Gaztransport & Technigaz S.A.

Good morning, ladies and gentlemen. I'm very pleased to be with you today to present to you the 2023 results of GTT. Before that, I would like to spend some seconds in watching a short movie on the past 10 years. As today, we are celebrating the 10th anniversary of the IPO of GTT. So let's watch that. Well, let's begin with some key highlights about the 2023 results of GTT. Our revenues have increased by 39%. Our EBITDA has increased by 46% and our order book, which is 1 billion 800 million euros. In fact, for orders, it has been the second record year for GTT after year 2022. Some other key highlights. Year 2023 has been a record year for new liquefaction facilities with 56 million tons decided. We, GTT, we announced plenty of AIPs, plenty of new technologies validated by classification societies. Another key highlight, the turnover of Elogen has increased by 116%. So let's look at our strategic roadmap. We have three blades to the GTT propeller, three blades which are propelling GTT into the future. The first one is cryogenic technologies. We keep on improving these technologies. On the existing technologies, we keep on improving them. We are extending them with new technologies such as the NO96 Super Plus or the NextOne system. We are also extending that for energy as a fuel or for transporting liquid hydrogen. The second blade, it's services. We have core services for energy carriers, and our business there is increasing. And we have also digital services that we are expanding, and my colleagues from the EXCOMM will present that to you later. We are also working on the transformation And thanks to new developments, developments on electrolyzers with Elogen, on carbon capture, on ammonia storage and ammonia transport, on gas management technologies. And we are also looking at new developments beyond that, thanks to our venture capital tool, GTT Venture. And for example, recently we invested into a wind cell company named Bound for Blue. So with these three blades, we can propel the company into what is our ambition, becoming a company providing technology key technology, solutions, services, systems for a sustainable world. We have really the determination to become a very serious partner for our stakeholders on ESG. And we published our ESG roadmap in February. We've been ranked by Sustainalytics at 18.8, which is a very good mark, which says that we have a very low risk in terms of ESG. CDP is rating us at the B level, so we are receiving some strong recognition from the agencies ESG agencies. And this is at the core of our raison d'être, and we are very determined in that matter. Now, I would like to leave the floor to Jean-Baptiste Boutellier, VP Innovation, who is going to talk about R&D and innovation.

Thank you, Philippe. So for this focus on R&D and innovation, in addition to the 64 patents which have been filed by GTT in 2023, I would like to present our roadmap and some achievements. First, on the core business. After the launch of SuperPlus, we now have two vessels under construction with this technology, and we received an additional order for a very large LNG carrier with this technology this year. So after this, we are continuing our development of new containment system. We are actively working on next one. We concluded the test end of last year, and we are actively working towards the general approval from classification society. After bringing added value to the market with innovative design of LNG carrier with three tanks, LNG carrier with a capacity of 174,000 cubic meter, we are continuing and developing a new innovative design of 200,000 cubic meter with slow steaming in order to reduce the CO2 footprint of the LNG which is transported by sea. We are also working on an active system, EFICUL, and in parallel we are continuously improving the performance of our containment system. In order to support the diversification strategy of GTT, we are working on three strategic axes. The first one is LNG as a fuel, the second one is a digital solution, and the third one is a zero-carbon solution. For LNG as a fuel, we continue to work on Recycle. Recycle is an active system dedicated to LNG fuel ships. This system has been ordered on several vessels and two ships have been delivered already. The ships are sailing with the system running. For the LNG as a fuel, we are adapting the solution for core business, for new vessel segment, typically VLCC, very large crude carrier, and PCTC, pure car and truck carriers. In order to further reduce the CO2 emission of LNG fuel ships, we are also developing carbon capture on board. The second axis to support the diversification strategy of GTT is the digital solution. Anwar will give you more detail on this in a few minutes. But the main achievement in 2023 has been the launch of our weather routing service. We are also developing a solution to optimize the maintenance and the performance of the vessel. And we have also a project to measure the emission of the vessel. The third axis to support GTT diversification strategy is zero-carbon solution. On this axis, we are developing liquid hydrogen solution and ammonia solution. For liquid hydrogen, we received approval in principle from Class NK, the Japanese Classification Society, and we received approval in principle from BV, and I will get in more detail on this in a few seconds. Here we are working on the containment system, but also on the vessel design. For ammonia, we have several projects for onshore storage, but also for sea transportation. In the next slide, I would like to have a focus on a very large liquid hydrogen carrier concept. We worked in 2023 together with Total Energy, with LNG Marin, a ship designer, and Bureau Veritas, classification society. And together, we reached a new milestone in liquefied hydrogen transport by receiving two approvals in principle from Bureau Veritas. The first one is on the containment system itself, and the second one, so this containment system is a membrane technology, of course, And the second approval in principle is about the preliminary design of the very large liquid hydrogen carrier. The capacity of the vessel is 150,000 cubic meters. With these two approvals, we are paving the way for safe maritime transport of hydrogen, and we are demonstrating the scalability and the benefit of the membrane containment system for liquid hydrogen. I now leave the floor to Philippe for more detail on the strategy. Thank you.

