Slide 1: 9M 2018 Financial Results
9M 2018 FINANCIAL RESULTS Milan – November 14th, 2018 1
Slide 2: Agenda
AGENDA ➢9M 2018 Highlights o Group overview o Results by business ➢Financial results ➢Appendix 2
Slide 3: 9M 2018 Financial Highlights
9M 2018 Financial Highlights Organic sales growth at +3.8% (excluding General Cable),7.4% in Q3, supported by: - High-single digit organic growth in Optical & Connectivity - Positive trend in Energy Products (Industrial and T&I) and Underground HV Fully combined organic sales growth at 3.4%, with Ge
Slide 4: 9M 2018 Key Financials
9M 2018 Key Financials General Cable Euro Millions, % on Sales Prysmian excl. GC Sales (3)(6) Adjusted EBITDA (3)(4)(6) Reported(1) Full 9M Combined(2) Reported(1) Full 9M Combined(2) +3.8%* +3.4%* 714 651 8,459 8,712 577 167 7,293 148 2,665 74 2,592 1,246 736 7,904 547 503 547 503 5,867 6,047 5,867
Slide 5: 9M 2018 Full Combined - General Cable Sales & Adj. EBITDA
9M 2018 Full Combined - General Cable Sales & Adj.EBITDA Euro Millions, % on Sales Sales (3)(8) Key Comments 3,449 +2.5%* 2,665 • Positive organic growth benefitting from: 2,592 • Europe: sound Telecom and Projects (softening in Q3) • US: solid performance in Construction and Automotive. Q3 recovery
Slide 6: Prysmian performance by Segment (excl. General Cable)
Prysmian performance by Segment (excl. General Cable) Accelerated organic growth. Profitability expansion in Telecom business. 9M’17 9M’18 Adj. EBITDA Margin 20.9% 17.4% 17.6% 8.0% 9.3% 7.6% 8.3% 10.8% 4.3% 3.6% 2.3% 1.3% Energy E&I Industrial & Oil&Gas Telecom Total Projects NWC. 9M’17 9M’18 +3.8%
Slide 7: Adj. EBITDA Bridge 9M 2017 – 9M 2018 Full Combined
Adj.EBITDA Bridge 9M 2017 – 9M 2018 Full Combined General Cable Prysmian excl. GC Previous Prysmian Perimeter General Cable Perimeter 714 ( 61 ) 48 ( 28 ) ( 14 ) 167 7 ( 4 ) ( 8 ) ( 9 ) 6 12 670 651 653 656 656 659 651 650 644 644 Including €70m 148 WesterLink Bad debt provision provision Mainly rel
Slide 8: General Cable Integration & Synergies
General Cable Integration & Synergies Progress Update OPERATING SYNERGIES FINANCIAL SYNERGIES WORKING CAPITAL SMOOTH INTEGRATION PROCESS. SYNERGIES WELL ON TRACK 2022 Integration Plan Footprint 2022 SYNERGIES TARGET CONFIRMED: 13% • Organization streamlining: ~ €90m (~ 60%) Procurement 27% • Procure
Slide 9: Agenda
AGENDA ➢9M 2018 Highlights o Group overview o Results by business ➢Financial results ➢Appendix 9
Slide 10: Energy Projects (Excluding General Cable)
Energy Projects (Excluding General Cable) Euro Millions, % on Sales Sales (6) Highlights 1,493 SUBMARINE +6.4%* • Adj. EBITDA impacted by €70m provision related to the Western Link project. 1,086 • Order intake in line with Prysmian market share. Backlog not including recent 1,041 awards (Offshore W
Slide 11: Energy & Infrastructure (Excluding General Cable)
Energy & Infrastructure (Excluding General Cable) Euro Millions, % on Sales Sales Highlights ** Sales excluding OCI 3,271 TRADE & INSTALLERS +1.7%* • Positive organic trend, consolidated in Q3 with continued volume growth in 2,467 2,533 North America and Europe (mainly Germany, Italy and Spain). Imp
Slide 12: Industrial & Network Components (Excluding General Cable)
