Prysmian S.p.a. · MIL:PRY
Prysmian — 9M 2013 Earnings Presentation
28 slides from Prysmian's earnings presentation, Nov 6, 2013
Slide 1: 9M 2013 Financial Results
9M 2013 Financial Results Milan – November 6th, 2013 9M 2013 Financial Results 1
Slide 2: Agenda
AGENDA 9M 2013 Highlights & FY 2013 Outlook Financial Results Appendix 9M 2013 Financial Results 2
Slide 3: 9M 2013 Key Financials
9M 2013 Key Financials Euro Millions, % on Sales Sales Adjusted EBITDA (3) Adjusted EBIT (4) -1.8%* 647 7,973 7,848 586 483 -3.9%* 435 468 444 5,930 349 329 5,488 2011(1) 2012 9M'12 9M'13 2011 (1) 2012 9M'12 9M'13 2011 (1) 2012 9M'12 9M'13 * Org. Growth 7.3% 8.2% 7.9% 8.1% 5.5% 6.2% 5.9% 6.0% Adjust
Slide 4: Organic Growth and adj. EBITDA evolution
Organic Growth and adj. EBITDA evolution Sales stabilizing at bottom level in Europe. Profitability sustained by synergies and Transmission Organic Growth evolution Adj. EBITDA evolution % change on previous year period Euro million 468 Utilities T&I Industrial Telecom Total 2012 2013 444 7.8% 178 1
Slide 5: Utilities
Utilities Euro Millions, % on Sales Sales to Third Parties Highlights DISTRIBUTION +1.1%* • As expected no signs of recovery in H2’13. Further deterioration in demand 2,318 2,287 due to lower power consumption and weak European construction. Limited -0.8%* margin decrease thanks to on-going cost rat
Slide 6: Utilities – Transmission
Utilities – Transmission Best-in-class technology and reliability as key asset to enhance leadership in high margin projects Adj. EBITDA evolution Sales and Orders Backlog Euro million Euro billion 250 • Over 3y sales visibility 200 • Sound order intake expected in the next 12/18 months Submarine 2.
Slide 7: Trade & Installers
Trade & Installers Euro Millions, % on Sales Sales to Third Parties Highlights -2.6%* • Q3 organic growth and profitability substantially in line with previous year level. Demand and pricing stabilizing at H2’12 level. Slight improvement in 2,233 2,159 profitability thanks to cost reduction -5.1%* •
Slide 8: Industrial
Industrial Euro Millions, % on Sales Sales to Third Parties Highlights OGP -1.5%* • Positive trend in offshore expected to continue next quarters thanks to North 1,824 1,801 +3.0%* Sea, Asean and South America. Declining demand in onshore limiting Oil&gas profitability improvement in 2013 1,371 1,34
Slide 9: SURF – First steps to build up a global business
SURF – First steps to build up a global business South America remains a key priority. Large off-shore explorations in West Africa and Apac 2012 Global oil & gas new discovery volumes by terrain Onshore 10% Shallow Water 10% Deep Water 80% Source: IHS, 2013 Umbilical projects out of Brazil Proven re
Slide 10: Telecom
Telecom Euro Millions, % on Sales Sales to Third Parties Highlights -3.5%* • Double digit sales decrease due to strong volume downturn in North and South America for optical and continuous decrease in Europe for MMS and 1,431 1,466 -14.6%* Copper. Profitability strongly penalized by lower volumes de
Slide 11: Telecom – Tough 2013 due to demand contraction
Telecom – Tough 2013 due to demand contraction in Optical N.&S. America and Copper/Multimedia in Europe Adj. EBITDA evolution Euro million (15) (5) (2) (10) +4 (1) 44 41 35 33 34 24 9M 2013 Financial Results 11
Slide 12: Outlook – FY Target confirmed despite new bottom in cyclicals and weak Telecom
Outlook – FY Target confirmed despite new bottom in cyclicals and weak Telecom Underlying business trend in line with initial expectations. Material negative currency effect in H2 FY 2013 Adj.EBITDA Target (€ mln) 600 650 • FY negative currency effect (mainly BRL, USD, AUD) of approx. €20mln • Trans
Slide 13: Agenda
AGENDA 9M 2013 Highlights & FY 2013 Outlook Financial Results Appendix 9M 2013 Financial Results 13
Slide 14: Profit and Loss Statement
Profit and Loss Statement Euro Millions 9M 2013 9M 2012 FY 2012 Sales 5,488 5,930 7,848 YoY total growth (7.5%) YoY organic growth (3.9%) Adj.EBITDA 444 468 647 % on sales 8.1% 7.9% 8.2% Non recurring items (34) (66) (101) EBITDA 410 402 546 % on sales 7.5% 6.8% 7.0% Adj.EBIT 329 349 483 % on sales
