Prysmian S.p.a. · MIL:PRY
Prysmian — Q1 2021 Earnings Presentation
36 slides from Prysmian's earnings presentation, May 13, 2021
Slide 1: 1Q 2021 Financial Results
1Q 2021 Financial Results Milan, 13 May 2021
Slide 2: Highlights
1Q 2021 Financial Appendix Highlights Results 2
Slide 3: 1Q 2021: A Solid Start of the Year
1Q 2021: A Solid Start of the Year SOLID START OF THE YEAR: +4.6% Organic Growth* PROJECTS: EXECUTION & INTAKE Strong recovery of Telecom and Energy Business demand driven by construction and renewables Sofia offshore wind project award worth over 200 €M RESILIENT MARGINS: 7.6% Adj EBITDA Margin Com
Slide 4: 1Q 2021 Financial highlights
1Q 2021 Financial highlights SALES ADJ. EBITDA FREE CASH FLOW SALES ORGANIC GROWTH* ADJ. EBITDA ADJ. EBITDA MARGIN FCF LTM NET DEBT 2,810 €M +4.6% 213 €M 7.6% 553 €M 2,325 €M SOLID ORGANIC GROWTH RESILIENT MARGINS FREE CASH FLOW +11.4% Telecom, with strong sequential Energy Business margins higher t
Slide 5: Sound performance in Energy and Telecom; phasing affecting Projects
Sound performance in Energy and Telecom; phasing affecting Projects Projects Energy Telecom TOTAL 347 314 -7.9% 1,888 2,114 +3.4% 352 382 +11.4% 2,587 2,810 +3.0% Sales Sales E&I Industrial & NWC ( 14 ) 1,239 1,400 +3.5% 598 648 +3.5% forex 197 75 68 213 58 45 49 48 36 Adj. Ebitda Adj. Ebitda 29 10.
Slide 6: Energy and Telecom: a promising recovery path
Energy and Telecom: a promising recovery path ENERGY TELECOM 2021 2019 2019 2021 2020 2020 Monthly volume evolution baseline: Jan 2019 Optical cable business only in Telecom © Prysmian Group 2021 6
Slide 7: Energy Business: Higher than Pre-Covid levels
Energy Business: Higher than Pre-Covid levels EMEA NORTH AMERICA 2021 2021 2019 2019 2020 2020 APAC 2019 130 2021 2020 100 70 LATIN AMERICA 2021 130 2020 2019 GROUP 2021 110 2019 2020 90 Jan Feb Mar Monthly Volume Evolution baseline: Jan 2019 E&I + Industrial © Prysmian Group 2021 7
Slide 8: Energy Business better than Pre-pandemic level
Energy Business better than Pre-pandemic level E&I Industrial & NWC Total Energy +3.5%* * Organic growth -3.4%* +3.5%* -0.3%* -2.4%* +3.4%* 1,310 1,400 1,239 2,114 Sales 599 648 1,967 1,888 598 1Q 1Q 1Q 1Q 1Q 1Q 1Q 1Q 1Q 2019 2020 2021 2019 2020 2021 2019 2020 2021 75 69 68 113 126 112 41 45 49 Adj.
