Technip’s Second Quarter 2013 Results

Solid Quarter - Full Year Objectives Maintained

PARIS--(BUSINESS WIRE)--Regulatory News:

Technip (Paris:TEC) (ISIN:FR0000131708) (ADR:TKPPY)

SECOND QUARTER 2013 RESULTS

• Order intake of €2.8 billion
• Record backlog of €15.2 billion, of which €7.4 billion in Subsea
• Revenue of €2.4 billion
• Operating margin¹ of 10.0%
• Net income of €162.4 million

FULL YEAR 2013 OBJECTIVES MAINTAINED²

• Group revenue growing 11% to 16% to between €9.1 and €9.5 billion
• Subsea revenue growing to between €4.3 and €4.6 billion, with operating margin around 15%
• Onshore/Offshore revenue growing to between €4.7 and €5.1 billion, with operating margin between 6% and 7%

On July 23, 2013, Technip’s Board of Directors approved the second quarter and first half 2013 consolidated accounts.

€ million (Except Diluted Earnings per Share)	2Q 12^*	2Q 13	Change	1H 12^*	1H 13	Change
Revenue	2,052.2	2,423.6	18.1%	3,817.5	4,439.4	16.3%
EBITDA^3	257.3	294.4	14.4%	462.0	521.3	12.8%
EBITDA Margin	12.5%	12.1%	(39)bp	12.1%	11.7%	(36)bp
Operating Income from Recurring Activities	207.3	242.0	16.7%	372.5	415.5	11.5%
Operating Margin	10.1%	10.0%	(12)bp	9.8%	9.4%	(40)bp
Operating Income	204.3	242.0	18.5%	369.5	415.5	12.4%
Net Income	136.0	162.4	19.4%	248.2	278.6	12.2%
Diluted Earnings per Share^4 (€)	1.14	1.35	17.8%	2.09	2.32	11.0%
Order Intake	2,516	2,764		5,826	5,670
Backlog	12,724	15,185

* restated for retrospective application of amended IAS 19 standard “Employee Benefits” as of January 1, 2013

Thierry Pilenko, Chairman and CEO, commented: “Technip's second quarter results enable us to maintain our 2013 full year revenue and profit objectives. In Subsea, progress and close-out on projects allowed revenue to grow by 12% with a 15.9% operating margin. Onshore/Offshore revenue was up 23% with operating margin in line with our objectives, at 6.7%. Overall, the Group grew net income and EPS by respectively 19% and 18%.

Order intake reflected the strong activity we see in nearly all our markets and was composed in both segments of a diversified mix of projects. Subsea order intake was characterized by flexible supply contracts and smaller and medium-sized installation contracts: Snøhvit and Norne in the North Sea, and South White Rose Extension in Canada. After the award in the first quarter of Moho Nord in Congo, momentum in West Africa continued in the second quarter with awards to supply umbilicals and flexibles for the Egina field development in Nigeria.

Onshore/Offshore order intake included the engineering, procurement and fabrication contract for the P-76 FPSO topsides in Brazil, as well as the definitive award for the Heidelberg Spar which is being built in our yard in Pori, Finland. We won contracts to perform Project Management Consultancy (PMC) services for our clients, including on the Karbala refinery in Iraq. Technip also secured early stage involvement in a number of important potential developments worldwide, notably in FLNG and LNG, for example with the Pacific NorthWest LNG FEED in Canada.

Our clients remain active, looking to us to design facilities and developments that can be cost- and schedule-effective in more complex and harsh environment situations. We have not seen any meaningful change in our clients' drive to sanction projects in the last few months.

Technip has grown its workforce in the last six months, and we now number nearly 38,000 people in 48 countries worldwide. Their relentless efforts to devise the best engineering and project execution strategies for our customers are central to enable Technip to win projects and execute them safely and profitably.

Our Capex program progressed as regards the major assets under construction: Deep Energy pipelay vessel, Açu flexible pipe manufacturing plant in Brazil, Newcastle umbilical manufacturing plant in the UK. The new Deep Orient pipelay vessel met a major milestone with a good performance on Åsgard and Goliat, her first projects, and she will head to Asia Pacific in the Autumn. Later this year, the Deep Energy will start work on her first projects in the Gulf of Mexico where she will lay umbilicals, rigid and flexible pipes as part of an important and busy schedule of work for Technip in the US.

