Prysmian S.p.a. · MIL:PRY
Prysmian — FY2021 Earnings Presentation
50 slides from Prysmian's earnings presentation, 2022
Slide 1: FY 2021 Financial Results
FY 2021 Financial Results New submarine cable plant in Brayton Point, Massachusetts, USA
Slide 2: Highlights Results
2021 Financial Appendix Highlights Results Group Overview Outlook
Slide 3: Always Committed to Overdeliver
Always Committed to Overdeliver JULY: UPDATED 2021 MARCH: INITIAL 2021 GUIDANCE GUIDANCE 2021 ACTUAL 2021 ADJ. EBITDA TARGET (€M) 870 940 920 970 976 2021 FCF FCF before acquisition TARGET (€M) & disposals ~ 300 ±20% ~ 300 ±20% 365 © Prysmian Group 2022 2021 3
Slide 4: 2021 Key Highlights
2021 Key Highlights 2021 Guidance exceeded SOUND DEMAND AND STRONG EXECUTION FCF Adj. EBITDA Solid performance across all businesses, with a robust delivery of Projects in Q4 365 €M* 976 €M Resilient margins: 7.7% Adj EBITDA Margin; (8.6% at 2020 metal price; 8.4% in 2020) 2021 Target: 2021 Target :
Slide 5: 2021 Financial Highlights
2021 Financial Highlights SALES ADJ. EBITDA FREE CASH FLOW SALES ORGANIC GROWTH* ADJ. EBITDA ADJ. EBITDA MARGIN FCF** NET DEBT 12,736 €M 11.0% 976 €M 7.7% 365 €M 1,760 €M SOLID ORGANIC GROWTH RESILIENT MARGINS FREE CASH FLOW ▪ +12.3% E&I, mainly driven by T&I ▪ Group margins at 8.6% at 2020 metal ▪
Slide 6: Exceeding pre-pandemic level
Exceeding pre-pandemic level E&I 2021 Org. growth* vs. 2020 and vs. 2019 NORTH AMERICA EMEA 12.3% 4.6% 9.3% vs. vs. 3.3% 10.2% 2019 2020 1.0% Industrial & NWC vs. vs. vs. vs. 2019 2020 2019 2020 8.4% 11.0% 2.3% 2.7% vs. vs. 2019 2020 LATIN AMERICA ASIA PACIFIC vs. vs. 2019 2020 Telecom 11.8% 23.8% 9
Slide 7: Record projects wins and firm backlog
Record projects wins and firm backlog 2021 NEW ORDER: ~ 4.8 € BILLION ONLY FIRM ORDERS IN THE BACKLOG List of main projects awarded in 2021 Included only projects with Notice to Proceed ~ 1.71 €Bn Tyrrhenian link * Underground HV Submarine Commonwealth Wind and Park Wind ~ 900 $M City offshore wind
Slide 8: Reinforcing submarine capacity to further enable Energy Transition
Reinforcing submarine capacity to further enable Energy Transition Finalized agreement to build the new cable plant at Brayton Point Brayton Point (Massachusetts, USA) past Brayton Point (Massachusetts, USA) present Brayton Point (Massachusetts, USA) future Transforming former coal power plant into
Slide 9: Sound performance across all businesses
Sound performance across all businesses Projects Energy Telecom TOTAL 1,438 1,594 +10.2% 7,207 9,557 +10.7% 1,371 1,585 +12.7% 10,016 12,736 +10.9% Sales +13.6% Sales E&I Industrial & NWC 4,735 6,361 +12.3% 2,252 2,838 +8.4% 976 840 356 Adj. Ebitda 210 275 214 220 186 196 Adj. Ebitda Adj. Ebitda % 1
Slide 10: A global recovery: the value of a wide geographical presence
A global recovery: the value of a wide geographical presence Data excluding Projects EMEA NORTH AMERICA LATIN AMERICA ASIA PACIFIC 4,097 5,272 +9.3% 3,016 3,808 +10.2% 723 1,060 +23.8% 742 1,002 +9.6% Sales 345 336 265 197 99 Adj. Ebitda 64 66 5.3% 10.3% 48 11.8% 7.4% 4.8% 5.0% 11.4% 8.8% 8.9% 9.4%
Slide 11: 2 Years of relentless customer focus and efficient operations
2 Years of relentless customer focus and efficient operations Adj EBITDA bridge 2019-2021 (55) Price recovery ongoing 1,007 952 976 Price/Mix Energy and Efficiencies offset raw material and distribution costs inflation Adj Ebitda Forex 2019 @ RM + * Volume Price/Mix Volume Price/Mix Ebitda Efficienc
Slide 12: Executing our commitment on Climate Change
Executing our commitment on Climate Change Prysmian Group 2021 achievement approved by Science Based Targets initiative 192 kton CO2 emissions reduction on Our Targets Scope 1&2 vs 2019 -22.1% -21% Net Zero 870 736 678 Carbon emissions reduction (%) 2019 2020 2021 -46% -22.1% Road to net zero: 100 €
