Prysmian S.p.a. · MIL:PRY
Prysmian — Exane BNP Paribas SRI Conference 2013
83 slides from Prysmian's conference presentation, Nov 27, 2013
Slide 1: Company Presentation
Company Presentation Exane BNP Paribas SRI Conference Paris - November 27th, 2013 Company Presentation – November 2013 1
Slide 2: Agenda
AGENDA Group Overview & 2013 Outlook Corporate Social Responsibility Draka integration Financial Results Appendix Company Presentation – November 2013 2
Slide 3: Prysmian Group at a glance
Prysmian Group at a glance 9M 2013 Results Sales breakdown by geography Sales breakdown by business APAC 14% Telecom 17% Utilities Latin 30% America Other 9% 2% € 5.5 bn € 5.5 bn N. America 14% Industrial EMEA 24% 63% T&I 27% Adj. EBITDA by business Adj. EBITDA margin by business Telecom 20% 11.7% U
Slide 4: Long Cycle Businesses Vs. Short Cycle Businesses
Long Cycle Businesses Vs. Short Cycle Businesses Adj. EBITDA breakdown Long Cycle Businesses Short Cycle Businesses Short Cycle Businesses Adj. EBITDA 66% 34% (Combined Prysmian + Draka) • Profitability: stable at bottom level (excl. synergies contribution) Utilities Utilities • Over 50% profitabili
Slide 5: 9M 2013 Key Financials
9M 2013 Key Financials Euro Millions, % on Sales Sales Adjusted EBITDA (3) Adjusted EBIT (4) -1.8%* 647 7,973 7,848 586 483 -3.9%* 435 468 444 5,930 349 329 5,488 2011(1) 2012 9M'12 9M'13 2011 (1) 2012 9M'12 9M'13 2011 (1) 2012 9M'12 9M'13 * Org. Growth 7.3% 8.2% 7.9% 8.1% 5.5% 6.2% 5.9% 6.0% Adjust
Slide 6: Organic Growth and adj. EBITDA evolution
Organic Growth and adj. EBITDA evolution Sales stabilizing at bottom level in Europe. Profitability sustained by synergies and Transmission Organic Growth evolution Adj. EBITDA evolution % change on previous year period Euro million 468 Utilities T&I Industrial Telecom Total 2012 2013 444 7.8% 178 1
Slide 7: Utilities
Utilities Euro Millions, % on Sales Sales to Third Parties Highlights DISTRIBUTION +1.1%* • As expected no signs of recovery in H2’13. Further deterioration in demand 2,318 2,287 due to lower power consumption and weak European construction. Limited -0.8%* margin decrease thanks to on-going cost rat
Slide 8: Utilities – Submarine as key driver of profitability increase
Utilities – Submarine as key driver of profitability increase Record Order-book despite European outlook confirms commitment on renewables and interconnections Sales breakdown Orders Backlog evolution 9M 2013 € million Submarine Netw. components ~500 HV 6% ~550 Submarine ~650 32% ~650 ~650 € 1.7 bn
Slide 9: Utilities – Transmission
Utilities – Transmission Best-in-class technology and reliability as key asset to enhance leadership in high margin projects Adj. EBITDA evolution Sales and Orders Backlog Euro million Euro billion 250 • Over 3y sales visibility 200 • Sound order intake expected in the next 12/18 months Submarine 2.
