Prysmian S.p.a. · MIL:PRY
Prysmian — Q1 2020 Earnings Presentation
30 slides from Prysmian's earnings presentation, May 12, 2020
Slide 1: First Quarter 2020 Financial Results
First Quarter 2020 Financial Results MILAN – May 12th, 2020
Slide 2: Agenda
Agenda Q1 2020 Financial Appendix Highlights Results Group overview COVID-19 Outlook 2
Slide 3: First quarter 2020 Highlights
First quarter 2020 Highlights Organic sales at -5.4%, mainly driven by: • Sharp decline as expected in Telecom (-19%), also affected by tough comp with Q1 2019 Organic sales growth • Weak trend in E&I (-3.4%) mainly driven by T&I (-6.6%) from 2nd week on March (COVID-related), after a solid start of
Slide 4: Financial Highlights
Financial Highlights | Euro Millions, % on Sales Sales (3) Adjusted EBITDA (1) -5.4%* 231 2,771 2,587 197 8.3% 7.6% Q1 2019 Q1 2020 Q1 2019 Q1 2020 Reported Operative Net Working Capital (2)(3) Reported Net Financial Debt 1,361 1,183 2,900 2,606 749 2,140 6.5% 12.3% 11.4% DEC-19 MAR-19 MAR-20 14.7%
Slide 5: Sales & Adj. EBITDA by Business
Sales & Adj. EBITDA by Business | Euro Millions, % on Sales, Projects Energy Telecom TOTAL 347 -5.5% 1,888 -2.4% 352 -19.0% 2,587 -5.4% Sales E&I Industrial & NWC 1,239 -3.4% 598 -0.3% 80 69 68 8 231 41 45 48 197 39 36 1 Adj. Ebitda 10.6% 10.4% 5.2% 5.5% 6.9% 7.5% 18.4% 13.6% Q1 2019 Q1 2020 Q1 2019
Slide 6: Energy Transition: Focus on German HV projects
Energy Transition | Focus on German HV projects 2 projects already awarded SuedOstLink ▪ Client: TenneT TSO GmbH Prysmian awarded 1,100 km cable ▪ Type of cable: 525 kV extruded €500 million 5 lots contract; ▪ Completion date: early 2026 ~50% of project A-Nord ▪ Client: AMPRION GmbH Prysmian awarded
Slide 7: Sales & Adj. EBITDA by Geography
Sales & Adj. EBITDA by Geography | Euro Millions, % on Sales EMEA NORTH AMERICA LATIN AMERICA ASIA PACIFIC TOTAL -6.1% +3.6% -14.6% -24.9% -5.4% 1,375 864 180 168 2,587 Sales -7.4% +3.3% -13.4% -20.5% -5.4% 109 85 97 85 231 197 22 Adj. Ebitda 14 15 1 7.3% 6.2% 10.2% 11.3% 9.8% 7.9% 6.7% 0.4% Q1 2019
Slide 8: Agenda
Agenda Q1 2020 Financial Appendix Highlights Results Group overview COVID-19 Outlook 8
Slide 9: Protecting Value and Improving resilience in a challenging environment
Protecting Value and Improving resilience in a challenging environment Prysmian has implemented the highest Safety and Monitoring standard and Mitigation Actions to manage and control the development of COVID-19 Safeguarde Group employees: Support operations: • Preserving permanent employment • Resp
Slide 10: E&I Trading update: Monthly Volume Evolution
E&I Trading update | Monthly Volume Evolution 2019 150 2020 150 100 100 50 Jan Feb Mar Apr 150 50 Northen Europe Jan Feb Mar Apr 150 UK 100 150 100 50 100 150 Jan Feb Mar Apr 50 North America Jan Feb Mar Apr 50 Jan Feb Mar Apr CEE 100 South Europe 50 150 150 Jan Feb Mar Apr APAC 100 100 50 Jan Feb M
Slide 11: Agenda
Agenda Q1 2020 Financial Appendix Highlights Results Group overview COVID-19 Outlook 11
Slide 12: Looking Ahead
Looking Ahead Enter the pandemic with strong fundamentals (business and geographical mix, strong balance sheet, responsive supply chain, lean organization) Growth secular drivers unaffected (Energy Transition, Telecommunication Network, Electrification) Prepared for a challenging Q2 Proven capabilit
Slide 13: Agenda
Agenda Q1 2020 Financial Appendix Highlights Results Group overview COVID-19 Outlook 13
Slide 14: Profit and Loss Statement
Profit and Loss Statement | Euro Millions Q1 2020 Q1 2019 SALES 2,587 2,771 Adj. EBITDA Bridge YoY total growth combined (6.6%) YoY organic growth (5.4%) Q1 Adj.EBITDA 197 231 % on sales 7.6% 8.3% ADJ. EBITDA 2019 231 of which share of net income 1 8 Projects (3) Adjustments (14) (11) Energy 1 EBITD
Slide 15: Profit and Loss Statement
Profit and Loss Statement | Euro Millions Q1 2020 Q1 2019 SALES 2,587 2,771 YoY total growth combined (6.6%) YoY organic growth (5.4%) Adj.EBITDA 197 231 % on sales 7.6% 8.3% of which share of net income 1 8 Adjustments (14) (11) Financial Charges EBITDA 183 220 Q1 2020 Q1 2019 % on sales 7.1% 7.9%
