Tesmec Group

STAR Conference London, October 5th 2010

Corporate

2/27 Tesmec Presentation-1H 2010 results-EN-Rev.02 04/10/2010

Index

Tesmec Group

Financials

Strategy for the future

3/27 Tesmec Presentation-1H 2010 results-EN-Rev.02 04/10/2010

Tesmec Group

Tesmec Group mainly operates in

the market of infrastructure for

the transport of electricity, data

and materials (petroleum and

derivatives, gas, water), a

strategic area for growth and

modernization of each Country.

TWO BUSINESS UNITS

Integrated systems for stringing power lines, fiber optic

cables and electric power lines for railways

High powered tracked trenchers for linear excavation of

underground networks and pipelines or bulk excavation and,

to a less extent, Gallmac multipurpose machines

4/27 Tesmec Presentation-1H 2010 results-EN-Rev.02 04/10/2010

Business lines

Mission

Products

STRINGING EQUIPMENT

Design, production and marketing of integrated solutions for the

construction and maintenance of infrastructures such as aerial and

underground networks and pipelines.

TRENCHERS

Catenary Installations

Oil, Gas, Water & Sewage Pipelines, Bulk Excavation

Transmission & Distribution Networks

Road Jobs, Construction,

Utilities

Stringing Equipment

Railway Equipment

Trenchers Multipurpose

Machines

Power Lines Railway Lines Civil

Infrastructures Urban

Constructions

Markets

Products and Markets

5/27 Tesmec Presentation-1H 2010 results-EN-Rev.02 04/10/2010

Global Footprint

1 Headquarter (Grassobbio) and 3 production sites in Italy (Grassobbio, Endine, Sirone)

Trencher production facility in Alvarado

JV for the supply of stringing equipment to the US market

Representative offices in Russia and China

Trenchers supply company

Commercial offices in Canada and Mexico

Saudi Arabia JV (in progress)

6/27 Tesmec Presentation-1H 2010 results-EN-Rev.02 04/10/2010

TOTAL AREA (m2)

COVERED AREA (m2)

PRODUCTS ACTIVITIES

GRASSOBBIO (BG - Italy)

68,000 32,500

Stringing equipment

Trenchers Gallmac machines

Mechanical works Quality control Assembly Testing

ENDINE GAIANO (BG - Italy)

20,000 7,500

Stringing equipment

Railway equipment

Quality control Assembly Testing

ALVARADO (TEXAS - USA)

93,000 16,000 Trenchers Assembly Testing

SIRONE (LC - Italy)

18,000 6,750 Components Mechanical works Quality control Assembly

Production Plants

7/27 Tesmec Presentation-1H 2010 results-EN-Rev.02 04/10/2010

Post IPO lock-up agreements:

TESMEC: 360 days

TTC & FI.IND.: 360 days

3T Finanziaria: 180 days

Shareholding Structure

3T Finanziaria S.p.A.

7,45%

TTC S.r.l. 30,30%

FI.IND S.p.A. 12,54%

Free float 42,07%

Ennismore 2,30%

Italiana Alimenti 5,34%

8/27 Tesmec Presentation-1H 2010 results-EN-Rev.02 04/10/2010

Index

Tesmec Group

Financials

Strategy for the future

9/27 Tesmec Presentation-1H 2010 results-EN-Rev.02 04/10/2010

1H 2010 Results

86

40,653,415,7

7,2 10,4

18,3%

17,8%19,4%

0

15

30

45

60

75

90

FY 2009 1H 2009 1H 2010

1H 2010 Results

Revenues EBITDA EBITDA margin

FY 2009 1H 2009 1H 2010 delta %

Revenues 86,0 40,6 53,4 31.5%

EBITDA 15,7 7,2 10,4 44.4%% Revenues 18,3% 17,8% 19,4%

EBIT 12,3 5,8 7,9 36.2%% Revenues 14,3% 14,4% 14,9%

Net income/(loss) 7,4 2,9 4,7 62.1%% Revenues 8,6% 7,2% 8,8%

Income Statement

(€ m)

Tesmec (Cons.)

FY 2009 1H 2010

Net working capital 48,6 45,7Net current assets 43,1 46,9Non current assets 25,2 25,4Other funds (1,3) (1,1)

Net invested capital 67,1 71,2

Net financial indebtedness 46,2 45,2Equity 20,9 26,0

Total equity and net financial

indebtedness67,1 71,2

Financial Information (€m)Tesmec (Cons.)

