Prysmian S.p.a. · MIL:PRY
Prysmian — Morgan Stanley Industrial CEOs Conference 2014
81 slides from Prysmian's conference presentation, Sep 11, 2014
Slide 1: Company Presentation
Company Presentation Morgan Stanley Industrial CEOs Conference London - September 11th, 2014 Company Presentation – September 2014 1
Slide 2: Agenda
AGENDA Group Overview & 2014 Outlook Draka integration Financial Results Appendix Company Presentation – September 2014 2
Slide 3: Prysmian Group at a glance
Prysmian Group at a glance LTM H1’14 Results Sales breakdown by geography Sales breakdown by business APAC Telecom 12% 14% Other Utilities Latin America 1% 32% 8% € 6.8 bn € 6.8 bn North America Industrial 14% 25% EMEA 66% T&I 28% Adj. EBITDA by business Adj. EBITDA margin by business Telecom 19% 10
Slide 4: Long Cycle Businesses vs. Short Cycle Businesses
Long Cycle Businesses Vs. Short Cycle Businesses Adj. EBITDA breakdown Long Cycle Businesses Short Cycle Businesses Short Cycle Businesses Adj. EBITDA 67% 33% (Combined Prysmian + Draka) • Profitability: stable at bottom level (excl. synergies contribution) Utilities Utilities • Approx. 50% profitab
Slide 5: H1 2014 Key Financials
H1 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 +1.3%* +3.4%* 3,504 282 278 208 207 3,358 3,287 204 133 2012 2013 H1'13 H1'14 H1'14 2012
Slide 6: H1 profitability slightly above previous year excl. Forex and WL
H1 profitability slightly above previous year excl. Forex and WL Gradual improvement in organic growth (despite soft Q2) mainly due to easier comparable basis in Q1 Organic Growth evolution Adj. EBITDA evolution % change on same period of previous year Euro million 140 292 7.4% 7.8% 282 2 14 4.5% 12
Slide 7: Ongoing volume recovery still not supported by pricing
Ongoing volume recovery still not supported by pricing H1 profitability impacted by lower pricing and negative currency. Limited effect expected in the coming quarters T&I Telecom Optical Volumes & CM/KG Volumes & CM/FKM CM / FKM (€/FKM) CM / KG (€/KG) Volumes (FKM) Volumes (tons) Stabilization of p
Slide 8: Utilities
Utilities Euro Millions, % on Sales Sales to Third Parties Highlights DISTRIBUTION Excl. WL -1.4%* sub.project • Double digit organic decrease in H1 due to lower utilities capex across all effect 2,278 2,217 major geographies (Europe, North and South America). Still weak demand -2.2%* expected in th
Slide 9: Western Link: a strong recovery to properly address the production issue
Western Link: a strong recovery to properly address the production issue and minimize the economic impact Project Highlights WL production process Progress Status Stranding Turntable • Awarded in February 2012 to Prysmian- • Cable called back Siemens consortium from UK successfully • Customers: Nati
Slide 10: Growing orders intake boosting backlog at peak level (€3bn)
Growing orders intake boosting backlog at peak level (€ 3bn) Record visibility in Submarine and good coverage for HV sales Transmission – Orders Backlog (€m) Transmission – Sales (€m) Submarine HV ~3,000 ~ 1,250 ~2,800 1.0x ~2,450 ~2,500 ~500 ~ 500 ~2,350 ~500 ~450 ~550 ~1,700 ~650 ~1,650 ~1,550 3.3
Slide 11: Trade & Installers
Trade & Installers Euro Millions, % on Sales Sales to Third Parties Highlights • Q2 confirms positive organic growth. H1 positive performance also -4.3%* attributable to weak comparable basis in H1’13. Europe remains the key 2,159 growth driver. 1,914 • Europe: on-going volume recovery from bottom l
Slide 12: Trade & Installers sales breakdown
Trade & Installers Sales breakdown Sales breakdown by geographical area Total Construction Investments LTM H1’14 2013 = 100 120 N.A. APAC Latam 110 Eastern Europe Europe 24% 100 90 Nordics 10% 80 A10 A11 A12 E13 E14 E15 E16 N. America € 1.9 bn 7% Focus on Europe 2013 = 100 Latin America 140 Central
Slide 13: Industrial
Industrial Euro Millions, % on Sales Sales to Third Parties Highlights +4.0%* Specialties & OEM 1) 1,801 1,764 • Lower sales due to continuous negative demand in Europe and decrease in Infrastructure investments in North America. Lower contribution of Mining, -0.3%* Infrastructure, Nuclear and Defen
Slide 14: Industrial: unfavorable sales mix
