Tesmec S.p.a. · MIL:TES
Tesmec — H1 2020 Earnings Presentation
35 slides from Tesmec's earnings presentation, Aug 5, 2020
Slide 1: 2020.1H Results Presentation
Stringing Energy Automation Integrated Solutions Provider Railway Trencher 2020.1H Results Presentation www.tesmec.com 5 August 2020
Slide 2: Index
Index > Strategic overview > 2020.1H Business highlights and Results > Outlook 2020-2021 5 August 2020 2
Slide 3: Strategic overview
Strategic overview TESMEC Group strategic market segments ▪ ENERGY ▪ TELECOM ▪ INFRASTRUCTURES Post COVID-19 approach Further focus on development guidelines: ▪ CONNECTIVITY IS A MUST (5G opportunities, digitalization) xxx ▪ SAFETY-FIRST (Diagnostic, Artificial Intelligence, Cybersec) ▪ ENVIRONMENTA
Slide 4: Impact of Covid-19
Impact of Covid-19 Different impacts on the several businesses and key countries of the Group 1st PHASE Stop of the production activities in Europe xxx No impacts in the Tesmec markets/sector but delays due to the production and logistic Health emergency lock down 2nd PHASE Essential services grante
Slide 5: ITALY: State of emergency
COVID-19 outbreak as a global emergency - Extraordinary measures to fight the pandemic - Slowdown activities from end of February and block of the deliveries ITALY: Slowdown, block - Grassobbio, Endine, Sirone, Fidenza and Padova: stop from State of 23 March to 4 May & lockdown of production emergen
Slide 6: Tesmec Trencher business
Tesmec Trencher business EQUIPMENT SUPPLIER FULL-SERVICE PROVIDER INTEGRATED VALUE CHAIN Design & production of trenchers able Digital and connected systems Fiber installation & automatic laying of to work under extreme conditions >> Complete package of business >> energy cables models (sales, renta
Slide 7: Tesmec Stringing business
Tesmec Stringing business COMPLETE TRADITIONAL OFFER NEW DIGITAL CONCEPT GREEN APPROACH & NEW METHODOLOGIES A complete package for the stringing A new range of digital operations >> machines for a safe & faster >> New machines range full electric jobsite New methodologies for reconductoring >> DIGIT
Slide 8: Tesmec Energy Automation
Tesmec Energy Automation COMPLEMENTARY SOLUTIONS EQUIPMENT SUPPLIER SYSTEM INTEGRATOR Design & production of HV solutions Complete portfolio of HV and MV From the development of new products to to strengthen the core competence >> solutions with solid technical >> the management of complex innovativ
Slide 9: Tesmec Rail business
Tesmec Rail business EQUIPMENT SUPPLIER TECHNOLOGICAL PROVIDER SYSTEM INTEGRATOR with TECHNOLOGICAL PARTNERSHIPS Design & production of railway Certified & connected rail vehicles & solutions keeping the core >> services for electrification & >> Solutions for unmanned diagnostic and competence in th
Slide 10: Index
Index > Strategic overview > 2020.1H Business highlights and Results > Outlook 2020-2021 5 August 2020 10
Slide 11: 2020.1H Trencher business highlights
2020.1H Trencher business highlights Complete Business model Surface Mining Business Full package of solutions New markets development Sales, Wide Rental Fleet, Jobsite Management West Africa (Ivory Coast and Guinea) Technologies for top performances 5G & Fiber Optics EVO generation available on all
Slide 12: 2020.1H Stringing business highlights
2020.1H Stringing business highlights Worldwide webinar to introduce the Increase of order acquisition 1H 2020 vs green & digital technologies 1H2019 New sales approach: • Digital communication tools • New sales team in US + commercial agreement Important projects: • EU • US New approach to face the
Slide 13: 2020.1H Energy Automation business highlights
