Prysmian S.p.a. · MIL:PRY
Prysmian — H1 2017 Earnings Presentation
28 slides from Prysmian's earnings presentation, Jul 27, 2017
Slide 1: H1 2017 Financial Results
H1 2017 Financial Results Milan – July 27th 2017
Slide 2: Agenda
Agenda H1 2017 Highlights o Group overview o Results by business o Outlook Financial results Appendix H1 2017 Financial Results 2
Slide 3: H1 2017 Financial Highlights
H1 2017 Financial Highlights Organic Growth improved at -1.5%, (+0.6% in Q2) thanks to better trends in Energy Projects and Industrial; confirmed solid trend in Telecom. Adj. EBITDA at € 362m (9.2% of sales), up from € 347m in H1 2016, supported by: Strong performance in Telecom. Improved pr
Slide 4: H1 2017 Key Financials
H1 2017 Key Financials Euro Millions, % on Sales Sales Adjusted EBITDA (1) 7.567 711 -1.5%* 3.785 3.936 347 362 9.4% 9.2% 9.2% 2016 H1'16 H1'17 2016 H1'16 H1'17 * Org. Growth Operative Net Working Capital (2) Net Financial Debt 1.031 662 691 1.000 318 537 4.2% 8.4% 8.3% Dec-16 Jun-16 Jun-17 Dec-16 J
Slide 5: Adj. EBITDA by business
Moderate organic decline with improved profitability. Positive performance in Telecom and Energy Projects offset by weakness in E&I and SURF. H1’16 H1’17 Adj. EBITDA Margin 17,0% 16,8% 14,6% 13,7% 9,4% 8,3% 9,2% 9,2% 5,5% 4,5% 4,2% 1,1% Energy Industrial Projects E&I Oil&Gas Telecom Total & NWC. H1’
Slide 6: Agenda
Agenda H1 2017 Highlights o Group overview o Results by business o Outlook Financial results Appendix H1 2017 Financial Results 6
Slide 7: Energy Projects
Energy Projects Euro Millions, % on Sales Sales Highlights 1.634 Submarine • Improving organic trend recovering after a soft start in Q1. -5.3%* • Adj.EBITDA margin improving also thanks to full utilization of the new installation assets (new vessel Ulisse, new jetting system). 761 685 • Solid marke
Slide 8: Energy & Infrastructure
Energy & Infrastructure Euro Millions, % on Sales Sales Highlights Trade & Installers 3.016 • Positive performance in the Nordics, Oceania and China was more than offset by weakness in Oman, Turkey and Argentina. The recent update in -3.3%* renewable energy regulation in US negatively affected volum
Slide 9: Industrial & Network Components
Industrial & Network Components Euro Millions, % on Sales Sales Highlights Specialties, OEMs & Renewables 1.343 • Low single digit organic growth thanks to a solid performance in Railway and Infrastructure, ongoing recovery in Mining and Renewables. Crane, +2.5%* Defense and Marine slowing down afte
Slide 10: Oil & Gas
Oil & Gas Euro Millions, % on Sales Sales Highlights SURF 300 • Umbilical: weak performance driven by 2016 low projects awards in Brazil. Market environment remains highly competitive. -14.8%* • DHT: Volume recovery in onshore segment (US Shale) partially offset by weak demand from international mar
Slide 11: Telecom
Telecom Euro Millions, % on Sales Sales Highlights 1.164 Telecom Solutions • Double-digit organic growth in optical cables segment confirmed in Q2. +7.5%* • Solid market demand in Europe and US driven by FTTH/FTTC roll-out acceleration. 646 570 • Declining performance in the copper business due to t
Slide 12: Agenda
Agenda H1 2017 Highlights o Group overview o Results by business o Outlook Financial results Appendix H1 2017 Financial Results 12
Slide 13: FY 2017 Outlook
FY 2017 Outlook 2017 Adj.EBITDA Target (€ million) 2017 Adj.EBITDA Target Assumptions (€ million) Mid-point target assumptions: • Continued strong performance in Telecom business. • Stable results in Energy Projects after adsorbing 710 Mid-point € 730m 750 negative perimeter effect in Underground HV
Slide 14: Agenda
Agenda H1 2017 Highlights o Group overview o Results by business o Outlook Financial results Appendix H1 2017 Financial Results 14
Slide 15: Profit and Loss Statement
