SEPTEMBER 30, 2003 RESULTS

1

I.

TECHNIP AT SEPT 30, 2003

II.

OPERATIONS AND TARGETS

III.

OUTLOOK

2

I.

TECHNIP AT SEPT 30, 2003 1.

PROGRESS ON COMPANY’S COMMITMENTS

2.

MAIN NUMBERS

3.

OFFSHORE ACTIVITIES

4.

ONSHORE ACTIVITIES

5.

CASH FLOW

6.

BALANCE SHEET

3

PROGRESS ON COMPANY’S COMMITMENTS

Corporate Governance

New corporate structure with a majority of independent Directors on the Board and updated by-laws for the Board Committees (July 2003)

Ethics and Values

Technip joined the UN Global Compact Program (April 2003)

Sustainability

Technip selected for the Dow Jones Sustainability World Index (September 2003)

4

MAIN NUMBERS Sept 30 2003 (9 months)

Sept 30 2002 (9 months)

% Change

Order Intake

5,662

4,438

+28%

Backlog (Sept. 30)

7,526

6,063

+24%

Revenues

3,420

3,307

+3%

EBITA

169.4

146.7

+15%

68.3

68.2

=

(16.2)

(19.8)

+18%

EPS (€)

2.91

3.09

(6%)

E/ADS* ($)

0.85

0.90

(6%)

In € million (except EPS & E/ADS)

margin

Net Income before Goodwill Net Income after Goodwill

5.0%

4.4%

* For both periods E/ADS is calculated using the Federal Reserve Bank of New York noon buying rate (USD/EUR) of 1.1650 as of September 30, 2003.

EBITA margin up 14% (from 4.4% to 5.0% of revenues)

5

9 MONTHS 2003: OFFSHORE ACTIVITIES (compared to 9 months 2002) +

= Offshore activities

in € million

SURF

Order Intake

2,008 +79%

1,140 +404%

3,148 +134%

Backlog

2,117 +65%

1,023 +59%

3,140 +63%

Revenues EBITA

margin 6.8%

943

-4%

63.7*

-22%

Facilities

649 7.1%

45.9* +640%

* based on restated first half 2003 figures (details on page 26)

1,592

+6%

6.9%

=

109.6 +25%

% = year-on-year change

Income from operations up 25% on flat revenues (expressed in €) Main contracts awarded during the third quarter: Sapphire

Baobab

Snøhvit

6

9 MONTHS 2003: ONSHORE ACTIVITIES (compared to 9 months 2002)

in € million

Onshore and Downstream

+

Industries

= Onshore activities

Order Intake

2,286

-17%

228

-29%

Backlog

4,081

+6%

305

+6%

4,386

+6%

Revenues

1,544

+9%

283

-6%

1,828

+7%

EBITA

54.0

+5%

5.8

-25%

59.8

+1%

margin 3.5%

2.0%

2,514 -19%

3.3%

% = year-on-year change

Onshore/Downstream: during third quarter, EBITA grew faster than revenues (details on page 27) Main contracts awarded during the third quarter: Motor Oil Hellas

HDT Riyad

Guamaré 7

9 MONTH CASH FLOW STATEMENT (€m) USES

SOURCES Operating Cash Flow

179

Capital Expenditures

91 72

Asset Disposals

13

Change in Working Capital

Aker Deepwater Div. Price Reduction

31

Gross Debt Reduction

Cash TOTAL

44 267

5

Dividend

77

FETA and Others

22

TOTAL

267

Major positive change in working capital during third quarter (€101 million) partially offset the temporary deterioration shown in second quarter accounts

8

BALANCE SHEET in € million

Sept. 30, 2003

June 30, 2003

Dec. 31, 2002

697

634

741

1.

Cash

2.

Other Current Assets

1,657

1,492

1,370

3.

Contracts in Progress

6,233

5,359

4,977

4.

Fixed Assets

3,284

3,289

3,518

5.

Total Assets

11,871

10,774

10,606

6.

Financial Debt

1,242

1,313

1,247

7.

Premium for Redemption of Convertible Bonds

87

87

90

8.

Progress Payments on Contracts

6,833

5,740

5,420

9.

