Slide 1: Integrated Solutions Provider - 2023 Results
Integrated Solutions Provider 2023 Results Grassobbio, March 8th 2024 8th March 2024 1
Slide 2: Table of Contents
TABLE OF CONTENTS 1. Tesmec Group at a glance 2. Opening remarks 3. 2023 Group Financials 4. 2024 Outlook 5. Annex 8th 8 March 2024 th March 2024 2
Slide 3: Tesmec Group at a glance
1. Tesmec Group at a glance 8th March 2024 3
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
Slide 5: Tesmec Group at a glance
TESMEC GROUP AT A GLANCE ENERGY - STRINGING RAILWAY 70 +1,000 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 ▪ Inte
Slide 6: Opening remarks
2. Opening remarks 8th March 2024 6
Slide 7: 2023 at a glance
2023 AT A GLANCE SALES SALES BY BU €M 252 (prior-year €M 245,2) Energy €M 68 EBITDA Trencher €M 137 €M 34, 13,5% €M (prior-year €M 35,2; 14,4%) 252 EBIT Rail €M 47 €M 11,1 (prior-year €M 13,1) NET RESULT SALES BY REGION €M (2,7) Europe (prior-year €M 7,9) €M 118 NFP YE North& Central America €M 153,
Slide 8: 2023 Highlights and Milestones
2023 HIGHLIGHTS Strengthening Middle East Energy market consolidation At Group level inventory local presence for Trenchers with Italian TSO and levels and increased cost of with Tesmec Saudi and significant steps forward in debt Tesmec Peninsula, formerly the SAS segment as associated companies Tre
Slide 9: Sustainability Path
SUSTAINABILITY PATH MARKET ESG MILESTONES FOCUS ON GUIDELINES SDGs DRIVERS COMMITMENTS R&D & Technologies Increase Green & ▪ EU Taxonomy Innovation & products Digital revenues alignment DIGITALIZATION & SAFETY Reduce ▪ Environmental impact Climate change Corporate emissions & of products & services
Slide 10: ESG Sustainable Innovation
ESG ENVIRONMENT SUSTAINABLE INNOVATION GOVERNANCE Achievement of Environmental Green & Digital technologies Non-Financial Statement Authorization “AUA” for TESMEC SPA Focus on R&D projects aimed at The Board of Directors of Tesmec Achievement of AUA - Autorizzazione design and development of innovat
Slide 11: ESG Sustainability Social
ESG SUSTAINABILITY AWARD SOCIAL SOCIAL WHP - Workplace Health Career paths and talent An important recognition of Promotion development Tesmec ability to drive sustainable and inclusive growth Participation in the WHP (Work and With the aim to fostered employer Health Programme) recommended branding
Slide 12: 2023 Taxonomy-Aligned KPI
2023 TAXONOMY-ALIGNED KPI TESMEC economic activities are eligible according the ANNEX I – Climate change mitigation: • 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 The
Slide 13: 2023 Group Financials & Key Metrics
3. 2023 Group Financials & Key Metrics 8th March 2024 13
Slide 14: 2023 Group Results
2023 GROUP RESULTS (€ mln) Income Statement 2023 2022 Δ vs.2022 RESULTS’ COMMENTARY REVENUES (1) 252 245 +2,7% (1) Revenues: +2,7% mainly driven by Energy and to a lower extent by Trencher EBITDA (2) 34,0 35,2 -3,4% Trenchers: important growth in ME and recovery in US (though both % on Revenues (2)
Slide 15: 2023 Group Results
2023 GROUP RESULTS (€ mln) Dec. 31, Dec. 31, RESULTS’ COMMENTARY Financial Information 2023 2022 • Inventory increase leading to higher Net Net Working Capital 86,8 80,6 Financial Indebtedness (excl. IFRS16) with of which: inventory 139,9 126,4 Free Cash Flow negative for -10,1€M (against higher inv
