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Long-Term Solid Partner Thierry Pilenko, Chairman and CEO UBS Oil and Gas Services Conference – November 16, 2009 Photos: Technip Photo library, Jean Gaumy/Magnum, Harry Gruyaert/Magnum, Patrick Zachmann/Magnum, all rights reserved

Long-Term Solid Partner - Technip · Long-Term Solid Partner Thierry Pilenko, ... Al Jubail Contract strategy: • Well-known client and country ... Al Shaheen, Qatargas & Rasgas

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Page 1: Long-Term Solid Partner - Technip · Long-Term Solid Partner Thierry Pilenko, ... Al Jubail Contract strategy: • Well-known client and country ... Al Shaheen, Qatargas & Rasgas

Long-Term Solid Partner

Thierry Pilenko, Chairman and CEO UBS Oil and Gas Services Conference – November 16, 2009

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Page 2: Long-Term Solid Partner - Technip · Long-Term Solid Partner Thierry Pilenko, ... Al Jubail Contract strategy: • Well-known client and country ... Al Shaheen, Qatargas & Rasgas

2

Safe Harbor

his 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 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.

T

Page 3: Long-Term Solid Partner - Technip · Long-Term Solid Partner Thierry Pilenko, ... Al Jubail Contract strategy: • Well-known client and country ... Al Shaheen, Qatargas & Rasgas

3

Technip at a Glance

Year-to-Date Performance

Differentiating Strengths & Attributes

Looking Forward

Contents

I.

II.

III.

IV.

Page 4: Long-Term Solid Partner - Technip · Long-Term Solid Partner Thierry Pilenko, ... Al Jubail Contract strategy: • Well-known client and country ... Al Shaheen, Qatargas & Rasgas

4

Technip at a glanceI.

Page 5: Long-Term Solid Partner - Technip · Long-Term Solid Partner Thierry Pilenko, ... Al Jubail Contract strategy: • Well-known client and country ... Al Shaheen, Qatargas & Rasgas

5

Technip Today

Worldwide leader in engineering, project management and technologies, serving the oil & gas industry for 50 years► 23,000 employees in 46 countries, ► Industrial assets on 5 continents, a fleet of 17 vessels (19 vessels by 2011)► 2008 revenues: €7.5 billion

Subsea

Offshore

Onshore

Solutions across the value chain

Page 6: Long-Term Solid Partner - Technip · Long-Term Solid Partner Thierry Pilenko, ... Al Jubail Contract strategy: • Well-known client and country ... Al Shaheen, Qatargas & Rasgas

6

A Diversified and Well-Balanced Portfolio of Businesses

Onshore

LNG / Gas Processing Ethylene

Heavy OilUpgradesFurnaces

HydrogenRefining

Offshore

Topsides &Fixed Platforms

Floaters

Floatover

Subsea Pipelay

Installation

Flexible & Rigid PipesUmbilicals

DeepwaterEngineering

Page 7: Long-Term Solid Partner - Technip · Long-Term Solid Partner Thierry Pilenko, ... Al Jubail Contract strategy: • Well-known client and country ... Al Shaheen, Qatargas & Rasgas

7

Two Complementary Business Models

Project management skillsProprietary technologies & know-howSolid Balance SheetStrong footprint with both IOCs, NOCs & Independents

OFFSHORE ONSHORE

Low fixed assets

Negative working capital

High degree of outsourcing & sub-contracting

SUBSEA

Capital intensive: fleet and manufacturing units

Low working capital

Vertical integration from engineering to manufacturing & construction

Page 8: Long-Term Solid Partner - Technip · Long-Term Solid Partner Thierry Pilenko, ... Al Jubail Contract strategy: • Well-known client and country ... Al Shaheen, Qatargas & Rasgas

8

Year-to-Date PerformanceII.

