MAIRE TECNIMONT GROUP OVERVIEW

Transcription

1 MAIRE TECNIMONT GROUP OVERVIEW J.P. Morgan Small/Mid Cap Conference September 2017

2 DISCLAIMER MAIRE CORPORATE TECNIMONT PROFILE GROUP MAY OVERVIEW 2016 SEPTEMBER 2017 This document has been prepared by Maire Tecnimont S.p.A. (the Company ) solely for use in the presentation of the Maire Tecnimont Group (the Group ). This document does not constitute or form part of any offer or invitation to sell, or any solicitation to purchase any security issued by the Company. The information contained and the opinions expressed in this document have not been independently verified. In particular, this document may contain forward-looking statements that are based on current estimates and assumptions made by the management of the Company to the best of its knowledge. Such forward-looking statements are subject to risks and uncertainties, the non-occurrence or occurrence of which could cause the actual results including the financial condition and profitability of the Group to differ materially from or be more negative than those expressed or implied by such forward-looking statements. This also applies to the forward-looking estimates and forecasts derived from third-party studies. Consequently, neither the Company nor its management can give any assurance regarding the future accuracy of the estimates of future performance set forth in this document or the actual occurrence of the predicted developments. The data and information contained in this document are subject to variations and integrations. Although the Company reserves the right to make such variations and integrations when it deems necessary or appropriate, the Company assumes no affirmative disclosure obligation to make such variations and integrations. 2

3 SUMMARY 1. Group Overview 2. Strategy and Competitive Positioning 3. Operations and Commercial Activity 4. Financial Data 5. Conclusions

4 MAIRE TECNIMONT GROUP Leading worldwide engineering contractor focusing on: Oil&Gas Petrochemicals Fertilizers Key Indicators 2.4 bn Revenues (FY 2016) 1.7 bn Revenues (H1 2017) 8,200 Employees and E&I professionals 50 Operating companies Flexible Business Model spanning the entire value chain: 8.6 bn Backlog (June 30, 2017) 1.6 bn Market Cap (Sep 8, 2017) Project Development Licensing and Engineering Services (E) Engineering & Procurement (EP) Engineering, Procurement & Construction (EPC) Life Cycle Support Two main Business Units: Technology, Engineering & Construction Infrastructure & Civil Engineering Revenues by Business Unit 4% 96% TE&C Infrastructure 4

5 KEY MILESTONES Our Evolution 1899 FIAT GROUP 1972 Incorporation of FIAT ENGINEERING 2001 Acquisition of FIAT Avio s Electric Design & Construction Business 2004 Acquisition of Fiat Engineering (later MAIRE ENGINEERING) Listing on the Italian Stock Exchange 1937 Dutch State Mines DSM research centre for services work to coal mines 1947 Incorporation of STAMICARBON Chemical and Fertilizer licensing Acquisition of Stamicarbon 1971 Kinetic Technology Int. - KTI More than 40 years of experience in process engineering 1988 Mannesmann acquired KTI 1999 Technip Italy acquired KTI Acquisition of KT Kinetics Technology (formerly Technip KTI) Repositioning Completed Incorporation of MAIRE TECNIMONT 1963 Giulio Natta Nobel Prize for chemistry 1884 EDISON Power Supply 2005 Maire Group acquires Tecnimont 1973 Incorporation of TECNIMONT 1966 Incorporation of MONTEDISON 1888 MONTECATINI Mines and Chemicals 100% Acquisition of the Indian subsidiary Tecnimont Pvt. Ltd. (formerly TICB) 1990s Tecnimontacquires 50% of the Indian company renamed as Tecnimont ICB Pvt Ltd (TICB) 1977 Creation of the first JV between ICB and Tecnimont 1958 Incorporation of ICB Pvt Ltd as consulting firm in the plant sector in Mumbai Reorganization of Italian HQs New Milan Offices Launch of the New Business Strategy Record Backlog and Sales 5

