Prysmian S.p.a. · MIL:PRY
Prysmian — 9M 2021 Earnings Presentation
40 slides from Prysmian's earnings presentation, November 2021
Slide 1: 9M 2021 Financial Results
9M 2021 Financial Results Leonardo da Vinci cable-laying vessel - A genius in motion
Slide 2: Highlights, Financial Results, ESG, Appendix
9M 2021 Financial ESG Appendix Highlights Results 2
Slide 3: 9M 2021 Key highlights
9M 2021 Key highlights US MARKET ACCELERATING SOLID PERFORMANCE CONTINUED IN Q3: +13.2% org. growth* SOO Green HVDC Underground Link (~ 900 $M cables) Solid recovery across all businesses, driven by both Energy and Telecom The biggest single HV project ever awarded to Prysmian Dominion Energy Group
Slide 4: 9M 2021 Financial highlights
9M 2021 Financial highlights SALES ADJ. EBITDA FREE CASH FLOW SALES ORGANIC GROWTH* ADJ. EBITDA ADJ. EBITDA MARGIN FCF LTM NET DEBT 9,294 €M 11.4% 725 €M 7.8% 282 €M 2,663 €M SOLID ORGANIC GROWTH RESILIENT MARGINS FREE CASH FLOW +12.3% E&I, mainly driven by T&I Group margins at 9.0% at 2020 metal pr
Slide 5: Record Order Intake
Record Order Intake List of main projects awarded in 2021 ~ 2.3 €Bn awarded YTD Gode Wind 3 & Borkum Riffgrund 3 SOO Green HVDC Underground Link Wind Farms (~ 60 €M) (~ 900 $M cables) * Turkish Crossing (~140 €M) Dominion Energy offshore wind project (~ 630 €M) * Egypt-Saudi Arabia Submarine link (~
Slide 6: Volume & organic sales above pre-pandemic level
Volume & organic sales above pre-pandemic level E&I Org. growth 9M 2021 EMEA 12.3% NORTH AMERICA 10.9% 3.3% vs. vs. 0.4% 2019 2020 vs. vs. 2019 2020 Industrial & NWC 7.7% ASIA PACIFIC 1.0% vs. vs. 9.2% 2019 2020 11.3% 2.5% vs. vs. GROUP 2019 2020 LATIN AMERICA -2.5% vs. vs. Telecom 2019 2020 11.4% 1
Slide 7: Sound performance in Energy and Telecom
Sound performance in Energy and Telecom Projects Energy Telecom TOTAL 1,056 1,071 +1.3% 5,385 7,019 +11.0% 1,047 1,204 +13.5% 7,488 9,294 +10.0% +11.1% +13.9% +9.7% +12.9% Sales Sales E&I Industrial & NWC ( 19 ) forex 3,559 4,708 +12.3% 1,673 2,074 +9.2% 647 +16.8% +8.9% 269 725 224 150 162 178 Adj.
Slide 8: Relentless customer focus and efficient operations
Relentless customer focus and efficient operations Adj EBITDA bridge 2019-2021 Price recovery ongoing 1,007 920-970 Price/Mix Energy and Efficiencies offset raw material and distribution costs inflation Adj Ebitda Forex 2019 @ RM + Volume Price/Mix Volume Price/Mix Ebitda Efficiencies Upper end of 2
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* 3,080 3,933 +10.9% 2,306 2,775 +7.7% 502 771 +32.0% 544 744 +11.3% 6,432 8,223 +11.4% Sales Sales 725 287 248 647 Projects 226 124 153 130 73 54 Adj. Ebitda Adj. Ebitda 41 36 1
Slide 10: 2021 guidance confirmed
2021 guidance confirmed Confident to reach Adj. EBITDA upper end of the guidance 2021 ADJ. EBITDA TARGET (€M) 2021 FCF TARGET (€M) FCF before acquisition 920 970 & disposals ~ 300 ±20% KEY ASSUMPTIONS Solid demand continuing in ENERGY and TELECOM; accelerating delivery trend in PROJECTS as expected
Slide 11: Resilience and Growth: investing to fuel future growth
Resilience and Growth: investing to fuel future growth Adj. EBITDA evolution (€M) Upper end of 1,007 the guidance by Business 940 932 840 ENERGY PROJECTS 395 372 505 440 TELECOM 298 295 274 214 GROUP 247 265 228 186 2017 2018 2019 2020 2021 guidance medium term Capex Trend by Business 2017-2025 (€M)
Slide 12: Financial Results
9M 2021 Financial ESG Appendix Highlights Results © Prysmian Group 2021 12
Slide 13: Profit and Loss Statement
Profit and Loss Statement Euro Millions 9M 2021 9M 2020 Adj. EBITDA Bridge SALES 9,294 7,488 Q1 Q2 Q3 9M YoY total growth 24.1% YoY organic growth 10.0% ADJ. EBITDA 2020 197 222 228 647 Adj.EBITDA 725 647 Projects (7) 3 (2) (6) % on sales 7.8% 8.6% Energy 13 20 35 68 of which share of net income 13
