Financial Results - Trevi Fin · SERVICES Sector MECHANICAL Sector Projects for renewable energy...

2012 First Half Results

Ended 30th June 2012

Financial Results

1. TREVI Group

2. 1H 2012 Financial Results

3. Foundation Sector

4. Drilling Sector

5. Appendix

2

Metro Line works in Palermo (ITALY)

• Onshore Drilling

• Long term contracts

• Latin America emerging Player

• Hydraulic Rotary Rigs

• Cranes

• Jet Grouting

• Tunnel Consolidation

• Casing Oscillators

• Extractors

• Drilling Tools

• Other Equipment

• Automatic Rigs (HH Series)

• Land rigs

• Derricks & Offshore

• Mobile Drilling Rigs

• Hydraulic Top Drives

• Triplex Mud Pumps

• Deep Foundations

• Geotechnical Works

• Marine Works

• Tunnel Consolidation

• Automated Car Parks

• Environment

SERVICES Sector

MECHANICAL Sector

Projects for renewable energy

Special foundation services Oil drilling services Oil drilling rigs Special foundation rigs

3

TREVI Group: Business Model

Venezuela

U.S.A.

Mozambique

Nigeria

U.A.E.

Germany Italy

Hong Kong

Argentina

Colombia

Canada

Qatar

New Zealand

Peru

Austria

Venezuela

Argentina

Algeria Philippines

Panama

Angola

Colombia

Saudi Arabia

Libya

PETREVEN Division

TREVI Division

Italy

34 Operating Companies in 25 Countries – 48 Business Units

Chile

4

TREVI Group: Services Sector Presence

Denmark

Kuwait

Turkey

Oman

Brazil

Thailand

SOILMEC Division

DRILLMEC Division

Japan

China

Singapore

Italy

U.S.A.

France

UK

India Germany

U.S.A.

Australia

Italy

Brazil

18 Operating Companies in 13 Countries – 21 Business Units

Algeria

Russia

5

TREVI Group: Mechanical Sector Presence

Hong Kong

Colombia

Technological Innovation Process Innovation

STRENGTHENING MARKET LEADERSHIP

MECHANICAL SECTOR SERVICES SECTOR

6

TREVI Group: Competitive Advantage

GROUP SYNERGIES

CONSTANT

INNOVATION

OUR COMPETITVE ADVANTAGE

UNIQUELY INTEGRATED PLAYER: ü IN GROUND ENGINEERING & OIL DRILLING SERVICES ü IN DRILLING & FOUNDATIONS EQUIPMENT

7

TREVI Group: Key differentiating factors

• Proven track record Unprecedented track record operating for over 50 years worldwide and successfully facing the utmost challenges

• Well diversified client portfolio Unmatched and historical International diversification of the business being less dependent of local markets

• World leading technology Continuously innovating the highest standards of technology to best meet the market’s demand

• Flexible & unique business model Extensive industry know-how in finding the most suitable solutions for any job Unique and adaptable business model for industry competitive advantage

ü Strong revenue generation Increased revenue generation from all business lines ü Taking full action for margin improvement Developing & executing key contracts for margin contribution

ü Robust Backlog & Stabilizing outlook Hefty backlog guarantees a positive business outlook ü Improved Net Financial Position as planned Total indebtedness was considerably reduced with full cashed payments from oil rigs delivery

8

TREVI Group: 1H 2012 Key Highlights

Ø 2Q12 NFP improved

Ø On track for delivery

Harvesting

All actions fully in place for delivery

Improved by 14%

Outlook 2012

9

2012 REVENUES EBITDA NFP

2013 REVENUES EBITDA NFP

ü Increase in Revenues

ü Cash generation in 2H12

ü NFP to improve considerably in second half

ü Marginality improving with growth in 2013 (important negotiations on course)

On Track

*

* vs FY 2011 Results

Group’s Divisions Overlook

SP

ECIA

L FO

UN

DA

TIO

NS

SER

VIC

ES

•Strong order backlog

•Slightly more easing outlook in markets in which we operate

•Double digit growth in Revenues with stable Margins

•Key contracts to contribute by 2H2012

•Outlook on large infrastructure sector stable & construction sector still under pressure

