Tesmec S p A : 1Q 2024 Presentazioni Risultati

2024.Q1 Results

Grassobbio, May 10th 2024

2024.Q1 RESULTS INDEX

1. Tesmec Group at a glance
2. Opening remarks
3. 2024.Q1 Group Financials & Key Metrics
4. 2024 Outlook
5. Annex

May 10th 2024

2

TESMEC GROUP: INTEGRATED SOLUTIONS PROVIDER FOR ENERGY AND DATA TRANSPORT

2024.Q1 Results

Technology partner in markets driven by	70	+1,000	9
energy transition, digitalisation and sustainability trends	YEARS	PEOPLE	MANUFACTURING
	of experience		PLANTS

Operating in the energy, data and material transport infrastructure market (oil and derivatives, gas, water) with innovative, value-added integrated solutions on a global scale

+135 75%

COUNTRIESEXPORT

choose Tesmec

May 10th 2024	3

TESMEC GROUP

Energy: the inspiring thread of our businesses

ENERGY - STRINGING	RAILWAY

▪Solutions for power lines construction & maintenance ▪Advanced methodologies for automating jobsite ▪Zero emissions machines

ENERGY - AUTOMATION	TRENCHER

▪Telecommunications solutions for HV Grids ▪Grid Management: protection and metering solutions

▪Advanced sensors for fault passage indication, protection and monitoring

2024.Q1 Results

▪Catenary lines construction & maintenance ▪Diagnostic vehicles and systems ▪Integrated platform for safe infrastructure

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

▪Oil & Gas, Water pipelines ▪Bulk excavation, Quarries & Surfaces mining

May 10th 2024	4

TESMEC GROUP'S SUSTAINABILITY PATH

2024.Q1 Results

MARKET DRIVERS MILESTONES	FOCUS ON	GUIDELINES	ESG COMMITMENT	SDGs
			Increase
	R&D &	Technologies &	Green &	▪ EU Taxonomy
	Innovation	products	Digital	alignment
			revenues

DIGITALIZATION &

SAFETY

Climate Corporate

change processes mitigation

SUSTAINABLE

INNOVATION

Reduce emissions & environment al impact

▪	Environmental
	impact of products
	& services
▪	Environmental
	impact of
	corporate
	processes

TESMEC economic activities are eligible according to ANNEX I - Climate change mitigation «3.Manufacturing»

3.1 - Manufacture of renewable energy technologies

1. - Manufacture of low carbon technologies for transport

1. - Manufacture of other low carbon technologies

EU Taxonomy-aligned KPI %		2023		2022

Human

resources & Employees &

local Stakeholders

communities

ENERGY

TRANSITION

Invest in people & local communitie s well being

▪	Health & Safety
▪	Welfare
▪	Training
▪	Business ethics

51,7%	48,2%
	43,6%

30,3%

36,2% 34,1%

Governance Corporate

Governance

Work out an effective sustainable governance

▪	Human rights
▪	Sustainable supply
	chain
▪	ESG risks

REVENUECAPEXOPEX

5

May 10th 2024

2024.Q1 ESG HIGHLIGHTS

2024.Q1 Results

ENVIRONMENT

ISO 14067:2018 - Carbon Footprint for

TESMEC trenchers

Tesmec commissioned a study from a specialized consultant to gain knowledge and awareness of the environmental impact associated with greenhouse gas emissions for 3 further trencher models

RENEWABLE ENERGIES

Tesmec SPA - Photovoltaic plant

The enlarged photovoltaic plant at the Tesmec SPA headquarter will grant a reduction of around 750 - 800 tons of CO2 per year(*).

(*) estimates of the Energy Manager

SOCIAL

WHP Program

Tesmec confirms its commitment to promote a safe and healthy working environment participating in the Workplace Health Promotion program

May 10th 2024	6

2024.Q1 RESULTS INDEX

1. Tesmec Group at a glance
2. Opening remarks
   03 2024.Q1 Group Financials & Key Metrics
   04 2024 Outlook
   05 Annex

May 10th 2024

7

2024.Q1 AT A GLANCE

2024.Q1 Results

SALES		SALES BY BU
€M 59,3		Energy
PY/Q€M 57,5
EBITDA		€M 17,6		Trencher

€M 9,0; 15,2%	59,3
PY/Q €M 7,5; 13%				€M
EBIT		Rail
€M 3,1		€M 7,5
PY/Q €M 1,9

€M 34,2

	NET RESULT			SALES BY REGION
	€M (1,1)
	PY/Q €M (2,5)
	NFP
				North& Central
	€M 167,1
			America
	Dec. 31, 2023 €M 153,5			€M 9,6
	BACKLOG
	€M 391			Others: €M 7,9
	Dec. 31, 2023 €M 402

Europe

€M 28,1

Middle-East

€M 8,5

Africa

€M 5,2

May 10th 2024	8

2024.Q1 HIGHLIGHTS

Volumes' growth in line with expectations and sales mix favorable to margin improvement

	Strengthened new governance in
	USA and Australia, combined with
WELL	reinforced business development
and integration plans
Positive results from Middle East
	and Africa in Trenchers' segment,
WORKED	confirming Group's internalization
strategy. Presence in relevant
mining and fiber markets events
in Saudi Arabia, Africa and Europe
Positive contribution from Energy
segment with significant growth
in Energy Automation business,
WHAT	with successful deliveries of
automation systems

PROGRESS

Improved marginality, still not reflecting full potential, with operating expenses containment efforts started, with full benefits

expected from Q2'24

Efficiency interventions consistent with industrial footprint re-design, with concentration of Stringing manufacturing activities in "Grande Grassobbio" site

Strategic engagement of key Rail European railway players and live demo of green solutions for catenary and diagnostic solutions

2024.Q1 Results

Net Result impacted by higher financial charges due to increased rates/level of debt

		Net Financial Position increasing
		mainly due to Net Working
HAVECOULDWHAT	BETTERWORKED	Capital for increased level of
receiveables related to end-
		quarter sales, with still high
		inventory levels and WIP to
		support short-term sales, with the
		objective of a gradual and
		important reduction by year-end
		Rail: delayed cash-infrom key
		Italian account and delayed new
		job-orders

May 10th 2024	9

2024.Q1 RESULTS INDEX

1. Tesmec Group at a glance
2. Opening remarks
   03 2024.Q1 Group Financials & Key Metrics
   04 2024 Outlook
   05 Annex

May 10th 2024

10