Slide 1: Partner in a changing world
STAR CONFERENCE 15-16.03.2016 Partner in a changing world
Slide 2: Company overview
Company overview
Slide 3: People change history
People change history Tesmec was established in 1951 in Bergamo - Italy as From FOCUS on a pioneering stringing equipment manufacturer. FAMILY company INTEGRATION to PUBLIC FOCUS on Second company INNOVATION Since then Tesmec Group has FOCUS on product FOCUS on evolved as one of the most INVENTION l
Slide 4: Vision and mission
Imagination for progress Modern societies, as well as the emerging ones, face future challenges to vision invest in energy and Tesmec Advanced technologies are developed in accordance with the ISEQ telecommunications sectors. philosophy "Innovation, Safety, Efficiency, Quality" always respecting the
Slide 5: A widespread network of people
A widespread network of people 600 Tesmec Group is Leader 60 in the market of the + infrastructures related to the transport and distribution of energy, data and material. + years of experience people Tesmec people are pioneers 8% since the origins, and their proud R&D spread the name towards huge a
Slide 6: Global partner with local presence
Global partner with local presence Tesmec Group headquarters are located in Grassobbio, in the vicinity of the Northern Italian town of Bergamo. Tesmec has also other five production plants: three in 6 2 10 1 Italy, in Endine Gaiano (Bergamo), Sirone (Lecco), Production Joint Subsidiaries Associated
Slide 7: Group Structure
Group Structure Operating Companies TESMEC S.P.A. Fully Consolidated Equity Method Equity Method TESMEC USA (67%)* TESMEC RUS (100%) TESMEC SA (100%) TESMEC SERVICE TESMEC PENINSULA (100%) (49%) TESMEC BALKANI LOCAVERT (100%) (38,63%) CONDUX TESMEC SGE S.r.l. (50%) (100%) TESMEC NEW TECHNOLOGY (Beij
Slide 8: R&D - Innovation platform
R&D - Innovation platform R&D strategy is developed through an OPEN INNOVATION approach Growth through Innovation platform TECHNOLOGICAL DISCONTINUITY Integrated platform aimed at CONNECTIVITY, SMART SOLUTIONS and SUSTAINABLE TECHNOLOGIES 8
Slide 9: Human Values
305 8 13 Human Values 4 115 17 100 34 4 14 Tesmec identifies in honesty, membership and respect the values that distinguish our history. Figures as at We are resolute to continue 31/12/2015 building our future on human respect, acting with coherence and honesty towards colleagues, clients and suppli
Slide 10: Business overview
@TESMEC Business overview
Slide 11: Solutions partner for your world
We focus on strategic markets for the growth and modernization of every country. Solutions partner for your world Tesmec designs, manufactures and sells products, technologies and integrated solutions for the construction, maintenance and efficiency of infrastructures related to the transport and di
Slide 12: Committed to quality - Energy
Committed to quality ENERGY POWER LINES UNDERGROUND GRID MANAGEMENT & CONSTRUCTION & CABLES AUTOMATION MAINTENANCE LAYING DEVICES 12
Slide 13: Energy segment
Energy segment Equipment for FROM new power lines construction Integrated systems for TO maintenance of existing power lines and management and monitoring of grids Safety RECONDUCTORING operations: solutions to maintain the transmission Reliability efficiency over time or to increase the capacity of