OIL

& G

AS

SER

VIC

ES

•Operations proceeding clearly and on track

•Organic & sound business growth

•All rigs are operating in key contracts & jurisdictions

OIL

& G

AS

RIG

S

•Big momentum with over double digit growth yoy revenue increase

•Relevant contracts payments fully received

•Significant opportunities on hand for finalization

•Robust order pipeline

•Exploration and Production on track

•HH series on the right growth track

SP

ECIA

L FO

UN

DA

TIO

NS

RIG

S

•Positive growth in the revenue generation

•Uncertainty in the market increases the purchase decision time from clients

•Mature markets are showing some signs of recovery

•To grasp opportunities in high growth markets

•Higher competition hindering pricing and marginality

•Lower visibility in order backlog

1H12 Sales +15.0% +2.2% +36.3% +12.2%

10

vs 1H11

1. TREVI Group



4. Drilling Sector

5. Appendix

11

Copenaghen (DENMARK) CITYRINGEN work site

12

1H 2012 Results

§ Significant increase in consolidated revenues +23%

Continued strong volume of sales

§ Stable and robust Backlog Significant visibility on future revenues

§ Net Financial Position improved vs 1Q12 by about €70m The net indebtedness improved significantly with respect to the first quarter

§ Revenues: €585m €474m vs 1H11

§ EBITDA: €56m €65m vs 1H11

§ EBIT: €29m €41m vs 1H11

§ PBT: €22m €28m vs 1H11

§ Backlog: €929m €940m vs 1H11

§ NFP: €426m (1Q12 €495m) €334m vs 1H11

1H 2012 % 1H 2011 % Δ%

VALUE OF PRODUCTION 608,6 526,1 15,7%

REVENUES 584,7 100,0% 474,5 100,0% 23,2%

EBITDA 56,2 9,6% 64,8 13,7% -13,3%

EBIT 29,0 5,0% 41,3 8,7% -29,8%

FINANCIAL COSTS (9,7) -1,7% (8,5) -1,8% -14,4%

TAXES 10,1 1,7% 11,9 2,5% 15,8%

NET PROFIT 12,1 2,1% 15,3 3,2% -21,3%

1H 2012 1H 2011 Δ%

NET CAPITAL EMPLOYED 875,0 683,9 27,9%

EQUITY 448,8 350,0 28,2%

NET FINANCIAL POSITION 425,6 333,9 -27,5%

BACKLOG 929,3 940,2 -1,2%

1H 2012 1H 2011

NFP / EBITDA 3,79X 2,58X

NFP / EQUITY 0,95X 0,95X

1H 2012 1H 2011

EMPLOYEES 6.123 6.07413

Financial Highlights 1H12 yoy Eur mln

Eur mln

14

Income Statement 1H12 vs 1H11

Eur 000 1H12 1H11 D%

TOTAL REVENUES 584.740 474.538 23,2%

Changes in inventories of finished and semi-finished products 12.735 31.309

Increase in fixed assets for internal use 11.137 20.274Other non-ordinary operating revenues 0 0VALUE OF PRODUCTION 608.613 526.121 15,7%Raw materials and external services 436.127 358.359Other operating costs 6.997 7.818VALUE ADDED 165.488 159.944 3,5%Personnel expenses 109.310 95.143EBITDA 56.179 64.801 -13,3%% Total Revenues 9,6% 13,7%Depreciation 23.076 22.763Provisions and write-downs 4.108 730EBIT 28.995 41.309 -29,8%% Total Revenues 5,0% 8,7%Financial revenues/(expenses) (9.702) (8.479)Gains/(Losses) on exchange rates 2.801 (4.384)Other Gains/(Losses) 2EBT 22.094 28.448 -22,3%Tax 10.062 11.948Minorities (41) 1.165GROUP NET PROFIT 12.073 15.335 -21,3%

