Q1 2023 Earnings Presentation

April 27, 2023

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 statements usually relate to future events, market growth and recovery, growth of our new energies business 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 forward-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 future results to differ materially from our historical experience and our present expectations or projections, including unpredictable trends in the demand for and price of crude oil and natural gas; competition and unanticipated changes relating to competitive factors in our industry, including ongoing industry consolidation; the COVID-19 pandemic and any resurgence thereof; our inability to develop, implement and protect new technologies and services and intellectual property related thereto, including new technologies and services for our New Energy business; the cumulative loss of major contracts, customers or alliances and unfavorable credit and commercial terms of certain contracts; disruptions in the political, regulatory, economic and social conditions of the countries in which we conduct business; the refusal of DTC to act as depository agency for our shares; 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; additional costs or risks from increasing scrutiny and expectations regarding ESG matters; uncertainties related to our investments in New Energy business; the risks caused by fixed-price contracts; our failure to timely deliver our backlog; our relianc e on subcontractors, 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; risks of pirates endangering our maritime employees and assets; any delays and cost overruns of new capital asset construction projects for vessels and manufacturing facilities; potential liabilities inherent in the industries in which we operate or have operated; our failure to comply with existing and future laws and regulations, including those related t o environm ental protection, climate change, 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 limited company; uninsured claims and litigation against us; tax laws, treaties and regulations and any unfavorable findings by relevant tax authorities; potential departure of our key managers and employees; adverse seasonal and weather conditions and unfavorable currency exchange rates; risk in connection with our defined benefit pension plan commitments; and our inability to obtain sufficient bonding capacity for certain contracts, and other risks as discussed in Part I, Item 1A, "Risk Factors" of our Annual Report on Form 10-K for the fiscal year ended Decem ber 31, 2022 and our other reports subsequently filed with the Securities and Exchange Commission.

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.

Q1 2023 Earnings Call Presentation | 2

Operational highlights and financial results

Q1 2023 Operational summary

Highlights

  • Total Company inbound orders of $2.9 billion; sequential backlog growth of 13% to $10.6 billion
  • Subsea inbound orders of $2.5 billion; book-to-bill of 1.8
  • iEPCI™ represented more than 50% of Subsea inbound orders
  • Solid operational performance drives adjusted EBITDA of $155 million when excluding foreign exchange
  • Share repurchase of $50 million; completed $150 million of buyback program since July 2022 authorization

Takeaways

iFEED™ activity at record level and supports future greenfield development

Strong Subsea orders in the

period do not represent quarterly peak for iEPCI™ inbound in 2023

iEPCI™, Subsea Services and

direct awards totaled 70% of Subsea inbound

Q1 2023 Earnings Call Presentation | 4

Q1 2023 Financial results

Sequential highlights

  • Total Company adjusted EBITDA of $155 million, excluding foreign exchange:
    • Subsea largely unchanged due to continued seasonal impact of weather
    • Surface Technologies decreased primarily due to lower international activity, offset in part by cost savings
  • Cash and cash equivalents of $522 million, net debt of $868 million:
    • Cash flow from operations of $(386) million impacted by seasonal working capital outflow
    • Free cash flow of $(444) million; maintain free cash flow guide of $300 million (FY midpoint)

Segment results

$2.9B

Inbound orders

$10.6B

Backlog

$155M

Adjusted EBITDA

excluding F/X

$(444)M

Free cash flow

Subsea

1Q23

4Q22

1Q22

QoQ

YoY

Revenue

1,388

1,343

1,289

3%

8%

Adjusted EBITDA

142

140

129

1%

10%

Adjusted EBITDA margin

10.2%

10.4%

10.0%

-20 bps

20 bps

Inbound orders

2,537

1,516

1,894

67%

34%

Backlog

9,395

8,132

7,741

16%

21%

Surface Technologies

1Q23

4Q22

1Q22

QoQ

YoY

Revenue

330

352

267

-6%

24%

Adjusted EBITDA

40

44

22

-9%

83%

Adjusted EBITDA margin

12.2%

12.6%

8.2%

-40 bps

400 bps

Inbound orders

322

327

291

-1%

11%

Backlog

1,212

1,222

1,153

-1%

5%

Q1 2023 Earnings Call Presentation | 5

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TechnipFMC plc published this content on 27 April 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 27 April 2023 10:50:10 UTC.