TREVI - Finanziaria Industriale S.p.A. · would have been even lower but this failed to materialise...

TREVI - Finanziaria Industriale S.p.A.

Interim Management Report

Third Quarter 2013

TREVI – Finanziaria Industriale S.p.A. Registered office Cesena (FC): Via Larga, 201 - Italy

Share capital: Euro 35,097,150 fully paid-up Business Register Forlì – Cesena Chamber of Commerce no. 201,271

Tax code, VAT no. and Registration no. of the Forlì – Cesena Chamber of Commerce: 01547370401 Website: www.trevifin.com

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CONTENTS

Page 1 Key Financial Data 4 2 Management Report for the Quarter 5

Description and business of the Group Accounting standards and valuation criteria Third quarter performance Comments on key data from the Statement of Financial Position Comments on the Income Statement Significant events subsequent to the end of the reporting period

3 Summary Group Consolidated Financial Statements 13

Consolidated Income Statement Consolidated Statement of Financial Position Consolidated Statement of Comprehensive Income Consolidated Statement of Changes in Equity Consolidated Statement of Cash Flows

Appendices

The Interim Management Report has not been audited.

3

BOARD OF DIRECTORS Chairman

Davide Trevisani Managing Directors

Gianluigi Trevisani Cesare Trevisani Stefano Trevisani

Directors Guglielmo Antonio Claudio Moscato Cristina Finocchi Mahne Monica Mondardini Riccardo Pinza Cristiano Schena

Board of Statutory Auditors: Standing Statutory Auditors

Adolfo Leonardi (Chairman) Roberta De Simone Giancarlo Poletti

Supplementary Auditors Silvia Caporali Stefano Leardini

Committees for Control and Risks, Remuneration, Related-Party

Riccardo Pinza (Chairman) Cristina Finocchi Mahne Cristiano Schena

Appointments Committee The responsibility of the entire Board of Directors under the direction of the Chairman Group Chief Financial Officer

Daniele Forti Appointed by the Board of Directors on 14 May 2007 as the Manager responsible for preparing the company accounts

Lead Independent Director Monica Mondardini

Independent Auditors

Reconta Ernst &Young S.p.A. (Appointed on 29 April 2008 with a mandate lasting until the Shareholders’ Meeting called to approve the Financial Statements to 31 December 2016)

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KEY FIGURES (Euro ‘000)

30/09/2013 30/09/2012 (*) change 3Q2013 3Q2012

Value of production 975,463 854,751 14.1% 297,885 246,138

Total revenues 951,911 818,452 16.3% 288,451 233,712

Value added 271,385 235,888 15.0% 81,146 70,400

as % of Total revenues 28.5% 28.8% 28.1% 30.1%

Gross operating profit 100,835 73,731 36.8% 25,283 17,608


Operating profit 55,782 32,088 73.8% 12,366 3,149


Group net profit 12,018 4,945 143.1% 1,072 (7,087)

as % of Total revenues 1.3% 0.6% 0.4% -3.0%

Gross technical investments 54,778 37,926 44.4%

Net invested capital 938,786 914,448 2.7%

Net debt (505,219) (480,030) -5.2%

Total net equity 432,775 433,768 -0.2%

Group net equity 412,010 420,865 -2.1%

Non-controlling interests 20,765 12,903 60.9%

Employees (no.) 7,427 6,256

Order portfolio 838,189 871,450 -3.8%

Earnings per share (Euro) 0.172 0.072

Diluted earnings per share (Euro) 0.172 0.072

Net operating profit/Net invested capital (ROI) (1) 7.92% 4.68%

Net profit/ Net equity (ROE) (1) 3.70% 1.52%

Net operating profit/Total revenues (ROS) 5.86% 3.92%

Net debt/EBITDA (1) 3.76 4.88

EBITDA/Net financial income (costs) 4.95 4.59

Net debt/Total net equity (Net debt/Equity) 1.17 1.11

(*) The 2012 figures have been restated due to the application of IAS 19 revised

(1) The figures at 30 September 2013 and 30 September 2012 are annualised.

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MANAGEMENT REPORT FOR THE QUARTER

Profile and Business of the Group

TREVI - Finanziaria Industriale S.p.A. (hereinafter “the Company”) and the companies it controls (hereinafter

known as “TREVI Group” or “the Group”) is active in the following two sectors:

• Foundation engineering services for civil works and infrastructure projects and oil drilling services

(hereinafter “Special Foundations and Drilling Services Division”);

• Manufacture of equipment for special foundations and drilling rigs for the extraction of hydrocarbons

and water exploration (hereinafter the “Mechanical Engineering Division”).

