Prysmian S.p.a. · MIL:PRY
Prysmian — Q1 2013 Earnings Presentation
25 slides from Prysmian's earnings presentation, May 9, 2013
Slide 1: Q1 2013 Financial Results
Q1 2013 Financial Results Milan, 9th May 2013 Q1 2013 Financial Results 1
Slide 2: Agenda
AGENDA Q1 2013 Highlights & FY 2013 Outlook Financial Results Appendix Q1 2013 Financial Results 2
Slide 3: Q1 2013 Key Financials
Q1 2013 Key Financials Euro Millions, % on Sales Sales Adjusted EBITDA (3) Adjusted EBIT (4) -1.8%* 647 7,973 7,848 586 483 435 -7.6%* 1,874 1,711 130 115 91 77 2011(1) 2012 Q1'12 Q1'13 2011(1) 2012 Q1'12 Q1'13 2011(1) 2012 Q1'12 Q1'13 * Org. Growth 7.3% 8.2% 6.9% 6.7% 5.5% 6.2% 4.9% 4.5% Adjusted N
Slide 4: Adj. EBITDA bridge
Adj. EBITDA bridge Lower profitability mainly due to Telecom and cyclical business in Europe Adj. EBITDA evolution Euro million 3 (4) (4) ( 11 ) 130 115 * Q1 2012 Utilities T&I Industrial Telecom Q1 2013 T&I Renewables N.& S. America Org.growth Org.growth 11% of Org.growth Industrial Sales -11.7% -4
Slide 5: Utilities
Utilities Euro Millions, % on Sales Sales to Third Parties Highlights DISTRIBUTION +1.1%* • Limited organic decrease in Q1 with respect to a low comparable basis in 2,318 2,287 PY. No signs of demand recovery in Europe • Lower profitability driven by volume reduction and tough price competition part
Slide 6: Trade & Installers
Trade & Installers Euro Millions, % on Sales Sales to Third Parties Highlights • Significant downturn in European demand vs 2012. New bottom in several -2.6%* countries (partially due to unfavourable weather conditions) from already 2,233 2,159 low volumes in 2012 • Europe: double digit volume decli
Slide 7: Industrial
Industrial Euro Millions, % on Sales Sales to Third Parties Highlights OGP -1.5%* • Lower sales in Q1 due to investments decrease in on-shore application 1,824 partially offset by off-shore. Better sales mix (higher margin in off-shore) 1,801 supporting profitability SURF • Low start of the year for
Slide 8: Telecom
Telecom Euro Millions, % on Sales Sales to Third Parties Highlights -3.5%* • Sales and profitability decrease in Q1 mainly due to sharp drop of optical cables in North and South America (compared to extremely high volumes 1,431 1,466 of H1’12). Further strong decrease in Copper cables Optical / Fibe
Slide 9: Telecom – Solid drivers in optical confirmed despite low start of the year
Telecom – Solid drivers in optical confirmed despite low start of the year Growing investments expected in South America, EMEA and APAC Global optical cables demand 19% -5% +23% Prysmian 2015 vs. 2012 Sales* Market Growth 33% North America Prysmian +28% 2015 vs. 2012 Sales* Market Growth 37% EMEA Pr
Slide 10: 2013 Outlook – Profitability recovery expected next quarters
2013 Outlook – Profitability recovery expected next quarters Leverage on additional synergies and transmission to face new bottom in cyclical businesses FY 2013 Adj.EBITDA Target (€ mln) 600 650 H1 2013E H2 2013E • Worsening of cyclical 339 • Continuous weakness businesses in Europe in European cycl
Slide 11: Synergies target increased – Increasing efforts on production rationalization
Synergies target increased – Increasing efforts on production rationalization New upgrade in synergies plan with additional actions to face the continuous downturn Update on Synergies Plan 2011-15 Overheads (Fixed costs) Euro million Procurement ~175 • Strong Operations ~150 decrease in 125-150 cycl
Slide 12: Key commercial initiatives in Industrial and Telecom
Key commercial initiatives in Industrial and Telecom Leverage on global product portfolio to increase sales and profitability Industrial: ~ +€240m sales by 2015 Telecom: ~ +€190m sales by 2015 CAGR ’12-’15 driven by new initiatives: ~ +4%* CAGR ’12-’15 driven by new initiatives: ~ +4%* OEMs OEMs •Cr
