Slide 1: FY2020 Financial Results
FY2020 Financial Results Milan, 10 March 2021
Slide 2: Highlights Results
2020 Financial Appendix Highlights Results GROUP OVERVIEW OUTLOOK © Prysmian Group 2020 2
Slide 3: 2020 Priorities
2020 Priorities Protecting Value while Investing in the Future PEOPLE & PROTECTING 69% 48% CUSTOMERS FIRST THE BUSINESS RECYCLED WASTE of revenues from LOW CARBON vs 63% in 2019 enabling products / Protecting employees also through widespread and continuous tests, distribution / Cash flow protection
Slide 4: 2020 Financial highlights
2020 Financial highlights SALES ADJ. EBITDA FREE CASH FLOW SALES ORGANIC GROWTH* ADJ. EBITDA ADJ. EBITDA MARGIN FCF NET DEBT 10.02 €B -8.3% 840 €M 8.4% 487 €M 1,986 €M SEQUENTIAL IMPROVEMENT RESILIENT MARGINS RECORD FREE CASH FLOW -4.8% in Q4, showing sequential supported by strong and timely action
Slide 5: 2020 Financial highlights
2020 Financial highlights Euro Millions, % on Sales SALES ADJUSTED EBITDA (1) -10.3%* 11,519 1,007 10,016 840 8.7% 8.4% 2019 2020 2019 2020 * Organic growth REPORTED OPERATIVE NET WORKING CAPITAL (2) REPORTED NET FINANCIAL DEBT 749 2,140 1,986 432 6.5% 4.3% DEC-19 DEC-20 DEC-19 DEC-20 © Prysmian Gro
Slide 6: 2020 Organic growth y-o-y; excluding Projects segment
2020 Organic growth y-o-y; excluding Projects segment -8.9% -6.5% EMEA NORTH AMERICA 3.3% -4.4% -4.2% -7.4% -10.1% ASIA PACIFIC -6.2% -7.9% -18.1% -1.8% -14.6% -9.7% -9.2% -20.5% -10.4% -8.3% LATIN AMERICA GROUP 1.4% -4.8% -0.9% -5.4% -5.2% -13.4% -17.0% -27.3% FY Q1 Q2 Q3 Q4 © Prysmian Group 2020 6
Slide 7: Sales & Adj. EBITDA by Business
Sales & Adj. EBITDA by Business Euro Millions, % on Sales Projects Energy Telecom TOTAL 1,844 1,438 -20.6% 8,027 7,207 -7.1% -4.9% 1,648 1,371 -14.1% 11,519 10,016 -10.3% -34.4% -3.8% -10.9% Sales Sales E&I Industrial & NWC 5,285 4,735 -7.5% 2,492 2,252 -7.0% 1,007 -4.0% -7.2% 32 forex 308 274 275 2
Slide 8: E&I Trading update
150 E&I Trading update EMEA 2019 Monthly Volume Evolution 100 2020 50 JEN FEB MAR APR JUN JUL AUG SEP OCT NOV DEC 150 150 100 NORTH AMERICA 100 50 JEN FEB MAR APR JUN JUL AUG SEP OCT NOV DEC 50 APAC JEN FEB MAR APR JUN JUL AUG SEP OCT NOV DEC 150 LATIN AMERICA 150 100 100 50 JEN FEB MAR APR JUN JUL
Slide 9: Sales & Adj. EBITDA by Geography
Sales & Adj. EBITDA by Geography Euro Millions, % on Sales EMEA NORTH AMERICA LATIN AMERICA ASIA PACIFIC TOTAL 6,196 5,344 -8.9% 3,441 3,084 -6.5% 931 775 -10.4% 951 813 -10.1% 11,519 10,016 -8.3% Sales Sales 1,007 491 32 forex 370 352 354 102 68 62 48 Adj. Ebitda Adj. Ebitda 22 840 14 7.9% 6.9% 10.
