Tesmec

Investor Presentation • Mar 10, 2025

2024 RESULTS

Grassobbio, March 10th 2025

2024 TESMEC GROUP RESULTS

TESMEC GROUP AT A GLANCE

Technology partner in markets driven by ENERGY TRANSITION, DIGITALISATION and SUSTAINABILITY with INNOVATIVE, VALUE -ADDED INTEGRATED SOLUTIONS for the construction, maintenance and efficiency of the INFRASTRUCTURES related to the TRANSPORT AND DISTRIBUTION OF ENERGY, DATA AND MATERIAL

3

• Solutions for power lines construction & maintenance
• Advanced methodologies for automating jobsite

• Zero emissions machines

• Telecommunications solutions for HV Grids

• Grid Management: protection and metering solutions
• Sensors for fault passage indication, protection and monitoring

ENERGY STRINGING ENERGY AUTOMATION TRENCHERS & SURFACE MINERS RAILWAY

• Telecom networks, FTTH & long distance, power cable installation
• Oil & Gas, Water pipelines

• Bulk excavation, Quarries & Surfaces mining

• Catenary lines installation & maintenance

• Diagnostic vehicles and systems
• Integrated platform for safe infrastructure

Focus on developing innovative technologies and products to increase green and digital solutions.

Reduce emissions and environmental impact through sustainable corporate processes.

R&D & INNOVATION ENVIRONMENTAL IMPACT HUMAN RESOURCES & GOVERNANCE

Invest in the well-being of employees and local communities through health, safety, training and welfare initiatives by developing an effective sustainable governance framework covering business ethics, human rights, supply chain and ESG risks.

2024 TESMEC GROUP RESULTS

01. Tesmec Group at a glance

02.	Opening remarks
03.	2024 Group Financials & Key Metrics
04.	2025 Business Guidelines
05.	Annex

TESMEC: TRANSFORM TO GROW FROM A POSITIVE DISRUPTIVE 2024 TO EMBRACING A LEANER FUTURE

Continuing the transformation started in 2024

Prioritization of profitability and cash generation over volume

March 10th, 2025

Initiatives to strengthen the industrial base and improve capital efficiency/financial structure

TESMEC: TRANSFORM TO GROW FROM A POSITIVE DISRUPTIVE 2024 TO EMBRACING A LEANER FUTURE

Key Pillars

Growing long-term trends in cross-cutting development drivers: energy transition, sustainability and digitalization

Selective approach on key growth sectors (telecoms, smart grids, renewables, mining, rail)

Leverage flexible industrial footprint and international presence

Focused and coherent portfolio, value-driven business models (including through agreements with third parties leading to synergies and asset valorization)

ENERGY AUTOMATION

Significant backlog growth with internationalization prospects and portfolio diversification

RAILWAY

Market diversification through internalization and high-value added diagnostic business model

ENERGY STRINGING

Growing demand driving positive momentum

TRENCHERS

2024* HIGHLIGHTS

Positive discontinuity compared to 2023, thanks to focus on higher value-added activities, management efficiency and the effect of the joint venture operation in France

Joint venture for Groupe Marais rental business, aiming at commercial synergies, optimization of invested capital, valorization of assets, already leading to international opportunities

Strengthening of the Energy business with double-digit volume growth in Stringing and positive demand, coupled with growth in the Automation business based on a robust and growing backlog development

Solid growth in Middle East and Africa (Trenchers), confirming their strategic importance

Industrial footprint reorganization

Strategic initiative in France to strengthen the Group's competitive position and synergies between businesses, with ongoing market opportunities for both Energy and Rail.

Swiss Federal Railways tender win marks milestone in positioning rail diagnostic vehicles

BUSINESS PROGRESSOn-going efficiency recovery actions initiated at the end of 2023, which already led to an important reduction of operating costs

Marketing and business development efforts, showcasing new solutions and facilitating international networking

WHAT COULD HAVE

WORKED BETTER

Net result impacted by loss of discontinuing operations of Groupe Marais

Increase in net working capital due to higher receivables. Reduction of inventories still not reflecting full reduction potential

Railway results impacted by completion of older, lower-margin contracts and delays by contracting stations in defining technical aspects necessary to start up awarded contracts

Trencher: difficulties in the US, with integration plan underway to improve business and organization, and delays in Australia, but positive 2025 positive outlook thanks to first contract awarded after change of management

