Prysmian S.p.a. · MIL:PRY
Prysmian — Banca Akros Workshop 2012
87 slides from Prysmian's conference presentation, Jun 22, 2012
Slide 1: Company Presentation - Banca Akros Workshop 2012
Company Presentation Banca Akros Workshop 2012 Sicily - June 22nd, 2012 Presentation title | Prysmian Group | Date 1
Slide 2: Agenda
AGENDA Group Overview & 2012 Outlook Draka integration Financial Results Appendix Company Presentation – June 2012 2
Slide 3: Q1 2012 Key Financials
Q1 2012 Key Financials Euro Millions, % on Sales Sales Adjusted EBITDA (4) Adjusted EBIT (5) Reported(1) Full combined(2) Reported(1) Full combined(2) Reported(1) Full combined(2) 568 426 3 7,583 387 309 4,571 3 1,881 1,874 119 130 91 1,490 3 101 76 84 2010 2011 Q1'11 Q1'11 Q1'12 2010 2011 Q1'11 Q1'
Slide 4: Utilities
Utilities Euro Millions, % of Sales – Full Combined Results Sales to Third Parties Highlights DISTRIBUTION 2,267 1,873 • Lower volume due to weak demand in key European countries. Continuous positive trend in other geographical areas • Positive volume trend in Nordic countries partially offset lower
Slide 5: Utilities – Record visibility on current Order-book
Utilities – Record visibility on current Order-book Capacity increase in submarine to support sales growth next years Strong increase in transmission Orders Backlog to support margins recovery in Utilities Adj. EBITDA 2011 Combined High Voltage ~ 2,300 Submarine ~ 1,700 ~ 600 Transmission ~ 1,050 ~
Slide 6: Trade & Installers
Trade & Installers Euro Millions, % of Sales – Full Combined Results Sales to Third Parties Highlights • Minor recovery in demand driven by extra-European countries 2,412 2,236 • Europe: lower volumes in Central and South Europe partially offset by slight improvement in Eastern Europe, Nordics and U
Slide 7: Industrial
Industrial Euro Millions, % of Sales – Full Combined Results Sales to Third Parties Highlights OGP • Strong oil Offshore demand driving increase in sales and profitability. 1,736 Better capacity saturation in Norway and China driven by positive trend in 1,481 North Sea and Asian markets SURF • Incre
Slide 8: Telecom
Telecom Euro Millions, % of Sales – Full Combined Results Sales to Third Parties Highlights Optical / Fiber 1,431 • Positive trend in demand expected to continue driven by higher data 1,276 traffic in consolidated markets and new backbone/metropolitan ring connections in emerging countries • Gradual
Slide 9: First year of integration increasing confidence on Synergies Targets
First year of integration increasing confidence on Synergies Targets Euro Millions Synergies Plan 2011-15 Approx. 150 Overheads (Fixed costs) Procurement Operations 100 60-70 Restructuring costs 45 30-40 13 * 10 40-60 6 7 FY11 Target FY11 FY12 Target FY13 Target 2014-15 Target Achieved Restructuring
Slide 10: 2012 Outlook
2012 Outlook Growing profitability in a challenging market environment LTM* Adj.EBITDA evolution (€ mln) 2012 Adj.EBITDA Target (€ mln) 600 650 Midpoint target based on: 625 597 586 • Growing synergies from Draka integration 576 576 554 535 • Higher contribution from submarine • Continuous increase
Slide 11: Agenda
AGENDA Group Overview & 2012 Outlook Draka integration Financial Results Appendix Company Presentation – June 2012 11
Slide 12: Integration process update
Integration process update Successful deployment of new organization and common processes Q2 2011 H2 2011 FY 2012 Design Execution • New Group Organization and done • Start deployment of new organization done • Consolidate “One-company” identity with common targets: Key People and processes o Ke
Slide 13: The new organization model
The new organization model To strengthen leadership in all business segments leveraging on a global platform New organization: a matrix linking country and group functions Utilities T&I Industrial Telecom Group Functions Local Intermediate Global (Optical+Copper) Business Multimedia & Optical Fiber
Slide 14: Agenda
