Trevi Finanziaria Industriale S.p.a. · MIL:TFIN
Trevi Finanziaria Industriale — Mid & Small Cap Conference 2024
45 slides from Trevi Finanziaria Industriale's conference presentation, Dec 4, 2024
Slide 1: Mid & Small Cap Conference
| Mid & Small Cap Conference December 4th, 2024
Slide 2: Agenda
Agenda I. Trevi Group Overview II. Leading Underground Engineering III. 3Q24 Update IV. Focus on 1H24 Group Results V. Business Plan Highlights VI. Sustainable Journey Appendix
Slide 3: I. Trevi Group Overview
x TREWI|Group ralase si =
Slide 4: Trevi Group at a glance
Trevi Group at a glance Underground engineering Machine manufacturing Two BRIDGE INDUSTRIAL DAMS & LEVEES MARINE WORKS & CAUSEWAYS & CIVIL BUILDINGS Divisions PILING RIGS CFA RIGS CRANES MICRODRILLING SUBWAYS, SPECIAL ENVIRONMENTAL HYDROMILL & TUNNELLING ANCILLARIES HIGHWAYS PROJECTS SOLUTIONS GRABS
Slide 5: Trevi Group stands out on the international stage for its executive and technological expertise
Trevi Group stands out on the international stage for its exceptional executive and technological expertise in foundation works Since many years, Trevi, worldwide leader in dam construction Trevi boasts a wide experience in the realisation of important and and rehabilitation, has been committed to e
Slide 6: Trevi Group – 67 years of iconic projects
Trevi Group – 67 years of iconic projects 6
Slide 7: Shareholder structure (November 2024)
Shareholder structure (November 2024) Main shareholders Shareholders by type 21.3% 30.5% 36.3% Others 58.6% 15.0% 33.2% 5.1% CDPE + Polaris Institutional Investors Retail & Others 7
Slide 8: II. Leading Underground Engineering
II. Leading Underground Engineering
Slide 9: Trevi Group 1H24 Results – Key Highlights
Trevi Group 1H24 Results – Key Highlights 1H24 results confirm the strategy of Trevi Group's diversified business model. The Group has been able to manage the delay of some significant projects and to achieve performances in line with expectations, thanks to its exposure to different markets ▪ Group
Slide 10: 1H24 results mainly affected by delays in starting project works
1H24 results mainly affected by delays in starting project works in some countries. To be remarked the different economic phasing between 2023 and 2024: 1H23 very strong (frontloaded), 2024 expected with a stronger economic performance in 2H 1H24 1H23 Δ 23-24 Guidance 2024 Revenues €262.3 m €280.3 m
Slide 11: The highest backlog over the last years with well balanced geographical mix
The highest backlog over the last years with well balanced geographical mix Backlog evolution and breakdown by geography in 1H24 (€m) Europe +32% vs Dec-23 North America +15% vs Dec-23 Latam -3% vs Dec-23 Backlog €788.9 m by geography NORTH AMERICA EUROPE 15% 32% Africa +12% vs Dec-23 MIDDLE EAST 29
Slide 12: Order intake at €293.5 m with Italy, USA and UAE as the most dynamic
Order intake at €293.5 m with Italy, USA and UAE as the most dynamic geographies Order Intake and main projects to be delivered (€m) In addition to its current endeavours, Trevi has acquired the following projects as of June 30, 2024: Philippines: MRT 7 Station V.O.; UAE: Hail & Ghasha Development –
Slide 13: III. 3Q24 Update
III. 3Q24 Update
Slide 14: Updated figures in the first nine months of 2024
Updated figures in the first nine months of 2024 – Backlog progressing in line with expectations and net debt at €221 m Backlog evolution in the last two years (€m)1 Breakdown of net financial position 788.9 770.5 719.8 755.1 602.7 32 34 587.4 585.9 596.3 34 45 552.8 as of 30-Jun-24 as of 30-Sep-24
Slide 15: IV. Focus on 1H24 Group Results
IV. Focus on 1H24 Group Results
Slide 16: 1H24 revenues geographical mix by Divisions
1H24 revenues geographical mix by Divisions well diversified around the world €262.3 m revenues EUROPE NORTH AMERICA Company % revenues Company % revenues 24.0% 14.8% 27.7% 28.6% FAR EAST Company % revenues 18.4% LATAM 17.4% Company % revenues MIDDLE EAST 6.2% AFRICA Company % revenues 11.9% Company
Slide 17: 1H24 Trevi Group results show a positive net income
1H24 Trevi Group results show a positive net income, in spite of the delays in starting some projects works Revenues (€m) Recurring EBITDA (€m) -6.4% -17.3% 280.3 32.5 262.3 26.9 1H23 1H24 1H23 1H24 Rec. EBITDA 11.6% 10.2% margin Total net profit / (loss) (€m) Net financial position (€m) 234.3 235.1
Slide 18: 1H24 growth of Soilmec revenues and Trevi projects