6 GROUP STRUCTURE Business Unit Large-scale contracting in: Oil & Gas Polyolefins Fertilizers Refining Hydrogen and Syngas Production Sulphur Recovery Fertilizers Technology Technology, Engineering & Construction Infrastructure & Civil Engineering Renewable Energy Infrastructure & Civil Engineering 6

7 TECHNOLOGY, ENGINEERING & CONSTRUCTION Maire Tecnimont Group s Presence Across the EPC Value Chain TECHNOLOGY-DRIVEN EXECUTION- DRIVEN PROJECT DEVELOPMENT LICENSING ENGINEERING PROCUREMENT CONSTRUCTION LIFE-CYCLE SUPPORT FERTILIZERS OIL & GAS PETROCHEMICALS Subsidiary: Startup Full Involvement: From Project Development to Life-Cycle Support Operation Advice Maintenance Inspections Revamping 7

8 INFRASTRUCTURE & CIVIL ENGINEERING Long-Lasting Competencies in Transportation and Civil Engineering Underground projects (including the first driverless metro system in Italy), railways, tunnels, roads and highways EPC contracting for construction / requalification of hospitals, universities, complex buildings and industrial plants 300+ DESIGN AND CONSTRUCTION OF OVER 30% OF HIGH SPEED & HIGH CAPACITY RAILWAYS CURRENTLY OPERATED IN ITALY PROJECTS SUCCESSFULLY COMPLETED IN MORE THAN 40 YEARS EXPERIENCE Flexible Solutions in Renewable Energy Increasing focus with a dedicated team on Wind, Solar and Biomass large-scale power plants as reliable counterpart of international operators High quality services along the whole value chain: from development and design to EPC, leveraging on Lump Sum Turn Key expertise and global presence 8

9 EXTENSIVE INTERNATIONAL PRESENCE ROME SITTARD MILAN BRAUNSCHWEIG MUMBAI ITALY 2,259 REST OF EUROPE 318 ASIA 2,583 REST OF THE WORLD TOTAL EMPLOYEES *Average age: ~41 years Approx. 66% graduates 70 5,230* E&I division ~3,000 GRAND TOTAL ~ 8,230 Data as of: A Real Multicultural and Multinational Group Headquarters Main offices and engineering centres Subsidiaries, branches and representative offices 9

10 SUMMARY 1. Group Overview 2. Strategy and Competitive Positioning 3. Operations and Commercial Activity 4. Financial Data 5. Conclusions

11 MAIRE TECNIMONT S STRATEGIC PRIORITIES Enhance and Develop Technology Driven Business Align Organization and Pursue Group Synergies 1 Strengthen EPC in the Core Business 5 Expand Geographic Footprint 4 Strategic Priorities 3 2 Develop Engineering Services Revenues 11

12 STRATEGY IMPLEMENTATION TECHNOLOGY-DRIVEN EXECUTION- DRIVEN PROJECT DEVELOPMENT LICENSING ENGINEERING PROCUREMENT CONSTRUCTION LIFE-CYCLE SUPPORT PROJECT DEVELOPMENT Pre-empt competitive pressures Leverage technological edge Client partnerships PRODUCTS TYPICAL VOLUMES TYPICAL MARGINS RISK Direct License Basic Feed 1-10m Very High Double Digit High Double Digit High Double Digit Detailed Engineering Services EP EPC 1-10m 4-15m 10-40m m 0.3-5bn Mid Double Digit Low Double Digit Low Low Low Low Medium High Single Digit Provide Technological Solutions Throughout the EPC Value Chain LIFE-CYCLE SUPPORT Improve client loyalty Revenue diversification Increase plant value-added 12

