Building Solutions for the Energy Industry Alain Marion, SVP Innovation & Technology Laurent Decoret, VP Technology Development

Transcription

1 Building Solutions for the Energy Industry Alain Marion, SVP Innovation & Technology Laurent Decoret, VP Technology Development Investors Group Meeting, Rueil-Malmaison, France, October 4, 2013

2 2 Emergency exits

3 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. 3 Investors Group Meeting Innovation & Technology Center

4 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 4 Investors Group Meeting Innovation & Technology Center

5 Our Strategic Framework To Deliver Sustainable & Profitable Growth Execution capability Vertical integration National content Key differentiating assets Well diversified, profitable backlog Technology 5 Investors Group Meeting Innovation & Technology Center

6 Very Broad Execution Capabilities in Subsea Heavy Lift Subsea Heavy Lift J-Lay & Reel-Lay J-Lay & Reel-Lay S-Lay Ultra-deep water infield lines (Very high tensions: alliance with Heerema) Deepwater infield lines Deep-to-shore 6 Investors Group Meeting Innovation & Technology Center

7 Subsea Vertical Integration: Customer Support from Concept to Execution Concept Execution Upstream Engineering With Genesis (1) Pre-FEED (2) and FEED Offshore field development studies Innovative technology solutions for platform and subsea challenges P R O J E C T M A N A G E M E N T Project Engineering & Procurement Manufacturing Flexible risers and flowlines Installation Flexible-lay Umbilical-lay Associated construction Rigid Pipeline Welding/Spooling Rigid Reel-lay Rigid J-lay Rigid S-lay Support, Diving & Logistics Umbilicals Heavy-lift for Subsea infrastructure Offshore topside installation R&D, Proprietary Software & Hardware (1) Genesis Oil & Gas Consultants, a wholly owned subsidiary of Technip (2) FEED: Front End Engineering Design 7 Investors Group Meeting Innovation & Technology Center

8 National Content: a Key Factor in Project Execution Technip in Brazil 36 years of unmatched experience Garoupa Platform 1 st flexible pipe installed 100m water depth 1977 ~20 people st LTC 1 with Petrobras: Sunrise 1995 Flexibras: 1 st Flexible plant 2001 Acquisition of UTC Engineering Roncador Field Development & P-52 Platform 1,800m water depth 2007 ~2,000 people st IPB 2 in Brazil 1 st Brazilian PLSV: Skandi Vitória 2010 P-58/P-62 Brazilian FPSOs award Acquisition of Angra Porto logistic base nd Brazilian PLSV: Skandi Niteroi Flexible pipe frame agreement with Petrobras 2012 ~3,700 people 1 Long Term Charter 2 Integrated Production Bundle As of June 30, Investors Group Meeting Innovation & Technology Center

9 Global Business with Unique Multi-Local Footprint North America 3,900 people Founded in 1971 Evanton Newcastle Le Trait Orkanger Europe North Sea Pori 8,900 people 4,800 people Founded in 1958 Founded in 1978 Houston Mobile Carlyss Africa 750 people Founded in 1995 Middle East 2,500 people Founded in 1984 Asia Pacific 8,900 people Founded in 1982 Latin America 4,300 people Founded in 1977 Lobito Port Harcourt Dande Kuala Lumpur Batam Tanjung Langsat Macaé Vitória Açu (under construction) Angra Porto 4 Flexible pipeline plants 9 x15 x4 x4 x13 Flexible-Lay & Construction Rigid Reel-Lay & J-Lay Rigid S-Lay and Heavy Lift Diving & Multi-Support Vessels 4 Umbilical plants 1 Construction yard 4 Logistic bases 5 Spoolbases

10 Supporting Early Involvement in Projects Cambridge Stavanger Oslo Aberdeen Milton Keynes London Zoetermeer Claremont Houston Paris Tunis Rome Beijing Abu Dhabi Mumbai Trinidad Kuala Lumpur Singapore Rio de Janeiro Perth Brisbane Genesis Regional Headquarters / Operating centers Process Technologies Regional Headquarters / Operating centers Genesis & Process Technologies Regional Headquarters / Operating centers 10 Investors Group Meeting Innovation & Technology Center

