2007 first half results - trevifin.com · rct s.r.l. (milano) hong kong trevi construction...

12007 First Half Results

2

1. Trevi Group

2. Financial Results 1st Half 2007

3. Drilling Sector

4. Foundation Sector

3

TREVI GroupTREVI Group

Special foundation rigs Oil drilling rigs Oil drilling services

Foundation Sector 78,0% (*) Drilling Sector 22,0% ( *)

Special foundation services

Foundation Services 42,8%

Foundation Equipments 35,2%

Drilling Services 5,1%

Drilling Rigs 16,9%

• Deep Foundations

• Geotechnical Works

• Marine Works

• Tunnel Consolidation

• Automated Car Parks

• Hydraulic Rotary Rigs

• Cranes

• Jet Grouting

• Tunnel Consolidation

• Casing Oscillators

• Extractors

• Drilling Tools

• etc.

• Hydraulic Rigs (HH Series)

• Derricks & Offshore

• Masts & Substructures

• Mobile Drilling Rigs

• Hydraulic Top Drives

• Triplex Mud Pumps

(*) as of June 2007

• Onshore Drilling

• Long term contracts

• Latin America emerging Player

Overview

TREVI – Finanziaria Industriale

4

Unique Business ModelUnique Business Model

Technological Innovation Process Innovation

STRENGTHENING MARKET LEADERSHIPSTRENGTHENING MARKET LEADERSHIP

FOUNDATION EQUIPMENTS AND DRILLING RIGS FOUNDATION AND DRILLING SERVICES

Overview

5

The Roots of Innovation: Core BusinessThe Roots of Innovation: Core Business

Know HowSharing

Interaction with “hard”customers /projects

Cooperation with Universities and Research

Centers

Competition / Cooperation with Competitors

InfrastructuresInfrastructuresHard Soils /

Grounds

Overview

6

The Roots of Innovation: DrillingThe Roots of Innovation: Drilling

Know HowSharing

Merging Different Competences /

Capabilities

Cooperation with Universities and Research

Centers

Electronics/ Electronics/ ElectricsElectrics

HydraulicsHydraulics

GeotechnicsGeotechnics

HH

Overview

7

A Global PresenceA Global Presence

Venezuela Trevi Cimentaciones C.A.

U.S.A. Trevi Icos Corporation (Boston)Trevi Icos South Inc.

MozambiqueProfuro Lda

NigeriaTrevi Foundations

U.A.E. Swissboring

OmanSwissboring

AlgeriaTrevi Algerie

GermanySpezialtiefbau GmbHSwedenHercules Trevi Foundations A.B.

Italy Trevi S.p.A. (Cesena)RCT S.r.l. (Milano)

Hong KongTrevi Construction

PhilippinesTrevi Philippines Inc.

JapanSoilmec Japan

ChinaR. officeHong KongSoilmec H.K. Ltd

SingaporeSoilmec Far East Ltd

ItalySoilmec S.p.A. (Cesena)PSM S.r.l. (Treviso)

TREVI Division

SOILMEC Division

DRILLMEC Division

Italy (Piacenza)DRILLMEC S.p.A.EDRA S.r.l.

U.S.A.Drillmec Inc.

ArgentinaPilotes Trevi

ColombiaPetreven Colombia

Qatar Swissboring

IranTrevi Iran Branch

New ZealandTrevi Construction

FranceSoilmec France

PeruPetreven Perù Branch

PETREVEN Division Petreven - UTE

Petreven Venezuela

UKSoilmec Ltd

30 operating companies in 26 Countries - 36 Business Units

AustriaTrevi Branch

IndiaSoilmec India

Overview

CanadaTrevi Foundations Canada Inc.

