Prysmian S.p.a. · MIL:PRY
Prysmian — FY2016 Earnings Presentation
36 slides from Prysmian's earnings presentation, Mar 1, 2017
Slide 1: FY 2016 Financial Results
FY 2016 Financial Results Milan – March 1st 2017
Slide 2: Agenda
Agenda FY 2016 Highlights o Group overview o Results by business Financial results Appendix FY 2016 Financial Results 2
Slide 3: FY 2016 Highlights
FY 2016 Highlights Adj. EBITDA at € 711m, highest level since Prysmian’s IPO, driven by Energy Projects and Telecom businesses. Adj. EBITDA margin at 9.4%, recording margin expansion in all businesses (except Oil&Gas), driven by the continuous focus on efficiency, footprint optimization and busi
Slide 4: FY 2016 Key Financials
FY 2016 Key Financials Euro Millions, % on Sales Sales Adjusted EBITDA (1) **∆ OCI Contribution FY’16 vs. FY’15 * Excl. €24m WL previous loss write-up **∆ OCI Contribution FY’16 vs. FY’15 +1.0%* 711 7,361 7,567 623 37** 537** 599* 8.5% 9.4% 2015 2016 2015 2016 * Org. Growth Operative Net Working Cap
Slide 5: Continued profitability improvement
Continued profitability improvement Underlying margin increase in all business excluding Oil&Gas FY’15 FY’16 * Excl. €24m WL previous loss write-up ** Excl. €8m bad debt provision Adj. EBITDA Margin 14.7%** 15.6% 15.9% ~14%* 12.1% 9.5% 14.0% 8.5% 9.4% 8.1% 4.6% 5.1% 8.1%* 3.8% 2.7% Energy Industrial
Slide 6: Adj.EBITDA Bridge FY 2015-2016
Adj.EBITDA Bridge FY 2015-2016 Underlying margin increase driven by Energy Projects, Telecom and OCI consolidation Bad debt provision in Brazil 8 ( 3) 711 5 ( 8) 29 37 39 ( 11 ) 688 685 685 711 623 651 651 623 24 FY 2015 WL previous loss write-up € 23m Adverse FX Impact FY 2015 Energy E&I* ∆ OCI Ind
Slide 7: Key Achievements of 2016
Key Achievements of 2016 New Installation Vessel (Ulisse): • Dedicated to shallow water installation activities. • Maximum transport capacity of 7,000 tons. • In operations since July 2016. Major Technology Milestones: • Full system homologation for: - 525kV and 600kV XLPE. - 525kV and 600kV P-Laser
Slide 8: Agenda
Agenda FY 2016 Highlights o Group overview o Results by business Financial results Appendix FY 2016 Financial Results 8
Slide 9: Energy Projects
Energy Projects Euro Millions, % on Sales Sales Highlights +18.5%* Submarine +11.9%* 1,634 • Sound double-digit organic growth benefitting from a favourable project 1,416 phasing and effective execution. 1,241 • Adj.EBITDA margin driven by strong revenue growth, sound execution and new installation
Slide 10: Energy & Infrastructure
Energy & Infrastructure Euro Millions, % on Sales Sales Highlights **∆ OCI Contribution FY’16 vs. FY’15 Trade & Installers -3.1%* +3.0%* 3,016 • Negative organic trend driven by sharp decline in South America and 2,795 moderate slowdown in Central Eastern and Southern Europe. Positive 2,677 537** pe
Slide 11: Industrial & Network Components
Industrial & Network Components Euro Millions, % on Sales Sales Highlights -0.8%* -4.6%* Specialties, OEMs & Renewables 1,499 • Mid single digit organic decline, due to slowdown in Renewables segment 1,440 (mainly China) and volume drop in Mining, Nuclear and Railway, partially 1,343 offset by the s
Slide 12: Oil & Gas
Oil & Gas Euro Millions, % on Sales Sales Highlights +10.0%* -29.3%* SURF 421 • Umbilical: Sharp volumes drop, in line with the expected market evolution 382 due to Petrobras limited orders in 2016. 300 • DHT: Slight decline in Sales and Adj.EBITDA, partially compensated by the consolidation of GCDT
Slide 13: Telecom
