Slide 1: Connect to Lead: FY 2023 Integrated Results
CONNECT TO LEAD FY 2023 Integrated Results 29.02.2024
Slide 2: Agenda
AGENDA 2023 Highlights & Group Overview VALERIO BATTISTA CEO 2
Slide 3: 2023 Key Highlights
2023 KEY HIGHLIGHTS OUTSTANDING RESULTS STRONG CASH GENERATION 1,628 529 724 €M €M €M REINFORCED COMMITTMENT ON CLIMATE CHANGE 10.6% margin WELL ON TRACK TO DELIVER THE Adj. EBITDA Group Net Profit FCF “CONNECT TO LEAD” TARGETS Adj. Ebitda 1,628 1,488 0.70 -33% Scope 1&2 976 23.1% €/share 840 16.7%
Slide 4: Sound Margin Expansion in Energy & Projects
SOUND MARGIN EXPANSION IN ENERGY & PROJECTS PROJECTS ENERGY TELECOM TOTAL GROUP SALES SALES SALES SALES 2,161 2,508 +15.3% 12,033 11,357 -1.3% 1,873 1,489 -18.9% 16,067 15,354 -1.1% E&I Sales Industrial & NWC Sales 8,196 7,620 -2.7% 3,442 3,358 +1.7% ADJ. EBITDA 1,628 1,488 ADJ. EBITDA ADJ. EBITDA A
Slide 5: Agenda: Outlook 2024
AGENDA Outlook 2024 MASSIMO BATTAINI CEO Designate 5
Slide 6: New Organizational Structure to Boost Growth
NEW ORGANIZATIONAL STRUCTURE TO BOOST GROWTH Customer focus, talent development and management continuity at the core of the new structure TRANSMISSION POWER GRID ELECTRIFICATION DIGITAL SOLUTIONS Hakan Ozmen Cinzia Farisè Cristiana Scelza Frederick Persson Previous role: Head of Projects Previous r
Slide 7: A New Streamlined Segmentation
A NEW STREAMLINED SEGMENTATION Segments redesigned to match market trends and drive leadership position TRANSMISSION POWER GRID ELECTRIFICATION DIGITAL SOLUTIONS TOTAL GROUP SALES 1,136 1,673 2,122 2,791 3,605 3,394 7,224 8,916 8,349 1,585 1,873 1,489 12,736 16,067 15,354 825 1,628 797 1,488 390 ADJ
Slide 8: Sustaining Leadership in the Transmission Business
SUSTAINING LEADERSHIP IN THE TRANSMISSION BUSINESS Solid backlog, long term visibility and strong focus on execution Orders with solid commitment Well on track to capture the market growth Backlog €bn 20 ~20 ~20 >2 10.3 9.2 Including Amprion FA ~18 and EGL2 projects signed in Feb 2024 9.7 10.7 6.4 1
Slide 9: Climate Change Ambition – Scope 1&2 Target Upgrade
CLIMATE CHANGE AMBITION – SCOPE 1&2 TARGET UPGRADE Further accelerating decarbonization trend well below 20C -10% pathway -28% -33% Scope 3 from -47% approved by SBTi -55-60% Carbon emissions Scope 1&2 reduction (%) 2019 2023 2030 2035 2050 Baseline year 90% CO2 Net Zero reduction 9
Slide 10: Our Sustainability Targets at a Glance
OUR SUSTAINABILITY TARGETS AT A GLANCE SDGS KPI Actual 2022 Actual 2023 Target 2027 Enable access to green electricity to households 21 m 56 m 210 m Enable fast digital access to households 3m 9m 25 m % of reduction of Scope 1&2 GHG Emissions vs baseline 2019 -28% -33% -45% % of reduction of Scope 3
Slide 11: 2024 Outlook and 2023-27 Value Creation
2024 OUTLOOK 2023-27 VALUE CREATION Well on track to deliver on our mid-term targets CMD Targets Adj. Ebitda 2,000±100 ADJ. EBITDA 2024 TARGET (€M) 1,628 1,775±75 1,488 1,575 1,625 1,675 Mid-point 2022 2023 2025E 2027E FCF 2024 TARGET (€M) 675 725 775 FCF 559 724 700±50 950±50 Mid-point 2024 GHG EMI
Slide 12: Agenda: Financial Results
AGENDA FINANCIAL RESULTS Pier Francesco Facchini CFO 12
Slide 13: Profit & Loss Statement
PROFIT & LOSS STATEMENT 2023 2022 SALES 15,354 16,067 ADJ. EBITDA Bridge YoY organic growth (1.1%) Adj.EBITDA 1,628 1,488 % on sales 10.6% 9.3% Q1 Q2 Q3 Q4 FY Adj.EBIT 1,270 1,119 % on sales 8.3% 7.0% ADJ. EBITDA 2022 288 411 432 357 1,488 Adjustments (143) (101) Projects 24 18 19 (4) 57 Non monetar
