Prysmian S.p.a. · MIL:PRY
Prysmian — FY2022 Earnings Presentation
47 slides from Prysmian's earnings presentation, Mar 9, 2023
Slide 1: FY 2022 Integrated Results
FY 2022 Integrated Results March 9th, 2023 © Prysmian Group 2021 1
Slide 2: Consistent Overdelivery: Results Above All Guidances
CONSISTENT OVERDELIVERY: RESULTS ABOVE ALL GUIDANCES Over 50% increase in Adj. Ebitda and cash generation MARCH: NOVEMBER: 2021 ACTUAL INITIAL 2022 GUIDANCE UPDATED 2022 GUIDANCE 2022 ACTUAL ADJ. EBITDA (€M) 976 1,010 1,080 1,425 1,475 1,488 FCF(1) (€M) 365 ~ 400 ±15% 450 500 559 © Prysmian Group 20
Slide 3: 2022 Key Highlights: Best Year Ever
2022 KEY HIGHLIGHTS: BEST YEAR EVER RECORD RESULTS DRIVEN BY STRONG CUSTOMER FOCUS, BROAD BUSINESS PORTFOLIO AND OPERATIONAL DISCIPLINE Sales Adj. EBITDA Net Income FCF(1) 16,067 €M 1,488 €M 509 €M 559 €M 12,736 €M in 2021 +52% vs. 2021 +64% vs. 2021 +53% vs. 2021 GHG emissions(2) Circular economy F
Slide 4: 2022 Financial Highlights
2022 FINANCIAL HIGHLIGHTS SALES ADJ. EBITDA FREE CASH FLOW SALES ORGANIC GROWTH ADJ. EBITDA ADJ. EBITDA MARGIN FCF(1) NET DEBT 16,067 €M 14.4% 1,488 €M 9.3% 559 €M 1,417 €M SOLID ORGANIC GROWTH MARGINS EXPANSION FREE CASH FLOW ▪ 30.3% growth in Projects driven by ▪ 50% increase in Adj. Ebitda at 1,4
Slide 5: Solid Order Intake and Record Backlog
SOLID ORDER INTAKE AND RECORD BACKLOG ONLY FIRM ORDERS INCLUDED IN THE BACKLOG PROJECTS AWARDED IN 2022 ▪ Project Lightning installation, Middle East (~ 60 €M) Underground HV Submarine ▪ Interconnection in Greek Cyclades islands (~ 150 €M) 6.6 €Bn(4) ~ 3.4 €Bn ▪ Dolwin4 & Borwin4 offshore wind farm
Slide 6: €1.8 Bn Ijmuiden Offshore Wind Project Awarded in 2023
€1.8 BN IJMUIDEN OFFSHORE WIND PROJECT AWARDED IN 2023 Firm backlog jumped at approx. 8.4 €Bn ALL-TIME HIGH BACKLOG ▪ €1.8 billion order by TenneT in March 2023 1.8 €Bn 8.4 €Bn ▪ Grid connection for two future offshore wind farms in the Netherlands: Ijmuiden Ver Alpha and Nederwiek 1 6.6 €Bn ▪ First
Slide 7: Sound Performance Across Segments
SOUND PERFORMANCE ACROSS SEGMENTS Projects Energy Telecom TOTAL 1,594 2,161 +30.3% 9,557 12,033 +12.3% 1,585 1,873 +10.9% 12,736 16,067 +14.4% Sales Sales E&I Industrial & NWC 1,488 6,361 8,196 +14.7% 2,838 3,442 +8.7% 976 736 Adj. Ebitda Adj. Ebitda 271 243 356 252 220 210 196 40 14 13.2% 11.2% 5.6
Slide 8: Organic Growth Across Regions
ORGANIC GROWTH ACROSS REGIONS Data excluding The value of a wide geographical presence Projects Business EMEA NORTH AMERICA LATIN AMERICA ASIA PACIFIC 5,272 6,381 +10.7% 3,808 5,132 +18.3% 1,060 1,275 +8.2% 1,002 1,118 +0.7% org. growth Sales 722 Adj. Ebitda 265 311 336 99 120 92 66 5.0% 4.9% 8.8% 1
Slide 9: Leading Innovation to Drive Sustainable Growth
LEADING INNOVATION TO DRIVE SUSTAINABLE GROWTH FOCUSING ON HIGH TECHNOLOGY PRODUCTS SERVING SECULAR GROWTH TRENDS GRID HARDENING ENERGY TRANSITION RENEWABLES DIGITALIZATION E3X® Technology Subsea Systems PRYSOLAR Sirocco Extreme ▪ 30% lower losses CO2 ▪ 525kV HVDC 2GW ▪ Higher endurance to extreme ▪
Slide 10: Disciplined Investments to Fuel Sustainable Growth
DISCIPLINED INVESTMENTS TO FUEL SUSTAINABLE GROWTH Selective step up in capex to capture secular trends ca. 270 €M avg / year Up to 500 €M avg / year 500 Climate Change & Digital 400 Capex Trend Telecom by Business 300 2018-2025 Energy 200 (€M) 100 Projects 0 2018 2019 2020 2021 2022 2023 2024 2025
Slide 11: Outlook
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Slide 12: 2023 Outlook