Based on non Consolidated data 15

Services Sector 45,8%

Mechanical Sector 54,2%

Drilling Sector 41,3%

Core Business 58,7%

One Group: Two Points of view

Tota

l Rev

enu

es 1

H1

2:

Eu

r 5

84

.7 m

ln

16

Revenues Before and After Consolidation

Eur mln 1H12 1H11 D%

Special Foundation Services (TREVI) 229,9 199,8 15,0%Drilling Services (PETREVEN) 45,0 44,0 2,2%Interdivisional Adjustments and Eliminations (2,3) (3,5)

Sub-Total Foundations and Drilling Services Sector 272,5 240,3 13,4%

Machines for Special Foundations (SOILMEC) 122,2 108,9 12,2%Drilling Rigs (DRILLMEC) 203,2 149,0 36,3%Interdivisional Adjustments and Eliminations (1,3) (2,2)

Sub-Total Mechanical Sector 324,1 255,7 26,7%

Parent Company 6,9 6,1Interdivisional Eliminations (18,8) (27,6)

TOTAL CONSOLIDATED REVENUES 584,7 474,5 23,2%

17

Breakdown per Geographical Area

314,2

378,7

492,6

571,5

452,7 474,5

584,7

Backlog

GEOGRAPHICAL AREA (Eur mln) 1H12 %Italy 159,0 17,1%Europe (Italy excl.) 109,0 11,7%U.S.A. and Canada 68,0 7,3%Latin America 293,0 31,5%Africa 102,0 11,0%Middle East and Asia 164,0 17,6%Far East 34,3 3,8%TOTAL 929,3 100,0%

687,0

973,4 917,1

716,4

940,2 929,3

Foundation Sector Drilling Sector

19

Backlog Visibility

Overall high quality portfolio guarantees an Average 1 year visibility

NFP 1H12 NFP FY11 EBIT + D&A

FREE CASH FLOW -7,5 mln Eur

Eur

mln

INVESTMENTS INTERESTS EXCHANGE DIFFERENCES

OTHER TAXES Δ WORKING CAPITAL

20

Net Financial Position

1H 08 1H 09 1H 10 1H 11 1H 12

Eur

mln

1H 07

EBITDA/Net Fin. Exp. 5,8x 7,6x 9,4x 12,0x 11,3x 8,0x 21

Financial Ratios

1H 06

8,8x

159,5

449,4

173,6

333,9

425,6 398,1

148,4

Eur mln

EQUITY NET FINANCIAL POSITION

Short Term Debt Long Term Debt

22

Equity and Net Financial Position

144,6

279,0

179,5

350,0

425,6

368,6

448,8

108,1

Ebitda%

Ebit%

Revenues

23 Based on non Consolidated Data

Foundations and Drilling Services Division

188,8

308,7

230,8 246,9 240,3

272,5

Based on non Consolidated Data

Ebitda%

Ebit%

Revenues

24

Mechanical Division

203,4

272,7 283,0

212,7

255,7

324,1

149,8

174,3

1Q12 vs 2Q12

1. TREVI Group



4. Drilling Sector

5. Appendix

25

Fogg Art Museum Massachusetts (USA)

CONSTRUCTION INVESTMENTS 2011 VS 2012

26

Construction Sector 2012

Updated Outlook

CONSTRUCTION INVESTMENTS 2012

Construction Sector 2012 1/4

EUROPEAN MACRO ENVIRONMENT

• Negative European scenario on GDP trends of 1H2012

• Given the correlation between GDP & Construction activity most recovery in European markets will be defined into 2014

• Austerity measures are tightening showing lower support for the sector

• According to the latest outlook countries with exceptions are: Germany, Swiss, Poland and the UK

• Equipment purchasing expected to recuperate in 2014

Less opportunities Mild opportunities Positive opportunities

27

Construction Capex 2012 vs 2011

Source: Citi Research

-25%

-20%

-15%

-10%

-5%

0%

5%

10%

3Q09

4Q09

1Q10

2Q10

3Q10

4Q10

1Q11

2Q11

3Q11

4Q11

1Q12

2Q12

Substantial Increase Equipment Purchasing

Source: Citi Research

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

2012 2013 2014 2015 2016 2017

United States: construction spending yoy% changeConstruction spending, y-o-y % 2008 2009 2010 2011 2012 2013 2014

