Slide 1: Tesmec Group
Tesmec Group >> Corporate €TESMEC
Slide 2: Index
Index Company Profile 2010 Financial results Appendix 2/20
Slide 3: Tesmec Group
Tesmec Group Tesmec Group mainly operates in the market of infrastructure for the transport of electricity, data and materials (petroleum and derivatives, gas, water), a strategic area for growth and modernization of each Country. Integrated systems for stringing power lines, fiber optic cables and
Slide 4: Products and Markets
Products and Markets Mission Design, production and marketing of integrated solutions for the construction and maintenance of infrastructures such as aerial and underground networks and pipelines. Business lines STRINGING EQUIPMENT TRENCHERS Products Stringing Railway Multipurpose Trenchers Equipmen
Slide 5: Global Footprint
Global Footprint 1 Headquarter (Grassobbio) and 3 production sites in Italy (Grassobbio, Endine, Sirone) Trencher production facility in Alvarado JV for the supply of stringing equipment to the US market Representative offices in Russia and China Trenchers supply company Commercial offices in Canada
Slide 6: Production Plants
Production Plants TOTAL AREA COVERED AREA PRODUCTS ACTIVITIES (m2) (m2) GRASSOBBIO (BG - Italy) Stringing Mechanical works equipment Quality control 68,000 32,500 Trenchers Assembly Gallmac machines Testing ENDINE GAIANO (BG - Italy) Stringing Quality control equipment 20,000 7,500
Slide 7: Shareholding Structure
Shareholding Structure Ennismore AM Italiana Alimenti 3T Finanziaria 2,30% 5,34% S.p.A. Albemarle AM 7,45% 2,10% TTC S.r.l. Free float 30,30% 39,97% FI.IND S.p.A. Post IPO lock-up agreements: 12,54% TESMEC: 360 days TTC & FI.IND.: 360 days 3T Finanziaria: 180 days 7/20
Slide 8: Index
Index Company Profile 2010 Financial results Appendix 8/20
Slide 9: 2010 Results
2010 Results Tesmec (Cons.) Income Statement (€ m) Tesmec (Cons.) FY 2009 FY 2010 delta % Financial Information (€m) FY 2009 FY 2010 delta% Revenues 86,0 105,3 22,4% Net working capital 43,1 40,2 -7% EBITDA restated* 15,7 18,6 18,1% Non current assets 24,0 26,1 9% % Revenues - 17,7% Other LT assets/
Slide 10: Strong revenues growth supported by stringing
Strong revenues growth supported by stringing • Revenues (€ mln) 110,2 105,3 89,5 86,1 40,2 62,7 47,9 41,6 Stringing Equipment Trenchers 65,1 41,6 47,5 44,5 2007 2008 2009 2010 • EBITDA (€ mln and % of Net Revenues) 18,3% 17,7% 13,6% 11,4% 18,6 15,0 15,7 14,6% Stringing Equipment 5,9 10,2 8.9% 6,6 1
Slide 11: International scale and exposure to growing economies
International scale and exposure to growing economies 2007 2008 2009 2010 Stringing equipment 8% 3% 5% 18% 4% 62% Italy Europe Middle East BRICs and Oceania Africa North-Central America Trenchers 11% 11% 17% 16% 0% 45% Italy Europe Middle East BRICs and Oceania Africa North-Central America 11/20
Slide 12: Revenues Geographical Split
Revenues Geographical Split Tesmec Group Revenue increase in Stringing was mainly driven by increasing sales in BRICS (India, CIS, China and South America) Middle East growth in Trenching more than compensated by decrease in North America Revenues Geographical Split € mln +3 -0,0 +2,9 +18,7 -0,2
Slide 13: Order Book
Order Book ORDER BOOK 2008 – 2010 €m 60 53,0 45 39,4 23,0 33,2 30 22,1 19,7 15 30,0 17,3 13,5 0 FY 2008 FY 2009 FY 2010 Stringing Equipment Trenchers STRINGING EQUIPMENT TRENCHERS €m €m 90 45 75 60 30 45 81,5 43,5 40,2 30 65,0 15 19,7 23,0 15 30,0 13,5 0 0 Order book 2010 Order Intake Order book Ord
Slide 14: EBITDA path
EBITDA path Tesmec Group Operating leverage, exchange rate, increasing Stringing weight and the “service” business all contributed to increase EBITDA 2010 Volumes effect accounted for 16% of total EBITDA restated increase Reported EBITDA was impacted by IPO costs € mln 20,0 18,0 2,9 (3,5) 16,0
Slide 15: Working Capital Evolution
Working Capital Evolution Tesmec Group Working capital decreased its weight on revenues from 50% to 38% Receivables were impacted by revenues generated during the fiscal year2010 Payables increase was mainly linked to purchases related to increasing production Working Capital Evolution €m 60 4
Slide 16: NFP Evolution
NFP Evolution Tesmec Group NFP benefited from positive operating cash generation in the period equal to 17,5 mln Decrease NWC is related to increase of other liabilities and trade payables In the period were paid dividends for € 2,6m € mln 60 NFP Evolution 50 40 2,8 2,6 (2,9) 6,9 1,6 30 -7,0 2
Slide 17: NFP Composition
NFP Composition Tesmec Group D/E ratio from 2,2x (FY2009) to 0,9 x (2010) NFP/EBITDA from 2,9x (FY2009) to 1,8 x* (2010) * EBITDA before non recurring costs €m NFP Composition 60 50 -3,4 40 +7 30 46,2 20 -17,1 32,7 10 0 NFP FY 2009 Current financial assets Net current financial Medium-long term
Slide 18: Raw Materials Impact
Raw Materials Impact Saving actions Contracts revision with key suppliers with the target of maintaining costs to 2009 level Certification and start up of new suppliers in low cost areas mainly for steel structures (i.e. Bulgaria and Romania steel workshops) 18/20
Slide 19: Index
Index Company Profile 2010 Financial results Appendix 19/20
Slide 20: Summary Profit & Loss statement
Summary Profit & Loss statement Actual Profit & Loss Account (€ m) 2007 2008 2009 2010 Net Revenues 89,5 110,2 86,1 105,3 YoY% 23,1% (21,9%) 22,3% Raw materials costs (-) (49,1) (56,6) (38,5) (48,7) Cost for services (-) (17,5) (22,1) (16,6) (20,6) Personnel Costs (-) (11,2) (15,9) (15,5) (17,1) Oth
Slide 21: Summary Balance Sheet
Summary Balance Sheet Actual Balance Sheet (€ m) 2007 2008 2009 2010 Inventory 30,9 45,6 42,0 42,2 Accounts receivable 18,8 23,9 28,5 32,5 Accounts payable (-) (19,9) (27,4) (21,8) (26,3) Net working capital 29,8 42,1 48,6 48,4 Other current assets (liabilities) (6,5) (3,7) (5,5) (8,2) Net current a
Slide 22: TESMEC S.p.A - Headquarters
TESMEC S.p.A - Headquarters via Zanica, 17/O - 24050 Grassobbio (BG) - Italy Tel. +39.035.423 2911 - Fax +39.035.4522444 Management and Administration Fax +39.035.4522445 Stringing Equipment Division - Fax +39.035.335664 Trencher Division www.tesmec.com - info@tesmec.it