Slide 1: FY 2014 Financial Results
FY 2014 Financial Results Milan – February 25th, 2015
Slide 2: Agenda
Agenda FY 2014 Highlights o Group overview o Results by business Financial results Appendix FY 2014 Financial Results 2
Slide 3: FY 2014 Highlights
FY 2014 Highlights Adj. EBITDA at € 509m (€ 603m excl. Western Link): guidance achieved Still weak market demand in cyclical businesses Strong growth in the Submarine business, solid recovery in Telecom’s volumes and profitability Weaker than expected development in OEMs and Oil & Gas Net
Slide 4: FY 2014 Key Financials
FY 2014 Key Financials Euro Millions, % on Sales Sales Adjusted EBITDA (1) Adjusted EBIT (2) +1.8%* -3.3%* 650 +2.7%* 613 603 494 7,574 465 459 6,995 6,901 509 6,840 365 8.6% 8.8% 8.7% 7.4% 6.5% 6.7% 6.7% 5.3% 2012 2013 2014 2014 2012 2013 2014 2014 2012 2013 2014 2014 ex.WL ex.WL ex.WL * Org. Growt
Slide 5: Adj.EBITDA and Organic Growth by business
Adj.EBITDA and Organic Growth by business Profitability decline mainly due to WL issue. Sound recovery in Telecom, E&I at the bottom Adj. EBITDA (€ million) and Organic Growth (% change vs. previous year) 613 603 509 248 231 154 141 +6.5% +6.1% 127 126 116 108 106 +4.0% +2.7% +2.7% +1.8% +2.1% +1.7%
Slide 6: Production capacity rationalization restarted
Production capacity rationalization restarted 2 plants closed in 2014, 1 closure ongoing: improve saturation in Europe St.Petersburg (RUS) Wuppertal (GER) partial closure Amsterdam (NED) Derby (UK) Hickory (US) Eschweiler (GER) Aubevoye (FRA) Livorno Ferraris (ITA) Sant Vicenç (SPA) Angel (CHI) Sing
Slide 7: Synergies Plan update
Synergies Plan update Overheads (fixed costs) Procurement 175 Operations ~140 85 120 70 60 ~155 65 140 45 30 100 45 45 45 30 45 13 6 25 10 15 7 5 Note: Cumulated synergies figures are not audited. Calculation is based on internal reporting FY 2014 Financial Results 7
Slide 8: Agenda
Agenda FY 2014 Highlights o Group overview o Results by business Financial results Appendix FY 2014 Financial Results 8
Slide 9: Energy Projects
Energy Projects Euro Millions, % on Sales Sales Highlights +1.7%* Submarine +6.5%* +6.1%* • Double digit organic growth in FY’14 excl. Western Link 1,416 1,360 1,355 1,250 • Increase in profitability excl. Western Link; WL total financial impact confirmed, recovery program on track, restored full pr
Slide 10: Leadership in submarine reconfirmed by projects awarded in 2014
Leadership in submarine reconfirmed by projects awarded in 2014 Record visibility in Submarine Transmission – Orders Backlog (€m) > € 1bn submarine projects awarded in 2014 Submarine High Voltage ~3,000 ~2,800 ~2,800 3 1 4 ~500 ~450 ~2,500 ~500 6 ~2,450 ~2,350 5 ~450 ~550 ~650 2 7 ~1,650~1,700 ~1,55
Slide 11: Energy & Infrastructure
Energy & Infrastructure Euro Millions, % on Sales Sales Highlights -5.5%* Trade & Installers +2.7%* 3,139 2,747 2,677 • Mid single digit organic growth in FY, softening from Q2, driven by volume recovery in Europe partly offset by lower pricing • Profitability decrease attributable to price pressure
Slide 12: Industrial & Network Components
Industrial & Network Components Euro Millions, % on Sales Sales Highlights +2.1%* Specialties & OEMs -0.3%* • Weak FY’14 performance due to Europe and Americas; good trend in 1,849 1,788 1,708 APAC. Lower contribution from Mining, Nuclear, Infrastructure partially offset by Renewables, Rolling Stock
Slide 13: Telecom
Telecom Euro Millions, % on Sales Sales Highlights -15.4%* Optical, Connectivity & Fiber 1,202 +4.0%* • Strong volume recovery in optical (FTTH/FTTA development and 986 994 backbone investments) with stabilization of prices in H2. Profitability also supported by YOFC contribution • Sound demand in t
