Prysmian S.p.a. · MIL:PRY
Prysmian — Q1 2017 Earnings Presentation
30 slides from Prysmian's earnings presentation, May 10, 2017
Slide 1: Q1 2017 Financial Results
Q1 2017 Financial Results Milan – May 10th 2017
Slide 2: Agenda
Agenda Q1 2017 Highlights o Group overview o Results by business o Outlook Financial results Appendix Q1 2017 Financial Results 2
Slide 3: Q1 2017 Financial Highlights
Q1 2017 Financial Highlights Organic Growth at -3.7%, driven by project phasing in Energy Projects business and continued weakness in Energy Products markets. Adj. EBITDA at € 154m (8.3% of sales), up from € 150m in Q1 2016, mainly driven by: Solid growth in the Telecom business. Substantial
Slide 4: Q1 2017 Business Highlights
Q1 2017 Business Highlights ENERGY PROJECTS BUSINESS TELECOM BUSINESS Sound order intake exceeding New supply agreement with €700m in January-April 2017 Verizon worth approx. $ 300m period. SHARES BUY-BACK PROGRAMME 2,053,001 share purchased as of March 31st, equal to 0.9% of shareholder’s cap
Slide 5: Q1 2017 Key Financials
Q1 2017 Key Financials Euro Millions, % on Sales Sales Adjusted EBITDA (1) 7,567 711 -3.7%* 1,810 1,849 150 154 9.4% 8.3% 8.3% 2016 Q1 '16 Q1 '17 2016 Q1 '16 Q1 '17 * Org. Growth Operative Net Working Capital (2) Net Financial Debt 785 1,038 998 673 318 537 4.2% 9.3% 10.6% Dec-16 Mar-16 Mar-17 Dec-1
Slide 6: Adj. EBITDA by business
Moderate organic decline with stable profitability. Positive performance in Telecom offset by weakness in Energy Products and Oil&Gas businesses. Q1’16 Q1’17 Adj. EBITDA Margin 15.4% 16.3% 14.4% 11.2% 8.7% 7.9% 8.3% 8.3% 5.0% 4.3% 3.8% Energy Industrial Projects E&I Oil&Gas Telecom Total & NWC. Q1’1
Slide 7: Agenda
Agenda Q1 2017 Highlights o Group overview o Results by business o Outlook Financial results Appendix Q1 2017 Financial Results 7
Slide 8: Energy Projects
Energy Projects Euro Millions, % on Sales Sales Highlights 1,634 Submarine • Positive market momentum confirmed by the recent projects awarded both in Interconnection (IFA2, approx. €350m) and Offshore wind (RTE Offshore, approx. €300m). January-April ‘17 order intake at approximately €700m. -15.2%*
Slide 9: LROE (€/MWh) – Offshore Wind Market Prospective
Offshore Wind Market Prospective. Cost reduction driven by technological innovation and projects scale. LROE* Analysis of traded offshore wind projects Key Highlights * LROE: Levelised Revenue Of Electricity • LROE reduced by half in the last 2 years. 150 • Larger projects scale and increasing turbi
Slide 10: Energy & Infrastructure
Energy & Infrastructure Euro Millions, % on Sales Sales Highlights 3,016 Trade & Installers • Positive trend in the Nordics and Oceania, counterbalanced by a weak performance in Central-Eastern Europe, Turkey and Argentina. -2.3%* • Profitability in the quarter temporarily affected by sharp increase
Slide 11: Industrial & Network Components
Industrial & Network Components Euro Millions, % on Sales Sales Highlights Order Backlog 1,343 • Order backlog started to recover after 2 consecutive quarters of decline. Specialties, OEMs & Renewables -3.7%* • Sound performance in Railway, supported by increasing order inflow, more than offset by s
Slide 12: Oil & Gas
Oil & Gas Euro Millions, % on Sales Sales Highlights SURF 300 • Umbilical: volume and price drop in line with expectations driven by the low level of orders in Brazil in 2016. 2017 bids characterized by continued price pressure. • DHT: positive result in North America shale, offset by major deep-wat
Slide 13: Telecom
Telecom Euro Millions, % on Sales Sales Highlights 1,164 Telecom Solutions • Solid performance mainly driven by the strong demand of the optical business. • The new supply agreement signed between Prysmian and Verizon in the US +12.3%* (approx. $300m in 3 years) confirms the solid market momentum in
Slide 14: Agenda
Agenda Q1 2017 Highlights o Group overview o Results by business o Outlook Financial results Appendix Q1 2017 Financial Results 14
Slide 15: FY 2017 Outlook
FY 2017 Outlook 2017 Adj.EBITDA Target (€ million) 2017 Adj.EBITDA Target Assumptions (€ million) Mid-point target assumptions: • Continued strong growth in Telecom business 710 Mid-point € 730m 750 • Stable results in Energy Projects after adsorbing negative perimeter effect in Underground HV (Chin
Slide 16: Agenda
