Slide 1: 9M 2012 Financial Results
9M 2012 Financial Results Milan, 8th November 2012 9M 2012 Financial Results 1
Slide 2: Agenda
AGENDA 9M 2012 Highlights & 2012 Outlook Financial Results Appendix 9M 2012 Financial Results 2
Slide 3: 9M 2012 Key Financials
9M 2012 Key Financials Euro Millions, % on Sales Sales Adjusted EBITDA (3) Adjusted EBIT (4) Reported(1) Full combined(2) Reported(1) Full combined(2) Reported(1) Full combined(2) 568 426 7,583 468 349 408 426 309 305 314 5,604 5,994 5,930 387 4,571 2010 2011 9M'11 9M'11 9M'12 2010 2011 9M'11 9M'11
Slide 4: Solid margin recovery in 2012
Solid margin recovery in 2012 Additional synergies and higher contribution from high value added businesses to improve margins next years Adj. EBITDA evolution by quarter Adj. EBITDA breakdown € million € million - % on Sales +9.8% € 426 mln a) € 468 mln 7.1% 7.9% 178 192 168 170 * 185 160 160 139 1
Slide 5: Long Cycle Businesses Vs. Short Cycle Businesses
Long Cycle Businesses Vs. Short Cycle Businesses Adj. EBITDA breakdown Long Cycle Businesses Short Cycle Businesses Short Cycle Businesses Adj. EBITDA 64% 36% (Combined Prysmian + Draka) • Profitability: stable at bottom level (excl. synergies contribution) Utilities Utilities • Over 50% profitabili
Slide 6: Utilities
Utilities Euro Millions, % on Sales – Full Combined Results Sales to Third Parties Highlights 2,318 DISTRIBUTION • Lower volume Vs. 2011 due to capex reduction by utilities 1,706 1,678 • Europe: volume decreasing in all markets except Nordics and Netherlands • North America: positive trend in sales
Slide 7: Utilities – Submarine as key driver of profitability increase
Utilities – Submarine as key driver of profitability increase Record order intake in Submarine confirming renewables and interconnections as priority in Europe (despite downturn) Utilities Sales breakdown Transmission Order Backlog Evolution 9M 2012 € million Power Distribution: Europe accounting Or
Slide 8: Utilities – Investing in submarine to increase ROCE
Utilities – Investing in submarine to increase ROCE Strengthening production and installation (GME acquisition*) capabilities Arco Felice (Italy) Drammen (Norway) Pikkala (Finland) Main projects in execution/order backlog: 1. Western Link 1 2 2. HelWin 1-2/ SylWin 1/ BorWin 2 7 5 3 3. Hudson 4 4. Me
Slide 9: Trade & Installers
Trade & Installers Euro Millions, % on Sales – Full Combined Results Sales to Third Parties Highlights 2,233 • Volume decrease in Europe in line with expectations. Positive demand in extra-European countries 1,730 1,653 • Europe: weak demand with lower volume in all major countries. Stable in German
Slide 10: Industrial
Industrial Euro Millions, % on Sales – Full Combined Results Sales to Third Parties Highlights 1,824 OGP • Continuous positive demand driving profitability increase. Focus on high 1,341 1,371 margin off-shore business to grow in North Europe, APAC and Latin America SURF • Strong contribution expecte
Slide 11: Telecom
Telecom Euro Millions, % on Sales – Full Combined Results Sales to Third Parties Highlights Optical / Fiber 1,431 • Positive demand in optical confirmed across all geographical areas except 1,080 1,129 US. Despite difficult economic environment, data traffic increase sustaining investments in optica
Slide 12: Continuous profitability increase despite worsening economic scenario
Continuous profitability increase despite worsening economic scenario Confirming FY 2012 guidance (upgraded in August 2012) LTM* Adj. EBITDA Evolution FY 2012 Adj.EBITDA Target (€ mln) € million 600 650 Q4 E 170 Q3 628 638 607 160 586 597 576 576 638 554 535 308 FY 2010 LTM Q1'11 LTM Q2'11 LTM Q3'11
Slide 13: Agenda
AGENDA 9M 2012 Highlights & 2012 Outlook Financial Results Appendix 9M 2012 Financial Results 13
Slide 14: Profit and Loss Statement
Profit and Loss Statement Euro Millions 9M 2011 9M 2011 9M 2012 Reported a) Combined b) Sales 5,930 5,604 5,994 YoY total growth (1.1%) c) YoY organic growth (0.5%) c) Adj.EBITDA 468 408 426 % on sales 7.9% 7.3% 7.1% Non recurring items (66) (260) EBITDA 402 148 % on sales 6.8% 2.6% Adj.EBIT 349 305
Slide 15: Extraordinary Effects