Slide 10: Trade & Installers
Trade & Installers Euro Millions, % on Sales Sales to Third Parties Highlights -2.6%* • Q3 organic growth and profitability substantially in line with previous year level. Demand and pricing stabilizing at H2’12 level. Slight improvement in 2,233 2,159 profitability thanks to cost reduction -5.1%* •
Slide 11: Trade & Installers
Trade & Installers Sales breakdown Sales breakdown by geographical area Total Construction Investments 9M 2013 2012 = 100 140 North America 130 C.&S. America 120 Asia Pacific APAC* 10% 110 Central & Southern Europe Europe Latin America 100 9% 42% 90 North 80 America 7% A08 A09 A10 A11 E12 E13 E14 E1
Slide 12: Industrial
Industrial Euro Millions, % on Sales Sales to Third Parties Highlights OGP -1.5%* • Positive trend in offshore expected to continue next quarters thanks to North 1,824 1,801 +3.0%* Sea, Asean and South America. Declining demand in onshore limiting Oil&gas profitability improvement in 2013 1,371 1,34
Slide 13: Industrial
Industrial Sales breakdown Sales breakdown by geographical area Sales breakdown by business segment 9M 2013 9M 2013 Other Asia Pacific Elevator 4% 18% 8% Specialties & Renewables OEM 8% 34% Latin America 10% € 1.3 bn € 1.3 bn EMEA 46% OGP & SURF 23% North America Automotive 26% 23% Company Presentat
Slide 14: SURF – First steps to build up a global business
SURF – First steps to build up a global business South America remains a key priority. Large off-shore explorations in West Africa and Apac 2012 Global oil & gas new discovery volumes by terrain Onshore 10% Shallow Water 10% Deep Water 80% Source: IHS, 2013 Umbilical projects out of Brazil Proven re
Slide 15: Telecom
Telecom Euro Millions, % on Sales Sales to Third Parties Highlights -3.5%* • Double digit sales decrease due to strong volume downturn in North and South America for optical and continuous decrease in Europe for MMS and 1,431 1,466 -14.6%* Copper. Profitability strongly penalized by lower volumes de
Slide 16: Telecom
Telecom Sales breakdown Sales breakdown by geographical area Sales breakdown by business segment 9M 2013 9M 2013 JVs and other Asia Pacific Optical, 24% 30% Connectivity and Fiber EMEA 46% 46% € 0.9 bn € 0.9 bn Multimedia & Specials Latin America 18% 13% North America Copper 11% 12% Company Presenta
Slide 17: Telecom – Tough 2013 due to demand contraction
Telecom – Tough 2013 due to demand contraction in Optical N.&S. America and Copper/Multimedia in Europe Adj. EBITDA evolution Euro million (15) (5) (2) (10) +4 (1) 44 41 35 33 34 24 Company Presentation – November 2013 17
Slide 18: Outlook – FY Target confirmed despite new bottom in cyclicals
Outlook – FY Target confirmed despite new bottom in cyclicals and weak Telecom Underlying business trend in line with initial expectations. Material negative currency effect in H2 FY 2013 Adj.EBITDA Target (€ mln) 600 650 • FY negative currency effect (mainly BRL, USD, AUD) of approx. €20mln • Trans
Slide 19: Agenda
AGENDA Group Overview & 2013 Outlook Corporate Social Responsibility Draka integration Financial Results Appendix Company Presentation – November 2013 19
Slide 20: Corporate Social Responsibility
Corporate Social Responsibility Sustainable development based on three dimensions: Economic, Environmental, Social Economic Responsibility - Reliability, accuracy and transparency of information. Focus on shareholders’ return - Corporate Governance (competences and independency of BoD and internal c
Slide 21: Corporate Social Responsibility
Corporate Social Responsibility Developing a CSR strategy to increase involvement of Social Responsible Investors Dow Jones Sustainability Assessment – Electrical Components & Equipment 80 70 Prysmian score 60 50 Sector Average score* 40 30 Lowest Score in the DJ World 20 index* 10 0 2012 Assessment
Slide 22: Main Environmental KPIs
