Slide 1: Tesmec Group 2012 Results
Tesmec Group 2012 Results Analyst Presentation, 14 March 2013 Corporate
Slide 2: Agenda
Agenda 2012 – Business update A.Caccia Dominioni, CEO & Paolo Mosconi, GM 2012 – Economics Results A.Bramani, CFO 2012 - Financial Results A.Bramani, CFO Outlook 2013 - 2015 A.Caccia Dominioni, CEO Appendix 2/22
Slide 3: Business overview
Business overview MISSION: to operate in strategic markets for the growth and the modernization of every country in the world From IPO .. To .. Overhead & Urban Overhead & Grids Railway Urban Civil Civil Trenching Underground Construction Underground efficiency Lines Construction Infrastructure Infr
Slide 4: 2012 Key Facts
2012 Key Facts January Ordinary Shareholders’ Meeting of Tesmec S.p.A. approved the 2012 purchase plan of treasury shares and appointed a new independent director. January Acquisition of 40% stake of Bertel company in order to enlarge 2012 Tesmec offering in the High Voltage grid management Signatur
Slide 5: Tesmec Group Strategy
Tesmec Group Strategy LEADERSHIP Focus on QUALITY to get the PREMIUM Sector of the market 5/22
Slide 6: Innovation: Research & Development
Innovation: Research & Development GRIDS EFFICIENCY RAILWAY STRINGING TRENCHERS Advanced systems for New vehicles for Design of special machines New electronics for remote predictive maintenance on maintenance & diagnostic for high difficult projects control and maintenance power lines operations Co
Slide 7: Operating Companies
Group Structure at December 31,2012 NEW COMPANY CREATED/PURCHASED IN 2012 Tesmec S.p.A. Existing Company at 1.1.2012 Tesmec Tesmec Tesmec USA Tesmec Rus S.A. (75%)* Balkani (100%) (100%) (100%) Fully Consolidated Tesmec Service Operating Companies (100%) Effect on I-Light and AMC2 EBITDA and Pre-Tax
Slide 8: Performance of foreign subsidiaries
Performance of foreign subsidiaries Tesmec RUS (100%) JV Condux-Tesmec (50%) Revenue 1.3 million € Revenue 10.8 million € (+112% vs PY) Tesmec Rus now in place with financial performance in line with expectations; Revenue growth confirms success of the Group's strategy in North America Market Tesmec
Slide 9: Integration: Key Partnership
Integration: Key Partnership STRATEGIC JV TECHNOLOGICAL AGREEMENT COLLABORATION ACQUISITIONS WITH ACADEMIC WORLD PARTNERSHIP WITH KEY PLAYERS 9/22
Slide 10: 2012 Economics Results
2012 Economics Results INCOME STATEMENT 9M 2012 4Q 2012 FY 2012 FY 2011 Delta % (Euro Mln) 2012 vs 2011 Revenues 80,8 39 119,8 111,8 +7% EBITDA 16,4 7,9 24,3 19 +28% % On Revenues 20% 20% 20% 17% EBIT 11,7 5,9 17,6 13,2 +33% % On Revenues 14% 15% 15% 12% NET INCOME 5,2 2,9 8,1 6,6 +23% % On Revenues
Slide 11: Revenues: international scale and exposure to growing economies
Revenues: international scale and exposure to growing economies 2011 2012 13% 4% 6% 24% 22% 6% 21% 5% 31% 24% 20% 24% Italy Europe Middle East BRICs and Oceania Africa North-Central America 11/18
Slide 12: 2010-2012 Revenues Evolution
2010-2012 Revenues Evolution Mln € 120 REVENUE 105 112 120 CAGR (‘10-’12) 80 7% 40 0 2010 2011 2012 Last quarter 9M CAGR (‘10-’12) CAGR (‘10-’12) STRINGING TRENCHER 3% 13% 2012 69 2012 51 2011 65 2011 47 2010 65 2010 40 Mln € 0 50 100 Mln € 0 20 40 6012/22
Slide 13: 2010-2012 EBITDA Evolution
