Second Quarter 2011 July 28, 2011 Results Second Quarter 2011 - - PDF document

Second Quarter 2011 Results 1

Second Quarter 2011 Results

July 28, 2011

Second Quarter 2011 Results 2

Contents

1. Second Quarter 2011 Operational Highlights 2. Second Quarter 2011 Financial Highlights 3. Strategy and Outlook 4. Annex

Second Quarter 2011 Results 3

• 1. Second Quarter 2011

Operational Highlights

Second Quarter 2011 Results 4

Second Quarter Subsea Operational Highlights

Offshore operations completed

Block 31 (Angola) Pazflor (Angola)

Work in progress

Nord Stream pipeline (Baltic Sea) West Delta Deep Marine Phase 8A (Egypt) Hibernia (Canada) Goliat (Barents Sea)

Asset activity

Vessel utilization rate: 80% (vs. 70% in 2Q10) Ramp-up continued on Asiaflex (Malaysia)

Flexible Pipe on Deep Constructor

Second Quarter 2011 Results 5

Projects handed over

P-56 platform (Brazil)

Commissioning & start up in progress

Block 1 Gas Development (Turkmenistan) Start up progressed on Neste Oil biodiesel plant (The Netherlands)

Work in progress

Jubail Refinery (Saudi Arabia) Asab 3 (UAE) PMP (Qatar) Prelude FLNG (Australia)

Second Quarter Onshore/Offshore Operational Highlights

Asab 3, UAE Jubail Refinery, Saudi Arabia

Second Quarter 2011 Results 6

• 2. Second Quarter 2011 Financial

Highlights

Second Quarter 2011 Results 7

Order Intake & Backlog Highlights

Subsea order intake

Vigdis NE (PiP(1), Statoil, Norway) Hibernia South (EPIC, HMDC(2), Canada) Sunrise 2000 long-term charter (Petrobras, Brazil) COGA installation (Total, Gabon)

Onshore/Offshore order intake

Prelude FLNG(3) (Shell, Australia) Dahej petrochemical complex (Opal, India) Frame agreements

Chemicals & petrochemicals (BASF, Worldwide) Spar development (BP E&P, GoM) Order intake Backlog Order intake Backlog

(1) PiP: Pipe-in-Pipe (2) HMDC: Hibernia Management and Development Company (3) 1st contribution

€ million (not audited)

773 736 1,018 2Q10 1Q11 2Q11 3,057 3,299 3,630 2Q10 1Q11 2Q11 749 557 1,073 2Q10 1Q11 2Q11 5,206 5,782 5,783 2Q10 1Q11 2Q11

Second Quarter 2011 Results 8

Segment Financial Performance

(4)%

Subsea Onshore/Offshore

+26% +35% +52bp (4)% +8bp € million (not audited)

Revenue Operating Income(1) Revenue Operating Income(1)

(1) from recurring activities

16.9% 17.0%

2Q10 2Q11

116 112

2Q10 2Q11

7.1% 7.6%

2Q10 2Q11

688 660

2Q10 2Q11

57 76

2Q10 2Q11

797 1,004

2Q10 2Q11

Second Quarter 2011 Results 9

Group Financial Highlights

(1) calculated as operating income from recurring activities before depreciation and amortization (2) from recurring activities

29.7% effective tax rate

€ million (not audited)

+12% year-on-year Mark to market effects +17.1% year-on-year +9.4% year-on-year

2Q 10 2Q 11

Revenue 1,484.5 1,663.9 EBITDA

(1)

195.9 212.6 EBITDA margin 13.2% 12.8% Operating Income

(2)

160.5 175.6 Operating Margin (2) 10.8% 10.6% Non-Current Operating Result 2.0

• Financial Result

(8.1) 11.3 Share of Income / (Loss) of Equity Affiliates (1.0)

• Income / (Loss) before Tax

153.4 186.9 Income Tax Expense (48.2) (55.6) Non-Controlling Interests 0.9 1.2 Net Income / (Loss) 106.1 132.5 Diluted Earnings per Share 0.98 1.15

Second Quarter 2011 Results 10 10

Cash Flow and Balance Sheet

€ million (not audited)

Robust Net Cash Position

2008 2009 2010 2Q 2011

Net Construction Contracts Net Cash Excluding Construction Contracts

1,645 1,784 1,332 1,110

3 months Net Cash as of March 31, 2011 1,300.4 Cash Generated from / (Used in) Operations 194.7 Change in Working Capital Requirements (123.3) Capex (64.2) Share Divestments / Acquisitions, Dividend Payment and Other (197.5) Net Cash as of June 30, 2011 1,110.1

