Prysmian S.p.a. · MIL:PRY
Prysmian — H1 2024 Earnings Presentation
32 slides from Prysmian's earnings presentation, Aug 1, 2024
Slide 1: Connect, To Lead: 1H 2024 Integrated Results
1H 2024 INTEGRATED RESULTS CONNECT, TO LEAD 1.08.2024
Slide 2: Highlights & Group Overview
1H 2024 INTEGRATED RESULTS HIGHLIGHTS & GROUP OVERVIEW
Slide 3: 1H 2024 Key Highlights
1H 2024 KEY HIGHLIGHTS Solid margin & strong cash generation LTM Adj. EBITDA Q2 869 11.1% 889 451 €M 457 €M €M €M Digital Adj. EBITDA Adj. EBITDA Margin FCF LTM Solutions Electrification Power Grid Transmission -36% 15.2% Scope 1&2 vs. baseline 2019 2Q 2023 2Q 2024 GHG emissions LTM % of recycled co
Slide 4: Encore Wire Acquisition Completed
ENCORE WIRE ACQUISITION COMPLETED A very fast and successful process April 14th June 26th Signing merger agreement Encore Wire EGM approval • Best service model in the industry December 20th May 28th July 2nd • Innovative player in the low voltage Non-binding offer DOJ clearance Closing business in
Slide 5: Sound Margin Improvement & Long Visibility
TRANSMISSION SOUND MARGIN IMPROVEMENT & LONG VISIBILITY SALES ADJUSTED EBITDA BACKLOG EVOLUTION Euro 18.0 11.6% 13.8% Adj. Ebitda Billions Org. Growth margin 73% 1,084 150 1,002 10.7 Submarine 116 6.4 26% 4.2 Land HVDC Euro Millions 1H 2023 1H 2024 1H 2023 1H 2024 Dec 2021 Dec 2022 Dec 2023 Jun 2024
Slide 6: Margin Expansion Sustained by Solid Market Trends
POWER GRID MARGIN EXPANSION SUSTAINED BY SOLID MARKET TRENDS SALES ADJUSTED EBITDA ADJ. EBITDA QUARTERLY EVOLUTION Adj. Ebitda Org. Growth 10.2% 13.2% margin 123 109 115 105 103 1,772 1,802 238 1,622 208 73 182 Euro Millions 1H 2023 2H 2023 1H 2024 1H 2023 2H 2023 1H 2024 1Q23 2Q23 3Q23 4Q23 1Q24 2Q
Slide 7: Sound Performance in Electrification
ELECTRIFICATION SOUND PERFORMANCE IN ELECTRIFICATION Electrification margin at 9.5% (9.4% in 2H 2023) ADJ. EBITDA QUARTERLY EVOLUTION Industrial & Construction INDUSTRIAL & CONSTRUCTION SPECIALTIES 154 136 109 115 114 110 SALES 2,570 2,500 1,642 1,552 Org. Growth Org. Growth 1Q23 2Q23 3Q23 4Q23 1Q24
Slide 8: Sequential Improvement as Expected
DIGITAL SOLUTIONS SEQUENTIAL IMPROVEMENT AS EXPECTED SALES ADJUSTED EBITDA ADJ. EBITDA QUARTERLY EVOLUTION Adj. Ebitda Org. Growth 14.8% 11.6% margin 67 60 44 857 127 35 32 632 656 76 13 Euro Millions 1H 2023 2H 2023 1H 2024 1H 2023 2H 2023 1H 2024 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 LONG TERM GROWTH SUST
Slide 9: Climate Change Ambition Well on Track
CLIMATE CHANGE AMBITION WELL ON TRACK Confirmed commitment to decarbonization path while including Encore Wire in the perimeter -13% -28% Prysmian -36% EW In line with 1.50C Scope 3 trajectory from -47% approved by SBTi -55-60% well below 20C pathway Carbon emissions reduction (%) Scope 1&2 2024 203