We enter the second half of the year with a diversified backlog of €15.2 billion, of which €4.4xbillion is estimated to be carried out by year-end. We will be active on projects entering important construction and offshore phases during this period in both segments and, accordingly, Technip’s collective focus remains first and foremost on executing those projects in order to deliver our second half objectives, and for the longer term, continued sustainable and profitable growth.”

^1 Operating income from recurring activities divided by revenue.

^2Based on the year-to-date average exchange rates.

^3 Operating income from recurring activities before depreciation and amortization.

^4 As per IFRS, diluted earnings per share are calculated by dividing profit or loss attributable to the Parent Company’s Shareholders, restated from financial interest related to dilutive potential ordinary shares, by the weighted average number of outstanding shares during the period, plus the effect of dilutive potential ordinary shares related to the convertible bonds, dilutive stock options and performance shares calculated according to the “Share Purchase Method” (IFRS 2), less treasury shares. In conformity with this method, anti-dilutive stock options are ignored in calculating EPS. Dilutive options are taken into account if the subscription price of the stock options plus the future IFRS 2 charge (i.e. the sum of annual charge to be recorded until the end of the stock option plan) is lower than the average market share price during the period.

I. PORTFOLIO OF PROJECTS

1. Second Quarter 2013 Order Intake

During second quarter 2013, Technip’s order intake was €2,763.8 million. The breakdown by business segment was as follows:

Order Intake (€ million)	2Q 2012	2Q 2013
Subsea	1,335.8	1,539.9
Onshore/Offshore	1,180.0	1,223.9
Total	2,515.8	2,763.8

Subsea

Second quarter Subsea order intake included a contract for Engineering, Procurement, Construction and Installation (EPCI) of smoothbore risers for the Norne field in Norway, as well as large diameter steel flowlines installation for the Snøhvit CO₂ project. Technip won contracts for the Project Management, Engineering and Manufacture of steel tube umbilicals and flexible pipes for the Egina project in Nigeria. Across the Atlantic, we were awarded the South White Rose Extension project in Canada. In Brazil, Technip was awarded a major contract for flexible pipes engineered for ultra-deep application on the Iracema Sul field, reinforcing Technip’s position in the pre-salt Brazilian market.

Onshore/Offshore

Onshore/Offshore order intake for the quarter included several smaller projects in the Middle East: Technip will provide engineering and procurement services for Takreer’s new coke calcination unit in the United Arab Emirates, as well as a PMC scope for the Karbala refinery in Iraq. Our strategy of differentiating and leveraging our capacity to manage complex brownfield projects led to the award of the Sulfur Recovery Unit by Bahrain Petroleum Company (BAPCO).

In Brazil, Technip will be in charge of the design and integration of the topsides for the P-76 Floating, Production, Storage and Offloading unit (FPSO). Following the execution of the Front End Engineering Design (FEED) of NOVA’s polyethylene expansion project in Canada, we will perform the engineering and procurement scopes. Technip will also participate in the competitive FEED for the Canadian Pacific NorthWest LNG facilities.

Technip also won a Biomass-to-Liquid plant FEED in Finland, in line with our strategy to get involved in innovative projects in the early stages. A services contract in Venezuela for two hydrogen reformers, which will utilize our state-of-the-art proprietary technology, was also awarded toward the end of this quarter.

Listed in annex IV (b) are the main contracts announced since April 2013 and their approximate value if publicly disclosed.

2. Backlog by Geographic Area

At the end of the second quarter 2013, Technip’s backlog rose to €15.2 billion, compared with €14.8 billion at the end of first quarter 2013, and €12.7 billion at the end of second quarter 2012.

This backlog remains diversified in terms of project types, sizes, technologies and geographical areas as set-out in the table below:

Backlog	March 31,	June 30,	Change
(€ million)	2013	2013
Europe, Russia, Central Asia	4,095	4,168	2%
Africa	2,346	2,549	8.7%
Middle East	1,436	1,204	(16.2)%
Asia Pacific	3,204	2,963	(7.5)%
Americas	3,697	4,301	16.3%
Total	14,778	15,185	2.8%

3. Backlog Scheduling

Approximately 29% of the backlog is estimated to be scheduled for execution in 2013.