Slide 13: Highlights Results
2021 Financial Appendix Highlights Results Group Overview Outlook
Slide 14: 2022 Outlook: consistent growth and cash generation
2022 Outlook: consistent growth and cash generation 2022 GUIDANCE EXPECTATIONS/ASSUMPTIONS • All businesses and regions expected to contribute to growth ADJ. EBITDA (€M) 1,010 1,080 • Projects to benefit from higher level of backlog, solid execution and full capacity utilization • Reduced uncertaint
Slide 15: Highlights Results
2021 Financial Appendix Highlights Results Group Overview Outlook
Slide 16: Profit and Loss Statement
Profit and Loss Statement Euro Millions 2021 2020 Adj. EBITDA Bridge SALES 12,736 10,016 Q1 Q2 Q3 Q4 FY YoY total growth 27.1% YoY organic growth 10.9% ADJ. EBITDA 2020 197 222 228 193 840 Adj.EBITDA 976 840 Projects (7) 3 (2) 30 24 % on sales 7.7% 8.4% Energy 13 20 35 38 106 of which share of net i
Slide 17: Statement of financial position (Balance Sheet)
Statement of financial position (Balance Sheet) Euro Millions 31 Dec 2021 31 Dec 2020 Net fixed assets 5,304 4,971 of which: goodwill 1,643 1,508 Net working capital 650 523 of which: derivatives assets/(liabilities) 174 91 of which: Operative Net working capital 476 432 Provisions & deferred taxes
Slide 18: Cash Flow
Cash Flow NET DEBT EVOLUTION +365 €M Free Cash Flow ( 883) 93 ( 30 ) (8 ) ( 58 ) 134 79 120 275 28 24 1,986 1,760 o/w 228 €M metal price impact 31-Dec-20 Cash flow WC Restructuring Net Operative Financial Paid income Dividend Antitrust Dividend Acquisitions & Other 31-Dec-21 operations changes costs
Slide 19: Consistent long term Cash Flow generation
Consistent long term Cash Flow generation NET DEBT EVOLUTION (2018-2021) 4 years NET DEBT (2011-2021) 11 years ~ 350 €M FCF avg/year ~ 290 €M FCF avg/year (~ 250 €M in 2011-2017) (3,058) ND pro-forma 2010** 1,214 341 FCF ex-acquisition (3,213) 105 Dividends & Buy back 1,096 428 61 Acquisition 2,932
Slide 20: Focused on generating Shareholders Value
Focused on generating Shareholders Value Dividend proposal to the next AGM: € 0.55, +10% increase Dividend per Share TSR Dividend Yield (1) FCF Yield 0.55 15.9% 196% 1.8% 4.6% euro per share in 2021 since IPO* DPS evolution (Euro per share) +10% Draka acquisition Covid-19 0.50 0.55 0.417 0.417 0.417
Slide 21: Highlights Results
2021 Financial Appendix Highlights Results Group Overview Outlook
Slide 22: Resilience and Growth: investing to fuel future growth
Resilience and Growth: investing to fuel future growth Adj. EBITDA evolution (€M) 1,007 976 by Business 940 932 840 ENERGY 546 PROJECTS 395 372 505 440 TELECOM 298 295 274 214 220 GROUP 247 265 228 186 210 2017 2018 2019 2020 2021 medium term Capex Trend by Business 2017-2025 (€M) Consistent Investm
Slide 23: 2021 Financial highlights
2021 Financial highlights | Euro Millions, % on Sales SALES ADJUSTED EBITDA (1) 2.7%* -8.3%* 11.0%* 1,007 976 840 11,519 12,736 10,016 8.7% 8.4% 7.7% 2019 2020 2021 2019 2020 2021 REPORTED OPERATIVE NET WORKING CAPITAL (2) REPORTED NET FINANCIAL DEBT 749 2,140 1,986 476 1,760 432 6.5% 4.3% 3.5% DEC-
Slide 24: 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 +4.6% +2.3% +3.8% Org. growth +12.3% +8.4% +10.7% 6,361 2,838 2,492 Sales 5,285 2,252 9,557 4,735 8,027 7,207 FY FY FY FY FY FY FY FY FY 2019 2020 2021 2019 2020 2021 2019 2020 2021 505 546 356 440 3
Slide 25: A recovery path to pre-pandemic levels
A recovery path to pre-pandemic levels ENERGY 16.3% 13.9% 9.7% 1.7% 1.8% 3.4% GROUP -1.1% -2.7% 16.9% -2.4% -4.2% -4.9% 13.2% 9.8% 3.1% 2.4% 4.6% -16.1% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 19 19 19 19 20 20 20 20 21 21 21 21 -1.7% -3.9% -5.4% -5.2% -4.8% TELECOM -17.0% 19.6% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Slide 26: Profit and Loss Statement