€ m

10/27 Tesmec Presentation-1H 2010 results-EN-Rev.02 04/10/2010

20,530,5

20,0

10,0

2,8

22,9

0

15

30

45

60

75

Revenues 1H 2009 Stringing Equipment Trenchers Revenues 1H 2010

Revenues Evolution

+ 48,7%+ 14%

€53,4 mm

€40,5 mm

+ 31,6%

Revenues Evolution

Tesmec Group

Revenues increase in both business segments was driven by increasing volumes of products

sold

€ m

11/27 Tesmec Presentation-1H 2010 results-EN-Rev.02 04/10/2010

40,6 43,5

1,1

3,9-2,1

3,56,4 53,4

0

15

30

45

60

75

Revenues 1H

2009

Italy Europe North and

Central

America

India and the

Middle East

Rest of the

World

Revenues 1H

2010

Revenues Geographical Split

Revenues Geographical Split

Tesmec Group

Revenue increase was mainly driven by increasing sales in India and CSI in stringing, and by

Africa and Eastern Europe in Trenchers

North America trencher business was negatively impacted by the postponement to the

second half of projects with deliveries initially forecasted in the first half of the year

€ m

12/27 Tesmec Presentation-1H 2010 results-EN-Rev.02 04/10/2010

Revenues Focus on Emerging Markets

3,0 2,6

6,2

3,1

7,7

22,5

1,1 2,0

0,7

4,1 3,8

11,8

0

5

10

15

20

25

China/F. East CSI India S. America Africa Total

Revenues Focus on Emerging Markets

H1 2010 H1 2009

Tesmec Group

Revenues generated in the main emerging economies accounted for 42% of total revenues

in H1 2010 compared to 29% in H1 2009 thanks to strong grow in almost all markets

In South America important projects were postponed to the second part of the year

€ m

13/27 Tesmec Presentation-1H 2010 results-EN-Rev.02 04/10/2010

Order Book

13,5

38,2 30,5

55,2

0

15

30

45

60

Order bookFY 2009

H1 2010revenues

Order Intake Order bookH1 2010

19,7

12,9

22,9

16,1

0

6

12

18

24

30

Order bookFY 2009

H1 2010revenues

Order Intake Order bookH1 2010

STRINGING EQUIPMENT TRENCHERS

ORDER BOOK 2008 - H1 2010

17,3 12,6 13,5

38,2

22,1

19,1 19,7

12,9 39,4

31,7 33,2

51,1

0

15

30

45

60

FY 2008 H1 2009 FY 2009 H1 2010

Stringing Equipment Trenchers

€ m

€ m € m

14/27 Tesmec Presentation-1H 2010 results-EN-Rev.02 04/10/2010

43,146,9

5,04,7

-12,66,7

0

10

20

30

40

50

60

2009 Net

Working capital

Inventories Trade

Receivables

Trade Payables Other current

ass. / liab.

2010 Net

Working capital

Working Capital Evolution

Working Capital Evolution

Tesmec Group

Working capital increased by around € 4m while decreasing its weight on annualized

revenues (from 50% to 44%)

Working capital was negatively impacted by exchange differences on inventories (€ 2,7m)

Other current assets include € 5,8m of deferred listing costs

€ m

15/27 Tesmec Presentation-1H 2010 results-EN-Rev.02 04/10/2010

46,2-10,3

45,2

3,71,4 0,7 0,9

2,6

0

10

20

30

40

50

60

NFP 2009 OFCF NWC Capex Int. exp.net Tax Dividends NFP 1H2010

NFP Evolution

NFP Evolution

Tesmec Group

NFP benefited from positive operating cash generation in the period

In the period were paid dividends for € 2,6m

€ m

16/27 Tesmec Presentation-1H 2010 results-EN-Rev.02 04/10/2010

Raw Materials Impact

Saving actions

Contracts revision with key suppliers with the target of maintaining costs to 2009 level

Certification and start up of new suppliers in low cost areas mainly for steel structures (i.e.

