Prysmian S.p.a. · MIL:PRY
Prysmian — 9M 2019 Earnings Presentation
28 slides from Prysmian's earnings presentation, Nov 12, 2019
Slide 1: 9M 2019 Financial Results
9M 2019 Financial Results MILAN – November 12th, 2019
Slide 2: Agenda
AGENDA ➢ 9M 2019 Highlights o Group overview o Outlook ➢ Financial Results ➢ Appendix 2
Slide 3: 9M 2019 Financial Highlights
9M 2019 Financial Highlights Organic sales growth at +0.3% (+1.3% excluding Projects) driven by: - Solid performance of North America (+3.3%) - Solid trend in E&I (+2.4%), driven by Power Distribution - Positive growth in Telecom (+3.8%), driven by high single digit Optical, starting to slow down du
Slide 4: 9M 2019 Financial Highlights
9M 2019 Financial Highlights Euro Millions, % on Sales Sales (1) (4) Adjusted EBITDA (1)(2) 11,523 +0.3%* 767 773 8,712 651 30 IFRS 16 effect 8,635 743 6.7% 7.5% 8.9% FY 2018 9M 2018 9M 2019 FY 2018 9M 2018 9M 2019 combined combined combined combined * Org. Growth. Reported Operative Net Working Cap
Slide 5: Adj. EBITDA by Segment
Adj. EBITDA by Segment Euro Millions, % on Sales, excluding IFRS 16 impact Projects Energy Telecom Sales Organic growth -5.4% Sales Organic growth 0.8% Sales Organic growth 3.8% Excluding WL E&I Industrial & NWC. Excluding one-offs 2.4% -2.4% 227 228 225 216 224 208 138 148 148 159 142 127 10.4% 11.
Slide 6: Sales & Adj. EBITDA by Geography
Sales & Adj. EBITDA by Geography Euro Millions, % on Sales, excluding IFRS 16 impact EMEA North America Latin America Asia Pacific Total 4,617 -1.5% 2,610 +3.3% 684 +1.6% 724 -1.2% 8,635 +0.3% -0.3% +2.6% +3.9% +1.2% +1.3% 743 651 403 70 356 277 181 333 66 84 53 44 7.0% 7.7% 7.3% 10.6% 7.1% 9.6% 11.
Slide 7: Agenda
AGENDA ➢ 9M 2019 Highlights o Group overview o Outlook ➢ Financial Results ➢ Appendix 7
Slide 8: 2019 Guidance Confirmed
2019 Guidance Confirmed 2019 Adj. EBITDA target (€M) Mid-point 950 1,020 985 2019 Adj. EBITDA target excluding the estimation impact from the application of IFRS 16 (approx. 40 €M) FCF Outlook (€M) (*) FCF before acquisition & disposals target ~ 300 ±10% Including restructuring & integration cash ou
Slide 9: Agenda
AGENDA ➢ 9M 2019 Highlights o Group overview o Outlook ➢ Financial Results ➢ Appendix 9
Slide 10: Profit and Loss Statement
Profit and Loss Statement Euro Millions 9M 2019 9M 2018 Adj. EBITDA Bridge of which total IFRS 16 combined reported (4) Q1 Q2 Q3 9M Sales 8,635 8,712 7,293 ADJ. EBITDA 2018 198 215 238 651 YoY total growth combined (0.9%) YoY organic growth 0.3% 2018 WL effect 20 50 - 70 Adj.EBITDA 773 30 651 577 Pr
Slide 11: Adjustments and Special Items on EBIT
Adjustments and Special Items on EBIT Euro Millions 9M 2019 9M 2018 Non-recurring Items (Antitrust investigation) (20) (1) Restructuring (17) (25) of which General Cable integration costs (4) (15) Other Non-operating Income / (Expenses) (25) (17) of which General Cable acquisition related costs - (6
Slide 12: Financial Charges
Financial Charges Euro Millions 9M 2019 9M 2018 Net interest expenses (65) (56) of which non-cash conv.bond interest exp. (7) (9) Financial costs IFRS 16 (3) n.a. Bank fees amortization (6) (6) Gain/(loss) on exchange rates (25) (24) Gain/(loss) on derivatives 7 15 Non recurring effects (2) (2) Othe
Slide 13: Statement of financial position (Balance Sheet)
Statement of financial position (Balance Sheet) Euro Millions 30 Sept 2019 30 Sept 2018 (4) 31 Dec 18 (4) Net fixed assets 5,290 5,023 5,101 of which: goodwill 1,618 1,561 1,571 of which: IFRS 16 effect 128 n.a n.a Net working capital 1,627 1,458 692 of which: derivatives assets/(liabilities) (15) 4
Slide 14: LTM Cash Flow
LTM Cash Flow Euro Millions Net financial debt evolution LTM 155 (36 ) ( 873) 118 113 125 246 82 71 149 3,063 3,027 2,877 2,790 2,908 2,552 2,677 2,235 2,306 2,004 2,004 2,153 0 30-Sep-18 Cash flow WC WL General Net Operative Financial Paid income Dividend IFRS 16 Other 30-Sep-19 operations changes
Slide 15: Agenda
