TechnipFMC : 2023 UK Annual Report and Accounts

Contents

Contents

Strategic Report

Letter from Our Chair and CEO

Dear Shareholders,

We closed out a solid year having achieved notable contributions towards the transformation of our industry, while delivering value to our clients. Our ability to improve project economics, primarily through the acceleration of first production, strengthens our alliances and drives growth in direct awards to our Company. As a result, our Subsea inbound orders in 2023 increased 45 percent versus the prior year and included a record level of integrated Engineering, Procurement, Construction, and Installation (''iEPCI™'') projects.

I am particularly pleased with the quality of the inbound we received in the year, with iEPCI™, Subsea Services, and direct awards exceeding 70 percent of total Subsea orders, reflecting the positive outcomes of our strong client relationships and project selectivity. The number of clients adopting Subsea 2.0® is also increasing - now including Equinor in Brazil, ExxonMobil in Guyana, and Chevron in Australia. Subsea 2.0® is a standardized configure-to-order product offering with shorter lead times due to our focus on lean methodology in the design, engineering, and manufacturing processes.

We are seeing similar qualitative improvements in Surface Technologies. This has resulted in improved financial performance, higher cash generation, and greater consistency in delivering on our annual commitments.

We remain committed to returning more than 60 percent of annual free cash flow to our shareholders through at least 2025. In support of our commitment, we initiated a quarterly dividend that represented $0.20 per share on an annualized basis. We also increased our share repurchase authorization by $400 million, which grew our total authorization to $800 million. In 2023, we returned nearly $250 million to shareholders through both share repurchases and dividends.

We believe that our capital allocation policy aligns with shareholder interests, supported by changes to our business and execution models, both of which are driving sustainable improvement in our financial performance. The market continued to recognize the strength and differentiation of our offering, with our share price increasing 65 percent during the calendar year. While 2023 was a period of strong growth for our Company, we see further strength ahead driven by the durability and resiliency of this cycle.

An evolving market

The demand for energy will continue to grow. However, we believe that the market's evolution will differ from the past, driven by three major trends. First, a shift in capital investment flows, which we believe will largely be directed to the offshore and Middle East markets. Second, an increased role for new technologies for both conventional and new energies to drive market expansion. And third, an expanded role for subsea services, driven by the needs of growing and aging infrastructure.

This backdrop, combined with our unique capabilities, gives us the confidence to increase our expectations for Subsea inbound to reach $30 billion over the three-year period ending 2025. The significant increase in our order outlook will provide additional growth in backlog and further extend the execution of our project portfolio through the end of the decade.

Continuing transformation

2024 began with a glimpse of the future with the announcement of our major iEPCI™ contract for Petrobras's Mero 3 HISEP® project. The significance of this project for the subsea industry cannot be overstated. It will be the first to use subsea processing to capture carbon dioxide (''CO2'') rich dense gases directly from the well stream for injection back into the reservoir.

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In addition to reducing greenhouse gas (''GHG'') emission intensity, HISEP® technologies will increase production capacity by debottlenecking the gas processing plant that currently resides on the FPSO. By moving gas processing to the seafloor, future FPSO and topside designs can be further simplified, driving significant improvement in project economics.

This is the first iEPCI™ project for our New Energy team, which aims to leverage our traditional energy expertise to drive change in the energy transition space. Mero 3 HISEP® perfectly illustrates this - allowing us to demonstrate how technology innovation, project integration, and partner collaboration enable our meaningful participation in the energy transition while remaining aligned with our strategic priorities.

Our ESG culture

Our three-year Environmental, Social, and Governance (''ESG'') Scorecard concluded on December 31, 2023, and we establish our 2024-2026 goals in our new Scorecard in the ESG section of this report. We set challenging targets for ourselves in the 2021-2023 Scorecard, including actions tied to our 50 by 30 initiative to reduce our GHG emissions by 50 percent by 2030.

Under the Scorecard's Environmental pillar, we reduced our GHG emissions by 21 percent over the three years and exceeded our waste recycling and reuse target. In the Social and Governance metrics, we achieved or outperformed our targets on fair representation, inclusion, volunteering and STEM initiatives, Serious Injuries and Fatalities (''SIF'') prevention projects, human rights, and ethics and compliance training - far exceeding our targets on some goals. Throughout the Company, our ESG activities go beyond those on our Scorecard.

March 15, 2024

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2023 Financial Performance

Inbound orders1 improved to $11 billion, driven largely by growth in offshore activity

Cash flow from operations of $693.0 million increased year-over-year by $340.9 million, and free cash flow2 of $467.8 million more than doubled when compared to the prior year

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1. Reported financial results for the 12 months ended December 31, 2023 and inbound and backlog as of December 31, 2023 are included in our Annual Report on Form 10-K (''Form 10-K'').
2. Free cash flow is calculated as cash flow from operations less capital expenditures.

For additional details regarding the Company's 2023 financial performance, please see the section entitled ''Business Review.''

