Prysmian S.p.a. · MIL:PRY
Prysmian — Q1 2023 Earnings Presentation
33 slides from Prysmian's earnings presentation, May 11, 2023
Slide 1: 1Q 2023 Financial Results
1Q 2023 Financial Results May 11th, 2023 © Prysmian Group 2021 1
Slide 2: 1Q 2023: Consistent Growth Driven by Secular Trends
1Q 2023: CONSISTENT GROWTH DRIVEN BY SECULAR TRENDS WIDESPREAD GROWTH ACROSS GEOGRAPHIES AND BUSINESSES Group Sales Group Adj. EBITDA Group FCF LTM* Net Debt 3,992 €M 427 €M 581 €M 2,074 €M Group Org. Growth Group Adj. EBITDA margin Grid Hardening Org. Growth Operative net working capital (PD+Overhe
Slide 3: Consistent Growth Across Segments
CONSISTENT GROWTH ACROSS SEGMENTS Projects Energy Telecom TOTAL 406 563 +29.5% 2,839 2,969 +6.6% 432 460 +5.7% 3,677 3,992 +9.0% Sales Sales E&I Industrial & NWC 427 1,941 2,031 +7.5% 802 835 +5.2% 288 221 Adj. Ebitda Adj. Ebitda 82 67 67 56 132 55 9 7 32 7.8% 10.0% 6.8% 10.9% 6.8% 9.8% 15.6% 14.6%
Slide 4: High Visibility and Strong Focus on Execution
HIGH VISIBILITY AND STRONG FOCUS ON EXECUTION ALL-TIME HIGH BACKLOG: > 9 €Bn STRONG MARKET DEMAND only firm orders included in the backlog 9.1 Interconnectors Offshore Wind Biscay Gulf €Bn 0.8 interconnection Including 16 Frame 6.6 Avg. Market Agreements >13 B€ Billion 12 Ex Frame Agreements 4.4 >4x
Slide 5: Grid Hardening Driving PD & Overhead Lines (E&I)
GRID HARDENING DRIVING PD & OVERHEAD LINES (E&I) Interregional Grid - Overhead Lines Power Distribution & Overhead Lines business segment 26.3% Organic Growth 19.9% y-o-y 15.9% 11.4% 12.2% 8.6% 10.5% -2.4% -8.1% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 21 21 21 21 22 22 22 22 23 Adj. Ebitda • Well positioned to c
Slide 6: Organic Growth Across Regions
ORGANIC GROWTH ACROSS REGIONS Data excluding The value of a wide geographical presence Projects Business EMEA NORTH AMERICA LATIN AMERICA ASIA PACIFIC 1,565 1,665 +8.5% 1,151 1,214 +7.5% 290 306 +2.4% 265 244 -5.3% org. growth Sales 216 Adj. Ebitda 142 106 71 24 31 19 18 4.5% 6.4% 12.3% 17.8% 8.3% 1
Slide 7: 2023–2025 Sustainability Scorecard
2023 – 2025 SUSTAINABILITY SCORECARD Category BASELINE TARGET TARGET SDGs KPI Included in 2022 2025 2030 21m 110m Enable access to green electricity to households Impacts on Society Enable fast digital access to households 3m 15m Percentage reduction of Scope 1&2 GHG Emissions vs baseline 2019 LTI -
Slide 8: Financial Results
WWW LLL AGENDA Financial Results Prysmian Linking Group the Future
Slide 9: Profit and Loss Statement
PROFIT AND LOSS STATEMENT Euro Millions 1Q 2023 1Q 2022 SALES 3,992 3,677 Adj. EBITDA Bridge YoY total growth 8.6% Q1 YoY organic growth 9.0% Adj.EBITDA 427 288 ADJ. EBITDA 2022 288 % on sales 10.7% 7.8% Projects 24 of which share of net income 8 11 Energy 115 Adjustments (29) (3) Telecom (ex-share
Slide 10: Statement of Financial Position (Balance Sheet)
STATEMENT OF FINANCIAL POSITION (BALANCE SHEET) Euro Millions 31 Mar 2023 31 Mar 2022 31 Dec 2022 Net fixed assets 5,533 5,367 5,583 of which: goodwill 1,671 1,664 1,691 Net working capital 1,463 1,516 614 of which: derivatives assets/(liabilities) 38 229 5 of which: Operative Net working capital 1,