2024 HIGHLIGHTS

2024 TESMEC GROUP RESULTS

• 01. Tesmec Group at a glance

• 02. Opening remarks

• 04. 2025 Business Guidelines

• 05. Annex

2024* SAME PERIMETER PROFIT&LOSS STATEMENT

"2024 same perimeter" includes Groupe Marais discontinuing operations results → "before" JV operation in France

Profit & Loss	2023	2024	2024	Δ
(€ Mln)	ACTUAL	SAME PERIMETER	ACTUAL	2024 ACTUAL VS. 2023 ACTUAL
REVENUES	251,9	252,8	239,5	(12,4)
EBITDA	34,0	41,0	41,1	+7,1
% on Revenues	13,5%	16,2%	17,2%
EBIT	11,1	17,0	20,4	+9,3
% on Revenues	4,4%	6,7%	8,5%
Net financial charges	(13,3)	(18,5)	(16,9)	(3,6)
Differences in Exchange	(2,3)	0,3	0,3	+2,6
RESULT BEFORE TAXES	(4,6)	(1,2)	3,8	+8,4
TOTAL NET RESULT	(2,7)	(4,8)	(4,8)	(2,1)
Memo PFN	Dec. 31, 2023	Dec.31, 2024	Dec.31, 2024	Δ 2024 ACTUAL VS. 2023 ACTUAL
NFP post IFRS 16	153,5	162,6	147,0	(6,5)

2024* ACTUAL PROFIT&LOSS STATEMENT

"2023 pro-forma" excludes Groupe Marais discontinuing operations results → "after" JV operation in France

Profit & Loss (€ Mln)	2024	2023	Δ
	ACTUAL	PRO-FORMA	vs. 2023
REVENUES (1)	239,5	236,0	1,5%
EBITDA (2)	41,1	32,8	25,2%
% on Revenues (2)	17,2%	13,9%
EBIT	20,4	13,0	56,9%
% on Revenues	8,5%	5,5%
Net financial charges (3) Differences in Exchange (3)	(16,9) 0,3	(12,3) (2,2)	(37,4)% 114,1%
PROFIT BEFORE TAXES AND BEFORE DISCONTINUING OPERATIONS	3,8	(1,5)	359,5%
NET RESULT FROM CONTINUING OPERATIONS (4)	0,2	(0,3)	178,4%
NET RESULT FROM DISCONTINUING OPERATIONS	(5,1)	(2,4)	110,8%
TOTAL NET RESULT	(4,8)	(2,7)	78,5%

Memo PFN	Dec.31, 2024 ACTUAL	Dec. 31, 2023 ACTUAL	Δ vs.2023
NFP ante IFRS 16	113,2	114,3	(1,1)
of which: NWC	99,8	86,8	+13,0
NFP post IFRS 16 (5)	147,0	153,5	(6,5)

(1) Revenues: slight improvement compared to proforma 2023, with positive contribution from the Energy and Rail sectors, up by 14,1% and 7,4% respectively compared to previous year

(2) EBITDA: +25,2% thanks to improved sales mix and reduced operating costs (especially in Trenchers), as result of management efficiencies and strategic initiatives in line with the Group's "value over volume" approach

(3) Increase in financial expenses, due to the "fullyear" effect of the increase in interest rates, applied on an intra-year higher level of debt

(4) Continuing Operations back to marginal profit

(5) 2024 NFP reflecting positive effect from Groupe Marais joint venture operation

2024* STATEMENT OF FINANCIAL POSITION

	Dec. 31, 2024	Dec. 31, 2023
Net Working Capital	99,8	86,8
Fixed Assets	106,9	119,6
Other Long Term assets/liabilities	21,9	25,3
Capital employed held for disposal	(4,1)	-
Net Invested Capital	224,6	231,7
Net Financial Indebtness	113,2	114,3
Lease liability - IFRS 16/IAS 17	33,8	39,2
Equity	77,6	78,2
Total Sources of Financing	224,6	231,7

• Increase in net working capital due to higher receivables. Reduction of inventories still not reflecting full reduction potential
• Groupe Marais rental business discontinuing operations impacting capital employed for (4,1)€M
• 2024 Net Financial Indebtedness reflecting positive effect from Groupe Marais joint venture operation
• IFRS16 financial liabilities refer mainly to fleet's leasing operations (to create coherence of duration with relevant assets) and accounting accrual for renting fees

