Prysmian S.p.a. · MIL:PRY
Prysmian — H1 2016 Earnings Presentation
31 slides from Prysmian's earnings presentation, Jul 28, 2016
Slide 1: H1 2016 Financial Results
H1 2016 Financial Results Milan – July 28th, 2016
Slide 2: Agenda
Agenda H1 2016 Highlights o Group overview o Results by business o Outlook Financial results Appendix H1 2016 Financial Results 2
Slide 3: H1 2016 Highlights
H1 2016 Highlights Organic Growth at +1.8%, supported by continued strong performance of Energy Projects business and solid growth of Telecom business. Adj. EBITDA at € 347m (9.2% on Sales), with a significant improvement vs. €314m of H1 2015 also considering that: H1 2015 benefitted from € 24
Slide 4: H1 2016 Key Financials
H1 2016 Key Financials Euro Millions, % on Sales Sales Adjusted EBITDA (1) **∆ OCI Contribution H1’16 vs. H1’15 * WL previous loss write-up 7,361 623 **∆ OCI Contribution H1’16 vs. H1’15 +1.8%* 347 3,737 3,785 314 24** 289** 24* 8.5% 8.4% 9.2% 2015 H1 '15 H1 '16 2015 H1 '15 H1 '16 * Org. Growth Oper
Slide 5: H1 2015-2016 Adj. EBITDA Bridge
Continued profitability improvement Underlying margin increase driven by Energy Projects, Telecom and OCI consolidation Organic Growth X.X% +22.7% -1.1% -1.5% -33.9% +5.8% +1.8% Adj. EBITDA Margin H1’15 15.1% 15.6% 14.6% H1’16 ~12%* 12.2% 13.7% Excl. bad debt 8.2% 9.4% 8.4% 9.2% 7.0% provision 4.3%
Slide 6: Focus on Margin Growth
Focus on Margin Growth Key strategic drivers. Focus on Margin Growth Energy Telecom OCI Cost Projects • Continued Acquisition Efficiency • Investing in fiber cost • Margin • Focus on fixed installation reduction accretive cost reduction capabilities • Extension of acquisition • Continued • Strenghte
Slide 7: Strengthening our installation capacity
Strengthening our installation capacity. New shallow water installation barge “Ulisse” added to the fleet. GIULIO VERNE CABLE ENTERPRISE • Main activity: Deep-water Installation • Main activity: Mid-water depth Installation • On duty since: 1989 • On duty since: 2012 • Length overall: 133.2m • Lengt
Slide 8: Agenda
Agenda H1 2016 Highlights o Group overview o Results by business o Outlook Financial results Appendix H1 2016 Financial Results 8
Slide 9: Energy Projects
Energy Projects Euro Millions, % on Sales Sales Highlights 1,416 Submarine • Double-digit organic growth benefitting from solid execution and +22.7%* favourable project phasing. 761 • Strong project management and new installation assets driving a 639 significant margin improvement. • H1 2015 Adj. E
Slide 10: Energy & Infrastructure
Energy & Infrastructure Euro Millions, % on Sales Sales Highlights **∆ OCI Contribution Trade & Installers 2,795 H1’16 vs. H1’15 • Low single-digit organic decrease also driven by mix improvement -1.1%* strategy in Europe. 1,468 1,567 • Positive trend in the Nordics, UK, Eastern Europe and Oceania m
Slide 11: Industrial & Network Components
Industrial & Network Components Euro Millions, % on Sales Sales Highlights Specialties & OEMs 1,499 • Organic trend substantially flat in H1 but softening in Q2, with -1.5%* sound growth in Defense, Crane and Marine offset by weak Nuclear, Railways and Mining. 752 682 • In Renewables, slowdown in wi
Slide 12: Oil & Gas
Oil & Gas Euro Millions, % on Sales Sales Highlights 421 SURF • Umbilical: results in line with expectations, reflecting the framework -33.9%* agreement. Supply chain optimization and integration with key suppliers progressing well. 245 • DHT: Financials benefitting from the synergies generated from
Slide 13: Telecom
Telecom Euro Millions, % on Sales Sales Highlights Telecom Solutions 1,109 • Optical cables and fiber business broadly stable, with a slight +5.8%* acceleration in Q2 thanks to strong growth in Australia, North America and France, more than offsetting the market weakness in 578 570 the rest of Europ
Slide 14: Agenda
Agenda H1 2016 Highlights o Group overview o Results by business o Outlook Financial results Appendix H1 2016 Financial Results 14
Slide 15: FY 2016 Outlook
FY 2016 Outlook Margin improvement mainly driven by Energy Projects and Telecom. Negative FX. 2016 Adj.EBITDA Target (€ million)* 2016 Adj.EBITDA Target Assumptions (€ million) Mid-point target assumptions: • Positive trend in Energy Projects and Telecom 670 Mid-point € 695m 720 • Cyclical businesse
Slide 16: Agenda
Agenda H1 2016 Highlights o Group overview o Results by business o Outlook Financial results Appendix H1 2016 Financial Results 16
