Slide 1: Partner in a changing world
STAR CONFERENCE 24-25.3.2015 Partner in a changing world
Slide 2: 2015 company overview
2015 company overview
Slide 3: People change history
People change history Tesmec was established in 1951 in Bergamo - Italy as From FOCUS on a pioneering stringing equipment manufacturer. FAMILY company INTEGRATION to PUBLIC FOCUS on Second company INNOVATION Since then Tesmec Group has FOCUS on product FOCUS on evolved as one of the most INVENTION l
Slide 4: Vision and mission
Imagination for progress Modern societies, as well as the emerging ones, face future challenges to vision invest in energy and Tesmec Advanced technologies are developed in accordance with the ISEQ telecommunications sectors. philosophy "Innovation, Safety, Efficiency, Quality" always respecting the
Slide 5: A widespread network of people
A widespread network of people 500 Tesmec Group is Leader 60 in the market of the + infrastructures related to the transport and distribution of energy, data and material. + years of experience people Tesmec people are pioneers 8% since the origins, and their proud R&D spread the name towards huge a
Slide 6: Global partner with local presence
Global partner with local presence Tesmec Group headquarters are located in Grassobbio, in the vicinity of the Northern Italian town of Bergamo. Tesmec has also other four production plants: three in 5 2 9 2 Italy, in Endine Gaiano (Bergamo), Sirone (Lecco), Production Joint Subsidiaries Associated
Slide 7: Strategic Innovation
Strategic Innovation The development of better or more effective technologies, processes PRODUCTS SUPPLIER VALUE ADDED SOLUTIONS PROVIDER and products is a priority Equipment, machines, tools and Intelligence, specialists’ competences, for everyone in Tesmec. technical services expertise, technologi
Slide 8: Solutions partner for your world
We focus on strategic markets for the growth and modernization of every country. Solutions partner for your world Tesmec designs, manufactures and sells products, technologies and integrated solutions for the construction, maintenance and efficiency of infrastructures related to the transport and di
Slide 9: Committed to quality
Committed to quality ENERGY POWER LINES UNDERGROUND GRID MANAGEMENT & CONSTRUCTION & CABLES AUTOMATION MAINTENANCE LAYING DEVICES 9
Slide 10: Main highlights update: Energy
STRINGING EQUIPMENT Global Leadership Main highlights update ENERGY AUTOMATION Italy, South America, USA, Russia + CIS, Turkey EXECUTION OF BIG ORDER IN BRAZIL FOR OVERHEAD POWER LINES STRATEGIC COLLABORATION WITH MAIN POWER COMPANIES AND UTILITIES FOR AUTOMATION PROJECTS IN ITALY AND LATIN AMERICA
Slide 11: Main projects: Energy
5 1 4 3 2 6 7 8 2 3 1 Reconductoring Top efficiency In altitude 1 USA 2 BRAZIL 3 PERU 4 Fjord NORWAY crossing 1 Fault BRAZIL passage indicators NHPL Texas jobsite 500 kV line, 6 T&D lines 500 kV line at 1000 mt a.s.l., Special machines for fjord Fault detectors for MV lines Live line reconductoring
Slide 12: Focus on Brazil project
Focus on Brazil project Tesmec proposal includes not only the supply of equipment but also technical consultancy on the use of equipment and the management of the jobsite. Thanks to this advice, there is an increase of up to 40% in the efficiency of the jobsite operations. Project: 5.416 km of 500
Slide 13: Entrepreneurs of efficiency: Railway
Entrepreneurs of efficiency RAILWAY CATENARY INSTALLATION MAINTENANCE POWERING & REPOWERING 13
Slide 14: Main highlights update: Railway
RAILWAY EQUIPMENT Italy, North Europa, USA, Russia, China Main highlights update DEVELOPMENT OF EFFICIENT MAINTENANCE METHOD OF RAILWAY LINES, ESPECIALLY FOR THE NATIONAL NETWORK COMPLETION OF THE ORDER TO THE US NATIONAL RAILROAD PASSENGER CORPORATION (AMTRAK) TOP PERFORMING SNOW REMOVAL MACHINES F
Slide 15: Main projects: Railway
2 3 4 5 6 1 7 8 Eagle P3 Project Huge, top performing unit TGV High level maintenance 1 USA 2 USA 3 FRANCE 4 ITALY Constant Tension Stringing Unit Special-purpose equipment for TGV high speed railway Multipurpose machines (APV), for a very fast rail wire installation stringing and recovering wires.