These business segments are organised within the four main operating companies of the Group:

• Trevi S.p.A., which heads the sector of foundation engineering;

• Petreven S.p.A., active in the drilling sector providing oil drilling services;

• Soilmec S.p.A., which heads the relative Division and manufactures and markets plant and equipment for

foundation engineering;

• Drillmec S.p.A., which produces and sells drilling equipment for the extraction of hydrocarbons and

water exploration.

TREVI – Finanziaria Industriale S.p.A., controlled by Trevi Holding A.P.S which, in turn, is controlled by IFIT

S.r.l., has been listed on the Milan stock exchange since July 1999.

These financial statements were approved and authorised to be published by the Board of Directors on 14

November 2013.

Information on the business areas in which the Group operates, on related party transactions and on events

subsequent to the end of the third quarter 2013 are given in the Management Report below.

Accounting standards and valuation criteria The Interim Report for the third quarter is prepared on a consolidated basis since the Company is obliged to

prepare consolidated accounts. Pursuant to EC Regulation no. 1606/2002 of 19 July 2002, the Consolidated

Financial Statements of the Group for the third quarter 2013 have been prepared and presented in accordance with

the International Accounting Standards issued by the IASB – International Accounting Standards Board - and

adopted by the European Commission (henceforth singly IAS or IFRS, together IFRS) and according to

SIC/IFRIC interpretive standards and using the same accounting standards, consolidation methods and translation

criteria for items in foreign currencies used to draw up the Financial Statements to 31 December 2012 with some

adjustments necessitated by the peculiarities of a part of the year limited to a period of nine months.

The data are not normally significantly influenced by estimates calculated differently from those used in the

preparation of the consolidated annual and half-year financial statements.

The income tax charge is the best estimate of the weighted average expected tax charge for the full financial year.

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The Interim Report for the Third Quarter has not been audited.

The area of consolidation at 30 September 2013 has changed compared to the area of consolidation at 31

December 2012 as follows:

• OJSC Seismotekhnika, a Belarusian company, 51% controlled by Drillmec S.p.A., has been consolidated

following the acquisition of a further 32% in the company that was added to the 19% of the company

already held by the Group at 31 December 2012.

• Foundation Construction Ltd, a Nigerian company, was constituted; it is 80.32% controlled by Trevi

Contractors B.V.

• Trevi Australia Pty was constituted with a registered office in Australia; it is 100% owned by Trevi

Construction Hong Kong Ltd.

• Immobiliare SIAB S.r.l., with its registered office in Italy, was acquired and is 100% owned by TREVI -

Finanziaria Industriale S.p.A.

Performance in the first nine months of the financial year

In the first nine months of the current financial year, TREVI Group had a welcome increase in sales of goods and

services (+16.3%). Total consolidated revenues rose from Euro 818.5 million in the first nine months of 2012 to

Euro 951.9 million in the first nine months of the current financial year.

Total revenues in the Special Foundations and Drilling Services segment increased 11.5% from Euro 401.92

million to Euro 448.27 million; the gross operating profit increased by Euro 12.2 million from Euro 60.49 million

to Euro 72.67 million; the operating result rose by Euro 10 million from Euro 29.84 million to Euro 39.75 million.

Net debt was approximately Euro 143.2 million, a figure that is sustainable given the net equity of this segment of

approximately Euro 255 million and of the gross operating profit described above. These strong results are due to

a strong international presence: Trevi and Petreven have forty-eight business units in twenty-five different

countries worldwide. It limited the negative effects of the drop in business and margins suffered once again by

Trevi in the domestic market in the third quarter.

Total revenues in the Mechanical Engineering segment rose 22% from Euro 428.69 million to Euro 523.12

million; the gross operating profit increased from Euro12.48 million to Euro 30.13 million; the operating result

rose from Euro 1.6 million to Euro 17.98 million. Net debt at 30 September 2012 in this segment was Euro 354.2

million and at 30 September 2013 had fallen to Euro 345.78 million. There was a very real hope that net debt

would have been even lower but this failed to materialise due to a postponement in the delivery of some drilling

plant.

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The breakdown of revenues by quarter is shown in the following chart:

The value of production rose from Euro 854.8 million to Euro 975.5 million, also due to a Euro 12.1 million

increase in fixed assets for internal use: these were drilling plant and special foundation equipment destined for

use by the Group service companies and costs sustained for the development of new products and new working

techniques; to these must be added a Euro 11.5 million increase in inventories of finished products to be sold.

The value added went from Euro 235.9 million to Euro 271.4 million and was 28.5% of total revenues.

