Post on 05-Jan-2020
Contents and presentation team
1. Overview of TREVIGroup
2. Core business
3. Drilling business area
4. Parks business area
5. Financial overview as at 31st Dec, 1999
6. Strategy
1. Overview of TREVIGroup
2. Core business
3. Drilling business area
4. Parks business area
5. Financial overview as at 31st Dec, 1999
6. Strategic guidelines
Activities
Trevi Division operates in :ground engineeringdrilling oil, gas and water wellsautomated, underground parking garages 71% of 1999 revenues
Soilmec Division designs and manufactures:
ground engineering machinery and equipmentdrilling rigs and accessories 29% of 1999 revenues
TREVIGroup – Highlights
Vertical Integration Research & Development Global Reach
Trevi Division – ground engineering services
Soilmec Division –manufacturing of ground engineering machinery and drilling equipment
Dynamic interaction between the divisions drives continuous improvement and innovation
More than 1,000 projects in over 40 countries, across five continents
Machinery and equipment distributed in more than 80 countries
79% of 1999 consolidated revenues outside Italy
Mobile, hydraulic drilling rigsContinuous Diaphragm WallsPretunnel systemTreviParkDeep Mixing
Leadership in ground engineeringLeadership in ground engineering
• Leading ground engineering company• Strong brand recognition• Leading-edge innovation• Strong operating margins
World Wide Presence
Soilmec S.p.A.Cesena (Italia)
Soilmec S.p.A.Drilling Equipment Division
Piacenza (Italia)Soilmec S.p.A.
Representative OfficeBeijing (Cina)
Soilmec Branham Inc.(USA)
Lianyungang SoilmecMachinery Co. Ltd.Lianyungang (Cina)
Soilmec Japan Co. Ltd.Tokyo (Giappone)
Soilmec Far East Pte. Ltd.(Singapore)
SMFE Sdn. Bhd.(Malesia)
Soilmec MisrCairo (Egitto)Soilmec Ltd
Peterborough (UK)Soilmec International B.V.
Amsterdam ( Netherlands)
Algeria - Argentina - P.R. ChinaGermany - Egypt - Hong Kong Mozambique -
Nigeria - Oman - Qatar Philippines - Portugal -Singapore - Sweden Thailand - Turkey - U.A.E. -
United Kingdom - United States - Venezuela
Trevi S.p.A.Cesena (Italia)Trevi Icos CorporationBoston (USA)Trevi CimentacionesCaracas (Venezuela)Trevi Foundations NigeriaLagos (Nigeria)Trevi Foundations Philippines Inc (Filippine)Trevi Fundacoes LdaLisbon(Portugal)Pilotes TreviBuenos Aires (Argentina)Trevi Construction Co. Ltd(Hong Kong)Profuro Lda(Mozambico)Petreven C.A.(Venezuela)Cifuven C.A.(Venezuela)Trevi Contractors B.V.Amsterdam- (Netherlands)Trevi Insaat ve M. A.S.Istanbul (Turchia)Swissboring Piling Overseas Corp. LtdAbu Dhabi (Dubai)
Activities – ground engineering
Specialist foundation and ground consolidation works for
infrastructure, civil engineering and building construction projects
Recently developed leading-edge tunnelling technologies for the
construction of new tunnels and widening existing tunnels
Activities – ground engineering machinery
• Design and manufacturing of a broad range of ground engineering machinery and equipment
• Used for piling, micopiling, soil consolidation, diaphragm walls, tunnelling, etc.
• Emphasis on innovative, technologically-advanced products
Activities – drilling rigs
Design and manufacturing of conventional and specialised drilling rigs and rig components for oil, gas and water wellsAlso manufacturers ancillary equipment (masts, derricks, substructures, mud pumps, draw works etc.)Recently developed a mobile, hydraulic drilling rig which significantly reduces drilling costs for shallow and medium-depth wells
Design and manufacturing of conventional and specialised drilling rigs and rig components for oil, gas and water wellsAlso manufacturers ancillary equipment (masts, derricks, substructures, mud pumps, draw works etc.)Recently developed a mobile, hydraulic drilling rig which significantly reduces drilling costs for shallow and medium-depth wells
Activities – contract drillingContract drilling services to the oil, gas and water industries,focused on onshore wells using Soilmec drilling rigs
SaiTre – joint venture with Saipem, Italy’s largest oil services company, offering contract drilling services in Italy and the Mediterranean basin
Contract drilling services to the oil, gas and water industries,focused on onshore wells using Soilmec drilling rigs
SaiTre – joint venture with Saipem, Italy’s largest oil services company, offering contract drilling services in Italy and the Mediterranean basin
Activities – TreviPark
Design and construction of automated, underground parking Design and construction of automated, underground parking garagesgaragesAimed at urban or environmentallyAimed at urban or environmentally--sensitive locations given its sensitive locations given its minimal surface areaminimal surface areaCan be incorporated into the foundations of a buildingCan be incorporated into the foundations of a building
1. Overview of TREVIGroup
2. Core business
3. Drilling business area
4. Parks business area
5. Financial overview as at 31st Dec, 1999
6. Strategic Guidelines
Main projects Projects Places Country Works value to be
completed (Euro mil.)
