Prysmian S.p.a. · MIL:PRY
Prysmian — 9M 2015 Earnings Presentation
30 slides from Prysmian's earnings presentation, Nov 5, 2015
Slide 1: 9M 2015 Financial Results
9M 2015 Financial Results Milan – November 5th, 2015
Slide 2: Agenda
Agenda 9M 2015 Highlights o Group overview o Results by business o Outlook Financial results Appendix 9M 2015 Financial Results 2
Slide 3: Highlights
Highlights 9M organic growth ex. WL impact at 6.9%. Solid Q3 (+6.6% organic growth ex. WL) Continued strong growth in Energy Projects (+19.6% organically ex. WL) Solid trend confirmed in Telecom (+10.3% org. growth) and E&I (+4.0%), despite softening in Q3 Stabilization of Industrial 9M 20
Slide 4: 9M 2015 Key Financials
9M 2015 Key Financials Euro Millions, % on Sales Sales Adjusted EBITDA (1) Excl. WL Excl. WL 6,901 603 6,840 +6.7%* +6.9%* 509 488 5,569 5,663 473 5,014 5,095 438 355 7.4% 7.1% 8.5% 8.7% 8.6% 8.6% 2014 9M'14 9M'15 2014 9M'14 9M'15 2014 9M'14 9M'15 2014 9M'14 9M'15 * Org. Growth Operative Net Working
Slide 5: Continued organic growth and profitability improvement
Continued organic growth and profitability improvement Profitability increase driven by Energy Projects, Telecom & E&I Organic Growth a) (% change) Adj.EBITDA (€ M) 2014 2015 488 H1’15 Q3’15 15 Western Link effect 438 23.9% 83 180 17.4% 173 163 160 14 473 9 135 37 13.1% 115 15 37 194 355 151 159 120
Slide 6: Agenda
Agenda 9M 2015 Highlights o Group overview o Results by business o Outlook Financial results Appendix 9M 2015 Financial Results 6
Slide 7: Energy Projects
Energy Projects Euro Millions, % on Sales Sales Highlights Excl. WL Submarine 1,416 +19.6%* 1,355 +19.9%* 1,215 • Market remains solid in Europe, mainly driven by Interconnections 1,121 projects. Off shore wind farms tenders in France and UK 996 915 • Order book remains close to peak levels, support
Slide 8: Focus on two milestones in Energy Projects strategy
Focus on two milestones in Energy Projects strategy Award of first submarine project in China and acquisition of GCDT in the US Hainan-China mainland submarine interconnection Gulf Coast Downhole Technologies • The first submarine cable project in People’s Republic of • Acquisition of 100% of the pr
Slide 9: Energy & Infrastructure
Energy & Infrastructure Euro Millions, % on Sales Sales Highlights 2,677 Trade & Installers +4.0%* 2,175 • Flat organic sales in 9M, softening in Q3 2,015 • Positive trend in some European countries (Spain, UK and Danubian area) and robust orders for wind farms in N.A. • Further slowdown in Brazil a
Slide 10: Industrial & Network Components
Industrial & Network Components Euro Millions, % on Sales Sales Highlights 1,708 Specialties & OEMs -0.9%* • Progressive organic improvement along the year 1,340 1,267 • Positive performance in N. America and Europe, mainly driven by Nuclear (France, Germany), Crane (Germany, US) and Railway (German
Slide 11: Telecom
Telecom Euro Millions, % on Sales Sales Highlights +10.3%* Optical, Connectivity & Fiber 994 • Positive organic growth in all geographies with the anticipated 847 softening in H2, prices stable vs. previous year 745 • Market fundamentals remain sound in the US, Europe and Australia (despite expected
Slide 12: Agenda
Agenda 9M 2015 Highlights o Group overview o Results by business o Outlook Financial results Appendix 9M 2015 Financial Results 12
Slide 13: FY 2015 Outlook
FY 2015 Outlook FY target confirmed above mid-point of the range 2015 Adj.EBITDA Target (€ million) 616 Mid-point € 641m 666 Western Link effect on (€ 26m) FY’15 Adj.EBITDA 590 Mid-point € 615m 640 FY 2015 expected above mid-point of the range based on: • Confirmed positive trend in Energy Projects
Slide 14: Agenda
Agenda 9M 2015 Highlights o Group overview o Results by business o Outlook Financial results Appendix 9M 2015 Financial Results 14
Slide 15: Profit and Loss Statement
Profit and Loss Statement Euro Millions WL effect 9M 2015 9M 2014 9M’15 vs. 9M’14 Sales 5,569 5,014 (13) YoY total growth 11.0% (15) in 9M’15 YoY organic growth 6.7% (83) in 9M’14 YoY organic growth excl. WL 6.9% Adj.EBITDA 473 355 68 % on sales 8.5% 7.1% Adj.EBITDA excl. WL 488 438 - % on sales 8.6
Slide 16: Non Recurring and Special Items on EBIT
