Investor Presentation

H1 2020 results

30 July 2020

Disclaimer

This document is strictly confidential. Any unauthorised access to, appropriation of, copying, modification, use or disclosure thereof, in whole or in part, by any means, for any purpose, infringes GTT's rights. This document is part of GTT's proprietary know-how and may contain trade secrets protected worldwide by TRIPS and EU Directives against their unlawful acquisition, use and disclosure. It is also protected by Copyright law. The production, offering or placing on the market of, the importation, export or storage of goods or services using GTT's trade secrets or know-how is subject to GTT's prior written consent. Any violation of these obligations may give rise to civil or criminal liability. © GTT, 2010-2020

2

Disclaimer

This presentation does not contain or constitute an offer of securities for sale or an invitation or inducement to invest in securities in France, the United States or any other jurisdiction.

It includes only summary information and does not purport to be comprehensive. No representation, warranty or undertaking, express or implied, is made as to, and no reliance should be placed on, the accuracy, completeness or correctness of the information or opinions contained in this presentation. None of GTT or any of its affiliates, directors, officers and employees shall bear any liability (in negligence or otherwise) for any loss arising from any use of this presentation or its contents.

The market data and certain industry forecasts included in this presentation were obtained from internal surveys, estimates, reports and studies, where appropriate, as well as external market research, including Poten & Partners, Wood Mackenzie and Clarkson Research Services Limited, publicly available information and industry publications. GTT, its affiliates, shareholders, directors, officers, advisors and employees have not independently verified the accuracy of any such market data and industry forecasts and make no representations or warranties in relation thereto. Such data and forecasts are included herein for information purposes only. Where referenced, as regards the information and data contained in this presentation provided by Clarksons Research and taken from Clarksons Research's database and other sources, Clarksons Research has advised that: (i) some information in the databases is derived from estimates or subjective judgments; (ii) the information in the databases of other maritime data collection agencies may differ from the information in Clarksons Research database; (iii) while Clarksons Research has taken reasonable care in the compilation of the statistical and graphical information and believes it to be accurate and correct, data compilation is subject to limited audit and validation procedures.

Any forward-looking statements contained herein are based on current GTT's expectations, beliefs, objectives, assumptions and projections regarding present and future business strategies and the distribution environment in which GTT operates, and any other matters that are not historical fact. Forward-looking statements are not guarantees of future performances and are subject to various risks, uncertainties and other factors, many of which are difficult to predict and generally beyond the control of GTT and its shareholders. Actual results, performance or achievements, or industry results or other events, could materially differ from those expressed in, or implied or projected by, these forward- looking statements. For a detailed description of these risks and uncertainties, please refer to the section "Risk Factors" of the Document de Référence ("Registration Document") registered by GTT with the Autorité des Marchés Financiers ("AMF") on April 27, 2020 and the half-yearly financial report released on July 29, 2020, which are available on the AMF's website at www.amf-france.org and on GTT's website at www.gtt.fr. The forward-looking statements contained in this presentation are made as at the date of this presentation, unless another time is specified in relation to them. GTT disclaims any intent or obligation to update any forward-looking statements contained in this presentation.

3

Agenda

1. Company overview & key highlights

2. Core business: Market & activity update

3. New businesses: LNG as fuel developments

4. Service activity

5. Strategic roadmap

6. Financials

7. Outlook

Appendices

4

1

Company overview & Key highlights

5

GTT at a glance

Profile

A French technology and engineering company with more than 50-year track record

Expert in liquefied gas containment systems

GTT is a public company listed on the Euronext Stock Exchange (Paris), compartment A

405 highly qualified people(1)

Activities

Designs and licenses membrane technologies for containment of liquefied gas

Core business: LNG transportation and storage New business: LNG as fuel for vessel propulsion

Provides design studies, construction assistance and innovative services

Consolidated key figures

in € million

H1 2020

Total Revenues

204

Royalties (newbuild)

198

Services

6

Net Income

116

© GTT

© Engie

(1) As at December 31, 2019- GTT SA / Excluding interns and apprentices. 456 employees at Group level.

