Slide 1: Integrated Solutions Provider
Stringing Automation Integrated Solutions Provider Railway Trencher Star Conference – 20th March 2019 www.tesmec.com © 2019. All rights reserved
Slide 2: Index
Index > Company profile > Business overview > 2018 Results & 2019 Outlook © 2019. All rights reserved – 20th 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: Glocal Strategy
Global partner with local presence GLOCAL STRATEGY > Headquarters located in Grassobbio, close to Milan. 8 Production plants +850 people +65 years > "Glocal" growth strategy: we 6 in Italy, 1 in USA,1 in France of experience are global, but at the same time we have a local presence in the most strat
Slide 6: Strong commitment on Innovation, Quality & Sustainability
Strong commitment on Innovation, Quality & Sustainability INNOVATION “3xI” strategy INTERNATIONALIZATION key drivers for growth INTEGRATION around Euro 16 million INNOVATION investments in innovative projects R CERTIFICATIONS ✓ ISO 9001:2015 & ✓ ISO 14001:2015 QUALITY D SUSTAINABILITY ✓ ISO 45001:20
Slide 7: History of innovation
History of innovation Expansion Investments & strategy in the acquisitions to TRENCHER railway complete the product line business portfolio for development SMART GRIDS From BUSINESS MODEL “3xi” strategy PIONEER in FAMILY company stringing to PUBLIC INTEGRATION: INNOVATION solutions&service INTERNATI
Slide 8: Index
Index > Company profile > Business overview > 2018 Results & 2019 Outlook © 2019. All rights reserved – 20th March 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: 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 11: 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 12: 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 13: 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 14: 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 15: 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 16: 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 17: Index
Index > Company profile > Business overview > 2018 Results & 2019 Outlook © 2019. All rights reserved – 20th March 2019 17
Slide 18: 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 19: 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 20: 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 21: 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 22: 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 23: 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 24: 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 25: 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 26: 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 27: 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 28: 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 29: 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 © 2019. All r
Slide 30: 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 © 2019. All rights reserved – 20th March 2019 30
Slide 31: 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 32: 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 © 2019. All rights reserved – 20th March 2019 32
Slide 33: 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 34: 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 35: 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 36: www.tesmec.com
TESMEC www.tesmec.com