Industrial Unfavorable sales mix due to weak demand in high margin countries H1 2014 Organic Growth by geographical area (Vs. H1 2013) H1’14 Sales - € million Main positive: +3% • Elevator Main negative: • OGP -6% • Nuclear • Renewables H1’14 • Infrastructure Org.growth • Mining H1’14 NORTH AMERICA
Slide 15: Industrial sales breakdown
Industrial Sales breakdown Sales breakdown by geographical area Sales breakdown by business segment LTM H1’14 LTM H1’14 Other Asia Pacific 4% 20% Elevator 9% Specialties & OEM 1) EMEA 42% Latin America OGP & SURF 45% 9% € 1.7 bn 22% € 1.8 bn North America 26% Automotive 23% 1) Includes Renewables bu
Slide 16: Telecom
Telecom Euro Millions, % on Sales Sales to Third Parties Highlights -15.4%* • Positive organic growth thanks to higher volume in optical offset by lower average pricing and continuous decline in Copper. Negative pricing and 1,202 forex effect on profitability partially offset by cost reduction 986 O
Slide 17: Telecom sales breakdown
Telecom Sales breakdown Sales breakdown by geographical area Sales breakdown by business segment LTM H1’14 LTM H1’14 Asia Pacific Other 12% 5% Multimedia & Optical, Specials Connectivity 22% and Fiber Latin America 59% 14% EMEA € 1.0 bn 61% € 1.0 bn North America Copper 13% 14% Note: 2013 restated f
Slide 18: 2014 Outlook
2014 Outlook – Confirming profitability increase Vs 2013 excl. Forex and WL despite still tough demand and pricing FY 2014 Adj.EBITDA Target Vs FY 2013 (€ 613 m) Initial expected Adj.EBITDA 600 650 FY Target - €94m Western Link FY 2014 effect Current Adj.EBITDA 506 556 FY Target H1 2014 H2 2014E • S
Slide 19: Agenda
AGENDA Group Overview & 2014 Outlook Draka integration Financial Results Appendix Company Presentation – September 2014 19
Slide 20: Organization model
Organization model To strengthen leadership in all business segments leveraging on a global platform A matrix linking country and group functions Utilities T&I Industrial Telecom Group Functions Energy Products Energy Projects Telecom Business Telecom Solutions Specialties & OEM (Optical+Copper) Mul
Slide 21: First step of production footprint optimization completed
First step of production footprint optimization completed 7 plants closed and 1 plant restructured since Draka acquisition Wuppertal (GER) Industrial cables - partial closure Eschweiler (GER) T&I/Industrial cables Angel (CHI) Hickory (US) Semi-finished products/wires Derby (UK) Industrial/control ca
Slide 22: 2013 Synergies over target
2013 Synergies over target: Procurement run-rate, Overheads almost completed Plants rationalization to be executed in line with customers requirements to preserve service level Synergies Plan Euro million Overheads (Fixed costs) ~ 175 Procurement 150-160 Operations ~ 140 70 120 100 60 45 65 45 30 45
Slide 23: Key commercial initiatives in Industrial and Telecom
Key commercial initiatives in Industrial and Telecom Leverage on global product portfolio to increase sales and profitability Industrial: ~ +€240m sales by 2015 Vs 2012 Telecom: ~ +€190m sales by 2015 Vs 2012 CAGR ’12-’15 driven by new initiatives: ~ +4%* CAGR ’12-’15 driven by new initiatives: ~ +4
Slide 24: Agenda
AGENDA Group Overview & 2014 Outlook Draka integration Financial Results Appendix Company Presentation – September 2014 24
Slide 25: Profit and Loss Statement
Profit and Loss Statement Euro Millions H1 2014 excl. WL Submarine WL submarine H1 2014 H1 2013 1) FY 2013 1) project effect project effect Sales 3,358 (71) 3,287 3,504 6,995 YoY total growth (4.2%) (6.2%) YoY organic growth 3.4% 1.3% Adj.EBITDA 278 (74) 204 282 613 % on sales 8.3% 6.2% 8.0% 8.8% No
Slide 26: 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 35 • Utilities 2 • T&I 61 • T&I 4 • Industrial 49 • Industrial 5 •
Slide 27: Extraordinary Effects
Extraordinary Effects Euro Millions H1 2014 H1 2013 2) FY 2013 2) Antitrust investigation 32 1 6 Restructuring (7) (21) (50) Price adjustments 22 - - Other (7) (6) (6) EBITDA adjustments 40 (26) (50) Special items 3 (44) (47) Gain/(loss) on metal derivatives 6 (37) (8) Assets impairment - - (25) Oth
Slide 28: Financial Charges
Financial Charges Euro Millions H1 2014 H1 2013 2) FY 2013 2) Net interest expenses (42) (49) (100) of which non cash Conv.Bond interest exp. (4) (2) (6) Bank fees amortization (4) (5) (8) Gain/(loss) on exchange rates (4) (12) (27) Gain/(loss) on derivatives 1 ) (15) (11) (8) Non recurring effects
