Slide 1: Tesmec Group 1H 2012 Results
Tesmec Group 1H 2012 Results Analyst Presentation, 3 August 2012 Corporate
Slide 2: Agenda
Agenda First Half 2012 – Key facts A.Caccia Dominioni, CEO Group structure overview A.Caccia Dominioni, CEO International Strategy Follow up A.Caccia Dominioni, CEO 1H 2012 - Main business highlights Stringing P.Mosconi, GM 1H 2012 – Main business highlights Trencher A.Caccia Dominioni, CE
Slide 3: First Half 2012 Key Facts
First Half 2012 Key Facts •Ordinary Shareholders’ Meeting of Tesmec S.p.A. approved the purchase plan of treasury shares and appointed a new independent director •Acquisition of 40% stake of Bertel company in order Jan 2012 to enlarge Tesmec offering in the High Voltage grid management •Signature of
Slide 4: Group Structure at June 30, 2012
Group Structure at June 30,2012 NEW COMPANY CREATED/PURCHASED IN 2012 Tesmec S.p.A. Existing Company at 1.1.2012 Tesmec Tesmec Tesmec Tesmec USA Inc Rus S.A. Balkani (75%)* (100%) (100%) EAD (100%) Effect on Fully EBITDA Tesmec Service S.r.l. Consolidated and Pre-Tax (100%) Profit I-Light and AMC2 O
Slide 5: International strategy follow up
International strategy follow up • USA: both Tesmec USA (trenchers) and Codux T. (stringing) posted better results in 1H 2012 with respect to 1H 2011 and are expected to improve performance in 2H. • Middle East: de-stocking in the area led to receipts of more than 12 mm usd new orders at the end of
Slide 6: Main business highlights in 1H 2012: Stringing
Main business highlights in 1H 2012: Stringing • Financials: Sales 32,2 mln; Margins 19%; Backlog 28,1 mln. • Main markets: Nord and Central America; Europe (maintenance); • Product/Technology: Railway Integration of AMC2 competences led to closing of important deal with RFI and increased bid opport
Slide 7: Main business highlights in 1H 2012: Trencher
Main business highlights in 1H 2012: Trencher • Financials: Sales 17,8 mln; Margins 21%; Backlog 28,5 mln. • Main markets: Middle East (1H destocking, order intake for 2H deliveries) North and Central America positive trend in 1H expected to continue in 2H; RTO contract in SA with good opportunity t
Slide 8: 1H 2012 Results
1H 2012 Results Tesmec (Cons.) Income 1H2012 Financial Information Statement 1Q 2Q 1H vs (€mln) 2011 1H 2012 (€ mln) 1H 2011 2012 2012 2012 1H2011 delta % Net working capital 48,4 54,4 Revenues 56,2 23,3 26,7 50,0 -11% Non current assets 48,2 49,5 Other LT assets/(liab) 1,9 1,2 EBITDA 10,7 4,9 4,9 9
Slide 9: Revenues: international scale and exposure to growing economies
Revenues: international scale and exposure to growing economies 1H 2011 1H 2012 Stringing equipment 64% on Total Revenue 2012 9% 9% 3% 6% 4% 23% 12% 30% 2% 63% 35% 5% Italy Europe Middle East BRICs and Oceania Africa North-Central America Trenchers 36% on Total Revenue 2012 12% 5% 23% 9% 4% 47% 4% 2
Slide 10: Stringing Division Results
Stringing Division Results Revenues (€ mln) EBITDA (€ mln and % of Net Revenues) 1H 2011 – 1H 2012 1H 2011 – 1H 2012 10 40 24% 8 19% 30 6 20 34,6 32,2 4 8,3 10 6,1 2 0 0 1H 2011 1H 2012 1H 2011 1H 2012 • Important deliveries in Brazil were finalized in 1H2011 • US market trend and Railway developmen
Slide 11: Trencher Division Results
Trencher Division Results Revenues (€ mln) EBITDA (€ mln and % of Net Revenues) 1H 2011 – 1H 2012 1H 2011 – 1H 2012 24 5 21% 18 4 12 3 11% 21,6 6 17,8 2 3,8 1 2,4 0 0 1H 2011 1H 2012 1H 2011 1H 2012 • In 1H2012 No Middle East direct sales -> reduction of local stock • Improvement in profitability du
Slide 12: Net Profit path
NET PROFIT path NET PROFIT 1H 2012 5 1,6 4 0,3 (0,3) (0,2) 3 (0,2) (1,2) 2 3,3 3,3 1 0 Net Profit Ebitda Ebitda Forex Derivatives Financial Depr. & Amort. Net Profit 1H 2011 margin effect volume effect charges 1H 2012 12/19
Slide 13: Working Capital Evolution
Working Capital Evolution € mln Working Capital Evolution Description (€ mln) 1H 60 2011 (2,7) 2012 4,8 Trade 0,6 43,9 43,0 (0,9) Receivables 40 Inventory 42,1 46,9 54,4 48,4 Trade payables (26,5) (27,1) Other current (11,1) (8,4) 20 asset/liabilities FY2011 Net Inventories Trade Trade Payables Othe
Slide 14: Exchange exposure 1H 2012
Exchange exposure 1H 2012 Revenues Operating Costs 11% 29% Euro Euro 71% USD USD 89% Trade Receivables Trade Payables Euro 1% 7% Euro 38% Other Other 61% Currency Currency USD 92% USD 1% 14/19
Slide 15: Order Book
Order Book ORDER BOOK YEAR END 2011 – 1H 2012 € mln 60 56,6 44,1 45 28,5 19,1 30 15 28,1 25,0 0 2011 1H 2012 Stringing Equipment Trenchers STRINGING EQUIPMENT TRENCHERS € mln € mln 40 30 35 25 30 20 25 20 15 28,5 27,2 35,3 15 32,2 28,1 10 19,1 25,0 17,8 10 5 5 0 0 Order book 1H 2012 Order Order book
Slide 16: Outlook 2012
Outlook 2012 Tesmec confirms consensus estimates based on the expectations that the following factors will have a positive impact on both volumes and margins of the second half year: - Recovery of TR sales in the ME area boosted by: - low stock levels; - market recovery; - launch of new line of tren
Slide 17: Appendix A - Summary 1H 2012 Profit & Loss statement
Appendix A - Summary 1H 2012 Profit & Loss statement 1H 1H Profit & Loss Account (€ mln) Delta vs 2012 2011 Delta % 2011 Net Revenues 50,0 56,1 (6,1) -10,9% Raw materials costs (-) (20,8) (26,8) 6,0 -22% Cost for services (-) (9,8) (10,3) 0,5 -5% Personnel Costs (-) (9,9) (9,0) (0,9) 10% Other opera
Slide 18: Appendix B - Summary Balance Sheet
Appendix B - Summary Balance Sheet Balance Sheet (€ mln) 1H 2012 2011 Inventory 46,9 42,1 Accounts receivable 43,0 43,9 Accounts payable (-) (27,1) (26,5) Op. working capital 62,8 59,5 Other current assets (liabilities) (8,4) (11,1) Net working capital 54,4 48,4 Tangible assets 39,4 38,9 Intangible
Slide 19: TESMEC S.p.A - Headquarters
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 accounting rec