Prysmian S.p.a. · MIL:PRY
Prysmian — H1 2023 Earnings Presentation
34 slides from Prysmian's earnings presentation, Jul 27, 2023
Slide 1: 1H 2023 Integrated Results
1H 2023 Integrated Results July 27th, 2023 © Prysmian Group 2021 1
Slide 2: 1H 2023 Highlights
1H 2023 HIGHLIGHTS STANDING STRONG THANKS TO A BALANCED PORTFOLIO Sales Adj. EBITDA FCF LTM* GHG emissions reduction (Scope 1 & 2 vs.1H 2022) 8,003 €M 878 €M 567 €M -9.8% Org. Growth Adj. EBITDA margin Net Debt Share of recycled materials(5) 4.8% 11.0% 2,065 €M 12.6% INVESTMENT GRADE RATING ASSIGNED
Slide 3: Sound Margin Expansion
SOUND MARGIN EXPANSION Projects Energy Telecom TOTAL 922 1,177 +23.5% 6,116 5,969 +3.4% 911 857 -5.2% 7,949 8,003 +4.8% Sales Sales E&I Industrial & NWC 878 4,194 4,080 +2.8% 1,714 1,729 +5.3% 699 446 Adj. Ebitda Adj. Ebitda 344 182 129 138 127 130 13 87 13 9.4% 11.0% 8.2% 10.9% 7.6% 10.5% 15.1% 14.
Slide 4: High Visibility and Strong Focus on Execution
HIGH VISIBILITY AND STRONG FOCUS ON EXECUTION Selective approach in a growing market ~ 5.4 €Bn OF NEW ORDERS YTD (INCLUDING PREFERRED BIDDER) ONLY FIRM ORDERS IN THE BACKLOG SOLID ORDER INTAKE EGL 1 & EGL 2 not yet included in the backlog IJMUIDEN OFFSHORE WIND (~ 1.8 €Bn ) 9.1 BISCAY GULF INTERCONN
Slide 5: Profitability Improvement Across Regions
PROFITABILITY IMPROVEMENT ACROSS REGIONS Data excluding The value of a wide geographical presence Projects Business EMEA NORTH AMERICA LATIN AMERICA ASIA PACIFIC 3,318 3,276 +5.5% 2,527 2,407 -0.6% 636 636 -0.1% 546 507 -0.8% org. growth Sales 406 335 Adj. Ebitda 240 183 62 63 32 40 5.5% 7.3% 13.2%
Slide 6: 1H 2023: ESG Highlights
1H 2023: ESG HIGHLIGHTS ESG KPIs 1H 2023 1H 2022 FY 2022 -9.8% tCO2 emissions - Scope 1 & Scope 2 y-o-y Market Based (4) 309,048 342,541 665,104 Share of recycled content on PE jackets and copper (5) 12.6% n/a 10% Percentage of Executive women 18.2% 14.6% 15.7% (job grade ≥ 20) (6) Percentage of whi
Slide 7: Outlook
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Slide 8: Upgrading 2023 Outlook
UPGRADING 2023 OUTLOOK UPDATED 2023 ADJ. EBITDA TARGET (€M) UPDATED 2023 FCF TARGET (€M) 1,625 550 600 650 1,575 Mid-point 1,675 Mid-point PREVIOUS TARGET PREVIOUS TARGET 1,450 450 500 550 1,375 Mid-point 1,525 Mid-point 550 - 650 1,575 - 1,675 559 1,488 976 365 2021 2022 2023 target 2021 2022 2023
Slide 9: Capital Market Day
CAPITAL MARKET DAY We will hold our Capital Market Day on Thursday October 5, 2023 The event will take place in Naples, Italy. For invited guests it is recommended to arrive in Naples, October 4, 2023. For information, please contact: capitalmarketday@prysmiangroup.com © Prysmian Group 2021 9
Slide 10: Financial Results
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Slide 11: Profit and Loss Statement
PROFIT AND LOSS STATEMENT Euro Millions 1H 2023 1H 2022 SALES 8,003 7,949 Adj. EBITDA Bridge YoY total growth 0.7% YoY organic growth 4.8% Q1 Q2 1H Adj.EBITDA 878 699 ADJ. EBITDA 2022 288 411 699 % on sales 11.0% 8.8% Projects 24 18 42 of which share of net income 15 16 Energy 115 33 148 Adjustments
Slide 12: Statement of Financial Position (Balance Sheet)
