Prysmian S.p.a. · MIL:PRY
Prysmian — H1 2015 Earnings Presentation
29 slides from Prysmian's earnings presentation, Jul 30, 2015
Slide 1: H1 2015 Financial Results
H1 2015 Financial Results Milan – July 30th 2015
Slide 2: Agenda
Agenda H1 2015 Highlights o Group overview o Results by business o Outlook Financial results Appendix H1 2015 Financial Results 2
Slide 3: H1 2015 Highlights
H1 2015 Highlights H1 organic growth excl. WL impact at 7.0% (7.6% incl. WL impact) enhanced by a 8.0% Q2 organic growth (9.1% incl. WL impact) Adj. EBITDA at € 315m excl. WL (8.3% of sales; € 314m incl. WL at 8.4% of sales) driven by: Continued solid growth in the Projects (+17.4% organically
Slide 4: Western Link effect: new financial impact 2015-2016
Western Link effect: new financial impact 2015-2016 Euro 35 Millions project’s result improvement Previous Financial Impact on Adj. Ebitda (€m) 17 94 56 Proj. loss 24 150 167 anticip. ’14 margin 94 cancelation 70 2014 Actual 2015 Prev 2016 Prev Prev Total impact Impact Impact WL effect Highlights an
Slide 5: H1 2015 Key Financials
H1 2015 Key Financials Euro Millions, % on Sales Sales Adjusted EBITDA (1) Excl. WL Excl. WL 6,901 603 6,840 509 +7.6%* +7.0%* 3,737 3,795 314 315 3,287 3,358 278 204 7.4% 6.2% 8.4% 8.7% 8.3% 8.3% 2014 H1'14 H1'15 2014 H1'14 H1'15 2014 H1'14 H1'15 2014 H1'14 H1'15 * Org. Growth Operative Net Working
Slide 6: H1 Organic Growth by business and LTM Adj. EBITDA evolution
H1 Organic Growth by business and LTM Adj. EBITDA evolution Profitability increase driven by Energy Projects, Telecom & E&I. Forex impact still positive Excl. WL Excl. WL Organic Growth % +21.7% +17.4% +13.1% +7.6% +7.0% +5.3% -2.0% H1’15 H1’15 H1’15 H1’15 H1’15 H1’15 H1’15 Energy Projects E&I Indus
Slide 7: Agenda
Agenda H1 2015 Highlights o Group overview o Results by business o Outlook Financial results Appendix H1 2015 Financial Results 7
Slide 8: Energy Projects
Energy Projects Euro Millions, % on Sales Sales Highlights Excl. WL Submarine 1,416 1,355 • Market remains solid in Europe, mainly driven by Interconnections projects. +21.7%* +17.4%* 797 • Order book at peak levels. 739 660 589 • Recovery of the WL project ahead of expectations: • Improved efficien
Slide 9: Transmission backlog at peak level
Transmission backlog at peak level Strong tendering activity in H1 Transmission – Orders Backlog (€m) Major transmission projects awarded in H1 • Kuwait, underground € 50m Submarine High Voltage ~3,500 • Italy-France, underground € 200m • 50 Hertz option (GER), submarine € 230m ~600 ~3,100 ~3,000 •
Slide 10: Energy & Infrastructure
Energy & Infrastructure Euro Millions, % on Sales Sales Highlights 2,677 Trade & Installers • Low single digit organic growth supported by positive trends in some +5.3%* European countries (Spain, UK and Eastern Europe) and robust orders for wind farm in N.A. 1,468 1,316 • Price pressure in Brazil P
Slide 11: Industrial & Network Components
Industrial & Network Components Euro Millions, % on Sales Sales Highlights 1,708 Specialties & OEMs • Overall positive organic growth in H1 -2.0%* • Positive performance in APAC and in Europe, mainly driven by Nuclear 848 897 (France) and Railway. Oil & Gas • Continued weakness of the MRO business.