Slide 16: Focus on network maintenance
Focus on network maintenance Together with the continuous updating of the railway catenary's technical standard, Tesmec kept developing lead-edge technology and equipment to provide the most advanced integrated solutions for catenary operations. Tesmec is developing an innovative maintenance method
Slide 17: Maximized attitude: Underground
Maximized attitude UNDERGROUND PIPELINES, TELECOM, BULK EXCAVATION, SPECIALIST DIGGING DRAINAGE SURFACE MINING SERVICE 17
Slide 18: Main highlights update: Trenchers
TRENCHERS North America, Middle East, Main highlights update South Equatorial Africa, France SALES RECOVERY IN THE MIDDLE EAST AREA POSITIVE PERFORMANCE IN NORTH AMERICA BIG INFRASTRUCTURE PROJECT (eg RIYADH METRO, CHILE PIPELINE..) ON GOING INVESTMENT IN DIGITALIZATION PROCESS - SMART TRENCHER PHIL
Slide 19: Main projects: Trenchers
1 7 2 6 3 4 8 10 9 5 11 Permafrost cutting Hard rock trenching Agricultural drainage Gas Pipeline Desert Pipeline 1 CANADA 2 USA 3 USA 4 MEXICO 5 CHILE 675 miles natural gas pipeline Granite, quarz and massive Fully automatic guidance system 382 km 36” gas pipeline Double parallel water pipeline dep
Slide 20: Focus on Riyadh Metro Station
TESMEC expertise has been chosen for the main infrastructural projects worldwide Focus on Riyadh Metro Station Project: rock excavation activities for Metro Station construction Supply: TESMEC 1475 Rock Hawg Location: Riyadh - Kingdom of Saudi Arabia Contractor: BACS consortium (Bechtel, Alm
Slide 21: Global Customer
Global Customer ENERGY RAILWAY UNDERGROUND public-sector companies involved in construction or management of electricity networks; contractors operating in the contractors operating in the design and development of railway operators; infrastructures; construction of infrastructure for data a
Slide 22: Human Values
308 7 7 Human Values 5 17 137 40 4 9 Tesmec identifies in honesty, membership and respect the values that distinguish our history. We are resolute to continue building our future on human respect, acting with coherence and honesty towards colleagues, clients and suppliers. Our will is to be an attra
Slide 23: 2014 Economic and financial data
2014 Economic and financial data
Slide 24: 2014 Economic Results
2014 Economic Results GROUP 2014 2013 Delta % Revenues 114.9 113.5 1.2% STRINGING 2014 2013 Delta % EBITDA 18.3 19.5 -6% Revenues 50.1 52.1 -4% % on Revenues 16% 17% EBITDA 9.5 12 -21% % on Revenues 19% 23% EBIT 10.5 12.5 -16% % on Revenues 9% 11% RAILWAY 2014 2013 Delta % Profit Before Taxes 8.3 7.
Slide 25: 4Q2014 vs 4Q2013 results
4Q2014 vs 4Q2013 results GROUP Q42014 Q42013 Delta% Revenues 33.9 28.5 19% EBITDA 5.8 3.6 61% % on Revenues 17% 13% STRINGING Q42014 Q42013 Delta% RAILWAY Q42014 Q42013 Delta% TRENCHERS Q42014 Q42013 Delta% Revenues 16.4 10.9 50% Revenues 1.1 0.6 97% Revenues 16.4 17.0 -3.6% EBITDA 3.4 2.5 36% EBITD
Slide 26: Revenues
Revenues 2013 2014 INTERNATIONAL SCALE AND EXPOSURE TO GROWING ECONOMIES 6% 12% 26% 15% 31% Italy 18% Europe Middle East 9% 20% BRICs and Oceania Africa 6% 16% North-Central America 24% 17% 26
Slide 27: Foreign subsidiaries
Foreign subsidiaries TESMEC RUS (100%) Revenue 1 million € (-74% vs PY) In the second part of 2014 the company suffered JV CONDUX-TESMEC (50%) the difficult economic situation of the Russia market Revenue 11 million € (-20% vs PY) * * JV TESMEC PENINSULA (49%) Revenue 11 million € (+ 144% vs PY) TES
Slide 28: Group Structure at Dec 31, 2014
Group Structure at Dec 31, 2014 Operating Companies TESMEC S.P.A. Fully Consolidated Equity Method Equity Method TESMEC USA (67%)* BERTEL (40%) TESMEC RUS (100%) TESMEC PENINSULA EAST TRENCHERS TESMEC SA (49%) (91,2%) (100%) CONDUX TESMEC LOCAVERT TESMEC SERVICE (50%) (38,63%) (100%) TESMEC BALKANI
