Building Solutions for the Energy Industry Alain Marion, SVP - - PowerPoint PPT Presentation

Alain Marion, SVP Innovation & Technology Laurent Decoret, VP Technology Development

Investors Group Meeting, Rueil-Malmaison, France, October 4, 2013

Building Solutions for the Energy Industry

Emergency exits

2

Investors Group Meeting – Innovation & Technology Center 3

Safe Harbor

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

• ther 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

• r 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.

T

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 4th year

(1) From recurring activities

Investors Group Meeting – Innovation & Technology Center

Vertical integration

5

Our Strategic Framework

Well diversified, profitable backlog Key differentiating assets Technology National content Execution capability

To Deliver Sustainable & Profitable Growth

Investors Group Meeting – Innovation & Technology Center

6

Very Broad Execution Capabilities in Subsea

S-Lay Heavy Lift

Deep-to-shore Deepwater infield lines Ultra-deep water infield lines

(Very high tensions: alliance with Heerema)

Subsea Heavy Lift J-Lay & Reel-Lay J-Lay & Reel-Lay

Investors Group Meeting – Innovation & Technology Center

• Rigid Reel-lay
• Rigid J-lay

Subsea Vertical Integration: Customer Support from Concept to Execution

Concept Project Engineering & Procurement Upstream Engineering With Genesis(1)

• Pre-FEED(2) and

FEED

• Offshore field

development studies

• Innovative

technology solutions for platform and subsea challenges R&D, Proprietary Software & Hardware

Execution Manufacturing

• Rigid S-lay

P R O J E C T M A N A G E M E N T

• Flexible risers

and flowlines

• Rigid Pipeline

Welding/Spooling

• Umbilicals

Installation

• Flexible-lay
• Umbilical-lay
• Associated

construction

• Heavy-lift for

Subsea infrastructure

• Offshore topside

installation Support, Diving & Logistics

(1) Genesis Oil & Gas Consultants, a wholly owned subsidiary of Technip (2) FEED: Front End Engineering Design

7 Investors Group Meeting – Innovation & Technology Center

National Content: a Key Factor in Project Execution

2011

Garoupa Platform 1st flexible pipe installed 100m water depth Roncador Field Development & P-52 Platform 1,800m water depth

1977 2007

P-58/P-62 Brazilian FPSOs award Acquisition of Angra Porto logistic base

2009

1st IPB2 in Brazil 1st Brazilian PLSV: Skandi Vitória

2010

Flexibras: 1st Flexible plant

1986 2001

Acquisition of UTC Engineering

1995

1st LTC1 with Petrobras: Sunrise 2nd Brazilian PLSV: Skandi Niteroi

~20 people ~3,700 people ~2,000 people

8

1 Long Term Charter 2 Integrated Production Bundle

Flexible pipe frame agreement with Petrobras

2012

As of June 30, 2013

Technip in Brazil

• 36 years of unmatched experience

Investors Group Meeting – Innovation & Technology Center

9

Global Business with Unique Multi-Local Footprint…

Kuala Lumpur Vitória Dande Lobito Port Harcourt Evanton Newcastle Pori Le Trait 5 Spoolbases 4 Flexible pipeline plants 4 Umbilical plants 1 Construction yard Tanjung Langsat Orkanger 4 Logistic bases Angra Porto Macaé Batam Mobile Carlyss Açu (under construction) Flexible-Lay & Construction Rigid Reel-Lay & J-Lay Rigid S-Lay and Heavy Lift Diving & Multi-Support Vessels

• 4,800 people
• Founded in 1978

North Sea

• 3,900 people
• Founded in 1971

North America

• 4,300 people
• Founded in 1977

Latin America

• 2,500 people
• Founded in 1984

Middle East

• 750 people
• Founded in 1995

Africa

• 8,900 people
• Founded in 1982

Asia Pacific

• 8,900 people
• Founded in 1958

Europe

x15 x4 x4 x13

Houston

…Supporting Early Involvement in Projects

10

Aberdeen Paris Mumbai Kuala Lumpur Perth Trinidad Rome London Abu Dhabi Beijing Genesis Regional Headquarters / Operating centers Oslo Singapore Houston Claremont Cambridge

Milton Keynes Zoetermeer

Stavanger

Tunis

Rio de Janeiro Process Technologies Regional Headquarters / Operating centers Genesis & Process Technologies Regional Headquarters / Operating centers Brisbane

Investors Group Meeting – Innovation & Technology Center

Vertical integration

11

Our Strategic Framework

Well diversified, profitable backlog Key differentiating assets Technology National content Execution capability