Bulgaria and Romania steel workshops)

17/27 Tesmec Presentation-1H 2010 results-EN-Rev.02 04/10/2010

9,912,2

0

3

6

9

12

15

July-August 2009 July-August 2010

Revenues

+22,1%

31,0%

69,0%

Revenues July-August 2010

Trencher Stringing Equipment

Revenues and Order Intake Update - July & August 2010

New orders intake for July and August

amounted to € 16m with the following

breakdown:

Europe & CSI: € 2.2m

South America: € 10.3m

India & Middle East: € 2.6m

Rest of World: € 0.9m

Tesmec Group

0

2

4

6

8

10

12

Europe & CSI South AmericaIndia & MiddleEast

Rest of World

€ m New orders intake

€ m

18/27 Tesmec Presentation-1H 2010 results-EN-Rev.02 04/10/2010

Index

Tesmec Group

Financials

Strategy for the future

19/27 Tesmec Presentation-1H 2010 results-EN-Rev.02 04/10/2010

Key Strategic Drivers

INNOVATION

Products: innovative technological solutions

Service: innovative offer of integrated solutions

Market: approach to new market segments (high speed railway lines; new generation fiber

networks)

ENVIRONMENT

Worldwide Emission Standard: “one step ahead”

Green energy: renewables

Power Grids: Smart and Strong Vision

EMERGING ECONOMIES

Enhancing presence in Brazil, India and Eastern Europe

Direct activities in China, Russia and Middle East

20/27 Tesmec Presentation-1H 2010 results-EN-Rev.02 04/10/2010

Product: Innovative Technological Solutions

50 years of experience in the stringing business and 25 years in the trenching business

Main R&D results 2007-2010

R&D spending 2007-H1 2010

Note: TESMEC Group Consolidated Financial Statements, IFRS compliant

1,3 2,6 3,0

1,2

1,9 2,5

2,8%

4,1% 6,4%

0,0

1,0

2,0

3,0

4,0

5,0

6,0

2007 2008 2009

2.5

4.5

5.5

1,5 1,8

1,2 1,0

6,9%

5,3%

H1 2009 H1 2010

2.8 2.8

1,32,6 3,0

1,2

1,9

2,5

2,8%

4,1%6,4%

0,0

1,0

2,0

3,0

4,0

5,0

6,0

2007 2008 2009

Capitalized R&D costs Other R&D costs % on revenues

2.5

4.5

5.5

2.5

4.5

5.5

Ultra high voltage transmission lines*

Electronically synchronized multi conductor

puller / tensioner machines

New generation conductors HTLS

Complete set of equipment machines & tools

High voltage underground power lines

Integrated solutions for laying cables

Maintenance & live lines works

Integrated solutions

High speed railway lines

Automatic cable laying wagons

Long distance fiber optic installation

Integrated system to dig & lay fiber optic

Urban rings & FTTH

Advanced solution for installation

Pipelines & underground

infrastructures

Development & set up of different high

performance attachment

Special purpose application

Fast moving wheeled Trenchers

STRINGING EQUIPMENT TRENCHER

* AC 750kv-1000kv / 660kv -800kv DC line

21/27 Tesmec Presentation-1H 2010 results-EN-Rev.02 04/10/2010

Service: Innovative Offer of Integrated Services

Market needs are changing: trend is to outsource specific technologic works

The more you can innovate on these specific services, the more you can gain market share

Tesmec answer to this trend: Tesmec Service supplies the whole package

of integrated services, from survey and feasibility study to the turnkey

project

New Multi Product Pipeline (NMPP) in South Africa

Gas Pipeline System in Croatia The King Abdullah Financial District in Saudi Arabia

SOUTH AFRICA: TESMEC was awarded a rental contract of 4trenchers for the 550km NMPP project

CROATIA: TESMEC won a contract for 5 trenchers for the Pinakro gas pipeline (190km)

SAUDI ARABIA: TESMEC won a contract for 9 trenchers for the foundation/site preparation of the

new King Abdullah financial district

22/27 Tesmec Presentation-1H 2010 results-EN-Rev.02 04/10/2010

Market: Innovative Approach to new market segments

Railway sector is undergoing a relevant development around the world, especially in high growth

markets such as China, where there are plans of 12,000km of new high speed lines within 2012.

Tesmec is developing several strategic

actions in order to catch business

opportunities:

Development of high tech systems in

accordance with the strong tech.

specifications (speed >400km/h)

Participation to main projects of high

speed railway lines (tech. partner of

CRCC)

Promotion of Tesmec high quality

products and experience (international

trade fair, media and web)

Becoming the tech. partner of the main

Chinese construction companies

worldwide

Ongoing discussion to set up a JV with a local player to develop the business of construction

and maintenance of high speed railway lines

23/27 Tesmec Presentation-1H 2010 results-EN-Rev.02 04/10/2010

Tesmec believes that the “Next Generation Networks (NGN)” business has high growth

prospects linked also to the projects of Smart Grids.

