2014 First Quarter Results Conference Call Presentation ... · 10 DRILLMEC: Key Contracts • 2 X 3000 HP Onshore Rigs Drillmec has been awarded the supply of two onshore drilling

2014 First Quarter Results

Ended 31st March 2014

Conference Call Presentation

Cesena15th May 2014

1. TREVI Group

2. 1Q 2014 Financial Results

3. Foundation Engineering

4. Oil & Gas Focus

5. Appendix

2

(ITALY) World Record at 250 meters (820ft) depth Soilmec Hydromill

FOUNDATION

ENGINEERING

TREVI Group: Competitive Advantage

3

Special foundation serv ices

Special foundation rigs

Oil drilling rigs

Oil drilling serv ices

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

Canada

Qatar

New Zealand

Peru

Austria

Venezuela

Argentina

AlgeriaPhilippines

Panama

Angola

Colombia

Saudi Arabia

Libya

PETREVE

N

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 Sector Presence

Germany

18 Operating Companies in 13 Countries – 21 Business Units

TREVI Group: Mechanical Sector Presence

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

Canada

Brazil

Columbia

Argentina

U.A.E.

Ethiopia

Australia

Singapore

Belarus

• Strong set of order intake The beginning of the year was characterized by a strong order intake at around €480 million

• Marginality was stable EBITDA percentage was in line with last year’s figures notwithstanding a slight decrease in revenues

• Service division performed well with sound margins Operational excellence continued in the execution of special foundation works

• Oil & Gas market witnessing a strong positive trendThe Oil & Gas division was able to acquire a significant amount of new contracts that will be delivered in

the second part of the year improving key performance indicators

• Net Financial Position hiked following significant new order executionExpected a significant amount of rigs to be delivered in the second part of the year driving down

Net Financial Indebtedness

6

TREVI Group: Results Key Highlights

1Q14: organizing the bases for delivery

*Applied accounting principles and changes that require the restatement of previous financial statements.

Group’s Divisions Overlook

7

• Solid order backlog

• Strong opportunities in Latin America

• Long term visibility

• Continued strong performance in terms of profitability

• US, Middle East, Africa performed well. Europe remains slow

• Infrastructure sector stable & construction sector pressured

• Order intake significantly improved

• Single digit growth

• Sound business strategy

• Marginality improving

• All rigs are under contracts

• Overall clear operations outlook & organic growth

• By the third quarter the utilization rate will increase noticeably

SP

EC

IAL

FO

UN

DA

TIO

NS

SE

RV

ICE

SO

IL &

GA

S S

ER

VIC

ES

Group’s Divisions Overlook

8

• Mild performance after astonishing +4Q13 growth

• Introduced at the 2014 OTC in Houston the second generation of HH series rigs AHEAD

• Awarded over $340million of new contracts both Onshore+ Offshore

• New & important orders to come soon

• Delivery and full execution of rigs within the second part of the year

• 1Q’14 operations characterized by a start-up phase for later ramp up of operations

• Improved & significant quality of the Backlog to guarantee improvement in margins

• Actions in progress of reduction of inventories maintaining volume of sales

• Marginality improved on lower volume of sales

• Mature markets are showing signs of recovery

• Higher competition hindering pricing and marginality

• Construction market still showing mixed signs of recovery

OIL

& G

AS

RIG

SS

PE

CIA

L F

OU

ND

AT

ION

S R

IGS

9

DRILLMEC: 2014 OTC Houston, Texas

� Introduction of the second generation HH rigs

� AHEAD

Fully automated Off-line System designed for 2 API Range 3DP or 3 API Range 2DP

Advanced

Hydraulic

Electrical

Automated

Driller

10

DRILLMEC: Key Contracts

• 2 X 3000 HP Onshore Rigs

Drillmec has been awarded the supply of two onshore drilling rigs of 3,000 HP each

from Petroleos Mexicanos (Pemex)

The amount of the contract is approximately USD 85 million.

The rigs will mainly be utilized for the

extraction of Shale Gas in Mexico in order to develop one of the most

important recoverable reserves in the world.

