Slide 1: Integrated Solutions Provider - 2019.H1 Results Presentation
Stringing Energy Automation Integrated Solutions Provider Railway Trencher 2019.H1 Results Presentation www.tesmec.com 2nd August 2019
Slide 2: Index
Index > Corporate Strategy > 2019.H1 Results > 2019 Outlook 2nd August 2019 2
Slide 3: Integrated Solutions Provider for Energy and Data transport
Integrated Solutions Provider for Energy and Data transport VISION MISSION > To be a > To operate in the technological market of partner in a infrastructure for the changing world transport of energy, data and material (oil and derivatives, gas, ENERGY AND water). DATA TRANSPORT VALUE STRATEGY PROPO
Slide 4: Business Units
4 Business Units STRINGING ENERGY ENERGY AUTOMATION > Overhead power lines > Telecommunications solutions for construction & maintenance HV Grids > Advanced methodologies for > Grid Management: protection and powerlines improvement PLATFORMS metering solutions > Zero emissions underground FOR > Adva
Slide 5: Towards a carbon neutral factory
Towards a carbon neutral factory ✓ Grassobbio, Patrica and Monopoli plants are fed by solar panels ✓ By 31/07/2019 all Italian plants will be ISO 14001 and ISO 45001 compliant ✓ By 31/07/2019 Tesmec Automation will be ISO 14067:2018 (Carbon footprint of products) certified ✓ The whole production pro
Slide 6: Index
Index > Corporate Strategy > 2019.H1 Results > 2019 Outlook 2nd August 2019 6
Slide 7: 2019.H1 Stringing business highlights
2019.H1 Stringing business highlights NEW METHODOLOGY FOR RECONDUCTORING NEW DEAL FOR NORTH AMERICA MARKET • Age of grid in development Countries is higher than • Reorganization of our presence on energy sector conductor lifespan • New deals with partner for business development • Grant the quality
Slide 8: 2019.H1 Energy Automation business highlights
2019.H1 Energy Automation business highlights KEY OPPORTUNITIES IN GROWING MARKET SEGMENTS KEY OPPORTUNITIES IN INTERNATIONAL MARKETS ENEL MARKET: RUSSIA: - Continuous supplies of MV Smart devices in Italy and - Growing direct supplies of SMT on the Rosseti Grid South America - Start-up of supplies
Slide 9: 2019.H1 Trencher business highlights
2019.H1 Trencher business highlights KEY OPPORTUNITIES IN 5G&FIBER BUSINESS KEY OPPORTUNITIES IN SURFACE MINING BUSINESS Main targets: USA, UK, Africa Main targets: Bauxite, coal, limestone, alluvial gold • Digital & connected solutions: SAFETY first and easier • Focus on: PRODUCTIVITY, EXCAVATED MA
Slide 10: 2019.H1 Railway business highlights
2019.H1 Railway business highlights METHODOLOGY FOR SAFE & FAST CATENARY MAINTENANCE SOLUTIONS TO ASSURE RAILWAY INFRASTRUCTURES OPERATIONS RELIABILITY & SAFETY • Certified solution (with remote control systems) for • Specialized vehicles equipped with DIAGNOSTIC DEVICES replacement of the contact w
Slide 11: 2019.H1 Closing
2019.H1 Closing (1) + 5,3% at constant currencies GROUP (€ mln) 2019.H1 2018.H1 Delta % (2) The EBITDA has not yet impacted by the full REVENUES 97,5 91,1 7,0% (1) effectiveness of the positive management EBITDA (2) (3) 12,1 9,3 29,6% actions rolled out from September of the last % on Revenues 12,4%
Slide 12: 2019.H1 Closing by segment
2019.H1 Closing ENERGY 2019.H1 2018.H1 Delta % Revenues 21,9 20,8 5,6% > Energy Automation Growth EBITDA* 2,8 2,6 11,1% > European Market Driven % on Revenues 12,9% 12,3% * EBITDA ante IFRS 16 would have been 2,3 M€ TRENCHERS 2019.H1 2018.H1 Delta % Revenues 59,2 60 -1,3% > Marais Profitability Turn
Slide 13: 2019.H1 Revenues: sales spread over different geographical area
2019.H1 Revenues: sales spread over different geographical area INTERNATIONAL SCALE AND EXPOSURE TO GROWING ECONOMIES JOINT WITH A GROWING IMPORTANCE OF THE ITALIAN MARKET 2019.H1 2018.H1 20% 16% 23% 25% 10% 9% 19% 16% 21% 26% 8% 7% ITALY: impact of railway business & automation Italy Europe Middle
Slide 14: 2019.H1 Differences in Exchange
2019.H1 Differences in Exchange Euro mln DIFFERENCES IN EXCHANGE 1 0,3 0,5 0,0 0 -0,5 2018.H1 2019.H1 GROUP (Euro mln) 2018.H1 2019.H1 Differences in Exchange 0,0 0,3 of which: Realised (0,1) 0,1 Unrealised 0,1 0,2 Differences in Exchange for currency: USD 0,5 0,0 ZAR (0,4) 0,0 OTHER (0,1) 0,3 Total
Slide 15: 2019.H1 EBITDA
