Trevi Finanziaria Industriale S.p.a. · MIL:TFIN
Trevi Finanziaria Industriale — Investor Access Event – October 9th, 2023
43 slides from Trevi Finanziaria Industriale's conference presentation, Oct 9, 2023
Slide 1: Investor Access Event – October 9th, 2023
| Investor Access Event – October 9th, 2023 Salons Hoche – Paris – 9 av Hoche
Slide 2: A team of experienced leaders
A team of experienced leaders Professional management team, with recognised experience in the sector, together with new corporate governance and projects management practices will lead to a radical improvement of group core business and overall performance Giuseppe Caselli Massimo Sala 0 Group CEO G
Slide 3: Agenda
Agenda I. Trevi Group Overview II. Investment Highlights III.1H23 Group Results & Latest Updates IV. Business Plan 2022-2026 V. ESG Appendix
Slide 4: I. Trevi Group Overview
I. Trevi Group Overview
Slide 5: Shareholder structure (September 2023)
Shareholder structure (September 2023) Main shareholders Shareholders by type 21.3% 24% 41% Others 45.6% 19.9% 26% 5.0% 8.2% 9% Kerdos CDPE + Polaris Institutional Investors Financial Institutions Retail & Others 5
Slide 6: Trevi Group at a glance
Trevi Group at a glance Trevi Finanziaria S.p.A. 77% Group Revenues FY22 23% Group Revenues FY22 Underground engineering Machine manufacturing Two BRIDGE INDUSTRIAL DAMS & LEVEES MARINE WORKS & CAUSEWAYS & CIVIL BUILDINGS divisions PILING RIGS CFA RIGS CRANES MICRODRILLING SUBWAYS, SPECIAL ENVIRONME
Slide 7: Trevi Group 65 years of iconic projects
Trevi Group 65 years of iconic projects 7
Slide 8: II. Investment Highlights
TREWI|Group . Il. Investment HI
Slide 9: Investment Highlights
Investment Highlights 1 Leadership in a highly specialised niche market 2 Industry with significant growth potential 3 Diversified geographic footprint 4 Integrated business model 5 Limited business risk profile 9
Slide 10: Leadership in a highly specialised niche market
1 Leadership in a highly specialised niche market Strong market positioning … … with a solid track-record in complex projects Revenues 2022 (€bn) of main competitors1 in deep foundation sector Worldwide Italy 3.5 2.3 0.9 0.5 Peer 1 Peer 2 Peer 3 Trevi Group Long term >65 relationships with Recognise
Slide 11: Industry with significant growth potential
2 Industry with significant growth potential Global infrastructure output value ($bn) and growth (%) Key macro trends by Region Roads Electricity and Power Railways Other infrastructure Water and Sewerage Total (%change) Asia-Pacific - fast growing regions in 2023 will be South Asia and 5,000 South-
Slide 12: Diversified geographic footprint
3 Diversified geographic footprint 2022 Group revenues distribution: €569 m Critical win factors Customer proximity 7% Europe Time to market 15% 9% 30% North America Middle-East & Italy Exposure to international and Asia domestic market (PNRR1) 2022 revenues: >80% in low-risk countries 14% 4% Africa
Slide 13: Integrated business model enhances synergies between Divisions
4 Integrated business model enhances synergies between Divisions A business model that thanks to the continuous exchange between technological and process innovation strengthens its leadership in the reference sectors, develops innovations and creates competitive advantage Specialist in deep FOUNDAT
Slide 14: Trevi Division: strategic pillars & key strengths
4 Trevi Division: strategic pillars & key strengths Key figures FY22 Strategic Pillars Key Strenghts €438 m Revenues ▪ Geographic focalisation on countries with ▪ Expertise recognized in the design and growth, margins & risk profile consistent with execution of geotechnical works, even Trevi positio
Slide 15: Soilmec Division: strategic pillars & key strengths
4 Soilmec Division: strategic pillars & key strengths Key figures FY22 Strategic Pillars Key Strenghts €132 m Revenues ▪ Focus on core products such as rotary ▪ Recognised capacity in product and hydromill innovation (such as Blue Tech Line with high ▪ High end product shift concentrate efficiency,
Slide 16: Limited business risk profile | 1