2020.1H Energy Automation business highlights Enel Market: new opportunities Russia: focus on product awareness Supply on awarded tenders for protection and Continuous supplies to local players in control solutions to guarantee the maximum different regions of the country security and reliability of
Slide 14: 2020.1H Railway business highlights
2020.1H Railway business highlights Internationalization Domestic market New orders and short listed in strategic projects for Selected in the proposal for the award of the 3rd lot of catenary maintenance and diagnostics RFI tender for the supply of solutions for the diagnostic (Central-East EU). of
Slide 15: 2020.1H Closing
2020.1H Closing 2020.1H* Delta vs. (1) Affected by the actions taken by public GROUP (€ mln) 2020.1H 2019.1H Proforma% authorities to contain the spread of the proforma pandemic COVID-19. After the slowdown and REVENUES (1) 73,0 70,8 97,5 -25,1% lockdown phases, March and April, the Group EBITDA (2)
Slide 16: 2020.1H Closing by segment
2020.1H Closing ENERGY 2020.1H 2019.1H Delta % > The decrease related to the Stringing business is due to the production and logistic blocks Revenues 16,8 21,9 -23,6% > The slowdown in production activities and the EBITDA 1,7 2,8 -38,5% switch of the invoicing process in July impacted % on Revenues
Slide 17: 2020.1H quarterly results
2020.1H Euro/mln 1Q 2Q 1H_proforma 2020 2019 Var. 2020 2019 Var. 2020 2019 Var. REVENUES 34,0 49,8 -31,8% 39,0 47,7 -18,2% 73,0 97,5 -25,1% EBITDA 4,1 5,7 5,7 6,4 9,8 12,1 -28,1% -10,1% -18,8% 12,5% 11,5% 14,6% 13,6% 13,4% 12,4% EBIT (1,3) 1,6 (0,1) 1,7 (1,4) 3,3 After the slowdown and lockdown phas
Slide 18: Backlog
BACKLOG Euro/mln BACKLOG 31/03/2020 Sales 2020.Q2 In take 2020.Q2 30/06/2020 (1) 38,0 49,0 20,4 Energy 9,4 60,9 68,0 Trencher 31,1 24,0 82,8 77,2 Railway 5,6 Total 181,7 39,0 51,5 194,2 (1) including the provisional award of the RFI tender for the production of diagnostic vehicles for around Euro 50
Slide 19: 2020.1H Revenues: sales spread over different geographical area
2020.1H Revenues: sales spread over different geographical area INTERNATIONAL SCALE AND EXPOSURE TO GROWING ECONOMIES JOINT WITH A GROWING IMPORTANCE OF THE ITALIAN MARKET 2020.1H 2019.1H 20% 23% 28% 19% 9% 6% 25% 19% 16% 6% 21% 8% ITALY: railway business & automation impact Italy Europe Middle East
Slide 20: 2020.1H EBITDA
2020.1H EBITDA € mln 15,0 12,5 (0,5) 12,5 (1,9) 10,0 (0,9) 8,2 7,5 5,0 2,5 0,0 2019.1H Energy Trencher Railway 2020.1H Impacted of the spread by Covid-19 which caused the turnover 2019.1H reduction and the consequent missing margins to cover fixed costs. 2020.1H Cost reduction activities has been in
Slide 21: 2020.1H Financial Results
2020.1H Financial Results Financial Information (€ mln) 2020.1H 2019 Net Working Capital 83,3 73,0 Non Current assets 79,1 66,8 Right of use - IFRS 16/IAS 17 24,9 20,1 Other Long Term assets/liabilities 6,4 4,2 Net Invested Capital 193,7 164,2 Net Financial Indebtness 119,2 98,5 Lease liability - IF
Slide 22: Working Capital evolution
Working Capital evolution 90 7,6 1,5 (8,0) 2,6 6,6 80 70 60 50 40 83,3 73,0 30 20 10 0 2019 Inventories WIP Trade Trade Other current 2020.1H Net Working Receivables Payables ass. / liab. Net Working capital capital Days Days € Mln 2020.1H 2019.FY 2020.1H 2019.FY Trade Receivables 59,8 67,9 120 122
Slide 23: Net Financial Position Evolution
Net Financial Position Evolution NET FINANCIAL POSITION € mln 143,0 8,1 2,2 140 9,5 118,0 (5,2) 10,3 120 100 80 60 40 20 0 NFP OFCF NWC Capex Change of Int.exp. NFP 2019 Cons. Area Net 2020.1H Less cash generation due to the Covid-19 and increase of the NWC to 2019 support the growth in the second h
Slide 24: Net Financial Position Evolution
