Slide 1: STAR Conference – TESMEC Presentation
Stringing Energy Automation STAR Conference – TESMEC Presentation Railway Trencher London, 22nd October 2019 22nd October 2019 www.tesmec.com
Slide 2: Index
Index > Corporate Strategy > 2019.H1 Results > 2019 Outlook 22nd October 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: Combine operational data in the cloud and apply advanced analytics
To be for Railways, Energy & Trenchers COMBINE OPERATIONAL DATA IN THE CLOUD AND APPLY ADVANCED ANALYTICS Artificial Intelligence Cloud © 2019. All rights reserved – 22nd October 2019 5
Slide 6: Towards a carbon neutral factory
Towards a carbon neutral factory ✓ Grassobbio, Patrica and Monopoli plants are fed by solar panels ✓ All Italian plants are certified according to ISO 9001-14001-45001 ✓ By 31/12/2019 the main products of Tesmec Automation will be ISO 14067:2018 (Carbon footprint of products) certified ✓ The whole p
Slide 7: Focus on sustainable technology
Tesmec Green products STRINGING ENERGY AUTOMATION > FULL ELECTRIC MACHINE > Custom solutions for Smart Grid management Zero emissions underground cable laying > Energy consumption optimization through carbon footprint equipment Focus on sustainable RAILWAY technology TRENCHER SUPER GRID AND SMART GR
Slide 8: Factories
Factories TRS RAIL STR AUT Tesmec SPA Grassobbio Tesmec SPA Endine Tesmec SPA Sirone (precision machining work) Marais Durtal (FR) Tesmec USA Alvarado (USA) Tesmec Rail Monopoli Tesmec Automation Patrica Tesmec Automation Padova-Fidenza © 2019. All rights reserved – 22nd October 2019 8
Slide 9: Why our Stringing Solutions
Why our Stringing Solutions “ Digital Machines & Jobsite Management Services, Innovative methodologies for transmission lines construction & refurbishment. TECHNOLOGY FOR FAST EFFICIENT STRINGING OPERATIONS ” A new concept of integrated systems 4.0 for energy transport and distribution: Simple, Safe
Slide 10: Why our Stringing Solutions: Continuous Linear Puller
Why our Stringing Solutions FASTER A new reconductoring process: Time reduction in outage CONTINUOUS LINEAR PULLER period and in jobsite operations. CHEAPER Less vehicles, equipment and operators for a cost- effective jobsite. SAFER No more working at height and minimum level of risks for operator.
Slide 11: Why our Stringing Solutions: Full electric machine
Why our Stringing Solutions A solution for tomorrow: Full electric machine with no heat engine on board. FULL ELECTRIC MACHINE Battery storage (LiFePO4) on board. Plug-in charging system. Designed for urban projects of cable laying and pipe rehabilitation. While pulling the machine makes no noise at
Slide 12: Main worldwide experience
Main worldwide experience Reconductoring - USA UG Cable Laying - UK NHPL Texas jobsite Live line reconductoring operations (with Romford a by-pass phase); CTC ACCC conductor 3 x 33 kV cable pulling Top efficiency - BRAZIL Fjord crossing - NORWAY Extreme temperature - RUSSIA Stringing Machines 4.0 -
Slide 13: Why our Energy Automation Solutions
Why our Energy Automation Solutions “ Grid Reliability, Efficiency and Security: providing tailored and integrated solutions to face fast-changing grid challenges. ” PROTECTION & METERING SOLUTIONS FOR SMART GRID From selectivity to reliability providing uninterrupted operation and increasing grid e
Slide 14: Main worldwide projects
Main worldwide projects Smart Metering solution for MV Grids - RUSSIA Real-time accurate measurement of energy parameters in 6-10kV power lines and identification of technical and non-technical losses Protection and Control Teleprotection solution Fault Passage indication (FPI) for Telecommunication
