MAIRE TECNIMONT GROUP OVERVIEW
January 2018
MAIRE TECNIMONT GROUP OVERVIEW January 2018 DISCLAIMER This - - PowerPoint PPT Presentation
MAIRE TECNIMONT GROUP OVERVIEW January 2018 DISCLAIMER This document has been prepared by Maire Tecnimont S.p.A. (the Company) solely for use in the presentation of the Maire Tecnimont Group (the Group). This document does not
January 2018
This document has been prepared by Maire Tecnimont S.p.A. (the “Company”) solely for use in the presentation of the Maire Tecnimont Group (the “Group”). This document does not constitute or form part of any offer or invitation to sell, or any solicitation to purchase any security issued by the Company. The information contained and the opinions expressed in this document have not been independently verified. In particular, this document may contain forward-looking statements that are based on current estimates and assumptions made by the management of the Company to the best of its knowledge. Such forward-looking statements are subject to risks and uncertainties, the non-occurrence or occurrence of which could cause the actual results – including the financial condition and profitability of the Group – to differ materially from or be more negative than those expressed or implied by such forward-looking statements. This also applies to the forward-looking estimates and forecasts derived from third-party studies. Consequently, neither the Company nor its management can give any assurance regarding the future accuracy of the estimates of future performance set forth in this document or the actual
The data and information contained in this document are subject to variations and integrations. Although the Company reserves the right to make such variations and integrations when it deems necessary or appropriate, the Company assumes no affirmative disclosure obligation to make such variations and integrations.
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MAIRE TECNIMONT GROUP OVERVIEW – JANUARY 2018
focusing on: – Oil&Gas – Petrochemicals – Fertilizers
value chain: – Project Development – Licensing and Engineering Services (E) – Engineering & Procurement (EP) – Engineering, Procurement & Construction (EPC) – Life Cycle Support
– Technology, Engineering & Construction – Infrastructure & Civil Engineering
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Key Indicators Revenues by Business Unit
96% 4%
TE&C Infrastructure
€2.6 bn Revenues (9M 2017) 8,400 Employees and E&I professionals 50 Operating companies €7.6 bn Backlog (September 30, 2017) €1.4 bn Market Cap (Jan. 16, 2018)
MAIRE TECNIMONT GROUP OVERVIEW – JANUARY 2018
2005 2007 2009 2010 2011 2013 2015 2017
1899 FIAT GROUP 2004
Acquisition of Fiat Engineering (later MAIRE ENGINEERING)
1972
Incorporation of FIAT ENGINEERING
2001
Acquisition of FIAT Avio’s Electric Design & Construction Business
1973
Incorporation of TECNIMONT
1966
Incorporation of MONTEDISON
1884
EDISON Power Supply
1888
MONTECATINI Mines and Chemicals
2005 Maire Group acquires Tecnimont
Listing on the Italian Stock Exchange
1947