Main Environmental KPIs Improving trend from Draka acquisition Energy Consumptions Energy Consumptions Wooden Drums re-used Power Cables – GJ/T Optical Fiber – GJ/km % on total drums 3.6 0.03 30% 3.23 0.0246 25% 3.2 3.09 0.0237 25% 23% 2.8 0.02 20% 2.4 2.0 0.01 15% 2011 2012 2011 2012 2011 2012 Ener
Slide 23: Agenda
AGENDA Group Overview & 2013 Outlook Corporate Social Responsibility Draka integration Financial Results Appendix Company Presentation – November 2013 23
Slide 24: The new organization model
The new organization model To strengthen leadership in all business segments leveraging on a global platform New organization: a matrix linking country and group functions Utilities T&I Industrial Telecom Group Functions Local Intermediate Global (Optical+Copper) Business Multimedia & Optical Fiber
Slide 25: Integration process update
Integration process update In 2011-12 executed over 50% of actions planned in the full integration process Q2 2011 H2 2011 FY 2012 FY 2013 Design Execution • New Group • Start deployment • Consolidate “One- • Actions completed to achieve the Organization of new company” identity with €100m cumul
Slide 26: First step of production footprint optimization completed
First step of production footprint optimization completed 7 plants closed and 1 plant restructured since Draka acquisition Wuppertal (GER) Industrial cables - partial closure Eschweiler (GER) T&I/Industrial cables Angel (CHI) Hickory (US) Semi-finished products/wires Derby (UK) Industrial/control ca
Slide 27: Synergies target increased – Increasing efforts on production rationalization
Synergies target increased – Increasing efforts on production rationalization New upgrade in synergies plan with additional actions to face the continuous downturn Update on Synergies Plan 2011-15 Overheads (Fixed costs) Euro million Procurement ~175 • Strong Operations ~150 decrease in 125-150 cycl
Slide 28: Key commercial initiatives in Industrial and Telecom
Key commercial initiatives in Industrial and Telecom Leverage on global product portfolio to increase sales and profitability Industrial: ~ +€240m sales by 2015 Telecom: ~ +€190m sales by 2015 CAGR ’12-’15 driven by new initiatives: ~ +4%* CAGR ’12-’15 driven by new initiatives: ~ +4%* OEMs OEMs •Cr
Slide 29: Agenda
AGENDA Group Overview & 2013 Outlook Corporate Social Responsibility Draka integration Financial Results Appendix Company Presentation – November 2013 29
Slide 30: Profit and Loss Statement
Profit and Loss Statement Euro Millions 9M 2013 9M 2012 FY 2012 Sales 5,488 5,930 7,848 YoY total growth (7.5%) YoY organic growth (3.9%) Adj.EBITDA 444 468 647 % on sales 8.1% 7.9% 8.2% Non recurring items (34) (66) (101) EBITDA 410 402 546 % on sales 7.5% 6.8% 7.0% Adj.EBIT 329 349 483 % on sales
Slide 31: Extraordinary Effects
Extraordinary Effects Euro Millions 9M 2013 9M 2012 FY 2012 Antitrust investigation 3 (3) (1) Restructuring (32) (51) (74) Draka integration costs - (5) (9) Other (5) (7) (17) EBITDA adjustments (34) (66) (101) Special items (30) 12 (20) Gain/(loss) on metal derivatives (12) 30 14 Assets impairment
Slide 32: Financial Charges
Financial Charges Euro Millions 9M 2013 9M 2012 FY 2012 Net interest expenses (77) (82) a) (111) a) of which non cash Conv.Bond interest exp. (4) - - Bank fees amortization (6) (7) (10) Gain/(loss) on exchange rates (12) (25) (29) Gain/(loss) on derivatives (1 ) (14) 18 18 Non recurring effects (5)
Slide 33: Statement of financial position (Balance Sheet)
Statement of financial position (Balance Sheet) Euro Millions 30 Sept 2013 30 Sept 2012 31 Dec 2012 Net fixed assets 2,215 2,248 2,311 of which: intangible assets 639 615 655 of which: property, plants & equipment 1,464 1,533 1,543 Net working capital 855 1,033 479 of which: derivatives assets/(liab
Slide 34: Cash Flow
Cash Flow Euro Millions 9M 2013 9M 2012 FY 2012 Adj.EBITDA 444 468 647 Non recurring items (34) (66) (101) EBITDA 410 402 546 Net Change in provisions & others (51) 4 (1) Cash flow from operations (before WC changes) 359 406 545 Working Capital changes (435) (460) 75 Paid Income Taxes (48) (57) (74)