Slide 15: Tesmec Automation: design, engineering and after-sales services
Tesmec Automation: design, engineering and after-sales services Power Line Carrier Line Trap Teleprotection Line Matching Unit Smart Metering Tool SMART TELE- METERIN COMMUNICATION G Protection relays RTU for secondary REMOTE SMART GRID CONTROL APPLICATION substations Remote Fault Location Isolation
Slide 16: Why our Railway Solutions
Why our Railway Solutions “ Fleet management and diagnostic of infrastructures for safety, through integrated platform for data management GLOBAL CATENARY SPECIALIST ” Global catenary specialist for the installation and maintenance of railway lines CONNECTED VEHICLES High technological solutions for
Slide 17: Main worldwide experience
Main worldwide experience Safety of Railway Infrastructure - ITALY 2 Diagnostic Vehicles Catenary maintenance - ITALY RER Catenary renewal - FRANCE Stringing and recovering wires - USA Installation of the contact line and 88 Multipurpose railway vehicles 9 vehicles (n.6 different models) 1 Work car
Slide 18: Railway Segmentation
Railway Segmentation 5 STREAMS: 1. Stringing 2. Maintenance 3. Diagnostic 4. Components 5. Full Maintenance Service (FMS) TECHNOLOGY & SAFETY STRINGING MAINTENANCE DIAGNOSTIC DIAGNOSTIC SOLUTIONS VEHICLE VEHICLE PLATFORM TIME Manual Mechanized operations Automated > Fleet Management operations opera
Slide 19: Railway Business: 2019-2020
Railway Business: 2019-2020 ▪ Catenary installation & Maintenance ▪ Special Technological vehicles - Stringing ▪ FALCO - Diagnostic vehicles ▪ FALCO Developments: - Bimodal vehicle ▪ CENTRALIZED PLATFORM – Unmanned diagnostic (software + devices) > New Markets > Cooperation with Accenture 2019 2020’
Slide 20: Why our Trencher Solutions
Why our Trencher Solutions “ Advanced working methodology: integrated systems & technological solutions for a complete jobsite management ” VALUE CHAIN Complete offer package combining internal and partner’s solutions DIGITALIZATION Complete range of machines equipped with the latest digital technol
Slide 21: Main worldwide experience
Main worldwide experience Fiber Optics Laying - GERMANY Surface mining Gold - RUSSIA Georadar Explorer 2.0 & Sidecut 1475 Rock Hawg Gas Pipeline - USA South Mutlaa project - KUWAIT Riyadh metro station - SAUDI ARABIA Limestone quarry - UZBEKISTAN 1150XHD chainsaw 1475 & 1675 Chainsaw EVO 1475 Rock H
Slide 22: Towards 5G – Next generation of broadband connection
Towards 5G – Next generation of broadband connection Main features The costs and speed of building new 5G • Massive device connectivity networks depend to a large extent on how • Ultra reliability quickly broadband providers can dig trenches • High speeds along roads to lay fiber conduit. • Low comm
Slide 23: Tesmec: Fiber Value Proposition
Tesmec: FIBER VALUE PROPOSITION ✓ Digital & connected solutions: SAFETY first and easier PROJECT MANAGEMENT ✓ Better overall QUALITY ✓ Clean & Fast working methodologies ✓ INTEGRATED value chain: ▪ underground utilities detection and mapping ▪ trenching ▪ vacuum systems ▪ home connection ▪ road surf
Slide 24: Continuous Surface Mining Advantages
Continuous Surface Mining Advantages NO DRILL & BLAST NO EXPLOSIVES HANDLING INCREASED OUTPUT SAFE OPERATIONS OF THE CRUSHERS & LOWER ENERGY CONSUMPTION due to smaller size of input material RELIABILITY AND EXTENDED LIFE OF THE EQUIPMENT due to high quality operation & maintenance OPTIMAL EFFICIENCY
Slide 25: Main opportunities
Main opportunities BAUXITE COAL LIMESTONE GOLD © 2019. All rights reserved – 22nd October 2019 25
Slide 26: Tesmec: Surface Mining Value Proposition