Building Washington USA 8,5Bridge New York USA 7,6Bridge Massachussetts USA 5,7Building Miami USA 5,7Tunnel Boston USA 5,4Building Cambridge USA 4,1Airport Terminal Boston USA 3,3Channel Boston USA 2,8Harbour Messina Italy 12,2Tunnel T.A.V. Bo-Fi Italy 8,6Power Plant Ravenna Italy 4,2Oil Drilling Oritupano Venezuela 8,3Bridge Bissau Guinea Bissau 6,7Bridge Rosario-Victoria Argentina 5,8Bridge Abidjan Ivory Coast 5,4Dam Gilgel Gibe Ethiopia 3,6Oil Harbour Port Harcourt Nigeria 2,6Underground railway Hong Kong P.R. of China 2,3
Core business(Ground engineering machinery and services)
The net sales pertaining to the core business, services and equipment, have been 235,9 millions euros, that is 92% of the totalnet sales
24% increase compared to last year
91% of the net sales refers to foreign countries. The most importantgeografical area is USA, with a net sales amount of 73,5 millionseuros (equal to 31% of total net sales) and a 38% increase compared to last year
The Group presence in the USA, “covering” as many States as possible, even through new acquisitions, is considered to be
strategically important
Central ArteryCentral Artery / / TunnelTunnel
Chardon to NorthChardon to North Street Street BostonBoston
Millenium Millenium PlacePlace
BostonBoston
1. Overview of TREVIGroup
2. Core business
3. Drilling business area
4. Parks business area
5. Financial overview as at 31st Dec, 1999
6. Strategic Guidelines
Drilling business area
The net sales of the drilling business area amount to 14,8 millionseuros, which is equal to 5,8% of total net sales, 11,7 million euros of which refer to the sale of equipment and the remaining 3,1 to the drilling activity
109% increase compared to last year
The backlog for the year 2000 amounts to 35,1 millions euros (+137%on the total area revenues of the 1999) and 60,4 millions euros contracts are under negotiation
* Contracts with more than 50%of possibilities to be awarded
Drilling activities will strongly increase due to the rising demand and the fall of the production of the existing wellsIn the next years, about 90% of the oil production will be removed from new wells
80%
20%
Depth Depth < 4.000 m< 4.000 m
Depth Depth > 4.000 m> 4.000 m
Industry Outlook
80% 80% of new wells is placed at of new wells is placed at a a depth lower than depth lower than 4.000 m4.000 m
Industry OutlookThe existing fleet is not able to face the increasing demand of oil products
After the recent escalation of oil price, the Oil Companies have planned strong investments
The business cyclic trend requires a particular attention on operating costs reduction
The forecast to mantain the actual oil price level (23-26 US$/bbl) in the next year and the possibility to reduce the operating costs make the exploitation of marginal wells convenient
ADVANCE Rigs - Hydraulic Hoist TypeHH is an automatic hydraulic drilling rig that provides the most ground-breaking answer in the last years to the drilling industry's needs.
HH is the result of the joined efforts of Soilmec DED, as manufacturer, and the Italian Energy Group, E.N.I., through AGIP and SAIPEM, to develop a completely new type of drilling rig to satisfy the “new millenium” needs in the oil and gas research.
HH rigs have obtained the worldwide customer’s recognition to have successfully reached the following main targets:
– Average reduction of the total drilling cost up to 30%;– Average reduction of the mobilization and transport cost up to 40%;– Average improvement of drilling performances up to 30%;– Simplify the drilling operations with special care about HSE of the drilling crew;– Automatization of the drill pipe’s and casing’s handling and tripping operations;– Reduction of the environmental impact by reducing the yard area and by realizing
a truly sound-proof rig.– Suitable for: – Stubbing operation;Deviation, Re-entry; Underbalance Drilling
Drilling EquipmentSoilmec DED propose to the international drilling industry a large variety of complete rig packages.Soilmec DED also manufactures specially designed state-of-art individual taylor made components such as derricks, masts, substructures, automatic hydraulic rigs and other high specialised equipment for worldwide operations and any kind of terrain and weather condition.
