Slide 1: Integrated Solutions Provider - 2023.9M Results Presentation
Integrated Solutions Provider 2023.9M Results Presentation 6th November 2023 1
Slide 2: Index
Index 1. Tesmec Group at a glance 2. Key Market trends & Corporate strategy 3. 2023.Q3 Business highlights & Results 4. Outlook 5. Annex 6th November 2023 2
Slide 3: 1. Tesmec Group at a glance
1. Tesmec Group at a glance 6th November 2023 3
Slide 4: Integrated Solutions Provider for Energy and Data transport
Integrated Solutions Provider for Energy and Data transport PURPOSE Consolidate the position as a solution provider in the reference markets driven by the trends of energy transition, digitalization, and sustainability. Vision Mission Value proposition Strategy To be a technological To operate in th
Slide 5: Tesmec Group at a glance
Tesmec Group at a glance ENERGY - STRINGING RAILWAY 70 +1,000 10 YEARS PEOPLE MANUFACTURING of experience PLANTS ▪ Solutions for power lines ▪ Catenary lines construction & construction & maintenance maintenance ▪ Advanced methodologies for ▪ Diagnostic vehicles and systems automating jobsite ▪ Inte
Slide 6: 2. Key Market trends & Corporate strategy
2. Key Market trends & Corporate strategy 6th November 2023 6
Slide 7: Sustainability Strategy
SUSTAINABILITY STRATEGY Sustainable Development Goals CLIMATE CHANGE INVEST IN PEOPLE WORK OUT AN INCREASE THE % OF Strategic MITIGATION & LOCAL EFFECTIVE GREEN & DIGITAL COMMUNITIES WELL Guidelines & ENVIRONMENTAL SUSTAINABLE SOLUTIONS BEING PROTECTION GOVERNANCE E S G Commitment to the Increase St
Slide 8: Sustainability Key Initiatives
SUSTAINABILITY KEY INITIATIVES Strategic Guidelines Initiatives (in progress or delivered) • Sizing the businesses that are associated with environmentally sustainable economic activities in compliance with the European Taxonomy Regulation Green & Digital Solutions • Disclosure of the proportion of
Slide 9: Taxonomy-Aligned KPI: Fiscal Year 2022
TAXONOMY-ALIGNED KPI: Fiscal Year 2022* TESMEC economic activities are eligible according the ANNEX I – Climate change mitigation • 3.1 - Manufacture of renewable energy technologies • 3.3 - Manufacture of low carbon technologies for transport • 3.6 - Manufacture of other low carbon technologies Str
Slide 10: Trencher - Key Facts 2023.Q3
TRENCHER - Key Facts 2023.Q3 • Resume of Tesmec activities in Guinea • Product development of new machines such as T800 Tesmec resumed its Development of the operation in Guinea re- prototype for a new offering to the market its machine T800 and launch products and services. of this new product in t
Slide 11: Energy Stringing - Key Facts 2023.Q3
ENERGY STRINGING - Key Facts 2023.Q3 • Strengthening relationships with main TSOs, involved in future innovative developments • Structured dialogue with key players to preserve the position as market leader • New approach for the US market: diversification of the customers portfolio, focus on tools
Slide 12: Energy Automation - Key Facts 2023.Q3
ENERGY AUTOMATION - Key Facts 2023.Q3 • Opening and consolidation of new commercial channels with foreign DSOs • Significant steps forward in the substation automation segment: validation for ASAT project and SAS project at final stages • Building a new partnership with a company focused on digital
