Technip’s Fourth Quarter and Full Year 2012 Results 2012 Objectives Achieved; 2013 Revenue and Profit Expected to Grow Business Wire PARIS -- February 21, 2013 Regulatory News: Technip (Paris:TEC) (ISIN:FR0000131708): 2012 RESULTS *Robust order intake, revenue and operating margins in 4Q 2012 *Backlog at €14.3 billion, of which €6.0 billion in Subsea *Full year revenue of €8.2 billion *Full year operating margin^1 of 10.0% *Net income of €540 million *Recommendation to raise 2012 dividend by €0.10 to €1.68 per share FULL YEAR 2013 OUTLOOK^2 *Group revenue growing 11% to 16% to between €9.1 and €9.5 billion *Subsea revenue growing to between €4.3 and 4.6 billion, with operating margin around 15% *Onshore/Offshore revenue growing to between €4.7 and €5.1 billion, with operating margin between 6% and 7% On February 19, 2013, Technip’s Board of Directors approved the audited full year 2012 consolidated financial statements. € million (Except Diluted FY 11 FY 12 Change 4Q 11 4Q 12 Change Earnings per Share) Revenue 6,813.0 8,203.9 20.4% 2,014.3 2,300.5 14.2% EBITDA^3 883.5 1,016.6 15.1% 274.0 289.0 5.5% EBITDA 13.0% 12.4% (58)bp 13.6% 12.6% (104)bp Margin Operating Income from 709.5 821.7 15.8% 208.2 237.5 14.1% Recurring Activities Operating 10.4% 10.0% (40)bp 10.3% 10.3% (1)bp Margin Operating 693.8 812.2 17.1% 197.2 235.0 19.2% Income Net Income 507.3 539.7 6.4% 149.5 147.0 (1.7)% Diluted Earnings per 4.41 4.50 2.1% 1.28 1.21 (5.5)% Share^4 (€) Dividend per 1.58 1.68 6.3% share^5 (€) Order 7,975 11,649 2,239 2,975 Intake Backlog 10,416 14,251 36.8% Thierry Pilenko, Chairman and CEO, commented: “Technip's performance was in line with our objectives throughout 2012, including the fourth quarter. Full year group revenue grew by 20% and operating profit by 16%, giving an operating margin again stable at 10%. Our backlog grew to €14billion, whilst remaining diversified by geography, market segment and project type, which we hold to be a critical success factor in our industry. The projects we delivered and won in 2012 reflect our focus on offering our clients differentiating technologies, and on securing involvement in projects early in their life-cycle. To support our growth, we have invested in talent worldwide - Technip now employs 36,500 people compared to 31,000 a year ago - and in new assets, acquisitions and alliances. Subsea operating margin in 2012 was in line with our objective, at 15% on revenue, which grew ahead of plan by 36%. The Global Industries integration progressed well, and we were able to win many important projects for the two “G” vessels for 2013 and beyond. Overall, this acquisition is delivering what we expected. The alliance with Heerema confirms our leadership in the Subsea market worldwide, giving our clients access to the broadest range of skills from upstream engineering to all types of pipelay and construction assets. Our investments in assets and flexible pipe technology give us a strong position, for example, in deepwater developments in areas such as Brazil. Onshore/Offshore operating margin was at the top end of our expectations at 7%. We were able to convert early stage involvement in projects at FEED and conceptual phases into larger EPC scopes in places such as the Middle East, Latin America and Eastern Europe. We completed the acquisition of Stone and Webster Process Technologies in August giving us a foothold in the North American downstream market and have since formed a worldwide unit focusing on onshore technologies. We have also strengthened our position in new areas such as Floating LNG, where we confirmed key relationships with major clients. Furthermore, we have pursued the development of Technip into a more diversified and international group, including at Board level with the appointments made in 2012 and those to be proposed at our next AGM. Upon their ratification, our twelve-member Board will comprise five women and seven men, from seven different nationalities, and reflecting key markets. Technip starts 2013 with a substantial, profitable backlog of business to execute. We believe our markets, whilst competitive and never immune to general economic conditions, remain robust and growing. Our clients continue to focus on replacing and raising production from increasingly challenging areas and reservoirs. They seek long-term relationships with contractors that are capable of developing and deploying the right technologies and who can embrace national content and local execution. Upstream investments should grow at a double digit rate and several very large oil and gas offshore developments should be sanctioned in the next couple of years. Downstream will be particularly active in petrochemicals, notably in North America. We will continue to be selective about the projects we take on so as to ensure reliable execution and delivery to both clients and shareholders. We will pursue our capex program, with a focus on delivering our current commitments. On this basis, we expect to grow revenue and profit at Technip again in 2013 in both our segments. We