Prysmian S.p.a. · MIL:PRY
Prysmian — H1 2012 Earnings Presentation
31 slides from Prysmian's earnings presentation, Aug 7, 2012
Slide 1: H1 2012 Financial Results
H1 2012 Financial Results Milan, 7th August 2012 Presentation title | Prysmian Group | Date 1
Slide 2: Agenda
AGENDA H1 2012 Highlights & 2012 Outlook Financial Results Appendix H1 2012 Financial Results 2
Slide 3: H1 2012 Key Financials
H1 2012 Key Financials Euro Millions, % on Sales Sales Adjusted EBITDA (4) Adjusted EBIT (5) Reported(1) Full combined(2) Reported(1) Full combined(2) Reported(1) Full combined(2) 568 426 7,583 3 387 309 0.0%** 4,571 287 308 229 269 204 212 3,574 3 3,965 3,916 3 2010 2011 H1'11 H1'11 H1'12 2010 2011
Slide 4: Sales evolution by geographical area
Sales evolution by geographical area Improving geographical diversification with a limited exposure to weaker southern European countries € million Italy & Spain accounting for approx. 8% of Group Adj.EBITDA (H1’12) 3,965 4,008 3,916 3,701 16% EMEA Sales breakdown 14% 14% 3,289 H1 2012 – Total = 63%
Slide 5: Utilities
Utilities Euro Millions, % of Sales – Full Combined Results Sales to Third Parties Highlights 2,318 DISTRIBUTION • Seasonality increase in Q2’12 vs Q1’12 but still lower volumes vs H1’11. Volume stabilizing at H1’12 level with no recovery expected in H2 1,125 1,073 • Continuous weak demand in centra
Slide 6: Utilities – Transmission
Utilities – Transmission Changing Energy generation mix implies a re-engineering of transmission grids Main primary drivers for grid development in Europe toward 2020 Evolution of the generation mix Scenario EU2020 2012 a) 320 458 963 GW 53 126 2020 a) 456 536 1,214 GW 132 82 Renewable Energy Source
Slide 7: Utilities – Transmission
Utilities – Transmission First round of investments to increase wind off-shore and interconnections to main consumption centers Main subsea and underground projects of pan-European significance List of main projects Main power flow trends 1. Italy – Montenegro Main subsea & underground projects in d
Slide 8: Trade & Installers
Trade & Installers Euro Millions, % of Sales – Full Combined Results Sales to Third Parties Highlights 2,233 • Continuous weak demand in Europe partially offset by extra-European countries -0.4%* • Europe: further deterioration in Central and South Europe (e.g. Italy and Spain) not expected to recov
Slide 9: Industrial
Industrial Euro Millions, % of Sales – Full Combined Results Sales to Third Parties Highlights 1,824 OGP • Sales and profitability increase in H1. Growing order-book in Offshore driven by North Sea, Middle East and Australia to sustain positive sales trend in H2 920 SURF 889 • H1 results in line wit
Slide 10: Telecom
Telecom Euro Millions, % of Sales – Full Combined Results Sales to Third Parties Highlights 1,431 Optical / Fiber • Continuous positive trend in global demand driven by extra-European markets • Europe: growing volume only in UK and Eastern Europe, stable for 701 746 most of the other countries. No m
Slide 11: Telecom
Telecom Becoming one of major long term drivers thanks to Draka acquisition Increasing weight on total profitability Steady growth in sales and profitability Prysmian Group Adj.EBITDA evolution Telecom Adj.EBITDA (€ mln - L axis) Telecom Adj.EBITDA Energy Adj.EBITDA Adj.EBITDA margin (R axis) 308 90
Slide 12: 2012 Outlook
2012 Outlook FY 2012 Adj.EBITDA Target (€ mln) 600 650 Likely to reach upper range of the Guidance based on: • Transmission projects phasing • Higher integration synergies in H2 • Oil off-shore backlog mainly loaded in H2 • Continuous positive trend in Telecom • Stabilization of cyclical businesses
Slide 13: Agenda
AGENDA H1 2012 Highlights & 2012 Outlook Financial Results Appendix H1 2012 Financial Results 13
Slide 14: Profit and Loss Statement
Profit and Loss Statement Euro Millions H1 2011 H1 2011 H1 2012 Reported a) Combined b) Sales 3,916 3,574 3,965 YoY total growth (1.3%) c) YoY organic growth 0.0% c) Adj.EBITDA 308 269 287 % on sales 7.9% 7.5% 7.2% Non recurring items (42) (243) EBITDA 266 26 % on sales 6.8% 0.7% Adj.EBIT 229 204 21
Slide 15: Extraordinary Effects
Extraordinary Effects Euro Millions H1 2011 H1 2012 Reported a) Antitrust investigation (3) (200) Restructuring (27) (12) Draka transaction costs - (6) Draka integration costs (3) (6) Draka change of control effects - (2) Inventory step-up (PPA) - (14) Other (9) (3) EBITDA adjustments (42) (243) Spe
Slide 16: Financial Charges
