9M 2016 Financial Results. Milan November 8th, 2016

Transcription

1 9M 2016 Financial Results Milan Nvember 8th, 2016

2 Agenda 9M 2016 Highlights Grup verview Results by business Outlk Financial results Appendix 9M 2016 Financial Results 2

3 9M 2016 Highlights Adj. EBITDA at 527m (9.3% n Sales), with margin expansin in all businesses, except O&G. Cntinued fcus n cst efficiency with relevant prgress in manufacturing ftprint ptimizatin. +1.8% Organic Grwth, driven by slid trends in the Telecm business and sund executin in Energy Prjects, in line with H1. Net Financial Psitin at 1,017m ( 822m excl. OCI and GCDT acquisitin impact). Q LTM Free cash flw befre acquisitins at 302m. 9M 2016 Financial Results 3

4 9M 2016 Key Financials Eur Millins, % n Sales Sales Adjusted EBITDA (1) ** OCI Cntributin 9M 16 vs. 9M 15 * Excl. 24m WL previus lss write-up 7, % * 623 ** OCI Cntributin 9M 16 vs. 9M 15 5,569 5, ** * ** 8.5% 8.5% 9.3% M '15 9M ' M '15 9M '16 * Org. Grwth Operative Net Wrking Capital (2) Net Financial Psitin * Excl. OCI and GCDT cnslidatin * Excl. OCI and GCDT Acquisitin Impact * , * 529* 150* 2.1%* 8.3% 7.0%* Dec-15 Sep-15 Sep-16 Dec-15 Sep-15 Sep-16 (1) Adjusted excluding nn-recurring incme/expenses, restructuring csts and ther nn-perating incme (expenses); (2) Defined as NWC excluding derivatives; % n sales is defined as Operative NWC n annualized last quarter sales; 9M 2016 Financial Results 4

5 Adj. EBITDA ( millin) / % Org. Grwth Adj. EBITDA Margin Cntinued prfitability imprvement Underlying margin increase in all business excluding Oil&Gas 9M 15 9M 16 * Excl. 24m WL prvisin write-up ** Excl. 8m bad debt prvisin 15.4% 14.6% 15.8%** ~13%* 4.5% 5.4% 8.1% 9.3% 6.2% 4.1% 12.6% 14.9% 8.5% 8.1%* 9.3% Energy Prjects E&I Industrial & NWC. Oil&Gas Telecm Ttal 9M 15 9M 16 * Excl. 24m WL prvisin write-up ** OCI Cntributin 9M 16 vs. 9M 15 X.X% = Organic Grwth +1.8% +20.9% -1.9% -2.5% -31.6% +8.4% ** 449* * ** Energy Prjects E&I Industrial & NWC. Oil&Gas Telecm Ttal 9M 2016 Financial Results 5

6 Prductin capacity ratinalizatin in prgress. 15 plants clsed t date since Draka acquisitin, 2 clsure nging: imprve saturatin in Eurpe 15 Plants Clsed Since Draka Acquisitin: At 31 Dec 2010 (pr-frma): 98 Plants Tday: 85 Plants (including OCI s 2 plants) Hickry (US) St.Petersburg (RUS) Delfzijl (NED) Amsterdam (NED) Derby (UK) Angy (FRA) Aubevye (FRA) Neuf Pré (FRA) Sant Vicenç (SPA) Cavigel (SPA) Livrn Ferraris (ITA) Brndby (DK) Eschweiler (GER) Ascli (ITA) Angel (CHI) Singapre Plant Clsed Up t Date. Onging clsure Quilmes (ARG) 85 Plants at 30/09/2016 (83 excluding Oman Cable Industry) 9M 2016 Financial Results 6

7 Agenda 9M 2016 Highlights Grup verview Results by business Outlk Financial results Appendix 9M 2016 Financial Results 7