expect full year operating margins of around 15% in Subsea. This target reflects on the one hand our robust, growing Subsea backlog, but also the dilutive effect of the revenue contribution from recently-won multiyear projects and the substantial start-up costs for both new vessels and manufacturing plants. We target Onshore/Offshore operating margins in line with our long-term expectations at 6 to 7%. Accordingly, confident in our strategy, our backlog, and our potential for profitable growth, we propose to Technip’s General Shareholders’ Meeting an increase of 10 eurocents in the dividend, to €1.68 per share, in line with our practice of regularly increasing the payout to shareholders.” ^1 Operating income from recurring activities divided by revenue. ^2 Based on the year-to-date average exchange rates. ^3 Operating income from recurring activities before depreciation and amortization. ^4 As per IFRS, diluted earnings per share are calculated by dividing profit or loss attributable to the Parent Company’s Shareholders, restated from financial interest related to dilutive potential ordinary shares, by the weighted average number of outstanding shares during the period, plus the effect of dilutive potential ordinary shares related to the convertible bonds, dilutive stock options and performance shares calculated according to the “Share Purchase Method” (IFRS 2), less treasury shares. In conformity with this method, anti-dilutive stock options are ignored in calculating EPS. Dilutive options are taken into account if the subscription price of the stock options plus the future IFRS 2 charge (i.e. the sum of annual charge to be recorded until the end of the stock option plan) is lower than the average market share price during the period. ^5 Recommendation of Technip’s Board of Directors to be approved during the Annual General Shareholders’ Meeting (AGM) on April 25, 2013. I. PROJECT PORTFOLIO 1. Fourth Quarter 2012 Order Intake During fourth quarter 2012, Technip’s order intake was €2,975 million. The breakdown by business segment was as follows: Order Intake (€ million) 4Q 2011 4Q 2012 Subsea 1,216.0 914.1 Onshore/Offshore 1,022.6 2,061.0 Total 2,238.6 2,975.1 Subsea order intake included several small and medium-sized contracts on several continents, notably the second phase of the Total E&P Angola GirRI project, which was awarded after the successful completion of the first phase in 2012. In the Americas, we were awarded several projects involving our leading assets and expertise: the G1200 vessel will notably lay 30’’ pipeline on the South Timbalier Block 283 Junction Platform project, which will be the largest lines she has installed to date, and work on Starfish field in Trinidad and Tobago for BG International Ltd. Onshore/Offshore order intake comprised several commercial successes for both offshore production units and onshore downstream activities. We were awarded our first tension leg platform project by Sabah Shell Petroleum Company for the Malikai project in Malaysia. As consortium leader, we were chosen by Total E&P Norge for a contract covering engineering, procurement, fabrication, transportation, hookup and commissioning of the topsides for the Martin Linge platform in Norway. We also signed an EPC contract with BASF in Germany for the expansion of a chlorine plant, a project on which we also carried out the FEED. Other awards included notably an engineering and procurement contract for an ethylene production plant in the USA. The main contracts announced since October 2012 and their approximate value, if publicly disclosed, are listed in annex IV (b). 2. Backlog by Geographic Area At the end of fourth quarter 2012, Technip’s backlog rose to €14,251 million, compared with €13,518 million at the end of third quarter 2012 and €10,416 million at the end of fourth quarter 2011. Backlog by geographic area is set out in the following table: Backlog by Geographic Area Sept. 30, Dec. 31, (€ million) 2012 2012 Europe, Russia, Central Asia 3,407 4,339 Africa 1,181 1,207 Middle East 1,789 1,578 Asia Pacific 2,841 3,030 Americas 4,300 4,097 Total 13,518 14,251 3. Backlog Scheduling Approximately 50% of the backlog is estimated to be scheduled for execution in 2013. Estimated Backlog Scheduling as of Subsea Onshore/Offshore Group December 31, 2012 (€ million) 2013 3,242 3,842 7,084 2014 1,682 2,820 4,502 2015 and beyond 1,126 1,539 2,665 Total 6,050 8,201 14,251 II. FOURTH QUARTER 2012 OPERATIONAL & FINANCIAL HIGHLIGHTS 1. Subsea Subsea main operations for the quarter were as follows: *In the North Sea, offshore operations were completed on Vigdis NE field development in Norway. Projects such as Goliat in the Barents Sea progressed and newer projects such as Greater Stella Area development in the UK and Bøyla field development in Norway ramped-up, *In the Americas: *Venezuela: works continued on the Mariscal Sucre Accelerated Development, *Brazil: the first batch of flexible pipes was delivered for Guara & Lula Nordeste pre-salt fields at a water depth of 2,250 meters, while offshore