FMC Overview Fourth Quarter 2016 Director, Investor Relations Matt Seinsheimer +1 281.260.3665 matthew.seinsheimer@fmcti.com
This presentation contains forward-looking statements intended to qualify for the safe harbors from liability established by the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact contained in this report are forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended (the Exchange Act ). Forward-looking statements usually relate to future events and anticipated revenues, earnings, cash flows or other aspects of our operations or operating results. Forward-looking statements are often identified by the words believe, expect, anticipate, plan, intend, foresee, should, would, could, may, estimate, outlook and similar expressions, including the negative thereof. The absence of these words, however, does not mean that the statements are not forward-looking. These forward-looking statements are based on our current expectations, beliefs and assumptions concerning future developments and business conditions and their potential effect on us. While management believes that these forward-looking statements are reasonable as and when made, there can be no assurance that future developments affecting us will be those that we anticipate. All of our forward-looking statements involve risks and uncertainties (some of which are significant or beyond our control) and assumptions that could cause actual results to differ materially from our historical experience and our present expectations or projections. Known material factors that could cause actual results to differ materially from those contemplated in forwardlooking statements include those described in Part I, Item 1A Risk Factors of our Annual Report on Form 10-K and in our Quarterly Reports on Form 10-Q. We wish to caution you not to place undue reliance on any forward-looking statements, which speak only as of the date hereof. We undertake no obligation to publicly update or revise any of our forward-looking statements after the date they are made, whether as a result of new information, future events or otherwise, except to the extent required by law. 1
An oilfield services and equipment company $6.4 billion revenue in 2015 Approximately 14,500 employees worldwide* 29 major production facilities and services bases in 18 countries * As of September 30, 2016. 2
$6.4B Revenue in 2015 from three segments Systems Multi Phase Meters Schilling Robotics Measurement Solutions Loading Systems Separation Systems 6% 23% Surface International Fluid Control Surface Integrated Services 71% Energy Infrastructure Surface 3
Annual financial results Energy Infrastructure Surface $B Orders $10 $8 $6.0 $6 $4 $6.7 $9.1 $8.1 $4.8 $B Backlog $8 $6 $4 $4.9 $5.4 $7.0 $6.6 $4.4 $2 $2 $0 $B $M Revenue Operating Profit* $10 $8 $6 $4 $2 $0 2011 2012 2013 2014 2015 $5.1 $6.2 $7.1 $7.9 $6.4 2011 2012 2013 2014 2015 $0 $1,400 $1,200 $1,000 $800 $600 $400 $200 $0 2011 2012 2013 2014 2015 $619 $772 $856 $1,199 $874 2011 2012 2013 2014 2015 *Excludes charges and gains Refer to Appendix A for non-gaap to GAAP reconciliations 4
Quarterly financial results Energy Infrastructure Surface $B Orders $2.0 $B Backlog $8 $1.5 $1.0 $0.5 $1.5 $0.8 $0.7 $0.5 $6 $5.0 $4.4 $4.0 $4 $3.4 $0.7 $3.0 $2 $0.0 $0 3Q15 4Q15 1Q16 2Q16 3Q16 3Q15 4Q15 1Q16 2Q16 3Q16 $B Revenue $M Operating Profit* $2.5 $300 $2.0 $250 $231 $1.5 $1.0 $1.5 $1.4 $1.2 $200 $170 $1.2 $1.1 $150 $125 $111 $100 $124 $0.5 $50 $0.0 3Q15 4Q15 1Q16 2Q16 3Q16 $0 3Q15 4Q15 1Q16 2Q16 3Q16 *Excludes charges and gains Refer to Appendix B for non-gaap to GAAP reconciliations 5
is 71% of revenue FMC 2015 Revenue All Other Segments 6
Our primary focus is on Systems Market share Orders (2011 2015) GE 10% Revenue (2011 2015) GE 11% FMCTI 41% Cameron 21% Aker 22% Dril-Quip 6% Tree units (2011 2015) GE 17% FMCTI 41% Cameron 22% Aker 19% Dril-Quip 7% Total Market $57.6B FMCTI 39% Cameron 24% Aker 18% Dril-Quip 2% Total Market $53.0B Complexity and value per well increasing Total Market 1,669 Sources: Douglas-Westwood, Quest Offshore Resources, Inc. 7
Market Forecast Quest Offshore Resources Future tree awards (2016* - 2020) 300 200 229 126 100 78 69 59 52 51 41 30 30 0 Source: Estimates from Wood Mackenzie, November 2016 Over half of the next 5 years awards from customers with strong FMCTI relationships. *Does not include trees awarded during the first, second, and third quarter of 2016. 8
Market Overview Quest Offshore Resources 650 550 Tree awards 553 450 350 250 150 50 452 434 319 416 373 311 236 154 80 185 300 314 380 2016 0 2017 13 2018 75 2019 77 2020 95 Source: Estimates from Wood Mackenzie, November 2016 9
Deepwater Remains a Critical Source of Future Hydrocarbons Partners MMb/d 36 Million Barrels / Day of Incremental Production Required MMb/d The Deepwater Opportunity Source: Rystad Energy Supply Study; October 2016 Source: Rystad Energy Supply Study, FMC ; October 2016 10