AGENDA Group Overview & 2012 Outlook Draka integration Financial Results Appendix Company Presentation – June 2012 14
Slide 15: Profit and Loss Statement
Profit and Loss Statement Euro Millions Q1 2011 Q1 2011 Q1 2012 Reported a) Combined b) Sales 1,874 1,490 1,881 YoY total growth -0.4% c) YoY organic growth 2.5% c) Adj.EBITDA 130 101 119 % on sales 6.9% 6.8% 6.3% Non recurring items (15) (9) EBITDA 115 92 % on sales 6.1% 6.2% Adj.EBIT 91 76 84 % on
Slide 16: Extraordinary Effects
Extraordinary Effects Euro Millions Q1 2011 Q1 2012 Reported a) Antitrust investigation 1 - Restructuring (14) (2) Draka transaction costs - (5) Draka integration costs (1) - Draka change of control effects - (2) Other (1) - EBITDA adjustments (15) (9) Special items 13 (20) Gain/(loss) on metal deri
Slide 17: Financial Charges
Financial Charges Euro Millions Q1 2011 Q1 2012 Reported a) Net interest expenses (26) (22) Bank fees Amortization (2) (2) Gain/(loss) on exchange rates (1) (9) (1) Gain/(loss) on derivatives (1) 4 Net financial charges (30) (29) Share in net income of associates 2 1 Notes Total financial charges (2
Slide 18: Statement of financial position (Balance Sheet)
Statement of financial position (Balance Sheet) Euro Millions 31 March ‘12 31 March ‘11 31 December ‘11 Net fixed assets 2,234 2,114 2,255 of which: intangible assets 615 583 618 of which: property, plants & equipment 1,528 1,459 1,544 Net working capital 814 970 552 of which: derivatives assets/(li
Slide 19: Cash Flow
Cash Flow Euro Millions Q1 2011 Q1 2011 Q1 2012 Reported a) Combined b) Adj.EBITDA 130 101 119 Non recurring items (15) (9) (14) EBITDA 115 92 105 Net Change in provisions & others (12) (14) (15) Cash flow from operations 103 78 90 (before WC changes) Working Capital changes (243) (177) (269) Paid I
Slide 20: Agenda – Appendix: Draka Acquisition
AGENDA Group Overview & 2012 Outlook Draka integration Financial Results Appendix – Draka Acquisition Company Presentation – June 2012 20
Slide 21: Full support from Draka shareholders to the new Prysmian industrial project
Full support from Draka shareholders to the new Prysmian industrial project Business shares • 99.0% of Draka ordinary Line tendered (48,257,719 shares) • 90.4% tendered during the Offer Period (06 Jan ‘11 – 03 Feb ‘11). Settlement on the 22nd of February • 8.6% tendered during the Post Closing Accep
Slide 22: The new global market leader
The new global market leader Combined Financials Leader in the cable industry Sales 2011: €8.0 bn SALES Adj.EBITDA € 8.0 bn a) € 586 mln 33% Utilities T&I Industrial (1) Telecom Draka 2.7 167 € 2.3 bn € 2.4 bn € 1.9 bn € 1.4 bn 67% Prysmian 5.4 419 FY’11 FY’11 (1) Includes consolidation adjustments
Slide 23: Transaction Rationale
Transaction Rationale Creation of a World’s Leading Cables & Systems Company Unique and Highly Complementary Combination, with Increased Coverage of Emerging Markets Strengthened Leadership in All Value Added Market Segments Significant Synergy Potential Strong Platform for Future Organic Growth and
Slide 24: Creation of a World's Leading Cables & Systems Company
Creation of a World’s Leading Cables & Systems Company N°1 in cable solutions for the energy and telecommunication business 8.0 6.1 5.5 €bn, 2011 Sales 4.0 3.8 3.7 3.2 2.8 2.5 1.2 Prysmian Nexans LS Cable & General Cable Furukawa Leoni Southwire Fujikura Hitachi Cable NKT Cables Group System Source:
Slide 25: Agenda – Appendix: Prysmian at a Glance
AGENDA Group Overview & 2012 Outlook Draka integration Financial Results Appendix – Prysmian at a Glance Company Presentation – June 2012 25
Slide 26: Leading player in all market segments
Leading player in all market segments Sales breakdown Sales breakdown by geographical area Sales breakdown by business area FY 2011 combined FY 2011 combined (FY 2011 Prysmian excl.Draka) (FY 2011 Prysmian excl.Draka) APAC Telecom 15% 18% (12%) (10%) Utilities 28% (40%) Other Latin America 2% 9% (3%