Slide 35: Agenda – Appendix: Prysmian at a Glance
AGENDA Group Overview & 2013 Outlook Corporate Social Responsibility Draka integration Financial Results Appendix – Prysmian at a Glance Company Presentation – November 2013 35
Slide 36: Key Milestones
Key Milestones 1879 1902 1998 2001 2005 2008 2011 Organic Growth by Restructuring Managing the Growth by Establishment Profitable growth growth acquisition process downturn acquisition Listing Public #1 Cable Company July 28, ‘05: Strategic Company Maker founded as Product Closure of 11 GS “Pirelli
Slide 37: The World's Leading Cables & Systems Company
The World’s Leading Cables & Systems Company N°1 in cable solutions for the energy and telecommunication business 7.8 6.3 5.5 €bn, 2012 Sales 4.5 4.1 3.9 3.8 3.0 2.8 1.1 Prysmian Nexans LS Cable & General Cable Southwire Furukawa Leoni Fujikura Hitachi Cable NKT Cables Group System Source: Companies
Slide 38: Prysmian Group business portfolio
Prysmian Group business portfolio Focus on high value added segments PROFITABILITY Extended SURF business (Flexible Pipes + perimeter Umbilicals) Network Components Submarine Look for High Extra HV Profitable Optical Cables & Fibre Growth High Voltage • Focus on products and service Industrial Mediu
Slide 39: Cash Flow generation as key priority to create value for shareholders
Cash Flow generation as key priority to create value for shareholders Growing capabilities to invest organically/acquisitions and remunerate shareholders Cash Flow generation 2012 benefited from approx. €100m cash-in (submarine business) expected in 2013 € mln 320 2.4x 240 2.0x 160 1.6x 80 1.2x Appr
Slide 40: Improving operating leverage during the downturn
Improving operating leverage during the downturn Approx. €240m adj.EBITDA reduction from 2007 despite cost rationalization Power Distribution + T&I Adj. EBITDA and Fixed Costs – Euro million 400 Over €35m fixed costs reduction from overheads and operations in FY13E vs. FY11 300 200 100 0 2007 2008 2
Slide 41: Sales evolution by geographical area
Sales evolution by geographical area Improving geographical diversification with a limited exposure to weaker southern European countries € million Italy & Spain accounting for approx. 7% of Group 7,973 7,848 Adj.EBITDA 6,990 15% 15% EMEA Sales breakdown 14% 9% 9% FY 2012 – Total = 62% 8% 12% Power
Slide 42: CAPEX evolution
CAPEX evolution Investments focused on high value added businesses Capacity Increase & Product mix (€m) 2012 Capex by destination Maintenance, Efficiency, IT and R&D Maintenance, Efficiency, IT and R&D Capacity Increase & Product mix Capacity Increase & Product Mix 159 152 116 IT and R&D 107 102 85
Slide 43: Metal Price Impact on Profitability
Metal Price Impact on Profitability Supply Main Metal Influence on Cable Price Metal Fluctuation Management Contract Application Impact Impact • Projects (Energy • Technology and design • Pricing locked-in at order intake transmission) content are the main • Profitability protection through Predeter
Slide 44: Agenda – Appendix: Energy
AGENDA Group Overview & 2013 Outlook Corporate Social Responsibility Draka integration Financial Results Appendix – Energy Company Presentation – November 2013 44
Slide 45: Clusters of Cable Manufacturers in the Industry
Clusters of Cable Manufacturers in the Industry Competitive scenario – Energy Cables Company Presentation – November 2013 45
Slide 46: Full package of solutions for Energy Business
Full package of solutions for Energy Business Utilities Trade & Installers Industrial • Power Transmission • LV cables for construction • Specialties & OEM (rolling stock, nuclear, defence, crane, – Underground EHV, HV-DC/AC – Fire performing mining, marine, electro medical, – Submarine (turn-key) E
Slide 47: Utilities – Power Transmission