2019.H1 EBITDA € mln 15,0 1,3 12,5 12,1 1,2 10,0 0,3 9,3 7,5 5,0 2,5 0,0 EBITDA Energy Trencher Railway EBITDA 2018.H1 2019.H1 * The impact of IFRS 16 is around 1,8 M€ The EBITDA is positively impacted by the results of the TRS & Railways 2018.H1 segment. 2019.H1 2nd August 2019 15
Slide 16: 2019.H1 Financial Results
2019.H1 Financial Results Financial Information (€ mln) 2019.H1 2018 Net Working Capital 66,3 48,9 Non Current assets 67,2 67,3 Right of use - IFRS 16 18,2 0,0 Other Long Term assets/liabilities 4,6 4,8 Net Invested Capital 156,4 121,0 Net Financial Indebtness 94,1 77,7 Lease liability - IFRS 16 18,
Slide 17: Net Financial Position Evolution
Net Financial Position Evolution OPERATING NET FINANCIAL POSITION € mln 140 120 18,4 112,5 100 2,6 94,1 17,4 6,9 77,7 (10,5) 80 60 40 20 0 NFP OFCF NWC Capex Int.exp. NFP Right of NFP FY 2018 Net 2019.H1 Use* 2019.H1 * Impacted of IFRS 16 The positive operating free cash flow has been impacted by th
Slide 18: Net Financial Position Evolution
Net Financial Position Evolution OPERATING NET FINANCIAL POSITION € mln 140 120 112,5 112,5* 96,7 96,9 93,5 98,7 92,9 100 91,5 92,1 85,2 77,7 92,6 94,1 80 60 40 20 0 2016 1Q 2017 1H 2017 9M 2017 2017 1Q 2018 1H 2018 9M 2018 2018 1Q 2019 1H 2019 * From 1st January 2019, the new IFRS 16 has been intro
Slide 19: Index
Index > Corporate Strategy > 2019.H1 Results > 2019 Outlook 2nd August 2019 19
Slide 20: 2019.H2 Stringing business focus
2019.H2 Stringing business focus GREEN PRODUCT LINE NEW MARKET POSITIONING IN CHINA ✓ Zero emissions product line dedicated for urban area ✓ Tesmec New Technology antenna for green & digital technologies in cooperation with local manufacturer ✓ Approach with marketing actions on specific areas: ✓ Hu
Slide 21: 2019.H2 Energy Automation business focus
2019.H2 Energy Automation business focus TOWARDS CYBERSECURITY REQUIREMENTS FOCUS ON ENGINEERING SOLUTIONS Focus on reliable solutions for secure communication and Development of an engineering solutions starting from M2M and M2H interface in order to provide stability of Tesmec ready-to-go telecomm
Slide 22: 2019.H2 Trencher business focus
2019.H2 Trencher business focus TOWARDS 5G – NEXT GENERATION OF BROADBAND FOCUS ON DIGITAL AND SUSTAINABLE WORKING CONNECTION PROCESSES The costs and speed of building new 5G networks depend to a The acceptance and use of Surface Miners in mining large extent on how quickly broadband providers can d
Slide 23: 2019.H2 Railway business focus
2019.H2 Railway business focus CERTIFIED & ENVIRONMENTALLY FRIENDLY INFRASTRUCTURES RELIABILITY & SAFETY METHODOLOGY • INTERNATIONALIZATION OF HIGH-QUALITY CENTRALIZED PLATFORM Unmanned diagnostic SOLUTIONS (software + devices) ▪ Automated operations Verification and validation process through ▪ Fle
Slide 24: 2019 outlook
2019 outlook MACRO MARKET + - TRENDS Digital Transformation & Industry 4.0 xxx Economy is slowing Telecom – 5G China – USA → commercial Energy transition Middle East, Iran → embargo Mines – new methodology ENERGY > New products: impact on revenues > New USA agreement: Transmission and Distribution >
Slide 25: Backlog
BACKLOG Euro/mln BACKLOG 31/03/2019 Sales Q2 2019 In take Q2 30/06/2019 28,0 28,4 11,6 12,0 Energy 68,0 72,8 Trencher 28,2 33,0 103,5 95,7 7,8 Railway 0,0 Total 199,5 47,6 45,0 196,9 2nd August 2019 25
Slide 26: Summary 2019.H1 Profit & Loss statement - Appendix A
Summary 2019.H1 Profit & Loss statement - Appendix A Delta vs Profit & Loss Account (Euro mln) 2019.H1 2018.H1 Delta % 2018 Net Revenues 97,5 91,1 6,4 7,0% Raw materials costs (-) (43,2) (39,3) (3,9) 10,0% Cost for services (-) (17,7) (15,4) (2,3) 14,9% Personnel Costs (-) (25,6) (24,4) (1,2) 5,0% O
Slide 27: Summary 2019.H1 Balance Sheet - Appendix B
Summary 2019.H1 Balance Sheet - Appendix B Balance Sheet (€ mln) 2019.H1 2018 Inventory 97,8 73,6 Accounts receivable 52,5 52,6 Accounts payable (-) (57,9) (54,4) Op. working capital 92,4 71,8 Other current assets (liabilities) (26,1) (22,9) Net working capital 66,3 48,9 Tangible assets 44,7 45,3 Ri
Slide 28: Disclaimer
Disclaimer The Manager responsible for preparing the company’s financial reports, Gianluca Casiraghi, 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
Slide 29: www.tesmec.com
www.tesmec.com 2nd August 2019