Prysmian S.p.a. · MIL:PRY
Prysmian — BoA Merrill Lynch Pan European Capital Goods Conference 2012
92 slides from Prysmian's conference presentation, Mar 21, 2012
Slide 1: Company Presentation
Company Presentation BoA Merrill Lynch Pan European Capital Goods Conference London - March 21st, 2012 Presentation title | Prysmian Group | Date 1
Slide 2: Agenda
AGENDA Group Overview Financial Results Appendix Company Presentation – March 2012 2
Slide 3: FY 2011 Key Financials
FY 2011 Key Financials Draka Prysmian Euro Millions, % on Sales Sales Adjusted EBITDA (4) Adjusted EBIT (5) Reported(1) Full combined(2) Reported(1) Full combined(2) Reported(1) Full combined(2) 435 3 3 7,973 3 568 586 426 3 7,583 535 394 6,990 98 107 167 334 2,279 2,669 403 149 148 309 85 2,419 387
Slide 4: Profitability recovery across all segments
Profitability recovery across all segments Euro Millions, % on Sales Sales breakdown by business Organic Growth FY 2011 combined FY 2011 combined 17.8% Telecom Utilities 18% 28% 11.7% Other 8.5% 8.8% 2% € 8.0 bn T&I Industrial 0.1% 30% 22% Utilities T&I Industrial Telecom Total Adj.EBITDA breakdown
Slide 5: Increasing exposure to Emerging markets (30% of 2011 sales)
Increasing exposure to Emerging markets (30% of 2011 sales) Selective growth in High value added businesses to protect ROCE 2011 Combined Sales breakdown by geographical area % on tot € bn Growth drivers: EMEA 64% 5.1 • Telecom (Optical, MMS) Of which Eastern Europe 10% 0.8 • Utilities HV Eastern Eu
Slide 6: First year of integration increasing confidence on Synergies Targets
First year of integration increasing confidence on Synergies Targets Euro Millions Synergies Plan 2011-15 Approx. 150 Overheads (Fixed costs) Procurement Operations 100 60-70 Restructuring costs 45 30-40 13 * 10 40-60 6 7 FY11 Target FY11 FY12 Target FY13 Target 2014-15 Target Achieved Restructuring
Slide 7: Utilities
Utilities Euro Millions, % of Sales – Full Combined Results Sales to Third Parties Highlights DISTRIBUTION 2,267 1,873 • Double digit volume growth in FY’11 (vs FY’10) with no signs of downturn in H2’11 • Stable demand in Central/South Europe; positive trend in Northern countries • First signs of pr
Slide 8: Utilities – Record visibility on current Order-book
Utilities – Record visibility on current Order-book Capacity increase in submarine to support sales growth next years Strong increase in transmission Orders Backlog to support margins recovery in Utilities Adj. EBITDA 2011 Combined ~ 2,300 ~ 1,700 ~ 600 Transmission ~ 650 ~ 1,050 Network (% Adj.EBIT
Slide 9: Trade & Installers
Trade & Installers Euro Millions, % of Sales – Full Combined Results Sales to Third Parties Highlights 2,412 • Stable organic growth as result of still weak demand in major European 2,236 countries and strategic focus on cash/ROCE • Volume and price recovering in North America • Leverage on strong m
Slide 10: Industrial
Industrial Euro Millions, % of Sales – Full Combined Results Sales to Third Parties Highlights OGP 1,736 • Double digit increase mainly driven by Offshore with strong order-book in 1,481 all geographical areas (e.g. Asia, North Sea, South America and US) SURF • Positive demand confirmed in South Ame
Slide 11: Telecom
Telecom Euro Millions, % of Sales – Full Combined Results Sales to Third Parties Highlights Optical / Fiber 1,431 • Q4 confirming high speed of growth driven by all geographical areas and 1,276 gradual improvement in margins thanks to operating leverage/costs reduction • Strong demand in US driven b
Slide 12: Agenda
AGENDA Group Overview Financial Results Appendix Company Presentation – March 2012 12
Slide 13: Profit and Loss Statement
