Tesmec S.p.a. · MIL:TES

Tesmec — Corporate Update (April 2020)

23 slides from Tesmec's corporate update, Apr 15, 2020

  1. Slide 1: Global Strategy Update

    Stringing Energy Automation Integrated Solutions Provider Railway Trencher Global Strategy Update www.tesmec.com 15 April 2020

  2. Slide 2: Index

    Index > Strategic Overview > Impact of Covid-19 > Business Acquisition – 4SERVICE > Financial Structure Strengthening > Outlook 2020-2021 15 April 2020 2

  3. Slide 3: Strategic overview

    Strategic overview TESMEC Group strategic market segments ▪ ENERGY ▪ TELECOM ▪ INFRASTRUCTURES Post COVID-19 approach Further focus on development guidelines: ▪ CONNECTIVITY IS A MUST (5G opportunities, digitalization) xxx ▪ SAFETY-FIRST (Diagnostic, Artificial Intelligence, Cybersec) ▪ ENVIRONMENTA

  4. Slide 4: Trencher business

    Trencher business TELECOM & CIVIL INFRASTRUCTURES xxx TRENCHER BUSINESS xxx MARKET TRENDS TESMEC POTENTIAL ▪ From SALES to RENTAL ▪ Wide rental fleet ▪ 5G and Telecom ▪ Clean & Fast solutions ▪ Infrastructures and mining ▪ Complete jobsite management 15 April 2020 4

  5. Slide 5: Energy Business

    Energy Business ENERGY xxx STRINGING BUSINESS xxx MARKET TRENDS TESMEC POTENTIAL ▪ Powerline refurbishment and ▪ Methodologies for rethinking management (smart grid) due to the maintenance activities aging of existing conductors in western ▪ Green approach (full electric range) countries ▪ Interconn

  6. Slide 6: Energy Automation Business

    Energy Automation Business ENERGY xxx ENERGY AUTOMATION BUSINESS xxx MARKET TRENDS TESMEC POTENTIAL ▪ Smart grids ▪ Protection, monitoring & remote control ▪ Energy transition ▪ Substation Automation Systems (SAS) ▪ Cybersecurity ▪ IoT platform and sensors 15 April 2020 6

  7. Slide 7: Railway Business

    Railway Business RAILWAY xxx RAIL BUSINESS xxx MARKET TRENDS TESMEC POTENTIAL ▪ Safety and Reliability for railway infrastructure ▪ Complete portfolio of technological solutions for railway electrification and maintenance ▪ National investments program to support local ▪ Advanced working vehicles fo

  8. Slide 8: Index

    Index > Strategic Overview > Impact of Covid-19 > Business Acquisition – 4SERVICE > Financial Structure Strengthening > Outlook 2020-2021 15 April 2020 8

  9. Slide 9: Impact of Covid-19

    Impact of Covid-19 Different impacts on the several businesses and key countries of the Group 1st PHASE Stop of the production activities in Europe xxx No impacts in the Tesmec markets/sector but delays due to the production and logistic Health emergency lock down 2nd PHASE Essential services grante

  10. Slide 10: Index

    Index > Strategic Overview > Impact of Covid-19 > Business Acquisition – 4SERVICE > Share Capital Increase Proposal > Outlook 2020-2021 15 April 2020 10

  11. Slide 11: Rental Business: Tesmec «to be»

    Rental Business: Tesmec «to be» ▪ The rental business has a major in the global market. It is growing and expanding in MARKETxxx TRENDS market than ever before ▪ Customers want to increase the flexibility with limited investments in CAPEX ▪ Get the maximum operational advantage by having, when and w

  12. Slide 12: 4SERVICE - Transaction overview

    4SERVICE - Transaction overview Transaction Perimeter of the transaction ➢ 4Service S.r.l. is the rental division, Seller Buyer 100% owned by MTS S.p.A. 4 Service Group (including MTS4SERVICE LLC), sold to Tesmec S.p.A. 4Service S.r.l. ➢ The purchase price will be injected MTS S.p.A. Tesmec S.p.A. a

  13. Slide 13: TESMEC Rental 2020

    TESMEC Rental 2020 TESMEC Rental description and rationale TESMEC Rental fleet 2020 Overview of the TESMEC Rental Division 19 trenchers owned + 8 trencher in leasing + 2 4Service S.r.l. trenchers managed  Tesmec Group, will be reorganized internally dedicating a BU to the rental division, TESMEC Re

  14. Slide 14: Tesmec Group: proforma 2019 aggregating 4SERVICE

    Tesmec Group: proforma 2019 aggregating 4SERVICE Tesmec Group – Key financials post transaction Tesmec Group – Description post transaction Tesmec Group Tesmec Group ➢ The consolidation runner derives from the aggregation FY2019 Aggregated FY2019 of 4Service S.r.l. (sale and rental business) and Tes

  15. Slide 15: TESMEC Rental – Key Forecast Financials FY19A-2020.Q1

    TESMEC Rental – Key Forecast Financials FY19A-2020.Q1 Key Forecast Financials P&L FY19A-2020.Q1 66.0% 55,5% 9.4 Revenues 2019: ▪ 4Service S.r.l. + MTS4Service LLC 6.4 M€ 6.2 ▪ Tesmec USA – Fleet 3.0 M€ 2.5 1.3 3.0 TUSA 0.8 TUSA Revenues 2020.Q1: ▪ 4Service S.r.l. + MTS4Service LLC 1.7 M€ FY19A 2020.

  16. Slide 16: 4Service S.r.l. key consolidated financials

    4Service S.r.l. key consolidated financials 4Service S.r.l. FY2019 Mar-2020 (only Rental) ➢ The consolidation runner derives from the Sales 6.9 aggregation of MTS4Service LLC and EBITDA 5.2 4Service S.r.l. (carve out of MTS S.p.A.) EBITDA % 75.2% taking into consideration 3 impacts: NFP 12.8 11.7 IF

  17. Slide 17: 4Service S.r.l. Valuation

    4Service S.r.l. Valuation Trading and Transaction multiples based valuation Trading and transaction Trading and Transaction multiples based Advantages valuation valuation EV/EBITDA ≈4.1 ➢ 4Service S.r.l. valuation is around 4.1x, EBITDA19 5.2 1) Value is ≈4.1 EBITDA based on comparable transaction m

  18. Slide 18: Index

    Index > Strategic Overview > Impact of Covid-19 > Business Acquisition – 4SERVICE > Share Capital Increase Proposal > Outlook 2020-2021 15 April 2020 18

  19. Slide 19: Share Capital Increase Proposal

    Share Capital Increase Proposal The Tesmec Board of Directors approved a proposal which will be submitted to the Shareholders Meeting for the increase of share capital up to 50 M€ MAIN THE REASON WHY? TERMS & TIMING SHAREHOLDER In June the guidelines ✓ Better balance of the new business between Equi

  20. Slide 20: Index

    Index > Strategic Overview > Impact of Covid-19 > Business Acquisition – 4SERVICE > Share Capital Increase Proposal > Outlook 2020-2021 15 April 2020 20

  21. Slide 21: Outlook 2020-2021

    Outlook 2020-2021 Guidelines of the Business Plan will be released in June 2020 1Q and 2Q will be affected by the spread of COVID-19 worldwide with a Turnover reduction of 20%-25% compared last year 3Q and 4Q will recover xxx 2020 The yearend turnover will be less than 2019, due to the 2 months of s

  22. Slide 22: Disclaimer

    Disclaimer The Manager responsible for preparing the company’s financial reports, Marco Paredi, 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 accou

  23. Slide 23: www.tesmec.com

    TESMEC www.tesmec.com

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