Second Quarter 2011 Results 11

• 3. Strategy and Outlook

Second Quarter 2011 Results 12

Activity in the Middle East

1 2 3 2 1 3

Brownfield Onshore Revamp of existing gathering units Construction ramp up with Eletech JV Brownfield Onshore Pre-treatment for LNG trains Early works completed EPC Onshore Grass root refinery Construction ramp up

Projects in construction phase

Jubail Refinery (KSA) Asab 3 (UAE) PMP (Qatar) Brownfield Offshore Expansion of oil processing facilities EPC in progress FEED Brownfield Offshore Gas Production Enhancement FEED in Progress Brownfield Offshore Gas Production Enhancement EPC Awarded in July 2011

Projects won recently

KJO (ex Neutral Zone) Upper Zakum 750+ (UAE) Satah Field Dvpt. (UAE) 2 3 1 2 1 3

Second Quarter 2011 Results 13

… Petronas FEED Prelude Progressive EPC

A Decade of Building Know-How in FLNG

2001 … 2007 2008 2009 2010 2011 2012 onwards…

FLNG Development with Shell under 15 year frame agreement FLNG Development with Petrobras FLNG Development with Petronas … Prelude FEED Generic FEED 1 2 3 Field Development Planning Internal Conceptual Studies Project Execution for Clients Petrobras FEED

Second Quarter 2011 Results 14

Growing Subsea Backlog around Technology

Pipe-in-Pipe Smoothbore Integrated Production Bundle (IPB) Ultra Deep Water: 3,000m water depth flexible pipe Steel Tube Umbilical

Backlog above previous peak

1,860 2,688 2,719 3,477 3,496 3,053 3,111 3,630

500 1,000 1,500 2,000 2,500 3,000 3,500 4,000

2004 2005 2006 2007 2008 2009 2010 2Q11

€ million (not audited)

Second Quarter 2011 Results 15

23% 26% 14% 29% 5% 3%

Growing Backlog Towards Gas

Subsea Offshore Onshore 2008 2009 2007 37% 6% 57% 49% 6% 45% 38% 6% 54% 9,390 7,208 8,018 34% 12% 9,228 2010 56% 2Q 2011 9,413 46% 16% 39%

Backlog across segments Backlog market split as of June 30, 2011

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

€9,413 million

€ million (not audited)

Second Quarter 2011 Results 16

Business Environment

Political uncertainty in North Africa pushing back awards Continued tendering across the Gulf of Guinea Strong momentum in gas- related projects Investment in refining, petrochemicals and fertilizers Promising market for flexible pipe & umbilical solutions Active flexible pipes tendering for both pre-salt and conventional fields Continuous focus on logistics & local content Expanding onshore opportunities PLSV tender ongoing

Brazil Africa

Steady momentum Better visibility on projects Spar prospects

Gulf of Mexico

Activity in Canadian oil sands Some opportunities in US

• nshore

North America

Tendering turning to awards High level of activity

North Sea

Onshore very slow Increasing focus on renewable energies

Europe

Downstream strategic investments continue across the region Growing brownfield activities

Middle East Asia Pacific

Several onshore/offshore projects moving forward gradually

Latin America

Second Quarter 2011 Results 17

Backlog Visibility

(1) (1) Backlog Estimated Scheduling as of June 30, 2011

Subsea Offshore Onshore Group

2011 (6 months) 1,313.3 413.8 1,529.9 3,257.0 2012 1,643.7 629.8 2,109.3 4,382.8 2013+ 673.0 439.7 660.2 1,772.9 Total 3,630.0 1,483.3 4,299.4 9,412.7

€ million (not audited)

Second Quarter 2011 Results 18 18

2011 Full Year Outlook

(1) Improved

Group revenue around €6,500 - 6,700 million: unchanged Subsea revenue around €2,600 - 2,700 million: unchanged Subsea operating margin

(2) between 16.5% and 17.0%:

formerly above 15% Onshore/Offshore combined operating margin

(2) between 6.5% and

7.0%: formerly between 6.0% and 6.5%

(1) at current exchange rates (2) from recurring activities

Second Quarter 2011 Results 19

Technip’s Share information

ISIN: FR0000131708

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

OTC ADR ISIN: US8785462099

ADR: TKPPK

Second Quarter 2011 Results 20

Bloomberg ticker: TKPPY CUSIP: 878546209 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

