Prysmian S.p.a. · MIL:PRY
Prysmian — H1 2022 Earnings Presentation
32 slides from Prysmian's earnings presentation, Jul 28, 2022
Slide 1: 1H 2022 Financial Results
1H 2022 Financial Results Milan - July 28th, 2022
Slide 2: Key Highlights
Key Highlights STRONGEST QUARTER EVER 411 €M ▪ Remarkable performance continued in Q2, driven by focus on serving customers, efficient and flexible operations and exposure to structural growth drivers Adj. Ebitda in Q2 OUTSTANDING RESULTS DRIVEN BY ENERGY AND TELECOM ▪ Excellent performance in Energ
Slide 3: 1H 2022 Financial Highlights
1H 2022 Financial Highlights SALES ADJ. EBITDA FREE CASH FLOW SALES ORGANIC GROWTH* ADJ. EBITDA ADJ. EBITDA MARGIN FCF** NET DEBT 7,949 €M 12.5% 699 €M 8.8% 174 €M 2,330 €M SOLID ORGANIC GROWTH MARGINS EXPANSION FREE CASH FLOW ▪ +16.5% E&I, with sound trends across ▪ +229 €M Adj. Ebitda increase vs
Slide 4: Sound growth across businesses and regions
Sound growth across businesses and regions 1Q/1H 2022 y-o-y org. growth excluding Projects segment Org growth by Geography Organic growth by Business 36% of total 47% of total Group org. growth Group Group (ex-Projects) 18.7% 14.1% 10.0% 11.1% 12.5% NORTH 1Q 1H 1Q 1H EMEA 11.4% AMERICA 16.5% 14.7% 9
Slide 5: Sustaining leadership in the Projects business
Sustaining leadership in the Projects business Visibility on over 10 €Bn orders NEW CABLE PLANT IN THE US 2022 NEW ORDERS: ~ 2.4 € BILLION ONLY FIRM ORDERS IN THE BACKLOG First construction permits received for the List of main projects awarded in 2022 Included only projects with Notice to Proceed n
Slide 6: Sound performance across segments, outstanding Energy
Sound performance across segments, outstanding Energy Projects Energy Telecom TOTAL 681 922 +28.4% 4,551 6,116 +13.6% 802 911 +6.6% 6,034 7,949 +14.3% Sales Sales E&I Industrial & NWC 699 3,048 4,194 +16.5% 1,349 1,714 +8.7% 470 344 Adj. Ebitda Adj. Ebitda 130 123 138 Adj. Ebitda % 169 99 8 13 at 20
Slide 7: Energy Division – Serving market segments with increasing demand
Energy Division – Serving market segments with increasing demand… 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 Applicati
Slide 8: With geographical presence fit to navigate through challenges
…With geographical presence fit to navigate through challenges Before General Cable After General Cable APAC 12% APAC 8% FY 2017 1H 2022 LATAM 8% LATAM 6% revenue revenue 7.9 €Bn North 7.9 €Bn America EMEA North 51% 15% EMEA America 67% 33% APAC 13% APAC 5% LATAM 9% FY 2017 LATAM 4% 1H 2022 adj. ebi
Slide 9: The value of a wide geographical presence
The value of a wide geographical presence Data excluding Projects EMEA NORTH AMERICA LATIN AMERICA ASIA PACIFIC 2,584 3,318 +11.1% 1,810 2,527 +18.7% 487 636 +9.8% 472 546 -0.3% Sales 335 Adj. Ebitda 183 150 166 62 14.1% 46 32 32 5.9% 10.5% 6.3% 5.8% 5.5% 9.1% 13.2% 9.5% 9.8% 6.9% 5.9% 1H 2021 1H 20
Slide 10: 1H 2022 Highlights Financial
1H 2022 Financial Appendix Highlights Results Group Overview Outlook
Slide 11: Upgrading 2022 outlook | Increasing Adj Ebitda guidance by more than 30%
Upgrading 2022 outlook | Increasing Adj Ebitda guidance by more than 30% PREVIOUS 2022 GUIDANCE NEW 2022 GUIDANCE Trend of Energy markets in H2 Substantial Slight deterioration deterioration Stability ADJ. EBITDA (€M) ADJ. EBITDA 1,350 1,010 1,080 (€M) 1,300 Mid-point 1,400 FCF before acquisition FC
Slide 12: 1H 2022 Highlights Financial
1H 2022 Financial Appendix Highlights Results Group Overview Outlook
Slide 13: Profit and Loss Statement
Profit and Loss Statement Euro Millions 1H 2022 1H 2021 Adj. EBITDA Bridge SALES 7,949 6,034 YoY total growth 31.7% Q1 Q2 1H YoY organic growth 14.3% Adj.EBITDA 699 470 ADJ. EBITDA 2021 213 257 470 % on sales 8.8% 7.8% Projects 3 8 11 of which share of net income 16 9 Energy 63 140 203 Adjustments (
Slide 14: Statement of financial position (Balance Sheet)
Statement of financial position (Balance Sheet) Euro Millions 30 Jun 2022 30 Jun 2021 31 Dec 2021 Net fixed assets 5,521 5,061 5,304 of which: goodwill 1,731 1,596 1,643 Net working capital 1,374 1,129 650 of which: derivatives assets/(liabilities) (55) 190 174 of which: Operative Net working capita
Slide 15: Cash Flow
Cash Flow +174 €M Free Cash Flow (1,094) 19 4 (7) ( 57) 151 67 160 322 363 15 2,387 2,330 o/w 345 €M metal price impact 30-Jun-21 Cash flow WC Restructuring Net Operative Financial Paid income Dividend Antitrust Dividend Acquisitions & Other 30-Jun-22 net debt operations changes costs Capex Charges