Incorporation of STAMICARBON Chemical and Fertilizer licensing
1937
Dutch State Mines – DSM research centre for services work to coal mines
Acquisition of Stamicarbon 100% Acquisition of the Indian subsidiary Tecnimont Pvt. Ltd. (formerly TICB)
1958
Incorporation of ICB Pvt Ltd as consulting firm in the plant sector in Mumbai
1977
Creation of the first JV between ICB and Tecnimont
1990s
Tecnimont acquires 50% of the Indian company renamed as Tecnimont ICB Pvt Ltd (TICB)
1971
Kinetic Technology Int. - KTI More than 40 years of experience in process engineering
1988
Mannesmann acquired KTI
1999
Technip Italy acquired KTI
Acquisition of KT Kinetics Technology (formerly Technip KTI) Reorganization
Italian HQs
New Milan Offices
Launch of the New Business Strategy
1963
Giulio Natta Nobel Prize for chemistry
Incorporation of MAIRE TECNIMONT
Repositioning Completed
Our Evolution
5 Record Backlog and Sales
MAIRE TECNIMONT GROUP OVERVIEW – JANUARY 2018
Large-scale contracting in:
Syngas Production
Technology
Civil Engineering
Technology, Engineering & Construction Infrastructure & Civil Engineering
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Business Unit
MAIRE TECNIMONT GROUP OVERVIEW – JANUARY 2018
LIFE-CYCLE SUPPORT
FERTILIZERS OIL & GAS PETROCHEMICALS
LICENSING
EXECUTION- DRIVEN TECHNOLOGY-DRIVEN
ENGINEERING PROCUREMENT CONSTRUCTION
Advice
Full Involvement: From Project Development to Life-Cycle Support
Subsidiary:
PROJECT DEVELOPMENT
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MAIRE TECNIMONT GROUP OVERVIEW – JANUARY 2018
Underground projects (including the first driverless metro system in Italy), railways, tunnels, roads and highways EPC contracting for construction / requalification of hospitals, universities, complex buildings and industrial plants
DESIGN AND CONSTRUCTION OF OVER 30% OF HIGH SPEED & HIGH CAPACITY RAILWAYS CURRENTLY OPERATED IN ITALY
PROJECTS SUCCESSFULLY COMPLETED IN MORE THAN 40 YEARS’ EXPERIENCE
Increasing focus with a dedicated team on Wind, Solar and Biomass large-scale power plants as reliable counterpart of international operators High quality services along the whole value chain: from development and design to EPC, leveraging on Lump Sum Turn Key expertise and global presence
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MAIRE TECNIMONT GROUP OVERVIEW – JANUARY 2018
MILAN ROME BRAUNSCHWEIG MUMBAI SITTARD ITALY 2,281 REST OF EUROPE 332 ASIA 2,690 REST OF THE WORLD 75 Headquarters Main offices and engineering centres Subsidiaries, branches and representative offices
A Real Multicultural and Multinational Group
*Average age: ~41 years
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TOTAL EMPLOYEES 5,378* E&I division ~3,000
GRAND TOTAL ~ 8,378
Data as of: 30.9.2017
MAIRE TECNIMONT GROUP OVERVIEW – JANUARY 2018
(*) Pursuant to Article 120, Paragraph 1 of the Legislative Decree no. 58 of 24 February 1998 and to Article 6 bis of the By-Laws ("Voting right increase"), share capital of Maire Tecnimont S.p.A. refers to the total number of voting rights equal to 473,192,634.
