Prysmian S.p.a. · MIL:PRY
Prysmian — Q1 2014 Earnings Presentation
30 slides from Prysmian's earnings presentation, May 8, 2014
Slide 1: Q1 2014 Financial Results
Q1 2014 Financial Results Milan – May 8th, 2014 Q1 2014 Financial Results 1
Slide 2: Agenda
AGENDA Q1 2014 Highlights • Group overview • Results by business • Outlook Financial results Appendix Q1 2014 Financial Results 2
Slide 3: Q1 2014 Key Financials
Q1 2014 Key Financials Euro Millions, % on Sales Sales Adjusted EBITDA (1) Adjusted EBIT (2) Excl. WL Excl. WL Excl. WL -3.3%* sub.project sub.project sub.project effect 650 effect 494 effect 613 465 7,574 6,995 +3.2%* +5.4%* 1,669 1,616 1,579 114 115 78 79 78 42 2012 2013 Q1'13 Q1'14 Q1'14 2012 201
Slide 4: First quarter of positive organic growth after a long downturn
First quarter of positive organic growth after a long downturn Volume improvement across all segments in Q1’14. Utilities impacted by WL project effect Organic Growth evolution % change on previous year period Utilities T&I Industrial Telecom Total 9.1% 7.7% 7.8% 5.4% 3.2% 2.5% 0.7% 0.6% 0.7% 0.1% 0
Slide 5: Volume increase as first step towards profitability recovery
Volume increase as first step towards profitability recovery 2014 profitability still penalized by pricing deterioration during last quarters and negative currency T&I Telecom Optical Volumes & CM/KG Volumes & CM/FKM CM / FKM (€/FKM) CM / KG (€/KG) Volumes (FKM) Volumes (tons) No additional price pr
Slide 6: Agenda
AGENDA Q1 2014 Highlights • Group overview • Results by business • Outlook Financial results Appendix Q1 2014 Financial Results 6
Slide 7: Utilities
Utilities Euro Millions, % on Sales Sales to Third Parties Highlights DISTRIBUTION Excl. WL -1.4%* sub.project • Mid single digit organic decrease in Q1, in line with expectations, due to effect 2,278 2,217 weak demand in Europe and South America. Limited potential recovery in utilities maintenance
Slide 8: Utilities – Solid Transmission demand, orders backlog at peak levels
Utilities – Solid Transmission demand mainly driven by Europe expected to maintain orders backlog at peak levels Transmission – Orders Backlog (€ mln) Submarine HV ~500 ~450 ~450 ~550 ~650 ~650 ~650 ~650 ~2,300 ~300 ~1,900 ~2,050 ~2,150 ~250 ~1,700 ~800 ~900 ~1,000 ~1,050 ~650 Dec'09 Jun'10 Dec'10 J
Slide 9: Trade & Installers
Trade & Installers Euro Millions, % on Sales Sales to Third Parties Highlights -4.3%* • First Volume pick-up in Q1’14 (Vs a weak Q1’13) after bottom reported in H1’13 and stabilization in H2’13. Europe and North America as main 2,159 positive drivers. 1,914 • Europe: gradual demand recovery mainly d
Slide 10: Industrial
Industrial Euro Millions, % on Sales Sales to Third Parties Highlights +4.0%* Specialties & OEM 1) 1,801 1,764 • Low start of the year due to strong decrease in Infrastructure investments in North America (Vs high H1’13) and continuous weak European demand. Lower contribution of Mining, Infrastructu
Slide 11: Telecom
Telecom Euro Millions, % on Sales Sales to Third Parties Highlights • Limited org.growth despite double digit volume increase in optical (mainly -15.4%* driven by strong European demand) offset by lower average pricing and 1,202 continuous weakness in Copper. No profitability recovery due to negativ
Slide 12: Agenda
AGENDA Q1 2014 Highlights • Group overview • Results by business • Outlook Financial results Appendix Q1 2014 Financial Results 12
Slide 13: 2014 Outlook – Profitability impacted by Western Link, currency and lower prices
2014 Outlook – Profitability impacted by Western Link submarine project, negative currency effect and lower average price Vs 2013 FY 2014 Adj.EBITDA Target Vs FY 2013 (€ 613 m) Initial expected Adj.EBITDA FY 600 Mid-point € 625 m 650 Target Assuming FY’14 €70m negative Western Link effect based on c
Slide 14: Agenda
AGENDA Q1 2014 Highlights • Group overview • Results by business • Outlook Financial results Appendix Q1 2014 Financial Results 14
Slide 15: Profit and Loss Statement
Profit and Loss Statement Euro Millions Q1 2014 excl. WL Submarine WL submarine Q1 2014 Q1 2013 1) FY 2013 1) project effect project effect Sales 1,616 (37) 1,579 1,669 6,995 YoY total growth (3.2%) (5.4%) YoY organic growth 5.4% 3.2% Adj.EBITDA 115 (37) 78 114 613 % on sales 7.1% 4.9% 6.8% 8.8% Non
Slide 16: Impact of currencies and WL project on Sales and Adj.EBITDA
