Tesmec S.p.a. · MIL:TES

Tesmec — Q1 2022 Earnings Presentation

38 slides from Tesmec's earnings presentation, May 10, 2022

  1. Slide 1: Integrated Solutions Provider – 2022.Q1 Results Presentation

    Integrated Solutions Provider 2022.Q1 Results Presentation

  2. Slide 2: Index

    Index 0. Tesmec Group at a glance 1. Key Market trends & Corporate strategy 2. 2022.Q1 Business highlights & Results 3. Outlook 4. ANNEX

  3. Slide 3: Tesmec Group at a glance

    € TESMEC Tesmec Group at a glance

  4. Slide 4: Integrated Solutions Provider for Energy and Data transport

    Integrated Solutions Provider for Energy and Data transport PURPOSE Consolidate the position as a solution provider in the reference markets driven by the trends of energy transition, digitalization, and sustainability. Vision Mission Value proposition Strategy To be a technological To operate in th

  5. Slide 5: Tesmec Group at a glance

    Tesmec Group at a glance ENERGY - STRINGING RAILWAY 70 +900 10 YEARS PEOPLE MANUFACTURING of experience PLANTS ▪ Solutions for power lines ▪ Catenary lines construction & construction & maintenance maintenance ▪ Advanced methodologies for ▪ Diagnostic vehicles and systems automating jobsite ▪ Integr

  6. Slide 6: Key Market trends & Corporate strategy

    1. Key Market trends & Corporate strategy

  7. Slide 7: Strategic ESG growth path

    Strategic ESG growth path SUSTAINABLE IMPLEMENTATION STIMULUS PACKAGE INNOVATION ACTIVITIES Generate positive impacts from Integration of the Sustainability the main stimulus packages in the 4.0 industry paradigm plan in the industrial plan key countries where the Group operates ▪ European Taxonomy:

  8. Slide 8: Sustainability as key strategic driver

    Sustainability as key strategic driver MARKET Work in progress - BUSINESS PLAN & SUSTAINABILITY PLAN DRIVERS STRATEGIC ACTIONS TARGETS SDGs DIGITALIZATION Increase the % of Solution provider & system Green & digital integrator solutions PEOPLE Business model Climate Change mitigation diversification

  9. Slide 9: European Taxonomy Regulation 2020/852 – Fiscal Year 2021

    European Taxonomy Regulation 2020/852 – Fiscal Year 2021 ANNEX I – Climate mitigation Revenues 3.Manufacturing 3.1 - Manufacture of renewable energy technologies 3.3 - Manufacture of low carbon technologies for transport 3.6 - Manufacture of other low carbon technologies 46% Eligible 54% Not eligibl

  10. Slide 10: Sustainability as key strategic driver

    Sustainability as key strategic driver PRIORITY TOPICS TASKS (in progress or delivered) ▪ Gap analysis on the TCDF (Task Force on Climate-related Financial Disclosures) Ethic and sustainable recommendations governance ▪ Strengthen of the sustainability team in order to properly face the increasing o

  11. Slide 11: Sustainability - Key Facts Q1 2022

    Sustainability - Key Facts Q1 2022 KEY FACTS • Focus on Ukrainian Emergency • Continuation of solidarity path with dedicated actions and planning of corporate volunteering • Promotion of employees welfare and wellbeing Awareness and Food Collection in all crowfunding Tesmec italian campaigns invitin

  12. Slide 12: Trencher – Key Facts Q1 2022

    Trencher – Key Facts Q1 2022 FOCUS ON / KEY FACTS • American Market Growth • GreenPose successful impact on Fibre market in France • MTR430 debut on French market • New Technologies Development American Market is TRT for GreenPose is experiencing a moment imposing its value in of considerable growth

  13. Slide 13: Energy Stringing - Key Facts Q1 2022

    Energy Stringing - Key Facts Q1 2022 KEY FACTS • Australian projects consolidation • Critical situation on steel supply chain • US & Middle East positive outlook Challenging effort from Exhibition IEEE 2022 Production Department in New Orleans to ship the first tranche confirms the market of Austral

  14. Slide 14: Energy Automation - Key Facts Q1 2022

    Energy Automation - Key Facts Q1 2022 KEY FACTS • Business consolidation in Italy and foreign countries • Continuous investments in the Substation Automation segment • Critical supply chain and significant postponement in delivery plans Business growth in the Kick-off of new italian market strategic

