conference call cesena ended 30th september 2015 16 … · usa: attractive north american market...

2015 Third Quarter Results ended 30th September 2015

CONFERENCE CALL Cesena

16 November 2015

1. TREVI Group

2. 9M 2015 Financial Results

3. Q&A

4. Appendix

2

3

Special foundation services

€431,1m

Oil drilling rigs

€261,8m

Oil drilling services

€114,0m

Special foundation rigs

€188,5m

9M15 Revenues

4

Special foundation services

€431,1m

Geotechnical Works

Marine Works Deep Foundations Tunnel Consolidation

Environment

9M15 Revenues

5

Special foundation rigs

€188,5m

Large Diameter Piles Hydromills & Grabs

Microdrilling & Attachments Cranes

9M15 Revenues

6

Oil drilling rigs

€261,8m Land Rigs

Hydraulic Drilling Rigs

Mud Pumps

Drawworks Top Drives

AHEAD Rigs Modular Offshore

Conventional Packages

9M15 Revenues

7

Oil drilling services

€114,0m

CILE:

1 RIG HH220 1 RIG HH102 2 WO HH102

VENEZUELA:

1 RIG HH200 1 RIG HH300

ARGENTINA:

7 RIGS HH102 2 RIGS HH220

PERU’:

1 RIGS HH102

COLOMBIA:

1 RIGS HH220

9M15 Revenues

8

Foundations Sector

9

Oil & Gas Sector

1. TREVI Group

2. 9M 2015 Financial Results

3. Q&A

4. Appendix

10

11

Results Key Highlights

• Revenues increased considerably

Foundation division increased over 20% and all four divisions have increased considerably

• Marginality has gradually returned to normalized figures

Overall the EBITDA and EBIT figures have increased and are gradually improving paving the way to improved performance • Over 1.17 billion Euro of solid backlog + 5% The order backlog has registered good growth within key strategic geographical areas

Back to normalized performance

12

Market Environment • Global construction trend very positive Euro +180 million of newly acquired

contracts in the TREVI division in the Middle East and Africa

• Core business backlog sound and at an ever time high at 670 million Euro between TREVI and SOILMEC

• Oil prices very uncertain and still driving capex cut . Gradual delay in the tendering of projects

• Reduced visibility overall but there are hot negotiations in the pipeline

• Shallow offshore market shows opportunities

• Order portfolio in the O&G stays resilient at Euro 300 million and subject to increase in the short term

Main discussion points

13

• Revenues increased +22.5% and a very solid order backlog has been secured

• Very strong order intake in areas such as the Middle East and North Africa increased the already long term visibility (highest portfolio of the past 4 consecutive quarters at over 600m Euro)

• New contracts initiated during the first half are showing improved performance

from quarter to quarter and more is expected in the last one

• Solid demand for marine, transportation and metro works

• The reduction of oil prices could bring some delays on energy/infrastructure related projects given lack of investments

• Infrastructure sector improving and wider international reach

• Private development building activities reaching strong momentum

Group’s Divisions Overlook

14

Group’s Divisions Overlook

• +21.3% of revenue increase with respect to the previous year

• Notwithstanding the contraction in the Italian market the US, UK & France performed well

• Quarterly order intake continues to register good growth (63m Euro in 3Q15, 74m Euro in 2Q15, 56m Euro in 1Q15 vs 46m Euro in 4Q14)

• Still not satisfactory margins for the 9M given the due course of the optimization process

• Expected improvement of marginality in the 4th quarter

15

Group’s Divisions Overlook

• Over 300 million Euro of backlog as of September 30th 2015

• Notwithstanding the current market conditions we were able to increase revenues by +5%

• Competitive market given uncertainty in Oil prices but still well position with good opportunities in niche markets to improve the pipeline of contracts

• Interesting projects secured in the Far East

• Recently acquired contracts embrace better and predictable payment terms and conditions in the future, hence lower working capital requirements

• Rationalization of existing production sites cost reduction in progress

• A particular emphasis on management and risk control

• Partnership development in the medium to long term strategic geographical areas