Backlog Estimated Scheduling as of June 30, 2013 (€ million)	Subsea	Onshore/Offshore	Group
2013 (6 months)	1,938	2,453	4,391
2014	2,485	3,136	5,621
2015 and beyond	2,933	2,241	5,173
Total	7,355	7,830	15,185

II. SECOND QUARTER 2013 OPERATIONAL & FINANCIAL HIGHLIGHTS

1. Subsea

Subsea main operations for the quarter were as follows:

• In the North Sea, satisfactory marine conditions allowed offshore operations to continue work on various projects such as Åsgard and Goliat in Norway on which our new vessel, the Deep Orient, delivered a good performance. In the UK, the engineering and procurement phase of the major Quad 204 project moved forward. Other projects, notably Bøyla, Gannet, Greater Stella and Juliet made progress on their engineering and procurement phases.
• In the Americas:
  • In Brazil, construction of the new flexible pipe plant in Açu made headway with key equipment delivered on site, and we pursued plant operator training. The first batch of Integrated Production Bundle risers and flowlines for the Papa-Terra field manufactured in France arrived in Brazil, and is ready to be installed. Meanwhile, the construction of two 550 ton PLSVs, for long-term charter to Petrobras progressed well in Korea.
  • In the Gulf of Mexico, our key vessels were all active on offshore operations: the Deep Blue was mobilized on the Walker Ridge gas gathering system, while the G1200 installed the first pipeline for the South Timbalier Block 283 Junction Platform.
• In West Africa, mobilization started on the Egina project, in Nigeria, for the design of steel umbilicals and flexible pipes. In Congo, ramp-up and engineering activities continued for the development of the Moho Nord field, whilst the CoGa project progressed towards its completion phase.
• In Asia Pacific, in China, the G1201 vessel completed the pipe installation for the Liwan gas platform, while the Panyu project’s engineering phase is on-going. Wheatstone in Australia is moving forward with the umbilical design phase as is the Malikai subsea project in Malaysia.

Overall Group vessel utilization rate for the second quarter 2013 was 84% compared with 74% for the second quarter 2012.

Subsea financial performance is set out in the following table:

€ million	2Q 2012*	2Q 2013^*	Change
Subsea
Revenue	981.2	1,102.9	12.4%
EBITDA	190.1	218.7	15.0%
EBITDA Margin	19.4%	19.8%	46bp
Operating Income From Recurring Activities	147.3	175.4	19.1%
Operating Margin	15.0%	15.9%	89bp

* restated for retrospective application of amended IAS 19 standard “Employee Benefits” as of January 1, 2013

2. Onshore/Offshore

Onshore/Offshore main operations for the quarter were as follows:

• In the Middle East, work started on the recently announced BAPCO Sulfur Recovery Unit modification EPC project in Bahrain. In Abu Dhabi, the Satah full field development moved into its construction phase while engineering and procurement activities reached the final phases for Upper Zakum 750 EPC1, for which the FEED was completed last year. In Saudi Arabia, commissioning of the Jubail 2A and 5A packages was carried out successfully, and we have been demobilizing progressively on both packages. Procurement continued for equipment and bulk material to be installed on the KEMYA Halobutyl project.
• In Asia Pacific, in Malaysia, the first steel was cut for the Malikai hull and topsides. Engineering and detailed design progressed for Petronas FLNG 1 and first steel has also been cut. In Australia, Shell’s Prelude FLNG moved forward in its construction phase, and the Wheatstone gas processing platform engineering and detailed design progressed.
• In the Americas, engineering for the Westlake ethylene plant in Kentucky continued and purchase orders were placed. The Mosaic fertilizer FEED in Louisiana reached its final phase. In Canada, Technip and partners started the competitive FEED for Pacific NorthWest LNG. In Venezuela, progress was made on the Petrocarabobo and Petrourica FEEDs for two PDVSA upgraders in the Orinoco belt. In Mexico, EPC activities continued on the Etileno XXI plant.
• Elsewhere, in Norway, engineering for the Martin Linge platform progressed and materials were purchased for the Aasta Hansteen Spar. In Finland, construction of the Heidelberg Spar continued. Meanwhile, engineering and procurement services continued on the PTA plant in India, and Burgas’ refinery in Bulgaria made good progress in its construction supervision and procurement phase.

