Prysmian S.p.a. · MIL:PRY
Prysmian — Q1 2022 Earnings Presentation
32 slides from Prysmian's earnings presentation, May 12, 2022
Slide 1: 1Q 2022 Financial Results
1Q 2022 Financial Results Milan - May 12th, 2022 1
Slide 2: 1Q 2022 Highlights Results
1Q 2022 Financial Appendix Highlights Results Group Overview Outlook
Slide 3: 1Q 2022 Key Highlights
1Q 2022 Key Highlights RESILIENCE AND SELECTIVE GROWTH: THE STRONGEST Q1 EVER + 11.4% Org. Growth (ex Projects) Excellent start of the year, with results further confirming the relevance of a well-balanced business portfolio and geographical footprint ROBUST START OF THE YEAR DRIVEN BY ENERGY AND TE
Slide 4: 1Q 2022 Financial Highlights
1Q 2022 Financial Highlights SALES ADJ. EBITDA FREE CASH FLOW SALES ORGANIC GROWTH* ADJ. EBITDA ADJ. EBITDA MARGIN FCF** NET DEBT 3,677 €M 11.4% 288 €M 7.8% 86 €M 2,380 €M SOLID ORGANIC GROWTH MARGINS IMPROVEMENT FREE CASH FLOW ▪ +14.7% E&I, with sound trends across ▪ +75 €M Adj. Ebitda increase vs
Slide 5: Sound growth across businesses and regions
Sound growth across businesses and regions 1Q 2022 y-o-y org. growth excluding Projects segment Org growth by Geography Organic growth by Business 35% of total 48% of total 1Q22 Group org. growth Group Group (ex-Projects) 10.0% 14.1% NORTH EMEA 11.4% AMERICA 14.7% 9% of total 8% of total 7.9% 7.4% G
Slide 6: Proactive management and balanced portfolio spurring results
Proactive management and balanced portfolio spurring results Selective growth by business and geography Adj EBITDA bridge 288 213 Adj Ebitda Forex RM + Volume Price/Mix Volume Price/Mix Ebitda Efficiencies Adj Ebitda 1Q 2021 Distribution Energy Energy Telecom Telecom Projects +Fix costs 1Q 2022 infl
Slide 7: Solid projects wins and firm backlog
Solid projects wins and firm backlog Approx. 8 €Bn/year of market value expected in the next decade, with Europe to lead the market NEW ORDERS BACKLOG MARKET 2022 NEW ORDER: >1.4 € BILLION ONLY FIRM ORDERS IN THE BACKLOG ROBUST MARKET GROWTH List of main projects awarded in 2022 Included only projec
Slide 8: Sound performance in Energy and Telecom
Sound performance in Energy and Telecom Projects Energy Telecom TOTAL 314 406 +31.6% 2,114 2,839 +12.1% 382 432 +7.4% 2,810 3,677 +13.6% Sales Sales E&I Industrial & NWC 1,400 1,941 +14.7% 648 802 +7.9% 288 132 213 Adj. Ebitda 75 67 Adj. Ebitda 55 58 Adj. Ebitda % 29 32 49 6 9 at 2021 7.6% 7.4% meta
Slide 9: A global recovery: the value of a wide geographical presence
A global recovery: the value of a wide geographical presence Data excluding Projects EMEA NORTH AMERICA LATIN AMERICA ASIA PACIFIC 1,192 1,565 +14.1% 868 1,151 +10.0% 226 290 +5.3% 210 265 +8.6% Sales 142 87 Adj. Ebitda 71 58 13.7% 21 24 19 4.8% 18 9.4% 8.1% 4.9% 4.5% 10.0% 12.3% 9.6% 8.3% 8.5% 7.4%
Slide 10: Value4All Plan
Value4All Plan A new stock grant plan for Prysmian employees Value4All Plan LTI participants ~ 700 ▪ Share the value creation with a broader Prysmian Group workforce (~25,000) MBO participants ▪ Enhance the employee share ownership (today ~ 3,200 around 35%), to foster people loyalty and engagement
Slide 11: 1Q 2022 Highlights Results
1Q 2022 Financial Appendix Highlights Results Group Overview Outlook
Slide 12: Promising outlook: Hinting at upper range of Adj EBITDA
Promising outlook: Hinting at upper range of Adj EBITDA 2022 GUIDANCE ADJ. EBITDA (€M) 1,010 1,080 FCF before acquisition FCF (€M) & disposals ~ 400 ±15% Assuming no relevant Covid disruption on current trend, no further deterioration of geopolitical crisis related to Ukraine and no extreme price mo
Slide 13: 1Q 2022 Financial Appendix
1Q 2022 Financial Appendix Highlights Results Group Overview Outlook
Slide 14: Profit and Loss Statement
Profit and Loss Statement Euro Millions 1Q 2022 1Q 2021 Adj. EBITDA Bridge SALES 3,677 2,810 Q1 YoY total growth 30.9% YoY organic growth 13.6% ADJ. EBITDA 2021 213 Adj.EBITDA 288 213 Projects 3 % on sales 7.8% 7.6% Energy 63 of which share of net income 11 6 Telecom (ex-share of net income) 6 Adjus
Slide 15: Statement of financial position (Balance Sheet)
Statement of financial position (Balance Sheet) Euro Millions 31 Mar 2022 31 Mar 2021 31 Dec 2021 Net fixed assets 5,367 5,110 5,304 of which: goodwill 1,664 1,607 1,643 Net working capital 1,516 1,071 650 of which: derivatives assets/(liabilities) 229 171 174 of which: Operative Net working capital
Slide 16: Cash Flow
Cash Flow NET DEBT EVOLUTION +86 €M Free Cash Flow 24 40 ( 950 ) (7) ( 57) 134 72 135 295 345 24 2,325 2,380 o/w 222 €M metal price impact, and 160 €M other raw materials price impact 31-Mar-21 Cash flow WC Restructuring Net Operative Financial Paid income Dividend Antitrust Dividend Acquisitions &
Slide 17: 1Q 2022 Financial Appendix
1Q 2022 Financial Appendix Highlights Results Group Overview Outlook
Slide 18: Supporting Ukraine: Prysmian's Aid to Refugees
Supporting Ukraine: Prysmian's Aid to Refugees ▪ While we don’t have business activity and employees in Ukraine, we are donating more than €500,000 to support those who are suffering and far from home. ▪ Providing among others emergency reception at the border, medical assistance, food and shelter.