5 Limited business risk profile | 1 I Lower claims and shorter duration II Better payment dynamics III Early stage Low number of claims with respect to Improved payment dynamics as a Compared to a general contractor with general contractors result of contracts’ structure in terms of long and large c
Slide 17: Limited business risk profile | 2
5 Limited business risk profile | 2 Lower average contract size and raw Limited exposure to residential IV High Profitability V VI material inflation risk sector & limited competition on price Trevi’s high level of specialisation Being a specialized contractor Trevi’s Trevi has less than 10% exposur
Slide 18: III. 1H23 Group Results & Latest Updates
III. 1H23 Group Results & Latest Updates
Slide 19: Significant recovery on sales & margins, improved financial position
Significant recovery on sales & margins, improved financial position Revenues (€m) REC. EBITDA (€m) EBIT (€m) 623.2 570.7 491.3 494.6 64.5 59.4 20.1 20.3 50.2 49.6 0.5 236.1 280.3 32.5 23.1 -5.6 -0.08 -36.9 FY19 FY20 FY21 FY22 1H22 1H23 FY19 FY20 FY21 FY22 1H22 1H23 FY19 FY20 FY21 FY22 1H22 1H23 417
Slide 20: Trevi Group strong revenues performance by Divisions
Trevi Group strong revenues performance by Divisions Revenues (€m) Comments 18.7% Trevi Division revenues up €52.7 m 1H/1H underpinned by increased volumes in all 280.3 geographies, except for Africa where some major projects were completed. Middle East, 57.3 United States and Europe outperformed in
Slide 21: Group revenues evolution with worldwide geographic footprint
Significant Group revenues evolution combined with strong worldwide geographic footprint Group revenues evolution (€m) Italy €27.2 m (+13% 1H/1H) Highest revenues since 2020 Europe (ex-Italy) €10.3 m (-63% 1H/1H) 280.3 238.4 216.5 236.1 USA & Canada €45.1 m (+11.6% 1H/1H) 1H20 1H21 1H22 1H23 Latam €
Slide 22: Excellent outlook for Order Intake since the start of the year
Excellent outlook for Order Intake since the start of the year Quarterly order intake evolution over 18 months (€m) Comments In Jan-Jun 2023 Trevi Group was awarded orders and contracts for a total of €310.3 m 237.0 213.3 181.3 In Italy, Trevi has recently signed a 154.3 129.0 contract for the execu
Slide 23: Order backlog since the start of the year
Order backlog since the start of the year Trevi Group backlog evolution over the years (€m) Comments At end of June 2023 Trevi Group order backlog amounted to €586 m, remaining stable compared to end of 2022 level, the highest 587.0 586.0 level since 2019 455.0 374.0 317.0 Trevi Group order backlog
Slide 24: Trevi Group has streamlined personnel costs efficiency as planned
Trevi Group has streamlined personnel costs efficiency as planned First half FTE costs up by 2.3% compared to revenues per FTE up by 13.2% 1H/1H, showing strong efficiency efforts Workforce by role (#) Workforce by business Division (#) Workforce by geography +4.7% growth €76 k Revenues €86 k +13.2%
Slide 25: Trevi Group profitability supported by a sound mix of price and volume
Trevi Group profitability supported by a sound mix of price and volume Bridge Recurring EBITDA (€m) Comments Recurring EBITDA increased by 40.8% compared to 1H 2022 boosted by a mix of volume (+€4.3 m) and price (+€5.1 m) effects Trevi Division €36.8 m FTE efficiencies, undertaken by all Divisions,
Slide 26: Total net profit highly positive mainly thanks to improved operating margins
Total net profit highly positive mainly thanks to improved operating margins and capital increase impact Recurring EBITDA to Total Net Profit in 1H23 (€m) Comments Provisions & impairment mostly impacted by an extraordinary reversal of the contractual risk fund of €7 m in Trevi S.p.A. Capital increa
Slide 27: Group net working capital evolution
Group net working capital evolution with tangible improvement on trade receivables and inventories Net working capital1 (€m) Comments -5.8% Change in inventories & WIP decreased by c. €18 m mainly because of collection of Work-In-Progress existing at the end of 2022 Trade receivables decreased by c.