TRENCHERS: 2024* FACTS & FIGURES

• Important discontinuity compared to September 30th , 2024
• REVENUES AT 111,9€M, -7,9%, due to Groupe Marais discontinuing operations and delays in USA and Australia, partially compensated by volumes growth in Middle-East and in Africa
• EBITDA AT 20,2€M, +41,6% despite lower volumes, thanks to improved margins from a better sales mix and lower OPEX (after the unfavorable performance in 2023)
• BACKLOG AT 66€M, excluding backlog of discontinuing operations of Groupe Marais rental business for 19,7€M

KEY FACTS

Strategic & Operational moves:

• JV for Groupe Marais rental business and strategic reorganziation in France
• USA integration plan to enhance business and organization
• Strengthening local structures in Middle East and Australia

Market Expansion & Growth:

• Solid business growth in MEA (pipeline, heavy civil and mining)
• Delays in the US and French fiber optic market

Marketing & Business Development:

• Attended major industry events: Intermat, Mining Indaba, Napec, Future Mineral Forum, Australia Wind Energy, IQA Conference, etc.
• Strengthening strategic position in IPLOCA pipeline association
• Demo organization with targeted audience in USA

Product innovation:

• Launched eSC4C, a fully electric modular micro trencher
• Brand new 1875XL EVO launch on the most important pipeline project in Saudi Arabia
• Start of the work for a unified platform for digital services and AI, related to machines and services

RAIL: 2024 FACTS & FIGURES

• REVENUES AT 50,4€M, +7,4% thanks to the progress of new contracts, albeit started with delays due to the late definition by the contracting counterpart of technical aspects for the start-up of contracts already awarded
• EBITDA AT 9,5€M, +11,0%, reflecting the strategic change in the business model, oriented towards the execution of higher value-added orders in diagnostic systems and the diversification of target market
• BACKLOG AT 122€M

KEY FACTS

• Switzerland: 1st milestone for a medium-long term presence in the Swiss rail market: Swiss Federal Railways tender award for the delivery, installation and commissioning of a peripheral system for a towed diagnostic vehicle of SBB to ensure high security and availability and significantly contribute to the maintenance of the Swiss railway infrastructure
• France: leveraging Group's strategic reorganization
  • Starting phase of the commissioning of integrated Tesmec solutions for the renewal of the catenary line for the line RER C in Paris
  • Innovative working train (n° 9 rolling stocks) allowing significant working time reduction to guarantee a low impact on the trains circulation.

ENERGY: 2024 FACTS & FIGURES

• REVENUES AT 77,3€M, +14,1% thanks to both Stringing and Automation segments, within solid perspectives of industry mid-term growth potential
• EBITDA AT 11,3€M, +12,1% thanks to higher volumes and better mix, more than offsetting lower results from Condux JV (with recovery from 2025)
• BACKLOG AT 163€M, of which Automation 137€M, reflecting positive momentum and with expectations of further growth

Stringing KEY FACTS

• Results significantly exceeded expectations, indicating a highly successful process despite the operational challenges throughout the year
• Significant orders received, creating a robust backlog for 2025, ensuring predictable future operations and revenues
• Excellent performance in the Western Europe and Australia markets, particularly in the supply of machinery and equipment, benefiting from the high demand in the region.

Automation

• Implementation of SAS technology, already established in Tesmec Automation's solutions portfolio, within the new 36kV voltage level connection standard
• Internationalization and diversification opportunity in France
• Tesmec exhibited at Enlit 2024 in Milan, facilitating networking with international suppliers and presenting new solutions aimed at transforming the energy landscape.

(€ mln)

2024*BACKLOG

• Energy backlog: Automation (136,6€M) and Stringing (26,0€M)
• Long- term backlog in Automation and Rail
• Trencher backlog net of Groupe Marais discontinuing operations after JV operation (Groupe Marais at Dec.31, 2024: 19,7€M)

Pro-forma 31/12/2023:	382,5
Actual 30/09/2024:	363,2
Same perimeter 30/09/2024: 345,0
Actual 31/12/2024: 250,0	350,7

2024* REVENUES KPI

2024* EBITDA EVOLUTION BY BU

2024* NET FINANCIAL POSITION EVOLUTION

2024 TESMEC GROUP RESULTS

• 01. Tesmec Group at a glance
• 02. Opening remarks
• 03. 2024 Group Financials & Key Metrics