6

H1 2020 key Highlights

Core business : sustained and diversified new orders

18 orders (12 LNGCs, 2 FSU, 1 FSRU, 3 onshore storage)

New services contracts

February 2020: services and support contract with CMA CGM group

March 2020: global services agreement between GTT NA and Excelerate Energy (USA)

July 2020: two global technical services agreements with Knutsen (Norway) and Fleet Management (Hong Kong)

New TALA

June 2020: agreement with ZVEZDA, a major shipyard in Russia

Targeted acquisitions

February 2020: acquisition of Marorka (Iceland), an expert in Smart Shipping

July 2020: acquisition of OSE Engineering, a French Company expert in Smart Algorithms

New Directors

Pierre Guiollot, director replacing Judith Hartmann

Isabelle Boccon-Gibod, independent director replacing Françoise Leroy

Interim dividend

€2.50 per share (+66% vs H1 2019)

To be paid on 3 November 2020

Notes: LNGC - Liquefied Natural Gas Carrier, VLEC - Very Large Ethane Carrier,

FSRU - Floating Storage and Regasification Unit, RV - Regasification Vessel,

FLNG - Floating Liquefied Natural Gas ,ULCS - Ultra Large Container Ships

7

H1 2020: GTT shows its ability to cover the entire LNG value chain

From liquefaction

To

Regasification

plant

Courtesy of Excelerate Energy

Ice class

Very large

Conventional

Mid-scale

Very large

Onshore

LNG carrier

FSU

LNG carrier

LNG carrier

FSRU

tanks

5 orders

2 orders

5 orders

2 orders

1 order

3 orders

8

H1 2020: strong level of orderbook

CORE BUSINESS

Order book: 135 units

H1 2020 movements in the order book

112 LNGC

1 FLNG

New orders: 18 (12 LNGC, 1 FSRU, 2 FSU, 3 onshore

6 VLEC

6 Onshore storage

storage)

Deliveries: 16 (13 LNGC, 2 FSRU, 1 FLNG)

5 FSRU

3 GBS

2 FSU

NEW BUSINESS (LNG FUEL)

Order book: 18 units

H1 2020 movements in the order book

14 ULCS

1 Container vessel

No new order

(conversion)

1 Cruise ship

Deliveries: 1 bunker ship

2 Bunker ships

Notes: LNGC - Liquefied Natural Gas Carrier, VLEC - Very Large Ethane Carrier,

FSRU - Floating Storage and Regasification Unit, RV - Regasification Vessel,

FLNG - Floating Liquefied Natural Gas ,ULCS - Ultra Large Container Ships

9

COVID-19

Health of our employees and their families

No severe case reported

The Group continues to apply recommendations to employees at head office and abroad, in line with those of the French and local authorities

Operational level

Head office: employees back to offices at St Remy, except those at risk Subsidiaries: same policy than head office, depending on local regulations

Main risks:

delays to the timetable for the construction of vessels, which may lead to a shift in the recognition of revenue from a year to another.

Some delays but no significant impact anticipated on 2020 revenues

Risks related to the impact of the epidemic on the global economy remain today difficult to assess.

LNG market is mainly based on long-term prospects and financing.

The situation has improved in the Asian countries, which represent more than 60% of worldwide imports of LNG.

Our business is operating normally, despite the particularly difficult

circumstances. We closely monitor any changes affecting the markets in which the Group operates.

10

2

Core business: Market & activity update

11

LNG demand reforecast post Covid

Mtpa

750

700

650

600

550

500

450

400

350

300

Evolution of LNG demand outlooks (Wood Mackenzie)

Q4 2019

Q2 2020

Q4 2018

Q4 2017

Q4 2016

2018

2020

2022

2024

2026

2028

2030

2032

2034

Source: Wood Mackenzie

Short term: despite Coronavirus, LNG demand is still expected to increase by 3% in

2020 (vs +6% initially forecasted),

Sustained by low spot prices that favored coal to gas switching

Long term demand trend remains sustained (CAGR of +3.9%/y between 2019 and 2035)

12

Despite Covid and slowdown in global LNG import growth, China remains very dynamic

China monthly LNG demand

Chinese LNG imports expected to grow 4% in 2020 despite Covid situation that strongly impacted China in Q1 2020.