Slide 14: Statement of financial position (Balance Sheet)
Statement of financial position (Balance Sheet) Euro Millions 30 Sept 2021 30 Sept 2020 31 Dec 2020 Net fixed assets 5,160 5,035 4,971 of which: goodwill 1,603 1,548 1,508 Net working capital 1,443 1,260 523 of which: derivatives assets/(liabilities) 156 44 91 of which: Operative Net working capital
Slide 15: Cash Flow
Cash Flow Euro Millions NET DEBT EVOLUTION +202 €M Free Cash Flow ( 825 ) 81 ( 14 ) 133 (8) 129 248 77 37 80 56 o/w 323 €M metal 2,669 price effect 2,663 30-Sep-20 Cash flow WC Restructuring Antitrust Net Operative Financial Paid income Dividend Dividend Acquisitions Other 30-Sep-21 operations chang
Slide 16: ESG
9M 2021 Financial ESG Appendix Highlights Results 16
Slide 17: Prysmian Climate Change Ambition
Prysmian Climate Change Ambition 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 by 2035 for our Scope 1&2 emissions, and by 2050 for our Scope 3 emissions Net Zero 100 Signed the Business
Slide 18: Prysmian 2030 Social Ambition
Prysmian 2030 Social Ambition Gender Equality Up-Skilling and Engagement MBO • 50/50 in Recruiting of Desk Workers INCLUSION & • 40 yearly hours per capita of experienced DIVERSITY MBO • % of Women hired in Managerial learning for all employees, position • More than 25% of employees is involved in •
Slide 19: Prysmian Group Sustainability Governance
Board level Prysmian Group Sustainability Governance Board Sustainability Committee Group Leadership Team Management level Functions involved Sustainability Steering HR & Innovation and Diversity, Equity & Inclusion Business HSE Supply chain Committee Organisation R&D Steering Committee Investor Reg
Slide 20: Prysmian Group Sustainability Day
Prysmian Group Sustainability Day SAVE THE DATE We are glad to invite you to attend the 2021 Prysmian Group Sustainability Day, a unique and precious opportunity to share our vision and priorities on such increasingly important topics for our lives and our business. © Prysmian Group 2021 2020 20 20
Slide 21: Prysmian Group in the Sustainability Indexes
Prysmian Group in the Sustainability Indexes 2021 Rating: AA 2020 Rank: 87/100; Included 2021: Included in ESG MIB 2020 Rating: EE+ 2020 Score Climate 2021 Rating: 51/100 2021 Rating: 3.8/5 2020 Rating: 45/100 Change: B (World) 2020: Included (STOXX 2021 Rating: 22.6 (Med) 2020 Rating: Platinum 2021
Slide 22: Appendix
9M 2021 Financial ESG Appendix Highlights Results © Prysmian Group 2021 22
Slide 23: 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 +3.3% +2.5% +3.0% Org. growth +12.3% +9.2% +11.0% 4,708 7,019 6,098 Sales 4,060 3,559 2,074 5,385 1,858 1,673 9M 9M 9M 9M 9M 9M 9M 9M 9M 2019 2020 2021 2019 2020 2021 2019 2020 2021 269 391 423 238 2
Slide 24: 9M 2021 Financial highlights
9M 2021 Financial highlights Euro Millions, % on Sales SALES ADJUSTED EBITDA (1) +10.0%* ( 19 ) forex 647 9,294 7,488 725 8.6% 7.8% 9M 2020 9M 2021 9M 2020 9M 2021 OPERATIVE NET WORKING CAPITAL (2) REPORTED NET FINANCIAL DEBT 1,216 1,287 2,669 2,663 1,986 432 4.3% 12.1% 9.9% DEC-20 SEPT-20 SEPT-21 D
Slide 25: Profit and Loss Statement
Profit and Loss Statement Euro Millions 9M 2021 9M 2020 SALES 9,294 7,488 YoY total growth 24.1% YoY organic growth 10.0% Adj.EBITDA 725 647 % on sales 7.8% 8.6% of which share of net income 13 15 Adjustments (25) (46) Adjustments and Special Items on EBIT EBITDA 700 601 % on sales 7.5% 8.0% 9M 2021
Slide 26: Projects
Projects Euro Millions, % on Sales SALES HIGHLIGHTS +1.3%* SUBMARINE / Sequential improvement continued in Q3, with acceleration expected in Q4 / Tendering activity ongoing, with a solid pipeline of projects (interconnections and off-shore wind farms) / Submarine backlog further increased to approx.