The PRODUCT RANGE : • Water Wells• Oil Wells
– MAS series– WORKOVER rigs– DERRICKS and OFFSHORE masts– HYDRAULIC HOIST series
• Pumps• Mud Systems• Handling
Main Advantages
Increased automationDrilling parameters regulated by hydraulic device
Future applicationdrilling rig totally automated
Assembled on 3-axle semitrailer; weight and dimensionde signed for moving without convoy car
Fast rig up / Easy mouvement
Substructure and mast rigged up by hydraulic cylinders
Main AdvantagesG-125 vs. Standard Rig
Hydraulic rig G-125Hydraulic rig G-125MASTMAST
Nr.Nr. ofofLOADSLOADS
PIPEPIPERACKRACK
70 22
NOT NOT INSTALLEDINSTALLED
MOVABLE F/WELLCENTREMOVABLE F/WELLCENTRETO MOUSE HOLETO MOUSE HOLE
TELESCOPIC
TELESCOPIC
TRADITIONALTRADITIONAL
VERTICAL VERTICAL SYSTEMSYSTEM
STANDARD
STANDARD
Standard rig 1000 Hp
TOPTOPDRIVEDRIVE
50 m50 m24 m24 m
Dep
thD
epth
(ft)
(ft)
00
1.0001.000
3.0003.000
4.0004.000
5.0005.000
6.0006.000
2.0002.000
7.0007.000
8.0008.000
DaysDays00 11 22 33 44 55 66 77 99 101088 1111 1313 14141212 1515
“Traditional” Rig
Soilmec Rig
Oritupano Leona - Venezuela Drilling time Vs Depth
1 foot = 30,48 cm
1. Overview of TREVIGroup
2. Core business
3. Drilling business area
4. Parks business area
5. Financial overview as at 31st Dec, 1999
6. Strategic Guidelines
TreviPark
• Cesena - 3 parks delivered in early 1999
• Roma and Torino - 2 parks to be delivered within September 2000
• Padova, Mantova, Torino, Roma - 5 parks works scheduled to start within this year
• Roma e Torino - 4 parks works scheduled to start within the year 2001
ITALYITALY
ABROADABROAD
• Prague - 2 parks works scheduled to start within this year
• Copenhagen - The signature of the contract for 5 parks has been delayed due toprocedural reasons
• Contracts under negotiation: London (2) and Beijing (4)
1. Overview of TREVIGroup
2. Core business
3. Drilling business area
4. Parks business area
5. Financial overview as at 31st Dec, 1999
6. Strategic Guidelines
Turnover
CAGR + 16,9% Year + 23,8%
122
165,9180
199214,8
265,8
020406080
100120140160180200220240260280
1994 1995 1996 1997 1998 1999
(Euro Mil)
Figures for years 1989 to 1994 are unaudited
Revenues
1030507090
110130150170190210230250270290
1996 1997 1998 1999
Italy Rest of EuropeUnited States and Canada Central and South AmericaAfrica Middle EastFar East
CAGR + 15,5%
(Euro Mil)
170,7194,7
210,4
263.0
Year + 25%
Business mix of net sales(Euro Mil)
Business 1999 % 1998 % Var. %
Ground engineering 171,1 66,8% 124,0 62,2% + 39,7%
Ground engineering machinery 64,8 25,3% 67,3 33,8% - 3,8%
Oil, gas & water drilling rigs 11,7 4,6% 6,3 3,2% + 84,6%
Oil drilling activity 3,1 1,2% 0,7 0,4% +421%
Parks 5,3 2,1% 0,7 0,4% + 685%
Total 256,0 100% 199 100% +28,6%
Trevi Division - Net Sales
1996 1996 -- 19991999 1999 1999 -- Geographical SplitGeographical Split
94103,3
125,5
179,5
80
100
120
140
160
180
200
1996 1997 1998 1999
(Euro Mil) CAGR + 24,1%
Year + 43,2%
Italy23,8%
Central & South
America17,2%
USA & Canada32,8%
Africa13,7%
Middle East 5,9%
Far East5,3%
Europe1,3%
Soilmec Division - Net Sales
1996 1996 -- 19991999 1999 1999 -- Geographical SplitGeographical Split
CAGR + 2,2%
Italy13,9%
Central & South
America3,9%
USA & Canada20,9%
Africa11,1%
Middle East
13,5%
Far East11,3%
Europe25,4%
71,7
84,5
