Slide 1: FY 2012 Financial Results
FY 2012 Financial Results Milan, 27th February 2013 FY 2012 Financial Results 1
Slide 2: Agenda
AGENDA FY 2012 Highlights • Group Overview • Results by business Financial Results Appendix FY 2012 Financial Results 2
Slide 3: 2012 Key Achievements
2012 Key Achievements All targets fully achieved despite a worsening economic environment Adj. EBITDA at € 647 million: top of initial guidance (€ 600-650 million) 600 650 Net Financial Position at € 918 million: strong improvement vs. initial target and previous year (FY2011: € 1,064 million)
Slide 4: FY 2012 Key Financials
FY 2012 Key Financials Euro Millions, % on Sales Sales Adjusted EBITDA (3) Adjusted EBIT (4) Reported(1) Full combined(2) Reported(1) Full combined(2) Reported(1) Full combined(2) 647 7,973 7,848 586 483 7,583 568 426 435 403 387 334 309 4,571 3,731 2009 2010 2011 2011 2012 2009 2010 2011 2011 2012
Slide 5: Increasing profitability and margins across all businesses
Increasing profitability and margins across all businesses Selective growth in high value added businesses and synergies as key drivers LTM* Adj. EBITDA Evolution Adj. EBITDA breakdown € million - % on Sales € million - % on Sales € mln % on Sales 650 10% 11.4% 264 Utilities 11.8% 270 600 9% 8.2% 3.
Slide 6: On the right track towards 2015 Target
On the right track towards 2015 Target Euro Millions Synergies Plan 2011-15 Approx. 150 Overheads (Fixed costs) Procurement Operations 100 60-70 65 30-40 45 30 13 10 30 40-60 6 7 5 FY11 FY11 FY12 FY12 FY13 Target 2014-15 Target Target Achieved Target Achieved Restructuring 46 120 200 costs Note: Cum
Slide 7: First step of production footprint optimization completed
First step of production footprint optimization completed 7 plants closed and 1 plant restructured since Draka acquisition Wuppertal (GER) Industrial cables - partial closure Eschweiler (GER) T&I/Industrial cables Angel (CHI) Hickory (US) Semi-finished products/wires Derby (UK) Industrial/control ca
Slide 8: Agenda
AGENDA FY 2012 Highlights • Group Overview • Results by business Financial Results Appendix FY 2012 Financial Results 8
Slide 9: Utilities
Utilities Euro Millions, % on Sales – Full Combined Results Sales to Third Parties Highlights DISTRIBUTION 2,318 2,287 • Further volume decrease in Europe, partially offset by positive demand in extra-European countries • Europe: weak demand expected to continue next quarters in all countries except
Slide 10: Utilities – Positive transmission outlook in 2013
Utilities – Positive transmission outlook in 2013 Record Order-intake in submarine and good coverage for HV sales Utilities – FY2012 Results Transmission – Sales & Orders Backlog € million € million 2,287 270 ~ 1,900 7% 11% 22% 43% 67% ~ 600 ~ 550 ~ 550 50% Sales Adj. EBITDA Sales FY Orders Sales FY
Slide 11: Utilities – Off-shore wind development in Europe still at early stage
Utilities – Off-shore wind development in Europe still at early stage High visibility on new projects to be awarded next quarters Europe Offshore Wind capacity (GW) Europe 2012 Cumulated Capacity by Country Cumulated Offshore Wind capacity (L axis) Others 0.2 GW Annual Additional capacity (R axis) N
Slide 12: Trade & Installers
Trade & Installers Euro Millions, % on Sales – Full Combined Results Sales to Third Parties Highlights • Weak volume in Q4’12 expected to continue due to lower construction 2,233 2,159 activity in Europe • Europe: focus on profitability and cash flow in a declining demand in Central and South Europe
Slide 13: Industrial