Slide 16: Statement of financial position (Balance Sheet)
Statement of financial position (Balance Sheet) | Euro Millions (3) 31 Mar 2020 31 Mar 2019 31 Dec 2019 Net fixed assets 5,258 5,286 5,301 of which: goodwill 1,612 1,589 1,590 Net working capital 1,122 1,367 755 of which: derivatives assets/(liabilities) (61) 6 6 of which: Operative Net working capi
Slide 17: Cash Flow
Cash Flow | Euro Millions Net debt evolution LTM +538 €M Free Cash Flow ( 959 ) 64 66 107 (10 ) 114 91 264 ( 228 ) 102 95 2,900 2,606 31-Mar-19 Cash flow WC WL Restruct & Net Financial Paid Dividend Dividend IFRS 16 Other 31-Mar-20 operations changes impact integration Operative Charges income recei
Slide 18: Prysmian Group Liquidity and Debt Profile
Prysmian Group Liquidity and Debt Profile COMFORTABLE LIQUIDITY POSITION: • Cash on balance at March end in excess of 600 €M plus 1 €Bn of committed Revolving Credit Facility fully unutilized and 400 €M of uncommitted credit lines • Average debt maturity of 3.1 years with no refinancing needs before
Slide 19: Agenda
Agenda Q1 2020 Financial Appendix Highlights Results Group overview COVID-19 Outlook 19
Slide 20: Performance by Segment
Performance by Segment | Euro Millions, % on Sales Q1 2019 Q1 2020 18.4% Adj. EBITDA Margin 13.6% 10.6% 10.4% 6.9% 7.5% 8.3% 7.6% 5.2% 5.5% Project E&I Industrial & NWC. Telecom Total Q1 2019 Q1 2020 ±X.X% = Sales Organic Trend Adj. EBITDA (€M) / % Org. Growth -5.4% -5.5% -3.4% -0.3% -19.0% 231 197
Slide 21: Projects
Projects | Euro Millions, % on Sales SALES HIGHLIGHTS -5.5%* SUBMARINE • Stable results • Business ongoing as expected, no interruption related to COVID-19 • Tendering activity ongoing, with a solid pipeline of projects (interconnections and off-shore wind farms) 368 347 UNDERGROUND HIGH VOLTAGE • N
Slide 22: Energy & Infrastructure
Energy & Infrastructure | Euro Millions, % on Sales SALES (5) HIGHLIGHTS TRADE & INSTALLERS -3.4%* • Negative performance driven by EMEA (South Europe) and APAC • COVID-19 impact starting form 2nd week of March POWER DISTRIBUTION 1,310 1,239 • Volume stable, positively impacted by North America tren
Slide 23: Industrial & Network Components
Industrial & Network Components | Euro Millions, % on Sales SALES (5) HIGHLIGHTS -0.3%* SPECIALTIES, OEM & RENEWABLES • Negative trend in Mining, Solar, Infrastructure and Renewables due to CODIV-19, partially offset by Railways and OEM helped by current backlog 599 598 ELEVATOR • Negative organic g
Slide 24: Telecom
Telecom | Euro Millions, % on Sales SALES HIGHLIGHTS -19.0%* OPTICAL CABLE & FIBRE • Material drop as expected, driven by lower volume and price pressure, partially offset by cost efficiency. • Sharp drop of YOFC Q1 results due to COVID-19 impact 436 352 MMS • Solid performance in Q1, slowdown expec
Slide 25: Cash Flow Statement
Cash Flow Statement | Euro Millions 12 Months 31 Mar 2020 31 Mar 2019 (from 1/4/2019 to 31/3/2020) Adj.EBITDA 197 231 973 Adjustments (14) (11) (103) EBITDA 183 220 870 Net Change in provisions & others (44) (26) (91) Share of income from investments in op.activities (1) (8) (17) Cash flow from oper
Slide 26: Financial Highlights
Financial Highlights | Euro Millions Sales Adj.EBITDA Q1 2020 Q1 2019 Q1 2020 Q1 2019 organic Adj.EBITDA Adj.EBITDA €M €M €M €M growth Margin Margin PROJECTS 347 -5.5% 368 36 10.4% 39 10.6% Energy & Infrastructure 1,239 -3.4% 1,310 68 5.5% 69 5.2% Industrial & Network Components 598 -0.3% 599 45 7.5
Slide 27: Bridge Consolidation Sales
Bridge Consolidation Sales | Euro Millions Projects Energy & Infrastructure ( 20 ) - ( 1 ) ( 45 ) ( 24 ) ( 2) 368 Org.growth 347 1,310 Org.growth Total Consolidated 1,239 -5.5% -3.4% ( 150 ) ( 36 ) 2 Q1 2019 Organic Metal Exchange Q1 2020 Q1 2019 Organic Metal Exchange Q1 2020 Growth Effect Rate & G
Slide 28: 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; (3) The Q1 2019 figures have been restated due to definition of the purchase price allocation for General Cable
Slide 29: 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
Slide 30: Thank you
Thank you prysmiangroup.com