operations continued on BC-10 phase 2 project with the Deep Blue and the Deep Pioneer, *In Africa, offshore phases were completed on the Gabonese work scope for CoGA project and the G1200 vessel finalized subsea operations on Jubilee 1A project in Ghana. In Angola, fabrication of umbilicals progressed for CLOV project at our Angoflex plant and the engineering phase started on GirRI phase 2 project with team mobilizations in Paris and Luanda, *Elsewhere, offshore installation was completed on South West Fatah and Falah project in the UAE. Overall Group vessel utilization rate for the fourth quarter 2012 was 78%, compared with 77% for the third quarter 2012. Subsea financial performance is in line with expectations reflecting notably the year-on-year impact of the integration of the acquisition made late 2011. € million 4Q 2011 4Q 2012 Change Subsea Revenue 964.1 1,200.4 24.5% EBITDA 218.2 219.9 0.8% EBITDA Margin 22.6% 18.3% (431)bp Operating Income from Recurring 158.3 178.7 12.9% Activities Operating Margin 16.4% 14.9% (153)bp 2. Onshore/Offshore Onshore/Offshore main operations for the quarter were as follows: *In the Middle East: *Abu Dhabi: commissioning was completed on Asab 3, and civil works progressed on Satah full field development. Mobilization of engineering teams started on Upper Zakum 750 EPC1 project and the first orders were placed, *Saudi Arabia: on Jubail refinery, procurement was completed, construction works progressed on package 2A while pre-commissioning advanced on package 5A. Engineering works progressed and procurement started on KEMYA Halobutyl project, while the installation of subsea cables, wellhead jackets and topsides progressed on Khafji Crude Related project, *Qatar: construction works progressed on PMP, *In Asia Pacific: *Malaysia: FEED activities on RAPID project progressed, as well as engineering works on Petronas FLNG1, *Australia: construction works started for Prelude FLNG at the South Korean construction yard, while engineering activities progressed on Wheatstone platform and Ichthys FPSO, *In the Americas, *USA: fabrication of Lucius Spar hull progressed in Pori, our yard in Finland, while early works for the Heidelberg Spar commenced. FEED works started on Mosaic ammonia and Dow Chemical Freeport Ethylene projects, *Mexico: detailed engineering and procurement progressed and construction started on Ethylene XXI project, *Brazil: engineering works were completed on P-58 & P-62 FPSOs, while construction works progressed on Cubatao refinery, *Elsewhere, procurement continued as construction activities began on the Burgas refinery in Bulgaria. Engineering works continued on Hejre platform in the North Sea and construction activities progressed on Algiers refinery in Algeria. Onshore/Offshore financial performance is set out in the following table: € million 4Q 2011 4Q 2012 Change Onshore/Offshore Revenue 1,050.2 1,100.1 4.8% Operating Income from Recurring 67.9 79.3 16.8% Activities Operating Margin 6.5% 7.2% 74bp 3. Group Technip Group’s operating income from recurring activities including Corporate charges as detailed in annex I (c) is set out in the following table: € million 4Q 2011 4Q 2012 Change Group Revenue 2,014.3 2,300.5 14.2% Operating Income from Recurring 208.2 237.5 14.1% Activities Operating Margin 10.3% 10.3% (1)bp Compared to fourth quarter 2011, foreign exchange had a positive impact estimated at €47million on revenue and no impact on operating income from recurring activities in fourth quarter 2012. Financial result on contracts recognized as revenue amounted to €3 million in fourth quarter 2012. 4. Group Net Income Operating income was €235 million in fourth quarter 2012, including €3 million of acquisition costs, versus €197 million a year ago. Financial result in fourth quarter 2012 included a €9 million negative impact from changes in foreign exchange rates and fair market value of hedging instruments, compared with a €16million positive impact in fourth quarter 2011. The variation in diluted number of shares is mainly due to the potential dilution of convertible bonds (OCEANE), capital increase for Technip employees, as well as share subscription options and performance shares granted to Group employees. € million, except Diluted Earnings per Share, and 4Q 2011 4Q 2012 Change Diluted Number of Shares Operating Income from 208.2 237.5 14.1% Recurring Activities Income / (Charges) from (11.0) (2.5) nm Non-Current Activities Operating Income 197.2 235.0 19.2% Financial Result 11.0 (35.7) nm Share of Income / (Loss) of - 1.0 nm Equity Affiliates Income Tax Expense (61.5) (52.9) (14.0)% Effective Tax Rate 29.5% 26.4% (313)bp Non-Controlling Interests 2.8 (0.4) nm Net Income 149.5 147.0 (1.7)% Diluted Number of Shares 118,909,690 125,455,066 5.5% Diluted Earnings per Share 1.28 1.21 (5.5)% (€) 5. Cash Flow and Statement of Financial Position As of December 31, 2012, Group’s net cash position was €183 million, compared to €184million at end September 2012. Net Cash Position as of September 30, 2012 183.5 Net Cash Generated from / (Used