Residential new build -36,6% -40,1% -5,2% -8,3% 12,7% 15,4% 17,3%Residential improvements -16,8% -6,0% -1,6% -0,3% 1,5% 2,0% 3,0%Non-residential 4,6% -13,9% -24,5% -7,1% 1,3% 7,4% 9,9%Highways and streets 2,5% 1,4% -1,0% -7,4% -4,3% -4,2% 1,7%Infrastructure other 6,7% 0,5% -5,5% -1,1% -0,1% 2,3% 2,4%

-10,8% -15,1% -12,5% -5,0% 2,3% 5,8% 8,0%

Source: U.S. Census Bureau, Morgan Stanley Research estimates



US MACRO ENVIRONMENT

• Construction in the United States is stabilizing

• New 2012 $105 BN Highway Bill approved by US Congress in July 2012

• In real terms both residential and non residential construction grew YoY

• Private non residential and private infrastructure investments are growing particularly strongly

• Private non residential building +2% Yoy • Private financed infrastructure +9% Yoy

• Infrastructure, highway and streets to stabilize and gradually pick up


28

Project pipeline in MENA in 2012 (US$mn)

Source: MEED projects, BofA Merrill Lynch Global Research

0,000

50,000

100,000

150,000

200,000

2011

Q4

2012

Q1

2012

Q2

2012

Q3

2012

Q4

2013

Q1

2013

Q2

2013

Q3

2013

Q4



MIDDLE EAST AND NORTH AFRICA MACRO ENVIRONMENT

• Project pipeline in MENA region shows a strong award momentum

• 2012 estimated MENA projects worth $305bn, about 11x contracts awarded in 2011

• The majority of spending in Saudi Arabia is driven by social infrastructure needs

• South Africa has low contract awards; project cancellations and tender announcements rolled over 2H11 with modest recovery in 2H12


Award momentum in 2012 (US$mn)

Source: MEED projects, BofA Merrill Lynch Global Research

0,000

50,000

100,000

150,000

200,000

250,000

300,000

350,000

UAE Saudi Arabia Qatar Egypt

Construction Industry Infrastucture

Oil & Gas Petrochemicals Power

29

Infrastructure vs. GDP per capita (in USD)

Source: OECD, BofA Merrill Lynch Global Research

3,0

4,0

5,0

6,0

7,0

0 10000 20000 30000 40000 50000 60000 70000 80000 90000

Infr

ast

ruct

ure

Qu

alit

y

GDP per Capita (in USD)



Argentina Brazil

Russia

Mexico China Indonesia

South Africa

Thailand

Turkey

Taiwan

Korea Spain

UK

Belgium

Japan

Canada

Germany

Italy

Australia

Austria France

Norway

Poland India

Saudi Arabia USA

ü Forecasted 2011-2013 US $ 6tn* of

infrastructure investments

ü According to the OECD’s** most recent “Global Competitiveness Report” there is a significant gap in the quality of infrastructure between emerging and developed economies

ü Infrastructure spending on the long term is the means to narrow the gap

* BofA Merrill Lynch forecast

EMERGING MARKETS MACRO ENVIRONMENT

• Long term sustainability due to healthier government balance sheets, population growth, rapid urbanization and years of underinvestment

• The 2011 ratio of public debt to GDP in emerging countries was only 39% vs 100% in advanced economies

** Organization of Economic Cooperation and Development 30

• U.S.A. • Canada

• Panama

• Santo Domingo

• Colombia

• Argentina

• Peru

• Venezuela

• New Zealand

• Saudi Arabia

• Oman

• Qatar

• U.A.E.