Slide 10: 1H 2024: ESG Highlights
1H 2024: ESG HIGHLIGHTS Committed to deliver SDGS SDGS KPI FY FY 2023 2023 1Q 1H 2024 % of reduction of Scope 1&2 GHG Emissions -33% -36% vs baseline 2019 % of revenues linked to sustainable products 37% 43% % of recycled content on PE jacket and copper 12.7% 15.2% % of Executive women 18.8% 19.2% %
Slide 11: Financial Results
1H 2024 INTEGRATED RESULTS FINANCIAL RESULTS Pier Francesco Facchini Prysmian CFO
Slide 12: Profit & loss statement
Profit & loss statement 1H 2024 1H 2023 ADJ. EBITDA BRIDGE SALES 7,819 8,003 YoY organic growth (3.0%) Adj.EBITDA 869 878 % on sales 11.1% 11.0% Q1 Q2 1H Adj.EBIT 676 702 ADJ. EBITDA 2023 427 451 878 % on sales 8.6% 8.8% Transmission 8 26 34 Adjustments (68) (50) Non monetary items (16) (16) Power G
Slide 13: Strong cash generation LTM
Strong cash generation LTM 889 €M Free Cash Flow ( 1,243 ) 200 ( 253 ) 198 67 ( 14 ) 669 2,065 ( 368 ) 1,321 30-Jun-23 Cash flow WC Net Operative Financial Dividend Dividend Convertible IFRS 16, FX, 30-Jun-24 net debt operations changes Capex Charges received paid Bonds, Share Other net debt (before
Slide 14: Outlook & Closing Remarks
1H 2024 INTEGRATED RESULTS OUTLOOK & CLOSING REMARKS
Slide 15: Upgrading Outlook 2024
UPGRADING OUTLOOK 2024 FY 2024 Prysmian + H2 2024 Encore Wire ADJ. EBITDA 1,925±25 ADJ. EBITDA 1,925 2024 TARGET (€M) 1,900 1,950 Mid-point 1,625±50 FCF 2024 880 TARGET (€M) 840 920 Mid-point 1H 2023 Prysmian 1H 2024 Prysmian 1H 2024Wire Encore 1H 2024 New FY24 FY24 FY24 2H24 guidance previous guida
Slide 16: Closing Remarks
CLOSING REMARKS 1. Transmission and Power Grid complement an overall strong set of results 2. Encore Wire acquisition completed faster than expected. Integration process moving ahead quickly 3. Sound cash generation 4. Decarbonization path well on track, including EW’s scope 16
Slide 17: Appendix
Appendix Oo prysmian v7
Slide 18: Financial highlights
Financial highlights Sales Adj.EBITDA 1H 2024 1H 2023 1H 2024 1H 2023 organic Adj.EBITDA Adj.EBITDA €M €M €M €M growth Margin Margin TRANSMISSION 1,084 9.5% 1,002 150 13.8% 116 11.6% POWER GRID 1,802 1.7% 1,772 238 13.2% 182 10.2% INDUSTRIAL & CONSTRUCTION 2,500 -3.0% 2,570 224 9.0% 290 11.3% SPECIA
Slide 19: Sales at standard metal prices
Sales at standard metal prices Sales current Sales Standard Sales Adj. Ebitda Adj. Ebitda Sales Adj. Ebitda Adj. Ebitda €M €M margin €M €M margin TRANSMISSION 1,084 150 13.8% 1,069 150 14.0% POWER GRID 1,802 238 13.2% 1,614 238 14.8% ELECTRIFICATION 4,277 405 9.5% 3,609 405 11.2% 1H I&C 2,500 224 9.