Slide 29: Statement of financial position (Balance Sheet)
Statement of financial position (Balance Sheet) Euro Millions 30 Jun 2014 30 Jun 2013 1) FY 2013 1) Net fixed assets 2,232 2,244 2,207 of which: intangible assets 587 597 588 of which: property, plants & equipment 1,415 1,435 1,390 Net working capital 751 696 386 of which: derivatives assets/(liabil
Slide 30: Cash Flow
Cash Flow Euro Millions H1 2014 H1 2013 1) FY 2013 1) Adj.EBITDA 204 282 613 Non recurring items 40 (26) (50) EBITDA 244 256 563 Net Change in provisions & others (75) (38) (76) Share of income from investments in op.activities (15) (14) (35) Cash flow from operations (before WC changes) 154 204 452
Slide 31: Agenda – Appendix: Prysmian at a Glance
AGENDA Group Overview & 2014 Outlook Draka integration Financial Results Appendix – Prysmian at a Glance Company Presentation – September 2014 31
Slide 32: Key Milestones
Key Milestones 1879 1902 1998 2001 2005 2008 2011 Organic Growth by Restructuring Managing the Growth by Establishment Profitable growth growth acquisition process downturn acquisition Listing Public #1 Cable Company July 28, ‘05: Strategic Company Maker founded as Product Closure of 11 GS “Pirelli
Slide 33: The World's Leading Cables & Systems Company
The World’s Leading Cables & Systems Company N°1 in cable solutions for the energy and telecommunication business 7.0 6.0 4.6 €bn, 2013 Sales 3.9 3.8 3.4 3.2 2.7 2.6 1.7 1.4 1.2 Prysmian Nexans General Leoni Southwire Furukawa LS Cable & Hitachi Fujikura Sumitomo Elsewedy NKT Cables Group Cable Elec
Slide 34: 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 35: Cash Flow generation as key priority to create value for shareholders
Cash Flow generation as key priority to create value for shareholders Growing capabilities to invest organically/acquisitions and remunerate shareholders Cash Flow generation 2012 benefited from approx. €100m cash-in (submarine business) expected in 2013 € mln 320 2.4x 240 2.0x 160 1.6x 80 1.2x Appr
Slide 36: Disciplined Capex to grow in high margin business
Disciplined Capex to grow in high margin business and out of Europe Investments focused on business with long term drivers and high entry barriers CAPEX 2007-2013 (€ mln) Cap. Increase & Product mix Prysmian + Draka € 27 million related to industrial Other 159 152 144 and R&D/HQ building 116 107 102
Slide 37: 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 38: Agenda – Appendix: Energy
AGENDA Group Overview & 2014 Outlook Draka integration Financial Results Appendix – Energy Company Presentation – September 2014 38
Slide 39: Clusters of Cable Manufacturers in the Industry
Clusters of Cable Manufacturers in the Industry Competitive scenario – Energy Cables Company Presentation – September 2014 39
Slide 40: 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 41: 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 transmission networks operators • Underground High Voltage Cabling solutions for power plant sites and primary d
Slide 42: Utilities – Investing in submarine to increase ROCE
Utilities – Investing in submarine to increase ROCE Strengthening production and installation (GME acquisition) capabilities Arco Felice (Italy) Drammen (Norway) Pikkala (Finland) Main projects in execution/orders backlog: • Western Link • Normandie 3 • HelWin 1-2/ SylWin 1/ • Balearic Islands BorWi
Slide 43: Utilities – Off-shore wind development in Europe still at early stage
Utilities – Off-shore wind development in Europe still at early stage High visibility on new projects to be awarded next quarters Europe Offshore Wind capacity (GW) Europe 2013 Cumulated Capacity by Country Cumulated Offshore Wind capacity (L axis) Others 0.3 GW Annual Additional capacity (R axis) N
Slide 44: Utilities – Major transmission projects to be awarded
Utilities – Major transmission projects to be awarded Main subsea and underground projects of pan-European significance List of main projects Main power flow trends 1. Italy – France Main subsea & underground projects in design & permitting 2. Germany (Borwin IV) Main planned subsea & underground pr
Slide 45: Utilities – Submarine Systems