Drillmec onshore rigs

1. TREVI Group


3. Appendix

4. Q & A

11

Copenaghen (DENMARK) CITYRINGEN work site

12

1Q’14 Results

� Strong order Backlog Strong increase in volumes

� Stable Marginality at about 12% EBITDA levels were overall maintained

� Revenues: €266m €308m vs 1Q13*

� EBITDA: €31m €39m vs 1Q13*

� EBIT: €17m €23m vs 1Q13*

� PBT: €7m €14m vs 1Q13*

� Backlog: €1.092m €1.122m vs 1Q13*

� NFP: €574m €445m vs 1Q13*


Restated

1Q14 % 1Q13 % ∆%*

VALUE OF PRODUCTION 267,5 318,2 -15,9%

REVENUES 265,7 100,0% 308,5 100,0% -13,9%

EBITDA 31,1 11,7% 38,7 12,5% -19,7%

EBIT 17,0 6,4% 23,1 7,5% -26,5%

FINANCIAL COSTS (7,6) -2,8% (6,1) -2,0% 23,7%

TAXES 1,7 0,6% 4,4 1,4% 62,3%

NET PROFIT (0,3) -0,1% 3,3 1,1% -107,6%

1Q14 1Q13 ∆%*

NET CAPITAL EMPLOYED 1.004,1 919,4 9,2%

EQUITY 428,9 473,3 -9,4%

NET FINANCIAL POSITION 574,1 445,5 -28,9%

BACKLOG 1.091,9 1.122,0 -2,7%

1Q14 1Q13

NFP / EBITDA 4,22X 3,27X

NFP / EQUITY 1,34X 0,94X

1Q14 1Q13

EMPLOYEES 7.187 7.549

13

Financial Highlights 1Q14 yoy

Eur mln

Eur mln

*Applied accounting principles and changes that require the restatement of previous financial statements. Variation is based on Restated figures.

Based on non Consolidated data14

Services

Sector

52,9%

Mechanical

Sector

47,1%

Drilling

Sector

41,5%

Core Business

58,5%

One Group: Two Points of view

To

tal R

ev

en

ue

s 1

Q1

4:

Eu

r2

65

.7 m

ln

Restated

Eur mln 1Q14 1Q13* ∆%∗ ∆%∗ ∆%∗ ∆%∗

Special Foundation Services (TREVI) 115,6 130,5 -11,4%

Drilling Services (PETREVEN) 29,3 27,6 6,0%

Interdivisional Adjustments and Eliminations (1,2) (0,9)

Sub-Total Foundations and Drilling Services Sector 143,7 157,2 -8,6%

Machines for Special Foundations (SOILMEC) 44,5 48,8 -8,9%

Drilling Rigs (DRILLMEC) 84,2 107,8 -21,9%

Interdivisional Adjustments and Eliminations (2,1) (0,2)

Sub-Total Mechanical Sector 126,6 156,4 -19,1%

Parent Company 4,1 3,6

Interdivisional Eliminations (8,7) (8,8)

TOTAL CONSOLIDATED REVENUES 265,7 308,5 -13,9%

15

Revenues Before and After Consolidation

*Applied accounting principles and changes that require the restatement of previous financial statements. Variation is based on Restated figures.

16

Breakdown per Geographical Area

Middle East: Contribution from this

area has somewhat improved with respect to the previous quarters.