TREVI GROUP

Quarterly breakdown to 30 September 2013 (Euro ‘000)

1Q 2013 2Q 2013 3Q 2013 30/09/2013

TOTAL REVENUES 299,662 363,799 288,451 951,911

Changes in inventories of finished and semi-finished products 7,214 812 3,439 11,466

Increase in fixed assets for internal use 2,458 3,633 5,995 12,086

VALUE OF PRODUCTION 309,334 368,244 297,885 975,463

Raw materials and external services 214,645 264,598 212,709 691,952

Other operating costs 6,333 1,763 4,030 12,126

VALUE ADDED 88,356 101,883 81,146 271,385

Personnel expenses 55,631 59,055 55,863 170,550

GROSS OPERATING PROFIT 32,724 42,828 25,283 100,835

% on total revenues 10.9% 11.8% 8.8% 10.6%

Depreciation 13,183 12,570 13,339 39,092

Provisions and write-downs 2,139 4,245 (422) 5,961

OPERATING PROFIT 17,403 26,013 12,366 55,782


The gross operating profit for the first nine months of the year was Euro 100.8 million, 10.6% of revenues; in the

same period of the preceding financial year it was Euro 73.7 million, 9% of revenues. After depreciation of Euro

39.1 million and risk provisions of Euro 5.9 million, the operating profit was Euro 55.8 million (5.9% of total

revenues). At 30 September 2012, the operating profit was Euro 32.1 million (3.9% of total revenues). Net

financial costs of Euro 20.4 million showed an increase of Euro 4.3 million compared to the figure at 30

September 2012 (Euro 16 million) due to the higher interest rates applied by financial institutions; the negative

impact from net exchange rate differences was Euro10 million due not only to the weakness of the dollar but also

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to the unexpected and swift devaluation of the currencies of various emerging markets following the

announcement by the FED that there would be a slowdown in quantitative easing.

The pre-tax profit was Euro 25.3 million whilst the profit net of taxes and non-controlling interests was Euro 12

million.

The order portfolio at 30 September 2013 was about Euro 838.2 million (-3.8% compared to the figure at 30

September 2012). There was a noteworthy increase in the order portfolio of Soilmec and this has given rise to

expectations of a good performance in the fourth quarter of the current financial year.

Key data from the Statement of Financial Position

Net invested capital was Euro 938.8 million, an increase of Euro 24.3 million compared to the figure at 30

September 2012. Gross investments in tangible fixed assets for the period were approximately Euro 54.8 million

(Euro 37.9 million at 30 September 2012), and were mainly for machinery and equipment for ongoing contracts

or for those begun during the quarter; this item also increased due to the corporate acquisitions made in the

current financial year, in particular those in East Europe and West Africa.

At 30 September 2013, inventories totalled Euro 554.9 million (a decrease of approximately Euro 43.3 million

compared to the figure at 30 June 2013). Compared to the figure at 30 September 2012, inventories rose by Euro

75.7 million.

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The weakness in the US dollar caused a reduction of approximately Euro 10 million in the translation reserve.

Total net debt of Euro 505 million rose by Euro 25.2 million compared to the figure at 30 September 2012 (Euro

480 million) due to an increase in working capital. At 30 September 2013, current debt had decreased by

approximately Euro 6.3 million compared to the figure at the same date of the previous financial year and non-

current debt had increased by Euro 31.6 million. At 30 September 2013, the key financial indicator of Net Debt

/Equity was 1.17x (1.11x at 30 September 2012); Net Debt/Ebitda was 3.76x at 30 September 2013 (4.88x at 30

September 2012); the Interest Cover Ratio was 4.95x (4.59x at 30 September 2012). The Group has sufficient

unutilised credit lines to fund its future undertakings.

Key Income Statement data in the third quarter

Total revenues were Euro 288.5 million in the third quarter of 2013 compared to Euro 233.7 million in the same

quarter of the preceding financial year (+23.4%). The gross operating profit was Euro 25.3 million, an 8.8%

margin on revenues; in the third quarter of 2012, it was Euro 17.6 million, a margin of 7.5%.

After depreciation and risk provisions totalling Euro 12.9 million, the operating profit was Euro 12.4 million

(4.3% of total revenues); in the third quarter of 2012, it was Euro 3.1 million (1.3% of total revenues).

Net financial expenses were Euro 7.2 million (Euro 6.3 million in the third quarter of 2012) and net foreign

exchange rate losses were Euro 3.4 million, mainly reflecting the depreciation of the US dollar against the Euro

and of those currencies linked to the dollar.