Slide 10: Group Overview
2020 Financial Appendix Highlights Results GROUP OVERVIEW OUTLOOK © Prysmian Group 2020 10
Slide 11: 2021 Outlook: a promising start in a still uncertain environment
2021 Outlook: a promising start in a still uncertain environment 2021 ADJ. EBITDA TARGET (€M) 2021 FCF TARGET (€M) 870 940 FCF before acquisition & disposals ~ 300 ±20% 32 20-25 forex forex 870 - 940 840 2020 Projects Energy Telecom Forex 2021 Adj. Ebitda Adj. Ebitda Assuming no relevant Covid disru
Slide 12: Prysmian Climate Change Ambition and Targets
Prysmian Climate Change Ambition and Targets 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 between 2035 and 2040 for our Scope 1&2 emissions, -46% 2030 Scope 1&2 interim target and by 205
Slide 13: Focused on generating Shareholders Value
Focused on generating Shareholders Value Dividend proposal to the next AGM DIVIDEND YIELD (1) DATE EX-DIVIDEND DATE: 24 May 2021 DIVIDEND PER SHARE 0.50 2.3% RECORD DATE: 25 May 2021 euro per share PAYMENT DATE: 26 May 2021 DPS EVOLUTION (EURO PER SHARE) TSR Covid-19 prudent Draka acquisition approa
Slide 14: Financial Appendix
2020 Financial Appendix Highlights Results GROUP OVERVIEW OUTLOOK 14
Slide 15: Profit and Loss Statement
Profit and Loss Statement Euro Millions 2020 2019 Adj. EBITDA Bridge SALES 10,016 11,519 YoY total growth (13.0%) Q1 Q2 Q3 Q4 FY YoY organic growth (10.3%) ADJ. EBITDA 2019 231 290 252 234 1,007 Adj.EBITDA 840 1,007 Projects (3) (14) (5) (20) (42) % on sales 8.4% 8.7% Energy 1 (22) (15) (29) (65) of
Slide 16: Profit and Loss Statement
Profit and Loss Statement Euro Millions 2020 2019 SALES 10,016 11,519 YoY total growth (13.0%) YoY organic growth (10.3%) Adj.EBITDA 840 1,007 % on sales 8.4% 8.7% of which share of net income 18 24 Adjustments (59) (100) Financial Charges EBITDA 781 907 % on sales 7.8% 7.9% 2020 2019 Adj.EBIT 515 6
Slide 17: Statement of financial position (Balance Sheet)
Statement of financial position (Balance Sheet) Euro Millions 31 Dec 2020 31 Dec 2019 Net fixed assets 4,971 5,301 of which: goodwill 1,508 1,590 Net working capital 523 755 of which: derivatives assets/(liabilities) 91 6 of which: Operative Net working capital 432 749 Provisions & deferred taxes (5
Slide 18: Cash Flow
Cash Flow Euro Millions NET DEBT EVOLUTION +375 €M Free Cash Flow ( 822 ) 72 79 142 (8) 70 86 244 ( 259 ) 112 130 2,140 1,986 31-dic-19 Cash flow WC Restruct, non Antitrust Net Operative Financial Paid income Dividend Dividend IFRS 16 Other 31-dic-20 operations changes operating & Capex Charges taxe
Slide 19: Prysmian Group Liquidity and Debt Profile
Prysmian Group Liquidity and Debt Profile COMFORTABLE LIQUIDITY POSITION: / Average debt maturity increased to 3.8 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
Slide 20: Outlook / Group Overview
2020 Financial Appendix Highlights Results GROUP OVERVIEW OUTLOOK 20
Slide 21: 2020 Organic growth y-o-y; excluding Projects segment
2020 Organic growth y-o-y; excluding Projects segment FY Q1 Q2 Q3 Q4 -7.1% -14.1% -8.3% TELECOM GROUP ENERGY -3.8% -2.4% -4.9% -5.4% -4.2% -10.0% -5.2% -4.8% -19.0% -21.1% -17.0% -16.1% -7.5% -7.0% E&I INDUSTRIAL & NWC -0.3% -3.5% -4.4% -4.0% -4.1% -7.2% -17.0% -15.9% © Prysmian Group 2020 21