8 Energy Prjects Eur Millins, % n Sales Sales Highlights 1, % * Submarine 993 1,172 Strng revenue grwth driven by slid executin and favurable prject phasing in the first 9M. Recent investments in executin capabilities and installatin assets start paying-ff, as shwn by the sharp increase in underlying Adj.EBITDA margin vs. last year (excl. 24m WL previus lss write-up). Expected pick-up f ffshre wind farm prjects activity in Eurpe. Stable utlk in Intercnnectin market. Market fundamentals remain slid M '15 9M '16 * Org. Grwth Adj. EBITDA / % f Sales 221 * WL previus lss write-up. ** estimated adj. EBITDA margin excl. WL write-up. Undergrund High Vltage Sund perfrmance mainly driven by executin f France-Italy HVDC prject and psitive results in Nrth America and APAC. Psitive market utlk in the Middle-East, APAC and Central Eurpe in the medium-term * 172 Orders Backlg Evlutin ( m) Dec 13 Dec 14 Dec 15 Jun 16 Sep 16 Undergrund HV ~450 ~450 ~600 ~500 ~ % ~13%** 14.6% M '15 9M '16 Submarine ~2,050 ~2,350 ~2,600 ~2,450 ~2,200 Grup ~2,500 ~2,800 ~3,200 ~2,950 ~2,600 9M 2016 Financial Results 8

9 Energy & Infrastructure Eur Millins, % n Sales Sales ** OCI Cntributin 9M 16 vs. 9M 15 2, % * 2,300 2, ** Trade & Installers Highlights Negative rganic trend with an imprving Adj. EBITDA margin thanks t OCI cnslidatin, better mix and ftprint ptimizatin. Organic decline in Suth America, APAC and Central & Suthern Eurpe partially ffset by psitive Nrdics. Pwer Distributin M '15 9M '16 * Org. Grwth Adj. EBITDA / % f Sales * +0.4% OCI Cntrib. 9M 16 vs. 9M 15 n margin ** OCI Cntributin 9M 16 vs. 9M % 4.5% 5.4%* M '15 9M '16 28** Psitive trend, sftening in Q3 in line with expectatins, with a general imprvement in prfitability in the first 9M. Grwth in the Nrdics, Netherlands and APAC, ffset by the expected slwdwn in Germany. 7.5% 7.0% 6.5% 6.0% 5.5% 5.0% 4.5% 4.0% 3.5% 3.0% 123 LTM Adj. EBITDA Evlutin / % n LTM Sales LTM Adj.EBITDA OCI Cntributin LTM Q3 16 vs. LTM Q3 15 % n LTM Sales Q1'14 Q2'14 Q3'14 Q4'14 Q1'15 Q2'15 Q3'15 Q4'15 Q1'16 Q2'16 Q3' M 2016 Financial Results 9

10 Industrial & Netwrk Cmpnents Eur Millins, % n Sales Sales Highlights 1, % * Specialties & OEMs 1,137 1,021 Negative rganic sales in the first 9M driven by sft start in Renewables (mainly in China) and market slwdwn in Nuclear, Crane and Mining, partially ffset by slid perfrmance in Defense and Marine applicatins. Suth America underperfrmance cntinue as plitical electin in Argentina and macr slwdwn in Brazil impact the business. Elevatr M '15 9M '16 * Org. Grwth Adj. EBITDA / % f Sales Psitive perfrmance driven by the market share expansin in new prduct segments and services in Nrth America. Sftening trend in APAC in Q Autmtive Recvery in vlumes and prfitability thanks t psitive market trend in APAC and manufacturing set-up in Central-Eastern Eurpe. Netwrk Cmpnents 8.1% 8.1% 9.3% Grwth in HV and EHV accessries sales partially ffset by sft market cnditins f MV business in Eurpe M '15 9M '16 9M 2016 Financial Results 10

11 Oil & Gas Eur Millins, % n Sales Sales Highlights % * SURF Umbilical: Vlumes and prfitability evlutin in line with expectatins, reflecting the updated (new cntractual terms) framewrk agreement in Brazil. 225 DHT: Results in line with 9M 2015 benefitting frm the full impact f GCDT. Cntinue pressure cming frm custmers inventry reductin. Cre Oil&Gas Cables M '15 9M '16 * Org. Grwth Adj. EBITDA / % f Sales Decline in vlumes and prices reflects negative prjects phasing in Onshre and Offshre segment. Market envirnment remains challenging. Fcus n restructuring and ftprint ptimizatin, cntinue t leverage n Asian supply chain. Quarterly rganic grwth* evlutin % 6.2% 4.1% M '15 9M '16 50% 40% 30% 20% 10% 0% -10% -20% -30% -40% -50% 49.2% 33.4% -3.4% -21.7% -24.8% -33.9% -33.9% Q1'15 Q2'15 Q3'15 Q4'15 Q1'16 Q2'16 Q3'16 9M 2016 Financial Results 11