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Geographical breakdown of revenues

Total revenues were Euro 951.911 million compared to Euro 818.452 million at 30 September 2012, an increase

of Euro 133.5 million (+16.3%).

The Group operates in various sectors and in different geographical areas.

The breakdown of revenues from sales and services and other revenues was as follows:

(Euro ‘000)

Geographic area 30/09/2013 % 30/09/2012 % change

Italy 58,892 6.2% 80,044 9.8% (21,152) -26.4%

Europe (ex-Italy) 170,586 17.9% 110,586 13.5% 60,000 54.3%

USA & Canada 79,489 8.4% 134,114 16.4% (54,625) -40.7%

Latin America 263,027 27.6% 197,507 24.1% 65,520 33.2%

Africa 106,536 11.2% 84,327 10.3% 22,209 26.3%

Middle East & Asia 217,584 22.9% 150,544 18.4% 67,040 44.5%

Far East & Rest of the World 55,797 5.9% 61,330 7.5% (5,533) -9.0%

TOTAL REVENUES 951,911 100% 818,452 100% 133,459 16.3%

Compared to the figures at 30 September 2012, there was an increase in revenues from the Middle East and Asia

due primarily to the activities of the Mechanical Engineering and Special Foundations divisions.

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The decline in sales in the USA compared to the same period of the previous financial year was mainly due to the

increase in exports of drilling plant and machinery from the US to Latin American countries.

The increase in revenues in Africa was due to revenues generated from contracts won by the Special Foundations

segment in West Africa and the Maghreb region.

The Mechanical Engineering companies performed well in Latin America whilst those in the Special

Foundations and Drilling Sector had results in line with those of the same period of the previous financial year.

The figure for this geographical area also includes the economic benefits from operations in Venezuela that come

from the translation of figures originally in currencies other than the Euro and used by clients to meet their

contractual obligations.

In Europe there was an increase in revenues due to the special foundations business in Northern Europe, the

Mechanical Engineering sector in East Europe, and to the contribution of the newly acquired company,

Seismotekhnika, in Belarus.

In the Special Foundations Division, the subsidiary Trevi Foundation Philippines showed a marked improvement

compared to the same quarter of the previous financial year.

Breakdown by sector

The breakdown of revenues by the main Group sectors at 30 September 2013 was as follows:

(Euro ‘000) 30/09/2013 % 30/09/2012 % change % change

Special foundations services 358,844 38% 331,369 40% 27,475 8.3%

Drilling services 92,078 10% 73,916 9% 18,162 24.6%

Interdivisional adjustments and eliminations (2,652) (3,367) 715

Sub-Total Special Foundations and Drilling Services

Division 448,270 47% 401,918 49% 46,352 11.5%

Machinery for special foundations 148,200 16% 171,032 21% (22,832) -13.3%

Oil, gas and water drilling machinery 375,363 39% 259,205 32% 116,159 44.8%

Interdivisional adjustments and eliminations (443) (1,546) 1,103

Sub-Total Mechanical Engineering Division 523,120 55% 428,690 52% 94,430 22.0%

Parent Company 10,622 10,150 472 4.6%

Interdivisional eliminations with the Parent Company (30,101) (22,307) (7,795)

TREVI GROUP 951,911 100% 818,452 100% 133,459 16.3%

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CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

TREVI GROUP CONSOLIDATED INCOME STATEMENT (Euro ‘000)

3Q 2013 3Q 2012

(*)

01/01/2013 to

30/09/2013

01/01/2012 to

30/09/2012 (*)

change %

TOTAL REVENUES 288,451 233,712 951,911 818,452 133,459 16.3%

Change in inventories of finished and semi-finished products 3,439 6,963 11,466 19,698 (8,232)

Increase in fixed assets for internal use 5,995 5,464 12,086 16,600 (4,514)

VALUE OF PRODUCTION 297,885 246,138 975,463 854,751 120,712 14.1%

Raw materials and external services 212,709 172,522 691,952 608,650 83,303

Other operating expenses 4,030 3,215 12,126 10,213 1,914

VALUE ADDED 81,146 70,400 271,385 235,888 35,496 15%

Personnel expenses 55,863 52,793 170,550 162,157 8,393

GROSS OPERATING PROFIT 25,283 17,608 100,835 73,731 27,103 36.8%


Depreciation 13,339 13,042 39,092 36,118 2,974

Provisions and write-downs (422) 1,417 5,961 5,525 436

OPERATING PROFIT 12,366 3,149 55,782 32,088 23,693 73.8%


Financial income / (expenses) (7,157) (6,347) (20,364) (16,048) (4,316)

