Slide 1: 9M 2019 Results Presentation
Stringing Energy Automation Integrated Solutions Provider Railway Trencher 9M 2019 Results Presentation www.tesmec.com 31st October 2019
Slide 2: Index
Index > Corporate Strategy > 9M 2019 Results > Outlook 31st October 2019 2
Slide 3: Integrated Solutions Provider for Energy and Data transport
Integrated Solutions Provider for Energy and Data transport VISION MISSION > To be a > To operate in the technological market of partner in a infrastructure for the changing world transport of energy, data and material (oil and derivatives, gas, ENERGY AND water). DATA TRANSPORT VALUE STRATEGY PROPO
Slide 4: Business Units
4 Business Units STRINGING ENERGY ENERGY AUTOMATION > Overhead power lines > Telecommunications solutions for construction & maintenance HV Grids > Advanced methodologies for > Grid Management: protection and powerlines improvement PLATFORMS metering solutions > Zero emissions underground FOR > Adva
Slide 5: Combine operational data in the cloud and apply advanced analytics
To be for Railways, Energy & Trenchers COMBINE OPERATIONAL DATA IN THE CLOUD AND APPLY ADVANCED ANALYTICS Artificial Intelligence Cloud 31st October 2019 5
Slide 6: Towards a carbon neutral factory
Towards a carbon neutral factory ✓ Grassobbio, Patrica and Monopoli plants are fed by solar panels ✓ All Italian plants are certified according to ISO 9001-14001-45001 ✓ By 31/12/2019 the main products of Tesmec Automation will be ISO 14067:2018 (Carbon footprint of products) certified ✓ The whole p
Slide 7: Focus on sustainable technology: Tesmec Green products
Tesmec Green products STRINGING ENERGY AUTOMATION > FULL ELECTRIC MACHINE > Custom solutions for Smart Grid management Zero emissions underground cable laying > Energy consumption optimization through carbon footprint equipment Focus on sustainable RAILWAY technology TRENCHER SUPER GRID AND SMART GR
Slide 8: Factories
Factories TRS RAIL STR AUT Tesmec SPA Grassobbio Tesmec SPA Endine Tesmec SPA Sirone (precision machining work) Marais Durtal (FR) Tesmec USA Alvarado (USA) Tesmec Rail Monopoli Tesmec Automation Patrica Tesmec Automation Padova-Fidenza 31st October 2019 8
Slide 9: Index
Index > Corporate Strategy > 9M 2019 Results > Outlook 31st October 2019 9
Slide 10: 9M 2019 Stringing business highlights
9M 2019 Stringing business highlights NEW METHODOLOGY FOR RECONDUCTORING NEW DEAL FOR NORTH AMERICA MARKET • Age of grid in development Countries is higher than • Nesco Agreement conductor lifespan • ICUEE Expo (1-3 October): launch of the brand-new • Grant the quality of the network service, reduci
Slide 11: 9M 2019 Energy Automation business highlights
9M 2019 Energy Automation business highlights KEY OPPORTUNITIES IN GROWING MARKET SEGMENTS KEY OPPORTUNITIES IN INTERNATIONAL MARKETS ENEL MARKET: HV MARKETS: - Cybersecurity Integration in compliance with market - Invasive activities in North Africa requirements - Awarded High Voltage telecommunica
Slide 12: 9M 2019 Trencher business highlights