Second Quarter 2011 Results 21

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

• ur actual results, performance or achievements to differ materially from the anticipated results, performance or achievements expressed
• r 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

Second Quarter 2011 Results 22

• 4. Annex

Second Quarter 2011 Results 23

Second Quarter 2011

Second Quarter 2011 Results 24

Group Financial Highlight

(1) calculated as operating income from recurring activities before depreciation and amortization (2) from recurring activities

1H 2010 1H 2011

Revenue 2,802.9 3,100.1 EBITDA (1) 370.4 391.6 EBITDA margin 13.2% 12.6% Operating Income (2) 299.7 320.4 Operating Margin (2) 10.7% 10.3% Non-Current Operating Result 2.0

• Financial Result

(11.3) 9.7 Share of Income / (Loss) of Equity Affiliates

• Income / (Loss) before Tax

290.4 330.1 Income Tax Expense (90.0) (95.3) Non-Controlling Interests 1.6 2.0 Net Income / (Loss) 202.0 236.8 Diluted Earnings per Share 1.87 2.06

€ million (not audited)

Second Quarter 2011 Results 25

Group Balance Sheet

• Dec. 31,

2010

• Jun. 30,

2011 Fixed Assets 4,146.0 4,253.8 Construction Contracts - Amounts in Assets 378.6 593.8 Other Assets 2,591.7 2,145.5 Cash & Cash Equivalents 3,105.7 2,289.9 Total Assets 10,222.0 9,283.0 Shareholders’ Equity 3,202.1 3,366.2 Construction Contracts - Amounts in Liabilities 694.9 654.7 Financial Debt 1,773.4 1,179.8 Other Liabilities 4,551.6 4,082.3 Total Shareholders’ Equity & Liabilities 10,222.0 9,283.0

€ million (not audited)

Second Quarter 2011 Results 26

24% 17% 17% 13% 29% Europe / Russia Central Asia Africa Asia Pacific Americas Middle East

Technip’s Backlog by Geography and Award Date

2011 2010 2009 <2008 2008 €9,413 million €9,413 million

Backlog by award date By geography

Second Quarter 2011 Results 27

Onshore and Offshore 2Q 2011 Figures

+27%

Onshore Offshore

+24% +84% +239bp +26% (5)bp € million (not audited)

Revenue Operating Income(1) Operating Income(1) Revenue

(1) from recurring activities

7.8% 7.7% 2Q10 2Q11 48 60 2Q10 2Q11 611 775 2Q10 2Q11 186 229

2Q10 2Q11

9 17 2Q10 2Q11 4.9% 7.2% 2Q10 2Q11

Second Quarter 2011 Results 28

Technip Today

Second Quarter 2011 Results 29

Bringing Innovative Solutions to Clients in 3 Segments

Strong reputation with customers & business partners Project execution expertise High added-value process know-how

Onshore Subsea

Worldwide leadership Unique vertical integration Design & Project Management Manufacturing & Spooling Installation R&D First class assets and technologies Manufacturing plants High performing vessels Advanced rigid & flexible pipes

Offshore

Innovative engineering capabilities Proprietary platform design Proven track record in engineering & construction

Second Quarter 2011 Results 30

Two Complementary Business Models Driving Financial Structure and Performance

(1) from recurring activities

FY 09

533 457

FY 10

18.6%

FY 09 FY 10

16.7%

FY 09

191 207

FY 10 FY 09 FY 10

Negative working capital

5.3% 6.2%

Subsea Offshore Onshore

Operating Income(1) Operating Margin(1) Combined Operating Income(1) Combined Operating Margin(1)

Capital intensive: fleet and manufacturing units Vertical integration from engineering to manufacturing & construction Negative capital employed: low fixed assets High degree of outsourcing & sub- contracting

€ million

Second Quarter 2011 Results 31

Aberdeen Paris

• St. John’s

Luanda Rio de Janeiro

Houston

Mumbai Kuala Lumpur Perth Lagos Vitória Los Angeles Caracas Dande Lobito Port Harcourt Barcelona Lyon

Rome

Athens The Hague Düsseldorf

• St. Petersburg

Evanton London Newcastle

Abu Dhabi

Doha Chennai Bangkok Singapore Jakarta Balikpapan Shanghai Pori Le Trait Bogota New Delhi

