Prysmian S.p.a. · MIL:PRY
Prysmian — H1 2020 Earnings Presentation
31 slides from Prysmian's earnings presentation, Jul 30, 2020
Slide 1: First Half 2020 Financial Results
First Half 2020 Financial Results MILAN – July 30th, 2020
Slide 2: First half 2020 Highlights
First half 2020 Highlights Organic sales at -11.8%, mainly driven by: • Sharp decline as expected in Telecom (-20.1%), affected by tough comp with H1 2019, worsened by Covid related effects Organic sales growth • Weak trend in T&I (-16.3%) heavily affected by the pandemic impact on construction site
Slide 3: Agenda
Agenda H1 2020 Financial Appendix Highlights Results Group overview COVID-19 Outlook 3
Slide 4: Financial Highlights
Financial Highlights | Euro Millions, % on Sales Sales Adjusted EBITDA (1) -11.8%* 521 5,849 419 4,985 8.9% 8.4% * Organic growth H1 2019 H1 2020 H1 2019 H1 2020 Reported Operative Net Working Capital (2) Reported Net Financial Debt 2,819 1,269 2,516 1,088 2,140 749 6.5% 10.3% 11.3% DEC-19 JUN-19 JU
Slide 5: Sales & Adj. EBITDA by Business
Sales & Adj. EBITDA by Business | Euro Millions, % on Sales, Projects Energy Telecom TOTAL 828 708 -13.9% 4,135 3,580 -9.6% 886 697 -20.1% 5,849 4,985 -11.8% Sales E&I Industrial & NWC 2,763 2,362 -10.6% 1,248 1,122 -8.4% 521 159 165 147 12 419 97 98 90 101 80 3 Adj. Ebitda 11.7% 11.4% 5.8% 6.2% 7.9
Slide 6: 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 7: Sales & Adj. EBITDA by Geography
Sales & Adj. EBITDA by Geography | Euro Millions, % on Sales EMEA NORTH AMERICA LATIN AMERICA ASIA PACIFIC TOTAL 2,661 -13.0% H1 1,609 -6.0% H1 -20.9% H1 -14.7% H1 4,985 -11.4% H1 334 381 H1 2020 H1 2020 Sales Sales -18.1% Q2 -14.6% Q2 -27.3% Q2 -9.7% Q2 -17.0% Q2 521 254 29 205 47 173 191 419 12 15
Slide 8: Agenda
Agenda H1 2020 Financial Appendix Highlights Results Group overview Covid-19 Outlook 8
Slide 9: E&I Trading update | Monthly Volume Evolution
E&I Trading update | Monthly Volume Evolution 150 2019 150 2020 100 100 50 Jan Feb Mar Apr May Jun 50 150 Jan Feb Mar Apr May Jun NORTHERN EUROPE 150 UK 150 100 100 100 50 Jan Feb Mar Apr May Jun 50 50 Jan Feb Mar Apr May Jun NORTH AMERICA Jan Feb Mar Apr May Jun CEE 150 150 SOUTH EUROPE 100 100 150
Slide 10: Protecting Value and Improving resilience in a challenging environment
Protecting Value and Improving resilience in a challenging environment No lay-offs (preserving permanent employment) People first Safeguard Group employees and proactive support to families and local communities. Fixed Cost ✓ G&A Cost containment Effective reduction ✓ Employees measures (HC and sala
Slide 11: Agenda
Agenda H1 2020 Financial Appendix Highlights Results Group overview Covid-19 Outlook 11
Slide 12: 2020 Outlook: confirming resilience in an uncertain context
2020 Outlook: confirming resilience in an uncertain context Adj. EBITDA 800 €M 850 FCF €M 200 before acquisition & 300 disposals Assumption Assuming no relevant Covid disruption on current trend 2020 forex assumed in line with average 2019; Assuming same perimeter as in 2019 (excluding M&A); Assumed
Slide 13: Agenda
Agenda H1 2020 Financial Appendix Highlights Results Group overview Covid-19 Outlook 13
Slide 14: Profit and Loss Statement
Profit and Loss Statement | Euro Millions H1 2020 H1 2019 SALES 4,985 5,849 Adj. EBITDA Bridge YoY total growth combined (14.8%) YoY organic growth (11.8%) Q1 Q2 H1 Adj.EBITDA 419 521 ADJ. EBITDA 2019 231 290 521 % on sales 8.4% 8.9% of which share of net income 5 13 Projects (3) (14) (17) Adjustmen
Slide 15: Profit and Loss Statement
Profit and Loss Statement | Euro Millions H1 2020 H1 2019 SALES 4,985 5,849 YoY total growth combined (14.8%) YoY organic growth (11.8%) Adj.EBITDA 419 521 % on sales 8.4% 8.9% of which share of net income 5 13 Adjustments (12) (29) Financial Charges EBITDA 407 492 H1 2020 H1 2019 % on sales 8.2% 8.