Utilities – Power Transmission Business description Key customers High/extra high voltage power transmission Customer base drawn from all major national solutions for the utilities sector transmission networks operators • Underground High Voltage Cabling solutions for power plant sites and primary d
Slide 48: Utilities – Investing in submarine to increase ROCE
Utilities – Investing in submarine to increase ROCE Strengthening production and installation (GME acquisition) capabilities Arco Felice (Italy) Drammen (Norway) Pikkala (Finland) Main projects in execution/order backlog: 1. Western Link 2. HelWin 1-2/ SylWin 1/ BorWin 2/ DolWin 3 1 2 / Deutsche Buc
Slide 49: Utilities – Off-shore wind development in Europe still at early stage
Utilities – Off-shore wind development in Europe still at early stage High visibility on new projects to be awarded next quarters Europe Offshore Wind capacity (GW) Europe 2012 Cumulated Capacity by Country Cumulated Offshore Wind capacity (L axis) Others 0.2 GW Annual Additional capacity (R axis) N
Slide 50: Utilities – Transmission
Utilities – Transmission Changing Energy generation mix implies a re-engineering of transmission grids Main primary drivers for grid development in Europe toward 2020 Evolution of the generation mix Scenario EU2020 2012 a) 320 458 963 GW 53 126 2020 a) 456 536 1,214 GW 132 82 Renewable Energy Source
Slide 51: Utilities – Transmission
Utilities – Transmission Update on transmission projects of pan-European significance Main subsea and underground projects of pan-European significance List of main projects Main power flow trends 2. Italy – France Main subsea & underground projects in design & permitting 3. Germany (Borwin III & IV
Slide 52: Utilities – Submarine Systems
Utilities – Submarine Systems Key success factors Latest Key projects Customers Period €m (1) Capri Terna 2014-15 70 • Track record and reliability US Offshore platforms ExxonMobil's 2014-15 $100m • Ability to design/execute turnkey Balearic Islands Red Eléctrica de España 2014-15 85 solution • Qual
Slide 53: Utilities – Western Link a milestone in the submarine sector
Utilities – Western Link a milestone in the submarine sector Confirmed leadership in terms of know-how and innovation capabilities Western Link route Large Off-shore Wind investments planned in Scotland Western Link milestones • The highest value cable project ever awarded, worth €800 mln • The high
Slide 54: Utilities – Power Distribution
Utilities – Power Distribution Market drivers Key customers Key customers are all major national distribution network operators • Long term growth in electricity consumption • Mandated improvements in service quality • Investment incentives to utilities • Urbanization Key success factors Action plan
Slide 55: Trade & Installers
Trade & Installers Business description Key customers • Low voltage cables for residential and non • Key customers include major: residential construction • Specialized distributors • Channel differentiation with both: • Direct sales to end customers (Installers) • General distributors • Indirect sa
Slide 56: Trade & Installers – Technology content
Trade & Installers Key success factors Product overview • Product range • On-time delivery / Product availability • Inventory/WC management • Cost leadership + • Channel management Fire Performance/ • Customers’ relationship Accessories Technology content Specials High-End Low Smoke Action plan Zero
Slide 57: Industrial
Industrial Business description Key customers Integrated cable solutions highly customized to our Large and differentiated customer base industrial customers worldwide generally served through direct sales Oil & Gas Addressing the cable needs of research and refining, exploration and production. Pro
Slide 58: Industrial – Off-shore oil exploration
