Slide 1: Tesmec Group Corporate Presentation
Tesmec Group Corporate Presentation Analyst Presentation August 5, 2014
Slide 2: Markets & Technology solutions
Markets & Technology solutions UNDERGROUND ENERGY RAILWAY INFRASTRUCTURES Power lines Construction & Railway line Construction & Large-scale infrastructure Maintenance Maintenance Underground Cables Laying Special application Shale Gas & Oil Grid Efficiency & Management New eco-friendly technology D
Slide 3: 1H2014 – Main highlights (1)
1H2014 – Main highlights (1) • Completion of the acquisition process of AMC2 (Bari) • Implementation of FSK Agreement • New development strategy in ME: • Qatar: new developments in distribution • KSA: change in the sales business model • NFP: increased weight of M/L term up to 91% of net NFP (Bond i
Slide 4: 1H2014 – Main highlights (2)
1H2014 – Main highlights (2) 1Q2014: • Extension of 2013 seconf half trend with low margins and volumes 2Q2014 • margins in line with expectations with strong contribution of the new Railway sector and of the special projects • Strong order intake with improved outlook for the rest of the year • Pos
Slide 5: Focus on R&D investments
Focus on R&D investments Constant investment in R&D (6-7% on revenues) to develop new products lines to be launched in 2015 Energy Electronic devices and integrated systems to control and manage transmission and distribution electrical lines (Smart Grids) Eco-friendly solutions Railway Lines M
Slide 6: 1H2014 P&L Results
1H2014 P&L Results Delta % Delta % Delta % 1Q 2Q 1H (2Q2014 Vs 1H 2H 1H (1H14 Vs (1H14 Vs TRENCHER 2014 2014 2014 1Q2014) GROUP 2013 2013 2014 2H13) 1H13) Revenues 11,7 14,2 25,9 21% Revenues 57,3 56,2 54,7 -3% -5% EBITDA 0,8 2,6 3,4 225% % on Revenues 7% 18% 13% EBITDA 11,5 8,0 8,9 11% -23% Delta %
Slide 7: Subsidiaries
Subsidiaries Tesmec RUS (100%) Tesmec USA (100%) Revenue 0.9 million € (-90% vs 1H13) Revenue 14,1 million € (+45% vs 1H13) Slowdown for Stringing but there are good prospects for grid efficiency. On the financial statements as at 31 December 2013 basis and of the positive performance of early 2014,
Slide 8: Revenues: international scale and exposure to growing economies
Revenues: international scale and exposure to growing economies 1H2013 1H2014 13% 4% 25% 14% 33% 18% 6% 23% 5% 10% 20% 28% Italy Europe Middle East BRICs and Oceania Africa North-Central America 8/18
Slide 9: EBITDA 1H2014
EBITDA 1H2014 12 10 0,9 (2,6) 1,8 (0,4) 8 (0,9) (1,3) 6 11,5 9 4 2 0 EBITDA Revenues Materials Cost for Personnel Capitalized Other EBITDA 1H2013 cost Services Costs R&D Costs 1H2014 Expenses &Revenue EBITDA decrease is mainly due to change in product and 1H 1H 2013 market mix 2014 9/18
Slide 10: 1H2014 Financial Results
1H2014 Financial Results Financial Information 1Q2014 1H2014 2013 (Euro Mln) Net Working Capital 60,7 57 52,7 Non Current assets 58,8 58,4 57,5 Other Long Term assets/liabilities 0,2 (0,4) 0,4 Net Invested Capital 119,7 114,9 110,6 Net Financial Indebtness 78 73,1 68,8 Equity 41,7 41,8 41,8 Total So
Slide 11: Working Capital Evolution
Working Capital Evolution Days* 1H Days Euro Mln 1Q2014 1H2014 2013 2014 2013 Trade Receivables 45,9 39,5 43,2 128 137 Inventories 49,5 59,4 48,1 193 152 Trade Payables (25,2) (30,3) (25,5) 98 81 Other Current Assets/(Liabilities) (9,5) (11,6) (13,1) 38 41 Net Working Capital 60,7 57,0 52,7 Working
Slide 12: Net Financial Position Evolution
Net Financial Position Evolution Operating Net Financial Position without figurative debt 80 68,8 for Grassobbio premises 70 19,4 60 19,9 IAS 17 1,9 2 12,4 4,3 1,7 50 4,3 3,0 40 73,1 30 48,9 48,9 53,7 20 10 0 NFP Operating OFCF NWC Finacial Other Dividend Int.exp. Taxes Operating Capex NFP FY 2013 N
Slide 13: Exchange Rate Risk exposure 1H2014
Exchange Rate Risk exposure 1H2014 Revenues Operating Costs 3% 1% Euro 21% Euro 26% USD USD 71% Other 78% Other Trade Receivables Trade Payables 14% Euro Euro 53% 45% USD USD 86% 2% 13/18
Slide 14: Order Book 1H 2014
Order Book 1H 2014 TRENCHERS STRINGING € mln € mln 28,4 30 36,7 30 27,5 29 25,9 30 22,3 20 14,6 15 10 0 - 0 - Order 1H2014 Order Order Order book 1H 2014 Order Order book FY2013 Revenues Intake 1H2014 book Revenues Intake book FY 2013 1H2014 RAILWAY Backlog Trend € mln 80 15 62,1 58 69 11,9 60 52,7
Slide 15: Outlook 2014
Outlook 2014 -> Energy: strong recovery expected in 2H also thanks to the first contributions of the Automation business. -> Railway: constant growth with good margins as in 1H -> Trencher: growth is expected to be driven by three main factors: - US market recovery - huge investment in pipeline busi
Slide 16: Appendix A - Summary 1H2014 Profit & Loss statement
Appendix A - Summary 1H2014 Profit & Loss statement Delta vs Profit & Loss Account (€ mln) 1H2014 1H2013 Delta % 2013 Net Revenues 54,7 57,3 (2,6) -5% Raw materials costs (-) (25,7) (24,4) (1,3) 5% Cost for services (-) (8,9) (10,7) 1,8 -17% Personnel Costs (-) (12,8) (11,9) (0,9) 8% Other operating
Slide 17: Appendix B - Summary Balance Sheet
Appendix B - Summary Balance Sheet Balance Sheet (€ mln) 1H2014 2013 Inve ntory 59,4 48,1 Accounts re ce ivable 39,5 43,2 Accounts payable (-) (30,3) (25,5) Op. working capital 68,6 65,8 Othe r curre nt asse ts (liabilitie s) (11,6) (13,1) Net working capital 57,0 52,7 Tangible asse ts 43,2 43,2 Int
Slide 18: Disclaimer
Disclaimer • 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 a
Slide 19: TESMEC S.p.A - Headquarters
TESMEC S.p.A - Headquarters via Zanica, 17/O - 24050 Grassobbio (BG) - Italy Tel. +39.035.423 2911 - Fax +39.035.4522444 Management and Administration Fax +39.035.4522445 Stringing Equipment Division - Fax +39.035.335664 Trencher Division www.tesmec.com - info@tesmec.it