Slide 15: Extraordinary Effects
Extraordinary Effects Euro Millions 9M 2013 9M 2012 FY 2012 Antitrust investigation 3 (3) (1) Restructuring (32) (51) (74) Draka integration costs - (5) (9) Other (5) (7) (17) EBITDA adjustments (34) (66) (101) Special items (30) 12 (20) Gain/(loss) on metal derivatives (12) 30 14 Assets impairment
Slide 16: Financial Charges
Financial Charges Euro Millions 9M 2013 9M 2012 FY 2012 Net interest expenses (77) (82) a) (111) a) of which non cash Conv.Bond interest exp. (4) - - Bank fees amortization (6) (7) (10) Gain/(loss) on exchange rates (12) (25) (29) Gain/(loss) on derivatives (1 ) (14) 18 18 Non recurring effects (5)
Slide 17: Statement of financial position (Balance Sheet)
Statement of financial position (Balance Sheet) Euro Millions 30 Sept 2013 30 Sept 2012 31 Dec 2012 Net fixed assets 2,215 2,248 2,311 of which: intangible assets 639 615 655 of which: property, plants & equipment 1,464 1,533 1,543 Net working capital 855 1,033 479 of which: derivatives assets/(liab
Slide 18: Cash Flow
Cash Flow Euro Millions 9M 2013 9M 2012 FY 2012 Adj.EBITDA 444 468 647 Non recurring items (34) (66) (101) EBITDA 410 402 546 Net Change in provisions & others (51) 4 (1) Cash flow from operations (before WC changes) 359 406 545 Working Capital changes (435) (460) 75 Paid Income Taxes (48) (57) (74)
Slide 19: Agenda
AGENDA 9M 2013 Highlights & FY 2013 Outlook Financial Results Appendix 9M 2013 Financial Results 19
Slide 20: Prysmian Group at a glance
Prysmian Group at a glance 9M 2013 Results Sales breakdown by geography Sales breakdown by business APAC 14% Telecom 17% Utilities Latin 30% America Other 9% 2% € 5.5 bn € 5.5 bn N. America 14% Industrial EMEA 24% 63% T&I 27% Adj. EBITDA by business Adj. EBITDA margin by business Telecom 20% 11.7% U
Slide 21: Cash Flow generation as key priority to create value for shareholders
Cash Flow generation as key priority to create value for shareholders Growing capabilities to invest organically/acquisitions and remunerate shareholders Cash Flow generation 2012 benefited from approx. €100m cash-in (submarine business) expected in 2013 € mln 320 2.4x 240 2.0x 160 1.6x 80 1.2x Appr
Slide 22: Improving operating leverage during the downturn
Improving operating leverage during the downturn Approx. €240m adj.EBITDA reduction from 2007 despite cost rationalization Power Distribution + T&I Adj. EBITDA and Fixed Costs – Euro million 400 Over €35m fixed costs reduction from overheads and operations in FY13E vs. FY11 300 200 100 0 2007 2008 2
Slide 23: Bridge Consolidated Sales
Bridge Consolidated Sales Euro Millions Total Consolidated (3.9%) (228) (99) (163) 48 5,930 5,440 5,488 9M 2012 Org.Growth Metal Effect Exchange Rate 9M 2013 L-f-L Perimeter effect 9M 2013 Energy Cables & Systems Division (1.3%) (64) (92) (135) 33 4,801 4,543 4,510 9M 2012 Org.Growth Metal Effect Ex
Slide 24: Energy Segment – Profit and Loss Statement
Energy Segment – Profit and Loss Statement Euro Millions 9M 2013 9M 2012 FY 2012 Sales to Third Parties 4,543 4,801 6,382 YoY total growth (5.4%) YoY organic growth (1.3%) Adj. EBITDA 353 348 487 % on sales 7.8% 7.3% 7.6% Adj. EBIT 275 268 379 % on sales 6.0% 5.6% 5.9% 9M 2013 Financial Results 24
Slide 25: Energy Segment – Sales and Profitability by business area
Energy Segment – Sales and Profitability by business area Euro Millions, % on Sales Total Organic 9M 2013 9M 2012 growth growth Sales to Third Parties Utilities 1,650 1,678 (1.7%) (0.8%) Trade & Installers 1,471 1,653 (11.0%) (5.1%) Industrial 1,340 1,371 (2.3%) 3.0% Others 82 99 n.m. n.m. Total Ene
Slide 26: Telecom Segment – Profit and Loss Statement
Telecom Segment – Profit and Loss Statement Euro Millions 9M 2013 9M 2012 FY 2012 Sales to Third Parties 945 1,129 1,466 YoY total growth (16.3%) YoY organic growth (14.6%) Adj. EBITDA 91 120 160 % on sales 9.7% 10.6% 10.9% Adj. EBIT 54 81 104 % on sales 5.7% 7.3% 7.1% 9M 2013 Financial Results 26
Slide 27: 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 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12 Jan-13 Jan-08 Jan-09 J
Slide 28: 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