13 GLOBAL & TECHNOLOGICAL LEADERSHIP PETROCHEMICALS Well rooted technology orientation: market leader (#1) for installed capacity 30% Market share in polyolefin plants 40% Market share in LDPE plants Since Polyethylene Plants 117 Polypropylene Plants * Data are based on corporate analysis FERTILIZERS 172 Ammonia and Urea Plants completed since ,100 + Individual Patents 54% Market share in licensing urea plants technology (#1 worldwide)* 34% Market share in licensing urea granulation technology (#2 worldwide)* OIL & GAS WELL RECOGNIZED LEADERSHIP in Licensing hydrogen technology and in licensing Sulphur Recovery and Tail Gas Treatment Technology WORLD CLASS TRACK RECORD in Large Gas Treatment Plants and Refinery Process Units Since Hydrogen and Sulphur Recovery Unit Projects completed Strong commitment to technology development 13

14 OUR OPERATIONS ARE DRIVEN BY POSITIVE BUSINESS TRENDS PETCHEM Gas monetization: Cheap feedstock supports owner s investment attractiveness Strong demand for plastics-based products FERTILIZERS Gas monetization Demography and agricultural modernization driving long term demand for nitrogen-based fertilizers Technology barriers OIL & GAS Midstream Oil and Gas Treatment Refining: Revamping & Capacity upgrade Integration between petchem and refining 14

15 DIFFERENTIATING FACTORS VS. OUR COMPETITORS Our focus is Downstream and Gas Transformation, not Upstream Flexible business model Asset light: no idleness Leverage on our strong technological IPs Client diversification (NOCs vs. IOCs) Global approach with focus on specific geographies Our Group is Well Positioned to Face the Current Environment 15

16 MAIRE TECNIMONT HAS BEEN OUTPERFORMING THE SECTOR Maire Tecnimont s Relative Performance, 6/20/14 9/8/17 Maire Tecnimont BEUOILS Index WTI Future Jun-14 Sep-14 Dec-14 Mar-15 Jun-15 Sep-15 Dec-15 Mar-16 Jun-16 Sep-16 Dec-16 Mar-17 Jun-17 Sep - 17 Source: Bloomberg. BEUOILS Index Components: Subsea 7, Saipem, Petrofac, John Wood Group, SBM, Amec FW, TGS Correlation Coefficient MT BEUOILS = 0.26 MT WTI Future = 0.28 BEUOILS WTI Future= Our Stock is Not Correlated to the Oil Price 16

17 GROUP RESPONSIVENESS TO MARKET DISCONTINUITY Dedicated revamping engineering initiatives New way of originating business through early involvement in investment initiatives PROJECT DEVELOPMENT REVAMPING TECHNOLOGY & SERVICES Siluria Technologies H2S cracking Technologies adjacent to urea New Clean Coal Technologies Oman Malaysia Indonesia West Africa Americas NEW GEOGRAPHIES CORE BUSINESS EXECUTION RENEWABLES & GREEN CHEMISTRY Wind, Solar Biomass Bio-chemicals INTEGRATED PROJECTS Reinforcing competencies to tackle increasing scale and complexity of plants 17

18 SUMMARY 1. Group Overview 2. Strategy and Competitive Positioning 3. Operations and Commercial Activity 4. Financial Data 5. Conclusions

