Slide 1: Tesmec Group 2011 Results
Tesmec Group 2011 Results Analyst Presentation, 14 March 2012 Corporate
Slide 2: Agenda
Agenda 2011 and first Months 2012 – Key facts A.Caccia Dominioni, CEO Group structure overview A.Caccia Dominioni, CEO 2011 - Stringing results & business highlights P.Mosconi, GM 2011 – Trencher results & business highlitghts A.Caccia Dominioni, CEO 2011 - Financial results A.Bramani, CFO
Slide 3: 2011 and first months 2012 Key Facts
2011 and first months 2012 Key Facts •Setting up JV, Tesmec Peninsula, with local partner in Qatar(TME); Mar •New pool loan agreement , BNL principle lender, for to refinance the debt and for to raise capital for new investments; 2011 •Signed Technological Agreement with Russian company FSK EES for:
Slide 4: Group Structure at December 31, 2011
Group Structure at December 31,2011 NEW COMPANY CREATED/PURCHASED IN 2011 Tesmec S.p.A. Existing Company at 1.1.2011 Tesmec Tesmec Tesmec Tesmec USA Inc Rus S.A. Balkani (75%)* (100%) (100%) EAD (100%) Effect on Fully EBITDA Tesmec Service S.p.A. Consolidated and Pre-Tax (100%) Profit I-Light S.r.l.
Slide 5: Main business highlights: Stringing
Main business highlights: Stringing Sales 2011 (65,3 Euro mln): 0,3% increase vs. SPPY after 46% growth achieved in 2010; Margins: strong increase mainly thanks to country and product mix; Power grid management: Tesmec improved its leadership in the Power Grid field entering in the power gri
Slide 6: Stringing Division Results
Stringing Division Results Revenues (€ mln) EBITDA (€ mln and % of Net Revenues) 2008 - 2011 2008 - 2011 16 23 % 14 16% 70 12 20% 21% 60 10 50 8 14,9 40 6 30 65,1 65,3 9,4 9,2 10,5 20 47,5 44,5 4 10 2 0 0 2008 2009 2010 2011 2008 2009 2010 2011 6/17
Slide 7: Main business highlights: Trenching
Main business highlights: Trenching Sales 2011 (46,5 Euro mln): + 16% vs SPPY mainly driven by steady growth of North America market; Increase in sales volume (+16%) achieved by: new sales approach direct contract with main customers; development of U.S. Shale Gas projects (Pennsylvania an
Slide 8: Trencher Division Results and business highlights
Trencher Division Results and business highlights Revenues (€ mln) EBITDA (€ mln and % of Net Revenues) 2008 - 2011 2008 - 2011 6 9% 16% 60 5 49% 9% 50 4 40 4,7 6,6 2,3 30 62,7 3 5,6 20 41,6 35,5 46,5 2 6,5% 4,2 10 1 2,3 0 0 2008 2009 2010 2011 2008 2009 2010 2011 Sales of Service machines Activitie
Slide 9: 2011 Results
2011 Results Tesmec (Cons.) Income Statement 2011 vs Financial Information (€m) (€ mln) 2010 2011 2010 2010 2011 delta % Revenues 105,3 111,8 6% Net working capital 40,2 48,4 Non current assets 26,1 48,2 EBITDA 15,1 19,0 26% Other LT assets/(liab) 1,1 1,9 % Revenues 14% 17% Net invested capital 67,4
Slide 10: Revenues: international scale and exposure to growing economies
Revenues: international scale and exposure to growing economies 2010 2011 Stringing equipment 58% on Total Revenue 2011 4%4% 15% 4% 20% 5% 5% 34% 4% 50% 3% 52% Italy Europe Middle East BRICs and Oceania Africa North-Central America Trenchers 42% on Total Revenue 2011 11% 10% 10% 6% 26% 17% 14% 8% 2%
Slide 11: Net Profit path
NET PROFIT path Net Profit increase mainly due to: - increase in EBITDA margin which moved from 14% to 17% (including IAS 17 effect); - in 2011 were not incurred costs of IPO. NET PROFIT 2011 10 2,1 0,3 0,2 8 0,1 6 (1,3) 4 6,6 5,2 2 0 Net Profit 2010 Net effect Ebitda Fin. Depr. & Amort. Taxes Net P
Slide 12: Working Capital Evolution
Working Capital Evolution Tesmec Group 180 Description 1Q 1H 9M 160 2010 2011 141 2011 2011 2011 140 144 136 Trade 120 32,5 36,5 34,0 31,5 43,9 111 Receivables 100 Inventory 42,2 43,7 43,0 43,2 42,1 90 80 85 Trade payables (26,3) (25,2) (26,8) (22,7) (26,5) 60 Other current 43 (8,2) (6,6) (7,2) (4,5
Slide 13: Exchange exposure 2011
Exchange exposure 2011 Revenues Operating Costs 11% 35% Euro Euro 65% USD USD 89% Trade Receivables Trade Payables 6% Euro Euro 43% 57% USD USD 94% 13/17
Slide 14: Order Book
Order Book ORDER BOOK YEAR END 2009 –2010 –2011 € mln 53,0 60 44,1 45 23,0 33,2 19,1 30 19,7 15 30,0 25,0 13,5 0 2009 2010 2011 Stringing Equipment Trenchers STRINGING EQUIPMENT TRENCHERS € mln € mln 75 60 60 45 45 30 30 65,3 60,3 46,5 42,6 15 15 30,0 25,0 23,0 19,1 0 0 Order book 2011 Order Order b
Slide 15: Outlook 2012
Outlook 2012 Despite the current financial macroeconomic environment Tesmec Group maintain a positive view on 2012: • margins and volumes growing due to the new activities started on 2011 and thanks to the operating leverage effect; • the 2012 NFP will achieve a normal value with a normal level of t
Slide 16: Appendix A - Summary Profit & Loss statement with IAS 17 effects
Appendix A - Summary Profit & Loss statement with the effects of new rent contract accounted under IAS 17 A B A+B Profit & Loss Account (€ mln) Delta vs 2011 adj IAS 17 2011 2010 Delta % 2010 Net Revenues 111,8 111,8 105,3 6,5 6,2% Raw materials costs (-) (55,7) (55,7) (48,7) (7,0) 14% Cost for serv
Slide 17: Appendix B - Summary Balance Sheet with IAS 17 effects
Appendix B - Summary Balance Sheet with the effects of new rent contract accounted under IAS 17 A B A+B Balance Sheet (€ mln) 2011 adj IAS 17 2011 2010 Inventory 42,1 42,1 42,2 Accounts receivable 43,9 43,9 32,5 Accounts payable (-) (26,5) (26,5) (26,3) Op. working capital 59,5 0,0 59,5 48,4 Other c
Slide 18: 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