Page 9: Long-Term Solid Partner - Technip · Long-Term Solid Partner Thierry Pilenko, ... Al Jubail Contract strategy: • Well-known client and country ... Al Shaheen, Qatargas & Rasgas

9

September Year-to-Date ResultsIncome Statement

EPS +1.4%€2.98 €3.02

Revenue(10.1)%

5,5735,012

EBITDA(1)+12.3%611

686

Operating Income(2)

+10.4%473

522

Net Income+2.9%314

323

Sept. YTD 2008 Sept. YTD 2009

(1) Calculated as Operating Income from recurring activities pre depreciation and amortization(2) From recurring activities

€ million, except EPS (not audited)

Page 10: Long-Term Solid Partner - Technip · Long-Term Solid Partner Thierry Pilenko, ... Al Jubail Contract strategy: • Well-known client and country ... Al Shaheen, Qatargas & Rasgas

10

Jubilee

Backlog Renewal:Development of Jubilee field in Ghana

► Two contracts for Engineering, Fabrication and Installation

► Client: Tullow Ghana Limited; Technical Operator - Kosmos Energy

► Water depth between 1,200 and 1,700 meters

► Project execution involves Technip’scenters in Paris, Houston and West Africa

► Fabrication of flexible pipes in Le Trait, France

► Mobilization of Deep Blue and DeepPioneer for offshore campaign

Jubilee Field

Ghana

Page 11: Long-Term Solid Partner - Technip · Long-Term Solid Partner Thierry Pilenko, ... Al Jubail Contract strategy: • Well-known client and country ... Al Shaheen, Qatargas & Rasgas

11

Backlog Renewal:First Mid-Size LNG in China

0 meter505001,5002,5004,0006,0009,000

0 500 km

Beijing

Shanghai

Yinchuan, Ningxia LNG

► 2 trains of 400,000 tons per year each

► Air Products liquefaction technology

► Domestic distribution of LNG by road

► Engineering, procurement and construction management (EPCM) +supply of key equipment

► Largest LNG in China

Yinchuan

Page 12: Long-Term Solid Partner - Technip · Long-Term Solid Partner Thierry Pilenko, ... Al Jubail Contract strategy: • Well-known client and country ... Al Shaheen, Qatargas & Rasgas

12

Backlog Renewal:New Jubail Export Refinery in Saudi Arabia

Al Jubail

► Contract strategy:• Well-known client and country• Conducted front-end engineering design

(FEED) for past 3 years• Early commitment for major equipment and

materials• Early mobilization of construction subcontractor

► Refinery with high technological content, where technologies are reliable and well known to Technip

► Project execution by Technip’s operating centers in Rome and Paris, with assistance from Middle East offices

► Order intake of ~US$3.2 billion

Al Riyadh

Al Jubail

Page 13: Long-Term Solid Partner - Technip · Long-Term Solid Partner Thierry Pilenko, ... Al Jubail Contract strategy: • Well-known client and country ... Al Shaheen, Qatargas & Rasgas

13

Synergies of Technip’s broad ranging strengths in all three business segments

Backlog Renewal: Floating LNG

Floating Liquefied Natural Gas: An innovative solution

► FLNG is a commercially attractive and environmentally sensitive approach of offshore gas field

► Contract awarded by ShellConsortium: Technip (leader) and Samsung• FEED on a reimbursable basis• Master agreement for design, construction,

installation of multiple FLNG, facilities including riser system interface, for up to 15 years

► Unique Combination of Skills and Technology:• LNG process• Offshore facilities• Subsea infrastructures

Page 14: Long-Term Solid Partner - Technip · Long-Term Solid Partner Thierry Pilenko, ... Al Jubail Contract strategy: • Well-known client and country ... Al Shaheen, Qatargas & Rasgas

14

Segments Regions Markets

Backlog: Segments, Regions and Markets

Subsea

Offshore

Onshore

2008

€7,541

48% 56%

46%38%

6%6%

Sept. 30, 2009 €7,541 million

Sept. 30, 2009 €7,541 million

2009

€7,717

Europe / Russia Central Asia

Africa

AsiaPacific

Americas

Middle East

41%

19%

20%

8%12%

1%

34%

4%

41%

10%

10%

Deepwater

Petrochems Other

Gas / LNG

Refining

ShallowWater

Sept. 30, 2009

Page 15: Long-Term Solid Partner - Technip · Long-Term Solid Partner Thierry Pilenko, ... Al Jubail Contract strategy: • Well-known client and country ... Al Shaheen, Qatargas & Rasgas

15

Differentiating Strengths & Attributes

III.