Onshore/Offshore financial performance is set out in the following table:

€ million	2Q 2012^*	2Q 2013	Change
Onshore/Offshore
Revenue	1,071.0	1,320.7	23.3%
Operating Income From Recurring Activities	77.5	88.9	14.7%
Operating Margin	7.2%	6.7%	(50)bp

* restated for retrospective application of amended IAS 19 standard “Employee Benefits” as of January 1, 2013

3. Group

Technip Group’s Operating Income From Recurring Activities including Corporate charges as detailed in annex I (c) is set out in the following table:

€ million	2Q 2012^*	2Q 2013	Change
Group
Revenue	2,052.2	2,423.6	18.1%
Operating Income From Recurring Activities	207.3	242.0	16.7%
Operating Margin	10.1%	10.0%	(12)bp

* restated for retrospective application of amended IAS 19 standard “Employee Benefits” as of January 1, 2013

In the second quarter 2013, foreign exchange had a negative impact estimated at €28.4 million on revenue and a negative impact estimated at €5.5 million on operating income from recurring activities. Financial result on contracts recognized as revenue amounted to €3.6 million in second quarter 2013.

4. Group Net Income

Operating income was €242 million in second quarter 2013, versus €204 million a year ago.

Financial result in second quarter 2013 included a €3.6 million positive impact from changes in foreign exchange rates and fair market value of hedging instruments, compared with a €12 million negative impact last year.

The slight variation in Diluted Number of Shares is mainly due to stock options granted to Technip’s employees.

€ million, except Diluted Earnings per Share, and Diluted Number of Shares	2Q 2012^*	2Q 2013	Change
Operating Income	204.3	242.0	18.5%
Financial Result	(18.9)	(10.7)	(43.4)%
Share of Income / (Loss) of Equity Affiliates	-	(0.1)	nm
Income Tax Expense	(48.7)	(67.8)	39.2%
Effective Tax Rate	26.3%	29.3%	3%
Non-Controlling Interests	(0.7)	(1.0)	42.9%
Net Income	136.0	162.4	19.4%
Diluted Number of Shares	123,391,178	124,410,586	0.8%
Diluted Earnings per Share (€)	1.14	1.35	17.8%

* restated for retrospective application of amended IAS 19 standard “Employee Benefits” as of January 1, 2013

5. Cash Flow and Statement of Financial Position

As of June 30, 2013, the Group’s net debt was €271 million compared to €91 million at the end of March 2013.

€ million
Net Cash Position as of March 31, 2013		(90.9)
Net Cash Generated from / (Used in) Operating Activities		182.6
of which:
Cash Generated from / (Used in) Operations	257.7
Change in Working Capital Requirements	(75.1)
Capital Expenditures		(170.8)
Dividends Paid		(186.0)
Other including FX Impacts		(6.1)
Net Cash Position as of June 30, 2013		(271.2)

Capital expenditures for the second quarter 2013 increased to €171 million compared to €152 million one year ago. In the first half 2013, capital expenditures amounted to €282 million versus €248 million one year ago.

Shareholders’ equity as of June 30, 2013, was €4,003 million compared with €3,962 million as of December 31, 2012, restated.

III. FULL YEAR 2013 OBJECTIVES MAINTAINED

• Group revenue growing 11% to 16% to between €9.1 and €9.5 billion
• Subsea revenue growing to between €4.3 and 4.6 billion, with operating margin around 15%
• Onshore/Offshore revenue growing to between €4.7 and €5.1 billion, with operating margin between 6% and 7%

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The information package on Second Quarter 2013 results includes this press release and the annexes which follow, as well as the presentation published on Technip’s website: www.technip.com

NOTICE

Today, Thursday, July 25, 2013, Chairman and CEO Thierry Pilenko, along with CFO Julian Waldron, will comment on Technip’s results and answer questions from the financial community during a conference call in English starting at 10:00 a.m. CET.

To participate in the conference call, you may call any of the following telephone numbers approximately 5 - 10 minutes prior to the scheduled start time:

France / Continental Europe:	[phone]
UK:	[phone]
USA:	[phone]

The conference call will also be available via a simultaneous, listen-only audio-cast on Technip’s website.

