Engineering a Better Solution - Maccaferri

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Engineering a Better Solution

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130 years ago we invented Gabions and dramatically changed civil engineering’s landscape. We are still changing it today. We work every day to find better solutions for our clients at every degree of latitude and longitude.

We make innovation happen around the world, we share our knowledge capital to multiply the return on investment of clients and partners, and we offer ongoing support to establish relations built on solid trust. This is us: Maccaferri.

GLOBAL ENGINEERS

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CHAIRM AN’S ADDRE SS

Today, control of land loss and hydraulic erosion are two of the main challenges that society and the worldwide engineering community faces. It is a process that is responsible for the destruction of our infrastructure, terrain and loss of fertility of large areas of arable land. It is a problem that is commonly seen throughout the world, in both developing and developed countries.

As a consequence of development or natural destruction, the hydrologic regime of the river or coast is altered and can compromise the whole ecosystem of the catchment area. In urban areas, erosion is a threat to hillside terraces, roads and drainage systems.Such issues are often severely underestimated in a time when the frequency of floods and landslides is clearly increasing.

Indeed, these natural hazard events not only cause loss of human life but additionally impose a great burden upon municipal budgets and taxpayers.Transportation and tourism are also affected by erosion: road and railway interruptions, beach destruction, the silting up of harbours and coastal degradation. These effects slow economic development.

Founded in 1879, Maccaferri soon became a worldwide reference in the design and development of advanced solutions for erosion control and soil stabilisation.

Over time, our company has evolved so that today it is a reliable partner for complex civil and environmental engineering applications.

We have offices in over 70 countries and more than 30 factories worldwide; you are never far from our engineering support.

Our countries have to develop in sympathy with these natural processes, harnessing their benefits, yet managing their destructive influence.

By providing solutions to reinforce soils, retain unstable terrain, stabilise the ground, contain natural hazards and stop erosion, Maccaferri can help you meet these goals.

What sets our company apart is the expertise of our technical staff, whose engineering skill is challenged daily by our clients whether visiting project sites, providing technical proposals, performing design work, and supporting the implementation of our solutions.Such an effort reflects Maccaferri’s goal to be a market leader in the delivery and development of customised solutions with low environmental impact. We are more than a product supplier; we strive to be a partner to our clients, responding to their needs within civil, geotechnical, hydraulic and environmental engineering.

This is how we work and this is why we look forward to working with you!

Alessandro MaccaferriChairman of the Board

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ABOUT U S

We are ethically engaged. We have always stood for the reliability, transparency and professionalism of our team. Our colleagues follow an unconditional ethical code of conduct that maintains and strengthens behavioural integrity and transparency in all operations, while abiding by all pertinent laws.

Mission: To become a leading international provider of advanced solutions to the civil, geotechnical and environmental construction markets.

Over 30

On-the-ground presence in over 100 countries

Factories

Almost 70Subsidiaries

Nearly 3,000Employees

Revenues of over €500m

Vision: We strive to be a technical reference, solving our client’s problems through innovation, collaboration and best-value environmental solutions.

Values: Our values are the foundations of Maccaferri which have defined our mission and our success for nearly 140 years.

Integrity: Transparent behaviour, keeping our promises and assuming responsibility for our actions.

Respect: Contributing to the quality of life by leaving a better environment and community for those who follow us.

Excellence: Improving our performance and services to become invaluable to our clients.

Innovation: Investing in innovation to affirm our reputation as pioneers in all our business activities.

Global Experience/Local Knowledge: Our organisational structure and associate companies on five continents enable us to be simultaneously global and local.

Construction

Supply

Design

Manufacture

Research Vert

ical I

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ratio

n St

rate

gy


The gabion invention ‘Ditta Maccaferri’ invented the famous ‘gabion’. The old craft trade grows into an industrial enterprise.

Five continentsOperations expanded over 5 continents. Sharp acceleration in geographical and product diversification. New market approach aimed at customer satisfaction, compliance with international standards and specifications, and the engineers’ overseeing presence at the most important sites in every part of the world - which gained the company its excellent reputation.