Agenda Q1 2017 Highlights o Group overview o Results by business o Outlook Financial results Appendix Q1 2017 Financial Results 16
Slide 17: Profit and Loss Statement
Profit and Loss Statement Euro Millions Q1 2017 Q1 2016* Sales 1,849 1,810 YoY total growth 2.2% 0.0% YoY organic growth (3.7%) 0.0% Adj.EBITDA 154 150 % on sales 8.3% 8.3% Adjustments (24) (10) EBITDA 130 140 % on sales 7.0% 7.7% Adj.EBIT 110 107 % on sales 5.9% 5.9% Adjustments (24) (10) Special i
Slide 18: Adjustments and Special Items on EBIT
Adjustments and Special Items on EBIT Euro Millions Q1 2017 Q1 2016 Non-recurring Items (Antitrust Investigation) (15) - Restructuring (5) (7) Other Non-operating Income / (Expenses) (4) (3) EBITDA adjustments (24) (10) Special items (8) (25) Gain/(loss) on metal derivatives 3 2 Assets impairment -
Slide 19: Financial Charges
Financial Charges Euro Millions Q1 2017 Q1 2016 Net interest expenses (17) (15) of which non-cash conv.bond interest exp. (4) (2) Bank fees amortization - - Gain/(loss) on exchange rates 1 7 Gain/(loss) on derivatives 1) (7) (9) Non recurring effects (1) (1) Other non-operating financial expenses (2
Slide 20: Statement of financial position (Balance Sheet)
Statement of financial position (Balance Sheet) Euro Millions 31 Mar 2017 31 Mar 2016* 31 Dec 2016 Net fixed assets 2,656 2,546 2,630 of which: goodwill 447 446 448 of which: intangible assets 340 272 344 of which: property, plants & equipment 1,653 1,535 1,631 Net working capital 788 646 325 of whi
Slide 21: Cash Flow
Cash Flow Euro Millions 12 Months (from Q1 2017 Q1 2016 1/4/2016 to 31/3/2017) Adj.EBITDA 154 150 715 Adjustments (24) (10) (80) EBITDA 130 140 635 Net Change in provisions & others (1) (17) 16 Share of income from investments in op.activities (10) (7) (34) Cash Flow from operations (bef. WC changes
Slide 22: Agenda
Agenda Q1 2017 Highlights o Group overview o Results by business o Outlook Financial results Appendix Q1 2017 Financial Results 22
Slide 23: Bridge Consolidated Sales
Bridge Consolidated Sales Euro Millions Energy Projects E&I Industrial & NWC 3 67 ( 12 ) 16 3 ( 18 ) ( 53 ) 1 (2) ( 17 ) Org.growth Org.growth 806 -3.7% 340 346 754 333 Org.growth -2.3% -15.2% 275 275 Oil & Gas Telecom Total Consolidated 15 ( 11 ) 11 6 ( 66 ) 101 5 ( 17) 1 34 - 322 328 1,810 Org.gro
Slide 24: Profit and Loss Statement
Profit and Loss Statement Euro Millions Q1 2017 Q1 2016* Sales 1,849 1,810 YoY total growth 2.2% 0.0% YoY organic growth (3.7%) 0.0% Adj.EBITDA 154 150 % on sales 8.3% 8.3% of which share of net income 10 7 Adjustments (24) (10) EBITDA 130 140 % on sales 7.0% 7.7% Adj.EBIT 110 107 % on sales 5.9% 5.
Slide 25: Energy Projects Segment – Profit and Loss Statement
Energy Projects Segment – Profit and Loss Statement Euro Millions Q1 2017 Q1 2016 Sales to Third Parties 275 346 YoY total growth (20.5%) 0.0% YoY organic growth (15.2%) 0.0% Adj. EBITDA 40 39 % on sales 14.4% 11.2% Adj. EBIT 30 31 % on sales 10.7% 8.8% Q1 2017 Financial Results 25
Slide 26: Energy Products Segment – Profit and Loss Statement
Energy Products Segment – Profit and Loss Statement Euro Millions Q1 2017 Q1 2016* E&I 806 754 YoY total growth 7.0% Sales to Third Parties YoY organic growth (2.3%) Industrial & Netw. Comp. 340 333 YoY total growth 1.9% YoY organic growth (3.7%) Other 34 23 YoY total growth 48.1% YoY organic growth
Slide 27: Oil&Gas Segment – Profit and Loss Statement
Oil&Gas Segment – Profit and Loss Statement Euro Millions Q1 2017 Q1 2016 Sales to Third Parties 66 82 YoY total growth (19.4%) 0.0% YoY organic growth (21.2%) 0.0% Adj. EBITDA 0 3 % on sales - 3.8% Adj. EBIT (4) (2) % on sales (6.5%) (1.8%) Q1 2017 Financial Results 27
Slide 28: Telecom Segment – Profit and Loss Statement
Telecom Segment – Profit and Loss Statement Euro Millions Q1 2017 Q1 2016 Sales to Third Parties 328 272 YoY total growth 20.6% 0.0% YoY organic growth 12.3% 0.0% Adj. EBITDA 53 42 % on sales 16.3% 15.4% Adj. EBIT 43 32 % on sales 13.2% 11.7% Q1 2017 Financial Results 28
Slide 29: Reference Scenario
Reference Scenario Commodities & Forex Brent Copper Aluminium Brent $/bbl Copper $/ton Aluminium $/ton Brent €/bbl Copper €/ton Aluminium €/ton 150 12,000 3,500 125 10,000 3,000 8,000 2,500 100 2,000 75 6,000 1,500 50 4,000 1,000 25 2,000 J- J- J- J- J- J- J- J- J- J- 500 J- J- J- J- J- J- J- J- J-
Slide 30: 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