Prysmian S.p.a. · MIL:PRY
Prysmian — 9M 2020 Earnings Presentation
26 slides from Prysmian's earnings presentation, Oct 29, 2020
Slide 1: 9M 2020 Financial Results
9M 2020 Financial Results MILAN – October 29th, 2020
Slide 2: 9M 2020 Highlights
9M 2020 Highlights Organic sales ex Projects at -9.4%, (-5.2% in Q3) mainly explained by: • Telecom (-16.9%): expected weakness, worsened by COVID-19 impacts, with improving trend in Q3 (North America) Organic sales growth • T&I (-13.3%) heavily affected by the pandemic especially in Q2, with a sequ
Slide 3: Agenda
Agenda 9M 2020 Financial Appendix Highlights Results Group overview 3
Slide 4: Financial Highlights
Financial Highlights | Euro Millions, % on Sales Sales Adjusted EBITDA (1) -10.1%* 8,635 773 7,488 647 8.9% 8.6% 9M 2019 9M 2020 9M 2019 9M 2020 * Organic growth Reported Operative Net Working Capital (2) Reported Net Financial Debt 1,642 3,027 2,669 1,216 2,140 749 6.5% 14.7% 12.1% DEC-19 SEPT-19 S
Slide 5: Sales & Adj. EBITDA by Business
Sales & Adj. EBITDA by Business | Euro Millions, % on Sales, Projects Energy Telecom TOTAL 1,247 1,056 -13.9% 6,098 5,385 -7.8% -4.2% 1,290 1,047 -16.9% 8,635 7,488 -10.1% -14.1% -10.0% -6.5% Sales Sales E&I Industrial & NWC 4,060 3,559 -8.6% 1,858 1,673 -7.0% -4.4% -4.1% 773 238 150 230 152 224 647
Slide 6: 2020 Organic growth excluding Projects segment
2020 Organic growth | excluding Projects segment Q1 Q2 Q3 EMEA NORTH AMERICA 3.3% -4.4% -7.4% ASIA PACIFIC -6.2% -18.1% -14.6% -9.7% -9.2% GROUP -20.5% -33.4% -10.4% Of which -5.4% +3.2% -5.2% China LATIN AMERICA -0.9% -17.0% -13.4% -27.3% 6 Q3 organic growth including Projects segment: Group -6.5%;
Slide 7: E&I Trading update | Monthly Volume Evolution
E&I Trading update | Monthly Volume Evolution 150 2019 150 2020 100 100 50 Jan Mar May Jul Sep 150 50 NORTHERN EUROPE Jan Mar May Jul Sep 150 UK 100 150 100 100 50 Jan Mar May Jul Sep 50 NORTH AMERICA Jan Mar May Jul Sep 50 CEE 150 Jan Mar May Jul Sep SOUTH EUROPE 150 100 100 150 50 50 150 Jan Mar M
Slide 8: Sales & Adj. EBITDA by Geography
Sales & Adj. EBITDA by Geography | Euro Millions, % on Sales EMEA NORTH AMERICA LATIN AMERICA ASIA PACIFIC TOTAL 4,010 -10.3% 2,355 -6.1% 531 -14.4% 592 -12.7% 7,488 -9.4% 9M 2020 9M 2020 Sales Sales 372 47 773 285 293 69 37 273 20 647 44 12 Adj. Ebitda Adj. Ebitda 8.1% 6.8% 10.9% 12.5% 10.1% 8.2% 6
Slide 9: The Sustainable Resilience of the Energy Business
The Sustainable Resilience of the Energy Business Sales LTM Adj.Ebitda LTM Adj.Ebitda margin -770 €M 505 506 478 484 469 Improved business mix 442 8,084 7,314 398 372 Balanced geographical presence LTM SEPT LTM SEPT 2019 2020 Prompt and effective cost management Adj. EBITDA Adj. EBITDA margin 6.4% 6
Slide 10: Integration completed ahead of time: the Value of General Cable
Integration completed ahead of time: the Value of General Cable Sales breakdown* Adj. EBITDA breakdown* Improving geographical balance LatAm 7% LatAm 9% Complementary product mix EMEA EMEA North America 44% 54% 31% North America 41% Delivering Cross selling synergies APAC 8% APAC 6% Sound Value Crea
Slide 11: Agenda
Agenda 9M 2020 Financial Appendix Highlights Results Group overview 11
Slide 12: Profit and Loss Statement
Profit and Loss Statement | Euro Millions 9M 2020 9M 2019 SALES 7,488 8,635 Adj. EBITDA Bridge YoY total growth (13.3%) YoY organic growth (10.1%) Q1 Q2 Q3 9M Adj.EBITDA 647 773 ADJ. EBITDA 2019 231 290 252 773 % on sales 8.6% 8.9% Projects (3) (14) (5) (22) of which share of net income 15 22 Energy
Slide 13: Profit and Loss Statement
Profit and Loss Statement | Euro Millions 9M 2020 9M 2019 SALES 7,488 8,635 YoY total growth (13.3%) YoY organic growth (10.1%) Adj.EBITDA 647 773 % on sales 8.6% 8.9% of which share of net income 15 22 Financial Charges Adjustments (46) (62) EBITDA 601 711 9M 2020 9M 2019 % on sales 8.0% 8.2% Net i