Slide 13: Rail - Key Facts 2023.Q3
RAIL - Key Facts 2023.Q3 • Consolidation of the international growth in the railway sector • Innovative technologies to provide the highest safety and quality level for catenary installation and maintenance & for diagnostic of railway infrastructures Full acceptance from NRIC Completed the long Tesm
Slide 14: 3. 2023.Q3 Business highlights & Results
3. 2023.Q3 Business highlights & Results 6th November 2023 14
Slide 15: 2023.9M Closing
2023.9M CLOSING GROUP 2023.9M 2022.9M Δ vs.22 RESULTS COMMENTARY (€ mln) REVENUES (1) 193,5 173,5 +11,6% (1) Revenues: +11,6% driven mainly by Trencher and Energy sectors EBITDA (2) 27,5 25,9 +6,0% % on Revenues (2) 14,2% 14,9% (2) EBITDA: +6% positively impacted by favorable sales mix yielding high
Slide 16: 2023.9M Business Breakdown
2023.9M _ BUSINESS BREAKDOWN € mln ENERGY TRENCHERS RAIL 106,2 EBITDA Margin 49,3 EBITDA Margin 99,1 EBITDA Margin 37,9 10,9% 12,7% 36,5 38,0 27,4% 18,0% 13,6% 14,6% +30% +40% +7,2% +4,3% -31,5% +24,6% 10,0 7,2 6,8 5,2 10,8 13,4 REVENUE EBITDA REVENUE EBITDA REVENUE EBITDA 2022.9M 2023.9M 2022.9M 20
Slide 17: Backlog evolution as of 2023.Q3
BACKLOG evolution as of 2023.Q3 (1) Including new opportunities in hi- 31/12/2021 31/12/2022 30/09/2023 tech content business 123,7 (1) (2) 100,6 (2) Long term backlog in Automation 98,9 and Rail Energy 82,2 75,4 76,5 Trencher 223,4 212,1 (2) 109,9 Railway Total (€ Mln) 412,3 406,2 284,2 406,2 412,3
Slide 18: 2023.9M Revenues by Geography
2023.9M REVENUES BY GEOGRAPHY 2023.9M: 193,5 Mln€ 2022.9M: 173,5 Mln€ Africa: 4% Middle East: Middle East: Africa: 4% 15% 11% Europe: 19% Europe: 24% BRIC & BRIC & Others: 17% Others: 17% North & North & Central Italy: 30% Italy: 21% Central America: America: 19% 19% Revenue by Region (Mln €) 2022.9
Slide 19: 2023.9M Revenues Recurring vs Non-recurring
2023.9M REVENUES “Recurring” vs “Non-recurring” 2023.9M: 193,5 €Mln 2022.9M: 173,5 €Mln Recurring Non recurring Recurring Non recurring 55,60% 49,85% 50,15% 44,40% 77 €M 96,5 97 11,3 77 M€ 20,596,5 96,5 €M M€ €M €M €M €M • Recurring: Rental, Projects, Spare Parts, Services (maintenance, revamping &
Slide 20: 2023.9M EBITDA Evolution by BU
2023.9M EBITDA EVOLUTION BY BU € Mln 35 30 +2,7 (3,1) +2,0 25 27,5 25,9 Higher Completion of job Improved mix / supply volumes and orders yielding lower chain efficiency in 20 improved margins, rebound Stringing, plus positive sales mix expected from Q4 contribution from US jv 15 10 5 0 2022.9M Tren
Slide 21: 2023.9M Financial Results
2023.9M FINANCIAL RESULTS Financial Information (€ mln) Sep. 30, 2023 Dec. 31, 2022 Net Working Capital 105,6 80,6 of which: inventory + WIP 147,2 126,4 Net Fixed Assets 90,3 89,7 Right of use - IFRS 16/IAS 17 19,1 21,9 Other Long-Term Assets/Liabilities 18,4 19,5 Net Invested Capital 233,4 211,7 Ne
Slide 22: 2023.9M Net Financial Position Evolution and Free Cash Flow
2023.9M NET FINANCIAL POSITION EVOLUTION AND FREE CASH FLOW € Mln 160 21,3 12,1 13,6 149,0 140 24,1 24,9 149,0 128,4 127,7 120 128,4 127,7 104,3 +1,5€M net FCF excl. 100 104,3 Increased levels ΔNWC of stock to meet 80 short-term expected sales 60 40 20 0 2022 IFRS 16 Net debt 2022 NWC CAPEX OFCF Net
Slide 23: 2023.9M Net Working Capital Evolution