Page 16: Long-Term Solid Partner - Technip · Long-Term Solid Partner Thierry Pilenko, ... Al Jubail Contract strategy: • Well-known client and country ... Al Shaheen, Qatargas & Rasgas

16

Technip’s Worldwide Presence

Aberdeen

ParisSt. John’s

Luanda

Rio de Janeiro

Houston

Mumbai

Kuala Lumpur

Perth

Lagos

Vitória

Los Angeles

Barra do Riacho

Caracas

Dande

Lobito

Port Harcourt

BarcelonaLyon

RomeAthens

The HagueDüsseldorf

St. PetersburgEvanton

LondonNewcastle

Abu DhabiDoha

Chennai Bangkok

Singapore

JakartaBalikpapan

Shanghai

Pori

Le Trait

Bogota

New Delhi

Regional Headquarters / Operating centers

Spoolbases

Manufacturing plants (flexible pipelines)Manufacturing plants (umbilicals)Construction yard

Tanjung Langsat(operational in 2010)

Calgary

Monterrey

Oslo

Orkanger

Stavanger

Services base

Baku

Angra Porto

Page 17: Long-Term Solid Partner - Technip · Long-Term Solid Partner Thierry Pilenko, ... Al Jubail Contract strategy: • Well-known client and country ... Al Shaheen, Qatargas & Rasgas

17

Technip’s Strong Relationships with both IOCs & NOCs

Source: Technip

Recent projects examples

PazFlor, Akpo, Yemen LNG, Qatargas 2

Block 31, Shah Deniz, Greater Plutonio, Secco PE

Tahiti, Greater Gorgon, Ras Laffan Ethylene

North Belut, Q Chem, Qatargas 3 & 4

East Area, Qatargas 2, Rasgas 3

FLNG, Perdido, Na Kika, Qatargas 3 & 4

Das Island Gas, NEB, Takreer refinery

Akpo, Agbami, Bonny Island

Cascade & Chinook, P51, P52 & P56, Canapu

Kikeh, Cili Padi, Petlin & Kertheh LDPE

Al Shaheen, Qatargas & Rasgas

Khursaniyah, Al Jubail

Gimboa, Dalia, Kizomba C

Gasprocessing /

LNG

Refining,Hydrogen,Heavy oils PetrochemsSubsea

Offshorefacilities

Page 18: Long-Term Solid Partner - Technip · Long-Term Solid Partner Thierry Pilenko, ... Al Jubail Contract strategy: • Well-known client and country ... Al Shaheen, Qatargas & Rasgas

18

Continuous Investment in Key Assets

Skandi Vitoria

► New deepwater flexlay vessel (delivery by 2010)

► First such Brazilian built vessel

► Long Term Contract with Petrobras(charter 4 years + option 4 years)

NPV

► New deepwater rigid/umbical/flexible lay vessel (delivery by 2011)

► High transit speed for rapid deployment worldwide (20 knots)

► Exceptional product storage capacities (twin reels of 2,800 tons each)

Page 19: Long-Term Solid Partner - Technip · Long-Term Solid Partner Thierry Pilenko, ... Al Jubail Contract strategy: • Well-known client and country ... Al Shaheen, Qatargas & Rasgas

19

Accelerating our Fleet Renewal

Reinforce our competitiveness and leadership with our liquid balance sheet

Apache II: State-of-the-art rigid pipelay & construction vessel: strengthening Technip’s abilities in harsh environments & deepwater

Page 20: Long-Term Solid Partner - Technip · Long-Term Solid Partner Thierry Pilenko, ... Al Jubail Contract strategy: • Well-known client and country ... Al Shaheen, Qatargas & Rasgas

20

Vertical Integration: offering Seamless Services and Leading Technology

20

Cascade & Chinook: PetrobrasGulf of Mexico

► World record depth for Hybrid Free Standing Riser in 2,500 – 2,640 meters of water