Other Liabilities

1,418

1,388

1,478

320

314

329

11. Shareholders’ Equity and Minority Interests

1,971

1,932

2,042

12. Total Liabilities and Shareholders’ Equity

11,871

10,774

10,606

13. Net Debt (excluding redemption premium) = (6)-(1)

545

679

506

28%

35%

25%

600

381

443

10. Provisions

14. Gearing = (13) / (11) 15. Contract Coverage = (8) – (3)

9

II.

OPERATIONS AND TARGETS 1.

Financial Structure

2.

Contract Execution

3.

Currency Fluctuations

4.

Return on Capital

10

FINANCIAL STRUCTURE: REDUCING THE GEARING RATIO

Gearing Ratio Net Debt (excluding the convertible bond redemption premium) to Equity 50%

Î Disposal of non-core fixed assets (~ € 250 million since January 2002)

44% 40%

40%

28%

30%

Î Close scrutiny on capital spending

25%

20%

20%

D ec

03 p Se

02 D ec

02 Ju n

01 D ec

Î A sustained focus on project cash flows

04

(Target)

10%

11

CONTRACT EXECUTION: TAKING ADVANTAGE OF OUR GLOBAL NETWORK OF ENGINEERING CENTERS (1/2) Rome

Aberdeen + Oslo

1,925 people

2,050 people

€

Houston $

3,995 people • Onshore USA • Offshore Gulf of Mexico (SURF, Spar, Fabrication) • Prospecting Mexico • FREEPORT LNG • HOSLTEIN SPAR • MAD DOG SPAR

• SE Europe, Africa, Middle East (onshore) • Fertilizers, PTA, GTL • Pushing towards infrastructures • TAKREER • MOTOR OIL HELLAS • GTL QATAR

£/NOK

Amsterdam + Dusseldorf €

715 people

• North Sea, Canada, Africa (offshore) • Fleet Management

• Germany, Russia, CIS (onshore) • Ethylene, Hydrogen, Onshore pipelines • FUJAIRAH

• SNOVHIT • SIMIAN/SAPPHYRE • BAOBAB

Kuala-Lumpur RIM/$

PARIS €

Rio

BRL/$

1,610 people • Offshore Brazil • Expanding in new areas (floaters, gas projects, refineries) • GUAMARÉ

MAIN CENTERS

3,490 people • N.W. Europe, Middle East (onshore) • West Africa (offshore) • LNG, Ethylene, Industries • • • •

DALIA AMENAM SHAH DENIZ NIGERIA LNG

1020 people • South East Asia / Australia (onshore + offshore) • SECCO (CHINA) • EAST AREA (NIGERIA)

• MAIN ACTIVITIES • MAIN CONTRACTS

12

CONTRACT EXECUTION: TAKING ADVANTAGE OF OUR GLOBAL NETWORK OF ENGINEERING CENTERS (2/2) MAIN CENTERS

Aberdeen + Oslo

Rome

Amsterdam + Dusseldorf

Houston

MODERATE COST ENGINEERING CENTERS

PARIS

KualaLumpur

Rio

Bogota 155 people COP

Caracas 305 people VEB

Abu Dhabi 670 people AED

Chennaï

Bangkok

680 people

Shanghaï

110 people

350 people

THB

CNY

INR

Global network: a powerful tool to cope with fluctuating workloads, mitigate exposure to Euro and enhance global procurement Moderate cost centers: provide enhanced competitiveness on projects 13

CURRENCY FLUCTUATIONS: MINIMIZING THE IMPACT ON EARNINGS AND LONGER TERM, ON OUR COMPETITIVENESS Euroland

USA

Rest of world

Workforce

36%

19%

45%

Fixed assets

57%

12%

31%

Other (procurement and subcontracting)

Revenues (9 months 2003, after hedging)

A Specific Mix for Each Contracts, With Some Flexibility to Switch to Low Currency Areas

€

$

others

49%

22%

29%

Our policy: Î maximize natural hedging by reducing the share of Euro based costs Î hedge systematically the residual exposure

14

RETURN ON CAPITAL: DEVELOP A LESS CAPITAL-INTENSIVE GROWTH

PP&E / Revenue at the end of each period A) PP&E B) Revenue A/B

Former Coflexip 2001

Former Technip 2001

TechnipCoflexip 2002

Technip 09/30/03

689

165

861

738

1,899

3,051

4,452

36.3%

5.4%

19.3%

4,560* 16.2%

* annualized revenue

Î This improvement was obtained through the sale of several non-strategic assets in 2002-2003 and a selective approach to new capital spending. Î We intend to continue this way in the future in order to maximize Return on Capital Employed

15

III.

