Prysmian S.p.a. · MIL:PRY
Prysmian — Q1 2018 Earnings Presentation
30 slides from Prysmian's earnings presentation, May 10, 2018
Slide 1: Q1 2018 Financial Results
Q1 2018 FINANCIAL RESULTS Milan – May 10th, 2018 1
Slide 2: Agenda
AGENDA ➢Q1 2018 Highlights o Group overview o Results by business o Outlook ➢Financial results ➢Appendix 2
Slide 3: Q1 2018 Financial Highlights
Q1 2018 Financial Highlights Organic growth recovery in Energy Projects and Industrial. Margin impacted by WL provision. Organic sales growth at +3.1% supported by: - Double-digit trend in Underground HV and Industrial. - High-single digit growth in Optical & Connectivity. - Positive organic trend i
Slide 4: Q1 2018 Key Financials
Q1 2018 Key Financials Euro Millions, % on Sales Sales Adjusted EBITDA (1) ** Restated according to IFRS 15 * Restated according to IFRS 15 + 3.1% * 9.3% 8.3% 8.1% (1) Adjusted excluding restructuring, non-operating income/expenses and * Org. Growth non-recurring income / expenses; Operative Net Wor
Slide 5: Continued profitability improvement
Continued profitability improvement Organic growth confirmed positive. Meaningful margin expansion in Telecom business. Q1’17 Q1’18 Adj. EBITDA Margin 23.5% 14.4% 16.3% 6.9% 7.9% 7.3% 8.3% 8.1% 4.3% 3.8% Energy -2.3% E&I Industrial Oil&Gas Telecom Total Projects & NWC. Q1’17 Q1’18 ±X.X% = Sales Orga
Slide 6: Adj.EBITDA Bridge Q1 2017 – Q1 2018
Adj.EBITDA Bridge Q1 2017 – Q1 2018 1 ( 13 ) 28 2 ( 20 ) 154 153 154 2 (3) (1) 12 3 136 136 135 135 137 Bad debt provision Related to SURF reversal in Brazil & Carry over of YOFC 2017 results € 13m Adverse FX Impact Q1 2017 Energy WL E&I (excl. OCI Industrial Oil&Gas Telecom Other Forex Q1 2018 Proj
Slide 7: General Cable Acquisition
General Cable Acquisition Update of the transaction agenda Key Milestones of the Transaction December 4th, • Transaction Announcement √ 2017 • General Cable EGM approved the acquisition by large February 16th, majority (99% of total votes cast, also representing √ 2018 a majority of the total outsta
Slide 8: Agenda
AGENDA ➢Q1 2018 Highlights o Group overview o Results by business o Outlook ➢Financial results ➢Appendix 8
Slide 9: Energy Projects
Energy Projects Euro Millions, % on Sales Sales Highlights **Restated according to IFRS 15 1,493** SUBMARINE +14.8% * • Positive organic sales trend helped by favourable project phasing. Higher tendering activity expected in H2. • Adj.EBITDA negatively impacted by €20m provision related to the Weste
Slide 10: Energy & Infrastructure
Energy & Infrastructure Euro Millions, % on Sales Sales Highlights TRADE & INSTALLERS • Moderate organic improvement, negatively affected by OCI; mid-single-digit -2.5% * organic growth (excl. OCI) driven by South Europe, Germany, East Europe and Netherlands. • Improved Adj.EBITDA helped by CPR intr
Slide 11: Industrial & Network Components
Industrial & Network Components Euro Millions, % on Sales Sales Highlights Specialties, OEMs & Renewables + 10.7% * • Double-digit organic growth, fueled by positive performance in Railways and Infrastructure applications. Nuclear and Mining main weaknesses. • Stable trend in renewable business, wit
Slide 12: Oil & Gas
Oil & Gas Euro Millions, % on Sales Sales Highlights SURF • Umbilical: sales and margin dropped significantly during the quarter, due to -9.1% * strong price pressure in Brazil and reduced project awards in 2017. • DHT: volume recovery driven by increased number of active rigs in North America (shal
Slide 13: Telecom
Telecom Euro Millions, % on Sales Sales Highlights Telecom Solutions & Fibre +1.7%* • Sharp expansion of Adj.EBITDA supported by volume growth, further improvement in competitiveness and manufacturing efficiency, YOFC results and the reversal of a bad debt provision accrued in 2016 in Brazil. • Opti
Slide 14: Agenda
AGENDA ➢Q1 2018 Highlights o Group overview o Results by business o Outlook ➢Financial results ➢Appendix 14
Slide 15: FY 2018 Outlook
FY 2018 Outlook 2018 Adj.EBITDA Target (€ million) 2018 Adj.EBITDA Target Assumptions MID-POINT TARGET ASSUMPTIONS: • Volume and margin growth in Telecom in line with Q1 trend. 730 Mid-point € 750m 770 • Volume trend in E&I and Industrial following Q1 track. • Adverse FX impact expected between €20-