Company Overview

TechnipFMC plc (''TechnipFMC,'' the ''Company,'' ''we,'' ''us,'' or ''our'') is a leading technology provider to the traditional and new energy industries, delivering fully integrated projects, products, and services. With our proprietary technologies and comprehensive solutions, we are transforming our clients' project economics, helping them unlock new possibilities to develop energy resources while reducing carbon intensity and supporting their energy transition ambitions.

Organized in two business segments - Subsea and Surface Technologies - we will continue driving change in the energy industry with our pioneering integrated ecosystems, technology leadership, and digital innovation.

Each of our approximately 21,000 employees is driven by a commitment to our clients' success and a culture of execution excellence, purposeful innovation, and challenging industry conventions.

History

On January 17, 2017, FMC Technologies, Inc. and Technip S.A. combined through a merger of equals to create a global subsea leader, TechnipFMC, that would drive change by redefining the development of the subsea infrastructure used in the production of oil and natural gas through a new integrated commercial model. By integrating the complementary work scopes of the subsea production system (''SPS'') with the subsea umbilicals, risers, and flowlines (''SURF'') and installation vessels, we can more efficiently deliver an entire subsea development utilizing our integrated engineering, procurement, construction, and installation model, which we refer to as iEPCI™.

As the only subsea provider to integrate these work scopes, we successfully created a new market and helped expand the deepwater opportunity set for our clients during a challenging market environment. iEPCI has since grown to represent nearly one-third of the addressable subsea market, validating the benefits of our unique business model aimed at improving project economics by lowering project costs and accelerating the delivery schedule of hydrocarbon production. We have created a differentiated platform for further expansion and value creation through our technology innovation, including our Subsea 2.0® (''Subsea 2.0'') configure-to-order product suite, our vast network of customer partnerships, and our services business levered to serve our large and expanding installed base.

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On February 16, 2021, we completed the separation of the Technip Energies business segment (the ''Spin-off''). Technip Energies offered design, project management, and construction services spanning the entire downstream value chain. The separation created two industry-leading, independent, publicly traded companies, TechnipFMC and Technip Energies.

Following the separation of Technip Energies, the Company completed the voluntary delisting of our shares from Euronext Paris in February 2022. A single listing on the New York Stock Exchange was more consistent with the Company's strategic refocus and the geographic location of our shareholder base, and allowed the Company to better align with our most appropriate peer set.

Business Segments

Subsea

Our Subsea segment provides integrated design, engineering, procurement, manufacturing, fabrication, installation, and life of field services for subsea systems, subsea field infrastructure, and subsea pipeline systems used in oil

and natural gas production and transportation.

iEPCI™

We are an industry leader in front-end engineering and design (''FEED''), SPS, SURF, and subsea robotics. We also have the capability to install and service these products and systems using our fleet of highly specialized vessels. We are able to drive even greater value to our clients by integrating the SPS and SURF through more efficient design and installation of subsea field architecture. The resulting improvement in project economics has enabled the successful market adoption of our integrated engineering, procurement, construction and installation model, iEPCI, which now serves as the industry standard for integrated project execution.

iEPCI is our unique, fully integrated approach to designing, managing, and executing subsea projects. By combining complementary skills with innovative technologies, we improve project economics by lowering costs and accelerating time to first oil and natural gas for our clients. iEPCI projects are partnerships based on mutual trust and sharing knowledge. Success is built on early engagement and a collaborative, cooperative approach, both internally and with our clients.

Our integrated commercial model often begins with an integrated FEED study, or iFEED™ (''iFEED''), where we are uniquely positioned to influence project concept and design through early client engagement, allowing for the highest degree of integration. Using innovative solutions for subsea architecture, including standardized configurable equipment, new technologies, digital services, and simplified installation, we can optimize field design and layout.

Our first-mover advantage and ability to convert iFEED studies into iEPCI contracts, often as direct awards, creates a unique set of opportunities for us. This allows us to deliver a fully integrated - and technologically differentiated

• subsea system, and to better manage the complete work scope through a single contracting mechanism and a single interface.

Following project delivery, we continue to support our clients by offering aftermarket and life of field services, which include production optimization, asset life extension, debottlenecking, and condition-based maintenance. Our wide range of capabilities and solutions allows us to help clients increase oil and natural gas recovery and equipment uptime while reducing overall cost. Our integrated life of field offering, iLOF™, is designed to unlock the full potential of subsea infrastructures during operations by proactively addressing the challenges operators face over the life of subsea fields.

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Subsea Segment Products and Services

Subsea Production Systems (SPS)

Our SPS are used in the offshore production of oil and natural gas. Systems are placed on the seafloor and are used to control the flow of oil and natural gas from the reservoir to a host processing facility, such as a floating production facility, a fixed platform, or an onshore facility.