Slide 27: Energy & Infrastructure
Energy & Infrastructure Euro Millions, % on Sales SALES HIGHLIGHTS +12.3%* TRADE & INSTALLERS / Strong organic growth continued in Q3 in all regions / Margins improvement driven by volume and costs efficiency offsetting raw material costs increase POWER DISTRIBUTION 4,708 / PD normalizing, after 202
Slide 28: Industrial & Network Components
Industrial & Network Components Euro Millions, % on Sales SALES HIGHLIGHTS SPECIALTIES, OEM & RENEWABLES +9.2%* / Overall positive performance. Good performances of Infrastructure, Renewables and Mining, partially offset by Marine and Nuclear. ELEVATOR 2,074 / Completed the acquisition of EHC Global
Slide 29: Telecom
Telecom Euro Millions, % on Sales SALES HIGHLIGHTS +13.5%* OPTICAL CABLE & FIBRE / Sound volume trend especially in the US. / Cost efficiency measures and mix partly offsetting price pressure / Positive carry-over from YOFC 2020 actual results (4 €M) 1,047 1,204 MMS / Solid organic growth confirmed
Slide 30: 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 4 Vessels Industry first to qualify both 525kV XLPE and P Laser solutions Interconnectors 2.4 Th
Slide 31: 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 32: Financial Highlights
Financial Highlights Euro Millions 9M 2021 9M 2020 9M 2021 9M 2020 organic Adj.EBITDA Adj.EBITDA €M €M €M €M growth Margin Margin PROJECTS 1,071 1.3% 1,056 124 11.5% 130 12.3% Energy & Infrastructure 4,708 12.3% 3,559 269 5.7% 224 6.3% Industrial & Network Components 2,074 9.2% 1,673 150 7.2% 130 7.
Slide 33: Cash Flow Statement
Cash Flow Statement 30 Sept 2021 30 Sept 2020 12 Months (from 1/10/2020 to 30/9/2021) Euro Millions Adj.EBITDA 725 647 918 Adjustments (25) (46) (38) EBITDA 700 601 880 Net Change in provisions & others (56) (91) (148) Share of income from investments in op.activities (21) (15) (24) Cash flow from o
Slide 34: Prysmian Group Liquidity and Debt Profile
Prysmian Group Liquidity and Debt Profile COMFORTABLE LIQUIDITY POSITION: / Average debt maturity of 2.9 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 TL 200 RC
Slide 35: Bridge Consolidation Sales
Bridge Consolidation Sales Euro Millions PROJECTS ENERGY & INFRASTRUCTURE 14 851 ( 141 ) 11 ( 10 ) 439 Org.growth Org.growth 4,708 1,056 1,071 1.3% 3,559 12.3% TOTAL CONSOLIDATED 264 ) 1,269 ( 54 9M 2020 Organic Metal Exchange 9M 2021 9M 2020 Organic Metal Exchange 9M 2021 Growth Effect Rate Growth
Slide 36: 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 37: 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 38: 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; Slide 11: Adj. EBITDA: 2018 excluding WL impact; 2017 & 2018 combined GC; 2019 and 2020 including IFRS 16 impact
Slide 39: 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 40: Thank you
Thank you prysmiangroup.com