Slide 1: Integrated Solutions Provider - STAR Conference 2018, Milan
Stringing Energy Automation Integrated Solutions Provider Railway Trencher STAR Conference 2018, Milan www.tesmec.com 27th -28th March 2018
Slide 2: Index
Index > Corporate Strategy > 2017 Results > 2018 Outlook 27th -28th March 2018 2
Slide 3: The 4 Business Units
The 4 Business Units STRINGING ENERGY ENERGY AUTOMATION > Overhead power lines > Telecommunication & construction & maintenance Teleprotection > Reconductoring and line > Electronic integrated sensors, improvement fault detection and measurement FULLY > Protections & Electronics for > Underground ca
Slide 4: Tesmec: From Steel to Sustainable Technology
TESMEC “ From Steel to sustainable Technology ” OUR MISSION > Value added integrated solutions provider in the market of infrastructure for the transport of energy, data and material > Efficiency, digitalization, safety and sustainability are our drivers for the modernization of the infrastructures
Slide 5: Strategy execution & Main milestones
Strategy execution & Main milestones EXPERTISE INTEGRATION FROM STRINGING TO TRENCHER FROM STRINGING TO RAILWAY FROM STRINGING TO AUTOMATION From machines for underground Markets saturation for power lines CONSOLIDATION Application of the tension stringing cable laying to digging solutions for elect
Slide 6: Strategic Approach evolution
Strategic Approach evolution 2017 FUTURE THE ONLY INTEGRATED SOLUTIONS PROVIDER IN THE WORLD able to satisfy the infrastructure market's needs through our fully integrated solutions suite TRENCHERS ENERGY RAILWAY ENERGY Wind - Solar Overhead Catenary Smart grids (cable/fiber) Fttx Underground wires
Slide 7: R&D activities & Digitalization Industry 4.0
Focus on R&D projects and digitalization process TESMEC strategic guidelines Adoption of the Industry 4.0 already identified plan by the Italian Government TESMEC 4.0 connectivity & digitalization & new tax incentives in as growth drivers. 2017 Budget Law. > The most developed markets are strongly i
Slide 8: Index
Index > Corporate Strategy > 2017 Results > 2018 Outlook 27th -28th March 2018 8
Slide 9: 2017 Closing
2017 Closing ENERGY 2017 2016 Delta % GROUP (Euro mln) 2017 2016 Delta % Revenues 52,1 42,2 23,4% REVENUES 175,6 128,5 36,6% EBITDA Adj (*) 8,5 6,0 39,9% EBITDA Adj (*) 22,9 11,6 97,4% % on Revenues 16,2% 14,2% % on Revenues 13,1% 9,0% EBITDA 8,0 4,6 73,4% % on Revenues 15,4% 10,9% EBITDA 20,7 8,5 1
Slide 10: 2017 Q4 Improvements on 9M-YTD performance
2017 Q4 Improvements on 9M - YTD performance Euro/mln 9M - YTD Q4 FY - YTD 2017 2016 Var. 2017 2016 Var. 2017 2016 Var. REVENUES 132,1 108,5 21,8% 43,5 20,0 117,5% 175,6 128,5 36,6% EBITDA Adj 15,3 10,7 42,7% 7,6 0,9 744,4% 22,9 11,6 97,4% EBITDA Adj % 11,5% 9,9% 17,5% 4,5% 13,1% 9,0% EBIT 3,1 1,6 9
Slide 11: 2017 Differences in Exchange
2017 Differences in Exchange Euro mln DIFFERENCES IN EXCHANGE 4 2,8 1,8 1,7 2 0 -2 (1,3) -4 -6 (4,7) 2013 2014 2015 2016 2017 GROUP (Euro mln) 2017 2016 2015 Differences in Exchange (4,7) 1,7 1,8 of which: Realised (1,6) 0,2 0,8 Unrealised (3,1) 1,5 1,0 End-of-period exchange rate USD/Eur as at 31 D
Slide 12: 2017 Revenues: sales spread over different geographical area
