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Building Solutions for the
Energy Industry
Kimberly Stewart, Head of Investor Relations
Jefferies Energy Conference, Houston, November 11 & 12, 2015
Safe Harbor
his presentation contains both historical and forward-looking statements. These forward-looking statements are not based on historicalfacts, 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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2
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 revenue
4
(1) Former Duco
Evanton
Orkanger
Flexibras:
Vitória
Flexibras:
Açu
Macaé
Port of Angra
Pori
Asiaflex Products:
Tanjung LangsatBatam
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
5
Calgary
Claremont
Weymouth
Boston
Port-Of-SpainCaracas
Bogota
Ciudad del CarmenMexico City
AccraLagos
LisbonBarcelona
Warsaw
St. Petersburg
Moscow
Antwerp
Lyon
Cairo
Athens
New Delhi
Mumbai
Chennai
Abu Dhabi
Al-Khobar
Doha
Kuwait
Seoul
Shanghai
Jakarta
Balikpapan
BangkokRayong
Ho Chi Minh City
St. John’s
Singapore
Milton Keynes
Aberdeen Oslo
Rio de Janeiro
Marseille
Paris Frankfurt
Zoetermeer Düsseldorf
Luanda
Stavanger
Global Business with Unique Worldwide Footprint
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
6
Technip Onshore: Leader in Gas Monetization, Refining and Petrochemicals
7
Technip Offshore: A Complete Range of Products, Technologies & Services
Fixed Facilities
Floating Facilities
Services
Conventional
Fixed Platforms
Self-Elevating
(TPG 500)GBS Artificial Islands
Floatover
Installation
HUC –
Modifications
FPSO Semi-Submersible Spar TLP FLNG
GBS: Gravity Base Structure
HUC: Hook-Up & Commissioning
FPSO: Floating Production Storage & Offloading
TLP: Tension Leg Platform
FLNG: Floating Liquefied Natural Gas
Umbilicals
(Power & control)
Electrically Trace
Heated Pipe-in-pipe
In-line Monitoring
Technologies
Integrated
Production Bundle
8
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 selectionImproving equipment and installation
converge in subsea architecture
Vendor Based Solutions
Technip Subsea: Broader Integrated Solutions from the Conceptual Stage
9
EPCI Projects
(Subsea)
Technology
EPC Projects
(Onshore/Offshore)
Vessel services
EP&Cm
Project Management Consultancy
Manufacturing
Conceptual and FEED
Life-of-field services
Diversified Revenue Streams Across our Segments
11
Subsea
€8.4 billion
2015
(3 months)
2017 & beyond2016
Onshore/Offshore
€9.0 billion
2015 (3 months)
2017 & beyond2016
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
12
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
13
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
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
Restructuring Plan Announced July 6th on Track
14
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
(1) Selling, General and Administrative Costs
Continued Focus on Capex and Cost Discipline
Fleet reduced from 36 vessels in 2013 to 23 vessels in 2015
16
Bering
Sea
8 modules offloaded and being installed
Erection of the first site pre-assembled
pipe rack on-going
On-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 Strait
Western route through
Suez Canal
Route to Module Intermediate
Storage Yard
Engineering
Phase 1 nearing
completion
Two vessels navigated
through Bering Strait, an
industry breakthroughParis, France
Yokohama, Japan
Batam, Indonesia
Achieving 2015 Key Milestones on Time: Yamal LNG Project
Penglai, China
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
Browse
Basin
Browse FLNG Development
Picture courtesy of Shell
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Bringing Together our Unique Combination of Expertise: Browse FLNG
Making Marginal Fields Development Viable: Juniper Project
FEED Engineering contracts
Execution phase
separate contracts for:
Detail Engineering & Procurement Services for
Platform
Detail Engineering & Procurement Services for
Subsea and Pipelines Scope
Fabrication Contracts for Jacket/Piles &
Topsides
Installation Contract for Jacket/Piles &
Topsides
Installation Contract for Subsea & Pipelines
Hook-up & Commissioning Contract
Client staff required to manage both
technical and commercial contracts &
interfaces
18
FEED Engineering contract
EPCIC for platform, subsea and
Pipelines
Original Project Delivery Model by Client Final Project Delivery Model by Technip
19
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
Accompanying Clients Throughout the Project Lifecycle: Sasol, Lake Charles
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
20
Iracema Norte
Iracema Sul
Sapinhoa Norte
Libra
Lula Nordeste
Lula Alto
São Paulo
Açuflex Plant, Brazil
Confirming Leadership for the Brazilian Pre-Salt Market
Santos
Basin
21
€ million
Group R&D Investments Subsea Technologies Examples
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
Process Technologies Examples
Technology is a clear differentiator in today’s market
Al Cable Power
Umbilical
Sustaining Technology Investment
22
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
Technip Strengths in a Challenging Environment
Solid backlog of €17.5 billion
at end 3Q15
Diversifiedrevenue streams