Prysmian S.p.a. · MIL:PRY
Prysmian — Q1 2015 Earnings Presentation
27 slides from Prysmian's earnings presentation, May 7, 2015
Slide 1: Q1 2015 Financial Results
Q1 2015 Financial Results Milan – May 7th, 2015
Slide 2: Agenda
Agenda Q1 2015 Highlights o Group overview o Results by business o Outlook Financial results Appendix Q1 2015 Financial Results 2
Slide 3: Q1 2015 Key Financials
Q1 2015 Key Financials Euro Millions, % on Sales Sales Adjusted EBITDA (1) Excl. WL Excl. WL 6,901 603 6,840 509 +5.9%* +5.9%* 1,579 1,753 1,616 1,793 135 120 115 78 7.4% 4.9% 6.8% 8.7% 7.1% 7.5% 2014 Q1'14 Q1'15 2014 Q1'14 Q1'15 2014 Q1'14 Q1'15 2014 Q1'14 Q1'15 * Org. Growth Operative Net Working
Slide 4: Organic Growth and Adj. EBITDA by business
Organic Growth and Adj. EBITDA by business Profitability increase driven by Energy Projects & Telecom. Positive impact from currencies Excl. WL Excl. WL Organic Growth % +19.5% +18.2% +13.1% +5.9% +5.9% +3.3% -2.8% Q1’15 Q1’15 Q1’15 Q1’15 Q1’15 Q1’15 Q1’15 Energy Projects E&I Industrial & Netw. Tele
Slide 5: Agenda
Agenda Q1 2015 Highlights o Group overview o Results by business o Outlook Financial results Appendix Q1 2015 Financial Results 5
Slide 6: Energy Projects
Energy Projects Euro Millions, % on Sales Sales Highlights Excl. WL Submarine 1,416 1,355 • Solid market in Europe, stable tendering activity in the coming months • Accelerated production of deep-water section of Western Link project. Deep-water installation starting from Q2 +18.2%* +19.5%* 333 373
Slide 7: Transmission backlog at peak level
Transmission backlog at peak level Strong tendering activity in Q1 Transmission – Orders Backlog (€m) Major transmission projects awarded in Q1 • Wikinger (GER), submarine € 60m Submarine High Voltage ~3,100 • Kuwait, underground € 50m ~3,000 ~2,800 ~2,800 • Italy-France, underground € 200m ~650 ~50
Slide 8: Energy & Infrastructure
Energy & Infrastructure Euro Millions, % on Sales Sales Highlights 2,677 Trade & Installers • Low single digit organic growth supported by positive trend in North America and some European countries (the Nordics, Spain and Eastern Europe); rest of Europe stable on low levels +3.3%* 686 • Persistent
Slide 9: Industrial & Network Components
Industrial & Network Components Euro Millions, % on Sales Sales Highlights 1,708 Specialties & OEMs • Positive trend in APAC, slight improvement in Americas. Europe Infrastructure projects still weak on low levels. Good performance of Railway, Rolling Stock and Nuclear offset by weak Infrastructures
Slide 10: Telecom
Telecom Euro Millions, % on Sales Sales Highlights Optical, Connectivity & Fiber 994 • Strong organic growth in optical (FTTH/FTTA development and backhaul investments) in almost all geographical areas, prices stable vs. previous year. Profitability supported by YOFC results +13.1%* • Sound demand i
Slide 11: Agenda
Agenda Q1 2015 Highlights o Group overview o Results by business o Outlook Financial results Appendix Q1 2015 Financial Results 11
Slide 12: FY 2015 Outlook
FY 2015 Outlook Strong recovery in profitability driven by Submarine and Telecom. Positive impact from FX 2015 Adj.EBITDA Target (€ million) FY’15 vs. FY’14 (€ million) Western Link effect 641 616 Mid-point € 641m 666 603 56 94 Western Link (€ 56m) effect on FY’15 Adj.EBITDA 585 509 560 Mid-point €
Slide 13: Cost Efficiency plan
Cost Efficiency plan Cumulated Cost Savings (€ million) Organization & Footprint Procurement Organization & Footprint +85 225 175 45 140 45 45 180 130 95 Optmization of European organization & 2014 YTD 2016 Target 2019 Run-rate footprint Cumulated Costs (€ million) Creation of Centers of Operati
Slide 14: Agenda
Agenda Q1 2015 Highlights o Group overview o Results by business o Outlook Financial results Appendix Q1 2015 Financial Results 14
