TechnipFMC : Investor Relations overview - April 2024

Investor Relations Overview

April 2024

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 Energy 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 "commit," "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 actual results to differ materially from our historical experience and our present expectations or projections, including unpredictable trends in the demand for and price of oil and natural gas; competition and unanticipated changes relating to competitive factors in our industry, including ongoing industry consolidation; 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 and clearing 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 reliance 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 and maritime conflicts 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 to environmental 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, weather, and other climatic conditions and unfavorable currency exchange rates; risk in connection with our defined benefit pension plan commitments; 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 December 31, 2023 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.

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Contents

1. Operational and financial highlights
2. Company overview

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Section 1:

Operational and financial highlights

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Q1 2024 Operational summary

Highlights

• Total Company inbound of $2.8 billion; Subsea orders of $2.4 billion, representing a book-to-bill of 1.4
• Subsea inbound driven by new technologies that unlock opportunities in both new and mature offshore basins
• Solid operational performance drives adjusted EBITDA of $257 million when excluding foreign exchange
• Shareholder distributions of $172 million; expect full-year growth to exceed 70% versus 2023

Takeaways

FirstiEPCI™ award for

subsea processing to capture CO2 directly from the well stream (Petrobras Mero 3 HISEP®)

FirstiEPCI™ award to utilize a 20,000 psi-rated subsea production system

(Shell Sparta)

FirstiEPCI™ award with

all-electric subsea system for carbon capture and storage

(Northern Endurance Partnership)

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Q1 2024 Financial results

Sequential highlights

• Total Company adjusted EBITDA of $257 million, excluding foreign exchange:
• • Subsea increased due to higher project volume, driven in part by higher offshore activity in Brazil, as well as improved earnings mix from backlog
  • Surface Technologies declined due to timing of the disposal of the Measurement Solutions business and lower activity in North America
• Cash flow from operations of $(127) million impacted by seasonal working capital outflow; free cash flow of $(179) million
• Completed sale of Measurement Solutions business for proceeds of $186 million
• Total shareholder distributions of $172 million, including share repurchases of $150 million

Segment results

$2.8B

Inbound orders

$13.5B

Backlog

$257M

Adjusted EBITDA

excluding F/X

$(179)M

Free cash flow

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Subsea opportunities in the next 24 months1

BP

Kaskida

BP

Tiber

SHELL

Leopard

REPSOL

Block 29

EXXONMOBIL Guyana Project 7

TOTALENERGIES

Block 58

EQUINOR

Fram Sør

EQUINOR

Johan Sverdrup Ph 3

CHEVRON

Aphrodite

ENERGEAN

Katlan

MELLITAH

Bahr EssalamONGC

KG-DWN-98/2 Cluster 3

ENI

Northern Hub

ENI

Gendalo / Gandang

ENI

Maha

PETROBRAS Sergipe Deep Water

PETROBRAS

Buzios 9

PETROBRAS

Buzios 10

WOODSIDE Calypso

PETROBRAS Atapu 2

SHELL

Gato Do Mato

SHELL

Bonga SW

SHELL

Bonga North

ENI

Baleine Ph 3

TOTALENERGIES ACCE

TOTALENERGIES Preowei

TOTALENERGIES Cameia

ENI

Coral North

PETRONAS

Kelidang

PETRONAS

Bestari

WOODSIDE

Browse Phase 1

PETROBRAS Buzios 11

$250M to $500M $500M to $1,000M above $1,000M

1 April 2024 update; project value ranges reflect potential subsea scope

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TechnipFMC

2024 Full-year financial guidance1 As of February 22, 2024

Subsea

• Revenue in a range of $7.2 - 7.6 billion
• Adjusted EBITDA margin in a range of 15.5 - 16.5%

Surface Technologies2

• Revenue in a range of $1.2 - 1.35 billion
• Adjusted EBITDA margin in a range of 13 - 15%

• Corporate expense, net $115 - 125 million (includes depreciation and amortization of ~$3 million; excludes charges and credits)
• Net interest expense $70 - 80 million
• Tax provision, as reported $280 - 290 million
• Capital expenditures approximately $275 million
• Free cash flow3 $350 - 500 million (includes payment for legal settlement of ~$170 million)

1Our guidance measures of adjusted EBITDA margin, free cash flow and adjusted corporate expense, net are non-GAAP financial measures. We are unable to provide a reconciliation to comparable GAAP financial measures on a forward-looking basis without unreasonable effort because of the unpredictability of the individual components of the most directly comparable GAAP financial measure and the variability of items excluded from each such measure. Such information may have a significant, and potentially unpredictable, impact on our future financial results.

2In November 2023, the Company announced an agreement to sell the Measurement Solutions business. The sale was completed on March 11, 2024; financial results prior to the completion of the sale are included in full-year guidance for Surface Technologies.

3Free cash flow is calculated as cash flow from operations less capital expenditures.

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Q1 2024 Cash flow and net debt

(in $ millions)	Free cash flow
$(179)M

	(127)	186	(172)
		(52)
952			(91)
			697

Cash and cash	Cash flow	Capital	Proceeds from	Shareholder	All other	Cash and cash
equivalents at	from operating	expenditures	sale of	distributions		equivalents at
Dec 31, 2023	activities		Measurement			Mar 31, 2024
			Solutions

Net Debt

(In millions, unaudited)

	March 31,
	2024
Cash and cash equivalents	$	697
Short-term debt and current portion
of long-term debt		(137)
Long-term debt, less current portion		(887)
Net debt	$	(327)

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Backlog scheduling provides visibility

Subsea1

as of March 31, 2024

2026+	2024
$4.3B	$4.3B

$12.5

billion

2025

$3.9B

1 Backlog does not capture all revenue potential for Subsea Services

Surface Technologies

as of March 31, 2024

2024 $1.0 $422M

2025+ billion $615M

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