AGENDA ➢ 9M 2019 Highlights o Group overview o Outlook ➢ Financial Results ➢ Appendix 15
Slide 16: Performance by Segment
Performance by Segment Euro Millions, % on Sales, excluding IFRS 16 impact Adj. EBITDA Margin 9M’18 9M’19 18.4% 17.5% 10.4% 11.8% 6.7% 7.7% 7.5% 8.6% 4.0% 5.6% 17.4%* 17.4%* Project E&I Industrial & NWC. Telecom Total Adj. EBITDA (€M) / % Org. Growth 9M’18 9M’19 ±X.X% = Sales Organic Trend +0.3% 743
Slide 17: Projects
Projects Euro Millions, % on Sales, excluding IFRS 16 impact Sales Highlights 1,750 -5.4%* SUBMARINE 1,319 • Adj. EBITDA margin –ex WL- impacted by operational reworks and project phasing 1,247 • Operations strengthening: flawless execution in 2019 • Tendering activity ongoing, with a solid pipeline
Slide 18: Energy & Infrastructure
Energy & Infrastructure Euro Millions, % on Sales, excluding IFRS 16 impact Sales (5) Highlights 5,318 +2.4%* TRADE & INSTALLERS • Global stable trend -mainly driven by North America- slowing down in Q3 4,021 4,060 • Profitability improvement in North America and Latin America POWER DISTRIBUTION • S
Slide 19: Industrial & Network Components
Industrial & Network Components Euro Millions, % on Sales, excluding IFRS 16 impact Sales (5) Highlights -2.4%* SPECIALTIES, OEMS & RENEWABLES 2,527 • Positive O&M and renewables, especially in Latin America and North America, supported by clear Management approach 1,907 1,858 • Positive trend in Mi
Slide 20: Telecom
Telecom Euro Millions, % on Sales, excluding IFRS 16 impact Sales Highlights 1,634 +3.8%* OPTICAL CABLE & FIBRE • Solid YTD growth –softer in Q3 due to customers excess of stock- supported by positive trend mainly in Europe and 1,240 1,290 North America • EBITDA Margin benefitting from volume increa
Slide 21: Bridge Consolidation Sales
Bridge Consolidation Sales Euro Millions - Fully Combined Results Projects Energy & Infrastructure ( 72 ) 2 (2) ( 127 ) 71 95 Total Consolidated Org.growth Org.growth 1,319 -5.4% 1,247 4,021 2.4% 4,060 24 (218 ) 117 9M 2018 Organic Metal Exchange 9M 2019 9M 2018 Organic Metal Exchange 9M 2019 Org.gr
Slide 22: Profit and Loss Statement
Profit and Loss Statement Euro Millions 9M 2019 9M 2018 of which total IFRS 16 combined reported (4) Sales 8,635 8,712 7,293 YoY total growth combined (0.9%) YoY organic growth 0.3% Adj.EBITDA 773 30 651 577 % on sales 8.9% 7.5% 7.9% of which share of net income 22 50 Adjustments (62) (43) EBITDA 71
Slide 23: Cash Flow Statement
Cash Flow Statement Euro Millions 12 Months (from 9M 2019 9M 2018 1/10/2018 to 30/9/2019) Adj.EBITDA 773 577 889 Adjustments (62) (43) (211) EBITDA 711 534 678 Net Change in provisions & others (104) (81) 87 Share of income from investments in op.activities (22) (50) (31) Cash flow from operations (
Slide 24: Financial Highlights
Financial Highlights Euro Millions - Fully Combined Results Sales Adj.EBITDA 9M 2019 9M 2018 9M 2019 9M 2018 * total organic of which Adj.EBITDA Adj.EBITDA €M €M €M €M growth growth IFRS 16 Margin Margin PROJECTS 1,247 -5.5% -5.4% 1,319 152 4 12.2% 138 10.4% Energy & Infrastructure 4,060 1.0% 2.4% 4
Slide 25: Prysmian Group Debt Profile
Prysmian Group Debt Profile Average maturity of 3.3 years including RCF 2019 – Limited exposure to financial market volatility FIXED/VARIABLE RATE COMPOSITION REPAYMENT DATE (€M) Total gross debt: 3,162 (1) Floating Unicredit TL Convertible bond RCF 2019 18% 200 zero–coupon 477 1.000 Acq Term Loan F
Slide 26: Notes
Notes (1) General Cable figures included starting from 1 January 2018; General Cable figures are restated applying Prysmian accounting principles and policies; (2) Adjusted excluding restructuring, non-operating income/expenses and non-recurring income / expenses; (3) Defined as NWC excluding deriva
Slide 27: Disclaimer
Disclaimer • The managers responsible for preparing the company's financial reports, A.Brunetti 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 i
Slide 28: Thank you
Thank you prysmiangroup.com