Slide 22: A solid pipeline of projects
A solid pipeline of projects Expected market by segment (b€/yr, ordering date) 7.2 €Bn Overall new orders (avg.) expected in the next decade, with Europe to lead the market Offshore Wind Interconnectors HISTORICAL MARKET FUTURE MARKET Including German 7.2 Corridors 2.4 2015 2016 2017 2018 2019 Avera
Slide 23: The highest installation capabilities Enabling Energy Transition
The highest installation capabilities Enabling Energy Transition LEONARDO DA VINCI: THE MOST ADVANCED CABLE-LAYING VESSEL IN THE WORLD / With 171-metre, Leonardo da Vinci will CONSOLIDATE THE GROUP’S LEADERSHIP and boost the capability of submarine cable operations / 2 rotating platforms of 7,000 an
Slide 24: 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 25: Performance by Segment
Performance by Segment Euro Millions, % on Sales 2019 2020 16.6% 15.6% Adj. EBITDA Margin 12.4% 13.0% 7.9% 7.4% 8.7% 8.4% 5.8% 5.8% PROJECT E&I INDUSTRIAL & NWC. TELECOM TOTAL Adj. EBITDA (€M) / % Org. Growth 2019 2020 ±X.X% = Sales Organic Trend -10.3% 1,007 840 -20.6% -7.5% -7.0% -14.1% 308 275 27
Slide 26: Projects
Projects Euro Millions, % on Sales SALES HIGHLIGHTS -20.6%* SUBMARINE / Unfavorable projects mix and undersaturation of extruded capacity affecting Submarine trend / Tendering activity ongoing, with a solid pipeline of projects (interconnections and off-shore wind farms) 1,844 1,438 UNDERGROUND HIGH
Slide 27: Energy & Infrastructure
Energy & Infrastructure Euro Millions, % on Sales SALES HIGHLIGHTS TRADE & INSTALLERS -7.5%* / Negative performance mainly in Q2 driven by EMEA (South Europe, UK & MEAT) and LATAM / Sound growth in Q4 in LATAM and APAC POWER DISTRIBUTION 5,285 / Solid performance in North America driven by Onshore W
Slide 28: Industrial & Network Components
Industrial & Network Components Euro Millions, % on Sales SALES HIGHLIGHTS -7.0%* SPECIALTIES, OEM & RENEWABLES / Overall positive performance and resilience to Covid-19. Very good performances of Railways, Wind and Nuclear and important progress in Solar. / Mining and Infrastructures suffered the e
Slide 29: Telecom
Telecom Euro Millions, % on Sales SALES HIGHLIGHTS -14.1%* OPTICAL CABLE & FIBRE / Sales decline partly expected, further impacted by COVID effect / Sequential improvement in optical cables volume, accelerated in Q4, (mainly North America) / Cost efficiency measures partly offsetting volume effect a
Slide 30: Cash Flow Statement
Cash Flow Statement 31 Dec 2020 31 Dec 2019 Euro Millions Adj.EBITDA 840 1,007 Adjustments (59) (100) EBITDA 781 907 Net Change in provisions & others (183) (73) Share of income from investments in op.activities (18) (24) Cash flow from operations (before WC changes) 580 810 Working Capital changes
Slide 31: Financial Highlights
Financial Highlights Euro Millions Sales Adj.EBITDA FY 2020 FY 2019 FY 2020 FY 2019 organic Adj.EBITDA Adj.EBITDA €M €M €M €M growth Margin Margin PROJECTS 1,438 -20.6% 1,844 186 13.0% 228 12.4% Energy & Infrastructure 4,735 -7.5% 5,285 275 5.8% 308 5.8% Industrial & Network Components 2,252 -7.0% 2
Slide 32: Bridge Consolidation Sales
