Tesmec S.p.a. · MIL:TES
Tesmec — Euronext STAR Conference 2024
71 slides from Tesmec's conference presentation, Mar 19, 2024
Slide 1: Euronext STAR Conference 2024
Euronext STAR Conference 2024 19-21 March | Palazzo Mezzanotte, Milan
Slide 2: Tesmec Group
TESMEC Tesmec Group
Slide 3: Integrated Solutions Provider for Energy and Data Transport
INTEGRATED SOLUTIONS PROVIDER FOR ENERGY AND DATA TRANSPORT VISION A technological partner in the markets driven by the trends of energy transition, digitalization, and sustainability MISSION Operating in the market of infrastructure for the transport of energy, data and material (oil and derivative
Slide 4: Integrated Solutions Provider for Energy and Data Transport
INTEGRATED SOLUTIONS PROVIDER FOR ENERGY AND DATA TRANSPORT ENERGY STRINGING Tesmec SPA Grassobbio +70 +1000 9 YEARS PEOPLE MANUFACTURING Tesmec SPA of experience PLANTS Sirone ENERGY Tesmec Automation AUTOMATION Fidenza Tesmec Automation Padova Tesmec Automation Patrica TRENCHER Tesmec USA Alvarado
Slide 5: Tesmec Group Business Units
TESMEC GROUP BUSINESS UNITS ENERGY - STRINGING RAILWAY ▪ Solutions for power ▪ Catenary lines lines construction & construction & maintenance maintenance ▪ Advanced ▪ Diagnostic vehicles and methodologies for systems automating jobsite ▪ Integrated platform for ▪ Zero emissions safe infrastructure m
Slide 6: History of Innovation, Investment & Diversification
HISTORY OF INNOVATION, INVESTMENT & DIVERSIFICATION PIONEER in TRENCHER From Expansion Investments & Investments in Strengthening STRINGING product line FAMILY strategy in acquisitions to R&D and the Service and solutions development Company the complete the DIAGNOSTICS Rental to PUBLIC RAILWAY port
Slide 7: Corporate Strategy
CORPORATE STRATEGY Strategic pillars: Business Model DIGITALISATION INTEGRATED SYSTEMS SUSTAINABILITY DIGITAL SOLUTIONS ENERGY TRANSITION FULL SERVICES Key drivers: digitalization and AI Artificial Intelligence Cloud Combine operational data in the cloud and apply advanced analytics Euronext STAR Co
Slide 8: 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 9: Strong Commitment on Innovation, Quality & Sustainability
STRONG COMMITMENT ON INNOVATION, QUALITY & SUSTAINABILITY QUALITY HEALTH AND SAFETY ENVIRONMENT DIGITALIZATION Every activity in our plants Digitalization for the is devoted to waste Maximize delivered and Safeguard of the health and predictive maintenance, reduction, recycling, energy perceived qua
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: Tesmec Business Units
2. Tesmec Business Units Energy Stringing Energy Automation Railway Trencher
Slide 14: Energy – Stringing Solutions
ENERGY – STRINGING Solutions Digital & Green Solutions: new methodologies for construction and maintenance of energy transport and distribution infrastructures TECHNOLOGY FOR EFFICIENT STRINGING OPERATIONS A new concept of integrated systems 4.0 for energy transport and distribution: Simple, Safe an
Slide 15: Energy – Stringing: Fields of application
ENERGY – STRINGING: Fields of application • SOLUTIONS FOR POWER LINES CONSTRUCTION & MAINTENANCE • ADVANCED METHODOLOGIES FOR AUTOMATING JOBSITE • ZERO EMISSIONS MACHINES Euronext STAR Conference 19 March 2024 15
Slide 16: Energy – Stringing: Main worldwide experiences
ENERGY – STRINGING: Main worldwide experiences Reconductoring Underground Cable Laying Stringing Machines 4.0 Fjord crossing USA UK BELGIUM NORWAY Continuous Linear Puller Romford 4.0 Machines Special machines for fjord Type of line: transmission, 138kv 3 x 33 kV cable pulling ACPR Lo-Sag Nexans con
Slide 17: Reconductoring Operations
RECONDUCTORING OPERATIONS Digital Stringing Machine Euronext STAR Conference 19 March 2024 17
Slide 18: Helicopter Stringing China
HELICOPTER STRINGING CHINA Extreme project in Zhejiang Province Tower height: 380 m Four bundled conductors 500 kV Euronext STAR Conference 19 March 2024 18 18
Slide 19: Underground Cable Laying USA