• Kuwait

• Algeria

• Angola

• Mozambique

• Nigeria

31

TREVI: Projects Worldwide

• Italy

• Sweden

• Denmark

Foundation works – Batangas (Philippines)

• Philippines

• Thailand

• Hong Kong

• Laos

• Singapore

TUNNEL CONSOLIDATION WORKS IN SENIGALLIA (ITALY)

SPECIAL TECHNOLOGY FOR HIGH TUNNELLING ENGINEERING

FULLY CUSTOMIZED EQUIPMENT FOR PROVEN PATENT EFFICIENCY

32

TREVI: Tunnel in Senigallia

TREVI: Awards on Safety

Louisiana

Florida

Kentucky

Kansas

Alabama

33

Projects for the US ARMY CORPS Of ENGINEERS

ü The largest and most difficult foundation remediation project in the world to this day

ü Milestone reached: Completion of the Concrete Embankment Wall

ü Over 1,000,000 hours completed accident free

ü Close to 550 days without lost time injury

ü 1334 days worked on the project

ü State of the art technology and work execution

ü Production rates exceed those originally anticipated at the beginning of the project

WOLF CREEK DAM Kentucky, USA

Safety, Environment & Execution Excellence

CIVIL FOUNDATIONS WORKS KEMPINSKY HOTEL, SAUDI ARABIA

34

TREVI: Key Projects “Kempinsky Hotel”

UPDATES from the Jobsite ü Operating in 10 worksites

ü In 2 stations works are being carried out with

micropiles machines on water

ü Completed diaphragm walls and executing tunnel consolidation injections ü Cased Secant Piles Technology on 7 Group

activities

Technical Specifications ü The project includes 60,000 m2 of diaphragm

walls with a thickness of 1,200 mm and a depth of 45 m via Soilmec Hydromills

ü 115,000 Linear meters of CSP Cased Secant Piles with metal reinforcement – Soilmec Patent

ü 73,000 Linear meters of drilling and grouting

ü 90,000 Linear meters of soil investigation

CITYRINGEN METRO PROJECT in COPENHAGEN «One of the largest tendered European special foundations contract

worth about Euro 90 million» The project involves the construction of 17 new stations.

35

TREVI: Key Projects “Copenhagen”

EXECUTION OF THE DIAPHRAGM WALL AS SOIL RETAINING

STRUCTURE IN OMAN

36

TREVI: Key Projects “The Botanic Garden”

DRIVERS FUTURE REVENUES (*) 1H06 – 1H12

(*) Non Consolidated Data

Eur mln

37

TREVI: Overview

•Presence in Emerging Countries

•Strengthening of market leadership in existing geographical areas

•Focus on large infrastructural and technological projects

•Focus on projects with strong technological challenges

•Growth in new geographical areas

•Looking for new market niches to address

156,7

206,3

162,0

274,2

214,3 199,8 229,9

38

SOILMEC: Production – Logistical Network

Brazil

UK

France

North America

Germany

Moscow

Arabia

Misr

Emirates

India

ITALY

Bejiing

Japan

Hong Kong

Far East

Australia

39

SOILMEC: New Revolutionary Hydromill

NEW REVOLUTIONARY SOILMEC HYDROMILL

40

SOILMEC: Intermat 2012 Paris

SR-90 Rig CAP (Cased Auger

Piles)

Newly Presented SM-28; SM-10; SM-5E NEW SOILMEC SF-65

Hydraulic CFA Rig

1

MICROPILING HOUSING REAL ESTATE COMMERCIAL

41

SOILMEC: Complete Range of Products

LARGE DIAMETER PILE

CRANES

CFA

ATTACHMENTS

TOOLS&INSTRUMENTS

PUMPS & ANCILLARIES

MICRODRILLING

HYDROMILL & GRABS

MAJOR WORKS

€6 MLN

250 Ton 3 Ton

€100 K

TRENCH CUTTERS

ü DRILLING MATE SYSTEM (DMS)