Regional Headquarters / Operating centers

Spoolbases Manufacturing plants (flexible pipelines) Manufacturing plants (umbilicals) Construction yard Tanjung Langsat Calgary Monterrey Oslo Orkanger Stavanger Services base Baku Angra Porto

Seven Empowered Regions

Technip’s Worldwide Presence

Accra

Second Quarter 2011 Results 32

National Oil Companies International Oil Companies

Large Diversified & Balanced Customer Base

Second Quarter 2011 Results 33

Manufacturing & Spooling 3 Installation 4 Design & Project Management 2

Assets on all continents Flexible plants:

Brazil, France, Malaysia

Rigid spoolbases:

Angola, Norway, UK, USA

Logistic bases:

Brazil, France, Malaysia

Umbilical plants:

Angola, Malaysia, UK, USA

State-of-the-art fleet designed to:

Install pipes Heavy construction Diving support

Close to production sites Proprietary technology Dedicated engineering teams around the world Strategic locations

Aberdeen Houston Kuala Lumpur Oslo Paris Perth Rio de Janeiro

World-class R&D facilities

Aberdeen (UK) Le Trait (France) Newcastle (UK) Rio & Vitoria (Brazil)

Seamless Execution

Subsea: a Unique Vertically Integrated Business Model

R&D 1

Second Quarter 2011 Results 34

High Performing Fleet

Venturer Seamec 3 Wellservicer Alliance Skandi Achiever Seamec 2 Seamec 1 Orelia Seamec Princess Skandi Arctic

Diving support vessels (DSV) Rigid and flexible pipelay vessels

Sunrise 2000 Deep Blue Apache II Skandi Vitoria Deep Energy

Subsea construction vessels (flexlay capability)

Deep Constructor Deep Pioneer Newbuild vessel for Asian Market

* Vessels under construction

Skandi Niteroi

6 units 3 units 10 units

Second Quarter 2011 Results 35

Technip’s operating centers Flexible & umbilical manufacturing plant MHB’s yard

Asia Pacific: Unique Assets for High Potential Market

Perth Bangkok Shanghai Singapore Jakarta Balikpapan

Kuala Lumpur Newbuild vessel for Asian Market

Tanjung Langsat

1st and only Asian flexible/umbilical manufacturing plant Offshore logistic base Dedicated local installation capacity

Asiaflex

~3,900 people Founded in 1982

Technip in Asia Pacific

Major fabrication yard in South East Asia Centrally located Strong platform fabrication track record Support from MISC / PETRONAS Collaboration agreement to provide EPCI capability and technology to PETRONAS

Investment in MHB

Second Quarter 2011 Results 36

Aberdeen

• St. John’s

Evanton London Newcastle Pori Oslo Orkanger Stavanger Haugesund

North Sea Canada: Leading Technologies for Harsh Environment

Regional Headquarters /

Operating centers Spoolbases Thermoplastic & steel tube umbilical plant Construction yard

Subsea/Onshore/Offshore Pre-FEED, FEED and detailed design Umbilical manufacture and installation Subsea pipelay and construction Inspection, Repair and Maintenance (IRM) Offshore wind Spar

Expertise ~2,500 employees People Vessels Pipelay Diving Support

Wellservicer Skandi Arctic Apache II Orelia Alliance

Electrically Trace Heated Pipe-in-Pipe (ETH-PIP): Islay Pipe-in-Pipe (PIP): East Rochelle Smoothbore: Gjoa Steel Tube Umbilical: Hibernia South

Technology

Second Quarter 2011 Results 37 Operating Center (Rio) Flexible plant (Vitoria) * Integrated Production Bundle 1) under construction Logistic Base & Flexible plant under construction (Angra)

1)

Brazil: Long-Standing Local Presence

1977: 20 Engineers

• Garoupa field development
• Platform design
• 1st flexible pipe installed in Brazil
• 100 meters water depth

1985: 1st flexible plant in Vitoria 2007: over 2,000 employees

• Roncador field development
• P-52 Platform
• Subsea works
• 1,800 meters water depth

2009: Angra Porto logistic base 2010: 1st Brazilian flagged flexlay vessel 2011:

• Initial plan for new high-end flexible plant
• 2nd Brazilian flagged flexlay vessel to be

delivered

Vessels

• Skandi Vitoria
• Sunrise 2000
• Normand Progress
• Skandi Niteroi 1)

Flexible pipe

• #1 local supplier
• 1st IPB* in Brazil (PapaTerra)
• Flexible pipe for pre-salt (Tupi Pilot)