A replay of this conference call will be available approximately two hours following the conference call for 90 days on Technip’s website and for two weeks at the following telephone numbers:

	Telephone Numbers	Confirmation Code
France / Continental Europe:	[phone]	282183#
UK:	[phone]	282183#
USA:	[phone]	282183#

Cautionary note regarding forward-looking statements

This 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 we 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.

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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.

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Technip is a world leader in project management, engineering and construction for the energy industry.

From the deepest Subsea oil & gas developments to the largest and most complex Offshore and Onshore infrastructures, our 38,000 people are constantly offering the best solutions and most innovative technologies to meet the world’s energy challenges.

Present in 48 countries, Technip has state-of-the-art industrial assets on all continents and operates a fleet of specialized vessels for pipeline installation and subsea construction.

Technip shares are listed on the NYSE Euronext Paris exchange and ADR is traded in the US on the OTCQX marketplace as an American Depositary Receipt (OTCQX: TKPPY).

ANNEX I (a)
CONSOLIDATED STATEMENT OF INCOME
IFRS, not audited
	Second Quarter			First Half
€ million
(Except Diluted Earnings per Share, and Diluted Number of Shares)	2012*	2013	Change	2012*	2013	Change
Revenue	2,052.2	2,423.6	18.1%	3,817.5	4,439.4	16.3%
Gross Margin	385.4	437.1	13.4%	713.0	795.7	11.6%
Research & Development Expenses	(17.5)	(16.7)	(4.6)%	(32.6)	(30.7)	(5.8)%
SG&A and Other	(160.6)	(178.4)	11.1%	(307.9)	(349.5)	13.5%
Operating Income from Recurring Activities	207.3	242.0	16.7%	372.5	415.5	11.5%
Non-Current Operating Result	(3.0)	-	nm	(3.0)	-	nm
Operating Income	204.3	242.0	18.5%	369.5	415.5	12.4%
Financial Result	(18.9)	(10.7)	(43.4)%	(26.1)	(19.0)	(27.2)%
Share of Income / (Loss) of Equity Affiliates	-	(0.1)	nm	-	0.1	nm
Income / (Loss) before Tax	185.4	231.2	24.7%	343.4	396.6	15.5%
Income Tax Expense	(48.7)	(67.8)	39.2%	(93.8)	(116.3)	24.0%
Non-Controlling Interests	(0.7)	(1.0)	42.9%	(1.4)	(1.7)	21.4%
Net Income / (Loss)	136.0	162.4	19.4%	248.2	278.6	12.2%
Diluted Number of Shares	123,391,178	124,410,586	0.8%	123,449,452	124,430,271	0.8%
Diluted Earnings per Share (€)	1.14	1.35	17.8%	2.09	2.32	11.0%

* restated for retrospective application of amended IAS 19 standard “Employee Benefits” as of January 1, 2013

ANNEX I (b)
FOREIGN CURRENCY CONVERSION RATES
IFRS, not audited
	Closing Rate as of		Average Rate of
	Dec. 31, 2012	Jun. 30, 2013	2Q 2012	2Q 2013	1H 2012	1H 2013
USD for 1 EUR	1.32	1.31	1.28	1.31	1.30	1.31
GBP for 1 EUR	0.82	0.86	0.81	0.85	0.82	0.85
BRL for 1 EUR	2.70	2.89	2.51	2.70	2.42	2.67
NOK for 1 EUR	7.35	7.88	7.56	7.61	7.57	7.52