Financial Charges Euro Millions H1 2011 H1 2012 Reported a) Net interest expenses (52) (47) Bank fees Amortization (5) (6) Gain/(loss) on exchange rates (21) (21) (1) Gain/(loss) on derivatives 22 12 Non recurring effects (2) - Net financial charges (58) (62) Share in net income of associates 8 4 No
Slide 17: Statement of financial position (Balance Sheet)
Statement of financial position (Balance Sheet) Euro Millions 30 June ‘12 30 June ‘11 31 December ‘11 Net fixed assets 2,264 2,201 2,255 of which: intangible assets 619 593 618 of which: property, plants & equipment 1,549 1,535 1,544 Net working capital 934 865 552 of which: derivatives assets/(liab
Slide 18: Cash Flow
Cash Flow Euro Millions H1 2011 H1 2012 Combined a) Adj.EBITDA 308 287 Non recurring items (42) (248) EBITDA 266 39 Net Change in provisions & others (8) 175 Release of inventory step-up - 14 Cash flow from operations (before WC changes) 258 228 Working Capital changes (359) (199) Paid Income Taxes
Slide 19: Agenda
AGENDA H1 2012 Highlights & 2012 Outlook Financial Results Appendix H1 2012 Financial Results 19
Slide 20: Bridge Consolidated Sales
Bridge Consolidated Sales Euro Millions – Full Combined Total Consolidated 0.0% (1) (116) 68 - 3,965 3,916 3,916 H1 2011 Combined Org.Growth Metal Effect Exchange Rate H1 2012 L-f-L Perimeter effect H1 2012 Energy Cables & Systems Division -0.4% ( 13) ( 111) 46 ( 16 ) 3,264 3,186 3,170 H1 2011 Combi
Slide 21: Energy Segment – Profit and Loss Statement
Energy Segment – Profit and Loss Statement Euro Millions H1 2011 H1 2011 H1 2012 Reported a) Combined b) Sales to Third Parties 3,170 2,989 3,264 YoY total growth -2.9% c) YoY organic growth -0.4% c) Adj. EBITDA 229 215 225 % on sales 7.2% 7.1% 6.9% Adj. EBIT 175 168 173 % on sales 5.5% 5.6% 5.3% a)
Slide 22: Energy Segment – Sales and Profitability by business area
Energy Segment – Sales and Profitability by business area Euro Millions, % of Sales Growth – H1 combined H1 2011 Total Organic H1 2012 Comb. growth growth Sales to Third Parties Utilities 1,073 1,125 -4.7% -2.4% Trade & Installers 1,110 1,159 -4.2% -0.4% Industrial 920 889 3.6% 4.9% Others 67 91 n.m
Slide 23: Telecom Segment – Profit and Loss Statement
Telecom Segment – Profit and Loss Statement Euro Millions H1 2011 H1 2011 H1 2012 Reported a) Combined b) Sales to Third Parties 746 585 701 YoY total growth 6.4% c) YoY organic growth 1.7% c) Adj. EBITDA 79 54 62 % on sales 10.6% 9.0% 8.6% Adj. EBIT 54 36 39 % on sales 7.3% 6.0% 5.4% a) Includes Dr
Slide 24: Leading player in all market segments
Leading player in all market segments Consolidated Sales breakdown Sales breakdown by geographical area Sales breakdown by business H1 2012 H1 2012 APAC Telecom 14% 19% Utilities 27% Latin America Other 9% 2% € 3.9 bn € 3.9 bn EMEA North America Industrial 63% 14% 24% T&I 28% H1 2012 Financial Resul
Slide 25: Utilities – Transmission
Utilities – Transmission Record Order-book despite European outlook confirms commitment on renewables and interconnections Sales breakdown Orders Backlog Evolution H1 2012 Submarine (€ million) Network Transmission - components Submarine ~1,700 6% 24% ~1,000 ~1,050 € 1.1 bn ~800 ~900 ~650 ~650 ~550
Slide 26: Industrial
Industrial Sales breakdown Sales breakdown by geographical area Sales breakdown by business segment H1 2012 H1 2012 Other Asia Pacific Elevator 3% 18% 7% Renewables Specialties & 13% OEM Latin America 32% 8% € 0.9 bn € 0.9 bn EMEA OGP & SURF 49% 23% North America 25% Automotive 22% Sound geographica
Slide 27: Industrial – Focus on Elevator business
Industrial – Focus on Elevator business Leveraging on best-in-class technology to improve geographical reach Prysmian Group Sales breakdown Elevator Market breakdown H1 2012 FY 2011 EMEA 8% Asia Pacific 30% EMEA Asia Pacific 43% 44% Latin America 5% North America 57% Latin America North America 3% 1
Slide 28: Telecom
Telecom Sales breakdown Sales breakdown by geographical area Sales breakdown by business segment H1 2012 H1 2012 Asia Pacific JVs and other 23% 21% Optical, Connectivity and Fiber EMEA 47% 44% € 0.7 bn € 0.7 bn Multimedia & Latin America Specials 16% 17% North America Copper 17% 15% Increased exposu
Slide 29: Telecom
Telecom Leadership position in the fastest growing markets Fiber optic cable consumptions by area million km 715 World +35% 969 299 China +46% 437 122 North America +20% 147 66 Western Europe +27% 83 56 North Asia -9% 51 31 Eastern Europe +52% 47 18 Latin America +86% 34 Cumulated 2008-11 8 Cumulate
Slide 30: 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 31: 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