Infrastructural & Residential projects are key and drive the growth

USA: Tendering activities appear to be

picking up and greater demand for infrastructure works is shown. Primary

construction & economic indicators improving

Latin America: High degree of

business is being brought forward both in the construction and oil & gas fields


163,2178,9

234,8

289,2

235,0216,9

307,8 308,5

267,5

17

Backlog

Foundation Sector Drilling Sector

668,1

901,7831,0

786,0

986,4939,2

1.122,0 1.091,9


NFP 1Q14NFP FY13* EBIT + D&A

FREE CASH FLOW

-115,6 mln Eur

Eur

mln

NET

INVESTMENTSINTERESTS EXCHANGE

DIFFERENCES

OTHERTAXES ∆ WORKING

CAPITAL

18

Net Financial Position


1Q 10 1Q 11 1Q 12 1Q 13* 1Q 14

Eu

r m

ln

1Q 09

EBITDA/Net Fin. Exp. 4,1x6,3x7,9x8,3x10,7x9,2x19

Financial Ratios

1Q 08

11,4x

*Ap

plie

d a

cco

un

ting p

rincip

les a

nd

ch

an

ge

s th

at re

qu

ire th

e re

sta

tem

en

t of p

revio

us fin

an

cia

l sta

tem

en

ts.

173,6

414,4415,4

495,0

445,5

406,2

574,1

20

Based on non Consolidated Data

Foundations and Drilling Services Division


116,3121,3

158,1

118,2

138,4

157,2143,7

Based on non Consolidated Data

21

Mechanical Division


123,0115,8

137,2

105,9

174,3

156,4

126,6

Guidance

22

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

2014 KPI

FY2013

Levels

€70m

€1,3BN

1. TREVI Group


3. Appendix

4. Q & A

23

Fogg Art M useum M assachusetts (USA)

24

Income Statement 1Q14 vs 1Q13

Restated

Eur 000 1Q14 1Q13 ∆%∆%∆%∆% *

TOTAL REVENUES 265.716 308.492 -13,9%

Changes in inventories of finished and semi-finished products (2.333) 7.214

Increase in fixed assets for internal use 4.151 2.458

Other non-ordinary operating revenues 0 0

VALUE OF PRODUCTION 267.534 318.164 -15,9%

Raw materials and external services 177.946 216.567

Other operating costs 2.996 6.333

VALUE ADDED 86.592 95.264 -9,1%

Personnel expenses 55.527 56.575

EBITDA 31.066 38.690 -19,7%

% Total Revenues 11,7% 12,5%

Depreciation 13.822 13.433

Provisions and write-downs 248 2.139

EBIT 16.996 23.118 -26,5%

% Total Revenues 6,4% 7,5%

Financial revenues/(expenses) (7.565) (6.115)

Gains/(Losses) on exchange rates (3.403) (2.542)

Other Gains/(Losses) 594 0

EBT 6.622 14.461 N/A

Tax 1.655 4.393

Minorities 5.217 6.767

GROUP NET PROFIT (250) 3.301 N/A


25

Statement of Financial Position 1Q14 vs 1Q13

Restated

Eur 000 1Q14 1Q13 ∆%∆%∆%∆% *

Fixed assets

- Tangible fixed assets 352.822 358.567

- Intangible fixed assets 49.094 29.897

- Financial fixed assets 5.553 6.937

Net working capital

- Inventories 568.971 550.817

- Trade receivables 392.570 408.015

- Trade payables (-) (250.341) (235.448)

- Pre-payments (-) (139.383) (185.174)

- Other assets (liabilities) 45.475 5.214

Fixed assets plus net working capital 1.024.761 938.825 9,2%

Post-employment benefits (-) (20.664) (19.390)

NET INVESTED CAPITAL 1.004.097 919.435 9,2%

Financed by:

Group net shareholders' funds 405.193 434.526

Minorities' share of net shareholders ' funds 23.722 38.766

Total financial indebtedness 575.182 446.142

TOTAL SOURCES OF FINANCING 1.004.097 919.435 9,2%


1. TREVI Group


3. Appendix

4. Q & A

26

Fogg Art M useum M assachusetts (USA)

The Executive in charge of the preparation of accounting documents “Daniele Forti” declares, pursuant toparagraph 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 andstatements 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, statementsregarding 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 aremade.

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 thestatements 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.

27

Disclaimer

Investor Relations Team:

Stefano CampanaJosef Mastragostino

Cristina Trevisani

[email protected]

Documents

2014 First Quarter Results Conference Call Presentation ... · 10 DRILLMEC: Key Contracts • 2 X 3000 HP Onshore Rigs Drillmec has been awarded the supply of two onshore drilling