Company Presentation January 2015 Company Presentation January 2015 1
AGENDA Group Overview & 2014 Outlook Draka integration Financial Results Appendix Company Presentation January 2015 2
Prysmian Group at a glance LTM Q314 Results Sales breakdown by geography Sales breakdown by business APAC Telecom 12% 14% Other Utilities Latin America 2% 31% 8% 6.7 bn 6.7 bn North America Industrial 15% 25% EMEA 65%…
Long Cycle Businesses Vs. Short Cycle Businesses Adj. EBITDA breakdown Long Cycle Businesses Short Cycle Businesses Short Cycle Businesses Adj. EBITDA 68% 32% (Combined Prysmian + Draka) Profitability: stabilization of margins after…
Profitability in line with previous year excluding WL effect Positive organic growth in 9M despite slowdown in Europe and Brazil Organic Growth Adj. EBITDA % change on same period of previous year Euro million 2013 2014 438 WL…
Industrial Footprint Competitiveness Moving from local to regional supply chain 2014 Highlights Energy: Optical Cables: Optical Fiber: Footprint rationalization Largest factory by H115 50m investment to reduce restarted:…
Utilities Euro Millions, % on Sales Sales to Third Parties Highlights Excl. WL -1.4%* sub.project effect DISTRIBUTION -3.1%* Mid single digit organic decline in 9M. Stabilization of prices and volumes on 2,278 2,217 +1.8%* H1…
Utilities - Strengthening leadership in Submarine to match increasing demand in a fast growing sector Transmission Sales & Adj.EBITDA (m) CAGR 12% 1,500 1,300 350 1,250 1,150 1,250 1,050 300 850 Sales (L axis) 1,000 250 750…
Trade & Installers Euro Millions, % on Sales Sales to Third Parties Highlights -4.3%* Mid single digit organic growth in 9M, softening from Q2 Europe: on-going volume recovery driven by Nordics and Eastern 2,159 1,914 +5.3%*…
Trade & Installers Sales breakdown Sales breakdown by geographical area Total Construction Investments LTM Q314 2013 = 100 120 N.A. APAC 110 Latam Eastern Europe Europe 24% 100 90 Nordics 11% 80 A10 A11 A12 E13 E14 E15…
Industrial Euro Millions, % on Sales Sales to Third Parties Highlights +4.0%* Overall Industrial performance impacted by slow-down in the capital goods sector in Europe in the last months 1,801 1,764 -1.9%* 1,339 Specialties &…
Industrial Sales breakdown Sales breakdown by geographical area Sales breakdown by business segment LTM Q314 LTM Q314 Other Asia Pacific 4% 22% Elevator 9% Specialties & OEM 1) EMEA 44% Latin America 44% OGP & SURF 8% 1.7…
Telecom Euro Millions, % on Sales Sales to Third Parties Highlights -15.4%* Improving organic growth supported by strong demand in optical largely offset by lower average pricing and continuous decline in Copper. 1,202 Continuous…
Telecom - Leverage on lean cost base to benefit from ongoing market recovery Telecom Optical Volumes FKM Optical fiber demand expected to increase by 10.8%a in 2014 driven by Europe and India. Positive signals also from North…
Telecom Sales breakdown Sales breakdown by geographical area Sales breakdown by business segment LTM Q314 LTM Q314 Asia Pacific Other 12% 5% Multimedia & Optical, Specials Connectivity 22% and Fiber Latin America 60% 14%…
2014 Outlook FY Target confirmed despite gradual worsening of market trend in Europe and Brazil FY 2014 Adj.EBITDA Target Vs FY 2013 ( 613 m) Initial expected Adj.EBITDA 600 650 FY Target - 94m Western Link FY 2014 effect…
AGENDA Group Overview & 2014 Outlook Draka integration Financial Results Appendix Company Presentation January 2015 18
Organization model To strengthen leadership in all business segments leveraging on a global platform A matrix linking country and group functions Utilities T&I Industrial Telecom Group Functions Energy Products Energy Projects…
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)…
Synergies Plan: Procurement run-rate, Overheads almost completed Plants rationalization to be executed in line with customers requirements to preserve service level Synergies Plan Euro million Overheads (Fixed costs) 175…
AGENDA Group Overview & 2014 Outlook Draka integration Financial Results Appendix Company Presentation January 2015 22
Profit and Loss Statement Euro Millions 9M 2014 excl. WL Submarine WL submarine 9M 2014 9M 2013 1) FY 2013 1) project effect project effect Sales 5,095 (81) 5,014 5,297 6,995 YoY total growth (3.8%) (5.3%) YoY organic growth…