Utilities – Submarine Systems Key success factors Latest Key projects Customers Period €m (1) Cyclades IPTO 2015-16 95 • Track record and reliability West of Adlergrund 50Hertz Offshore GmbH From 2015 730 • Ability to design/execute turnkey Shannon River Crossing ESB 2014-16 40 solution • Quality of
Slide 46: Utilities – Western Link a milestone in the submarine sector
Utilities – Western Link a milestone in the submarine sector 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 highest voltage level (600kV) ever reached by an insulated cable • Current
Slide 47: 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 48: Trade & Installers
Trade & Installers Business description Key customers • Low voltage cables for residential and non • Key customers include major: residential construction • Specialized distributors • Channel differentiation with both: • Direct sales to end customers (Installers) • General distributors • Indirect sa
Slide 49: 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 Action plan Zero
Slide 50: 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 51: SURF – First steps to build up a global business
SURF – First steps to build up a global business South America remains a key priority. Large off-shore explorations in West Africa and Apac 2012 Global oil & gas new discovery volumes by terrain Onshore 10% Shallow Water 10% Deep Water 80% Source: IHS, 2013 Umbilical projects out of Brazil Proven re
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 – Septembe
Slide 53: Industrial – Off-shore oil exploration: Downhole technology
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 – September 2014 53
Slide 54: 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 55: Agenda – Appendix: Telecom
AGENDA Group Overview & 2014 Outlook Draka integration Financial Results Appendix – Telecom Company Presentation – September 2014 55
Slide 56: 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 – September 2014 56
Slide 57: 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 58: 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 59: Telecom Cables Main Applications
Telecom Cables Main Applications BACKBONE METROPOLITAN RING ACCESS NETWORK Company Presentation – September 2014 59
Slide 60: Telecom – Solid drivers in optical confirmed despite weak 2013
Telecom – Solid drivers in optical confirmed despite weak 2013 Growing investments expected in South America and APAC Optical Cables 22% +6% +12% Prysmian 2015 vs. 2013 Sales* 51% Market Growth North America 16% Prysmian 2015 vs. 2013 +18% Sales* Market Growth EMEA Prysmian 2015 vs. 2013 +15% Sales*
Slide 61: Telecom: Growth opportunities from broadband in Europe
Telecom Growth opportunities coming from the development of broadband in Europe Evolution of NGA (Next Generation Access) Opportunities coming from national plans to coverage and high-speed (>30Mbps) / ultrafast achieve EU 2020 Digital Agenda targets (>100Mbps) take-up (% of homes) in the EU 100% Co
Slide 62: Telecom – FTTA as key driver of optical demand
Telecom – FTTA as key driver of optical demand 4G and Long Term Evolution (LTE) deployments require Fiber-to-the-Antenna (FTTA) Global LTE Growth Forecast Millions of users Roof top antenna towers for urban applications Antenna towers used by 4G and LTE networks Source: Informa Telecoms & Media, WCI
Slide 63: 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 64: Agenda – Appendix: Financials
AGENDA Group Overview & 2014 Outlook Draka integration Financial Results Appendix – Financials Company Presentation – September 2014 64
Slide 65: Bridge Consolidated Sales
Bridge Consolidated Sales Euro Millions Total Consolidated 116 ( 71 ) ( 89 ) (173) - 3,504 Org. growth excl.WL Org. growth incl.WL 3,287 3,287 +3.4% +1.3% H1 2013 Org.Growth WL effect Metal Effect Exchange Rate H1 2014 L-f-L Perimeter effect H1 2014 Energy Cables & Systems Division 112 ( 71 ) ( 84 )
Slide 66: P&L Statement – Application of IFRS 10-11
P&L Statement – Application of IFRS 10-11 Vs previous accounting Euro Millions H1 2013 H1 2013 FY 2013 FY 2013 FY 2012 FY 2012 Restated 1) Reported Restated 1) Reported Restated 1) Reported Sales 3,504 3,622 6,995 7,273 7,574 7,848 YoY total growth (7.7%) (7.3%) YoY organic growth (3.3%) (3.1%) Adj.
