Tesmec S.p.a. · MIL:TES
Tesmec — Q1 2024 Earnings Presentation
35 slides from Tesmec's earnings presentation, May 10, 2024
Slide 1: 2024.Q1 Results
2024.Q1 Results Grassobbio, May 10th 2024 1
Slide 2: 2024.Q1 Results Index
2024.Q1 RESULTS INDEX 01 Tesmec Group at a glance 02 Opening remarks 03 2024.Q1 Group Financials & Key Metrics 04 2024 Outlook 05 Annex May 10th 2024 2
Slide 3: Tesmec Group: Integrated Solutions Provider for Energy and Data Transport
2024.Q1 Results TESMEC GROUP: INTEGRATED SOLUTIONS PROVIDER FOR ENERGY AND DATA TRANSPORT Technology partner in markets driven by 70 +1,000 9 energy transition, digitalisation and sustainability trends YEARS PEOPLE MANUFACTURING of experience PLANTS Operating in the energy, data and material transpo
Slide 4: Energy: the inspiring thread of our businesses
TESMEC GROUP 2024.Q1 Results Energy: the inspiring thread of our businesses ENERGY - STRINGING RAILWAY ▪Solutions for power ▪Catenary lines lines construction & construction & maintenance ▪Advanced maintenance ▪Diagnostic vehicles and methodologies for systems automating jobsite ▪Integrated platform
Slide 5: Tesmec Group's Sustainability Path
2024.Q1 Results TESMEC GROUP’S SUSTAINABILITY PATH MARKET DRIVERS MILESTONES FOCUS ON GUIDELINES ESG COMMITMENT SDGs Increase R&D & Technologies & Green & ▪ EU Taxonomy Innovation products Digital alignment revenues DIGITALIZATION & SAFETY TESMEC economic activities are eligible according to ▪ Envir
Slide 6: 2024.Q1 ESG Highlights
2024.Q1 Results 2024.Q1 ESG HIGHLIGHTS ENVIRONMENT RENEWABLE ENERGIES SOCIAL ISO 14067:2018 - Carbon Footprint for Tesmec SPA - Photovoltaic plant WHP Program TESMEC trenchers The enlarged photovoltaic plant at the Tesmec Tesmec confirms its commitment to promote a Tesmec commissioned a study from a
Slide 7: 2024.Q1 Results Index
2024.Q1 RESULTS INDEX 01 Tesmec Group at a glance 02 Opening remarks 03 2024.Q1 Group Financials & Key Metrics 04 2024 Outlook 05 Annex May 10th 2024 7
Slide 8: 2024.Q1 At a Glance
2024.Q1 Results 2024.Q1 AT A GLANCE SALES SALES BY BU €M 59,3 PY/Q€M 57,5 Energy EBITDA €M 17,6 Trencher €M 9,0; 15,2% 59,3 €M 34,2 PY/Q €M 7,5; 13% €M EBIT Rail €M 7,5 €M 3,1 PY/Q €M 1,9 NET RESULT SALES BY REGION €M (1,1) PY/Q €M (2,5) Europe €M 28,1 NFP North& Central €M 167,1 America Dec. 31, 20
Slide 9: Progress Highlights
2024.Q1 Results 2024.Q1 HIGHLIGHTS Volumes’ growth in line with Improved marginality, still not Net Result impacted by higher expectations and sales mix reflecting full potential, with financial charges due to favorable to margin improvement operating expenses containment increased rates/level of de
Slide 10: 2024.Q1 Results Index
2024.Q1 RESULTS INDEX 01 Tesmec Group at a glance 02 Opening remarks 03 2024.Q1 Group Financials & Key Metrics 04 2024 Outlook 05 Annex May 10th 2024 10
Slide 11: 2024.Q1 Group Results
2024.Q1 GROUP RESULTS 2024.Q1 Results (€ mln) RESULTS’ COMMENTARY Income Statement 2024.Q1 2023.Q1 Δ vs.2023 (1) Revenues: +3,2% mostly driven by Energy (for both Energy- REVENUES (1) 59,3 57,5 +3,2% Automation and Energy-Stringing segments) and, to a lower extent, Trencher, more than offsetting low
Slide 12: 2024.Q1 Group Results: Financial Information
2024.Q1 Results 2024.Q1 GROUP RESULTS (€ mln) RESULTS’ COMMENTARY Financial Information Mar. 31, 2024 Dec. 31, 2023 • Net Working Capital increase due to higher level of trade Net Working Capital 91,9 86,8 receivables related to end-quarter sales, and still high levels of of which: inventory 112,1 1
Slide 13: Trenchers: 2024.Q1 Facts & Figures
