Prysmian S.p.a. · MIL:PRY
Prysmian — Cheuvreux Autumn Conference 2012
89 slides from Prysmian's conference presentation, Sep 19, 2012
Slide 1: Company Presentation - Cheuvreux Autumn Conference 2012
Company Presentation Cheuvreux Autumn Conference 2012 Paris - September 19th, 2012 Presentation title | Prysmian Group | Date 1
Slide 2: Agenda
AGENDA Group Overview & 2012 Outlook Draka integration Financial Results Appendix Company Presentation – September 2012 2
Slide 3: Leading player in all market segments
Leading player in all market segments Consolidated Sales breakdown Sales breakdown by geographical area Sales breakdown by business H1 2012 H1 2012 APAC Telecom 14% 19% Utilities 27% Latin America Other 9% 2% € 3.9 bn € 3.9 bn EMEA North America Industrial 63% 14% 24% T&I 28% Company Presentation –
Slide 4: Sales evolution by geographical area
Sales evolution by geographical area Improving geographical diversification with a limited exposure to weaker southern European countries € million Italy & Spain accounting for approx. 8% of Group Adj.EBITDA (H1’12) 3,965 4,008 3,916 3,701 16% EMEA Sales breakdown 14% 14% 3,289 H1 2012 – Total = 63%
Slide 5: 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 6: H1 2012 Key Financials
H1 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 7,583 3 387 309 0.0%** 4,571 287 308 229 269 204 212 3,574 3 3,965 3,916 3 2010 2011 H1'11 H1'11 H1'12 2010 2011
Slide 7: Utilities
Utilities Euro Millions, % of Sales – Full Combined Results Sales to Third Parties Highlights 2,318 DISTRIBUTION • Seasonality increase in Q2’12 vs Q1’12 but still lower volumes vs H1’11. Volume stabilizing at H1’12 level with no recovery expected in H2 1,125 1,073 • Continuous weak demand in centra
Slide 8: Utilities – Transmission
Utilities – Transmission Record Order-book despite European outlook confirms commitment on renewables and interconnections Sales breakdown Orders Backlog Evolution H1 2012 Submarine (€ million) Network Transmission - components Submarine ~1,700 6% 24% ~1,000 ~1,050 € 1.1 bn ~800 ~900 ~650 ~650 ~550
Slide 9: Trade & Installers
Trade & Installers Euro Millions, % of Sales – Full Combined Results Sales to Third Parties Highlights 2,233 • Continuous weak demand in Europe partially offset by extra-European countries -0.4%* • Europe: further deterioration in Central and South Europe (e.g. Italy and Spain) not expected to recov
Slide 10: Industrial
Industrial Euro Millions, % of Sales – Full Combined Results Sales to Third Parties Highlights 1,824 OGP • Sales and profitability increase in H1. Growing order-book in Offshore driven by North Sea, Middle East and Australia to sustain positive sales trend in H2 920 SURF 889 • H1 results in line wit
Slide 11: Industrial
Industrial Sales breakdown Sales breakdown by geographical area Sales breakdown by business segment H1 2012 H1 2012 Other Asia Pacific Elevator 3% 18% 7% Renewables Specialties & 13% OEM Latin America 32% 8% € 0.9 bn € 0.9 bn EMEA OGP & SURF 49% 23% North America 25% Automotive 22% Sound geographica
Slide 12: Telecom
Telecom Euro Millions, % of Sales – Full Combined Results Sales to Third Parties Highlights 1,431 Optical / Fiber • Continuous positive trend in global demand driven by extra-European markets • Europe: growing volume only in UK and Eastern Europe, stable for 701 746 most of the other countries. No m
Slide 13: Telecom
Telecom Sales breakdown Sales breakdown by geographical area Sales breakdown by business segment H1 2012 H1 2012 Asia Pacific JVs and other 23% 21% Optical, Connectivity and Fiber EMEA 47% 44% € 0.7 bn € 0.7 bn Multimedia & Latin America Specials 16% 17% North America Copper 17% 15% Increased exposu
Slide 14: Telecom
Telecom Becoming one of major long term drivers thanks to Draka acquisition Increasing weight on total profitability Steady growth in sales and profitability Prysmian Group Adj.EBITDA evolution Telecom Adj.EBITDA (€ mln - L axis) Telecom Adj.EBITDA Energy Adj.EBITDA Adj.EBITDA margin (R axis) 308 90
Slide 15: 2012 Outlook
2012 Outlook FY 2012 Adj.EBITDA Target (€ mln) 600 650 Likely to reach upper range of the Guidance based on: • Transmission projects phasing • Higher integration synergies in H2 • Oil off-shore backlog mainly loaded in H2 • Continuous positive trend in Telecom • Stabilization of cyclical businesses
Slide 16: Agenda
AGENDA Group Overview & 2012 Outlook Draka integration Financial Results Appendix Company Presentation – September 2012 16
Slide 17: 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 18: 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 19: 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 20: Agenda
AGENDA Group Overview & 2012 Outlook Draka integration Financial Results Appendix Company Presentation – September 2012 20
Slide 21: Profit and Loss Statement
Profit and Loss Statement Euro Millions H1 2011 H1 2011 H1 2012 Reported a) Combined b) Sales 3,916 3,574 3,965 YoY total growth (1.3%) c) YoY organic growth 0.0% c) Adj.EBITDA 308 269 287 % on sales 7.9% 7.5% 7.2% Non recurring items (42) (243) EBITDA 266 26 % on sales 6.8% 0.7% Adj.EBIT 229 204 21