ü REMOTE LIVE WORLDWIDE ASSISTANCE

ü OVER 45 OFFICES AROUND THE WORLD IN 90 COUNTRIES

Value

Capacity

42

SOILMEC: Complete Offer in the Value Chain

Know how & Customization

Implementing & Testing

Patents

Markets

Assistance

• Innovative Design

• R&D

• Divisional testing

• Innovation on the field

• High technological barriers

• Brand awareness • Localized

production for market penetration

• Exceptional Customer Service

• After sales service DMS

Equipment, Customization, Markets & Sales After Market


Eur mln

(*) Non Consolidated Data 43

SOILMEC: Overview

•Identify opportunities in key markets

•Leverage on local presence to expand operations

•High level of customization to further strengthen market share

•Presence in Emerging Countries

•Higher level of competition

•Strong insourcing of production

83,7

160,5

133,2

92,7 91,5

108,9 122,2

1. TREVI Group



4. Drilling Sector

5. Appendix

44 Drillmec Serie HH

OIL: DEMAND AND SUPPLY CURVE

OIL PRICE FORECAST

GROWTH OF DEMAND

Sou

rce:

RCB C

apital

EIA

25

.06.

2012

REDUCTION OF OIL&GAS STOCK

Rising oil price will further stimulate the development of drilling activities. Among the countries not included in OPEC, Canada, Brazil, Russia and Colombia are expected to growth.

Source: UBS 25.06.2012

45

Oil & Gas: Outlook

NEW ALTERNATIVE SUPPLIES

2011A 1Q12A 2Q12A 3Q12A 4Q12A 2012E 2013E 2014E

Brent ($/bbl) 110,93 118,11 115,00 110,00 105,00 112,00 100,00 97,00

WTI ($/bbl) 95,11 102,97 100,00 98,00 95,00 99,00 92,00 92,00

80 mbd

104% of demand

93 mbd

107% of demand

111 mbd

2000 2011 2020

CURRENT & PROJECTED BARRELS PER DAY FLUCTUATIONS TRENDS

• Oil Revival: unparalleled investment cycle started in 2003 and reached an historical high in 2010

• Upside Driven by: “De-conventionalization” oil supply & more efficient conventional production

• Potentially Oil is still to be fully exploited with no “peak-oil” in sight

46

Oil & Gas: Upsurge of World Oil Production

Sou

rce:

Har

vard

Uni

vers

ity

05.0

6.20

12

+17.6 mbd

ECONOMIC PREREQUISITE

An oil price higher than $70 bl to 2020

The biggest increase since the 1980s

Mbd = Million barrels per day

COUNTRY-by-COUNTRY EVOLUTION OIL PRODUCTION TO 2020

Sou

rce:

Har

vard

Uni

vers

ity

05.0

6.20

12

The graph below shows the aggregate production capacity growth which will occur almost everywhere. This will also bring to a “de-conventionalization” of oil supplies.

During the next years there is evidence of an increase in the “unconventional oils” such as U.S. Shale/tight oils, Canadian tar sands, Venezuela’s extra heavy oils and Brazil’s pre-salt oils.

47

Oil & Gas: Production Capacity

Production Capacity 2011 Production Capacity 2020

- -

Mbd

(M

illio

n ba

rrel

s pe

r da

y)

ü Countries that show the highest potential in terms of effective production

§ The of authorized concession reserves shows a significant increase

§ 2012 shows a strong interest in the Gas reserves almost double that of 2011

Notwithstanding the macroeconomic scenario the Oil & Gas sector remains attractive

§ 2012 Exploration and Production investments are confirmed to grow § Despite continuing macroeconomic concerns, expectations

for E&P Spending still solid

Exploration & Production

The scenario remains very attractive and the Group is well positioned in the Oil & Gas sector. Recent research show a particular interest towards the growth of the sector and the specialization of the

operators. Drillmec has the most innovative technology and solutions on the market. 48

Oil & Gas: E&P Outlook

Source: Barclays Capital – 18.06.2012

Source: Goldman Sachs – 10.01.2012

Sou

rce:

Bak

er H

ughe

s 07

/06/

12

49

WORLDWIDE “RIG COUNT” ACTIVE (ONSHORE + OFFSHORE)

The chart above shows the evolution of the global average number of oil rigs in the period 1993 - 2010; further increase is expected between 2012-2014.