12 Telecm Eur Millins, % n Sales Sales Highlights 1,109 Telecm Slutins +8.4% * Grwth in ptical cables and fiber businesses, with a cntinued slid trend in Australia, US and France. Sharp margin expansin (als cnsidering the 8mln bad-debt prvisin) fuelled by fiber manufacturing efficiency imprvement and ftprint ptimizatin. Excellent perfrmance in cpper telecm cables driven by slid market demand in APAC M '15 9M '16 * Org. Grwth Adj. EBITDA / % f Sales 134 * Adj. EBITDA margin excl. bad debt prvisin in Brazil 15.8%* % 12.6% 14.9% M '15 9M '16 MMS 16% 15% 14% 13% 12% 11% 10% 9% Prfitable grwth in Eurpe supprted by prductin capacity extensin in cpper business and ftprint ptimizatin. Quarterly LTM Adj. EBITDA and % n Sales evlutin LTM Adj.Ebitda % n LTM Sales m bad debt prvisin M 2016 Financial Results 12

13 Agenda 9M 2016 Highlights Grup verview Results by business Outlk Financial results Appendix 9M 2016 Financial Results 13

14 FY 2016 Outlk Margin imprvement mainly driven by Energy Prjects and Telecm. Negative FX Adj.EBITDA Target ( millin)* 2016 Adj.EBITDA Target Assumptins ( millin) Abve mid-pint target assumptins: 670 Mid-pint 695m 720 Slid executin in Energy Prjects Strng market trend in Telecm Energy Prducts businesses bradly stable. Negative trend in Oil&Gas. * Includes management expectatins n OCI incremental cntributin t FY 2016 adjusted EBITDA. Assuming current cnslidatin perimeter f Prysmian Grup. Adverse Frex impact. Adj. EBITDA Bridge ( millin) > > FY 2015 Energy Prjects E&I Industrial & NWC Oil&Gas Telecm New Perimeter Frex Efficiency FY 2016E 9M 2016 Financial Results 14

15 Agenda 9M 2016 Highlights Grup verview Results by business Outlk Financial results Appendix 9M 2016 Financial Results 15

16 Prfit and Lss Statement Eur Millins 9M M 2015 OCI cntrib. 9M 16 vs. 9M 15 Sales 5,660 5, YY ttal grwth 1.6% 0.0% YY rganic grwth 1.8% 0.0% Adj.EBITDA % n sales 9.3% 8.5% Adjustments (39) (28) (5) EBITDA % n sales 8.6% 8.0% Adj.EBIT % n sales 7.0% 6.5% Adjustments (39) (28) (5) Special items (26) (52) - EBIT % n sales 5.9% 5.1% Financial charges (58) (77) (1) EBT % n sales 4.9% 3.7% Taxes (77) (68) (1) % n EBT (28.0%) (32.9%) Net Incme % n sales 3.5% 2.5% Minrities 10 (2) 6 Grup Net Incme (5) % n sales 3.3% 2.5% 9M 2016 Financial Results 16

17 Adjustments and Special Items n EBIT Eur Millins 9M M 2015 Nn-recurring Items (Antitrust Investigatin) - 21 Restructuring (27) (32) Other Nn-perating Incme / (Expenses) (12) (17) EBITDA adjustments (39) (28) Special items (26) (52) Gain/(lss) n metal derivatives 24 (29) Assets impairment (15) (7) Other (35) (16) EBIT adjustments (65) (80) 9M 2016 Financial Results 17

18 Financial Charges Eur Millins 9M M 2015 Net interest expenses (44) (59) f which nn-cash cnv.bnd interest exp. (6) (6) Bank fees amrtizatin (2) (3) Gain/(lss) n exchange rates - (30) Gain/(lss) n derivatives 1) (11) 19 Nn recurring effects (2) (3) Other 1 (1) Net financial charges (58) (77) 9M 2016 Financial Results 18

19 Statement f financial psitin (Balance Sheet) Eur Millins 30 Sep 2016 New Perimeter Acquired 30 Sep Dec 2015* Net fixed assets 2, ,224 2,581 f which: gdwill f which: intangible assets f which: prperty, plants & equipment 1, ,418 1,552 Net wrking capital f which: derivatives assets/(liabilities) (8) 1 (36) (41) f which: Operative Net wrking capital Prvisins & deferred taxes (303) (41) (279) (330) Net Capital Emplyed 2, ,516 2,598 Emplyee prvisins Sharehlders' equity 1,558-1,204 1,507 f which: attributable t minrity interest Net financial psitin 1, Ttal Financing and Equity 2, ,516 2,598 9M 2016 Financial Results 19