Slide 14: Strong Cash Generation
STRONG CASH GENERATION +724 €M Free Cash Flow ( 1,538 ) 177 153 165 328 ( 13 ) 1,417 1,188 72 624 (197) 31-Dec-22 Cash flow WC Net Operative Financial Paid income Dividend Dividend IFRS 16 Other 31-Dec-23 net debt operations changes Capex Charges taxes received paid net debt (before WC changes) Euro
Slide 15: Executing Capital Allocation Strategy
EXECUTING CAPITAL ALLOCATION STRATEGY Dividend proposal to the next AGM: €/share 0.70 CMD: CAPITAL ALLOCATION +16.7% Deleverage ~ 10% 280.9% since IPO ~€3,200m TSR Cum. Free 0.70 Cash Flow 0.60 0.417 20.7% 30-35% Dividends 55-60% M&A and share buyback in 2023 2008 2023 2024 TSR 15
Slide 16: Committed to Deliver
COMMITTED TO DELIVER 2023 2023 CMD TARGETS ACTUAL EBITDA conversion in FCF 35-39% 44.5% Annual targets ROCE 21-23% 23.1% 2022-2027 2023 CMD TARGETS ACTUAL Dividend Increase yoy +10% +16.7% Over 5 years plan Basic EPS CAGR >10% +33.8%* targets Net Debt/EBITDA range 0.5-1.0x 0.7x * Excluding impairmen
Slide 17: Appendix
Appendix Oo prysmian v7
Slide 18: Closing Remarks
CLOSING REMARKS 1. Well on track to deliver the Connect to Lead targets 2. Strong performance thanks to a balanced & innovative portfolio and high exposure to structural trends 3. Solid execution and long-term visibility in the transmission business 4. Moving forward cash generation targets 18
Slide 19: Margin Expansion Across Regions
MARGIN EXPANSION ACROSS REGIONS The value of a wide geographical presence and breadth of portfolio Data excluding Projects Business EMEA North America Latin America Asia Pacific Sales Sales Sales Sales 6,381 6,043 -1.7% 5,132 4,557 -5.9% 1,275 1,236 -6.0% 1,118 1,010 -2.3% Adj. Ebitda Adj. Ebitda Ad
Slide 20: 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 21: 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% 21
Slide 22: We innovate to support our customers
We innovate to support our Sirocco Extreme E3X Robot customers and 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 22
Slide 23: 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 23
Slide 24: 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 24
Slide 25: Sustainability Development Goals
SUSTAINABILITY DEVELOPMENT GOALS 20 40 60 80 100 CCC B BB BBB A AA AAA 20 40 60 80 100 79 A 76 1 2 3 4 5 20 40 60 80 100 10 20 30 40 We are included in 3.9 65 17 200 150 100 50 1 20 40 60 80 100 D- D C- C B- B A- A 58 58 A- 25
Slide 26: Financial Highlights
FINANCIAL HIGHLIGHTS SALES ADJUSTED EBITDA -1.1%* * Organic growth 1,628 16,067 15,354 1,488 9.3% 10.6% 2022 2023 2022 2023 OPERATIVE NET WORKING CAPITAL (1) NET FINANCIAL DEBT 1,417 609 1,188 525 3.8% 3.7% DEC-22 DEC-23 DEC-22 DEC-23 (1) Defined as NWC excluding derivatives; % on annualized last qu
Slide 27: A Solid and Sustainable Financial Structure
A SOLID AND SUSTAINABLE FINANCIAL STRUCTURE ▪ Average debt maturity of 4.4 years (including Revolving Credit Facility) Fixed/Variable rate composition ▪ Approx. 1.7 €Bn cash on balance as of 31st December 2023 Variable ~18% CURRENT FINANCIAL DEBT MATURITY PROFILE(6) Fixed ~82% SUST. LINKED TERM LOAN
Slide 28: Financial Highlights
FINANCIAL HIGHLIGHTS 2023 2022 2023 2022 organic Adj.EBITDA Adj.EBITDA €M €M €M €M growth Margin Margin PROJECTS 2,508 15.3% 2,161 300 12.0% 243 11.2% Energy & Infrastructure 7,620 -2.7% 8,196 843 11.1% 736 9.0% Industrial & Network Components 3,358 1.7% 3,442 361 10.8% 252 7.3% Other 379 0.0% 395 (
