Slide 1: Integrated Solutions Provider – STAR Conference
Integrated Solutions Provider STAR Conference – 12 October 2021
Slide 2: Index
Index 0. Tesmec Group at a glance 1. Strategic overview 2. 2021.H1 Results 3. Outlook 4. ANNEX
Slide 3: Tesmec Group at a glance
————— €TESMEC Tesmec Group at a glance
Slide 4: Integrated Solutions Provider for Energy and Data transport
Integrated Solutions Provider for Energy and Data transport PURPOSE Consolidate the position as a solution provider in the reference markets driven by the trends of energy transition, digitalization, and sustainability. Vision Mission Value proposition Strategy To be a technological To operate in th
Slide 5: Tesmec Group at a glance
Tesmec Group at a glance ENERGY - STRINGING RAILWAY 70 +900 10 YEARS PEOPLE MANUFACTURING of experience PLANTS ▪ Solutions for power lines ▪ Catenary lines construction & construction & maintenance maintenance ▪ Advanced methodologies for ▪ Diagnostic vehicles and systems automating jobsite ▪ Integr
Slide 6: Energy Stringing
Energy Stringing ▪ SOLUTIONS FOR POWER LINES CONSTRUCTION & MAINTENANCE T&D POWER LINES ▪ ADVANCED METHODOLOGIES FOR AUTOMATING JOBSITE ▪ ZERO EMISSIONS MACHINES 6
Slide 7: Energy Automation - Fields of application
Energy Automation - Fields of application ▪ PROTECTION & MONITORING SMART GRIDS ▪ REMOTE CONTROL ▪ SERVICE TELECOMMUNICATIONS ▪ SMART METERING 7
Slide 8: Trenchers - Fields of application
Trenchers - Fields of application ▪ TELECOM NETWORKS, FTTH & LONG DISTANCE UNDERGROUND INFRASTRUCTURES ▪ POWER CABLE INSTALLATION & RENEWABLES ENERGIES ▪ BULK EXCAVATION, QUARRIES & SURFACES MINING ▪ OIL & GAS, WATER PIPELINES 8
Slide 9: Railway - Fields of application
Railway - Fields of application ▪ CATENARY INSTALLATION RAILWAY LINES ▪ MAINTENANCE OF RAILWAY LINES ▪ DIAGNOSTIC OF RAILWAY INFRASTRUCTURES ▪ SMART PLATFORMS FOR BIG DATA MANAGEMENT 9
Slide 10: History of Innovation
History of Innovation Strengthening the Service and From Expansion Rental Business Investments & FAMILY strategy in acquisitions to Company the TRENCHER to PUBLIC RAILWAY BUSINESS complete the product line Company business MODEL portfolio for development SMART GRIDS INTEGRATION solutions & Investmen
Slide 11: Strategic overview
————— €TESMEC Strategic overview
Slide 12: Corporate strategy
Corporate strategy 2020-2023 2010 - 2019 THE NEXT DEVELOPMENTS New Business Model Equipment manufacturer ▪ INTEGRATED SYSTEMS Investment and ▪ DIGITAL SOLUTIONS diversification phase ▪ WIDE RANGE OF SERVICES to meet customers' needs to increase recurring revenue streams 12
Slide 13: Innovation-driven strategy
Innovation-driven strategy Strategic drivers ▪ DIGITALIZATION: Digital transformation leading to new solution portfolio and business models ▪ SUSTAINABILITY: Focus on green approach, electric/hybrid power units, renewables interconnection projects, zero-emission plans ▪ ENERGY TRANSITION: Global tra
Slide 14: Strategic ESG growth path
Strategic ESG growth path SUSTAINABLE IMPLEMENTATION STIMULUS PACKAGE INNOVATION ACTIVITIES Generate positive impacts from Integration of the Sustainability the main stimulus packages in the 4.0 industry paradigm plan in the industrial plan key countries where the Group operates ▪ Sustainability pla
Slide 15: Sustainability as key strategic driver
Sustainability as key strategic driver In progress the preparation of a Sustainability plan with the identification of commitments and goals MARKET BUSINESS PLAN & SUSTAINABILITY PLAN DRIVERS STRATEGIC PILLARS SDGs PRIORITY TOPICS DIGITALIZATION Solution provider & system Ethic and sustainable integ
Slide 16: Sustainability as key strategic driver
Sustainability as key strategic driver PRIORITY TOPICS TASKS (in progress or delivered) ▪ Designation of a Sustainability Manager and a team focused on sustainability topics Ethic and sustainable ▪ Designation of a Control, Risks and Sustainability Committee and Procedure for Related governance Part