Slide 9: A global recovery: the value of a wide geographical presence
A global recovery: the value of a wide geographical presence EMEA* NORTH AMERICA* LATIN AMERICA* ASIA PACIFIC* TOTAL GROUP 1,070 1,192 +3.9% 840 868 -0.9% 172 226 +27.9% 158 210 +14.1% 2,587 2,810 +4.6%* Sales Sales 213 95 197 87 Projects 29 58 36 52 Adj. Ebitda Adj. Ebitda 21 13 18 1 6 Regions 184
Slide 10: Main takeaways and priorities
Main takeaways and priorities ENERGY TELECOM PROJECTS Keep protecting Leveraging on volume Solid market outlook: profitability: coping with rebound and cost focus on tendering activity A CABLE SOLUTIONS cost inflation and raw actions to balance price and smooth execution PROVIDER material availabili
Slide 11: Financial Results
1Q 2021 Financial Appendix Highlights Results © Prysmian Group 2021 11
Slide 12: Profit and Loss Statement
Profit and Loss Statement Euro Millions 1Q 2021 1Q 2020 Adj. EBITDA Bridge SALES 2,810 2,587 Q1 YoY total growth 8.6% YoY organic growth 3.0% ADJ. EBITDA 2020 197 Adj.EBITDA 213 197 Projects (7) % on sales 7.6% 7.6% Energy 13 of which share of net income 6 1 Telecom (ex-share of net income) 5 Adjust
Slide 13: Statement of financial position (Balance Sheet)
Statement of financial position (Balance Sheet) Euro Millions 31 Mar 2021 31 Mar 2020 31 Dec 2020 Net fixed assets 5,110 5,258 4,971 of which: goodwill 1,607 1,612 1,508 Net working capital 1,071 1,122 523 of which: derivatives assets/(liabilities) 171 (61) 91 of which: Operative Net working capital
Slide 14: Cash Flow
Cash Flow Euro Millions NET DEBT EVOLUTION +441 €M Free Cash Flow ( 813 ) 78 ( 36 ) 84 ( 36 ) 137 ( 9) 70 221 90 ( 255 ) 112 76 2,606 2,325 31-mar-20 Cash flow WC Restruct, non Antitrust Net Operative Financial Paid income Dividend Dividend Acquisitions Proceed & IFRS 16 Other 31-mar-21 operations c
Slide 15: Appendix
1Q 2021 Financial Appendix Highlights Results 15
Slide 16: Energy and Telecom: a recovery path to pre-pandemic levels
Energy and Telecom: a recovery path to pre-pandemic levels ENERGY E&I 1.7% 1.8% 3.4% 3.4% 2.8% 3.5% -1.1% 1.0% -2.7% -2.4% -4.5% -3.4% -4.2% -4.9% -4.4%-4.0% GROUP -16.1% -17.0% 3.1% 2.4% 4.6% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 19 19 19 19 20 20 20 20 21 19 19 19 19 20 20 20 20 21
Slide 17: A global recovery
A global recovery EMEA 3.9% 2.0% 1.8% NORTH AMERICA 4.7% 3.8% -4.7% -4.9% -4.4% -4.2% 3.3% -7.4% 0.0% -1.0% -0.9% -6.2% -7.9% -18.1% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 19 19 19 19 20 20 20 20 21 ASIA PACIFIC -14.6% 14.1% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 19 19 19 19 20 20 20 20 21 1.6% 1.0% GROUP -0.5% -1.8% -9.3%
Slide 18: 1Q 2021 Financial highlights
1Q 2021 Financial highlights Euro Millions, % on Sales SALES ADJUSTED EBITDA (1) +3.0%* ( 14 ) 2,587 2,810 197 forex 213 7.6% 7.6% 1Q 2020 1Q 2021 1Q 2020 1Q 2021 REPORTED OPERATIVE NET WORKING CAPITAL (2) REPORTED NET FINANCIAL DEBT 1,183 2,606 2,325 1,986 900 432 4.3% 11.4% 8.0% DEC-20 MAR-20 MAR-
Slide 19: Profit and Loss Statement
Profit and Loss Statement Euro Millions 1Q 2021 1Q 2020 SALES 2,810 2,587 YoY total growth 8.6% YoY organic growth 3.0% Adj.EBITDA 213 197 % on sales 7.6% 7.6% of which share of net income 6 1 Adjustments (14) (14) Adjustments and Special Items on EBIT EBITDA 199 183 % on sales 7.1% 7.1% 1Q 2021 1Q
Slide 20: Projects Business: Enabling Energy Transition
Projects Business: Enabling Energy Transition WELL POSITION TO CAPTURE MARKET OPPORTUNITIES: 7.2 €BN ORDERS/YEAR EXPECTED Robust market growth The highest installation capabilities Driving Innovation 7.2 3 Vessels Industry first to qualify both 525kV XLPE and P Laser solutions Interconnectors 2.4 Th
Slide 21: Projects
Projects Euro Millions, % on Sales SALES HIGHLIGHTS -7.9%* SUBMARINE / Unfavorable projects mix and undersaturation of extruded capacity affecting Submarine trend / Tendering activity ongoing, with a solid pipeline of projects (interconnections and off-shore wind farms) / Sofia offshore wind project
