Prysmian S.p.a. · MIL:PRY
Prysmian — Investor Day (October 2023)
77 slides from Prysmian's investor day presentation, October 2023
Slide 1: Capital Markets Day
mian Group Prys VY) at >) AN — ate =O CAPITAL
Slide 2: Prysmian Group Capital Markets Day 2023
Prysmian | geva. Grou MARKETS DAY 2023 ey necting the Ftc TO LOMOFFE J
Slide 3: Welcome
Welcome Maria Cristina Bifulco
Slide 4: Disclaimer
DISCLAIMER Prysmian This Presentation may contain “forward-looking statements”, which includes all statements that do not relate solely to historical or current facts and which are therefore inherently uncertain. All forward-looking statements rely on a number of assumptions, expectations, projectio
Slide 5: Connecting to...
Connecting to Our New Our Impactful Value Our journey frontiers solutions sustainability creation tomorrow C C C) C) Cy) C Massimo Maria Cristina Pier Francesco Battaini Bifulco Facchini | Massimo Battaini
Slide 6: Connecting to our journey
Connecting to our journey Valerio Battista
Slide 7: Key milestones on our journey
Key milestones 7 on our journey ane Performance _——\ step change 2022 y ‘4 General Cable x integration a —— ; Draka ( 4 » integration 2018 om, Becoming J ____f Prysmian \\ Po fully public —_ === established = CIR. 2011 2010 2005 2007
Slide 8: A company transformed over the last decade
A company transformed over the last decade Group revenues (€m) nS Saxe 2 16,067 e & Sexe of a ie * 4,571 | CY ° 2010 2022 Employees 12,000 | PC O Prysmian plants O R&D centers
Slide 9: Significant value created since inception
Significant value created since inception €10.5bn Market cap 30 Sep 2023 +253% Total Prysmian €2.7bn shareholder Group Market cap return EURO STOXX May 2007 600 FTSE MIB 2007 2009 2011 2013 2015 2017 2019 2021 30 Sep 2023 Note: Daily closing prices indexed 9
Slide 10: Cables connect a more sustainable world
Cables connect amore sustainable world
Slide 11: Connecting to new frontiers
Connecting to new frontiers Massimo Battaini
Slide 12: We are moving to a more sustainable world
We are moving to amore sustainable world through the Energy Transition and Digital Transformation
Slide 13: Leading cable player grown through market consolidation
ak Leading cable player grown through market consolidatio
Slide 14: We must reduce emissions to mitigate impact on the planet
We must reduce emissions to mitigate impact on the planet Global net CO, emissions and pathways over the next decades Current pledges 1970 1980 1990 2000 2010 2020 2030 2040 2050 2060 2070 CO, emissions (giga tons) 14 of global greenhouse gas emissions today are produced by the energy sector
Slide 15: We must embrace the digital revolution
We must embrace the digital revolution Fourth wave © AI/GENAT Third wave © CLEAN TECH © wt © RoporTics Second wave © MOBILE INTERNET First wave © INTERNET Impact 2000 2010 2020 2025 —=—— Growth of connectivity infrastructure and population penetration 5
Slide 16: Structural trends boosting the cable market
Structural trends boosting the cable market te ols 6 Digital transformation Electrical applications growth Renewable energy generation Power grid enhancement 4x 1.5x 2X 2.5X Solar and wind Electricity Annual grid Premises and capacity consumption investments towers fiberized Note: comparing 2030 vs
Slide 17: Renewable energy generation
RENEWABLE ENERGY GENERATION Renewable generation requires high-performing, sustainable and innovative cable solutions 78 Share of RES— 3% CAGR 2020-50 Coal 80% Gas 0 Nuclear 0 60% Hydro cost reduction in Solar and Wind energy 40% Wind generation by 2030 vs 2020 20% Solar 2020 2030 2050
Slide 18: Electrical applications growth
@ ELECTRICAL APPLICATIONS GROWTH Electricity rise increases cable demand Global energy mix by carrier’ 20% r Electricity r Oil, Bioenergy, Heat, Coal, Gas 24% 40% 27% NZE scenario 52% NZE scenario 2020 Total energy 9 9 consumption . 1. Billion tons of oil equivalents 18 2030 10.7 2050 10.3)
