Trevi Finanziaria Industriale S.p.a. · MIL:TFIN
Trevi Finanziaria Industriale — H1 2023 Earnings Presentation
29 slides from Trevi Finanziaria Industriale's earnings presentation, Sep 29, 2023
Slide 1: Conference call on 1H 2023 Results
| Conference call on 1H 2023 Results September 29th 2023
Slide 2: A team of experienced leaders
A team of experienced leaders Professional management team, with recognised experience in the sector, together with new corporate governance and projects management practices will lead to a radical improvement of group core business and overall performance Giuseppe Caselli Massimo Sala 0 Group CEO G
Slide 3: Agenda
Agenda I. Leading Underground Engineering II. 1H23 Group Results III. Guidance 2023 IV. Final Remarks Appendix
Slide 4: I. Leading underground engineering
I. Leading underground engineering
Slide 5: 1H23 Overview
Trevi Group 1H23 Overview Strong performance in 1H23 with sustainable competitive advantages ▪ Group revenues up 18.7% 1H/1H at €280.3 m mainly driven by Trevi Division performance Operating ▪ Group recurring EBITDA at €32.5 m up 40.8% 1H/1H results ▪ Total net profit at €27.6 m (tot. net loss €18.4
Slide 6: 1H23 key figures
Trevi Group 1H23 key figures 1H23 financial highlights – growing top line combined with an improved profitability 1H22 1H23 Δ Revenues €236.1 m €280.3 m +18.7% Rec. EBITDA €23.1 m €32.5 m +40.8% (EBITDA margin) (9.8%) (11.6%) Total Net Profit / (Loss) -€18.4 m €27.6 m n.m. Operating Cash Flow €18.6
Slide 7: II. 1H23 Group Results
II. 1H23 Group Results
Slide 8: 1H23 results showing improvements in all components
Trevi Group 1H23 results showing improvements in all components Revenues (€m) Recurring EBITDA (€m) +18.7% +40.8% 280.3 32.5 23.1 236.1 1H22 1H23 1H22 1H23 EBITDA margin 9.8% 11.6% Total net profit / (loss) (€m) Net financial position (€m) -32.3% Total net 27.6 operating profit1 at €4.3 m 251.2 187.
Slide 9: Strong revenues performance by Divisions
Trevi Group strong revenues performance by Divisions Key Highlights Revenues (€m) ▪ Trevi Division revenues up €52.7 m 1H/1H underpinned by increased volumes in all geographies, except for 18.7% Africa where some major projects were 280.3 completed. Middle East, United States and Europe outperformed
Slide 10: Group revenues evolution and worldwide geographic footprint
Significant Group revenues evolution combined with strong worldwide geographic footprint Group revenues evolution (€m) Italy €27.2 m (+13% 1H/1H) Highest revenues since 2020 Europe (ex-Italy) €10.3 m (-63% 1H/1H) 280.3 238.4 216.5 236.1 USA & Canada €45.1 m (+11.6% 1H/1H) 1H20 1H21 1H22 1H23 Latam €
Slide 11: Main projects concentrated in countries with interesting infrastructure markets
Trevi Group main projects concentrated in countries with interesting infrastructure markets Main projects around the world 11
Slide 12: Order intake and backlog evolution in 1H23
Trevi Group order intake and backlog evolution in 1H23 Key Highlights Quarterly order intake evolution over 18 months (€m) ▪ In the first half of 2023, Trevi Group 237.0 awarded orders and contracts for a 213.3 61.1 181.3 total of €310.3 m 154.3 41.7 129.0 41.1 25.2 94.6 30.1 ▪ Order intake in line
Slide 13: Streamlined personnel costs efficiency as planned
Trevi Group has streamlined personnel costs efficiency as planned First half FTE costs up by 2.3% compared to revenues per FTE up by 13.2% 1H/1H, showing strong efficiency efforts Workforce by role (#) Workforce by business division (#) Workforce by geography +4.7% growth €76 k Revenues €86 k +13.2%
Slide 14: Profitability supported by a sound mix of price and volume
Trevi Group profitability supported by a sound mix of price and volume Key Highlights Bridge Recurring EBITDA (€m) ▪ Recurring EBITDA increased by 40.8% compared to 1H 2022 boosted by a mix of volume (+€4.3 m) and price (+€5.1 m) effects ▪ FTE efficiencies, undertaken by all Trevi Division €36.8 m D