Exchange rate gains / (losses) (3,381) (3,160) (9,951) (359) (9,592)

Other revenues / (costs) 0 (152) 0 (152)

PRE-TAX PROFIT 1,828 (6,359) 25,315 15,680 9,635 61.4%

Taxes 1,096 41 11,090 10,089 1,001

Non-controlling interests (340) 688 2,207 647 1,560

NET PROFIT ATTRIBUTABLE TO THE GROUP 1,072 (7,087) 12,018 4,945 7,074 143%

% on total revenues 0.4% -3.0% 1.3% 0.6%

Tax rate 43.8% 64.3%

(*) The 2012 figures have been restated due to the application of IAS19 revised

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TREVI GROUP CONSOLIDATED STATEMENT OF FINANCIAL POSITION (Euro ‘000)

31/12/2012 30/09/2013 30/09/2012 change

A) Fixed assets

339,471 - Tangible fixed assets 346,328 338,532 7,797

28,025 - Intangible fixed assets 31,175 25,576 5,598

8,479 - Financial fixed assets 6,922 10,181 (3,260)

375,974 384,425 374,290 10,135

B) Net working capital

493,317 - Inventories 554,891 479,202 75,689

345,840 - Trade receivables 444,571 343,734 100,837

(209,701) - Trade payables (-) (313,792) (194,065) (119,727)

(153,221) - Pre-payments (-) (148,194) (80,319) (67,875)

12,380 - Other assets (liabilities) 37,926 11,974 25,951

488,615 575,401 560,526 14,875

864,590 C) Invested capital less net working capital (A+B) 959,826 934,816 25,010

(19,335) D) Post-employment benefits (-) (21,040) (20,367) (672)

845,255 E) NET INVESTED CAPITAL (C+D) 938,785 914,448 24,337

Financed by:

419,339 F) Group net equity 412,010 420,865 (8,854)

12,549 G) Equity of non-controlling interests 20,765 12,903 7,862

413,367 H) Net debt 506,010 480,681 25,329

845,255 I) TOTAL SOURCES OF FINANCING (F+G+H) 938,785 914,448 24,337

TREVI GROUP

TOTAL CONSOLIDATED NET FINANCIAL POSITION

(Euro ‘000)

31/12/2012 30/09/2013 30/09/2012 change

(332,854) Current financing (376,176) (353,187) (22,989)

(28,477) Payables for other current financing (32,096) (31,693) (404)

30 Current financial derivatives (104) (427) 323

189,925 Cash and cash equivalents 166,610 137,230 29,380

(171,376) Total current net financial position (241,766) (248,077) 6,310

(188,888) Non-current financing (215,537) (178,152) (37,385)

(50,684) Payables for other non-current financing (47,069) (52,186) 5,117

(2,418) Non-current financial derivatives (1,637) (2,266) 629

(241,991) Total non-current net financial position (264,243) (232,604) (31,639)

(413,367) Net debt (506,010) (480,681) (25,329)

519 Treasury stock 790 651 140

(412,848) Total net debt (505,219) (480,030) (25,189)

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CONSOLIDATED STATEMENT OF FINANCIAL POSITION (Euro ‘000)

ASSETS 30/09/2013 31/12/2012

Non-current assets

Tangible fixed assets 346,328 339,471

Intangible fixed assets 31,175 28,025

Investments 2,511 4,123

Tax receivables for pre-paid taxes 26,224 22,475

Trade receivables and other non-current assets 25,831 20,361

Total non-current assets 432,069 414,455

Current assets

Inventories 352,377 352,322

Trade receivables and other current assets 599,405 461,743

Tax receivables for current taxes 37,835 43,580

Current financial derivatives 75 76

Cash and cash equivalents 166,610 189,925

Total current assets 1,156,302 1,047,645

TOTAL ASSETS 1,588,372 1,462,100

TOTAL NET SHAREHOLDERS’ FUNDS AND LIABILITIES 30/09 /2013 31/12/2012

Net shareholders’ funds

Share capital 35,033 35,033

Other reserves 97,472 106,196

Accumulated profit including the result for the period 279,506 278,111

Group net equity 412,010 419,339

Non-controlling interests 20,765 12,549

TOTAL NET SHAREHOLDERS’ FUNDS 432,775 431,888

Non-current liabilities

Non-current financing 262,606 239,572

Non-current financial derivatives 1,637 2,418

Tax payables for deferred taxes 29,594 30,362

Post-employment benefits 21,040 19,335

Non-current provisions 10,291 11,494

Other non-current liabilities 64 22

Total non-current liabilities 325,232 303,202

Current liabilities

Trade payables and other current liabilities 398,271 335,615

Tax payables for current taxes 23,604 29,979

Current financing 408,273 361,331

Current provisions 37 38

Current financial derivatives 179 45

Total current liabilities 830,364 727,009

TOTAL LIABILITIES 1,155,596 1,030,211

TOTAL NET SHAREHOLDERS’ FUNDS AND LIABILITIES 1,588 ,372 1,462,100

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Statement of reconciliation of the reclassified Statement of Financial Position and the