Slide 19: Electrical applications growth: broad cable offering
ELECTRICAL APPLICATIONS GROWTH Wide ranging electricity applications need broad cable offering Heat pump Share of Share of electric Mobile tower Data centers penetration : electric cars steel production consumption » consumption (kW/antenna) (GW) 86% ne 1,450 55% 53% 20% 7% 89 1% 2020 2030 2050 2020
Slide 20: Power grid enhancement
a) POWER GRID ENHANCEMENT Enhanced power grids need resilient cable solutions Overhead Underground lines cables The energy transition requires a grid which: Network components Ensures transmission of decentralized and intermitted electricity Enables bidirectional flow of energy 20 Global power grid
Slide 21: Digital transformation
& DIGITAL TRANSFORMATION Massive data growth boosting demand of premium data cable solutions Increased data usage by people 10x GB consumption per mobile user , 4x ~<a L GB consumption 4 per household 1. $330bn cumulative value 2022-2030 Increased number of new digital applications 2X ToT devices FT
Slide 22: Convergence of Energy and Digital
22 Convergence of Energy and Digital Digitalization Digitalization Fut Energy to increase tostep-up mobility consumption submarine cables power grid enabled bypower boostedby growth monitoring monitoring and data indata centers
Slide 23: Strategic and visionary decisions underpin leading position
Strategic and visionary decisions underpin today's leading position Market echnological Unique leadership pioneering knowledge T M&A consolidation G) Strategic internal choices > 23
Slide 24: Connecting to our solutions
Connecting to our solutions
Slide 25: Connect, to lead: Four pillars of our strategy
Connect, to lead: Four pillars at the heart of our strategy Self-funded capacity expansion Investments to support organic growth through consistent cash flow generation Business segmentation Segments redesigned to seize market trends and opportunities Balanced and innovative portfolio Balanced portf
Slide 26: Self-funded capacity expansion
Ww SELF-FUNDED CAPACITY EXPANSION We selectively ‘double down’ on capacity expansion Yearly average capex (€m) Submarine cables plant expansion in Europe and North America \ 540 Geographically selective Medium-Low Voltage plant expansion 312 Fibers and optical plant expansion Past 5 years Next 5 yea
Slide 27: Balanced and innovative portfolio
@ BALANCED AND INNOVATIVE PORTFOLIO Capturing market trends Renewable energy Power grid generation enhancement , Power distribution, Submarine systems Overhead lines High Voltage DC systems Grid monitoring WO solutions Communication cables Optical cables and connectivity Specialties Digital | Electr
Slide 28: Deploying cutting-edge technologies
@ BALANCED AND INNOVATIVE PORTFOLIO Deploying cutting-edge technologies 525 kV P-Laser HVDC E3X technology interconnectors for OHL power enhancement Gridmonitoring WO solutions Sirocco PRYSOLAR, the first 180ym innovative PV cable fibre cable PRY-CAM, technology for advanced monitoring 28
Slide 29: People empowerment
PEOPLE EMPOWERMENT Best people and practices (— : Inclusive M&A \ NY C Developing our people ) Professionals in key areas 1/3... Prysmian Group ....213 © General Cable <> Draka New talent acquisition Promotions to new roles 29
Slide 30: Business segmentation
@& BUSINESS SEGMENTATION New segments to match markets trends and drive leadership position New segments Current segments Prysmian Group 30 Market trends Renewable energy generation Power grid enhancement Electrical applications growth Digital transformation
Slide 31: A new streamlined segmentation
Anew streamlined segmentation Current segments Business units — Submarine Power, Land HVDC Industrial & Construction (former Trade & Installer) Specialties (formerly in Industrial & NWC) Fibers and Optical Cables, Connectivity, Multimedia & Inside Plant cables (MMS) Ka) i Telecom New segments Renewa