Bridge Consolidation Sales Euro Millions PROJECTS ENERGY & INFRASTRUCTURE ( 379 ) ( 398 ) 19 (171) (2) ( 25 ) 1,844 Org.growth 5,285 Org.growth 1,438 -7.5% 4,735 -20.6% TOTAL CONSOLIDATED 2019 Organic Metal Exchange 2020 2019 Organic Metal Exchange 2020 Growth Effect Rate Growth Effect Rate (1,185 )
Slide 33: Integration completed ahead of time: the Value of General Cable
Integration completed ahead of time: the Value of General Cable 2020 SALES BREAKDOWN 2020 ADJ. EBITDA BREAKDOWN IMPROVING GEOGRAPHICAL BALANCE LatAm 8% LatAm 8% EMEA COMPLEMENTARY PRODUCT MIX EMEA 44% North America 53% 31% North America 42% DELIVERING CROSS SELLING SYNERGIES APAC 8% APAC 6% SOUND VA
Slide 34: Energy Transition: Prysmian awarded approx. 50% of German HV projects
Energy Transition Prysmian awarded approx. 50% of the overall German HV projects SuedOstLink €500 M / Client: TenneT TSO GmbH 1,100 km cable 5 lots / Type of cable: 525 kV extruded Prysmian awarded contract; / Completion date: early 2026 ~50% of project A-Nord €500 M / Client: AMPRION GmbH 1,280 km
Slide 35: Driving innovation in a reliable and sustainable manner
Driving innovation in a reliable and sustainable manner TWO 525 kV HVDC P-LASER ADVANTAGES Technologies SUSTAINABLE HIGHER FASTER PERFORMANCE OPERATIONS XLPE Prysmian developed WORLD CLASS COMPETENCES SUSTAINABLE: AND EXPERTISE IN HVDC over the last 10yr innovation 100% recyclable, 40% lower CO2 emi
Slide 36: Prysmian group at a glance
Prysmian group at a glance 2020 Financial Results SALES BREAKDOWN BY BUSINESS SALES BREAKDOWN BY GEOGRAPHY Latam North 8% Telecom 14% Energy & €10.0 BN America 31% €10.0 BN Infrastructure 47% Energy Industrial & EMEA 72% Network 53% Components 23% Projects Other 2% 14% APAC 8% Adj. EBITDA BY BUSINES
Slide 37: Projects 2020 sales breakdown
Projects 2020 sales breakdown SALES BREAKDOWN BY BUSINESS SALES BREAKDOWN BY GEOGRAPHY North America LatAm 5% 3% High Voltage Submarine 44% Energy APAC 50% 5% €1.4 BN Offshore specialities EMEA €1.4 BN 87% 4% Submarine TLC 2% © Prysmian Group 2020 37
Slide 38: Energy & Infrastructure 2020 sales breakdown
Energy & Infrastructure 2020 sales breakdown SALES BREAKDOWN BY BUSINESS SALES BREAKDOWN BY GEOGRAPHY Power North America Distribution EMEA 34% Trade & 35% 50% Installers 61% €4.7 BN Overhead €4.7 BN 4% APAC LatAm 6% 10% © Prysmian Group 2020 38
Slide 39: Industrial & Network Components 2020 sales breakdown
Industrial & Network Components 2020 sales breakdown SALES BREAKDOWN BY BUSINESS SALES BREAKDOWN BY GEOGRAPHY Network Components 6% Core Oil & Gas products EMEA 40% Other 11% North America Industrial 38% 11% Elevators 11% €2.3 BN Specialties, OEM & €2.3 BN Renewables 41% Automotive LatAm APAC 20% 6%
Slide 40: Telecom 2020 sales breakdown
Telecom 2020 sales breakdown SALES BREAKDOWN BY BUSINESS SALES BREAKDOWN BY GEOGRAPHY North America MMS EMEA 32% 30% 55% LatAm Fiber 7% 5% €1.4 BN Telecom €1.4 BN Solutions 65% APAC 6% © Prysmian Group 2020 40
Slide 41: 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; Share of net income include Management estimate of YOFC Q4 results. © Prysmian Group 2020 41
Slide 42: 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
Slide 43: Thank you
Thank you prysmiangroup.com