Slide 1: Tesmec Group STAR Conference Presentation
Tesmec Group STAR CONFERENCE PRESENTATION Milan, 26 – 27 March 2013 Corporate
Slide 2: Business overview
Business overview MISSION: 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 Infrast
Slide 3: Grids Efficiency - Business Development
Grids Efficiency - Business Development Local power generation TRANSMISSION Grids efficiency SMART GRIDS LINES HIGH VOLTAGE MEDIUM & LOW VOLTAGE Predictive LINES LINES maintenance SENSING, ANALYTICS AND CONTROL Deployment COMMUNICATIONS Co-Design Driver TELE-PROTECTION Solutions 3/24
Slide 4: Railways - Business Evolution
Railways - Business Evolution Catenary Installation Constant Tension Stringing Units specifically designed and manufactured for stringing cables in construction and maintenance of railways lines electrification or refurbishment Products range upgrade Catenary Installation Maintenance Operations &
Slide 5: Tesmec Group Strategy
Tesmec Group Strategy LEADERSHIP Focus on QUALITY to get the PREMIUM Sector of the market 5/24
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 changelling projects control and maintenance power lines operations
Slide 7: Internationalization
Internationalization STRINGING global market RAILWAY TRENCHERS specific markets specific markets North America, Italy, Norway, China, Turkey, Russia North America, Middle East TRENCHING SERVICES GALLMAC specific markets specific markets Qatar, Italy, North America, North America, Europe South Africa
Slide 8: 2012 Performance of foreign subsidiaries
2012 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 T
Slide 9: Operating Companies - Group Structure
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-Ta
Slide 10: Integration: Key Partnership
Integration: Key Partnership STRATEGIC JV TECHNOLOGICAL AGREEMENT COLLABORATION ACQUISITIONS WITH ACADEMIC WORLD PARTNERSHIP WITH KEY PLAYERS 10/24
Slide 11: 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 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 6012/24
Slide 13: 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 13/24
Slide 14: 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 14/24 * EBITDA affected by 3,3 IPO non recurring costs ->
Slide 15: 2010-2012 Net Profit
2010-2012 Net Profit Mln € 8,1 10 6,6 NET PROFIT 8 5,2 CAGR (’10-’12) 6 25% 4 2 0 2010 2011 2012 3,7 4 3 3,2 2,6 DIVIDEND 2 DISTRIBUTION 0 * calculated based on the proposal of the BoD made in March 14,2013 and on the shares outstanding as of 18.03.2013 2010 2011 2012 2013E* 15/24
Slide 16: 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 16/24
Slide 17: 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 2012 Worki
Slide 18: 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 19: Order Book
Order Book ORDER BOOK YEAR END 2011 – 2012 € mln TRENCHERS +38% € mln 54,9 60 60,9 50,9 40 60 23,1 19,1 20 44,1 23,1 0 Order book 2012 Order Order book 2011 Revenues Intake 2012 40 19,1 STRINGING EQUIPMENT € mln 100 20 81,7 37,8 80 68,9 25 60 37,8 40 25 0 20 0 2011 Order 2012 Order Order 2012 book F
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 STRINGING RAILWAY Strong Grid & Strategic Project with SPECIALIST TRENCHERS High Volt
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: Shareholding Structure
Shareholding Structure Albemarle AM Italiana Alimenti Treasury Share 5,34% 2,10% Lazard Freres Gestion 1,47% 3T Finanziaria S.p.A. S.A.S. 7,45% 2,07% TTC S.r.l. 30,30% Free float 38,44% Shares directly owned by Directors FI.IND S.p.A. 0,29% 12,54% 22/24
Slide 23: 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 24: 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 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