8

Highlights 1Highlights 1 stst Half 2007Half 2007

�REVENUES = Euro 378,7 mln (+21% on 1 st Half 2006)

�EBIT MARGIN = 10,6% (+43% on 1 st Half 2006)

�BACKLOG = Euro 686,1 mln (+8% on December 2006)

Overview

�NET PROFIT = Euro 21,5 mln (+73% on 1 st Half 2006)

�NET FINANCIAL POSITION = Euro 159,3 mln (-9% on Dec ember 2006)

9

1. Trevi Group


3. Drilling Sector


10

Revenues Trend 1999 Revenues Trend 1999 –– 11stst Half 2007Half 2007

Financial Results 1st Half 2007

263,0

137,1

304,0

184,4

349,7

163,3

340,1

183,0

366,6

167,7

366,4

218,5

497,7

314,1

642,4

378,7

1999

1H20

00

2000

1H20

01

2001

1H20

02

2002

1H20

03

2003

1H20

04

2004

1H20

05

2005

1H20

06

2006

1H20

07

Eur

o m

ln

11

314,1

378,7

5,3

49,5 1,8

8,0

3,4%59,1%

2,9%

70,5%

Revenues +21% Revenues +21%


1H 2006 1H 2007

4%

20%

27%

49%

5%17%

35%43%

Euro mlnEuro mln

12

43,8 52,4 49,568,3

18,023,3 40,1

63,2

21,724,3

44,4

37,8

13,519,0

29,8

43,7

24,9

39,0

45,5

64,4

34,4

48,5

86,8

75,3

11,4

12,0

18,1

26,0

1H2004 1H2005 1H2006 1H2007

Eur

o m

ln

Far East andOther

Middle East

Africa

Latin America

U.S.A. andCanada

Europe (excl.Italy)

Italy

Revenues: Geographical BreakdownRevenues: Geographical Breakdown

�CAGR ‘04-’07 : + 31,2%

167,7

218,5

314,1

378,7


13

13%

Drilling Rigs27%

38%

22%

211 241 262329 358

316 348

117130

145

188

240 321339

30/06/2004 31/12/2004 30/06/2005 31/12/2005 30/06/2006 31/12/2006 30/06/2007

Eur

o m

ln

Foundation Sector Drilling Sector

Backlog +Backlog + 88% on% on DecemberDecember 20062006

328

407

599

686

Growth 1H 04-1H 07 = 27,9%


637

517

371

AREA Euro mln %Latin america 247,5 36,1%Middle East 120,3 17,5%U.S.A. and Canada 52,6 7,7%Italy 98,1 14,3%Europe (excl. Italy) 69,2 10,1%Africa 89,8 13,1%Far East 7,9 1,1%Other 0,6 0,1%TOTAL 686,1 100%