To Deliver Sustainable & Profitable Growth

Investors Group Meeting – Innovation & Technology Center

Investment in Key Subsea Assets

12

5 7, incl. 1 under

construction

Plants

2007

New long-term charters

North Sea Giant

18 36, incl. 7 under

construction

Vessels

2007

North Sea Atlantic, delivery in 2014

As of September 30, 2013

Investors Group Meeting – Innovation & Technology Center

Açuflex in Brazil

New Asset Delivery in 2013: Açu Plant

One of the most technologically advanced plants ever built

• High-end flexible manufacturing plant

dedicated to pre-salt development

• Expanding Brazil’s national content
• High-tech large diameter flexible pipes
• 3000 metres Water Depth Flexibles for

New Frontiers

• Initial start-up at end of 2013
• Plant construction & machinery delivery
• n-going and on time
• >150 employees gaining experience at

Vitória Açu plant in Brazil

• High-end flexible manufacturing plant

dedicated to pre-salt development

• High-tech large diameter flexible pipes
• 3,000 meters water depth for new frontiers
• Expanding Brazil’s national content
• Initial start-up at end of 2013
• Plant construction & machinery delivery
• n-going and on time
• >150 employees gaining experience at

Vitória

Investors Group Meeting – Innovation & Technology Center 13

14

Versatile Fleet to Support Worldwide Operations

1 As of June 30, 2013 2 Part of 7 vessels under construction

J-Lay Rigid Reel Lay

4 units1

Flexible Lay & Construction

15 units1

S-Lay Heavy Lift

4 units1

Diving Multi Support Vessel

13 units1

4 New PLSVs2 Deep Blue Deep Energy Apache II Chickasaw G1201 G1200 Hercules Iroquois Skandi Arctic Skandi Achiever Global Orion Alliance 2 x 550t PLSVs2 Skandi Niteroi & Vitoria Deep Orient

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
• f 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 m2) for
• perations in remote locations

Ideal for subsea construction and long distance flexible pipelay projects in remote locations

Deep Orient (2)

(1) ROV: Remotely operated vehicle (2) Length: 135,65 meters, Speed: 13 knots, Accomodation: 120 people Investors Group Meeting – Innovation & Technology Center

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
• perations 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

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

Deep Energy (2)

Investors Group Meeting – Innovation & Technology Center 16

17

Investing in Key Differentiating Assets: Long Term Charter Flexible Pipe Lay Vessels

(1) laying capacities

)

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)

Investors Group Meeting – Innovation & Technology Center

Vertical integration

18

Our Strategic Framework

Well diversified, profitable backlog Key differentiating assets Technology National content Execution capability

To Deliver Sustainable & Profitable Growth

Investors Group Meeting – Innovation & Technology Center

Solid Fundamentals for Oil & Gas Industry

20 40 60 80 100 120 1990 1995 2000 2005 2010 2015 2020 2025 2030 2035

2015 - 2035 Demand: +13 mb/d Depletion rate 2010 - 2035: ~6%*

Total production:

NGLs Unconventional Biofuel Processing Gains Yet to be Developed Yet to be Found

Estimated Oil Demand

*IEA WEO 2011 - 2012: Depletion rate calculated on average. Depletion is the annual rate at which the remaining recoverable resources of a field or region are being produced.

2015 - 2035 production

• 37 mb/d on current

produced crude oil reserves +15.5 mb/d of other

• il-based resources

+34 mb/d of Crude Oil to be developed/found +2.5 mb/d +16 mb/d +18 mb/d +1 mb/d +4 mb/d +8 mb/d

• 37 mb/d

million barrels per day (mb/d)

Crude Oil

Oil Demand versus Production

19

20 20

Business Environment

• Emerging deeper water

prospects

• GDP growth drives refining,

petrochemicals and fertilizer investments

• New Australian gas projects

continue, onshore developments less certain

• Momentum building in

West Africa subsea

• New discoveries to drive

future onshore & offshore developments Africa

• Upswing in US Gulf of Mexico
• US shale gas driving downstream

investments and LNG FEEDs

• Upgrades & brownfield prospects

North America

• High level of subsea awards continues
• Larger & more complex projects
• Increase in platform activity

North Sea

• Sustained volume of activity
• Good opportunities offshore,

subsea & downstream Middle East Asia Pacific

• Growing visibility in Brazil with

post-salt & pre-salt developments

• Technology choices & necessary

assets Latin America

Investors Group Meeting – Innovation & Technology Center

Backlog Analysis

(1) Includes offshore platforms and subsea projects

Backlog by Geography

Asia Pacific Middle East Europe / Russia Central Asia Africa Americas

Backlog by Market Split

Petrochems Others Refining / Heavy Oil Gas / LNG / FLNG Shallow Water(1) Deepwater(1) >1,000 meters