Improving Deepwater Project Economics More than 400 deepwater discoveries have yet to be developed Early innings for deepwater cost reductions Standardization, technology and strong project execution can deliver sustainable savings Integrated business model can reduce costs of SPS/SURF scope 500 400 300 200 100 0 410 Projects +40% to 60% Today's Costs Costs (-20%) $20-40 $40-60 $60-80 $80-100 > $100 Source: Quest Database, Rystad 11
Technology leadership Strong subsea track record EVXT provided for BP on Thunderhorse project Worked with Petrobras to install Vertical Tree Systems 2001 2006 Shell announced it would implement FMC 15K EVDT in GOM 2010 FMC 20K, 350 subsea system agreement with Anadarko, BP, ConocoPhillips, and Shell Jul 2014 2005 Installation of our EVXT on Chevron s Blind Faith project 2009 Introduced industry first HC-20 Wellhead Feb 2014 First oil from Shell s 15K EVDT in GOM 12
Capabilities in all major deepwater basins 2015 Revenue: $4.5B Norway Europe Asia- Pacific Newfoundland Scotland South America Houston Africa North America Ivory Coast Brazil Ghana Nigeria Congo Angola Malaysia Singapore Australia 6 Manufacturing Facilities 14 Customer Support Bases manufacturing facility service base technology center 13
Standard Equipment for 20,000 psi 350F JDA Partners Equipment Scope Enhanced Vertical Deepwater Tree (EVDT) System High Integrity Pipeline Protection System (HIPPS) Distribution Well Jumper Controls HC-20 Wellhead (20K psi High Capacity) 14
Expanding our subsea solutions scope Core products Trees Manifolds Control systems Template systems Flowline connection systems New products processing Separation Boosting Gas compression Well Intervention Services Remotely Operated Vehicles ( ROVs ) and ROV manipulator systems 15
Services Platforms Organizing Execution and Growth Engines for Success Optimize Uptime Optimize Flowrate FMCTI Service Platforms Drilling Systems Installation Asset Management Production Optimization Field IMR Well Services 16
Shale Opportunities Growth Flowback Stimulation Stimulation cycle Separators Choke manifold Water processing Articulating frac arm manifold Flowline Well service pumps Frac Trees Current offering Future offering Advanced separation 17
Acquiring key enabling technologies Separation Systems Compact in-line primary separation Schilling Robotics ROVs, manipulator systems, controls Direct Drive Systems Technology High power, compact permanent magnet motors, magnetic bearings Multi Phase Meters Multiphase flow meters Automation and Control Control and automation system solutions Completion Services Flowback services 18
An oilfield service & equipment company with Looking Forward High degree of deepwater/subsea capabilities Growth opportunities are available 40% subsea tree unit market share Uphold position as market leader Strong customer alliances 8 subsea processing awards Basis for repeat business and innovation Continue to be industry technology leader 19
www.fmctechnologies.com 20
Appendix A FMC TECHNOLOGIES, INC. AND CONSOLIDATED SUBSIDIARIES RECONCILIATION OF NON-GAAP TO GAAP FINANCIAL MEASURES (In millions, unaudited) Twelve Months Ended 2015 2014 2013 2012 2011 Surface Energy Infrastructure Surface Energy Infrastructure Surface Energy Infrastructure Surface Energy Infrastructure Surface Energy Infrastructure (pre-tax) Segment operating profit (loss), excluding charges $ 679.9 $ 175.4 $ 19.1 $ 753.1 $ 393.0 $ 52.5 $ 524.9 $ 257.2 $ 74.3 $ 419.0 $ 284.3 $ 68.2 $ 306.0 $ 250.1 $ 63.2 Impairment and other charges (5.1) (61.4) - - - - - - - - - - - - - Restructuring and other severance charges (44.6) (12.3) (8.5) (4.9) - - - - - - - - - - - Inventory write-downs - (41.1) (7.4) - - - - - - - - - - - - Angolan tax adjustment - - - - - - 23.3 - - - - - - - - Schilling Robotics acquisition - - - - - - - - - 13.2 - - - - - Segment operating profit (loss), as reported $ 630.2 $ 60.6 $ 3.2 $ 748.2 $ 393.0 $ 52.5 $ 548.2 $ 257.2 $ 74.3 $ 432.2 $ 284.3 $ 68.2 $ 306.0 $ 250.1 $ 63.2 21
Appendix B FMC TECHNOLOGIES, INC. AND CONSOLIDATED SUBSIDIARIES RECONCILIATION OF NON-GAAP TO GAAP FINANCIAL MEASURES (In millions, unaudited) September 30, 2016 Surface Energy Infrastructure Three Months Ended June 30, 2016 March 31, 2016 December 31, 2015 September 30, 2015 Surface Energy Infrastructure Surface Energy Infrastructure Surface Energy Infrastructure Surface Energy Infrastructure (pre-tax) Segment operating profit (loss), excluding charges $ 125.1 $ (5.2) $ 3.7 $ 120.2 $ (17.2) $ 7.8 $ 113.2 $ 13.2 $ (1.2) $ 131.8 $ 32.1 $ 6.5 $ 188.0 $ 41.9 $ 1.4 Impairment and other charges (0.5) (0.5) - (2.2) (0.6) - (0.1) (35.6) - (2.6) 0.4 - (2.1) (58.0) - Restructuring and other severance charges (4.9) (13.9) (1.2) (20.8) (3.9) - (3.6) (4.0) (2.1) (21.9) (3.5) (3.8) (15.2) (1.6) (1.7) Inventory write-downs - - - - - - - (2.2) - - (36.3) (5.7) - (4.8) (1.7) Segment operating profit (loss), as reported $ 119.7 $ (19.6) $ 2.5 $ 97.2 $ (21.7) $ 7.8 $ 109.5 $ (28.6) $ (3.3) $ 107.3 $ (7.3) $ (3.0) $ 170.7 $ (22.5) $ (2.0) 22