Tesmec S.p.a. · MIL:TES
Tesmec — Non-Deal Roadshow (November 2020)
32 slides from Tesmec's roadshow presentation, Nov 21, 2020
Slide 1: Company Presentation
COMPANY PRESENTATION November 2020
Slide 2: Disclaimer
DISCLAIMER This presentation has been prepared by Tesmec S.p.A. (“Tesmec”, the “Company” or the “Group”). As used herein, “Presentation” means this document, any oral presentation, the question and answer session and any written or oral material discussed or distributed during the presentation. The
Slide 3: Today's Speakers
TODAY’S SPEAKERS Ambrogio Caccia Dominioni Chairman & CEO Paolo Mosconi Carlo Caccia Dominioni Marco Paredi General Manager Energy BU Director CFO November 2020 3
Slide 4: Index
INDEX 1 Group Overview 2 2020-2023 Business Plan Guidelines 3 Use of Proceeds & Closing Remarks 4 Rights Issue – Key Terms Annex November 2020 4
Slide 5: Tesmec Group at a Glance
TESMEC GROUP AT A GLANCE VALUE PROPOSITION BUSINESSES To be a technological partner in ENERGY TRENCHER the infrastructure market for the transport of energy, data and materials, providing value-added integrated solutions for our customers KEY FIGURES 8 Production ENERGY plants STRINGING AUTOMATION R
Slide 6: Business Overview
BUSINESS OVERVIEW AUTOMATIC LAYING CIVIL SURFACE MINING & OIL, GAS & WATER FIBRE & ENERGY INFRASTRUCTURE & QUARRIES PIPELINES High powered tracked CABLES UTILITIES trenchers for linear TRENCHER excavation and surface miners for bulk excavation UNDERGROUND OVERHEAD POWER POWER LINE NEW FULL ELECTRIC
Slide 7: Business Strategy Evolution
BUSINESS STRATEGY EVOLUTION STRATEGY EVOLUTION FROM …TO EQUIPMENT SUPPLIER… INTEGRATED SOLUTIONS PROVIDER EQUIPMENT SUPPLIER FULL-SERVICE PROVIDER INTEGRATED VALUE CHAIN TRENCHER Design & production of trenchers able to Digital and connected systems Fibre installation & automatic laying of work unde
Slide 8: Green and Digital Technology Trends Drive Market Opportunities
GREEN AND DIGITAL TECHNOLOGY TRENDS DRIVE MARKET OPPORTUNITIES Sector BU Main markets Market growth Key growth drivers Power grid 23%* ▪ Environmental issues and greater focus on energy saving ENERGY ENERGY and efficiency 2019-2040 & Smart Grid CAGR ▪ Faster growth of renewables in the electricity s
Slide 9: Financial Highlights – P&L
FINANCIAL HIGHLIGHTS – P&L M€ 288.0 Backlog includes provisional award of 50.0 the RFI tender for 50M€ = ~288M€ ▪ Strong pipeline of potential new BACKLOG 238.0 tenders 200.0 188.0 198.0 2018 2019 9M2019 9M2020 M€ ▪ Due to government measures on Covid- 19, production activities restarted in May, and
Slide 10: Financial Highlights – Business Breakdown
FINANCIAL HIGHLIGHTS – BUSINESS BREAKDOWN M€ TRENCHER Revenues EBITDA (Margin %) Backlog 15.5% 15.8% 13.3% 10.9% 8.0% 125.5 125.3 124.2 92.0 19.2 70.9 68.0 89.4 16.6 65.1 60.9 68.4 10.0 9.8 10.8 2018 2019 2019PF (1) 9M2019 9M2020PF (1)(2) 2018 2019 2019PF (1) 9M2019 9M2020PF (1)(2) 3Q2019 2019 1Q202
Slide 11: Financial Highlights – Balance Sheet
FINANCIAL HIGHLIGHTS – BALANCE SHEET M€ 73.0 64.7 83.3 79.5 48.9 69.9 69.9 77.5 78.1 62.6 ▪ Increase in inventories 16.3 16.3 17.9 16.6 in 1H2020 to support 11.0 2H2020 growth (post NET WORKING 67.9 68.6 59.8 61.0 52.6 Covid-19) and change CAPITAL to the Group perimeter (54.4) (50.9) (55.1) (4Servic
