Prysmian S.p.a. · MIL:PRY
Prysmian — H1 2021 Earnings Presentation
44 slides from Prysmian's earnings presentation, Jul 28, 2021
Slide 1: First Half 2021 Financial Results
First Half 2021 Financial Results Milan, 28 July 2021
Slide 2: 1H 2021 Highlights
1H 2021 Financial ESG Appendix Highlights Results 2
Slide 3: 1H 2021 Key highlights
1H 2021 Key highlights LEONARDO DA VINCI SOLID PERFORMANCE CONTINUED IN Q2: +16.9% org. growth* The world’s most advanced cable-laying vessel Strong recovery of Telecom and Energy Business driven by T&I, OEM & entering in operation to support the Energy Renewables and Automotive Transition RESILIENT
Slide 4: More than 1.2 €Bn of new orders in H1
More than 1.2 €Bn of new orders in H1 1 SOO Green HVDC Underground Link (~ 900 $M cables) 2 Sofia offshore wind project (~ 240 €M) The biggest single project ever awarded to Prysmian 440 km of HVDC submarine export cables and 15 km of land cables for the 1.4 GW Sofia Offshore Wind Farm project 3 Tur
Slide 5: 1H 2021 Financial highlights
1H 2021 Financial highlights SALES ADJ. EBITDA FREE CASH FLOW SALES ORGANIC GROWTH* ADJ. EBITDA ADJ. EBITDA MARGIN FCF LTM NET DEBT 6,034 €M 10.5% 470 €M 7.8% 447 €M 2,387 €M SOLID ORGANIC GROWTH RESILIENT MARGINS FREE CASH FLOW +15.5% Telecom, recovery confirmed by a Energy Business Adj. EBITDA hig
Slide 6: Sound performance in Energy and Telecom; Projects improving
Sound performance in Energy and Telecom; Projects improving Projects Energy Telecom TOTAL 708 681 -3.5% 3,580 4,551 +9.5% 697 802 +15.5% 4,985 6,034 +8.5% Sales Sales E&I Industrial & NWC ( 22 ) 2,362 3,048 +10.0% 1,122 1,349 +9.3% forex 419 169 470 147 123 90 99 101 80 8 Adj. Ebitda Adj. Ebitda 76
Slide 7: Energy and Telecom: recovery path
Energy and Telecom: recovery path ENERGY TELECOM 2021 2019 2019 2020 2021 2020 Monthly volume evolution baseline: Jan 2019 Optical cable business only in Telecom © Prysmian Group 2021 7
Slide 8: Energy Business recovery at Pre-pandemic level with better margins
Energy Business recovery at Pre-pandemic level with better margins E&I Industrial & NWC Total Energy +9.3%* * Organic growth -10.6%* +10.0%* -8.4%* -9.6%* +9.5%* 3,048 1,248 1,349 4,551 Sales 2,763 2,362 1,122 4,135 3,580 1H 1H 1H 1H 1H 1H 1H 1H 1H 2019 2020 2021 2019 2020 2021 2019 2020 2021 259 27
Slide 9: A global recovery: the value of a wide geographical presence
A global recovery: the value of a wide geographical presence EMEA* NORTH AMERICA* LATIN AMERICA* ASIA PACIFIC* TOTAL GROUP 2,046 2,584 +11.3% 1,567 1,810 +4.8% 316 487 +32.5% 348 472 +11.3% 4,277 5,353 +10.5%* Sales Sales 199 470 166 419 Projects 76 150 80 32 99 46 Adj. Ebitda Adj. Ebitda 16 8 25 Re
Slide 10: Upgrading 2021 outlook
Upgrading 2021 outlook PREVIOUS 2021 GUIDANCE NEW 2021 GUIDANCE 2021 ADJ. EBITDA 2021 ADJ. EBITDA TARGET (€M) 870 940 920 970 TARGET (€M) 2021 FCF FCF before acquisition 2021 FCF FCF before acquisition TARGET (€M) & disposals ~ 300 ±20% TARGET (€M) & disposals ~ 300 ±20% KEY ASSUMPTIONS Solid demand
Slide 11: Resilience and Growth: the strategic fit of each segment and regions
Resilience and Growth: the strategic fit of each segment and regions Adj. EBITDA evolution (€M) Cash conversion 1,007 by Business 940 932 945 840 ENERGY 505 83% ENERGY 440 395 372 PROJECTS PROJECTS 66% 298 295 274 TELECOM 214 247 265 TELECOM 63% GROUP 228 186 2017 2018 2019 2020 2021 guidance GROUP