Consolidated Statement of Financial Position in accordance with IAS 11:

(Euro ‘000)

Net working capital 30/09/2013 IAS 11 30/09/2013

- Inventories 554,891 (202,514) 352,377

- Trade receivables 444,571 95,269 539,840

- Trade payables (-) (313,792) (313,792)

- Pre-payments (-) (148,194) 104,550 (43,645)

- Other assets (liabilities) 37,926 2,695 40,621

Total 575,401 0 575,401

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (Euro ‘000)

30/09/2013 30/09/2012 (*)

Profit/(loss) for the period 14,225 5,592

Other items of comprehensive income subsequently recycled to profit/(loss) for the period

Cash flow hedge reserve 775 (1,170)

Tax (248) 391

Change in the cash flow hedge reserve 527 (779)

Translation reserve (10,041) 126

Total of other items of comprehensive income subsequently recycled to profit/(loss) for the

period net of tax (9,514) (653)

Other items of comprehensive income that will not subsequently be recycled profit/(loss)

for the period:

Actuarial gains/ (losses) 77 108

Tax (32) (23)

Total of other items of comprehensive income that will not subsequently be recycled to

profit/(loss) for the period net of tax 45 85

Comprehensive profit net of tax 4,756 5,023

Parent Company shareholders 3,398 4,237

Non-controlling interests 1,358 787


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CONSOLIDATED STATEMENT OF CHANGES IN NET EQUITY (Euro ‘000)

Share Other Accumu- Group Share of Total

Description capital reserves lated Total Non-controlling Net

profits interests Equity

Balance at 01/01/12 35,040 110,301 280,471 425,812 12,076 437,888

Net profit for the period 4,945 4,944 647 5,591

Actuarial gains/(losses) 85 85 85

Other comprehensive profit/ (loss) (793) (793) 140 (653)

Total comprehensive profit/ (loss) 0 (708) 4,945 4,236 787 5,023

Allocation of 2011 net profit and dividend distribution 4,280 (13,405) (9,125) (321) (9,446)

Change in the area of consolidation 0 361 361

Sale /(purchase) of treasury stock (7) (50) (57) (57)

Balance at 30/09/12 (*) 35,033 113,823 272,010 420,866 12,903 433,769

Balance at 01/01/13 35,033 106,195 278,111 419,338 12,549 431,887

Net profit for the period 12,018 12,017 2,207 14,224

Actuarial gains/(losses) 45 45 45

Other comprehensive profit/ (loss) (8,665) (8,665) (849) (9,514)

Total comprehensive profit/ (loss) 0 (8,620) 12,018 3,397 1,358 4,755

Allocation of 2012 net profit and dividend

distribution

(103) (9,023) (9,125) (444) (9,569)

Change in the area of consolidation (1,599) (1,599) 7,302 5,702

Balance at 30/09/13 35,033 97,472 279,506 412,010 20,765 432,775


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CONSOLIDATED STATEMENT OF CASH FLOWS (Euro ‘000)

30/09/2013 30/09/2012 (*)

Net income for the period attributable to the Parent Company and non-controlling interests 14,225 5,592

Income taxes 11,090 10,089

Pre-tax profit 25,315 15,680

Depreciation 39,092 36,118

Financial (revenue)/ expenses 20,364 16,048

Movements in risk provisions and provisions for post-employment benefits 502 4,479

(Profit)/ loss from associates 152 0

(Gains) / losses from sale or write-downs of fixed assets 248 1,175

(A) Cash Flow from Operations before Changes in Working Capital 85,672 73,501

(Increase)/Decrease in trade receivables (128,193) 81,119

(Increase)/Decrease in inventories (53) 4,985

(Increase)/Decrease in other assets (12,943) 7,828

Increase/(Decrease) in trade payables 104,092 (144,755)

Increase/(Decrease) in other payables (49,783) (17,743)

(B) Changes in working capital (86,881) (68,567)

(C) Interest payable and other payables (20,364) (16,048)

(D) Cash out for taxes (9,843) (13,018)

(E) Cash Flow generated (absorbed) by operations (A+B+C+D) (31,415) (24,132)

Investments

Operating (investments) (63,326) (47,402)