Profit and Loss Statement Euro Millions FY 2011 Reported a) FY 2010 Combined b) FY 2011 Combined b) Cons. Cons. PRY DRAK Total PRY DRAK Total PRY DRAK Total adj. adj. Sales 5,363 2,279 (59) 7,583 4,571 2,419 6,990 5,363 2,669 (59) 7,973 YoY total growth 17.3% 8.5% 65.9% 22.5% 18.7% 17.3% 10.4% 14.1%
Slide 14: Statement of financial position (Balance Sheet)
Statement of financial position (Balance Sheet) Euro Millions 31 Dec 2011 31 Dec 2010 Total PRY Net fixed assets 2,255 1,029 of which: intangible assets 618 59 of which: property, plants & equipment 1,544 958 Net working capital 552 494 of which: derivatives assets/(liabilities) (27) 37 31 Dec 2010
Slide 15: Cash Flow
Cash Flow Euro Millions FY 2011 Comb. a) FY 2011 Rep. b) FY 2010 Rep. c) Total Total PRY Adj.EBITDA 586 568 387 Non recurring items (303) (299) (22) EBITDA 283 269 365 Net Change in provisions & others 197 198 (17) Release of inventory step-up 14 14 - Cash flow from operations 494 481 348 (before WC
Slide 16: Appendix – Draka Acquisition
AGENDA Group Overview Financial Results Appendix – Draka Acquisition Company Presentation – March 2012 16
Slide 17: Full support from Draka shareholders to the new Prysmian industrial project
Full support from Draka shareholders to the new Prysmian industrial project Business shares • 99.0% of Draka ordinary Line tendered (48,257,719 shares) • 90.4% tendered during the Offer Period (06 Jan ‘11 – 03 Feb ‘11). Settlement on the 22nd of February • 8.6% tendered during the Post Closing Accep
Slide 18: The new global market leader
The new global market leader Combined Financials Leader in the cable industry Sales 2011: €8.0 bn SALES Adj.EBITDA € 8.0 bn a) € 586 mln 33% Utilities T&I Industrial (1) Telecom Draka 2.7 167 € 2.3 bn € 2.4 bn € 1.9 bn € 1.4 bn 67% Prysmian 5.4 419 FY’11 FY’11 (1) Includes consolidation adjustments
Slide 19: Transaction Rationale
Transaction Rationale Creation of a World’s Leading Cables & Systems Company Unique and Highly Complementary Combination, with Increased Coverage of Emerging Markets Strengthened Leadership in All Value Added Market Segments Significant Synergy Potential Strong Platform for Future Organic Growth and
Slide 20: Creation of a World's Leading Cables & Systems Company
Creation of a World’s Leading Cables & Systems Company N°1 in cable solutions for the energy and telecommunication business 8.0 6.1 €bn, 2011 Sales 5.1 4.0 3.8 3.7 3.2 2.8 2.5 1.2 Prysmian Nexans LS Cable & General Cable Furukawa Leoni Southwire Fujikura Hitachi Cable NKT Cables Group System Source:
Slide 21: Unique and Highly Complementary Combination 1/2
Unique and Highly Complementary Combination 1/2 Strengthening Geographical Presence • Enlarged presence in Industrial cables in key markets • Increased presence in attractive emerging markets of North America, Germany and China (e.g. China, Middle East, Brazil, ASEAN, India and Russia) • Improved co
Slide 22: Unique and Highly Complementary Combination 2/2
Unique and Highly Complementary Combination 2/2 Excellent Business Fit • The combination will leverage on leading technology in all key cable segments • Excellent business fit in Energy and Telecom businesses creating leadership positions in high- technology sub-segments • Leader in Optical Cables w
Slide 23: R&D drives our business
R&D drives our business R&D Centres Milan R&D Headquarters • Research & Development Capabilities - Innovation, basic research - Concepts identification (process, materials, products, compounds, IT systems) - Product feasibility • Total of 20 R&D excellence centres, - Prototype realization in 10 coun
Slide 24: Prysmian's Offer Creates Value for all Draka's Stakeholders