Tesmec: SURFACE MINING VALUE PROPOSITION ✓ Focus on: PRODUCTIVITY, EXCAVATED SMART MINING SOLUTIONS MATERIAL SIZE, OPERATIVE COSTS ✓ Safe & efficient working methodologies ✓ INTEGRATED solutions: EQUIPMENT + SERVICES ▪ Project Analysis ▪ Site survey ▪ Rock analysis ▪ Machine customization ▪ Estimati
Slide 27: Index
Index > Corporate Strategy > 2019.H1 Results > 2019 Outlook © 2019. All rights reserved – 22nd October 2019 27
Slide 28: 2019.H1 Stringing business highlights
2019.H1 Stringing business highlights NEW METHODOLOGY FOR RECONDUCTORING NEW DEAL FOR NORTH AMERICA MARKET • Age of grid in development Countries is higher than • Reorganization of our presence on energy sector conductor lifespan • New deals with partner for business development • Grant the quality
Slide 29: 2019.H1 Energy Automation business highlights
2019.H1 Energy Automation business highlights KEY OPPORTUNITIES IN GROWING MARKET SEGMENTS KEY OPPORTUNITIES IN INTERNATIONAL MARKETS ENEL MARKET: RUSSIA: - Continuous supplies of MV Smart devices in Italy and - Growing direct supplies of SMT on the Rosseti Grid South America - Start-up of supplies
Slide 30: 2019.H1 Trencher business highlights
2019.H1 Trencher business highlights KEY OPPORTUNITIES IN 5G&FIBER BUSINESS KEY OPPORTUNITIES IN SURFACE MINING BUSINESS Main targets: USA, UK, Africa Main targets: Bauxite, coal, limestone, alluvial gold • Digital & connected solutions: SAFETY first and easier • Focus on: PRODUCTIVITY, EXCAVATED MA
Slide 31: 2019.H1 Railway business highlights
2019.H1 Railway business highlights INNOVATIVE FAST & SAFE METHODOLOGY SOLUTIONS TO ASSURE RAILWAY INFRASTRUCTURES for CATENARY MAINTENANCE OPERATIONS RELIABILITY & SAFETY • Certified solution (with remote control systems) for • Specialized vehicles equipped with DIAGNOSTIC DEVICES replacement of th
Slide 32: 2019.H1 Closing
2019.H1 Closing (1) + 5,3% at constant currencies GROUP (€ mln) 2019.H1 2018.H1 Delta % (2) The EBITDA has not yet impacted by the full REVENUES 97,5 91,1 7,0% (1) effectiveness of the positive management EBITDA (2) (3) 12,1 9,3 29,6% actions rolled out from September of the last % on Revenues 12,4%
Slide 33: 2019.H1 Closing by segment
2019.H1 Closing ENERGY 2019.H1 2018.H1 Delta % Revenues 21,9 20,8 5,6% > Energy Automation Growth EBITDA* 2,8 2,6 11,1% > European Market Driven % on Revenues 12,9% 12,3% * EBITDA ante IFRS 16 would have been 2,3 M€ TRENCHERS 2019.H1 2018.H1 Delta % Revenues 59,2 60 -1,3% > Marais Profitability Turn
Slide 34: 2019.H1 Revenues by geographical area
2019.H1 Revenues: sales spread over different geographical area INTERNATIONAL SCALE AND EXPOSURE TO GROWING ECONOMIES JOINT WITH A GROWING IMPORTANCE OF THE ITALIAN MARKET 2019.H1 2018.H1 20% 16% 23% 25% 10% 9% 19% 16% 21% 26% 8% 7% ITALY: impact of railway business & automation Italy Europe Middle
Slide 35: 2019.H1 Differences in Exchange
2019.H1 Differences in Exchange Euro mln DIFFERENCES IN EXCHANGE 1 0,3 0,5 0,0 0 -0,5 2018.H1 2019.H1 GROUP (Euro mln) 2018.H1 2019.H1 Differences in Exchange 0,0 0,3 of which: Realised (0,1) 0,1 Unrealised 0,1 0,2 Differences in Exchange for currency: USD 0,5 0,0 ZAR (0,4) 0,0 OTHER (0,1) 0,3 Total
Slide 36: 2019.H1 EBITDA
2019.H1 EBITDA € mln 15,0 1,3 12,5 12,1 1,2 10,0 0,3 9,3 7,5 5,0 2,5 0,0 EBITDA Energy Trencher Railway EBITDA 2018.H1 2019.H1 * The impact of IFRS 16 is around 1,8 M€ The EBITDA is positively impacted by the results of the TRS & Railways 2018.H1 segment. 2019.H1 © 2019. All rights reserved – 22nd O
Slide 37: 2019.H1 Financial Results
2019.H1 Financial Results Financial Information (€ mln) 2019.H1 2018 Net Working Capital 66,3 48,9 Non Current assets 67,2 67,3 Right of use - IFRS 16 18,2 0,0 Other Long Term assets/liabilities 4,6 4,8 Net Invested Capital 156,4 121,0 Net Financial Indebtness 94,1 77,7 Lease liability - IFRS 16 18,
