Slide 1: Q1 2019 Financial Results
Q1 2019 FINANCIAL RESULTS MILAN – May 13th,2019
Slide 2: Agenda
AGENDA ➢ Q1 2019 Highlights o Group overview o Outlook ➢ Financial Results ➢ Appendix 2
Slide 3: Q1 2019 Financial Highlights
Q1 2019 Financial Highlights Organic sales growth at +1.9% supported by: - Reiterated high performance in Telecom (+9.8%) with a double-digit growth in optical and MMS - Solid trend in E&I, with a double digit Power Distribution (+15.7%) - Strong performance of North America (+5.4%) and LatAm (+6.0%
Slide 4: Q1 2019 Financial Highlights
Q1 2019 Financial Highlights Euro Millions, % on Sales Sales (1) Adjusted EBITDA (1)(2)(4) 11,524 768 +1.9%* 2,734 2,771 231 of which 9 €M 198 IFRS 16 effect 6.7% 7.2% 8.3% FY 2018 Q1 2018 Q1 2019 FY 2018 Q1 2018 Q1 2019 combined combined combined combined * Org. Growth. Reported Operative Net Worki
Slide 5: Performance by Segment – excluding IFRS impact
Performance by Segment – excluding IFRS 16 impact Overall margin improvement Q1’18 Q1’19 Adj. EBITDA 20.1% 18.0% Margin 10.3% 8.2% 6.0% 6.5% 7.2% 8.0% 3.9% 5.0% 17.0%* 17.7%* Project E&I Industrial & NWC. Telecom Total Q1’18 Q1’19 ±X.X% = Sales Organic Trend Adj. EBITDA (€ million) / +1.9% % Org. Gr
Slide 6: Adj. EBITDA by Segment – excluding IFRS 16 impact
Adj. EBITDA by Segment – excluding IFRS 16 impact Euro Millions, % on Sales Projects Energy Telecom Sales Organic growth -5.3% Sales Organic growth +1.7% Sales Organic growth +9.8% Excluding WL E&I Industrial & NWC. Excluding one-offs +3.4% -1.6% 80 78 77 65 68 52 50 32 38 38 36 39 8.2% 10.3% 12.7%
Slide 7: Q1 Sales Organic Growth by Geography
Q1 Sales Organic Growth by Geography Beyond synergies: the value of the acquisition North America Latin America EMEA Asia Pacific Total 837 €M 224 €M 1,484 €M 226 €M 2,771 €M +2.8%* +5.4% +6.0% 0.0% -1.0% +1.9% Highlights Highlights Highlights Highlights ▪ Trend affected by lower ▪ Strong performanc
Slide 8: Overperforming on synergies: Confirming updated targets and timing
Overperforming on synergies: Confirming updated targets and timing Updated Synergies Plan 2018-21 €M = total synergies 25 €M additional costs synergies 1 Year faster ~ 175 ~ 155 Other ~ 120 Industrial footprint Procurement Already ~ 35 achieved Management & staff ~ 5-10 60 previous actual previous u
Slide 9: Agenda
AGENDA ➢ Q1 2019 Highlights o Group overview o Outlook ➢ Financial Results ➢ Appendix 9
Slide 10: 2019 Guidance Confirmed
2019 Guidance Confirmed Adj. EBITDA Outlook Bridge (€M) Mid-point Assumptions • Continued growth in Telecom 1 2019 Adj. EBITDA target 950 Mid-point 985 1,020 business • Recovery of WL 2018 one-off Total growth in Projects Adj. EBITDA • Declining results in submarine, as a result of low 2018 order in
Slide 11: Agenda
AGENDA ➢ Q1 2019 Highlights o Group overview o Outlook ➢ Financial Results ➢ Appendix 11
Slide 12: Profit and Loss Statement
Profit and Loss Statement Euro Millions Q1 2019 Q1 2018 Adj. EBITDA Bridge Q1 2018 – Q1 2019 of which total combined reported IFRS16 ADJ EBITDA Q1 2018 198 Sales 2,771 - 2,734 1,879 Q1 2018 WL effect 20 YoY total growth combined 1.3% YoY organic growth 1.9% Q1 2018 TLC one-offs (11) Adj.EBITDA 231 9
Slide 13: Adjustments and Special Items on EBIT
Adjustments and Special Items on EBIT Euro Millions Q1 2019 Q1 2018 Restructuring (4) (3) of which General Cable integration costs (2) - Other Non-operating Income / (Expenses) (7) (14) of which General Cable acquisition related costs - (1) of which General Cable integration costs (1) (8) EBITDA adj
Slide 14: Financial Charges
Financial Charges Euro Millions Q1 2019 Q1 2018 Net interest expenses (22) (15) of which non-cash conv.bond interest exp. (2) (4) Financial costs IFRS 16 (1) n.a. Bank fees amortization (1) - Gain/(loss) on exchange rates (12) (6) Gain/(loss) on derivatives 5 3 Non recurring effects (1) (1) Monetary
Slide 15: Statement of financial position (Balance Sheet)
Statement of financial position (Balance Sheet) Euro Millions 31 Mar 2019 31 Mar 2018 31 Dec 18 (4) Net fixed assets 5,264 2,615 5,079 of which: goodwill 1,567 436 1,549 of which: IFRS 16 effect 139 n.a n.a Net working capital 1,333 587 658 of which: derivatives assets/(liabilities) 6 (17) (15) of w