9M 2019 Trencher business highlights KEY OPPORTUNITIES IN 5G and RENEWABLES BUSINESS KEY OPPORTUNITIES IN SURFACE MINING BUSINESS • Digital & connected solutions: SAFETY first and easier PROJECT • Focus on: PRODUCTIVITY, EXCAVATED MATERIAL SIZE, MANAGEMENT OPERATIVE COSTS • STRATEGIC RELATIONSHIP wi
Slide 13: 9M 2019 Railway business highlights
9M 2019 Railway business highlights INNOVATIVE FAST & SAFE METHODOLOGY SOLUTIONS TO ASSURE RAILWAY INFRASTRUCTURES for CATENARY MAINTENANCE OPERATIONS RELIABILITY & SAFETY • Certified solution (with remote control systems) for • Specialized vehicles equipped with DIAGNOSTIC DEVICES replacement of th
Slide 14: 9M 2019 Closing
9M 2019 Closing GROUP (€ mln) 9M 2019 9M 2018 Delta % (1) + 0,9% at constant currencies REVENUES 144,2 140,5 2,6% (1) (2) The EBITDA has been growing due to management actions rolled out after the results EBITDA (2) (3) 17,4 12,2 42,2% of end 2018, not yet lined up with expectations, % on Revenues 1
Slide 15: 9M 2019 Closing by segment
9M 2019 Closing ENERGY 9M 2019 9M 2018 Delta % Revenues 31,5 30,2 4,2% > Energy Automation Growth EBITDA* 3,8 2,3 66,4% > Driven by European Market % on Revenues 12,0% 7,5% * EBITDA ante IFRS 16 would have been 2,6 M€ TRENCHERS 9M 2019 9M 2018 Delta % > USA Market Growth Revenues 89,4 94,2 -1,3% > E
Slide 16: 9M 2019 Revenues: sales spread over different geographical area
9M 2019 Revenues: sales spread over different geographical area INTERNATIONAL SCALE AND EXPOSURE TO GROWING ECONOMIES JOINT WITH A GROWING IMPORTANCE OF THE ITALIAN MARKET 9M 2019 9M 2018 20% 19% 25% 24% 9% 12% 16% 20% 19% 21% 7% 8% ITALY: impact of railway business & automation Italy Europe Middle
Slide 17: 9M 2019 Differences in Exchange
9M 2019 Differences in Exchange Euro mln DIFFERENCES IN EXCHANGE 2,5 1,3 1,5 0,5 -0,5 -1,5 (0,3) (0,4) -2,5 -3,5 -4,5 -5,5 (4,6) 9M 2016 9M 2017 9M 2018 9M 2019 GROUP (Euro mln) 9M 2016 9M 2017 9M 2018 9M 2019 Differences in Exchange (0,3) (4,6) (0,4) 1,3 of which: Realised 0,0 0,1 0,1 0,2 Unrealise
Slide 18: 9M 2019 EBITDA
9M 2019 EBITDA € mln 20,0 1,6 17,4 17,5 2,1 15,0 1,5 12,5 12,2 10,0 7,5 5,0 2,5 0,0 9M 2018 Energy Trencher Railway 9M 2019 * The impact of IFRS 16 is around 2,7 M€ 9M 2018 The EBITDA is positively impacted by the results of the all segments 9M 2019 31st October 2019 18
Slide 19: 9M 2019 Financial Results
9M 2019 Financial Results Financial Information (€ mln) 9M 2019 2018 Net Working Capital 70,1 48,9 Non Current assets 69,5 67,3 Right of use - IFRS 16 17,5 0,0 Other Long Term assets/liabilities 3,5 4,8 Net Invested Capital 160,6 121,0 Net Financial Indebtness 97,8 77,7 Lease liability - IFRS 16 17,
Slide 20: Net Financial Position Evolution 9M 2019
Net Financial Position Evolution OPERATING NET FINANCIAL POSITION € mln 140 120 17,8 115,6 3,7 97,8 100 12,1 77,7 21,2 80 (16,9) 60 40 20 0 NFP OFCF NWC Capex Int.exp. NFP Right of NFP FY 2018 Net 9M 2019 Use* 9M 2019 * Impacted of IFRS 16 The positive operating free cash flow has been impacted by t
Slide 21: Net Financial Position Evolution
Net Financial Position Evolution OPERATING NET FINANCIAL POSITION € mln 140 120 112,5 112,5 115,6* 96,7 96,9 93,5 98,7 92,9 100 91,5 92,1 85,2 77,7 94,1 97,8 80 92,6 60 40 20 0 2016 1Q 1H 9M 2017 1Q 1H 9M 2018 1Q 1H 9M 2017 2017 2017 2018 2018 2018 2019 2019 2019 * From 1st January 2019, the new IFR