Prysmian’s Offer Creates Value for all Draka’s Stakeholders While Preserving the Interests of its Own Shareholders ● Value enhancement for Draka ● Creation of a leader in the cable products through the creation of a industry with global presence and larger platform with global reach strong, sustaina
Slide 25: Draka – Company Overview
Draka – Company Overview Historical Net Sales and EBITDA¹,² (€m) 2010A Net Sales Breakdown Net Sales EBITDA EBITDA Margin By Business By Geography 2,816 2,829 RoW 2,428 Communications Energy & 9% 34% Infrastructure 2,048 35% Europe 7.0% 7.2% Asia 6.7% 55% 6.1% 21% 198 203 138 148 Industry & N. Ameri
Slide 26: Appendix – Draka Integration
AGENDA Group Overview Financial Results Appendix – Draka Integration Company Presentation – March 2012 26
Slide 27: The new organization model
The new organization model To strengthen leadership in all business segments leveraging on a global platform New organization: a matrix linking country and group functions Utilities T&I Industrial Telecom Group Functions Local Intermediate Global (Optical+Copper) Business Multimedia & Optical Fiber
Slide 28: Integration process update
Integration process update Successful deployment of new organization and common processes Q2 2011 H2 2011 FY 2012 Design Execution • New Group Organization and done • Start deployment of new organization done • Consolidate “One-company” identity with common targets: Key People and processes o Ke
Slide 29: Appendix – Prysmian at a Glance
AGENDA Group Overview Financial Results Appendix – Prysmian at a Glance Company Presentation – March 2012 29
Slide 30: Key Milestones
Key Milestones 1998 2001 2005 2008 2011 Growth by Restructuring Growth by Profitable growth Managing the downturn acquisition process acquisition Public Largest Cable Closure of 11 July 28th 2005: Listing Strategic Company Maker plants Goldman Sachs Acquisitions May 3rd 2007: investments March 2010:
Slide 31: Leading player in all market segments
Leading player in all market segments Sales breakdown Sales breakdown by geographical area Sales breakdown by business area FY 2011 combined FY 2011 combined (FY 2011 Prysmian excl.Draka) (FY 2011 Prysmian excl.Draka) APAC Telecom 15% 18% (12%) (10%) Utilities 28% (40%) Other Latin America 2% 9% (3%
Slide 32: A unique portfolio driving sustainable margin growth
A unique portfolio driving sustainable margin growth Euro millions and % on Sales Adj.EBITDA breakdown by business Adj.EBITDA margin 586 Tot.Adj. 542 EBITDA 529 7.3% 10.5% % on 10.3% sales 403 10.8% 387 8.5% 287 266 268 250 237 155 128 113 110 93 84 76 62 61 48 49 41 36 36 31 12.5% 8.6% 10.6% 8.6% 1
Slide 33: Prysmian Group business portfolio
Prysmian Group business portfolio Focus on high value added segments PROFITABILITY Extended SURF business (Flexible Pipes + perimeter Umbilicals) Network Components Submarine Look for High Extra HV Profitable Optical Cables & Fibre Growth High Voltage • Focus on products and service Industrial Mediu
Slide 34: Targeting High-tech segments and profitable extra-EU markets
Targeting High-tech segments and profitable extra-EU markets CAPEX evolution in the last 5 years Capacity Increase & Product mix (1) (€m) Capex by Geographical area (€m) Maintenance, Efficiency, IT and R&D Capex Submarine Capacity Increase & Product mix Capex (excl. Submarine) 163 163 116 116 107 10
Slide 35: Metal Price Impact on Profitability
Metal Price Impact on Profitability Supply Main Metal Influence on Cable Price Metal Fluctuation Management Contract Application Impact Impact • Projects (Energy • Technology and design • Pricing locked-in at order intake transmission) content are the main • Profitability protection through Predeter
