Slide 1: 9M 2018 Results Presentation
Stringing Energy Automation Integrated Solutions Provider Railway Trencher 9M 2018 Results Presentation www.tesmec.com 31st October 2018
Slide 2: Index
Index > Corporate Strategy > 9M 2018 Results > 2018 Outlook & 2019 Trend 31st October 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, fault improvement 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: Index
Index > Corporate Strategy > 9M 2018 Results > 2018 Outlook & 2019 Trend 31st October 2018 5
Slide 6: Energy - Stringing business highlights
Energy - Stringing business highlights A CONTINUOUS INNOVATION PROCESS Focus on new digital technologies in order to face the new challenges of the Energy sector and innovative methodologies DIGITAL MACHINES 4.0 A new digital HMI, drastically simplified The new remote monitoring system, RE.M: ▪ Data
Slide 7: Energy - Automation business highlights
Energy - Automation business highlights From a start up to a major deployment on the Improve performance while market for protection, metering and control minimizing OPEX and CAPEX applications ITALIAN MARKET CONSOLIDATION Become a recognized innovation hub through partnership in technological proje
Slide 8: Trencher business highlights
Trencher business highlights Tesmec is a global group with a strong focus in Full integrated technological different applications solutions supplier MINING & QUARRIES APPLICATIONS Anti-cyclical segment. Business opportunities in major Countries: ▪ Australia ▪ Africa ▪ Russia PIPELINE INDUSTRY (Oil&G
Slide 9: Railways business highlights
Railways business highlights NEW RAILWAY HUB: Tesmec Rail enhance the Group's activities in the railway business Focus on R&D and innovative projects to develop technological solutions to anticipate market needs KEY EVENTS: ✓ InnoTrans 2018, September 2018 ✓ Inauguration Tesmec Rail, October 2018 AP
Slide 10: 9M 2018 Closing
9M 2018 Closing ENERGY 9M2018 9M2017 Delta % GROUP (€ mln) 9M 2018 9M 2017 Delta % Revenues 30,2 44,8 -32,6% EBITDA 2,2 7,3 -68,9% REVENUES 140,5 132,1 6,3%* % on Revenues 7,5% 16,3% EBITDA 12,2** 13,6 -9,9% % on Revenues 8,7% 10,3% EBIT 1,4 3,1 -53,6% TRENCHERS 9M2018 9M2017 Delta % Revenues 94,2 7
Slide 11: 2018 9M versus 1H
2018 9M versus 1H Euro/mln 1H - YTD Q3 9M - YTD 2018 2017 Var. 2018 2017 Var. 2018 2017 Var. REVENUES 91,1 91,1 0,0% 49,4 41,0 20,5% 140,5 132,1 6,3% EBITDA* 9,3 8,7 7,1% 2,9* 4,9 -40,8% 12,2** 13,6 -9,9% EBITDA % 10,2% 9,6% 5,9%* 11,9% 8,7%** 10,3% EBIT 2,4 2,0 18,1 (1,0) 1,1 -190,9% 1,4 3,1 -53,6%
Slide 12: 9M 2018 Exchange exposure - Impact on revenues
9M 2018 Exchange exposure - Impact on revenues Actual Exchange Rate = 1,198 Revenues 6 Revenue (€ mln) Original Exchange 9M 2018 % 3% 6% Currency Rate 7% EURO 90.258 64% USD 33.436 1,1980 27.926 20% AUD 16.456 1,5714 10.472 7% 20% NZD 8.097 1,6999 4.764 3% OTHER CURRENCY 7.073 5% 64% Total Revenue 1
Slide 13: 9M 2018 Revenues: sales spread over different geographical area
9M 2018 Revenues: sales spread over different geographical area INTERNATIONAL SCALE AND EXPOSURE TO GROWING ECONOMIES JOINT WITH A GROWING IMPORTANCE OF THE ITALIAN MARKET 9M 2018 9M 2017 19% 16% 18% 24% 7% 12% 19% 16% 21% 32% 8% 8% ITALY: impact of railway business & automation Italy Europe Middle
Slide 14: 9M Differences in Exchange
9M Differences in Exchange Euro mln DIFFERENCES IN EXCHANGE 2 1,4 0 (0,3) (0,4) -2 -4 -6 (4,6) 9M 2015 9M 2016 9M 2017 9M 2018 GROUP (Euro mln) 9M 2018 9M 2017 9M 2016 Differences in Exchange (0,4) (4,6) (0,3) of which: Realised 0,1 0,1 0,0 Unrealised (0,5) (4,7) (0,3) Differences in Exchange for cu