Slide 15: Profit and Loss Statement
Profit and Loss Statement Euro Millions WL effect Q1 2015 Q1 2014 Q1’15 vs. Q1’14 Sales 1,753 1,579 (3) (15) in Q1’15 YoY total growth 11.0% (37) in Q1’14 YoY organic growth 5.9% Adj.EBITDA 120 78 22 % on sales 6.8% 4.9% Adj.EBITDA excl. WL 135 115 - % on sales 7.5% 7.1% Non recurring items (14) 20
Slide 16: Non Recurring and Special Items on EBIT
Non Recurring and Special Items on EBIT Euro Millions Q1 2015 Q1 2014 Antitrust investigation (6) 1 Restructuring (8) (3) Price adjustments - 21 Other - 1 EBITDA adjustments (14) 20 Special items 13 (20) Gain/(loss) on metal derivatives 20 (19) Assets impairment (6) - Other (1) (1) EBIT adjustments
Slide 17: Financial Charges
Financial Charges Euro Millions Q1 2015 Q1 2014 Net interest expenses (21) (22) of which non-cash conv.bond interest exp. (2) (2) Bank fees amortization (1) (2) Gain/(loss) on exchange rates (11) (2) Gain/(loss) on derivatives 1) 14 (8) Non recurring effects (1) (1) Net financial charges (20) (35) 1
Slide 18: Statement of financial position (Balance Sheet)
Statement of financial position (Balance Sheet) Euro Millions 31 Mar 2015 31 Mar 2014 31 Dec 2014 Net fixed assets 2,260 2,188 2,219 of which: intangible assets 560 586 561 of which: property, plants & equipment 1,442 1,383 1,414 Net working capital 716 708 407 of which: derivatives assets/(liabilit
Slide 19: Cash Flow
Cash Flow Euro Millions Q1 2015 Q1 2014 FY 2014 Adj.EBITDA 120 78 509 Non recurring items (14) 20 (13) EBITDA 106 98 496 Net Change in provisions & others (6) (35) (53) Share of income from investments in op.activities (7) (5) (43) Cash Flow from operations (bef. WC changes) 93 58 400 Working Capita
Slide 20: Agenda
Agenda Q1 2015 Highlights o Group overview o Results by business o Outlook Financial results Appendix Q1 2015 Financial Results 20
Slide 21: Bridge Consolidated Sales
Bridge Consolidated Sales Euro Millions Energy Projects Energy Products ( 1) 14 52 11 ( 14 ) 69 Org.growth Org.growth 333 1,141 +1.0% 268 +19.5% 1,075 Q1 2014 Org.Growth Metal Effect Exc. Rate Q1 2015 Q1 2014 Org.Growth Metal Effect Exc. Rate Q1 2015 Telecom Total Consolidated 13 ( 15 ) 96 - 93 30 O
Slide 22: Profit and Loss Statement
Profit and Loss Statement Euro Millions Q1 2015 excl. Q1 2015 Q1 2014 excl. Q1 2014 WL submarine WL submarine Q1 2015 WL submarine WL submarine Q1 2014 project effect project effect project effect project effect Sales 1,793 (40) 1,753 1,616 (37) 1,579 YoY total growth 10.9% 11.0% YoY organic growth
Slide 23: Energy Projects Segment – Profit and Loss Statement
Energy Projects Segment – Profit and Loss Statement Euro Millions Q1 2015 excl. Q1 2015 Q1 2014 excl. Q1 2014 WL submarine WL submarine Q1 2015 WL submarine WL submarine Q1 2014 project effect project effect project effect project effect Sales to Third Parties 373 (40) 333 305 (37) 268 YoY total gro
Slide 24: Energy Products Segment – Profit and Loss Statement
Energy Products Segment – Profit and Loss Statement Euro Millions Q1 2015 Q1 2014 E&I 686 638 YoY total growth 7.5% 0.0% Sales to Third Parties YoY organic growth 3.3% 0.0% Industrial & Netw. Comp. 430 414 YoY total growth 4.2% 0.0% YoY organic growth (2.8%) 0.0% Other 25 23 YoY total growth 5.9% 0.
Slide 25: Telecom Segment – Profit and Loss Statement
Telecom Segment – Profit and Loss Statement Euro Millions Q1 2015 Q1 2014 Sales to Third Parties 279 236 YoY total growth 18.4% YoY organic growth 13.1% Adj. EBITDA 28 18 % on sales 10.1% 7.6% Adj. EBIT 19 7 % on sales 6.8% 3.0% Q1 2015 Financial Results 25
Slide 26: 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 J-08 J-09 J-10 J-11 J-12 J-13 J-14 J-15 J-08 J-09 J-10 J-
Slide 27: 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