Tesmec S.p.a. · MIL:TES

Tesmec — 9M 2011 Earnings Presentation

29 slides from Tesmec's earnings presentation, Nov 9, 2011

  1. Slide 1: Tesmec Group 9M 2011 Results

    Tesmec Group 9M 2011 Results Analyst Presentation, 9 November 2011 Corporate

  2. Slide 2: Agenda

    Agenda  9M 2011 - Main business highlights P.Mosconi, GM  9M 2011 - Financial results A.Bramani, CFO  Outlook 2011 A.Caccia, CEO  Appendix 2/25

  3. Slide 3: Index

    Index  9M 2011 - Main business highlights  9M 2011 - Financial results  Outlook 2011  Appendix 3/25

  4. Slide 4: Main business highlights: Stringing

    Main business highlights: Stringing • Sales 9M 2011 (47,1 Euro mln): 1,3% increase vs. SPPY; • Margins: • strong increase mainly thanks to country mix; • Russia and Brasil are the countries with highest sales volumes (18,6 Euro mln) and are the countries with highest margin (36%). • New business (po

  5. Slide 5: Main business highlights: Stringing

    Main business highlights: Stringing • Russia: completion of the process to create a wholly owned local company: Tesmec Rus Llc. The subsidiary is a commercial company with a technical department to give a complete service to CSI countries. • Perù: acquisition of an important order of USD 4,5 mln fro

  6. Slide 6: Main business highlights: Trenching

    Main business highlights: Trenching • Sales 9M 2011 (33,7 Euro mln): 6,6% increase vs SPPY (Q3 +38,6%) mainly driven by steady growth of USA and Middle East market; • Tesmec Usa sales: new sales approach  direct contract with main customers rather than traditional distributor’s channels; • Margins:

  7. Slide 7: Main business highlights: Trenching

    Main business highlights: Trenching • Kingdom of Saudi Arabia: Tesmec Group started important negotiations with the main Saudi General Contractors both to sell equipment and to ensure integrated services in bulk excavation section. • South Africa: • completion of the process to create a wholly owned

  8. Slide 8: Shareholding Structure

    Shareholding Structure 8/25

  9. Slide 9: Group Structure at September 30, 2011

    Group Structure at September 30,2011 Tesmec S.p.A. Tesmec Tesmec Service Tesmec S.p.A. Balkani Effect on USA Inc Fully (100%) EAD EBITDA and (75%)* (100%) Consolidated Pre-Tax Profit Tesmec S.A. (100%) Operating Companies Tesmec Condux Peninsula Tesmec (49%) (50%) Equity Effect on Pre-Tax Method Pro

  10. Slide 10: Index

    Index  9M 2011 - Main business highlights  9M 2011 - Financial results  Outlook 2011  Appendix 10/25

  11. Slide 11: 9M 2011 Results

    9M 2011 Results Tesmec (Cons.) Income Statement 9M 2011 (€ mln) 1Q 2Q 3Q 9M 1Q 2Q 3Q 9M vs 9M 2010 2010 2010 2010 2011 2011 2011 2011 2010 delta % Revenues 29,3 24,1 24,7 78,1 26,5 29,6 24,7 80,8 3,5% EBITDA 5,5 4,9 1,9 12,3 5,3 5,4 3,8 14,5 17,7% % Revenues 18,8% 20,3% 7,7% 15,8% 20,0% 18,2% 15,4%

  12. Slide 12: Revenues and EBITDA for Stringing Division

    Revenues and EBITDA for Stringing Division Revenues (€ mln) +1,3% +16,3% +10,1% - 21,2% EBITDA (€ mln and % of Net Revenues) 12/25

  13. Slide 13: Revenues and EBITDA for Trencher Division

    Revenues and EBITDA for Trencher Division Revenues (€ mln) +6,6% +47 % +39 % -38,9% Service Activities EBITDA (€ mln and % of Net Revenues) Sales of machines 15,7% 10,7% 49% 50% 17% 9,9% 45,5 50% 6,6% % 11,3% 14,9% 12,5% 3% 13/25

  14. Slide 14: Financial Information

    Financial Information Financial Information (€m) 9M 2011 vs 2010 1Q 2011 1H 2011 9M 2011 2010 delta % Net working capital 40,2 48,4 43,0 47,5 18% Non current assets 26,1 47,0 46,4 47,3 81% Other LT assets/(liab) 1,1 1,6 1,7 1,3 18% Net invested capital 67,4 97,0 91,1 96,1 43% Net financial indebtedn