2010-2012 EBITDA Evolution Mln € 24 EBITDA 30 19 18* 20 CAGR (’10-’12) 15% 10 0 Last quarter 9M 2010 2011 2012 STRINGING CAGR (‘10-’12) TRENCHER CAGR (‘10-’12) 6% 31% 2012 14 2012 10 2011 15 2011 4 2010 13 2010 6 Mln € 0 10 20 Mln € 0 5 10 15 13/22 * EBITDA affected by 3,3 IPO non recurring costs ->
Slide 14: Net Profit 2012
NET PROFIT 2012 12 (2,3) 5,3 (0,4) (0,2) 8 (0,9) 4 8,1 6,6 0 Net Income EBITDA Forex Financial Taxes Depr. Net Income 2011 Charges & 2012 Amort. 2011 EBITDA increase partially offset by the exchange rate 2012 14/22
Slide 15: 2012 Financial Results
2012 Financial Results Financial Information 9M 2012 FY 2012 FY 2011 (Euro Mln) NWC 49,2 48,8 48,4 Non current assets 51,1 49,6 48,2 Other LT assets/(Liabilities) 1,1 1 1,9 NET INVESTED CAPITAL 101,4 99,4 98,5 NFP 60,8 56,5 59,6 EQUITY 40,6 42,9 38,9 TOTAL SOURCES OF FINANCING 101,4 99,4 98,5 15/22
Slide 16: Working Capital Evolution
Working Capital Evolution FY 2012 FY 2011 Days* Days* 2012 2011 Values in € Mln Trade Receivables 43,6 43,9 131 141 Inventories 44,8 42,1 135 136 Trade Payables (32,1) (26,5) 96 85 Other current assets/(Liabilities) (7,5) (11,1) 23 35 NET WORKING CAPITAL 48,8 48,4 * Calculated on Revenues Working Ca
Slide 17: Net Financial Position Evolution
Net Financial Position Evolution Operating Net Financial Position without figurative debt for Grassobbio premises 70 59,6 60 21,7 (IAS 17) 20,7 56,5 50 3,8 40 3,1 7,3 35,8 30 0,4 3,2 0,8 20 37,9 37,9 (20,7) 10 0 NFP Operating OFCF NWC Dividend Inv. Other Int.exp. Taxes Operating Capex NFP FY 2011 NF
Slide 18: Exchange exposure 2012
Exchange exposure 2012 Revenues Operating Costs 12% 37% Euro Euro 63% USD USD 88% Trade Receivables Trade Payables Euro 11% Other Euro 49% 50% Currency USD 89% USD 1% 18/22
Slide 19: Order Book
Order Book ORDER BOOK YEAR END 2011 – 2012 € mln 60,9 60 44,1 23,1 45 19,1 30 37,8 15 25,0 0 2011 2012 Stringing Equipment Trenchers STRINGING EQUIPMENT TRENCHERS € mln € mln 54,9 100 60 50,9 81,7 80 68,9 40 60 37,8 23,1 19,1 40 20 25 20 0 0 Order book 2012 Order Order book Order 2012 Order Order 20
Slide 20: Key Projects
Key Projects RAILWAY GRIDS EFFICIENCY New technologies for Agreement with FSK RFI in Italy in Russia RAILWAY High speed rail catenary Installation in China TRENCHERS Shale Gas projects Americas Europe & Africa Asia STRINGIN RAILWAY Strong Grid & Strategic Project with SPECIALIST TRENCHERS High Volta
Slide 21: Outlook 2013 - 2015
Outlook 2013 - 2015 Revenue increase in all lines of business for the next 3 years: - Single digit in Stringing and Trencher; - Double digit in new business lines (Railway, Efficiency and Special Contracting). Financial: - No increase in Share Capital; - Good dividend pay-out ratio; - Capex in line
Slide 22: Appendix A - Summary 2012 Profit & Loss statement
Appendix A - Summary 2012 Profit & Loss statement Delta vs Profit & Loss Account (€ mln) 2012 2011 Delta % 2011 Net Revenues 119,8 111,8 8,0 7% Raw materials costs (-) (56,0) (55,6) (0,4) 1% Cost for services (-) (20,3) (20,9) 0,6 -3% Personnel Costs (-) (20,3) (17,9) (2,4) 13% Other operating reven
Slide 23: Appendix B - Summary Balance Sheet
Appendix B - Summary Balance Sheet Balance Sheet (€ mln) 2012 2011 Inventory 44,8 42,1 Accounts receivable 43,6 43,9 Accounts payable (-) (32,1) (26,5) Op. working capital 56,3 59,5 Other current assets (liabilities) (7,5) (11,1) Net working capital 48,8 48,4 Tangible assets 39,8 38,9 Intangible ass
Slide 24: TESMEC S.p.A - Headquarters
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 accounting rec