Slide 1: Virtual STAR Conference - Tesmec presentation
Stringing Energy Automation Virtual STAR Conference Railway Trencher TESMEC presentation www.tesmec.com 6 October 2020
Slide 2: Index
Index > Tesmec Group at a glance > 2020-2023 Business Plan guidelines & Rights issue > ANNEX A - 2020.1H results > ANNEX B - Business strategy deep dive 6 October 2020 2
Slide 3: Tesmec Group at a glance
Tesmec Group at a glance VISION MISSION VALUE PROPOSITION STRATEGY To be a technological To operate in the market To supply added-value Innovation partner in a changing of infrastructure for the integrated solutions world Internationalization transport of energy, data for our customers and material
Slide 4: Stringing Solutions: fields of application
Stringing Solutions: fields of application OVERHEAD POWER LINES POWER LINES CONSTRUCTION MAINTENANCE INTEGRATED SOLUTIONS PROVIDER UNDERGROUND NETWORKS NEW FULL ELECTRIC CONSTRUCTION SOLUTIONS 6 October 2020 4
Slide 5: Energy Automation Solutions: fields of application
Energy Automation Solutions: fields of application PROTECTION & SERVICE MONITORING TELECOMMUNICATIONS INTEGRATED SOLUTIONS PROVIDER NON-CONVENTIONAL REMOTE CONTROL SENSORS 6 October 2020 5
Slide 6: Trenching Solutions: fields of application
Trenching Solutions: fields of application FIBER & ENERGY CABLE SURFACE MINING & AUTOMATIC LAYING QUARRIES INTEGRATED SOLUTIONS PROVIDER CIVIL INFRASTRUCTURES & OIL, GAS & WATER UTILITIES PIPELINES 6 October 2020 6
Slide 7: Rail Solutions: fields of application
Rail Solutions: fields of application MAINTENANCE OF CATENARY INSTALLATION RAILWAY LINES INTEGRATED SOLUTIONS PROVIDER DIAGNOSTIC OF RAILWAY SMART PLATFORMS FOR INFRASTRUCTURES BIG DATA MANAGEMENT 6 October 2020 7
Slide 8: Strategy of growth
Strategy of growth ▪ Focus on existing business ▪ From equipment manufacturer to solution provider able to provide added value services Corporate for the customers strategy ▪ Focus on maintenance and management of infrastructures in addition to their construction to increase recurring revenues strea
Slide 9: Index
Index > Tesmec Group at a glance > 2020-2023 Business Plan guidelines & Rights issue > ANNEX A - 2020.1H results > ANNEX B - Business strategy deep dive 6 October 2020 9
Slide 10: Tesmec: a history of growth in technologies
Tesmec: a history of growth in technologies 2010 2010-2019 2020-2023 IPO Investment & Diversification Next development - Historical businesses: - Strategic M&A in the Rail, Energy - Increase recurring Stringing and Trencher Automation and Rental business revenues - Integration of know how & - Focus
Slide 11: Market scenario
Market scenario GREEN AND DIGITAL TECHNOLOGY TRENDS DRIVE MARKET OPPORTUNITIES MARKET Energy & Construction Telecom & Fiber Surface mining Rail Pipeline Renewables and utilities* • Increase in • Environmental • Growing attention • Push on • Demographic • Oil and natural internet users issues and gre
Slide 12: 2020-2023 Business Plan guidelines
2020-2023 Business Plan guidelines 2019pf 2020pf post COVID 2023 >> Significant performance of the Energy Automation TURNOVER 199.6 M€ ~ 170 M€ segment; Stringing segment back to historical 275 ~ 290 M€ performances cagr19-23: 8.5%~10.0% >> Focus on recurring revenues (rental & services) >> Growth i
Slide 13: Evolution of revenue mix
Evolution of revenue mix 2019pf 2023 CAGR19-23: 8.5%~10.0% Revenues Revenues Trencher - Sales Energy&Rail Trencher - Sales Energy&Rail Trencher - Recurring Trencher - Recurring BACKLOG as at 31 August 2020: 220 M€ + 50 M€ (provisional award of RFI tender in railways business) 6 October 2020 13
Slide 14: Rights issue
Rights issue The Board of Directors resolved that the amount of the share capital increase will be equal to a maximum of 35 M€ MAIN TARGETS >> strengthen the financial structure >> financing special business initiatives with significant growth in volumes & margins STRINGING Strengthening of the Grou
Slide 15: Special business initiatives
Special business initiatives E N E ENERGY STRINGING R AUTOMATION G Y TRENCHER RAIL 6 October 2020 15
Slide 16: Index
Index > Tesmec Group at a glance > 2020-2023 Business Plan guidelines & Rights issue > ANNEX A - 2020.1H results > ANNEX B - Business strategy deep dive 6 October 2020 16
Slide 17: 2020.1H Closing
2020.1H Closing 2020.1H* (1) Affected by the actions taken by public GROUP (€ mln) 2020.1H 2019.1H proforma authorities to contain the spread of the pandemic COVID-19. After the slowdown and REVENUES (1) 73,0 70,8 97,5 lockdown phases, March and April, the Group restarted its activities in May, reac
Slide 18: 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 19: 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 20: Backlog 1H2020
BACKLOG 1H2020 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
Slide 21: 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 22: 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 23: 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 24: 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 25: 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 26: 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 27: 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 28: Index
Index > Tesmec Group at a glance > 2020-2023 Business Plan guidelines & Rights issue > ANNEX A - 2020.1H results > ANNEX B - Business strategy deep dive 6 October 2020 28
Slide 29: 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 6 October 2020 29
Slide 30: Corporate strategy
Corporate strategy Consolidate the position as solution provider in order to gain market shares and to increase Vision the profitability and the cash flows generated by the business 1 2 3 4 Focus on existing Solution provider and Increase recurring Efficient and effective business system integrator
Slide 31: Stringing business strategy
Stringing business strategy 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 Enter
Slide 32: Energy Automation business strategy
Energy Automation business strategy 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 comple
Slide 33: Trencher business strategy
Trencher business strategy 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 with Clean&Fast so
Slide 34: Rail business strategy
Rail business strategy 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 competence in the
Slide 35: Notes
Notes The pro-forma results were prepared for illustrative purposes only, and were obtained by making appropriate pro-forma adjustments to the historical data to retroactively highlight the effects of the 4Service Group's transaction, as if this transaction had occurred on 1st January 2020, instead
Slide 36: www.tesmec.com
TESMEC www.tesmec.com