in) Operating 229.3 Activities of which: Cash Generated from / (Used in) Operations 226.1 Change in Working Capital Requirements 3.2 Capital Expenditures (161.3) Other including FX Impacts* (68.3) Net Cash Position as of December 31, 2012 183.2 (*) Includes the impact of assessment of purchase price allocation of Global Industries, which is reflected in the restated December 31, 2011 statement of financial position, in annex II. Capital expenditures for fourth quarter 2012 were €161 million compared to €139million one year ago. Shareholders’ equity as of December 31, 2012, was €4,014 million compared with €3,673million as of December 31, 2011. III. FULL YEAR 2012 FINANCIAL RESULTS 1. Subsea Subsea revenue in 2012 reflected growth in our backlog and progress on various projects worldwide, notably in the North Sea as well as a mix of deepwater and shallow water projects in the Americas and Africa. Subsea EBITDA margin was 19.0% for full year 2012 versus 21.7% in 2011 and operating margin was 14.9% for full year 2012 versus 16.8% in 2011, reflecting progress in delivering our projects, offset by the low utilization in 2012 of the Global Industries assets acquired at the end of 2011. Subsea financial performance is set out in the following table: € million FY 2011 FY 2012 Change Subsea Revenue 2,972.0 4,047.6 36.2% EBITDA 645.1 767.3 18.9% EBITDA Margin 21.7% 19.0% (275)bp Operating Income from Recurring 497.9 603.1 21.1% Activities Operating Margin 16.8% 14.9% (185)bp 2. Onshore/Offshore Onshore/Offshore revenue reflected growth in our backlog and progress on diversified projects around the world, including onshore downstream projects in the Middle East, Europe and the Americas, as well as offshore production facility projects in the North Sea, Asia Pacific and the Gulf of Mexico. Onshore/Offshore operating margin was 7.0% for full year 2012 quite stable versus 7.1% in 2011, reflecting progress on a broad range of projects. Onshore/Offshore financial performance is set out in the following table: € million FY 2011 FY 2012 Change Onshore/Offshore Revenue 3,841.0 4,156.3 8.2% Operating Income from Recurring 273.7 290.4 6.1% Activities Operating Margin 7.1% 7.0% (14)bp 3. Group Technip Group’s operating income from recurring activities including Corporate charges as detailed in annex I (c) is set out in the following table: € million FY 2011 FY 2012 Change Group Revenue 6,813.0 8,203.9 20.4% Operating Income from Recurring 709.5 821.7 15.8% Activities Operating Margin 10.4% 10.0% (40)bp In 2012, foreign exchange had a positive impact estimated at €235 million on revenue and €17 million on operating income from recurring activities. Financial result on contracts recognized as revenue amounted to €12 million in 2012. 4. Group Net Income Operating income was €812 million in 2012 (including €10 million of acquisition costs) versus €694 million a year ago. Financial result in 2012 included a €12 million negative impact from changes in foreign exchange rates and fair market value of hedging instruments, compared with a €41million positive impact last year. The variation in diluted number of shares is mainly due to the potential dilution of convertible bonds (OCEANE), capital increase for Technip employees, and share subscription options and performance shares granted to Technip Group employees. € million, except Diluted Earnings per Share, and FY 2011 FY 2012 Change Diluted Number of Shares Operating Income from 709.5 821.7 15.8% Recurring Activities Income / (Charges) from Non-Current (15.7) (9.5) nm Activities Operating Income 693.8 812.2 17.1% Financial Result 17.4 (65.3) nm Share of Income / (Loss) of - 1.0 nm Equity Affiliates Income Tax Expense (208.7) (204.8) (1.9)% Effective Tax Rate 29.3% 27.4% (196)bp Non-Controlling Interests 4.8 (3.4) nm Net Income 507.3 539.7 6.4% Diluted Number of Shares 117,498,889 124,419,663 5.9% Diluted Earnings per Share 4.41 4.50 2.1% (€) 5. Cash Flow and Statement of Financial Position As of December 31, 2012, Group’s net cash position was €183 million compared to €657million at end 2011. Net Cash Position as of December 31, 2011* 657.1 Net Cash Generated from / (Used in) Operating 444.7 Activities of which: Cash Generated from / (Used in) Operations 883.6 Change in Working Capital Requirements (438.9) Capital Expenditures (518.9) Dividends Paid (172.6) Acquisitions of Stone & Webster Process (232.0) Technologies Other including FX Impacts* 4.9 Net Cash Position as of December 31, 2012 183.2 (*) Includes the impact of assessment of purchase price allocation of Global Industries, which is reflected in the restated December 31, 2011 statement of financial position, in annex II. Capital expenditures in 2012 amounted to €519million versus €357 million one year ago, underlying our sustained effort to introduce new assets as quickly as possible. Total capital expenditures for 2013 are expected to be similar. IV. FULL YEAR 2013 OUTLOOK We expect to grow revenue and profit at Technip again in 2013 in both our segments. We expect full year operating margins of around 15% in