Slide 32: Synergies across segments unlock value
Synergies across segments unlock value Renewable Transmission Solution Provider One-stop Shop Electrification Operational Efficiencies Digital Solutions 32
Slide 33: Unique and synergic product portfolio
Unique and synergic product portfolio makes our growth sustainable Sales by Geographies and Segments (2022) EMEA North America Commercial Renewable synergies Transmission Power Grid Digital Solutions ' ' ' ' ' ' ' ' ' ' ' ' ' Electrification | ' ' ' ' t ' ' ' ' ' t ' Commercial synergies w wa
Slide 34: Renewable Transmission
Renewable Transmission Lead global green connections
Slide 35: We lead renewable transmission through innovative cabling
RENEWABLE TRANSMISSION We lead renewable transmission through innovative cabling solutions BUs Submarine Power Land HVDC Wind Offshore and Submarine Interconnectors Land Interconnectors Markets served ~ & | Smart Grid device and monitoring | Market value (€bn) e Frame Agreements © wind offshore r }
Slide 36: Connect, to lead in Renewable Transmission
RENEWABLE TRANSMISSION Connect, to lead in Renewable Transmission Continue Leading through innovation Execute €20bn of order portfolio Leverage operational excellence and consistent track record
Slide 37: Solid order portfolio providing long term visibility
RENEWABLE TRANSMISSION Solid order portfolio providing long term visibility €bn 20.0 Split by Customer type Split by Geography e@ Orders with solid commitment 2.4 Developers 10 RoW @ Backlog H 1.4NAM-, 1 ' \ Dec 2019 Dec 2022 Sep 2023 17.6 TSOs 17.6 EMEA (Saleseon 1.1 16 = -20_—*?) Note: Sales value
Slide 38: Power Grid
Power Grid Empower grid enhancement
Slide 39: We support the power grid upgrade
POWER GRID We support the power grid upgrade with our innovative technologies BUs HVAC Power Distribution and OHL High Voltage cables Low and Medium Voltage cables — —F | Smart Grid device and monitoring Markets served $870bn Market driver Annual grid capex $270bn 2022 2030 2050 Note: OHL= Over Head
Slide 40: Connect, to lead in Power Grid
POWER GRID Connect, to lead in Power Grid Innovate towards resilience and sustainability Leveragelong lasting customer relationships Boost value-added products and services
Slide 41: Electrification
lectrification Electrify all industries ith a diversified offeri
Slide 42: Broad cable offering to meet rising electricity demands
ELECTRIFICATION Broad cable offering to meet rising electricity demands BUs Markets served Market drivers Note: Comparing 2030 vs 2020 Industrial & Construction (former T&I) Industrial, Construction and Data Centers Production reshoring $4.6tn Heat pumps for heating 2.5x Share of electric steel prod
Slide 43: Electrification split in EMEA and North America
ELECTRIFICATION Electrification split in EMEA and North America Electrification sales breakdown by market (2022) EMEA North America Residential Residential 35% 5% Industrial & Construction Non-Residential driven by key trends Data centers Industrial, reshoring Commercial, Institutional & infrastruct
Slide 44: Connect, to lead in Electrification
ELECTRIFICATION Connect, to lead in Electrification Leverage our global scale and breadth of portfolio ‘Double down’ on future-proof sustainable solutions Continue co-developing solutions tailored to customers needs Ee Capitalize on scale distributor relationships GG . Steet : ‘ee to capture large p
Slide 45: Digital Solutions
Digital Solutions Bridge the digital divide with premium data solutions
Slide 46: We enable digital transformation with premium data cables