Slide 16: Trenchers: 2023 Facts & Figures
TRENCHERS: 2023 FACTS & FIGURES (€ mln) KEY FACTS 160 134,0 137,3 140 +2% • Business development and strengthening of the 120 activities in Middle East 100 +30% 80 +7,2% • Product development 60 +7,2% • Launch of new 400MCT, an extremely 15,4 versatile and flexible trencher featuring 40 13,4 11,3% 2
Slide 17: Trenchers: 2023 Facts & Figures
TRENCHERS: 2023 FACTS & FIGURES 400MCT New Technologies Elelectric range 8th March 2024 17
Slide 18: Rail: 2023 Facts & Figures
RAIL: 2023 FACTS & FIGURES (€ mln) KEY FACTS 60 53,0 46,9 • RFI - Italian Railways - Tender Awarded • Supply of 44 vehicles with full maintenance 40 -11% service for a total of 109€M • Fleet maintenance, engineering services and training for Tesmec multipurpose vehicles for a 14,0 total value of € 2
Slide 19: Rail: 2023 Facts & Figures
RAIL: 2023 FACTS & FIGURES Diagnostic vehicle obtained the AISM EU Certification ELECTRIC TRANSITION: Collaboration with ŠKODA GROUP ETCS, European Train Control System for interoperability in EU Italy - Award of the Tender of RFI 8th March 2024 19
Slide 20: Energy: 2023 Facts & Figures
ENERGY: 2023 FACTS & FIGURES (€ mln) KEY FACTS 80 Stringing 67,7 58,2 +15% 60 • New product development efforts to enhance 40 the Tools segment, address emerging market 10,0 demands and improving quality +30% 7,8 14,8% 20 13,4% +22% • Launch of Teo CTRL Room, the first service 0 within Tesmec new di
Slide 21: Energy: 2023 Facts & Figures - Automation and Stringing
ENERGY: 2023 FACTS & FIGURES AUTOMATION STRINGING Novel solution for stringing tank tracks First relevant assigments for ASAT and SAS systems Launch of TEO New integrated protection of the primary substation 8th March 2024 21
Slide 22: 2023 YE Backlog
2023YE BACKLOG (€ mln) Backlog at 31/12/2023 31/12/2021: 284,2 Backlog 31/12/2022: 406,2 evolution 31/12/2023: 402,2 250 Energy 200 TOTAL 121 Rail 402 210 €M 150 Trencher 71 100 50 • Long- term backlog in Automation and Rail • Energy backlog including Automation’s (103€M) and Stringing’s (18€M) 0 En
Slide 23: FY 2023: Revenues by Geography
FY 2023: REVENUES BY GEOGRAPHY Africa; 5% Africa; 5% Middle East; 14% Europe; 27% Middle East; Europe; 19% 12% 2023: 2022: BRIC & Others; 252 245 18% €M €M BRIC & Others; 16% Italy; 20% North & Italy; 29% North & Central Central America; 19% America; 16% 2022 2023 67,0 72,0 • ITALY: Railway negative
Slide 24: FY 2023: Recurring vs Non-Recurring Revenues
FY 2023: “RECURRING” VS “NON-RECURRING” REVENUES Non recurring Recurring Non recurring Recurring 49,83% 50,17% 44,40% 55,60% 77 €M 125,5 2023: 106,1 139,1 11,3 M€ 2022: 96,5 €M 126,4 20,5 M€ €M 252 €M €M €M €M 245 €M • Recurring: Rental, Projects, Spare Parts, Services (maintenance, revamping & refu
Slide 25: FY 2023: EBITDA Evolution by BU
FY 2023: EBITDA EVOLUTION BY BU (€ mln) 50 40 +2,0 (5,4) +2,2 35,2 Better sales mix, in Improved mix 34,0 30 spite of one-offs, Older job-orders and Automation ForEx and higher under completion contribution business yielding lower 20 developments costs margins, with rebound awaited in 2024 thanks to
Slide 26: Net Financial Position Evolution and Free Cash Flow