Slide 16: A solid and sustainable financial structure
A solid and sustainable financial structure Fixed/Variable rate composition ▪ 1.2 €Bn new sustainability linked Term Loan signed on July ▪ Increasing average debt maturity at 4.5 years Variable ~30% ▪ Approx. 650 €M cash on balance as of 30th June 2022 Fixed ~70% CURRENT FINANCIAL DEBT MATURITY PROF
Slide 17: Closing Remarks
Closing Remarks Outstanding results driven by Broad business portfolio highly strong customer focus exposed to secular trends Effective working capital High visibility and flawless management and focus on cash execution © Prysmian Group 2022 2021 17
Slide 18: 1H 2022 Highlights Financial
1H 2022 Financial Appendix Highlights Results Group Overview Outlook
Slide 19: German Corridors
German Corridors 525kV HVDC Technology HVDC Innovation Leadership 200 kms produced 180 kms FAT Prysmian has completed all PREQUALIFICATIONS and TYPE TESTS ON SCHEDULE for both P-Laser and XLPE 525kV HVDC Systems State of the Art High Voltage Electrical Labs set up in LIVORNO, GRON 165 kms in Germany
Slide 20: Industry Best Technologies Suite
Industry Best Technologies Suite HVDC Technologies HVAC Technologies XLPE MI XLPE ± 600 kV | 3000 MW ± 525 kV | 2400 MW ± 275 kV | 500 MVA EPR ± 72.5 kV | 90 MVA P-LASER MI-PPL XLPE ± 600 kV | 3500 MW ± 700 kV | 3400 MW ± 420 kV | 1200 MVA fixed windfarms floating windfarms HV Land Export static Int
Slide 21: 1H 2022 Financial highlights
1H 2022 Financial highlights Euro Millions, % on Sales SALES ADJUSTED EBITDA (1) +14.3%* 699 7,949 6,034 470 7.8% 8.8% 1H 2021 1H 2022 1H 2021 1H 2022 OPERATIVE NET WORKING CAPITAL (2) NET FINANCIAL DEBT 1,429 2,387 2,330 1,760 939 476 3.5% 7.3% 8.4% DEC-21 JUN-21 JUN-22 DEC-21 JUN-21 JUN-22 © Prysm
Slide 22: Projects
Projects Euro Millions, % on Sales SALES HIGHLIGHTS +28.4%* 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 €2.4 billion of new orders YTD 922 681 UNDERGROUND HIGH VOL
Slide 23: Energy & Infrastructure
Energy & Infrastructure Euro Millions, % on Sales SALES HIGHLIGHTS +16.5%* TRADE & INSTALLERS / Excellent performance continued in Q2 / Solid demand and price management drives margins improvement 4,194 3,048 POWER DISTRIBUTION / Double digit organic growth (with an acceleration in Q2) across all re
Slide 24: Industrial & Network Components
Industrial & Network Components Euro Millions, % on Sales SALES HIGHLIGHTS +8.7%* 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 1,714 ELEVATOR 1,349
Slide 25: Telecom
Telecom Euro Millions, % on Sales SALES HIGHLIGHTS +6.6%* OPTICAL CABLE & FIBRE / Solid growth continued in Optical in particular in North America / New partnership with Telstra in Australia / Further capacity expansion in North America 802 911 MMS / Positive trend continued in Q2 1H 2021 1H 2022 *
Slide 26: Financial Highlights
Financial Highlights Euro Millions Sales Adj.EBITDA 1H 2022 1H 2021 1H 2022 1H 2021 organic Adj.EBITDA Adj.EBITDA €M €M €M €M growth Margin Margin PROJECTS 922 28.4% 681 87 9.4% 76 11.1% Energy & Infrastructure 4,194 16.5% 3,048 344 8.2% 169 5.5% Industrial & Network Components 1,714 8.7% 1,349 130
Slide 27: Profit and Loss Statement
Profit and Loss Statement Euro Millions 1H 2022 1H 2021 SALES 7,949 6,034 YoY total growth 31.7% YoY organic growth 14.3% Adj.EBITDA 699 470 % on sales 8.8% 7.8% of which share of net income 16 9 Adjustments (34) (26) Adjustments and non monetary items on EBIT EBITDA 665 444 % on sales 8.4% 7.4% 1H
Slide 28: Cash Flow Statement
Cash Flow Statement Euro Millions 12 Months 30 Jun 2022 30 Jun 2021 (from 1/7/2021 to 30/6/2022) Adj.EBITDA 699 470 1,205 Adjustments (34) (26) (57) EBITDA 665 444 1,148 Net Change in provisions & others (22) (27) 22 Share of income from investments in op.activities (16) (9) (34) Cash flow from oper
Slide 29: Bridge Consolidation Sales
Bridge Consolidation Sales Euro Millions PROJECTS ENERGY & INFRASTRUCTURE 31 17 193 193 28 424 501 Org.growth 922 4,194 Org.growth 681 28.4% 3,048 TOTAL CONSOLIDATED 16.5% 1H 2021 Organic Metal Exchange 1H 2022 1H 2021 Organic Metal Exchange Perimeter 1H 2022 Growth Effect Rate Growth Effect Rate Ef
Slide 30: 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) Current financial debt maturity profile (Excluding debt held by local affiliates and debt coming from IFRS 16
Slide 31: 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 32: Thank you
Thank you prysmiangroup.com 32