Strong rebound seen in Q2

Current price situation favors coal to gas switching, and LNG vs piped gas

Source: Wood Mackenzie

China LNG demand by 2030

Long term growth remains strong, expected to stabilize around 5% by 2030.

Importing terminals remain over used, but situation to improve

Average utilization rate of 85% in 2019 (vs 37% for the rest of the world).

5 importing terminals under construction

+ 11 expansions planned at existing terminals

100

80

Mtpa

60

40

20

33% 46% 41%

3,2

25%

20%

15%

10%

5%

Annual growth

0

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

2025

2026

2027

2028

2029

2030

0%

Source: Wood Mackenzie, Q2 20

13

Record low LNG spot prices led to US cargoes cancellation

Coronavirus and lockdowns have pushed LNG spot prices to record low

Below $2/Mmbtu in Asia and below $1.5/Mmbtu in Europe

Depressed prices and demand led to US cargoes cancellation

30 to 50% of US production in April, May and June.

US LNG is now back in the money vs oil indexed Asian LNG

12

10

$/Mmbtu

8

6

4

2

0

Source: Argus, EIA, GTT

LNG prices in Asia

Asian oil

contracted

LNG

US LNG

delivered in

Asia

Asian spot

LNG

Oil indexed LNG: 13%*Brent+0,5/ HH indexed LNG: 1,15*HH+3,8

Why those cancellations in the US?

US contracts have a light Take or Pay clause, where cargoes can be cancelled 60 days in advance by paying only the liquefaction fee (approx $2.5/Mmbtu)

Thus, if the spread between Asian spot LNG and US LNG contracts delivered in Asia exceeds liquefaction fee, US cargoes may be cancelled and replaced by the purchase of spot cargoes

14

US LNG flexibility is valuable in a volatile world

Limited impact for most players

Limited impact for gas producers (deep US gas consuming market)

Limited impact for liquefactors (Liquefaction fee paid anyway)

However, some liquefaction players have some uncontracted volumes (approx 20% of capacity) that they sell spot, exposing them partly.

Limited impact for ship-owners with contracted vessels

For uncontracted vessels operating on the spot market, difficult situation as many vessels are now available, pushing charter rates down

Impact for LNG buyers, but smaller than if LNG was oil indexed with no flexibility

In June/July, oil indexed LNG has been more expensive than US LNG, but heavier take or pay clauses (full cargo to be paid, lifted or not) prevented their cancellations.

Current situation could reinforce US LNG for future contracts, with appreciated flexibility

Flexibility on prices

Losses capped at liquefaction fee (approx $2.5/Mmbtu) - can be seen as a financial option for offtakers. Losses to be higher for unflexible oil LNG contract

Flexibility on volumes

US cancellations have limited LNG supply and demand imbalance during Covid-19 crisis

On oil indexed LNG contracts, Force Majeure exercised by many players has always been denied by sellers.

15

LNG Supply & Demand: new capacity needed

LNG Supply & Demand balance forecast

700

600

500

240 Mtpa

Mtpa

400

300

200

100

0

2026

2033

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

2025

2027

2028

2029

2030

2031

2032

2034

2035

Supply - Operationnal

Supply - Under Construction

LNG demand

Sources: Wood Mackenzie Q2 2020

LNG demand slowdown, due to Coronavirus crisis, has postponed the supply/demand gap to 2027

New FIDs have almost all been delayed to 2021, but remain necessary to fulfill the 240 Mtpa gap by 2035.

Likely projects for 2021 FIDs: Costa Azul (Mexico), Qatar, Obskiye (Russia), Corpus Christi Stage III (US),

Mozambique LNG-4.