14

30/06/2007 % 30/06/2006 %

REVENUES 378,7 100,0% 314,1 100,0%

EBITDA 53,5 14,1% 41,5 13,2%

EBIT 40,0 10,6% 28,0 8,9%

NET PROFIT 21,5 5,7% 12,5 4,0%

30/06/2007 30/06/2006

NET CAPITAL EMPLOYED 303,9 256,5

EQUITY 144,6 108,1

NET DEBT 159,3 148,4

30/06/2007 30/06/2006

NET DEBT/ EBITDA 1,49X 1,79X

NET DEBT / EQUITY 1,10X 1,37X

Financial Highlights 1Financial Highlights 1 stst Half 2007Half 2007

REVENUES +21%

NET PROFIT +73%


EBIT +43%

Euro mlnEuro mln

Euro mlnEuro mln

15

Quarterly Analysis 05Quarterly Analysis 05 --06 06 vsvs 0606--0707

REVENUES BREAKDOWN EBIT BREAKDOWN


3Q 05 133 3Q 06 155

4Q 05 1464Q 06 173

1Q 06 1631Q 07 179

2Q 06 151

2Q 07 200

05-06 06-07

16,3%

18,7%

9,6%

32,4%

3Q 06 13,63Q 05 7,7

4Q 06 16,5

4Q 05 10,6

1Q 07 18,9

1Q 06 16,1

2Q 07 21,0

2Q 06 11,9

05-06 06-07

76,6%

55,7%

17,4%

77,0%

Euro mlnEuro mln Euro mlnEuro mln

16

EbitEbit MarginMargin 10,6%10,6%


184163

183168

219

314

379

10,6%

4,8%

4,1%3,7%

6,1%4,4%

8,9%

0

50

100

150

200

250

300

350

400

1H 2001 1H 2002 1H 2003 1H 2004 1H 2005 1H 2006 1H 2007

Eur

o m

ln

0,0%

2,0%

4,0%

6,0%

8,0%

10,0%

12,0%

Revenues EBIT Margin%

17

7,66,0

11,1

7,310,4

28,0

40,0

1H 2001 1H 2002 1H 2003 1H 2004 1H 2005 1H 2006 1H 2007

Eur

o m

ln15,5 15,0

23,4

18,0

22,6

41,5

53,5

1H 2001 1H 2002 1H 2003 1H 2004 1H 2005 1H 2006 1H 2007

Eur

o m

lnRevenues, EBITDA & EBIT: 1H 2001 Revenues, EBITDA & EBIT: 1H 2001 –– 1H 20071H 2007

REVENUES

EBITDA EBIT

+29%

+21%

+43%


184,4163,3

183,0167,7

218,7

314,1

378,7

1H 2001 1H 2002 1H 2003 1H 2004 1H 2005 1H 2006 1H 2007

Eur

o m

ln

18

53

11 622

159176

7 0,5 3

-15

5

25

45

65

85

105

125

145

165

185

Net Debt31/12/06

EBIT + D&A TAXES ∆ WC INVESTMENTS INTERESTS EXCHANGEDIFFERENCES

OTHER Net Debt30/06/07

Eur

o m

lnChanges in Net Financial PositionChanges in Net Financial Position

FREE CASH FLOW

~ + 26 mln Euro


19

Net Financial PositionNet Financial Position

Net Debt / Equity 1,55x 1,37x 1,10x


148,4

175,5159,3

148,0 142,8

126,0

1,49x

2,05x1,79x

3,16x

3,56x

2,28x

0

50

100

150

200

250

31/12/2004 30/06/2005 31/12/2005 30/06/2006 31/12/2006 30/06/2007

Eur

o m

ln

0,0x

0,5x

1,0x

1,5x

2,0x

2,5x

3,0x

3,5xPFN PFN / EBITDA

20

(*) Not Consolidated Data

Foundation and Drilling ServicesFoundation and Drilling Services


U.S.A. and Canada11,6%

Latin America17,2%

Africa15,3%

Middle East25,8%

Far East1,0%

Other0,3%

Italy24,8%

Europe (excl. Italy)4,1%

173189

10,5%

9,8%

0

20

40

60

80

100

120

140

160

180

200

1H2006 1H2007

Eur

o m

ln

9,5%

9,7%

9,9%

10,1%

10,3%

10,5%

10,7%

Mar

gin

%Revenues Ebit%

21

Foundation Equipments and Drilling RigsFoundation Equipments and Drilling Rigs

(*) Not Consolidated Data


203

145

11,9%

7,7%

0

50

100

150

200

250

1H2006 1H2007

Eur

o m

ln

0,0%

2,0%

4,0%

6,0%

8,0%

10,0%

12,0%

14,0%

Mar

gin

%

Revenues Ebit%

U.S.A. and Canada

7,9%

Latin America4,6%

Africa17,4%

Middle East13,7%

Far East10,5%

Other1,1%

Italy15,9%

Europe (excl. Italy)29,0%

22

1. Trevi Group


3. Drilling Sector


23

Oil & Gas: Current OutlookOil & Gas: Current Outlook

Source: Morgan Stanley

OIL INVESTMENT TREND NUMBER OF RIGS vs OIL PRICE

USD / Barile

Prezzo del greggio inflation adjusted

-

1.000

2.000

3.000

4.000

5.000

6.000

2007200219971992198719821977

U.S.

