H Financial Results. Milan July 27th 2017

Transcription

1 H Financial Results Milan July 27th 2017

2 Agenda H Highlights Grup verview Results by business Outlk Financial results Appendix H Financial Results 2

3 H Financial Highlights Organic Grwth imprved at -1.5%, (+0.6% in Q2) thanks t better trends in Energy Prjects and Industrial; cnfirmed slid trend in Telecm. Adj. EBITDA at 362m (9.2% f sales), up frm 347m in H1 2016, supprted by: Strng perfrmance in Telecm. Imprved prfitability in Energy Prjects despite negative perimeter effect in China. Delayed recvery in cyclical business and cntinued slwdwn in SURF (Brazil). Net Financial Debt at 1,000m, including apprximately 99m shares Buy-back since January H Financial Results 3

4 H Key Financials Eur Millins, % n Sales Sales Adjusted EBITDA (1) % * % 9.2% 9.2% * Org. Grwth 2016 H1'16 H1'17 Operative Net Wrking Capital (2) 2016 H1'16 H1'17 Net Financial Debt % 8.4% 8.3% Dec-16 Jun-16 Jun-17 Dec-16 Jun-16 Jun-17 (1) Adjusted excluding restructuring, nn-perating incme/expenses and nn-recurring incme/expenses; (2) Defined as NWC excluding derivatives; % n sales is defined as Operative NWC n annualized last quarter sales H Financial Results 4

5 Adj. EBITDA ( millin) / % Org. Grwth Adj. EBITDA Margin Mderate rganic decline with imprved prfitability. Psitive perfrmance in Telecm and Energy Prjects ffset by weakness in E&I and SURF. H1 16 H ,6% 17,0% 13,7% 16,8% 9,2% 9,2% 9,4% 8,3% 5,5% 4,5% 4,2% 1,1% Energy Prjects E&I Industrial & NWC. Oil&Gas Telecm Ttal H1 16 H1 17 ±X.X% = Sales Organic Grwth -1.5% % -3.3% +2.5% -14.8% +7.5% Energy Prjects E&I Industrial & NWC. Oil&Gas Telecm Ttal H Financial Results 5

6 Agenda H Highlights Grup verview Results by business Outlk Financial results Appendix H Financial Results 6

7 Energy Prjects Eur Millins, % n Sales Sales Highlights Submarine Imprving rganic trend recvering after a sft start in Q % * 685 Adj.EBITDA margin imprving als thanks t full utilizatin f the new installatin assets (new vessel Ulisse, new jetting system). Slid market utlk, further supprted by the reductin f the LRE (Levelized Revenue f Electricity) in recent ffshre wind farm awards in Germany H1'16 H1'17 * Org. Grwth Adj. EBITDA / % f Sales 260 Undergrund High Vltage Sales declined rganically driven by weak market demand in France, Middle East and the US. Strng perfrmance in APAC supprted by a slid rder inflw. Adj.EBITDA negatively impacted by perimeter change (China) and sft perfrmance in France, Netherlands and US. Orders Backlg Evlutin ( m) Dec 13 Dec 14 Dec 15 Jun 16 Dec 16 Jun 17* Undergrund HV ~450 ~450 ~600 ~500 ~350 ~ % 14.6% 17.0% 2016 H1'16 H1'17 Submarine ~2,050 ~2,350 ~2,600 ~2,450 ~2,050 ~2,050 Grup ~2,500 ~2,800 ~3,200 ~2,950 ~2,400 ~2,450 * Excludes RTE ffshre wind exprt cable wrth apprx. 300m H Financial Results 7

8 Energy & Infrastructure Eur Millins, % n Sales Sales -3.3% * Trade & Installers Highlights Psitive perfrmance in the Nrdics, Oceania and China was mre than ffset by weakness in Oman, Turkey and Argentina. The recent update in renewable energy regulatin in US negatively affected vlumes. CPR regulatin became mandatry starting frm July 1 st 2017, with ptential psitive implicatins in selected markets expected t materialize in H2. Pwer Distributin * Org. Grwth 2016 H1'16 H1'17 Adj. EBITDA / % f Sales Market slwdwn in Germany and Eastern Eurpe prgressing in line with expectatins. Psitive perfrmance in APAC, the Nrdics and Nrth America. Adj.EBITDA margin declined slightly due the tugh market cnditins in Central and Easter Eurpe and in Oman % 5.5% 4.5% Quarterly Adj.EBITDA evlutin Adj.EBITDA excl. OCI Adj.EBITDA OCI Cntributin OCI Fully Cnslidated 49 OCI Cnslidated with Equity Methd H1'16 H1'17 0 Q3'14 Q4'14 Q1'15 Q2'15 Q3'15 Q4'15 Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 Q2'17 H Financial Results 8

