Tecnicas Reunidas S A : La Sociedad remite presentación sobre los resultados del Año 2019.

FULL YEAR 2019

RESULTS PRESENTATION

FEBRUARY 27TH 2020

JUAN LLADÓ

CEO

CONTENT

Results FY 2019

• Awards
• Backlog
• Pipeline
• De-riskingand Optimisation
• Financial Results
• Outlook

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RECENT AWARDS

Results FY 2019

Q1 2020

• EPC clean fuel refinery for Sonatrach, Algeria
• EPm polypropylene project for CKPC, Canada

Q4 2019

• Energy efficiency project for Termocandelaria, Colombia
• Competitive FEED, olefin complex for Ineos, Belgium
• Tuban BED and FEED for Pertamina and Rosneft, Indonesia
• Energy efficiency project for Suncor, Canada

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YTD 2020 AWARDS

Results FY 2019

• Hassi Messaoud refinery
• EPC for a high conversion grassroots refinery for clean fuel production for fulfillment of stringent environmental requirements (Euro V)
• Value: US$ 3,700 million. 55% TR share exceeding US$ 2,000 million
• Capacity of 5 million tons/year
• Design and execution will accomplish the most stringent safety and environmental standards

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YTD 2020 AWARDS

Results FY 2019

• Client: CKPC (joint venture 50/50 KIPIC and Pembina)
• New facility to convert propane into polypropylene (550,000 tons per year)
• Reimbursable EPm contract
• Polypropylene is one of the most commonly used building blocks in the manufacturing industry and it is fully recyclable
• This is the second polymer project executed in this country, which demonstrates the strong footprint of Técnicas Reunidas in the petrochemical sector in Canada

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RECENT 2019 AWARDS

Results FY 2019

• Client: Termocandelaria
• Conversion to combined cycle of Termocandelaria's gas turbine power plant in Cartagena (Colombia)
• Increase of the output of current operations by improving the overall efficiency of the plant and reducing by 30% its carbon footprint
• Value: US$ 200 million

• Client: Ineos
• Competitive FEED for the utilities, power and infrastructure package of INEOS' large olefin complex in Belgium
• Largest investment in the European chemical industry in the last 20 years and a landmark in terms of energy efficiency
• Potentially convertible into an EPC project

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THE LAST 18-MONTHS AWARDS CONFIRM THE RECOVERY OF THE MARKET

Results 9M 2019

Upstream Oil & Gas

▪	Adgas	ADNOC
▪	Bu Hasa	ADNOC
▪	Marjan field	Saudi Aramco
▪	FEED Upper Zakum	ADNOC/Exxon

Refining
▪	Singapore	Exxon
▪	FEED Tuban	Pertamina/Rosneft
▪	FEED	YPF
▪	Hassi Messaoud	Sonatrach

Repeating Customer

~10Bn$

Petrochemicals
▪	FEED LAB	ADNOC/CEPSA
▪	FEED Turkey	BP/Socar
▪	FEED Tuban	Pertamina/Rosneft
▪	FEED INEOS	INEOS
▪	Canada	CKPC

Power & Water

▪	Hamrijah	Sumitomo/GE
▪	Cogeneration plant	Suncor
▪	Combined cycle	Undisclosed client
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CONTENT

Results FY 2019

• Awards
• Backlog
• Pipeline
• De-riskingand Optimisation
• Financial Results
• Outlook

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LARGE, FRESH AND DIVERSIFIED BACKLOG

Results FY 2019

…starting 2020 at almost €12bn backlog1

BACKLOG SPLIT

BY LAUNCH YEAR

BY PRODUCTS

74%

49%

45%

26%

6%

Pre-2018	2018 and 2019	Upstream	Downstream	Power
1. Including Algeria				9

CONTENT

Results FY 2019

• Awards
• Backlog
• Pipeline
• De-riskingand Optimisation
• Financial Results
• Outlook

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LARGE AND DYNAMIC PIPELINE

Results FY 2019

50Billion USD

45

40

35	43	45	41
30
25
	2017	2018	2019

The pipeline reflects the strong fundamentals of the industry

• Gas as the backbone of the energy transition
• Upstream asset replacement
• Demand growth for energy and petrochemicals in emerging countries
• Process efficiency improvement
• Adaptation to stringent environmental requirements

Supporting social and economic growth

with sustainable energy

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CONTENT

Results FY 2019

• Awards
• Backlog
• Pipeline
• De-riskingand Optimisation
• Financial Results
• Outlook

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DE-RISKED AND OPTIMISATION INITIATIVES

Results FY 2019

• TR-ansformaplan will redefine the group's cost structure and optimize company operations
• Non-coredivestment plan expected to be closed in H1 2020.
  Circa € 50 million capital gains expected (€15.7 million1)
• Tax settlement closed with the Spanish Tax Inspection to reduce tax liability risk and eliminate uncertainties (€64.5 million1)
• Preservation and maintenance contracts for successful delivery

1. Net of tax

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CONTENT

Results FY 2019

• Awards
• Backlog
• Pipeline
• De-riskingand Optimisation
• Financial Results
• Outlook

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PROFIT AND LOSS

Results FY 2019

PROFIT AND LOSS

€ Million	2019 Adjusted	2018	Var.
Revenues	4,699	4,396	+7%
EBIT1	68.1	42.1	+66%
Margin	1.5%	1.0%
Net financial results1	-17.1	-18.8
Profit before taxes	51.0	22.3	129%
Taxes1	-11.6	-7.8
Net profit1	39.4	14.4	173%

• Delivering projects for $15 Bn
• Sales growth as new projects progress
• Operating margin improvement

1. Adjustments for non-recurrent items and IFRS 16 effect, detailed in the appendix.

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CASH POSITION

Results FY 2019

Net Cash Position

M€

		371
		▪	Working capital improvement
258	250	▪	>70% of the backlog in
189	219	215	Middle East

3Q 2018

2018

1Q 2019

2Q 2019

3Q 2019

2019

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CONTENT

Results FY 2019

• Awards
• Backlog
• Pipeline
• De-riskingand Optimisation
• Financial Results
• Outlook

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BUSINESS AND MARKET OUTLOOK

Results FY 2019

A strengthened franchise…

• Successful delivery of complex projects
• Repeating business with renowned clients
• Technological skills increasingly recognized
• Ongoing dynamic pipeline
• A far more efficient TR

Guidance 2020:

• Sales: €5.2 - €5.5 Bn
• EBIT margin above 3%

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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 nine months of 2019.

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.

APPENDIX: P&L ADJUSTMENTS

Results FY 2019

			Non-	FY 2019
	FY 2019	IFRS 16	recurrent
	Adjusted
			items
€ Million
EBITDA	110.2	-28.5	-	81.7
DEPRECIATION	-42.1	28.5	-	-13.6
EBIT	68.2	-0.1	-	68.1
NET FINANCIAL RESULT	-12.4	0.9	-5.7	-17.1
TAX	-65.8	-	54.2	-11.6
NET PROFIT	-10.0	0.9	48.5	39.4

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