Slide 22: Extraordinary Effects
Extraordinary Effects Euro Millions H1 2011 H1 2012 Reported a) Antitrust investigation (3) (200) Restructuring (27) (12) Draka transaction costs - (6) Draka integration costs (3) (6) Draka change of control effects - (2) Inventory step-up (PPA) - (14) Other (9) (3) EBITDA adjustments (42) (243) Spe
Slide 23: Financial Charges
Financial Charges Euro Millions H1 2011 H1 2012 Reported a) Net interest expenses (52) (47) Bank fees Amortization (5) (6) Gain/(loss) on exchange rates (21) (21) (1) Gain/(loss) on derivatives 22 12 Non recurring effects (2) - Net financial charges (58) (62) Share in net income of associates 8 4 No
Slide 24: Statement of financial position (Balance Sheet)
Statement of financial position (Balance Sheet) Euro Millions 30 June ‘12 30 June ‘11 31 December ‘11 Net fixed assets 2,264 2,201 2,255 of which: intangible assets 619 593 618 of which: property, plants & equipment 1,549 1,535 1,544 Net working capital 934 865 552 of which: derivatives assets/(liab
Slide 25: Cash Flow
Cash Flow Euro Millions H1 2011 H1 2012 Combined a) Adj.EBITDA 308 287 Non recurring items (42) (248) EBITDA 266 39 Net Change in provisions & others (8) 175 Release of inventory step-up - 14 Cash flow from operations (before WC changes) 258 228 Working Capital changes (359) (199) Paid Income Taxes
Slide 26: Agenda
AGENDA Group Overview & 2012 Outlook Draka integration Financial Results Appendix – Draka Acquisition Company Presentation – September 2012 26
Slide 27: 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 28: The new global market leader
The new global market leader Combined Financials Leader in the cable industry Sales 2011: €8.0 bn (1) SALES Adj.EBITDA € 8.0 bn a) € 586 mln 33% Utilities T&I Industrial Telecom Draka 2.7 167 € 2.3 bn € 2.2 bn € 1.8 bn € 1.4 bn 67% Prysmian 5.4 419 FY’11 FY’11 (1) Includes consolidation adjustments
Slide 29: 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 30: 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 31: Agenda
AGENDA Group Overview & 2012 Outlook Draka integration Financial Results Appendix – Prysmian at a Glance Company Presentation – September 2012 31
Slide 32: 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 33: 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 34: 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 35: 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 36: 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 37: Agenda
AGENDA Group Overview & 2012 Outlook Draka integration Financial Results Appendix – Energy Company Presentation – September 2012 37
Slide 38: Clusters of Cable Manufacturers in the Industry
Clusters of Cable Manufacturers in the Industry Competitive scenario – Energy Cables Company Presentation – September 2012 38
Slide 39: 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 40: 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 41: Utilities – Transmission
Utilities – Transmission Changing Energy generation mix implies a re-engineering of transmission grids Main primary drivers for grid development in Europe toward 2020 Evolution of the generation mix Scenario EU2020 2012 a) 320 458 963 GW 53 126 2020 a) 456 536 1,214 GW 132 82 Renewable Energy Source
Slide 42: Utilities – Transmission
Utilities – Transmission First round of investments to increase wind off-shore and interconnections to main consumption centers Main subsea and underground projects of pan-European significance List of main projects Main power flow trends 1. Italy – Montenegro Main subsea & underground projects in d
Slide 43: 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 44: 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 45: Utilities – 37GW of new Offshore Wind by 2020 to achieve EU Target
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 46: 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 (Germany 2020) Installed capacity 2011 Net pro
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: 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 49: 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 50: 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 51: 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 52: 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 53: 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 2.5 2.0 Deep
Slide 54: 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 55: 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 – September 2012 55
Slide 56: Industrial – EU Renewables market perspectives
Industrial – EU Renewables market perspectives 120GW of new Solar and Onshore Wind capacity by 2020 Onshore Wind and Solar - capacity to be installed (GW) Onshore wind 2011 90 48 138 Solar 2020E 170 90 260 France (GW) UK (GW) 18 24 9 5 2011 2020E 2011 2020E Spain (GW) Germany (GW) 88 48 54 26 2011 2
Slide 57: Industrial – Global renewables market
Industrial – Global renewables market Steady growth expected across all geographical areas Global Installed Wind Capacity (GW) Global Installed Solar PV Capacity (GW) Cumulated Wind Capacity (L axis) Cumulated PV capacity (L axis) Annual Additional Capacity (R axis) Annual Additional capacity (R axi
