Prysmian S.p.a. · MIL:PRY
Prysmian — 9M 2022 Earnings Presentation
30 slides from Prysmian's earnings presentation, Nov 10, 2022
Slide 1: 9M 2022 Financial Results
9M 2022 Financial Results November 10th, 2022 Milan
Slide 2: Key Highlights
Key Highlights STRONGEST QUARTER EVER 432 €M ▪ Remarkable performance continued in Q3 (10.4% Adj. Ebitda Margin), with sound contribution from all businesses Adj. Ebitda in Q3 ▪ Results driven by exposure to secular trends, customers service and efficient and flexible operations OUTSTANDING RESULTS
Slide 3: 9M 2022 Financial Highlights
9M 2022 Financial Highlights SALES ADJ. EBITDA FREE CASH FLOW SALES ORGANIC GROWTH ADJ. EBITDA ADJ. EBITDA MARGIN FCF* NET DEBT 12,089 €M 15.0% 1,131 €M 9.4% 344 €M 2,372 €M SOLID ORGANIC GROWTH MARGINS EXPANSION FREE CASH FLOW ▪ 29% growth in Projects driven by ▪ 1,131 €M Adj. Ebitda vs 725 €M in 9
Slide 4: Projects: highest backlog ever at €6.85 billion
Projects: highest backlog ever at €6.85 billion Only firm orders in the backlog RECORD BACKLOG Underground HV Submarine ~ 6.85 €Bn Only firm orders included in the Backlog 6.85 €Bn* LONG TERM VISIBILITY Relevant step up in ~ 4.1 €Bn projects awarded expected to be converted submarine backlog into ba
Slide 5: Sound performance across segments
Sound performance across segments Projects Energy Telecom TOTAL 1,071 1,438 +29.0% 7,019 9,246 +13.9% 1,204 1,405 +9.2% 9,294 12,089 +15.0% Sales Sales E&I Industrial & NWC 1,131 4,708 6,308 +16.1% 2,074 2,630 +10.3% 725 556 Adj. Ebitda Adj. Ebitda 204 221 178 Adj. Ebitda % 149 269 150 32 124 11 at
Slide 6: Q3 organic growth acceleration across regions
Q3 organic growth acceleration across regions The value of a wide geographical presence Data excluding Projects Business EMEA NORTH AMERICA LATIN AMERICA ASIA PACIFIC 3,933 4,914 +11.2% 2,775 3,898 +19.9% 771 978 +10.7% 744 861 +1.2% 9M org. growth Sales +11.1% +22.2% +12.3% +3.8% Q3 org. growth 551
Slide 7: Upgrading 2022 outlook | Further increasing guidance
Upgrading 2022 outlook | Further increasing guidance UPGRADED ADJ. EBITDA TARGET (€M) UPGRADED FCF TARGET (€M) FCF before acquisition & 1,425 1,475 disposals 450 - 500 PREVIOUS 2022 GUIDANCE PREVIOUS 2022 GUIDANCE FCF before acquisition 1,300 1,400 & disposals 400 - 460 2021 Adj. EBITDA actual: 976
Slide 8: 9M 2022 Financial Results Agenda
9M 2022 Financial Appendix Highlights Results Group Overview Outlook
Slide 9: Profit and Loss Statement
Profit and Loss Statement Euro Millions 9M 2022 9M 2021 Adj. EBITDA Bridge SALES 12,089 9,294 YoY total growth 30.1% YoY organic growth 15.0% Q1 Q2 Q3 9M Adj.EBITDA 1,131 725 ADJ. EBITDA 2021 213 257 255 725 % on sales 9.4% 7.8% Projects 3 8 14 25 of which share of net income 36 13 Energy 63 140 135
Slide 10: Statement of financial position (Balance Sheet)
Statement of financial position (Balance Sheet) Euro Millions 30 Sept 2022 30 Sept 2021 31 Dec 2021 (3) Net fixed assets 5,698 5,160 5,307 of which: goodwill 1,788 1,603 1,635 Net working capital 1,683 1,443 650 of which: derivatives assets/(liabilities) (120) 156 174 of which: Operative Net working
Slide 11: Cash Flow
Cash Flow +344 €M Free Cash Flow (1,269 ) (9) 150 19 ( 97 ) ( 19 ) 79 192 310 342 11 2,663 2,372 30-Sep-21 Cash flow WC Restructuring Net Operative Financial Paid income Dividend Antitrust Dividend Acquisitions & Other 30-Sep-22 net debt operations changes costs Capex Charges taxes received paid Dis
Slide 12: Closing Remarks
Closing Remarks 1 Outstanding performance driving 2 High exposure to secular trends 2nd FY22 guidance upgrade sustaining results 3 4 Solid order intake and Strong financial deleverage record backlog © Prysmian Group 2022 2021 12
Slide 13: Appendix
9M 2022 Financial Appendix Highlights Results Group Overview Outlook
Slide 14: Sound growth across businesses and regions
Sound growth across businesses and regions 3Q/9M 2022 y-o-y org. growth excluding Projects segment Org growth by Geography Organic growth by Business 37% of total 46% of total Group Group INDUSTRIAL PROJECTS E&I & NWC TELECOM 22.2% 19.9% 11.2% 11.1% NORTH 9M 3Q 9M 3Q EMEA AMERICA 29.0% 30.0% 9% of t
Slide 15: Energy Division – Secular economic drivers balancing market volatility
Energy Division – Secular economic drivers balancing market volatility E&I Ind. NWC Economic driver FY2021 Revenue 2021 total Energy revenues 9.6 €Billion* FY 2021 Revenue Grid Expansion (distribution) Non-residential Power Generation construction (solar, wind) 20-25% Secular drivers Industrial Appl
Slide 16: 525kV HVDC 2GW Submarine Cable System
