Financial Results CONFERENCE CALL Third Quarter Results. Cesena 14 th November2014. Ended 30 th September 2014

Transcription

1 Financial Results 2014 Third Quarter Results Ended 30 th September 2014 CONFERENCE CALL Cesena 14 th November2014

2 1. TREVI Group 2. 9M 2014 Financial Results 3. Q&A 4. Appendix Rome (ITALY) Metro Line Soilmec Hydromill 2

3 TREVI Group: Competitive Advantage FOUNDATION ENGINEERING OIL&GAS GROUP SYNERGIES Special foundation services Oil drilling rigs CONSTANT INNOVATION Special foundation rigs OUR COMPETITVE ADVANTAGE Oil drilling services STRENGTHENING MARKET LEADERSHIP 3

4 TREVI Group: Services Presence 34 Operating Companies in 25 Countries 48 Business Units U.S.A. Denmark Austria Italy Italy Turkey Germany Canada Libya Thailand Brazil Panama Colombia Alge ria Oman Philippines Colombia Peru Venezuela Nige ria Angola Mozam bique U.A.E. Kuwait Saudi Arabia Hong Kong Arge ntina Brazil Qatar Chile Venezuela Arge ntina PETR EVEN Division TREVI Division New Zealand 4

5 TREVI Group: Mechanical Engineering Presence 18 Operating Companies in 13 Countries 21 Business Units Canada Be larus Italy Russia U.S.A. Italy UK France Germany China India Japan U.S.A. Alge ria Hong Kong Singapore Brazil U.A.E. Singapore Colombia Columbia U.A.E. Ethiopia Brazil Australia Arge ntina DR ILLMEC Division SO ILMEC Division Australia 5

6 TREVI Group: Results Key Highlights 3Q14: Stable margins & significant portfolio growth Successfully completed the offering of pre-emptive rights to subscribe to the share capital increase of Euro 200 million Over 700 million USD of newly announced orders and agreements since the end of 1H The order backlog has registered a strong growth with key strategic contracts Marginality stable and increased with respect to 9M13 figures EBITDA percentage improved with respect to last year s figures Service division performed well with sound margins Good delivery continued in the execution of special foundation works Improving margins in the Mechanical division Operations are moving in the right direction and efficiency is paving the way to improving performance. Expected very strong growth in the last quarter of the year with sound margins Many new opportunities in the Oil & Gas business continue to arise 6

7 TREVI Group: Use of proceeds Financing of selective acquisitions aimed mainly to the entrance in geographic markets currently unattended or to strengthen the competitive position in areas of high growth potential Financial support for the completion of the product range and components with high added value in the field of onshore and offshore investment by both organic and targeted acquisitions Strengthening of the financial resources in order to increase the capacity expansion of working capital as a factor of success in competitive markets with orders that embroil payment schemes concentrated on the final stages of production / delivery of 7

8 Group s Divisions Overlook Solid order backlog Very strong order intake in areas such as the Middle East, West Africa and the US. Increased the already long term visibility 3Q results show reputable performance in terms of profitability Infrastructure sector stable & construction sector pressured Quarterly order intake continues to register significant growth (about 140m Euro in 3Q14) High single digit growth in sales 17 rigs under operations Marginality and all KPI improving Overall clear operations outlook & organic growth Production capacity of rig utilization rate increased as planned SPECIAL FOUNDATIONS SERVICES OIL & GAS SERVICES Pivotal contracts renewed with primary standing clients and new opportunities recently closed 8

9 Group s Divisions Overlook Revenues to increase strongly in the last part of the year The works acquired will guarantee an increase both in revenues and margins by the end of the year New & important orders expected from the Middle East, South America & Africa Expecting payment by year end from rigs in deliver in by the 4Q14 New contracts in Azerbaijan for a 300 ton rig and a conventional rig of HP2000 to be mounted on a platform New opportunities have been finalized and more are expected to come in the next couple of weeks Another 5% of revenue increase with respect to the previous nine months Notwithstanding the contraction in the Italian market the US, UK & France performed well Quarterly order intake continues to register significant growth (about 67m Euro in 3Q14) Mild signs of recovery in sales in the Middle East Actions of reduction of inventories while maintaining volume of sales are showing their positive effects OIL & GAS RIGS SPECIAL FOUNDATIONS RIGS 9