Industrial – Off-shore oil exploration Oilfield structure Flexible Pipes Fixed Floating Platform Floating Platform (SEMI-SUBMERSIBLE) Platform (FPSO) Umbilical Injection control Umbilical (Power) Flexible Pipes Umbilical For control Christmas Manifold Tree Petrol Well Company Presentation – November
Slide 59: Industrial – Off-shore oil exploration
Industrial – Off-shore oil exploration Cross selling opportunities driven by the new Downhole technology business contributed by Draka Downhole Technology (DHT) HYBRID ELECTRO-OPTIC FIBER OPTIC ELECTRICAL GAS & FLUID TUBING PACKAGED GAS & FLUID TUBING Company Presentation – November 2013 59
Slide 60: Macro-structure of Energy Cables
Macro-structure of Energy Cables Product macro structure Production process Conductor Final production Outer jacket (drawing, Insulation Screening Lay up Armouring Sheathing quality (Polyolefine, PVC, inspection Insulation (XLPE, EPDM) stranding) …) WB yarns Conductor (Cu, Al) Building Wire (T&I) Lo
Slide 61: Agenda – Appendix: Telecom
AGENDA Group Overview & 2013 Outlook Corporate Social Responsibility Draka integration Financial Results Appendix – Telecom Company Presentation – November 2013 61
Slide 62: Major Players within the Telecom Industry
Major Players within the Telecom Industry Competitive scenario Global Market Presence Continental YOFC Local Niche Focused Wide Product Portfolio Range Company Presentation – November 2013 62
Slide 63: Our Telecom Business
Our Telecom Business Business description Key customers Integrated cable solutions focused on high -end Telecom Key customers include key operators in the telecom sector Telecom solutions Optical cables: tailored for all today’s challenging environments from underground ducts to overhead lines, rail
Slide 64: Optical cables
Optical cables Global overview Market trends Key success factors • Demand function of level of capital expenditures • Continuous innovation and development of new budgeted by large telecom companies cable & fibre products (PTT/incumbents as well as alternative • Cable design innovation with special
Slide 65: Telecom Cables Main Applications
Telecom Cables Main Applications BACKBONE METROPOLITAN RING ACCESS NETWORK Company Presentation – November 2013 65
Slide 66: Telecom – Solid drivers in optical confirmed despite weak 2013
Telecom – Solid drivers in optical confirmed despite weak 2013 Growing investments expected in South America, EMEA and APAC Global optical cables demand 17% -12% +18% Prysmian 2015 vs. 2012 Sales* Market Growth 33% North America Prysmian 2015 vs. 2012 +25% Sales* Market Growth 42% EMEA +37% Prysmian
Slide 67: Telecom – FTTA as key driver of optical demand
Telecom – FTTA as key driver of optical demand 4G and Long Term Evolution (LTE) deployments require Fiber-to-the-Antenna (FTTA) Number of Global LTE Subscribers Forecast Millions of users Roof top antenna towers for urban applications Antenna towers used by 4G and LTE networks Source: IHS iSuppli Re
Slide 68: Consolidated leadership in Australia to benefit from new NBN project
Consolidated leadership in Australia to benefit from new NBN project Start-up of National broadband network in 2011 Rollout plan for National Broadband Network • Government initiative to provide direct fibre connection to 93% of Australian subscribers (residential and business) • AUD 43 bn capex pla
Slide 69: Macro-structure of Telecom Cables
Macro-structure of Telecom Cables Product macro structure Production process Primary Coating (250 Micron) Fibre Cladding (125 Micron) optic Core (10 Micron) Final quality Pre form deposition Consolidation Drawing inspection Main Technologies: OVD - VAD - MCVD Aramid Yarns Loose tubes Optical fibres
Slide 70: Agenda – Appendix: Financials
AGENDA Group Overview & 2013 Outlook Corporate Social Responsibility Draka integration Financial Results Appendix – Financials Company Presentation – November 2013 70
Slide 71: Bridge Consolidated Sales