Industrial & Network Components (Excluding General Cable) Euro Millions, % on Sales Sales Highlights 1,460 +4.9%* Specialties, OEMs & Renewables 1,100 1,146 • Sound organic growth, confirmed in Q3, with continued positive trend in Railways, Rolling Stock and in Crane and recovery Mining and Renewabl
Slide 13: Telecom (Excluding General Cable)
Telecom (Excluding General Cable) Euro Millions, % on Sales Sales Highlights 1,258 +6.5%* • Robust growth, supported by improved Q3 trend in Europe and Latin America 953 974 • Optical & Connectivity organic sales trend confirmed at high-single digit level, benefitting from increasing market demand i
Slide 14: General Cable by Geographical Area – 9M 2018 Full Combined
General Cable by Geographical Area –9M 2018 Full Combined Euro Millions, % on Sales Sales (3)(8) Adj. EBITDA (3)(4)(8) Key Comments North America +2.6%* 149 2,039 122 • Volumes slightly growing with positive trend 101 in Construction and Automotive offset by 1,577 1,604 negative performance in MMS i
Slide 15: Agenda
AGENDA ➢9M 2018 Highlights o Group overview o Results by business ➢Financial results ➢Appendix 15
Slide 16: Profit and Loss Statement
Profit and Loss Statement 9M 2017 9M 2018 Reported (1) Euro Millions Reported (6) of which Total Total General Cable Sales 7,293 1,246 5,867 YoY total growth 24.3% YoY organic growth 3.8% Adj.EBITDA 577 74 547 % on sales 7.9% 6.0% 9.3% Adjustments (43) (30) (33) EBITDA 534 44 514 % on sales 7.3% 3.6
Slide 17: Adjustments and Special Items on EBIT
Adjustments and Special Items on EBIT Euro Millions 9M 2017 9M 2018 Reported (1) Reported of which Total Total General Cable Non-recurring Items (Antitrust investigation) (1) - (17) Restructuring (25) (10) (12) of which General Cable integration costs (15) (10) - Other Non-operating Income / (Expens
Slide 18: Financial Charges
Financial Charges Euro Millions 9M 2018 9M 2017 (1) Reported (1)(1) Reported Net interest expenses (56) (50) of which non-cash conv.bond interest exp. (9) (13) Bank fees amortization (6) (4) Gain/(loss) on exchange rates (24) (4) Gain/(loss) on derivatives 15 (10) Non recurring effects (2) (2) Other
Slide 19: Statement of financial position (Balance Sheet)
Statement of financial position (Balance Sheet) Euro Millions 30 September 31 December 2017 30 September 2018 Reported (1) 2017 Reported* Reported* of which General Total Total Total Cable Net fixed assets 4,838 2,135 2,598 2,610 of which: goodwill 1,677 1,237 439 438 of which: intangible assets 295
Slide 20: Cash Flow Reported
Cash Flow Reported Euro Millions 105 ( 283 ) 78 162 38 ( 496 ) 570 3,480 1,215 ( 403 ) 3,364 3,402 3,302 2,877 3,202 71 2,632 2,632 2,806 2,806 1,384 1,820 Including: • Acquisition, transaction and integration costs (€94m) 436 436 20
Slide 21: Prysmian Group Debt Profile
Prysmian Group Debt Profile Limited exposure to financial market volatility FIXED/VARIABLE RATE COMPOSITION REPAYMENT DATE (€M) Total Gross Debt: 3,169 (*) Floating 22% Convertible bond zero – coupon 467 Acq Term Fixed 78% RCF 2014 (**) CDP 100 Loan Acq Bridge Eurobond 1,000 Loan 2,5% 1,000 750 700
Slide 22: Agenda
AGENDA ➢9M 2018 Highlights o Group overview o Results by business o Outlook ➢Financial results ➢ Appendix 22