Diversification Start of the diversification process of the original enterprise into several industrial sectors: 18 new companies set up, through mergers and new acquisitions.

EvolutionStart of a system of partnerships and shared know-how to offer customers a range of quality solutions that bring together environmental protection, cost-effectiveness, durability and compliance to regulations. Decisive entrance of Geosynthetic materials into the portfolio of Maccaferri solutions.

2016 New challenges

New launch and new products Reorganisation and re-launch of production. Creation of new products: Officine Maccaferri was the first company in Europe to introduce ‘heavy duty’ galvanising. In 1966 Florence was hit by disastrous floods. Gabions proved to be extremely efficient for the reconstruction of roads and water courses.

For nearly 140 years, we have researched, designed and developed solutions to solve technical problems within the Civil Engineering, Geotechnical and Environmental Construction Markets.

The origins On May 3, 1879 Raffaele Maccaferri established ‘Ditta Maccaferri Raffaele, Officina da Fabbro’ in Lavino for the production of wrought iron items.

Beginning of expansion The original ‘sack’ gabions were followed by the new box-shaped design, which was used in many large public work projects.

ENDURI N G HISTO RY


WHAT WE DO: MARKET SECTO RS

Transportation Infrastructure: Whether a massive reinforced soil wall supporting a new airport runway or a rockfall protection barrier next to a highway, we endeavour to offer best-value and lower carbon footprint solutions.

Urban Infrastructure: Due to the presence of other infrastructure and people, the opportunities for development are reduced and more expensive. Aesthetics and performance of the intervention are as important as a solution that minimises the disruption to residents, commuters and commerce.

Coastal & River Control Works: River and stream training, bridge scour protection, reservoirs, storage lagoons and ponds, coastal works, pipeline protection.

Agribusiness: Containment and erosion prevention with a range of geomembranes and drainage geocomposites, storage and filtering solutions.

Mining: From access and material handling infrastructure, rockfall hazard mitigation, product concentration and leachate storage, to dewatering and site remediation. Our products and solutions can help mine owners in each stage of their mine’s lifecycle.

Environmental Protection: Solutions for the containment and protection of polluted facilities or areas.

Building, Industry, Sport: Drainage, protection and waterproofing of structures and buildings, as well as horizontal sports pitch drainage, all designed to save energy and improve comfort.

Emergency & Flood:Preventing watercourses from overtopping and flooding, through good river channel design and the inclusion of hydraulic works. Supply of rapidly deployable defence barriers.

Military:Our force and infrastructure protection systems are also used in civilian settings to protect buildings, infrastructure or other installations at risk from attack.

Oil & Gas/Energy: From wind farms, to oil storage and pipelines, we provide numerous solutions to stabilise soft ground, support working platforms and other infrastructure demands.

Clients include:

Development banks

Governments – national, local, regional

Developers and Private investors

Designers and contractors

Mining, Oil and Gas companies

Architects and Landscapers


WHAT WE DO:APPLICATIO N ARE AS

Wherever clients and their challenges are in the world, Maccaferri is always “Engineering a Better Solution”

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Retaining Walls and Soil Reinforcement

Hydraulic Works

Rockfall Protection & Snow Barriers

Erosion Control

Soil Stabilisation & Pavements

Basal Reinforcement

Coastal Protection, Marine Structures & Pipeline Protection

Environment, Dewatering & Landfills

Drainage of Structures

Tunnelling+

Landscape & Architecture

Safety & Noise Barriers

Fencing & Wire

Aquaculture Nets/Cages

Concrete Flooring, Precast & Other Uses+

+ In 2014, Maccaferri and Bekaert entered a global sales and distribution joint venture: Bekaert Maccaferri Underground Solutions serves all markets except China, Hong Kong, Argentina, Brazil, Paraguay, Peru and Uruguay. In these countries the companies act independently.