Telecom Euro Millions, % on Sales Sales Highlights +8.5%* Telecom Solutions +9.9%* 1,164 1,109 • Positive trend in Optical cables and fiber, accelerating in Q4, driven by solid performance in the US, France, Eastern Europe and Australia. 994 • Investments in fiber manufacturing efficiency paying off
Slide 14: Agenda
Agenda FY 2016 Highlights o Group overview o Results by business Financial results Appendix FY 2016 Financial Results 14
Slide 15: Profit and Loss Statement
Profit and Loss Statement Euro Millions ∆ OCI contrib. FY 2016 FY 2015 FY ‘16 vs. FY ’15 Sales 7,567 7,361 537 YoY total growth 2.8% 7.6% 0.0% YoY organic growth 1.0% 5.3% 0.0% Adj.EBITDA 711 623 37 % on sales 9.4% 8.5% Adjustments (66) (1) (5) EBITDA 645 622 32 % on sales 8.5% 8.4% Adj.EBIT 538 473
Slide 16: Adjustments and Special Items on EBIT
Adjustments and Special Items on EBIT Euro Millions FY 2016 FY 2015 Non-recurring Items (Antitrust Investigation) 1 29 Restructuring (50) (48) Other Non-operating Income / (Expenses) (17) 18 EBITDA adjustments (66) (1) Special items (25) (73) Gain/(loss) on metal derivatives 54 (27) Assets impairmen
Slide 17: Financial Charges
Financial Charges Euro Millions FY 2016 FY 2015 Net interest expenses (62) (73) of which non-cash conv.bond interest exp. (8) (8) Bank fees amortization (4) (4) Gain/(loss) on exchange rates (9) (31) Gain/(loss) on derivatives 1) (3) 12 Non recurring effects (2) (2) Other 1 9 Net financial charges (
Slide 18: Statement of financial position (Balance Sheet)
Statement of financial position (Balance Sheet) Euro Millions 31 Dec 2016 31 Dec 2015* Net fixed assets 2,630 2,581 of which: goodwill 448 452 of which: intangible assets 344 371 of which: property, plants & equipment 1,631 1,552 Net working capital 325 347 of which: derivatives assets/(liabilities)
Slide 19: Cash Flow
Cash Flow Euro Millions Full OCI FY 2016 FY 2016 FY 2015 Cash-flow Adj.EBITDA 711 623 52 Adjustments (66) (1) (5) EBITDA 645 622 47 Net Change in provisions & others - (75) - Share of income from investments in op.activities (31) (39) - Cash Flow from operations (bef. WC changes) 614 508 47 Working
Slide 20: Dividend proposal
Dividend proposal Dividend proposed to the forthcoming Shareholders’ Meeting Total Shares (1) Dividend Per Share € 0.43 216,720,922 • Ex-dividend date: 24 April 2017 • Record date: 25 April 2017 • Payment date: 26 April 2017 Shares with dividend right (2) DPS evolution (Euro per share) 213,014,694 D
Slide 21: Successful placement of €500m equity-linked bond
Successful placement of €500m equity-linked bond Equity-linked Bond Key Features: • Total amount: € 500 million 1. Finance possible M&A deals • Coupon: Zero Coupon • Initial Conversion Price: €34.2949 (41.25% premium) 2. Fund shares buy-back • Maturity: January 2022 (5 Years) • Redemption at maturit
Slide 22: Agenda
Agenda FY 2016 Highlights o Group overview o Results by business Financial results Appendix FY 2016 Financial Results 22
Slide 23: Prysmian group at a glance
Prysmian group at a glance FY 2016 Financial Results Sales breakdown by business Sales breakdown by geography Telecom Energy APAC 15% Projects 13% 22% Latin America Oil&Gas 6% 4% Other 1% € 7,567m North America € 7,567m EMEA 14% 67% Industrial & Energy Netw.Comp. Products 18% 59% E&I 40% Adj. EBITDA
Slide 24: Energy Projects
Energy Projects Sales breakdown Sales by business Sales by geographical area APAC Latin America 7% 2% High Voltage North America 32% 4% Sales FY16 Sales FY16 € 1,634 m € 1,634 m Submarine 68% EMEA 87% FY 2016 Financial Results 24