Subsea. This target reflects on the one hand our robust, growing Subsea backlog, but also the dilutive effect of the revenue contribution from recently-won multiyear projects and the substantial start-up costs for both new vessels and manufacturing plants. We target Onshore/Offshore operating margins in line with our long-term expectations at 6 to 7%. *Group revenue growing 11% to 16% to between €9.1 and €9.5 billion *Subsea revenue growing to between €4.3 and €4.6 billion, with operating margin around 15% *Onshore/Offshore revenue growing to between €4.7 and €5.1 billion, with operating margin between 6% and 7% V. Other It is proposed to the General Shareholders’ Meeting to be held on April 25, 2013 to appoint Manisha Girotra and Pierre-Jean Sivignon as new members of Technip’s Board of Directors. These appointments would further strengthen Technip’s Board of Directors as independent and diverse through experience, gender and geography, also reflecting our key markets. ° ° ° The information package on Fourth Quarter and Full Year 2012 results includes this press release and the annexes which follow, as well as the presentation published on Technip’s website: www.technip.com Audit procedures on the consolidated financial statements are complete. The audit opinion will be issued once all audit procedures required for the filing of the Reference Document are finalized. NOTICE Today, Thursday, February 21, 2013, Chairman and CEO Thierry Pilenko, along with CFO Julian Waldron, will comment on Technip’s results and answer questions from the financial community during a conference call in English starting at 9:30a.m. CET. To participate in the conference call, you may call any of the following telephone numbers approximately 5 - 10 minutes prior to the scheduled start time: France / Continental Europe: +33 (0) 1 70 77 09 41 UK: + 44 (0)203 367 9461 USA: + 1 855 402 7763 The conference call will also be available via a simultaneous, listen-only audio-cast on Technip’s website. A replay of this conference call will be available approximately two hours following the conference call for 90 days on Technip’s website and for two weeks at the following telephone numbers: Telephone Numbers Confirmation Code France / Continental + 33 (0)1 72 00 15 280050# Europe: 00 UK: + 44 (0)203 367 280050# 9460 USA: + 1 877 642 3018 280050# Cautionary note regarding forward-looking statements This presentation contains both historical and forward-looking statements. These forward-looking statements are not based on historical facts, but rather reflect our current expectations concerning future results and events, and generally may be identified by the use of forward-looking words such as “believe”, “aim”, “expect”, “anticipate”, “intend”, “foresee”, “likely”, “should”, “planned”, “may”, “estimates”, “potential” or other similar words. Similarly, statements that describe our objectives, plans or goals are or may be forward-looking statements. These forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to differ materially from the anticipated results, performance or achievements expressed or implied by these forward-looking statements. Risks that could cause actual results to differ materially from the results anticipated in the forward-looking statements include, among other things: our ability to successfully continue to originate and execute large services contracts, and construction and project risks generally; the level of production-related capital expenditure in the oil and gas industry as well as other industries; currency fluctuations; interest rate fluctuations; raw material (especially steel) as well as maritime freight price fluctuations; the timing of development of energy resources; armed conflict or political instability in the Arabian-Persian Gulf, Africa or other regions; the strength of competition; control of costs and expenses; the reduced availability of government-sponsored export financing; losses in one or more of our large contracts; U.S. legislation relating to investments in Iran or elsewhere where we seek to do business; changes in tax legislation, rules, regulation or enforcement; intensified price pressure by our competitors; severe weather conditions; our ability to successfully keep pace with technology changes; our ability to attract and retain qualified personnel; the evolution, interpretation and uniform application and enforcement of International Financial Reporting Standards (IFRS), according to which we prepare our financial statements as of January 1, 2005; political and social stability in developing countries; competition; supply chain bottlenecks; the ability of our subcontractors to attract skilled labor; the fact that our operations may cause the discharge of hazardous substances, leading to significant environmental remediation costs; our ability to manage and mitigate logistical challenges due to underdeveloped infrastructure in some countries where we are performing projects. Some of these risk factors are set forth and discussed in more detail in our Annual Report. Should