Operating divestments 8,019 7,006

Net change in financial assets 1,461 (1,177)

(F) Cash Flow generated (absorbed) by investments (53,846) (41,573)

Financing activities

Increase/(Decrease) in share capital for purchase of own shares (0) (7)

Other changes including those in non-controlling interests 2,190 (1,045)

Increase/(Decrease) in debt, financing and derivative instruments 65,251 35,048

Increase/(Decrease) in leasing liabilities 5 9,708

Dividend distribution to Parent Company shareholders and non-controlling interests (9,569) (9,446)

(G) Cash Flow generated (absorbed) by investments 57,876 34,259

(H) Net increase/(decrease) in cash flow (E+F+G) (27,385) (31,447)

Opening Balance of Net Liquid Funds 183,218 161,648

Net Changes in Liquid Funds (27,385) (31,447)

Closing Balance of Net Liquid Funds 155,832 130,201

Description 30/09/2013 30/09/2012

Cash and cash equivalents 166,610 137,230

Bank overdrafts (10,778) (7,029)

Cash and cash equivalents net of bank overdrafts 155,832 130,201


19

SPECIAL FOUNDATIONS AND DRILLING SERVICES DIVISION (**) SUMMARY INCOME STATEMENT (Euro ‘000)

30/09/2013 30/09/2012 (*) change % change

TOTAL REVENUES 448,270 401,918 46,352 11.5%

Changes in inventories of work in progress, semi-finished and finished goods 874 441 433

Increase in fixed assets for internal use 4,894 7,925 (3,031)

VALUE OF PRODUCTION 454,038 410,284 43,754 10.7%

Raw materials and external services 255,621 228,269 27,353 12.0%

Other operating expenses 9,706 7,901 1,805

VALUE ADDED 188,711 174,114 14,596 8.4%

% on Total revenues 42.1% 43.3%

Personnel expenses 116,046 113,628 2,417

GROSS OPERATING PROFIT 72,665 60,486 12,179 20.1%


Depreciation 28,190 26,149 2,041

Provisions and write-downs 4,727 4,497 230

OPERATING RESULT 39,749 29,840 9,909 33.2%


MECHANICAL ENGINEERING DIVISION (**) SUMMARY INCOME STATEMENT (Euro ‘000)

30/09/2013 30/09/2012 (*) change % change

TOTAL REVENUES 523,120 428,690 94,430 22.0%

Changes in inventories of work in progress, semi-finished and finished goods 10,593 19,256 (8,663)

Increase in fixed assets for internal use 1,382 1,769 (387)

VALUE OF PRODUCTION 535,095 449,715 85,379 19.0%

Raw materials and external services 452,514 390,900 61,614 15.8%

Other operating expenses 2,024 1,828 196

VALUE ADDED 80,556 56,987 23,570 41.4%


Personnel expenses 50,429 44,505 5,924

GROSS OPERATING PROFIT 30,128 12,482 17,646 141.4%


Depreciation 10,867 9,781 1,085

Provisions and write-downs 1,280 1,101 179

OPERATING RESULT 17,981 1,600 16,382 1024.1%


(*)The 2012 figures have been restated to reflect the application of IAS19 revised

(**)The individual Income Statements above have not been adjusted for inter-divisional transactions; they do not include the Parent Company or Trevi

Energy S.p.A.

20

SPECIAL FOUNDATIONS AND DRILLING SERVICES DIVISION SUMMARY STATEMENT OF FINANCIAL POSITION (Euro ‘000)

30/09/2013 31/12/2012 change

A) Fixed assets 261,535 265,199 (3,664)


- Inventories 125,524 107,454 18,070

- Trade receivables 196,293 206,107 (9,814)

- Trade payables (-) (127,105) (119,342) (7,763)

- Pre-payments (-) (39,793) (54,286) 14,493

- Other assets (liabilities) 4,405 (10,595) 15,000

159,325 129,338 29,987

C) Invested capital less liabilities for the period (A+B) 420,860 394,537 26,323

D) Post-employment benefits (-) (14,813) (13,240) (1,573)

E) NET INVESTED CAPITAL (C+D) 406,047 381,297 24,750

Financed by:

F) Group net equity 255,148 247,328 7,820

G) Non-controlling interests 7,705 7,127 578

H) Net debt 143,194 126,841 16,352

I) TOTAL SOURCES OF FINANCING (F+G+H) 406,047 381,297 24,750

MECHANICAL ENGINEERING DIVISION SUMMARY STATEMENT OF FINANCIAL POSITION

(Euro ‘000) 30/09/2013 31/12/2012 change

A) Fixed assets 105,711 96,113 9,598


- Inventories 429,706 385,862 43,845

- Trade receivables 280,752 177,691 103,060

- Trade payables (-) (227,023) (129,427) (97,596)