Slide 12: Financial Results
1H 2021 Financial ESG Appendix Highlights Results © Prysmian Group 2021 12
Slide 13: Profit and Loss Statement
Profit and Loss Statement Euro Millions 1H 2021 1H 2020 Adj. EBITDA Bridge SALES 6,034 4,985 Q1 Q2 1H YoY total growth 21.0% YoY organic growth 8.5% ADJ. EBITDA 2020 197 222 419 Adj.EBITDA 470 419 Projects (7) 3 (4) % on sales 7.8% 8.4% Energy 13 20 33 of which share of net income 9 5 Adjustments (2
Slide 14: Statement of financial position (Balance Sheet)
Statement of financial position (Balance Sheet) Euro Millions 30 Jun 2021 30 Jun 2020 31 Dec 2020 Net fixed assets 5,061 5,153 4,971 of which: goodwill 1,596 1,590 1,508 Net working capital 1,129 1,088 523 of which: derivatives assets/(liabilities) 190 - 91 of which: Operative Net working capital 93
Slide 15: Cash Flow
Cash Flow Euro Millions NET DEBT EVOLUTION +335 €M Free Cash Flow ( 859 ) 85 ( 36 ) ( 22 ) 52 159 (9) 127 223 81 ( 121 ) 112 79 2,516 2,387 30-Jun-20 Cash flow WC Restruct, non Antitrust Net Operative Financial Paid income Dividend Dividend Acquisitions Proceed & IFRS 16 Other 30-Jun-21 operations c
Slide 16: ESG
1H 2021 Financial ESG Appendix Highlights Results 16
Slide 17: Sustainability in Prysmian Group DNA
Sustainability in Prysmian Group DNA From Public company to People company PUBLIC COMPANY Constituted by a broad shareholder base and committed to ensure the highest international standards of governance: 67% of Board members are independent / 42% are women. Integrity as corporate value expressed th
Slide 18: Prysmian Climate Change Ambition and Targets
Prysmian Climate Change Ambition and Targets OUR NET ZERO CLIMATE AMBITION Prysmian Group has set carbon reduction targets aligned with the Science Based Targets initiative and Net Zero ambition Net Zero between 2035 and 2040 for our Scope 1&2 emissions, -46% 2030 Scope 1&2 interim target and by 205
Slide 19: Prysmian Social Ambition and Targets
Prysmian Social Ambition and Targets Women STEM program Reduced inequalities Investments to reduce Scope 1 and Scope 2 emissions Digital inclusion Gender balance in recruiting of desk Investment to boost sustainability, workers energy transition and digitalization © Prysmian Group 2021 19
Slide 20: Prysmian Social Ambition and Targets
Prysmian Social Ambition and Targets Prysmian Baseline UN Goals 2030 Target 2030 Definition Goals 2030 2020 Yearly hiring of desk workers - 50/50 in Recruiting of Desk Permanent HC from the external 34/66 Workers market 30% of Women in Senior Grade 20 (Band C) and above 13.3% Leadership roles Achiev
Slide 21: Prysmian Social Ambition and Targets
Prysmian Social Ambition and Targets Prysmian Baseline UN Goals 2030 Target 2030 Definition Goals 2030 2020 More than 30% of Executives Increasing the number of from under-represented Executives coming from under- 23% nationalities/ethnicities/ represented Race/ origins nationalities/ethnicities/ori
Slide 22: Prysmian Social Ambition and Targets
Prysmian Social Ambition and Targets Prysmian Baseline UN Goals 2030 Target 2030 Definition Goals 2030 2020 Connecting 100% (30,000) of All employees will be connected Digital our employees through through the group’s platforms Around Inclusion global platforms, achieving a and digital channels 10,0