2023 OUTLOOK 2023 ADJ. EBITDA TARGET (€M) 2023 FCF(1) TARGET (€M) Construction market condition vs current trade Early Substantial deterioration stability 500 1,375 1,450 Mid-point 1,525 450 Mid-point 550 1,375 - 1,525 559 450 - 550 1,488 976 365 2021 2022 2023 target 2021 2022 2023 target Starting
Slide 13: Financial Results
WWW LLL AGENDA Financial Results Prysmian Linking Group __ the Future
Slide 14: Profit and Loss Statement
PROFIT AND LOSS STATEMENT Euro Millions 2022 2021 SALES 16,067 12,736 Adj. EBITDA Bridge YoY total growth 26.2% YoY organic growth 14.4% Q1 Q2 Q3 Q4 FY Adj.EBITDA 1,488 976 ADJ. EBITDA 2021 213 257 255 251 976 % on sales 9.3% 7.7% Projects 3 8 14 8 33 of which share of net income 46 18 Energy 63 140
Slide 15: Statement of Financial Position (Balance Sheet)
STATEMENT OF FINANCIAL POSITION (BALANCE SHEET) Euro Millions (6) 31 Dec 2022 31 Dec 2021 Net fixed assets 5,583 5,307 of which: goodwill 1,691 1,635 Net working capital 614 650 of which: derivatives assets/(liabilities) 5 174 of which: Operative Net working capital 609 476 Provisions & deferred tax
Slide 16: Cash Flow
CASH FLOW +559 €M Free Cash Flow ( 1,405 ) 7 17 148 ( 10 ) 44 221 71 452 1,760 1,417 7 105 of which 41 €M for the new vessel 31-Dec-21 Cash flow WC Restructuring Net Operative Financial Paid income Dividend Antitrust Dividend Acquisitions & Other 31-Dec-22 net debt operations changes costs Capex Cha
Slide 17: Continuing to Return Value to Shareholders
CONTINUING TO RETURN VALUE TO SHAREHOLDERS Dividend proposal to the next AGM: €/share 0.60 Dividend per Share evolution (Euro per share) DPS Dividend Yield (7) +9% 0.60 2.0% euro per share Covid-19 Draka acquisition Total Shareholder Return (TSR) 0.60 0.55 0.50 in 2022 since IPO(8) 0.417 0.42 0.43 P
Slide 18: Closing Remarks
CLOSING REMARKS Outstanding performance across High exposure to secular trends businesses and geo portfolio Solid cash generation and Flawless execution, high visibility and financial deleverage capex growth driving Projects © Prysmian Group 2023 2021 18
Slide 19: ESG
AGENDA ESG Prysmian Linking Group ___ the Future
Slide 20: 2023 – 2025 Sustainability Scorecard
2023 – 2025 SUSTAINABILITY SCORECARD Category BASELINE TARGET TARGET SDGs KPI Included in 2022 2025 2030 21m 110m Enable access to green electricity to households Impacts on Society Enable fast digital access to households 3m 15m Percentage reduction of Scope 1&2 GHG Emissions vs baseline 2019 LTI -
Slide 21: 2020 – 2022 Sustainability Scorecard Results
2020 – 2022 SUSTAINABILITY SCORECARD RESULTS BASELINE ACTUAL ACTUAL GOAL KPI TARGET 2022 2019 2021 2022 Percentage of product families (cables) covered by carbon footprint 70% 89% 92% 85% Percentage of annual revenues from low carbon-enabling products 48% 44% 45% 48% to 50% Percentage reduction of G
Slide 22: Group's Priorities
GROUP’S PRIORITIES Solid Governance Environment Social Innovation SCOPE 1 & 2 NET ZERO BY 2035 Allow customers to -21% SCOPE 3 NET-ZERO BY 2050 choose the greener option -46% 2030 SOCIAL AMBITION -24% Design solutions fit for sustainability 2022 2030 2035 2050 Upstream Value Chain THE SUSTAINABILITY
Slide 23: Climate Change Ambition - Upgrade of our Targets
CLIMATE CHANGE AMBITION - Upgrade of our Targets Prysmian has Near-Term-Targets approved by SBTi & awaiting approval for Net Zero ones Our Targets Our Commitment -7.5% Updated from -21% 1 Decarbonize 90% of our Scope 1&2 carbon footprint by 2035 ▪ phasing out SF6 emissions -28% ▪ 100% renewable ener
Slide 24: Reducing Our Customer's CO2