Our products and integrated systems include subsea trees, chokes and flow modules, manifold pipeline systems, controls and automation systems, well access systems, multiphase and wet-gas flow meters, and additional technologies. We offer both electro-hydraulic and all-electric Subsea Production Systems, depending on the specific needs of the customer or field. The design and manufacture of our subsea systems requires a high degree of technical expertise and innovation. Some of our systems are designed to withstand exposure to the extreme hydrostatic pressure of deepwater environments, as well as internal pressures of up to 20,000 pounds per square inch (psi) and temperatures of up to 400º F. The development of our integrated subsea production systems includes initial engineering design studies and field development planning, and considers all relevant aspects and project requirements, including optimization of drilling programs and subsea architecture.

Subsea Processing Systems

Our subsea processing systems, which include subsea boosting, subsea gas compression, and subsea separation, are designed to accelerate production, increase recovery, extend field life, lower greenhouse gas emissions, and lower operators' production costs for greenfield and brownfield applications.

Subsea Umbilicals, Risers, and Flowlines (SURF)

We are a leading provider of SURF infrastructure. We develop, engineer, manufacture, and install umbilicals, flexible, hybrid-flexible and rigid pipelines, connections, and tie-ins for subsea systems.

We offer a comprehensive range of umbilical systems including steel tube umbilicals, thermoplastic hose umbilicals, power and communication systems, and hybrid umbilicals.

We are the industry leader in the design and manufacture of flexible pipe that consists of the combination of plastic and steel layers that can be easily adapted to the diverse requirements of subsea developments. We are also the industry innovator in ''hybrid-flexible'' pipe, which utilizes unique and proprietary thermoplastic composite materials to meet the needs of the most challenging production environments. Our rigid pipes are designed to optimize flow assurance through innovative insulation coatings, electric trace heating, plastic liners, and pipe-in-pipe systems.

Vessels

We have a fleet of 16 vessels, which typically perform the installation of our products and systems. We have sole ownership of eight vessels, ownership of six vessels as part of joint ventures, and two vessels operated under charter agreements.

Subsea Services

Subsea Services provides a portfolio of Well and Asset services that drive value and efficiency throughout the life of our clients' subsea development cycle. Our vision is to deliver customer service excellence every day, with the purpose of maximizing the performance of our clients' well and asset operations.

Well Services includes the following offerings:

Drilling: exploration and production wellhead systems and services;

Installation: installation of subsea production and processing systems;

Intervention: rig and vessel-based well intervention services;

Plug and abandonment: rig- and vessel-based subsea equipment retrieval and plug and abandonment; and

ROV: remotely operated vehicle (''ROV'') support services.

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Asset Services includes the following offerings:

Maintenance: test, modification, refurbishment, and upgrade of subsea equipment and tooling;

Asset integrity: optimizing the performance of the subsea asset through product and field data, including inspection, maintenance, and repair (''IMR''); and

Production management: enhanced well and field production, including real-time virtual metering and flow assurance services.

Robotics

Our Schilling Robotics business is the leading designer and manufacturer of Subsea Remotely Operated Vehicles (ROVs), ROV tooling systems, and robotic manipulator arms. We continue to revolutionize deepwater productivity

• enabling safe and more challenging subsea developments through our advanced and industry-leading robotic technologies.

The Company manufactures GEMINI®, a fully integrated, next generation ROV intervention system that provides unprecedented subsea productivity for our clients. The integration of ROV, manipulators and tooling, advanced automation, and computer vision technology enables a transition to highly automated subsea robotics, which reduces task time from hours to minutes, ensuring predictable results every time. GEMINI® can easily access tools for subsea intervention operations without returning to deck to reconfigure tooling - maximizing productivity and significantly reducing operating time offshore.

Our robotic offerings also include the Athena™ manipulator system - the latest addition to the portfolio - which leverages a subset of GEMINI® technologies and can be retrofitted to existing ROVs.

Subsea Studio™ Digital Platform

Through Subsea Studio™, we connect data, technology, and expertise to optimize the development, execution, and operation of current and future subsea fields. Our open ecosystem connects applications using common data models throughout a project's lifecycle and can exchange data with suppliers, partners, and clients, providing immediate access to information to improve the efficiency and quality of decisions and planning.

Dependence on Key Customers

Generally, our customers in the Subsea segment are major integrated oil companies, national oil companies, and independent exploration and production companies. Petrobras accounted for more than 16 percent of our

2023 consolidated revenue. Our list of customers has expanded to more than 40 unique clients, which has allowed us to further diversify our dependence away from any single customer.

We actively pursue alliances with companies engaged in the subsea development of oil and natural gas to promote our integrated systems for subsea production. These alliances are typically related to the procurement of subsea production equipment, although some are related to engineering, procurement, construction, and installation services. Development of subsea fields, particularly in deepwater environments, involves substantial capital investments. Operators have also sought alliances with us to ensure timely and cost-effective delivery of subsea and other energy-related systems that provide integrated solutions to meet their needs.

Our alliances establish important ongoing relationships with our customers. While these alliances do not contractually obligate our customers to purchase our systems and services, they have resulted in a growing number of direct awards to the Company.

The commitment to our customers goes beyond project delivery, and we foster these alliances with transparency and collaboration to better understand their needs and ensure customer success.