Slide 27: Profitability recovery across all segments
Profitability recovery across all segments Euro Millions, % on Sales Sales breakdown by business Organic Growth FY 2011 combined FY 2011 combined 17.8% Telecom Utilities 18% 28% 11.7% Other 8.5% 8.8% 2% € 8.0 bn T&I Industrial 0.1% 30% 22% Utilities T&I Industrial Telecom Total Adj.EBITDA breakdown
Slide 28: Key Milestones
Key Milestones 1998 2001 2005 2008 2011 Growth by Restructuring Growth by Profitable growth Managing the downturn acquisition process acquisition Public Largest Cable Closure of 11 July 28th 2005: Listing Strategic Company Maker plants Goldman Sachs Acquisitions May 3rd 2007: investments March 2010:
Slide 29: A unique portfolio driving sustainable margin growth
A unique portfolio driving sustainable margin growth Euro millions and % on Sales Adj.EBITDA breakdown by business Adj.EBITDA margin 586 Tot.Adj. 542 EBITDA 529 7.3% 10.5% % on 10.3% sales 403 10.8% 387 8.5% 287 266 268 250 237 155 128 113 110 93 84 76 62 61 48 49 41 36 36 31 12.5% 8.6% 10.6% 8.6% 1
Slide 30: Prysmian Group business portfolio
Prysmian Group business portfolio Focus on high value added segments PROFITABILITY Extended SURF business (Flexible Pipes + perimeter Umbilicals) Network Components Submarine Look for High Extra HV Profitable Optical Cables & Fibre Growth High Voltage • Focus on products and service Industrial Mediu
Slide 31: Increasing exposure to Emerging markets
Increasing exposure to Emerging markets (30% of 2011 sales) Selective growth in High value added businesses to protect ROCE 2011 Combined Sales breakdown by geographical area % on tot € bn Growth drivers: EMEA 64% 5.1 • Telecom (Optical, MMS) Of which Eastern Europe 10% 0.8 • Utilities HV Eastern Eu
Slide 32: Targeting High-tech segments and profitable extra-EU markets
Targeting High-tech segments and profitable extra-EU markets CAPEX evolution in the last 5 years Capacity Increase & Product mix (1) (€m) Capex by Geographical area (€m) Maintenance, Efficiency, IT and R&D Capex Submarine Capacity Increase & Product mix Capex (excl. Submarine) 163 163 116 116 107 10
Slide 33: Metal Price Impact on Profitability
Metal Price Impact on Profitability Supply Main Metal Influence on Cable Price Metal Fluctuation Management Contract Application Impact Impact • Projects (Energy • Technology and design • Pricing locked-in at order intake transmission) content are the main • Profitability protection through Predeter
Slide 34: Agenda – Appendix: Energy
AGENDA Group Overview & 2012 Outlook Draka integration Financial Results Appendix – Energy Company Presentation – June 2012 34
Slide 35: Clusters of Cable Manufacturers in the Industry
Clusters of Cable Manufacturers in the Industry Competitive scenario – Energy Cables Company Presentation – June 2012 35
Slide 36: Full package of solutions for Energy Business
Full package of solutions for Energy Business Utilities Trade & Installers Industrial • Power Transmission • LV cables for construction • Specialties & OEM (rolling stock, nuclear, defence, crane, – Underground EHV, HV-DC/AC – Fire performing mining, marine, electro medical, – Submarine (turn-key) E
Slide 37: Utilities – Power Transmission
Utilities – Power Transmission Business description Key customers High/extra high voltage power transmission Customer base drawn from all major national solutions for the utilities sector distribution networks • Underground High Voltage Cabling solutions for power plant sites and primary distributio
Slide 38: Utilities – Power Transmission
Utilities – Power Transmission Long term drivers supporting orders backlog at peak level Utilities – Sales breakdown Submarine (€ million) FY 2011 combined Orders Backlog evolution Network ~1,700 component 7% Transmission - Submarine 22% ~1,000 ~1,050 ~900 ~800 ~650 ~650 ~550 € 2.3 bn Dec'08 Jun'09
Slide 39: Utilities – Submarine Systems