ANNEX I (c)
ADDITIONAL INFORMATION BY BUSINESS SEGMENT
IFRS, not audited
	Second Quarter			First Half
€ million	2012*	2013	Change	2012*	2013	Change
SUBSEA
Revenue	981.2	1,102.9	12.4%	1,772.3	2,025.5	14.3%
Gross Margin	226.8	259.1	14.2%	407.6	457.6	12.3%
Operating Income from Recurring Activities	147.3	175.4	19.1%	263.5	293.8	11.5%
Operating Margin	15.0%	15.9%	89bp	14.9%	14.5%	(36)bp
Depreciation and Amortization	(42.8)	(43.3)	1.2%	(75.9)	(89.0)	17.3%
EBITDA	190.1	218.7	15.0%	339.4	382.8	12.8%
EBITDA Margin	19.4%	19.8%	46bp	19.2%	18.9%	(25)bp
ONSHORE/OFFSHORE
Revenue	1,071.0	1,320.7	23.3%	2,045.2	2,413.9	18.0%
Gross Margin	158.6	178.0	12.2%	305.4	338.1	10.7%
Operating Income from Recurring Activities	77.5	88.9	14.7%	141.6	163.0	15.1%
Operating Margin	7.2%	6.7%	(50)bp	6.9%	6.8%	(17)bp
Depreciation and Amortization	(7.2)	(9.1)	26.4%	(13.6)	(16.8)	23.5%
CORPORATE
Operating Income from Recurring Activities	(17.5)	(22.3)	27.4%	(32.6)	(41.3)	26.7%
Depreciation and Amortization	-	-	nm	-	-	nm

ANNEX I (d)
REVENUE BY GEOGRAPHICAL AREA
IFRS, not audited
	Second Quarter			First Half
€ million	2012*	2013	% Δ	2012*	2013	% Δ
Europe, Russia, Central Asia	628.5	709.5	12.9%	1,121.5	1,189.7	6.1%
Africa	210.4	191.5	(9.0)%	317.0	329.8	4.0%
Middle East	267.2	238.6	(10.7)%	540.8	524.6	(3.0)%
Asia Pacific	318.5	510.5	60.3%	608.2	909.4	49.5%
Americas	627.6	773.5	23.2%	1,230.0	1,485.9	20.8%
TOTAL	2,052.2	2,423.6	18.1%	3,817.5	4,439.4	16.3%

* restated for retrospective application of amended IAS 19 standard “Employee Benefits” as of January 1, 2013

ANNEX II
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
IFRS
	Dec. 31, 2012*	Jun. 30, 2013
	(audited)	(not audited)
€ million
Fixed Assets	6,022.2	6,131.8
Deferred Tax Assets	330.3	337.8
Non-Current Assets	6,352.5	6,469.6
Construction Contracts – Amounts in Assets	454.3	794.5
Inventories, Trade Receivables and Other	2,504.8	2,763.2
Cash & Cash Equivalents	2,289.3	1,999.7
Current Assets	5,248.4	5,557.4
Assets Classified as Held for Sale	9.9	0.0
Total Assets	11,610.8	12,027.0
Shareholders’ Equity (Parent Company)	3,948.9	3,988.8
Non-Controlling Interests	13.2	14.5
Shareholders’ Equity	3,962.1	4,003.3
Non-Current Financial Debts	1,705.7	2,029.3
Non-Current Provisions	229.0	243.8
Deferred Tax Liabilities and Other Non-Current Liabilities	270.8	322.2
Non-Current Liabilities	2,205.5	2,595.3
Current Financial Debts	400.4	241.6
Current Provisions	361.0	282.4
Construction Contracts – Amounts in Liabilities	873.0	1,037.0
Trade Payables & Other	3,808.8	3,867.4
Current Liabilities	5,443.2	5,428.4
Total Shareholders’ Equity & Liabilities	11,610.8	12,027.0
Net Cash Position	183.2	(271.2)

Statement of Changes in Shareholders’ Equity (Parent Company) not audited (€ million):
Shareholders’ Equity as of December 31, 2012*	3,948.9
First Half 2013 Net Income	278.6
First Half 2013 Other Comprehensive Income	(56.3)
Capital Increase	14.7
Treasury Shares	(40.2)
Dividends Paid	(186.0)
Other	29.1
Shareholders’ Equity as of June 30, 2013	3,988.8

* restated for retrospective application of amended IAS 19 standard “Employee Benefits” as of January 1, 2013

