Prysmian S.p.a. · MIL:PRY
Prysmian — Prysmian S.P.A. Ord — 9M 2024 Earnings Presentation
34 slides from Prysmian's earnings presentation, Oct 31, 2024
Slide 1: Connect, To Lead: 9M 2024 Integrated Results
9M 2024 INTEGRATED RESULTS CONNECT, TO LEAD 31.10.2024
Slide 2: Highlights & Group Overview
9M 2024 INTEGRATED RESULTS HIGHLIGHTS & GROUP OVERVIEW
Slide 3: 9M 2024 Key Highlights
9M 2024 KEY HIGHLIGHTS Margin improvement & positive organic growth in Q3 (+1.8%). Strong cash generation LTM Adj. EBITDA 3Q 10.7% 1,409 11.9% ADJ. EBITDA 11.4% 15.7% margin €M 540 Adj. EBITDA Adj. EBITDA Margin % of recycled content 408 Digital Solutions Electrification Power Grid 619 979 -36% Tran
Slide 4: Capital Markets Day 2025
CAPITAL MARKETS DAY 2025 CMD Presentation March 26th, 2025 New York City Encore Wire Site Visit March 27th, 2025 Mckinney, TX For information, please contact: capitalmarketsday@prysmian.com 4
Slide 5: Transmission: Outstanding Margin Improvement & Long Visibility
TRANSMISSION OUTSTANDING MARGIN IMPROVEMENT & LONG VISIBILITY Solid execution and projects with better margin. Firm backlog and selective approach in a growing market Q3 RESULTS 9M RESULTS SALES ADJUSTED EBITDA 1,524 1,687 SALES Org. Growth 14.0% 15.3% Adj. Ebitda Org. Growth margin 12.4% 14.4% ADJ.
Slide 6: Power Grid: Sound Results Sustained by Solid Market Trends
POWER GRID SOUND RESULTS SUSTAINED BY SOLID MARKET TRENDS Q3 RESULTS 9M RESULTS SALES ADJUSTED EBITDA 2,624 2,680 SALES Org. Growth 12.3% 13.6% Adj. Ebitda Org. Growth margin 10.9% 13.3% ADJ. EBITDA margin 852 878 119 105 357 287 ADJ. EBITDA 3Q 2023 3Q 2024 3Q 2023 3Q 2024 9M 2023 9M 2024 Euro Milli
Slide 7: Industrial & Construction: Margin Step Up Due to Encore Wire
INDUSTRIAL & CONSTRUCTION MARGIN STEP UP IN Q3 DUE TO ENCORE WIRE CONSOLIDATION Q3 RESULTS 9M RESULTS SALES ADJUSTED EBITDA 3,732 4,336 SALES Org. Growth 9.4% 11.5% Adj. Ebitda Org. Growth margin 10.7% 10.0% ADJ. EBITDA margin 1,836 211 435 399 1,162 109 ADJ. EBITDA 3Q 2023 3Q 2024 3Q 2023 3Q 2024 9
Slide 8: Specialties: Overall Stable Results
SPECIALTIES OVERALL STABLE RESULTS. Q3 IMPACTED BY AUTOMOTIVE Q3 RESULTS 9M RESULTS SALES ADJUSTED EBITDA 2,449 2,320 SALES Org. Growth 10.6% 9.4% Adj. Ebitda Org. Growth margin 10.5% 10.8% ADJ. EBITDA margin 807 768 86 72 256 251 ADJ. EBITDA 3Q 2023 3Q 2024 3Q 2023 3Q 2024 9M 2023 9M 2024 Euro Mill
Slide 9: Digital Solutions: Sequential Improvement Confirmed in Q3
DIGITAL SOLUTIONS SEQUENTIAL IMPROVEMENT CONFIRMED IN Q3 Long term growth sustained by solid market trends Q3 RESULTS 9M RESULTS SALES ADJUSTED EBITDA 1,191 985 SALES Org. Growth 10.5% 13.7% Adj. Ebitda Org. Growth margin 13.6% 12.3% ADJ. EBITDA margin 45 334 329 162 35 121 ADJ. EBITDA 3Q 2023 3Q 20
Slide 10: 9M 2024: ESG Highlights
9M 2024: ESG HIGHLIGHTS Committed to deliver SDGS SDGS KPI FY FY 2023 2023 9M 1Q 2024 % of reduction of Scope 1&2 GHG Emissions -33% -36% vs baseline 2019 % of revenues linked to sustainable products 37% 45% % of recycled content on PE jacket and copper 12.7% 15.7% % of Executive women 18.8% 19.5% %
Slide 11: Financial Results
9M 2024 INTEGRATED RESULTS FINANCIAL RESULTS Pier Francesco Facchini Prysmian CFO
Slide 12: Profit & loss statement