3,465 3,656

3,984

2,981

Oil & Gas: World Rig Count

4,321

MAJOR & SECONDARY OIL COMPANIES CAPEX 2012

Notwithstanding the current economic situation the prospective capex for 2012 are expected to grow. The graph refers to a sample of Oil Companies and shows the % change of investments in 2012 versus 2011 together with the volume of investments (figures in USD million).

% Change of CAPEX 2012e YoY

50

Oil Companies Investments

CA

PEX

20

12

$m

ln

Font

e: U

BS 0

6.07

.201

2

Bubble = Capex’12e

Average Majors = +9%

Average Secondary = +8% Petroleo Brasilero

Royal Dutch Shell

ExxonMobil

TOTAL Eni BP

Statoil

Chevron

Hess

JX Holdings

Chesapeake Talisman Canadian N.R.

BG Group Rosneft

ConocoPhillips

Husky Suncon

4

1

DRILLMEC: Expansion of the Business

51

3

• New DRILLMEC plant in the USA to better serve the market

• Houston TEXAS – World Capital in Energy & Oil • Important new contracts to execute for major oil companies

2004 2007 2011/2012

TECHNOLOGY ENGINEERING PROJECT MANAGEMENT

PRODUCTION

2000 2010

4

1

DRILLMEC: Timetable on Rig Delivery

52

• 3 Complete Rigs 1.500 HP each

• Manufacturing completed in Houston TEXAS, rig up in MEXICO

• On Field Technical and Project Management Assistance

April 2012 June 2012

PRODUCTION & DELIVERY CLIENT RIG UP FULL PAYMENT ORDERED

March 2011

Planning, Manufacturing & Delivery On Time

53

DRILLMEC: Flexibility of the Business Model

Eur

mln

International Tenders Historical Clients Special Projects

INTERNATIONAL TENDERS

HISTORICAL CLIENTS

SPECIAL PROJECTS

CRITICAL FACTORS

DRILLMEC’S CONTRIBUTION

Cyclicality Competition

Product Range Customer Service

Continuity Loyalty

Technological Customization

Discontinuity Project Managt.

Technological Flexibility

2004 2007 2011/2012

1

2

HH75 HH102 -150 HH200 HH600

1 2 3 4

AVAILABILITY FLEXIBILITY QUALITY REALIBILITY

54

DRILLMEC: HH Complete Range of Products

HH220 HH300-HH350

2,500m

3,500m

4,500m

6,500m

5,500m

* Drilling depth theoretical in m (meters)

*

ü Unique benchmark performance ü Competitive design ü State of the art technology ü Patented technology ü Competitive advantage

Ap

plic

atio

ns

REDUCTION of AREA

REDUCTION of COSTS

INCREASED PERFORMANCE

INCREASED SECURITY

RIG - UP in Italy

Main Advantages for clients are the

following:

• Reduction of Costs

• Security of Operating

• Reduction of Risks

55

DRILLMEC: Different Technologies

HH Series Conventional Series

56

DRILLMEC: Time and Depth record

GROUND BREAKING RECORD ü Drilled via Drillmec HH-102 Hydraulic rig

ü Drilling record hit for the first time by rig with a maximum static pull of 100 tons

ü Reached 7,316 feet (2,230 meters) in less than 24 hours in Argentina*

• Remarkable Success ü Safety

ü Efficiency

ü Cost Savings Highly fit technology for E&P Exploration & Production

*Based on Client retrieved data utilizing a Drillmec HH-102

ü Increased efficiency in drilling

ü Hydraulic technology benchmark applied to Oil & Gas

ü Horizontal drilling capacities within 1600 meters

ü Specific applications for Shale Gas and Oil Sands

ü Highest level of safety (over 85% of unmanned operations)