Impact of currencies and WL project on Sales and Adj.EBITDA Profitability decrease fully attributable to WL project and negative currency translation effect Sales Adj. EBITDA Euro million Euro million Of which: Of which: • Utilities 21 • Utilities 1 • T&I 33 • T&I 2 • Industrial 25 • Industrial 2 •
Slide 17: Extraordinary Effects
Extraordinary Effects Euro Millions Q1 2014 Q1 2013 2) FY 2013 2) Antitrust investigation 1 (2) 6 Restructuring (3) (10) (50) Draka integration costs - - - Price adjustments 21 - - Other 1 (4) (6) EBITDA adjustments 20 (16) (50) Special items (20) (17) (47) Gain/(loss) on metal derivatives (19) (12)
Slide 18: Financial Charges
Financial Charges Euro Millions Q1 2014 Q1 2013 2) FY 2013 2) Net interest expenses (22) (27) (100) of which non cash Conv.Bond interest exp. (2) - (6) Bank fees amortization (2) (3) (8) Gain/(loss) on exchange rates (2) - (27) Gain/(loss) on derivatives 1 ) (8) (13) (8) Non recurring effects (1) (5
Slide 19: Statement of financial position (Balance Sheet)
Statement of financial position (Balance Sheet) Euro Millions 31 Mar 2014 excl. WL Submarine 1) 1) WL submarine 31 Mar 2014 31 Mar 2013 31 Dec 2013 project effect project effect Net fixed assets 2,188 - 2,188 2,298 2,207 of which: intangible assets 586 - 586 605 588 of which: property, plants & equi
Slide 20: Cash Flow
Cash Flow Euro Millions Q1 2014 excl. WL Subm. WL submarine project Q1 2014 Q1 2013 1) FY 2013 1) project effect effect Adj.EBITDA 115 (37) 78 114 613 Non recurring items 20 - 20 (16) (50) EBITDA 135 (37) 98 98 563 Net Change in provisions & others (35) - (35) (24) (76) Share of income from investme
Slide 21: Agenda
AGENDA Q1 2014 Highlights • Group overview • Results by business • Outlook Financial results Appendix Q1 2014 Financial Results 21
Slide 22: Bridge Consolidated Sales
Bridge Consolidated Sales Euro Millions Total Consolidated 3.2% 53 ( 48 ) ( 95 ) - 1,669 1,579 1,579 Q1 2013 Org.Growth Metal Effect Exchange Rate Q1 2014 L-f-L Perimeter effect Q1 2014 Energy Cables & Systems Division 3.6% 51 ( 44 ) ( 80 ) - 1,416 1,343 1,343 Q1 2013 Org.Growth Metal Effect Exchang
Slide 23: P&L Statement – Application of IFRS 10-11 Vs previous accounting
P&L Statement – Application of IFRS 10-11 Vs previous accounting Euro Millions Q1 2013 Q1 2013 FY 2013 FY 2013 FY 2012 FY 2012 Restated 1) Reported Restated 1) Reported Restated 1) Reported Sales 1,669 1,711 6,995 7,273 7,574 7,848 YoY total growth (7.7%) (7.3%) YoY organic growth (3.3%) (3.1%) Adj.
Slide 24: Stat. of fin. position (BS) – Application of IFRS 10-11
Stat. of fin. position (BS) – Application of IFRS 10-11 Vs previous accounting Euro Millions 31 Mar ‘13 31 Mar ’13 31 Dec ‘13 31 Dec ’13 31 Dec ‘12 31 Dec ’12 Restated 1) Reported Restated 1) Reported Restated 1) Reported Net fixed assets 2,298 2,305 2,207 2,190 2,301 2,300 of which: intangible asse
Slide 25: Cash Flow – Application of IFRS 10-11 Vs previous accounting
Cash Flow – Application of IFRS 10-11 Vs previous accounting Euro Millions Q1 2013 Q1 2013 FY 2013 FY 2013 FY 2012 FY 2012 Restated 1) Reported Restated 1) Reported Restated 1) Reported Adj.EBITDA 114 115 613 612 650 647 Non recurring items (16) (16) (50) (50) (101) (101) EBITDA 98 99 563 562 549 54
Slide 26: Energy Segment – Profit and Loss Statement
Energy Segment – Profit and Loss Statement Euro Millions Q1 2014 excl. WL Submarine WL submarine Q1 2014 Q1 2013 1) FY 2013 1) project effect project effect Sales to Third Parties 1,380 (37) 1,343 1,416 6,009 YoY total growth (2.5%) (5.1%) YoY organic growth 6.2% 3.6% Adj. EBITDA 97 (37) 60 94 507 %
Slide 27: Energy Segment – Sales and Profitability by business area
Energy Segment – Sales and Profitability by business area Euro Millions, % on Sales Total Organic Q1 2014 Q1 2013 1) growth growth Utilities 462 490 (5.8%) 0.1% Sales to Third Parties Trade & Installers 457 469 (2.6%) 9.1% Industrial 401 429 (6.4%) 2.5% Others 23 28 n.m. n.m. Total Energy 1,343 1,41
Slide 28: Telecom Segment – Profit and Loss Statement
Telecom Segment – Profit and Loss Statement Euro Millions Q1 2014 Q1 2013 1) FY 2013 1) Sales to Third Parties 236 253 986 YoY total growth (6.7%) YoY organic growth 0.7% Adj. EBITDA 18 20 106 % on sales 7.6% 8.0% 10.8% Adj. EBIT 7 10 63 % on sales 3.0% 3.8% 6.4% 1) Final restated figures in applica
Slide 29: 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 J-08 J-09 J-10 J-11 J-12 J-13 J-14 J-08 J-09 J-10 J-11 J-
Slide 30: 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