Slide 36: Appendix – Energy
AGENDA Group Overview Financial Results Appendix – Energy Company Presentation – March 2012 36
Slide 37: Clusters of Cable Manufacturers in the Industry
Clusters of Cable Manufacturers in the Industry Competitive scenario – Energy Cables Company Presentation – March 2012 37
Slide 38: Full package of solutions for Energy Business
Full package of solutions for Energy Business Utilities Trade & Installers Industrial • Power Transmission • LV cables for construction • Specialties & OEM (rolling stock, nuclear, defence, crane, – Underground EHV, HV-DC/AC – Fire performing mining, marine, electro medical, – Submarine (turn-key) E
Slide 39: Utilities – Power Transmission
Utilities – Power Transmission Business description Key customers High/extra high voltage power transmission Customer base drawn from all major national solutions for the utilities sector distribution networks • Underground High Voltage Cabling solutions for power plant sites and primary distributio
Slide 40: Utilities – Power Transmission
Utilities – Power Transmission Long term drivers supporting orders backlog at peak level Utilities – Sales breakdown Submarine (€ million) FY 2011 combined Orders Backlog evolution Network ~1,700 component 7% Transmission - Submarine 22% ~1,000 ~1,050 ~900 ~800 ~650 ~650 ~550 € 2.3 bn Dec'08 Jun'09
Slide 41: Utilities – Submarine Transmission Systems
Utilities – Submarine Transmission Systems Excellent track record and reliability make Prysmian Group undisputed worldwide leader Key success factors Key Projects Customer Period €m(1) • Track record and reliability Western Link NGET/SPT Upgrades Ltd 2012-15 800 • Ability to design/execute turnkey H
Slide 42: Utilities – Western Link a milestone in the submarine sector
Utilities – Western Link a milestone in the submarine sector Confirmed leadership in terms of know-how and innovation capabilities Western Link route Large Off-shore Wind investments planned in Scotland Western Link milestones • The highest value cable project ever awarded, worth €800 mln • The high
Slide 43: Utilities – 37GW of new Wind Offshore capacity by 2020
Utilities – 37GW of new Wind Offshore capacity by 2020 to achieve EU Target Four major countries accounting for about 85% of total new capacity Wind Offshore capacity to be installed (GW) Largest project awarded in Europe: SylWin1 (North Sea to mainland Germany): 2011 3.8 • € 280m (cable portion) •
Slide 44: Utilities – Nuclear decrease as new driver for Renewables
Utilities – Nuclear decrease as new driver for Renewables Germany exit from nuclear to potentially lower nuclear investments in other countries German electricity system highly Renewables load factor at run rate dependent on nuclear capacity utilization (2020) Installed capacity 2010 Net production
Slide 45: Utilities – Power Distribution
Utilities – Power Distribution Market drivers Key customers Key customers are all major national distribution network operators • Long term growth in electricity consumption • Mandated improvements in service quality • Investment incentives to utilities • Urbanization Key success factors Action plan
Slide 46: Limited downside for cyclical businesses on current profitability
Limited downside for cyclical businesses on current profitability The Power Distribution case • Minor profitability improvement in 2011 despite volume recovery • Low downside risk on current ebitda margin level (5-6%) PD – Volumes and Contribution Margin evolution a) (2007=100) Adj.EBITDA Adj.EBITDA
Slide 47: Trade & Installers