19 MAIN PETROCHEMICAL PROJECTS PP PLANT, SUMGAYIT (AZERBAIJAN) CLIENT: SOCAR Polymer CONTRACT TYPE: EPC - PP, HDPE 180m HDPE PLANT, SUMGAYIT (AZERBAIJAN) CLIENT: SOCAR Polymer CONTRACT TYPE: EPC - PP, HDPE 350m LLDPE-HDPE-PP PLANTS, SOHAR (OMAN) CLIENT: ORPIC CONTRACT TYPE: EPC US$895m LDPE PLANT, BRATISLAVA (SLOVAK REPUBLIC) CLIENT: Slovnaft Petrochemicals s.r.o. CONTRACT TYPE: EPC 204m PDH PLANT, TOBOLSK (WESTERN SIBERIA) CLIENT: Tobolsk Polymer LLC CONTRACT TYPE: EPC 660m LDPE PLANT, VERACRUZ (MEXICO) CLIENT: EtilenoXXI Services BV CONTRACT TYPE: EP US$191m LLDPE-HDPE-PP PLANTS, DAHEJ (GUJARAT, INDIA) CLIENT: OPAL CONTRACT TYPE: EPC US$440m POLYOLEFINS COMPLEX, RABIGH (SAUDI ARABIA) CLIENT: Petro Rabigh CONTRACT TYPE: EPC 1.2bn LDPE PLANT, SADARA (SAUDI ARABIA) CLIENT: Sadara Chemical Company CONTRACT TYPE: EPC 280m PDH/POLYPROPYLENE PLANT, AL JUBAIL (SAUDI ARABIA) CLIENT: Al Waha CONTRACT TYPE: EPC 580m UNDER REALIZATION PROJECT COMPLETED PROJECT PE/NAO PLANTS, MESAIEED (QATAR) CLIENT: QATAR CHEMICAL COMPANY II CONTRACT TYPE: EPC US$830m POLYOLEFINS UNITS (RAPID), PENGERANG (MALAYSIA) CLIENT: PRPC Polymers Sdn Bhd (PETRONAS) CONTRACT TYPE: EPCC 328m HDPE UNIT (RAPID), PENGERANG (MALAYSIA) CLIENT: PRPC Polymers Sdn Bhd (PETRONAS) CONTRACT TYPE: EPCC 482m POLYOLEFINS COMPLEX, RUWAIS (UAE) BOROUGE 1 - BOROUGE 2 BOROUGE 3 CLIENT: BOROUGE CONTRACT TYPE: (1) US$ 445m, (2) US$1.8bn, (3) EPC S$1.7bn 19

20 MAIN OIL & GAS PROJECTS REFINERY OFF GAS(ROG) PROJECT, ANTWERP (BELGIUM) CLIENT: TOTAL Olefins Antwerp CONTRACT TYPE: EPC 193m OIL & GAS TREATMENT PLANT, LUBIATOW (POLAND) CLIENT: Polish Oil & Gas Company CONTRACT TYPE: EP 91m SULPHUR COMPLEX GDANSK (POLAND) CLIENT: Grupa Lotos SA CONTRACT TYPE: EPC 111m DELAYED COKER COMPLEX PROJECT AND HYDROWAX VACUUM DISTILLATION, GDANSK (POLAND) CLIENT: LOTOS ASFALT SP. ZO.O CONTRACT TYPE: EPC 304m COMBINED OIL REFINING UNIT (CORU) MOSCOW REFINERY (RUSSIAN FEDERATION) CLIENT: JSC Gazprom Neft Moscow Refinery CONTRACT TYPE: EPC 480m OIL AND GAS TREATMENT "TEMPA ROSSA CORLETO PERTICARA (ITALY) CLIENT: Total E&P Italia S.p.A. CONTRACT TYPE: EPC 505m AMURSKI GAS PROCESSING PLANT(RUSSIAN FEDERATION) CLIENT: NIPIgaspererabotka CONTRACT TYPE: EPC 3.9 bn AROMATICS COMPLEX SHUAIBA (KUWAIT) CLIENT: KUWAIT PARAXYLENE PRODUCTION COMPANY (KPPC) CONTRACT TYPE: EPC US$1.2bn WAFA GAS PLANTS PROJECT MELLITAH & GADAMES BASIN (LIBYA) CLIENT: AGIP GAS BV CONTRACT TYPE: EPC 1.2bn CLEAN FUEL PROJECT RABIGH, (SAUDI ARABIA) CLIENT: Petro Rabigh CONTRACT TYPE: EPC 148m UNDER REALIZATION PROJECT COMPLETED PROJECT SULPHUR RECOVERY UNITS, MOSTOROD (EGYPT) CLIENT: Egyptian Refinery Company CONTRACT TYPE: EP 97m IGD EXPANSION PROJECT (IGD-E1), GAS TREATMENT AND MARINE WORKS, DAS ISLAND (UAE) CLIENT: ADGAS (ADNOC GROUP) CONTRACT TYPE: EPC US$490m OIL GATHERING, TREATMENT, EXPORT AL DABBI YA PHASE III, ABU DHABI (UAE) CLIENT: ADCO CONTRACT TYPE: EPC US$2.3bn INTEGRATED GAS DEVELOPMENT HABSHAN 5 (ABU DHABI UAE) CLIENT: GASCO CONTRACT TYPE: EPC US$4.7bn LNG TERMINAL CHENTOUJIA, GUANGDONG (CHINA) CLIENT: GUANGDONG LNG JEO CONTRACT TYPE: EPC 280m 20