16

c.75-80 more LNGCs required for liquefaction projects under construction

LNGCs supply demand balance of Under Construction liquefaction plants

Expected delay

Forecasted

Contracted

Project

Location

(in months, due to Covid19,

Capacity

LNGCs requirement

Start-Up

according to WoodMackenzie)

(mtpa)

Cameron T3

US East

0

2020

4

6

Freeport Train 3

US East

0

2020

4,6

8,1

PFLNG 2

Asia Pacific

0

2020

1,4

1

Corpus Christi T3

US East

3

2021

4,5

8,6

Tangguh Phase 2

Asia Pacific

8

2022

4,5

4

Coral FLNG

East Africa

6

2023

3,4

5,5

Sabine Pass T6

US East

3

2023

4,5

10

TortueFLNG

West Africa

12

2023

2,4

4

Calcasieu Pass

US East

6

2024

8

12

Arctic LNG-2

Russia

3

2024

19,8

35

Mozambique LNG (Area 1)

East Africa

12

2025

11,2

17

LNG Canada

Canada West

6

2025

14

20

Golden Pass

US East

6

2025

15,6

25,7

NLNG T7+expansion

West Africa

12

2026

8

14

Average: 5,5 months

TOTAL

171

- Current Orderbook

87

- Available vessels in operation

7

Expected orders

77

Source: Wood Mackenzie /

GTT

Market still requires around 75-80 more LNGCs for contracted supply of LNG plants under construction Expected fleet replacement could increase that number

US LNG projects are less delayed than other projects thanks to their track record.

NB: Current orderbook excludes vessels in orderbook for currently operating projects

17

Focus on Onshore storage

GTT has received 2 orders for 3 Onshore tanks in China

2 x 220k cbm GST with Chinese licensee HQCEQ for a new regas terminal of Beijing Gas in Tianjin (North East China)

Construction already began (foundations)

1 x 29k cbm GST with CPECCCNC for peak-shaving requirements for Hebei North

GTT returns to the onshore tanks market with its GST technology, on the most dynamic country currently (China) with many new LNG import terminals and expansions expected in the coming years

This success will contribute to open other new markets for GTT

18

Carbon Footprint in tons CO2-eq

Onshore storage: GST technology for a reduced carbon footprint

10 000

30 000

Concrete

25 000

Metal

C

20 000

2 000

Insulation

15 000

10 000

0

I

Full

Containment

Membrane

5 000

0

0

Full Containment

Membrane

Full Containment

Membrane

Source: Bouygues TP, LNG17

Significant reduction of the environmental impact by using Membrane technology

Thanks to reduced content of metal

19

Core business long term estimates

GTT H1 2020 Sales

GBS

LNG Fuel1% Services

FLNG 2% 3% 1%

FSRU

7%

LNGC

86%

GTT order estimates over 2020-2029

LNGC: between 285 and 315 units(1)

VLEC: between 25 and 40 units

FSRU: between 10 and 20 units

FLNG: Up to 5 units

Onshore and GBS tanks: between 15 and 20 units

Courtesy of Shell

Courtesy of Excelerate Energy

(1) Including replacement market

20

3.2

3

New businesses: LNG as fuel developments

21

LNG as fuel: LNG is the only mature solution allowing comprehensive environmental compliance

Comparison of emissions by fuel type

Base 1

1

0,75

0,5

0,25

0

SOX

NOX *

CO2

HFO

HFO+ Scrubber

LSHFO

LNG

Source : DNV

Particulates

NOx emissions for LNG

are for XDF engines

LNG is in advance of existing and anticipated environmental regulations

No SOx, no particulates, low NOx, reduced CO2 emissions

Implementation in January 2021 of NOx reduction in North Sea and Baltic Sea will further degrade potential of oil fuels and scrubbers

22

LNG fuel keeps expanding in a very challenging shipbuilding market

Annual shipping orders (≥20k dwt) and LNG as fuel market share

5000

12%

11%

10%

4000

# vessels ordered

8%

LNG as fuel market share

3000

6%

2000

4%

1000

2%

580

0

(annualized, 290 as 30 June 20)

0%

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

Sources: GTT, Clarksons

Shipping annual orders (excl gas carriers)

% LNG fueled

Despite depressed shipping market with only 290 orders in 2020 (as at 30 June 2020) because of Coronavirus, LNG as fuel market keeps developing with 11% market share.

Shipping market is expected to recover, with Clarksons forecasting between 1,500 and 2,000 orders annually over the next 10 years.