Slide 14: Telecom: Positive expectations for 2015 in Europe and US
Telecom Positive expectations for 2015 in Europe and US Telecom optical volumes (2013=100) Consumption of fiber optic cable (fkm, CRU) CAGR +12% Market * Prysmian Europe 2013 2014 2015E CAGR +13% 122 125 116 100 100 US 2013 2014 2015E CAGR +8% 2013 2014 2015E • Optical fiber consumption increased by
Slide 15: Agenda
Agenda FY 2014 Highlights o Group overview o Results by business Financial results Appendix FY 2014 Financial Results 15
Slide 16: Profit and Loss Statement
Profit and Loss Statement Euro Millions FY 2014 excl. WL Submarine WL submarine FY 2014 FY 2013 1) project effect project effect Sales 6,901 (61) 6,840 6,995 YoY total growth (1.3%) (2.2%) YoY organic growth 2.7% 1.8% Adj.EBITDA 603 (94) 509 613 % on sales 8.7% 7.4% 8.8% Non recurring items (13) - (
Slide 17: Extraordinary Effects
Extraordinary Effects Euro Millions FY 2014 FY 2013 2) Antitrust investigation 31 6 Restructuring (48) (50) Price adjustments 22 - Other (18) (6) EBITDA adjustments (13) (50) Special items (40) (47) Gain/(loss) on metal derivatives 7 (8) Assets impairment (44) (25) Other (3) (14) EBIT adjustments (5
Slide 18: Financial Charges
Financial Charges Euro Millions FY 2014 FY 2013 2) Net interest expenses (87) (100) of which non cash Conv.Bond interest exp. (8) (6) Bank fees amortization (7) (8) Gain/(loss) on exchange rates (20) (27) Gain/(loss) on derivatives 1 ) (16) (8) Non recurring effects (10) (7) Net financial charges (1
Slide 19: Statement of financial position (Balance Sheet)
Statement of financial position (Balance Sheet) Euro Millions 31 December 31 December 2014 2013 1) Net fixed assets 2,219 2,207 of which: intangible assets 561 588 of which: property, plants & equipment 1,414 1,390 Net working capital 407 386 of which: derivatives assets/(liabilities) (16) (6) of wh
Slide 20: Cash Flow
Cash Flow Euro Millions FY 2014 FY 2013 1) Adj.EBITDA 509 613 Non recurring items (13) (50) EBITDA 496 563 ∆ NFP 2010PF -2014 Net Change in provisions & others (53) (76) Share of income from investments in op.activities (43) (35) NFP Pro-forma 2010* (1,214) Cash flow from operations (before WC chang
Slide 21: Dividend proposal
Dividend proposal Dividend proposed to the forthcoming Shareholders’ Meeting Total Shares (1) • Dividend Per Share € 0.42 • Total payout: € 90 millions 216,720,922 • Ex-dividend date: 20 April 2015 • Payment date: 22 April 2015 Shares with dividend right (2) DPS evolution (Euro per share) 213,906,93
Slide 22: Agenda
Agenda FY 2014 Highlights o Group overview o Results by business Financial results Appendix FY 2014 Financial Results 22
Slide 23: New segment reporting
New segment reporting SEGMENT ENERGY PRODUCTS ENERGY TELECOM PROJECTS REPORTED Industrial & Energy & Network Other Infrastructure Components Trade & OEMs & Optical, Connectivity Submarine Other Installers Specialties & Fiber Power Multimedia & High Voltage Automotive Distribution Specials BUSINESSES
Slide 24: New segment reporting
New segment reporting Sales and Adj.EBITDA breakdowns Previous Segment Reporting New Segment Reporting Sales Sales Telecom Telecom Energy 14% 14% Projects Other Other 20% Utilities 2% 32% 2% Industrial € 6,840m € 6,840m Industrial & 24% Netw.Comp. Energy 25% Products 66% E&I T&I 39% 28% Adj.EBITDA A
Slide 25: Prysmian group at a glance