Bridge Consolidated Sales Euro Millions Total Consolidated 92 ( 81 ) (104) (190) - 5,297 Org. growth excl.WL Org. growth incl.WL 5,014 5,014 +1.7% +0.2% 9M 2013 Org.Growth WL effect Metal Effect Exchange Rate 9M 2014 L-f-L…
Impact of currencies and WL project on Sales and Adj.EBITDA Profitability decrease fully attributable to WL project and negative currency translation effect Sales Adj. EBITDA Euro million Euro million Of which: Of which: Utilities 36…
Extraordinary Effects Euro Millions 9M 2014 9M 2013 2) FY 2013 2) Antitrust investigation 28 3 6 Restructuring (16) (32) (50) Price adjustments 22 - - Other (6) (5) (6) EBITDA adjustments 28 (34) (50) Special items 4 (30) (47)…
Financial Charges Euro Millions 9M 2014 9M 2013 2) FY 2013 2) Net interest expenses (67) (77) (100) of which non cash Conv.Bond interest exp. (6) (4) (6) Bank fees amortization (5) (6) (8) Gain/(loss) on exchange rates (18)…
Statement of financial position (Balance Sheet) Euro Millions 30 Sept 2014 30 Sept 20131) FY 2013 1) Net fixed assets 2,255 2,206 2,207 of which: intangible assets 586 593 588 of which: property, plants & equipment 1,430 1,402…
Cash Flow Euro Millions 9M 2014 9M 2013 1) FY 2013 1) Adj.EBITDA 355 442 613 Non recurring items 28 (34) (50) EBITDA 383 408 563 Net Change in provisions & others (65) (49) (76) Share of income from investments in…
AGENDA Group Overview & 2014 Outlook Draka integration Financial Results Appendix Prysmian at a Glance Company Presentation January 2015 30
Key Milestones 1879 1902 1998 2001 2005 2008 2011 Organic Growth by Restructuring Managing the Growth by Establishment Profitable growth growth acquisition process downturn acquisition Listing Public 1 Cable Company July 28, 05:…
The Worlds Leading Cables & Systems Company N1 in cable solutions for the energy and telecommunication business 7.0 6.0 4.6 bn, 2013 Sales 3.9 3.8 3.4 3.2 2.7 2.6 1.7 1.4 1.2 Prysmian Nexans General Leoni…
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…
Cash Flow generation as key priority to create value for shareholders Growing capabilities to invest organically/acquisitions and remunerate shareholders Cash Flow generation 2012 benefited from approx. 100m cash-in (submarine…
Disciplined Capex to grow in high margin business and out of Europe Investments focused on business with long term drivers and high entry barriers CAPEX 2007-2013 ( mln) Cap. Increase & Product mix Prysmian + Draka 27 million…
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…
AGENDA Group Overview & 2014 Outlook Draka integration Financial Results Appendix Energy Company Presentation January 2015 37
Clusters of Cable Manufacturers in the Industry Competitive scenario Energy Cables Company Presentation January 2015 38
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…
Utilities Overview SALES BREAKDOWN 2013 Submarine High Voltage Turnkey cabling solutions for submarine power transmission systems at depths of up to 2,000 meters 33% 38% Transmission Underground High Voltage Submarine Cabling…
Utilities Investing in submarine to increase ROCE Strengthening production and installation (GME acquisition) capabilities Arco Felice (Italy) Drammen (Norway) Pikkala (Finland) Main projects in execution/orders backlog:…
Sound orders intake boosting backlog at peak level Record visibility in Submarine and good coverage for HV sales Transmission Orders Backlog (m) Transmission Sales (m) Submarine HV 3,000 1,300 2,800 2,850 0.9x 2,450 2,500 500…
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 2013 Cumulated Capacity by Country Cumulated Offshore Wind…
Utilities Major transmission projects to be awarded Main subsea and underground projects of pan-European significance List of main projects Main power flow trends 1. Italy France Main subsea & underground projects in design &…
Utilities Submarine Systems Key success factors Latest Key projects Customers Period m (1) Track record and reliability Philippines NGCP 2015-16 90 Dardanelles 2 TEIAS 2015-16 64 Ability to design/execute turnkey Cyclades IPTO…
Utilities Western Link a milestone in the submarine sector 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 highest…
Western Link: a strong recovery to properly address the production issue and minimize the economic impact Project Highlights WL production process Progress Status Stranding Turntable Awarded in February 2012 to Prysmian- Cable called…