Several job site experiences of urban and extra-urban cabling were carried out with solutions

provided by Tesmec.

New Generation Networks

Established relationship with key players in the TLC field (Ericsson, Siemens-Nokia)

Awarded a main fiber optic installation project in Central Italy

Submitted proposal for a 600km extra urban fiber cable project in S. Africa

24/27 Tesmec Presentation-1H 2010 results-EN-Rev.02 04/10/2010

Worldwide Emission Standard: “One Step Ahead”

Tesmec sensitivity to the environmental problems is well known worldwide

Tesmec R&D team is

collaborating with the main

engine manufacturers to review

our product range

The goal is to reduce by 75%

emissions with next generation

Tier 4 engines

We believe market share can be

increased by being first

supplying new generation

machines

25/27 Tesmec Presentation-1H 2010 results-EN-Rev.02 04/10/2010

Green Energy: Renewables

Trends of the global energy system show a growing increase in green energy demand

A strong integration of renewable energy sources is needed

Tesmec offers a new automated methodology to connect wind mills and solar plants to

substations

26/27 Tesmec Presentation-1H 2010 results-EN-Rev.02 04/10/2010

To transport “green energy” the actual grid must be

significantly rebuilded

Tesmec is involved in the improvement of grid

performance with a “Strong Grid Vision”: strengthen

the role of the network, optimize the system, improve

energy efficiency and accelerate the construction of

"Strong & Smart Grid“

Power Grids: Smart and Strong Vision

750 kV AC Russia

765 kV AC South Africa

1000 kV AC China

660 kV DC Brazil

660 kV DC China

800 kV DC China

27/27 Tesmec Presentation-1H 2010 results-EN-Rev.02 04/10/2010

Disclaimer

This presentation contains certain statements that are neither reported financial results nor other historical information (“forward-looking statements”). These forward-looking statements are based on TESMEC S.p.A.’s current expectations and projections about future events. Because these forward-looking statements are subject to risks and uncertainties, actual

future results may differ materially from those expressed in or implied by these statements due to any number of different factors, many of which are beyond the ability of TESMEC S.p.A. (“TESMEC”) to control or estimate precisely, including future market developments. You are cautioned not to place undue reliance on the forward-looking statements contained herein, which are made only as of the date of this presentation. TESMEC does not undertake any obligation to publicly release any

revisions to any forward-looking statements to reflect events or circumstances after the date of this presentation.

This presentation does not constitute an offer of, or an invitation to make an offer for or purchase, any securities of TESMEC in the United States, to U.S. persons (as such term is defined in Regulation S of the U.S. Securities Act of 1933, as amended

(the “Securities Act”) or to any person in any other jurisdiction where such offer or invitation would be unlawful. No securities may be offered or sold in the United States absent registration or an exemption from registration under the

Securities Act. TESMEC does not intend to register any portion of its offering of shares in the United States or to conduct a public offering of shares in the United States or in any other jurisdiction where such offer would be unlawful. TESMEC (and certain shareholders of TESMEC) are offering shares in an Institutional Offering that comprises an offering of shares outside the United States pursuant to Regulation S under the Securities Act. An offering circular (the “Offering Circular”), has been

furnished to each person authorized to invest in the shares. Such persons should refer to the Offering Circular for more complete information about the offering. Any investment decision with respect to the proposed offering should be based on the information contained in the Offering Circular. No representation or warranty, whether express or implied, is being made

with respect to the accuracy or completeness of the information, opinions or forecasts disclosed in this presentation. Neither this document nor any copy thereof may be retained by you or reproduced, redistributed or passed on, in whole or

in part, to any other person. You should not act or rely on, or make any use of the content of, this presentation. This presentation does not purport to be comprehensive. By attending the presentation you agree to be bound by the foregoing

restrictions.

The information contained in this presentation is not for publication or distribution in Australia, Canada, Japan or the United States. The distribution of the content of this presentation in other jurisdictions may be restricted by law. Persons into

whose possession the content of this presentation come should inform themselves about and observe any such restrictions. Any failure to comply with the restrictions set forth above may constitute a violation of applicable securities laws.

TESMEC S.p.A - Headquarters via Zanica, 17/O - 24050 Grassobbio (BG) - Italy

Tel. +39.035.423 2911 - Fax +39.035.4522444 Management and Administration Fax +39.035.4522445 Stringing Equipment Division - Fax +39.035.335664 Trencher Division

www.tesmec.com - info@tesmec.it