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Tesmec — Investor Presentation 2016
Nov 7, 2016
4055_ip_2016-11-07_b2882ad4-90cd-4443-81f2-2e4dda8ef6f9.pdf
Investor Presentation
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Partner in a changing world
9M 2016 results presentation 7
th November 2016
Solutions partner for your world
Tesmec Group is leader in the market of the infrastructures related to the transport and distribution of energy, data and material.
We focus on strategic markets for the growth and modernization of every country.
Solutions provider
Design of advanced solutions based on specific requirements of Key Account to be exported worldwide with the aim to cover R&D investments and increase the business
" From IRON to TECHNOLOGIES "
PRODUCTS SUPPLIER
Equipment, machines, tools and technical services
INFRASTRUCTURE CONSTRUCTION
Sector sensitive to economic cycles and dependent on investment plans
VALUE ADDED SOLUTIONS PROVIDER
Intelligence, specialists' competences, expertise, technologies
INFRASTRUCTURE MANAGEMENT & MAINTENANCE
Sectors not dependent on economic cycles, but recurrent
4
Side cut working on the FTTH UK project
WHY
Customers' needs
- High working performances
- Capability to prevent accident while travelling on railway network
- Possibility to travel in composition with other rail vehicles
- Possibility to travel on both traditional & high speed lines
TESMEC GROUP PLACED 1st FOR THE PROVISIONAL AWARD OF THE TENDER OF RFI FOR THE SUPPLY OF 88 MULTIPURPOSE RAIL VEHICLES
Tesmec Service provisional awarded the 3 lots in the tender for a total value of Euro 91.8 million
Railway business highlights allows protection of the train while travelling, ensuring:
- highest mobility and safety
- increased performances
- reduced fleet asset
REMOTE-CONTROL OF TRACTION UNIT
able to manage traction, braking and alarms of railcars as a convoy, ensuring:
• cost savings
Winning competitive advantages
- working fleet reduction
- fast transfer
REMOTE MONITORING SYSTEM
developed to supervise the fleets of vehicles, ensuring:
- reliability (failure cost reduction)
- maintainability (cost associated to failure reduction)
- maintenance optimization and monitor the main parameters
Innovative railcar for CATENARY operations
Energy business highlights
WHY
Customers' needs
SMART & GREEN Technologies for ENERGY TRANSPORT
Brand Awareness - Know How - International Presence
CONSTRUCTION & MAINTENANCE MANAGEMENT & MONITORING
- Flexibility and customized solutions
- New systems for modernization and efficiency of power grids worldwide
NEW EXHISTING
Solutions for High, Medium & Low Voltage
9M 2016 Economic Results
| GROUP (€ mln) | 9M2016 | 9M2015 | Delta % |
|---|---|---|---|
| Revenues | 108,5 | 120,2 | -9,7% |
| EBITDA | 10,7 | 16,7 | -35,9% |
| % on Revenues | 10% | 14% | |
| EBIT | 1,6 | 9,3 | -82,8% |
| % on Revenues | 1% | 8% | |
| Profit Before Taxes | (2,0) | 6,9 | -129,0% |
| % on Revenues | -2% | 6% | |
| NET INCOME | (1,4) | 4,7 | -129,8% |
| % on Revenues | -1% | 4% | |
| GROUP (€ mln) | 9M2016 | 2015 | Delta % |
| NFP (IAS17) | 115,3 | 89,9 | 28,3% |
| NFP (without IAS17) | 98,4 | 72,1 | 36,5% |
| ENERGY | 9M2016 | 9M2015 | Delta % |
|---|---|---|---|
| Revenues | 30,5 | 58,2 | -47,6% |
| EBITDA | 2,9 | 9,4 | -69,1% |
| % on Revenues | 10% | 16% |
| TRENCHERS | 9M2016 | 9M2015 | Delta % |
|---|---|---|---|
| Revenues | 74,3 | 58,9 | 26,1% |
| EBITDA | 7,5 | 7,5 | 0,0% |
| % on Revenues | 10% | 13% |
| RAILWAY | 9M2016 | 9M2015 | Delta % |
|---|---|---|---|
| Revenues | 3,7 | 3,1 | 19,4% |
| EBITDA | 0,3 | (0,1) | 400,0% |
| % on Revenues | 8% | -3% |
- ENERGY: STRINGING DECREASE AS AGAINST 2015 WHERE ABENGOA REVENUES WERE ACCOUNTED
- ENERGY: AUTOMATION CONSOLIDATION OF BERTEL AND CPT IN 2016 IMPACTS ON MARGINS
- TRENCHERS: STRONG GROWTH OF SERVICE REVENUES; 2015 IMPACTED BY 2,1 EXTRAORDINARY PROFIT FROM MARAIS ACQUISITION
- RAILWAY: GROWTH CONSOLIDATION AND POSITIVE OPERATIONAL MARGIN
Revenues
EBITDA 9M2016
| Financial Information (Euro mln) | 9M2016 | 2015 |
|---|---|---|
| Net Working Capital | 76,5 | 63,5 |
| Non Current assets | 90,6 | 83,9 |
| Other Long Term assets/liabilities | (1,1) | (1,7) |
| Net Invested Capital | 166 | 145,7 |
| Net Financial Indebtness | 115,3 | 89,9 |
| Equity | 50,7 | 55,8 |
| Total Sources of Financing | 166 | 145,7 |
| Working Capital Evolution | Days | Days | |||
|---|---|---|---|---|---|
| Euro Mln | 9M2016 | 9M2015 | 2015 | 9M2016 | 2015 |
| Trade Receivables | 57,6 | 51,8 | 50,9 | 143 | 111 |
| Inventories | 54,7 | 60,8 | 58,9 | 141 | 137 |
| W ork in progress contracts |
2,1 | 4,5 | 3,8 | ||
| Trade Payables | (27,0) | (41,9) | (39,0) | -67 | -86 |
| Other Current Assets/(Liabilities) | (10,9) | (17,3) | (11,1) | -27 | -24 |
| Net Working Capital | 76,5 | 57,9 | 63,5 |
Operating Net Financial Position without figurative debt for Grassobbio premises
The variation compared to 31 December 2015 is mainly due to capex related to changes in the scope of consolidation with the acquisition of 100% of Bertel and of 100% of CPT. In net WC change impact of sales mostly completed at quarter end 2015 9M2016
Increase in business VOLUMES (backlog and revenues), MARGINS and CASH FLOW
Growing opportunities in TLC and energy cables market, especially in Africa & Australia/New Zealand. Relevant projects with main international contractors that ask for specialist services and rental activities.