UNDERGROUND CABLE LAYING USA FULL ELECTRIC MACHINE The first experience in jobsite Euronext STAR Conference 19 March 2024 19
Slide 20: Energy – Automation Solutions
ENERGY – AUTOMATION Solutions Grid Reliability, Efficiency and Security: a full portfolio of power grid technologies, tailored and integrated solutions to face fast- changing grid challenges PROTECTION & METERING SOLUTIONS FOR SMART GRID From selectivity to reliability, ensuring continuous operation
Slide 21: Energy – Automation: Fields of application
ENERGY – AUTOMATION: Fields of application • PROTECTION & MONITORING SOLUTIONS • REMOTE CONTROL SOLUTIONS • SERVICE TELECOMMUNICATIONS SOLUTIONS FOR HV GRIDS • SMART METERING SOLUTIONS Euronext STAR Conference 21 19 March 2024
Slide 22: Energy – Automation for Smart Grid Applications
ENERGY – AUTOMATION for Smart Grid Applications Safety of Railway Infrastructure ITALY Euronext STAR Conference 2 Diagnostic 19 March Vehicles 2024 22
Slide 23: Energy – Automation: Main worldwide references
ENERGY – AUTOMATION: Main worldwide references Telecommunication Substation Automation solution System ALGERIA ITALY Remote management of HV Protection and control systems for HV substations and protection substations (SAS) based on IEC 61850 systems against unexpected grid faults Fault Passage Indi
Slide 24: Protection and Monitoring Solutions
FOTO BU PROTECTION AND MONITORING SOLUTIONS for primary and secondary substations Euronext STAR Conference 19 March 2024 24
Slide 25: Telecommunication solution
Telecommunication solution Euronext STAR Conference 25 19 March 2024
Slide 26: Non-Conventional sensors
Non-Conventional sensors Euronext STAR Conference 26 19 March 2024
Slide 27: Remote control
Remote control Euronext STAR Conference 27 19 March 2024
Slide 28: Railway Solutions
. RAILWAY Solutions Global catenary specialist for the installation and maintenance of railway lines: solutions with integrated systems and rail vehicles for a safe, efficient and sustainable railway infrastructure. RELIABILITY Certified, automated and cloud connected vehicles DIGITALIZATION Central
Slide 29: Railway: Fields of application
RAILWAY: Fields of application • CATENARY INSTALLATION & MAINTENANCE • DIAGNOSTIC VEHICLES AND SYSTEMS • INTEGRATED PLATFORM FOR SAFE INFRASTRUCTURE Euronext STAR Conference 19 March 2024 29
Slide 30: Railway: Main worldwide experience
RAILWAY: Main worldwide experience Stringing & recovering RER Catenary renewal Safety of Railway Catenary maintenance wires FRANCE ITALY 9 vehicles (6 different models) Infrastructure 88 Multipurpose railway vehicles USA Engineered to allow a correct execution of the ITALY 16 Revamping maintenance u
Slide 31: Safety of Railway Infrastructure
SAFETY OF RAILWAY INFRASTRUCTURE ITALY 2 Diagnostic Vehicles Euronext STAR Conference 31 19 March 2024
Slide 32: Installation of the Contact Line & Catenary Maintenance
INSTALLATION OF THE CONTACT LINE & CATENARY MAINTENANCE “EAGLE P3 PROJECT” USA 1 Stringing unit & 1 Catenary maintenance vehicle A very fast rail wire installation Euronext STAR Conference 32 19 March 2024
Slide 33: Electrification of New Lines High Speed China
ELECTRIFICATION OF NEW LINES HIGH SPEED CHINA > 30 stringing units 1,318 km BEIJING-SHANGHAI Euronext STAR Conference 33 19 March 2024
Slide 34: Customized Solutions Poland
CUSTOMIZED SOLUTIONS POLAND 4 Stringing units Tensioning system for railway wiring operations composed by working units mounted on ISO 20 size flat modules Euronext STAR Conference 19 March 2024 34
Slide 35: Trenching and Surface Mining Solutions
TRENCHING AND SURFACE MINING SOLUTIONS Advanced working methodology: integrated systems & technological solutions for a complete jobsite management VALUE CHAIN Complete offer combining internal and partner’s solutions DIGITALIZATION Wide range of machines equipped with the latest digital technologie
Slide 36: Trenchers and Surface Miners: Fields of application