21

Backlog as of: December 2006: €10.3 billion December 2012: €14.3 billion June 2013: €15.2 billion

9% 30% 27% 12% 21% 20% 18% 29% 28% 48% 11% 8% 13% 9% 17% Dec 2006 Dec 2012 June 2013 23% 18% 30% 11% 42% 37% 37% 12% 9% 12% 14% 11% 16% 12% 10% 1% 2% 3% Dec 2006 Dec 2012 June 2013

Vertical integration

22

Our Strategic Framework

Well diversified, profitable backlog Key differentiating assets Technology National content Execution capability

To Deliver Sustainable & Profitable Growth

Investors Group Meeting – Innovation & Technology Center

*Excluding Tax Credit

Continuously Investing in Technology…

Subsea R&D: 370 people R&D investments

€ million* Headcount end 2012

10 20 30 40 50 60 70 80 90 100 2008 2009 2010 2011 2012 2013

Offshore / Onshore R&D Costs Subsea Gross R&D Costs

23

Others 3% Flexible 60% Hybrid Technologies 6% AIM 8% Umbilical 6% Rigid 17%

Investors Group Meeting – Innovation & Technology Center

… to Achieve our Ambition

Imagine the future… Create a difference… Deliver Client success!

Think Technology, Think Technip

2020

24 Investors Group Meeting – Innovation & Technology Center

Rueil Innovation & Technology Center (ITC)

25 Investors Group Meeting – Innovation & Technology Center

Feed Innovation Pipeline

ITC: Central hub for developing Subsea Technology

26

Cross-fertilize between technologies Foster Open Innovation Develop competences & attract talents from all over the world Provide a structure to expand / access additional resources

Investors Group Meeting – Innovation & Technology Center

Innovative SME’s Strategic Suppliers

A Subsea Technology Network to Serve Customers

North America Regional Technology Officers Asia Pacific North Sea Canada Brazil Europe, India Africa OED UK DUCO UK Seal France PED France RDD Brazil R&D Centers

ITC Rueil

IFP EN CEA Tech Universities R&D Partners

27

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

28

Cost Quality Reliability

Umbilicals Reeled Pipe Predictive Monitoring Flexible Pipe

Prioritized R&D Programs

Innovative Installation Hybrid Riser Systems Smart Subsea Architecture S-Lay

29 Investors Group Meeting – Innovation & Technology Center

• 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

Electrical Pipe In Pipe

Actively keep the produced fluid warm

30 Investors Group Meeting – Innovation & Technology Center

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

New Developments in Flexible Pipe Technology

Pressure sheath Anti H2S sheath Steel Layers

Anti H2S Layer Flexible Pipe Carbon Fiber Armor Riser Pre-salt Large Diameter Pipe High Pressure / High Temp

32 Investors Group Meeting – Innovation & Technology Center

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

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

Subsea Assets Monitoring and Smart Pipes

Risers, Pipelines & Umbilicals Floaters, Buoys & Mooring Systems Subsea Production Surveillance

35 Investors Group Meeting – Innovation & Technology Center

Optimizing Subsea Field Architecture

Integrating our subsea proprietary technologies and offshore platform knowhow with third party processing equipment to provide innovative development solutions

South Wells North Wells

Umbilicals (Power & control) Electrically Trace Heated Pipe-in-pipe In-line Monitoring Technologies

Technip proprietary technologies Third party equipment

Subsea Equipment (Separator & pump) Integrated Production Bundle

36 Investors Group Meeting – Innovation & Technology Center

• 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

Think Technology, Think Technip

37 Investors Group Meeting – Innovation & Technology Center

38

Technip’s Share Information

ISIN: FR0000131708

Bloomberg: TEC FP Reuters: TECF.PA SEDOL: 4874160

OTC ADR ISIN: US8785462099

OTCQX: TKPPY

Convertible Bonds:

OCEANE 2010 ISIN: FR0010962704 OCEANE 2011 ISIN: FR0011163864

Private Placement Notes: ISIN: FR0010828095

Investors Group Meeting – Innovation & Technology Center

39

Bloomberg ticker: TKPPY CUSIP: 878546209 OTC ADR ISIN: US8785462099 Depositary bank: Deutsche Bank Trust Company Americas Depositary bank contacts: ADR broker helpline: +1 212 250 9100 (New York) +44 207 547 6500 (London) e-mail: adr@db.com ADR website: www.adr.db.com Depositary bank’s local custodian: Deutsche Bank Amsterdam Technip has a sponsored Level 1 ADR

Investors Group Meeting – Innovation & Technology Center