OUTLOOK 1.

Starting Point: The Backlog

2.

The Short Term View

3.

The Longer Term Perspective

16

STARTING POINT: THE BACKLOG 7,526

Backlog evolution in € million +30%

3,140

5,776

Coflexip

4,770

4,926

1,360

1,887

1,761

3,625 3,410

Offshore

4,081 Onshore/ Downstream

3,039

Technip

12-31-2000

12-31-2001

390

305

12-31-2002

09-30-2003

Industries

09-30-03 backlog matches the level recorded at 06-30-03, which was an historic record for the Group

17

OUTLOOK: OUR MARKETS NEXT YEAR (in $ bn) 30

Onshore / Downstream + Industries

20

Offshore

10

0 2003

2004 Source: company databank

2004: market should remain buoyant with a limited slowdown of new contract awards expected in West Africa offshore

18

OUTLOOK: THE LONGER TERM PERSPECTIVE Average capital spending per (in $ bn) year in oil & gas E&P projects 180 160

A growing share of Capex will go to non-conventional resources:

140 120 100

Î deep and ultra deep offshore fields

80 60

Î international gas development

40 20 0 2000s

2010s

2020s Source: IAE, Nov.2003

19

For more information, please contact: INVESTOR RELATIONS G. Christopher Welton Tel. +33 (0) 1 47 48 66 74 e-mail: [email protected] David-Alexandre Guez Tel. +33 (0) 1 47 78 27 85 e-mail: [email protected]

ISIN FR0000131708 20

SAFE HARBOR STATEMENT

S

tatements in this document that are not historical fact are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including forward-looking statements with respect to the financial condition, results of operations, business and business cycles, competitiveness and strategy of the Technip Group. Such statements are based on a number of assumptions, expectations and forecasts that could ultimately prove inaccurate, and are subject to a number of risks and uncertainties that could cause actual results to differ materially, including currency fluctuations, the level of capital expenditure in the oil and gas industry as well as other industries, the timing of development of energy resources, construction and project risks, armed conflict or political instability in the Persian Gulf or other regions, the strength of competition, interest rate fluctuations, control of costs and expenses, the reduced availability of governmentsponsored export financing, the timing and success of anticipated integration synergies and stability in developing countries. For a further description of such risks and uncertainties, see the reports filed by Technip with the Securities and Exchange Commission and the “Commission des Opérations de Bourse.” Technip disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Except as otherwise indicated, the financial information contained in this document has been prepared in accordance with French GAAP, and certain elements would differ materially upon reconciliation to US GAAP.

21

ANNEX

22

Q3 ACCOUNTS

23

QUARTERLY MAIN NUMBERS In € million

Q3 2003

Q3 2002

% Change

Order Intake

1,484

1,526

(3%)

Backlog (sept. 30)

7,526

6,063

+24%

Revenues

1,257

1,135

+11%

72.7

58.8

+24%

31.6

37.1

(15%)

2.3

7.5

ns

1.4

1.55

(10%)

0.41

0.45

(10%)

EBITA Net Income before Goodwill Net Income after Goodwill EPS (€) E/ADS* ($)

* For both periods E/ADS is calculated using the Federal Reserve Bank of New York noon buying rate (USD/EUR) of 1.1650 as of September 30, 2003.

24

OFFSHORE ACTIVITIES (compared to Q3 2002)

Q3 2003 (in € million) Order Intake Backlog Revenues EBITA

margin

+

SURF 580 +22%

111 +113%

2,117 +65%

1,023 +59%

372

9.4%

= Offshore activities

Facilities

6.9%

15.9

ns

+31%

3,140 +63%

230 +13%

+9%

35.0 -29%

691

8.5%

602

+10%

50.9

+29%

25

OFFSHORE ACTIVITIES : FIRST HALF 2003 RESTATEMENT

Due to a change in the allocation method of corporate overheads within the offshore branch, SURF and Facilities EBITA have been restated as follows.

