Slide 1: 2019 Results Presentation
Stringing Energy Automation Integrated Solutions Provider Railway Trencher 2019 Results Presentation www.tesmec.com 13 March 2020
Slide 2: Index
Index > Corporate Strategy > 2019 Business highlights and Results > Shareholder loan > Outlook 2020 13 March 2020 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: Combine operational data in the cloud and apply advanced analytics
To be for Railways, Energy & Trenchers COMBINE OPERATIONAL DATA IN THE CLOUD AND APPLY ADVANCED ANALYTICS Artificial Intelligence Cloud 13 March 2020 5
Slide 6: Towards a carbon neutral factory
Towards a carbon neutral factory ✓ Grassobbio, Patrica and Monopoli plants are fed by solar panels ✓ All Italian plants are certified according to ISO 9001-14001-45001 ✓ The whole production process takes care of waste and complies with recycling regulations 13 March 2020 6
Slide 7: Tesmec Green solutions
Tesmec Green solutions STRINGING ENERGY AUTOMATION > FULL ELECTRIC MACHINE > Custom solutions for Smart Grid management Zero emissions underground cable laying > Energy consumption optimization through carbon footprint equipment Focus on sustainable RAILWAY technology TRENCHER SUPER GRID AND SMART G
Slide 8: Factories
Factories TRS RAIL STR AUT Tesmec SPA Grassobbio Tesmec SPA Endine Tesmec SPA Sirone (precision machining work) Marais Durtal (FR) Tesmec USA Alvarado (USA) Tesmec Rail Monopoli Tesmec Automation Patrica Tesmec Automation Padova-Fidenza 13 March 2020 8
Slide 9: Index
Index > Corporate Strategy > 2019 Business highlights and Results > Shareholder loan > Outlook 2020 13 March 2020 9
Slide 10: 2019 Stringing business highlights
2019 Stringing business highlights Innovative Solution for Over Head Power Digital Product line Lines Refurbishment Full digital equipment marketing and sales During 2°H start of sales in North America of the new Technological gap vs low cost competitors technology for reconductoring operations: gre
Slide 11: 2019 Energy Automation business highlights
2019 Energy Automation business highlights Enel Market: diversification of the product portfolio Russia: market expansion for approved solution Continues improvement through Increased deployment through heavy sales cybersecurity integration plan and invasive technical support Italian Market: acceler
Slide 12: 2019 Trencher business highlights
2019 Trencher business highlights Clean & Fast Solutions Surface Mining Business Cleanfast at work Enter the Bauxite Mining in Ivory Coast Main targets USA and Europe (Lizetta Project) EVO series developments Renewables Projects EVO series launch Wind and Solar Farms Productivity and efficiency incr
Slide 13: 2019 Railway business highlights
2019 Railway business highlights Innovative FAST & SAFE methodology In Czech Republic with a new contract Certified solutions with remote control system for High technological level reached by our railway catenary maintenance operations in Italy & France systems and quality of Tesmec know-how. Diagn
Slide 14: 2019 Closing
2019 Closing GROUP (€ mln) 2019 2018 Delta % (1) + 1,7% at constant currencies REVENUES 200,7 194,6 3,1% (1) (2) The EBITDA has been growing due to EBITDA (2) (3) 27,4 18,9 45,1% management actions rolled out after the results % on Revenues 13,7% 9,7% of end 2018 and positive mix of the 2019 sales.
Slide 15: 2019 Closing
2019 Closing ENERGY 2019 2018 Delta % Revenues 44,2 41,7 6,0% > Energy Automation Growth EBITDA* 5,6 4,8 19,3% > Driven by European Market % on Revenues 12,6% 11,5% * EBITDA ante IFRS 16 would have been 5,1 M€ TRENCHERS 2019 2018 Delta % > USA Market Growth Revenues 125,3 125,4 -0,1% > European Mark
Slide 16: 2019 results: 9M, Q4 and full year
2019 Euro/mln 9M Q4 FY 2019 2018 Var. 2019 2018 Var. 2019 2018 Var. REVENUES 144,2 140,5 2,6% 56,5 54,1 4,4% 200,7 194,6 3,1% EBITDA 14,7 12,2 8,9 6,7 23,6 18,9 ante IFRS 16 10,2% 8,7% 20,5% 15,8% 12,4% 32,8% 11,8% 9,7% 24,9% EBITDA 17,4 12,2 10,0 6,7 27,4 18,9 post IFRS 16 42,2% 52,2% 45,1% 12,1% 8
Slide 17: 2019 Revenues: sales spread over different geographical area
2019 Revenues: sales spread over different geographical area INTERNATIONAL SCALE AND EXPOSURE TO GROWING ECONOMIES JOINT WITH A GROWING IMPORTANCE OF THE ITALIAN MARKET 2019 2018 20% 17% 24% 25% 5% 9% 20% 18% 20% 26% 7% 9% ITALY: impact of railway business & automation Italy Europe Middle East USA&E
Slide 18: 2019 Differences in Exchange
2019 Differences in Exchange Euro mln DIFFERENCES IN EXCHANGE 2,5 1,7 1,5 0,8 0,5 0,2 -0,5 -1,5 -2,5 -3,5 -4,5 -5,5 (4,7) 2016 2017 2018 2019 GROUP (Euro mln) 2016 2017 2018 2019 Differences in Exchange 1,7 (4,7) 0,2 0,8 of which: Realised 0,2 (1,6) (0,2) (0,1) Unrealised 1,5 (3,1) 0,4 0,9 Differenc
Slide 19: 2019 EBITDA
