Prysmian S.p.a. · MIL:PRY
Prysmian — FY2015 Earnings Presentation
35 slides from Prysmian's earnings presentation, Feb 24, 2016
Slide 1: FY 2015 Financial Results
FY 2015 Financial Results Milan – February 24th, 2016
Slide 2: Agenda
Agenda FY 2015 Highlights o Group overview o Results by business o Focus on OCI Acquisition Financial results Appendix FY 2015 Financial Results 2
Slide 3: FY 2015 Highlights
FY 2015 Highlights FY2015 Organic Growth ex. WL impact at +5.9% (+3.2% in Q4). Sound execution in Energy Projects (+18.2% organic growth ex WL) Solid market fundamentals in Telecom (+9.9% organic growth). Adj. EBITDA at € 623m: guidance achieved in line with expectations. Strong contribution
Slide 4: FY 2015 Key Financials
FY 2015 Key Financials Euro Millions, % on Sales Sales Adjusted EBITDA (1) Excl. WL Excl. WL +1.8%* +5.3%* +2.7%* +5.9%* 649 613 623 613 603 7,466 7,361 509 6,995 6,995 6,840 6,901 8.8% 7.4% 8.5% 8.8% 8.7% 8.7% 2013 2014 2015 2013 2014 2015 2013 2014 2015 2013 2014 2015 * Org. Growth Operative Net W
Slide 5: Continued organic growth and profitability improvement
Continued organic growth and profitability improvement Profitability increase driven by Energy Projects, Telecom & E&I Organic Growth* (% change) Adj.EBITDA (€ M) 2014 2015 2015 Org. Growth 649 Western Link Energy Projects 2014 Org. Growth effect 26 603 18.2% 94 15.8% Total 272 248 26 9.9% 623 94 50
Slide 6: Production capacity rationalization in progress
Production capacity rationalization in progress. 12 plants closed to date, 3 closure ongoing: improve saturation in Europe 12 Plants Closed Since Draka Acquisition: St.Petersburg (RUS) • At 31 Dec 2010 (pro-forma): 98 Plants Amsterdam (NED) • Today: 86 Plants (excl. OCI) Derby (UK) Eschweiler (GER)
Slide 7: Agenda
Agenda FY 2015 Highlights o Group overview o Results by business o Focus on OCI Acquisition Financial results Appendix FY 2015 Financial Results 7
Slide 8: Energy Projects
Energy Projects Euro Millions, % on Sales Sales Highlights Excl. WL Submarine +15.8%* +18.2%* • Markets remains mainly concentrated in Europe, with an increasing 1,692 tendering activity for new off-shore wind projects in France and UK. +1.7%* 1,587 +6.1%* • Order book remains close to peak levels,
Slide 9: Leadership in submarine reconfirmed in 2015
Leadership in submarine reconfirmed in 2015. Record visibility in Submarine Transmission – Orders Backlog (€m) Major projects awarded in 2015 SUBMARINE Submarine High Voltage 1. NSN Link, Norway-UK € 550m ~3,500 ~3,200 2. 50 Hertz (Option), Germany € 230m ~600 ~3,000 3. Hainan II, China $ 140m ~600
Slide 10: Energy & Infrastructure
Energy & Infrastructure Euro Millions, % on Sales Sales Highlights +3.0%* Trade & Installers +2.7%* 2,795 • Flat organic sales growth. Stable pricing environment. 2,747 • Positive trend in Europe (especially in Spain, UK and the Nordics) and North America. 2,677 • Weak demand in Brazil affected by n
Slide 11: Industrial & Network Components
Industrial & Network Components Euro Millions, % on Sales Sales Highlights -0.3%* Specialties & OEMs -2.3%* 1,788 • Moderate growth recorded in 2015. 1,749 • Positive performance in N. America and Europe, mainly driven by 1,708 Nuclear, Crane and Railway. • Marine and Mining segments suffering from
Slide 12: Telecom