Slide 14: Solution for HV-MV-LV lines
Solution for HV-MV-LV lines Reconductoring Digital Power Line Carrier Smart Metering Tool Line refurbishment: solutions for Innovative terminal for data Innovative system specifically designed renewing the old conductor avoiding transmission over High Voltage power for the measurement of energy and
Slide 15: Energy main projects
5 1 4 3 2 6 7 8 2 3 1 Reconductoring Top efficiency In altitude 1 USA 2 BRAZIL 3 PERU 4 Fjord NORWAY crossing 1 Fault BRAZIL passage indicators NHPL Texas jobsite 500 kV line, 6 T&D lines 500 kV line at 1000 mt a.s.l., Special machines for fjord Fault detectors for MV lines Live line reconductoring
Slide 16: Entrepreneurs of efficiency - Railway
Entrepreneurs of efficiency RAILWAY CATENARY INSTALLATION MAINTENANCE POWERING & REPOWERING 16
Slide 17: Railway segment
Railway segment FROM Traditional rail vehicles Advanced railcars TO able to perform without line interruption AUTOMATIC TRAIN CONTROL SYSTEM : designed to provide enhanced levels of rail safety through continuous train control and protection Safety ADVANCED COMMUNICATION INTERFACE : special system t
Slide 18: Top technological units
Top technological units Multipurpose unit for catenary installation and maintenance especially designed for high speed railway lines with particular focus on operating efficiency, safety matters and low emission. EN14033 certified
Slide 19: Railway main projects
2 3 4 5 6 1 7 8 Eagle P3 Project Huge, top performing unit TGV High level maintenance 1 USA 2 USA 3 FRANCE 4 ITALY Constant Tension Stringing Unit Special-purpose equipment for TGV high speed railway Multipurpose machines (APV), for a very fast rail wire installation stringing and recovering wires.
Slide 20: Maximized attitude - Underground
Maximized attitude UNDERGROUND PIPELINES, TELECOM, BULK EXCAVATION, SPECIALIST DIGGING DRAINAGE SURFACE MINING SERVICE 20
Slide 21: Underground segment
Underground segment FROM Supplier of equipment Complete package of solutions TO (advanced equipment + complementary services) to offer value added solutions to the customers SPECIALISTS AND DEEP EXPERTISE to efficiently manage the jobsite Experience increasing performances and reducing risks HIGH TE
Slide 22: Solutions for different applications
Solutions for different applications TELECOM Fiber optic laying - Germany Wind farm - Australia (fiber optic cable laying., FTTH and long distance..) ENERGY (underground energy cable, wind farm...) HEAVY CIVILS New Orbital Highway - Qatar Water pipeline - Chile (construction, bulk excavation..) PIPE
Slide 23: Underground main projects
1 7 2 6 3 4 8 10 9 5 11 Permafrost cutting Hard rock trenching Agricultural drainage Gas Pipeline Desert Pipeline 1 CANADA 2 USA 3 USA 4 MEXICO 5 CHILE 675 miles natural gas pipeline Granite, quarz and massive Fully automatic guidance system 382 km 36” gas pipeline Double parallel water pipeline dep
Slide 24: 2015 Economic and financial data
2015 Economic and financial data
Slide 25: 2015 Economic Results
2015 Economic Results GROUP 2015 2014 Delta % Revenues 164,4 114,9 43,1% ENERGY 2015 2014 Delta % EBITDA 24,0 18,3 31,1% Revenues 72,1 50,1 43,9% % on Revenues 15% 16% EBITDA 11,4 9,5 20% EBIT 12,8 10,5 21,9% % on Revenues 15,8% 19,0% % on Revenues 8% 9% TRENCHERS 2015 2014 Delta % Profit Before Tax