20 Cash Flw Eur Millins 9M M 2015 Adj.EBITDA Adjustments (39) (28) EBITDA Net Change in prvisins & thers (12) (41) Share f incme frm investments in p.activities (24) (27) Cash Flw frm peratins (bef. WC changes) Wrking Capital changes (342) (198) Dividends received 7 15 Paid Incme Taxes (53) (39) Cash flw frm peratins Acquisitins - - Net Operative CAPEX (152) (117) Free Cash Flw (unlevered) (88) 38 Financial charges (57) (88) Free Cash Flw (levered) (145) (50) Free Cash Flw (levered) excl. acquisitins (145) (50) Dividends (101) (91) Treasury shares buy-back & ther equity mvements - 3 Net Cash Flw (246) (138) LTM Q Free Cash Flw (levered) excl. acquisitins 302 NFP beginning f the perid (750) (802) Net cash flw (246) (138) Other variatins (21) (15) NFP end f the perid (1,017) (955) 9M 2016 Financial Results 20

21 Agenda 9M 2016 Highlights Grup verview Results by business Outlk Financial results Appendix 9M 2016 Financial Results 21

22 Bridge Cnslidated Sales Eur Millins Energy Prjects E&I Industrial & NWC 207 ( 8 ) ( 20 ) ( 42 ) ( 150 ) ( 86 ) 403 ( 28 ) ( 62 ) ( 26 ) 993 Org.grwth +20.9% 1,172 2,175 Org.grwth -1.9% 2,300 1,897 1,137 Org.grwth -2.5% 1,021 Oil & Gas Telecm Ttal Cnslidated ( 104 ) 71 ( 15 ) ( 33 ) ( 5 ) 101 ( 245 ) ( 180 ) ( 7 ) ( 12 ) 17 Org.grwth -31.6% Org.grwth % ,569 Org.grwth +1.8% 5,245 5,660 9M 2016 Financial Results 22

23 Prfit and Lss Statement Eur Millins 9M M 2015 OCI cntrib. 9M 16 vs. 9M 15 Full OCI 9M 16 Results Sales 5,660 5, YY ttal grwth 1.6% 0.0% 0.0% YY rganic grwth 1.8% 0.0% 0.0% Adj.EBITDA % n sales 9.3% 8.5% 0.0% 9.7% f which share f net incme Adjustments (39) (28) (5) (5) EBITDA % n sales 8.6% 8.0% 0.0% 8.4% Adj.EBIT % n sales 7.0% 6.5% 0.0% 4.8% Adjustments (39) (28) (5) (5) Special items (26) (52) - - EBIT % n sales 5.9% 5.1% 0.0% 3.5% Financial charges (58) (77) (1) (1) EBT % n sales 4.9% 3.7% 0.0% 3.2% Taxes (77) (68) (1) (1) % n EBT (28.0%) (32.9%) 0.0% (10.8%) Net Incme % n sales 3.5% 2.5% 0.0% 3.0% Minrities 10 (2) 6 6 Grup Net Incme (5) 6 % n sales 3.3% 2.5% 0.0% 1.5% 9M 2016 Financial Results 23

24 Energy Prjects Segment Prfit and Lss Statement Eur Millins 9M M 2015 Sales t Third Parties 1, YY ttal grwth 18.0% 0.0% YY rganic grwth 20.9% 0.0% Adj. EBITDA % n sales 14.6% 15.4% Adj. EBIT % n sales 12.4% 13.1% 9M 2016 Financial Results 24