Telecom Euro Millions, % on Sales Sales Highlights +9.9%* Optical, Connectivity & Fiber 1,109 • Solid demand in EU, US and Australia, while Brazil is still suffering +4.0%* from a difficult macro environment. • Prices broadly stable vs. 2014. Margin improving thanks to scale 986 994 effect, industri
Slide 13: Agenda
Agenda FY 2015 Highlights o Group overview o Results by business o Focus on OCI Acquisition Financial results Appendix FY 2015 Financial Results 13
Slide 14: Focus on Oman Cables Industry Acquisition
Focus on Oman Cables Industry Acquisition A perfect example of “Bolt-on” acquisition. 2015 Sales Breakdown (€ million (1)) Structure of the Deal STRUCTURE OF THE DEAL MENA Domestic • Acquisition of approx. 16% stake in listed 57% 43% company OCI • Total cash consideration € 105 million Sales FY15 •
Slide 15: Agenda
Agenda FY 2015 Highlights o Group overview o Results by business o Focus on OCI Acquisition Financial results Appendix FY 2015 Financial Results 15
Slide 16: Profit and Loss Statement
Profit and Loss Statement Euro Millions WL effect FY 2015 FY 2014 FY’15 vs. FY’14 Sales 7,361 6,840 (44) YoY total growth 7.6% (2.2%) (26) in FY’15 YoY organic growth 5.3% 1.8% (94) in FY’14 YoY organic growth excl. WL 5.9% 2.7% Adj.EBITDA 623 509 68 % on sales 8.5% 7.4% Adj.EBITDA excl. WL 649 603
Slide 17: Non Recurring and Special Items on EBIT
Non Recurring and Special Items on EBIT Euro Millions FY 2015 FY 2014 Antitrust investigation 29 31 Restructuring (53) (48) Price adjustments - 22 Other 23 (18) EBITDA adjustments (1) (13) Special items (73) (40) Gain/(loss) on metal derivatives (27) 7 Assets impairment (21) (44) Other (25) (3) EBIT
Slide 18: Financial Charges
Financial Charges Euro Millions FY 2015 FY 2014 Net interest expenses (73) (87) of which non cash Conv.Bond interest exp. (8) (8) Bank fees amortization (4) (7) Gain/(loss) on exchange rates (31) (20) Gain/(loss) on derivatives 1 ) 12 (16) Non recurring effects 7 (10) Net financial charges (89) (140
Slide 19: Statement of financial position (Balance Sheet)
Statement of financial position (Balance Sheet) Euro Millions 31 Dec 2015 New Perimeter 31 Dec 2014 Acquired Net fixed assets 2,480 280 2,219 of which: goodwill 539 157 380 of which: other intangible assets 183 28 181 of which: property, plants & equipment 1,551 95 1,414 Net working capital 342 230
Slide 20: Cash Flow
Cash Flow Euro Millions FY 2015 FY 2014 Adj.EBITDA 623 509 Non recurring items (1) (13) EBITDA 622 496 ∆ NFP 2010PF -2015 Net Change in provisions & others (75) (53) NFP Pro-forma 2010* (1,214) Share of income from investments in op.activities (39) (43) Cash flow from operations (before WC changes)
Slide 21: Dividend proposal
Dividend proposal Dividend proposed to the forthcoming Shareholders’ Meeting Total Shares (1) • Dividend Per Share € 0.42 • Total payout: € 90 millions 216,720,922 • Ex-dividend date: 18 April 2016 • Payment date: 20 April 2016 Shares with dividend right (2) DPS evolution (Euro per share) 214,013,74
Slide 22: Agenda
Agenda FY 2015 Highlights o Group overview o Results by business o Focus on OCI Acquisition Financial results Appendix FY 2015 Financial Results 22
Slide 23: Prysmian group at a glance
Prysmian group at a glance FY 2015 Financial Results Sales breakdown by business Sales breakdown by geography Telecom Energy APAC 15% Projects 13% Other 22% Latin America 2% 8% EMEA € 7,361m € 7,361m Industrial & 63% Netw.Comp. North America Energy 24% 16% Products 63% E&I 38% Adj. EBITDA by busines