  15. Slide 15: Rail - Key Facts Q1 2022

    Rail - Key Facts Q1 2022 KEY FACTS • Tesmec continues its GROWTH on the INTERNATIONAL railway MARKET: EGYPT is a new milestone • EUROPEAN CERTIFICATION ACHIEVED – AMIS “Authorization for circulation”: the catenary railway bogie is allowed to travel at 140 km/h without line interruption • NEW GENERAT

  16. Slide 16: 2022.Q1 Business highlights & Results

    2. 2022.Q1 Business highlights & Results

  17. Slide 17: 2022.Q1 Closing

    2022.Q1 Closing (1) Revenues: Increase in sales & growth thanks to the Delta GROUP (€ mln) 2022.Q1 2021.Q1 Rail and Energy performance and the rebound of the vs.21 Trencher sector in the US market REVENUES (1) 55,9 49,0 14,1% (2) EBITDA: positive impact mainly by the Rail EBITDA (2) (3) 8,3 7,1 16,5

  18. Slide 18: 2022.Q1 Closing – Business Breakdown (€ mln)

    2022.Q1 Closing – Business Breakdown (€ mln) Energy > Increase in sales compared to 2021.Q1 lead by the Energy +17,2% industry trend 12,7 10,8 -6,8% > EBITDA: impacted by the utilities, raw material and freight 1,6 1,7 costs increase, with higher effect on the Stringing segment. Started the process

  19. Slide 19: Backlog

    BACKLOG Euro/mln BACKLOG 31/12/2021 Sales 2022.Q1 Intake 2022.Q1 31/03/2022 (2) (1) Of which Euro 79,0 (1) 98,9 98,5 million by Energy 11,8 11,4 Energy Automation and new opportunities in hi-tech content business 75,4 77,7 (2) Acquisition of new Trencher 31,8 34,1 orders during the first quarter of

  20. Slide 20: 2022.Q1 Revenues: sales spread over different geographical area

    2022.Q1 Revenues: sales spread over different geographical area REVENUE BY GEOGRAPHY 2022 REVENUE BY GEOGRAPHY 2021 BRIC BRIC &Others Italy &Others Italy North & 15,9% North & 19,3% 30,0% 21,5% Central Central America America 17,9% 18,0% Africa Europe 5,7% Europe Africa 23,4% Middle East 7,5% 22,7%

  21. Slide 21: 2022.Q1 Revenues: recurring vs non recurring

    2022.Q1 Revenues: recurring vs non recurring REVENUES RECURRING VS NON REVENUES RECURRING VS NON RECURRING 2022.Q1 RECURRING 2021.Q1 Non recurring Non recurring 47,9% 53,4% 29,1 M€ 26,8 M€ 26,1 11,3 M€ M€ 22,3 20,5M€ M€ Recurring Recurring 52,1% 46,6% Recurring: Rental, Projects, Spare Parts, Servic

  22. Slide 22: 2022.Q1 EBITDA

    2022.Q1 EBITDA € mln 9,0 1,1 8,3 8,0 7,1 (0,1) 0,2 7,0 6,0 5,0 4,0 3,0 2,0 1,0 0,0 2021.Q1 Energy Trencher Railway 2022.Q1 Impacted by the increase of costs of utilities, raw 2021.Q1 materials and freight, highly mitigated by the Rail 2022.Q1 performance 10 May 2022 22

  23. Slide 23: 2022.Q1 Financial Results

    2022.Q1 Financial Results Financial Information (€ mln) 2022.Q1 2021 Net Working Capital 82,2 76,5 Non Current assets 79,7 79,6 Right of use - IFRS 16/IAS 17 22,0 23,4 Other Long Term assets/liabilities 11,3 14,2 Net Invested Capital 195,2 193,7 Net Financial Indebtness 96,2 96,6 Lease liability - I

  24. Slide 24: 2022.Q1 Working Capital evolution

    2022.Q1 Working Capital evolution € mln 13,3 (6,7) 90 0,2 1,4 (2,5) 80 70 60 50 40 76,5 82,2 30 20 10 0 2021 Inventories WIP Trade Trade Other 2022.Q1 Net Working Receivables Payables current Net Working capital ass. / liab. capital € Mln 2022.Q1 2021.FY 2022.Q1 2021.FY Trade Receivables 67,7 54,4 9

  25. Slide 25: 2022.Q1 Net Financial Position Evolution

    2022.Q1 Net Financial Position Evolution • 1H IN LINE WITH QUARTELY DISTRIBUTION COMMENTED Net Financial Position WITH FY 2019 AND 1Q 130,0 RESULTS 121,0 24,5 119,4 120,0 23,2 110,0 3,1 - 9,1 5,7 100,0 96,5 96,2 90,0 80,0 70,0 60,0 2021 IFRS 16 Net debt NWC Capex Change of OFCF Net debt IFRS 16 2022