Slide 25: Energy & Infrastructure
Energy & Infrastructure Sales breakdown Sales by business Sales by geographical area APAC 9% Latin America Power Distribution 5% 37% North America 11% Sales FY16 Sales FY16 € 3,016 m € 3,016 Trade & Installers EMEA 63% 75% FY 2016 Financial Results 25
Slide 26: Industrial & Network Components
Industrial & Network Components Sales breakdown Sales by business Sales by geographical area Other Network 5% APAC Components 22% 10% Specialties & OEMs 49% EMEA 46% Sales FY16 Latin America Sales FY16 Automotive € 1,343 m 4% € 1,343 m 21% Elevator North America 15% 28% FY 2016 Financial Results 26
Slide 27: Oil & Gas
Oil & Gas Sales breakdown Sales by business Sales by geographical area APAC 25% EMEA 28% Core Oil&Gas Cables 59% Sales FY16 Sales FY16 SURF € 300 m € 300 m 41% Latin America North America 27% 20% FY 2016 Financial Results 27
Slide 28: Telecom
Telecom Sales breakdown Sales by business Sales by geographical area OPGW & Other 4% APAC Copper 17% 13% Latin America Sales FY16 12% Sales FY16 € 1,164 m € 1,164 m Multimedia & Specials 20% EMEA 53% Optical, North America Connectivity & 18% Fiber 63% FY 2016 Financial Results 28
Slide 29: Bridge Consolidated Sales
Bridge Consolidated Sales Euro Millions Energy Projects E&I Industrial & NWC ( 10 ) (26 ) (8 ) ( 86) ( 537 126 ) ( 69 ) 262 (104) ( 55 ) ( 31 ) ( ) 1 Org.growth 3,016 Org.growth 1,634 1,634 2,795 -3.1% 2,479 1,499 -4.6% 1,343 1,343 Org.growth 1,416 +18.5% Oil & Gas Telecom Total Consolidated ( 11) (
Slide 30: Profit and Loss Statement
Profit and Loss Statement Euro Millions ∆ OCI contrib. Full OCI FY’16 FY 2016 FY 2015 FY ‘16 vs. FY ’15 Results Sales 7,567 7,361 537 537 YoY total growth 2.8% 7.6% 0.0% 0.0% YoY organic growth 1.0% 5.3% 0.0% 0.0% Adj.EBITDA 711 623 37 52 % on sales 9.4% 8.5% 9.7% of which share of net income 31 39
Slide 31: Energy Projects Segment – Profit and Loss Statement
Energy Projects Segment – Profit and Loss Statement Euro Millions FY 2016 FY 2015 Sales to Third Parties 1,634 1,416 YoY total growth 15.4% 0.0% YoY organic growth 18.5% 0.0% Adj. EBITDA 260 221 % on sales 15.9% 15.6% Adj. EBIT 224 187 % on sales 13.7% 13.2% FY 2016 Financial Results 31
Slide 32: Energy Products Segment – Profit and Loss Statement
Energy Products Segment – Profit and Loss Statement Euro Millions ∆ OCI Contribution FY 2016 FY 2015 FY ‘16 vs. FY ’15 E&I 3,016 2,795 537 YoY total growth 7.9% 0.0% Sales to Third Parties YoY organic growth (3.1%) 0.0% Industrial & Netw. Comp. 1,343 1,499 - YoY total growth (10.4%) 0.0% YoY organic
Slide 33: Oil&Gas Segment – Profit and Loss Statement
Oil&Gas Segment – Profit and Loss Statement Euro Millions FY 2016 FY 2015 Sales to Third Parties 300 421 YoY total growth (28.9%) 0.0% YoY organic growth (29.3%) 0.0% Adj. EBITDA 8 16 % on sales 2.7% 3.8% Adj. EBIT (7) 3 % on sales (2.4%) 0.7% FY 2016 Financial Results 33
Slide 34: Telecom Segment – Profit and Loss Statement
Telecom Segment – Profit and Loss Statement Euro Millions FY 2016 FY 2015 Sales to Third Parties 1,164 1,109 YoY total growth 4.9% 11.6% YoY organic growth 8.5% 9.9% Adj. EBITDA 163 134 % on sales 14.0% 12.1% Adj. EBIT 123 90 % on sales 10.6% 8.1% FY 2016 Financial Results 34
Slide 35: 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 8,000 2,500 100 2,000 75 6,000 1,500 50 4,000 1,000 25 2,000 J- J- J- J- J- J- J- J- J- J- 500 J- J- J- J- J- J- J- J- J-
Slide 36: 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