FIRST QUARTER 2020 RESULTS PRESENTATION
MAY 25TH 2020
JUAN LLADÓ
CEO
MARKET ENVIRONMENT
UNPRECEDENTED CONTEXT
COVID pandemic
- Oil price collapse
- World recession
TR STRENGTHS TO FACE IT
- Solid backlog
- Continuity in project execution
- Optimisation and efficiency program
- Strong financial position
- Ongoing pipeline
2
CONTENT
- Solid backlog
- Continuity in execution
- Optimization and efficiency
- Strong financial position
- Q1 2020 results
- Pipeline and outlook
3
SOLID BACKLOG
€10.9 Bn Backlog > 2x annual sales
55%
40%
5%
Upstream Downstream Power
- First tier industrial customers
- Solid project fundamentals
- Project rescheduling, without cancellations
- Earnings visibility
4
CONTENT
- Solid backlog
- Continuity in execution
- Optimization and efficiency
- Strong financial position
- Q1 2020 results
- Pipeline and outlook
5
CONTINUITY IN PROJECT EXECUTION
Impact | Mitigation | |
Engineering
Procurement
Construction
- Engineering and home office task forces work disruption
- Delays in fabrication, inspections, logistics availability and customs
- Difficulties in labour mobilization with productivity impact
- Subcontractors strength for addressing the scenario
- Smart work for 5,000 engineers with high productivity
- Successful virtual inspections
- Change of routes
- Alternative sourcing
- Quarantines and demobilisation at sites
- Project schedule extension
- Contractual coverage
- Cash management
Flexibility and coordination with clients and suppliers
6
CONTENT
- Solid backlog
- Continuity in execution
- Optimization and efficiency
- Strong financial position
- Q1 2020 results
- Pipeline and outlook
7
OPTIMIZATION AND EFFICIENCY PROGRAM
TR-ansforma
Initiative launched at the end of 2019 to consolidate margins and increase competitiveness
Corporate costs reduction
Efficient procurement and subcontracting
Engineering and project management
Management and strategic
- Overhead costs reduction
- Third party services reduction
- Further standardisation of procedures
- Improvement of cash flow management
- Joint work with suppliers & subcontractors for efficiencies and savings
- Surplus material optimization
- Cost reduction in field engineering
- Cost reduction in workforce on site
- Cost reduction in engineering at home office
- Reinforced Talent Management scheme
- Strengthening Planning, Cost Control & Risk Management
8
CONTENT
- Solid backlog
- Continuity in execution
- Optimization and efficiency
- Strong financial position
- Q1 2020 results
- Pipeline and outlook
9
STRONG FINANCIAL POSITION
Net Cash Position
€M
419
370
258 250
219 215
2018 | Q1 2019 | Q2 2019 | Q3 2019 | 2019 | Q1 2020 |
- Strong net cash position
- Robust balance sheet and liquidity position to face uncertainties
o € 1,234 million total liquidity: - € 1,082 million gross cash
- € 242 million credit lines
-
€ 904 million total financing: o € 662 million drawn
o € 242 million undrawn
10
CONTENT
- Solid backlog
- Continuity in execution
- Optimization and efficiency
- Strong financial position
- Q1 2020 results
- Pipeline and outlook
11
Q1 2020 RESULTS
PROFIT AND LOSS
€ Million | Q1 2020 | Q1 2019 | Var. |
Revenues | 1,181 | 915 | +29% |
EBIT | 23.7 | 10.6 | +124% |
Margin | 2.0% | 1.2% | |
Net financial results | -11.3 | -3.6 | |
Profit before taxes | 12.4 | 5.7 | +117% |
Taxes | -3.7 | -2.0 | |
Net profit | 8.7 | 3.7 | +135% |
12
CONTENT
- Solid backlog
- Continuity in execution
- Optimization and efficiency
- Strong financial position
- Q1 2020 results
- Pipeline and outlook
13
PIPELINE OPPORTUNITIES
83%
in non-oil production industries
21% 52%
17%
10%
Oil Gas Downstream Power
40 US$B in
opportunities
- No pipeline cancellations
- Delays in decision making process
- 65% in Middle East
- Increase of feasibility studies and FEEDs signals future investments
14
BUSINESS AND MARKET OUTLOOK
- TR is well positioned:
- Solid backlog
- Continuity in project execution
- Cost optimization and efficiency plan in place
- Strong financial position
- Ongoing pipeline with delayed awards
- Facing the future with prudent optimism
15
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 quarter 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.
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Tecnicas Reunidas SA published this content on 25 May 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 25 May 2020 13:47:05 UTC