21 MAIN FERTILIZERS PROJECTS YARA, SLUISKIL (THE NETHERLANDS) Client: YARA International ASA Contract type: EPC 125m AMMONIA PLANT, KINGISEPP (RUSSIAN FEDERATION) Client: EuroChem Mineral and Chemical Company Contract type: EPC 660m IOWA FERTILIZER COMPANY, WEVER, IOWA (USA) Client: Orascom Construction Industries Contract type: EP 250m AMMONIA/UREA PLANT NEVINNOMYSSK (RUSSIAN FEDERATION) Client: EuroChem Mineral and Chemical Company Contract type: E AMMONIA DEBOTTLENECKING, Annaba, Arzew (ALGERIA) Client: Fertial Contract type: E FERTILIZERS COMPLEX, ASWAN (EGYPT) Client: KIMA Contract type: EPC US$540m UNDER REALIZATION PROJECT COMPLETED PROJECT FERTILIZER COMPLEX PROJECT AL-JUBAIL (KINGDOM OF SAUDI ARABIA) Client: SAFCO Contract type: EPC US$350m STAMICARBON LICENSES: OVER 240 WORLDWIDE AMMONIA PLANT NANGAL PUNJAB (INDIA) Client: National Fertilizers Ltd. Contract type: EPC US$240m UREA DEBOTTLENECKING & GRANULATION PLANT SHUAIBA (KUWAIT) Client: P.I.C. Contract type: EPC US$100m 21

22 FLAGSHIP PROJECTS Polyolefins Gas Treatment BOROUGE 3, ABU DHABI, UAE HABSHAN 5, ABU DHABI, UAE Refinery ROG PROJECT, ANTWERP, BELGIUM Fertilizers IOWA FERTILIZER COMPANY, IOWA, USA 22

23 2017 FLAGSHIP PROJECT: THE AMURSKI GAS PROCESSING PLANT Project Overview Country: Russia Ultimate Client: Gazprom Group through JSC NIPIgaspererabotka Overall Value: 3.9bn Scope of Work: EPC of Package number 3 (Utilities, Infrastructure and Offsites facilities) of the Amurski Gas Processing Plant Key Characteristics Source: Gazprom Largest contract ever to be awarded to our Group One of the largest gas processing plant in the world: feed gas capacity of 42 billion cubic meters of natural gas per year Part of Gazprom s strategic plan to supply Russian natural gas to China First milestone of a large industrial development, including investments in downstream petrochemicals Consortium with Sinopec Engineering Group Two phases: Lump Sum Engineering and Procurement ( 1.7bn) and Reimbursable Construction ( 2.2bn) Expected completion in 2023 Consolidation of the Group s long-lasting presence in the Russian Federation 23

24 BACKLOG Backlog by Business Unit ( m, 31/3/17-30/6/17) Backlog by Geography 8, June 2017 Africa 2% Others 5, ,178 Asia 9% 9% 5,393 31/3/17 30/6/17 TE&C& Infrastructure Middle East 23% Highest Backlog Ever 57% Europe 24