2023.9M NET FINANCIAL POSITION EVOLUTION AND FREE CASH FLOW (€ mln) 160 39,2 140 24,1 153,5 120 12,6* 16,4* 128,4 6,2 100 128,4 Increased 114,3 stock levels for 80 short-term expected sales -3,8€M net FCF excl. 60 ΔNWC and IFRS16 40 20 0 31-dic-22 IFRS 16 Net debt NWC OFCF CAPEX Net debt IFRS 16 31-
Slide 27: 2023: Net Working Capital Evolution
2023: NET WORKING CAPITAL EVOLUTION 100 4,3 10,6 9,2 12,0 8,7 80 Linked 86,8 80,6 Increased to Rail long Linked to cash- stock levels for term contracts in from clients Increased in Other 60 backlog and in 2023* coeherence assets/liabilities* short-term with Δ stocks sales 40 20 0 31/12/2022 Invento
Slide 28: Outlook
8th March 2024 TESMEC Outlook 28
Slide 29: 2020-2023 Equity Story and 2024 Outlook
2020-2023 EQUITY STORY and 2024 OUTLOOK 2024 Mln€ 2020PF 2021 2022 2023 «Value over volumes» • Strategic continuity and selective approach Growth vs TURNOVER 172,8 194,3 245,2 252 • Intensive go-to-market to 2023 higher support fully integrated than 10% digitalized sustainable business models • Sale
Slide 30: Trencher: 2024 Business Guidelines
TRENCHER: 2024 BUSINESS GUIDELINES • Strategically introduce the business to the • Development of a new modular platform used machinery market for optic fiber machines Tesmec is dedicated to The platform will be improving the worldwide showcased in two used machinery business, distinct configuration
Slide 31: Energy - Stringing: 2024 Business Guidelines
ENERGY - STRINGING: 2024 BUSINESS GUIDELINES • Implementing a new sales strategy that • New methodology to effectively manage begins by targeting premium countries, products development while improving while leveraging strong relationships with efficiency utilities to enhance our market position Des
Slide 32: Energy - Automation: 2024 Business Guidelines
ENERGY - AUTOMATION: 2024 BUSINESS GUIDELINES • Integrated market approach combining preservation of consolidated channels with development of new strategic partnerships abroad Current business Successful growth strategy optimization in the in the substation automation domestic market and market wit
Slide 33: Rail: 2024 Business Guidelines
RAIL: 2024 BUSINESS GUIDELINES • Growing Internationalization • Efficient industrial organization ▪ Meetings with Key European Railway ▪ Reorganization of the Authorities (1H2024) manufacturing process ▪ Go to market: sales network acceleration with live demos ▪ Maintenance activities for the ▪ Atte
Slide 34: Annex
8th March 2024 TESMEC Annex 34
Slide 35: Appendix A: 2023 Summary Profit & Loss Statement
APPENDIX A: 2023 SUMMARY PROFIT & LOSS STATEMENT Profit & Loss Account (Euro mln) 2023 2022 Delta vs 2022 Delta % Net Revenues 251,9 245,2 6,7 2,7% Raw materials costs (-) (108,8) (97,4) (11,3) 11,6% Cost for services (-) (52,2) (53,8) 1,6 -2,9% Personnel Costs (-) (63,3) (60,7) (2,6) 4,3% Other ope
Slide 36: Appendix B: Summary 2023 Balance Sheet
APPENDIX B: SUMMARY 2023 BALANCE SHEET Balance Sheet (€ mln) 2023 2022 Inventory 110,6 101,4 Work in progress contracts 29,2 25,0 Accounts receivable 45,6 56,2 Accounts payable (-) (82,8) (74,2) Op. working capital 102,7 108,4 Other current assets (liabilities) (15,8) (27,8) Net working capital 86,8
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
Slide 38: www.tesmec.com
www.tesmec.com 8th March 2024 38