- Pre-payments (-) (104,644) (96,271) (8,373)

- Other assets (liabilities) 18,190 5,568 12,622

396,981 343,424 53,558

C) Invested capital less liabilities for the period (A+B) 502,692 439,537 63,155

D) Post-employment benefits (-) (5,095) (5,039) (56)

E) NET INVESTED CAPITAL (C+D) 497,597 434,498 63,099

Financed by:

F) Group net equity 140,143 146,528 (6,385)

G) Non-controlling interests 11,675 4,088 7,587

H) Net debt 345,779 283,882 61,897

I) TOTAL SOURCES OF FINANCING (F+G+H) 497,597 434,498 63,099

Company Name(Nation)

Ownership

Third Parties

Company Name(Nation)

x%

x%

Trevi SpA Drillmec SpATrevi Energy Soilmec SpAPetreven SpA

TREVI-Finanziaria Industriale

S.p.A.

SoilmecINT BV

(The Nederlands)

Soilmec doBrasil SA

(Brasil)

PilotesTrevi S.A.(Argentina)

Petreven U.T.E.(Argentina)

Petreven CA(Venezuela)

Petreven S.A.(Argentina)

Perforazioni Trevi Energie B.V.

(The Nederlands)

Petreven do Brasil(Brazil)

Petreven Chile SpA(Chile)

Petreven Perù SA

(Perù)

SoilmecWuJiang Co Ltd

(China)

PSM S.r.L.(Italy)

Drillmec INC(U.S.A.)

Gomec S.r.L.(Italy)

Drillmec OOC(Russia)

OJSCSeimotekhnika

(Belarus)

IDT FZCO(U.A.E.)

SoilmecHong Kong LTD

(Hong Kong)

SoilmecFoundation

Equipment LTD(India)

SoilmecInvestments

Pty Ltd(Australia)

SoilmecAustraliaPty Ltd(Australia)

SoilmecJapan(Japan)

SoilmecUK LTD

(U.K.)

SoilmecDeutschland

Gmbh(Germany)

SoilmecNorth America

(U.S.A.)

SoilmecFrance SAS

(France)

Watson INC(U.S.A.)

TreviSpezialtiefbau

Gmbh(Germany)

Trevi Algeria(Algeria)

Trevi Contractors BV

(The Nederlands)

RCT S.r.L.(Italy)

Trevi OrascomSkikda(U.A.E.)

TreviCimentaciones CA

(Venezuela)

TreviGalante SA

(República de Panamá)

GalanteCimentaciones SA

(Perù)

TreviInsaat Ve M.

(Turckey)

Foundation Construction Ltd.

(Nigeria)

Trevi Foundations Denmark AS

(Denmark)

SwissboringOverseasPiling CO(Switzerland)

Swissboring& CO LLC

(Oman)

SwissboringLLC Qatar

(Qatar)

Hercules TreviFound. AB

(Sweden)

TreviAsasat(Libya)

Trevi AustriaGesMbh(Austria)

Arabian SoilContractor(Saudi Arabia)

Trevi Drilling Services(Saudi Arabia)

TreviPanamericana SA(República de Panamá)

Trevi Foundations Kuwait(Kuwait)

GalanteFound. S.A.

(República de Panamá)

Galante S.A.(Colombia)

TreviConstruction Co LTD

(Hong Kong)

TreviPhilippines INC

(Philippines)

Trevi Australia Pty(Australia)

SwissboringOverseas COLTD Branch

(U.A.E.)

Trevi ICOS Corp(U.S.A.)

TreviFoundation

INC.(Canada)

Trevi ICOS South(U.S.A.)

Trevi ICOSSoletanche J.V.

(U.S.A.)

Profuro LDA(Mozambique)

TreviFoundationNigeria LTD

(Nigeria)

2%30%

10%

1,75%

5%

21,62%

78,38%

50% 90%

99,78% 99,92% 98,25%

70%

93%

SoilmecColombia SAS

(Colombia)

80% 98%

80%

65%

50%

51%

80% 80%

98%51%

51% 38,25% 95%90% 84,07%

94%

57%

60%

80,32%

70%

99,95%

93%

85%69%

50%

99,93%

85%

15%

0,07%

10%

42%

5%1%

7%

1%

Trevi-ITT J.V.(Thailand )

95%

TREVI - Finanziaria Industriale S.p.A. · would have been even lower but this failed to materialise...

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