Industrial Euro Millions, % on Sales – Full Combined Results Sales to Third Parties Highlights OGP 1,824 1,801 • Positive performance in off-shore during 2012 with growing order-book in North Europe and Asia. Increasing exposure to large Asian markets (e.g. China, Singapore) to benefit from strong d
Slide 14: Telecom
Telecom Euro Millions, % on Sales – Full Combined Results Sales to Third Parties Highlights • Weak sales performance in H2’12 mainly due to lower volumes in 1,431 1,466 North/South America for optical and overall declining trend in copper cables • Record adj.ebitda margin achieved in 2012. Profitabi
Slide 15: Telecom – FTTA as key driver of optical demand
Telecom – FTTA as key driver of optical demand 4G and Long Term Evolution (LTE) deployments require Fiber-to-the-Antenna (FTTA) Number of Global LTE Subscribers Forecast Millions of users Roof top antenna towers for urban applications Antenna towers used by 4G and LTE networks Source: IHS iSuppli Re
Slide 16: Agenda
AGENDA FY 2012 Highlights • Group Overview • Results by business Financial Results Appendix FY 2012 Financial Results 16
Slide 17: Profit and Loss Statement
Profit and Loss Statement Euro Millions FY 2011 FY 2011 FY 2012 Reported a) Combined b) Sales 7,848 7,583 7,973 YoY total growth (1.6%) c) YoY organic growth (1.8%) c) Adj.EBITDA 647 568 586 % on sales 8.2% 7.5% 7.3% Non recurring items (101) (299) EBITDA 546 269 % on sales 7.0% 3.4% Adj.EBIT 483 42
Slide 18: Extraordinary Effects
Extraordinary Effects Euro Millions FY 2011 FY 2012 Reported a) Antitrust investigation (1) (205) Restructuring (74) (56) Draka transaction costs - (6) Draka integration costs (9) (12) Draka change of control effects - (2) Inventory step-up (PPA) - (14) Other (17) (4) EBITDA adjustments (101) (299)
Slide 19: Financial Charges
Financial Charges Euro Millions FY 2011 FY 2012 Reported a) Net interest expenses (109) (104) Bank fees Amortization (10) (11) Gain/(loss) on exchange rates (29) (21) (1) Gain/(loss) on derivatives 18 7 Non recurring effects (5) - Net financial charges (135) (129) Share in net income of associates 1
Slide 20: Statement of financial position (Balance Sheet)
Statement of financial position (Balance Sheet) Euro Millions 31 December 31 December 2012 2011 Net fixed assets 2,311 2,255 of which: intangible assets 655 618 of which: property, plants & equipment 1,543 1,544 Net working capital 479 552 of which: derivatives assets/(liabilities) (7) (27) of which
Slide 21: Cash Flow
Cash Flow Euro Millions FY 2011 FY 2012 Combined a) Adj.EBITDA 647 586 Non rec urring items (101) (303) EBITDA 546 283 Net Change in provisions & others (1) 197 Release of inventory step-up - 14 Cash flow from operations (before WC changes) 545 494 Working Capital c hanges 75 91 Paid Inc ome Taxes (
Slide 22: Dividends
Dividends Strong dividend increase supported by high cash generation Proposed DPS doubled vs. 2011 • Dividend Per Share € 0.420 Total Shares (1) • Total payout: € 89 millions 214,508,781 • Ex-dividend date: 22 April 2013 • Payment date: 25 April 2013 • Dividend Yield: 2.7% (3) Shares with DPS evolut
Slide 23: Agenda
AGENDA FY 2012 Highlights • Group Overview • Results by business Financial Results Appendix FY 2012 Financial Results 23
Slide 24: Integration process update
Integration process update In 2011-12 executed over 50% of actions planned in the full integration process Q2 2011 H2 2011 FY 2012 FY 2013 Design Execution • New Group • Start deployment • Consolidate “One- • Actions completed to achieve the Organization of new company” identity with €100m cumul
Slide 25: Prysmian Group at a glance
Prysmian Group at a glance FY 2012 Results Sales breakdown by geography Sales breakdown by business APAC 15% Telecom 19% Utilities Latin 29% America Other 9% 2% € 7.8 bn € 7.8 bn N. America 14% Industrial EMEA 23% 62% T&I 27% Adj. EBITDA by business Adj. EBITDA margin by business Telecom 11.8% 25% 1