2017 Revenues: sales spread over different geographical area INTERNATIONAL SCALE AND EXPOSURE TO GROWING ECONOMIES JOINT WITH A GROWING IMPORTANCE OF THE ITALIAN MARKET 20% 9% 19% 19% 6% 33% 19% 13% 11% 32% 5% 14% Italy: better balance between Export & Domestic market. Italy Growing weight thanks to
Slide 13: EBITDA Adj 2017
EBITDA Adj 2017 Euro mln 35 30 25 2,0 22,9 6,8 20,7 20 (2,2) 2,5 15 3,1 11,6 8,5 10 5 0 EBITDA Other non EBITDA Adj Energy Trencher Railway EBITDA Adj Other non EBITDA 2016 recurring 2016 2017 recurring and 2017 cost/revenues additional rent cost Profitability growth in all the sectors 2016 in propo
Slide 14: 2017 Financial Results
2017 Financial Results Financial Information (Euro mln) 2017 2016 Net Working Capital 60,8 76,0 Non Current assets 68,4 70,1 Other Long Term assets/liabilities 0,9 0,5 Net Invested Capital 130,1 146,6 Net Financial Indebtness 85,2 96,7 Equity 44,9 49,9 Total Sources of Financing 130,1 146,6 Working
Slide 15: Working Capital evolution
Working Capital evolution Euro mln 100 90 76,0 5,5 80 70 3,3 60,8 60 (6,1) (9,6) 50 (8,3) 40 30 20 10 0 2016 Inventories WIP Trade Trade Other current 2017 Net Working Receivables Payables ass. / liab. Net Working capital capital Days Days Euro Mln 2017 2016 2017 2016 Trade Receivables 39,9 49,4 82
Slide 16: Net Financial Position Evolution
Net Financial Position Evolution OPERATING NET FINANCIAL POSITION Euro mln 140 120 96,7 100 4,9 85,2 15,8 80 (17,0) 60 (15,2) 40 20 0 NFP OFCF NWC Capex Int.exp. NFP FY 2016 Net 2017 Cash generated by operations & working capital reduction 2016 exceeding capex cash requirements 2017 27th -28th March
Slide 17: Index
Index > Corporate Strategy > 2017 Results > 2018 Outlook 27th -28th March 2018 17
Slide 18: 2018 Guidelines
2018 Guidelines BACKLOG MAIN ACTIONS 31/12/2017 31/12/2016 C2B: CONSUMER TO BUSINESS GROWTH: Products Smart & Green Solutions 24,4 26,0 RAILWAY: Vehicles solutions Energy > Artic kit packages > Diagnostics packages ENERGY AUTOMATION: Components Grids Architectures 68,5 45,0 Trencher RENEWABLE &
Slide 19: 2018 Outlook
2018 Outlook + - MACRO ECONOMIC > Economy is growing > Higher inflation rate xxx TREND (material & salary costs), especially in US > Price adjustment with positive topline impact > Longer supply-chain lead time ENERGY: New digital 4.0 products (automation, machines 4.0) BUSINESS xxx RAIL: Strong inc
Slide 20: Summary 2017 Profit & Loss statement - Appendix A
Summary 2017 Profit & Loss statement - Appendix A Delta vs Profit & Loss Account (Euro mln) 2017 2016 Delta % 2016 Net Revenues 175,6 128,5 47,1 36,6% Raw materials costs (-) (78,3) (49,0) (29,3) 59,8% Cost for services (-) (30,9) (29,1) (1,8) 6,0% Personnel Costs (-) (46,3) (40,0) (6,3) 15,6% Other
Slide 21: Summary 2017 Balance Sheet - Appendix B
Summary 2017 Balance Sheet - Appendix B Balance Sheet (Euro mln) 2017 2016 Inventory 69,9 70,5 Accounts receivable 39,9 49,4 Accounts payable (-) (39,5) (31,2) Op. working capital 70,3 88,7 Other current assets (liabilities) (9,5) (12,7) Net working capital 60,8 76,0 Tangible assets 46,1 47,3 Intang
Slide 22: Disclaimer
Disclaimer 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 acc
Slide 23: www.tesmec.com
www.tesmec.com 27th -28th March 2018