16

Group’s Divisions Overlook

• Starting operations in Chile for geothermal extraction services in the Andes at the highest and

most extreme conditions – Servicing at 4500 meter above sea level

• Proven technologies in extreme conditions and world record achieved at the highest altitudes

• A fewer number of rigs are currently operating

• Improved scenario in the near future given the upcoming renewals

• Marginality challenged by more uncertain environment

17

Third Quarter Results

§ Revenues: €355m €274m vs 3Q14

§ EBITDA: €33m €32m vs 3Q14

§ EBIT: €16m €17m vs 3Q14

§ NFP: €533m €583m vs 3Q14

§ Third Quarter Performance +29% Significant for the growth of the business

§ EBITDA grew 2%

18

Nine Months Results

§ Revenues: €956m €832m vs 9M14

§ EBITDA: €-16m €97m vs 9M14

§ EBIT: €-89m €53m vs 9M14

§ PBT.: €-124m €30m vs 9M14

§ Backlog: €1.117m €1.061m vs 9M14

§ NFP: €533m €583m vs 9M14

§ Solid Backlog +5%

§ Net Financial Position improving 9%*

* In

clud

es C

apita

l Inc

reas

e of

192

,9m

9M15 % 9M14 % Δ%

VALUE OF PRODUCTION 991.0 845.3 17.2%

REVENUES 956.3 100.0% 832.2 100.0% 14.9%

EBITDA (15.9) -1.7% 96.9 11.6% -116.4%

EBIT (88.6) -9.3% 52.7 6.3% -268.1%

FINANCIAL COSTS (21.3) -2.2% (23.8) -2.9% -10.7%

TAXES 8.6 0.9% 8.1 1.0% -6.3%

NET PROFIT (131.4) -13.7% 13.4 1.6% N/A

9M15 9M14 Δ%

NET CAPITAL EMPLOYED 1,083.6 1,041.8 4.0%

EQUITY 550.6 458.1 20.2%

NET FINANCIAL POSITION 532.8 583.0 8.6%

BACKLOG 1,117.2 1,060.6 5.3%

9M15 9M14

NFP / EBITDA N/A 4.51X

NFP / EQUITY 0.97X 1.27X

9M15 9M14

EMPLOYEES 7,887 7,613

19

Financial Highlights 9M15 yoy

Euro

Euro

20

Revenues Before and After Consolidation

Eur mln 9M15 9M14 D%

Drilling Rigs (DRILLMEC) 261.8 249.2 5.1%Drilling Services (PETREVEN) 114.0 99.1 15.0%Interdivisional Adjustments and Eliminations (1.5) (2.8)

Sub-Total Oil & Gas Sector 374.3 345.5 8.3%

Special Foundation Services (TREVI) 431.1 351.9 22.5%Machines for Special Foundations (SOILMEC) 188.5 155.5 21.3%Interdivisional Adjustments and Eliminations (11.4) (11.3)

Sub-Total Foundation Sector 608.1 496.1 22.6%

Parent Company 20.2 13.5Interdivisional Eliminations (46.3) (22.9)

TOTAL CONSOLIDATED REVENUES 956.3 832.2 14.9%

21

One Group

Oil & Gas 37,8%

Core Business 62,2%

Revenues 9M15 €956m

The Group Backlog

Foundation Sector Oil & Gas Sector

22

681,0 783,5

1.228,6

759,4

1.021,2 871,5 848,9

1.060,6 1.117,2

GEOGRAPHICAL AREA (Eur mln) 9M15 %Italy 75.0 6.7%Europe (Italy excl.) 31.8 2.8%U.S.A. and Canada 71.4 6.4%Latin America 246.5 22.1%Africa 416.0 37.2%Middle East and Asia 179.5 16.1%Far East and RoW 97.0 8.7%TOTAL 1,117.2 100.0%