73,776,5
50
60
70
80
90
100
1996 1997 1998 1999
(Euro mil)
Year + 3,8%
TREVI Group order backlog
• Total amount of 203,4 Euro Mil
• 84% will be completed in the second half of the year
• Geographical split
1999 % 1998 % 1997 %
Europe 79,4 39,0 78.9 38,3 55.0 36,1
USA and Canada 44,6 22,0 50.8 24,6 52.0 34,1
Central and South America 24,7 12,2 27.5 13,3 12.9 8,4
Africa 23,3 11,4 29.2 14,2 16.6 10,9
Middle East 20,6 10,1 15.9 7,7 5.1 3,3
Far East 10,8 5,3 3.9 1,9 10.8 7,2
Total 203,4 100,0 206.2 100,0 152.4 100,0
EBITDA
EBITDA EBITDA -- EBITDA marginEBITDA margin
(Euro Mil)
28,822,7
17,914,7
11.3%11,4%
8,9% 9,5%
0
5
10
15
20
25
30
1996 1997 1998 19990%2%3%5%6%8%9%11%12%14%
MarginMargin
CAGR + 25.3% Year + 27.2%
EBIT
EBIT EBIT -- EBIT marginEBIT margin
(Euro Mil)
15,914,4
9,58,4
6.2%7,2%
5,0% 5,0%
02468
1012141618
1996 1997 1998 19990%1%2%3%4%5%6%7%8%
MarginMargin
CAGR + 23,6% Year + 10,6%
Net income
Net income Net income -- Net income marginNet income margin
(Euro Mil)
7,1
4,03,3
1,5
2.9%
2,0%
0,9%
1,8%
012345678
1996 1997 1998 19990,0%
1,0%
2,0%
3,0%
4,0%
5,0%
MarginMargin
CAGR + 66,3% Year + 77,9%
Net debt/Net equity
Year - 55,1%
39,3 44,228,1
-10,8
30,0
30,221,3
36,9
1.4x
2.3x
1.6x
0.25x
-25
-5
15
35
55
75
1996 1997 1998 1999
-1x
0x
1x
2x
3x
Short term debtsLong term debts
(Euro Mil)
Net Net FinancialFinancial Position 1999: 26.1 millions of Position 1999: 26.1 millions of euroseuros
Tangible asset investments and R&D Expenses
TangibleTangible assets*assets* R&D R&D ExpensesExpenses
9.1
14.8
22.2
35.9
23.3
33.8
26.9
31.8
0
5
10
15
20
25
30
35
40
1996 1997 1998 1999
(Euro Mil) (Euro Mil)
3,3 3,64,2 4,2
0
1
2
3
4
5
6
1996 1997 1998 1999
Net InvestmentsGross Investments
* Net of Swissboring Overseas Piling Corp. Ltd acquisition
Summary Consolidated Income Statement(Euro Mil)Euro Mil)
For the year ending December 31 For the year ending December 31 19991999 19981998 19971997
Revenues 263.0 210.4 194.8Revenues from sales and services 253.3 190.0 187.9Change in work in progress 2.6 9.1 -Other revenues 7.1 11.3 6.9
Total production costs (247.1) (195.9) (185.3)Change in stocks (1.1) (1.2) -Ammortisation (12.9) (8.3) (8.4)Capitalised costs 3.9 5.6 4.3
Operating income Operating income 15.915.9 14.414.4 9.59.5
Financial and non-recurring charges (3.6) (5.2) (5,1)
Income before taxes Income before taxes 12.312.3 9.2 9.2 4.44.4
Income taxes (5.7) (4.4) (1.6)
Minority interests 0.5 (0.8) 0.5
Net income Net income 7.17.1 4 4 3.33.3
Dividend - 0,015 euro per share
Summary Consolidated Balance Sheet
(Euro Mil)Euro Mil)
As at December 31 As at December 31 19991999 1998 1998 19971997
Current assets 193.5 138.7 137.9PPE 93 64.9 48.1Intangible assets 9 3.5 4.5Non-current financial assets 6.7 6.8 10.3Total assetsTotal assets 302.2302.2 213.9213.9 200.8200.8
Current liabilities 144.6 136.6 126.7Non-current liabilities 52.0 41.3 41.4Minority interest 5.2 5.1 3.9Equity (excl. minorities) 100.4 30.9 28.8Total liabilities and equityTotal liabilities and equity 302.2302.2 213.9213.9 200.8200.8
Total net financial debt 26.1 58.8 74.4Short term -10.8 30.7 44.2Long term 36.9 28.1 30.2
1. Overview of TREVIGroup
2. Core business
3. Drilling business area
4. Parks business area
5. Financial overview as at 31st Dec, 1999
6. Strategic Guidelines