REDUCING OUR CUSTOMER’S CO2 Digitalizing the Supply First Eco Label in the Recyclability of materials PryID Chain Industry Visibility over cable-related 6 measurable and recognized Offering full recyclability and superior RFID technology to the full suite of emissions & Optimization in the sustainab
Slide 25: Appendix
Prysmian PRYSOLAR Born to face the\unpredi@gable Appendix epee am <oees ~ Prysmian — tinking AGENDA Group — the Future
Slide 26: A Solid and Sustainable Financial Structure
A SOLID AND SUSTAINABLE FINANCIAL STRUCTURE ▪ Average debt maturity of 4.0 years after 120 €M new Cdp Loan drawn down on 15th Feb. 2023 Fixed/Variable rate composition ▪ 1.0 €Bn of committed Revolving Credit Facility fully unutilized as of 31 st Variable December 2022 ~24% ▪ Approx. 1.5 €Bn cash on
Slide 27: Sound Growth Across Businesses and Regions
SOUND GROWTH ACROSS BUSINESSES AND REGIONS 4Q/FY 2022 y-o-y org. growth excluding Projects segment Org growth by Geography Organic growth by Business 37% of total 46% of total Group Group INDUSTRIAL PROJECTS E&I & NWC TELECOM 18.3% 10.7% 13.8% 9.2% NORTH FY 4Q FY 4Q EMEA AMERICA 33.0% 9% of total 8%
Slide 28: 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 2,161 243 11.2% 2,117 243 11.5% FY ENERGY 12,033 974 8.1% 10,070 974 9.7% 2022 TELECOM 1,873 271 14.5% 1,792 271 15.1% Total Group 16,067 1,488 9
Slide 29: 2022 Financial Highlights
2022 FINANCIAL HIGHLIGHTS Euro Millions, % on Sales SALES ADJUSTED EBITDA (10) +14.4%* 16,067 1,488 12,736 976 7.7% 9.3% 2021 2022 2021 2022 OPERATIVE NET WORKING CAPITAL (11) NET FINANCIAL DEBT 1,760 609 1,417 476 3.5% 3.8% DEC-21 DEC-22 DEC-21 DEC-22 © Prysmian Group 2023 2021 * Organic growth 29
Slide 30: Sustaining Leadership in the Projects Business
SUSTAINING LEADERSHIP IN THE PROJECTS BUSINESS Matching installation capacity with increasing production capacity A new cable-laying vessel ordered, similar to the recently Leonardo da Vinci vessel ▪ The new vessel to CONSOLIDATE THE GROUP’S LEADERSHIP and boost the capability of submarine cable ope
Slide 31: 525kV HVDC 2GW Submarine Cable System
525kV HVDC 2GW SUBMARINE CABLE SYSTEM ▪ Prysmian reaches key milestone in the field of Power Grids for Energy Transition ▪ Breakthrough innovation in cable technology will enable 2GW transmission for large scale offshore wind deployment ▪ Successful development and testing of 525kV extruded submarin
Slide 32: Projects
PROJECTS Euro Millions, % on Sales SALES HIGHLIGHTS +30.3%* SUBMARINE / Strong organic growth confirmed in Q4. Mix of sales and cost inflation diluting margins in 2022 / Tendering activity ongoing, with a solid pipeline of projects (interconnections and off-shore wind farms) / More than €3.4 billion
Slide 33: Energy & Infrastructure
ENERGY & INFRASTRUCTURE Euro Millions, % on Sales SALES HIGHLIGHTS +14.7%* TRADE & INSTALLERS / Excellent performance driven by secular trends and non-residential construction market / Solid demand and price management drives margins improvement 8,196 6,361 POWER DISTRIBUTION / Double digit organic
Slide 34: Industrial & Network Components
INDUSTRIAL & NETWORK COMPONENTS Euro Millions, % on Sales SALES HIGHLIGHTS +8.7%* SPECIALTIES, OEM & RENEWABLES / Strong result in OEM & Renewables with a double-digit organic growth. / Overall good performances across all applications, in particular in Mining and Railway 3,442 ELEVATOR 2,838 / Over
Slide 35: Telecom
TELECOM Euro Millions, % on Sales SALES HIGHLIGHTS +10.9%* OPTICAL CABLE & FIBRE / Solid organic growth in Optical mainly driven by North America / YOFC results driven by Chinese market rebound 1,585 1,873 MMS / Good performance in MMS 2021 2022 * Org. Growth. Adj. EBITDA / % of Sales(10) ADJ.EBITDA