10 TREVI: Key Contracts 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 36 km. 10

11 TREVI: Key Contracts 380 million USD Master Agreement Large marine complex TREVI division has signed a master agreement with an important international private partner of the maritime infrastructure sector for the construction of a marine complex in Africa for a total value of approximately USD 380 million. The work is part of a project for the African infrastructure development which will increase significantly the logistical capacity of the region to meet the strong demand resulting from sea trade and from the oil industry. 11

12 TREVI: Key Contracts 135 million USD TREVI Special Foundation TREVI division, specialized in ground engineering services, has recently been awarded new contracts in various countries totaling about 135 million USD: In Africa and in the Far East works will be carried out for a total value of approximately 48 million USD. Soilmec SR-60 foundation rigs at work In South America TREVI has been awarded a series of contracts for a total amount of approximately 65 million USD. In the Middle East TREVI has been awarded several contracts for a total value of the works of approximately 22 million USD. 12

13 TREVI: Key Contracts 84 million USD in the Middle East for Special Foundation The TREVI division, specialized in ground engineering services, has been awarded new contracts in the Middle East totaling about 84 million USD: Civil engineering works and special foundations for the realization of different lines of the Riyadh metro in Saudi Arabia. This major contracts is worth 36 million USD. TREVI was also been awarded a series of medium sized contracts worth a total of about 48 million USD in the UAE, Oman, Saudi Arabia and Qatar to carry out ground consolidation for infrastructure works to reduce the risk of soil liquefaction. 13

14 TREVI: Key Contracts New orders in Colombia, Peru and Azerbaijan totaling about 77 million USD TREVI has signed through its subsidiary in Colombia a major new contract for the construction and execution of foundation works for a primary shopping complex in the Capital. Petreven, a TREVI Group company, which specializes in oil drilling services, has signed with Petrobras in Perù a long term contract of eighteen months for the provision of drilling services. Drillmec, a TREVI Group company, has also signed a contract for the supply of a 3,000 HP offshore rig for, a drilling and services company that is expanding its activities both in Azerbaijan and internationally. 14

15 1. TREVI Group 2. 9M 2014 Financial Results 3. Q&A 4. Appendix Copenaghen (DENMARK) CITYRINGEN work site 15

16 3Q 2014 Results Revenues: 274m 291m vs 3Q13 EBITDA: 32m 28m vs 3Q13 EBIT: 17m 15m vs 3Q13 PBT: 13m 5m vs 3Q13 NI: 9m 1m vs 3Q13 Backlog: 1061m 849m vs 3Q13 Marginality stable Increased Net Income Backlog significantly increased 16

17 9M 2014 Results Revenues: 832m 969m vs 9M13 EBITDA: 97m 113m vs 9M13 EBIT: 53m 67m vs 9M13 PBT: 30m 37m vs 9M13 NI: 13m 12m vs 9M13 Backlog: 1061m 849m vs 9M13 Marginality stable Increased Net Income Backlog significantly increased 17

18 Financial Highlights 9M14 yoy Eur mln Restated 9M14 % 9M13* % % VALUE OF PRODUCTION % REVENUES % % -14.1% EBITDA % % -14.0% EBIT % % -21.3% FINANCIAL COSTS (23.8) -2.9% (20.3) -2.1% 17.1% TAXES % % 26.7% NET PROFIT % % 11.4% Eur mln 9M14 9M13* %* NET CAPITAL EMPLOYED 1, % EQUITY % NET FINANCIAL POSITION % BACKLOG 1, % 9M14 9M13* NFP / EBITDA 4.51X 3.25X NFP / EQUITY 1.27X 1.09X 9M14 9M13* EMPLOYEES 7,613 7,427 18

19 One Group: Two Points of view Services 47,3% Mechanical Engineering 52,7% Total Revenues 9M14: Eur832.2 mln Oil & Gas 40,7% Core Business 59,3% Based on non Consolidated data 19

20 Revenues Before and After Consolidation Restated Eur mln 9M14 9M13* % Special Foundation Services (TREVI) % Drilling Services (PETREVEN) % Interdivisional Adjustments and Eliminations (3.8) (2.7) % Sub-Total Foundations and Drilling Services Sector % Machines for Special Foundations (SOILMEC) % Drilling Rigs (DRILLMEC) % Interdivisional Adjustments and Eliminations (4.9) (0.4) Sub-Total Mechanical Sector % Parent Company Interdivisional Eliminations (28.2) (30.4) TOTAL CONSOLIDATED REVENUES % 20