525kV HVDC 2GW Submarine Cable System ▪ Prysmian reaches key milestone in the field of Power Grids for Energy Transition ▪ Breakthrough innovation in cable technology will enable 2GW transmission for large scale offshore wind deployment ▪ Successful development and testing of 525kV extruded submarin
Slide 17: German Corridors
German Corridors 525kV HVDC Technology XLPE 525kV HVDC Technology 240 kms produced 220 kms FAT Prysmian has completed all PREQUALIFICATIONS and TYPE TESTS ON SCHEDULE for both P-Laser and XLPE 525kV HVDC Systems 200 kms in Germany XLPE 525kV HVDC cable industrialization successfully completed in Mon
Slide 18: 9M 2022 Financial highlights
9M 2022 Financial highlights Euro Millions, % on Sales SALES ADJUSTED EBITDA (1) +15.0%* 12,089 1,131 9,294 725 7.8% 9.4% 9M 2021 9M 2022 9M 2021 9M 2022 OPERATIVE NET WORKING CAPITAL (2) NET FINANCIAL DEBT 1,803 2,663 2,372 1,287 1,760 476 3.5% 9.9% 10.9% DEC-21 SEPT-21 SEPT-22 DEC-21 SEPT-21 SEPT-
Slide 19: Projects
Projects Euro Millions, % on Sales SALES HIGHLIGHTS +29.0%* SUBMARINE / Strong organic growth driving growth in Projects / Tendering activity ongoing, with a solid pipeline of projects (interconnections and off-shore wind farms) / More than €3.2 billion of new orders YTD 1,438 1,071 UNDERGROUND HIGH
Slide 20: Energy & Infrastructure
Energy & Infrastructure Euro Millions, % on Sales SALES HIGHLIGHTS +16.1%* TRADE & INSTALLERS / Excellent performance continued in Q3 / Solid demand and price management drives margins improvement 6,308 4,708 POWER DISTRIBUTION / Double digit organic growth across all regions 9M 2021 9M 2022 * Org.
Slide 21: Industrial & Network Components
Industrial & Network Components Euro Millions, % on Sales SALES HIGHLIGHTS +10.3%* SPECIALTIES, OEM & RENEWABLES / Strong result in OEM & Renewables with a double-digit organic growth. / Overall good performances across all applications, in particular in Mining and Infrastructure 2,630 ELEVATOR 2,07
Slide 22: Telecom
Telecom Euro Millions, % on Sales SALES HIGHLIGHTS +9.2%* OPTICAL CABLE & FIBRE / Solid growth continued in Optical in particular in North America / YOFC results driven by Chinese market rebound 1,204 1,405 MMS / Strong performance in MMS 9M 2021 9M 2022 * Org. Growth. Adj. EBITDA / % of Sales(1) AD
Slide 23: Financial Highlights
Financial Highlights Euro Millions Sales Adj.EBITDA 9M 2022 9M 2021 9M 2022 9M 2021 organic Adj.EBITDA Adj.EBITDA €M €M €M €M growth Margin Margin PROJECTS 1,438 29.0% 1,071 149 10.4% 124 11.5% Energy & Infrastructure 6,308 16.1% 4,708 556 8.8% 269 5.7% Industrial & Network Components 2,630 10.3% 2,
Slide 24: Profit and Loss Statement
Profit and Loss Statement Euro Millions 9M 2022 9M 2021 SALES 12,089 9,294 YoY total growth 30.1% YoY organic growth 15.0% Adj.EBITDA 1,131 725 % on sales 9.4% 7.8% of which share of net income 36 13 Adjustments (60) (25) Adjustments and non monetary items on EBIT EBITDA 1,071 700 % on sales 8.9% 7.
Slide 25: Cash Flow Statement
Cash Flow Statement Euro Millions 12 Months 30 Sept 2022 30 Sept 2021 (from 1/10/2021 to 30/9/2022) Adj.EBITDA 1,131 725 1,382 Adjustments (60) (25) (84) EBITDA 1,071 700 1,298 Net Change in provisions & others (51) (56) 22 Share of income from investments in op.activities (37) (21) (43) Cash flow f
Slide 26: A solid and sustainable financial structure
A solid and sustainable financial structure Fixed/Variable rate composition ▪ Average debt maturity of 4.2 years Variable ▪ 1,0 €Bn of committed Revolving Credit Facility fully unutilized as ~30% of 30th September 2022 ▪ Approx. 675 €M cash on balance as of 30th September 2022 Fixed ~70% CURRENT FIN
Slide 27: Bridge Consolidation Sales
Bridge Consolidation Sales Euro Millions PROJECTS ENERGY & INFRASTRUCTURE 34 456 342 44 310 23 758 1,438 Org.growth 6,308 Org.growth 1,071 4,708 16.1% TOTAL CONSOLIDATED 29.0% 9M 2021 Organic Metal Exchange 9M 2022 9M 2021 Organic Metal Exchange Perimeter 9M 2022 Growth Effect Rate Effect 656 50 Gro
Slide 28: Notes
Notes 1) Adjusted excluding restructuring, non-operating income/expenses and non-recurring income / expenses; 2) Defined as NWC excluding derivatives; % on annualized last quarter sales; 3) The 2021 figures have been restated due to definition of the purchase price allocation for Omnisens and Eksa,
Slide 29: Disclaimer
Disclaimer ▪ The managers responsible for preparing the company's financial reports, A.Brunetti and S.Invernici, 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
Slide 30: Thank you
Thank you prysmiangroup.com 30