23

Competition landscape of LNG fuel market

LNG as a marine fuel continues its penetration in shipping market

LNG fuel tanks competitive landscape

LNG tanks total capacity - cbm

11% market share in 2020

The c.30 LNG fuelled vessels ordered so far in 2020 have all been in Type C

Mainly oil/product tankers, with small/medium capacities (<3,000 cbm)

Two 7,500 cbm VLCCs and two 12,000 cbm for containerships have been ordered in 2020, marking an increase in Type C size.

20,000

Newbuild & Retrofit

Type B

Ultra & Very Large

Newbuild

Container Vessels

• Very Large Container

Cruise ships

10,000

Vessels

(expedition)

10-15 vessels

15-20 vessels

100-150k cbm

200-300k cbm

5,000

Lower sizes

possible

1,000

Higher sizes

possible

Type C

Newbuild & Retrofit

  • Ferries
  • Ro-Ro
  • Tugs
  • Small Containers
  • Small Tankers
  • Small bulkers
  • VLCC

300-400 vessels

350-450k cbm

1

2

3+

Number of market segment penetrated

Main sources: Clarksons, DNV GL

24

3.3

4

Service activity

25

Services to make LNG easy

4 new services contracts in H1 2020: GTT services platform attracts more and more ship-owners

CONSULTING

to get LNG as

ENGINEERING

fuel projects on

track

To enable

projects and

support daily

operations

TESTS

to facilitate LNG tanks maintenance

MAINTENANCE

To maintaiin the industry's track record

DIGITAL

To support the industry's digital transformation

TRAINING

to raise

awareness about LNG

LNG

OPERATIONS

To support

operators in the

first LNG operations

EMERGENCY

To avoid

escalation and

minimise

impacts

26

Acquisition of OSE Engineering

OSE Engineering is a French tech company specialised in "smart algorithms" applied to complex industrial and technical problems

Profile

Products

Services

Created in 2014

Serious scientific expertise and credentials Dynamic relationship within top academic networks (talent pool)

studiOSE: algorithms design, simulation & validation platform

bOSE: Vessel Energy Flow Simulation module

OSERoad: road transport emissions simulator for design validation and certification

Services based on data processing, modelling and simulation include: Engineering study

Algorithm design

Modelling: optimization, validation and

calibration

Product customisation and integration

27

5

Strategic roadmap

28

GTT's strategic roadmap

6. Transformation

Gas handling

Technology for a

sustainable world

technologies

Smart shipping

Offshore

2. Enhancement

Multigas

5. Enlargement

LNG as

LNG Carriers

GBS

fuel

Evolution

of NO 96

Transfer

1. Intensification

& Mark

systems

operations

3. Improvement

Advisory services

Intervention services

Training

4. Advisory and services

29

6

Financials

30

H1 2020: Order book overview (core business)

Order book in units

Order book by year of delivery (units per year)

In units

In units

(2)

(4)

16

34

Order book in value

Revenues expected from current order book (1)

In €M

In €M

(3)

194

(5)

180

  1. Royalties from core business, i.e. excluding LNG as Fuel , services activity.
  2. 2020 deliveries include 16 vessels delivered until June 30, 2020 / Delivery dates could move according to the shipyards/EPCs' building timetables.
  3. Taking into account 2020 H1 revenues from royalties (€194M), the total amount would have been €832M

(4)

2020 H1 deliveries

31

(5)

2020 H1 revenues from royalties.

H1 2020 financial performance

Summary consolidated accounts

in € M

H1 2019

H1 2020

Change

Total Revenues

122.6

203.8

66.2%

EBITDA (1)

70.9

136.6

92.7%

Margin (%)

57.8%

67.0%

Operating Income/ EBIT

68.9

133.9

94.4%

Margin (%)

56.2%

65.7%

Net Income

56.6

115.5

104.0%

Margin (%)

46.2%

56.7%

Free Cash Flow (2)

62.2

103.6

nm

Change in Working Capital

5.5

26.0

nm

(3)

Capex

3.1

7.0

125.0%

Dividend paid

66.3

64.9

-2.1%

in € M

30/06/2019

30/06/2020

Cash Position

155.6

199.0

Key highlights

Revenues: +66.2%

Newbuilds (royalties): +71%. Royalties from LNGCs fully benefit from the last two years strong flow of orders