► Broad geographical reach:• Engineering teams from Offshore and

Subsea divisions from Technip’s offices in Houston, Brazil, Paris, Canada & UK

• Fabrication of buoyancy cans, stress joints and suction piles at Pori

• Fabrication of the flexible pipes at Le Trait

► Technically challenging:• High-pressure dynamic flexible pipes• 5 buoyancy cans. 700 ton net uplift • Installation before arrival of the FPSO• Multi-vessel installation (incl. Deep Blue /

Deep Pioneer)• Only 28 months from award to completion

► Status: Installation ongoing – on schedule

Page 21: Long-Term Solid Partner - Technip · Long-Term Solid Partner Thierry Pilenko, ... Al Jubail Contract strategy: • Well-known client and country ... Al Shaheen, Qatargas & Rasgas

21

Technical ObjectivesPerdido SPAR: Shell

Technological Solutions to address ever Deeper Water

• Spar operating at the deepest water depths: 2,350 meters

• Subsea pipelines from our spool base in Mobile, Alabama and umbilicals manufactured at Channelview, all installed by the Deep Blue to 2,961 meters depth

Towards 3,000 meters and beyondSource: Technip

Extend flexible risers water depth and pressure capability to 3,000 meters and beyond through innovative solutions• Qualify up to 11” flexible pipe

with offshore testing ongoing

Page 22: Long-Term Solid Partner - Technip · Long-Term Solid Partner Thierry Pilenko, ... Al Jubail Contract strategy: • Well-known client and country ... Al Shaheen, Qatargas & Rasgas

22

Continuous develop of our Onshore technologies

►Reinforcing our proprietary technology• New tube design that augments Ethylene plant

efficiency

• Developed Advanced Reactor Tube & regenerative reforming increasing Hydrogen unit capacity

• Boosting refining efficiency and enhancing Hydrogen and CO2 management

►Acquiring new technologies• Improving Ethylene furnace technology: HeliSwirl

► Further developing our alliances• Air Products: 15 year global agreement on Hydrogen,

renewed in 2009• Ineos: new polystyrene technologies alliance• Geogreen: Carbon Capture and Storage

Page 23: Long-Term Solid Partner - Technip · Long-Term Solid Partner Thierry Pilenko, ... Al Jubail Contract strategy: • Well-known client and country ... Al Shaheen, Qatargas & Rasgas

23

Looking ForwardIV.

Page 24: Long-Term Solid Partner - Technip · Long-Term Solid Partner Thierry Pilenko, ... Al Jubail Contract strategy: • Well-known client and country ... Al Shaheen, Qatargas & Rasgas

24

Full Year 2009 Outlook*

►Group revenue towards €6.4 billion at current exchange rates

► Subsea revenue to show moderate growth

► Subsea operating margin towards 18%

►Confirm year-on-year improvement of the Onshore / Offshore combined operating margin

*based upon current exchange rates

Page 25: Long-Term Solid Partner - Technip · Long-Term Solid Partner Thierry Pilenko, ... Al Jubail Contract strategy: • Well-known client and country ... Al Shaheen, Qatargas & Rasgas

25

7,540.74,241.3458.32,841.1Total

2,378.21,717.4126.1534.72011+

3,785.11,883.9196.81,704.42010

640.0

Onshore

1,377.4135.4602.02009 (3 months)

GroupOffshoreSubsea

Sept. 30, 2009 Backlog Estimated Scheduling

€ million

Page 26: Long-Term Solid Partner - Technip · Long-Term Solid Partner Thierry Pilenko, ... Al Jubail Contract strategy: • Well-known client and country ... Al Shaheen, Qatargas & Rasgas

26

Technip’s differentiating attributes

►Well balanced: regions, clients and markets

► First class technology, engineering and project management skills

► Subsea vertically integrated

► Proximity to local clients

► Strong balance sheet with €1,676 million Net Cash

►Continuous investment in key assets and R&D

Technip is a Long-Term Solid Partner

Page 27: Long-Term Solid Partner - Technip · Long-Term Solid Partner Thierry Pilenko, ... Al Jubail Contract strategy: • Well-known client and country ... Al Shaheen, Qatargas & Rasgas