Slide 58: Industrial – Focus on Elevator business
Industrial – Focus on Elevator business Leveraging on best-in-class technology to improve geographical reach Prysmian Group Sales breakdown Elevator Market breakdown H1 2012 FY 2011 EMEA 8% Asia Pacific 30% EMEA Asia Pacific 43% 44% Latin America 5% North America 57% Latin America North America 3% 1
Slide 59: 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 60: Agenda
AGENDA Group Overview & 2012 Outlook Draka integration Financial Results Appendix – Telecom Company Presentation – September 2012 60
Slide 61: 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 2012 61
Slide 62: 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 – September 2012 62
Slide 63: 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 64: 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 65: Telecom Cables Main Applications
Telecom Cables Main Applications BACKBONE METROPOLITAN RING ACCESS NETWORK Company Presentation – September 2012 65
Slide 66: Telecom – Optical cable market trend
Telecom – Optical cable market trend Leadership position in the fastest growing markets Fiber optic cable consumptions by area million km 715 World +35% 969 299 China +46% 437 122 North America +20% 147 66 Western Europe +27% 83 56 North Asia -9% 51 31 Eastern Europe +52% 47 18 Latin America +86% 34
Slide 67: 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 68: 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 69: 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 70: Agenda
AGENDA Group Overview & 2012 Outlook Draka integration Financial Results Appendix – Financials Company Presentation – September 2012 70
Slide 71: Bridge Consolidated Sales
Bridge Consolidated Sales Euro Millions – Full Combined Total Consolidated 0.0% (1) (116) 68 - 3,965 3,916 3,916 H1 2011 Combined Org.Growth Metal Effect Exchange Rate H1 2012 L-f-L Perimeter effect H1 2012 Energy Cables & Systems Division -0.4% ( 13) ( 111) 46 ( 16 ) 3,264 3,186 3,170 H1 2011 Combi
Slide 72: Energy Segment – Profit and Loss Statement
Energy Segment – Profit and Loss Statement Euro Millions H1 2011 H1 2011 H1 2012 Reported a) Combined b) Sales to Third Parties 3,170 2,989 3,264 YoY total growth -2.9% c) YoY organic growth -0.4% c) Adj. EBITDA 229 215 225 % on sales 7.2% 7.1% 6.9% Adj. EBIT 175 168 173 % on sales 5.5% 5.6% 5.3% a)
Slide 73: Energy Segment – Sales and Profitability by business area
Energy Segment – Sales and Profitability by business area Euro Millions, % of Sales Growth – H1 combined H1 2011 Total Organic H1 2012 Comb. growth growth Sales to Third Parties Utilities 1,073 1,125 -4.7% -2.4% Trade & Installers 1,110 1,159 -4.2% -0.4% Industrial 920 889 3.6% 4.9% Others 67 91 n.m
Slide 74: Telecom Segment – Profit and Loss Statement
Telecom Segment – Profit and Loss Statement Euro Millions H1 2011 H1 2011 H1 2012 Reported a) Combined b) Sales to Third Parties 746 585 701 YoY total growth 6.4% c) YoY organic growth 1.7% c) Adj. EBITDA 79 54 62 % on sales 10.6% 9.0% 8.6% Adj. EBIT 54 36 39 % on sales 7.3% 6.0% 5.4% a) Includes Dr
Slide 75: Financial Structure
Financial Structure Euro Millions Debt structure (€m) 30.06.2012 (€m) Available 30.06.12 31.12.11 Used Funds (2) Maturity Term Loan 674 674 674 - 12/2014 Eurobond 402 412 402 - 04/2015 Revolving Credit Facility - - - 396 12/2014 Securitization 149 111 149 1 07/2013 Term Loan 2011 400 400 400 - 03/20
Slide 76: 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 77: 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 78: 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 79: 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 80: 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 81: 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 82: Historical Key Financials by Business Area – 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 83: Historical Key Financials by Business Area – 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 84: Agenda
AGENDA Group Overview & 2012 Outlook Draka integration Financial Results Appendix – Cable Industry Reference Market Company Presentation – September 2012 84
Slide 85: 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 31% Telecom Cables Reference Market (~€10bn ) AP
Slide 86: Market Volumes Trend
Market Volumes Trend Energy Cables Reference Market Million Tons • Long term growth driven by: Conductor 13.7 • Energy consumption 12.9 11.2 11.6 12.2 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: 5.2% • Investments in power transmission a
Slide 87: Telecom – Demand evolution by geographical area
Telecom – Demand evolution by geographical area Optical fibre cable (Million km) CAGR (11-15) +3.2% 242 243 243 241 212 42 45 47 48 +5.2% 188 39 173 41 37 35 34 -2.2% 36 142 30 37 8 9 9 9 +6.5% 29 7 116 33 27 4 3 Total 92 26 30 EMEA 18 26 4 150 153 152 150 +3.8% N. America 25 3 129 113 119 2 S.Ameri
Slide 88: 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 89: 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