Slide 23: Bridge Consolidation Sales (excl. General Cable)
Bridge Consolidation Sales (excl. General Cable) Euro Millions Energy Projects E&I Industrial & NWC 6 ( 151 ) 62 ( 69 ) ( 27 ) 174 53 66 43 Org.growth Org.growth 6.4% +4.9% 1,146 1,041 1,086 2,467 2,533 1,100 Org.growth +1.7% Oil & Gas Telecom Total Consolidated (3) 12 ( 18 ) 62 12 ( 53 ) 223 281 (
Slide 24: Profit and Loss Statement
Profit and Loss Statement Euro Millions 9M 2017 9M 2018 Reported (1) Reported (6) of which Total Total General Cable Sales 7,293 1,246 5,867 YoY total growth 24.3% YoY organic growth 3.8% Adj.EBITDA 577 74 547 % on sales 7.9% 6.0% 9.3% of which share of net income 50 - 36 Adjustments (43) (30) (33)
Slide 25: Cash Flow Statement
Cash Flow Statement Euro Millions 12 Months (from 9M 2018 9M 2017 1/10/2017 to (1) (**) Reported Reported 30/9/2018) Reported Adj.EBITDA 577 547 766 Adjustments (43) (33) (86) EBITDA 534 514 680 Net Change in provisions & others (81) (21) (62) Share of income from investments in op.activities (50) (
Slide 26: Energy Projects Segment – P&L Statement
Energy Projects Segment – P&L Statement (Excl. General Cable) Euro Millions 9M 2018 9M 2017* Sales to Third Parties 1,086 1,041 YoY total growth 4.3% YoY organic growth 6.4% Adj. EBITDA 117 181 % on sales 10.8% 17.4% Adj. EBIT 85 151 % on sales 7.8% 14.5% * Restated according to IFRS 15 26
Slide 27: Energy Products Segment – P&L Statement
Energy Products Segment – P&L Statement (Excl. General Cable) Euro Millions 9M 2018 9M 2017 E&I 2,533 2,467 YoY total growth 2.7% YoY organic growth 1.7% Sales to Third Parties Industrial & Netw. Comp. 1,146 1,100 YoY total growth 4.3% YoY organic growth 4.9% Other 114 105 YoY total growth 7.8% YoY
Slide 28: Oil&Gas Segment – Profit and Loss Statement
Oil&Gas Segment – Profit and Loss Statement (Excl. General Cable) Euro Millions 9M 2018 9M 2017 Sales to Third Parties 194 201 YoY total growth (3.6%) YoY organic growth (0.4%) Adj. EBITDA 2 5 % on sales 1.3% 2.3% Adj. EBIT (4) (8) % on sales (2.0%) (3.8%) 28
Slide 29: Telecom Segment – Profit and Loss Statement
Telecom Segment – Profit and Loss Statement (Excl. General Cable) Euro Millions 9M 2018 9M 2017 Sales to Third Parties 974 953 YoY total growth 2.1% YoY organic growth 6.5% Adj. EBITDA 204 167 % on sales 20.9% 17.6% Adj. EBIT 171 138 % on sales 17.5% 14.5% 29
Slide 30: General Cable Full Combined P&L 9M 2018 by Geography
General Cable Full Combined P&L 9M 2018 by Geography(2) Euro Millions 9M 2018 9M 2017 Sales 1,604 1,577 North America YoY total growth 1.0% YoY organic growth 2.6% Adj.EBITDA 101 122 % on sales 6.3% 7.7% Sales 654 566 YoY total growth 15.5% Europe YoY organic growth 9.8% Adj.EBITDA 25 18 % on sales
Slide 31: Notes
Notes (1) General Cable consolidated in the period 1 June 2018 – 30 September 2018; (2) General Cable included in the period 1 January – 30 September; General Cable figures are restated applying Prysmian accounting principles and policies; 2017 figures excludes General Cable “non-core“ perimeter alr
Slide 32: Disclaimer
Disclaimer • The managers responsible for preparing the company's financial reports, A.Brunetti 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 i