Slide 26: Revenues
Revenues 2014 2015 INTERNATIONAL SCALE AND EXPOSURE TO GROWING ECONOMIES 12% 7% 20% 31% Italy 18% Europe 34% Middle East 13% BRICs and Oceania Africa 5% 16% 11% North-Central America 17% 15% 26
Slide 27: EBITDA 2015
EBITDA 2015 70 49,5 60 50 40 (27,3) 30 (8,3) 1,8 20 (8,4) (1,0) (0,5) 24,0 10 18,3 0 EBITDA Revenues Raw Cost for Personnel Equity Capitalized Other EBITDA 2014 materials & Services Costs Investments R&D operating 2015 other costs Expenses cost/revenues EBITDA improvement mainly thanks to volumes 20
Slide 28: 2015 Financial Results
2015 Financial Results Financial Information (Euro mln) 2015 2014 Net Working Capital 63,5 57,9 Non Current assets 83,9 65,3 Other Long Term assets/liabilities (1,7) (1,7) Net Invested Capital 145,7 121,5 Net Financial Indebtness 89,9 73,4 Equity 55,8 48,1 Total Sources of Financing 145,7 121,5 28
Slide 29: Working Capital Evolution
Working Capital Evolution Working Capital Evolution 75 (4,9) 9,6 3,5 (1,3) (1,3) 50 63,5 57,9 25 0 2014 Inventories WIP Trade Trade Other current 2015 Net Working Receivables Payables ass. / liab. Net Working capital capital Days Days Euro Mln 2015 2014 2015 2014 Trade Receivables 50,9 41,3 111 129
Slide 30: Net Financial Position Evolution
Net Financial Position Evolution 90 Operating Net Financial Position without figurative debt 80 for Grassobbio premises ias 17 18,9 3,7 1,9 70 4,2 89,9 ias 17 60 20,1 72,1 2,3 13,6 50 10,1 2,0 40 30 54,5 54,5 20 10 0 NFP Operating OFCF NWC Dividend Marais Other Int.exp. Taxes Operating Capex NFP FY
Slide 31: Exchange exposure 2015
Exchange exposure 2015 MARGIN EFFECT 2015 2014 2013 AVERAGE EUR/USD EX. RATE 1,11 1,329 1,328 FX NET ASSETS 2015 2014 2013 year end rate Eur/Usd 1,089 1,214 1,379 FX Gain/(Loss) mm/euro 1,7 2,8 -1,2 CONSOLIDATION PROCESS 2015 2014 2013 year end rate Eur/Usd 1,089 1,214 1,379 Net Equity change (mm/eu
Slide 32: Order Book 2015
Order Book 2015 ENERGY € mln 72,1 60 45,2 44,7 TRENCHERS 45 € mln 30 120 17,8 107,1 100 15 88,4 80 0 60 45,7 Order 2015 Order Order book Revenues Intake book 40 FY 2014 FY 2015 27,0 20 0 RAILWAY Order book 2015 Order Order book FY2014 Revenues Intake FY2015 € mln 15 10 17,8 7,7 5,9 5,6 71.2 5 3,8 45
Slide 33: Outlook 2016
Outlook 2016 OPPORTUNITIES INCREASING DEMAND OF MODERNIZATION OF POWER GRIDS WORLDWIDE PROJECTS OF GRIDS INTERCONNECTION AND INTEGRATION OF RENEWABLE ENERGIES IN THE NETWORKS GROWING OPPORTUNITIES IN THE TELECOM AND FIBER OPTIC MARKET BOTH FTTH AND LONG DISTANCE THREATS GROWING PRESSURE ON ENVIRONME
Slide 34: Summary 2015 Profit & Loss statement
Summary 2015 Profit & Loss statement Delta vs Profit & Loss Account (€ mln) 2015 2014 Delta % 2014 Net Revenues 164,4 114,9 49,5 43,1% Raw materials costs (-) (82,8) (55,5) (27,3) 49% Cost for services (-) (27,3) (19,0) (8,3) 44% Personnel Costs (-) (34,5) (26,1) (8,4) 32% Other operating revenues/c
Slide 35: Summary 2015 Balance Sheet
Summary 2015 Balance Sheet Balance Sheet (€ mln) 2015 2014 Inventory 62,7 60,6 Accounts receivable 50,9 41,3 Accounts payable (-) (39,0) (34,2) Op. working capital 74,6 67,7 Other current assets (liabilities) (11,1) (9,8) Net working capital 63,5 57,9 Tangible assets 65,3 48,1 Intangible assets 13,8
Slide 36: 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 acc