Tesmec S.p.a. · MIL:TES
Tesmec — Q1 2021 Earnings Presentation
29 slides from Tesmec's earnings presentation, May 12, 2021
Slide 1: Integrated Solutions Provider - 2021.Q1 Results Presentation
Integrated Solutions Provider 2021.Q1 Results Presentation
Slide 2: Index
Index 1. Key Market trends & Corporate strategy 2. 2021.Q1 Business highlights & Results 3. Outlook 4. ANNEX
Slide 3: Key Market trends & Corporate strategy
1. Key Market trends & Corporate strategy
Slide 4: 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 ▪ Environmental issues and greater focus on energy saving and ENERGY ENERGY 23%* efficiency 2019-2040 & ▪ Faster growth of renewables in the electricity sector Smart Grid
Slide 5: Corporate strategy
Corporate strategy INVESTMENT & 2020-2023 DIVERSIFICATION THE NEXT DEVELOPMENTS New Business Model ▪ INTEGRATED SYSTEMS ▪ DIGITAL SOLUTIONS ▪ FULL SERVICES to increase recurring revenue streams Strategic drivers ▪ DIGITALISATION ▪ SUSTAINABILITY ▪ ENERGY TRANSITION 5
Slide 6: Business strategy
Business strategy ENERGY TRENCHERS RAILWAY STRINGING ENERGY AUTOMATION Working vehicles CLEAN & FAST CERTIFIED as passenger INNOVATIVE WORKING DIGITAL solutions and SOLUTIONS for trains in EU METHODOLOGIES for grid Substation Automation underground energy cable maintenance SYSTEMS and fiber optic ne
Slide 7: Sustainability as key strategic driver
Sustainability as key strategic driver 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 digi
Slide 8: 2021.Q1 Business highlights & Results
2. 2021.Q1 Business highlights & Results
Slide 9: 2021.Q1 business highlights
2021.Q1 business highlights CORPORATE ▪ New ERP project implementation and go live for Tesmec SpA ▪ Cost saving actions ENERGY TRENCHERS RAILWAY STRINGING ENERGY AUTOMATION Push on innovations and Business model focused on Technological evolution for Strategic positioning on technologies: increasing
Slide 10: Sustainability Project – 2021.Q1 highlights
Sustainability Project – 2021.Q1 highlights SUSTAINABILITY FOCUS • promote the health and well-being of employees • reduce the environmental impact of activities • strengthen the relationship with the local communities Tesmec Health Donation for Bosco Challenge, to promote della Memoria, to health f
Slide 11: 2021.Q1 Closing
2021.Q1 Closing Delta (1) Revenues: back to the sales & growth by the GROUP (€ mln) 2021.Q1 2020.Q1 relaunch of activities in the strategic sectors in vs.20 which the Group operates compared to 2020.Q1 impacted by the spread of the Covid-19 pandemic REVENUES (1) 49,0 31,8 53,9% EBITDA (2) (3) 7,1 2,
Slide 12: 2021.Q1 Closing – Business Breakdown (€ mln)
2021.Q1 Closing – Business Breakdown (€ mln) Energy > Rebound compared to 2020.Q1 (Covid driven) and lead by +45,9% the Energy industry trend 10,8 7,4 +145,7% 1,7 > EBITDA: impacted by Energy Automation performance 0,7 and the first improvement of the Stringing segment after years Revenues EBITDA of
Slide 13: Backlog
BACKLOG Euro/mln BACKLOG (1) Of which Euro 64 31/12/2020 Sales 2021.Q1 Intake 2021.Q1 31/03/2021 million by Energy Automation 76,2 (1) 87,0 Energy 10,8 21,6 (2) Restart of the activities in the TRS 84,6 84,9 Business and the (2) investments Trencher 31,0 31,3 121,6 114,4 (3) Delay in the tender 7,2
Slide 14: 2021.Q1 Revenues: sales spread over different geographical area
2021.Q1 Revenues: sales spread over different geographical area REVENUE BY GEOGRAPHY 2021 REVENUE BY GEOGRAPHY 2020 BRIC &Others BRIC &Others Italy Italy 21,2% 19,3% 18,7% 21,5% North & Central North & America Central 18,1% America 24,4% Europe Europe 26,1% 23,4% Africa 7,5% Middle East Africa Middl
