Slide 1: STAR Conference presentation
Partner in a changing world STAR Conference presentation London, 7th October 2016
Slide 2: Solutions partner for your world
Solutions partner for your world Tesmec Group is leader in the market of the infrastructures related to the transport and distribution of energy, data and material. We focus on strategic markets for the growth and modernization of every country. ENERGY RAILWAY UNDERGROUND 2
Slide 3: Matched for all your needs
STRINGING Overhead power lines construction and maintenance Matched for all your needs Reconductoring and line improvement Integrated solutions for the Underground cable laying construction, maintenance and efficiency of infrastructures such as: ENERGY AUTOMATION overhead & underground Telecommunica
Slide 4: History of success
History of success + 60 years of experience “3xi approach: Internationalization, Innovation, Integration. These keywords drive Tesmec towards a growing future. FOCUS on 1951 1960 1984 2010 2008-2017 INTERNATIONALIZATION PIONEER in FOCUS on Start of trencher From FAMILY to Geographic and INNOVATION s
Slide 5: From IRON to TECHNOLOGIES
PRODUCTS SUPPLIER VALUE ADDED SOLUTIONS PROVIDER Equipment, machines, tools and Intelligence, specialists’ competences, technical services expertise, technologies Strategic innovation INFRASTRUCTURE INFRASTRUCTURE MANAGEMENT CONSTRUCTION & MAINTENANCE “ From IRON to Sector sensitive to economic cycl
Slide 6: International footprint
International footprint 90% export +135 Countries choose Tesmec +600 people Tesmec pursues a "Glocal" growth strategy: being global partner with local presence. ITALY France Tesmec SpA Russia SA Marais Group OOO TesmecRUS USA Tesmec Service Srl Tesmec USA, Inc China French Africa SGE Srl Tesmec New
Slide 7: Market overview & Strategic update
Market overview & Strategic update INVESTMENTS IN Market scenario RENTING VS BUYING SAFETY, SUSTAINABILITY & NEW INFRASTRUCTURES EQUIPMENT BECOME A CONNECTIVITY AS KEY evolution GROWING TREND DEVELOPMENT DRIVERS SENSITIVE TO ECONOMIC CYCLES NEW VALUE PROPOSITION: FOCUS ON NOT-CYCLICAL NEW BUSINESS M
Slide 8: Trencher business highlights
Trencher business highlights Business model: FROM sales TO value added solutions and services Need of integrated technological platforms for TELECOM and ENERGY Increasing demand of integrated systems rather than a single equipment Convergence between power grids and telecom networks and growing inte
Slide 9: Trencher main projects
Trencher main projects Wind farm - New Zealand TANAP Pipeline - Turkey Long distance - Ivory Coast Bulk Excavation - USA 9
Slide 10: Railway business highlights
Railway business highlights Catenary specialist: Installation Maintenance Diagnostic Growing pressure on SAFETY and ENVIRONMENTAL issues TESMEC GROUP PLACED 1 st DURING THE Main rail operators are looking for : PUBLIC MEETING FOR THE • high working performances PROVISIONAL AWARD OF • capabilit
Slide 11: Railway business highlights: winning technical advantages
“ From IRON to TECHNOLOGIES ” Railway business highlights WINNING TECHNICAL ADVANTAGES INNOVATIVE AUTOMATIC TRAIN REMOTE-CONTROL OF REMOTE MONITORING SYSTEM CONTROL SYSTEM TRACTION UNIT able to manage traction, braking and developed to supervise the fleets of allows the protection of the train alarm
Slide 12: Railway main projects
Railway main projects Full maintenance service - Italy Stringing operations - Italy Catenary operations - USA High speed lines - China 12
Slide 13: Energy business highlights
Energy business highlights Consolidation of the integration strategy in the sector smart technologies for power lines Increasing demand of MODERNIZATION and EFFICIENCY of power grids worldwide Projects of grids interconnection and integration of renewable energies Cyclicality of the stringing market
Slide 14: Energy business highlights
Energy business highlights Solution for High Voltage Solution for Medium Voltage – Low Voltage Telecommunication, Measurement and Electronic integrated sensors, Protections and Teleprotection, monitoring instruments devices for fault detection Electronics for Remote Control After-sales services and
Slide 15: Energy main projects
Energy main projects Powerline construction - Brazil Huge crossing - Norway Smart Metering Tool - Russia Fault detector - Italy 15
Slide 16: Outlook 2H2016
Outlook 2H2016 Increase in business VOLUMES (backlog and revenues), MARGINS and CASH FLOW Growing opportunities in TLC and energy cables market, especially in Africa & Australia/New Zealand. Relevant projects with main international contractors that ask for specialist services and rental activities.