2023.9M NET WORKING CAPITAL EVOLUTION € mln 120 4,7 4,0 11,6 11,7 16,1 100 Linked Linked to Reclassification 105,6 Increased in 80 to Rail BU* Trencher BU linked to BU Increased stock coeherence with 80,6 Δ stocks Rail* 60 levels to meet short-term growing 40 sales expectations 20 0 2022 NWC Invento
Slide 24: 4. Outlook
4. Outlook 6th November 2023 24
Slide 25: Outlook 2023 Update
OUTLOOK 2023 UPDATE 2019pf 2020pf 2021 2022 2023 • Important growth of Trencher and Energy, especially 199,6 172,8 194,3 245,2 in Middle East and US markets, amid challenging TURNOVER M€ M€ M€ M€ geopolitical and macroeconomic/financial frames 270~280 M€ • Focus on improving sales mix and prioritizi
Slide 26: Trencher - Outlook 2023: Business Guidelines
TRENCHER – OUTLOOK 2023: Business Guidelines • Business development in USA • Consolidate the business in North Africa through NAPEC participation Tesmec is focusing Tesmec aims to strengthen in developing and develop business business opportunities in the opportunities in the Guinea US market, espec
Slide 27: Energy Stringing - Outlook 2023: Business Guidelines
ENERGY STRINGING – OUTLOOK 2023: Business Guidelines • Big backlog recovery with important orders acquisition thanks to new opportunities in renewable sector • Refurbishment of high voltage lines in key markets • Digital transformation • Consolidate the worldwide presence & normalization of the supp
Slide 28: Energy Automation - Outlook 2023: Business Guidelines
ENERGY AUTOMATION - OUTLOOK 2023: Business Guidelines • Consolidation of existing innovative markets and leverage on technological skills development to open new market opportunities • Completion of solution portfolio in terms of products and systems • Supply chain management Market consolidation Si
Slide 29: Rail - Outlook 2023: Business Guidelines
RAIL – OUTLOOK 2023: Business Guidelines • We encourage the development of SUSTAINABLE railway infrastructures: from diesel vehicles to vehicles equipped with Škoda electrically-powered traction solutions • DIAGNOSTICS & DIGITIZATION to increase the predictive maintenance and the safety and of the r
Slide 30: 5. Annex
6" November 2023 TESMELC 5. Annex 30
Slide 31: Appendix A: Summary 2023.9M Profit & Loss Statement
APPENDIX A : SUMMARY 2023.9M PROFIT & LOSS STATEMENT Profit & Loss Account (Euro mln) 2023.9M 2022.9M Delta vs 2022 Delta % Net Revenues 193,5 173,5 20,1 11,6% Raw materials costs (-) (84,2) (69,2) (15,0)* 21,7% Cost for services (-) (38,3) (34,5) (3,8) 11,0% Personnel Costs (-) (47,4) (44,7) (2,7)
Slide 32: Appendix B: Summary 2023.9M Balance Sheet
APPENDIX B: SUMMARY 2023.9M BALANCE SHEET Balance Sheet (€ mln) Sep. 30, 2023 Dec. 31, 2022 Inventory 117,5 101,4 Work in progress contracts 29,7* 25,0* Accounts receivable 60,2 56,2 Accounts payable (-) (85,8)* (74,2)* Op. working capital 121,6 108,4 Other current assets (liabilities) (16,1) (27,8)
Slide 33: Disclaimer
Disclaimer This presentation has been prepared by Tesmec S.p.A. (“Tesmec”, the “Company” or the “Group”). As used herein, “Presentation” means this document, any oral presentation, the question and answer session and any written or oral material discussed or distributed during the presentation. The
Slide 34: www.tesmec.com
www.tesmec.com 6th November 2023 34