Slide 38: Net Financial Position Evolution
Net Financial Position Evolution OPERATING NET FINANCIAL POSITION € mln 140 120 18,4 112,5 100 2,6 94,1 17,4 6,9 77,7 (10,5) 80 60 40 20 0 NFP OFCF NWC Capex Int.exp. NFP Right of NFP FY 2018 Net 2019.H1 Use* 2019.H1 * Impacted of IFRS 16 The positive operating free cash flow has been impacted by th
Slide 39: Net Financial Position Evolution
Net Financial Position Evolution OPERATING NET FINANCIAL POSITION € mln 140 120 112,5 112,5* 96,7 96,9 93,5 98,7 92,9 100 91,5 92,1 85,2 77,7 92,6 94,1 80 60 40 20 0 2016 1Q 2017 1H 2017 9M 2017 2017 1Q 2018 1H 2018 9M 2018 2018 1Q 2019 1H 2019 * From 1st January 2019, the new IFRS 16 has been intro
Slide 40: Index
Index > Corporate Strategy > 2019.H1 Results > 2019 Outlook © 2019. All rights reserved – 22nd October 2019 40
Slide 41: 2019.H2 Stringing business focus
2019.H2 Stringing business focus GREEN PRODUCT LINE NEW MARKET POSITIONING IN CHINA ✓ Zero emissions product line dedicated for urban area ✓ Tesmec New Technology antenna for green & digital technologies in cooperation with local manufacturer ✓ Approach with marketing actions on specific areas: ✓ Hu
Slide 42: 2019.H2 Energy Automation business focus
2019.H2 Energy Automation business focus TOWARDS CYBERSECURITY REQUIREMENTS FOCUS ON ENGINEERING SOLUTIONS Focus on reliable solutions for secure communication and Development of an engineering solutions starting from M2M and M2H interface in order to provide stability of Tesmec ready-to-go telecomm
Slide 43: 2019.H2 Trencher business focus
2019.H2 Trencher business focus TOWARDS 5G – NEXT GENERATION OF BROADBAND FOCUS ON DIGITAL AND SUSTAINABLE WORKING CONNECTION PROCESSES The costs and speed of building new 5G networks depend to a The acceptance and use of Surface Miners in mining large extent on how quickly broadband providers can d
Slide 44: 2019.H2 Railway business focus
2019.H2 Railway business focus CERTIFIED & ENVIRONMENTALLY FRIENDLY INFRASTRUCTURES RELIABILITY & SAFETY METHODOLOGY • INTERNATIONALIZATION OF HIGH-QUALITY CENTRALIZED PLATFORM Unmanned diagnostic SOLUTIONS (software + devices) ▪ Automated operations Verification and validation process through ▪ Fle
Slide 45: 2019 outlook
2019 outlook MACRO MARKET + - TRENDS Digital Transformation & Industry 4.0 xxx Economy is slowing Telecom – 5G China – USA → commercial Energy transition Middle East, Iran → embargo Mines – new methodology ENERGY > New products: impact on revenues > New USA agreement: Transmission and Distribution >
Slide 46: Backlog
BACKLOG Euro/mln BACKLOG 31/03/2019 Sales Q2 2019 In take Q2 30/06/2019 28,0 28,4 11,6 12,0 Energy 68,0 72,8 Trencher 28,2 33,0 103,5 95,7 7,8 Railway 0,0 Total 199,5 47,6 45,0 196,9 © 2019. All rights reserved – 22nd October 2019 46
Slide 47: Summary 2019.H1 Profit & Loss statement - Appendix A
Summary 2019.H1 Profit & Loss statement - Appendix A Delta vs Profit & Loss Account (Euro mln) 2019.H1 2018.H1 Delta % 2018 Net Revenues 97,5 91,1 6,4 7,0% Raw materials costs (-) (43,2) (39,3) (3,9) 10,0% Cost for services (-) (17,7) (15,4) (2,3) 14,9% Personnel Costs (-) (25,6) (24,4) (1,2) 5,0% O
Slide 48: Summary 2019.H1 Balance Sheet - Appendix B
Summary 2019.H1 Balance Sheet - Appendix B Balance Sheet (€ mln) 2019.H1 2018 Inventory 97,8 73,6 Accounts receivable 52,5 52,6 Accounts payable (-) (57,9) (54,4) Op. working capital 92,4 71,8 Other current assets (liabilities) (26,1) (22,9) Net working capital 66,3 48,9 Tangible assets 44,7 45,3 Ri
Slide 49: 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 50: www.tesmec.com
TESMEC www.tesmec.com