Slide 17: Energy
Energy Development of sustainable solutions for new generation grids, integrated with renewable energy sources. INCREASING NEEDS OF STRATEGIC POSITIONING STRONG & SMART GRIDS IN A GROWING MARKET ▪ The global energy development pattern is ▪ Key player in the experiencing substantial changes (distribu
Slide 18: Railway
Railway Diagnostic vehicle in Lithuania with six diagnostic systems including the ultrasonic system. FOCUS ON SUSTAINABLE MOBILITY AND STRATEGIC POSITIONING SAFETY OF INFRASTRUCTURES IN A GROWING MARKET ▪ 2021 European Rail year ▪ Certificated rail cars ▪ Investments in maintaining and renewing the
Slide 19: Trencher
Trencher Fiber optic jobsite in UK using Clean&Fast sustainable technology INCREASING NEEDS OF STRATEGIC POSITIONING INTERCONNECTION NETWORKS IN A GROWING MARKET ▪ Interconnection projects in renewable energy ▪ Complete valClean&Fast technologies sites compared to standard technology ▪ Need to speed
Slide 20: 2021.H1 Results
————— €TESMEC 2021.H1 Results
Slide 21: H1 Milestone and Key Facts
H1 Milestone and Key Facts ▪ Growing economy ▪ Push to new investments thanks to stimulus packages in developed Countries (Europe, Market USA), especially in market segments where Tesmec operates scenario ▪ Increase of prices due to inflation ▪ Critical issues linked to travel blocks and restriction
Slide 22: Sustainability Project
Sustainability Project SUSTAINABILITY FOCUS • plastic less projects to spread sustainability culture among employees • reduce the environmental impact of activities • strengthen the relationship with the territory Plastic-free water for Adhesion to RiVending all employees, and project to support the
Slide 23: 2021.H1 Closing
2021.H1 Closing Delta (1) Revenues: back to the sales & growth thanks to GROUP (€ mln) 2021.H1 2020.H1 the relaunch of activities in the strategic sectors in vs.20 which the Group operates compared to 2020.H1 impacted by the spread of the Covid-19 REVENUES (1) 96,9 70,8 36,9% pandemic. Revenues in l
Slide 24: 2021.H1 Closing – Business Breakdown
2021.H1 Closing – Business Breakdown (€ mln) Energy > Rebound compared to 2020.H1 (Covid impacted) and lead 23,5 +40,2% by the Energy industry trend 16,8 +114,0% 3,7 > EBITDA: impacted by Energy Automation performance 1,7 and the improvement of the Stringing segment after years of Revenues EBITDA pr
Slide 25: Backlog
BACKLOG Strong presence of the Euro/mln BACKLOG Group in strategic sectors with high potential related to the energy, digital and 31/03/2021 Sales 2021.Q2 Intake 2021.Q2 30/06/2021 green transition 87,0 (1) 81,1 12,7 (1)Of which Euro 61,2 Energy 6,8 million by Energy Automation and new opportunities
Slide 26: 2021.H1 Revenues by geographical area
2021.H1 Revenues: sales spread over different geographical area REVENUE BY GEOGRAPHY 2021 REVENUE BY GEOGRAPHY 2020 BRIC &Others 16,2% BRIC &Others Italy 19,5% Italy 19,4% 21,8% North & North & Central Central America America 14,3% 27,7% Europe 24,7% Africa Europe 30,3% 5,4% Middle East Africa Middl
Slide 27: 2021.H1 Revenues: recurring vs non recurring
2021.H1 Revenues: recurring vs non recurring REVENUES RECURRING VS NON REVENUES RECURRING VS NON RECURRING 2021.H1 RECURRING 2020.H1 Non recurring Non recurring 48,2% 50,7% 46,7 M€ 46,7 M€ 50,2M€ 50,2 M€ 35,9 M€ 34,9 M€ Recurring Recurring 51,8% 49,3% Recurring: Rental, Projects, Spare Parts, Servic
Slide 28: 2021.H1 EBITDA
2021.H1 EBITDA € mln 15,0 0,6 13,7 14,0 2,9 13,0 12,0 11,0 2,0 10,0 9,0 8,2 8,0 7,0 6,0 5,0 4,0 3,0 2,0 1,0 0,0 2020.H1 Energy Trencher Railway 2021.H1 Impacted by the increase of 2020.H1 2021.H1 TRS and Energy sales in the H1 29
Slide 29: 2021.H1 Financial Results
2021.H1 Financial Results Financial Information (€ mln) 2021.H1 2020 Net Working Capital 76,2 64,3 Non Current assets 78,9 76,7 Right of use - IFRS 16/IAS 17 21,2 22,8 Other Long Term assets/liabilities 13,6 10,0 Net Invested Capital 189,9 173,8 Net Financial Indebtness 96,9 82,3 Lease liability - I