one of these known or unknown risks materialize, or should our underlying assumptions prove incorrect, our future results could be adversely affected, causing these results to differ materially from those expressed in our forward-looking statements. These factors are not necessarily all of the important factors that could cause our actual results to differ materially from those expressed in any of our forward-looking statements. Other unknown or unpredictable factors also could have material adverse effects on our future results. The forward-looking statements included in this release are made only as of the date of this release. We cannot assure you that projected results or events will be achieved. We do not intend, and do not assume any obligation to update any industry information or forward-looking information set forth in this release to reflect subsequent events or circumstances. **** This presentation does not constitute an offer or invitation to purchase any securities of Technip in the United States or any other jurisdiction. Securities may not be offered or sold in the United States absent registration or an exemption from registration. The information contained in this presentation may not be relied upon in deciding whether or not to acquire Technip securities. This presentation is being furnished to you solely for your information, and it may not be reproduced, redistributed or published, directly or indirectly, in whole or in part, to any other person. Non-compliance with these restrictions may result in the violation of legal restrictions of the United States or of other jurisdictions. **** ° ° ° Technip is a world leader in project management, engineering and construction for the energy industry. From the deepest Subsea oil & gas developments to the largest and most complex Offshore and Onshore infrastructures, our 36,500 people are constantly offering the best solutions and most innovative technologies to meet the world’s energy challenges. Present in 48 countries, Technip has state-of-the-art industrial assets on all continents and operates a fleet of specialized vessels for pipeline installation and subsea construction. Technip shares are listed on the NYSE Euronext Paris exchange and the USA over-the-counter (OTC) market as an American Depositary Receipt (ADR: TKPPY). ANNEX I (a) CONSOLIDATED STATEMENT OF INCOME IFRS € million Fourth Quarter Full Year Not audited Audited (Except Diluted Earnings per Share and 2011 2012 Change 2011 2012 Change Diluted Number of Shares) Revenue 2,014.3 2,300.5 14.2% 6,813.0 8,203.9 20.4% Gross Margin 362.4 443.2 22.3% 1,286.6 1,551.6 20.6% Research & Development (19.1) (18.5) (3.1)% (65.3) (68.7) 5.2% Expenses SG&A and Other (135.1) (187.2) 38.6% (511.8) (661.2) 29.2% Operating Income from 208.2 237.5 14.1% 709.5 821.7 15.8% Recurring Activities Non-Current Operating (11.0) (2.5) nm (15.7) (9.5) nm Result Operating 197.2 235.0 19.2% 693.8 812.2 17.1% Income Financial 11.0 (35.7) nm 17.4 (65.3) nm Result Share of Income / (Loss) - 1.0 nm - 1.0 nm of Equity Affiliates Income / (Loss) 208.2 200.3 (3.8)% 711.2 747.9 5.2% before Tax Income Tax (61.5) (52.9) (14.0)% (208.7) (204.8) (1.9)% Expense Non-Controlling 2.8 (0.4) nm 4.8 (3.4) nm Interests Net Income / 149.5 147.0 (1.7)% 507.3 539.7 6.4% (Loss) Diluted Number of 118,909,690 125,455,066 5.5% 117,498,889 124,419,663 5.9% Shares Diluted Earnings per 1.28 1.21 (5.5)% 4.41 4.50 2.1% Share (€) ANNEX I (b) FOREIGN CURRENCY CONVERSION RATES Closing Rate as of Average Rate of Dec. Dec. 4Q 4Q FY FY 31, 31, 2011 2012 2011 2012 2011 2012 USD for 1 1.29 1.32 1.35 1.30 1.39 1.29 EUR GBP for 1 0.84 0.82 0.86 0.81 0.87 0.81 EUR BRL for 1 2.42 2.70 2.42 2.67 2.33 2.51 EUR NOK for 1 7.75 7.35 7.76 7.37 7.79 7.48 EUR ANNEX I (c) ADDITIONAL INFORMATION BY BUSINESS SEGMENT IFRS, not audited Fourth Quarter Full Year € million 2011 2012 Change 2011 2012 Change SUBSEA Revenue 964.1 1,200.4 24.5% 2,972.0 4,047.6 36.2% Gross Margin 221.0 264.5 19.7% 724.9 907.1 25.1% Operating Income from Recurring 158.3 178.7 12.9% 497.9 603.1 21.1% Activities Operating Margin 16.4% 14.9% (153)bp 16.8% 14.9% (185)bp Depreciation and (59.9) (41.2) (31.2)% (147.2) (164.2) 11.5% Amortization EBITDA 218.2 219.9 0.8% 645.1 767.3 18.9% EBITDA Margin 22.6% 18.3% (431)bp 21.7% 19.0% (275)bp ONSHORE/OFFSHORE Revenue 1,050.2 1,100.1 4.8% 3,841.0 4,156.3 8.2% Gross Margin 141.4 178.7 26.4% 561.7 644.5 14.7% Operating Income from Recurring 67.9 79.3 16.8% 273.7 290.4 6.1% Activities Operating Margin 6.5% 7.2% 74bp 7.1% 7.0% (14)bp Depreciation and (6.9) (10.3) 49.3% (26.8) (30.7) 14.6% Amortization CORPORATE Operating Income from Recurring (18.0) (20.5) 13.9% (62.1) (71.8) 15.6% Activities Depreciation and 1.0 - nm - - nm Amortization ANNEX I (d) REVENUE BY GEOGRAPHICAL AREA IFRS, not audited Fourth Quarter Full Year € million 2011 2012 % Δ 2011 2012 % Δ Europe, Russia, 367.0 629.7 71.6% 1,749.4 2,414.1 38.0% Central Asia Africa 382.3 222.3 (41.9)% 1,060.5 729.0 (31.3)% Middle East 414.2 352.8 (14.8)% 1,509.6 1,147.6 (24.0)% Asia Pacific 