Slide 26: Bridge Consolidated Sales
Bridge Consolidated Sales Euro Millions – Full Combined Total Consolidated -1.8% (141) (159) 177 (2 ) 7,973 7,850 7,848 FY 2011 Combined Org.Growth Metal Effect Exchange Rate FY 2012 L-f-L Perimeter effect FY 2012 Energy Cables & Systems Division -1.4% ( 91 ) ( 154) 133 ( 48 ) 6,542 6,430 6,382 FY 2
Slide 27: Energy Segment – Profit and Loss Statement
Energy Segment – Profit and Loss Statement Euro Millions FY 2011 FY 2011 FY 2012 Reported a) Combined b) Sales to Third Parties 6,382 6,268 6,542 YoY total growth (2.4%) c) YoY organic growth (1.4%) c) Adj. EBITDA 487 447 458 % on sales 7.6% 7.1% 6.9% Adj. EBIT 379 348 354 % on sales 5.9% 5.5% 5.3%
Slide 28: 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 Total Organic FY 2012 Comb. growth growth Sales to Third Parties Utilities 2,287 2,318 (1.3%) 1.1% Trade & Installers 2,159 2,233 (3.3%) (2.6%) Industrial 1,801 1,824 (1.3%) (1.5%) Others
Slide 29: Telecom Segment – Profit and Loss Statement
Telecom Segment – Profit and Loss Statement Euro Millions FY 2011 FY 2011 FY 2012 Reported a) Combined b) Sales to T hird Parties 1,466 1,315 1,431 YoY total growth 2.4% c) YoY organic growth (3.5%) c) Adj. EBITDA 160 121 128 % on sales 10.9% 9.1% 8.8% Adj. EBIT 104 78 81 % on sales 7.1% 5.8% 5.6% a
Slide 30: Utilities – Submarine as key driver of profitability increase
Utilities – Submarine as key driver of profitability increase Record Order-book despite European outlook confirms commitment on renewables and interconnections Sales breakdown Orders Backlog Evolution FY 2012 Submarine (€ million) ~1,900 ~1,700 Network components 7% ~1,000~1,050 Transmission - ~900
Slide 31: Trade & Installers
Trade & Installers Sales breakdown Sales breakdown by geographical area Total Construction Investments FY 2012 2012 = 100 140 North America 130 C.&S. America 120 APAC* Eastern Europe 110 22% Europe Italy & Spain 100 8% Nordics 90 8% 80 A08 A09 A10 A11 E12 E13 E14 E15 E16 € 2.2 bn N. America * Excl.
Slide 32: Industrial
Industrial Sales breakdown Sales breakdown by geographical area Sales breakdown by business segment FY 2012 FY 2012 Other Asia Pacific Elevator 4% 18% 7% Specialties & Renewables OEM Latin America 12% 32% 8% € 1.8 bn € 1.8 bn EMEA OGP & SURF 48% 23% North America 26% Automotive 22% FY 2012 Financial
Slide 33: Telecom
Telecom Sales breakdown Sales breakdown by geographical area Sales breakdown by business segment FY 2012 FY 2012 JVs and other Asia Pacific Optical, 23% 27% Connectivity and Fiber EMEA 45% 44% € 1.5 bn € 1.5 bn Multimedia & Latin America Specials 15% 18% North America Copper 14% 14% FY 2012 Financia
Slide 34: Evolution of Net Financial Position
Evolution of Net Financial Position Euro Millions Net Financial Position bridge (1 ) 45 (545 ) 129 141 86 1,064 (75 ) 74 918 NFP Cash Flow NWC Paid Taxes Acquisitions Net Financial Dividends Other NFP 31 Dec '11 from Variations Operative Charges 31 Dec '12 Operations CAPEX (before WC changes) FY 201
Slide 35: CAPEX evolution
CAPEX evolution Investments focused on high value added businesses Capacity Increase & Product mix (€m) 2012 Capex by destination Maintenance, Efficiency, IT and R&D Maintenance, Efficiency, IT and R&D Capacity Increase & Product mix Capacity Increase & Product Mix 159 152 116 IT and R&D 107 102 85
Slide 36: 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 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 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12 Jan-13 Jan-08 Jan-09 J
Slide 37: 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