ANNEX III (a)
CONSOLIDATED STATEMENT OF CASH FLOWS
IFRS, not audited
	First Half
€ million	2012*		2013
Net Income / (Loss) of the Parent Company	248.2		278.6
Depreciation & Amortization of Fixed Assets	89.5		105.8
Stock Options and Performance Share Charges	21.2		25.5
Non-Current Provisions (including Employee Benefits)	6.7		20.4
Deferred Income Tax	29.0		31.4
Net (Gains) / Losses on Disposal of Assets and Investments	(4.7)		(5.3)
Non-Controlling Interests and Other	15.1		16.4
Cash Generated from / (Used in) Operations	405.0		472.8
Change in Working Capital Requirements	(418.6)		(430.2)
Net Cash Generated from / (Used in) Operating Activities		(13.6)		42.6
Capital Expenditures	(248.0)		(281.5)
Proceeds from Non-Current Asset Disposals	37.9		12.6
Acquisitions of Financial Assets	(3.3)		-
Acquisition Costs of Consolidated Companies, Net of Cash Acquired	(11.1)		(8.7)
Net Cash Generated from / (Used in) Investing Activities		(224.5)		(277.6)
Net Increase / (Decrease) in Borrowings	65.7		166.4
Capital Increase	23.1		14.7
Dividends Paid	(172.6)		(186.0)
Share Buy-Back	(40.0)		(40.0)
Net Cash Generated from / (Used in) Financing Activities		(123.8)		(44.9)
Net Effects of Foreign Exchange Rate Changes		22.2		(9.7)
Net Increase / (Decrease) in Cash and Cash Equivalents		(339.7)		(289.6)
Bank Overdrafts at Period Beginning	(0.1)		(0.3)
Cash and Cash Equivalents at Period Beginning	2,808.7		2,289.3
Bank Overdrafts at Period End	(4.8)		(0.3)
Cash and Cash Equivalents at Period End	2,473.7		1,999.7
		(339.7)		(289.6)

* restated for retrospective application of amended IAS 19 standard “Employee Benefits” as of January 1, 2013

ANNEX III (b)
CASH & FINANCIAL DEBTS
IFRS not audited
	Cash and Financial Debts
	Dec. 31, 2012*	Jun. 30, 2013
€ million	(not audited)	(not audited)
Cash Equivalents	965.7	952.2
Cash	1,323.6	1,047.5
Cash & Cash Equivalents (A)	2,289.3	1,999.7
Current Financial Debts	400.4	241.6
Non-Current Financial Debts	1,705.7	2,029.3
Gross Debt (B)	2,106.1	2,270.9
Net Cash Position (A – B)	183.2	(271.2)

* restated for retrospective application of amended IAS 19 standard “Employee Benefits” as of January 1, 2013

ANNEX IV (a)
BACKLOG
not audited
	Backlog by Business Segment
	As of	As of	Change
€ million	Jun. 30, 2012	Jun. 30, 2013
Subsea	5,963.1	7,355.3	23.3%
Onshore/Offshore	6,760.6	7,830.2	15.8%
Total	12,723.7	15,185.5	19.3%

ANNEX IV (b)
CONTRACT AWARDS
not audited

The main contracts we announced during second quarter 2013 were the following:

Subsea Segment:

• Major lump-sum contract for the engineering, procurement, supply, construction, installation (EPSCI) and pre-commissioning for the Moho Nord development project at water depths ranging from 650 to 1,100 meters. This project is located approximately 75 kilometers off the coast of the Republic of the Congo: Total E&P, Congo,
• Contract covering the engineering, preparation, removal and replacement of two existing oil-loading systems. This field is located in the North Sea at a water depth of approximately 130 meters: Statoil, Gullfaks field, offshore Norway,
• Two contracts in Canada including the supply and installation of gas injection flowlines, umbilicals and subsea structures, as well as of flowlines and subsea structures for oil production and water injection: Husky Oil, Jeanne d’Arc Basin, Newfoundland and Labrador, Canada,
• Engineering, procurement, construction and installation contract that covers the engineering and fabrication of two flexible smoothbore gas export risers, marine operations to remove an existing roughbore flexible riser and replace it with a new flexible smoothbore riser and the provision of a second flexible smoothbore in water depth of approximately 380 meters: Statoil, Norne field, Norway,
• Lump-sum contract covering the engineering, installation and pre-commissioning of more than 48 kilometers of flowlines, steel catenary risers and flowline end terminations for the development of the Julia field at a water depth of approximately 2,100 meters: Exxon Mobil Corporation, Walker Ridge area, US Gulf of Mexico,
• Major contract for the supply of flexible pipes of up to 250 kilometers for oil production, gas lift, water and gas injection as well as related equipment for the Iracema Sul Field, at a water depth of up to 2,500 meters, to be installed on the floating production storage and offloading (FPSO) unit Citade de Mangaratiba: Petrobras, Santos Basin pre-salt area, Brazil,
• Important lump-sum contract for pipelay and subsea installations for the Snøhvit CO₂ Solution project, which is located approximately 140 kilometers north-west of Hammerfest and has been in operation since 2007: Statoil, Arctic Circle, Norway.