Profit and Loss Statement Euro Millions 2021 2020 SALES 12,736 10,016 YoY total growth 27.1% YoY organic growth 10.9% Adj.EBITDA 976 840 % on sales 7.7% 8.4% of which share of net income 18 18 Adjustments (49) (59) Adjustments and Special Items on EBIT EBITDA 927 781 FY2021 FY 2020 % on sales 7.3% 7
Slide 27: Projects
Projects Euro Millions, % on Sales SALES HIGHLIGHTS +10.2%* SUBMARINE / Sound execution with acceleration in Q4 as expected / Tendering activity ongoing, with a solid pipeline of projects (interconnections and off-shore wind farms) / Submarine backlog further increased to over 2.3 €Bn 1,438 1,594 UN
Slide 28: Energy & Infrastructure
Energy & Infrastructure Euro Millions, % on Sales SALES HIGHLIGHTS +12.3%* TRADE & INSTALLERS / Strong organic growth continued in Q4 in all regions, mainly in the US / Margins improvement driven by volume and costs efficiency offsetting raw material costs increase 6,361 4,735 POWER DISTRIBUTION / P
Slide 29: Industrial & Network Components
Industrial & Network Components Euro Millions, % on Sales SALES HIGHLIGHTS +8.4%* SPECIALTIES, OEM & RENEWABLES / Overall positive performance. Good performances of Renewables, Infrastructure and Defence, partially offset by Railways and Nuclear. 2,838 ELEVATOR 2,252 / Completed the acquisition of E
Slide 30: Telecom
Telecom Euro Millions, % on Sales SALES HIGHLIGHTS +12.7%* OPTICAL CABLE & FIBRE / Sound volume trend especially in the US. / Cost efficiency measures and mix partly offsetting price pressure / 14 €M of YOFC contribution, in line with previous year 1,371 1,585 MMS / Solid organic growth confirmed in
Slide 31: Financial Highlights
Financial Highlights Euro Millions Sales Adj.EBITDA FY 2021 FY 2020 FY 2021 FY 2020 organic Adj.EBITDA Adj.EBITDA €M €M €M €M growth Margin Margin PROJECTS 1,594 10.2% 1,438 210 13.2% 186 13.0% Energy & Infrastructure 6,361 12.3% 4,735 356 5.6% 275 5.8% Industrial & Network Components 2,838 8.4% 2,2
Slide 32: Cash Flow Statement
Cash Flow Statement 31 Dec 2021 31 Dec 2020 Euro Millions Adj.EBITDA Adjustments 976 (49) 840 (59) EBITDA 927 781 Net Change in provisions & others 17 (183) Share of income from investments in op.activities (27) (18) Cash flow from operations (before WC changes) 917 580 Working Capital changes (28)
Slide 33: Prysmian Group Liquidity and Debt Profile
Prysmian Group Liquidity and Debt Profile COMFORTABLE LIQUIDITY POSITION: ▪ Average debt maturity of 2.9 years after 135 €M new EIB Loan drawn down on 28th January 2022 ▪ 1,0 €Bn of committed Revolving Credit Facility fully unutilized ▪ Approx. 2,0 €Bn cash on balance as of 31st December 2021 CURREN
Slide 34: Bridge Consolidation Sales
Bridge Consolidation Sales Euro Millions PROJECTS ENERGY & INFRASTRUCTURE 146 23 ( 13 ) 1,153 ( 110 ) 583 Org.growth 1,594 Org.growth 6,361 1,438 10.2% 4,735 12.3% TOTAL CONSOLIDATED 2020 Organic Metal Exchange 2021 1,766 ( 211 ) 73 2020 Organic Metal Exchange 2021 Growth Effect Rate Growth Effect R
Slide 35: Prysmian group at a glance 2021 Financial Results
Prysmian group at a glance 2021 Financial Results SALES BREAKDOWN BY BUSINESS SALES BREAKDOWN BY GEOGRAPHY Latam 9% Telecom Energy & €12.7 BN €12.7 BN 12% Infrastructure 50% North America EMEA Energy Industrial & 31% 52% 75% Network Components 22% Projects Other 3% 13% APAC 8% Adj. EBITDA BY BUSINES
Slide 36: Projects 2021 sales breakdown
Projects 2021 sales breakdown SALES BREAKDOWN BY BUSINESS SALES BREAKDOWN BY GEOGRAPHY High Voltage North America LATAM 39% 6% 3% Submarine Energy APAC 53% 6% Offshore €1.6 BN specialities EMEA €1.6 BN 4% 85% Submarine TLC 4% © Prysmian Group 2022 2020 36
