Slide 1: 1H 2018 Results Presentation
Stringing Energy Automation Integrated Solutions Provider Railway Trencher 1H 2018 Results Presentation www.tesmec.com 3rd August 2018
Slide 2: Index
Index > Corporate Strategy > 1H 2018 Results > 2018 Outlook 3rd August 2018 2
Slide 3: The 4 Business Units
The 4 Business Units STRINGING ENERGY ENERGY AUTOMATION > Overhead power lines > Telecommunication & construction & maintenance Teleprotection > Reconductoring and line > Electronic integrated sensors, improvement fault detection and measurement FULLY > Protections & Electronics for > Underground ca
Slide 4: Tesmec: From Steel to sustainable Technology
TESMEC “ From Steel to sustainable Technology ” OUR MISSION > Value added integrated solutions provider in the market of infrastructure for the transport of energy, data and material > Efficiency, digitalization, safety and sustainability are our drivers for the modernization of the infrastructures
Slide 5: Strategy execution & Main milestones
Strategy execution & Main milestones EXPERTISE INTEGRATION FROM STRINGING TO TRENCHER FROM STRINGING TO RAILWAY FROM STRINGING TO AUTOMATION From machines for underground Markets saturation for power lines CONSOLIDATION Application of the tension stringing cable laying to digging solutions for elect
Slide 6: Strategic Approach evolution
Strategic Approach evolution 2017 FUTURE THE ONLY INTEGRATED SOLUTIONS PROVIDER IN THE WORLD able to satisfy the infrastructure market's needs through our fully integrated solutions suite TRENCHER ENERGY RAILWAY S Wind - ENERGY Overhead Catenary Solar Smart grids (cable/fiber) Underground wires Full
Slide 7: Index
Index > Corporate Strategy > 1H 2018 Results > 2018 Outlook 3rd August 2018 7
Slide 8: Main 2018 Business & Projects highlights
Main 2018 Business & Projects highlights ENERGY ✓ Launch of the digital machine range: Solutions 4.0 ✓ Opportunities in Russia ✓ Growth of USA & Latam markets TRENCHER ✓ USA: Pipelines ✓ Kuwait: multiple projects (housing) ✓ Mining ✓ Tunneling RAILWAY ✓ Safety: driver for technological solutions dev
Slide 9: Stringing business highlights
Stringing business highlights SOLUTIONS FOR SMART GRID MAINTENANCE AND MANAGEMENT ▪ Digital product line: ✓ Full interconnected equipment ✓ Real time data management ▪ Innovative methodologies for grid maintenance & disaster recovery: ✓ CPS: new refurbishment solution to reduce the power outage ✓ He
Slide 10: Energy Automation business highlights
Energy Automation business highlights SOLUTIONS FOR SMART GRID MAINTENANCE & MANAGEMENT ▪ Certification of new developments for enabling the start up of sales for local & international markets ▪ Technological leadership recognized by key market players for sensing, metering, protection, communicatio
Slide 11: Trencher business strategy
Trencher business strategy INTEGRATED SOLUTION PROVIDER IN DIFFERENT INDUSTRIES ▪ Complete offer: ▪ Innovative equipment ▪ Advanced services ▪ Digital know how ▪ Diversified applications and new activities: ▪ Mining ▪ Tunneling Integrated value proposition ▪ Civil infrastructures ▪ Construction Wide
Slide 12: Trencher business highlights
Trencher business highlights SOLUTION PROVIDER IN A STRATEGIC COUNTRY: KUWAIT ▪ The Government of Kuwait is investing large resources, which will amount to over USD 28 billion by 2020, for the development of numerous infrastructure projects (housing, pipeline…) ▪ Projects portfolio: ▪ South Al Mutla
Slide 13: Railway business highlights
Railway business highlights NEW TECHNOLOGICAL DEVELOPMENTS ▪ SAFETY and QUALITY: drivers ▪ Advanced certified vehicles in compliance with the latest EU Standards ▪ Selected partners: integration with complementary technologies From construction & maintenance working car to complete railway systems f
Slide 14: 1H 2018 Closing