Profit and Loss Statement Euro Millions H1 2017 H1 2016 Sales 3.936 3.785 YoY total growth 4,0% 0,0% YoY organic growth (1,5%) 0,0% Adj.EBITDA 362 347 % on sales 9,2% 9,2% Adjustments (31) (25) EBITDA 331 322 % on sales 8,4% 8,5% Adj.EBIT 274 261 % on sales 7,0% 6,9% Adjustments (31) (25) Special it
Slide 16: Adjustments and Special Items on EBIT
Adjustments and Special Items on EBIT Euro Millions H1 2017 H1 2016 Non-recurring Items (Antitrust Investigation) (15) - Restructuring (9) (11) Other Non-operating Income / (Expenses) (7) (14) EBITDA adjustments (31) (25) Special items (36) (19) Gain/(loss) on metal derivatives (11) 20 Assets impair
Slide 17: Financial Charges
Financial Charges Euro Millions H1 2017 H1 2016 Net interest expenses (34) (28) of which non-cash conv.bond interest exp. (8) (4) Bank fees amortization (2) (2) Gain/(loss) on exchange rates 2 7 Gain/(loss) on derivatives 1) (12) (12) Non recurring effects (1) (1) Other non-operating financial expen
Slide 18: Statement of financial position (Balance Sheet)
Statement of financial position (Balance Sheet) Euro Millions 30 Jun 2017 30 Jun 2016 31 Dec 2016 Net fixed assets 2.599 2.565 2.630 of which: goodwill 441 444 448 of which: intangible assets 318 347 344 of which: property, plants & equipment 1.625 1.563 1.631 Net working capital 700 646 325 of whic
Slide 19: Cash Flow
Cash Flow Euro Millions 12 Months (from H1 2017 H1 2016 1/7/2016 to 30/6/2017) Adj.EBITDA 362 347 726 Adjustments (31) (25) (72) EBITDA 331 322 654 Net Change in provisions & others 4 (14) 18 Share of income from investments in op.activities (19) (14) (36) Cash Flow from operations (bef. WC changes)
Slide 20: Agenda
Agenda H1 2017 Highlights o Group overview o Results by business o Outlook Financial results Appendix H1 2017 Financial Results 20
Slide 21: Bridge Consolidated Sales
Bridge Consolidated Sales Euro Millions Energy Projects E&I Industrial & NWC ( 4) 38 2 ( 40 ) ( 5) 17 5 147 ( 36 ) ( 52 ) Org.growth Org.growth 761 -5.3% 1.658 +2.5% 739 685 1.567 Org.growth 682 685 -3.3% Oil & Gas Telecom Total Consolidated 12 12 6 ( 24 ) 9 ( 23 ) 43 224 4 1 ( 55 ) 634 646 3.936 3.
Slide 22: Profit and Loss Statement
Profit and Loss Statement Euro Millions H1 2017 H1 2016* Sales 3.936 3.785 YoY total growth 4,0% 0,0% YoY organic growth (1,5%) 0,0% Adj.EBITDA 362 347 % on sales 9,2% 9,2% of which share of net income 19 14 Adjustments (31) (25) EBITDA 331 322 % on sales 8,4% 8,5% Adj.EBIT 274 261 % on sales 7,0% 6
Slide 23: Energy Projects Segment – Profit and Loss Statement
Energy Projects Segment – Profit and Loss Statement Euro Millions H1 2017 H1 2016 Sales to Third Parties 685 761 YoY total growth (10,0%) 19,3% YoY organic growth (5,3%) 22,7% Adj. EBITDA 116 111 % on sales 17,0% 14,6% Adj. EBIT 96 94 % on sales 14,0% 12,4% H1 2017 Financial Results 23
Slide 24: Energy Products Segment – Profit and Loss Statement
Energy Products Segment – Profit and Loss Statement Euro Millions H1 2017 H1 2016 E&I 1.658 1.567 YoY total growth 5,8% Sales to Third Parties YoY organic growth (3,3%) Industrial & Netw. Comp. 739 682 YoY total growth 8,5% YoY organic growth 2,5% Other 70 49 YoY total growth 41,9% YoY organic growt
Slide 25: Oil&Gas Segment – Profit and Loss Statement
Oil&Gas Segment – Profit and Loss Statement Euro Millions H1 2017 H1 2016 Sales to Third Parties 138 156 YoY total growth (11,7%) YoY organic growth (14,8%) Adj. EBITDA 2 7 % on sales 1,1% 4,2% Adj. EBIT (7) (1) % on sales (5,1%) (0,8%) H1 2017 Financial Results 25
Slide 26: Telecom Segment – Profit and Loss Statement
Telecom Segment – Profit and Loss Statement Euro Millions H1 2017 H1 2016 Sales to Third Parties 646 570 YoY total growth 13,4% (1,5%) YoY organic growth 7,5% 5,8% Adj. EBITDA 109 78 % on sales 16,8% 13,7% Adj. EBIT 89 58 % on sales 13,7% 10,3% H1 2017 Financial Results 26
Slide 27: 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 8.000 2.500 100 2.000 75 6.000 1.500 50 4.000 1.000 25 2.000 J- J- J- J- J- J- J- J- J- J- 500 J- J- J- J- J- J- J- J- J-
Slide 28: 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