Trade & Installers Overview BUSINESS DESCRIPTION KEY SUCCESS FACTORS Building wires, Low and Medium voltage cables for Global partner with strong local presence residential, commercial, industrial and infrastructure constructions…
Industrial Overview 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…
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…
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…
AGENDA Group Overview & 2014 Outlook Draka integration Financial Results Appendix Telecom Company Presentation January 2015 54
Major Players within the Telecom Industry Competitive scenario Global Market Presence Continental YOFC Local Niche Focused Wide Product Portfolio Range Company Presentation January 2015 55
Telecom Overview 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 todays…
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…
Telecom Cables Main Applications BACKBONE METROPOLITAN RING ACCESS NETWORK Company Presentation January 2015 58
Telecom Solid drivers in optical confirmed after weak 2013 Growing investments expected in Europe, Americas and Asia Optical Cables 22% +17% +21% 51% Prysmian 2015 vs. 2013 Sales* Market Growth Prysmian 2015 vs. 2013…
Telecom Market trend Growth opportunities coming from the development of broadband in Europe Evolution of NGA (Next Generation Access) Opportunities coming from national plans to coverage and high-speed (30Mbps) / ultrafast achieve…
Telecom FTTA as key driver of optical demand 4G and Long Term Evolution (LTE) deployments require Fiber-to-the-Antenna (FTTA) Global LTE Growth Forecast Millions of users Roof top antenna towers for urban applications Antenna…
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…
AGENDA Group Overview & 2014 Outlook Draka integration Financial Results Appendix Financials Company Presentation January 2015 63
P&L Statement Application of IFRS 10-11 Vs previous accounting Euro Millions 9M 2013 9M 2013 FY 2013 FY 2013 FY 2012 FY 2012 Restated 1) Reported Restated 1) Reported Restated 1) Reported Sales 5,297 5,488 6,995 7,273 7,574 7,848…
Stat. of fin. position (BS) Application of IFRS 10-11 Vs previous accounting Euro Millions 30 Sep 13 30 Sep 13 31 Dec 13 31 Dec 13 31 Dec 12 31 Dec 12 Restated 1) Reported Restated 1) Reported Restated 1) Reported Net fixed assets…
Cash Flow Application of IFRS 10-11 Vs previous accounting Euro Millions 9M 2013 9M 2013 FY 2013 FY 2013 FY 2012 FY 2012 Restated 1) Reported Restated 1) Reported Restated 1) Reported Adj.EBITDA 442 444 613 612 650 647 Non…
Energy Segment Profit and Loss Statement Euro Millions 9M 2014 excl. WL Submarine WL submarine 9M 2014 9M 2013 1) FY 2013 1) project effect project effect Sales to Third Parties 4,350 (81) 4,269 4,534 6,009 YoY total growth…
Energy Segment Sales and Profitability by business area Euro Millions, % on Sales Total Organic 9M 2014 9M 2013 1) growth growth Utilities 1,535 1,644 (6.6%) (3.1%) Sales to Third Parties Trade & Installers 1,434 1,470…
Telecom Segment Profit and Loss Statement Euro Millions 9M 2014 9M 2013 1) FY 2013 1) Sales to Third Parties 745 763 986 YoY total growth (2.3%) YoY organic growth 1.9% Adj. EBITDA 75 81 106 % on sales 10.0% 10.6% 10.8% Adj.…
Financial Structure Euro Millions Debt structure (m) 30.09.2014 (m) Available 30.09.14 30.06.14 31.12.13(1) Used Funds (3) Maturity Term Loan 2010(2) - - 183 - - - Revolving 2010(2) - - - - - - Eurobond 5.25% 409 404 414 409 -…
Dividends Dividend per share in line with previous year supported by sound cash generation Dividend approved by the last Shareholders Meeting Dividend Per Share 0.420 Total Shares (1) Total payout: 89 millions 214,591,710…
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) 2,028 287 256 1,894 266 237 1,853 1,790 250 215 237 208…
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 93 795 80 742 84 71 629 628 Industrial 62…
AGENDA Group Overview & 2014 Outlook Draka integration Financial Results Appendix Cable Industry Reference Market Company Presentation January 2015 75
The Global Cables Reference Market World-Wide Cable Reference Market Size, 2013 2013 Global Cables Reference Market Energy Cables Reference Market (89bn) Latin North 112 bn Latin America America America North 4% 13% 4%…
Market Volumes Trend Energy Cables Reference Market Million Tons Long term growth driven by: Conductor 14.2 Energy consumption 13.0 13.6 11.3 11.7 12.0 12.5 10.3 10.7 10.1 10.8 Investments in power grid 9.5 7.8 8.5 9.0…
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