Profit & loss statement 9M 2024 9M 2023 ADJ. EBITDA BRIDGE SALES 12,362 11,825 YoY organic growth (1.4%) Adj.EBITDA 1,409 1,286 % on sales 11.4% 10.9% Q1 Q2 Q3 9M Adj.EBIT 1,104 1,019 ADJ. EBITDA 2023 427 451 408 1,286 % on sales 8.9% 8.6% Transmission 8 26 19 53 Adjustments (100) (94) Power Grid 42
Slide 13: Strong cash generation LTM
Strong cash generation LTM 979 €M Free Cash Flow 4,089 ( 565 ) ( 1,302 ) 224 85 ( 16 ) 200 817 ( 563 ) 5,042 2,073 30-Sep-23 EW Convertible Cash flow WC Net Financial Dividend Dividend IFRS 16, FX, 30-Sep-24 net debt acquisition Bonds, Share operations changes Operative Charges received paid Other n
Slide 14: Outlook & Closing Remarks
9M 2024 INTEGRATED RESULTS OUTLOOK & CLOSING REMARKS
Slide 15: Outlook 2024 Confirmed
OUTLOOK 2024 CONFIRMED FY 2024 Prysmian + H2 2024 Encore Wire ADJ. EBITDA 1,925 2024 TARGET (€M) 1,900 1,950 Mid-point FCF 2024 880 TARGET (€M) 840 920 Mid-point GHG EMISSIONS Scope 1&2 -36% 2024 vs. 2019 Scope 3 -13% 15
Slide 16: Closing Remarks
CLOSING REMARKS 1. Excellent performance in Transmission and Power Grid 2. Strategic and impactful role of Encore Wire integration 3. Strong cash generation 4. Strong set of results and impactful acquisition set the scene for a solid mid term growth 16
Slide 17: Appendix
Appendix Oo prysmian v7
Slide 18: Financial highlights
Financial highlights Sales Adj.EBITDA 9M 2024 9M 2023 9M 2024 9M 2023 organic Adj.EBITDA Adj.EBITDA €M €M €M €M growth Margin Margin TRANSMISSION 1,687 12.3% 1,524 242 14.4% 189 12.4% POWER GRID 2,680 1.8% 2,624 357 13.3% 287 10.9% INDUSTRIAL & CONSTRUCTION 4,336 -1.4% 3,732 435 10.0% 399 10.7% SPEC
Slide 19: Sales at standard metal prices
Sales at standard metal prices Sales current Sales Standard Sales Adj. Ebitda Adj. Ebitda Sales Adj. Ebitda Adj. Ebitda €M €M margin €M €M margin TRANSMISSION 1,687 242 14.4% 1,674 242 14.5% POWER GRID 2,680 357 13.3% 2,396 357 14.9% ELECTRIFICATION 7,010 689 9.8% 5,830 689 11.8% 9M I&C 4,336 435 10
Slide 20: Profit & loss statement
Profit & loss statement Adjustments and non monetary items on EBIT 9M 2024 9M 2023 SALES 12,362 11,825 9M 2024 9M 2023 YoY total growth 4.5% Non-recurring Items (7) (7) YoY organic growth (1.4%) Restructuring (59) (25) Adj.EBITDA 1,409 1,286 % on sales 11.4% 10.9% Other Non-operating Income / (Expen
Slide 21: Statement of financial position (balance sheet)
Statement of financial position (balance sheet) 30 Sept 2024 30 Sept 2023 31 Dec 2023 Net fixed assets 9,155 5,717 5,709 of which: goodwill 4,207 1,700 1,660 Net working capital 1,887 1,658 518 of which: derivatives assets/(liabilities) 121 (11) (7) of which: Operative Net working capital 1,766 1,66
Slide 22: Cash flow statement
Cash flow statement 30 Sept 2024 30 Sept 2023 12 Months (from 1/10/2023 to 30/9/2024) Adj.EBITDA 1,409 1,286 1,751 Adjustments (100) (94) (149) EBITDA 1,309 1,192 1,602 Net Change in provisions & others (30) 53 (1) Share of income from investments in op.activities (31) (29) (35) Cash flow from opera
Slide 23: Group Financial Structure
GROUP FINANCIAL STRUCTURE CURRENT FINANCIAL DEBT MATURITY PROFILE (M€) (5) Fixed/Variable rate composition Fixed Average debt maturity of 3 years (including Revolving Credit Facility) ~53% SUST. LINKED RCF 2023 Variable ENCORE 700 ~47% WIRE (undrawn) Bridge Loan + 300 1,928 (drawn) SUST. ENCORE LINK