1H24 growth of Soilmec revenues and Trevi projects, excluding Neom, partially recovered the delays in starting works in Saudi Arabia, USA and Philippines Key Highlights Revenues (€m) ▪ Trevi Division revenues decreased by -6.4% €28.7 m (-12.2% H/H) due to the reduction of some activities in Nigeria
Slide 19: 1H24 Group revenues growth ex-NEOM project
1H24 Group healthy revenues growth ex-NEOM project, leveraging on a recognised worldwide geographic footprint Group revenues evolution (€m) Italy €54.6 m (+100.7% H/H) +4.8% ex-NEOM Europe (ex-Italy) €11.1 m (+7.8% H/H) Revenues Revenues 280.3 262.3 251.3 ex-NEOM 239.9 North America €49.3 m (+9.3% H
Slide 20: Trevi Group reached the highest backlog over the last years
Trevi Group reached the highest backlog over the last years at the end of June 2024, covering 83% of 2024 expected revenues Key Highlights Backlog evolution in the last two years (€m)1 ▪ In 1H24, Trevi Group awarded orders 788.9 633.1 719.8 755.1 and contracts for a total of €293.5 m 602.7 587.4 596
Slide 21: Growing workforce productivity in 1H24 up by 4.7%
Growing workforce productivity in 1H24 up by 4.7%. Increased personnel costs related to new hiring in Italy and Middle East Personnel Costs (€m) Workforce by Business Division (#) Workforce by geography -10.3% Revenues per FTE +4.7% €86 k €90 k -11.2% 3,254 15% 2,920 2,761 2,451 29% +3.6% 31% 1% -4.
Slide 22: 1H24 Trevi Group margin above 10%
1H24 Trevi Group margin above 10% despite delays in starting Trevi projects works Key Highlights Recurring EBITDA bridge (€m) ▪ Rec. EBITDA down 17.3% compared to Trevi Division €36.8 m Trevi Division €22.3 m 1H23 due to a mix of volume (-€2.1 m) Soilmec €0.1 m Soilmec €6.4 m and margin (-€3.6 m) ef
Slide 23: FX gains and DTAs effects contributed to net profit of €0.6 m
FX gains and DTAs effects positively contributed to net profit of €0.6 m Key Highlights Recurring EBITDA to Total Net Profit in 1H24 (€m) ▪ Non-recurring expenses €1.3 m related to extraordinary severance costs and consultancy costs ▪ Depreciations at €15.1 m includes €5.2 m for IFRS16 leases contra
Slide 24: Trevi Group net working capital evolution
Trevi Group net working capital evolution reflects the projects execution status Key Highlights 1H24 net working capital1 (€m) ▪ Change in inventories & WIP increase by €39.8 m mainly related to amount of -0.2% works performed in June 2024 and not yet invoiced and contracts retentions ▪ Trade receiv
Slide 25: 1H24 positive ordinary FCFO generation
1H24 positive ordinary FCFO generation after anticipating full Capex for entire FY24 Key Highlights Managerial net cash flow1 in 1H24 (€m) ▪ IFRS16 effect of €5.1 m related to long- term leases ▪ Positive change in Net Working Capital for €4.2 m ▪ Net Capex2 at €17.5 m (€17.0 m in 1H23) includes €8.
Slide 26: Net debt broadly stable compared to the end of 2023
Net debt broadly stable compared to the end of 2023, excluding IFRS9 effect Key Highlights Breakdown of net financial position Average cost of M/L 2% spread on as of 31-Dec-23 as of 30-Jun-24 term debt with banks Euribor 6M Cash & Liquidity1 €84.6 m €83.8 m Duration C. 2.5 years (n. years) Other cur
Slide 27: Trevi Division – Revenues and EBITDA in 1H24
Trevi Division – Revenues and EBITDA in 1H24 impacted by delays in starting projects works in some countries Key Highlights Revenues and Recurring EBITDA (€m) ▪ Trevi Division revenues decreased by EBITDA margin €28.7 m (-12.2% H/H) due to the -12.2% reduction of some activities in Nigeria and Hong
Slide 28: Soilmec Division – Successful turnaround
Soilmec Division – Successful turnaround with higher Revenues and Margin recovery Key Highlights Revenues and Recurring EBITDA (€m) ▪ Revenues were up by €9.8 m (+17.1% EBITDA margin H/H) driven by new projects in almost all +17.1% geographies ▪ 1H24 EBITDA margin increased to 57.3 0.1% 67.1 9.5% al
Slide 29: V. Business Plan Highlights
TREW|Group VV. Business Plan Highlight
Slide 30: Updated guidance to 2024 not changing group's long-term outlook
Updated guidance to 2024 not changing group's long-term outlook 2024E Guidance 2025E BP 2026E BP 2027E BP Revenues €639-665 m €679 m €697 m €716 m Rec. EBITDA €76-82 m €87 m €92 m €96 m Net Debt €210-225 m €184 m €165 m €129 m Key pillars of Business Plan Trevi Division: Soilmec Improved Division: S
Slide 31: 2023-2027 Business Plan confirms strategic guidelines and targets
2023-2027 Business Plan confirms strategic guidelines and targets ▪ Group revenues CAGR 2023-2027 equal to approximately +5% Revenues, ▪ Group backlog and commercial pipeline will support revenues growth thanks Backlog & Pipeline to higher level of both backlog and order intake achieved ▪ Group Recu