Slide 13: Agenda
AGENDA Q1 2013 Highlights & FY 2013 Outlook Financial Results Appendix Q1 2013 Financial Results 13
Slide 14: Profit and Loss Statement
Profit and Loss Statement Euro Millions Q1 2013 Q1 2012 FY 2012 Sales 1,711 1,874 7,848 YoY total growth (8.7%) YoY organic growth (7.6%) Adj.EBITDA 115 130 647 % on sales 6.7% 6.9% 8.2% Non recurring items (16) (15) (101) EBITDA 99 115 546 % on sales 5.8% 6.1% 7.0% Adj.EBIT 77 91 483 % on sales 4.5
Slide 15: Extraordinary Effects
Extraordinary Effects Euro Millions Q1 2013 Q1 2012 FY 2012 Antitrust investigation (2) 1 (1) Restructuring (10) (14) (74) Draka integration costs - (1) (9) Other (4) (1) (17) EBITDA adjustments (16) (15) (101) Special items (17) 13 (20) Gain/(loss) on metal derivatives (12) 18 14 Assets impairment
Slide 16: Financial Charges
Financial Charges Euro Millions Q1 2013 Q1 2012 FY 2012 a) a) Net interest expenses (28) (26) (111) Bank fees amortization (3) (2) (10) Gain/(loss) on exchange rates - (1) (29) Gain/(loss) on derivatives (1 ) (13) (1) 18 Non recurring effects (5) - (5) Net financial charges (49) (30) (137) Share in
Slide 17: Statement of financial position (Balance Sheet)
Statement of financial position (Balance Sheet) Euro Millions 31 December 31 March 2013 31 March 2012 2012 Net fixed assets 2,305 2,234 2,311 of which: intangible assets 652 615 655 of which: property, plants & equipment 1,544 1,528 1,543 Net working capital 807 814 479 of which: derivatives assets/
Slide 18: Cash Flow
Cash Flow Euro Millions Q1 2013 Q1 2012 FY 2012 Adj.EBITDA 115 130 647 Non recurring items (16) (15) (101) EBITDA 99 115 546 Net Change in provisions & others (27) (12) (1) Cash flow from operations (before WC changes) 72 103 545 Working Capital changes (351) (243) 75 Paid Income Taxes (13) (15) (74
Slide 19: Agenda
AGENDA Q1 2013 Highlights & FY 2013 Outlook Financial Results Appendix Q1 2013 Financial Results 19
Slide 20: Bridge Consolidated Sales
Bridge Consolidated Sales Euro Millions Total Consolidated -7.6% ( 143 ) (4 ) ( 27 ) 11 1,874 1,700 1,711 Q1 2012 Org.Growth Metal Effect Exchange Rate Q1 2013 L-f-L Perimeter effect Q1 2013 Energy Cables & Systems Division -5.2% ( 80 ) (3 ) ( 21) (6) 1,528 1,424 1,418 Q1 2012 Org.Growth Metal Effec
Slide 21: Energy Segment – Profit and Loss Statement
Energy Segment – Profit and Loss Statement Euro Millions Q1 2013 Q1 2012 FY 2012 Sales to Third Parties 1,418 1,528 6,382 YoY total growth (7.2%) YoY organic growth (5.2%) Adj. EBITDA 91 95 487 % on sales 6.4% 6.2% 7.6% Adj. EBIT 66 68 379 % on sales 4.6% 4.5% 5.9% Q1 2013 Financial Results 21
Slide 22: Energy Segment – Sales and Profitability by business area
Energy Segment – Sales and Profitability by business area Euro Millions, % on Sales Total Organic Q1 2013 Q1 2012 growth growth Sales to Third Parties Utilities 491 489 0.5% 2.3% Trade & Installers 470 541 (13.2%) (11.7%) Industrial 429 464 (7.6%) (4.9%) Others 28 34 n.m. n.m. Total Energy 1,418 1,5
Slide 23: Telecom Segment – Profit and Loss Statement
Telecom Segment – Profit and Loss Statement Euro Millions Q1 2013 Q1 2012 FY 2012 Sales to Third Parties 293 346 1,466 YoY total growth (15.4%) YoY organic growth (18.3%) Adj. EBITDA 24 35 160 % on sales 8.3% 10.0% 10.9% Adj. EBIT 11 23 104 % on sales 3.8% 6.5% 7.1% Q1 2013 Financial Results 23
Slide 24: Reference Scenario
Reference Scenario Commodities & Forex Brent Copper Aluminium Brent $/ton Copper $/ton Aluminium $/ton Brent €/ton 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 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12 Jan-13 Jan-08 Jan-09 J
Slide 25: 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