Slide 14: Statement of financial position (Balance Sheet)
Statement of financial position (Balance Sheet) | Euro Millions 30 Sept 2020 30 Sept 2019 31 Dec 2019 Net fixed assets 5,035 5,290 5,301 of which: goodwill 1,548 1,618 1,590 Net working capital 1,260 1,627 755 of which: derivatives assets/(liabilities) 44 (15) 6 of which: Operative Net working capit
Slide 15: Cash Flow
Cash Flow | Euro Millions Net debt evolution LTM +617 €M Free Cash Flow ( 811 ) 106 82 117 (9) 71 85 ( 369 ) 279 18 73 3,027 2,669 30-Sep-19 Cash flow WC WL Restruct & Net Financial Paid Dividend Dividend IFRS 16 Other 30-Sep-20 operations changes impact integration Operative Charges income received
Slide 16: Agenda
Agenda 9M 2020 Financial Appendix Highlights Results Group overview 16
Slide 17: Performance by Segment
Performance by Segment | Euro Millions, % on Sales 9M 2019 9M 2020 17.8% 15.5% Adj. EBITDA Margin 12.2% 12.3% 8.0% 7.8% 8.9% 8.6% 5.9% 6.3% Project E&I Industrial & NWC. Telecom Total 9M 2019 9M 2020 ±X.X% = Sales Organic Trend Adj. EBITDA (€M) / % Org. Growth -10.1% 773 647 -13.9% -8.6% -7.0% -16.9
Slide 18: Cash Flow Statement
Cash Flow Statement | Euro Millions 12 Months 30 Sept 2020 30 Sept 2019 (from 1/10/2019 to 30/9/2020) Adj.EBITDA 647 773 881 Adjustments (46) (62) (84) EBITDA 601 711 797 Net Change in provisions & others (91) (104) (60) Share of income from investments in op.activities (15) (22) (17) Cash flow from
Slide 19: Financial Highlights
Financial Highlights | Euro Millions Sales Adj.EBITDA 9M 2020 9M 2019 9M 2020 9M 2019 organic Adj.EBITDA Adj.EBITDA €M €M €M €M growth Margin Margin PROJECTS 1,056 -13.9% 1,247 130 12.3% 152 12.2% Energy & Infrastructure 3,559 -8.6% 4,060 224 6.3% 238 5.9% Industrial & Network Components 1,673 -7.0%
Slide 20: Bridge Consolidation Sales
Bridge Consolidation Sales | Euro Millions Projects Energy & Infrastructure ( 174 ) ( 349 ) ( 66 ) (5) (12 ) ( 86 ) Org.growth Org.growth Total Consolidated 1,247 1,056 4,060 -8.6% 3,559 -13.9% 9M 2019 Organic Metal Exchange 9M 2020 ( 870 ) ( 117 ) (160 ) 9M 2019 Organic Metal Exchange 9M 2020 Growt
Slide 21: Prysmian Group Liquidity and Debt Profile
Prysmian Group Liquidity and Debt Profile COMFORTABLE LIQUIDITY POSITION: • Cash on balance at September end of around 500 €M plus 1 €Bn of committed Revolving Credit Facility fully unutilized and 400 €M of uncommitted credit lines • Average debt maturity of 2.6 years with no refinancing needs befor
Slide 22: Energy Transition | Prysmian awarded approx. 50% of the overall German HV projects
Energy Transition | Prysmian awarded approx. 50% of the overall German HV projects SuedOstLink ▪ Client: TenneT TSO GmbH Prysmian awarded 1,100 km cable ▪ Type of cable: 525 kV extruded €500 million 5 lots contract; ▪ Completion date: early 2026 ~50% of project A-Nord ▪ Client: AMPRION GmbH Prysmian
Slide 23: Driving innovation in a reliable and sustainable manner
Driving innovation in a reliable and sustainable manner TWO 525 kV HVDC P-Laser advantages Technologies Sustainable Higher Faster Performance Operations XLPE Prysmian developed world class competences and expertise in Sustainable: 100% recyclable, 40% lower CO2 emissions HVDC over the last 10yr inno
Slide 24: Notes
Notes (1) Adjusted excluding restructuring, non-operating income/expenses and non-recurring income / expenses; (2) Defined as NWC excluding derivatives; % on annualized last quarter sales; Share of net income include Management estimate of YOFC Q3 results. FY 2020 guidance assumes no material change
Slide 25: Disclaimer
Disclaimer • The managers responsible for preparing the company's financial reports, A.Brunetti 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 i
Slide 26: Thank you
Thank you prysmiangroup.com