Canada

Far East

Middle East

Africa

Europe

LatinAmerica

0

10

20

30

40

50

60

70

80

90

100

Source: Baker Hughes

Rig

s N

umbe

r

US

D/B

arrel

Source: Reuters & Citigroup Investment Research

Oil Price and Investments: a Steady Scenario

Drilling Sector

24

Expected Investments in Oil & Gas 2007: + 17%Expected Investments in Oil & Gas 2007: + 17%

Drilling Sector

COMPANIES'07 vs '06 %

Change1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18

RUSSIASurgutneftegaz 43Lukoil 47Gazprom 41Rosneft 57TNK 16

LATIN AMERICAPetrobras 18Pemex 11

INTERNATIONALPetroChina 10Sinopec 5ONGC 11Woodside Petroleum 62Cnooc 8

SUPER MAJORSRoyal Dutch Shell 10Exxon Mobil 7Total 6Chevron 34ConocoPhillips 5

Source: Lehman Brothers Global Equity Research's Original E&P Spending Survey, Dec 13, 2006

USD bln

SELECTED OIL & GAS COMPANIES' EXPLORATION AND PRODU CTION BUDGETS FOR 2007, ESTIMATES

TREVI Group

Partners

25

HH Series: Competitive AdvantageHH Series: Competitive Advantage

Average increase of 30% of drilling performances

Reduction of 75% of occupied areas

Average reduction of 40% of mobilization and transport costs

Average reduction of 30% of drilling costs

Drastic reduction in the no. of accidents and failures

STRATEGIC POSITIONING ALSO IN CASE OF NEGATIVE

SCENARIO

Drilling Sector

26

31,7

62,4 64,2

1H 2005 1H 2006 1H 2007

Eur

o m

ln

DRILLMEC DRILLMEC OverviewOverview

REVENUES 1H 05 – 1H 07

CAGR 1H 05 – 1H 07 = 42%

DRIVERS THE FUTURE

Drilling Drilling AcademyAcademy

Strategic Partnership Strategic Partnership with clients and with clients and

competitorscompetitors

Outsourcing Outsourcing CapabilitiesCapabilities

Widening of Widening of commercial network commercial network and strengthening and strengthening relationship with relationship with

Majors Majors

Increasing production Increasing production capacity also through capacity also through

delocalizationdelocalization

HH: Technological HH: Technological InnovationInnovation Widening products Widening products

rangerange

Drilling Sector

27

HH Rigs Delivered or OrderedHH Rigs Delivered or Ordered

CIS: 1 rig

Australia : 5 rigs

Iceland : 3 rigs

Egypt : 1 rig

North Africa : 16 rigs

Syria : 1 rig

Argentina : 5 rigs

Venezuela : 5 rigs

Colombia : 1 rig

China : 2 rigs

U.S.A.: 32 rigs (*)

Peru : 3 rigs

UK: 4 rigs Italy : 8 rigs

Germany : 1 rig

Congo : 1 rig

(*) of which 8 already delivered

Drilling Sector

28

PETREVEN PETREVEN –– Rigs EvolutionRigs Evolution

2004

2 rigs

2005

4 rigs

2006

8 rigs

ARGENTINA

5 rigs HH100

-Petrobras (2)

-Chevron Texaco (1)

-Repsol YPF (2)

VENEZUELA

1 rig HH300

Petrobras

COLOMBIA

1 rig HH100

Petrobras

PERU

2 rig HH100

Petrobras

Drilling Sector

1H 2007

9 rigs

29

7,0

11,3

19,2

1H 2005 1H 2006 1H 2007

Eur

o m

ln

PETREVEN PETREVEN OverviewOverview

DRIVERS THE FUTURE

Preferential access to HH Preferential access to HH series technology series technology