GLV Capital S.p.A. 54.877% 70.865% Arab Development Establishment (ARDECO) 5.091% 3.287% Schroders PLC 4.984% 3.218% Other institutional and retail investors 35.048% 22.630%
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NOTE: Based on the latest official information communicated to Maire Tecnimont (e.g. shareholders’ register, official filings) MAIRE TECNIMONT GROUP OVERVIEW – JANUARY 2018
Enhance and Develop Technology Driven Business Expand Geographic Footprint
Develop Engineering Services Revenues Strengthen EPC in the Core Business Align Organization and Pursue Group Synergies
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MAIRE TECNIMONT GROUP OVERVIEW – JANUARY 2018
competitive pressures
technological edge
partnerships
loyalty
diversification
value-added
Provide Technological Solutions Throughout the EPC Value Chain
LIFE-CYCLE SUPPORT LICENSING
EXECUTION- DRIVEN TECHNOLOGY-DRIVEN
ENGINEERING PROCUREMENT CONSTRUCTION PROJECT DEVELOPMENT
Direct License Basic Feed Detailed Engineering Services EP EPC € 1-10m Very High Double Digit High Double Digit High Double Digit Mid Double Digit Low Double Digit Single Digit Low Low Low Low High € 1-10m € 4-15m € 10-40m € 50-250m € 0.3-5bn Medium
PRODUCTS TYPICAL VOLUMES TYPICAL MARGINS RISK
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PROJECT DEVELOPMENT LIFE-CYCLE SUPPORT
MAIRE TECNIMONT GROUP OVERVIEW – JANUARY 2018
Ammonia and Urea Plants Market share in polyolefin plants completed since 1924
Market share in LDPE plants
PETROCHEMICALS FERTILIZERS
Well rooted technology orientation: market leader (#1) for installed capacity WORLD CLASS TRACK RECORD in Large Gas Treatment Plants and Refinery Process Units
OIL & GAS
WELL RECOGNIZED LEADERSHIP in Licensing hydrogen technology and in licensing Sulphur Recovery and Tail Gas Treatment Technology
* Data are based on corporate analysis
Market share in licensing urea plants technology (#1 worldwide)*
Market share in licensing urea granulation technology (#2 worldwide)*
Since 1970
Individual Patents
Strong commitment to technology development
Hydrogen and Sulphur Recovery Unit Projects completed Since 1971
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MAIRE TECNIMONT GROUP OVERVIEW – JANUARY 2018
investment attractiveness
demand for nitrogen-based fertilizers
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FERTILIZERS PETCHEM OIL & GAS
MAIRE TECNIMONT GROUP OVERVIEW – JANUARY 2018
Our Group is Well Positioned to Face the Current Environment
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MAIRE TECNIMONT GROUP OVERVIEW – JANUARY 2018
Maire Tecnimont’s Relative Performance, 6/20/14 – 1/15/18
Maire Tecnimont BEUOILS Index WTI Future
Correlation Coefficient MT – BEUOILS = — 0.24 MT – WTI Future = — 0.21 BEUOILS – WTI Future= + 0.95
Our Stock is Not Correlated to the Oil Price
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Source: Bloomberg. BEUOILS Index Components: Subsea 7, Saipem, Petrofac, John Wood Group, SBM, Amec FW, TGS
20 70 120 170 220 Jun-14 Sep-14 Dec-14 Mar-15 Jun-15 Sep-15 Dec-15 Mar-16 Jun-16 Sep-16 Dec-16 Mar-17 Jun-17 Sep-17 Dec-17
