TechnipFMC PLC at Berenberg European Conference (Virtual) Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Henry Michael Tarr - Joh. Berenberg, Gossler & Co. KG, Research Division - Analyst : You're very welcome. So it's a very interesting time broadly for the business and more generally. I guess just to start with, where are we on the plan still to split out the business and the spin-off of Technip Energies?

Question: Henry Michael Tarr - Joh. Berenberg, Gossler & Co. KG, Research Division - Analyst : Okay. So I guess, the original plan was a spinoff? And without wishing to preempt anything, are there any other sort of obvious routes for the split?

Question: Henry Michael Tarr - Joh. Berenberg, Gossler & Co. KG, Research Division - Analyst : Okay. And I guess, you're still relatively new to the job running Technip Energies. You've obviously been in Technip for a long period of time, but looking across sort of different parts of the business. What was it really that attracted you to this role to running Technip Energies?

Question: Henry Michael Tarr - Joh. Berenberg, Gossler & Co. KG, Research Division - Analyst : I guess you mentioned, so as a stand-alone entity, Technip Energies now has a very high backlog, strong visibility in the near term with -- particularly with those LNG projects and now potentially, so Costa Azul coming in as well. As you look out, you talked a little bit about the transition. How do you think the business mix is likely to evolve over the next sort of 3, 5, 10 years? And do you think this is a growth business at this point as we go through the transition?

Question: Henry Michael Tarr - Joh. Berenberg, Gossler & Co. KG, Research Division - Analyst : Great. And I guess just coming back to the spin and you talked about some of the structures there as well. What do you think the right balance sheet structure is for Technip Energies? I guess, large construction companies such as yours have often run with net cash balances. Do you think that makes sense, given the negative working capital dynamics or you think your business is broad enough to -- how are you thinking about how you'd like to run the business post the split? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. NOVEMBER 30, 2020 / 3:00PM, FTI.N - TechnipFMC PLC at Berenberg European Conference (Virtual)

Question: Henry Michael Tarr - Joh. Berenberg, Gossler & Co. KG, Research Division - Analyst : Okay. Okay, great. And then perhaps we can dig into LNG a little bit. It's a very large part of the portfolio and earnings outlook for you guys. I guess big picture, there have been a lot of LNG contracts bid and won over the last couple of years. Do you still think that those are premium contracts or have the potential to be premium contracts in the current market, so you hope to be able to generate higher margins on these than the traditional EPC?

Question: Henry Michael Tarr - Joh. Berenberg, Gossler & Co. KG, Research Division - Analyst : Great. And then I guess the next massive contract out there potentially is Qatar. It's been caught up a little bit with COVID, et cetera, and we've seen various news reports come out around it. Where are we in the process for that award? And I guess there are so many parts to it. It seems massive in scale. Set in Technip Energies, do you think that you would rather focus on winning the onshore part of that contract and -- rather than perhaps some of the offshore infrastructure, et cetera, et cetera? And how big an opportunity is it?

Question: Henry Michael Tarr - Joh. Berenberg, Gossler & Co. KG, Research Division - Analyst : Okay. And then in terms of size, I guess, you're bidding a consortium, but potentially, it's a multi, multibillion dollar opportunity.

Question: Henry Michael Tarr - Joh. Berenberg, Gossler & Co. KG, Research Division - Analyst : Yes, yes. And then, I guess, to go to your largest current project, which is probably Arctic 2 underway at the minute. How has progress there been? I guess, it's been a challenging year from a logistics standpoint, given COVID? Are there any concerns on that side? Yes.

Question: Henry Michael Tarr - Joh. Berenberg, Gossler & Co. KG, Research Division - Analyst : Okay, okay. And you mentioned Yamal. Obviously, Arctic 2 follows on from Yamal. Yamal, was such a huge success, I guess we're still seeing the accounting issues sort of coming from that or flowing through the P&L today. If we sort of strip Yamal out, I guess this is something that you'll be looking at going forward, the underlying margins and performance of the business through a tough period, how are sort of underlying margins holding up?

Question: Henry Michael Tarr - Joh. Berenberg, Gossler & Co. KG, Research Division - Analyst : Okay. And then if we sort of switch to -- maybe to a different part of the business, I think what you talk about green chemistry. And that's a market that's expected to grow very substantially, potentially triple over the next 10 years. What needs to happen for it to become material for the group?

Question: Henry Michael Tarr - Joh. Berenberg, Gossler & Co. KG, Research Division - Analyst : Okay, great. And I guess another interesting technology for you guys is probably hydrogen. You have a very high market share historically for sort of conventional hydrogen production versus your sort of steam reforming technology. What's the outlook for sort of your involvement in blue hydrogen and then potentially green hydrogen, I guess, beyond that?

Question: Henry Michael Tarr - Joh. Berenberg, Gossler & Co. KG, Research Division - Analyst : Great. And I guess you have a partnership or agreement with McPhy that you announced recently. What -- so that's focused on electrolysis, I believe, rather than blue hydrogen so straight to green. What do you aim for from this partnership? And what are the sort of time frames? Is this still very much R&D or are you hoping to be able to sign some contracts with it in the coming quarters or years, yes? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. NOVEMBER 30, 2020 / 3:00PM, FTI.N - TechnipFMC PLC at Berenberg European Conference (Virtual)

Question: Henry Michael Tarr - Joh. Berenberg, Gossler & Co. KG, Research Division - Analyst : Great. And just to check, is that -- is the carbon capture technology that you use in your existing or the existing plants, is that proprietary to Technip? Or are you sort of sourcing that in and you have partners on the carbon capture side?

Question: Henry Michael Tarr - Joh. Berenberg, Gossler & Co. KG, Research Division - Analyst : Absolutely. Okay, great. And to switch gears a little bit, I mean, I think one of the other things that you've talked about is the opportunity that digital can bring to the company. How do you see it impacting your offering and your offering to clients over the coming few years? So is it primarily helping you maintain lower costs? Or are you bringing additional services to your clients and enhancing your offering on that side as well? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. NOVEMBER 30, 2020 / 3:00PM, FTI.N - TechnipFMC PLC at Berenberg European Conference (Virtual)

Question: Henry Michael Tarr - Joh. Berenberg, Gossler & Co. KG, Research Division - Analyst : Perfect. And just lastly and quickly before we head off, I guess we've been through several downturns in the industry through time. Is -- are the -- when you're having negotiations and discussions with customers, are they still looking to squeeze on pricing or terms at this point in time, given low oil prices? Or given that we really have only just come off the back of the last downturn in a sense, is there more of a sort of collaborative approach that you see with your clients?

Question: Henry Michael Tarr - Joh. Berenberg, Gossler & Co. KG, Research Division - Analyst : Perfect. Well, great. With that, I think that's a good place to end. So Arnaud, thank you so much for taking the time. We really appreciate it. And yes, good luck with the next 12 months.

Question: Henry Michael Tarr - Joh. Berenberg, Gossler & Co. KG, Research Division - Analyst : Thank you very much. Thank you.