analysts presentation trevi group 3q14 presentation€¦ · 3q 2014 results marginality stable...
TRANSCRIPT
Financial Results
CONFERENCE CALL
Cesena14th November 2014
2014 Third Quarter Results
Ended 30th September 2014
1. TREVI Group
2. 9M 2014 Financial Results
3. Q&A
4. Appendix
2
Rome (ITALY) Metro Line Soilmec Hydromill
FOUNDATION
ENGINEERING
TREVI Group: Competitive Advantage
3
Special foundation services
Special foundation rigs
Oil drilling rigs
Oil drilling services
GROUP
SYNERGIES
CONSTANT
INNOVATION
OUR
COMPETITVE
ADVANTAGE
STRENGTHENING MARKET LEADERSHIP
OIL&GAS
Thailand
Venezuela
U.S.A.
Mozambique
Nigeria
U.A.E.
Oman
Italy
Colombia
Qatar
New Zealand
Peru
Austria
Venezuela
Argentina
AlgeriaPhilippines
Panama
Angola
Colombia
Saudi Arabia
Libya
PETREVEN
Division
TREVI
Division
Italy
Chile
Denmark
Kuwait
Turkey
Brazil
4Argentina
Brazil
Hong Kong
34 Operating Companies in 25 Countries – 48 Business Units
TREVI Group: Services Presence
Germany
Canada
Japan
China
Singapore
Italy
U.S.A.
France
India
Germany
U.S.A.
Australia
Italy
Brazil
Algeria
U.A.E.
Hong Kong
Colombia
Russia
UK
DRILLMEC
Division
SOILMEC
Division
5
18 Operating Companies in 13 Countries – 21 Business Units
TREVI Group: Mechanical Engineering Presence
Canada
Brazil
Columbia
Argentina
U.A.E.
Ethiopia
Australia
Singapore
Belarus
• 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
TREVI Group: Results Key Highlights
3Q14: Stable margins & significant portfolio growth
7
TREVI Group: Use of proceeds
� Financing of selective acquisitions aimed mainly to the entrance ingeographic markets currently unattended or to strengthen thecompetitive position in areas of high growth potential
� Financial support for the completion of the product range andcomponents with high added value in the field of onshore and offshoreinvestment by both organic and targeted acquisitions
� Strengthening of the financial resources in order to increase thecapacity expansion of working capital as a factor of success incompetitive markets with orders that embroil payment schemesconcentrated on the final stages of production / delivery of
Group’s Divisions Overlook
8
• 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
• Pivotal contracts renewed with primary standing clients and new opportunities recently closed
SP
EC
IAL
FO
UN
DA
TIO
NS
SE
RV
ICE
SO
IL &
GA
S S
ER
VIC
ES
Group’s Divisions Overlook
9
• 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
& G
AS
RIG
SS
PE
CIA
L F
OU
ND
AT
ION
S R
IGS
10
TREVI special foundationworks for the most importantbridge under construction inKuwait
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.
TREVI: Key Contracts
11
TREVI: Key Contracts
380 million USD Master Agreement
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.
Large marine complex
12
TREVI: Key Contracts
135 million USDTREVI 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.
� 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 22million USD.
Soilmec SR-60 foundation rigs at work
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.
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.
1. TREVI Group
2. 9M 2014 Financial Results
3. Q&A
4. Appendix
15
Copenaghen (DENMARK) CITYRINGEN work site
16
3Q 2014 Results
� Marginality stable
� Increased Net Income
� Backlog significantly increased
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
17
9M 2014 Results
� Marginality stable
� Increased Net Income
� Backlog significantly increased
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
Restated
9M14 % 9M13* % ∆%
VALUE OF PRODUCTION 845.3 992.3 -14.8%
REVENUES 832.2 100.0% 968.7 100.0% -14.1%
EBITDA 96.9 11.6% 112.7 11.6% -14.0%
EBIT 52.7 6.3% 67.0 6.9% -21.3%
FINANCIAL COSTS (23.8) -2.9% (20.3) -2.1% 17.1%
TAXES 8.1 1.0% 11.1 1.1% 26.7%
NET PROFIT 13.4 1.6% 12.0 1.2% 11.4%
9M14 9M13* ∆%*
NET CAPITAL EMPLOYED 1,041.8 935.3 11.4%
EQUITY 458.1 446.5 2.6%
NET FINANCIAL POSITION 583.0 488.0 -19.5%
BACKLOG 1,060.6 848.9 24.9%
9M14 9M13*
NFP / EBITDA 4.51X 3.25X
NFP / EQUITY 1.27X 1.09X
9M14 9M13*
EMPLOYEES 7,613 7,427
18
Financial Highlights 9M14 yoy
Eur mln
Eur mln
Based on non Consolidated data19
Services
47,3%
Mechanical
Engineering
52,7%
Oil & Gas
40,7%
Core
Business
59,3%
One Group: Two Points of view
Tota
l R
even
ues 9
M1
4:
Eu
r8
32
.2 m
ln
20
Revenues Before and After Consolidation
Restated
Eur mln 9M14 9M13* ∆%∆%∆%∆%
Special Foundation Services (TREVI) 351.9 376.0 -6.4%
Drilling Services (PETREVEN) 99.1 92.1 7.6%