MAIRE TECNIMONT GROUP OVERVIEW – JANUARY 2018
CORE BUSINESS EXECUTION REVAMPING TECHNOLOGY & SERVICES INTEGRATED PROJECTS RENEWABLES & GREEN CHEMISTRY NEW GEOGRAPHIES PROJECT DEVELOPMENT
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tackle increasing scale and complexity of plants
business through early involvement in investment initiatives
engineering initiatives
MAIRE TECNIMONT GROUP OVERVIEW – JANUARY 2018
COMPLETED PROJECT UNDER REALIZATION PROJECT
PDH PLANT, TOBOLSK (WESTERN SIBERIA) CLIENT: Tobolsk Polymer LLC CONTRACT TYPE: EPC €660m LLDPE-HDPE-PP PLANTS, DAHEJ (GUJARAT, INDIA) CLIENT: OPAL CONTRACT TYPE: EPC US$440m PE/NAO PLANTS, MESAIEED (QATAR) CLIENT: Qatar Chemical Company II CONTRACT TYPE: EPC US$830m POLYOLEFINS COMPLEX, RUWAIS (UAE) BOROUGE 1 - BOROUGE 2 – BOROUGE 3 CLIENT: Borouge CONTRACT TYPE: (1) US$ 445m, (2) US$1.8bn, (3) EPC S$1.7bn POLYOLEFINS UNITS (RAPID), PENGERANG (MALAYSIA) CLIENT: PRPC Polymers Sdn Bhd (PETRONAS) CONTRACT TYPE: EPCC €328m LLDPE-HDPE-PP PLANTS, SOHAR (OMAN) CLIENT: ORPIC CONTRACT TYPE: EPC US$895m PDH/POLYPROPYLENE PLANT, AL JUBAIL (SAUDI ARABIA) CLIENT: Al Waha CONTRACT TYPE: EPC €580m HDPE UNIT (RAPID), PENGERANG (MALAYSIA) CLIENT: PRPC Polymers Sdn Bhd (PETRONAS) CONTRACT TYPE: EPCC €482m LDPE PLANT, BRATISLAVA (SLOVAK REPUBLIC) CLIENT: Slovnaft Petrochemicals s.r.o. CONTRACT TYPE: EPC €204m LDPE PLANT, VERACRUZ (MEXICO) CLIENT: Etileno XXI Services BV CONTRACT TYPE: EP US$191m POLYOLEFINS COMPLEX, RABIGH (SAUDI ARABIA) CLIENT: Petro Rabigh CONTRACT TYPE: EPC €1.2bn HDPE PLANT, SUMGAYIT (AZERBAIJAN) CLIENT: SOCAR Polymer CONTRACT TYPE: EPC - PP, HDPE €350m LDPE PLANT, SADARA (SAUDI ARABIA) CLIENT: Sadara Chemical Company CONTRACT TYPE: EPC €280m PP PLANT, SUMGAYIT (AZERBAIJAN) CLIENT: SOCAR Polymer CONTRACT TYPE: EPC - PP, HDPE €180m
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MAIRE TECNIMONT GROUP OVERVIEW – JANUARY 2018
REFINERY OFF GAS(ROG) PROJECT, ANTWERP (BELGIUM) CLIENT: Total Olefins Antwerp CONTRACT TYPE: EPC €193m DELAYED COKER COMPLEX PROJECT AND HYDROWAX VACUUM DISTILLATION, GDANSK (POLAND) CLIENT: Lotos Asfalt SP. ZO.O CONTRACT TYPE: EPC €304m COMBINED OIL REFINING UNIT (CORU) MOSCOW REFINERY (RUSSIAN FEDERATION) CLIENT: JSC Gazprom Neft Moscow Refinery CONTRACT TYPE: EPC €480m OIL AND GAS TREATMENT "TEMPA ROSSA“ CORLETO PERTICARA (ITALY) CLIENT: Total E&P Italia S.p.A. CONTRACT TYPE: EPC €505m WAFA GAS PLANTS PROJECT MELLITAH & GADAMES BASIN (LIBYA) CLIENT: Agip Gas BV CONTRACT TYPE: EPC €1.2bn AROMATICS COMPLEX SHUAIBA (KUWAIT) CLIENT: Kuwait Paraxylene Production Company (KPPC) CONTRACT TYPE: EPC US$1.2bn INTEGRATED GAS DEVELOPMENT – HABSHAN 5 (ABU DHABI – UAE) CLIENT: GASCO CONTRACT TYPE: EPC US$4.7bn OIL GATHERING, TREATMENT, EXPORT AL DABBI’YA PHASE III, ABU DHABI (UAE) CLIENT: ADCO CONTRACT TYPE: EPC US$2.3bn IGD EXPANSION PROJECT (IGD-E1), GAS TREATMENT AND MARINE WORKS, DAS ISLAND (UAE) CLIENT: ADGAS (ADNOC Group) CONTRACT TYPE: EPC US$490m LNG TERMINAL CHENTOUJIA, GUANGDONG (CHINA) CLIENT: Guadong LNG JEO CONTRACT TYPE: EPC €280m CLEAN FUEL PROJECT RABIGH, (SAUDI ARABIA) CLIENT: Petro Rabigh CONTRACT TYPE: EPC €148m
