Slide 1: Virtual STAR Conference TESMEC presentation
Stringing Energy Automation Virtual STAR Conference Railway Trencher TESMEC presentation www.tesmec.com 26 May 2020
Slide 2: Index
Index > Strategic overview > 2020.Q1 Business highlights and Results > Outlook 2020-2021 26 May 2020 2
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
Slide 4: 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
Slide 5: TESMEC target: highest level of safety & business continuity
COVID-19 outbreak as a global emergency - Extraordinary measures to fight the pandemic - Slowdown activities from end of February and block of the deliveries Slowdown, block - Grassobbio, Endine, Sirone, Fidenza and Padova: stop from 23 March to 4 May & lockdown of production - Patrica and Monopoli:
Slide 6: Index
Index > Strategic overview > 2020.Q1 Business highlights and Results > Outlook 2020-2021 26 May 2020 6
Slide 7: 2020.Q1 Stringing business highlights
2020.Q1 Stringing business highlights CLP first jobsite Development of double range Jobsite in Michigan City (Indiana) with great Development of double range of machines: results. digital and hydraulic Strong marketing activities to introduce Campaign dedicated to full electric new maintenance metho
Slide 8: 2020.Q1 Energy Automation business highlights
2020.Q1 Energy Automation business highlights Enel Market: new opportunities Russia: customer-driven approach Awarded tenders for protection and control Continuous support on installed base and solutions to properly secure the electrical grid evaluation of new business models Italian Market: Continu
Slide 9: 2020.Q1 Trencher business highlights
2020.Q1 Trencher business highlights Rental Business Surface Mining Business 4SERVICE acquisition New markets development especially in Africa EVO series developments 5G & Fiber Optics First 975EVO RH delivered to Australia New project, started to catch post-covid opportunities (focus on USA and EUR
Slide 10: 2020.Q1 Railway business highlights
2020.Q1 Railway business highlights Safety and Reliability Czech Republic: delivery of the 1st unit All certified vehicles in convoy running on active line High technological level reached by our railway thanks to the technological safety system on board. systems and quality of Tesmec know-how. Litu
Slide 11: 2020.Q1 Closing
2020.Q1 Closing 2020.Q1* Delta vs. (1) Affected by the slowdown in production GROUP (€ mln) 2020.Q1 2019.Q1 Proforma% proforma and commercial activities due to the COVID-19 health emergency and by the REVENUES (1) 34,0 31,8 49,8 -31,8% blocks of the transportation of goods. The EBITDA (2) (3) 4,1 2,
Slide 12: 2020.Q1 Closing by segment
2020.Q1 Closing ENERGY 2020.Q1 2019.Q1 Delta % > The decrease related to the Stringing business is due to the production and logistic blocks in Revenues 7,4 10,3 -28,3% March EBITDA 0,7 1,2 -44,5% > The slowdown in production activities in the % on Revenues 9,3% 12,1% quarter impacted the Energy Aut
Slide 13: 4SERVICE
4SERVICE Tesmec Group – Key financials Description Tesmec Group ➢ The consolidation runner derives from the Tesmec Group aggregation of 4Service (sale and rental Aggregated 2020.Q1 business) and Tesmec Group, taking into 2020.Q1 Sales 31,8 34,0 consideration intercompany elisions Operating Costs (29
Slide 14: Backlog
BACKLOG Euro/mln BACKLOG 31/12/2019 Sales 2020.Q1 In take 2020.Q1 31/03/2020 34,0 38,0 11,4 Energy 7,4 65,1 60,9 Trencher 16,8 12,7 88,9 7,6 82,8 Railway 1,5 Total 188,0 31,8 25,6 181,7 26 May 2020 14
Slide 15: 2020.Q1 Revenues: sales spread over different geographical area
2020.Q1 Revenues: sales spread over different geographical area INTERNATIONAL SCALE AND EXPOSURE TO GROWING ECONOMIES JOINT WITH A GROWING IMPORTANCE OF THE ITALIAN MARKET 2020.Q1 2019.Q1 24% 19% 22% 22% 6% 26% 14% 21% 21% 4% 18% 3% ITALY: railway business & automation impact Italy Europe Middle Eas
Slide 16: 2020.Q1 Differences in Exchange
2020.Q1 Differences in Exchange Euro mln DIFFERENCES IN EXCHANGE 1 0,7 0 -1 (0,7) (1,4) -2 2018.Q1 2019.Q1 2020.Q1 GROUP (Euro mln) 2018.Q1 2019.Q1 2020.Q1 Differences in Exchange (0,7) 0,7 (1,4) of which: Realised (0,1) 0,1 (0,2) Unrealised (0,6) 0,6 (1,2) Differences in Exchange for currency: USD
Slide 17: 2020.Q1 EBITDA
2020.Q1 EBITDA € mln 8,0 7,0 6,0 5,7 (0,5) (2,4) 5,0 4,0 3,0 (0,3) 2,5 2,0 1,0 0,0 2019.Q1 Energy Trencher Railway 2020.Q1 Impacted of the spread by Covid-19 which caused the turnover 2019.Q1 reduction and the consequent missing margins to cover fixed costs. 2020.Q1 26 May 2020 17
Slide 18: 2020.Q1 Financial Results
2020.Q1 Financial Results Financial Information (€ mln) 2020.Q1 2019 Net Working Capital 74,6 73,0 Non Current assets 68,2 66,8 Right of use - IFRS 16/IAS 17 19,4 20,1 Other Long Term assets/liabilities 4,9 4,2 Net Invested Capital 167,1 164,2 Net Financial Indebtness 105,0 98,5 Lease liability - IF
