Technip Energies Nv

Hello and welcome to Technip Energy's financial results for the first nine months of 2023. On the call today, our CEO Arnaud Piertan and our CFO Bruno Biber will first present our business and financial highlights, and this will be followed by the outlook. After this, we'll move to Q&A. Before we start, I would encourage you to take note of the forward-looking statements on slide two. I'll now pass the call over to Arnaud.

Thank you, Phil, and welcome everyone to our financial results presentation for the first nine months of 2023. Our solid results here today reflects our team's relentless focus on execution, and we reaffirm our full-year outlook. While the year-over-year revenue comparison is impacted by the Article NG2 project exit, Notwithstanding, we achieved 30 basis points of recurring EBIT margin accretion on revenues of €4.4 billion. Looking at the segments, the third quarter marks an inflection point for project delivery as revenues improved sequentially and margins remained high. As a result of our strategic focus, the TPS segment is delivering outstanding revenue and EBIT growth. After nine months, TPS revenue and EBIT have exceeded that of the full year 2022. Commercial momentum was sustained in TPS with orders keeping pace with a significantly improved top line, supporting the long-term growth trajectory of the segment. Finally, our business outlook remains strong and, as I will discuss later, Our early engagement and tendering levels, notably in LNG and energy transition markets, enables us to selectively add to backlog, which closed the quarter at €18 billion, up approximately 30% versus last year. Turning to operational highlights for the third quarter, where the execution of our world-class portfolio of projects, as well as TPS activities, are yielding strong financial results. This includes the provisional acceptance certificate on corral floating LNG. And in addition, while it is not on the slide, we also received the practical completion certificate on the gas FPSO for the carriage project. Overall, solid progress, which reflects our team's resolute focus on delivery and effective customer engagement. Turning to commercial successes and strategic highlights. We secured several new orders in energy transition markets, including a hydrogen production unit integrating our proprietary SMR technology for BP's Quinana biorefinery in Australia. This will be executed under an EPS commercial model encompassing engineering, procurement, and modular fabrication. In addition, notable services awards were received in sustainable fuels and green hydrogen, And we secured multiple studies for Canopy by 10, our modular carbon capture solution that, in aggregate, represents more than 12 million tons per annum of CO2 capture potential. As you know, Technip Energies is a firm believer in the power of collaboration in achieving the world's climate ambitions. In the quarter, we strengthened our global alliance with LandaJet to integrate our Hummingbird technology in their alcohol-to-jet process to produce sustainable aviation fuel. The world's first commercial plant at Freedom Pines in the U.S. is soon to be commissioned and should lead to LandaJet and TEN working together on many future SAF projects. We also recently broke ground on the pilot plan for recycled polyethylene, RPET, with our partners IBM and Under Armour. The plan, which is scheduled to come on stream in 2024, will serve to validate the technology in view of its commercialization at an industrial scale. Separately, in addition to these partner initiatives, we are investing in R&D with expenditure expected to grow this year by 30% versus 2022, to a level equivalent to 1% of company revenues. Before passing over to Bruno, I do want to make a few comments about a recent article published in the French media regarding our involvement in the Arctic LNG2 project. First, In executing an orderly exit from the Article NG2 project in H1 2023, Technip Energies complied with, in order of priority, international sanctions and its contractual obligations. Second, a contract creates rights and obligations between parties, and for as long as the Article NG2 contract remained in force, Technip Energies was obligated to carry out all contractual activities that were not prohibited by the sanctions. Third, by withdrawing completely from Russia and exiting from the Article NG2 project in an orderly manner, we have in fact gone beyond the strict application of sanctions, halting all activities in Russia

not merely dues covered by sanctions.