Non Recurring and Special Items on EBIT Euro Millions 9M 2015 9M 2014 Antitrust 21 28 Restructuring (36) (16) Price adjustments - 22 Other (13) (6) EBITDA adjustments (28) 28 Special items (52) 4 Gain/(loss) on metal derivatives (29) 12 Assets impairment (7) (5) Other (16) (3) EBIT adjustments (80)
Slide 17: Financial Charges
Financial Charges Euro Millions 9M 2015 9M 2014 Net interest expenses (59) (67) of which non-cash conv.bond interest exp. (6) (6) Bank fees amortization (3) (5) Gain/(loss) on exchange rates (30) (18) Gain/(loss) on derivatives 1) 19 (9) Non recurring effects (4) (9) Net financial charges (77) (108)
Slide 18: Statement of financial position (Balance Sheet)
Statement of financial position (Balance Sheet) Euro Millions 30 Sep 2015 30 Sep 2014 31 Dec 2014 Net fixed assets 2,224 2,255 2,219 of which: intangible assets 545 586 561 of which: property, plants & equipment 1,418 1,430 1,414 Net working capital 571 900 407 of which: derivatives assets/(liabilit
Slide 19: Strong working capital management
Strong working capital management Euro Millions Evolution of Net Financial Position and Operative NWC 1,292 1,209 1,133 Net 1,040 Financial 979 955 Position 909 805 802 741 762 713 594 607 Operative 423 392 NWC ONWC on 5.8% 5.8% 11.7% 10.2% 11.2% 7.5% 13.2% 8.3% Sales %* Opening Opening 2014 2015 20
Slide 20: Cash Flow
Cash Flow Euro Millions 9M 2015 9M 2014 FY 2014 Adj.EBITDA 473 355 509 Non recurring items (28) 28 (13) EBITDA 445 383 496 Net Change in provisions & others (41) (65) (53) Share of income from investments in op.activities (27) (26) (43) Cash Flow from operations (bef. WC changes) 377 292 400 Working
Slide 21: Agenda
Agenda 9M 2015 Highlights o Group overview o Results by business o Outlook Financial results Appendix 9M 2015 Financial Results 21
Slide 22: Bridge Consolidated Sales
Bridge Consolidated Sales Euro Millions Energy Projects Energy Products (4) 28 80 ( 11 ) 178 182 Org.growth Org.growth +2.4% +19.9% 1,121 3,601 3,354 915 9M 2014 Org.Growth Metal Effect Exc. Rate 9M 2015 9M 2014 Org.Growth Metal Effect Exc. Rate 9M 2015 Telecom Total Consolidated (13 ) 229 2 23 339
Slide 23: Profit and Loss Statement
Profit and Loss Statement Euro Millions 9M 2015 excl. 9M 2015 9M 2014 excl. 9M 2014 WL submarine WL submarine 9M 2015 WL submarine WL submarine 9M 2014 project effect project effect project effect project effect Sales 5,663 (94) 5,569 5,095 (81) 5,014 YoY total growth 11.1% 11.0% YoY organic growth
Slide 24: Energy Projects Segment – Profit and Loss Statement
Energy Projects Segment – Profit and Loss Statement Euro Millions 9M 2015 excl. 9M 2015 9M 2014 excl. 9M 2014 WL submarine WL submarine 9M 2015 WL submarine WL submarine 9M 2014 project effect project effect project effect project effect Sales to Third Parties 1,215 (94) 1,121 996 (81) 915 YoY total
Slide 25: Energy Products Segment – Profit and Loss Statement
Energy Products Segment – Profit and Loss Statement Euro Millions 9M 2015 9M 2014 E&I 2,175 2,015 YoY total growth 7.9% Sales to Third Parties YoY organic growth 4.0% Industrial & Netw. Comp. 1,340 1,267 YoY total growth 5.8% YoY organic growth (0.9%) Other 86 72 YoY total growth 19.7% YoY organic g
Slide 26: Telecom Segment – Profit and Loss Statement
Telecom Segment – Profit and Loss Statement Euro Millions 9M 2015 9M 2014 Sales to Third Parties 847 745 YoY total growth 13.7% YoY organic growth 10.3% Adj. EBITDA 106 75 % on sales 12.6% 10.0% Adj. EBIT 73 44 % on sales 8.6% 5.9% 9M 2015 Financial Results 26
Slide 27: Western Link effect: new financial impact
Western Link effect: new financial impact Euro 35 Millions project’s result improvement Previous Financial Impact on Adj. Ebitda (€m) 17 94 56 Proj. loss 24 150 167 anticip. ’14 margin 94 cancelation 70 2014 Actual 2015 Prev 2016 Prev Prev Total impact Impact Impact WL effect Highlights and Actions
Slide 28: Cost Efficiency plan
Cost Efficiency plan Cumulated Cost Savings (€ million) Organization & Footprint Procurement Organization & Footprint +85 225 175 45 140 45 45 180 130 95 Optmization of European organization & 2014 YTD 2016 Target 2019 Run-rate footprint Cumulated Costs (€ million) Creation of Centers of Operati
Slide 29: 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-08 J-09 J-10 J-
Slide 30: 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