Slide 17: Profit and Loss Statement
Profit and Loss Statement Euro Millions ∆ OCI contrib. H1 2016 H1 2015 H1 ‘16 vs. H1’15 Sales 3,785 3,737 289 YoY total growth 1.3% 13.7% YoY organic growth 1.8% 7.6% Adj.EBITDA 347 314 24 % on sales 9.2% 8.4% Adjustments (25) (53) (5) EBITDA 322 261 19 % on sales 8.5% 7.0% Adj.EBIT 261 242 10 % on
Slide 18: Adjustments and Special Items on EBIT
Adjustments and Special Items on EBIT Euro Millions H1 2016 H1 2015 Non-recurring Items (Antitrust Investigation) - (20) Restructuring (11) (28) Other Non-operating Income / (Expenses) (14) (5) EBITDA adjustments (25) (53) Special items (19) (16) Gain/(loss) on metal derivatives 20 (1) Assets impair
Slide 19: Financial Charges
Financial Charges Euro Millions H1 2016 H1 2015 Net interest expenses (28) (40) of which non-cash conv.bond interest exp. (4) (4) Bank fees amortization (2) (2) Gain/(loss) on exchange rates 7 (16) Gain/(loss) on derivatives 1) (12) 8 Non recurring effects (1) (2) Other (1) (1) Net financial charges
Slide 20: Statement of financial position (Balance Sheet)
Statement of financial position (Balance Sheet) Euro Millions 30 Jun 2016 New Perimeter 30 Jun 2015 31 Dec 2015* Acquired Net fixed assets 2,565 359 2,268 2,581 of which: goodwill 444 67 383 452 of which: intangible assets 347 199 172 371 of which: property, plants & equipment 1,563 93 1,447 1,552 N
Slide 21: Cash Flow
Cash Flow Euro Millions H1 2016 H1 2015 Adj.EBITDA 347 314 Adjustments (25) (53) EBITDA 322 261 Net Change in provisions & others (14) 8 Share of income from investments in op.activities (14) (18) Cash Flow from operations (bef. WC changes) 294 251 Working Capital changes (291) (198) Dividends recei
Slide 22: Agenda
Agenda H1 2016 Highlights o Group overview o Results by business o Outlook Financial results Appendix H1 2016 Financial Results 22
Slide 23: Bridge Consolidated Sales
Bridge Consolidated Sales Euro Millions Energy Projects E&I Industrial & NWC ( 11 ) ( 40 ) (16 ) 289 (19 ) ( 7) ( 16) (110 ) 145 ( 64 ) Org.growth -1.5% Org.growth 1,567 752 761 1,468 -1.1% 682 Org.growth 1,278 639 +22.7% Oil & Gas Telecom Total Consolidated 67 34 (9 ) (30 ) ( ) (172) 3 ( 83) 298 (
Slide 24: Profit and Loss Statement
Profit and Loss Statement Euro Millions ∆ OCI contrib. Full OCI H1’16 H1 2016 H1 2015 H1 ‘16 vs. H1’15 Results Sales 3,785 3,737 289 289 YoY total growth 1.3% 13.7% YoY organic growth 1.8% 7.6% Adj.EBITDA 347 314 24 31 % on sales 9.2% 8.4% 10.6% of which share of net income from OCI - 7 (7) - Adjust
Slide 25: Energy Projects Segment – Profit and Loss Statement
Energy Projects Segment – Profit and Loss Statement Euro Millions H1 2016 H1 2015 Sales to Third Parties 761 639 YoY total growth 19.3% YoY organic growth 22.7% Adj. EBITDA 111 100 % on sales 14.6% 15.6% Adj. EBIT 94 85 % on sales 12.4% 13.3% H1 2016 Financial Results 25
Slide 26: Energy Products Segment – Profit and Loss Statement
Energy Products Segment – Profit and Loss Statement Euro Millions ∆ OCI Contribution H1 2016 H1 2015 H1 ‘16 vs. H1’15 E&I 1,567 1,468 289 YoY total growth 6.8% 0.0% Sales to Third Parties YoY organic growth (1.1%) 0.0% Industrial & Netw. Comp. 682 752 - YoY total growth (9.4%) 0.0% YoY organic growt
Slide 27: Oil&Gas Segment – Profit and Loss Statement
Oil&Gas Segment – Profit and Loss Statement Euro Millions H1 2016 H1 2015 Sales to Third Parties 156 245 YoY total growth (36.3%) YoY organic growth (33.9%) Adj. EBITDA 7 17 % on sales 4.2% 7.0% Adj. EBIT (1) 12 % on sales (0.8%) 4.7% H1 2016 Financial Results 27
Slide 28: Telecom Segment – Profit and Loss Statement
Telecom Segment – Profit and Loss Statement Euro Millions H1 2016 H1 2015 Sales to Third Parties 570 578 YoY total growth (1.5%) 0.0% YoY organic growth 5.8% 0.0% Adj. EBITDA 78 71 % on sales 13,7% 12.2% Adj. EBIT 58 49 % on sales 10.3% 8.5% H1 2016 Financial Results 28
Slide 29: Non Recurring Items – Change in Representation
Non Recurring Items – Change in Representation Implementing ESMA recommendation. BEFORE AFTER Adj. EBITDA Adj. EBITDA Antitrust Investigation Non Recurring Items Non Recurring Restructuring Restructuring Items Others Other Non Operating Income (Expenses) EBITDA EBITDA H1 2016 Financial Results 29
Slide 30: 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 2,500 100 8,000 2,000 75 6,000 1,500 50 4,000 1,000 25 2,000 500 J-08 J-09 J-10 J-11 J-12 J-13 J-14 J-15 J-16 J-08 J-09 J-
Slide 31: 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