Slide 15: Total net profit highly positive on improved margins and capital increase
Total net profit highly positive mainly thanks to improved operating margins and capital increase impact Key Highlights Recurring EBITDA to Total Net Profit in 1H23 (€m) ▪ Provisions & impairment mostly impacted by an extraordinary reversal of the contractual risk fund of €7 m in Trevi S.p.A. ▪ Capi
Slide 16: Group net working capital evolution
Group net working capital evolution with tangible improvement on trade receivables and inventories Key Highlights Net working capital1 (€m) ▪ Change in inventories & WIP -5.8% decreased by c. €18 m mainly because of collection of Work-In-Progress existing at the end of 2022 ▪ Trade receivables decre
Slide 17: Net cash flow evolution
Trevi Group net cash flow evolution Key Highlights Managerial net cash flow1 (€m) ▪ IFRS16 effect of €4.9 m related to long term rents ▪ Change in other assets/liabilities stemmed from tax payment, reduction of advance payments to customers and others ▪ Capex higher by €7.3 m 1H/1H, referred to inve
Slide 18: Group net debt reduction driven by restructuring agreement
Group net debt reduction driven by restructuring agreement and positive working capital dynamics Key Highlights Breakdown of net financial position as of 31-Dec-22 as of 30-Jun-23 Average 2% spread on cost of M/L term Euribor 6M €95.0 m €77.4 m debt with banks Cash & Liquidity Other current Duration
Slide 19: Trevi Division – Specialist in deep foundations and geotechnical works
Trevi Division – Specialist in deep foundations and geotechnical works Key Highlights Revenues and Recurring EBITDA (€m) ▪ Revenues strongly up by €52.7 m EBTDA margin 1H/1H thanks to the increased volumes in Middle East (mainly in Saudi Arabia and Dubai), United States and Italy. Projects in Algeri
Slide 20: Soilmec Division – Focused on high-value products
Soilmec Division – Focused on high-value products developed directly “on the field” Key Highlights Revenues and Recurring EBITDA (€m) ▪ Revenues were up by €1.4 m (+2.5%) EBITDA margin driven by a strong increase of machines sold in Far East (especially Australia), more than offsetting a decrease in
Slide 21: III. Guidance 2023
III. Guidance 2023
Slide 22: 2023 Group guidance and key figures
2023 Group guidance and key figures 1H23 FY23E FY26BP ▪ Expected revenue growth Revenues € 280.3 m €565-585 m in the range of 0-3% €662 m ▪ Expected EBITDA margin Recurring EBITDA €32.5 m €68-72 m at approximately 12% €89 m ▪ Expected leverage ratio in Net debt €187.1 m €200-230 m the range of 2.9x-
Slide 23: Final remarks
~ ¢ TREWI|Group —
Slide 24: Final remarks
Final remarks INCREASING TOP LINE & PROFITABILITY SOLID ORDER BOOK AND BACKLOG IMPROVED NET FINANCIAL POSITION ON TRACK TO REACH FY2023 TARGETS POSITIVELY PROGRESSING ON BUSINESS PLAN 24
Slide 25: Appendix
Appendix
Slide 26: Consolidated Income Statement
Trevi Group – Consolidated Income Statement (In thousand of Euro) 1H 2023 1H 2022 Change % Change TOTAL REVENUE 280,266 236,125 44,141 18.7% Change in finished goods and work in progress 5,688 7,078 (1,390) Internal work capitalised 10,869 4,234 6,635 PRODUCTION REVENUE 296,823 247,437 49,386 20.0%
Slide 27: Consolidated Reclassified Balance Sheet
Trevi Group – Consolidated Reclassified Balance Sheet (In thousand of Euro) 30/06/2023 31/12/2022 Change A) Non-current assets - Property, plant and equipment 170,988 164,602 6,386 - Intangible assets 18,626 17,483 1,143 - Financial assets - investments 529 903 (374) 190,143 182,988 7,155 B) Net wor
Slide 28: Consolidated Cash Flow Statement
Trevi Group – Consolidated Cash Flow Statement (In thousand of Euro) 1H 2023 1H 2022 Change EBITDA recurring (including IFRS 16 effect) 32.5 23.1 9.4 IFRS 16 Effect (4.9) (3.5) (1.4) Taxes (payed) (1.5) (3.1) 1.6 Delta Net Working Capital (3.8) (15.4) 11.5 Trade receivables third-parties 37.2 6.6 30
Slide 29: 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
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