Slide 23: Prysmian Social Ambition and Targets
Prysmian Social Ambition and Targets Prysmian Baseline UN Goals 2030 Target 2030 Definition Goals 2030 2020 40 yearly hours per capita of 40 hours of formal training, training experienced learning for all on-the-job, cross functional employees, including training projects, self-learning, internal 17
Slide 24: Prysmian Group Sustainability Governance
Prysmian Group Sustainability Governance “The future depends on Chief Sustainability Officer what you do today” Mahatma Gandhi ESG Committee (Ind. Board Members) Group Leadership Team Sustainability internal Steering Co. Diversity & Inclusion int. Steering Co. Local Sustainability Ambassadors © Prys
Slide 25: Appendix
1H 2021 Financial ESG Appendix Highlights Results © Prysmian Group 2021 25
Slide 26: Energy and Telecom: a recovery path to pre-pandemic levels
Energy and Telecom: a recovery path to pre-pandemic levels ENERGY E&I 16.3% 17.2% 1.7% 1.8% 3.4% 3.4% 2.8% 3.5% -1.1% 1.0% -2.7%-2.4% GROUP -4.2%-4.9% -4.5%-3.4% -4.4%-4.0% 16.9% -16.1% -17.0% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 3.1% 2.4% 4.6% 19 19 19 19 20 20 20 20 21 21 19
Slide 27: A global recovery
A global recovery EMEA 19.5% NORTH AMERICA 3.9% 2.0% 1.8% 11.3% -4.7%-4.9% -4.4% -4.2% 4.7% 3.8% 3.3% -7.4% 0.0% -18.1% -1.0% -0.9% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 -6.2%-7.9% 19 19 19 19 20 20 20 20 21 21 ASIA PACIFIC -14.6% 14.1% 8.9% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 19 19 19 19 20 20 20 20 21 21 1.6% 1
Slide 28: 1H 2021 Financial highlights
1H 2021 Financial highlights Euro Millions, % on Sales SALES ADJUSTED EBITDA (1) +8.5%* ( 22 ) forex 419 6,034 4,985 470 8.4% 7.8% 1H 2020 1H 2021 1H 2020 1H 2021 REPORTED OPERATIVE NET WORKING CAPITAL (2) REPORTED NET FINANCIAL DEBT 2,516 2,387 1,088 1,986 939 432 4.3% 11.3% 7.3% DEC-20 JUN-20 JUN-
Slide 29: Profit and Loss Statement
Profit and Loss Statement Euro Millions 1H 2021 1H 2020 SALES 6,034 4,985 YoY total growth 21.0% YoY organic growth 8.5% Adj.EBITDA 470 419 % on sales 7.8% 8.4% of which share of net income 9 5 Adjustments (26) (12) Adjustments and Special Items on EBIT EBITDA 444 407 % on sales 7.4% 8.2% 1H 2021 1H
Slide 30: Projects
Projects Euro Millions, % on Sales SALES HIGHLIGHTS -3.5%* SUBMARINE / Recovery started in Q2, with acceleration expected in H2 / Tendering activity ongoing, with a solid pipeline of projects (interconnections and off-shore wind farms) / Submarine backlog further increased to more than 1.8 €Bn 708 6
Slide 31: Energy & Infrastructure
Energy & Infrastructure Euro Millions, % on Sales SALES HIGHLIGHTS +10.0%* TRADE & INSTALLERS / Strong organic growth in all regions / Margins improvement driven by volume and costs efficiency offsetting raw material costs increase POWER DISTRIBUTION 3,048 / PD normalizing, after 2020 onshore wind s
Slide 32: Industrial & Network Components
Industrial & Network Components Euro Millions, % on Sales SALES HIGHLIGHTS SPECIALTIES, OEM & RENEWABLES +9.3%* / Overall positive performance and resilience to Covid-19. Solid performances of Railways, Infrastructure, Wind and Solar, partially offset by Rolling Stock and Nuclear. ELEVATOR / Complet
Slide 33: Telecom