Net Financial Position Evolution NET FINANCIAL POSITION € mln 143,0* 140 118,0 123,8 120 112,5 112,5 115,6 10,2 100 119,2 99,8 105,0 98,7 92,6 94,1 97,8 80 92,1 92,9 60 77,7 40 20 0 1Q 2018 1H 2018 9M 2018 2018 1Q 2019 1H 2019 9M 2019 2019 1Q 2020 1H 2020 * From 1st January 2019, the new IFRS 16 has
Slide 25: Index
Index > Strategic overview > 2020.1H Business highlights and Results > Outlook 2020-2021 5 August 2020 25
Slide 26: Outlook 2020-2021
Outlook 2020-2021 TESMEC is focused in strategic market segments: FOCUS ON STRATEGIC ▪ SMART GRIDS & ENERGY TRANSITION xxx MARKETS ▪ 5G AND TELECOM ▪ INFRASTRUCTURES & RAILWAYS ▪ ENERGY: increasing needs of “smart and digital” systems, focus on energy transition and carbon free solutions DEVELOPMENT
Slide 27: Tesmec KPI
Tesmec KPI Better 2H than 1H 2020 Turnover 3Q and 4Q will recover in line with the 2H 2019 Margins improvements thanks to: EBITDA - Better mix - Rental activity - Cost saving actions Cash generation thanks to: - Actions on working capital NFP - CAPEX reduction - Margins Improvement of NFP / EBITDA r
Slide 28: Strengthening the Tesmec Group
Strengthening the Tesmec Group 1H 2020 3Q 2020 4Q 2020 1) Guidelines of the Business Plan will be released 1) Shareholder loan 1) Follow up on the 2) Acquisition of the 2) Flexibility and full procedures for the Rental Business operations phase Share capital increase 1) Completion - Loans ✓ In the i
Slide 29: 2020 Trencher business outlook
2020 Trencher business outlook New Infrastructures Projects 5G & Fiber Optics market development Middle East, Egypt Cleanfast in USA Demos and development Renewable Projects Digital & Connected systems Wind Farm (Australia) New features, trencher remote control Automatic cables laying system Availab
Slide 30: 2020 Stringing outlook
2020 Stringing outlook Europe Projects APAC Projects Growth in North America markets Interconnection & projects to support EU Energy Transition and energy network Constant growth Green Deal reorganization no COVID-19 impact for now Green development: full electric range Digital Refurbishment Methodo
Slide 31: 2020 Energy Automation outlook
2020 Energy Automation outlook Enel Market: innovative technologies available Russia: improving our position in the market Diversification through availability Reinforce the perception of Tesmec as of new solutions a new well-known competitive Player Italy: Growth in the Transmission market Foreign
Slide 32: 2020 Railway outlook
2020 Railway outlook Platform with Artificial Intelligence Green approach: Sustainability to manage big data Fully electric & hybrid vehicles free of any emissions to Enabler for the optimization of the railway's be operated in tunnels and urban area. infrastructure: automated elaboration data proce
Slide 33: Summary 2020.1H Profit & Loss statement - Appendix A
Summary 2020.1H Profit & Loss statement - Appendix A Delta vs Profit & Loss Account (Euro mln) 2020.1H 2019.1H Delta % 2019.1H Net Revenues 70,8 97,5 (26,7) -27,4% Raw materials costs (-) (28,0) (43,2) 15,2 -35,2% Cost for services (-) (13,4) (17,9) 4,6 -25,5% Personnel Costs (-) (23,3) (25,6) 2,3 -
Slide 34: Summary 2020.1H Balance Sheet - Appendix B
Summary 2020.1H Balance Sheet - Appendix B Balance Sheet (€ mln) 2020.1H 2019 Inventory 77,5 69,9 Work in progress contracts 17,9 16,3 Accounts receivable 59,8 67,9 Accounts payable (-) (50,9) (57,5) Op. working capital 104,3 96,7 Other current assets (liabilities) (21,0) (23,6) Net working capital
Slide 35: Disclaimer
Disclaimer The Manager responsible for preparing the company’s financial reports, Marco Paredi, 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 accou