Slide 37: Energy & Infrastructure 2021 sales breakdown
Energy & Infrastructure 2021 sales breakdown SALES BREAKDOWN BY BUSINESS SALES BREAKDOWN BY GEOGRAPHY Power Distribution North America 31% 33% EMEA 50% Trade & Installers 66% Overhead €6.4 BN 3% €6.4 BN APAC LATAM 6% 11% © Prysmian Group 2022 2020 37
Slide 38: Industrial & Network Components 2021 sales breakdown
Industrial & Network Components 2021 sales breakdown SALES BREAKDOWN BY BUSINESS SALES BREAKDOWN BY GEOGRAPHY Network Components Core Oil & Gas 5% EMEA products 37% Other 8% North America Industrial 38% 12% Elevators 12% Specialties, OEM & €2.8 BN Renewables €2.8 BN 41% Automotive APAC LatAm 22% 17%
Slide 39: Telecom 2021 sales breakdown
Telecom 2021 sales breakdown SALES BREAKDOWN BY BUSINESS SALES BREAKDOWN BY GEOGRAPHY EMEA North America MMS 53% 33% 32% LatAm Fiber 8% 4% €1.6 BN Telecom €1.6 BN Solutions 64% APAC 6% © Prysmian Group 2022 2020 39
Slide 40: Cash generation as key priority to create value for shareholders
Cash generation as key priority to create value for shareholders More than 3.1 €Bn of Free Cash Flow generated and approx. 1 €Bn of dividends distributed in 2011-2021 Free Cash Flow excl. Acquisition (L Axis) Total Dividends Paid (L Axis) Net Financial Debt / Adj.EBITDA ratio (R Axis) 500 3.2x 3.5x
Slide 41: 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 42: German Corridors 2021 Achievements
German Corridors 2021 Achievements 525kV HVDC Technology Product Qualifications & Testing Prysmian has completed all PREQUALIFICATIONS and TYPE SUSTAINABLE HIGHER FASTER TESTS ON SCHEDULE PERFORMANCE OPERATIONS 100% Recyclable State of the Art High Voltage Electrical 90⁰C service temp One step proce
Slide 43: Industry Best Technologies Suite
Industry Best Technologies Suite HVDC Technologies HVAC Technologies XLPE MI XLPE ± 600 kV | 3000 MW ± 525 kV | 2400 MW ± 275 kV | 500 MVA EPR ± 72.5 kV | 90 MVA P-LASER MI-PPL XLPE ± 600 kV | 3500 MW ± 700 kV | 3400 MW ± 420 kV | 1200 MVA fixed windfarms floating windfarms HV Land Export static Int
Slide 44: Prysmian Group ranks 1st in the DJSI Sustainability Index
Prysmian Group ranks 1st in the DJSI Sustainability Index Prysmian Group ranks 1st in the Dow Jones Sustainability World Index Prysmian Group, world leader in the energy and telecom cables systems industry, ranks first with 87 points in the ELQ Electrical Components & Equipments on the Dow Jones Sus
Slide 45: Prysmian Group in the Sustainability Indexes
Prysmian Group in the Sustainability Indexes 2021 Score: AA 2021 Score: 87/100; 2021: Included in ESG MIB 2021: Included in the Italian 1st in ELQ World Index; Score: EE+ 2021 Score Climate 2021 Score: 51/100 2021 Score: 3.8/5 2021 Score: 55/100 Change: B (World) 2021: Included (STOXX 2021 Score: 22
Slide 46: 2022 Prysmian Group Scorecard
2022 Prysmian Group Scorecard SDGs KPI Baseline 2019 2020 2021 Target 2022 Percentage of product families covered by the carbon footprint measurement 3 70% 84% 89% 85% Percentage of annual revenues from low carbon-enabling products 4 48% 48% 44% 48% to 50% Percentage reduction in the emissions of gr
Slide 47: 2022 Prysmian Group Scorecard
2022 Prysmian Group Scorecard SDGs KPI Baseline 2019 2020 2021 Target 2022 Percentage of cables assessed using Ecolabel criteria developed internally by Prysmian 0% 1% 20.9% 20% Employee Engagement Index (EI) 6 65% 65% 60% 67% to 70% Leadership Impact Index (LI) 6 57% 54% 54% 59% to 65% Average hour
Slide 48: 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 value takes into account possible changes in the product portfolio, and consequently in the number of item
Slide 49: 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 50: Thank you
Thank you prysmiangroup.com