27

Investor Relations

For more information, please contact:

► Kimberly Stewart

Tel.: +33 (0)1 47 78 66 74e-mail: [email protected]

► Antoine d’Anjou

Tel.: +33 (0)1 47 78 30 18e-mail: [email protected]

Page 28: Long-Term Solid Partner - Technip · Long-Term Solid Partner Thierry Pilenko, ... Al Jubail Contract strategy: • Well-known client and country ... Al Shaheen, Qatargas & Rasgas

28

Technip

ISIN: FR0000131708Bloomberg: TEC FP Reuters: TECF.PA SEDOL: 4874160

OTC ADR ISIN: US8785462099ADR: TKPPK

Page 29: Long-Term Solid Partner - Technip · Long-Term Solid Partner Thierry Pilenko, ... Al Jubail Contract strategy: • Well-known client and country ... Al Shaheen, Qatargas & Rasgas

29

Operating Income*

Backlog

Order intake

Subsea Quarterly Figures€ million (not audited)

* from recurring activities

594631529

658

1Q 09 2Q 09 3Q 093Q 08

Mar. 312009

Sept. 302008

June. 302009

3,1163,4232,841

3,565

Sept. 302009

Revenue848

616746789

1Q 09 2Q 09 3Q 093Q 08

EBITDA

242191

254245

1Q 09 2Q 09 3Q 093Q 08

24%24%28%27%

1Q 09 2Q 09 3Q 093Q 08

159118 136161

1Q 09 2Q 09 3Q 093Q 08

19%19% 18%20%

1Q 09 2Q 09 3Q 093Q 08

Page 30: Long-Term Solid Partner - Technip · Long-Term Solid Partner Thierry Pilenko, ... Al Jubail Contract strategy: • Well-known client and country ... Al Shaheen, Qatargas & Rasgas

30

Onshore / Offshore Combined Quarterly Figures€ million (not audited)

Revenue

884953 9651,144

1Q 09 2Q 09 3Q 093Q 08

Operating Income*

* from recurring activities

4743 4948

1Q 09 2Q 09 3Q 093Q 08

5%5% 5%4%

1Q 09 2Q 09 3Q 093Q 08

Order intake

344558

2,738

717

1Q 09 2Q 09 3Q 093Q 08

Backlog

Mar. 312009

Sept. 302008

June. 302009

2,9503,505

4,7004,152

Sept. 302009

Page 31: Long-Term Solid Partner - Technip · Long-Term Solid Partner Thierry Pilenko, ... Al Jubail Contract strategy: • Well-known client and country ... Al Shaheen, Qatargas & Rasgas

31

Financial Risk Management

► Strong cash position as of September, 30 2009• Total Cash €2,530.7 million• Net Cash €1,675.9 million

►Debt financing has a long horizon• €650 million straight bond maturing May 2011• Unused confirmed credit facilities of €1,433 million

► Security of cash deposits• Only cash and term deposits• Highly liquid: nearly all invested for less than three month tenor• Mostly invested in deposit banks (majority of European banks)• Monitor allocation per bank on a regular basis

Page 32: Long-Term Solid Partner - Technip · Long-Term Solid Partner Thierry Pilenko, ... Al Jubail Contract strategy: • Well-known client and country ... Al Shaheen, Qatargas & Rasgas

32

Shareholding Structure

Page 33: Long-Term Solid Partner - Technip · Long-Term Solid Partner Thierry Pilenko, ... Al Jubail Contract strategy: • Well-known client and country ... Al Shaheen, Qatargas & Rasgas

33

Shareholding structure

Listed on Euronext Paris

Treasury Shares2.8%Employees2.4%

IFP2.8%

Other Institutional Investors63.8%

French Institutional Investors19.6%

Individual shareholders6.4%

Others2.2%

Page 34: Long-Term Solid Partner - Technip · Long-Term Solid Partner Thierry Pilenko, ... Al Jubail Contract strategy: • Well-known client and country ... Al Shaheen, Qatargas & Rasgas

Long-Term Solid Partner

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