Slide 32: Trevi Division geographical distribution
Trevi Division geographical distribution Trevi Division Business Plan 2023-27 has been developed in accordance with the current outlook and end-of-year backlog & results The Division is actively involved in the NEOM Mega-Project in Saudi Arabia since late 2021. This project has significantly boosted
Slide 33: Trevi Division geographical distribution – Asia Pacific and Middle East
Trevi Division geographical distribution – Focus on Asia Pacific and Middle East Asia Pacific Middle East Main initiatives concentrated in The Philippines, with focus Large commitments expected over the Plan thanks to different on margins improvement projects in Saudi Arabia (The Line, Oxagon, Troje
Slide 34: Trevi Division geographical distribution – North America and Europe
Trevi Division geographical distribution – Focus on North America and Europe North America Europe – incl. Tajikistan Core Region thanks to a low level of project risk One of the most dynamic Regions over the Plan (stability, payments, etc.) Italy would benefit from projects related to PNRR Expected
Slide 35: Soilmec Division technological innovation and compact equipment drive market opportunities
Soilmec Division technological innovation and compact equipment will drive machinery market opportunities, while supply chain and inventory shortage will impact in short-term Main machinery market drivers Opportunities Challenges Supply chain and labour Technological Innovations Compact equipment sh
Slide 36: Soilmec equipment and spare parts/services c.95% of 2024E revenues
Soilmec Division equipment and spare parts/services are expected to account for c.95% of 2024E revenues Application description Soilmec revenues split by Application (% of 2024E revenues) Equipment: specialised machinery used in construction projects for installing deep foundations like piles and ca
Slide 37: Soilmec Division: actions to improve profitability
Soilmec Division: several actions to improve profitability, focusing on high marginality products, enhancing efficiency in operations, and adopting a make to order approach VISION → “Be the leading player in deep foundation machinery (safety, performance, quality)’’ Rationalise product Increase sale
Slide 38: VI. Sustainable Journey
TREWI|Group Vi. Sustainable J
Slide 39: Sustainable Development Goals aligned with ESG Strategy
Trevi Group ambitious Sustainable Development Goals aligned with ESG Strategy Pillars SDG ▪ Promoting the decarbonisation strategy against climate change GHG reduction ▪ Energy intensity slightly reduced by 0.01 GJ/h compared to 2022 ▪ Promoting the protection of health and safety of employees and t
Slide 40: Trevi Group continued its sustainable journey
Trevi Group has continued its sustainable journey, achieving external certifications and recognition as a sign of its ESG commitment External Recognition ESG Supply Chain Rating Certification for Social For the third times “The most Trevi S.p.A. obtained for the climate-friendly companies second tim
Slide 41: Appendix
Appendix
Slide 42: Trevi Group – Consolidated Income Statement
Trevi Group – Consolidated Income Statement Euro /000 Profit & Loss Trevi Group 6M 2024 6M 2023 Deviation TOTAL REVENUE 262,323 280,266 (17,944) Change in finished products and work in progress 10,996 5,688 5,308 Internal work capitalised 8,075 10,869 (2,794) PRODUCTION REVENUE 281,394 296,824 (15,4
Slide 43: Trevi Group – Consolidated Reclassified Balance Sheet
Trevi Group – Consolidated Reclassified Balance Sheet Euro /000 Balance Sheet Trevi Group 30/06/2024 31/12/2023 Deviation Property, plant and equipment 177,108 169,664 7,444 Intangible fixed assets and goodwill 17,121 17,256 (135) Financial assets - Investments 420 425 (6) A) Non-current assets 194,
Slide 44: Trevi Group – Consolidated Cash Flow Statement
Trevi Group – Consolidated Cash Flow Statement Euro /000 Free Cash Flow 1H 2024 1H 2023 Deviation EBITDA recurring (including IFRS 16 effect) 26.9 32.5 (5.6) IFRS 16 Effect (5.1) (4.9) (0.2) Taxes (payed) (2.7) (1.5) (1.2) Delta Net Working Capital 4.2 (3.8) 8.1 Trade receivables third-parties 9.3 3
Slide 45: Disclaimer
Disclaimer This document has been prepared by and is the sole responsibility of Trevi Finanziaria Industriale S.p.A. (the “Company”) for the sole purpose described herein. The information contained herein does not contain or constitute an offer of securities for sale, or solicitation of an offer to
Trevi Finanziaria Industriale — Mid & Small Cap Conference 2024 on 6ix