Tesmec — Investor Presentation 2016

May 6, 2016

We focus on strategic markets for the growth and modernization of every country.

Solutions partner for your world

Tesmec designs, manufactures and sells products, technologies and integrated solutions for the construction, maintenance and efficiency of infrastructures related to the transport and distribution of energy, data and material, such as: overhead and underground networks, traditional and high speed railway lines, energy cables and pipelines. In addition to traditional businesses, Tesmec is increasing its market presence offering solutions for Power Grid's efficiency & management.

Convergence between power grids and telecom networks Growing interest in renewable energy and sustainability aspects Increase in efficiency spending for a rising global energy demand

Integrated technological platforms for TELECOM and ENERGY

Automatic fiber optic and energy cable laying system both FTTH and long distance

Smart applications for greater energy management and savings Increasing demand of integrated systems rather than a single equipment Particular attention to specialist services to face customers' requests Complete range of solutions for construction, maintenance and management of infrastructures

FROM supplier of equipment TO solution provider

Smart, green and cost savings working system

Modernization of power grids infrastructures

INTEGRATED WORKING SOLUTIONS BOTH FOR FTTH AND LONG DISTANCE APPLICATIONS

TIME AND COST SAVINGS, GREEN APPROACH, REDUCED IMPACT ON SITE AND SAFETY FIRST

From telecommunications to and power infrastructures we provide integrated systems and innovative installation technologies for any environment. No matter the challenge, we have knowledge and experience to get your job done safely and efficiently.

COLLABORATIONS AND PROJECTS WITH MAJOR INTERNATIONAL GROUPS AND KEY ACCOUNT CUSTOMERS

Complete

Bauma exhibition

Bauma is the largest meeting place to find international market leaders and the biggest hub for the construction machinery industry into all markets.

Tesmec had the great pleasure to showcase its latest technologies and advanced solutions for energy and telecommunication world.

6

Energy Automation

ELECTRONICS FOR DISTRIBUTION

PROTECTIONS AND

ELECTRONIC DEVICES FOR TELECOMMUNICATION, TELEPROTECTION AND REMOTE CONTROL

ELECTRONIC INTEGRATED SENSORS, DEVICES FOR FAULT DETECTION AND MEASUREMENT

These acquisitions represent a significant step in the growth process in the energy world and allow the Group to complete its portfolio of solutions for different voltage classes (high, medium and low) and applications, in order to face the new technological challenges related to renewable energy sources and distributed generation.

Growing pressure on safety issue (e.g. signaling and train control, vehicles able to perform without line interruption)

Focus on green and environmental aspects

Efficiency first (e.g. vehicles able to perform without line interruption)

Advanced railcars in compliance with the highest technical standards

Multipurpose units for catenary installation and maintenance especially designed for high speed railway lines

GROUP	1Q2016	1Q2015	Delta %
Revenues	40,5	34,4	17,5%
EBITDA	5,4	4,4	21,8%
% on Revenues	13%	13%
EBIT	2,5	2,4	4,2%
% on Revenues	6%	7%
DIE	-1,4	2,8	-150%
Differences in Exchange
NET INCOME	-0,1	2,8	-104%
% on Revenues	0%	8%
GROUP	1Q2016	2015	Delta %
PFN (IAS17)	107,1	89,9	19,1%

PFN (without IAS17) 89,6 72,1 24,3%

10,4	19,5	-46,6%
		-42,9%
% on Revenues 19,0%	17,8%
	2,0	1Q20161Q2015Delta % 3,5

TRENCHERS			1Q20161Q2015Delta %
Revenues	29,2	14,3	103,8%
EBITDA	3,7	1,2	208,3%
% on Revenues	12,8%	8,2%

RAILWAY		1Q20161Q2015Delta %
Revenues	0,8	0,6	37,6%
EBITDA	-0,3	-0,2	20,5%
% on Revenues	41,5%	-41,5%