Finalization of orders and important ongoing negotiations for innovative railcars that will replace the existing vehicles, both in Italy and worldwide
Consolidation of the integration strategy and significant business opportunities in key countries like Italy, Russia and South America.
Ongoing negotiations in the commercial pipeline of stringing segment
Relevant worldwide projects
Railway - USA
Automation - Russia
Stringing - Asia
Automation - South America & Italy
FTTH – UK & NZ
Railway - Italy
Telecom - Africa
Wind farm - Australia
Order Book 9M 2016
Summary 9M 2016 Profit & Loss statement
| Profit & Loss Account (€ mln) | 9M2016 | 9M2015 | Delta | Delta % |
|---|---|---|---|---|
| Net Revenues | 108,5 | 120,2 | (11,7) | -9,7% |
| Raw materials costs (-) |
(46,3) | (61,8) | 15,5 | -25% |
| Cost for services (-) | (22,6) | (20,9) | (1,7) | 8 % |
| Personnel Costs (-) | (29,2) | (24,5) | (4,7) | 19% |
| Other operating revenues/costs (+/-) | (3,3) | 0,1 | (3,4) | -3400% |
| Portion of gain/(losses) from equity investments evaluated using the equity method |
0,1 | (0,1) | 0,2 | -243% |
| Capitalized R&D expenses | 3,5 | 3,7 | (0,2) | -5% |
| Total operating costs | (97,8) | (103,5) | 5,7 | -5,5% |
| % on Net Revenues | (90%) | (86%) | ||
| EBITDA | 10,7 | 16,7 | (6,0) | -36,0% |
| % on Net Revenues | 10% | 14% | ||
| Depreciation, amortization (-) | (9,1) | (7,4) | (1,7) | 23% |
| EBIT | 1,6 | 9,3 | (7,7) | -82,9% |
| % on Net Revenues | 1 % |
8 % |
||
| Net Financial Income/Expenses (+/-) | (3,6) | (2,3) | (1,3) | 57% |
| Taxes (-) | 0,6 | (2,3) | 2,9 | -126% |
| Minorities | - | - | - | - |
| Net Income (Loss) | (1,4) | 4,7 | (6,1) | -129,6% |
| % on Net Revenues | -1% | 4 % |
Summary 9M 2016 Balance Sheet
| Balance Sheet (€ mln) | 9M2016 | 2015 |
|---|---|---|
| Inventory | 54,7 | 58,9 |
| Work in progress contracts | 2,1 | 3,8 |
| Accounts receivable | 57,6 | 50,9 |
| Accounts payable (-) | (27,0) | (39,0) |
| Op. working capital | 87,4 | 74,6 |
| Other current assets (liabilities) | (10,9) | (11,1) |
| Net working capital | 76,5 | 63,5 |
| Tangible assets | 67,8 | 65,3 |
| Intangible assets | 19,1 | 13,8 |
| Financial assets | 3,7 | 4,8 |
| Fixed assets | 90,6 | 83,9 |
| Net long term liabilities | (1,1) | (1,7) |
| Net invested capital | 166,0 | 145,7 |
| Cash & near cash items (-) | (14,7) | (21,2) |
| Short term financial assets (-) | (7,7) | (11,8) |
| Short term borrowing | 58,6 | 45,2 |
| Medium-long term borrowing | 79,1 | 77,7 |
| Net financial position | 115,3 | 89,9 |
| Equity | 50,7 | 55,8 |
| Funds | 166,0 | 145,7 |
Disclaimer
The Manager responsible for preparing the company's financial reports, Andrea Bramani, 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 accounting records.
Certain information included in this document is forward looking and is subject to important risks and uncertainties that could cause actual results to differ materially.
Any estimates or forward-looking statements contained in this document are referred to the current date and, therefore, any of the assumptions underlying this document or any of the circumstances or data mentioned in this document may change. Tesmec S.p.A. expressly disclaims and does not assume any liability in connection with any inaccuracies in any of these estimates or forward-looking statements or in connection with any use by any third party of such estimates or forward-looking statements.
This document does not represent investment advice or a recommendation for the purchase or sale of financial products and/or of any kind of financial services. Finally, this document does not represent an investment solicitation in Italy, pursuant to Section 1, letter (t) of Legislative Decree no. 58 of February 24, 1998, or in any other country or state.
In addition to the standard financial reporting formats and indicators required under IFRS, this document contains a number of reclassified tables and alternative performance indicators. The purpose is to help users better evaluate the Group's economic and financial performance. However, these tables and indicators should not be treated as a substitute for the standard ones required by IFRS.