1H 2018 Closing GROUP (€ mln) 1H 2018 1H2017 Delta % ENERGY 1H2018 1H2017 Delta % REVENUES 91,1 91,1 0%* Revenues 20,8 32,0 -35,0% EBITDA 2,6 5,6 -53,9% EBITDA 9,3 8,7 7,1% % on Revenues 12,3% 17,3% % on Revenues 10,2% 9,6% EBIT 2,4 2,0 18,1% % on Revenues 2,6% 2,2% TRENCHERS 1H2018 1H2017 Delta % D
Slide 15: 1H 2018 Revenues: sales spread over different geographical area
1H 2018 Revenues: sales spread over different geographical area INTERNATIONAL SCALE AND EXPOSURE TO GROWING ECONOMIES JOINT WITH A GROWING IMPORTANCE OF THE ITALIAN MARKET 1H 2018 1H 2017 16% 14% 25% 22% 8% 10% 16% 19% 26% 31% 7% 6% ITALY: impact of railway business Italy Europe Middle East EU: Tren
Slide 16: 1H Differences in Exchange
1H Differences in Exchange Euro mln DIFFERENCES IN EXCHANGE 4 1,8 2 0,0 0,0 0 (0,5) -2 (3,1) -4 1H 2014 1H 2015 1H 2016 1H 2017 1H 2018 GROUP (Euro mln) 1H 2018 1H 2017 1H 2016 Differences in Exchange 0,0 (3,1) (0,5) of which: Realised (0,1) (0,1) (0,1) Unrealised 0,1 (3,0) (0,4) Differences in Exch
Slide 17: EBITDA 1H 2018
EBITDA 1H 2018 € mln 13 12 11 10 0,4 9,3 8,7 3,1 9 8 7 6 5 (2,9) 4 3 2 1 0 EBITDA Energy Trencher Railway EBITDA 1H 2017 1H 2018 1H 2017 Positive performance of trencher segment 1H 2018 3rd August 2018 17
Slide 18: 1H 2018 Financial Results
1H 2018 Financial Results Financial Information (€ mln) 1H 2018 2017 Net Working Capital 64,9 60,8 Non Current assets 69,7 68,4 Other Long Term assets/liabilities 1,9 0,9 Net Invested Capital 136,5 130,1 Net Financial Indebtness 92,1 85,2 Equity 44,4 44,9 Total Sources of Financing 136,5 130,1 2017
Slide 19: Working Capital evolution
Working Capital evolution € mln 80 14,3 2,2 64,9 70 60,8 (9,2) 60 (2,8) 50 (0,4) 40 30 20 10 0 2017 Inventories WIP Trade Trade Other current 1H 2018 Net Working Receivables Payables ass. / liab. Net Working capital capital Days Days € Mln 1H 2018 2017 1H 2018 2017 Trade Receivables 54,2 39,9 107 82
Slide 20: Net Financial Position Evolution
Net Financial Position Evolution OPERATING NET FINANCIAL POSITION € mln 140 120 100 8,2 2,9 92,1 85,2 4,5 80 60 (8,7) 40 20 0 NFP OFCF NWC Capex Int.exp. NFP FY 2017 Net 1H 2018 Impact of NWC increase due to the traditional seasonality of 2017 the business and the CAPEX for the Puglia Project 1H 201
Slide 21: Index
Index > Corporate Strategy > 1H 2018 Results > 2018 Outlook 3rd August 2018 21
Slide 22: 2018 Trend & Outlook
2018 Trend & Outlook TREND DEFLATION CONTROLLED INFLATION Raw material cost increase and slow deliveries. ENERGY AUTOMATION: STRINGING: ✓ Certified R&D solutions ✓ Recovery for new products ✓ Development in foreign markets ✓ Recovery for expected project in (Russia) North and South America BUSINES
Slide 23: Backlog
BACKLOG Euro/mln BACKLOG 31/03/2018 Sales Q2 2018 In take Q2 30/06/2018 27,8 28,0 11,6 11,8 Energy 68,0 66,3 Trencher 26,6 28,3 101,9 105,0 9,3 6,2 Railway 196,0 201,0 Total 44,4 49,4 3rd August 2018 23
Slide 24: Summary 1H 2018 Profit & Loss statement - Appendix A
Summary 1H 2018 Profit & Loss statement - Appendix A Delta vs Profit & Loss Account (€ mln) 1H 2018 1H 2017 Delta % 2017 Net Revenues 91,1 91,1 - 0,0% Raw materials costs (-) (39,3) (41,5) 2,2 -5,3% Cost for services (-) (15,4) (15,6) 0,2 -0,5% Personnel Costs (-) (24,5) (23,7) (0,8) 3,0% Other oper
Slide 25: Summary 1H 2018 Balance Sheet - Appendix B
Summary 1H 2018 Balance Sheet - Appendix B Balance Sheet (€ mln) 1H 2018 2017 Inventory 71,7 69,9 Accounts receivable 54,2 39,9 Accounts payable (-) (48,7) (39,5) Op. working capital 77,2 70,3 Other current assets (liabilities) (12,3) (9,5) Net working capital 64,9 60,8 Tangible assets 48,2 46,1 Int
Slide 26: Disclaimer
Disclaimer The Manager responsible for preparing the company’s financial reports, Gianluca Casiraghi, 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
Slide 27: www.tesmec.com
www.tesmec.com 3rd August 2018