Tesmec S.p.a. · MIL:TES
Tesmec — European Midcap event (Virtual Midcap Conference - Intermonte/Paris) 2021
35 slides from Tesmec's conference presentation, Jun 24, 2021
Slide 1: European Midcap event - Tesmec Group Presentation
European Midcap event Tesmec Group Presentation
Slide 2: Index
Index 0. Tesmec Group at a glance 1. Strategic overview 2. Outlook 3. 2021.Q1 Results 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: 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, integrated in the 2020-2023 Business Plan MARKET 2020-2023 BUSINESS PLAN & SUSTAINABILITY PLAN INTEGRATION DRIVERS STRATEGIC PILLARS SDGs PRIORITY TOPICS DIGI
Slide 15: Outlook
————— €TESMEC Outlook
Slide 16: 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 17: Outlook 2021
Outlook 2021 SMART GRID market CAGR 11.8% (2020-2023) RAILWAY market TELECOM market CAGR 2.2% (2019-2025) CAGR 5% (2020-2025) SURFACE MINING market CAGR 1.5% (2020-2023) ▪ Strategic positioning in key and growing sectors: telecommunication, smart grids, renewable energy, mining, railway KEY POINTS ▪
Slide 18: Outlook 2021 - Main actions
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 19: 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 20: 2021.Q1 Results
————— €TESMEC 2021.Q1 Results
Slide 21: 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 22: 2021.Q1 Closing - Business Breakdown
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 23: 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 24: 2021.Q1 Revenues by 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 25: 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 26: 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 26
Slide 27: 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 28: 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 29: 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 30: 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 31: ANNEX
————— €TESMEC ANNEX
Slide 32: 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 33: 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 34: 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 35: www.tesmec.com
( TESMEC www.tesmec.com
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