25 Adj. EBIT Adj. EBITDA Sales t Third Parties Energy Prducts Segment Prfit and Lss Statement Eur Millins 9M M 2015 OCI Cntributin 9M 16 vs. 9M 15 E&I 2,300 2, YY ttal grwth 5.8% 0.0% 0.0% YY rganic grwth (1.9%) 0.0% 0.0% Industrial & Netw. Cmp. 1,021 1,137 - YY ttal grwth (10.2%) 0.0% 0.0% YY rganic grwth (2.5%) 0.0% 0.0% Other YY ttal grwth (11.0%) 0.0% 0.0% YY rganic grwth (3.9%) 0.0% 0.0% ENERGY PRODUCTS 3,398 3, YY ttal grwth (0.0%) 0.0% 0.0% YY rganic grwth (2.1%) 0.0% 0.0% E&I % n sales 5.4% 4.5% 0.0% Industrial & Netw. Cmp % n sales 9.3% 8.1% 0.0% Other (1) 2 - % n sales (0.8%) 1.8% 0.0% ENERGY PRODUCTS % n sales 6.4% 5.7% 0.0% E&I % n sales 3.3% 3.3% 0.0% Industrial & Netw. Cmp % n sales 7.9% 6.6% 0.0% Other (2) 1 - % n sales (2.2%) 0.6% 0.0% ENERGY PRODUCTS % n sales 4.6% 4.4% 0.0% 9M 2016 Financial Results 25

26 Oil&Gas Segment Prfit and Lss Statement Eur Millins 9M M 2015 Sales t Third Parties YY ttal grwth (31.8%) 0.0% YY rganic grwth (31.6%) 0.0% Adj. EBITDA 9 21 % n sales 4.1% 6.2% Adj. EBIT (2) 12 % n sales (1.0%) 3.7% 9M 2016 Financial Results 26

27 Telecm Segment Prfit and Lss Statement Eur Millins 9M M 2015 Sales t Third Parties YY ttal grwth 2.2% YY rganic grwth 8.4% Adj. EBITDA % n sales 14.9% 12.6% Adj. EBIT % n sales 11.4% 8.6% 9M 2016 Financial Results 27

28 Reference Scenari Cmmdities & Frex Brent Cpper Aluminium 150 Brent $/bbl Brent /bbl 12,000 Cpper $/tn Cpper /tn 3,500 Aluminium $/tn Aluminium /tn ,000 3, ,000 6,000 2,500 2,000 1, ,000 1, J-08 J-09 J-10 J-11 J-12 J-13 J-14 J-15 J-16 2,000 J-08 J-09 J-10 J-11 J-12 J-13 J-14 J-15 J J-08 J-09 J-10 J-11 J-12 J-13 J-14 J-15 J-16 EUR / USD EUR / GBP EUR / BRL J-08 J-09 J-10 J-11 J-12 J-13 J-14 J-15 J J-08 J-09 J-10 J-11 J-12 J-13 J-14 J-15 J J-08 J-09 J-10 J-11 J-12 J-13 J-14 J-15 J-16 Based n mnthly average data Surce: Nasdaq OMX 9M 2016 Financial Results 28

29 Disclaimer The managers respnsible fr preparing the cmpany's financial reprts, A.Btt and C.Spran, declare, pursuant t paragraph 2 f Article 154-bis f the Cnslidated Financial Act, that the accunting infrmatin cntained in this presentatin crrespnds t the results dcumented in the bks, accunting and ther recrds f the cmpany. Certain infrmatin included in this dcument is frward lking and is subject t imprtant risks and uncertainties that culd cause actual results t differ materially. The Cmpany's businesses include its Energy Prjects, Energy Prducts and Telecm Operating Segments, and its utlk is predminantly based n its interpretatin f what it cnsiders t be the key ecnmic factrs affecting these businesses. Any estimates r frward-lking statements cntained in this dcument are referred t the current date and, therefre, any f the assumptins underlying this dcument r any f the circumstances r data mentined in this dcument may change. Prysmian S.p.A. expressly disclaims and des nt assume any liability in cnnectin with any inaccuracies in any f these estimates r frward-lking statements r in cnnectin with any use by any third party f such estimates r frward-lking statements. This dcument des nt represent investment advice r a recmmendatin fr the purchase r sale f financial prducts and/r f any kind f financial services. Finally, this dcument des nt represent an investment slicitatin in Italy, pursuant t Sectin 1, letter (t) f Legislative Decree n. 58 f February 24, 1998, r in any ther cuntry r state. In additin t the standard financial reprting frmats and indicatrs required under IFRS, this dcument cntains a number f reclassified tables and alternative perfrmance indicatrs. The purpse is t help users better evaluate the Grup's ecnmic and financial perfrmance. Hwever, these tables and indicatrs shuld nt be treated as a substitute fr the standard nes required by IFRS. 9M 2016 Financial Results 29