Telecom Euro Millions, % on Sales SALES HIGHLIGHTS +15.5%* OPTICAL CABLE & FIBRE / Improvement confirmed by strong Q2, supported by sound volume trend especially in the US. / Cost efficiency measures and mix partly offsetting price pressure / Positive carry-over from YOFC 2020 actual results (4 €M)
Slide 34: Projects Business: Enabling Energy Transition
Projects Business: Enabling Energy Transition WELL POSITION TO CAPTURE MARKET OPPORTUNITIES: 7.2 €BN ORDERS/YEAR EXPECTED Robust market growth The highest installation capabilities Driving Innovation 7.2 3 Vessels Industry first to qualify both 525kV XLPE and P Laser solutions Interconnectors 2.4 Th
Slide 35: Telecom Business Secular growth drivers
Telecom Business Secular growth drivers MARKET OPPORTUNITIES & CUSTOMER NEEDS OUR APPROACH & SOLUTIONS FIBER DENSITY World record / More fiber per mm2 in DENSITY / Ubiquity by optimizing the AND MINIATURIZATION roll-out Capex RELIABILITY / FUTUREPROOFNESS Best in class / Easy-to-install products for
Slide 36: Financial Highlights
Financial Highlights Euro Millions Sales Adj.EBITDA 1H 2021 1H 2020 1H 2021 1H 2020 organic Adj.EBITDA Adj.EBITDA €M €M €M €M growth Margin Margin PROJECTS 681 -3.5% 708 76 11.1% 80 11.4% Energy & Infrastructure 3,048 10.0% 2,362 169 5.5% 147 6.2% Industrial & Network Components 1,349 9.3% 1,122 99
Slide 37: Cash Flow Statement
Cash Flow Statement 30 Jun 2021 30 Jun 2020 12 Months (from 1/7/2020 to 30/6/2021) Euro Millions Adj.EBITDA 470 419 891 Adjustments (26) (12) (73) EBITDA 444 407 818 Net Change in provisions & others (27) (82) (128) Share of income from investments in op.activities (9) (5) (22) Cash flow from operat
Slide 38: Prysmian Group Liquidity and Debt Profile
Prysmian Group Liquidity and Debt Profile COMFORTABLE LIQUIDITY POSITION: / Average debt maturity of 3.2 years after 750 €M Equity Linked Bonds issued on 2nd February 2021 / 1,0 €Bn of committed Revolving Credit Facility fully unutilized CURRENT FINANCIAL DEBT MATURITY PROFILE(*) UNICREDIT TL 200 RC
Slide 39: Bridge Consolidation Sales
Bridge Consolidation Sales Euro Millions PROJECTS ENERGY & INFRASTRUCTURE ( 25 ) 10 ( 12 ) 594 ( 145 ) 237 Org.growth 708 -3.5% 681 Org.growth 3,048 2,362 10.0% TOTAL CONSOLIDATED 1H 2020 Organic Metal Exchange 1H 2021 1H 2020 Organic Metal Exchange 1H 2021 864 ( 276 ) Growth Effect Rate 37 Growth E
Slide 40: Metal Price Impact on Profitability
Metal Price Impact on Profitability Supply Main Application Metal Influence on Cable Price Metal Fluctuation Management Contract Impact Impact Projects (Energy Technology and design content are Pricing locked-in at order intake Predetermined transmission) the main elements of the “solution” delivery
Slide 41: World leader in the energy and telecom cable systems industry
Prysmian Group World leader in the energy and telecom cable systems industry Energy Projects Industrial & Network Telecom Energy & Infrastructure Components High Voltage Trade & Installers Core Oil & Gas products Telecom solutions Specialties, OEM & Submarine Energy Power Distribution Optical Fibre
Slide 42: 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; Share of net income include Management estimate of YOFC Q2 results Slide 11: Cash conversion calculated as (Adj.
Slide 43: 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 44: Thank you
Thank you prysmiangroup.com