DIGITAL SOLUTIONS We enable digital transformation with premium data cables BUs MMS Fibers & Optical Cables and Connectivity Fixed networks Mobile networks Data centers > Markets served | Annual global demand 5G coverage Installed capacity (mFkm) 7 (%) (GW) Market drivers 200 s 115 85% 5 1 2020 2030
Slide 47: Connect, to lead in Digital Solutions
DIGITAL SOLUTIONS Connect, to lead in Digital Solutions Continue Leading through premium fiber solutions Specialize in solutions for Data Centers, Al and IoT Strengthen relationships with new entrants (Data Centers, IoT)
Slide 48: ~€2bn EBITDA
~€2bn EBITDA
Slide 49: Connecting to impactful sustainability
Connecting to impactful sustainability o Maria Cristina Bifulco
Slide 50: Our sustainability journey rooted in the past
Our sustainability journey rooted in the past Building tomorrow's ustainabilit *German Corridors 525 kV ‘* eHVDC P-Laser Eco cable @) Key innovations with ‘J sustainable impact First integrated Optical cable ‘# FlexRibbon 6912 fibers 2023 SBTi approval TCFD report Board sustainability committee @) *
Slide 51: A truly public company, based on inclusion
A truly public company, based on inclusion anne 3% Employees Incl. Management eee 8.3% retail woe 1 4% Treasury shares Prysmian shareholding structure 48% ESG investors Institutional investors 51
Slide 52: Sustain, to lead: Governance
Sustain, to lead Governance
Slide 53: Decarbonizing the value chain, and beyond
© ENVIRONMENT Decarbonizing the value chain, and beyond SCIENCE well below 2°C TRG Ts pathway missions Carbon pe i) emissions reduction g our scope (%) evalue chain <— Scope 1&2 2019 2022 2030 2035 2050 Baseline Near term Scope 1&2 Scope 3 year target Decarbonization Net Zero 53
Slide 54: Our design for sustainability pervades everything we do
© INNOVATION Our design for sustainability pervades every aspect of what we do Design for Design for performance sustainability 54
Slide 55: We innovate to support our customers
© INNOVATION We innovate to support our customers and to go beyond the value chain Selection of innovative solutions Sirocco Extreme E3X Robot Circular economy Megawatt charging solutions Product Supply chain design digitalizatio Smart accessories 55
Slide 56: Sustainability also means equity and inclusion
oo) SOCIAL Sustainability also means equity and inclusion SUSTAINABILITY PRYSMIAN GROUP 45 50% Sa shares by 2027 Training hours per employee +500 Womenin STEM by 2027 56
Slide 57: Promoting talent within under-privileged communities
© SOCIAL Promoting talent within under-privileged communities 625 children in the Netherlands 315 womenand men and young g young girls in LATAM 100 womenand 800 children in Oman Note: People involved by 2027 57
Slide 58: Our sustainability targets at a glance
Our sustainability targets at a glance 58 SDGS KPI Actual 2022 Target 2025 Target 2027 Enable access to green electricity to households 21m 110m 210m Enable fast digital access to households 3m 15m 25m vo of reduction of Scope 1&2 GHG Emissions - 28% - 38% - 45% © ° tb of reduction of Scope 3 GHG Em
Slide 59: Sustainability Development Goals
Sustainability Development Goals ecovoals WAN @ ccC| B | BB | BBB 6 AA | AAA o SUSTAINABLE DEVELOPMENT GesALS as Bloomberg 20 40 6 80. 200 | 150 100 50 1 20 40 60 80 100 D-|] D/C-| C|B]BIJAIA Weare included in MIBESG STO XD 59
Slide 60: Connecting to value creation
Connecting to value creation Pier Francesco Facchini
Slide 61: Our journey to becoming a truly global player
Our journey to becoming a truly global player Sales by Geographies (€m) North America 5,394 2010 2022 LATAM 522 1,361 ss 2010 2022 61 407 16,067 4,571 ; ss 2010 2022 EMEA 8,097 | 3163 | 2010 2022 - APAC jo) : 479 1,215 ——< Sl 2010 2022
Slide 62: A new baseline, following the new segmentation (1/2)
Anew baseline, following the new segmentation (1/2) Sales by Segments (baseline 2022, €m) Current segments Business units New segments Renewable Submarine Power, Land HVDC! inanenitesien 1,631 Industrial & Construction (former Trade & Installer) rae 8.966 e™ Specialties (formerly in Industrial & NWC