Trade & Installers Business description Key customers • Low voltage cables for residential and non • Key customers include major: residential construction • Specialized distributors • Channel differentiation with both: • Direct sales to end customers (Installers) • General distributors • Indirect sa
Slide 48: Trade & Installers – Key success factors
Trade & Installers Key success factors Product overview • Product range • On-time delivery / Product availability • Inventory/WC management • Cost leadership + • Channel management Fire Performance/ • Customers’ relationship Accessories Technology content Specials High-End Low Smoke Action plan Zero
Slide 49: Trade & Installers
Trade & Installers Improving geographical mix with higher exposure to Nordics and APAC (excl.China) Sales breakdown by geographical area FY 2011 combined (FY 2011 Prysmian excl.Draka) Eastern Europe 21% (28%) Nordics 11% € 2.4 bn (2%) (€ 1.6 bn) Central & Southern Europe North America 47% 5% (48%) (
Slide 50: Industrial
Industrial Business description Key customers Integrated cable solutions highly customized to our Large and differentiated customer base industrial customers worldwide generally served through direct sales Oil & Gas Addressing the cable needs of research and refining, exploration and production. Pro
Slide 51: Industrial
Industrial A leading presence worldwide Sales breakdown by geographical area Sales breakdown by business segment FY 2011 combined FY2011 combined (FY 2011 Prysmian excl.Draka) Other Asia Pacific Elevator 2% 15% 6% (19%) Renewables Specialties & 14% OEM Latin America 11% 35% (19%) € 1.7 bn € 1.7 bn (
Slide 52: Industrial – Investing in the high value added off-shore oil business
Industrial – Investing in the high value added off-shore oil business New flexible pipes plant in Brazil and acquired downhole technology from Draka Vila Velha (BRA): new flexible pipes plant built Over US$ 100m sales in FY2011 next to the pre-existing umbilical plant Umbilical Umbilical for Power F
Slide 53: Industrial – Strengthening presence in the key Brazilian market
Industrial – Strengthening presence in the key Brazilian market First flexible Pipes delivered (Namorado field) and new orders for both Flexible Pipes and DHT New orders for Flexible Pipes (Sidon oil field) and DHT (several oilfields in Campos Basin) Petrobras oil production in Brazil 3.1 3 2.0 Deep
Slide 54: Industrial – Off-shore oil exploration
Industrial – Off-shore oil exploration Oilfield structure Flexible Pipes Fixed Floating Platform Floating Platform (SEMI-SUBMERSIBLE) Platform (FPSO) Umbilical Injection control Umbilical (Power) Flexible Pipes Umbilical For control Christmas Manifold Tree Petrol Well Company Presentation – March 20
Slide 55: Industrial – Off-shore oil exploration
Industrial – Off-shore oil exploration Cross selling opportunities driven by the new Downhole technology business contributed by Draka Downhole Technology (DHT) HYBRID ELECTRO-OPTIC FIBER OPTIC ELECTRICAL GAS & FLUID TUBING PACKAGED GAS & FLUID TUBING Company Presentation – March 2012 55
Slide 56: Industrial – 120GW of new Solar and Wind Onshore capacity by 2020
Industrial – 120GW of new Solar and Wind Onshore capacity by 2020 Four major countries accounting for about 70% of total new capacity Wind Onshore and Solar - capacity to be installed (GW) Wind Onshore 2011 90 48 138 Solar 2020E 170 90 260 France (GW) UK (GW) 18 24 9 5 2011 2020E 2011 2020E Spain (G
Slide 57: Macro-structure of Energy Cables
Macro-structure of Energy Cables Product macro structure Production process Conductor Final production Outer jacket (drawing, Insulation Screening Lay up Armouring Sheathing quality (Polyolefine, PVC, inspection Insulation (XLPE, EPDM) stranding) …) WB yarns Conductor (Cu, Al) Building Wire (T&I) Lo