Slide 19: German Corridors
German Corridors 525kV HVDC Technology HVDC Innovation Leadership 160 kms produced 140 kms FAT Prysmian has completed all PREQUALIFICATIONS and TYPE TESTS ON SCHEDULE for both P-Laser and XLPE 525kV HVDC Systems State of the Art High Voltage Electrical Labs set up in LIVORNO, GRON 120 kms in Germany
Slide 20: 1Q 2022 Financial highlights
1Q 2022 Financial highlights Euro Millions, % on Sales SALES ADJUSTED EBITDA (1) +13.6%* 3,677 288 2,810 213 7.6% 7.8% 1Q 2021 1Q 2022 1Q 2021 1Q 2022 OPERATIVE NET WORKING CAPITAL (2) NET FINANCIAL DEBT 1,287 2,325 2,380 900 1,760 476 3.5% 8.0% 8.8% DEC-21 MAR-21 MAR-22 DEC-21 MAR-21 MAR-22 © Prysm
Slide 21: Profit and Loss Statement
Profit and Loss Statement Euro Millions 1Q 2022 1Q 2021 SALES 3,677 2,810 YoY total growth 30.9% YoY organic growth 13.6% Adj.EBITDA 288 213 % on sales 7.8% 7.6% of which share of net income 11 6 Adjustments (3) (14) Adjustments and Special Items on EBIT EBITDA 285 199 % on sales 7.8% 7.1% 1Q 2022 1
Slide 22: Projects
Projects Euro Millions, % on Sales SALES HIGHLIGHTS +31.6%* SUBMARINE / Strong organic growth driving growth in Projects / Tendering activity ongoing, with a solid pipeline of projects (interconnections and off-shore wind farms) / More than €1.4 billion of new orders in 1Q 2022 406 314 UNDERGROUND H
Slide 23: Energy & Infrastructure
Energy & Infrastructure Euro Millions, % on Sales SALES HIGHLIGHTS +14.7%* TRADE & INSTALLERS / Excellent performance continued in Q1 / Solid demand and price management drives margins improvement 1,941 1,400 POWER DISTRIBUTION / Double digit growth driven by North America and EMEA 1Q 2021 1Q 2022 *
Slide 24: Industrial & Network Components
Industrial & Network Components Euro Millions, % on Sales SALES HIGHLIGHTS +7.9%* SPECIALTIES, OEM & RENEWABLES / Strong result in OEM & Renewables. Good performances in Mining, Infrastructure and Marine, partially offset by Railways and Defence. 802 ELEVATOR 648 / Overall stable results, with posit
Slide 25: Telecom
Telecom Euro Millions, % on Sales SALES HIGHLIGHTS +7.4%* OPTICAL CABLE & FIBRE / Solid growth and margins improvement in particular in North America / New partnership with Telstra in Australia / Further capacity expansion in North America 382 432 MMS / Solid organic growth confirmed in Q1 1Q 2021 1
Slide 26: Financial Highlights
Financial Highlights Euro Millions Sales Adj.EBITDA 1Q 2022 1Q 2021 1Q 2022 1Q 2021 organic Adj.EBITDA Adj.EBITDA €M €M €M €M growth Margin Margin PROJECTS 406 31.6% 314 32 7.8% 29 9.3% Energy & Infrastructure 1,941 14.7% 1,400 132 6.8% 75 5.3% Industrial & Network Components 802 7.9% 648 55 6.8% 49
Slide 27: Cash Flow Statement
Cash Flow Statement Euro Millions 12 Months 31 Mar 2022 31 Mar 2021 (from 1/4/2021 to 31/3/2022) Adj.EBITDA 288 213 1,051 Adjustments (3) (14) (38) EBITDA 285 199 1,013 Net Change in provisions & others (25) (10) 2 Share of income from investments in op.activities (11) (6) (32) Cash flow from operat
Slide 28: Prysmian Group Liquidity and Debt Profile
Prysmian Group Liquidity and Debt Profile COMFORTABLE LIQUIDITY POSITION: ▪ Average debt maturity of 2.6 years ▪ 1,0 €Bn of committed Revolving Credit Facility fully unutilized as of 31st March 2022 ▪ Approx. 1,0 €Bn cash on balance as of 31st March 2022 CURRENT FINANCIAL DEBT MATURITY PROFILE(*) UN
Slide 29: Bridge Consolidation Sales
Bridge Consolidation Sales Euro Millions PROJECTS ENERGY & INFRASTRUCTURE 99 3 ( 10 ) 47 10 279 205 Org.growth 406 Org.growth 1,941 314 31.6% 1,400 14.7% TOTAL CONSOLIDATED 407 66 11 1Q 2021 Organic Metal Exchange 1Q 2022 1Q 2021 Organic Metal Exchange Perimeter 1Q 2022 Growth Effect Rate Growth Eff
Slide 30: 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) 1Q 2021 financial charges has been reclassified for a better representation © Prysmian Group 2022 2021 30
Slide 31: 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 32: Thank you
Thank you prysmiangroup.com 32