Interdivisional Adjustments and Eliminations (3.8) (2.7)
Sub-Total Foundations and Drilling Services Sector 447.2 465.4 -3.9%
Machines for Special Foundations (SOILMEC) 155.5 148.2 4.9%
Drilling Rigs (DRILLMEC) 249.2 375.4 -33.6%
Interdivisional Adjustments and Eliminations (4.9) (0.4)
Sub-Total Mechanical Sector 399.7 523.1 -23.6%
Parent Company 13.5 10.6
Interdivisional Eliminations (28.2) (30.4)
TOTAL CONSOLIDATED REVENUES 832.2 968.7 -14.1%
21
Breakdown per Geographical Area
469,0
589,0
779,9
836,4
689,1724,1
818,5
968,7
832,2
22
Backlog
Foundation Sector Drilling Sector
681,0
783,5
1.228,6
759,4
1.021,2
871,5 848,9
1.060,6
GEOGRAPHICAL AREA (Eur mln) 9M14 %
Italy 112.4 10.6%
Europe (Italy excl.) 43.4 4.1%
U.S.A. and Canada 119.4 11.3%
Latin America 427.8 40.3%
Africa 86.0 8.1%
Middle East and Asia 231.2 21.8%
Far East and RoW 40.3 3.8%
TOTAL 1,060.6 100.0%
NFP 9M14NFP FY13 EBIT + D&A
FREE CASH FLOW
- 108,4 mln Eur
Eur
mln
INVESTMENTS INTERESTS EXCHANGE
DIFFERENCES
OTHERTAXES ∆ WORKING
CAPITAL
23
Net Financial Position
Eur
mln
24
Financial Ratios
EBITDA/Oneri Fin. Netti 4,1x5,5x4,6x7,9x11,5x11,7x10,8x
9M 10 9M 11 9M 12 9M 13* 9M 149M 099M 08
441,8
247,9
385,7
480,0
395,7
488,0
583,0
Eur mln
EQUITY NET FINANCIAL POSITION
Short Term Debt
Long Term Debt
25
Equity and Net Financial Position
294,4
218,4
376,6
583,0
349,6
433,8446,5
458,1
26Based on non Consolidated Data
Foundations and Drilling Services
427,9
359,4 362,1 354,8
401,9
465,4 447,2
Based on non Consolidated Data27
Mechanical Engineering
417,1444,3
342,4
397,3428,7
523,1
399,7
1Q14 vs 2Q14 vs 3Q14
148,9126,6
124,2
Guidance
28
2014
REVENUES
EBIT
NFP
� Revenue growth
� EBIT expected in line
� NFP to improve by year end
� We expect to gradually improve our financial position in the long term
* Post share capital increase
2014 KPI
€280-330m*
€70-80m
€1,3BN
1. TREVI Group
2. 9M 2014 Financial Results
3. Q&A
4. Appendix
29
Drillmec HH-201
30
Income Statement 9M14 vs 9M13
Restated
Eur 000 9M14 9M13* ∆% ∆% ∆% ∆%
TOTAL REVENUES 832,230 968,746 -14.1%
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 845,256 992,297 -14.8%
Raw materials and external services 564,733 695,557
Other operating costs 13,046 12,126
VALUE ADDED 267,477 284,614 -6.0%
Personnel expenses 170,532 171,949
EBITDA 96,945 112,665 -14.0%
% Total Revenues 11.6% 11.6%
Depreciation 42,140 39,703
Provisions and write-downs 2,108 5,963
EBIT 52,697 67,000 -21.3%
% 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 36,889 -19.5%
Tax 8,133 11,090
Minorities 8,195 13,798
GROUP NET PROFIT 13,366 12,001 11.4%
31
Statement of Financial Position 9M14 vs 9M13
Restated
Eur 000 9M14 9M13* ∆% ∆% ∆% ∆%
Fixed assets
- Tangible fixed assets 374,159 350,377
- Intangible fixed assets 62,232 31,180
- Financial fixed assets 7,345 6,937
Net working capital
- Inventories 693,091 555,107
- Trade receivables 405,845 445,066
- 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 1,065,863 956,294 11.5%
Post-employment benefits (-) (24,096) (21,040)
NET INVESTED CAPITAL 1,041,767 935,255 11.4%
Financed by:
Group net shareholders' funds 435,576 412,120
Minorities' share of net shareholders ' funds 22,491 34,352
Total financial indebtedness 583,700 488,784
TOTAL SOURCES OF FINANCING 1,041,767 935,255 11.4%
1. TREVI Group
2. 9M 2014 Financial Results
3. Q&A
4. Appendix
32
Works on the Panama Canal – (PANAMA)
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 theaccounting information contained in this presentation corresponds to the document results,books and accounting records.
This presentation, prepared by TREVI – Finanziaria Industriale SpA, contains forward lookinginformation and statements about the group and in no case may it be interpreted as an offer oran 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 andservices, and statements regarding future performance.
Forward looking statements involve inherent risks and uncertainties are current only at thedate they are made.
However, the management of TREVI – Finanziaria Industriale SpA believes that theexpectations are reasonable, but, at the same time, points out to holders and investors that allthe information and all the statements are subject to various risk and many of which are verydifficult to predict and to control.
TREVI – Finanziaria Industriale SpA does not undertake any obligation to update forwardlooking statements to reflect any changes in own expectations with regard thereto or anychanges in events.
33
Disclaimer