Thank you, Jean-Baptiste. Let's go into more details on what is supporting our business and to begin with the energy market. There are three switches on the energy market. The first one is a switch from coal to gas. In fact, coal is still representing 30%. of the worldwide energy mix. It's a lot. And you know that burning coal generates twice more CO2 than burning gas. So if we want to reduce the CO2 footprint of the planet, we've got to reduce that as quickly as possible. And an easy, a very pragmatic solution, an affordable solution, is to switch to gas. In fact, the latest COP, COP28, has recognized gas as a part of the solution for reducing the CO2 emission. The second switch is a switch from gas to LNG. Now we know that gas pipes are not only rendered supplier and customer prisoners from each other, but also are very vulnerable to international tensions. So ships allow to have many providers of LNG and are much less vulnerable than static pipes. The third switch is a switch from old ships to new ships. Under the pressure of regulations on emissions, owners will have to renew their fleet with more modern ships, having a CO2 footprint twice smaller than the old ones. So that is determining a strong LNG growth over the years to come. We can see on this graph the expectations from BP or from Shell, but also from an independent analyst, Wood Mackenzie. For the remaining part of the decade, we expect an average growth between 4.9% and 5.7%. It's a lot. In the next decade, Wood Mackenzie is anticipating that we are going to need 100 million tons of energy production in addition to what will have been decided by the end of the current decade. And if we look at the contracts signed today, we can see that they are fully justifying the developments which are currently contemplated. In fact, 2023 has been an excellent year in terms of FID with 56 million tons per annum which have been decided. It's the second best year and it comes after years, all the other excellent years, 2022 and 2021. So numerous projects are in line for new FIDs in the near future. You will see on this graph these projects and also the quantity of energy which should be produced by these projects and how they are covered by contracts from customers. We could add that yesterday Qatar has announced that they are going to further extend their Northfield Pass with a new development which is going to add 16 million tonnes per annum. So already year 2024 is beginning with a very important FID with 16 million tonnes per annum. That is determining requirements for energy carriers. And in the current situation, before the 16 million tonne per annum decided yesterday, we are considering that the market for these new projects is needing 95 energy carriers in order to satisfy the need for transporting these energy quantities. So another driver for the development of the energy carrier requirements, it's the edging fleet. We know that, and we can see on the left-hand part of the slide, that there are close to 60 ships which have been built in the 20th century. There are more than 230 ships which are still steam turbines burning twice more fuel than more modern ships. And something like... More than, in fact, 50%, close to 60% ships with boil-off, which are very significantly higher than those generated by new ships. So under the pressure from regulations, these ships will have to be replaced in the years to come. We think that it will lead to an acceleration of the vessels scrapping in the years to come. For the time being, it has not really begun. Few ships have been scrapped, but we expect that will significantly increase in the years to come. So that is determining the estimates we have for the next 10 years. And for LNG carriers, in fact, we were between 400 and 450 ships. Now we are beyond 450 ships. You know that we are always a little bit careful on our estimates, but we consider that we are well above that level. In terms of FNG, we were up to five units in the next 10 years. We are now up to 10 units for the next 10 years. We did not modify our other estimates. On LNG as a fuel, we are still saying that the only solution available today for reducing the emissions from ships is LNG. LNG is available. LNG is affordable. And when we look at the solutions that people are talking of, These solutions, like methanol or ammonia, green methanol, green ammonia, are not available and are significantly more expensive, may cost four times or five times more than energy. So we think once more that with this pragmatic approach, the shipping industry has got to reduce its CO2 footprint. And a good manner to do it right now is to switch to LNG. Well, before leaving the floor to Anwar, I would like to have short words on our services. I would like to remind you of the strategic importance of the set of services we developed over the years. Now we have a full range of these services, which is really... Targeting at answering to the needs of ship owners wherever they are. Energy carriers, ship owners, owners of energy carriers, owners of container ships, owners of energy-fueled ships. And that allows to work ahead of a decision. That allows us to accompany the owners in the inception of their tonnage and in the maintenance of their tonnage. Anouar?