Slide 12: Financial Highlights – Cash Flow
FINANCIAL HIGHLIGHTS – CASH FLOW M€ NET FINANCIAL POSITION ▪ 9M2020 NFP mainly impacted by: ▪ Change of the consolidation area due to the 4Service Group acquisition ▪ NWC absorption in 1H2020 due to increase in inventories (Covid-19 effect) in 1H, partially compensated during 3Q November 2020 12
Slide 13: Index
INDEX 1 Group Overview 2 2020-2023 Business Plan Guidelines 3 Use of Proceeds & Closing Remarks 4 Rights Issue – Key Terms Annex November 2020 13
Slide 14: Tesmec: A History of Growth in Technologies
TESMEC: A HISTORY OF GROWTH IN TECHNOLOGIES 2010 2010 INVESTMENT & 2020-2023 - 2019 IPO DIVERSIFICATION THE NEXT DEVELOPMENTS ▪ Historical businesses: ▪ Strategic M&A in the Rail, ▪ Focus on existing businesses Stringing and Trencher Energy Automation and Rental ▪ From equipment manufacturer to solu
Slide 15: 2020-2023 Business Plan Guidelines
2020-2023 BUSINESS PLAN GUIDELINES M€ 275-290 200 ▪ Significant performance by Energy Automation 170 ▪ Stringing segment back to historical performance levels TURNOVER ▪ Focus on recurring revenues (rental & services) ▪ Growth in each business line 2019PF 2020E 2023E Margin 15.0% 13.5% 20% M€ 53-58
Slide 16: Evolution of Revenue and EBITDA Mix
EVOLUTION OF REVENUE AND EBITDA MIX REVENUES 2019PF 2023 Energy Trencher - 22% Energy Rental&Services ~30% 20% 19-23 CAGR: ~8.5%-10.0% Trencher Rail ~55% 16% Trencher - Sa l e s R a il 42% ~15% EBITDA 2019PF 20231 Energy 19% Energy 19-23 CAGR: ~17.0%-18.0% Trencher Trencher Rail 64% 17% R a il Note:
Slide 17: Evolution of Business EBITDA Margin
EVOLUTION OF BUSINESS EBITDA MARGIN EBITDA Margin 2019 9M2020PF 2023E KEY DRIVERS ▪ Higher contribution of rental and after-sales service (higher EBITDA margin) TRENCHER 13.3% 15.8% >17.0% ▪ Efficiency in production and logistics thanks to product range rationalisation and standardisation of technol
Slide 18: Index
INDEX 1 Group Overview 2 2020-2023 Business Plan Guidelines 3 Use of Proceeds & Closing Remarks 4 Rights Issue – Key Terms Annex November 2020 18
Slide 19: Use of Proceeds
USE OF PROCEEDS ▪ Financial ratio improvements and rating upgrade, adding further commercial competitiveness STRENGTHENING FINANCIAL STRUCTURE ▪ Net financial position improvement AUTOMATION ENERGY STRINGING Internationalisation of Financial contribution ENERGY Strengthening of the business activiti
Slide 20: Closing Remarks
CLOSING REMARKS Reiterating the company’s 2020 outlook for revenues and EBITDA, despite potential deterioration in the macro outlook, and for a strong backlog Improved financial flexibility following ≈50M€ in long-term loans (Liquidity Decree) Appealing core markets, expected to grow even faster in
Slide 21: Index
INDEX 1 Group Overview 2 2020-2023 Business Plan Guidelines 3 Use of Proceeds & Closing Remarks 4 Rights Issue – Key Terms Annex November 2020 21
Slide 22: Tesmec Rights Issue – Key Terms
TESMEC RIGHTS ISSUE – KEY TERMS Issuer ▪ Tesmec S.p.A. Offering type ▪ Capital increase with pre-emptive subscription rights for ordinary shareholders Offering size ▪ ~35M€ Offer price ▪ 0.07€ per share (~21.7% discount to TERP) Option ratio ▪ 200 new ordinary shares for every 41 ordinary shares No.