H1 published

adjustment

H1 restated

Q3

9 months

EBITA SURF

33

-4

29

35

64

EBITA Facilities

26

+4

30

16

46

EBITA Offshore

59

0

59

51

110

26

ONSHORE ACTIVITIES (compared to Q3 2002)

Q3 2003 (in € million)

Onshore and Downstream

Order Intake

681

Backlog

Industries

margin

3.4%

562

+7%

19.3

+8%

=

Onshore activities

112 +120%

-28%

4,081 +6%

Revenues EBITA

+

2.6%

793

-20%

305

+6%

4,386

+6%

93

+43%

655

+11%

2.4 +71%

3.3%

21.7 +13%

27

Q3 CASH FLOW STATEMENT (€m)

USES

SOURCES Operating Cash Flow Change in Working Capital

68 101

Capital Expenditures

31

Gross Debt Reduction

71

FETA and Others Cash

TOTAL

169

TOTAL

4 63

169

28

SIGNIFICANT CONTRACTS AWARDED SO FAR IN 2003

29

DALIA Floating platform (FPSO) + subsea development (Surf) for the Dalia deep water oil field (1200 to 1500 m) Client: TOTAL Angola

ANGOLA DALIA DALIA

EPIC contracts:780 MUSD (Technip’s portion) Delivery: 2006 IPB

Use of the flexible IPB (Integrated Production Bundle) technology developed by Technip

30

GTL QATAR Gas-To-Liquids (GTL) complex at Ras Laffan

GTL GTL QATAR QATAR

QATAR

Client: ORYX GTL Ltd (Qatar Petroleum / Sasol) Turnkey contract: 675 MUSD Delivery: Q4 2005

The world’s biggest GTL project (34,000 bl/day) and technologically the most advanced

31

SIMIAN / SAPPHIRE Subsea development (Surf) of deep sea gas fields (700 - 1000 m) Client: Burullus Gas (EGAS / British Gas / Petronas) SIMIAN SIMIAN // SAPPHIRE SAPPHIRE

EGYPT

EPIC contract: 550 MUSD Delivery: 2005

The first major offshore project in Egypt

32

EAST AREA Fixed gas compression platform Client: EXXON MOBIL

NIGERIA EAST EAST AREA AREA

EPIC contract: 460 MUSD Delivery: 2006

Float-over installation using Technip’s Unideck laying system

33

NEB Development of onshore and shallow water offshore oil fields North East of Abu Dhabi NEB NEB

ABU DHABI

Client: ADCO Turnkey contract: 375 MUSD (Technip’s portion) Delivery: 2005

34

CORINTH REFINERY Extension of the Corinth refinery Client: Motor Oil Hellas

GREECE

Contract: 300 MUSD Delivery: March 2005

CORINTH CORINTH REFINERY REFINERY

Project linked to 2005 European specifications for petroleum products

35

SHAH DENIZ TPG 500 gas drilling and production platform in the Azerbaijan sector of the Caspian Sea (105 m)

CASPIAN SEA SHAH SHAH DENIZ DENIZ

Client: BP and partners EPIC contract of 300 MUSD Delivery: 2006

TPG 500 is a self-installing production platform designed by Technip

36

HDT RIYADH Diesel hydrotreating plant for the Riyadh refinery Client: Saudi Aramco HDT HDT RIYADH RIYADH

SAUDI ARABIA

Turnkey contract Delivery: 2006

The continuing "success story" with Aramco

37

BAOBAB Development of a deepwater field (Surf) (900 - 1300 m)

IVORY COAST BAOBAB BAOBAB

Client: CNR International Contract: 125 MUSD Delivery: 4Q 2004 and 1Q 2005

A new customer (CNR) with significant potential for new business

38

GUAMARÉ (BRAZIL) Onshore gas treatment plant Customer: Petrobras Contract: 85 MUSD

GAS GAS TREATMENT TREATMENT

Delivery: Q1 2005

BRAZIL

First outcome of the synergies between the Group’s units in Brazil

39

LNG TERMINAL, U.S.A. LNG terminal (reception / regasification) at Freeport, Texas Client: Freeport LNG Development

U.S.A. LNG LNG TERMINAL TERMINAL FREEPORT

Front end engineering design (FEED) prior to EPC contract FEED completion: 2003 Terminal delivery: 2007

First project for the construction of an LNG terminal in the U.S.A. 40