Tesmec — Earnings Release 2016

Mar 3, 2017

Integrated Solutions Provider

2016 Results & 2017 Outlook

www.tesmec.com

Corporate Strategy >

2016 Results & 2017 Outlook >

• 2016 Closing

• 2016 Revenues: main features

• 2017 Guidelines

• Main 2017 goals

• 2017 Outlook

• Overhead power lines construction & maintenance >

• Reconductoring and line improvement >

• Underground cable laying >

• Railway lines electrification >

• Catenary maintenance and diagnostic >
• Special Applications >

FULLY INTEGRATED SOLUTIONS PROVIDER

• Telecommunication & Teleprotection >
• Electronic integrated sensors, fault detection and measurement >

• Protections & Electronics for Distribution >

• Telecom networks, FTTH & long distance, power cable installation

• Oil & Gas, Water pipelines

• Bulk excavation of rock and Quarries

TESMEC

" From Steel to Technology "

OUR MISSION

• Our mission is to be value added integrated solutions provider in the market of infrastructure for the transport of energy, data and material >
• We provide efficiency, digitalization, safety and sustainability for the modernization of the infrastructures of every country in the world >
• We focus on winning integration of advanced technology & high know how to meet the new demands of the markets >

03 Marzo 2017 "Strictly Confidential" 6

WE ARE THE ONLY PROVIDER IN THE WORLD able to satisfy the infrastructure market's needs through our fully integrated solutions suite

xxx WE HAVE THE CAPABILITY TO DO THIS!

Corporate Strategy >

2016 Results & 2017 Outlook >

• 2016 Closing

• 2016 Revenues: main features

• 2017 Guidelines

• Main 2017 goals

• 2017 Outlook

GROUP (€ mln)	2016 un-audited	2015
Revenues	128,5	164,4
EBITDA adj (1)	11,6	22,0
% on Revenues	9%	13%
EBITDA	8,5	24,0
% on Revenues	7%	15%
EBIT	-4,4	12,8
% on Revenues	-3%	8%
Profit Before Taxes	-6,9	9,1
% on Revenues	-5%	6%
NET INCOME	-3,8	7,1
% on Revenues	-3%	4%

(1) ADJUSTMENT INCLUDES 2,2 mln on respect of the real estate deal and 0,9 mln of extraordinary consultancy cost.

GROUP (€ mln)	2016	2015 (2)
NFP	96,7	89,9

(2) Including 17,8 M€ OF GRASSOBBIO REAL ESTATE BORROWING.

ENERGY	2016	2015	Delta %
Revenues	42,2	72,1	-41,5%
EBITDA adj	6,0	11,4	-47,2%
% on Revenues	14%	16%

TRENCHERS	2016	2015	Delta %
Revenues	80,6	88,5	-8,9%
EBITDA adj	4,5	10,9	-58,6%
% on Revenues	6%	12%

RAILWAY	2016	2015	Delta %
Revenues	5,7	3,8	50,0%
EBITDA adj	1,1	-0,3	453,0%
% on Revenues	19%	-8%

Focus on reset USA and Middle East Area

Focalize the effort on the control of cost structure in any site

Integration of operations: TRS & RAIL

Simplification of Automation's companies and value chain

Revamping BU stringing

Main 2017 goals

NEW CONCEPT IN STRINGING MACHINES 4.0:

Simple, Safe and Reliable

SUPPLY OF 25 COMPLETE SETS (MACHINES AND EQUIPMENT)

Success of European technology in Indonesia

AWARD OF THE TENDER OF RFI: SUPPLY OF 88 MULTIPURPOSE RAILWAY VEHICLES for the maintenance of the Italian railway network

• WINNING TECHNOLOGICAL SYSTEMS

• REMOTE CONTROL BL3 SYSTEM ON BOARD

• TRANSFER CAPABILITY AS PASSENGER TRAIN ON NATIONAL RAILWAY NETWORKS

POWER LINES MANAGEMENT & ENERGY EFFICIENCY

TECHNOLOGICAL COOPERATION BETWEEN TESMEC & THE RUSSIAN GROUP ROSSETI

Smart Metering Tool (SMT): extremely innovative and tailor made systems

WIND FARM PROJECTS AUSTRALIA & NEW ZEALAND

FIBER TO THE HOME PROJECTS

ADVANCED WORKING METHODOLOGY:

integrated systems & technological solutions for a complete jobsite management

TELECOM & xxx ENERGY	Upturn USA market
	Impact of renewable energy projects
	First FTTH projects

ECONOMICS & xxx FINANCIALS	1Q.2017 +15÷20% compared to SPPY Sales:
	2017 Sales: 160–170 M€
	EBITDA 15%
	NFP reduction
	Expected BACKLOG 1Q.2017 higher than 2016 year end

www.tesmec.com