Slide 29: 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 PROJECTS 2,508 300 12.0% 2,445 300 12.3% ENERGY 11,357 1,188 10.5% 9,929 1,188 12.0% 2023 TELECOM 1,489 140 9.4% 1,443 140 9.7% Total Group 15,354 1,628 1
Slide 30: Prysmian Group at Glance 2023 Financial Results
PRYSMIAN GROUP AT GLANCE 2023 Financial Results SALES BREAKDOWN BY BUSINESS SALES BREAKDOWN BY GEOGRAPHY Latam 9% Telecom 10% Energy & €15.4 BN €15.4 BN Infrastructure 50% North Energy America EMEA Industrial & 32% 52% 74% Network Components 22% Projects Other 2% 16% APAC 7% Adj. EBITDA BY BUSINESS
Slide 31: Projects 2023 Sales Breakdown
PROJECTS 2023 sales breakdown SALES BREAKDOWN BY BUSINESS SALES BREAKDOWN BY GEOGRAPHY North America High Voltage 12% LATAM 28% 5% Submarine APAC Energy 3% 65% Offshore specialities 6% Submarine TLC 1% €2.5 BN EMEA €2.5 BN 80% 31
Slide 32: Energy & Infrastructure 2023 Sales Breakdown
ENERGY & INFRASTRUCTURE 2023 sales breakdown SALES BREAKDOWN BY BUSINESS SALES BREAKDOWN BY GEOGRAPHY Power Distribution North America EMEA 33% 49% 35% Trade & Installers 63% Overhead €7.6 BN 4% €7.6 BN APAC LATAM 6% 10% 32
Slide 33: Industrial & Network Components 2023 Sales Breakdown
INDUSTRIAL & NETWORK COMPONENTS 2023 sales breakdown SALES BREAKDOWN BY BUSINESS SALES BREAKDOWN BY GEOGRAPHY Network Components Core Oil & Gas 5% products EMEA 10% 40% North America Other Industrial 10% 37% Elevators 10% €3.4 BN Specialties, OEM €3.4 BN & Renewables 44% Automotive 21% APAC LatAm 13
Slide 34: Telecom 2023 Sales Breakdown
TELECOM 2023 sales breakdown SALES BREAKDOWN BY BUSINESS SALES BREAKDOWN BY GEOGRAPHY North America MMS 32% 29% EMEA 54% Fiber 5% €1.5 BN LatAm €1.5 BN Telecom 6% Solutions APAC 66% 8% 34
Slide 35: Profit & Loss Statement
PROFIT&LOSS STATEMENT Adjustments and non monetary items on EBIT 2023 2022 SALES 15,354 16,067 2023 2022 YoY total growth (4.4%) YoY organic growth (1.1%) Non-recurring Items (9) (47) Adj.EBITDA 1,628 1,488 Restructuring (48) (11) % on sales 10.6% 9.3% Other Non-operating Income / (Expenses) (86) (4
Slide 36: Statement of Financial Position (Balance Sheet)
STATEMENT OF FINANCIAL POSITION (BALANCE SHEET) 31 Dec 2023 31 Dec 2022 Net fixed assets 5,709 5,583 of which: goodwill 1,660 1,691 Net working capital 518 614 of which: derivatives assets/(liabilities) (7) 5 of which: Operative Net working capital 525 609 Provisions & deferred taxes (734) (680) Net
Slide 37: Cash Flow Statement
CASH FLOW STATEMENT 31 Dec 2023 31 Dec 2022 Adj.EBITDA 1,628 1,488 Adjustments (143) (101) EBITDA 1,485 1,387 Net Change in provisions & others 82 14 Share of income from investments in op.activities (33) (47) Cash flow from operations (before WC changes) 1,534 1,354 Working Capital changes 197 (105
Slide 38: Bridge Consolidation Sales
BRIDGE CONSOLIDATIONION SALES PROJECTS ENERGY & INFRASTRUCTURE 330 16 1 ( 218 ) ( 199 ) ( 159 ) Org.growth 2,508 8,196 Org.growth 7,620 2,161 -2.7% 15.3% TOTAL CONSOLIDATED ( 184 ) ( 265 ) 2022 Organic Metal Exchange 2023 2022 Organic Metal Exchange 2023 ( 264 ) Growth Effect Rate & other Growth Eff
Slide 39: Notes
NOTES 1) FCF excluding Acquisitions & Disposals and Antitrust 6) ROCE calculation: impact; • Adjusted Operating Income excluding Share of Net income • Net Capital Employeed excluding: 2) Adjusted EBITDA: EBITDA excluding restructuring, • FV of Metals derivatives, non-operating income/expenses and no
Slide 40: 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 41: prysmian.com
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