Slide 1: Tesmec Group First Half 2011 Results
Tesmec Group First Half 2011 Results Analyst Presentation, 4 August 2011 Corporate
Slide 2: Agenda
Agenda FIRST HALF 2011 - Main business highlights A.Caccia, CEO FIRST HALF 2011 - Financial results P.Mosconi, GM A.Bramani, CFO Outlook 2011 A.Caccia, CEO Appendix 2/25
Slide 3: Index
Index FIRST HALF 2011 - Main business highlights FIRST HALF 2011 - Financial results Outlook 2011 Appendix 3/25
Slide 4: Main business highlights: Stringing
Main business highlights: Stringing • Strong sales (+13,3%) driven mainly by Russia and Brazil market; • Technological agreement signed with FSK (russian federation), Third world-wide TSO (Transmission System Operator); (see slide 5) • Railway: signed contract for the supply of the first set of equi
Slide 5: Stringing: FSK Agreement follow up
Stringing: FSK Agreement follow up FSK 5 yrs’ capex plan (2011-2014): 25 billions euro; Technological Agreement: Step 1: construction of new lines and refurbishment of existing network in line with best international standards; Step 2: new technologies advanced products ICT management system
Slide 6: Stringing: Energy Transportation & Distribution
Stringing: Energy Transportation & Distribution Control& Stringing Management Communications Service & Maintainance • Power Lines Comms • Optical Fiber Deploy Services • GPRS, 3G ments Control & Management Refurbshiment • Management System Co-Design Ancillaries • Actuators Driver Machines Solutions
Slide 7: Main business highlights: Trenching
Main business highlights: Trenching • Sales recovery in Q2 (+46,6% vs. SPPY) driven mainly by Middle East and Usa market; • Tesmec Peninsula start up in q2 to develop sales in arabian gulf area; • Contracting: new project in Saudi Arabia (KAFD) start up and structure in place to manage other incomin
Slide 8: Shareholding Structure
Shareholding Structure Post IPO lock-up agreements: TTC & FI.IND.: 1 year (expiring 1st July 2011) 8/25
Slide 9: Index
Index FIRST HALF 2011 - Main business highlights FIRST HALF 2011 - Financial results Outlook 2011 Appendix 9/25
Slide 10: First Half 2011 Results
First Half 2011 Results Tesmec (Cons.) Tesmec (Cons.) Income Statement 1H 2011 1Q 2Q 1H 1Q 2Q 1H Financial Information (€m) 1H 2011 (€ m) vs 1H 2010 1Q 2011 1H 2011 vs 2010 2010 2010 2010 2011 2011 2011 2010 delta % Revenues 29,3 24,1 53,4 26,5 29,6 56,1 5% Net working capital 40,2 48,4 43,0 7% EBIT
Slide 11: Revenues and EBITDA for Stringing and Trencher Division
Revenues and EBITDA for Stringing and Trencher Division Revenues (€ mln) 56,1 +5,2% 53,4 29,3 29,7 -5,6% 26,5 24,1 +13,4% Stringing Equipment Trenchers EBITDA (€ mln and % of Net Revenues) Service 10,4 19,4% 10,7 19 % 48% 11,1% 5,6 14,1% 4,7 5,3 5,4 50% 45,5% 6,6% 16,6% 14,9% 6,6% 20,8% 24% 11/25
Slide 12: Revenues: international scale and exposure to growing economies
Revenues: international scale and exposure to growing economies 2010 2011 Stringing equipment 7% 5% 4%3% 5% 6% 24% 23% 2% 4% 53% 63% Italy Europe Middle East BRICs and Oceania Africa North-Central America Trenchers 14% 6% 12% 23% 4% 17% 4% 25% 3% 54% 38% Italy Europe Middle East BRICs and Oceania Af
Slide 13: Revenues: geographical Split
Revenues: geographical Split Tesmec Group Revenue increase in Stringing was mainly driven by sales in Brazil and Russia. India and China were showing a weaker trend; Revenue in Trenchers was mainly driven by increasing sales in Middle East, North and Central America Area particularly in the seco
Slide 14: EBITDA path
EBITDA path Tesmec Group EBITDA on Revenues moved from 19,4% (1H 2010) to 19% (1H 2011) Accounting treatment of the new rent contract affected positively EBITDA by 0,8 mm euro Ebitda decrease explained primarly by an exchange differences effect, and in slight cause for margin effect € mln 0,8
Slide 15: NET PROFIT path
NET PROFIT path Tesmec Group Net Profit decrease mainly due to negative trend in Eur/Usd exchange rate which affects Ebitda margin and Net results; € mln 0,3 0,5 (0,8) 0,1 (1,3) 15/25
Slide 16: Working Capital Evolution
Working Capital Evolution Tesmec Group Receivables were impacted by the growth of revenue but increased less than proportionally than sales Payables increase was mainly linked to turnover in sales Days Calculated on Revenues € mln Working Capital Evolution 60 1,5 1 0,8 40 (0,5) 43,0 40,2 20 FY20
Slide 17: NFP Evolution
NFP Evolution Tesmec Group Main variance related to accounting of new rent contract (IAS 17); The value of this financial debt is not included in the calculation of the covenants of the main loan agreements; Working capital increase in proportion to the sale increase; Dividends paid by 3,0 m
Slide 18: Exchange exposure First Half 2011
Exchange exposure First Half 2011 18/25
Slide 19: Index
Index FIRST QUARTER 2011 - Main business highlights FIRST QUARTER 2011 - Financial results Outlook 2011 Appendix 19/25
Slide 20: Order Book
Order Book ORDER BOOK 1H2010 – Year End 2010 – 1H 2011 € mln Stringing Equipment Trenchers STRINGING EQUIPMENT TRENCHERS € mln € mln 20/25
Slide 21: Guidelines Second Half 2011
Guidelines Second Half 2011 Tesmec Group confirms expectations to growth revenues in 2011 and subsequent years. Tesmec Group plans to: consolidate growth in Stringing Sector particularly in Russia, Sud America and recover sales in USA market; significantly increase revenues in Trencher Sector pa
Slide 22: Index
Index FIRST QUARTER 2011 - Main business highlights FIRST QUARTER 2011 - Financial results Outlook 2011 Appendix 22/25
Slide 23: Summary Profit & Loss statement with the effects of new rent contract under IAS 17
Summary Profit & Loss statement with the effects of new rent contract accounted under IAS 17 A B A+B Profit & Loss Account (€ m) 1H 2011 Delta vs IAS 17 1H 2011 1H 2010 Delta % adj 2010 Net Revenues 56,1 56,1 53,4 2,7 5,1% Raw materials costs (-) (26,8) (26,8) (24,1) (2,7) 11% Cost for services (-)
Slide 24: Summary Balance Sheet with the effects of new rent contract under IAS 17
Summary Balance Sheet with the effects of new rent contract accounted under IAS 17 A B A+B Balance Sheet (€ m) 2011 adj IAS 17 2011 2010 Inventory 43,0 43,0 42,2 Accounts receivable 34,0 34,0 32,5 Accounts payable (-) (26,8) (26,8) (26,3) op. working capital 50,2 0,0 50,2 48,4 Other current assets (
Slide 25: 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