Tesmec S.p.a. · MIL:TES
Tesmec — H1 2022 Earnings Presentation
38 slides from Tesmec's earnings presentation, Aug 5, 2022
Slide 1: Integrated Solutions Provider - 2022.H1 Results Presentation
Integrated Solutions Provider 2022.H1 Results Presentation
Slide 2: Index
Index 0. Tesmec Group at a glance 1. Key Market trends & Corporate strategy 2. 2022.H1 Business highlights & Results 3. Outlook 4. ANNEX
Slide 3: Tesmec Group at a glance
€ TESMEC Tesmec Group at a glance
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: Key Market trends & Corporate strategy
1. Key Market trends & Corporate strategy
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:
Slide 8: Sustainability - Strategy & Execution
Sustainability - Strategy & Execution Sustainable Development Goals STRATEGIC GUIDELINES E CLIMATE CHANGE S INVEST IN G WORK OUT AN INCREASE THE % MITIGATION PEOPLE & LOCAL EFFECTIVE OF GREEN&DIGITAL & ENVIRONMENTAL COMMUNITIES SUSTAINABLE SOLUTIONS PROTECTION WELL BEING GOVERNANCE ACTIONS TO BE PER
Slide 9: Sustainability as key strategic driver
Sustainability as key strategic driver PRIORITY TOPICS TASKS (in progress or delivered) ▪ Growing involvement and awareness on sustainable governance both in Italy and among the Ethic and sustainable foreign subsidiaries of the Group governance ▪ Strengthen of the sustainability team in order to pro
Slide 10: 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
Slide 11: Sustainability - Key Facts H1 2022
Sustainability - Key Facts H1 2022 KEY FACTS • Tesmec is confirmed leader of Sustainability 2022 • R&D focused on electrification and digitalization of equipment • Launch of corporate volunteer initiatives • Signed agreement for the supply of 100% renewable energy Tesmec is confirmed R&D efforts are
Slide 12: Trencher – Key Facts H1 2022
Trencher – Key Facts H1 2022 KEY FACTS • Consistent rebound of the US’ market • Debut of new Multicut 400 • New Zealand mining market entered • Growth in Arabic Peninsula activity Market in the US has New Multicut 400 seen a consistent multipurpose digging rebound, leading to a solution has steep in
Slide 13: Energy Stringing - Key Facts H1 2022
Energy Stringing - Key Facts H1 2022 KEY FACTS • UK positive outlook • Push on special solutions dedicated to underground transmission lines • Slight drop trends in raw materials • Auditing efforts to deal with negative impact on steel strands supply Western Slight drop trends in Europe market raw m
Slide 14: Energy Automation - Key Facts H1 2022
Energy Automation - Key Facts H1 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 • Successful introduction of the new management system (ERP) •
Slide 15: Rail - Key Facts H1 2022
Rail - Key Facts H1 2022 KEY FACTS ▪ Tesmec continues its growth on the international railway market: Egypt is a milestone also for the future ▪ High technological level represents the winning key to achieve rail certifications: springboard to foster rail vehicle even more intensively in strategic m
Slide 16: 2022.H1 Business highlights & Results
2. 2022.H1 Business highlights & Results
Slide 17: 2022.H1 Closing
2022.H1 Closing (1) Revenues: Increase in sales & growth Delta GROUP (€ mln) 2022.H1 2021.H1 thanks to the Rail performance and the vs.21 rebound of the Trencher sector, particularly in the US market REVENUES (1) 113,3 96,9 16,9% (2) EBITDA: positive impact mainly by the EBITDA (2) (3) 18,7 13,7 36,
Slide 18: 2022.H1 Closing – Business Breakdown
2022.H1 Closing – Business Breakdown (€ mln) Energy > Sales stable compared to 2021.H1 lead by the Energy +0,5% industry trend 23,7 23,5 -2,4% > EBITDA: impacted by the utilities, raw material and freight 3,6 3,7 costs increase, with higher effect on the Stringing segment. Started the process of rev
Slide 19: Backlog
BACKLOG Euro/mln BACKLOG 31/03/2022 Sales 2022.Q2 Intake 2022.Q2 30/06/2022 (2) (1) Of which Euro 86,6 (1) 98,5 (1) 109,2 million by Energy Energy 11,0 21,7 Automation and new opportunities in hi-tech content business 77,7 75,3 (2) Acquisition of new Trencher 33,7 31,3 orders during the first half o
Slide 20: 2022.H1 Revenues: sales spread over different geographical area