Slide 15: 2021.Q1 Revenues: recurring vs non recurring
2021.Q1 Revenues: recurring vs non recurring REVENUES RECURRING VS NON REVENUES RECURRING VS NON RECURRING 2021.Q1 RECURRING 2020.Q1 Non recurring Non recurring 35,5% 53,4% 26,1 M€ 22,3 M€ 11,3 M€ 20,5 M€ Recurring Recurring 46,6% 64,5% Recurring: Rental, Projects, Spare Parts, Services (maintenance
Slide 16: 2021.Q1 EBITDA
2021.Q1 EBITDA € mln 8,0 3,7 (0,1) 7,1 7,0 6,0 5,0 4,0 1,0 3,0 2,5 2,0 1,0 0,0 2020.Q1 Energy Trencher Railway 2021.Q1 Impacted from the increase of 2020.Q1 2021.Q1 TRS and Energy sales in the Q1 16
Slide 17: 2021.Q1 Financial Results
2021.Q1 Financial Results Financial Information (€ mln) 2021.Q1 2020 Net Working Capital 86,5 64,3 Non Current assets 74,1 76,7 Right of use - IFRS 16/IAS 17 21,8 22,8 Other Long Term assets/liabilities 7,1 10,0 Net Invested Capital 189,5 173,8 Net Financial Indebtness 95,4 82,3 Lease liability - IF
Slide 18: 2021.Q1 Working Capital evolution
2021.Q1 Working Capital evolution € mln 12,5 1,3 (1,6) 90 80 5,8 70 4,3 60 50 40 86,5 30 64,3 20 10 0 2020 Inventories WIP Trade Trade Other 2021.Q1 Net Working Receivables Payables current Net Working capital ass. / liab. capital € Mln 2021.Q1 2020.FY 2021.Q1 2020.FY Trade Receivables 72,9 60,4 119
Slide 19: 2021.Q1 Net Financial Position Evolution
2021.Q1 Net Financial Position Evolution € mln • 1H IN LINE WITH QUARTELY DISTRIBUTION COMMENTED Net Financial Position WITH FY 2019 AND 1Q 117,7 120,0 RESULTS 22,2 110,0 104,4 22,1 22,3 1,0 (9,1) 100,0 95,5 90,0 82,3 80,0 70,0 60,0 2020 IFRS 16 Net debt NWC Capex OFCF Net debt IFRS 16 2021.Q1 2020
Slide 20: 2021.Q1 Net Financial Position Evolution
2021.Q1 Net Financial Position Evolution NET FINANCIAL POSITION € mln 143,0 137,8 140 123,8 10,2 11,0 117,7* 120 112,5 112,5 115,6 118,0 119,2 114,7 104,4 5,8 100 105,0 5,9 97,8 99,8 95,5 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 NFP ante IFRS 16
Slide 21: Outlook
————— €TESMEC Outlook
Slide 22: Outlook
Outlook ▪ Booming of specific geographic areas (e.g. Asia Pacific) ▪ Positive impact of recovery plans on reference markets of the Group MACRO ▪ Growth of demand, increasing suppling process, higher logistic costs and ECONOMIC commodities, shortage of materials SCENARIO ▪ Stronger foreign currencies
Slide 23: Outlook 2021
Outlook 2021 ENERGY TRENCHERS RAILWAY STRINGING ENERGY AUTOMATION Large pipeline of sales Expected positive outlook Strong growth perspective Further focus on recurring opportunities in Europe and driven by "Green Deal” on based on high visibility revenues through the offer Central Asia key markets
Slide 24: 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 25: ANNEX
————— €TESMEC ANNEX
Slide 26: Summary 2021.Q1 Profit & Loss statement - Appendix A
Summary 2021.Q1 Profit & Loss statement - Appendix A Delta vs Profit & Loss Account (Euro mln) 2021.Q1 2020.Q1 Delta % 2020 Net Revenues 49,0 31,8 17,1 53,8% Raw materials costs (-) (21,5) (10,0) (11,5) 115,8% Cost for services (-) (6,8) (6,9) 0,1 -1,6% Personnel Costs (-) (13,3) (12,1) (1,2) 10,0%
Slide 27: Summary 2021.Q1.FY Balance Sheet - Appendix B
Summary 2021.Q1.FY Balance Sheet - Appendix B Balance Sheet ( € mln) 2021.Q1 2020 Inventory 78,7 74,2 Work in progress contracts 17,0 11,2 Accounts receivable 72,9 60,7 Accounts payable (-) (60,1) (61,4) Op. working capital 108,5 84,7 Other current assets (liabilities) (22,0) (20,4) Net working capi
Slide 28: 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 29: www.tesmec.com
( TESMEC www.tesmec.com