2019 EBITDA € mln 30,0 1,1 27,4 6,7 25,0 18,9 0,8 20,0 15,0 10,0 5,0 0,0 2018 Energy Trencher Railway 2019 * The impact of IFRS 16 is around 3,8 M€ The EBITDA is positively impacted by the results of the all segments, 2018 mainly the trencher business due to the better efficiency and mix 2019 13 Mar
Slide 20: 2019 Financial Results
2019 Financial Results Financial Information (€ mln) 2019 2018 Net Working Capital 73,0 48,9 Non Current assets 66,8 67,3 Right of use - IFRS 16/IAS 17 20,1 0,0 Other Long Term assets/liabilities 4,2 4,8 Net Invested Capital 164,2 121,0 Net Financial Indebtness 98,5 77,7 Lease liability - IFRS 16/IA
Slide 21: Working Capital evolution
Working Capital evolution 80 15,3 (3,1) (0,7) 70 5,3 7,3 60 50 40 73,0 30 20 48,9 10 0 2018 Inventories WIP Trade Trade Other current 2019 Net Working Receivables Payables ass. / liab. Net Working capital capital Days Days € Mln 2019.FY 2018.FY 2019.FY 2018.FY Trade Receivables 67,9 52,6 106 97 Inve
Slide 22: Net Financial Position Evolution
Net Financial Position Evolution OPERATING NET FINANCIAL POSITION € mln 140 120 18,2 118,0 5,7 99,8 100 14,3 77,7 24,1 80 (22,0) 60 40 20 0 NFP OFCF NWC Capex Int.exp. NFP Right of NFP 2018 Net 2019 Use* 2019 * Impacted of IFRS 16 The positive operating free cash flow has been impacted by the increa
Slide 23: Net Financial Position Evolution
Net Financial Position Evolution OPERATING NET FINANCIAL POSITION € mln 140 120 98,7 112,5 112,5 115,6 118,0* 96,7 96,9 91,5 93,5 92,1 92,9 100 85,2 77,7 94,1 99,8 80 92,6 97,8 60 40 20 0 2016 1Q 1H 9M 2017 1Q 1H 9M 2018 1Q 1H 9M 2019 2017 2017 2017 2018 2018 2018 2019 2019 2019 * From 1st January 2
Slide 24: Index
Index > Corporate Strategy > 2019 Business highlights and Results > Shareholder loan > Outlook 2020 13 March 2020 24
Slide 25: Shareholder loan
Shareholder loan Shareholder loan with related parties: LOAN xxx - TTC S.r.l., majority shareholder of Tesmec - MTS S.p.A., indirectly controlled by TTC and shareholder of Tesmec AMOUNT: maximum of Euro 7 million DETAILS DURATION: 36 months ANNUAL INTEREST RATE: 2% Providing the Tesmec Group with a
Slide 26: Index
Index > Corporate Strategy > 2019 Business highlights and Results > Shareholder loan > Outlook 2020 13 March 2020 26
Slide 27: 2020 Stringing outlook
2020 Stringing outlook Europe USA New market approach: closer relationship with the main Power Lines Refurbishment and renewable interconnection players of transmission and distribution sectors thanks new Entry into the growing Distribution OH sector product lines (digital equipment, full electric m
Slide 28: 2020 Energy Automation outlook
2020 Energy Automation outlook Enel Market: innovative technologies available Russia: new markets, new opportunities Rapid diversification through Presence on the market as a well-known availability of new solutions competitive Player Italy: Growth in the Transmission market Foreign Markets: new ten
Slide 29: 2020 Trencher outlook
2020 Trencher outlook 5G & Fiber Business Digital and connected system CleanFast at work Trencher remotely controlled Solutions for fiber optic networks installation Available for all TrenchTronic equipped machines West Africa markets development Focus on services & customer satisfaction Bauxite min
Slide 30: 2020 Railway outlook
2020 Railway outlook PUSH our INTERNATIONALIZATION sales CONSOLIDATION of the investment -France -North-East Europe -USA Centre of excellence for the development of maintenance & -Czeck Republic -Central Asia diagnostic vehicles with integrated systems CONNECTED VEHICLES CENTRALIZED PLATFORM -Certif
Slide 31: 2020 outlook
2020 outlook The national and international scenario is characterized by the spread of Coronavirus and COVID-19 by the consequent restrictive measures for its containment, put in place by the public xxx authorities of the countries concerned. Due to these circumstances, extraordinary in nature and e
Slide 32: Backlog
BACKLOG Euro/mln BACKLOG 30/09/2019 Sales Q4 2019 In take Q4 31/12/2019 30,4 34,0 16,4 Energy 12,8 70,9 65,1 Trencher 35,9 30,1 96,7 7,8 88,9 Railway 0,0 Total 198,0 56,5 46,5 188,0 13 March 2020 32
Slide 33: Summary 2019 Profit & Loss statement - Appendix A
Summary 2019 Profit & Loss statement - Appendix A Delta vs Profit & Loss Account (Euro mln) 2019 2018 Delta % 2018 Net Revenues 200,7 194,6 6,1 3,1% Raw materials costs (-) (88,0) (89,1) 1,0 -1,2% Cost for services (-) (35,4) (32,6) (2,8) 8,6% Personnel Costs (-) (52,6) (50,5) (2,1) 4,2% Other opera
Slide 34: Summary 2019 Balance Sheet - Appendix B
Summary 2019 Balance Sheet - Appendix B Balance Sheet (€ mln) 2019 2018 Inventory 69,9 62,6 Work in progress contracts 16,3 11,0 Accounts receivable 67,9 52,6 Accounts payable (-) (57,5) (54,4) Op. working capital 96,7 71,8 Other current assets (liabilities) (23,6) (22,9) Net working capital 73,0 48
Slide 35: Disclaimer
Disclaimer The Manager responsible for preparing the company’s financial reports, Marco Paredi, 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 accou