Slide 29: EBITDA 2014
EBITDA 2014 30 24 1.3 0.9 0.5 0.7 18 (1,3) (3,3) 12 19.5 18.3 6 0 EBITDA Revenues Raw Cost for Personnel Equity Capitalized EBITDA 2013 materials Services Costs Investments R&D 2014 and other Expenses costs Lower than proportional revenues generation with 2013 2014 respect to cost increase 29
Slide 30: Net Profit 2014
NET PROFIT 2014 8 4,0 (1,5) (0,8) 4 4.4 (1,2) 4.9 0 Net EBITDA Forex Financial Taxes Depr. Net Income Charges & & Income 2013 Derivatives Amort. 2014 Increase in Net Income primarily due to positive 2013 2014 currency rates 30
Slide 31: 2014 Financial Results
2014 Financial Results Financial Information (Euro mln) 2014 Net Working Capital 57.9 Non Current assets 65.3 Other Long Term assets/liabilities (1,7) Net Invested Capital 121.5 Net Financial Indebtness 73.4 Equity 48.1 Total Sources of Financing 121.5 31
Slide 32: Working Capital Evolution
Working Capital Evolution Working Capital Evolution 75 09 04 02 03 50 8,7 58 25 53 0 2013 Inventories WIP Trade Trade Other current 2014 Net Working Receivables Payables ass. / liab. Net Working capital capital Days Days Euro Mln 2014 2013 2014 2013 2014 Trade Receivables 41.3 43.2 129 137 Net Worki
Slide 33: Net Financial Position Evolution
Net Financial Position Evolution Operating Net Financial Position without figurative debt 70 for Grassobbio premises ias 17 60 ias 17 18,9 73,4 20,1 2,3 3,9 50 0,7 6,3 54,5 1,7 40 20,2 10,9 30 48,9 48,9 20 10 0 NFP Operating OFCF NWC Dividend Inv. Other Int.exp. Taxes Operating Capex NFP FY 2013 NFP
Slide 34: Exchange exposure 2014
Exchange exposure 2014 MARGIN EFFECT FX NET ASSETS TRANSLATION EFFECT AVERAGE EUR/USD YEAR END EUR/USD YEAR END EUR/USD EXCHANGE RATE EXCHANGE RATE EXCHANGE RATE 1.329 2014 1.214 2014 1.214 2014 1.328 2013 1.379 2013 1.379 2013 FX GAIN/LOSS NET EQUITY CHANGE (mm Euro) (mm Euro) +2.8 2014 +3.6 2014 -
Slide 35: Order Book 2014
STRINGING Order Book 2014 € mln 80,7 50,1 TRENCHERS 45,2 45 € mln 51,3 52,8 30 40 14,6 15 28,4 27 0 20 Order 2014 Order Order book Revenues Intake book FY 2013 FY 2014 0 Order book 2014 Order Order book FY2013 Revenues Intake FY2014 RAILWAY € mln 15 Backlog Trend 11,9 12,0 100 27 10 80 62.1 52.7 58
Slide 36: TESMEC TF 6% AP21 EUR bond and Cerved rating
TESMEC TF 6% AP21 EUR CERVED GROUP - CLASSES OF RISK Tesmec has been assigned a solicited rating by Cerved Group on March 18, 2014 A 1.1 A 1.2 A 2.2 A 1.3 corresponding to high credit rating SAFETY A 2.1 with Probability of Default index of 0.35% A 2.2 TESMEC S.p.A. 6% 2014-2021 A 3.1 Trading Venue:
Slide 37: Outlook 2015
Outlook 2015 Revenues Euro 45% 55% USD Operating Costs 15% Euro STRENGTHS & OPPORTUNITIES EFFECT OF EUR / USD EXCHANGE RATE THAT POSITIVELY CONTRIBUTES, 85% USD IN PARTICULAR TO THE MARGINALITY OF TRENCHER SECTOR BACKLOG STRONG POSITION IN THE ENERGY MARKET AND POSITIVE IMPACT OF THE NEW BUSINESSES
Slide 38: Summary 2014 Profit & Loss statement
Summary 2014 Profit & Loss statement Delta vs Profit & Loss Account (€ mln) 2014 2013 Delta % 2013 Net Revenues 114.9 113.5 1.4 1.2% Raw materials costs (-) (55.5) (54.8) (0.7) 1% Cost for services (-) (19.0) (19.9) 0.9 -5% Personnel Costs (-) (26.1) (22.7) (3.4) 15% Other operating revenues/costs (
Slide 39: Summary 2014 Balance Sheet
Summary 2014 Balance Sheet Balance Sheet (€ mln) 2014 2013 Inventory 60,6 48,1 Accounts receivable 41,3 43,2 Accounts payable (-) (34,2) (25,5) Op. working capital 67,7 65,8 Other current assets (liabilities) (9,8) (13,1) Net working capital 57,9 52,7 Tangible assets 48,1 43,2 Intangible assets 12,4
Slide 40: 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