Slide 16: Cash Flow
Cash Flow Euro Millions Net debt evolution LTM 2,505 ( 764 ) 110 ( 496 ) 112 268 86 147 37 240 * 2,990 3,102 7 2,904 2,636 2,716 2,389 2,389 2,396 2,716 +51 €M Free Cash Flow 2,863 2,900 648 648 31-Mar-18 GC Cash flow WC GC+WL Net Operative Financial Paid income Dividend Capital increase IFRS 16 as
Slide 17: Prysmian Group Debt Profile
Prysmian Group Debt Profile Average maturity of 3.7 years including RCF 2019 – Limited exposure to financial market volatility FIXED/VARIABLE RATE COMPOSITION REPAYMENT DATE (€M) Total gross debt: 3,165 (*) Unicredit TL Floating Convertible bond 200 zero – coupon 17% 472 RCF 2019 (**) Acq Term Loan
Slide 18: Agenda
AGENDA ➢ Q1 2019 Highlights o Group overview o Outlook ➢ Financial Results ➢ Appendix 18
Slide 19: Projects
Projects Euro Millions, % on Sales, excluding IFRS 16 impact Sales Highlights 1,751 SUBMARINE • Sales affected by 2018 low order intake -5.3%* • Adj. EBITDA margin –ex WL- impacted by low 2018 intake and project timing • 2019 expected market confirmed at ~ 3 €/billion 389 368 • Strong tendering acti
Slide 20: Energy & Infrastructure
Energy & Infrastructure Euro Millions, % on Sales, excluding IFRS 16 impact Sales (5) Highlights 5,318 TRADE & INSTALLERS • Global stable trend, with continued positive momentum in North America and APAC. Stable Europe • Profitability improvement, driven by favourable product and geographical mix +3
Slide 21: Industrial & Network Components
Industrial & Network Components Euro Millions, % on Sales, excluding IFRS 16 impact Sales (5) Highlights 2,527 SPECIALTIES, OEMS & RENEWABLES • Positive renewables performance, especially in Latin America -1.6%* • Positive trend in Mining, Wind and Infrastructure. 609 599 ELEVATOR • Solid growth, co
Slide 22: Telecom
Telecom Euro Millions, % on Sales, excluding IFRS 16 impact Sales Highlights OPTICAL CABLE & FIBRE 1,634 • Robust growth, supported by positive trend mainly in Europe and North America • EBITDA Margin benefitting from volume increase, capacity expansion in fiber, plant supply mix +9.8%* • Tough comp
Slide 23: Bridge Consolidation Sales
Bridge Consolidation Sales Euro Millions - Fully Combined Results Projects Energy & Infrastructure ( 19 ) 16 44 ( 21 ) 3 (3) Total Consolidated Org.growth Org.growth -5.3% 1,269 3.4% 1,310 30 389 368 52 ( 45 ) Org.growth Q1 2018 Organic Metal Exchange Q1 2019 Q1 2018 Organic Metal Exchange Q1 2019 1
Slide 24: Profit and Loss Statement
Profit and Loss Statement Euro Millions Q1 2019 Q1 2018 of which total IFRS 16 combined reported Sales 2,771 - 2,734 1,879 YoY total growth combined 1.3% YoY organic growth 1.9% Adj.EBITDA 231 9 198 153 % on sales 8.3% 7.2% 8.1% of which share of net income 8 20 Adjustments (11) (17) EBITDA 220 9 13
Slide 25: Cash Flow Statement
Cash Flow Statement 12 Months (from Euro Millions Q1 2019 Q1 2018 1/4/2018 to 31/3/2019) Adj.EBITDA 231 153 772 Adjustments (11) (17) (186) EBITDA 220 136 586 Net Change in provisions & others (26) 3 81 Share of income from investments in op.activities (8) (20) (47) Cash flow from operations (before
Slide 26: Financial Highlights
Financial Highlights Euro Millions - Fully Combined Results Sales Adj.EBITDA Q1 2019 Q1 2018 Q1 2019 Q1 2018 * total organic of which Adj.EBITDA Adj.EBITDA €M €M €M €M growth growth IFRS 16 Margin Margin PROJECTS 368 -5.2% -5.3% 389 39 1 10.6% 32 8.2% Energy & Infrastructure 1,310 3.2% 3.4% 1,269 69
Slide 27: Notes
Notes (1) General Cable figures included starting from 1 January 2018; General Cable figures are restated applying Prysmian accounting principles and policies; (2) Adjusted excluding restructuring, non-operating income/expenses and non-recurring income / expenses; (3) Defined as NWC excluding deriva
Slide 28: Disclaimer
Disclaimer • The managers responsible for preparing the company's financial reports, A.Brunetti 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 i
Slide 29: Thank you
Thank you prysmiangroup.com