23

Net Financial Position

NFP 9M15 NFP FY14 EBIT + D&A

Eur m

ln

NET INVESTMENTS

INTERESTS EXCHANGE DIFFERENCES OTHER TAXES Δ WORKING

CAPITAL

FREE CASH FLOW -116,5 mln Euro

550,6*

192,9

294,4

218,4

376,6

532,8

349,6

433,8 446,5 458,1

Equity and Net Financial Position

EQUITY NET FINANCIAL POSITION

Short Term Debt Long Term Debt

24

Euro mln

*Includes net increase in capital of €192,9m com

pleted in Novem

ber ‘14

The Group

Ebitda%

Ebit%

RevenuesBased on non Consolidated Data

Foundations Sector

25

496,1

608,1

The Group

Based on non Consolidated Data

Ebitda%

Ebit%

Revenues

Oil & Gas Sector

26

345,5 374,3

The Group

Middle East: Contribution from this area continues to increase with respect to the previous years. Main contracts include infrastructure, metro and marine works USA: Attractive North American market with opportunities in various sectors including residential buildings + large infrastructural projects Latin America: High degree of business is being brought forward both in the construction and oil & gas fields. Significant opportunities for growth

Breakdown per Geographical Area

27

589,0

779,9 836,4

689,1 724,1

818,5

968,7

832,2

956,3

28

Guidance

2015 REVENUES EBIT NFP

€465m

-€65/-€70m

>€1,30BN

29

TREVI Bluewaters Project in Dubai

Located off the Jumeirah Beach

Residence coastline 10 Soilmec machines are executing more than 3,000 piles needed for the foundations of residential areas

30

Dynamic Compaction Technique

Dynamic Compaction and Rapid

Dynamic Compaction have proven to be a viable alternative to traditional roller compaction.

31

TREVI in the Far East TREVI is carrying out piling works in the

Philippines.

32

TREVI special foundation works for the most important bridge under construction in

Kuwait TREVI is carrying out works for the

construction of a bridge between Shuwaikh Port (Ghazali St.) and Subiyah New Town.

Special foundatinon works for the a road

that stretches for 37 km.

33

Boston One Dalton A 65-story tower that soars 760ft (230m)

into the Boston Boston skyline. TREVIICOS is successfully carrying out the complex foundation works in the city center of Boston. The $700 million tower is founded on a series of very deep rectangular load bearing elements.

34

SR-75 at work Displacement of piles at 30,5 meters of depth.

35

New Soilmec Products The new Soilmec SR-45 rig opens new perspectives on the hydraulic drills market. The basic rig has been completely redesigned in order to offer greater comfort and safety on site. Casing are entirely covered with sound damping and absorbing material.

36

Hydromill with SC-90

The project is for the America World Trade Center in Bogotá. The project involves construction deep foundations that have to withstand a geological fault that runs through the site from north to south, causing considerable hydraulic pressure

37

New Soilmec SC-90 The new SC-90 with a new custom made tool in support of excavation.

38

HH-300 Drilling Rig Drillmec HH-300 for Geothermal Services

39

ORDERS IN THE OIL & GAS SECTOR TOTALING ABOUT 280 MILLION USD Five 2000hp AC rigs and two 3000HP rigs with ENAFOR, an Algerian leading drilling services company and acting on behalf of SONATRACH, the national oil company and largest African operator. Two rigs of 2000hp AC HSL (Hydraulic Swing Lift) with one of the largest drilling contractors operating in Saudi Arabia. The Saudi company has operated for more than 50 years in the industry and has an important role in the expansion program of Saudi Aramco, the leading oil company in the country and world leader in proven reserves.

40

HH-202 in Chile Petreven Chile is carrying out geothermal drilling services in the Andean Plateau.

41

HH-202 in Chile Petreven Chile is carrying out geothermal drilling services in the Andean Plateau.

1. TREVI Group

2. 9M 2015 Financial Results

3. Q&A

4. Appendix

42

43

Statement of Financial Position 9M15 vs 9M14

Euro 000 9M15 9M14 D% RICAVI TOTALI 956,336 832,230 14.9%Variazioni delle rimanenze di prodotti finiti ed in corso di lavorazione 16,434 (11,107)Incrementi di immobilizzazioni per lavori interni 18,212 24,133

Altri ricavi operativi non ordinari 0 0VALORE DELLA PRODUZIONE 990,982 845,256 17.2%Consumi di materie prime e servizi esterni 798,151 564,733