04.	2025 Business Guidelines

05. Annex

2020-2024* EQUITY STORY and 2025 OUTLOOK

(€ mln)

*2024 actual data prepared in accordance with IFRS5 as for discontinuing operations, for both Profit & Loss and Balance Sheet. As provided by IFRS5 accounting principle, 2024 Profit and Loss is compared to 2023 pro-forma Profit & Loss on a comparable basis, isolating the result from discontinuing operations, while 2024 Balance Sheet is compared to 2023 actual data

2025

Leveraging strong capabilities in the face of current macroeconomic challenges:

• Growing reference markets driven by energy transition
• Solid order book and expectation of further growth
• Manufacturing flexibility between Italian and US plants
• Responsiveness through international local presence

OUTLOOK:

• Revenue growth with EBITDA margin continuing to benefit from sales mix prioritising higher margin segments and fixed cost containment;
• Net financial position prioritising debt reduction through cost/investment containment and initiatives leading to asset valorisation and capital efficiency.

Strengthening Australia, USA and France

Strengthening of the Australian, US and French markets, supported by favourable conditions, resumption of key projects and consolidation of local structures

Tesmec invests in the advancement of digital solutions and services and AI technology for predictive maintenance, positioning itself as a technology partner providing end-to-end solutions for relevant applications.

TRENCHERS

Strategic promotion of used machinery into the market

Business development and marketing activities

Tesmec aims to introduce the used machinery into market, starting from the strategical area of Middle East, providing solutions facing investments in the infrastructure sector and the

Reorganization of the sales network

Structuring business development and marketing activities, attending international trade shows (Bauma 2025) and investing in the underground energy cables industry, establishing itself as a specialist in providing end-to-end solutions.

Reorganization of the sales network to better address market needs, enhance presence, and increase recognition

competition of the area

RAILWAY

TESMEC FRANCE:

Strategic platform for the growth of French activities in the railway sector: development of a specialized center to support the Railway business, aimed at meeting local needs for railway infrastructure maintenance solutions.

STRENGTHEN THE MARKET POSITION IN EU:

International leadership role for catenary installation and maintenance and become one of the main player in the railway infrastructure diagnostic sector.

Measuring and Vision systems on Rail working vehicles

Interconnection of the factory in Monopoli to the Rail network

RAILWAY SIDETRACK in Tesmec Rail: hub in Monopoli for the maintenance of rolling stocks to increase the maintenance business

INTELLIGENT DATA MANAGEMENT DIAGNOSTIC CLOUD PLATFORM

to manage the huge amount of data coming from diagnostic systems installed on diagnostic vehicles.

Diagnostic services to increase the Predictive Maintenance

ENERGY

STRINGING

Continue leading the growth and extend the market share, we will implement strategic initiatives and innovative solutions. We are committed to leading the future through three fundamental pillars:

PROFITABILITY

We are recovering our competitiveness by enhancing the efficiency of our operations, particularly in the areas of tools such as ropes, pulleys, and aluminum structures.

PRODUCT AND MARKET DIVERSIFICATION

We develop innovative products for a wide range of applications, with a strong focus on the underground segment, highlighting our market diversification and business expansion into other countries.

INNOVATION AND DIGITALIZATION

We implement cutting-edge digital services, transforming our operations and customer experiences through innovative technology solutions.

AUTOMATION

Growth at a fast pace while improving diversification, exploiting our current portfolio and addressing contingencies, by leveraging major developments on systems. We are committed to leading the future through three fundamental pillars:

DIGITALIZATION

Lead the sector towards a safer, more resilient, and sustainable energy future by enhancing the management and security of HV-MV substations and promoting greater integration of renewable energy.

INTERNATIONALIZATION

Expand the business internationally taking advantage of transition from single products and solutions to integrated systems.

PORTFOLIO DIVERSIFICATION

Expansion of current portfolio for Automation Systems furthering major developments on SAS and ASAT platforms.