Slide 63: A new baseline, following the new segmentation (2/2)
Anew baseline, following the new segmentation (2/2) Adj EBITDA and % on Sales by Segment (baseline 2022, €m) Current segments New segments 220 135% Renewable Transmission <R 1,488 Adj EBITDA 2022 9.3% % on Sales 797 23.9% Electrification {o} 271 14.5% Digital Solutions se ()) ® Telecom 271114.5%
Slide 64: Leadership consolidation through solid organic growth
Leadership consolidation through solid organic growth Adj EBITDA (€m) Sales organic growth 2022-27 5-7% 2,000:100 2022-27 1,775475 ui ol 8 Digital Solutions Low 1-digit 2021 2022 2023 2025E 2027E Guidance 64
Slide 65: Strong outlook, driven by Renewable Transmission and Power Grid
Strong outlook, driven by Renewable Transmission and Power Grid 2022 2027 Adj EBITDA (€m) 1,488 2,000:100 Renewable ~ Executing backlog, enabled by tech leadership and additional Transmission 4 220 600 Capacity rat ra Assuming N. America margin normalization from 2023 Electrification [O] 797 ~700 Gr
Slide 66: Investment plan to capture growth drivers
Investment plan to capture growth drivers Cumulative Capex (€m) 230 a Digital Solutions ’ 2,700 290 3 Electrification - 41,770 Renewable Transmission 410 3%, --- Power Grid 2018 - 22 2023 - 27E (veary avg. 312 ~540 ) 66
Slide 67: Accelerating cash generation from 2023
Accelerating cash generation from 2023 900-1,000 Free Cash Flow (€m) 650-750 559 550-650 2022 2023 2025E 2027E Guidance C Adj EBITDA (€m) 1,488 ~1,625 ~1,775 ~2,000 ) (caves erm (452) ~(560) = ~—~(560) ~(430) (_betawe (em (105) ~80 ~30 Flat)
Slide 68: Our capital allocation priorities
Our capital allocation priorities 55-60% M&A and share buyback Acquisitions to strengthen product portfolio and fully capture opportunities in high-growth businesses and geographical reach ~€3,200m Cum. Free Cash Flow! 2022-2027 EPS CAGR greater than 10%2 1. 2022-2027 cumulated Free Cash Flow, exclu
Slide 69: 2023-27 value creation
2023-27 value creation 2022 2023 2025E : 2027E Guidance ‘ 1,625250 1,775475 —2,000+10) Adj EBITDA (€m) Free Cash Flow (€m) 550-650 650-750 900-1,000) 21-23% 22-25% 25-28% ) 69
Slide 70: Connecting to our tomorrow
Connecting to our tomorrow Massimo Battaini
Slide 71: Prysmian Group Capital Markets Day 2023
Prysmian | geva. Grou MARKETS DAY 2023 ey necting the Ftc TO LOMOFFE J
Slide 72: Appendix
APPENDIX
Slide 73: Key assumptions
Key assumptions GDP growth Europe & US: ongoing slowdown through 2023-24, recovery starting from 2024 Exchange rate Assumed stable EUR/USD exchange rate at 1.08 Interest rates Europe & US: progressively declining from 2024 onwards Inflation Europe & US: after peak in 2022, progressive decline starti
Slide 74: Notes
Notes Slide 9- Daily closing prices indexed Slide 20 - vatues for 2030 and 2050 are averages over the precedent decade Slide 21-$330bn investment in data centers refers to 2020-2030 cumulated value Slide 35-chinaand mega projects excluded; offshore wind and interconnectors distribution based on orde
Slide 75: Sources
Sources Slide 15 - Edelson Institute, MIT Economics Slide 16- IEA, BNEF, APS, NZE scenarios, CRU Slide 17-164, BNEF, US Energy Information Admin, IRENA Slide 18 - 1c, aps, NZE scenarios Slide 19- IEA Slide 20-BNEF (Net Zero Scenario) Slide 21-10c, Ericsson, Aritzon— Global Data Center Market, CRU Sl
Slide 76: Glossary
Glossary SALES ORGANIC GROWTH ADJ. EBITDA FREE CASH FLOW CF) EBITDA CONVERSION IN FCF DELTA WORKING CAPITAL RETURN ON CAPITAL EMPLOYED (ROCE) CAPEX BACKLOG (a) ORDERS WITHOUT SOLID COMMITMENT (b) ORDERS IN HAND (a) + (b) 76 Variation of Net Sales compared to same period of previous year, calculated
Slide 77: Prysmian Group Capital Markets Day 2023
Prysmian | geva. Grou MARKETS DAY 2023 ey necting the Ftc TO LOMOFFE J