HOW WE W O RK:OUR SUPPO RT SYSTE M

At Maccaferri we do not simply sell products: we provide better solutions – identifying, addressing and responding to the specific needs of each client. Maccaferri is a partner who works alongside clients from the start of the project, maximising value for money through technical expertise and an extensive portfolio of quality products.

From designing to manufacturing and from technical on-site assistance to new market penetration, we have acquired an extensive knowledge: we have turned this knowledge into a ‘capital’ we share with our clients through our local subsidiaries.This Knowledge Capital is continuously enhanced by Maccaferri’s worldwide network of local companies, each of them mutually sharing their knowledge. Across all the world’s time zones, our engineers, designers and technicians cooperate to tap into one another’s technical expertise in order to deliver versatile, cost-effective and environmentally sound solutions.

Our experienced team of engineers are able to provide a range of tailored solutions to suit clients’ needs: from conceptual proposals to full design and supply packages.

Our vertically integrated structure means that we not only design the solution, but we manufacture the materials, and can even offer construction support services. This intimacy with our manufacturing operations often enables us to customise products to minimise site material wastage and over-specification.

This consolidates the supply-chain, reducing our Client’s risk, cost and management-time.

We do not simply sell products: we strive to be the leading technical reference for designing and developing advanced projects. We are strongly committed to solving our clients’ problems by providing better solutions through attentive listening, innovation and collaboration.


SUSTAINAB IL ITY

Sustainability is becoming an essential consideration for all those involved in construction. Authorities, companies and institutions have a duty to devise and deliver solutions that do not jeopardize the longevity and security of the earth.

Maccaferri is committed to make this possible and each day we strive to advocate this civil engineering concept, which, like our gabions, is rooted in a century of tradition.

Maccaferri’s solutions are designed and developed with an eye on quality of life and on preserving the environment and our communities for future generations.

We manufacture and supply high quality durable materials which:

Enhance the service life of the works Reduce environmental impact Provide client reassurance.

As the product manufacturer as well as designer, we can combine products, creating tailor-made solutions to optimise construction time and cost. This can;

Optimise the use of ‘site-won’ materials Reduce environmental impact/carbon footprint Reduce site waste through creating bespoke materials

Wherever possible we try and introduce vegetation into our solutions. These ‘Green’ solutions not only improve the overall aesthetics, but also to better absorb noise and reduce heat reflection - important to reduce overall energy consumption in our urban environments.

We manufacture and promote innovative high-quality, environmentally friendly solutions that reduce the carbon footprint.

OPPOSITE: Photovoltaic panels on our factories reduce our energy consumption during production.


NOTABLE PROJECT S 2014/2015

OPPOSITE PAGE: BotswanaSolution: Rockfall ProtectionProduct: Steelgrid®

LEFT: MalaysiaSolution: Hydraulic WorksProduct: Reno Mattress®

BELOW LEFT: BrazilSolution: Soil ReinforcementProduct: Green Terramesh® & MacGrid® WG

BELOW RIGHT: TurkeySolution: Soil ReinforcementProduct: Terramesh®

Versatile and cost efficient solutionsTailored to solve your problems


INNOVATIO N, RESEARCH & DEVELO PME N T

To meet the challenges of the future, we have a very strong asset to rely on: 130 years of documented history, starting from Raffaele Maccaferri’s stroke of genius who in 1879 invented the modern Gabion, all the way to the current worldwide network operating in multiple markets. Today we are the undisputed leader in the manufacturing and supply of gabions and associated wire mesh products to the global construction industry.

Inspired by the ambition to solve even more complex problems, our expansion goes on: today we produce a wide range of geosynthetics including geogrids and geocomposites in numerous factories around the world. We are always striving for innovation in terms of solutions and products and our successful evolution stems from a strategic factor: knowledge.

Accordingly, in late 2014, we created a centre of excellence entirely dedicated to Research and Development: we selected Bolzano. It is here that the Maccaferri Innovation Center was born. Here, we develop the next generation of Maccaferri products and also to cultivate the best innovation and support to our clients.


