Tesmec S.p.a. · MIL:TES
Tesmec — European Midcap Event 2015
36 slides from Tesmec's conference presentation, Jul 1, 2015
Slide 1: Partner in a changing world
European Midcap Event - Paris 1.7.15 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 600 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 6 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 business highlights: Energy
Main business highlights STRINGING EQUIPMENT Global Leadership ENERGY ENERGY AUTOMATION Italy, South America, USA, Stringing Russia + CIS, Turkey EXECUTION OF BIG ORDER FOR OVERHEAD POWER LINES CONSTRUCTION IN BRAZIL IN TIMING WITH THE TOUGH PROJECT SCHEDULE Automation NEW ORDERS OF ELECTRONIC DEVIC
Slide 11: Energy main projects
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: Entrepreneurs of efficiency: Railway
Entrepreneurs of efficiency RAILWAY CATENARY INSTALLATION MAINTENANCE POWERING & REPOWERING 12
Slide 13: Main business highlights: Railway
Main business highlights RAILWAY EQUIPMENT Italy, North Europa, USA, Russia, China RAILWAY TESTING PHASE FOR MAIN ITALIAN AND US PROJECTS. UP TO DATE RESULTS ARE VERY GOOD BUT STILL IN PROGRESS SO ACQUISITION OF NEW ORDERS HAS BEEN POSTPONED IN THE COMING QUARTERS ONGOING NEGOTIATIONS WITH KEY PLAYE
Slide 14: Railway main projects
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 15: Maximized attitude: Underground
Maximized attitude UNDERGROUND PIPELINES, TELECOM, BULK EXCAVATION, SPECIALIST DIGGING DRAINAGE SURFACE MINING SERVICE 15
Slide 16: Main business highlights: Trenchers
Main business highlights TRENCHERS North America, Middle East, TRENCHERS South Equatorial Africa, France GROWING SALES VOLUMES IN THE US, COMMERCIAL EFFORT CONCENTRATED ON NEW MARKET SEGMENT (INFRASTRUCTURES, WATER PROJECTS..) IMPORTANT WATER PIPELINE PROJECTS IN SOUTH AMERICA KEY INFRASTRUCTURAL PR
Slide 17: Trenchers main projects
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 18: Marais Acquisition - April 8, 2015
Marais Acquisition - April 8, 2015 The acquisition is of strategic importance for Tesmec in that it will allow the Group to use the technological skills developed by Marais as part of the service activities in telecommunications and laying of optical fibers and of underground electrical cables and t
Slide 19: Why France?
Why France? TRENCHERS Trenching technology is well known and appreciated especially INNOVATION HUB for fiber optic installation and energy cable laying TECHNOLOGICAL MARKET RAILWAY LINES The French railways sector is large and growing. SNCF has joined the French State, local and regional governments
Slide 20: Global Customer
Global Customer ENERGY RAILWAY TRENCHERS State Power Grids and grids contractors operating in the owners involved in design and development of construction or management railway operators; infrastructures; of electricity networks; contractors operating in the construction companies; subc
Slide 21: Human Values
306 7 7 Human Values 5 17 128 37 2 10 Tesmec identifies in honesty, membership and respect the values that distinguish our history. Figures as at March 31, 2015 We are resolute to continue building our future on human respect, acting with coherence and honesty towards colleagues, clients and supplie
Slide 22: 1Q2015 Economic and financial data
1Q2015 Economic and financial data
Slide 23: 1Q2015 Economic Results
1Q2015 Economic Results GROUP 1Q2015 1Q2014 Delta % Revenues 34,4 27,2 26,4% ENERGY 1Q20151Q2014Delta % EBITDA 4,4 3,2 37,5% Revenues 19,5 13,8 41,3% % on Revenues 13% 12% EBITDA 3,5 2,2 59,1% % on Revenues 17,9% 15,9% EBIT 2,4 1,6 50,0% % on Revenues 7% 6% TRENCHERS 1Q20151Q2014Delta % Profit Befor
