Slide 1: Tesmec Group Corporate Presentation
Tesmec Group Corporate Presentation March 17, 2014
Slide 2: Markets & Technology solutions
Markets & Technology solutions UNDERGROUND ENERGY RAILWAY INFRASTRUCTURES Power lines Construction & Railway line Construction & Large-scale infrastructure Maintenance Maintenance Underground Cables Laying Special application Shale Gas & Oil Grid Efficiency & Management New eco-friendly technology D
Slide 3: Group Strategy "3xi" Approach
Group Strategy “3xi” Approach On-going investments in Innovation Research and Technological innovation Development and of the machines -> technological innovation to consolidate its digitalization leading position in the supply of technologically advanced solutions Strategic partnerships to Integrat
Slide 4: New business solutions for global leadership
New business solutions for global leadership GLOBAL PRODUCTS SOLUTIONS supplier PLAYER supplier MARKET CYCLICAL NON-CYCLICAL LEADER SECTORS SECTORS sensitive to economic independent on business INNOVATION to cycles and dependent cycles, recurrent on investment projects maintain MARKET CONSTRUCTION o
Slide 5: 2013 P&L Results
2013 P&L Results GROUP 2013 2012 Delta % Revenues 113,5 119,8 -5% TRENCHER 2013 2012 Delta % EBITDA 19,5 24,5 -20% Revenues 55,6 50,9 9% % on Revenues 17% 20% EBITDA 7,2 10 -28% EBIT 12,5 17,8 -30% % on Revenues 13% 20% % on Revenues 11% 15% STRINGING 2013 2012 Delta % Profit Before Taxes 7,8 12,4 -
Slide 6: Performance of foreign subsidiaries consolidated
Performance of foreign subsidiaries consolidated Tesmec RUS (100%) Revenue 3.9 million € (+200% vs PY) Tesmec USA (100%) Tesmec Rus performance in line with Revenue 22.1 million € (+8% vs PY) development plan expected; Performing better than previous year Tesmec SA (100%) Revenue 0.5 million € (- 64
Slide 7: Performance of foreign subsidiaries consolidated by Equity Method
Performance of foreign subsidiaries consolidated by Equity Method JV Condux-Tesmec (50%) Revenue 13.7 million € (+26% vs PY) Revenue growth confirms success of the Group's strategy in North America Market JV Tesmec Peninsula (49%) Revenue 7.6 million € (- 43% vs PY) 7/23
Slide 8: Revenues: international scale and exposure to growing economies
Revenues: international scale and exposure to growing economies 2012 2013 6% 26% 15% 6% 24% 21% 5% 9% 20% 20% 24% 24% Italy Europe Middle East BRICs and Oceania Africa North-Central America 8/23
Slide 9: EBITDA 2013
EBITDA 2013 30 24 18 2 1,3 0,5 (6,3) (2,7) 0,2 12 24,5 19,5 6 0 EBITDA Revenues Raw Cost for Personnel Equity Capitalized EBITDA 2012 materials Services Costs Investments R&D 2013 cost Expenses EBITDA decrease is mainly due to the revenues decrease, 2012 2013 change in product mix and increased pers
Slide 10: NET PROFIT 2013
NET PROFIT 2013 8 0,7 0,9 4 8,3 (0,3) (4,7) (0,2) 4,4 0 Net EBITDA Forex Financial Taxes Depr. Net Income Charges & & Income 2012 Derivatives Amort. 2013 EBITDA is mainly accounting for 2012 2013 the change in Net Profit 10/23
Slide 11: 2013 Financial Results
2013 Financial Results Financial Information 2013 2012 (Euro Mln) Net Working Capital 52,7 48,8 Non Current assets 57,5 49,7 Other Long Term assets/liabilities 0,4 1 Net Invested Capital 110,6 99,5 Net Financial Indebtness 68,8 56,5 Equity 41,8 43 Total Sources of Financing 110,6 99,5 11/23
Slide 12: Working Capital Evolution