302.2 393.7 30.3% 931.8 1,331.0 42.8% Americas 548.6 702.0 28.0% 1,561.7 2,582.2 65.3% TOTAL 2,014.3 2,300.5 14.2% 6,813.0 8,203.9 20.4% ANNEX II CONSOLIDATED STATEMENT OF FINANCIAL POSITION IFRS Dec. 31, 2011, Dec. 31, 2012 restated* (audited) (audited) € million Fixed Assets 5,662.0 6,022.2 Deferred Tax Assets 319.2 300.5 Non-Current Assets 5,981.2 6,322.7 Construction Contracts – Amounts in 588.0 454.3 Assets Inventories, Trade Receivables and 2,392.6 2,504.8 Other Cash & Cash Equivalents 2,808.7 2,289.3 Current Assets 5,789.3 5,248.4 Assets Classified as Held for Sale - 9.9 Total Assets 11,770.5 11,581.0 Shareholders’ Equity (Parent Company) 3,651.6 4,001.2 Non-Controlling Interests 21.7 13.2 Shareholders’ Equity 3,673.3 4,014.4 Non-Current Financial Debts 1,553.4 1,705.7 Non-Current Provisions 140.3 162.3 Deferred Tax Liabilities and Other 231.4 265.2 Non-Current Liabilities Non-Current Liabilities 1,925.1 2,133.2 Current Financial Debts 598.2 400.4 Current Provisions 346.9 351.2 Construction Contracts – Amounts in 724.3 873.0 Liabilities Trade Payables & Other 4,502.7 3,808.8 Current Liabilities 6,172.1 5,433.4 Total Shareholders’ Equity & 11,770.5 11,581.0 Liabilities Net Cash Position 657.1 183.2 (*) Restated with assessment of purchase price allocation of Global Industries Statement of Changes in Shareholders’ Equity (Parent Company), Not audited (€ million): Shareholders’ Equity as of December 31, 2011 3,651.6 Full Year 2012 Net Income 539.7 Full Year 2012 Other Comprehensive Income (53.9) Capital Increase 115.8 Dividends Paid (172.6) Others (79.4) Shareholders’ Equity as of December 31, 2012 4,001.2 ANNEX III (a) CONSOLIDATED STATEMENT OF CASH FLOWS IFRS, audited Full Year € million 2011 2012 Net Income / (Loss) 507.3 539.7 Depreciation & Amortization of Fixed 174.0 194.9 Assets Stock Options and Performance Share 46.0 48.6 Charges Non-Current Provisions (including Employee 18.4 22.2 Benefits) Deferred Income Tax 27.5 52.9 Net (Gains) / Losses on Disposal of Assets 0.8 (5.6) and Investments Non-Controlling 8.5 30.9 Interests and Other Cash Generated from / 782.5 883.6 (Used in) Operations Change in Working (130.9) (438.9) Capital Requirements Net Cash Generated from / (Used in) 651.6 444.7 Operating Activities Capital Expenditures (357.2) (518.9) Proceeds from Non-Current Asset 3.8 43.8 Disposals Acquisitions of (13.3) (3.3) Financial Assets Acquisition Costs of Consolidated (591.0) (245.0) Companies, Net of Cash Acquired Net Cash Generated from / (Used in) (957.7) (723.4) Investing Activities Net Increase / (Decrease) in 132.9 (39.8) Borrowings Capital Increase 34.4 115.8 Dividends Paid (156.1) (172.6) Share Buy-Back 0.4 (107.9) Net Cash Generated from / (Used in) 11.6 (204.5) Financing Activities Net Effects of Foreign (2.5) (36.4) Exchange Rate Changes Net Increase / (Decrease) in Cash and (297.0) (519.6) Cash Equivalents Bank Overdrafts at (0.1) (0.1) Period Beginning Cash and Cash Equivalents at Period 3,105.7 2,808.7 Beginning Bank Overdrafts at (0.1) (0.3) Period End Cash and Cash Equivalents at Period 2,808.7 2,289.3 End (297.0) (519.6) ANNEX III (b) CASH & FINANCIAL DEBTS IFRS Cash and Financial Debts Dec. 31, 2011 Dec. 31, 2012 € million restated* (audited) (audited) Cash Equivalents 1,890.1 965.7 Cash 918.6 1,323.6 Cash & Cash Equivalents (A) 2,808.7 2,289.3 Current Financial Debts 598.2 400.4 Non-Current Financial Debts 1,553.4 1,705.7 Gross Debt (B) 2,151.6 2,106.1 Net Cash Position (A - B) 657.1 183.2 (*) Restated with assessment of purchase price allocation of Global Industries ANNEX IV (a) BACKLOG not audited Backlog by Business Segment € million Dec. 31, Dec. 31, Change 2011 2012 Subsea 4,380.2 6,049.8 38.1% Onshore/Offshore 6,035.9 8,200.8 35.9% Total 10,416.1 14,250.6 36.8% ANNEX IV (b) CONTRACT AWARDS not audited The main contracts we announced during fourth quarter 2012 were the following: Subsea segment was awarded: *By Murphy Exploration & Production Company, USA, a lump sum contract for the development of the Dalmatian field, located in the Gulf of Mexico, at a water depth ranging from 530 to 1,800 meters, *In a consortium with China Offshore Oil Engineering Co. Ltd (COOEC), by China National Offshore Oil Corporation (CNOOC) Deepwater Development Limited, an engineering, procurement, installation and construction services contract for the South China Sea deepwater gas development project in the Panyu field, located about 150 kilometers South of Hong Kong, *By Total E&P Angola an engineering, procurement, construction and commissioning (EPIC) contract for the second phase of the Girassol Resources Initiatives (GirRI) development project, *A lump sum contract for the development of subsea infrastructure for the Shell Offshore Inc. Cardamom field located in the Gulf of Mexico, Garden Banks block 427, *By BG International Ltd (BG), a lump sum engineering, procurement, commissioning and installation (EPCI) contract for the development of the Starfish field, *By the Discovery System, a lump sum pipeline installation contract for Discovery’s South Timbalier Block 