Extraordinary Effects Euro Millions 9M 2011 9M 2012 Reported a) Antitrust investigation (3) (199) Restructuring (51) (27) Draka transaction costs - (6) Draka integration costs (5) (9) Draka change of control effects - (2) Inventory step-up (PPA) - (14) Other (7) (3) EBITDA adjustments (66) (260) Spe
Slide 16: Financial Charges
Financial Charges Euro Millions 9M 2011 9M 2012 Reported a) Net interest expenses (81) (75) Bank fees Amortization (7) (8) Gain/(loss) on exchange rates (25) (26) (1) Gain/(loss) on derivatives 18 17 Non recurring effects (2) - Net financial charges (97) (92) Share in net income of associates 12 6 N
Slide 17: Statement of financial position (Balance Sheet)
Statement of financial position (Balance Sheet) Euro Millions 30 Sept ‘12 30 Sept ‘11 31 December ‘11 Net fixed assets 2,248 2,223 2,255 of which: intangible assets 615 611 618 of which: property, plants & equipment 1,533 1,523 1,544 Net working capital 1,033 814 552 of which: derivatives assets/(li
Slide 18: Cash Flow
Cash Flow Euro Millions 9M 2011 FY 2011 9M 2012 Combined a) Combined a) Adj.EBITDA 468 426 586 Non recurring items (66) (264) (303) EBITDA 402 162 283 Net Change in provisions & others 4 170 197 Release of inventory step-up - 14 14 Cash flow from operations (before WC changes) 406 346 494 Working Ca
Slide 19: Agenda
AGENDA 9M 2012 Highlights & 2012 Outlook Financial Results Appendix 9M 2012 Financial Results 19
Slide 20: Prysmian Group at a glance
Prysmian Group at a glance 9M 2012 Results Sales breakdown by geography Sales breakdown by business Adj. EBITDA by business APAC 14% Telecom Utilities Latin 19% Telecom 28% America 26% Utilities 9% Other 39% 2% € 5.9 bn € 5.9 bn € 468 mln EMEA 63% Industrial T&I Industrial N. America 23% 28% 22% T&I
Slide 21: Bridge Consolidated Sales
Bridge Consolidated Sales Euro Millions – Full Combined Total Consolidated -0.5% ( 31) ( 172 ) 143 (4 ) 5,994 5,934 5,930 9M 2011 Combined Org.Growth Metal Effect Exchange Rate 9M 2012 L-f-L Perimeter effect 9M 2012 Energy Cables & Systems Division -0.3% ( 16) ( 167) 105 ( 35 ) 4,914 4,836 4,801 9M
Slide 22: Energy Segment – Profit and Loss Statement
Energy Segment – Profit and Loss Statement Euro Millions 9M 2011 9M 2011 9M 2012 Reported a) Combined b) Sales to Third Parties 4,801 4,640 4,914 YoY total growth -2.3% c) YoY organic growth -0.3% c) Adj. EBITDA 348 320 330 % on sales 7.3% 6.8% 6.6% Adj. EBIT 268 247 252 % on sales 5.6% 5.3% 5.1% a)
Slide 23: Energy Segment – Sales and Profitability by business area
Energy Segment – Sales and Profitability by business area Euro Millions, % of Sales Growth – 9M combined 9M 2011 Total Organic 9M 2012 Comb. growth growth Utilities 1,678 1,706 -1.7% 1.0% Sales to Third Parties Trade & Installers 1,653 1,730 -4.4% -1.8% Industrial 1,371 1,341 2.2% 2.7% Others 99 137
Slide 24: Telecom Segment – Profit and Loss Statement
Telecom Segment – Profit and Loss Statement Euro Millions 9M 2011 9M 2011 9M 2012 Reported a) Combined b) Sales to Third Parties 1,129 964 1,080 YoY total growth 4.6% c) YoY organic growth -1.4% c) Adj. EBITDA 120 88 96 % on sales 10.6% 8.9% 8.7% Adj. EBIT 81 58 62 % on sales 7.3% 5.9% 5.6% a) Inclu
Slide 25: Industrial – Sales breakdown
Industrial Sales breakdown Sales breakdown by geographical area Sales breakdown by business segment 9M 2012 9M 2012 Other Asia Pacific Elevator 4% 18% 7% Renewables Specialties & 13% OEM Latin America 32% 8% € 1.4 bn € 1.4 bn EMEA OGP & SURF 49% 22% North America 25% Automotive 22% Sound geographica
Slide 26: Telecom – Sales breakdown
Telecom Sales breakdown Sales breakdown by geographical area Sales breakdown by business segment 9M 2012 9M 2012 Asia Pacific JVs and other 25% 22% Optical, Connectivity and Fiber EMEA 46% 44% € 1.1 bn € 1.1 bn Multimedia & Latin America Specials 15% 18% North America Copper 16% 14% Increased exposu
Slide 27: Reference Scenario
Reference Scenario Commodities & Forex Brent Copper Aluminium Brent $/ton Copper $/ton Aluminium $/ton Brent €/ton Copper €/ton Aluminium €/ton 150 12,000 3,500 3,000 125 10,000 2,500 100 8,000 2,000 75 6,000 1,500 50 4,000 1,000 25 2,000 500 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12 Jan-08 Jan-09 Jan-10 J
Slide 28: Disclaimer
Disclaimer • The managers responsible for preparing the company's financial reports, J.Calvo 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 t