  26. Slide 26: 2022 Net Financial Position Evolution

    2022 Net Financial Position Evolution NET FINANCIAL POSITION € mln 143,0 137,8 140 123,8 10,2 115,6 118,0 11,0 117,7 118,5 116,5 121,0 119,4 120 112,5 112,5 119,2 104,4 5,8 6,4 6,7 8,6 6,6 114,7 100 105,0 5,9 99,8 95,5 96,9 94,6 96,5 96,2 97,8 80 92,6 94,1 82,3 60 40 20 0 NFP ante IFRS 16 IFRS 16 4s

  27. Slide 27: Outlook

    € TESMEC Outlook

  28. Slide 28: Outlook

    Outlook MACRO MAIN ACTIONS ECONOMIC SCENARIO to support the growth ▪ Inflation speed up ▪ Reverse the inflation on selling price of products and ▪ Increase of raw materials & commodities costs and services, negotiating the review of the medium-long freight & logistic costs contracts with public admi

  29. Slide 29: 2020-2023 Business Plan guidelines

    2020-2023 Business Plan guidelines 2019pf 2020pf 2021 2022 2023 Confirmed >> Significant performance of the Energy Automation segment; Stringing segment back to historical performances 275~ 290 M€ 199,6 172,8 194,3 >240,0 >> Focus on recurring revenues (rental & services) TURNOVER M€ M€ M€ M€ cagr19

  30. Slide 30: Trencher – Outlook 2022: Business Guidelines

    Trencher – Outlook 2022: Business Guidelines KEY FACTS • Big Market opportunities • PNRR & other measures in Europe • Stocks to guarantee business continuity • Electrification Recent developments PNRR in Italy and all around the World others growth are opening several measures passed in business opp

  31. Slide 31: Energy Stringing – Outlook 2022: Business Guidelines

    Energy Stringing – Outlook 2022: Business Guidelines OUTLOOK 2022 • Important re-lining & cable laying projects • R&D focus on new methodologies & green solutions • Supply Chain impact Focus on re-lining & Push on German transmission projects corridors with special in Middle East with solutions dedi

  32. Slide 32: Energy Automation - Outlook 2022: Business Guidelines

    Energy Automation - Outlook 2022 : Business Guidelines OUTLOOK 2022 • Consolidation of existing market • Focus on market expansion with new business models • New organization of service & after-sales activities • Significant challenges related to supply chain and delivery plans during the year Compl

  33. Slide 33: Rail - Outlook 2022: Business Guidelines

    Rail - Outlook 2022: Business Guidelines OUTLOOK 2022 Internationalization of the Business: • Participation to DOMESTIC & INTERNATIONAL TENDERS for an approx. value of € 150 mln • Development of GREEN SOLUTIONS with ZERO ENVIRONMENTAL impacts: bimodal & full electric vehicles • Diagnostic systems wi

  34. Slide 34: ANNEX

    € TESMEC ANNEX

  35. Slide 35: Summary 2022.Q1 Profit & Loss statement - Appendix A

    Summary 2022.Q1 Profit & Loss statement - Appendix A Profit & Loss Account (Euro mln) 2022.Q1 2021.Q1 Delta vs 2021 Delta % Net Revenues 55,9 49,0 6,9 14,1% Raw materials costs (-) (23,8) (21,5) (2,3) 10,8% Cost for services (-) (9,7) (6,8) (2,9) 42,7% Personnel Costs (-) (14,7) (13,3) (1,4) 10,3% O

  36. Slide 36: Summary 2022.Q1 Balance Sheet - Appendix B

    Summary 2022.Q1 Balance Sheet - Appendix B Balance Sheet (€ mln) 2022.Q1 2021 Inventory 82,7 81,3 Work in progress contracts 13,2 15,7 Accounts receivable 67,7 54,4 Accounts payable (-) (62,7) (56,0) Op. working capital 100,9 95,4 Other current assets (liabilities) (18,7) (18,9) Net working capital

  37. Slide 37: Disclaimer

    Disclaimer This presentation has been prepared by Tesmec S.p.A. (“Tesmec”, the “Company” or the “Group”). As used herein, “Presentation” means this document, any oral presentation, the question and answer session and any written or oral material discussed or distributed during the presentation. The

  38. Slide 38: www.tesmec.com

    ( TESMEC www.tesmec.com

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