Utilities – Submarine Systems Key success factors Key Projects Customer Period €m(1) • Track record and reliability Phu Quoc (Vietnam) EVNSPC 2012-14 67 • Ability to design/execute turnkey Western Link NGET/SPT Upgrades Ltd 2012-15 800 solution • Quality of network services HelWin2 TenneT 2012-15 20
Slide 40: Utilities – Western Link a milestone in the submarine sector
Utilities – Western Link a milestone in the submarine sector Confirmed leadership in terms of know-how and innovation capabilities Western Link route Large Off-shore Wind investments planned in Scotland Western Link milestones • The highest value cable project ever awarded, worth €800 mln • The high
Slide 41: Utilities – 37GW of new Offshore Wind by 2020
Utilities – 37GW of new Offshore Wind by 2020 to achieve EU Target Four major countries accounting for about 85% of total new capacity Offshore Wind capacity to be installed (GW) Largest project awarded in Europe: SylWin1 (North Sea to mainland Germany): 2011 3.8 • € 280m (cable portion) • 864MW • 1
Slide 42: Utilities – Nuclear decrease as new driver for Renewables
Utilities – Nuclear decrease as new driver for Renewables Germany exit from nuclear to potentially lower nuclear investments in other countries German electricity system highly Renewables load factor at run rate dependent on nuclear capacity utilization (2020) Installed capacity 2010 Net production
Slide 43: Utilities – Power Distribution
Utilities – Power Distribution Market drivers Key customers Key customers are all major national distribution network operators • Long term growth in electricity consumption • Mandated improvements in service quality • Investment incentives to utilities • Urbanization Key success factors Action plan
Slide 44: Limited downside for cyclical businesses on current profitability
Limited downside for cyclical businesses on current profitability The Power Distribution case • Minor profitability improvement in 2011 despite volume recovery • Low downside risk on current ebitda margin level (5-6%) PD – Volumes and Contribution Margin evolution a) (2007=100) Adj.EBITDA Adj.EBITDA
Slide 45: Trade & Installers
Trade & Installers Business description Key customers • Key customers include major: • Low voltage cables for residential and non • Specialized distributors residential construction • Channel differentiation with both: • Direct sales to end customers (Installers) • General distributors • Indirect sa
Slide 46: Trade & Installers
Trade & Installers Improving geographical mix with higher exposure to Nordics and APAC (excl.China) Sales breakdown by geographical area FY 2011 combined (FY 2011 Prysmian excl.Draka) Eastern Europe 21% (28%) Nordics 11% € 2.4 bn (2%) (€ 1.6 bn) Central & Southern Europe North America 47% 5% (48%) (
Slide 47: Trade & Installers – Technology content
Trade & Installers Key success factors Product overview • Product range • On-time delivery / Product availability • Inventory/WC management • Cost leadership + • Channel management Fire Performance/ • Customers’ relationship Accessories Technology content Specials High-End Low Smoke Zero Halogen Act
Slide 48: Industrial
Industrial Business description Key customers Integrated cable solutions highly customized to our Large and differentiated customer base industrial customers worldwide generally served through direct sales Oil & Gas Addressing the cable needs of research and refining, exploration and production. Pro
Slide 49: Industrial – A leading presence worldwide
Industrial A leading presence worldwide Sales breakdown by geographical area Sales breakdown by business segment FY 2011 combined FY2011 combined (FY 2011 Prysmian excl.Draka) Other Asia Pacific Elevator 2% 15% 6% (19%) Renewables Specialties & 14% OEM Latin America 11% 35% (19%) € 1.7 bn € 1.7 bn (
Slide 50: Industrial – Investing in the high value added off-shore oil business
Industrial – Investing in the high value added off-shore oil business New flexible pipes plant in Brazil and acquired downhole technology from Draka Vila Velha (BRA): new flexible pipes plant built Over US$ 100m sales in FY2011 next to the pre-existing umbilical plant Umbilical Umbilical for Power F