Slide 16: Agenda
AGENDA ➢Q1 2018 Highlights o Group overview o Results by business o Outlook ➢Financial results ➢Appendix 16
Slide 17: Profit and Loss Statement
Profit and Loss Statement Euro Millions Q1 2018 Q1 2017 Sales 1,879 1,849 YoY total growth 1.6% YoY organic growth 3.1% Adj.EBITDA 153 154 % on sales 8.1% 8.3% Adjustments (17) (24) EBITDA 136 130 % on sales 7.3% 7.0% Adj.EBIT 109 110 % on sales 5.8% 5.9% Adjustments (17) (24) Special items (35) (8)
Slide 18: Adjustments and Special Items on EBIT
Adjustments and Special Items on EBIT Euro Millions Q1 2018 Q1 2017 Non-recurring Items (Antitrust investigation) - (15) Restructuring (3) (5) Other Non-operating Income / (Expenses) (14) (4) of which General Cable acquisition related costs (1) - of which General Cable integration costs (8) - EBITDA
Slide 19: Financial Charges
Financial Charges Euro Millions Q1 2018 Q1 2017 Net interest expenses (15) (17) of which non-cash conv.bond interest exp. (4) (4) Bank fees amortization - - Gain/(loss) on exchange rates (6) 1 Gain/(loss) on derivatives 3 (7) Non recurring effects (1) (1) Other non operating financial expenses - (2)
Slide 20: Statement of financial position (Balance Sheet)
Statement of financial position (Balance Sheet) Euro Millions 31 Mar 2018 31 Mar 2017* 31 Dec 2017* Net fixed assets 2,615 2,656 2,610 of which: goodwill 436 447 438 of which: intangible assets 284 340 297 of which: property, plants & equipment 1,646 1,653 1,646 Net working capital 587 735 128 of wh
Slide 21: Cash Flow
Cash Flow Q1 2018 Q1 2017 12 Months (from 1/4/2017 to Euro Millions 31/3/2018)** Adj.EBITDA 153 154 735 Adjustments (17) (24) (69) EBITDA 136 130 666 Net Change in provisions & others 3 (1) 2 Share of income from investments in op.activities (20) (10) (52) Cash flow from operations (before WC change
Slide 22: Agenda
AGENDA ➢Q1 2018 Highlights o Group overview o Results by business o Outlook ➢Financial results ➢ Appendix 22
Slide 23: Bridge Consolidation Sales
Bridge Consolidation Sales Euro Millions Energy Projects E&I Industrial & NWC 3 63 ( 59 ) 22 ( 29 ) ( 20 ) 36 ( 8 ) 41 Org.growth Org.growth 806 -2.5% 790 +10.7% 369 Org.growth 311 340 275 14.8% Oil & Gas Telecom Total Consolidated (6) 3 5 5 99 ( 125 ) (6 ) ( 21 ) 56 Org.growth Org.growth 66 Org.gro
Slide 24: Profit and Loss Statement
Profit and Loss Statement Euro Millions Q1 2018 Q1 2017 Sales 1,879 1,849 YoY total growth 1.6% YoY organic growth 3.1% Adj.EBITDA 153 154 % on sales 8.1% 8.3% of which share of net income 20 10 Adjustments (17) (24) EBITDA 136 130 % on sales 7.3% 7.0% Adj.EBIT 109 110 % on sales 5.8% 5.9% Adjustmen
Slide 25: Energy Projects Segment – Profit and Loss Statement
Energy Projects Segment – Profit and Loss Statement Euro Millions Q1 2018 Q1 2017 Sales to Third Parties 311 275 YoY total growth 12.9% YoY organic growth 14.8% Adj. EBITDA 21 40 % on sales 6.9% 14.4% Adj. EBIT 11 30 % on sales 3.5% 10.7% 25
Slide 26: Energy Products Segment – Profit and Loss Statement
Energy Products Segment – Profit and Loss Statement Euro Millions Q1 2018 Q1 2017 E&I 790 806 YoY total growth (2.1%) Sales to Third Parties YoY organic growth (2.5%) Industrial & Netw. Comp. 369 340 YoY total growth 8.6% YoY organic growth 10.7% Other 35 34 YoY total growth 4.1% YoY organic growth
Slide 27: Oil&Gas Segment – Profit and Loss Statement
Oil&Gas Segment – Profit and Loss Statement Euro Millions Q1 2018 Q1 2017 Sales to Third Parties 57 66 YoY total growth (13.0%) YoY organic growth (9.1%) Adj. EBITDA (1) - % on sales (2.3%) 0.0% Adj. EBIT (4) (4) % on sales (7.1%) (6.5%) 27
Slide 28: Telecom Segment – Profit and Loss Statement
Telecom Segment – Profit and Loss Statement Euro Millions Q1 2018 Q1 2017 Sales to Third Parties 317 328 YoY total growth (3.2%) YoY organic growth 1.7% Adj. EBITDA 75 53 % on sales 23.5% 16.3% Adj. EBIT 64 43 % on sales 20.1% 13.2% 28
Slide 29: 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 8,000 2,500 100 2,000 75 6,000 1,500 50 4,000 1,000 25 2,000 J- J- J- J- J- J- J- J- J- J- 500 J- J- J- J- J- J- J- J- J-
Slide 30: 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