11 Our Strategic Framework To Deliver Sustainable & Profitable Growth Execution capability Vertical integration National content Key differentiating assets Well diversified, profitable backlog Technology 11 Investors Group Meeting Innovation & Technology Center

12 Investment in Key Subsea Assets Plants New long-term charters 7, incl. 1 under construction North Sea Giant Vessels North Sea Atlantic, delivery in , incl. 7 under construction As of September 30, Investors Group Meeting Innovation & Technology Center

13 New Asset Delivery in 2013: Açu Plant One of the most technologically advanced plants ever built High-end flexible manufacturing plant dedicated to to pre-salt development Expanding High-tech large Brazil s diameter national flexible content pipes High-tech 3,000 meters large water diameter depth flexible for new pipes frontiers 3000 Expanding metres Brazil s Water Depth national Flexibles content for New Frontiers Initial start-up at end of 2013 Initial start-up at end of 2013 Plant construction & machinery delivery Plant on-going construction and time & machinery delivery on-going and on time >150 employees gaining experience at >150 Vitória employees gaining experience at Vitória Açuflex plant in in Brazil Brazil 13 Investors Group Meeting Innovation & Technology Center

14 Versatile Fleet to Support Worldwide Operations Flexible Lay & Construction 15 units 1 J-Lay Rigid Reel Lay 4 units 1 S-Lay Heavy Lift 4 units 1 Diving Multi Support Vessel 13 units 1 Deep Orient Deep Energy G1200 Skandi Arctic Skandi Niteroi & Vitoria Deep Blue G1201 Skandi Achiever 2 x 550t PLSVs 2 Apache II Hercules Global Orion 4 New PLSVs 2 Chickasaw Iroquois Alliance 1 As of June 30, Part of 7 vessels under construction

15 New Asset Delivery in 2013: Deep Orient Capable of laying flexible pipe & umbilicals in water down to 2,300 m Designed to remain stable in a range of loaded conditions, maximizing workability and that of the crane 2 work class ROVs (1) 250 T active heave-compensated / constant tension crane enables the vessel to lift and install with pin-point accuracy Large deck space (>1,900 m 2 ) for operations in remote locations Deep Orient (2) Ideal for subsea construction and long distance flexible pipelay projects in remote locations (1) ROV: Remotely operated vehicle (2) Length: 135,65 meters, Speed: 13 knots, Accomodation: 120 people 15 Investors Group Meeting Innovation & Technology Center

16 New Asset Delivery in 2013: Deep Energy Supports subsea developments in ultra deep waters (down to 3,000 m) Variety of cranes and winches to support operations in multiple environments 2 x 3,000 m work-class ROVs (1) PLET handling system delivers In-Line Trees, Riser Base Gas Lift Skids, and Riser Hang Off Flex Joints Handles rigid pipes up to 18, flexible pipes up to 24 and umbilicals in water depths up to 3,000 m Deep Energy (2) One of the largest and fastest pipelay vessels ever built (1) ROV: Remotely operated vehicle (2) Length: 194,5 meters, Speed: 20 knots, Accomodation: 140 people 16 Investors Group Meeting Innovation & Technology Center

17 Investing in Key Differentiating Assets: Long Term Charter Flexible Pipe Lay Vessels ) 4 Flexible Pipe Lay Vessels to be built by the Technip / DOF JV World s largest: two 650 ton to be built in Norway (1) National content: two 300 ton to be built in Brazil (1) (1) laying capacities 17 Investors Group Meeting Innovation & Technology Center

18 Our Strategic Framework To Deliver Sustainable & Profitable Growth Execution capability Vertical integration National content Key differentiating assets Well diversified, profitable backlog Technology 18 Investors Group Meeting Innovation & Technology Center

19 Solid Fundamentals for Oil & Gas Industry 120 Oil Demand versus Production million barrels per day (mb/d) production Demand: +13 mb/d +16 mb/d +18 mb/d +34 mb/d of Crude Oil to be developed/found mb/d +8 mb/d +4 mb/d +1 mb/d mb/d of other oil-based resources 20 Depletion rate : ~6%* Estimated Oil Demand -37 mb/d -37 mb/d on current produced crude oil reserves Total production: NGLs Unconventional Biofuel Processing Gains Yet to be Developed Crude Oil 19 Yet to be Found *IEA WEO : Depletion rate calculated on average. Depletion is the annual rate at which the remaining recoverable resources of a field or region are being produced.