FINANCI AL PERFORMAN CE

Despite having been in business for nearly 140 years, we are never complacent about our future. We have delivered 7 year revenue growth of 8% CAGR and EBITDA growth of 11% CAGR.

We have strong, balanced and profitable business lines with clear product diversification. Our global presence and solution portfolio helps mitigate the financial risks of localised downturns.

NAFTA7%

WesternEurope

32%

Rest of EMEA14%

Latin America

29%

AsiaPacific

18%

EMEA46%

Revenue breakdown by macro area 2015

By country of destination

35

30

25

20

15

10

5

02010 2011 2012 2013 2014 2015

18% 21%

50%43%

21%

59%

7 8

26

20

10

30

Net cash flow from operating activities (NCFO) NCFO/EBITDA %

Operating cash flow

2009 2010 2011 2012 2013 2014 2015

26

39 39

5147 48 50

EBITDA and margin (€ millions)

8.3% 10% 8.4% 10.6% 9.7% 10.4% 10%

CAGR: 11%

€503m

158195

262313

374318

393

463487 486

459503

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

12 year historical revenues (€ millions) Solution portfolio Total 2015 revenue: €503m

31%

10%

32%

27%

Double twist steel wire mesh products

Geosynthetics

Rockfall and natural hazard protection

Other products and services

EBITDA/Rev (%)

Maccaferri’s motto is ‘Engineering a Better Solution’; We do not merely supply products, but work in partnership with our clients, offering technical expertise to deliver versatile, cost effective and environmentally sound solutions. We aim to build mutually beneficial relationships with clients through the quality of our service and solutions.

Engineering a Better Solution

Officine Maccaferri S.p.A.Via J.F. Kennedy, 1040069 Zola Predosa (Bologna) - ItalyT: +(39) 051 643 6000F: +(39) 051 643 6201E: [email protected]

MACCAFERRI APPLICATIONS

OFFICINE MACCAFERRI GROUP PROFILEFounded in 1879, Officine Maccaferri soon became a technical reference in the design and development of solutions for erosion control and retaining structures.

Since then, through technological innovation, geographical expansion and focussed diversification, Maccaferri now offers solutions at a global level for a wide range of civil and environmental engineering applications.

ORGANISATIONAL STRUCTUREOfficine Maccaferri is at the heart of the Maccaferri Industrial Group. Its continued growth is based upon long-held values of innovation, integrity, excellent service and respect for the environment.

Maccaferri’s vision is to become a leading international provider of advanced solutions to the civil engineering and construction market. With nearly 3000 employees, over 30 manufacturing facilities and local operations in 100 countries around the world, Maccaferri can truly claim to have a global presence with local focus.

RETAINING WALLS & SOIL REINFORCEMENT

HYDRAULIC WORKS

ROCKFALL PROTECTION & SNOW BARRIERS

EROSION CONTROL

SOIL STABILISATION & PAVEMENTS

BASAL REINFORCEMENT

COASTAL PROTECTION, MARINE STRUCTURES & PIPELINE PROTECTION

ENVIRONMENT, DEWATERING & LANDFILLS

DRAINAGE OF STRUCTURES

TUNNELLING+

LANDSCAPE & ARCHITECTURE

SAFETY & NOISE BARRIERS

FENCING & WIRE

AQUACULTURE NETS/CAGES

CONCRETE FLOORING, PRECAST & OTHER USES+

USARockfallNew Jersey€1.5m

MEXICOVeracruz€1m

PANAMAGUPC€3.9m

BOLIVIAGSY€13.5m

ITALIAVariante di Valico>€1m

TURKEYStar Refinery€4.8m

KSANomas€0.9m

OMANRockfall€1m

INDIASonprayag€1.8m

INDIAKannur Int. Airport, Kerala€2m

INDIARockfallMSRDC€4.1m(Gangapath) Navajuga€0.8m

CHINARiver Protection€11m

MALAYSIAACBM€0.7m

Documents

Engineering a Better Solution - Maccaferri