Slide 19: Working Capital evolution
Working Capital evolution 90 7,1 0,7 (8,4) 80 2,5 (0,3) 70 60 50 40 73,0 74,6 30 20 10 0 2019 Inventories WIP Trade Trade Other current 2020.Q1 Net Working Receivables Payables ass. / liab. Net Working capital capital Days Days € Mln 2020.Q1 2019.FY 2020.Q1 2019.FY Trade Receivables 59,5 67,9 124 12
Slide 20: Net Financial Position Evolution
Net Financial Position Evolution OPERATING NET FINANCIAL POSITION € mln 140 18,8 123,8 120 1,2 99,8 (1,3) 0,8 4,5 105,0 100 80 60 40 20 0 NFP OFCF NWC Capex Int.exp. NFP Right of NFP 2019 Net 2020 Use* 2020.Q1 * Impacted by IFRS 16 Less cash generation due to the missing turnover linked to Covid-19
Slide 21: Net Financial Position Evolution
Net Financial Position Evolution OPERATING NET FINANCIAL POSITION € mln 140 118,0 123,8* 120 112,5 112,5 115,6 96,7 96,9 98,7 92,9 100 91,5 93,5 92,1 85,2 99,8 105,0 77,7 94,1 97,8 80 92,6 60 40 20 0 2016 1Q 1H 9M 2017 1Q 1H 9M 2018 1Q 1H 9M 2019 1Q 2017 2017 2017 2018 2018 2018 2019 2019 2019 2020
Slide 22: Index
Index > Strategic overview > 2020.Q1 Business highlights and Results > Outlook 2020-2021 26 May 2020 22
Slide 23: Outlook 2020-2021
Outlook 2020-2021 TESMEC is focused in strategic market segments: FOCUS ON STRATEGIC ▪ SMART GRIDS & ENERGY TRANSITION xxx MARKETS ▪ 5G AND TELECOM ▪ INFRASTRUCTURES & RAILWAYS ▪ ENERGY: increasing needs of “smart and digital” systems, focus on energy transition and carbon free solutions DEVELOPMENT
Slide 24: Tesmec KPI
Tesmec KPI Main KPI 1Q and 2Q will be affected by the spread of COVID-19 worldwide with ▪ Focus on growing and hi-tech market a Turnover reduction compared last segments year ▪ Turnover will be linked to the key sectors: Turnover 5G opportunities, digitalization; Diagnostic, 3Q and 4Q will recover A
Slide 25: Strengthening the Tesmec Group
Strengthening the Tesmec Group April-May June-August Sept-Nov 1) Shareholder loan 1) Loan guaranteed by 1) Share capital increase SACE 2) Acquisition of the ✓ investments ✓ In the interest of all shareholders: minorities Rental Business ✓ supply chain and main shareholders acquisition ✓ salaries ✓ B
Slide 26: Share Capital Increase
Share Capital Increase The Shareholders Meeting authorizes the Board of Directors to increase May the Share Capital up to 50 M€ Within August a new Strategic Business Plan will be released. From June to September According to the plan the BoD will define the volume of share capital increase, the pri
Slide 27: 2020 Trencher business outlook
2020 Trencher business outlook New Digging Projects 5G & Fiber Optics market development Middle East, Egypt Cleanfast in USA Demos and development Renewable Projects Digital & Connected systems Wind Farm (Australia) New features, trencher remote control Automatic cables laying system Available for a
Slide 28: 2020 Stringing outlook
2020 Stringing outlook New cooperation in China Growth in North America markets Development of a strategic collaboration with one Expected strong business growth driven by leader in transmission sector fully owned by SGCC strategic reorganization of sales network and to obtain a better local positio
Slide 29: 2020 Energy Automation outlook
2020 Energy Automation outlook Enel Market: innovative technologies available Russia: improving our position in the market Diversification through availability Reinforce the perception of Tesmec as of new solutions a new well-known competitive Player Italy: Growth in the Transmission market Foreign
Slide 30: 2020 Railway outlook
2020 Railway outlook PUSH our INTERNATIONALIZATION sales CONSOLIDATION of the investment -France -North-East Europe -USA Centre of excellence for the development of maintenance & -Czeck Republic -Central Asia diagnostic vehicles with integrated systems CONNECTED VEHICLES CENTRALIZED PLATFORM -Certif
Slide 31: Summary 2020.Q1 Profit & Loss statement - Appendix A
Summary 2020.Q1 Profit & Loss statement - Appendix A Delta vs Profit & Loss Account (Euro mln) 2020.Q1 2019.Q1 Delta % 2019.Q1 Net Revenues 31,8 49,8 (18,0) -36,1% Raw materials costs (-) (10,0) (23,5) 13,5 -57,5% Cost for services (-) (6,9) (8,1) 1,2 -15,0% Personnel Costs (-) (12,1) (13,0) 0,8 -6,
Slide 32: Summary 2020.Q1 Balance Sheet - Appendix B
Summary 2020.Q1 Balance Sheet - Appendix B Balance Sheet (€ mln) 2020.Q1 2019 Inventory 77,1 69,9 Work in progress contracts 17,0 16,3 Accounts receivable 59,5 67,9 Accounts payable (-) (55,0) (57,5) Op. working capital 98,6 96,7 Other current assets (liabilities) (23,9) (23,6) Net working capital 7
Slide 33: 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
Slide 34: www.tesmec.com
TESMEC www.tesmec.com