Slide 22: Index
Index > Corporate Strategy > 9M 2019 Results > Outlook 31st October 2019 22
Slide 23: Outlook Stringing business focus
Outlook Stringing business focus GREEN PRODUCT LINE NEW MARKET POSITIONING IN CHINA ✓ Zero emissions product line dedicated for urban area ✓ Tesmec New Technology antenna for green & digital technologies in cooperation with local manufacturer ✓ Approach with marketing actions on specific areas: ✓ Hu
Slide 24: Outlook Energy Automation business focus
Outlook Energy Automation business focus TOWARDS CYBERSECURITY REQUIREMENTS FOCUS ON ENGINEERING SOLUTIONS Focus on reliable solutions for secure communication and Development of an engineering solutions starting from M2M and M2H interface in order to provide stability of Tesmec ready-to-go telecomm
Slide 25: Outlook Trencher business focus
Outlook Trencher business focus TOWARDS 5G – NEXT GENERATION OF BROADBAND FOCUS ON DIGITAL AND SUSTAINABLE WORKING CONNECTION PROCESSES The costs and speed of building new 5G networks depend to a The acceptance and use of Surface Miners in mining large extent on how quickly broadband providers can d
Slide 26: Outlook Railway business focus
Outlook Railway business focus CERTIFIED & ENVIRONMENTALLY FRIENDLY INFRASTRUCTURES RELIABILITY & SAFETY METHODOLOGY • INTERNATIONALIZATION OF HIGH-QUALITY CENTRALIZED PLATFORM Unmanned diagnostic SOLUTIONS (software + devices) ▪ Automated operations Verification and validation process through ▪ Fle
Slide 27: 2019 outlook
2019 outlook MACRO MARKET + - TRENDS Digital Transformation & Industry 4.0 xxx Economy is slowing Telecom – 5G China – USA → commercial Energy transition Middle East, Iran → embargo Mines – new methodology ENERGY > New products: impact on revenues > New USA agreement: Transmission and Distribution >
Slide 28: Backlog
BACKLOG Euro/mln BACKLOG 30/06/2019 Sales Q3 2019 In take Q3 30/09/2019 28,4 30,4 Energy 9,5 11,5 72,8 70,9 Trencher 30,2 28,3 95,7 96,7 7,0 8,0 Railway Total 196,9 46,7 47,8 198,0 31st October 2019 28
Slide 29: Summary 9M 2019 Profit & Loss statement - Appendix A
Summary 9M 2019 Profit & Loss statement - Appendix A Delta vs Profit & Loss Account (Euro mln) 9M 2019 9M 2018 Delta % 2018 Net Revenues 144,2 140,5 3,7 2,6% Raw materials costs (-) (63,2) (64,5) 1,3 -2,0% Cost for services (-) (26,2) (23,9) (2,3) 9,8% Personnel Costs (-) (38,7) (36,4) (2,3) 6,4% Ot
Slide 30: Summary 9M 2019 Balance Sheet - Appendix B
Summary 9M 2019 Balance Sheet - Appendix B Balance Sheet (€ mln) 9M 2019 2018 Inventory 72,3 62,6 Work in progress contracts 20,8 11,0 Accounts receivable 63,6 52,6 Accounts payable (-) (58,2) (54,4) Op. working capital 98,5 71,8 Other current assets (liabilities) (28,4) (22,9) Net working capital 7
Slide 31: Disclaimer
Disclaimer The Manager responsible for preparing the company’s financial reports, Gianluca Casiraghi, 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
Slide 32: www.tesmec.com
www.tesmec.com 31st October 2019