21 Breakdown per Geographical Area 968,7 779,9 836,4 689,1 724,1 818,5 832,2 589,0 469,0 21

22 Backlog GEOGRAPHICAL AREA (Eur mln) 9M14 % Italy % Euro pe (Italy excl.) % U.S.A. and Canada % Latin America % Africa % 1.228, , ,6 Middle East and Asia % Far East and RoW % TOTAL 1, % 681,0 783,5 759,4 871,5 848,9 Foundation Sector Drilling Sector 22

23 Net Financial Position FREE CASH FLOW - 108,4 mln Eur Eur mln NFP FY13 EBIT + D&A TAXES WORKING CAPITAL INVESTMENTS INTERESTS EXCHANGE DIFFERENCES OTHER NFP 9M14 23

24 Financial Ratios 583,0 Eur mln 441,8 395,7 385,7 480,0 488,0 247,9 9M 08 9M 09 9M 10 9M 11 9M 12 9M 13* 9M 14 EBITDA/Oneri Fin. Netti 10,8x 11,7x 11,5x 7,9x 4,6x 5,5x 4,1x 24

25 Equity and Net Financial Position Eur mln 583,0 433,8 446,5 458,1 Short Term Debt Long Term Debt 349,6 376,6 294,4 218,4 EQUITY NET FINANCIAL POSITION 25

26 Foundations and Drilling Services 427,9 359,4 362,1 354,8 401,9 465,4 447,2 Based on non Consolidated Data 26

27 Mechanical Engineering 523,1 444,3 417,1 397,3 428,7 399,7 342,4 1Q14 vs 2Q14 vs 3Q14 126,6 148,9 124,2 Based on non Consolidated Data 27

28 Guidance 2014 KPI Revenue growth EBIT expected in line NFP to improve by year end We expect to gradually improve our financial position in the long term 2014 REVENUES EBIT NFP 1,3BN 70-80m m* * Post share capital increase 28

29 1. TREVI Group 2. 9M 2014 Financial Results 3. Q&A 4. Appendix Drillmec HH

30 Income Statement 9M14 vs 9M13 Restated Eur 000 9M14 9M13* % TOTAL REVENUES 832, , % Changes in inventories of finished and semi-finished products (11,107) 11,466 Increase in fixed assets for internal use 24,133 12,085 Other non-ordinary operating revenues 0 0 VALUE OF PRODUCTION 845, , % Raw materials and external services 564, ,557 Other operating costs 13,046 12,126 VALUE ADDED 267, , % Personnel expenses 170, ,949 EBITDA 96, , % % Total Revenues 11.6% 11.6% Depreciation 42,140 39,703 Provisions and write-downs 2,108 5,963 EBIT 52,697 67, % % Total Revenues 6.3% 6.9% Financial revenues/(expenses) (23,826) (20,342) Gains/(Losses) on exchange rates (843) (9,618) Other Gains/(Losses) 1,665 (152) EBT 29,694 36, % Tax 8,133 11,090 Minorities 8,195 13,798 GROUP NET PROFIT 13,366 12, % 30

31 Statement of Financial Position 9M14 vs 9M13 Fixed assets Restated Eur 000 9M14 9M13* % - Tangible fixed assets 374, ,377 - Intangible fixed assets 62,232 31,180 - Financial fixed assets 7,345 6,937 Net working capital - Inventories 693, ,107 - Trade receivables 405, ,066 - Trade payables (-) (306,032) (314,554) - Pre-payments (-) (257,502) (148,194) - Other assets (liabilities) 86,725 30,375 Fixed assets plus net working capital 1,065, , % Post-employment benefits (-) (24,096) (21,040) NET INVESTED CAPITAL 1,041, , % Financed by: Group net shareholders' funds 435, ,120 Minorities' share of net shareholders' funds 22,491 34,352 Total financial indebtedness 583, ,784 TOTAL SOURCES OF FINANCING 1,041, , % 31

32 1. TREVI Group 2. 9M 2014 Financial Results 3. Q&A 4. Appendix Works on the Panama Canal (PANAMA) 32

33 Disclaimer 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 informationandstatements about the groupandin no casemay it be interpretedas anofferor 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. 33

34 Investor Relations Team: Stefano Campana Josef Mastragostino Cristina Trevisani trevifin.com