Working Capital Evolution Days* Days* Euro Mln 2013 2012 2013 2012 Trade Receivables 43,2 43,6 137 131 Inventories 48,1 44,8 152 135 Trade Payables (25,5) (32,1) 81 96 Other Current Assets/(Liabilities) (13,1) (7,5) 41 23 Net Working Capital 52,7 48,8 Working Capital Evolution 2013 75 (5,6) 3,3 Net
Slide 13: Net Financial Position Evolution
Net Financial Position Evolution 70 Operating Net Financial Position without figurative debt for Grassobbio premises 19,9 68,8 60 56,5 21,7 2,7 50 (IAS 17) 2,9 13,6 48,9 40 3,7 0,8 30 3,9 20 35,8 35,8 (14,6) 10 0 NFP Operating OFCF NWC Dividend Inv. Other Int.exp. Taxes Operating Capex NFP FY 2012 N
Slide 14: Exchange exposure 2013
Exchange exposure 2013 Revenues Operating Costs 16% 37% Euro Euro 63% USD USD 84% Trade Receivables Trade Payables 12% Euro Euro 49% USD USD 61% 88% 14/23
Slide 15: Order Book
Order Book ORDER BOOK 2013 TRENCHERS STRINGING € mln € mln 57,9 55,7 61,0 46,6 40 45 37,8 28,4 26,5 23,1 30 20 15 0 0 Order book 12M 2013 Order Order book Order 2013 Order Order FY2012 Revenues Intake 2013 book Revenues Intake book FY 2012 2013 28,4 26,5 55 Mln 15/23
Slide 16: Outlook 2014
Outlook 2014 We expect 2014 will be a positive year based of the following main assumptions: - normalisation of the negative factors which influenced the performance of last quarter 2013 mainly in the second half year; - the increased level of diversification of products and markets that will allow
Slide 17: Focus on R&D
Focus on R&D Staff dedicated to research and development over the past two years has increased up to 100 units TRENCHERS RAILWAY ENERGY Digitalization of the machines: Construction and maintenance New innovative products for Smart Trencher philosophy rail vehicles: Grids efficiency and Denver Transi
Slide 18: Key Projects
Key Projects ENERGY RAILWAY UNDERGROUND INFRASTRUCTURES M E C I U H D D R I L O N E P A E E A S Machines for catenary installation T Infrastructure projects in Qatar Special projects, huge crossing U U S U S S A A A Important stringing projects Strategic Project with Amtrak Pipeline projects R E U U
Slide 19: Rating assigned to Tesmec from Cerved Group
Rating assigned to Tesmec from Cerved Group A 1.1 Tesmec has been assigned A 1.2 a solicited rating A 1.3 SAFETY by Cerved Group on A 2.1 February 24, 2014, A 2.2 of A 3.1 Classes of B 1.1 SOLVENCY risk for A 2.2 B 1.2 Cerved Group B 2.1 equivalent to B 2.2 VULNERABILITY a high credit rating with a
Slide 20: Appendix A - Summary 2013 Profit & Loss statement
Appendix A - Summary 2013 Profit & Loss statement Delta vs Profit & Loss Account (€ mln) 2013 2012 Delta % 2012 Net Revenues 113,5 119,8 (6,3) -5% Raw materials costs (-) (54,8) (56,1) 1,3 -2% Cost for services (-) (19,9) (20,3) 0,4 -2% Personnel Costs (-) (22,7) (20,0) (2,7) 14% Other operating rev
Slide 21: Appendix B - Summary Balance Sheet
Appendix B - Summary Balance Sheet Accounts re ce ivable 43,2 43,6 Accounts payable (-) (25,5) (32,1) Op. working capital 65,8 56,3 Othe r curre nt asse ts (liabilitie s) (13,1) (7,5) Net working capital 52,7 48,8 Tangible asse ts 43,2 39,8 Intangible asse ts 10,2 7,6 Financial asse ts 4,1 2,3 Fixed
Slide 22: Disclaimer
Disclaimer • The Manager responsible for preparing the company’s financial reports, Andrea Bramani, 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 a
Slide 23: TESMEC S.p.A - Headquarters
TESMEC S.p.A - Headquarters via Zanica, 17/O - 24050 Grassobbio (BG) - Italy Tel. +39.035.423 2911 - Fax +39.035.4522444 Management and Administration Fax +39.035.4522445 Stringing Equipment Division - Fax +39.035.335664 Trencher Division www.tesmec.com - info@tesmec.it