Slide 1: 2018 Results Presentation
Stringing Energy Automation Integrated Solutions Provider Railway Trencher 2018 Results Presentation www.tesmec.com 5th March 2019
Slide 2: Index
Index > Corporate Strategy > 2018 Highlights and Results > 2019 Outlook 5th March 2019 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: Index
Index > Corporate Strategy > 2018 Highlights and Results > 2019 Outlook 5th March 2019 5
Slide 6: 2018 Energy Stringing business highlights
2018 Energy Stringing business highlights DIGITAL INTERCONNECTED EQUIPMENT Job sites remote management thanks to interconnected equipment Push on high tech sensitive markets POWERLINES MAINTENANCE: ADVANCED WORKING METHODOLOGIES The most innovative stringing project in China: helicopter stringing op
Slide 7: 2018 Energy Automation business highlights
2018 Energy Automation business highlights CERTIFICATION OF NEW DEVELOPMENTS Speed up of sales on local & international markets SMT IN RUSSIA: ramp up of mass production & field Smart Metering solution for Russian MV Grids: Focus on products awareness through trainings for regional technical teams o
Slide 8: 2018 Trencher business highlights
2018 Trencher business highlights INTEGRATED SOLUTIONS FOR TUNNELING APPLICATIONS Remote dust control system combined to trencher: HSEQ advantages to project and sensitive receivers ✓ Successful solution in SYDNEY WEST CONNEX E NORTH CONNEX project STRATEGIC PARTNERSHIP FOR SPECIAL PROJECTS New inte
Slide 9: 2018 Railway business highlights
2018 Railway business highlights BRAND NEW PLANT High efficiency manufacturing plant in Monopoli (Italy) equipped with the most advanced devices for quality assurance and tests to grant the full product reliability METHODOLOGY FOR SAFE & FAST CATENARY MAINTENANCE OPERATIONS Approved solution (convoy
Slide 10: Strong commitment on Innovation, Quality & Sustainability
Strong commitment on Innovation, Quality & Sustainability around Euro 16 million INNOVATION investments in innovative projects R CERTIFICATIONS QUALITY & SUSTAINABILITY ✓ ISO 9001:2015 D ✓ ISO 14001:2015 ✓ ISO 45001:2018 Industry 4.0 plan Puglia Project xxx & Research > Tax savings on R&D > Design o
Slide 11: 2018 Closing
2018 Closing GROUP (€ mln) 2018 2017 Delta % REVENUES 194,6 175,6 10,9%(1) (1) + 11,8% at constant currencies (2018 equal to EBITDA adj (2) 21,0 20,7 1,1% Euro 196,3 million) % on Revenues 10,8% 11,8% EBITDA (3) 18,9 20,7 -8,8% (2) The EBITDA adj includes the insurance % on Revenues 9,7% 11,8% reimb
Slide 12: 2018 Closing
2018 Closing ENERGY 2018 2017 Delta % Revenues 41,7 52,1 -19,8% > Market volatility EBITDA adj 5,0 8,0 -37,5% > Technology breakthrough % on Revenues 12,0% 15,4% > New products launch EBITDA 4,8 8,0 -39,9% % on Revenues 11,5% 15,4% TRENCHERS 2018 2017 Delta % > Without the Australian extra jobsite c
Slide 13: 2018 FY versus 9M
2018 FY versus 9M Euro/mln 9M - YTD Q4 Full year 2018 2017 Var. 2018 2017 Var. 2018 2017 Var. REVENUES 140,5 132,1 6,3% 54,1 43,5 24,4% 194,6 175,6 10,9% EBITDA* 12,2 13,6 -9,9% 6,7* 7,1 -5,6% 18,9** 20,7 -8,8% EBITDA % 8,7% 10,3% 12,4%* 16,3% 9,7%** 11,8% EBIT 1,4 3,1 -53,6% 2,3 3,0 -23,3% 3,7 6,1
Slide 14: 2018 Revenues: sales spread over different geographical area