Slide 15: EBITDA 9M 2018
EBITDA 9M 2018 € mln 16 15 14 13,6 13 0,8 12,2 12 2,9 11 10 9 8 (5,1) 7 6 5 4 3 2 1 0 EBITDA Energy Trencher Railway EBITDA 9M 2017 9M 2018 Positive performance of trencher segment although the Australian 9M 2017 impact and the drop of energy business 9M 2018 31st October 2018 15
Slide 16: 9M 2018 Financial Results
9M 2018 Financial Results Financial Information (€ mln) 9M 2018 2017 Net Working Capital 64,8 60,8 Non Current assets 68,0 68,4 Other Long Term assets/liabilities 2,7 0,9 Net Invested Capital 135,5 130,1 Net Financial Indebtness 92,9 85,2 Equity 42,6 44,9 Total Sources of Financing 135,5 130,1 2017
Slide 17: Working Capital evolution
Working Capital evolution € mln 19,5 80 64,8 70 60,8 1,7 60 (13,4) (2,1) 50 (1,7) 40 30 20 10 0 2017 Inventories WIP Trade Trade Other current 9M 2018 Net Working Receivables Payables ass. / liab. Net Working capital capital Days Days € Mln 9M 2018 2017 9M 2018 2017 Trade Receivables 59,4 39,9 114 8
Slide 18: Net Financial Position Evolution 9M 2018
Net Financial Position Evolution OPERATING NET FINANCIAL POSITION € mln 140 120 10,4 (3,6) 100 85,2 4,0 92,9 80 (3,1) 60 40 20 0 NFP OFCF NWC Capex Int.exp. NFP FY 2017 Net 9M 2018 Impact of NWC increase due to the traditional seasonality of the 2017 business and the CAPEX for the Puglia Project 9M
Slide 19: Net Financial Position Evolution
Net Financial Position Evolution OPERATING NET FINANCIAL POSITION € mln 140 120 96,7 96,9 98,7 92,9 100 91,5 93,5 92,1 85,2 80 60 40 20 0 2016 1Q 2017 1H 2017 9M 2017 2017 1Q 2018 1H 2018 9M 2018 31st October 2018 19
Slide 20: Index
Index > Corporate Strategy > 9M 2018 Results > 2018 Outlook & 2019 Trend 31st October 2018 20
Slide 21: Outlook Q4 & macroeconomic outlook
Outlook Q4 & macroeconomic outlook 2019 OUTLOOK 1 Sales: target around 200 M€ 2 EBITDA % in line with the previous year. The Q4 performance will be better but not enough to offset the Q3 Australian extra costs. Improvement due to better fixed costs absorption & ECONOMICS efficiency in the business.
Slide 22: 2019 Trend
2019 Trend BLOCKCHAIN KNOW-HOW MODEL BUSINESS MODEL STRATEGIC PARTNERSHIP/COLLABORATIONS GUIDELINES > CONSOLIDATION OF THE BUSINESSES GROWTH THANKS TO HIGH ADDED VALUE TECHNOLOGICAL SOLUTIONS > IMPROVE OF THE MARGIN > NO FURTHER CAPEX TO INCREASE THE PRODUCTON CAPABILTY ENERGY > FOCUS ON RELIABILITY
Slide 23: Backlog
BACKLOG Euro/mln BACKLOG 30/06/2018 Sales Q3 2018 In take Q3 30/09/2018 28,0 31,0 9,4 12,4 Energy 62,0 68,0 Trencher 34,2 28,2 105,0 113,0 13,8 5,8 Railway 201,0 206,0 Total 54,4 49,4 31st October 2018 23
Slide 24: Summary 9M 2018 Profit & Loss statement - Appendix A
Summary 9M 2018 Profit & Loss statement - Appendix A Delta vs Profit & Loss Account (Euro mln) 9M 2018 9M 2017 Delta % 2017 Net Revenues 140,5 132,1 8,4 6,3% Raw materials costs (-) (64,5) (58,7) (5,8) 10,0% Cost for services (-) (23,9) (22,9) (1,0) 4,2% Personnel Costs (-) (36,4) (33,4) (3,0) 8,8%
Slide 25: Summary 9M 2018 Balance Sheet - Appendix B
Summary 9M 2018 Balance Sheet - Appendix B Balance Sheet (€ mln) 9M 2018 2017 Inventory 69,8 69,9 Accounts receivable 59,4 39,9 Accounts payable (-) (52,9) (39,5) Op. working capital 76,3 70,3 Other current assets (liabilities) (11,5) (9,5) Net working capital 64,8 60,8 Tangible assets 47,0 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 31st October 2018