2024.Q1 Results TRENCHERS: 2024.Q1 FACTS & FIGURES (€ mln) 50 KEY FACTS 40 33,5 34,2 +2% • Business development and strengthening of activities in 30 Australia and Middle East 20 +7,2% 4,7 • Implementation of a US market development and integration 10 3,4 13,8% plan to enhance business and managemen
Slide 14: Trenchers: 2024.Q1 Facts & Figures
2024.Q1 Results TRENCHERS: 2024.Q1 FACTS & FIGURES Intermat 2024 - Paris Elelectric range Australia-Telecom May 10th 2024 14
Slide 15: Rail: 2024.Q1 Facts & Figures
2024.Q1 Results RAIL: 2024.Q1 FACTS & FIGURES (€ mln) 30 KEY FACTS 20 • Cloud-based diagnostic platform: completed the development of sending relevant and non-relevant defects from the train to 10,0 the remote platform based on Microsoft Azure Cloud 10 7,5 +30% +7,2% 1,4 +7,2% Architecture +4,3%-25%
Slide 16: Rail: 2024.Q1 Facts & Figures
2024.Q1 Results RAIL: 2024.Q1 FACTS & FIGURES Snapshots during live demos of the full electric vehicle Diagnostic platform on cloud to increase the reliability of the data: more SAFETY Snapshots during live demos of the full electric vehicle May 10th 2024 16
Slide 17: Energy: 2024.Q1 Facts & Figures
2024.Q1 Results ENERGY: 2024.Q1 FACTS & FIGURES (€ mln) 30 KEY FACTS Stringing 20 17,6 13,9 +26% • Continuous monitoring of the Australian and North American +30% markets to conclude open sales opportunities and enhance 10 2,9 2,1 relationships with local stakeholders 16,4% 15,4% • Diversify the cu
Slide 18: Energy: Automation and Stringing
2024.Q1 Results ENERGY: 2024.Q1 FACTS & FIGURES AUTOMATION STRINGING New CLP (Continuos Linear Puller) for the Australian market Technical forum for specialists who use online DGA systems Test and training in US of the new PES500 First ASAT system installation May 10th 2024 18
Slide 19: 2024.Q1 Backlog
2024.Q1 Results 2024.Q1 BACKLOG (€ mln) 31/12/2022: 406,2 Backlog Backlog at 31/03/2024 31/12/2023: 402,2 evolution 31/03/2024: 390,6 250,0 Energy 200,0 117 Rail TOTAL 203 391€M 150,0 Trencher 100,0 71 50,0 • Long- term backlog in Automation and Rail 0,0 Energy Trencher Railway 31/12/2022 100,6 82,2
Slide 20: Revenues by Geography
2024.Q1 Results 2024.Q1 REVENUES BY GEOGRAPHY Africa; 5% Africa; 9% Middle East; Europe; 19% Middle East; Europe; 28% 13% 14% BRIC & 2024.Q1: BRIC & 59,3 €M Others; 15% 2023.Q1: Others; 13% 57,5 €M North & Italy; 22% Central Italy; 19% North & Central America; America; 25% 16% 2023.Q1 2024.Q1 16,7 •
Slide 21: Recurring vs Non-Recurring Revenues
2024.Q1 Results 2024.Q1 “RECURRING” VS “NON-RECURRING” REVENUES Non recurring Recurring Non recurring Recurring 47,80% 52,20% 45,40% 54,60% 28,3 2024.Q1: 31 77 €M 26,1 2023.Q1: 31,4 €M 125,5 59,3 €M 126,4 €M €M 11,3 M€ 96,5 20,5 57,5 €M€M €M €M €M M€ • Recurring: Rental, Projects, Spare Parts, Servi
Slide 22: EBITDA Evolution by BU
2024.Q1 Results 2024.Q1 EBITDA EVOLUTION BY BU (€ mln) 15 +1,3 +0,7 10 (0,6) 15,2% 13,0% Volumes and Improved sales 9,0 mix and margin Lower volumes sales mix 7,5 normalization in due to delayed Australia job-orders 5 0 2023.Q1 Trencher Railway Energy 2024.Q1 Positive contribution from Energy (from
Slide 23: Net Financial Position Evolution and Free Cash Flow
2024.Q1 Results 2024.Q1 NET FINANCIAL POSITION EVOLUTION AND FREE CASH FLOW (€ mln) 200 150 153,5 46,2 167,1 153,5 39,2 5,1 3,0 4,5 114,3 A/R increase 120,9 100 linked to end- quarter sales -1,5€M net FCF excl. ΔNWC and IFRS16 50 0 31/12/2023 IFRS 16 Net debt 2023 NWC OFCF CAPEX Net debt IFRS 16 31/
Slide 24: Net Working Capital Evolution
2024.Q1 Results 2024.Q1 NET WORKING CAPITAL EVOLUTION (€ mln) 120 19,7 (8,2) 100 (5,3) 1,5 (2,6) In coeherence with inventory Mainly linked to 91,9 80 86,8 Increased Increased Lower WIP +A/R anticipated stock for A/R payments from short-term linked to end- 60 clients sales quarter sales 40 20 0 31/1
