209 OTC ADR ISIN: US8785462099

Depositary bank: Deutsche Bank Trust Company Americas

Depositary bank contacts: ADR broker helpline: +1 212 250 9100 (New York)

+44 207 547 6500 (London) e-mail: [email protected] ADR website: www.adr.db.com Depositary bank’s local custodian: Deutsche Bank Amsterdam

Technip has a sponsored Level 1 ADR

Third Quarter 2015 Results55