Slide 58: Appendix – Telecom
AGENDA Group Overview Financial Results Appendix – Telecom Company Presentation – March 2012 58
Slide 59: Major Players within the Telecom Industry
Major Players within the Telecom Industry Competitive scenario Global Market Presence Continental YOFC Local Niche Focused Wide Product Portfolio Range Company Presentation – March 2012 59
Slide 60: All cable solutions for Telecom Business
All cable solutions for Telecom Business Telecom • Optical Cables • Connectivity/FTTx passive systems • Optical Fiber • Copper Cables • Multimedia Solutions • Telecom Solutions Company Presentation – March 2012 60
Slide 61: Our Telecom Business
Our Telecom Business Business description Key customers Integrated cable solutions focused on high -end Telecom Key customers include key operators in the telecom sector Telecom solutions Optical cables: tailored for all today’s challenging environments from underground ducts to overhead lines, rail
Slide 62: Telecom
Telecom A more diversified portfolio to strengthen market presence worldwide Sales breakdown by geographical area Sales breakdown by business segment FY 2011 combined FY2011 combined (FY 2011 Prysmian excl.Draka) Asia Pacific JVs and other 25% 23% Optical, (16%) Connectivity and Fiber EMEA 44% € 1.4
Slide 63: Optical cables
Optical cables Global overview Market trends Key success factors • Demand function of level of capital expenditures • Continuous innovation and development of new budgeted by large telecom companies cable & fibre products (PTT/incumbents as well as alternative • Cable design innovation with special
Slide 64: Telecom Cables Main Applications
Telecom Cables Main Applications BACKBONE METROPOLITAN RING ACCESS NETWORK Company Presentation – March 2012 64
Slide 65: Telecom - Europe as major opportunity in optical cables development
Telecom - Europe as major opportunity in optical cables development FTTH investments continue to grow but still at 3% of total subscribers in Europe OECD fixed (wired) broadband subscribers by country OECD Total subscribers (309mln) by technology Prysmian Group Leader in most of the Europe: 140 mln
Slide 66: Consolidated leadership in Australia to benefit from new NBN project
Consolidated leadership in Australia to benefit from new NBN project Start-up of National broadband network in 2011 Rollout plan for National Broadband Network • Government initiative to provide direct fibre connection to 93% of Australian subscribers (residential and business) • AUD 43 bn capex pla
Slide 67: Macro-structure of Telecom Cables
Macro-structure of Telecom Cables Product macro structure Production process Primary Coating (250 Micron) Fibre Cladding (125 Micron) optic Core (10 Micron) Final quality Pre form deposition Consolidation Drawing inspection Main Technologies: OVD - VAD - MCVD Aramid Yarns Loose tubes Optical fibres
Slide 68: Appendix – Financials
AGENDA Group Overview Financial Results Appendix – Financials Company Presentation – March 2012 68
Slide 69: Organic Growth in 2011
Organic Growth(1) in 2011 % Variation on the same quarter of the previous year Q1’11 Q2’11 Q3’11 Q4’11 21.6% 19.0% 17.0% 16.0% 16.2% 15.7% 11.2% 11.3% 10.4% 10.7% 8.6% 7.2% 6.3% 6.0% 5.9%5.9% 5.0% T&I T&I T&I Total Total Total Telecom Telecom Telecom T&I Total Telecom Industrial Industrial Industria
Slide 70: Combined Adj.EBITDA margin 2011 Vs 2010
Combined Adj.EBITDA margin 2011 Vs 2010 Draka Prysmian Euro million - % on Sales FY 2011 Combined Sales FY 2010 Combined Sales FY 2011 Combined Adjusted EBIT excluding 1 metal effect Sales Adj. Sales Adj. Sales Adj. EBITDA EBITDA EBITDA 7,973 * 7,476 * 6,990 2,669 586 2,509 586 2,419 535 167 167 148