Slide 24: Bridge consolidation sales
Bridge consolidation sales TRANSMISSION POWER GRID INDUSTRIAL & CONSTRUCTION ( 17 ) ( 7) 48 18 ( 10 ) 187 589 ( 54 ) 69 Org.growth 1,687 2,624 Org.growth 2,680 Org.growth 4,336 1,524 12.3% 1.8% 3,732 -1.4% 9M 2023 Organic Metal Exchange 9M 2024 9M 2023 Organic Metal Exchange 9M 2024 9M 2023 Organic
Slide 25: Our sustainability journey rooted in the past
Our sustainability journey rooted in the past BUILDING TOMORROW’S SUSTAINABILITY FIRST INTEGRATED REPORT Optical cable FlexRibbon SBTI APPROVAL 2023 TCFD REPORT 6912 fibers BOARD 2022 SUSTAINABILITY COMMITTEE INCLUSION OF ESG IN 2021 MV P-Laser REMUNERATION • Submarine 525 kV FIRST 2020 • E3X robot
Slide 26: Climate change ambition well on track
CLIMATE CHANGE AMBITION WELL ON TRACK Confirmed commitment to decarbonization path while including Encore Wire in the perimeter -13% -28% Prysmian -36% EW In line with 1.50C Scope 3 trajectory from -47% approved by SBTi -55-60% well below 20C pathway Carbon emissions reduction (%) Scope 1&2 2024 203
Slide 27: A truly public company, based on inclusion
A truly public company, based on inclusion PRYSMIAN SHAREHOLDING STRUCTURE INSTITUTIONAL INVESTORS 3% Employees incl. Management 8.1% Retail 1.4% Treasury shares 49% ESG investors US 30% UK 28% France 12% 87.5% Rest of EU 13% Italy 7% Germany 4% Institutional Investors Sweden 2% RoW 4% 27
Slide 28: We innovate to support our customers
We innovate to support our Sirocco Extreme customers and E3X Robot to go beyond the value chain Circular economy Alesea Megawatt charging solutions Product Supply chain design digitalization Smart accessories PRY-ID All Ground Selection of innovative solutions 28
Slide 29: Sustainability also means equity and inclusion
Sustainability also means equity and inclusion 45-50% Employees holding shares by 2027 35-37 Training hours for employee +500 Women in STEM by 2027 29
Slide 30: Promoting talent within under-privileged communities
Promoting talent within under-privileged communities 1,400+ Children 400+ Women and young girls 315 women and 625 children in the 100 women and 800 young girls in LATAM Netherlands children in Oman 30
Slide 31: Sustainability development goals
Sustainability development goals 20 40 60 80 100 CCC B BB BBB A AA AAA 20 40 60 80 100 80 A 76 1 2 3 4 5 20 40 60 80 100 10 20 30 40 We are included in 4.0 65 13 200 150 100 50 1 20 40 60 80 100 D- D C- C B- B A- A 58 58 A- 31
Slide 32: Notes
Notes 1) FCF excluding Acquisitions & Disposals and Antitrust 6) Slide 24: The Prysmian Total includes “other impact; Electrification”, which is not shown due to its small 2) Adjusted EBITDA: EBITDA excluding restructuring, sum. non-operating income/expenses and non-recurring income / expenses 3) Sl
Slide 33: Disclaimer
Disclaimer ▪ The managers responsible for preparing the represent investment advice or a recommendation company's financial reports, A.Brunetti and for the purchase or sale of financial products and/or S.Invernici, declare, pursuant to paragraph 2 of of any kind of financial services. Finally, this
Slide 34: Thank You
THANK YOU The planet’s pathways