Prysmian S.p.a. · MIL:PRY
Prysmian — Q1 2024 Earnings Presentation
31 slides from Prysmian's earnings presentation, May 9, 2024
Slide 1: Connect to Lead - 1Q 2024 Integrated Results
Connect to Lead 1Q 2024 Integrated Results 9.05.2024
Slide 2: Agenda: 1Q 2024 Highlights & Group Overview
AGENDA 1Q 2024 Highlights & Group Overview Massimo Battaini CEO 2
Slide 3: 1Q 2024 key highlights
1Q 2024 key highlights Solid start to the year: margin expansion ADJ. EBITDA & strong cash generation LTM 427 €M 412 €M 412 11.2% 827 €M €M Digital Adj. EBITDA Adj. EBITDA Margin FCF LTM Solutions Electrification Power Grid Transmission 185 -35% Scope 1&2 14.7% €M vs. baseline 2019 1Q 2023 1Q 2024 1
Slide 4: Acquisition of Encore Wire
Acquisition of Encore Wire Highly complementary to Prysmian’s strategy. Estimated closing in H2 2024 2023A EBITDA pro forma combined Transmission 13% EMEA APAC 4% 21% Exposure to North America LATAM 7% Operational efficiency & best-in-class service North America Product complementarity 55% Adj. High
Slide 5: Transmission: solid backlog & high visibility
Transmission: solid backlog TRANSMISSION & high visibility Sound execution and projects with better margin SALES ADJUSTED EBITDA BACKLOG EVOLUTION 18,2 Euro Organic Adj. Ebitda 1.0% growth 11.2% 13.0% Billions margin 72% 62 10,7 481 474 54 Submarine 6,4 26% 4,2 Land HVDC Euro 1Q 2023 1Q 2024 1Q 2023
Slide 6: Power grid: outstanding results
Power grid: POWER GRID outstanding results Margin expansion sustained by solid market trends (grid enhancement) SALES ADJUSTED EBITDA ADJ. EBITDA QUARTERLY EVOLUTION Organic Adj. Ebitda 1.5% growth 8.6% 13.5% margin 109 115 105 103 853 852 115 73 73 Euro 1Q 2023 1Q 2024 1Q 2023 1Q 2024 Millions 1Q23
Slide 7: Electrification: sound improvement in specialties
Electrification: sound ELECTRIFICATION improvement in specialties Solid margin expansion in Specialties mitigating price normalization in I&C in NA (slower than ADJ. EBITDA QUARTERLY EVOLUTION expected) INDUSTRIAL & CONSTRUCTION SPECIALTIES SALES SALES 233 220 Organic Organic 195 203 1,299 1,193 -5.
Slide 8: Digital solutions: temporary slowdown
Digital solutions: DIGITAL SOLUTIONS temporary slowdown Volume decline mainly driven by the US market as anticipated ADJ. EBITDA QUARTERLY EVOLUTION SALES ADJUSTED EBITDA 67 60 Organic -31.6% growth 14.6% 10.4% Adj. Ebitda 35 32 margin 460 67 Share of 7 net income 1Q23 2Q23 3Q23 4Q23 1Q24 312 32 3 5
Slide 9: 1Q 2024: ESG Highlights
1Q 2024: ESG HIGHLIGHTS Committed to deliver SDGS SDGS KPI FY FY 2023 2023 1Q 2024 Target Target 2027 2027 % of reduction of Scope 1&2 GHG Emissions -33% -35%* -45% vs baseline 2019 % of revenues linked to sustainable products 37% 41% 60% % of recycled content on PE jacket and copper 12.7% 14.7% 19%
Slide 10: Agenda: Financial Results
AGENDA Financial Results Pier Francesco Facchini CFO 10
Slide 11: Profit & loss statement
Profit & loss statement 1Q 2024 1Q 2023 SALES 3,687 3,992 ADJ. EBITDA BRIDGE 1Q YoY organic growth (5.6%) Adj. EBITDA 412 427 % on sales 11.2% 10.7% ADJ. EBITDA 2023 427 Transmission 8 Adj. EBIT 312 339 % on sales 8.5% 8.5% Power Grid 42 Adjustments (19) (29) Electrification (30) Non monetary items
Slide 12: Strong cash generation LTM
Strong cash generation LTM +827 €M Free Cash Flow ( 1,190 ) 272 174 67 ( 14 ) 656 2.074 ( 346 ) 1.693 31-Mar-23 Cash flow WC Net Operative Financial Dividend Dividend Other 31-Mar-24 net debt operations changes Capex Charges received paid net debt (before WC changes) Euro Millions 12
Slide 13: Agenda: Closing remarks
AGENDA Closing remarks Massimo Battaini CEO 13
Slide 14: Closing remarks
Closing remarks ADJ. EBITDA 2024 TARGET (€M) 1,625 1,575 1,675 Solid Start To The Year Mid-point FCF 2024 TARGET (€M) Strong Cash Generation LTM 725 675 775 Mid-point Encore Wire Acquisition: A Strategic Opportunity For Increasing Value Creation 2024 GHG EMISSIONS (vs. 2019) Scope 1&2% - 36% Scope 3
Slide 15: Appendix
Appendix Oo prysmian 1s
Slide 16: Our sustainability journey rooted in the past
Our sustainability journey rooted in the past BUILDING TOMORROW’S SUSTAINABILITY FIRST INTEGRATED REPORT Optical cable FlexRibbon SBTI APPROVAL 2023 TCFD REPORT 6912 fibers BOARD 2022 SUSTAINABILITY COMMITTEE INCLUSION OF ESG IN 2021 MV P-Laser REMUNERATION • Submarine 525 kV FIRST 2020 • E3X robot
Slide 17: A truly public company, based on inclusion