20 Business Environment North America Upswing in US Gulf of Mexico US shale gas driving downstream investments and LNG FEEDs Upgrades & brownfield prospects North Sea High level of subsea awards continues Larger & more complex projects Increase in platform activity Middle East Sustained volume of activity Good opportunities offshore, subsea & downstream Latin America Growing visibility in Brazil with post-salt & pre-salt developments Technology choices & necessary assets Africa Momentum building in West Africa subsea New discoveries to drive future onshore & offshore developments Asia Pacific Emerging deeper water prospects GDP growth drives refining, petrochemicals and fertilizer investments New Australian gas projects continue, onshore developments less certain 20 Investors Group Meeting Innovation & Technology Center

21 Backlog Analysis Backlog by Geography Africa 13% 9% 11% Middle East 48% 29% 17% 8% 28% Petrochems Backlog by Market Split Others Refining / Heavy Oil 1% 2% 3% 16% 12% 10% 12% 14% 12% 11% 9% Gas / LNG / FLNG 37% 37% 21% 20% 42% Americas 18% Shallow Water (1) 11% Asia Pacific Europe / Russia Central Asia 12% 30% 27% 9% Dec 2006 Dec 2012 June 2013 Deepwater (1) >1,000 meters 23% 18% 30% Dec 2006 Dec 2012 June 2013 Backlog as of: December 2006: 10.3 billion December 2012: 14.3 billion June 2013: 15.2 billion 21 (1) Includes offshore platforms and subsea projects

22 Our Strategic Framework To Deliver Sustainable & Profitable Growth Execution capability Vertical integration National content Key differentiating assets Well diversified, profitable backlog Technology 22 Investors Group Meeting Innovation & Technology Center

23 Continuously Investing in Technology R&D investments Subsea R&D: 370 people million* Headcount end Offshore / Onshore R&D Costs Subsea Gross R&D Costs Others 3% Rigid 17% Umbilical 6% AIM 8% Flexible 60% Hybrid Technologies 6% *Excluding Tax Credit 23 Investors Group Meeting Innovation & Technology Center

24 2020 to Achieve our Ambition Think Technology, Think Technip Imagine the future Create a difference Deliver Client success! 24 Investors Group Meeting Innovation & Technology Center

25 Rueil Innovation & Technology Center (ITC) 25 Investors Group Meeting Innovation & Technology Center

26 Feed Innovation Pipeline Cross-fertilize between technologies Foster Open Innovation ITC: Central hub for developing Subsea Technology Develop competences & attract talents from all over the world Provide a structure to expand / access additional resources 26 Investors Group Meeting Innovation & Technology Center

27 A Subsea Technology Network to Serve Customers North Sea Canada DUCO UK Universities OED UK North America Innovative SME s ITC Rueil Strategic Suppliers Asia Pacific RDD Brazil IFP EN CEA Tech Seal France PED France Brazil Europe, India Africa 27 R&D Centers Regional Technology Officers R&D Partners

28 Strategic Market Orientations Reliability & Integrity Management of Subsea Assets Smart pipelines and innovative subsea architectures Ultra-deepwater reserves: towards 4,000m Difficult reservoir conditions Arctic Quality Reliability Cost 28

29 Prioritized R&D Programs Predictive Monitoring Smart Subsea Architecture S-Lay Innovative Installation Hybrid Riser Systems Flexible Pipe Umbilicals Reeled Pipe 29 Investors Group Meeting Innovation & Technology Center

30 Electrical Pipe In Pipe Actively keep the produced fluid warm Low energy consumption Fiber optics: temperature monitoring Flow assured by electrically heated pipes High thermal insulation Quick installation: Reel Lay compatible High reliability Heat Tracing Cable Laying Machine 30 Investors Group Meeting Innovation & Technology Center