Bridge Consolidated Sales Euro Millions Total Consolidated (3.9%) (228) (99) (163) 48 5,930 5,440 5,488 9M 2012 Org.Growth Metal Effect Exchange Rate 9M 2013 L-f-L Perimeter effect 9M 2013 Energy Cables & Systems Division (1.3%) (64) (92) (135) 33 4,801 4,543 4,510 9M 2012 Org.Growth Metal Effect Ex
Slide 72: Energy Segment – Profit and Loss Statement
Energy Segment – Profit and Loss Statement Euro Millions 9M 2013 9M 2012 FY 2012 Sales to Third Parties 4,543 4,801 6,382 YoY total growth (5.4%) YoY organic growth (1.3%) Adj. EBITDA 353 348 487 % on sales 7.8% 7.3% 7.6% Adj. EBIT 275 268 379 % on sales 6.0% 5.6% 5.9% Company Presentation – Novembe
Slide 73: Energy Segment – Sales and Profitability by business area
Energy Segment – Sales and Profitability by business area Euro Millions, % on Sales Total Organic 9M 2013 9M 2012 growth growth Sales to Third Parties Utilities 1,650 1,678 (1.7%) (0.8%) Trade & Installers 1,471 1,653 (11.0%) (5.1%) Industrial 1,340 1,371 (2.3%) 3.0% Others 82 99 n.m. n.m. Total Ene
Slide 74: Telecom Segment – Profit and Loss Statement
Telecom Segment – Profit and Loss Statement Euro Millions 9M 2013 9M 2012 FY 2012 Sales to Third Parties 945 1,129 1,466 YoY total growth (16.3%) YoY organic growth (14.6%) Adj. EBITDA 91 120 160 % on sales 9.7% 10.6% 10.9% Adj. EBIT 54 81 104 % on sales 5.7% 7.3% 7.1% Company Presentation – Novembe
Slide 75: Financial Structure
Financial Structure Euro Millions Debt structure (€m) 30.09.2013 (€m) 30.09.13 30.06.13 31.12.12 Used Available Funds (2) Maturity Term Loan 184 184 670 184 - 12/2014 Revolving Credit Facility 75 - - 75 321 12/2014 Eurobond 5.25% 408 403 413 408 - 04/2015 Convertible bond 1.25% 261 260 - 261 - 03/20
Slide 76: Prysmian Historical Key Financials
Prysmian Historical Key Financials Euro Millions, % of Sales – Pre Draka acquisition Sales Sales Adjusted EBITDA (1) Adjusted Adjusted EBITEBIT 1 (2) 529 542 5,007 5,118 5,144 4,571 464 477 407 403 387 3,742 3,731 330 334 309 265 +4.2% * +8.2% * +9.3% * +3.2% * -17.4% * 171 2005 2006 2007 2008 2009
Slide 77: Historical Key Financials by Business Area – Utilities and T&I
Historical Key Financials by Business Area – Utilities and T&I Euro Millions, % of Sales – Pre Draka acquisition Sales Vs Third Parties Adjusted EBITDA (1) Adjusted EBIT (2) 2,028 287 256 1,894 266 237 1,853 1,790 250 215 237 208 1,598 1,445 Utilities 197 157 +12.1% * 143 +3.3% * +1.5% * 107 -13.9%
Slide 78: Historical Key Financials by Business Area – Industrial and Telecom
Historical Key Financials by Business Area – Industrial and Telecom Euro Millions, % of Sales – Pre Draka acquisition Sales Vs Third Parties Adjusted EBITDA (1) Adjusted EBIT (2) 850 93 795 80 742 84 71 629 628 Industrial 62 61 489 46 +5.0% * +21.1% * 46 42 -1.1% * 39 34 -16.1% * 25 2005 2006 2007 2
Slide 79: Agenda – Appendix: Cable Industry Reference Market
AGENDA Group Overview & 2013 Outlook Corporate Social Responsibility Draka integration Financial Results Appendix – Cable Industry Reference Market Company Presentation – November 2013 79
Slide 80: The Global Cables Reference Market
The Global Cables Reference Market World-Wide Cable Reference Market Size, 2012 2012 Global Cables Reference Market Energy Cables Reference Market (~€94bn) Latin North € 118 bn Latin America America America North 4% 13% 4% America 16% EMEA APAC 30% 53% EMEA APAC 30% 50% Telecom Cables Reference Mark
Slide 81: Market Volumes Trend
Market Volumes Trend Energy Cables Reference Market Million Tons • Long term growth driven by: Conductor • Energy consumption 13.1 13.7 12.5 11.2 11.6 11.9 10.3 10.7 10.0 10.7 • Investments in power grid 9.5 7.8 8.5 9.0 interconnections 7.4 6.5 6.7 6.9 7.1 CAGR: 4.2% • Investments in power transmiss
Slide 82: 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 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12 Jan-13 Jan-08 Jan-09 J
Slide 83: 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
Prysmian Group — Exane BNP Paribas SRI Conference 2013 on 6ix