2024 TESMEC GROUP RESULTS

• 01. Tesmec Group at a glance
• 02. Opening remarks
• 03. 2024 Group Financials & Key Metrics
• 04. 2025 Outlook

05.	Annex

ANNEX A) 2024* SUMMARY PROFIT & LOSS STATEMENT

PROFIT & LOSS (€ Mln)	2024 ACTUAL	2023 PRO-FORMA	2023 ACTUAL
NET REVENUES	239,5	236,0	251,9
Raw materials costs (-)	(109,0)	(106,3)	(108,8)
Cost for services (-)	(42,7)	(47,9)	(52,2)
Personnel Costs (-)	(53,0)	(56,6)	(63,3)
Other operating revenues/costs (+/-)	(4,7)	(6,9)	(8,0)
Non recurring revenues/costs (+/-)	-	-	-
Portion of gain/(losses) from equity investments evaluated using the equity method	0,4	0,9	0,9
Capitalized R&D expenses	10,6	13,5	13,5
Total operating costs	(198,4)	(203,2)	(217,9)
% on Net Revenues	(0,8)	(0,9)	(0,9)
EBITDA	41,1	32,8	34,0
% on Net Revenues	0,17	0,14	0,14
Depreciation, amortization (-)	(20,7)	(19,8)	(23,0)
EBIT	20,4	13,0	11,1
% on Net Revenues	8,5%	5,5%	4,4%
Net Financial Income/Expenses (+/-)	(16,6)	(14,5)	(15,7)
Taxes (-)	(3,6)	1,2	(1,9)
NET INCOME (LOSS) FROM CONTINUING OPERATIONS	0,2	(0,3)	(2,7)
NET INCOME (LOSS) FROM DISCONTINUING OPERATIONS	(5,1)	(2,4)	0,0
GROUP NET INCOME (LOSS)	(4,8)	(2,7)	(2,7)
Minorities	0,4	0,3	0,0
GROUP NET INCOME (LOSS)	(5,2)	(3,0)	(2,7)
% on Net Revenues	-2,2%	-1,3%	-1,1%

ANNEX B) SUMMARY 2024* BALANCE SHEET

BALANCE SHEET (€ Mln)	Dec.31, 2024	Dec. 31, 2023
Inventory	96,1	110,6
Work in progress contracts	36,7	29,2
Accounts receivable	55,4	45,6
Accounts payable (-)	(79,9)	(82,8)
Op. working capital	108,4	102,7
Other current assets (liabilities)	(8,6)	(15,8)
Net working capital	99,8	86,8
Tangible assets	34,2	45,1
Right of use - IFRS 16/IAS 17	23,4	28,9
Intangible assets	42,2	39,3
Financial assets	7,1	6,3
Fixed assets	106,9	119,6
Net long term assets (liabilities)	21,9	25,3
Capital employed held for disposal	(4,1)	0,0
Net invested capital	224,6	231,7
Cash & near cash items (-)	(29,6)	(53,7)
Short term financial assets (-)	(35,7)	(27,9)
Lease liability - IFRS 16/IAS 17	33,8	39,2
Short term borrowing	98,1	103,8
Medium-long term borrowing	80,3	92,0
Net financial position	147,0	153,5
Equity	77,6	78,2
Funds	224,6	231,7

TESMEC GROUP

2025 FINANCIAL CALENDAR

• Wednesday, 30th April 2025: Shareholders' meeting to approve Statutory Financial Statements as of 31st December 2024 (single call)
• Friday, 9th May 2025: approval of the Company's Quarterly Report as of 31st March 2025
• Wednesday, 6th August 2025: approval of the Company's Half-Year Report as of 30th June 2025
• Friday, 7th November 2025: approval of the Company's Quarterly Report as of 30th September 2025

DISCLAIMER

This presentation has been prepared by Tesmec S.p.A. ("Tesmec", the "Company" or the "Group"). As used herein, "Presentation" means this document, any oral presentation, the question and answer session and any written or oral material discussed or distributed during the presentation. The Presentation comprises written material/slides which provide information on the Company and its subsidiaries. The information contained in this Presentation has not been verified, approved or endorsed by or independently verified by any independent third party. Save where otherwise indicated, the Company is the source of the content of this Presentation. Care has been taken to ensure that the facts stated in this Presentation are accurate and that the opinions expressed are fair and reasonable. However, no representation or warranty, express or implied, is made or given by or on behalf of the Company, or the management or employees or advisors of the Company, or any other person as to the accuracy, completeness or fairness of the information or opinions contained in this document or any other material discussed at the Presentation. None of the Company nor any other person accepts any liability whatsoever for any loss howsoever arising from any use of this Presentation or its contents or otherwise arising in connection therewith.

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