Building Solutions for the Energy Industry Thierry Pilenko, Chairman and CEO September 4, 2013
Safe Harbor T his 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 of forward-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-looking statements. These forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to differ materially from the anticipated results, performance or achievements expressed or implied by these forward-looking statements. Risks that could cause actual results to differ materially from the results anticipated in the forward-looking statements include, among other things: our ability to successfully continue to originate and execute large services contracts, and construction and project risks generally; the level of production-related capital expenditure in the oil and gas industry as well as other industries; currency fluctuations; interest rate fluctuations; raw material, especially steel as well as maritime freight price fluctuations; the timing of development of energy resources; armed conflict or political instability in the Arabian-Persian Gulf, Africa or other regions; the strength of competition; control of costs and expenses; the reduced availability of government-sponsored export financing; losses in one or more of our large contracts; U.S. legislation relating to investments in Iran or elsewhere where we seek to do business; changes in tax legislation, rules, regulation or enforcement; intensified price pressure by our competitors; severe weather conditions; our ability to successfully keep pace with technology changes; our ability to attract and retain qualified personnel; the evolution, interpretation and uniform application and enforcement of International Financial Reporting Standards, IFRS, according to which we prepare our financial statements as of January 1, 2005; political and social stability in developing countries; competition; supply chain bottlenecks; the ability of our subcontractors to attract skilled labor; the fact that our operations may cause the discharge of hazardous substances, leading to significant environmental remediation costs; our ability to manage and mitigate logistical challenges due 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 risks materialize, or should our underlying assumptions prove incorrect, our future results could be adversely affected, causing these results to differ materially from those expressed in our forward-looking statements. These factors are not necessarily all of the important factors that could cause our actual results to differ materially from those expressed in any of our forward-looking statements. Other unknown or unpredictable factors also could have material adverse effects on our future results. The forward-looking statements included in this release are made only as of the date of this release. We cannot assure you that projected results or events will be achieved. We do not intend, and do not assume any obligation to update any industry information or forward looking information set forth in this release to reflect subsequent events or circumstances. **** This presentation does not constitute an offer or invitation to purchase any securities of Technip in the United States or any other jurisdiction. Securities may not be offered or sold in the United States absent registration or an exemption from registration. The information 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 or indirectly, in whole or in part, to any other person. Non-compliance with these restrictions may result in the violation of legal restrictions of the United States or of other jurisdictions. 2 Second Quarter 2013 Results
A 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 � Revenues driven by services provided to clients Onshore/Offshore and Subsea � Around 38,000 people in 48 countries � 2012 Revenues: €8.2 billion; Operating margin (1) of 10% for the 4 th year (1) From recurring activities 3
Diversified & Balanced Customer Base International Oil Companies National Oil Companies 4 Second Quarter 2013 Results
Backlog History € billion 7.4 6.8 6.0 6.1 2.7 6.0 5.6 2.7 4.4 3.5 3.1 3.1 1.9 3.5 8.5 8.2 8.0 7.8 7.6 7.4 6.7 6.7 6.1 6.0 5.9 4.9 4.9 3.7 Dec 2004 Dec 2005 Dec 2006 Dec 2007 Dec 2008 Dec 2009 Dec 2010 Dec 2011 Mar 2012 Jun 2012 Sep 2012 Dec 2012 Mar 2013 Jun 2013 ONSHORE/OFFSHORE SUBSEA 5
Backlog Analysis Backlog by Geography Backlog by Market Split 2% 1% 3% Others 9% 13% Africa 12% 10% 17% 16% Petrochems 11% 11% 8% 14% Refining / 12% Heavy Oil 9% 12% 29% Middle East 48% 28% 37% Gas / LNG / FLNG 37% 21% 42% 20% Americas 18% 11% Shallow Water (1) Asia Pacific 12% 30% 30% 27% Deepwater (1) 23% 18% >1,000 meters Europe / Russia 9% Central Asia Dec 2006 Dec 2012 June 2013 Dec 2006 Dec 2012 June 2013 (1) Includes offshore platforms and subsea projects Backlog as of: December 2006: €10.3 billion December 2012: €14.3 billion June 2013: €15.2 billion 6 Second Quarter 2013 Results
(1) 2013 Full Year Objectives Maintained � Group revenue growing 11% to 16% to between €9.1 and €9.5 billion � Subsea revenue growing to between €4.3 and 4.6 billion, with operating margin (2) around 15% � Onshore/Offshore revenue growing to between €4.7 and €5.1 billion, with operating margin (2) between 6% and 7% (1) year-to-date exchange rates (2) from recurring activities 7 Second Quarter 2013 Results
A World Leader Bringing Innovative Solutions to the Oil & Gas Industry Subsea Onshore/Offshore � Worldwide leadership � Proven track record with customers & business partners � Unique vertical integration � Engineering & construction � R&D � Project execution expertise � Design & Project Management � Early involvement through conceptual studies � Manufacturing & Spooling and FEEDs � Installation � Knowhow � First class assets and technologies � High added-value process skills � Technologically Advanced � Proprietary platform design Manufacturing plants � Own technologies combined with close � High performing vessels relationship with licensors � Advanced rigid & flexible pipes � Low capital intensity � Very broad execution capabilities 8 Second Quarter 2013 Results
Global Business with Unique Multi-Local Footprint… North Sea � 4,800 people � Founded in 1978 Orkanger Pori Evanton Europe Newcastle North America Le Trait � 8,900 people � 3,900 people � Founded in 1958 � Founded in 1971 Middle East Mobile Asia Pacific Houston Carlyss Africa � 2,500 people � 8,900 people � Founded in 1984 � 750 people � Founded in 1982 � Founded in 1995 Tanjung Langsat Kuala Lumpur Port Harcourt Latin America Batam Dande � 4,300 people Lobito � Founded in 1977 Vitória Açu (under construction) Macaé Angra Porto 4 Flexible pipeline plants Flexible-Lay & Construction 4 Umbilical plants x15 Rigid Reel-Lay & J-Lay 1 Construction yard x4 Rigid S-Lay and Heavy Lift 4 Logistic bases x4 Diving & Multi-Support Vessels 5 Spoolbases x13 Second Quarter 2013 Results 9
…Supporting Early Involvement in Projects Stavanger Oslo Aberdeen Milton Keynes London Zoetermeer Cambridge Paris Rome Beijing Claremont Tunis Houston Mumbai Abu Dhabi Trinidad Kuala Lumpur Singapore Brisbane Rio de Janeiro Perth Genesis Regional Headquarters / Operating centers Process Technologies Regional Headquarters / Operating centers Genesis & Process Technologies Regional Headquarters / Operating centers 10 Second Quarter 2013 Results
Early Involvement Improves Likelihood of Successful Project Development and Execution Technip E&C Activities Early Engagement Subsea / Offshore CONCEPT CONCEPT CREATE ASSESS FEED EPC OPERATE DECOM SELECTION DEFINITION � Field Development Planning through: � Consultancy to support execution: � Debottlenecking � Safety & environmental assessment � HSE � Inspection services � Capex/Opex estimates � Risk & integrity management � Decommissioning � Risk analysis � Specialized services studies � Flow assurance PROCESS TECHNICAL DEVELOP LICENSE CONCEPTUAL FEED EPC START ‐ UP DESIGN ASSISTANCE Onshore � Early collaborative approach through: � Validation process packages � Performance tests � Joint ‐ development of new technologies � Supply of proprietary equipment � Debottlenecking � Licensing � Project Management Consultancy (PMC) � Revamp & Upgrade � Process Design Book 11 Second Quarter 2013 Results
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