TechnipFMC Second Quarter 2021 Earnings Call Presentation


LONDON & PARIS & HOUSTON – (BUSINESS WIRE) – 21 July 2021
TechnipFMC plc (“TechnipFMC”) (NYSE: FTI) (Paris: FTI) (ISIN: GB00BDSFG982)
announces the availability of its Earnings Call Presentation in connection with its
teleconference on Thursday, 22 July 2021 to discuss the second quarter 2021 financial
results and updated outlook for 2021.

A copy of the Earnings Call Presentation can also be accessed on TechnipFMC’s website
(www.technipfmc.com).



About TechnipFMC
TechnipFMC is a leading technology provider to the traditional and new energy industries,
delivering fully integrated projects, products, and services.
With our proprietary technologies and comprehensive solutions, we are transforming our
clients’ project economics, helping them unlock new possibilities to develop energy
resources while reducing carbon intensity and supporting their energy transition
ambitions.

Organized in two business segments — Subsea and Surface Technologies — we will
continue to advance the industry with our pioneering integrated ecosystems (such as
iEPCI™, iFEED™ and iComplete™), technology leadership and digital innovation.

Each of our approximately 20,000 employees is driven by a commitment to our clients’
success, and a culture of strong execution, purposeful innovation, and challenging
industry conventions.
TechnipFMC uses its website as a channel of distribution of material company
information. To learn more about how we are driving change in the industry, go to
www.TechnipFMC.com and follow us on Twitter @TechnipFMC.
Contacts



Investor relations Media relations
Matt Seinsheimer Nicola Cameron
Vice President, Investor Relations Vice President, Corporate Communications
Tel: +1 281 260 3665 Tel: +44 1383 742297
Email: Matt Seinsheimer Email: Nicola Cameron

James Davis Catie Tuley
Senior Manager, Investor Relations Director, Public Relations
Tel: +1 281 260 3665 Tel: +1 281 591 5405
Email: James Davis Email: Catie Tuley
Q2 2021 Earnings Call
Presentation


July 22, 2021
Disclaimer
Forward-looking statements
This communication contains “forward-looking statements” as defined in Section 27A of the United States Securities Act of 1933, as amended, and Section 21E of the United
States Securities Exchange Act of 1934, as amended. Forward-looking statement 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 words such as “guidance,” “confident,” “believe,” “expect,” “anticipate,” “plan,” “intend,”
“foresee,” “should,” “would,” “could,” “may,” “will,” “likely,” “predicated,” “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 these for ward-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 fr om our historical experience and our present
expectations or projections, including unpredictable trends in the demand for and price of crude oil and natural gas; competi tion and unanticipated changes relating to competitive
factors in our industry, including ongoing industry consolidation; the COVID-19 pandemic and its impact on the demand for our products and services; our inability to develop,
implement and protect new technologies and services; the cumulative loss of major contracts, customers or alliances; disruptions in the political, regulatory, economic and social
conditions of the countries in which we conduct business; the refusal of DTC and Euroclear to act as depository and clearing agencies for our shares; the United Kingdom’s
withdrawal from the European Union; the impact of our existing and future indebtedness and the restrictions on our operations by terms of the agreements governing our existing
indebtedness; the risks caused by our acquisition and divestiture activities; the risks caused by fixed-price contracts; any delays and cost overruns of new capital asset
construction projects for vessels and manufacturing facilities; our failure to deliver our backlog; our reliance on subcontra ctors, suppliers and our joint venture partners; a failure or
breach of our IT infrastructure or that of our subcontractors, suppliers or joint venture partners, including as a result of cyber-attacks; the risks of pirates endangering our maritime
employees and assets; potential liabilities inherent in the industries in which we operate or have operated; our failure to c omply with numerous laws and regulations, including
those related to environmental protection, health and safety, labor and employment, import/export controls, currency exchange, bribery and corruption, taxation, privacy, data
protection and data security; the additional restrictions on dividend payouts or share repurchases as an English public limit ed company; uninsured claims and litigation against us,
including intellectual property litigation; tax laws, treaties and regulations and any unfavorable findings by relevant tax a uthorities; the uncertainties related to the anticipated
benefits or our future liabilities in connection with the spin-off of Technip Energies (the “Spin-off”); any negative changes in Technip Energies’ results of operations, cash flows and
financial position, which impact the value of our remaining investment therein; potential departure of our key managers and e mployees; adverse seasonable and weather
conditions and unfavorable currency exchange rate and risk in connection with our defined benefit pension plan commitments an d other risks as discussed in Part I, Item 1A,
“Risk Factors” of our Annual Report on Form 10-K for the fiscal year ended December 31, 2020 and Part II, Item 1A, “Risk Factors” of our Quarterly Report on Form 10-Q for the
quarterly period ended June 30, 2021.

We 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.