INTERNATIONAL SCALE AND EXPOSURE TO GROWING ECONOMIES

EBITDA 1Q2016

1Q2015 EBITDA increases more than proportionally with respect to Revenues 1Q2016

1Q2016 Financial Results
--------------------------	--	--	--	--

Financial Information (Euro mln)	1Q2016	2015
Net Working Capital	80,6	63,5
Non Current assets	81,8	83,9
Other Long Term assets/liabilities	(1,2)	(1,7)
Net Invested Capital	161,2	145,7
Net Financial Indebtness	107,1	89,9
Equity	54,1	55,8
Total Sources of Financing	161,2	145,7

	63,5
(11,4)	(11,1)	-26	-24
(34,0)	(39,0)	-76	-86
2,7	3,8	6	8
60,1	58,9	134	129
63,2	50,9	141	111
1Q2016	2015	Days 1Q2016	Days 2015
	80,6

²⁰¹⁵ NFP increase has been mainly influenced by the seasonality and Bertel acquisition 1Q2016

14

Order Book 1Q2016

OPPORTUNITIES

INCREASING DEMAND OF MODERNIZATION OF POWER GRIDS WORLDWIDE

PROJECTS OF GRIDS INTERCONNECTION AND INTEGRATION OF RENEWABLE ENERGIES IN THE NETWORKS

GROWING OPPORTUNITIES IN THE TELECOM AND FIBER OPTIC MARKET BOTH FTTH AND LONG DISTANCE

GROWING PRESSURE ON ENVIRONMENTAL AND SAFETY ISSUES IN THE MAIN BUSINESSES OF THE GROUP

UNDERGROUND CABLING IS BECOMING INCREASINGLY ATTRACTIVE, MAINLY FOR ENVIRONMENTAL AND AESTHETIC REASONS

NEW GREEN AND SMART PROJECTS WORLDWIDE

THREATS

COMPLEX ECONOMIC SITUATION FOR SOME OF THE MAIN WORLD ECONOMIES

OIL, GAS AND COMMODITY MARKET TREND

Profit & Loss Account (€ mln) 1Q2016 1Q2015 Delta vs ²⁰¹⁵ Delta % Net Revenues 40,5 34,4 6,1 17,5% Raw materials costs (-) (17,8) (17,7) (0,1) 1 % Cost for services (-) (7,7) (5,7) (2,0) 35% Personnel Costs (-) (9,4) (7,4) (2,0) 27% Other operating revenues/costs (+/-) (1,4) (0,6) (0,8) 133% Portion of gain/(losses) from equity investments evaluated using the equity method 0,1 0,2 (0,1) -50% Capitalized R&D expenses 1,1 1,2 (0,1) -8% Total operating costs (35,1) (30,0) (5,1) 17% % on Net Revenues -87% -87% EBITDA 5,4 4,4 1,0 21,8% % on Net Revenues 13% 13% Depreciation, amortization (-) (2,9) (2,0) (0,9) 45% EBIT 2,5 2,4 0,1 4,2% % on Net Revenues 6 % 7 % Net Financial Income/Expenses (+/-) (2,4) 1,7 (4,1) -241% Taxes (-) (0,03) (1,3) 1,3 -98%

Minorities (0,06) - - -

% on Net Revenues 0 % 8 %

Net Income (Loss) (0,05) 2,8 (2,9) -104%

Summary 1Q2016 Profit & Loss statement

Summary 1Q2016 Balance Sheet

Balance Sheet (€ mln)	1Q2016	2015
Inventory	62,8	62,7
Accounts receivable	63,2	50,9
Accounts payable (-)	(34,0)	(39,0)
Op. working capital	92,0	74,6
Other current assets (liabilities)	(11,4)	(11,1)
Net working capital	80,6	63,5
Tangible assets	60,5	65,3
Intangible assets	17,6	13,8
Financial assets	3,7	4,8
Fixed assets	81,8	83,9
Ne t long term liabilities	(1,2)	(1,7)
Net invested capital	161,2	145,7
Cash & near cash items (-)	(18,5)	(21,2)
Short term financial assets (-)	(7,3)	(11,8)
Short term borrowing	60,2	45,2
Medium-long term borrowing	72,7	77,7
Net financial position	107,1	89,9
Equity	54,1	55,8
Funds	161,2	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.

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