2018 Revenues: sales spread over different geographical area INTERNATIONAL SCALE AND EXPOSURE TO GROWING ECONOMIES JOINT WITH A GROWING IMPORTANCE OF THE ITALIAN MARKET 2018 2017 17% 16% 25% 18% 5% 7% 19% 18% 26% 32% 8% 9% ITALY: impact of railway business & automation Italy Europe Middle East USA:
Slide 15: FY Differences in Exchange
FY Differences in Exchange Euro mln DIFFERENCES IN EXCHANGE 1,4 1,7 2 0,2 0 -2 -4 -6 (4,7) 2015 2016 2017 2018 GROUP (Euro mln) 2018 2017 2016 Differences in Exchange 0,2 (4,7) 1,7 of which: Realised (0,2) (1,6) 0,2 Unrealised 0,4 (3,1) 1,5 Differences in Exchange for currency: USD 0,8 (3,0) 0,7 ZAR
Slide 16: EBITDA FY 2018
EBITDA FY 2018 € mln 25 20,7 1,7 18,9* 20 0,3 (3,9) 15 10 5 0 EBITDA Energy Trencher Railway EBITDA FY 2017 FY 2018 * without the Australian extra jobsite costs and the non recurring costs , the FY EBITDA would have been around 25,0 M€. The EBITDA is impacted by the excellent results of the Railway
Slide 17: 2018 Financial Results
2018 Financial Results Financial Information (€ mln) 2018 2017 Net Working Capital 48,9 60,8 Non Current assets 67,3 68,4 Other Long Term assets/liabilities 4,8 0,9 Net Invested Capital 121,0 130,1 Net Financial Indebtness 77,7 85,2 Equity * 43,3 44,9 Total Sources of Financing 121,0 130,1 • - 2,2 m
Slide 18: Net Financial Position Evolution
Net Financial Position Evolution OPERATING NET FINANCIAL POSITION € mln 140 120 100 85,2 14,1 5,0 77,7 80 60 (14,7) (11,9) 40 20 0 NFP OFCF NWC Capex Int.exp. NFP FY 2017 Net FY 2018 Operating Cash-Flow improvement and positive NWC despite increase in 2017 Capex for Puglia Project 2018 5th March 201
Slide 19: Net Financial Position Evolution
Net Financial Position Evolution OPERATING NET FINANCIAL POSITION € mln 140 120 96,7 96,9 98,7 92,9 100 91,5 93,5 92,1 85,2 77,7 80 60 40 20 0 2016 1Q 2017 1H 2017 9M 2017 2017 1Q 2018 1H 2018 9M 2018 2018 5th March 2019 19
Slide 20: Index
Index > Corporate Strategy > 2018 Highlights and Results > 2019 Outlook 5th March 2019 20
Slide 21: 2019 outlook
2019 outlook MACRO MARKET + - TRENDS New world technology Economy is slowing xxx Telecom – 5G China – USA → commercial Energy transition Middle East, Iran → embargo Mines – new methodology ENERGY > New products launching > Important development on digital grids with cyber-security needs > Integrated
Slide 22: Backlog
BACKLOG Euro/mln BACKLOG 30/09/2018 Sales Q4 2018 In take Q4 31/12/2018 31,0 26,0 11,5 6,5 Energy 62,0 62,0 Trencher 31,3 31,3 113,0 112,0 11,3 10,3 Railway 206,0 200,0 Total 54,1 48,1 5th March 2019 22
Slide 23: Summary 2018 Profit & Loss statement - Appendix A
Summary 2018 Profit & Loss statement - Appendix A Delta vs Profit & Loss Account (Euro mln) 2018 2017 Delta % 2017 Net Revenues 194,6 175,6 19,1 10,9% Raw materials costs (-) (89,1) (78,3) (10,8) 13,7% Cost for services (-) (32,6) (30,9) (1,7) 5,6% Personnel Costs (-) (50,5) (46,2) (4,3) 9,2% Other
Slide 24: Summary 2018 Balance Sheet - Appendix B
Summary 2018 Balance Sheet - Appendix B Balance Sheet (€ mln) 2018 2017 Inventory 73,6 69,9 Accounts receivable 52,6 39,9 Accounts payable (-) (54,4) (39,5) Op. working capital 71,8 70,3 Other current assets (liabilities) (22,9) (9,5) Net working capital 48,9 60,8 Tangible assets 45,3 46,1 Intangibl
Slide 25: Disclaimer
Disclaimer The Manager responsible for preparing the company’s financial reports, Gianluca Casiraghi, 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
Slide 26: www.tesmec.com
www.tesmec.com 5th March 2019