Slide 51: Industrial – Strengthening presence in the key Brazilian market
Industrial – Strengthening presence in the key Brazilian market First flexible Pipes delivered (Namorado field) and new orders for both Flexible Pipes and DHT New orders for Flexible Pipes (Sidon oil field) and DHT (several oilfields in Campos Basin) Petrobras oil production in Brazil 3.1 3 2.0 Deep
Slide 52: Industrial – Off-shore oil exploration
Industrial – Off-shore oil exploration Oilfield structure Flexible Pipes Fixed Floating Platform Floating Platform (SEMI-SUBMERSIBLE) Platform (FPSO) Umbilical Injection control Umbilical (Power) Flexible Pipes Umbilical For control Christmas Manifold Tree Petrol Well Company Presentation – June 201
Slide 53: Industrial – Off-shore oil exploration
Industrial – Off-shore oil exploration Cross selling opportunities driven by the new Downhole technology business contributed by Draka Downhole Technology (DHT) HYBRID ELECTRO-OPTIC FIBER OPTIC ELECTRICAL GAS & FLUID TUBING PACKAGED GAS & FLUID TUBING Company Presentation – June 2012 53
Slide 54: Industrial – 120GW of new Solar and Onshore Wind capacity by 2020
Industrial – 120GW of new Solar and Onshore Wind capacity by 2020 Four major countries accounting for about 70% of total new capacity Onshore Wind and Solar - capacity to be installed (GW) Wind Onshore 2011 90 48 138 Solar 2020E 170 90 260 France (GW) UK (GW) 18 24 9 5 2011 2020E 2011 2020E Spain (G
Slide 55: Macro-structure of Energy Cables
Macro-structure of Energy Cables Product macro structure Production process Conductor Final production Outer jacket (drawing, Insulation Screening Lay up Armouring Sheathing quality (Polyolefine, PVC, inspection Insulation (XLPE, EPDM) stranding) …) WB yarns Conductor (Cu, Al) Building Wire (T&I) Lo
Slide 56: Agenda – Appendix: Telecom
AGENDA Group Overview & 2012 Outlook Draka integration Financial Results Appendix – Telecom Company Presentation – June 2012 56
Slide 57: Major Players within the Telecom Industry
Major Players within the Telecom Industry Competitive scenario Global Market Presence Continental YOFC Local Niche Focused Wide Product Portfolio Range Company Presentation – June 2012 57
Slide 58: All cable solutions for Telecom Business
All cable solutions for Telecom Business Telecom • Optical Cables • Connectivity/FTTx passive systems • Optical Fiber • Copper Cables • Multimedia Solutions • Telecom Solutions Company Presentation – June 2012 58
Slide 59: Our Telecom Business
Our Telecom Business Business description Key customers Integrated cable solutions focused on high -end Telecom Key customers include key operators in the telecom sector Telecom solutions Optical cables: tailored for all today’s challenging environments from underground ducts to overhead lines, rail
Slide 60: Telecom
Telecom A more diversified portfolio to strengthen market presence worldwide Sales breakdown by geographical area Sales breakdown by business segment FY 2011 combined FY2011 combined (FY 2011 Prysmian excl.Draka) Asia Pacific JVs and other 25% 23% Optical, (16%) Connectivity and Fiber EMEA 44% € 1.4
Slide 61: Optical cables
Optical cables Global overview Market trends Key success factors • Demand function of level of capital expenditures • Continuous innovation and development of new budgeted by large telecom companies cable & fibre products (PTT/incumbents as well as alternative • Cable design innovation with special
Slide 62: Telecom Cables Main Applications
Telecom Cables Main Applications BACKBONE METROPOLITAN RING ACCESS NETWORK Company Presentation – June 2012 62
Slide 63: Telecom - Europe as major opportunity in optical cables development