Slide 67: Balance Sheet – Application of IFRS 10-11
Stat. of fin. position (BS) – Application of IFRS 10-11 Vs previous accounting Euro Millions 30 Jun ‘13 30 Jun ’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 2,244 2,252 2,207 2,190 2,301 2,300 of which: intangible asse
Slide 68: Cash Flow – Application of IFRS 10-11
Cash Flow – Application of IFRS 10-11 Vs previous accounting Euro Millions H1 2013 H1 2013 FY 2013 FY 2013 FY 2012 FY 2012 Restated 1) Reported Restated 1) Reported Restated 1) Reported Adj.EBITDA 282 282 613 612 650 647 Non recurring items (26) (26) (50) (50) (101) (101) EBITDA 256 256 563 562 549
Slide 69: Energy Segment – Profit and Loss Statement
Energy Segment – Profit and Loss Statement Euro Millions H1 2014 excl. WL Submarine WL submarine H1 2014 H1 2013 1) FY 2013 1) project effect project effect Sales to Third Parties 2,870 (71) 2,799 2,990 6,009 YoY total growth (4.0%) (6.4%) YoY organic growth 3.8% 1.4% Adj. EBITDA 235 (74) 161 232 50
Slide 70: Energy Segment – Sales and Profitability by business area
Energy Segment – Sales and Profitability by business area Euro Millions, % on Sales Total Organic H1 2014 H1 2013 1) growth growth Utilities 992 1,067 (7.0%) (2.2%) Sales to Third Parties Trade & Installers 944 974 (3.1%) 7.4% Industrial 817 895 (8.7%) (0.3%) Others 46 54 n.m. n.m. Total Energy 2,79
Slide 71: Telecom Segment – Profit and Loss Statement
Telecom Segment – Profit and Loss Statement Euro Millions H1 2014 H1 2013 1) FY 2013 1) Sales to Third Parties 488 514 986 YoY total growth (5.1%) YoY organic growth 0.8% Adj. EBITDA 43 50 106 % on sales 8.8% 9.8% 10.8% Adj. EBIT 22 29 63 % on sales 4.5% 5.6% 6.4% 1) Final restated figures in applic
Slide 72: Financial Structure
Financial Structure Euro Millions Debt structure (€m) 30.06.2014 (€m) Available 30.06.14 31.03.14 31.12.13(1) Used Funds (3) Maturity Term Loan 2010(2) - - 183 - - - Revolving 2010(2) - 25 - - - - Eurobond 5.25% 404 419 414 404 - 04/2015 Term Loan 2011 400 400 400 400 - 03/2016 Revolving 2011 100 10
Slide 73: Dividends
Dividends Dividend per share in line with last year supported by sound cash generation Dividend approved by the last Shareholders’ Meeting • Dividend Per Share € 0.420 Total Shares (1) • Total payout: € 89 millions 214,591,710 • Ex-dividend date: 22 April 2014 • Payment date: 25 April 2014 • Dividen
Slide 74: 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) 529 542 5,007 5,118 5,144 4,571 464 477 407 403 387 3,742 3,731 330 334 309 +4.2% * 265 +8.2% * +9.3% * +3.2% * -17.4% * 171 2005 2006 2007 2008 2009
Slide 75: 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) 2,028 287 256 1,894 266 237 1,853 1,790 250 215 237 208 1,598 1,445 Utilities 197 157 +12.1% * 143 +3.3% * +1.5% * 107 -13.9%
Slide 76: 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 93 795 80 742 84 71 629 628 Industrial 62 61 489 46 +5.0% * +21.1% * 46 42 -1.1% * 39 34 -16.1% * 25 2005 2006 2007 2
Slide 77: Agenda – Appendix: Cable Industry Reference Market
AGENDA Group Overview & 2014 Outlook Draka integration Financial Results Appendix – Cable Industry Reference Market Company Presentation – September 2014 77
Slide 78: The Global Cables Reference Market
The Global Cables Reference Market World-Wide Cable Reference Market Size, 2013 2013 Global Cables Reference Market Energy Cables Reference Market (~€89bn) Latin North € 112 bn Latin America America America North 4% 13% 4% America 16% EMEA APAC 31% 52% EMEA APAC 30% 50% Telecom Cables Reference Mark
Slide 79: Market Volumes Trend
Market Volumes Trend Energy Cables Reference Market Million Tons • Long term growth driven by: Conductor 13.2 13.8 14.4 • Energy consumption 12.6 11.3 11.7 12.1 10.3 10.7 10.1 10.8 • Investments in power grid 9.5 7.8 8.5 9.0 interconnections 7.4 6.5 6.7 6.9 7.1 CAGR: 4.5% • Investments in power tran
Slide 80: Reference Scenario: Commodities & Forex
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 81: 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
Prysmian Group — Morgan Stanley Industrial CEOs Conference 2014 on 6ix