TRENCHERS AND SURFACE MINERS: Fields of application • TELECOM NETWORKS, FTTH & LONG DISTANCE, POWER CABLE INSTALLATION • OIL & GAS, WATER PIPELINES, RENEWABLES • BULK EXCAVATION, QUARRIES & SURFACES MINING Euronext STAR Conference 19 March 2024 36
Slide 37: Trenchers and Surface Miners - Main worldwide experience
Trenchers and Surface Miners - Main worldwide experience Fiber Optics Laying Gas Pipeline UK USA Georadar Explorer 2.0 & Sidecut 1150XHD Chainsaw Surface mining Gold Water Pipeline RUSSIA CHILE 1475 Rock Hawg 1675 Chainsaw Bauxite Mining Limestone quarry UZBEKISTAN WEST AFRICA (GUINEA, IVORY COAST)
Slide 38: Efficient Digging Solutions
EFFICIENT DIGGING SOLUTIONS Low-footprint systems Euronext STAR Conference 11 Gennaio 2021 | PPT Corporate 38 19 March 2024 38
Slide 39: Fiber Optics Laying
Fiber Optics Laying UK Georadar Explorer 2.0 & Sidecut Euronext STAR Conference 19 March 2024 39 39
Slide 40: Surface Mining Gold / Bauxite Mining
BAUXITE MINING WEST AFRICA (GUINEA, IVORY COAST) Surface mining Gold Euronext STAR Conference RUSSIA 1150 & 1475 Rock Hawg 19Rock 1475 March 2024 Hawg 40 40
Slide 41: Tunneling Project Australia
TUNNELING PROJECT AUSTRALIA 1475 Rock Hawg EVO Euronext STAR Conference 19 March 2024 41 41
Slide 42: Wind Farms Projects
WIND FARMS PROJECTS Euronext STAR Conference AUSTRALIA 19 March 2024 42 Automatic cable laying system 42
Slide 43: New Technologies for Detection & Mapping
NEW TECHNOLOGIES FOR DETECTION & MAPPING GEORADAR GEODRONE PRIMIS LIVE MOBILE LAB Advanced set of tools, technologies and assets to provide the most outstanding output DIGITALIZATION OF EXISTING INFRASTRUCTURES LIVE AND SYNCHRONIZED WORKING ENVIRONMENT VIRTUAL RECONSTRUCTION OF UNDER AND ABOVE TOWAR
Slide 44: 2023 Results
TESMEC 2023 Results
Slide 45: 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 46: Milestones: 2023 Highlights
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 47: 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 48: 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 49: 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 50: Trenchers: 2023 Facts & Figures
TRENCHERS: 2023 FACTS & FIGURES 400MCT New Technologies Elelectric range Euronext STAR Conference 50 19 March 2024
Slide 51: 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 52: 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 Euronext STAR Conference 52 19 March 2024
Slide 53: 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 54: Energy: 2023 Facts & Figures – Automation
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 Euronext STAR Conference 54 19 March 2024
Slide 55: 2023 Year-End 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 56: 2023 Revenues by Geography
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 imp
Slide 57: 2023 Recurring vs Non-Recurring Revenues
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 & refurbis
Slide 58: 2023 EBITDA Evolution by BU
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 new
Slide 59: 2023 Net Financial Position Evolution and Free Cash Flow
2023 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-dic
Slide 60: 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 Inventor
Slide 61: Outlook
TESMEC Outlook
Slide 62: 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 63: 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 64: 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 65: 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 66: 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 67: Annex
TESMEC Annex
Slide 68: 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 69: 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 70: 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 71: Euronext STAR Conference 2024
Euronext STAR Conference 2024 19-21 March | Palazzo Mezzanotte, Milan Contacts: https://www.tesmec.com https://investor.tesmec.com ir@tesmec.com