Prysmian S.p.a. · MIL:PRY
Prysmian — H1 2019 Earnings Presentation
31 slides from Prysmian's earnings presentation, Aug 1, 2019
Slide 1: First half 2019 Financial Results
First half 2019 Financial Results MILAN – August 1st,2019
Slide 2: Agenda
AGENDA ➢ H1 2019 Highlights o Group overview o Outlook ➢ Financial Results ➢ Appendix 2
Slide 3: H1 2019 Financial Highlights
H1 2019 Financial Highlights Organic sales growth at +1.9% supported by: - Reiterated high performance in Telecom (+7.9%) with a double-digit growth in optical - Solid trend in E&I (+3.1%), with a double digit Power Distribution - Strong performance of North America (+4.7%) Adj. EBITDA at 521 €M (8.
Slide 4: H1 2019 Financial Highlights
H1 2019 Financial Highlights Euro Millions, % on Sales Sales (1) (4) Adjusted EBITDA (1)(2) 11,523 767 +1.9%* 521 of which 21 €M IFRS 16 effect 413 5,782 5,849 6.7% 7.1% 8.9% FY 2018 H1 2018 H1 2019 FY 2018 H1 2018 H1 2019 combined combined combined combined * Org. Growth. Reported Operative Net Wor
Slide 5: Adj. EBITDA by Segment
Adj. EBITDA by Segment Euro Millions, % on Sales, excluding IFRS 16 impact Projects Energy Telecom Sales Organic growth -3.4% Sales Organic growth 1.8% Sales Organic growth 7.9% Excluding WL E&I Industrial & NWC. Excluding one-offs 3.1% -1.0% 155 162 161 139 151 143 94 94 106 93 69 83 7.9% 11.4% 15.
Slide 6: Sound awards across geographies
Sound awards across geographies Approx. €1.1 billion awarded in the first seven months of the year Viking Link | UK-DENMARK Hollande Kuste Zuid 3&4| NL ▪ UK – Denmark Interconnector ▪ offshore Wind Farm ▪ ca. 700 €M project ▪ ca. 30 €M project ▪ 525 kV HVDC MI technology ▪ 66 kV submarine cables ▪ 1
Slide 7: Telecom Business
Telecom Business [ex. IFRS 16 impact] Strong performance continued in H1 2019 notwithstanding lower contribution from YOFC Adj. EBITDA evolution in H1 2019 Highlights 38 (5 ) ( 26 ) ▪ Double-digit organic growth excluding Copper business 188 155 162 ▪ Solid performance, supported by positive trend i
Slide 8: Sales & Adj. EBITDA by Geography
Sales & Adj. EBITDA by Geography Euro Millions, % on Sales, excluding IFRS 16 impact EMEA North America Latin America Asia Pacific Total 3,147 +1.2% 1,751 +4.7% 466 -2.7% 485 +1.4% 5,849 +1.9% +3.0% +4.1% -1.9% +2.0% +2.8% 500 413 265 244 70 185 117 195 45 63 38 26 6.1% 7.8% 7.2% 10.6% 7.6% 9.6% 13.
Slide 9: General Cable Acquisition: 1 year after
General Cable Acquisition: 1 year after data in € million At June FY 2019 Run rate A sound value creation 2019 target target 2021 ✓ Organizational streamlining started right after closing Cost efficiencies ~ 90 ~ 120 ~ 175 ✓ Purchasing savings Working capital ✓ Efficient stock management ~ 200 ~ 200
Slide 10: Agenda
AGENDA ➢ H1 2019 Highlights o Group overview o Outlook ➢ Financial Results ➢ Appendix 10
Slide 11: 2019 Guidance Confirmed
2019 Guidance Confirmed 2019 Adj. EBITDA target (€M) H2 assumption • Continued positive trends in: ➢ North America Mid-point 950 1,020 ➢ Latin America 985 • Confirmed solid trend in Telecom • Moderate volumes growth in cyclical business with stable 2019 Adj. EBITDA target excluding the estimation im
Slide 12: Agenda
AGENDA ➢ H1 2019 Highlights o Group overview o Outlook ➢ Financial Results ➢ Appendix 12
Slide 13: Profit and Loss Statement
Profit and Loss Statement Euro Millions H1 2019 H1 2018 Adj. EBITDA Bridge of which total IFRS 16 combined reported (4) Q1 Q2 H1 Sales 5,849 - 5,782 4,364 YoY total growth combined 1.2% ADJ. EBITDA 2018 198 215 413 YoY organic growth 1.9% H1 2018 WL effect 20 50 70 Adj.EBITDA 521 21 413 339 Projects
Slide 14: Adjustments and Special Items on EBIT
Adjustments and Special Items on EBIT Euro Millions H1 2019 H1 2018 Non-recurring Items (Antitrust investigation) (6) - Restructuring (7) (14) of which General Cable integration costs 1 (5) Other Non-operating Income / (Expenses) (16) (32) of which General Cable acquisition related costs - (4) of wh
Slide 15: Financial Charges
Financial Charges Euro Millions H1 2019 H1 2018 Net interest expenses (44) (32) of which non-cash conv.bond interest exp. (5) (7) Financial costs IFRS 16 (2) n.a. Bank fees amortization (4) (3) Gain/(loss) on exchange rates (20) (12) Gain/(loss) on derivatives 5 3 Non recurring effects (1) (1) Other
Slide 16: Statement of financial position (Balance Sheet)