STATEMENT OF FINANCIAL POSITION (BALANCE SHEET) Euro Millions (9) 30 Jun 2023 30 Jun 2022 31 Dec 2022 Net fixed assets 5,609 5,524 5,583 of which: goodwill 1,674 1,723 1,691 Net working capital 1,362 1,374 614 of which: derivatives assets/(liabilities) (55) (55) 5 of which: Operative Net working cap
Slide 13: Cash Flow
CASH FLOW +567 €M Free Cash Flow ( 1,603 ) 222 ( 10 ) 167 327 ( 132 ) 45 61 498 Of which 2,330 IFRS 16: 130 €M 160 2,065 30-Jun-22 Cash flow WC Net Operative Financial Paid income Dividend Sell to cover Antitrust Dividend Other 30-Jun-23 net debt operations changes Capex Charges taxes received in WC
Slide 14: Closing Remarks
CLOSING REMARKS Outstanding performance in PD and OHL Solid 1H results and significant FY23 guidance upgrade Flawless execution and better mix driving Projects Strong cash generation CO2 emissions reduction fully on track Investment grade rating assigned by Strong focus on circular economy S&P Globa
Slide 15: ESG
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Slide 16: Group's Priorities
GROUP’S PRIORITIES Solid Governance Environment Social Innovation SCOPE 1 & 2 NET ZERO BY 2035 Allow customers to -21% SCOPE 3 NET-ZERO BY 2050 choose the greener option -47% 2030 SOCIAL AMBITION -28% Design solutions fit for sustainability 2022 2030 2035 2050 Upstream Value Chain THE SUSTAINABILITY
Slide 17: Climate Change Ambition
CLIMATE CHANGE AMBITION Prysmian has Near-Term and Net-Zero Targets Approved by SBTi Our Targets Our Commitment -7.5% Updated from -21% 1. Reduce absolute Scope 1 and 2 GHG -28% emissions 47% by 2030 from a 2019 Carbon emissions base year. Reduce absolute Scope 3 reduction (%) GHG emissions 28% with
Slide 18: Reducing Our Customer's CO2
REDUCING OUR CUSTOMER’S CO2 Digitalizing the Supply First Eco Label in the Recyclability of materials PryID Chain Industry Visibility over cable-related 6 measurable and recognized Offering full recyclability and superior RFID technology to the full suite of emissions & Optimization in the sustainab
Slide 19: 2023 – 2025 Sustainability Scorecard
2023 – 2025 SUSTAINABILITY SCORECARD Category BASELINE TARGET TARGET SDGs KPI Included in 2022 2025 2030 21m 110m Enable access to green electricity to households Impacts on Society Enable fast digital access to households 3m 15m Percentage reduction of Scope 1&2 GHG Emissions vs baseline 2019 LTI -
Slide 20: Appendix
AGENDA Appendix
Slide 21: A Solid and Sustainable Financial Structure
A SOLID AND SUSTAINABLE FINANCIAL STRUCTURE ▪ Average debt maturity of 4.7 years (including Revolving Credit Facility) Fixed/Variable rate composition ▪ 1.0 €Bn of committed Sust. Linked Revolving Credit Facility fully unutilized Variable as of 30th June 2023 (refinancing signed on 20th June 2023) ~
Slide 22: 1H 2023 Financial Highlights
1H 2023 FINANCIAL HIGHLIGHTS Euro Millions, % on Sales SALES ADJUSTED EBITDA (1) +4.8%* 878 7,949 8,003 699 8.8% 11.0% 1H 2022 1H 2023 1H 2022 1H 2023 OPERATIVE NET WORKING CAPITAL (2) NET FINANCIAL DEBT 2,330 1,429 1,417 2,065 1,417 609 3.8% 8.4% 8.8% DEC-22 JUN-22 JUN-23 DEC-22 JUN-22 JUN-23 © Pry
Slide 23: Projects