Service revenue: -13%, mainly due to the decrease in maintenance and intervention services during the Covid crisis

EBITDA: +92.7%

Increase of external charges: +28% due to increased number of new orders

Increase of staff costs: +33%

Capex: Impact of Marorka acquisition

2020 interim dividend: €2.50 to be paid in Nov. 2020

(1) Defined as EBIT + amortisations and impairments of fixed assets

(2) Defined as EBITDA - capex - change in working capital

(3) Defined as December 31 working capital - June 30 working capital

32

H1 2020 Cost base

GTT consolidated operational costs

in € M

H1 2019

H1 2020

Change (%)

Goods purchased

-2.6

-2.8

7.5%

% sales

-2%

-1%

Subcontracted Test and

-11.4

-17.6

54.7%

Studies

Rental and Insurance

-2.4

-2.8

16.6%

Travel Expenditures

-4.4

-3.5

-20.1%

Other External Costs

-5.8

-6.9

18.0%

Total External Costs

-23.9

-30.7

28.3%

% sales

-20%

-15%

Salaries and Social

-20.8

-26.1

25.6%

Charges

Share-based payments

-0.8

-1.4

72.6%

Profit Sharing

-3.2

-5.6

71.5%

Total Staff Costs

-24.9

-33.1

33.2%

% sales

-20%

-16%

Other(1)

2.3

3.2

39.9%

% sales

2%

2%

Key highlights

External costs: +28.3%

Subcontractors +54.7%, due to the increase of orderbook

Travel expenditures: -20.1% due to the Covid crisis

Other external costs +18.0% (mainly fees from external advisors and patent filing)

Staff costs up 33.2%, mainly due to the increase in headcount and profit sharing

GTT H1 2020 costs(1) by nature

Staff costs

52%

External costs

48%

Goods purchased

& other

NS

(1) Excluding depreciations, amortisations, provisions and impairment of assets

33

7

Outlook

34

2020 Outlook confirmed

GTT revenue(1)

2020 consolidated revenue estimated in a range of €375M to €405M

EBITDA

2020 consolidated EBITDA estimated in a range of €235M to €255M

Dividend

2020 and 2021 payout of at least 80%

Payment(2)

  1. In the absence of any significant delays or cancellations in orders. Variations in order intake between periods could lead to fluctuations in revenues
  2. Subject to approval of Shareholders' meeting. GTT by-laws provide that dividends may be paid in cash or in shares based on each shareholder's preference

35

Thank you for your attention

Image courtesy of STX, Engie, Excelerate, Reliance, SCF Group, Shell, CMA CGM, Conrad

36

Masque PowerPoint - January 2020 CONFIDENTIAL

Appendix

37

A streamlined group and organisation (June 30, 2020)

GTT Group

GTT SA organisation

Philippe Berterottière*

Chairman and Chief Executive

Officer

Eric Dehouck*

Deputy CEO

Lélia Ghilini*

General Counsel/

Director of Legal Affairs

Eric Dehouck*

Julien Bec

David Colson*

Karim Chapot*

Sandrine Vibert*

Marc Haestier*

Director

Director

Commercial

Technical

Human Resources

Chief Financial

of Innovation

LNG as fuel

Director

Director

Director

Officer

~102 people

~17 people

~28 people

~194 people

~10 people

~40 people

Anouar Kiassi

Digital & IT

* Member of the Executive Committee

Director

38

GTT exposure to the liquefied gas shipping and storage value chain

Exploration

Liquefaction

Shipping

Regasification

Off Take /

& Production

& Storage

Consumption

Offshore

Liquefied Natural Gas

Floating Storage and

LNG fuelled

clients:

Carrier

Regasification Unit

ship

shipyards

(LNGC)

(FSRU)

Platform /

Gas-to-wire

Installation

Floating LNG Production,

Storage and Offloading

unit (FLNG)

Floating Storage Unit

Bunker vessel /

(FSU)

Ethane/ multigas

Barge

Carriers

Onshore

clients:

EPC

Power plant

contractors

Onshore storage / GBS

Onshore storage / GBS

Tank in

liquefaction plant

regasification terminal

industrial plant

Source: Company data

39

GTT ecosystem

Oil & Gas

Companies

End clients and prescribers

provides services

Classification

Societies

Regulatory oversight of the industry

receives new technology certification and approval

Shipowners

End clients and prescribers

provides services and maintenance

Shipyards

Direct clients

licences its membrane technology and receives royalties

provides engineering studies, on-site technical and maintenance assistance

40

GTT membrane technologies

General principle:

Primary

membrane

Two membranes

Primary insulation

Two layers of insulations

Secondary

membrane

Containment system

Secondary insulation

anchored to the inner hull

Hull

Mark III system

NO96 system

41

54 ageing vessels with charter contract ending by 2023

90 LNGC chart contract to end by 2023

Of which 54 equipped with steam turbine

propulsion; also smaller vessels (<140k cbm)

Charterers and ship-owners to prepare the shift to more modern vessels

Better economics

Some Majors already started selling and replacing part of their ageing fleet (e.g. Shell, NWS project)

LNGCs carriers* with charter contract ending by 2023

35

30

25

20

MEGI/XDF

15

DFDE

Steam Turbine

10

14

13

13

14

5

0

2020

2021

2022

2023

* Above 50k cbm

Source: Wood Mackenzie

42

LNG short term charter rates

Spot charter rates

Source: Poten

43

LNGCs - Our main business

Vessels equipped for transporting LNG

Existing GTT fleet: 384 units1

In order: 113 units1

26 construction shipyards under license1

Our strengths

Technological leadership, boil-off divided by 2 in the last 5 years

Long term industrial partnerships with major shipyards

A unique position in the LNG ecosystem, nurtured by 50 years of experience, expertise and customer orientation

1 As at 30 December 2019

44

FSRUs - A flexible solution for opening quickly new access to energy

Major competitive advantage vs. land-based terminals:

Quick to build/deploy & mobile

Better local acceptability & easier permitting

Affordable / no upfront CapEx

Adapted to more volatile LNG prices

Quality controlled construction in shipyards with available and skilled workforce

Courtesy of Excelerate Energy

More than 40 FSRUs currently in service or under construction

FSRUs market outlook

Worldwide development

Asia (India, China, …)

Europe

(Turkey, Croatia, …)

South & West Africa

LatAm & Carribeans

Source: Poten 2018

45

GBS is suitable for a very wide range of applications

@ SemCorp

@ Acciona

Concrete or steel, installed in jetty, breakwater dike or nearshore

GBS range

5k

50k

200k+

Storage capacity (cbm)

LNG SUPPLY CHAIN

  • Liquefaction or regasification plants
  • Peak Shaving
  • Satellite Station
  • Inland distribution

Markets

POWER

  • Industry Company
  • Captive Power

BUNKERING

  • LNG as fuel

Location

LOCATION

• Islands, remote costal areas, isolated industrial needs (ex.: mining), …

46

Focus on GTT's competitive advantages on LNGCs

GTT's technology positioning (1)

GTT

Moss

SPB

KC-1

Integrated tank

Self supported spheric tank

Self supported prismaticl tank

Integrated tank

Technology

(membrane)

(membrane)

Atmospheric pressure

Atmospheric pressure

Atmospheric pressure

Atmospheric pressure

Requires less steel and

Slightly higher costs

CAPEX

aluminum than tanks for

Higher costs

Higher costs

than GTT

a given LNG capacity

More efficient use of

Higher opex due to

OPEX

space

Higher fuel / fee costs

Higher fuel / fee costs

BOR (0.16%)

Limited BOR (0.07%)

LNGCs in

115

0

0

0

construction

LNGCs in

384

129

4 (+2 small)

2 (on repair)

operation

Higher centre of gravity;

Huge losses and delays on

Korean technology with

Other

Value added services

vessels in orderbook.

harder to navigate

little experience at sea

No significant experience

GTT technologies : cost effective, volume optimisation and high return of experience

Source: Company data and comment (December 31, 2019), Clarksons

(1) Other technologies are being developed, however are not known to have obtained final orders to date (e.g. DSME's Solidus). Excludes vessel orders below 50,000 m3