A truly public company, based on inclusion PRYSMIAN SHAREHOLDING STRUCTURE INSTITUTIONAL INVESTORS 3% Employees incl. Management 8.1% Retail 1.4% Treasury shares 49% ESG investors US 30% UK 28% France 12% 87.5% Rest of EU 13% Italy 7% Germany 4% Institutional Investors Sweden 2% RoW 4% 17
Slide 18: We innovate to support our customers and to go beyond the value chain
We innovate to support our Sirocco Extreme customers and E3X Robot to go beyond the value chain Circular economy Alesea Megawatt charging solutions Product Supply chain design digitalization Smart accessories PRY-ID All Ground Selection of innovative solutions 18
Slide 19: Sustainability also means equity and inclusion
Sustainability also means equity and inclusion 45-50% Employees holding shares by 2027 35-37 Training hours for employee +500 Women in STEM by 2027 19
Slide 20: Promoting talent within under-privileged communities
Promoting talent within under-privileged communities 1,400+ Children 400+ Women and young girls 315 women and 625 children in the 100 women and 800 young girls in LATAM Netherlands children in Oman 20
Slide 21: Sustainability development goals
Sustainability development goals 20 40 60 80 100 CCC B BB BBB A AA AAA 20 40 60 80 100 80 A 76 1 2 3 4 5 20 40 60 80 100 10 20 30 40 We are included in 3.9 65 16 200 150 100 50 1 20 40 60 80 100 D- D C- C B- B A- A 58 58 A- 21
Slide 22: A solid and sustainable financial structure
A solid and sustainable financial structure ▪ Average debt maturity of 4.2 years (including Revolving Credit Facility) Fixed/Variable rate composition ▪ Approx. 1.2 €Bn cash on balance as of 31st March 2024 Variable ~15% CURRENT FINANCIAL DEBT MATURITY PROFILE(4) Fixed ~85% SUST. LINKED TERM LOAN 20
Slide 23: Financial highlights
Financial highlights Sales Adj.EBITDA 1Q 2024 1Q 2023 1Q 2024 1Q 2023 Organic Adj.EBITDA Adj.EBITDA €M €M €M €M growth Margin Margin Transmission 474 1.0% 481 62 13.0% 54 11.2% Power Grid 852 1.5% 853 115 13.5% 73 8.6% Industrial & Construction 1,193 -5.8% 1,299 114 9.5% 154 11.8% Specialties 762 -2
Slide 24: Sales at standard metal prices
Sales at standard metal prices Sales current Sales standard Sales Adj. Edibta Adj. Edibta Sales Adj. Edibta Adj. Edibta €M €M margin €M €M margin Transmission 474 62 13.0% 471 62 13.1% Power Grid 852 115 13.5% 776 115 14.8% 1Q Electrification 2,049 203 9.9% 1,780 203 11.4% 2024 Digital Solutions 312
Slide 25: Profit & loss statement
Profit & loss statement Adjustments and non monetary items on EBIT 1Q 2024 1Q 2023 1Q 2024 1Q 2023 SALES 3,687 Non-recurring Items (2) (3) YoY total growth (7.7%) 3,992 Restructuring (19) (7) YoY organic growth (5.6%) Other Non-operating Incom/ (Expenses) 2 (19) Adj. EBIDTA 412 427 EBITDA adjustment
Slide 26: Statement of financial position (balance sheet)
Statement of financial position (balance sheet) 31 Mar 2024 31 Mar 2023 31 Dec 2023 Net fixed assets 5,798 5,533 5,709 of which: goodwill 1,681 1,671 1,660 Net working capital 1,264 1,463 518 of which: derivatives assets/(liabilities) 45 38 (7) of which: Operative Net working capital 1,219 1,425 525
Slide 27: Cash flow statement
Cash flow statement 12 month 31 Mar 2024 31 Mar 2023 (from 1/04/2023 to 31/03/2024) Adj.EBITDA 412 427 1,613 Adjustments (19) (29) (133) EBITDA 393 398 1,480 Net Change in provisions & others (9) 11 62 Share of income from investments in op.activities (15) (8) (40) Cash flow from operations (before
Slide 28: Bridge consolidation sales
Bridge consolidation sales TRANSMISSION POWER GRID INDUSTRIAL & CONSTRUCTION 13 ( 10 ) ( 4) ( 76 ) ( 25 ) ( 5) 5 ( 12 ) - Org.growth 474 853 Org.growth 852 1.299 Org.growth 1.193 481 1.0% 1.5% -5.8% 1Q 2023 Organic Metal Exchange 1Q 2024 1Q 2023 Organic Metal Exchange 1Q 2024 1Q 2023 Organic Metal E
Slide 29: Notes
Notes 1) FCF excluding Acquisitions & Disposals and Antitrust impact; 2) Adjusted EBITDA: EBITDA excluding restructuring, non-operating income/expenses and non-recurring income / expenses 3) Slide 5: Total backlog including SURF and Submarine Telecom 4) Slide 12: Cash flow operations (before WC chan
Slide 30: Disclaimer
Disclaimer ▪ The managers responsible for preparing the represent investment advice or a recommendation company's financial reports, A.Brunetti and for the purchase or sale of financial products and/or S.Invernici, declare, pursuant to paragraph 2 of of any kind of financial services. Finally, this
Slide 31: prysmian.com
prysmian.com