Slide 23: Shareholding Structure
SHAREHOLDING STRUCTURE Market Treasury Shares 49.5% 4.4% (1) TTC Group 46.1% SUBSCRIPTION AND ▪ Subscription commitment: TTC Group (~16.8M€) UNDERWRITING ▪ Underwriting commitment: TTC Group (up to 5M€) and Palladio Holding S.p.A. (up to 3.5M€) COMMITMENTS ▪ Total subscription and underwriting commi
Slide 24: Index
INDEX 1 Group Overview 2 2020-2023 Business Plan Guidelines 3 Use of Proceeds & Closing Remarks 4 Rights Issue – Key Terms Annex November 2020 24
Slide 25: Covid-19 Impact
COVID-19 IMPACT ▪ No impact on Tesmec’s core markets but order delays due to the shutdown of production plants and logistical facilities 1st ▪ Reopening of production activities in May 2020 with full restart during June 2020 in WAVE accordance with Government rules ▪ Recovery and growth thanks to ne
Slide 26: Tesmec Group – Financials (1/3)
TESMEC GROUP – FINANCIALS (1/3) Consolidated Income Statement - M€ 20181 2019 2019PF 9M2019 9M2020 9M2020PF 2019/20181 9M20/9M19 Revenues from sales and services 194.6 200.7 199.6 144.2 116.8 119.0 3.1% (19.0%) Cost of raw materials and consumables (89.1) (88.0) (87.2) (63.2) (49.8) (50.8) (1.2%) (2
Slide 27: Tesmec Group – Financials (2/3)
TESMEC GROUP – FINANCIALS (2/3) Balance Sheet - M€ 20181 2019 2019PF 9M2020 Trade receivables 52.6 67.9 68.6 61.0 Work in progress contracts 11.0 16.3 16.3 16.6 Inventories 62.6 69.9 69.9 78.1 Trade payables (54.4) (57.5) (57.5) (55.1) Other current assets/(liabilities) (22.9) (23.6) (32.7) (21.2) N
Slide 28: Tesmec Group – Financials (3/3)
TESMEC GROUP – FINANCIALS (3/3) Consolidated Cash Flow - Eu mn 20181 2019 2019PF 9M2019 9M2020 Net profit for the period 0.0 3.0 1.6 0.7 (4.8) Amortisation and depreciation 15.2 19.1 23.6 13.5 15.5 Provisions for employee benefit liability 0.4 0.6 0.6 0.3 - Provisions for risks and charges and other
Slide 29: Focus on 3Q2020 Financials
FOCUS ON 3Q2020 FINANCIALS M€ 1H 3Q 9M YTD 2020PF 2019 Var. 2020PF 2019 Var. 2020PF 2019 Var. REVENUES 73.0 97.5 (25.1%) 46.0 46.7 (1.5%) 119.0 144.2 (17.5%) 9.8 12.1 7.8 5.3 17.6 17.4 EBITDA (18.8%) 47.2% 0.9% 13.4% 12.4% 14.6% 11.4% 14.8% 12.1% EBIT (1.4) 3.3 1.8 0.6 0.4 3.9 ▪ After a first half o
Slide 30: Plants
PLANTS ENERGY TRENCHER RAIL STRINGING AUTOMATION Tesmec SPA Grassobbio Tesmec SPA Endine Tesmec SPA Sirone (precision machining work) Marais Durtal (FR) Tesmec USA Alvarado (USA) Tesmec Rail Monopoli Tesmec Automation Patrica Tesmec Automation Padova-Fidenza November 2020 30
Slide 31: Sustainability
SUSTAINABILITY CORPORATE STRATEGY The 2020-2023 Business Plan envisages a focus on: ▪ Higher sustainability for the Group’s activities, thanks to more responsible production and consumption behaviour ▪ Contribution to decarbonisation and the smart economy, thanks to offering customers more digital a
Slide 32: www.tesmec.com
@TE=MeEc www.tesmec.com