31 Integrated Production Bundle Technology The riser flow assurance solution Step change in flow assurance for ultra-deepwater developments Combines high efficiency active heating and temperature monitoring Integration of Gas Lift tubes Successful deployment on Dalia & Pazflor and new application on Papa Terra Insulation for flow assurance Satellite lines: heating, gas lift, monitoring Central production line 31 Investors Group Meeting Innovation & Technology Center

32 New Developments in Flexible Pipe Technology Anti H 2 S Layer Flexible Pipe Carbon Fiber Armor Riser Pressure sheath Anti H 2 S sheath Steel Layers High Pressure / High Temp Pre-salt Large Diameter Pipe 32 Investors Group Meeting Innovation & Technology Center

33 Umbilical Technology Thermoplastic hose Pushing operating envelops Electrical power cable High strength aluminium conductor Water depth capability: 3,000 meters and beyond Superior fatigue and electrical reliability at any water depth Smart umbilicals Vital feedback via built-in and retro-fit sensors Multi-quick connector stab plate ROV friendly design Light weight, compact, easy to install 33 Investors Group Meeting Innovation & Technology Center

34 Field Proven Riser Solutions for Ultra-Deepwater Flexible riser solution Field development solution largely used in Brazil: Campos basin Brazilian pre-salt Tupi Pilot, Guara Lula NE Gas Injection, Iracema Sul, Sapinhoa & Lula Nordeste Steel lazy wave riser BC-10 Phase 2, Brazil Caesar / Tonga, Gulf of Mexico Free standing hybrid riser PDET gas export system, Brazil Cascade & Chinook, Gulf of Mexico Steel catenary risers Field development solution largely used in Gulf of Mexico: Nakika: 2,300 meters Perdido: 2,400 meters Stones: 2,900 meters 34 Investors Group Meeting Innovation & Technology Center

35 Subsea Assets Monitoring and Smart Pipes Floaters, Buoys & Mooring Systems Risers, Pipelines & Umbilicals Subsea Production Surveillance 35 Investors Group Meeting Innovation & Technology Center

36 Optimizing Subsea Field Architecture Integrating our subsea proprietary technologies and offshore platform knowhow with third party processing ULTRADEEPWATER equipment to provide bopd innovative FIELD - LAY-OUT development solutions 10 production wells - 5 x 8" Flowlines+Risers - 5 SSBUs North Wells TO SHORE In-line Monitoring Technologies WD: 1000m Integrated Production Bundle WD: 2200m Electrically Trace Heated Pipe-in-pipe South Wells Umbilicals (Power & control) * Drawing not to scale Subsea Equipment (Separator & pump) Technip proprietary technologies Third party equipment 36 Investors Group Meeting Innovation & Technology Center

37 Think Technology, Think Technip Technip is continuously investing in technology Addressing the challenges of the future Reliability & Integrity Management of Subsea Assets Smart pipelines and innovative subsea architectures Ultra-deepwater reserves: towards 4,000 meters Difficult reservoir conditions Arctic Open innovation Collaboration with clients, suppliers, research institutes, universities Partnerships with CEA tech and IFP EN 37 Investors Group Meeting Innovation & Technology Center

38 Technip s Share Information ISIN: FR Bloomberg: TEC FP Reuters: TECF.PA SEDOL: OTC ADR ISIN: US OTCQX: TKPPY Convertible Bonds: OCEANE 2010 ISIN: FR OCEANE 2011 ISIN: FR Private Placement Notes: ISIN: FR Investors Group Meeting Innovation & Technology Center

39 Technip has a sponsored Level 1 ADR Bloomberg ticker: TKPPY CUSIP: OTC ADR ISIN: US Depositary bank: Deutsche Bank Trust Company Americas Depositary bank contacts: ADR broker helpline: (New York) (London) adr@db.com ADR website: Depositary bank s local custodian: Deutsche Bank Amsterdam 39 Investors Group Meeting Innovation & Technology Center