Slide 28: Trevi Group net cash flow evolution
Trevi Group net cash flow evolution Managerial net cash flow1 (€m) Comments IFRS16 effect of €4.9 m related to long term rents Change in other assets/liabilities stemmed from tax payment, reduction of advance payments to customers and others Capex higher by €7.3 m 1H/1H, referred to investments in e
Slide 29: Group net debt reduction driven by restructuring agreement
Group net debt reduction driven by restructuring agreement and positive working capital dynamics Breakdown of Net Financial Position Comments as of 31-Dec-22 as of 30-Jun-23 Average 2% spread on cost of M/L term Cash & Liquidity €95.0 m €77.4 m Euribor 6M debt with banks Other current €17.5 m €17.5
Slide 30: Trevi Division – Specialist in deep foundations and geotechnical works
Trevi Division – Specialist in deep foundations and geotechnical works Revenues and Recurring EBITDA (€m) Comments EBTDA margin Revenues strongly up by €52.7 m 1H/1H thanks to the increased volumes in Middle East (mainly in Saudi Arabia and Dubai), 13.2% 236.8 15.5% United States and Italy. Projects
Slide 31: Soilmec Division – Focused on high-value products
Soilmec Division – Focused on high-value products developed directly “on the field” Revenues and Recurring EBITDA (€m) Comments EBTDA margin Revenues were up by €1.4 m (+2.5%) driven by a strong increase of machines sold in Far East (especially Australia), more than 55.9 1.6% 57.3 0.1% offsetting a
Slide 32: IV. Business Plan 2022-2026
TREW|IGroup IV. Business Plan 2
Slide 33: 2023 Group guidance and key figures
2023 Group guidance and key figures 1H23 FY23E FY26BP ▪ Expected revenue growth Revenues € 280.3 m €565-585 m in the range of 0-3% €662 m ▪ Expected EBITDA margin Recurring EBITDA €32.5 m €68-72 m at approximately 12% €89 m ▪ Expected leverage ratio in Net debt €187.1 m €200-230 m the range of 2.9x-
Slide 34: Business Plan’s targets 2022-2026
Business Plan’s targets 2022-2026 Revenues (€m) | YoY growth (%)* EBITDA (€m) | YoY growth (%)* 2% 8.6% 13.6% 6.6% 4.1% 4.6% 4.7% 10% 10.7% 13.3% 12.6% 13.6% 13.4% 13.4% 89 85 662 82 +4.6% 632 604 569 580 73 +10.3% 544 501 64 58 42 2021A 2022F 2022A 2023F 2024F 2025F 2026F 2021A 2022F 2022A 2023F 20
Slide 35: Main Business Plan Initiatives
Main Business Plan Initiatives Organic initiatives 2023 – 2026 Beyond 2026 Acquisitions & alliances Focus on Middle-East, Far-East and USA Unlocking further growth potential through bolt-on M&A as organic growth Keep the footprint in regions with established presence (EU, Africa, South America), can
Slide 36: V. ESG
V. ESG
Slide 37: Trevi Group Sustainability Journey
Trevi Group Sustainability Journey Attention to environment, enhancement and increased safety of human capital and workforce and process quality are fundamental and essential elements of Trevi Group and the future development of its business Sustainability Disclosure Sustainability Plan External Rec
Slide 38: HSEQ Policy adopted by the Group
HSEQ* Policy adopted by the Group aims to avoid risks and costs of non-compliance The Group invests in health, safety and environmental protection, creating more sustainable workplaces and a more attractive working environment, limiting the risks of suspension/interruption/damage, even temporary, of
Slide 39: Appendix
Appendix
Slide 40: Trevi Group – Consolidated Income Statement
Trevi Group – Consolidated Income Statement (In thousand of Euro) 1H 2023 1H 2022 Change % Change TOTAL REVENUE 280,266 236,125 44,141 18.7% Change in finished goods and work in progress 5,688 7,078 (1,390) Internal work capitalised 10,869 4,234 6,635 PRODUCTION REVENUE 296,823 247,437 49,386 20.0%
Slide 41: Trevi Group – Consolidated Reclassified Balance Sheet
Trevi Group – Consolidated Reclassified Balance Sheet (In thousand of Euro) 30/06/2023 31/12/2022 Change A) Non-current assets - Property, plant and equipment 170,988 164,602 6,386 - Intangible assets 18,626 17,483 1,143 - Financial assets - investments 529 903 (374) 190,143 182,988 7,155 B) Net wor
Slide 42: Trevi Group – Consolidated Cash Flow Statement
Trevi Group – Consolidated Cash Flow Statement (In thousand of Euro) 1H 2023 1H 2022 Change EBITDA recurring (including IFRS 16 effect) 32.5 23.1 9.4 IFRS 16 Effect (4.9) (3.5) (1.4) Taxes (payed) (1.5) (3.1) 1.6 Delta Net Working Capital (3.8) (15.4) 11.5 Trade receivables third-parties 37.2 6.6 30
Slide 43: Disclaimer
Disclaimer This document has been prepared by and is the sole responsibility of Trevi Finanziaria Industriale S.p.A. (the “Company”) for the sole purpose described herein. The information contained herein does not contain or constitute an offer of securities for sale, or solicitation of an offer to
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