Onshore/Offshore Segment:

• Contract to carry out the engineering, procurement, supply, construction and commissioning of an integrated facility for natural gas liquefaction in consortium with JGC. The facility will have an annual production capacity of 16.5 million tons and will be based on the resources of the South Tambey Gas Condensate field located on the Yamal Peninsula: JSC Yamal LNG, Yamal, Russia,
• Lump-sum contract for the engineering, procurement, construction, and pre-commissioning as well as commissioning and start-up assistance for the modification project of the #3 sulfur recovery unit (SRU) of the Bahrain refinery: Bahrain Petroleum company (BAPCO) Bahrain,
• Substantial contract for the topside construction and integration of, and commissioning and start up assistance for the P-76 floating production storage and offloading (FPSO) unit, in consortium with Techint, located in the Santos Basin pre-salt area: PNBV, offshore Rio de Janeiro, Brazil,
• Engineering and procurement contract for the Polyethylene 1 expansion project located at the NOVA Chemicals Joffre site. It includes the installation of a world-scale 431-kiloton per annum (950 MM lbs/yr) single-train linear low density polyethylene (LLDPE) unit: NOVA Chemicals Corporation, Alberta, Canada,
• Contract for the front-end engineering design (FEED) and the early detailed engineering services of a grassroot liquefied natural gas (LNG) project. This project is located on Lelu Island and will be implemented in a consortium with Samsung Engineering Co Ltd and China Huanqiu Contracting & Engineering Corporation: Pacific NorthWest LNG Limited Partnership, British Columbia, Canada,
• Lump-sum turnkey contract for the engineering, procurement, construction, pre-commissioning, commissioning and start-up assistance for flares modification and revamp project, located 290 kilometers offshore Abu Dhabi: ADMA-OPCO, Das Island, United Arab Emirates,
• Technology, engineering services and supply contract for a new coke calcination unit, part of the Carbon Black & Delayed Coker project being implemented adjacent to Takreer’s existing Ruwais refinery: Abu Dhabi Oil Refining Company, Abu Dhabi, United Arab Emirates,
• Project management consultancy (PMC) services contract for the engineering, procurement and construction (EPC) phase of the Karbala refinery, which follows the FEED contract executed by Technip in 2010: Oil Projects Company, Karbala, Iraq,
• Front-end engineering design (FEED) contract for a new second generation Biomass-to-Liquid (BTL) plant, that will produce approximately 140,000 tons of biodiesel and naphtha from wood and by-products from the wood-processing industry: Forest BtL Oy, Ajos island, Finland,
• Services contract for the execution of a new world-scale Purified Terephthalic Acid (PTA) plant with a capacity of 1,250,000 ton per year, includes management of the engineering, procurement and construction services: BP Zhuhai Chemical Company Limited, Guangdong Province, China.

Since June 30, 2013, Technip has also announced the award of the following contracts, which were included in the backlog as of June 30, 2013:

Subsea segment was awarded:

• Important contract for project management, engineering and manufacture of about 76 kilometers of steel tube umbilicals including production, water injection and subsea isolation valve (SSIV) umbilicals for the Egina field offshore Nigeria, located within Oil Mining Lease 130, approximately 200 kilometers from Port Harcourt, at water depths ranging from 1,150 to 1,750 meters: Total Upstream Nigeria Ltd, offshore Nigeria.

Onshore/Offshore segment was awarded:

• Significant contract to supply proprietary technology, engineering and procurement services for two hydrogen reformers in Venezuela, part of the Deep Conversion project being executed by the consortium for Petroleos de Venezuela SA (PDVSA) to upgrade the Puerto La Cruz refinery: Hyundai-Wison consortium, Venezuela.