Slide 36: Financial Highlights
FINANCIAL HIGHLIGHTS Euro Millions Sales Adj.EBITDA 2022 2021 2022 2021 organic Adj.EBITDA Adj.EBITDA €M €M €M €M growth Margin Margin PROJECTS 2,161 30.3% 1,594 243 11.2% 210 13.2% Energy & Infrastructure 8,196 14.7% 6,361 736 9.0% 356 5.6% Industrial & Network Components 3,442 8.7% 2,838 252 7.3%
Slide 37: Prysmian Group at a Glance
PRYSMIAN GROUP AT A GLANCE 2022 Financial Results SALES BREAKDOWN BY BUSINESS SALES BREAKDOWN BY GEOGRAPHY Latam 8% Telecom Energy & €16.1 BN €16.1 BN 12% Infrastructure 51% North America EMEA Energy Industrial & 34% 50% 75% Network Components 21% Projects Other 3% 13% APAC 8% Adj. EBITDA BY BUSINES
Slide 38: Projects 2022 Sales Breakdown
PROJECTS 2022 sales breakdown SALES BREAKDOWN BY BUSINESS SALES BREAKDOWN BY GEOGRAPHY High Voltage 34% North America 12% LATAM 4% Submarine Energy APAC 59% 5% Offshore specialities €2.2 BN 5% EMEA 79% €2.2 BN Submarine TLC 2% © Prysmian Group 2023 2020 38
Slide 39: Energy & Infrastructure 2022 Sales Breakdown
ENERGY & INFRASTRUCTURE 2022 sales breakdown SALES BREAKDOWN BY BUSINESS SALES BREAKDOWN BY GEOGRAPHY Power Distribution EMEA North America 33% 48% 36% Trade & Installers 64% Overhead €8.2 BN 3% €8.2 BN APAC LATAM 6% 10% © Prysmian Group 2023 2020 39
Slide 40: Industrial & Network Components 2022 Sales Breakdown
INDUSTRIAL & NETWORK COMPONENTS 2022 sales breakdown SALES BREAKDOWN BY BUSINESS SALES BREAKDOWN BY GEOGRAPHY Network Components Core Oil & Gas 5% EMEA products 38% Other Industrial 10% North America 11% 38% Elevators 11% Specialties, €3.4 BN OEM & €3.4 BN Renewables 42% Automotive 21% APAC LatAm 15
Slide 41: Telecom 2022 Sales Breakdown
TELECOM 2022 sales breakdown SALES BREAKDOWN BY BUSINESS SALES BREAKDOWN BY GEOGRAPHY North America MMS 37% 31% EMEA 50% Fiber 4% €1.9 BN Telecom €1.9 BN Solutions LatAm 65% APAC 7% 6% © Prysmian Group 2023 2020 41
Slide 42: Profit and Loss Statement
PROFIT AND LOSS STATEMENT Euro Millions 2022 2021 SALES 16,067 12,736 YoY total growth 26.2% YoY organic growth 14.4% Adj.EBITDA 1,488 976 % on sales 9.3% 7.7% of which share of net income 46 18 Adjustments (101) (49) Adjustments and non monetary items on EBIT EBITDA 1,387 927 % on sales 8.6% 7.3% 2
Slide 43: Cash Flow Statement
CASH FLOW STATEMENT Euro Millions 31 Dec 2022 31 Dec 2021 Adj.EBITDA 1,488 976 Adjustments (101) (49) EBITDA 1,387 927 Net Change in provisions & others 14 17 Share of income from investments in op.activities (47) (27) Cash flow from operations (before WC changes) 1,354 917 Working Capital changes (
Slide 44: Bridge Consolidation Sales
BRIDGE CONSOLIDATION SALES Euro Millions PROJECTS ENERGY & INFRASTRUCTURE 34 50 483 414 424 64 933 2,161 Org.growth 8,196 Org.growth 1,594 30.3% 6,361 14.7% TOTAL CONSOLIDATED 2021 Organic Metal Exchange 2022 2021 Organic Metal Exchange Perimeter 2022 Growth Effect Rate Effect Growth Effect Rate 592
Slide 45: Notes
NOTES 1) FCF excluding Acquisitions & Disposals and Antitrust impact; 2) GHG emissions reduction vs. 2019; 3) Share of recycled content on PE Jackets & Copper: Percentage on weight of the recycled content of the purchased amount of selected materials. The scope includes 1) all the copper purchased b
Slide 46: Disclaimer
DISCLAIMER ▪ The managers responsible for preparing the company's financial reports, A.Brunetti and S.Invernici, 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
Slide 47: Thank you
Thank you prysmiangroup.com 47