Q2 2021 Earnings Call Presentation | 2
Q2 2021 Overview
Financial Results and Operational Highlights

Doug Pferdehirt, Chairman and Chief Executive Officer
Alf Melin, EVP and Chief Financial Officer
Q2 2021 Operational summary
Highlights



 Strong operational performance, with adjusted EBITDA margin of 11% for both operating segments
 Total Company inbound orders of $1.6 billion; confident in full-year Subsea guidance of > $4 billion
 Surface Technologies benefited from higher global completions activity, adoption of iComplete™
 Collaboration with EDP for green hydrogen production from offshore wind – BEHYOND project


Takeaways


Two new iEPCI™ clients, Subsea orders $2.8B YTD; Core competencies fully
including first integrated 50% of named awards to transferable to the
project in Brazil be executed as iEPCI™ renewable energy space

Q2 2021 Earnings Call Presentation | 4
Q2 2021 Financial results
Highlights
$1.6B
Inbound orders
 Adjusted EBITDA from continuing operations of $144 million
$7.3B
 Reiterate full-year free cash flow guidance of $120 – 220 million Backlog


 Continued balance sheet improvement; net debt reduced to $1.6 billion $144M
Adjusted EBITDA
 Updated full-year guidance reflects first half results, strong market outlook
$(126)M
Free cash flow

Segment results




Q2 2021 Earnings Call Presentation | 5
Q2 2021 Cash flow and net debt
(in $ millions)




Free cash flow: $(126)M

(30) Net Debt
(In millions, unaudited)


June 30,
2021
258
Cash and cash equivalents $ 854.9
(86)
Short-term debt and current portion of long-
855
(297.7)
term debt
(40)
Long-term debt, less current portion (2,180.2)
753

Net debt $ (1,623.0)




Cash and cash Cash flow Capital Net proceeds All other Cash and cash
equivalents at from operating expenditures from sale of equivalents at
Mar 31, 2021 activities Technip Energies Jun 30, 2021
shares


Q2 2021 Earnings Call Presentation | 6
2021 Full-year financial guidance1 *Updated July 21, 2021


Subsea Surface Technologies
 Revenue in a range of $5.2 – 5.5 billion*  Revenue in a range of $1,050 – 1,250 million
 EBITDA margin in a range of 10 – 11%  EBITDA margin in a range of 10 – 12%*
(excluding charges and credits) (excluding charges and credits)


TechnipFMC
 Corporate expense, net $105 – 115 million (includes depreciation and amortization of ~$5 million)

 Net interest expense* $135 – 140 million
 Tax provision, as reported* $85 – 95 million
 Capital expenditures approximately $250 million
 Free cash flow2 $120 – 220 million
All segment guidance assumes no further material degradation from COVID-19 related impacts.
Guidance based on continuing operations; excludes the impact of Technip Energies which is reported as discontinued operations.
1Our guidance measures EBITDA margin (excluding charges and credits), corporate expense, net, net interest expense, and free c ash flow are non-GAAP financial measures. We are unable to provide a
reconciliation to a comparable GAAP measure on a forw ard-looking basis w ithout unreasonable effort because of the unpredictability of the individual components of the most directly comparable GAAP financial
measure and the variability of items excluded from such measure. Such information may have a significant, and potentially unpredictable, impact on our future financial results.
2Free cash flow = cash flow from operations less capital expenditures


Q2 2021 Earnings Call Presentation | 7
Backlog visibility
Subsea backlog scheduling1 Surface Technologies backlog scheduling
as of June 30, 2021 as of June 30, 2021




2023+ 2021
$2.0B $2.0B

$7.0 $360
billion million


2022 2021
2021 & 2022
& 2022
$3.0B $360M
$360M




1 Backlog does not capture all revenue potential for subsea services


Q2 2021 Earnings Call Presentation | 8
Subsea opportunities in the next 24 months1

PROJECT UPDATES
Added
CNOOC
Lingshui

CHEVRON
Jansz-lo

MELLITAH
Bahr Essalam

PETROBRAS
Buzios 9

PETROBRAS
TiPT



Removed
Not applicable




Q2 2021 Earnings Call Presentation | 9
Appendix




Q2 2021 Earnings Call Presentation | 10
Glossary
Term Definition Term Definition
Bcm Billion Cubic Meters per Annum iEPCI™ Integrated Engineering, Procurement, Construction and Installation

CAGR Compound Annual Growth Rate iFEED™ Integrated Front End Engineering and Design

E&C Engineering and Construction iLOF™ Integrated Life of Field

ESG Environmental, Social and Governance LNG Liquefied Natural Gas

FID Final Investment Decision MMb/d Million Barrels per Day

FLNG Floating LNG Mtpa Million Metric Tonnes per Annum

F/X Foreign Exchange NAM North America

GHG Greenhouse Gas Emissions RCF Revolving Credit Facility

GOM Gulf of Mexico ROIC Return on Invested Capital

HP/HT High Pressure / High Temperature ROV Remotely Operated Vehicles

HSE Health, Safety and Environment ROW Rest of World




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