Slide 12: Telecom
Telecom Euro Millions, % on Sales Sales Highlights Optical, Connectivity & Fiber 994 • Strong organic growth in almost all geographies thanks to FTTH/FTTA national plans and backhaul investments, with prices stable vs. +13.1%* previous year. 578 • Sound demand in the US, Europe (mainly France, Italy
Slide 13: Agenda
Agenda H1 2015 Highlights o Group overview o Results by business o Outlook Financial results Appendix H1 2015 Financial Results 13
Slide 14: FY 2015 Outlook
FY 2015 Outlook New guidance for 2015 FY 2014 Adj.EBITDA (€ million) 2015 Adj.EBITDA Target (€ million) 603 616 Mid-point € 641m 666 Western Link New Western effect on FY’14 Link effect on Adj.EBITDA (€ 94m) (€ 26m) FY’15 Adj.EBITDA 509 590 Mid-point € 615m 640 Assuming current business trends and f
Slide 15: Agenda
Agenda H1 2015 Highlights o Group overview o Results by business o Outlook Financial results Appendix H1 2015 Financial Results 15
Slide 16: Profit and Loss Statement
Profit and Loss Statement Euro Millions WL effect H1 2015 H1 2014 H1’15 vs. H1’14 Sales 3,737 3,287 13 YoY total growth 13.7% (1) in H1’15 YoY organic growth 7.6% (74) in H1’14 YoY organic growth excl. WL 7.0% Adj.EBITDA 314 204 73 % on sales 8.4% 6.2% Adj.EBITDA excl. WL 315 278 - % on sales 8.3% 8
Slide 17: Non Recurring and Special Items on EBIT
Non Recurring and Special Items on EBIT Euro Millions H1 2015 H1 2014 Antitrust (20) 32 Restructuring (33) (7) Price adjustments - 22 Other - (7) EBITDA adjustments (53) 40 Special items (16) 3 Gain/(loss) on metal derivatives (1) 6 Assets impairment (7) - Other (8) (3) EBIT adjustments (69) 43 H1 2
Slide 18: Financial Charges
Financial Charges Euro Millions H1 2015 H1 2014 Net interest expenses (40) (42) of which non-cash conv.bond interest exp. (4) (4) Bank fees amortization (2) (4) Gain/(loss) on exchange rates (16) (4) Gain/(loss) on derivatives 1) 8 (15) Non recurring effects (3) (9) Net financial charges (53) (74) 1
Slide 19: Statement of financial position (Balance Sheet)
Statement of financial position (Balance Sheet) Euro Millions 30 Jun 2015 30 Jun 2014 31 Dec 2014 Net fixed assets 2,268 2,232 2,219 of which: intangible assets 555 587 561 of which: property, plants & equipment 1,447 1,415 1,414 Net working capital 580 751 407 of which: derivatives assets/(liabilit
Slide 20: Cash Flow
Cash Flow Euro Millions H1 2015 H1 2014 FY 2014 Adj.EBITDA 314 204 509 Non recurring items (53) 40 (13) EBITDA 261 244 496 Net Change in provisions & others 8 (75) (53) Share of income from investments in op.activities (18) (15) (43) Cash Flow from operations (bef. WC changes) 251 154 400 Working Ca
Slide 21: Agenda
Agenda H1 2015 Highlights o Group overview o Results by business o Outlook Financial results Appendix H1 2015 Financial Results 21
Slide 22: Bridge Consolidated Sales
Bridge Consolidated Sales Euro Millions Energy Projects Energy Products 25 5 146 127 (2) 59 Org.growth Org.growth 739 +2.7% 2,420 2,210 589 +21.7% H1 2014 Org.Growth Metal Effect Exc. Rate H1 2015 H1 2014 Org.Growth Metal Effect Exc. Rate H1 2015 Telecom Total Consolidated 5 196 249 2 25 63 Org.grow
Slide 23: Profit and Loss Statement
Profit and Loss Statement Euro Millions H1 2015 excl. H1 2015 H1 2014 excl. H1 2014 WL submarine WL submarine H1 2015 WL submarine WL submarine H1 2014 project effect project effect project effect project effect Sales 3,795 (58) 3,737 3,358 (71) 3,287 YoY total growth 13.0% 13.7% YoY organic growth
Slide 24: Energy Projects Segment – Profit and Loss Statement
Energy Projects Segment – Profit and Loss Statement Euro Millions H1 2015 excl. H1 2015 H1 2014 excl. H1 2014 WL submarine WL submarine H1 2015 WL submarine WL submarine H1 2014 project effect project effect project effect project effect Sales to Third Parties 797 (58) 739 660 (71) 589 YoY total gro
Slide 25: Energy Products Segment – Profit and Loss Statement
Energy Products Segment – Profit and Loss Statement Euro Millions H1 2015 H1 2014 E&I 1,468 1,316 YoY total growth 11.6% 0.0% Sales to Third Parties YoY organic growth 5.3% 0.0% Industrial & Netw. Comp. 897 848 YoY total growth 5.7% 0.0% YoY organic growth (2.0%) 0.0% Other 55 46 YoY total growth 19
Slide 26: Telecom Segment – Profit and Loss Statement
Telecom Segment – Profit and Loss Statement Euro Millions H1 2015 H1 2014 Sales to Third Parties 578 488 YoY total growth 18.6% YoY organic growth 13.1% Adj. EBITDA 71 43 % on sales 12.2% 8.8% Adj. EBIT 49 22 % on sales 8.5% 4.5% H1 2015 Financial Results 26
Slide 27: Cost Efficiency plan
Cost Efficiency plan Cumulated Cost Savings (€ million) Organization & Footprint Procurement Organization & Footprint +85 225 175 45 140 45 45 180 130 95 Optmization of European organization & 2014 YTD 2016 Target 2019 Run-rate footprint Cumulated Costs (€ million) Creation of Centers of Operati
Slide 28: Reference Scenario
Reference Scenario Commodities & Forex Brent Copper Aluminium Brent $/bbl Copper $/ton Aluminium $/ton Brent €/bbl Copper €/ton Aluminium €/ton 150 12,000 3,500 125 10,000 3,000 2,500 100 8,000 2,000 75 6,000 1,500 50 4,000 1,000 25 2,000 500 J-08 J-09 J-10 J-11 J-12 J-13 J-14 J-15 J-08 J-09 J-10 J-
Slide 29: Disclaimer
Disclaimer • The managers responsible for preparing the company's financial reports, A.Bott and C.Soprano, declare, pursuant to paragraph 2 of Article 154-bis of the Consolidated Financial Act, that the accounting information contained in this presentation corresponds to the results documented in th