Prysmian group at a glance FY 2014 Financial Results Sales breakdown by business Sales breakdown by geography Telecom Energy APAC 14% Projects 13% Other 20% Latin America 2% 8% € 6,840m € 6,840m EMEA Industrial & 64% North America Netw.Comp. Energy 15% 25% Products 66% E&I 39% Adj. EBITDA by busines
Slide 26: Energy Projects
Energy Projects Sales breakdown Sales by business Sales by geographical area SURF APAC 8% 7% Latin America 8% North America High Voltage 10% 37% Sales FY14 Sales FY14 € 1.4 bn € 1.4 bn Submarine 55% EMEA 75% FY 2014 Financial Results 26
Slide 27: Energy & Infrastructure
Energy & Infrastructure Sales breakdown Sales by business Sales by geographical area APAC 11% Power Distribution Latin America 29% 7% Sales FY14 North America Sales FY14 € 2.7 bn 11% € 2.7 bn EMEA Trade & Installers 71% 71% FY 2014 Financial Results 27
Slide 28: Industrial & Network Components
Industrial & Network Components Sales breakdown Sales by business Sales by geographical area Other Network 4% Components APAC 8% Specialties & OEMs 1) 23% 43% EMEA 47% Automotive Sales FY14 Sales FY14 20% € 1.7 bn Latin America € 1.7 bn 6% Elevator 9% North America Oil & Gas 24% 16% 1) Includes Rene
Slide 29: Telecom
Telecom Sales breakdown Sales by business Sales by geographical area OPGW & Other APAC Copper 5% 13% 13% Latin America 14% Sales FY14 Sales FY14 € 1.0 bn € 1.0 bn Multimedia & Specials 21% EMEA North America Optical, 14% 59% Connectivity & Fiber 61% FY 2014 Financial Results 29
Slide 30: Bridge Consolidated Sales
Bridge Consolidated Sales Euro Millions Energy Projects Energy Products 83 ( 61 ) (5 ) (22 ) 65 ( 93 ) (130) Org.growth +1.7% Org.growth excl.WL 1,360 +6.1% 1,355 Org. growth 4,649 +1.4% 4,491 FY 2013 Org.Growth WL effect Metal Effect Exc. Rate FY 2014 FY 2013 Org.Growth Metal Effect Exc. Rate FY 20
Slide 31: Impact of currencies and WL project on Sales and Adj.EBITDA
Impact of currencies and WL project on Sales and Adj.EBITDA Profitability decrease fully attributable to WL project and negative currency translation effect Sales Adj. EBITDA Of which: Of which: • Energy Projects 22 • Energy Projects 2 • E&I 89 • E&I 6 • Ind. & Netw. Comp. 38 • Ind. & Netw. Comp. 3
Slide 32: Energy Projects Segment – Profit and Loss Statement
Energy Projects Segment – Profit and Loss Statement Euro Millions FY 2014 excl. WL Submarine WL submarine FY 2014 FY 2013 1) project effect project effect Sales to Third Parties 1,416 (61) 1,355 1,360 YoY total growth 4.2% (0.3%) 8.8% YoY organic growth 6.1% 1.7% 6.5% Adj. EBITDA 248 (94) 154 231 %
Slide 33: Energy Products Segment – Profit and Loss Statement
Energy Products Segment – Profit and Loss Statement Euro Millions FY 2014 FY 2013 1) E&I 2,677 2,747 YoY total growth (2.6%) (12.5%) Sales to Third Parties YoY organic growth 2.7% (5.5%) Industrial & Netw. Comp. 1,708 1,788 YoY total growth (4.4%) (3.3%) YoY organic growth (0.3%) 2.1% Other 106 114
Slide 34: Telecom Segment – Profit and Loss Statement
Telecom Segment – Profit and Loss Statement Euro Millions FY 2014 FY 2013 1) Sales to Third Parties 994 986 YoY total growth 0.8% (18.0%) YoY organic growth 4.0% (15.4%) Adj. EBITDA 116 106 % on sales 11.7% 10.8% Adj. EBIT 74 63 % on sales 7.4% 6.4% 1) Final restated figures in application of IFRS 1
Slide 35: New segment reporting: 2013-14 by quarter
New segment reporting: 2013-14 by quarter Euro Millions SALES and ORGANIC GROWTH Q1'13 Q2'13 Q3'13 Q4'13 Q1'14 Q2'14 Q3'14 Q4'14 ENERGY PROJECTS 278 324 368 390 268 321 326 440 2.3% 1.4% -10.8% 13.4% E&I 676 746 711 614 638 678 699 662 4.7% -0.8% 0.9% 6.9% INDUSTRIAL & NET.COMP. 434 478 438 438 414
Slide 36: 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 37: 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