Slide 20: Profit & loss statement
Profit & loss statement Adjustments and non monetary items on EBIT 1H 2024 1H 2023 SALES 7,819 8,003 1H 2024 1H 2023 YoY total growth (2.3%) Non-recurring Items (6) (3) YoY organic growth (3.0%) Restructuring (48) (9) Adj.EBITDA 869 878 Other Non-operating Income / (Expenses) (14) (38) % on sales 11
Slide 21: Statement of financial position (balance sheet)
Statement of financial position (balance sheet) 30 Jun 2024 30 Jun 2023 31 Dec 2023 Net fixed assets 5,823 5,609 5,709 of which: goodwill 1,691 1,674 1,660 Net working capital 1,290 1,362 518 of which: derivatives assets/(liabilities) 172 (55) (7) of which: Operative Net working capital 1,118 1,417
Slide 22: Cash flow statement
Cash flow statement 30 Jun 2024 12 Months 30 Jun 2023 (from 1/7/2023 to 30/6/2024) Adj.EBITDA 869 878 1,619 Adjustments (68) (50) (161) EBITDA 801 828 1,458 Net Change in provisions & others 11 18 75 Share of income from investments in op.activities (20) (15) (38) Cash flow from operations (before W
Slide 23: Bridge consolidation sales
Bridge consolidation sales TRANSMISSION POWER GRID INDUSTRIAL & CONSTRUCTION ( 12 ) ( 1) 31 - (1) 95 ( 77 ) 10 (3) 1,002 Org.growth 1,084 1,772 Org.growth 1,802 2,570 Org.growth 2,500 9.5% 1.7% -3.0% 1H 2023 Organic Metal Exchange 1H 2024 1H 2023 Organic Metal Exchange 1H 2024 1H 2023 Organic Metal
Slide 24: Our sustainability journey rooted in the past
Our sustainability journey rooted in the past BUILDING TOMORROW’S SUSTAINABILITY FIRST INTEGRATED REPORT Optical cable FlexRibbon SBTI APPROVAL 2023 TCFD REPORT 6912 fibers BOARD 2022 SUSTAINABILITY COMMITTEE INCLUSION OF ESG IN 2021 MV P-Laser REMUNERATION • Submarine 525 kV FIRST 2020 • E3X robot
Slide 25: A truly public company, based on inclusion
A truly public company, based on inclusion PRYSMIAN SHAREHOLDING STRUCTURE INSTITUTIONAL INVESTORS 3% Employees incl. Management 8.1% Retail 1.4% Treasury shares 49% ESG investors US 30% UK 28% France 12% 87.5% Rest of EU 13% Italy 7% Germany 4% Institutional Investors Sweden 2% RoW 4% 25
Slide 26: We innovate to support our customers
We innovate to support our Sirocco Extreme customers and E3X Robot to go beyond the value chain Circular economy Alesea Megawatt charging solutions Product Supply chain design digitalization Smart accessories PRY-ID All Ground Selection of innovative solutions 26
Slide 27: Sustainability also means equity and inclusion
Sustainability also means equity and inclusion 45-50% Employees holding shares by 2027 35-37 Training hours for employee +500 Women in STEM by 2027 27
Slide 28: Promoting talent within under-privileged communities
Promoting talent within under-privileged communities 1,400+ Children 400+ Women and young girls 315 women and 625 children in the 100 women and 800 young girls in LATAM Netherlands children in Oman 28
Slide 29: Sustainability development goals
Sustainability development goals 20 40 60 80 100 CCC B BB BBB A AA AAA 20 40 60 80 100 80 A 76 1 2 3 4 5 20 40 60 80 100 10 20 30 40 We are included in 4.0 65 13 200 150 100 50 1 20 40 60 80 100 D- D C- C B- B A- A 58 58 A- 29
Slide 30: Notes
Notes 1) FCF excluding Acquisitions & Disposals and Antitrust impact; 2) Adjusted EBITDA: EBITDA excluding restructuring, non-operating income/expenses and non-recurring income / expenses 3) Slide 5: Total backlog including SURF and Submarine Telecom 4) Slide 10: 1H 2024 GHG emission reduction is ca
Slide 31: Disclaimer
Disclaimer ▪ The managers responsible for preparing the represent investment advice or a recommendation company's financial reports, A.Brunetti and for the purchase or sale of financial products and/or S.Invernici, declare, pursuant to paragraph 2 of of any kind of financial services. Finally, this
Slide 32: prysmian.com
prysmian.com