ü Entirely automated machine

ü Highest level of customization

57

DRILLMEC: Innovative Drilling

State of the Art drilling technology

1600 meters

WATER OIL & GAS GEOTHERMAL

Conventional Technology

Hydraulic Technology

(*) Sample of Clients 58

DRILLMEC: Full Product Range (*)

59

TREVI GROUP: Awards

World Oil Feb 2012 ENR Feb 2012 Piling March 2012


Eur mln


DRILLMEC: Overview

•HH: Innovative Technology

•Innovation in conventional rigs

•Strategic Partnernship with clients and competitors

•Spread of the HH series towards majors

•Shale Gas high technology

•Entrance in Strategic markets

62,4

123,2

64,2

180,9

121,9

149,0

203,2

ARGENTINA

5 rigs HH100 - Petrobras (1) - Chevron Texaco (1) - YPF (3)

VENEZUELA

1 rig HH300 - PDVSA

1 rig HH200 - PDVSA

COLOMBIA

1 rig HH220 CYBER - Ecopetrol SA

1 rig HH100 - Petrominerales PERU

2 rig HH100 - Petrobras

CHILE 1 rig HH220 WINTER

- GeoPark 1 rig HH102 WORK OVER

- GeoPark

FULL HH TECHNOLOGY

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PETREVEN: Operating Rigs

2006

8 rigs

2007

9 rigs

2008/2009

10 rigs

2010

12 rigs

2011

13 rigs

2012

14 rigs


Eur mln


PETREVEN: Overview

•High operating and safety standards

•Preferred access to HH Drillmec technology

•Historical track record

•Further development of know how

•Constant growth in designated areas

•Production and commercial partnership development

11,3

26,0

19,2

37,1 35,6

44,0 45,0

1. TREVI Group



4. Drilling Sector

5. Appendix

63

WASHINGTON D.C. New Marriott Hotel

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Income Statement 1H12 vs 1H11

Eur 000 1H12 1H11 D%

TOTAL REVENUES 584.740 474.538 23,2%

Changes in inventories of finished and semi-finished products 12.735 31.309

Increase in fixed assets for internal use 11.137 20.274Other non-ordinary operating revenues 0 0VALUE OF PRODUCTION 608.613 526.121 15,7%Raw materials and external services 436.127 358.359Other operating costs 6.997 7.818VALUE ADDED 165.488 159.944 3,5%Personnel expenses 109.310 95.143EBITDA 56.179 64.801 -13,3%% Total Revenues 9,6% 13,7%Depreciation 23.076 22.763Provisions and write-downs 4.108 730EBIT 28.995 41.309 -29,8%% Total Revenues 5,0% 8,7%Financial revenues/(expenses) (9.702) (8.479)Gains/(Losses) on exchange rates 2.801 (4.384)Other Gains/(Losses) 2EBT 22.094 28.448 -22,3%Tax 10.062 11.948Minorities (41) 1.165GROUP NET PROFIT 12.073 15.335 -21,3%

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Statement of Financial Position 1H12 vs 1H11

Eur 000 1H12 1H11 D%

Fixed assets

- Tangible fixed assets 346.833 321.097

- Intangible fixed assets 24.616 19.328

- Financial fixed assets 9.517 7.467

Net working capital

- Inventories 492.848 415.430

- Trade receivables 349.316 295.735

- Trade payables (-) (242.133) (262.290)

- Pre-payments (-) (68.851) (70.763)

- Other assets (liabilities) (17.522) (24.567)

Fixed assets plus net working capital 894.624 701.437 27,5%

Post-employment benefits (-) (19.666) (17.554)

NET INVESTED CAPITAL 874.958 683.884 27,9%

Financed by:

Group net shareholders' funds 436.625 338.906

Minorities' share of net shareholders' funds 12.167 11.126

Net financial position 426.167 333.853

TOTAL SOURCES OF FINANCING 874.958 683.884 27,9%

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 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 and statements 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, statements regarding 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 are made. 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 the statements 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.

66

Disclaimer

Investor Relations Team:

Stefano Campana Josef Mastragostino

Cristina Trevisani

[email protected]

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