47

GTT's LNG Fuel solutions offering

GTT has developed solutions for the main applications of LNG Fuel

Solutions for Container Vessels new build and retrofit

Cruise Ship - optimizing the space for additional

passengers

Lean bunker barge to

Cost effective solution for bulk carriers

standardize the market

New LNG Brick®

dedicated to medium-sized merchant vessels test phase completed

48

LNG Fuel: wide network of partnerships

25 shipyards under licensed agreements

Network of membrane tank outfitters

A close relationship with engine makers and FGHS1 providers

(1) Fuel Gas Handling System

49

Focus on GTT's competitive advantages on LNG fuel

GTT's technology positioning on LNG fuel

GTT Membrane

Prismatic Type B

Type C

Self supported Cylindrical tank

Technology

Integrated tank

Self supported tank

Pressurized

principle

Atmospheric pressure

Atmospheric pressure

Insulation: vacuum (smaller tanks) or

foam (larger tanks)

Space

High: Integrated tank and

Moderate to high : Inspection space,

Low: Cylindrical design, restricted filling

optimization

unique design for each vessel

restricted filling limits (heel)

limits (pressurized)

Boil off

Low

Low to medium

Uncertain on real value during operation

Moderate cost: Requires less

Higher cost, as much metal is used

CAPEX

steel and aluminum than other

(Aluminum or Nickel) and many

Lower cost (foam), high cost for vacuum

tanks for a given LNG capacity

workers required for welding

Reinforced foam for LNG fuel

Tank shape

Tank shape

Sloshing

tanks

Metallic structure

Metallic structure

Chamfers

LNG fueled

High experience with >400

Limited experience at sea (few

175 (mainly with tanks <1k cbm,

vessels in

vessels in operation (LNGCs,

LNGCs, with delays and high cost

vacuum)

operation

FSRUs, …)

overrun during construction)

LNG fueled

200 (mainly with tanks <1k cbm,

vessels in

19 (18 + 1 conversion)

11

vacuum)

construction

High metal content => high price and

Exposed to salinity, meteorology (if tank

Others

High end design

weight, complex welding, thermal

on deck)

resistance, long cooling down,…

Easier for conversion if tank on deck

Potential outer tank corrosion

Generic technology

Source: Company data and comment (December 31, 2019), Clarksons, DNV GL

50

An attractive business model supporting high cash generation

Invoicing and revenue recognition

Business model supports high cash generation

% of contract (1)

c. 9 to12 months

c. 18 months

Delivery

10000

studies

royalties

8000

Ship

launching

6000

Keel laying

4000

Steel cutting

2000

0

Months from receipt of order

0

5

10

15

20

25

Cash collection

Revenue IFRS 15

Revenue is recognized pro-rata temporis between construction milestones

Initial payment collected from shipyards at the effective date of order of a particular vessel (10%)

Steel cutting (20%)

Keel laying (20%)

Ship launching (20%)

Delivery (30%)

Source: Company

(1) Illustrative cycle for the first LNGC ordered by a particular customer, including engineering studies completed by GTT

51

Appendix: track record of high margin and strong backlog

2008

2011

Economic crisis

Fukushima

US shale gas boom

120

112

66

30

18

52

77

99

114

118

96

89

97

133

66

47

51

44

37

Evolution of new

34

26

35

21

GTT orders (1)(2)

19

4

1

7

5

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

LNGC/VLEC

FSRU/FLNG

Onshore storage / GBS

Barge

Backlog (# of orders)

65%

64%

57%

55%

58%

50%

51%

52%

51%

50%

42%

44%

Evolution of

31%

33%

288

revenue (in € M)

251

246

222

218

227

226

237

232

and net margin (4)

163

142

75

56

89

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

Revenue

Net Margin

Source: Company

  1. Orders received by period / Core business
  2. Excl. vessel conversions
  3. Represents order position as at December based on company data, including LNGC, VLEC, FLNG, FSRU and on-shore storage units
  4. Figures presented in IFRS consolidated from 2016 to 2018, IFRS from 2010 to 2015, French GAAP from 2006 to 2009

52

Contact: information-financiere@gtt.fr/ +33 1 30 23 20 87

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GTT – Gaztransport & Technigaz SA published this content on 30 July 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 07 August 2020 14:03:02 UTC