Statement of financial position (Balance Sheet) Euro Millions 30 Jun 2019 30 Jun 2018 (4) 31 Dec 18 (4) Net fixed assets 5,226 4,983 5,101 of which: goodwill 1,576 1,555 1,571 of which: IFRS 16 effect 141 n.a n.a Net working capital 1,258 1,072 692 of which: derivatives assets/(liabilities) (11) 22
Slide 17: LTM Cash Flow
LTM Cash Flow Euro Millions Net financial debt evolution LTM ( 697 ) 120 ( 496 ) 109 112 263 159 17 115 65 38 3,014 2,910 3,019 2,798 2,802 2,819 2,535 2,643 2,643 2,317 2,317 2,355 2,420 0 30-Jun-18 Cash flow WC WL General Net Operative Financial Paid income Dividend Capital IFRS 16 Other 30-Jun-19
Slide 18: Agenda
AGENDA ➢ H1 2019 Highlights o Group overview o Outlook ➢ Financial Results ➢ Appendix 18
Slide 19: Performance by Segment
Performance by Segment Euro Millions, % on Sales, excluding IFRS 16 impact Adj. EBITDA Margin H1’18 H1’19 18.9% 18.3% 11.4% 7.9% 6.6% 7.5% 7.1% 8.6% 3.9% 5.5% 17.4%* 18.2%* Project E&I Industrial & NWC. Telecom Total Adj. EBITDA (€M) / % Org. Growth H1’18 H1’19 ±X.X% = Sales Organic Trend +1.9% 500
Slide 20: Projects
Projects Euro Millions, % on Sales, excluding IFRS 16 impact Sales Highlights 1,750 SUBMARINE • Adj. EBITDA margin –ex WL- impacted by operational reworks and project timing -3.4%* • Awarded the bulk of Viking Projects for approx. 700 €M • Tender activity continue in H2 861 828 • Y19 projects award
Slide 21: Energy & Infrastructure
Energy & Infrastructure Euro Millions, % on Sales, excluding IFRS 16 impact Sales (5) Highlights 5,318 TRADE & INSTALLERS • Global stable trend, with continued positive momentum in North America +3.1%* • Profitability improvement in Europe and Latin America. Still week demand in Middle East 2,680 2,
Slide 22: Industrial & Network Components
Industrial & Network Components Euro Millions, % on Sales, excluding IFRS 16 impact Sales (5) Highlights SPECIALTIES, OEMS & RENEWABLES 2,527 • Positive O&M and renewables, especially in Latin America and North America, supported by clear Management -1.0%* approach • Positive trend in Mining and Sol
Slide 23: Telecom
Telecom Euro Millions, % on Sales, excluding IFRS 16 impact Sales Highlights 1,634 OPTICAL CABLE & FIBRE • Robust growth, supported by positive trend mainly in Europe and North America. Negative APAC +7.9%* • EBITDA Margin benefitting from volume increase, capacity expansion, plant supply mix 886 •
Slide 24: Bridge Consolidation Sales
Bridge Consolidation Sales Euro Millions - Fully Combined Results Projects Energy & Infrastructure ( 42 ) 41 84 ( 29 ) 1 (5) Total Consolidated Org.growth Org.growth -3.4% 2,680 3.1% 2,763 861 828 108 (103 ) 62 Org.growth H1 2018 Organic Metal Exchange H1 2019 H1 2018 Organic Metal Exchange H1 2019
Slide 25: Profit and Loss Statement
Profit and Loss Statement Euro Millions H1 2019 H1 2018 of which total IFRS 16 combined reported (4) Sales 5,849 - 5,782 4,364 YoY total growth combined 1.2% YoY organic growth 1.9% Adj.EBITDA 521 21 413 339 % on sales 8.9% 7.1% 7.8% of which share of net income 13 36 Adjustments (29) (46) EBITDA 49
Slide 26: Cash Flow Statement
Cash Flow Statement 12 Months (from Euro Millions H1 2019 H1 2018 1/7/2018 to 30/6/2019) Adj.EBITDA 521 339 875 Adjustments (29) (46) (175) EBITDA 492 293 700 Net Change in provisions & others (89) 27 (6) Share of income from investments in op.activities (13) (36) (36) Cash flow from operations (bef
Slide 27: Financial Highlights
Financial Highlights Euro Millions - Fully Combined Results Sales Adj.EBITDA H1 2019 H1 2018 H1 2019 H1 2018 * total organic of which Adj.EBITDA Adj.EBITDA €M €M €M €M growth growth IFRS 16 Margin Margin PROJECTS 828 -3.9% -3.4% 861 97 3 11.7% 69 7.9% Energy & Infrastructure 2,763 3.1% 3.1% 2,680 15
Slide 28: Prysmian Group Debt Profile
Prysmian Group Debt Profile Average maturity of 3.5 years including RCF 2019 – Limited exposure to financial market volatility FIXED/VARIABLE RATE COMPOSITION REPAYMENT DATE (€M) Total gross debt: 3,168 (*) Unicredit TL Floating Convertible bond 200 zero – coupon 17% 475 RCF 2019 (**) Acq Term Loan
Slide 29: Notes
Notes (1) General Cable figures included starting from 1 January 2018; General Cable figures are restated applying Prysmian accounting principles and policies; (2) Adjusted excluding restructuring, non-operating income/expenses and non-recurring income / expenses; (3) Defined as NWC excluding deriva
Slide 30: 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 31: Thank you
Thank you prysmiangroup.com