283 Junction Platform project. Onshore/Offshore segment was awarded: *In a joint venture formed by Odebrecht (40%), Technip (40%) and ICA Fluor (20%), a contract worth around €2.1 billion for the engineering, procurement and construction (EPC) of a petrochemical complex to be built in the Coatzacoalcos/Nanchital region, of the Mexican state of Veracruz, *By The Dow Chemical Company the front-end engineering and design (FEED) contract and cracking furnaces engineering and procurement services contract for a previously announced new large world-scale ethylene production plant to be located at Dow Texas Operations in Freeport, Texas, *By Shell Global Solutions (Malaysia), Sdn Bhd a framework agreement for offshore facilities in a region covering Asia, Australia, and New Zealand (“East region”), *By Anadarko Petroleum Corporation a letter of intent with instructions to begin the engineering, procurement, construction and transport of a 23,000-ton Truss Spar hull for their Heidelberg field development, *In a consortium with Asahi Kasei Chemicals Corporation Japan, by BASF S.E., a lump sum turnkey engineering, procurement and construction (EPC) contract, for the expansion project of a chlorine plant, *In a consortium with Samsung Heavy Industries (SHI), by Total E&P Norge, a contract for the Martin Linge development project located approximately 180 kilometers west of Bergen, Norway, in a water depth of 115 meters, Since December 31, 2012, Technip has also announced the award of following contracts, which were included in the backlog as of December 31, 2012: Subsea segment was awarded: *By GDF SUEZ E&P UK Limited, an engineering, procurement, installation and construction contract for the Juliet project, located 40 kilometers East of the Humberside estuary, at a water depth of approximately 20 to 60 meter, *By Sarawak Shell Berhad an engineering, procurement, construction, installation and commissioning contract for two new gas-export lines at the Laila and D12 fields in Malaysia. Onshore/Offshore segment was awarded: *By the Mosaic Company, the front-end engineering and design (FEED) contract, as well as preparation of the corresponding engineering, procurement and construction (EPC) proposal, for a new ammonia plant under consideration by the global crop nutrient company, *By Westlake Chemical Corporation engineering and procurement contract for the expansion and modernization of the ethylene cracking furnaces in Calvert City, Kentucky, *In a joint venture with Malaysia Marine and Heavy Engineering Sdn Bhd (MMHE), by Sabah Shell Petroleum Company Ltd (SSPC), a substantial contract for the engineering, procurement and construction of a tension leg platform (TLP) for the TLP Malikai Deepwater Project, *In a consortium with Construcciones Industriales Tapia, by Petróleos Mexicanos (PEMEX) through its subsidiary PEMEX Refinación, a contract for the revamp of one of the conversion unit of the Ing. Héctor R. Lara Sosa refinery, located in Cadereyta, Mexico. Since December 31, 2012, Technip has also announced the award of following contract, which was not included in the backlog as of December 31, 2012: Subsea segment was awarded: *By Sabah Shell Petroleum Company Ltd (SSPC) an important subsea pipelines contract for the Malikai Deepwater project, located offshore Sabah, at a water depth of approximately 650 meters, *By Shell UK Limited, an engineering, procurement, installation and construction contract for the Gannet F Reinstatement project, located in the North Sea, 180 kilometers east of Aberdeen, at a water depth of 95 meters. Onshore/Offshore segment was awarded: *By JBF Petrochemicals, a wholly-owned subsidiary of JBF Industries Ltd, an important contract for a 1.25 million tons per year latest-generation purified terephthalic acid (PTA) unit, to be located in the Special Economic Zone in Mangalore, India, *In a consortium with AFCONS Infrastructure Ltd and TH Heavy Engineering Berhad, a contract by Oil & Natural Gas Corporation Ltd (ONGC), worth approximately €220 million (Technip share: about €50 million), for the Heera Redevelopment (HRD) process platform project in the Arabian Sea, at approximately 70 kilometers south-west of Mumbai, India, *Awarded by BP Angola an important five-year contract for engineering and modification services for the existing Greater Plutonio and Plutao, Saturno, Venus and Marte (PSVM) floating production storage and offloading (FPSO) units, located in Blocks 18 and 31 offshore Angola. Contact: Technip Analyst and Investor Relations Kimberly Stewart, +33 (0)1 47 78 66 74 firstname.lastname@example.org or Chuan Wang, +33 (0)1 47 78 36 27 email@example.com or Public Relations Christophe Bélorgeot, +33 (0)1 47 78 39 92 or Floriane Lassalle-Massip, +33 (0)1 47 78 32 79 firstname.lastname@example.org or Technip’s website http://www.technip.com or Technip’s IR website http://investors-en.technip.com or Technip’s IR mobile website http://investors.mobi-en.technip.com
Technip’s Fourth Quarter and Full Year 2012 Results
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