PROJECTS Euro Millions, % on Sales SALES HIGHLIGHTS +23.5%* SUBMARINE / Fully saturated assets (also new planned) with the current backlog / Solid improvement driven by smooth execution and better mix / Successfully completed Viking Link installation and testing 1,177 922 UNDERGROUND HIGH VOLTAGE 1H
Slide 24: Energy & Infrastructure
ENERGY & INFRASTRUCTURE Euro Millions, % on Sales SALES HIGHLIGHTS +2.8%* TRADE & INSTALLERS / Softening of the market in the US as expected 4,194 4,080 POWER DISTRIBUTION / Sustained growth and margin uplift in PD & Overhead Lines 1H 2022 1H 2023 Adj. EBITDA / % of Sales(1) ADJ.EBITDA AND % SALES A
Slide 25: Industrial & Network Components
INDUSTRIAL & NETWORK COMPONENTS Euro Millions, % on Sales SALES HIGHLIGHTS +5.3%* SPECIALTIES, OEM & RENEWABLES / Positive performances across all applications, in particular in Mining, Crane and Railway / Solid trend confirmed in Renewables with a double-digit organic growth. 1,714 1,729 ELEVATOR /
Slide 26: Telecom
TELECOM Euro Millions, % on Sales SALES HIGHLIGHTS -5.2%* OPTICAL CABLE & FIBRE / Volume slowdown mainly driven by the US market 911 857 MMS / Decline in line with construction market 1H 2022 1H 2023 * Org. Growth. Adj. EBITDA / % of Sales(1) ADJ.EBITDA AND % SALES Adj.Ebitda Adj.Ebitda margin ±X.X%
Slide 27: Financial Highlights
FINANCIAL HIGHLIGHTS Euro Millions Sales Adj.EBITDA 1H 2023 1H 2022 1H 2023 1H 2022 organic Adj.EBITDA Adj.EBITDA €M €M €M €M growth Margin Margin PROJECTS 1,177 23.5% 922 129 11.0% 87 9.4% Energy & Infrastructure 4,080 2.8% 4,194 446 10.9% 344 8.2% Industrial & Network Components 1,729 5.3% 1,714 1
Slide 28: Profit and Loss Statement
PROFIT AND LOSS STATEMENT Euro Millions 1H 2023 1H 2022 SALES 8,003 7,949 YoY total growth 0.7% YoY organic growth 4.8% Adj.EBITDA 878 699 % on sales 11.0% 8.8% of which share of net income 15 16 Adjustments (50) (34) Adjustments and non monetary items on EBIT EBITDA 828 665 % on sales 10.3% 8.4% 1H
Slide 29: Cash Flow Statement
CASH FLOW STATEMENT Euro Millions 12 Months 30 Jun 2023 30 Jun 2022 (from 1/7/2022 to 30/6/2023) Adj.EBITDA 878 699 1,667 Adjustments (50) (34) (117) EBITDA 828 665 1,550 Net Change in provisions & others 18 (22) 54 Share of income from investments in op.activities (15) (16) (46) Cash flow from oper
Slide 30: Sales at Standard Metal Prices
SALES AT STANDARD METAL PRICES Sales current Sales standard Sales Adj. Ebitda Adj. Ebitda Sales Adj. Ebitda Adj. Ebitda €M €M margin €M €M margin PROJECTS 1,177 129 11.0% 1,142 129 11.3% 1H ENERGY 5,969 622 10.4% 5,168 622 12.0% 2023 TELECOM 857 127 14.8% 830 127 15.3% Total Group 8,003 878 11.0% 7,
Slide 31: Bridge Consolidation Sales
BRIDGE CONSOLIDATION SALES Euro Millions PROJECTS ENERGY & INFRASTRUCTURE 118 ( 210 ) 217 30 8 ( 22 ) Org.growth TOTAL CONSOLIDATED Org.growth 1,177 4,194 2.8% 4,080 922 23.5% 378 ( 303) ( 21) 1H 2022 Organic Metal Exchange 1H 2023 1H 2022 Organic Metal Exchange 1H 2023 Growth Effect Rate & Growth E
Slide 32: 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 (1
Slide 33: 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 34: Thank you
Thank you prysmiangroup.com 34