Slide 17: Order Book 1H2016
ENERGY Order Book 1H2016 € mln 25 22,2 20 17,8 14,8 15 10,4 TRENCHERS 10 € mln 5 49,4 50 45,7 0 41,1 37,4 Order 1H2016 Order Order 40 book Revenues Intake book FY 2015 1H2016 30 20 10 RAILWAY 0 € mln Order book 1H2016 Order Order book 15 13,7 FY2015 Revenues Intake 1H2016 10,4 12 7,7 8,4 61,5 9 37,4
Slide 18: 1H2016 results
1H2016 results
Slide 19: 1H2016 Economic Results
1H2016 Economic Results GROUP (€ mln) 1H2016 1H2015 Delta % ENERGY 1H2016 1H2015Delta % Revenues 74,0 85,1 -13,0% Revenues 22,2 45,9 -51,6% EBITDA 7,4 14,2 -47,9% EBITDA 2,5 8,2 -69,5% % on Revenues 10% 17% % on Revenues 11% 18% EBIT 1,4 9,6 -85,4% % on Revenues 2% 11% TRENCHERS 1H2016 1H2015Delta %
Slide 20: Revenues 1H2016 1H2015
Revenues 1H2016 1H2015 17% 11% 6% 22% 21% 9% 43% 19% 8% 15% 17% 12% INTERNATIONAL SCALE AND EXPOSURE TO GROWING ECONOMIES Italy Europe Middle East BRICs and Oceania 1H2015: SALES IN EUROPE INFLUENCED BY THE IMPACT OF THE EXTRAORDINARY Africa ORDER OF STRINGING EQUIPMENT FOR PROJECT IN BRAZIL North-C
Slide 21: EBITDA 1H2016
EBITDA 1H2016 20 TRADING 15 9,4 SERVICE 10 (1,6) 0,2 0,1 14,2 (3,7) 5 7,4 (11,1) 0 EBITDA Revenues Raw materials Cost for Personnel Equity Capitalized EBITDA 1H2015 & other costs Services Costs Investments R&D Expenses 1H2016 1H2015 Cost variances reflect heavier service activity 1H2016 21
Slide 22: 1H2016 Financial Results
1H2016 Financial Results Financial Information (Euro mln) 1H2016 1Q2016 2015 Net Working Capital 70,0 80,6 63,5 Non Current assets 87,1 81,8 83,9 Other Long Term assets/liabilities (1,2) (1,2) (1,7) Net Invested Capital 155,9 161,2 145,7 Net Financial Indebtness 104,8 107,1 89,9 Equity 51,1 54,1 55,
Slide 23: Working Capital Evolution
Working Capital Evolution Days Euro Mln 1H2016 1Q2016 2015 1H2016 Trade Receivables 53,8 63,2 50,9 131 Inventories 60,1 60,1 58,9 152 Work in progress contracts 2,3 2,7 3,8 Trade Payables (32,7) (34,0) (39,0) -80 Other Current Assets/(Liabilities) (13,5) (11,4) (11,1) -33 Net Working Capital 70,0 80
Slide 24: Net Financial Position Evolution
Net Financial Position Evolution Operating Net Financial Position without figurative debt for Grassobbio premises 120 105 2,6 2,8 1,0 IAS17 90 1,2 3,3 4,6 IAS17 17,2 75 17,8 60 45 87,6 30 72,1 15 0 NFP OFCF NWC Other Dividend Int.exp. Taxes NFP FY 2015 capex Net paid net 1H2016 2015 NFP increase has
Slide 25: Summary 1H2016 Profit & Loss statement
Summary 1H2016 Profit & Loss statement Delta vs Profit & Loss Account (€ mln) 1H2016 1H2015 Delta % 2015 Net Revenues 74,0 85,1 (11,1) -13,0% Raw materials costs (-) (31,1) (44,0) 12,9 -29% Cost for services (-) (15,4) (13,8) (1,6) 12% Personnel Costs (-) (19,8) (16,1) (3,7) 23% Other operating reve
Slide 26: Summary 1H2016 Balance Sheet
Summary 1H2016 Balance Sheet Balance Sheet (€ mln) 1H2016 2015 Inventory 60,1 58,9 W ork in progress contracts 2,3 3,8 Accounts receivable 53,8 50,9 Accounts payable (-) (32,7) (39,0) Op. working capital 83,5 74,6 Other current assets (liabilities) (13,5) (11,1) Net working capital 70,0 63,5 Tangibl
Slide 27: 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 acc