Telecom - Europe as major opportunity in optical cables development FTTH investments continue to grow but still at 3% of total subscribers in Europe OECD fixed (wired) broadband subscribers by country OECD Total subscribers (309mln) by technology Prysmian Group Leader in most of the Europe: 140 mln
Slide 64: Consolidated leadership in Australia to benefit from new NBN project
Consolidated leadership in Australia to benefit from new NBN project Start-up of National broadband network in 2011 Rollout plan for National Broadband Network • Government initiative to provide direct fibre connection to 93% of Australian subscribers (residential and business) • AUD 43 bn capex pla
Slide 65: Macro-structure of Telecom Cables
Macro-structure of Telecom Cables Product macro structure Production process Primary Coating (250 Micron) Fibre Cladding (125 Micron) optic Core (10 Micron) Final quality Pre form deposition Consolidation Drawing inspection Main Technologies: OVD - VAD - MCVD Aramid Yarns Loose tubes Optical fibres
Slide 66: Agenda – Appendix: Financials
AGENDA Group Overview & 2012 Outlook Draka integration Financial Results Appendix – Financials Company Presentation – June 2012 66
Slide 67: Bridge Consolidated Sales
Bridge Consolidated Sales Euro Millions – Full Combined Total Consolidated +2.5% 48 ( 71 ) 16 1,881 1,874 Q1 2011 Combined Org.Growth Metal Effect Exchange Rate Q1 2012 Energy Cables & Systems Division +1.8% 28 ( 68 ) 9 1,559 1,528 Q1 2011 Combined Org.Growth Metal Effect Exchange Rate Q1 2012 Telec
Slide 68: Energy Segment – Profit and Loss Statement
Energy Segment – Profit and Loss Statement Euro Millions Q1 2011 Q1 2011 Q1 2012 Reported a) Combined b) Sales to Third Parties 1,528 1,284 1,559 YoY total growth -2.0% c) YoY organic growth 1.8% c) Adj. EBITDA 95 84 94 % on sales 6.2% 6.5% 5.9% Adj. EBIT 68 64 68 % on sales 4.5% 4.9% 4.3% a) Includ
Slide 69: Energy Segment – Sales and Profitability by business area
Energy Segment – Sales and Profitability by business area Euro Millions, % of Sales Growth – Q1 combined Q1 2011 Total Organic Q1 2012 Comb. growth growth Utilities 489 514 -4.8% -3.8% Sales to Third Parties Trade & Installers 541 567 -4.6% 2.5% Industrial 464 413 12.4% 15.2% Others 34 65 n.m. n.m.
Slide 70: Telecom Segment – Profit and Loss Statement
Telecom Segment – Profit and Loss Statement Euro Millions Q1 2011 Q1 2011 Q1 2012 Reported a) Combined b) Sales to Third Parties 346 206 322 YoY total growth 7.4% c) YoY organic growth 6.1% c) Adj. EBITDA 35 17 25 % on sales 10.0% 8.1% 7.4% Adj. EBIT 23 12 16 % on sales 6.5% 5.7% 4.9% a) Includes Dr
Slide 71: Net Working Capital
Net Working Capital Euro Millions 31 March ‘12 31 March ‘11 31 December ‘11 Inventories 1,116 1,185 929 Trade accounts receivables 1,340 1,340 1,197 Trade accounts payables (1,528) (1,492) (1,421) Other receivables/(payables) (109) (105) (126) Operative Net working capital 819 928 579 Derivatives as
Slide 72: Financial Structure
Financial Structure Euro Millions Debt structure (€m) 31.03.2012 (€m) Available 31.03.12 31.12.11 Used Funds (2) Maturity Term Loan 672 674 672 - 12/2014 Eurobond 417 412 417 - 04/2015 Revolving Credit Facility - - - 395 12/2014 Securitization 105 111 105 245 07/2012 Term Loan 2011 400 400 400 - 03/
Slide 73: FY 2011 Key Financials
FY 2011 Key Financials Draka Prysmian Euro Millions, % on Sales Sales Adjusted EBITDA (4) Adjusted EBIT (5) Reported(1) Full combined(2) Reported(1) Full combined(2) Reported(1) Full combined(2) 435 3 3 7,973 3 586 426 3 7,583 568 394 535 6,990 98 107 167 334 2,279 2,669 403 149 148 309 85 2,419 387
Slide 74: Profit and Loss Statement
Profit and Loss Statement Euro Millions FY 2011 Reported a) FY 2010 Combined b) FY 2011 Combined b) Cons. Cons. PRY DRAK Total PRY DRAK Total PRY DRAK Total adj. adj. Sales 5,363 2,279 (59) 7,583 4,571 2,419 6,990 5,363 2,669 (59) 7,973 YoY total growth 17.3% 8.5% 65.9% 22.5% 18.7% 17.3% 10.4% 14.1%
Slide 75: Extraordinary Effects
