Slide 1: Tesmec Group Corporate Presentation
Tesmec Group Corporate Presentation Analyst Presentation May 9, 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: 1Q2014 - Description Trend
1Q2014 - Description Trend • turnaround in the U.S. market where the adverse weather conditions have affected the first two months of the year, after which it is expected a strong recovery that began in March; • Stringing after the first 2014 few months is in recovery with a change in product mix in
Slide 4: 1Q2014 P&L Results
1Q2014 P&L Results TRENCHER 1Q2014 1Q2013 Delta % Revenues 11,7 9,3 26% GROUP 1Q2014 1Q2013 Delta % EBITDA 0,8 1,2 -33% Revenues 27,2 25,9 5% % on Revenues 7% 13% EBITDA 3,2 5,1 -37% % on Revenues 12% 20% RAILWAY 1Q2014 1Q2013 Delta % Revenues 1,7 0,9 100% EBIT 1,6 3,6 -56% % on Revenues 6% 14% EBIT
Slide 5: Subsidiaries
Subsidiaries Tesmec RUS (100%) Revenue 0.4 million € (+33% vs 1Q13) Tesmec USA (100%) Slowdown for Stringing and good prospects for Revenue 7,8 million € (+100% vs 1Q13) grid efficiency. Performing better than 1Q 2013. Tesmec Service (100%) Revenue 1 million € (+900% vs 1Q13) Good backlog and many p
Slide 6: Performance of foreign subsidiaries consolidated by Equity Method
Performance of foreign subsidiaries consolidated by Equity Method JV Condux-Tesmec (50%) Revenue 3.7 million € (-33% vs 1Q13) Slight decline that will be recovered in subsequent quarters; Good backlog and prospetcs in negotiation JV Tesmec Peninsula (49%) Revenue 2.2 million € (+ 214% vs 1Q13) Impor
Slide 7: Revenues: international scale and exposure to growing economies
Revenues: international scale and exposure to growing economies 1Q2013 1Q2014 10% 4% 31% 24% 14% 26% 5% 20% 5% 5% 23% 33% Italy Europe Middle East BRICs and Oceania Africa North-Central America 7/23
Slide 8: EBITDA 1Q2014
EBITDA 1Q2014 8 6 1,4 4 0,1 0,5 5,1 (3,5) (0,4) 2 3,2 0 EBITDA Revenues Materials Cost for Personnel Capitalized EBITDA 1Q2013 cost Services Costs R&D 1Q2014 Expenses EBITDA decrease is mainly due to change in product and 1Q 1Q 2013 market mix 2014 8/23
Slide 9: 1Q2014 Financial Results
1Q2014 Financial Results Financial Information 1Q2014 2013 (Euro Mln) Net Working Capital 60,7 52,7 Non Current assets 58,8 57,5 Other Long Term assets/liabilities 0,2 0,4 Net Invested Capital 119,7 110,6 Net Financial Indebtness 78 68,8 Equity 41,7 41,8 Total Sources of Financing 119,7 110,6 9/23
Slide 10: Working Capital Evolution
Working Capital Evolution Days* 1Q Days Euro Mln 1Q2014 2013 2014 2013 Trade Receivables 45,9 43,2 144 137 Inventories 49,5 48,1 155 152 Trade Payables (25,2) (25,5) 79 81 Other Current Assets/(Liabilities) (9,5) (13,1) 30 41 Net Working Capital 60,7 52,7 Working Capital Evolution 1Q2014* 75 1,4 2,7
Slide 11: Net Financial Position Evolution
Net Financial Position Evolution 80 Operating Net Financial Position without figurative debt 68,8 for Grassobbio premises 70 19,6 0,7 1 60 19,9 3,2 IAS 17 5,1 8,0 1,6 50 40 77,9 30 58,3 48,9 48,9 20 10 0 NFP Operating OFCF NWC Finacial Other Int.exp. Taxes Operating Capex NFP FY 2013 NFP Inv. capex
Slide 12: Exchange Rate Risk exposure 1Q2014
Exchange Rate Risk exposure 1Q2014 Revenues Operating Costs 2% 1% Euro 24% Euro 29% USD USD 69% Other 75% Other Trade Receivables Trade Payables 14% Euro Euro 50% 48% USD USD 86% 2% 12/23
Slide 13: Order Book 1Q 2014
Order Book 1Q 2014 TRENCHERS STRINGING € mln € mln 18,0 28,0 20 30 28,4 17,2 14,6 13,8 15 20 10 11,7 11,3 10 5 0 - 0 - Order 1Q2014 Order Order Order book 3M 2014 Order Order book book Revenues Intake book FY2013 Revenues Intake 1Q2014 FY 2013 1Q2014 RAILWAY € mln 15 11,9 12,0 18 10 58 28 Mln 5 1,7
Slide 14: Outlook 2014
Outlook 2014 Considering that the recovery of the US market, which had a positive influence on first quarter performance, appears to be gaining momentum in the second half of the year and that the majority of the factors that impacted first quarter performance are of a non recurring nature and also
Slide 15: Appendix A - Summary 1Q2014 Profit & Loss statement
Appendix A - Summary 1Q2014 Profit & Loss statement Delta vs Profit & Loss Account (€ mln) 1Q2014 1Q2013 Delta % 2013 Net Revenues 27,2 25,9 1,3 5% Raw materials costs (-) (13,9) (10,4) (3,5) 33% Cost for services (-) (4,8) (4,9) 0,1 -2% Personnel Costs (-) (6,3) (5,9) (0,4) 7% Other operating reven
Slide 16: Appendix B - Summary Balance Sheet
Appendix B - Summary Balance Sheet Balance Sheet (€ mln) 1Q2014 2013 Inve ntory 49,5 48,1 Accounts re ce ivable 45,9 43,2 Accounts payable (-) (25,2) (25,5) Op. working capital 70,2 65,8 Othe r curre nt asse ts (liabilitie s) (9,5) (13,1) Net working capital 60,7 52,7 Tangible asse ts 44,2 43,2 Inta
Slide 17: 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 18: 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