Tesmec S.p.a. · MIL:TES

Tesmec — STAR Conference London 2011

16 slides from Tesmec's conference presentation, Oct 3, 2011

  1. Slide 1: Tesmec Group First Half 2011 Results

    Tesmec Group First Half 2011 Results STAR Conference London, 3rd October 2011 Corporate

  2. Slide 2: Group Structure

    Group Structure Tesmec S.p.A. Tesmec Tesmec Tesmec Balkani Effect on Service Fully USA Inc EOD EBITDA and S.p.A. (75%)* (100%) Consolidated Pre-Tax (100%) Profit Operating Companies Tesmec Condux Peninsula Tesmec (49%) (50%) Equity Effect on Pre-Tax Method Profit East Trenchers Locavert (24%) (39%)

  3. Slide 3: First Half 2011 Results

    First Half 2011 Results Tesmec (Cons.) Income Statement 1H 2011 1Q 2Q 1H 1Q 2Q 1H (€ m) v s 1H 2010 2010 2010 2011 2011 2011 2010 Rev enues 29,3 24,1 53,4 26,5 29,6 56,1 5% EBITDA 5,5 4,9 10,4 5,3 5,4 10,7 3% % Revenues 18,8% 20,3% 19,4% 20,0% 18,2% 19,0% EBIT 4,3 3,6 7,9 3,9 4,1 8,0 1% % Revenues 1

  4. Slide 4: Financial Information

    Financial Information Tesmec (Cons.) Financial Information (€m) 1H 2011 vs 2010 2010 1Q 2011 1H 2011 delta % Net working capital 40,2 48,4 43,0 7% Non current assets 26,1 47,0 46,4 78% Other LT assets/(liab) 1,1 1,6 1,7 55% Net invested capital 67,4 97,0 91,1 35% Net financial indebtedness 32,7 61,4

  5. Slide 5: Main business highlights: Stringing

    First Half 2011- Main business highlights: Stringing • Strong sales (+13,3%) driven mainly by Russia and Brazil market; • Technological agreement signed with FSK (russian federation), Third world-wide TSO (Transmission System Operator); • Railway: signed contract for the supply of the first set of e

  6. Slide 6: Main business highlights: Trenching

    First Half 2011 - Main business highlights: Trenching • Sales recovery in Q2 (+46,6% vs. SPPY) driven mainly by Middle East and Usa market; • Tesmec Peninsula start up in q2 to develop sales in arabian gulf area; • Contracting: new project in Saudi Arabia (KAFD) start up and structure in place to ma

  7. Slide 7: Revenues and EBITDA for Stringing and Trencher Division

    First Half 2011 - Revenues and EBITDA for Stringing and Trencher Division Revenues (€ mln) 56,1 +5,2% 53,4 29,3 29,7 -5,6% 26,5 24,1 +13,4% Stringing Equipment Trenchers EBITDA (€ mln and % of Net Revenues) Service 10,4 19,4% 10,7 19 % 48% 11,1% 5,6 14,1% 4,7 5,3 5,4 50% 45,5% 6,6% 16,6% 14,9% 6,6%

  8. Slide 8: Revenues: international scale and exposure to growing economies

    First Half 2011 - Revenues: international scale and exposure to growing economies 2010 2011 Stringing equipment 7% 5% 4%3% 5% 6% 24% 23% 2% 4% 53% 63% Italy Europe Middle East BRICs and Oceania Africa North-Central America Trenchers 14% 6% 12% 23% 4% 17% 4% 25% 3% 54% 38% Italy Europe Middle East BR

  9. Slide 9: EBITDA path

    First Half 2011 - EBITDA path Tesmec Group  EBITDA on Revenues moved from 19,4% (1H 2010) to 19% (1H 2011)  Accounting treatment of the new rent contract affected positively EBITDA by 0,8 mm euro  Ebitda decrease explained primarly by an exchange differences effect, and in slight cause for margin

  10. Slide 10: NET PROFIT path

    First Half 2011 - NET PROFIT path Tesmec Group  Net Profit decrease mainly due to negative trend in Eur/Usd exchange rate which affects Ebitda margin and Net results; € mln 0,3 0,5 (0,8) 0,1 (1,3) 10/15

  11. Slide 11: Working Capital Evolution

    First Half 2011 - Working Capital Evolution Tesmec Group  Receivables were impacted by the growth of revenue but increased less than proportionally than sales  Payables increase was mainly linked to turnover in sales Days Calculated on Revenues € mln Working Capital Evolution 60 1,5 1 0,8 40 (0,5)

  12. Slide 12: NFP Evolution

    First Half 2011 - NFP Evolution Tesmec Group  Main variance related to accounting of new rent contract (IAS 17);  The value of this financial debt is not included in the calculation of the covenants of the main loan agreements;  Working capital increase in proportion to the sale increase;  Divid

  13. Slide 13: Exchange exposure

    First Half 2011 - Exchange exposure 13/15

  14. Slide 14: Summary Profit & Loss statement with the effects of new rent contract

    First Half 2011 - Summary Profit & Loss statement with the effects of new rent contract accounted under IAS 17 A B A+B Profit & Loss Account (€ m) 1H 2011 Delta vs IAS 17 1H 2011 1H 2010 Delta % adj 2010 Net Revenues 56,1 56,1 53,4 2,7 5,1% Raw materials costs (-) (26,8) (26,8) (24,1) (2,7) 11% Cost

  15. Slide 15: Summary Balance Sheet with the effects of new rent contract

    First Half 2011 - Summary Balance Sheet with the effects of new rent contract accounted under IAS 17 A B A+B Balance Sheet (€ m) 2011 adj IAS 17 2011 2010 Inventory 43,0 43,0 42,2 Accounts receivable 34,0 34,0 32,5 Accounts payable (-) (26,8) (26,8) (26,3) op. working capital 50,2 0,0 50,2 48,4 Othe

  16. Slide 16: TESMEC S.p.A - Headquarters

    The Manager responsible for preparing the company’s financial reports, Andrea Bramani, declares, pursuant to paragraph 2 of Article 154-bis of the Consolidated Law on Finance, that the accounting information contained in this presentation corresponds to the document results, books and accounting rec

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