FIRST HALF 2020

RESULTS PRESENTATION

JULY 29TH 2020

JUAN LLADÓ

CEO

CONTENT

  • Backlog with outstanding clients
  • Managing execution under COVID
  • Optimization and efficiency
  • H1 2020 results
  • Healthy financial position
  • Pipeline and outlook

2

BACKLOG WITH OUTSTANDING CLIENTS

€10.1 Bn Backlog > 2x annual sales

55%

40%

5%

Upstream Downstream Power

  • First tier industrial customers
  • Privileged and longstanding relationship
  • Recurrent customers

3

MANAGING EXECUTION UNDER COVID

  • Managing COVID: project by project, month by month o Engineers back in home office
    o Improvement in logistics and fabrication o Adjusting labour mobilisation
    o Cash management through the supply chain
  • Efficient adjustment to customer demands

4

MANAGING EXECUTION UNDER COVID

Duqm (May 2020)

Vacuum distillation

unit erection

MANAGING EXECUTION UNDER COVID

Haradh (May 2020)

Panoramic view

and flare stack erection

6

TR-ANSFORMA: CHANGING OUR MANAGEMENT APPROACH

Corporate costs reduction

Efficient procurement and subcontracting

Cost reduction in workforce, on site and home office

Strengthening planning, cost control & risk management

  • Actively working in optimization initiatives since mid 2019
  • Increasing the initial scope: finding new pockets of efficiencies

7

H1 2020 RESULTS

PROFIT AND LOSS

€ Million

H1 2020

H1 2019

Var.

Revenues

2,108.7

2,216.7

-4.9%

EBIT

33.1

27.4

+20.8%

Margin

1.6%

1.2%

Net financial results

-12.5

-6.3

Profit before taxes

20.1

19.3

+4.1%

Taxes

-6.0

-5.7

Net profit

14.1

13.6

+3.8%

  • Impact of COVID in revenues
  • EBIT Margin

o Favoured by newer project margins, TR-ansforma plan and change order agreements

o Offset by COVID and power projects impacts

8

HEALTHY FINANCIAL POSITION

Net Cash Position

€M

▪

Clients adapting cash

419

payment to COVID scenario

370

▪

Strengthened balance sheet

and liquidity position

219

250

o €437 million refinanced in

215

favorable conditions (2024

154

maturity)

Q1 2019

Q2 2019

Q3 2019

2019

Q1 2020

Q2 2020

9

ONGOING PIPELINE OPPORTUNITIES

42 Bopportunities$ in

5%

7%

10%

47%

18%

48%

65%

Natural gas Clean fuels and petchem Bio fuels and renewables

Africa and M East

Europe

Americas

Asia

10

BUSINESS AND MARKET OUTLOOK

  • TR is well positioned:
    • Backlog with outstanding customers
    • Managing execution under Covid
    • Achieving results in the cost optimization and efficiency plan
    • Healthy financial position
    • Ongoing pipeline
  • Facing the future with prudent optimism

11

DISCLAIMER

This document has been prepared by Técnicas Reunidas S.A. (the Company) solely for use at presentations held in connection with the announcement of the Company's results for the first half of 2020.

This document contains forward-looking statements of the Company and/or its management. These forward looking statements such as statements relating to the Company's or management's intent belief or current

expectations of the future growth in the Company's business and capital expenditure in the oil and gas industry in general are subject to risks and variables that are beyond the Company's control and that could materially and adversely affect the outcome and financial effects of the facts expressed implied or projected herein.

The Company is under no obligation to update or keep current the information contained in this presentation including any looking forward-statements or to correct any inaccuracies that may later become apparent.

No representation or warranty express or implied is made as to and no reliance should be placed on the fairness accuracy completeness or correctness of the information or opinions contained herein. None of the Company or any of its affiliates advisors or representatives shall have any liability whatsoever for any loss arising from any use of this document or its contents or otherwise arising in connection with this document.

This document is only provided for information purposes and does not constitute nor may it be interpreted as an offer to sell or exchange or acquire or solicitation for offers to purchase any share in the Company. Any decision to buy or invest in shares in relation to a specific issue must be made on the basis of the information contained in the relevant prospectus filed by the Company in relation to such specific issue.

Attachments

  • Original document
  • Permalink

Disclaimer

Tecnicas Reunidas SA published this content on 29 July 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 29 July 2020 13:45:07 UTC