Slide 71: Bridge Reported Consolidated Sales
Bridge Reported Consolidated Sales Euro Millions Total Consolidated 2,279 ( 59 ) +11.2% 337 ( 56) 511 7,583 4,571 5,363 FY 2010 Org.Growth Metal Effect Exchange Rate FY 2011 L-for-L Draka Cons.Adj. FY 2011 Energy Cables & Systems Division +10.5% 1,484 ( 45 ) 327 ( 52 ) 433 6,268 4,829 4,121 FY 2010
Slide 72: Draka - Bridge Full FY Sales
Draka - Bridge Full FY Sales Euro Millions Total Consolidated +4.2% 160 ( 17) 6 101 2,663 2,669 2,419 FY 2010 Org.Growth Metal Effect Exchange Rate FY 2011 L-for-L Acquisitions FY 2011 Energy Cables & Systems Division +1.9% ( 11 ) 140 6 30 1,752 1,758 1,593 FY 2010 Org.Growth Metal Effect Exchange R
Slide 73: Adj.EBITDA evolution
Adj.EBITDA evolution Utilities driving Group margins recovery Adj.EBITDA (€m) 299 287 160 139 H1’11 H2’11 Q3’11 Q4’11 % Adj. EBITDA 7.2% 7.5% 6.9% 8.1% Q3’11 - € 139m Adj.EBITDA (1) Q4’11 - € 160m Adj.EBITDA (2) 73 55 34 34 32 30 19 18 Utilities T&I Industrial Telecom Utilities T&I Industrial Teleco
Slide 74: Extraordinary Effects
Extraordinary Effects Euro Millions FY 2011 Reported a) FY 2010 Combined b) Cons. PRY DRAK Total PRY DRAK Total adj. Antitrust investigation (205) - - (205) - - - Restructuring (22) (34) - (56) (11) (48) (59) Legal costs - - - - (5) - (5) Draka transaction costs (6) - - (6) (6) (8) (14) Draka integr
Slide 75: Financial Charges
Financial Charges Euro Millions FY 2011 Reported a) FY 2010 Combined b) Cons. PRY DRAK Total PRY DRAK Total adj. Net interest expenses (84) (20) - (104) (61) (23) (84) Bank fees Amortization (11) - - (11) (6) (4) (10) Gain/(loss) on exchange rates (19) (2) - (21) 7 (3) 4 (1) Gain/(loss) on derivativ
Slide 76: Energy Segment – Profit and Loss Statement
Energy Segment – Profit and Loss Statement Euro Millions FY 2011 Reported a) FY 2010 Combined b) FY 2011 Combined b) Cons. Cons. PRY DRAK Total PRY DRAK Total PRY DRAK Total adj. adj. Sales 4,860 1,517 (45) 6,332 4,145 1,630 5,775 4,860 1,802 (45) 6,617 Sales vs. Third Parties 4,829 1,484 (45) 6,268
Slide 77: Energy Segment – Sales and Profitability by business area
Energy Segment – Sales and Profitability by business area Euro Millions, % of Sales Growth – FY combined FY 2011 FY 2010 Total Organic Comb. Comb. growth growth Total Total Total Total Utilities 2,269 1,873 of which to third parties 2,267 1,873 25.8% 17.8% Trade & Installers 2,500 2,300 of which to
Slide 78: Telecom Segment – Profit and Loss Statement
Telecom Segment – Profit and Loss Statement Euro Millions FY 2011 Reported a) FY 2010 Combined b) FY 2011 Combined b) Cons. Cons. PRY DRAK Total PRY DRAK Total PRY DRAK Total adj. adj. Sales 537 813 (14) 1,336 454 865 1,319 537 935 (14) 1,458 Sales vs. Third Parties 534 795 (14) 1,315 450 826 1,276
Slide 79: PPA allocation
PPA allocation Euro Millions Opening balance Of which 1 March 2011 Adj.PPA DRAK DRAK Net fixed assets 903 203 of which: intangible assets 214 104 a) of which: property, plants & equipment 614 89 of which: equity investments 69 10 Net working capital 286 7 Provisions & deferred taxes (85) (74) Net Ca
Slide 80: Net Working Capital
Net Working Capital Euro Millions 31 Dec 2010 31 Dec 2011 combined Total Total Inventories 929 1,000 Trade accounts receivables 1,197 1,179 Trade accounts payables (1,421) (1,363) Other receivables/(payables) (126) (132) Operative Net working capital 579 684 Derivatives assets/(liabilities) (27) 48
Slide 81: Sound Financial Structure
Sound Financial Structure Euro Millions Debt structure (€m) 31.12.2011 (€m) Available 31.12.11 31.12.10 Used Maturity Funds (2) Term Loan 674 773 674 - 12/2014 Eurobond 412 411 412 - 04/2015 Revolving Credit Facility - - - 394 12/2014 Securitization 111 - 111 239 07/2012 Term Loan 2011 400 - 400 - 0