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COMPLETED PROJECT UNDER REALIZATION PROJECT
OIL & GAS TREATMENT PLANT, LUBIATOW (POLAND) CLIENT: Polish Oil & Gas Company CONTRACT TYPE: EP €91m SULPHUR RECOVERY UNITS, MOSTOROD (EGYPT) CLIENT: Egyptian Refinery Company CONTRACT TYPE: EP €97m SULPHUR COMPLEX GDANSK (POLAND) CLIENT: Grupa Lotos SA CONTRACT TYPE: EPC €111m AMURSKI GAS PROCESSING PLANT(RUSSIAN FEDERATION) CLIENT: NIPIgaspererabotka CONTRACT TYPE: EPC €3.9bn
MAIRE TECNIMONT GROUP OVERVIEW – JANUARY 2018
YARA, SLUISKIL (THE NETHERLANDS) CLIENT: Yara International ASA CONTRACT TYPE: EPC €125m AMMONIA PLANT, KINGISEPP (RUSSIAN FEDERATION) CLIENT: EuroChem Mineral and Chemical Company CONTRACT TYPE: EPC €660m AMMONIA/UREA PLANT NEVINNOMYSSK (RUSSIAN FEDERATION) CLIENT: EuroChem Mineral and Chemical Company CONTRACT TYPE: E AMMONIA PLANT NANGAL PUNJAB (INDIA) CLIENT: National Fertilizers Ltd. CONTRACT TYPE: EPC US$240m FERTILIZER COMPLEX PROJECT AL-JUBAIL (KINGDOM OF SAUDI ARABIA) CLIENT: SAFCO CONTRACT TYPE: EPC US$350m FERTILIZERS COMPLEX , ASWAN (EGYPT) CLIENT: KIMA CONTRACT TYPE: EPC US$540m IOWA FERTILIZER COMPANY, WEVER, IOWA (USA) CLIENT: Orascom Construction Industries CONTRACT TYPE: EP €250m
COMPLETED PROJECT UNDER REALIZATION PROJECT
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STAMICARBON LICENSES: OVER 240 WORLDWIDE
AMMONIA DEBOTTLENECKING, Annaba, Arzew (ALGERIA) CLIENT: Fertial CONTRACT TYPE: E UREA DEBOTTLENECKING & GRANULATION PLANT SHUAIBA (KUWAIT) CLIENT: P.I.C. CONTRACT TYPE: EPC US$100m
MAIRE TECNIMONT GROUP OVERVIEW – JANUARY 2018
BOROUGE 3, ABU DHABI, UAE HABSHAN 5, ABU DHABI, UAE IOWA FERTILIZER COMPANY, IOWA, USA
ROG PROJECT, ANTWERP, BELGIUM
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MAIRE TECNIMONT GROUP OVERVIEW – JANUARY 2018
billion cubic meters of natural gas per year
downstream petrochemicals
Reimbursable Construction (€2.2bn)
JSC NIPIgaspererabotka
(Utilities, Infrastructure and Offsites facilities) of the Amurski Gas Processing Plant
Source: Gazprom 24
MAIRE TECNIMONT GROUP OVERVIEW – JANUARY 2018
Strong Order Intake Driven by Tech Leadership and Favorable Industry Dynamics
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MAIRE TECNIMONT – 9M 2017 FINANCIAL RESULTS
2.8 3.2 1.8 4.0
FY 2014 FY 2015 FY 2016 9M 2017
Average = 3.0
€ billion
MAIRE TECNIMONT GROUP OVERVIEW – JANUARY 2018
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5,393 8,178 7,257 434 423 376
31/3/17 30/6/17 30/9/17
TE&C Infrastructure 5,827 8,601 7,633 Backlog by Geography (Sep. 2017)
Solid and Diversified Backlog
Backlog by Business Unit (€m, 31/3-30/9/17) & 60% 21% 8% 9% 2% Others Asia Africa Europe Middle East
MAIRE TECNIMONT GROUP OVERVIEW – JANUARY 2018
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50 100 150 200 250 6/30/2014 12/31/2014 6/30/2015 12/31/2015 6/30/2016 12/31/2016 6/30/2017 Backlog WTI 9/30/2017
MAIRE TECNIMONT GROUP OVERVIEW – JANUARY 2018
*Defined as the ratio between Backlog and LTM Revenues 28