Slide 30: 2021.H1 Working Capital evolution
2021.H1 Working Capital evolution € mln 90 4,9 3,5 (2,1) 80 (0,4) 70 6,0 60 50 40 76,2 30 64,3 20 10 0 2020 Inventories WIP Trade Trade Other 2021.H1 Net Working Receivables Payables current Net Working capital ass. / liab. capital € Mln 2021.H1 2020.FY 2021.H1 2020.FY Trade Receivables 65,3 60,4 12
Slide 31: 2021.H1 Net Financial Position Evolution
2021.H1 Net Financial Position Evolution € mln • 1H IN LINE WITH QUARTELY DISTRIBUTION COMMENTED Net Financial Position WITH FY 2019 AND 1Q 21,6 118,5 120,0 RESULTS 110,0 104,4 22,1 2,5 (8,3) 8,5 100,0 96,9 11,9 90,0 82,3 80,0 70,0 60,0 2020 IFRS 16 Net debt NWC Capex Change of OFCF Net debt IFRS 16
Slide 32: 2021.H1 Net Financial Position Evolution
2021.H1 Net Financial Position Evolution NET FINANCIAL POSITION € mln 143,0 137,8 140 123,8 10,2 11,0 117,7 120 112,5 112,5 115,6 118,0 118,5* 119,2 114,7 104,4 5,8 6,4 100 105,0 5,9 97,8 99,8 95,5 96,9 80 92,6 94,1 82,3 60 40 20 0 2019.Q1 2019.H1 2019.9M 2019 2020.Q1 2020.H1 2020.9M 2020 2021.Q1 20
Slide 33: Outlook
————— €TESMEC Outlook
Slide 34: Outlook
Outlook ▪ Positive impact of recovery plans on reference markets of the Group: ▪ ITALY: strong push to business thanks to incentives, especially in Southern Italy ▪ EUROPE: important stimulus packages to boost the recovery ▪ USA: focus on Clean Energy and big high speed railway projects MACRO ▪ Mome
Slide 35: Outlook
Outlook KEY POINTS WORLD RAILWAY market ▪ Strategic positioning in CAGR 2.3% (2020-2025) SMART GRID market key and growing sectors: telecommunication, smart CAGR 11.8% (2020-2025) grids, renewable energy, mining, railway ▪ Expected positive outlook driven by "Green Deal” on key markets such as US, W
Slide 36: Towards an increasingly sustainable turnover
Towards an increasingly sustainable turnover DIGITAL & SUSTAINABLE TECHNOLOGIES Full electric machines Custom solutions for Smart Grid management Clean and Fast solutions Complete value chain for renewables DIGITAL Hybrid and electric railcars SOLUTIONS 4.0 ANALOGICAL PRODUCTS 37
Slide 37: Outlook 2021
Outlook 2021 Strong growth perspective based on high visibility of backlog for Energy and Rail activities Focus on recurring revenues through different rental options, specialistic advisory and after sales services MAIN ACTIONS Profitability improvement coming from product mix and economies of scale
Slide 38: 2020-2023 Business Plan guidelines - Confirmed
2020-2023 Business Plan guidelines - Confirmed 2019pf 2020pf 2021 2023 >> Significant performance of the Energy 199.6 172.8 ~ 220 M€ Automation segment; Stringing segment back to 275 ~ 290 M€ TURNOVER historical performances M€ M€ cagr19-23: >> Focus on recurring revenues (rental & 8.5%~10.0% servic
Slide 39: ANNEX
————— €TESMEC ANNEX
Slide 40: Summary 2021.H1 Profit & Loss statement - Appendix A
Summary 2021.H1 Profit & Loss statement - Appendix A Profit & Loss Account (Euro mln) 2021.H1 2020.H1 Delta vs 2020 Delta % Net Revenues 96,9 70,8 26,1 36,9% Raw materials costs (-) (39,4) (28,0) (11,4) 40,7% Cost for services (-) (16,7) (13,4) (3,3) 24,7% Personnel Costs (-) (27,3) (23,3) (4,0) 17,
Slide 41: Summary 2021.H1.FY Balance Sheet - Appendix B
Summary 2021.H1.FY Balance Sheet - Appendix B Balance Sheet (€ mln) 2021.H1 2020 Inventory 80,4 74,4 Work in progress contracts 10,8 11,2 Accounts receivable 65,3 60,4 Accounts payable (-) (57,9) (61,4) Op. working capital 98,6 84,6 Other current assets (liabilities) (22,4) (20,3) Net working capita
Slide 42: Notes
Notes The pro-forma results were prepared for illustrative purposes only, and were obtained by making appropriate pro-forma adjustments to the historical data to retroactively highlight the effects of the 4Service Group's transaction, as if this transaction had occurred on 1st January 2020, instead
Slide 43: www.tesmec.com
( TESMEC www.tesmec.com