Slide 82: Evolution of Net Financial Position
Evolution of Net Financial Position Euro Millions Net Financial Position bridge 501 ( 481 ) 229 1,064 ( 183 ) 37 357 145 459 NFP NFP Draka Draka Cash Flow NWC Net Dividends Other a) NFP Prysmian 01 Mar 2011 acquisition from Variations Operative Prysmian 31 Dec 2010 Operations CAPEX Group (before WC
Slide 83: Dividends
Dividends Dividend increase driven by sound cash generation Proposed DPS +27% vs 2010 Total Shares (3) • Dividend x share € 0.210 214,393,481 • Total payout: € 44 millions (1) • Ex-dividend date: 23 April 2012 • Payment date: 26 April 2012 • Dividend Yield: 1.7% (2) Shares with dividend right (1) 21
Slide 84: Prysmian Historical Key Financials
Prysmian Historical Key Financials Euro Millions, % of Sales – Pre Draka acquisition Sales Sales Adjusted EBITDA (1) Adjusted Adjusted EBITEBIT 1 (2) 5,007 5,118 5,144 529 542 477 4,571 464 +4.2%* 3,731 407 -17.4%* +3.2%* 403 330 +8.2%* 387 334 4,686** 309 2006 2007 2008 2009 2010 2006 2007 2008 200
Slide 85: Historical Key Financials by Business Area – Utilities and T&I
Historical Key Financials by Business Area – Utilities and T&I Euro Millions, % of Sales – Pre Draka acquisition Sales Vs Third Parties Adjusted EBITDA (1) Adjusted EBIT (2) 2,028 287 1,853 1,894 1,790 266 237 +12.1%* 250 256 1,598 237 -13.9%* 197 208 215 Utilities +3.3%* +1.5%* 157 2006 2007 2008 2
Slide 86: Historical Key Financials by Business Area – Industrial and Telecom
Historical Key Financials by Business Area – Industrial and Telecom Euro Millions, % of Sales – Pre Draka acquisition Sales Vs Third Parties Adjusted EBITDA (1) Adjusted EBIT (2) 850 795 742 93 84 80 629 628 +5.0%* 71 -16.1%* Industrial +21.1%* 62 61 -1.1%* 46 46 42 34 2006 2007 2008 2009 2010 2006
Slide 87: Appendix – Cable Industry Reference Scenario
AGENDA Group Overview Financial Results Appendix – Cable Industry Reference Scenario Company Presentation – March 2012 87
Slide 88: Telecom – Demand evolution by geographical area
Telecom – Demand evolution by geographical area Optical fibre cable (Million km) CAGR (11-15) +3.5% 203 231 221 214 201 46 43 44 +4.9% 184 41 173 38 32 -3.7% 36 35 34 142 30 36 37 8 +5.0% 8 8 27 29 8 116 32 7 3 4 Total 92 26 30 18 26 4 +5.0% EMEA 140 145 25 129 136 3 119 113 115 N. America 2 76 S.Am
Slide 89: The Global Cables Reference Market
The Global Cables Reference Market World-Wide Cable Reference Market Size, 2011 Global Cables Reference Market Energy Cables Reference Market (~€89bn) Latin North € 99 bn Latin America America America 4% 13% 4% North America 13% EMEA APAC 30% 53% EMEA APAC 30% 53% Telecom Cables Reference Market (~€
Slide 90: Market Volumes Trend
Market Volumes Trend Energy Cables Reference Market Million Tons • Long term growth driven by: Conductor 13.9 • Energy consumption 13.1 11.2 11.7 12.4 10.3 10.6 10 10.8 • Investments in power grid 9 9.5 7.4 7.800 8.5 interconnections 6.5 6.7 6.9 7.1 CAGR: 5.5% • Investments in power transmission and
Slide 91: Reference Scenario
Reference Scenario Commodities & Forex Brent Copper Aluminium Brent $/ton Copper $/ton Aluminium $/ton Brent €/ton Copper €/ton Aluminium €/ton 150 12,000 3,500 125 3,000 10,000 2,500 100 8,000 2,000 75 6,000 1,500 50 4,000 1,000 25 2,000 500 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12 Jan-08 Jan-09 Jan-10 J
Slide 92: Disclaimer
Disclaimer • The managers responsible for preparing the company's financial reports, J.Calvo 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 t
Prysmian Group — BoA Merrill Lynch Pan European Capital Goods Conference 2012 on 6ix