Extraordinary Effects Euro Millions FY 2011 Reported a) FY 2010 Combined b) Cons. PRY DRAK Total PRY DRAK Total adj. Antitrust investigation (205) - - (205) - - - Restructuring (22) (34) - (56) (11) (48) (59) Legal costs - - - - (5) - (5) Draka transaction costs (6) - - (6) (6) (8) (14) Draka integr
Slide 76: Financial Charges
Financial Charges Euro Millions FY 2011 Reported a) FY 2010 Combined b) Cons. PRY DRAK Total PRY DRAK Total adj. Net interest expenses (84) (20) - (104) (61) (23) (84) Bank fees Amortization (11) - - (11) (6) (4) (10) Gain/(loss) on exchange rates (19) (2) - (21) 7 (3) 4 (1) Gain/(loss) on derivativ
Slide 77: Statement of financial position (Balance Sheet)
Statement of financial position (Balance Sheet) Euro Millions 31 Dec 2011 31 Dec 2010 Total PRY Net fixed assets 2,255 1,029 of which: intangible assets 618 59 of which: property, plants & equipment 1,544 958 Net working capital 552 494 of which: derivatives assets/(liabilities) (27) 37 31 Dec 2010
Slide 78: Cash Flow
Cash Flow Euro Millions FY 2011 Comb. a) FY 2011 Rep. b) FY 2010 Rep. c) Total Total PRY Adj.EBITDA 586 568 387 Non recurring items (303) (299) (22) EBITDA 283 269 365 Net Change in provisions & others 197 198 (17) Release of inventory step-up 14 14 - Cash flow from operations 494 481 348 (before WC
Slide 79: Prysmian Historical Key Financials
Prysmian Historical Key Financials Euro Millions, % of Sales – Pre Draka acquisition Sales Sales Adjusted EBITDA (1) Adjusted Adjusted EBITEBIT 1 (2) 5,007 5,118 5,144 529 542 464 477 4,571 +4.2%* 3,731 -17.4%* +3.2%* 407 403 330 +8.2%* 387 334 4,686** 309 2006 2007 2008 2009 2010 2006 2007 2008 200
Slide 80: Historical Key Financials – Utilities and T&I
Historical Key Financials by Business Area – Utilities and T&I Euro Millions, % of Sales – Pre Draka acquisition Sales Vs Third Parties Adjusted EBITDA (1) Adjusted EBIT (2) 2,028 287 1,853 1,894 1,790 266 +12.1%* 237 250 256 1,598 237 -13.9%* 197 208 215 Utilities +3.3%* +1.5%* 157 2006 2007 2008 2
Slide 81: Historical Key Financials – Industrial and Telecom
Historical Key Financials by Business Area – Industrial and Telecom Euro Millions, % of Sales – Pre Draka acquisition Sales Vs Third Parties Adjusted EBITDA (1) Adjusted EBIT (2) 850 795 742 93 84 80 629 628 +5.0%* -16.1%* 71 Industrial +21.1%* 62 61 -1.1%* 46 46 42 34 2006 2007 2008 2009 2010 2006
Slide 82: Agenda – Appendix: Cable Industry Reference Market
AGENDA Group Overview & 2012 Outlook Draka integration Financial Results Appendix – Cable Industry Reference Market Company Presentation – June 2012 82
Slide 83: The Global Cables Reference Market
The Global Cables Reference Market World-Wide Cable Reference Market Size, 2011 Global Cables Reference Market Energy Cables Reference Market (~€89bn) Latin North € 99 bn Latin North America America America 4% 4% America 13% 13% EMEA APAC 30% 53% EMEA 30% Telecom Cables Reference Market (~€10bn ) AP
Slide 84: Market Volumes Trend
Market Volumes Trend Energy Cables Reference Market Million Tons • Long term growth driven by: Conductor 13.8 • Energy consumption 13.1 11.2 11.7 12.3 10.3 10.7 10.0 10.7 • Investments in power grid 9.5 8.5 9.0 interconnections 6.9 7.1 7.4 7.8 6.5 6.7 CAGR: 5.5% • Investments in power transmission a
Slide 85: Telecom – Demand evolution by geographical area
Telecom – Demand evolution by geographical area Optical fibre cable (Million km) CAGR (11-15) +4.1% 236 240 230 224 205 47 49 +4.7% 45 187 43 173 40 36 35 34 -2.2% 36 30 37 142 9 9 +6.9% 37 9 29 8 116 32 27 7 4 3 Total 92 26 30 EMEA 18 26 4 141 146 149 +5.5% 135 N. America 25 3 119 120 113 2 S.Ameri
Slide 86: Reference Scenario
Reference Scenario Commodities & Forex Brent Copper Aluminium Brent $/ton Copper $/ton Aluminium $/ton Brent €/ton Copper €/ton Aluminium €/ton 150 12,000 3,500 3,000 125 10,000 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-08 Jan-09 Jan-10 J
Slide 87: Disclaimer
Disclaimer • The managers responsible for preparing the company's financial reports, J.Calvo 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 t