Slide 22: Energy & Infrastructure
Energy & Infrastructure Euro Millions, % on Sales SALES HIGHLIGHTS 3.5%* TRADE & INSTALLERS / Strong organic growth driven by EMEA (mainly Southern Europe, CEE and North Europe), APAC and LATAM / Margins improvement driven by volume and costs efficiency offsetting raw material costs increase POWER D
Slide 23: Industrial & Network Components
Industrial & Network Components Euro Millions, % on Sales SALES HIGHLIGHTS 3.5%* SPECIALTIES, OEM & RENEWABLES Overall positive performance and resilience to Covid-19. Solid performances of Railways, Infrastructure Wind and Solar, partially offset by Rolling Stock del Cranes e del Nuclear. ELEVATOR
Slide 24: Telecom
Telecom Euro Millions, % on Sales SALES HIGHLIGHTS 11.4%* OPTICAL CABLE & FIBRE / Strong sequential improvement in all regions / Cost efficiency measures partly offsetting price pressure and other headwinds / Positive carry-over from YOFC 2020 actual results (4 €M) 352 382 MMS / Sequential improveme
Slide 25: 2021 Outlook confirmed
2021 Outlook confirmed 2021 ADJ. EBITDA TARGET (€M) 2021 FCF TARGET (€M) 870 940 FCF before acquisition & disposals ~ 300 ±20% 32 20-25 forex forex 870 - 940 840 2020 Projects Energy Telecom Forex 2021 Adj. Ebitda Adj. Ebitda Assuming no relevant Covid disruption on current trend; Assumed no cash-ou
Slide 26: Prysmian Climate Change Ambition and Targets
Prysmian Climate Change Ambition and Targets OUR NET ZERO CLIMATE AMBITION Prysmian Group has set carbon reduction targets aligned with the Science Based Targets initiative and Net Zero ambition Net Zero between 2035 and 2040 for our Scope 1&2 emissions, -46% 2030 Scope 1&2 interim target and by 205
Slide 27: Telecom Business Secular growth drivers
Telecom Business Secular growth drivers MARKET OPPORTUNITIES & CUSTOMER NEEDS OUR APPROACH & SOLUTIONS FIBER DENSITY World record / More fiber per mm2 in DENSITY / Ubiquity by optimizing the AND MINIATURIZATION roll-out Capex RELIABILITY / FUTUREPROOFNESS Best in class / Easy-to-install products for
Slide 28: 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 29: World leader in the energy and telecom cable systems industry
Prysmian Group World leader in the energy and telecom cable systems industry Energy Projects Industrial & Network Telecom Energy & Infrastructure Components High Voltage Trade & Installers Core Oil & Gas products Telecom solutions Specialties, OEM & Submarine Energy Power Distribution Optical Fibre
Slide 30: Financial Highlights
Financial Highlights Euro Millions Sales Adj.EBITDA 1Q 2021 1Q 2020 1Q 2021 1Q 2020 organic Adj.EBITDA Adj.EBITDA €M €M €M €M growth Margin Margin PROJECTS 314 -7.9% 347 29 9.3% 36 10.4% Energy & Infrastructure 1,400 3.5% 1,239 75 5.3% 68 5.5% Industrial & Network Components 648 3.5% 598 49 7.6% 45
Slide 31: Cash Flow Statement
Cash Flow Statement 31 Mar 2021 31 Mar 2020 12 Months (from 1/4/2020 to 31/3/2021) Euro Millions Adj.EBITDA 213 197 856 Adjustments (14) (14) (59) EBITDA 199 183 797 Net Change in provisions & others (10) (44) (149) Share of income from investments in op.activities (6) (1) (23) Cash flow from operat
Slide 32: Prysmian Group liquidity and debt profile
Prysmian Group liquidity and debt profile COMFORTABLE LIQUIDITY POSITION: / Average debt maturity increased to 3.5 years after 750 €M Equity Linked Bonds issued on 2nd February 2021 / 1,0 €Bn of committed Revolving Credit Facility fully unutilized CURRENT FINANCIAL DEBT MATURITY PROFILE(*) UNICREDIT
Slide 33: Bridge Consolidation Sales
Bridge Consolidation Sales Euro Millions PROJECTS ENERGY & INFRASTRUCTURE ( 27 ) 2 ( 8) 201 ( 83 ) 43 Org.growth Org.growth 347 314 -7.9% 1,239 3.5% 1,400 TOTAL CONSOLIDATED 1Q 2020 Organic Metal Exchange 1Q 2021 1Q 2020 Organic Metal Exchange 1Q 2021 ( 158) Growth Effect Rate Growth Effect Rate 287
Slide 34: 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; © Prysmian Group 2021 34
Slide 35: 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 36: Thank you
Thank you prysmiangroup.com