Slide 24: Energy Projects
Energy Projects Sales breakdown Sales by business Sales by geographical area SURF APAC 11% 8% Latin America 9% High Voltage North America 33% Sales FY15 12% Sales FY15 € 1,587 m € 1,587 m Submarine 56% EMEA 71% FY 2015 Financial Results 24
Slide 25: Energy & Infrastructure
Energy & Infrastructure Sales breakdown Sales by business Sales by geographical area APAC 10% Power Distribution Latin America 33% 7% Sales FY15 North America Sales FY15 € 2,795 m 13% € 2,795 Trade & Installers EMEA 67% 70% FY 2015 Financial Results 25
Slide 26: Industrial & Network Components
Industrial & Network Components Sales breakdown Sales by business Sales by geographical area Other Network 5% Components APAC 8% 1) Specialties & OEMs 25% 43% EMEA 46% Automotive 18% Sales FY15 Sales FY15 € 1,749 m € 1,749 m Latin America 5% Elevator 12% North America Oil & Gas 24% 14% 1) Includes R
Slide 27: Telecom
Telecom Sales breakdown Sales by business Sales by geographical area OPGW & Other APAC Copper 4% 15% 11% Latin America 13% Sales FY15 Sales FY15 Multimedia & € 1.1 bn € 1.1 bn Specials 21% EMEA North America 56% Optical, 16% Connectivity & Fiber 64% FY 2015 Financial Results 27
Slide 28: Bridge Consolidated Sales
Bridge Consolidated Sales Euro Millions Energy Projects Energy Products 214 23 3 53 ( 72 ) 193 ( 9) Org. growth +1.2% 1,560 1,560 1,583 1,587 4,491 4,665 1,355 1,355 Org.growth +15.8% FY 2014 Org.Growth Metal Effect Exc. Rate Perimeter FY 2015 FY 2014 Org.Growth Metal Effect Exc. Rate FY 2015 change
Slide 29: Profit and Loss Statement
Profit and Loss Statement Euro Millions FY 2015 excl. FY 2015 FY 2014 excl. FY 2014 WL submarine WL submarine FY 2015 WL submarine WL submarine FY 2014 project effect project effect project effect project effect Sales 7,466 (105) 7,361 6,901 (61) 6,840 YoY total growth 8.2% 7.6% (1.3%) (2.2%) YoY or
Slide 30: Energy Projects Segment – Profit and Loss Statement
Energy Projects Segment – Profit and Loss Statement Euro Millions FY 2015 excl. FY 2015 WL FY 2014 excl. FY 2014 WL FY 2015 FY 2014 WL effect effect WL effect effect Sales to Third Parties 1,692 (105) 1,587 1,416 (61) 1,355 YoY total growth 19.5% 17.1% 4.2% (0.3%) YoY organic growth 18.2% 15.8% 6.1%
Slide 31: Energy Products Segment – Profit and Loss Statement
Energy Products Segment – Profit and Loss Statement Euro Millions FY 2015 FY 2014 E&I 2,795 2,677 YoY total growth 4.4% (2.6%) Sales to Third Parties YoY organic growth 3.0% 2.7% Industrial & Netw. Comp. 1,749 1,708 YoY total growth 2.4% (4.4%) YoY organic growth (2.3%) (0.3%) Other 121 106 YoY tota
Slide 32: Telecom Segment – Profit and Loss Statement
Telecom Segment – Profit and Loss Statement Euro Millions FY 2015 FY 2014 Sales to Third Parties 1,109 994 YoY total growth 11.6% 0.8% YoY organic growth 9.9% 4.0% Adj. EBITDA 134 116 % on sales 12.1% 11.7% Adj. EBIT 90 74 % on sales 8.1% 7.4% FY 2015 Financial Results 32
Slide 33: Western Link effect: new financial impact
Western Link effect: new financial impact Euro 35 Millions project’s result improvement Previous Financial Impact on Adj. Ebitda (€m) 17 94 56 Proj. loss 24 150 167 anticip. ’14 margin 94 cancelation 70 2014 Actual 2015 Prev 2016 Prev Prev Total impact Impact Impact WL effect Highlights and Actions
Slide 34: 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-16 J-08 J-09 J-
Slide 35: 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