Slide 16: Statement of financial position (Balance Sheet)
Statement of financial position (Balance Sheet) | Euro Millions 30 Jun 2020 30 Jun 2019 31 Dec 2019 Net fixed assets 5,153 5,226 5,301 of which: goodwill 1,590 1,576 1,590 Net working capital 1,088 1,258 755 of which: derivatives assets/(liabilities) - (11) 6 of which: Operative Net working capital
Slide 17: Cash Flow
Cash Flow | Euro Millions Net debt evolution LTM +519 €M Free Cash Flow ( 899 ) 94 52 97 (9) 70 86 252 ( 205 ) 88 71 2,819 2,516 30-Jun-19 Cash flow WC WL Restruct & Net Financial Paid Dividend Dividend IFRS 16 Other 30-Jun-20 operations changes impact integration Operative Charges income received p
Slide 18: Agenda
Agenda H1 2020 Financial Appendix Highlights Results Group overview COVID-19 Outlook 18
Slide 19: Performance by Segment
Performance by Segment | Euro Millions, % on Sales H1 2019 H1 2020 18.6% Adj. EBITDA Margin 14.5% 11.7% 11.4% 7.9% 8.0% 8.9% 8.4% 5.8% 6.2% Project E&I Industrial & NWC. Telecom Total H1 2019 H1 2020 ±X.X% = Sales Organic Trend Adj. EBITDA (€M) / % Org. Growth -11.8% 521 419 -13.9% -10.6% -8.4% -20.
Slide 20: Projects
Projects | Euro Millions, % on Sales SALES HIGHLIGHTS -13.9%* SUBMARINE • Smooth execution partly compensating sales decline • Tendering activity ongoing, with a solid pipeline of projects (interconnections and off-shore wind farms) 828 708 UNDERGROUND HIGH VOLTAGE • Negative organic growth driven b
Slide 21: Energy & Infrastructure
Energy & Infrastructure | Euro Millions, % on Sales SALES (5) HIGHLIGHTS TRADE & INSTALLERS -10.6%* • Negative performance driven by EMEA (South Europe, UK & MEAT) and LATAM • COVID-19 impact starting form 2nd week of March POWER DISTRIBUTION 2,763 • Solid performance in North America driven by Onsh
Slide 22: Industrial & Network Components
Industrial & Network Components | Euro Millions, % on Sales SALES (5) HIGHLIGHTS -8.4%* SPECIALTIES, OEM & RENEWABLES • Positive performance of Renewables, Railways and Crane businesses partially offset by Mining, Infrastructure 1,248 1,122 ELEVATOR • Good performance continued in Q2 helped by curre
Slide 23: Telecom
Telecom | Euro Millions, % on Sales SALES HIGHLIGHTS -20.1%* OPTICAL CABLE & FIBRE • Material drop as expected, driven by lower volume and price pressure, partially offset by cost efficiency • Organic decline affected by tough comp and COVID impacts • Weakness of YOFC results due to COVID-19 impact
Slide 24: Cash Flow Statement
Cash Flow Statement | Euro Millions 12 Months 30 Jun 2020 30 Jun 2019 (from 1/7/2019 to 30/6/2020) Adj.EBITDA 419 521 905 Adjustments (12) (29) (83) EBITDA 407 492 822 Net Change in provisions & others (82) (89) (66) Share of income from investments in op.activities (5) (13) (16) Cash flow from oper
Slide 25: Financial Highlights
Financial Highlights | Euro Millions Sales Adj.EBITDA H1 2020 H1 2019 H1 2020 H1 2019 organic Adj.EBITDA Adj.EBITDA €M €M €M €M growth Margin Margin PROJECTS 708 -13.9% 828 80 11.4% 97 11.7% Energy & Infrastructure 2,362 -10.6% 2,763 147 6.2% 159 5.8% Industrial & Network Components 1,122 -8.4% 1,24
Slide 26: Bridge Consolidation Sales
Bridge Consolidation Sales | Euro Millions Projects Energy & Infrastructure ( 292 ) ( 115 ) ( 89 ) ( 20 ) (1) (4) Org.growth 2,763 Org.growth Total Consolidated 828 708 -10.6% 2,362 -13.9% H1 2019 Organic Metal Exchange H1 2020 H1 2019 Organic Metal Exchange H1 2020 ( 689 ) ( 141 ) ( 34 ) Growth Eff
Slide 27: Prysmian Group Liquidity and Debt Profile
Prysmian Group Liquidity and Debt Profile COMFORTABLE LIQUIDITY POSITION: • Cash on balance at June end in excess of 700 €M plus 1 €Bn of committed Revolving Credit Facility fully unutilized and 400 €M of uncommitted credit lines • Average debt maturity of 2.8 years with no refinancing needs before
Slide 28: 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 29: 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 Q2 results. FY 2020 guidance assumes no material change
Slide 30: 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 31: Thank you
Thank you prysmiangroup.com