Good mix between E, EP, and EPC Excellent cover for future revenues
Book to Bill Ratio* (31/3-30/9/17) 2.1 2.9 2.3 31/3/17 30/6/17 30/9/17 85 97 546 467 7,547 6,693 30/6/17 30/9/17 E EP EPC 8,178 7,257 Backlog by Type (€m, 30/6-30/9/17)
*Defined as the ratio between Backlog and LTM Revenues *Defined as the ratio between Backlog and LTM Revenues
MAIRE TECNIMONT GROUP OVERVIEW – JANUARY 2018
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Commercial Pipeline (€bn, Mar ’17-Sep ‘17) 20.0 23.5 23.9 6.2 7.2 5.8 9.0 6.5 9.5 Mar '17 Jun'17 Sep'17 Prospect, Prequalification & Pre-Tendering Tendering Tendered 35.2 37.2 39.2
Our Pipeline is the Highest Ever
&
MAIRE TECNIMONT GROUP OVERVIEW – JANUARY 2018
30 North and Central America POLYOLEFIN South America GAS TREATMENT POLYOLEFIN Africa FERTILIZER POLYOLEFIN GAS TREATMENT REFINERY Middle East FERTILIZER POLYOLEFIN GAS TREATMENT REFINERY Asia FERTILIZER POLYOLEFIN GAS TREATMENT C.I.S. FERTILIZER POLYOLEFIN GAS TREATMENT REFINERY Europe POLYOLEFIN REFINERY
New Contracts Expected, Driven by Significant Commercial Efforts
*Figures include prospect prequalification and pre-tendering, tendering, and tendered €2.0bn €3.0bn €1.6bn €10.2bn €6.6bn €8.7bn €7.1bn
MAIRE TECNIMONT GROUP OVERVIEW – JANUARY 2018
€m 2014 2015 2016 9M 2017 Revenues 1,583.2 1,669.6 2,435.4 2,588.4 EBITDA 126.9 130.8 160.0 143.3 EBITDA % 8.0% 7.8% 6.6% 5.5% EBIT 103.4 115.4 152.6 136.7 Net Income 50.3(1) 43.8(1) 85.3 98.4 €m as of Dec 14 Dec 15 Dec 16 Sep 17 Net Invested Capital (Asset) (458.7) (251.8) (227.5) (282.2) Net Cash (365.0) (125.6) (42.8) 16.6 Total Shareholders' Equity 93.7 126.2 184.7 298.8 Group Shareholders' Equity 92.2 124.9 169.6 277.9
(1) Restated Net Income in 2014 and 2015 with average effective tax rate of 37% would be €38.7m and €48.9m respectively
by execution of record- level backlog
and Net Income
changing backlog mix
Shareholders’ equity driven by positive results
September 2017 for the first time since Q3 2011
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MAIRE TECNIMONT GROUP OVERVIEW – JANUARY 2018
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42.8 16.6 89.3 15.1 9.8 35.2
Net Debt Dec 2016 Operating Cash Flows and Forex Net Financial Income Capex Dividends and Treasury Shares Net Cash Sep 2017
Cash Flow Bridge, 2017 (€m)
MAIRE TECNIMONT GROUP OVERVIEW – JANUARY 2018
540 395 250 195
May 2013 Apr 2015 Dec 2015 Apr-17
We Have Reduced our Bank Debt Spread by over 60% since 2013
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May 2013 €350 12/2017 Apr 2015 €320 2018-2019 Dec 2015 €350 12/2020 Apr 2017 €350 3/2022 Refinancing Date Amount (€m) Final Maturity
MAIRE TECNIMONT GROUP OVERVIEW – JANUARY 2018
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MAIRE TECNIMONT GROUP OVERVIEW – JANUARY 2018
Maire Tecnimont Group’s Headquarters
Via Gaetano De Castillia, 6A 20124 Milan info@mairetecnimont.it www.mairetecnimont.com
Investor Relations T +39 02 6313-7823 F +39 02 6313-733702 6313-7823 Investor-relations@mairetecnimont.It
MAIRE TECNIMONT GROUP OVERVIEW – JANUARY 2018