Rigid pipe

• 1st Free Standing Hybrid Riser (PDET)
• 1st Reeled Pipe-in-Pipe (Canapu)
• Tupi pre-salt 216km export line

Offshore

• Offshore platforms P51 / P52 &

P56 / P58 / P62

• Brazilian FLNG Feed

Resources

• Operating & Engineering center
• Subsea R&D complex

Technip in Brazil: ~3,000 employees

Operations Technip in Brazil

First Quarter 2011 Results 38

38 38

Risers Export lines

Buoyancy can – FSHR(2), Technip's hybrid system

(1) Integrated Production Bundle (2) Free Standing Hybrid Riser

Flexible riser & jumper Rigid riser/flowline/export IPB flexible pipe Flexible flowline

IPB(1)

Infield flowlines Jumpers

Field Developments in Brazil

Second Quarter 2011 Results 39

The first offshore field in Ghana Engineering, Fabrication and

Installation projects involving Technip’s centers in Paris, Houston and Angola

Fabrication of the flexible pipes

in Le Trait, France

Mobilization of Deep Blue and

Deep Pioneer for offshore campaign

Jubilee, an Example of a Seamless Project Execution

Houston Jubilee Paris

Fabrication of the flexible pipes Coordinated Engineering teams from the Subsea Division

Multi vessel installation (including Deep Blue & Deep Pioneer)

Le Trait

Second Quarter 2011 Results 40

Ethylene Increased Efficiency Cryogenic Rigid Pipe-in-Pipe Flow-Assurance Ultra Deepwater

State-of-the-Art Technology in all Business Segments

Unrivalled high technological assets Numerous proprietary technologies and partnerships with licensors

LNG unloading/

long distance applications

Heated and monitored Flexible Pipes 3,000m (7”- 11”) Flexible Pipes Heated Rigid Pipe-in-Pipe

Design,

manufacture & qualify flexible pipes for 3,000m water depth

Integration of gas

lift tubes, electrical cables or optic fibers in the production riser (Schlumberger cooperation)

New Electrical

Trace Heating technology qualified by major clients

Increasing

ethylene and refining efficiency

Subsea Offshore Onshore

Second Quarter 2011 Results 41

Reeled Heated Pipe-in-Pipe

Flow assurance: heated pipe-in-pipe Fibre optic temperature monitoring Fast installation: reeled pipe-in-pipe Built-in directly onshore, at our spoolbases Higher insulation efficiency: lower power requirements 6km tie-back in 122 meters of water Major challenge: hydrates formation EPCI project, valued in excess of £60 million Offshore deployment in mid-2011 with Technip’s fleet

(1) ETH: Electrical Trace Heating

Technip’s ETH(1) technology Islay Project, UK North Sea

Second Quarter 2011 Results 42

Riser system Buoyancy can Top side jumpers Very deep water umbilical (3,000m) Very deep water jumpers (3,000m)

World Class Engineering & Technology to Develop Marine Well Containment System

Fast track project

• Strong requirements

Very deep water (10,000 feet, 3,000 meters) High pressure (10,000 psi, 690 bar) Holding capacity (100,000 barrels per day)

FLNG

(1), an Innovative Solution for our Customers

43

• Shell FLNG
• 15 year master agreement
• LNG capacity: 3.6 mtpa
• Prelude FLNG in Australia in

progress 488 x 74 meters 600,000 ton displacement with tanks full

• Petrobras FLNG
• LNG capacity: 2.7 mtpa
• Pre-salt basin, Brazil
• FEED delivered 4Q 2010
• Petronas FLNG
• LNG capacity: 1.0 mtpa
• Offshore Malaysia
• FEED in progress
• Floating LNG moving from concept to reality
• Industry experience in large FPSO’s
• Open sea transfer of LNG made possible
• Processing challenges on moving platforms solved
• Industrial momentum with many FLNG projects at FEED stage and Prelude Final

Investment Decision

(1) Floating Liquefied Natural Gas

Second Quarter 2011 Results 44

Shareholding Structure, May 2011

Listed on NYSE Euronext Paris

Source: Thomson Reuters, Shareholder analysis, May 2011

Treasury Shares

2.4%

Individual Shareholders

6.0%

Others

4.8%

Employees

2.1%

IFP Energies Nouvelles

2.6%

French Institutional Investors

17.6%

North America

27.9%

Rest of World

18.8%

UK & Ireland

12.5%

Institutional Investors 82.1% FSI 5.4%