Slide 25: 2024.Q1 Results Index
2024.Q1 RESULTS INDEX 01 Tesmec Group at a glance 02 Opening remarks 03 2024.Q1 Group Financials & Key Metrics 04 2024 Outlook 05 Annex May 10th 2024 25
Slide 26: 2020-2023 Equity Story and 2024 Outlook
2024.Q1 Results 2020-2023 EQUITY STORY and 2024 OUTLOOK (€ mln) 2024 OUTLOOK «VALUE OVER VOLUMES» REVENUE EBITDA NFP REVENUE • Strategic continuity and selective Higher than 35,2 approach 251,9 34 153,5 • Intensive go-to-market to support fully 10% growth vs. 245,2 integrated digitalized sustainable
Slide 27: Trencher: 2024 Business Guidelines
2024.Q1 Results TRENCHER: 2024 BUSINESS GUIDELINES • Strategically introduce the business to the • Development of a new modular platform for optic fiber used machinery market machines Tesmec is dedicated to improving the worldwide used The platform will be machinery business, showcased in two distin
Slide 28: Energy - Stringing: 2024 Business Guidelines
2024.Q1 Results ENERGY - STRINGING: 2024 BUSINESS GUIDELINES • Implementing a new sales strategy that begins by • New methodology to effectively manage products targeting premium countries, while leveraging strong development while improving efficiency relationships with utilities to enhance our mar
Slide 29: Energy - Automation: 2024 Business Guidelines
2024.Q1 Results ENERGY - AUTOMATION: 2024 BUSINESS GUIDELINES • Integrated market approach combining preservation of consolidated channels with development of new strategic partnerships abroad Current business optimization Successful growth strategy in the in the domestic market and substation autom
Slide 30: Rail: 2024 Business Guidelines
2024.Q1 Results RAIL: 2024 BUSINESS GUIDELINES • Growing Internationalization • Efficient industrial organization ▪ Meetings with Key European Railway ▪ Reorganization of the Authorities (1H2024) manufacturing process ▪ Go to market: sales network acceleration with live ▪ Maintenance activities for
Slide 31: 2024.Q1 Results Index
2024.Q1 RESULTS INDEX 01 Tesmec Group at a glance 02 Opening remarks 03 2024.Q1 Group Financials & Key Metrics 04 2024 Outlook 05 Annex May 10th 2024 31
Slide 32: Appendix A: 2024.Q1 Summary Profit & Loss Statement
2024.Q1 Results APPENDIX A: 2024.Q1 SUMMARY PROFIT & LOSS STATEMENT PROFIT & LOSS (€ Mln) 2024.Q1 2023.Q1 Delta vs 2023 Delta % Net Revenues 59,3 57,5 1,8 3,2% Raw materials costs (-) (25,6) (22,5) (3,1) 13,7% Cost for services (-) (11,0) (12,7) 1,7 -13,1% Personnel Costs (-) (15,4) (16,2) 0,8 -5,0%
Slide 33: Appendix B: Summary 2024.Q1 Balance Sheet
2024.Q1 Results APPENDIX B: SUMMARY 2024.Q1 BALANCE SHEET BALANCE SHEET (€ Mln) Mar. 31, 2024 Dec. 31, 2023 Inventory 112,1 110,6 Work in progress contracts 26,6 29,2 Accounts receivable 65,3 45,6 Accounts payable (-) (91,0) (82,8) Op. working capital 113,1 102,7 Other current assets (liabilities) (
Slide 34: 2024 Tesmec Group Conference Call Schedule
2024.Q1 Results 2024 TESMEC GROUP CONFERENCE CALL SCHEDULE Approval of the Company’s Half-Year Report as of 30th Results presentation: Tuesday, 6 August 2024 June 2024 Time and details will be confirmed prior to the conference call Contacts: ir@tesmec.com https://investor.tesmec.com/en May 10th 2024
Slide 35: Disclaimer
DISCLAIMER This presentation has been prepared by Tesmec S.p.A. (“Tesmec”, the “Company” or the “Group”). As used herein, “Presentation” means this document, any oral presentation, the question and answer session and any written or oral material discussed or distributed during the presentation. The