Slide 11: Cash Flow
CASH FLOW +581 €M Free Cash Flow ( 1,549 ) 3 81 148 ( 10 ) 43 233 88 473 2,380 184 2,074 31-Mar-22 Cash flow WC Net Operative Financial Paid income Dividend Antitrust Dividend Acquisitions & Other 31-Mar-23 net debt operations changes Capex Charges taxes received paid Disposals net debt (before WC c
Slide 12: Strategic Value of Broad Business Portfolio
STRATEGIC VALUE OF BROAD BUSINESS PORTFOLIO Unique business portfolio: high cash conversion businesses enabling Projects strong growth with high ROCE PROJECTS ENERGY TELECOM PRYSMIAN GROUP ~20% ~20% ~ 17% ~85% ~ 13% ~80% ~ 17% ~70% ROCE Cash Conversion ROCE Cash Conversion ROCE Cash Conversion ROCE
Slide 13: Closing Remarks
CLOSING REMARKS Consistent growth driven by solid Grid hardening driving power market trends and unique company distribution and overhead lines growth positioning Solid cash generation and financial Flawless execution, selective approach deleverage supported by a wide and disciplined capex driving P
Slide 14: ESG
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Slide 15: Group's Priorities
GROUP’S PRIORITIES Solid Governance Environment Social Innovation SCOPE 1 & 2 NET ZERO BY 2035 Allow customers to -21% SCOPE 3 NET-ZERO BY 2050 choose the greener option -46% 2030 SOCIAL AMBITION -24% Design solutions fit for sustainability 2022 2030 2035 2050 Upstream Value Chain THE SUSTAINABILITY
Slide 16: Climate Change Ambition - Upgrade of our Targets
CLIMATE CHANGE AMBITION - Upgrade of our Targets Prysmian has Near-Term-Targets approved by SBTi & awaiting approval for Net Zero ones Our Targets Our Commitment -7.5% Updated from -21% 1 Decarbonize 90% of our Scope 1&2 carbon footprint by 2035 ▪ phasing out SF6 emissions -28% ▪ 100% renewable ener
Slide 17: Reducing Our Customer's CO2
REDUCING OUR CUSTOMER’S CO2 Digitalizing the Supply First Eco Label in the Recyclability of materials PryID Chain Industry Visibility over cable-related 6 measurable and recognized Offering full recyclability and superior RFID technology to the full suite of emissions & Optimization in the sustainab
Slide 18: Appendix
AGENDA Appendix
Slide 19: Grid Hardening Drivers
GRID HARDENING DRIVERS GRID HVAC & PD & Overhead Lines GENERATION Distribution offshore & onshore Substation CONSUMPTION Transformer Wind Turbine Transmission Electric Solar Substation Vehicle Commercial & Industrial Business Center THREE TRENDS DRIVE GRID HARDENING Generation Grid Status Grid Statu
Slide 20: A Solid and Sustainable Financial Structure
A SOLID AND SUSTAINABLE FINANCIAL STRUCTURE ▪ Average debt maturity of 3.6 years Fixed/Variable rate composition ▪ 1.0 €Bn of committed Revolving Credit Facility fully unutilized as of 31 st Variable March 2023 ~24% ▪ Approx. 1.0 €Bn cash on balance as of 31st March 2023 Fixed CURRENT FINANCIAL DEBT
Slide 21: 1Q 2023 Financial Highlights
1Q 2023 FINANCIAL HIGHLIGHTS Euro Millions, % on Sales SALES ADJUSTED EBITDA (1) +9.0%* 3,992 427 3,677 288 7.8% 10.7% 1Q 2022 1Q 2023 1Q 2022 1Q 2023 OPERATIVE NET WORKING CAPITAL (2) NET FINANCIAL DEBT 1,425 2,380 1,287 2,074 609 1,417 3.8% 8.8% 8.9% DEC-22 MAR-22 MAR-23 DEC-22 MAR-22 MAR-23 © Pry