25 BACKLOG ANALYSIS TE&C BUSINESS UNIT Backlog by Type ( m, 31/3/17-30/6/17) Book to Bill Ratio* (31/12/16-30/6/17) 8,178 5, ,683 7, /3/17 30/6/17 E EP EPC Good mix between E, EP, and EPC /12/16 31/3/17 30/6/17 Excellent cover for future revenues *Defined as the ratio between Backlog and LTM Revenues *Defined as the ratio between Backlog and LTM Revenues 25

26 OUTLOOK ON COMMERCIAL ACTIVITY (TE&C) Commercial Activity ( bn, Dec 16-Jun 17) Dec '16 Mar '17 Jun'17 Prospect, Prequalification & Pre-Tendering Tendering Tendered Our Pipeline is the Highest Ever 26

27 COMMERCIAL ACTIVITY S GEOGRAPHICAL BREAKDOWN (TE&C)* 1.1bn Europe POLYOLEFIN REFINERY 8.2bn C.I.S. FERTILIZER POLYOLEFIN GAS TREATMENT REFINERY 1.4bn North and Central America POLYOLEFIN 2.5bn South America GAS TREATMENT POLYOLEFIN 10.9bn Africa FERTILIZER POLYOLEFIN GAS TREATMENT REFINERY Middle East FERTILIZER POLYOLEFIN GAS TREATMENT REFINERY New Contracts Expected, Driven by Significant Commercial Efforts *Figures include prospect prequalification and pre-tendering, tendering, and tendered 6.9bn 6.2bn Asia FERTILIZER POLYOLEFIN GAS TREATMENT 27

28 SUMMARY 1. Group Overview 2. Strategy and Competitive Positioning 3. Operations and Commercial Activity 4. Financial Data 5. Conclusions

29 CONSOLIDATED INCOME STATEMENT & BALANCE SHEET INCOME STATEMENT m H Revenues 1, , , ,653.1 EBITDA EBITDA % 8.0% 7.8% 6.6% 5.8% EBIT Net Income 50.3 (1) 43.8 (1) Revenues Growth in revenues driven by execution of recordlevel backlog Steady growth in EBITDA and Net Income EBITDA marginality reflects changing backlog mix BALANCE SHEET m as of Dec 14 Dec 15 Dec 16 Jun 17 Net Invested Capital (Asset) (458.7) (251.8) (227.5) (287.8) Net Debt Total Shareholders' Equity Group Shareholders' Equity Strong growth in Shareholders equity driven by positive results Net debt reduction due to disposals and cashflow generation (1) Restated Net Income in 2014 and 2015 with average effective tax rate of 37% would be 38.7m and 48.9m respectively 29

30 NET FINANCIAL POSITION AND CASH FLOW BRIDGE Net Financial Position ( m) Net Cash Bonds Conv. Bond Derivatives Dec 2016 Jun Net Debt Dec 2016 Operating Cash Flows and Forex Cash Flow Bridge ( m) Net Financial Income Capex Dividends and Treasury Shares Net Debt Jun

31 SPREAD OF BANK DEBT REFINANCINGS, Spread (bps) Refinancing Date Amount ( m) Final Maturity May 2013 Apr 2015 Dec 2015 Apr-17 May /2017 Apr Dec /2020 Apr /2022 We Have Reduced our Bank Debt Spread by over 60% since

32 SUMMARY 1. Group Overview 2. Strategy and Competitive Positioning 3. Operations and Commercial Activity 4. Financial Data 5. Conclusions

33 CONCLUSIONS Leading worldwide engineering contractor focusing on Oil&Gas, Petrochemicals and Fertilizers Providing Technological Solutions throughout the entire EPC Value Chain Entirely focused on Gas Treatment, Downstream and Onshore Flexible business model Global approach with focus on specific geographies 33

34 Maire Tecnimont Group s Headquarters Via Gaetano De Castillia, 6A Milan info@mairetecnimont.it Investor Relations T F Investor-relations@mairetecnimont.It