  15. Slide 15: Revenues: geographical Split

    Revenues: geographical Split Tesmec Group  Brazil and Russia sales to compensate for weaker India and China for Stringing  North Central America and ME growth mainly driven by Trenchers sales  Africa decrease after completion of South Africa project (4 mln euro revenues in 9M 2010) € mln 15/25

  16. Slide 16: Revenues: international scale and exposure to growing economies

    Revenues: international scale and exposure to growing economies 9M 2010 9M 2011 Stringing equipment 4% 9% 5% 15% 4% 20% 25% 5% 4% 3% 54% 52% Italy Europe Middle East BRICs and Oceania Africa North-Central America Trenchers 11% 10% 10% 26% 6% 14% 27% 8% 2% 48% 38% Italy Europe Middle East BRICs and O

  17. Slide 17: EBITDA path

    EBITDA path Tesmec Group  EBITDA on Revenues moved from 15,8% (9M 2010) to 17,9% (9M 2011)  Accounting treatment of the new rent contract affected positively EBITDA by 1,3 mln euro  Exchange rate affected negatively EBITDA by 1,3 mln euro especially in Trencher division  Increase in stringing ma

  18. Slide 18: NET PROFIT path

    NET PROFIT path Tesmec Group  Net Profit decrease mainly due to: - increase in financial costs closely related to increase in Euribor 3m; - derivatives burden costs. € mln 0,8 0,1 (0,5) (0,3) (0,1) (0,3) 4,7 18/25

  19. Slide 19: Working Capital Evolution

    Working Capital Evolution Tesmec Group Description 1Q 1H 9M 2010 2011 2011 2011 Trade 32,5 36,5 34,0 31,5 Receivables Inventory 42,2 43,7 43,0 43,2 Trade payables (26,3) (25,2) (26,8) (22,7) Other current (8,2) (6,6) (7,2) (4,5) asset/liabilities Net Working Days 40,2 48,4 43,0 47,5 Capital Calculat

  20. Slide 20: NFP Evolution

    NFP Evolution Tesmec Group  Main variance related to accounting of new rent contract (IAS 17);  The value of this financial debt is not included in the calculation of the covenants of the main loan agreements;  Increase in Working capital is a consequence of reduction in Trade Payables and other

  21. Slide 21: NFP Structure

    NFP Structure Current portion Non current portion € mln 60,0 17,7% 38,1 32,7 20,5% 38,8% 82,3% 61,2% 79,5% 21/25

  22. Slide 22: Exchange exposure 9M 2011

    Exchange exposure 9M 2011 22/25

  23. Slide 23: Index

    Index  9M 2011 - Main business highlights  9M 2011 - Financial results  Outlook 2011  Appendix 23/25

  24. Slide 24: Order Book

    Order Book ORDER BOOK 9M 2010 – Year End 2010 – 9M 2011 € mln Stringing Equipment Trenchers STRINGING EQUIPMENT TRENCHERS € mln € mln 24/25

  25. Slide 25: Outlook 2011

    Outlook 2011 -Revenues at year end are expected to further increase up to double digit with respect to 2010 (+3,5% after 9m); -As a consequence margins and cash flow will align with market expectations; -Global market change and Tesmec Group offering: -Products (new technologies) -services (special

  26. Slide 26: Index

    Index  9M 2011 - Main business highlights  9M 2011 - Financial results  Outlook 2011  Appendix 26/25

  27. Slide 27: Summary Profit & Loss statement with effects of new rent contract under IAS 17

    Summary Profit & Loss statement with the effects of new rent contract accounted under IAS 17 A B A+B Profit & Loss Account (€ mln) 9M 2011 Delta vs IAS 17 9M 2011 9M 2010 Delta % adj 2010 Net Revenues 80,8 80,8 78,1 2,7 3,5% Raw materials costs (-) (39,4) (39,4) (34,8) (4,6) 13% Cost for services (-

  28. Slide 28: Summary Balance Sheet with the effects of new rent contract under IAS 17

    Summary Balance Sheet with the effects of new rent contract accounted under IAS 17 A B A+B Balance Sheet (€ mln) 2011 adj IAS 17 2011 2010 Inventory 43,2 43,2 42,2 Accounts receivable 31,5 31,5 32,5 Accounts payable (-) (22,7) (22,7) (26,3) op. working capital 52,0 0,0 52,0 48,4 Other current assets

  29. Slide 29: TESMEC S.p.A - Headquarters

    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 accounting rec

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