Slide 24: Revenues by geography 1Q2014 vs 1Q2015
Revenues 1Q2014 1Q2015 INTERNATIONAL SCALE AND EXPOSURE TO GROWING ECONOMIES 10% 7% 24% 31% Italy 26% Europe 38% Middle East 4% BRICs and Oceania 5% 11% Africa 5% North-Central America 23% 16% 24
Slide 25: Foreign subsidiaries
Foreign subsidiaries TESMEC SERVICE (100%) SGE (100%) JV CONDUX-TESMEC (50%) Revenue 0.6 million € Revenue 0.6 million € Revenue 0.8 million € (-40% vs 1Q2014) First revenues of Automation business (-79% vs 1Q2014) * * JV TESMEC PENINSULA (49%) Revenue 1.7 million € (- 54% vs 1Q2014) TESMEC USA (100
Slide 26: Group Structure at March 31, 2015
Group Structure at March 31, 2015 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 BALKAN
Slide 27: EBITDA 1Q2015
EBITDA 1Q2015 12 9 7,2 6 (3,8) (1,0) (1,1) (0,1) 0 3 4,4 3,2 0 EBITDA Revenues Raw Cost for Personnel Equity Capitalized EBITDA 1Q2014 materials Services Costs Investments R&D 1Q2015 and other Expenses costs Increase both in absolute and in relative terms. 1Q2014 1Q2015 Different trend across Sector
Slide 28: 1Q2015 Financial Results
1Q2015 Financial Results Financial Information (Euro mln) 1Q2015 2014 Net Working Capital 70.9 57.9 Non Current assets 67.5 65.3 Other Long Term assets/liabilities (2.7) (1.7) Net Invested Capital 135.7 121.5 Net Financial Indebtness 80.9 73.4 Equity 54.8 48.1 Total Sources of Financing 135.7 121.5
Slide 29: Working Capital Evolution
Working Capital Evolution Working Capital Evolution 8,5 0,2 0,7 75 9,5 (5,9) 50 70,9 25 57,9 0 2014 Inventories WIP Trade Trade Other current 1Q2015 Net Working Receivables Payables ass. / liab. Net Working capital capital Days Days Euro Mln 1Q2015 2014 1Q2015 2014 Trade Receivables 49,8 41,3 130 12
Slide 30: Net Financial Position Evolution
Net Financial Position Evolution Operating Net Financial Position without figurative debt for Grassobbio premises 80 IAS17 70 IAS17 12,9 1,7 0,9 0,9 18,6 60 18,9 50 40 8,6 30 54,5 62,3 20 10 0 NFP OFCF NWC Other Int.exp. Taxes NFP FY 2014 capex Net net 1Q2015 NFP increase has been mainly influenced
Slide 31: TESMEC TF 6% AP21 EUR
TESMEC TF 6% AP21 EUR CERVED GROUP - CLASSES OF RISK Tesmec has been assigned a solicited rating by Cerved Group on March 19, 2015 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 32: Order Book 1Q2015
ENERGY Order Book 1Q2015 € mln TRENCHERS 45,2 40,5 45 € mln 30 30 27,0 24,8 19,5 14,8 15 14,3 12,1 15 0 Order 1Q2015 Order Order book Revenues Intake book FY 2014 FY 2015 0 Order book 1Q2015 Order Order book FY2014 Revenues Intake FY2015 RAILWAY € mln 10 Backlog Trend 100 24,8 5,9 5,8 80 62,1 52,7 5
Slide 33: Outlook 2015
Outlook 2015 Revenues Euro 45% CONFIRMATION OF THE GROWTH IN ENERGY AUTOMATION BUSINESS 55% USD NORMALIZATION OF RESULTS IN THE RAILWAY SECTOR THANKS TO THE FINALIZATION OF PROJECTS IN THE SECOND HALF OF THE YEAR STRATEGIC CHOICE TO INCREASE THE PRESENCE IN MARKET SEGMENTS SUCH Operating Costs AS WA
Slide 34: Summary 1Q2015 Profit & Loss statement
Summary 1Q2015 Profit & Loss statement Delta vs Profit & Loss Account (€ mln) 1Q2015 1Q2014 Delta % 2014 Net Revenues 34,4 27,2 7,2 26,4% Raw materials costs (-) (17,7) (13,9) (3,8) 28% Cost for services (-) (5,7) (4,8) (0,9) 19% Personnel Costs (-) (7,4) (6,3) (1,1) 17% Other operating revenues/cos
Slide 35: Summary 1Q2015 Balance Sheet
Summary 1Q2015 Balance Sheet Balance Sheet (€ mln) 1Q2015 2014 Inventory 64,8 55,4 W ork in progress contracts 5,4 5,2 Accounts receivable 49,8 41,3 Accounts payable (-) (40,1) (34,2) Op. working capital 79,9 67,7 Other current assets (liabilities) (9,0) (9,8) Net working capital 70,9 57,9 Tangible
Slide 36: 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