Slide 22: Projects
PROJECTS Euro Millions, % on Sales SALES HIGHLIGHTS +29.5%* SUBMARINE / Fully saturated assets (also new planned) with the current backlog / Strong market growth, with a solid pipeline of projects (interconnections and off-shore wind farms) 563 / €1.8 Bn Ijmuiden offshore wind and 800 €M Biscay Gulf
Slide 23: Energy & Infrastructure
ENERGY & INFRASTRUCTURE Euro Millions, % on Sales SALES HIGHLIGHTS +7.5%* TRADE & INSTALLERS / Excellent performance driven by secular trends and non-residential construction market / Solid demand and price management drives margins improvement 1,941 2,031 POWER DISTRIBUTION / Grid hardening driving
Slide 24: Industrial & Network Components
INDUSTRIAL & NETWORK COMPONENTS Euro Millions, % on Sales SALES HIGHLIGHTS +5.2%* SPECIALTIES, OEM & RENEWABLES / Positive performances across all applications, in particular in Mining and Railway / Solid trend confirmed in Renewables with a double-digit organic growth. 802 835 ELEVATOR / Positive r
Slide 25: Telecom
TELECOM Euro Millions, % on Sales SALES HIGHLIGHTS +5.7%* OPTICAL CABLE & FIBRE / Secular growth trend confirmed in Optical cable / Temporary destocking affecting US market 432 460 MMS / Overall stable performance across regions in MMS 1Q 2022 1Q 2023 * Org. Growth. Adj. EBITDA / % of Sales(1) ADJ.E
Slide 26: Financial Highlights
FINANCIAL HIGHLIGHTS Euro Millions Sales Adj.EBITDA 1Q 2023 1Q 2022 1Q 2023 1Q 2022 organic Adj.EBITDA Adj.EBITDA €M €M €M €M growth Margin Margin PROJECTS 563 29.5% 406 56 10.0% 32 7.8% Energy & Infrastructure 2,031 7.5% 1,941 221 10.9% 132 6.8% Industrial & Network Components 835 5.2% 802 82 9.8%
Slide 27: Profit and Loss Statement
PROFIT AND LOSS STATEMENT Euro Millions 1Q 2023 1Q 2022 SALES 3,992 3,677 YoY total growth 8.6% YoY organic growth 9.0% Adj.EBITDA 427 288 % on sales 10.7% 7.8% of which share of net income 8 11 Adjustments (29) (3) Adjustments and non monetary items on EBIT EBITDA 398 285 % on sales 10.0% 7.8% 1Q 2
Slide 28: Cash Flow Statement
CASH FLOW STATEMENT Euro Millions 12 Months 31 Mar 2023 31 Mar 2022 (from 1/4/2022 to 31/3/2023) Adj.EBITDA 427 288 1,627 Adjustments (29) (3) (127) EBITDA 398 285 1,500 Net Change in provisions & others 11 (25) 51 Share of income from investments in op.activities (8) (11) (45) Cash flow from operat
Slide 29: 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 PROJECTS 563 56 10.0% 536 56 10.5% 1Q ENERGY 2,969 304 10.2% 2,535 304 12.0% 2023 TELECOM 460 67 14.6% 442 67 15.2% Total Group 3,992 427 10.7% 3,513 427
Slide 30: Bridge Consolidation Sales
BRIDGE CONSOLIDATION SALES Euro Millions PROJECTS ENERGY & INFRASTRUCTURE 28 9 120 145 ( 76 ) 21 Org.growth 563 7.5% TOTAL CONSOLIDATED Org.growth 1,941 2,031 406 29.5% 332 ( 69 ) 52 1Q 2022 Organic Metal Exchange 1Q 2023 1Q 2022 Organic Metal Exchange 1Q 2023 Growth Effect Rate & Growth Effect Rate
Slide 31: 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 3) Current financial debt maturity profile (Excluding debt held by local affiliates and debt coming from IFRS 16 (9
Slide 32: 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 33: Thank you
Thank you prysmiangroup.com 33