Slide 1: 9M 2016 results presentation
Partner in a changing world 9M 2016 results presentation 7th November 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: From IRON to TECHNOLOGIES
PRODUCTS SUPPLIER VALUE ADDED SOLUTIONS PROVIDER Solutions provider Equipment, machines, tools and Intelligence, specialists’ competences, technical services expertise, technologies INFRASTRUCTURE INFRASTRUCTURE MANAGEMENT CONSTRUCTION & MAINTENANCE Design of advanced solutions Sector sensitive to e
Slide 4: Integrated value proposition
FULL SERVICE High performing equipment Tailor made Strategic Positioning solutions Feasibility Training study WHY Telematics After sales Solutions support Customers’ needs WHAT Provider FROM “ A TO Z ” VALUE CHAIN based on customers needs INTEGRATED CONNECTIVITY VALUE PROPOSITION HOW Innovation GREE
Slide 5: 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 SENSITIVE TO DEVELOPMENT DRIVERS ECONOMIC CYCLES FOCUS ON NOT-CYCLICAL NEW VALUE PROPOSITION: NEW BUSINESS M
Slide 6: Trencher business highlights
GEOLOGICAL STUDIES SALE & RENTAL Trencher business highlights SERVICES CONTINUOUS INNOVATION TRAINING AUTOMATIC DIGGING WHY AND SUPERVISION AND SELF DIAGNOSTIC Customers’ needs INTEGRATED VALUE PROPOSITION FROM MAINTENANCE SATELLITE AUTOMATIC GUIDANCE • Overall cost TO FLEET MANAGEMENT reduction REM
Slide 7: Railway business highlights
Winning AUTOMATIC TRAIN CONTROL SYSTEM competitive Railway business highlights advantages allows protection of the train while travelling, ensuring: • highest mobility and safety • increased performances • reduced fleet asset WHY REMOTE-CONTROL OF TRACTION UNIT Customers’ needs TESMEC GROUP PLACED 1
Slide 8: Energy business highlights
Energy business highlights SMART & GREEN Technologies for ENERGY TRANSPORT WHY Brand Awareness - Know How - International Presence Customers’ needs CONSTRUCTION & MAINTENANCE MANAGEMENT & MONITORING • Service activities • Flexibility and customized solutions • New systems for NEW Power Lines EXHISTI
Slide 9: 9M 2016 Economic Results
9M 2016 Economic Results GROUP (€ mln) 9M2016 9M2015 Delta % ENERGY 9M2016 9M2015 Delta % Revenues 108,5 120,2 -9,7% Revenues 30,5 58,2 -47,6% EBITDA 2,9 9,4 -69,1% EBITDA 10,7 16,7 -35,9% % on Revenues 10% 16% % on Revenues 10% 14% EBIT 1,6 9,3 -82,8% % on Revenues 1% 8% TRENCHERS 9M2016 9M2015 Del
Slide 10: Revenues 9M2016 9M2015
Revenues 9M2016 9M2015 10% 7% 20% 21% 23% 8% 39% 16% 10% 12% 19% 15% INTERNATIONAL SCALE AND EXPOSURE TO GROWING ECONOMIES Italy Europe Middle East BRICs and Oceania Tesmec Group kept on growing in foreign markets, with particular impact of the African Africa markets, BRIC and Oceania. North-Central
Slide 11: EBITDA 9M2016
EBITDA 9M2016 € mln 30 TRADING 25 15,5 SERVICE 20 15 (5,1) 0,2 10 (4,7) (0,2) 16,7 5 10,7 (11,7) 0 EBITDA Revenues Raw materials Cost for Personnel Equity Capitalized EBITDA 9M2015 & other costs Services Costs Investments R&D Expenses 9M2016 Cost variances reflect heavier service activity 9M2015 201
Slide 12: 9M2016 Financial Results
9M2016 Financial Results Financial Information (Euro mln) 9M2016 2015 Net Working Capital 76,5 63,5 Non Current assets 90,6 83,9 Other Long Term assets/liabilities (1,1) (1,7) Net Invested Capital 166 145,7 Net Financial Indebtness 115,3 89,9 Equity 50,7 55,8 T otal Sources of Financing 166 145,7 12
Slide 13: Working Capital Evolution
Working Capital Evolution Days Days Euro Mln 9M2016 9M2015 2015 9M2016 2015 Trade Receivables 57,6 51,8 50,9 143 111 Inventories 54,7 60,8 58,9 141 137 W ork in progress contracts 2,1 4,5 3,8 Trade Payables (27,0) (41,9) (39,0) -67 -86 Other Current Assets/(Liabilities) (10,9) (17,3) (11,1) -27 -24
Slide 14: Net Financial Position Evolution
Net Financial Position Evolution Operating Net Financial Position without figurative debt for Grassobbio premises € mln 115,3 120 89,9 IAS17 105 3,5 2,4 16,9 6,3 2,6 90 6,5 IAS17 4,0 17,8 13,0 75 60 45 (12,9) 98,4 72,1 30 15 0 NFP OFCF NWC Fleet capex capex new Other Dividend Int.exp. Taxes NFP FY 2
Slide 15: 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 16: Relevant worldwide projects
Relevant worldwide projects Automation - Russia FTTH – UK & NZ Railway - Italy Railway - USA Stringing - Asia Pipeline & Bulk Excavation - MiddleEast Automation - South America & Italy Telecom - Africa Wind farm - Australia 16
Slide 17: Order Book 9M 2016
ENERGY Order Book 9M 2016 € mln 80 60 40,7 40 TRENCHERS 30,5 28,0 € mln 17,8 80 20 74,3 74,0 60 0 Order book 9M2016 9M2016 Order book 45,7 45,4 31/12/2015 Revenues Order Intake30/09/2016 40 20 RAILWAY € mln 0 80 Order book 9M2016 9M2016 Order book 31/12/2015 Revenues Order Intake30/09/2016 28 60 45,
Slide 18: Summary 9M 2016 Profit & Loss statement
Summary 9M 2016 Profit & Loss statement Profit & Loss Account (€ mln) 9M2016 9M2015 Delta Delta % Net Revenues 108,5 120,2 (11,7) -9,7% Raw materials costs (-) (46,3) (61,8) 15,5 -25% Cost for services (-) (22,6) (20,9) (1,7) 8% Personnel Costs (-) (29,2) (24,5) (4,7) 19% Other operating revenues/co
Slide 19: Summary 9M 2016 Balance Sheet
Summary 9M 2016 Balance Sheet Balance Sheet (€ mln) 9M2016 2015 Inventory 54,7 58,9 Work in progress contracts 2,1 3,8 Accounts receivable 57,6 50,9 Accounts payable (-) (27,0) (39,0) Op. working capital 87,4 74,6 Other current assets (liabilities) (10,9) (11,1) Net working capital 76,5 63,5 Tangibl
Slide 20: 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