Historical strong Historical strong presence in Latin presence in Latin

AmericaAmerica

Constant growth with Constant growth with ““ acquisitionacquisition ”” of new rigsof new rigs

Development of Development of commercial and commercial and

technological technological partnerships partnerships

High operating and High operating and safety standardssafety standards

Further development of Further development of know how know how

(especially with regard to (especially with regard to Hydraulic Rigs)Hydraulic Rigs)

Drilling Sector


CAGR 1H 05 – 1H 07 = 65%

30

1. Trevi Group


3. Drilling Sector


31

TREVI: The TREVI: The TechnologicalTechnological PartnerPartner

Foundation Sector

GROUND ZERO GROUND ZERO -- USAUSA DIAVIK DIAVIK -- CANADACANADA

ARAPUNI DAM ARAPUNI DAM -- NEW ZEALANDNEW ZEALANDBAMIYAN BAMIYAN -- AFGHANISTANAFGHANISTAN

32

TREVI TREVI –– The The TechnologicalTechnological Partner: Partner: ArapuniArapuni DamDam

Source: Contractor, April 2007

Foundation Sector

Trevi Group received the ENVIRONMENTAL EXCELLENCE AWARD 2007 from

the New Zealand Contractors’ Federation

33

TREVI TREVI –– The The TechnologicalTechnological Partner: Partner: GroundGround ZeroZero

Foundation Sector

1111thth SEPTEMBER 2007SEPTEMBER 2007

Conclusion of the Conclusion of the foundation works within foundation works within

scheduled time and scheduled time and projects specificationsprojects specifications

34

““ DubaiDubai ……WhereWhere the Future the Future BeginsBegins ””

Foundation Sector

35

122,0

156,7 162,0

1H 2005 1H 2006 1H 2007

Eur

o m

ln

TREVI TREVI OverviewOverview

DRIVERS THE FUTURE

Strengthening of Strengthening of market leadership in market leadership in

existing geographical existing geographical areasareas

Focus on Focus on ““ bigbig ””infrastructural projectsinfrastructural projects

Selective growth in Selective growth in new geographical new geographical

areasareas

Looking for new Looking for new market niches to market niches to

addressaddress

Global growth of Global growth of infrastructural infrastructural expenditures expenditures

Focusing on project Focusing on project with strong with strong

technological technological challengeschallenges

((General Specialty General Specialty ContractorContractor))

Focusing on maritime Focusing on maritime projects projects

Foundation Sector


CAGR 1H 05 – 1H 07 = 15%

36

Soilmec: Points of StrengthSoilmec: Points of Strength

THE PEOPLETHE PEOPLE THINKING AHEAD THINKING AHEAD ((to open up new horizons to open up new horizons ))

TECHNOLOGICAL INNOVATIONTECHNOLOGICAL INNOVATIONGLOBAL PRESENCEGLOBAL PRESENCE

Foundation Sector

37

Soilmec: New ProductsSoilmec: New Products

Foundation Sector

TIGER 10 Hydromill

Widening of the product range in

the high tonssegment

SR 90

� High Hydraulic

Power� High SpeedRotary

38

57,7

83,7

133,2

1H 2005 1H 2006 1H 2007

Eur

o m

ln

Soilmec Soilmec OverviewOverview

DRIVERS THE FUTURE

Renewal of existing Renewal of existing products line and products line and

widening of the rangewidening of the range

Outsourcing Outsourcing Capabilities Capabilities

(# of equipments (# of equipments ’’0404--’’06 = + 120%)06 = + 120%)

Increasing production Increasing production capacity in Italycapacity in Italy

Launching of new Launching of new products and products and

addressing new addressing new market nichesmarket niches

Global growth of Global growth of infrastructural infrastructural expenditures expenditures

Strengthening of Strengthening of market share in the market share in the

existing markets existing markets

Foundation Sector


CAGR 1H 05 – 1H 07 = 52%

2007 first half results - trevifin.com · rct s.r.l. (milano) hong kong trevi construction...

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