Oneri diversi di gestione 12,725 13,046VALORE AGGIUNTO 180,106 267,477 -32.7%Costo del personale 196,021 170,532MARGINE OPERATIVO LORDO (15,915) 96,945 -116.4%% sui ricavi totali -1.7% 11.6%

Ammortamenti 45,703 42,140

Accantonamenti e svalutazioni 26,949 2,108UTILE OPERATIVO (88,566) 52,697 -268.1%% sui ricavi totali -9.3% 6.3%

Proventi / (Oneri) finanziari (21,285) (23,826)

Utili / (Perdite) su cambi (14,592) (843)

Rettifiche di valore di attività di attività finanziarie (2) 1,665UTILE PRIMA DELLE IMPOSTE (124,447) 29,693 N/AImposte sul reddito 8,643 8,133

Risultato di pertinenza terzi (1,661) 8,195UTILE DEL PERIODO DI PERTINENZA DEL GRUPPO (131,429) 13,365 N/A

44

Income Statement 9M15 vs 9M14

Euro 000 9M15 9M14 D% Immobilizzazioni - Immobilizzazioni materiali 415,638 374,159

- Immobilizzazioni immateriali 88,691 62,232

- Immobilizzazioni finanziarie 6,565 7,345

Capitale d'esercizio netto - Rimanenze 609,018 693,091

- Crediti commerciali 488,755 405,845

- Debiti commerciali (-) (310,209) (306,032)

- Acconti (-) (244,970) (257,502)

- Altre attività (passività) 52,443 86,724

Capitale investito dedotte le Passività d'esercizio 1,105,930 1,065,861 3.8%Benefici successivi alla cessazione del rapporto di lavoro (-) (22,299) (24,096)CAPITALE INVESTITO NETTO 1,083,632 1,041,767 4.0%Finanziato da:Patrimonio Netto del Gruppo 537,727 435,576

Patrimonio Netto di pertinenza di terzi 12,868 22,491Indebitamento finanziario netto 533,038 583,700TOTALE FONTI DI FINANZIAMENTO 1,083,632 1,041,767 4.0%

1. TREVI Group

2. 9M 2015 Financial Results

3. Q&A

4. Appendix

45

46

The Group

172 Dams worldwide

1st Oil & Gas Rig manufacturer in Europe

>62 Marine Projects in the world

>50 Metros in

world

12% EBITDA margin 14 year average

• Ownership: 51%*

• Market: 49%

• Established: 1957

• Listed: 1999

• Value Proposition: Fully integrated Special Foundation Services and Oil & Gas Company

*Includes FSI

6 Main projects US Army Corps

Company Facts

47

The Group

52 Companies

38 Countries

69 Business Units

Divisions:

Special Foundations

Oil & Gas

Synergies

Innovation

Advantage

FY 2014 Results

Revenues €1,251m Ebitda €126m

Ebit €63m NFP €379m

FY 2014 KPI

Value of Prod. €1,283m Backlog €1,107m NFP/Ebitda 3.0x

Employees 7,493

NFP/Equity 0.57x

Dividends €0.07

48

Track Record of Growth and Excellence

Revenues

EBITDA % margin & 14 year average = 12%

49

Track Record of Growth and Excellence

EBIT % margin & 14 year average = 6.5%

Dividends

The Executive in charge of the preparation of accounting documents “Daniele Forti” 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. This presentation, prepared by TREVI – Finanziaria Industriale SpA, contains forward looking information and statements about the group and in no case may it be interpreted as an offer or an invitation to sell or purchase any security issued by the company or its subsidiaries. These statements include financial projections and estimates and their underlying assumptions, statements regarding plans, objectives and expectations to future operations, products and services, and statements regarding future performance. Forward looking statements involve inherent risks and uncertainties are current only at the date they are made. However, the management of TREVI – Finanziaria Industriale SpA believes that the expectations are reasonable, but, at the same time, points out to holders and investors that all the information and all the statements are subject to various risk and many of which are very difficult to predict and to control. TREVI – Finanziaria Industriale SpA does not undertake any obligation to update forward looking statements to reflect any changes in own expectations with regard thereto or any changes in events.

50

Disclaimer

Investor Relations Team:

Stefano Campana Josef Mastragostino

investorrelations@trevifin.com