2022.H1 Revenues: sales spread over different geographical area REVENUE BY GEOGRAPHY 2022.H1 REVENUE BY GEOGRAPHY 2021.H1 BRIC BRIC &Others Italy North & &Others Italy North & 16,5% 29,7% Central 19,5% 21,8% Central America America 14,3% 19,3% Africa Africa Europe 5,4% 4,7% Europe Middle East 20,4%
Slide 21: 2022.H1 Revenues: recurring vs non recurring
2022.H1 Revenues: recurring vs non recurring REVENUES RECURRING VS NON REVENUES RECURRING VS NON RECURRING 2022.H1 RECURRING 2021.H1 Non recurring 48,2% Non recurring 45,2% 51,2 M€ 62,1 M€ 46,7 11,3 M€ M€ 50,2 20,5M€ M€ Recurring 54,8% Recurring 51,8% Recurring: Rental, Projects, Spare Parts, Servic
Slide 22: 2022.H1 EBITDA
2022.H1 EBITDA € mln 20,0 3,6 18,7 18,0 16,0 1,5 13,7 (0,1) 14,0 12,0 10,0 8,0 6,0 4,0 2,0 0,0 2021.H1 Energy Trencher Railway 2022.H1 Impacted by the increase of costs of utilities, raw 2021.H1 materials and freight, highly mitigated by the Rail and 2022.H1 Trencher performance 5th August 2022 22
Slide 23: 2022.H1 Financial Results
2022.H1 Financial Results Financial Information (€ mln) 2022.H1 2021 Net Working Capital 98,1 76,5 Non Current assets 81,6 79,6 Right of use - IFRS 16/IAS 17 22,3 23,4 Other Long Term assets/liabilities 14,6 14,2 Net Invested Capital 216,6 193,7 Net Financial Indebtness 108,2 96,6 Lease liability -
Slide 24: 2022.H1 Working Capital evolution
2022.H1 Working Capital evolution € mln 120 14,3 (8,9) 0,5 100 5,2 10,5 80 60 98,1 40 76,5 20 0 2021 Inventories WIP Trade Trade Other 2022.H1 Net Working Receivables Payables current Net Working capital ass. / liab. capital € Mln 2022.H1 2021.FY 2022.H1 2021.FY Trade Receivables 68,7 54,4 95 101 In
Slide 25: 2022.H1 Net Financial Position Evolution
2022.H1 Net Financial Position Evolution • 1H IN LINE WITH QUARTELY DISTRIBUTION COMMENTED Net Financial Position WITH FY 2019 AND 1Q 140,0 RESULTS 24,9 133,1 130,0 9,7 19,6 - 121,0 24,5 21,6 120,0 110,0 108,2 100,0 96,5 90,0 80,0 70,0 2021 IFRS 16 Net debt NWC Capex Change of OFCF Net debt IFRS 16
Slide 26: 2022 Net Financial Position Evolution
2022 Net Financial Position Evolution NET FINANCIAL POSITION € mln 143,0 137,8 140 133,1 123,8 10,2 118,0 11,0 118,5 116,5 121,0 119,4 115,6 117,7 120 112,5 112,5 6,3 119,2 104,4 6,4 8,6 6,6 114,7 5,8 6,7 100 108,2 105,0 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 IF
Slide 27: Outlook
€ TESMEC Outlook
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
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
Slide 30: Trencher – Outlook 2022: Business Guidelines
Trencher – Outlook 2022: Business Guidelines OUTLOOK 2022 ▪ Further development in Arab Peninsula ▪ Consolidation of growth in Europe and the USA driven by support programs ▪ Stocks to guarantee business continuity ▪ Electrification & Sustainable solutions Tesmec is strenghtening its presence in the
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
Slide 32: Energy Automation - Outlook 2022: Business Guidelines
Energy Automation - Outlook 2022 : Business Guidelines OUTLOOK 2022 • Consolidation of existing market • Focus on market expansion through the promotion of new business models • New organization of Service & After-Sales activities • Significant challenges related to supply chain and delivery plans d
Slide 33: Rail - Outlook 2022: Business Guidelines
Rail - Outlook 2022: Business Guidelines OUTLOOK 2022 • INTERNATIONALIZATION OF THE BUSINESS From the domestic market to the international market: increase of the portfolio of customers. • GREEN TRANSITION From traditional vehicles with diesel engine to sustainable vehicles (bimodal & full electric)
Slide 34: ANNEX
€ TESMEC ANNEX
Slide 35: Summary 2022.H1 Profit & Loss statement - Appendix A
Summary 2022.H1 Profit & Loss statement - Appendix A Profit & Loss Account (Euro mln) 2022.H1 2021.H1 Delta vs 2021 Delta % Net Revenues 113,3 96,9 16,4 16,9% Raw materials costs (-) (43,6) (39,4) (4,2) 10,6% Cost for services (-) (22,1) (16,7) (5,4) 32,3% Personnel Costs (-) (29,8) (27,3) (2,5) 9,2
Slide 36: Summary 2022.H1 Balance Sheet - Appendix B
Summary 2022.H1 Balance Sheet - Appendix B Balance Sheet (€ mln) 2022.H1 2021 Inventory 91,8 81,3 Work in progress contracts 20,9 15,7 Accounts receivable 68,7 54,4 Accounts payable (-) (64,9) (56,0) Op. working capital 116,5 95,4 Other current assets (liabilities) (18,4) (18,9) Net working capital
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
( TESMEC www.tesmec.com