9 Industrial & Netwrk Cmpnents Eur Millins, % n Sales Sales % * 739 Specialties, OEMs & Renewables Highlights Lw single digit rganic grwth thanks t a slid perfrmance in Railway and Infrastructure, nging recvery in Mining and Renewables. Crane, Defense and Marine slwing dwn after the peak f Slid trend in APAC and Nrth America. Eurpe imprving after a sft start f the year. Increasing rder backlg creates a sustainable trend fr the remaining part f the year H1'16 H1'17 * Org. Grwth Adj. EBITDA / % f Sales Elevatr Slight rganic decrease due t prjects delays in China. Psitive vlumes trend in Eurpe. Adj.EBITDA was negatively affected by the vlume drp in China and the unfavurable prduct mix in Nrth America. Autmtive Duble digit rganic increase with strng perfrmance in APAC and Nrth America. Eurpe bradly stable. Prfitability imprvement driven by vlume grwth in Nrth America and APAC and by a leaner manufacturing set-up in Eurpe. Netwrk Cmpnents 9.5% 9,4% 8.3% 2016 H1'16 H1'17 Sft vlumes and margin driven by the slwdwn f HV accessries in Eurpe and China. Psitive perfrmance in MV and LV business in Eurpe and US. H Financial Results 9

10 Oil & Gas Eur Millins, % n Sales 300 Sales % * 138 SURF Highlights Umbilical: weak perfrmance driven by 2016 lw prjects awards in Brazil. Market envirnment remains highly cmpetitive. DHT: Vlume recvery in nshre segment (US Shale) partially ffset by weak demand frm internatinal markets. Prfitability negatively affected by unfavrable prduct mix (n shre vs. ffshre). Cre Cable Oil & Gas Sales imprved rganically thanks t nshre prjects in Middle East, Russia and Nrth America. Offshre remains at very lw level H1'16 H1'17 * Org. Grwth Adj. EBITDA / % f Sales Vlume recvery and efficiency sustaining prfitability while price remain challenging due t vercapacity. Quarterly rganic grwth* evlutin % 4.2% 1.1% 2016 H1'16 H1'17 50% 40% 30% 20% 10% 0% -10% -20% -30% -40% -50% 49,2% 33,4% -3,4% -7,6% -21,7% -24,8% -20,9% -21,2% -33,9% -33,9% Q1'15 Q2'15 Q3'15 Q4'15 Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 Q2'17 * % change vs. same quarter f previus year H Financial Results 10

11 Telecm Eur Millins, % n Sales Sales Highlights Telecm Slutins Duble-digit rganic grwth in ptical cables segment cnfirmed in Q % * 646 Slid market demand in Eurpe and US driven by FTTH/FTTC rll-ut acceleratin. Declining perfrmance in the cpper business due t the challenging cmparisn with H m nging investment 3 year plan aimed at imprving prductin capacity and efficiency wrldwide H1'16 H1'17 * Org. Grwth Adj. EBITDA / % f Sales * Adj. EBITDA margin excl. 8mln bad debt prvisin in Brazil 14.7%* %* % 13,7% 16.8% 2016 H1'16 H1'17 MMS Grwing vlumes and margin in Eurpe and APAC, als supprted by the new manufacturing set-up in Eurpe. Psitive market demand benefitting frm grwing investments in datacentres. 20% 18% 16% 14% 12% 10% 8% Quarterly LTM Adj. EBITDA and % n LTM Sales evlutin 100 LTM Adj.Ebitda % n LTM Sales * Including 8m bad debt prvisin in Brazil H Financial Results 11

12 Agenda H Highlights Grup verview Results by business Outlk Financial results Appendix H Financial Results 12

13 FY 2017 Outlk 2017 Adj.EBITDA Target ( millin) 2017 Adj.EBITDA Target Assumptins ( millin) Mid-pint target assumptins: Cntinued strng perfrmance in Telecm business. 710 Mid-pint 730m 750 Stable results in Energy Prjects after adsrbing negative perimeter effect in Undergrund HV (China). Imprving trend Industrial ffset by sft E&I demand. Still difficult market in Oil&Gas (SURF). Mderately negative frex impact. Adj. EBITDA Outlk Bridge ( millin) > FY 2016 Telecm Energy Prjects* * Including perimeter change in China. E&I Industrial & NWC Oil&Gas Efficiency Frex 2017 Outlk H Financial Results 13

14 Agenda H Highlights Grup verview Results by business Outlk Financial results Appendix H Financial Results 14

15 Prfit and Lss Statement Eur Millins H H Sales YY ttal grwth 4,0% 0,0% YY rganic grwth (1,5%) 0,0% Adj.EBITDA % n sales 9,2% 9,2% Adjustments (31) (25) EBITDA % n sales 8,4% 8,5% Adj.EBIT % n sales 7,0% 6,9% Adjustments (31) (25) Special items (36) (19) EBIT % n sales 5,3% 5,8% Financial charges (49) (37) EBT % n sales 4,0% 4,8% Taxes (45) (56) % n EBT (28,5%) (31,1%) Net Incme % n sales 2,9% 3,3% Minrities - 9 Grup Net Incme % n sales 2,9% 3,0% H Financial Results 15

16 Adjustments and Special Items n EBIT Eur Millins H H Nn-recurring Items (Antitrust Investigatin) (15) - Restructuring (9) (11) Other Nn-perating Incme / (Expenses) (7) (14) EBITDA adjustments (31) (25) Special items (36) (19) Gain/(lss) n metal derivatives (11) 20 Assets impairment - (15) Other (25) (24) EBIT adjustments (67) (44) H Financial Results 16

17 Financial Charges Eur Millins H H Net interest expenses (34) (28) f which nn-cash cnv.bnd interest exp. (8) (4) Bank fees amrtizatin (2) (2) Gain/(lss) n exchange rates 2 7 Gain/(lss) n derivatives 1) (12) (12) Nn recurring effects (1) (1) Other nn-perating financial expenses (2) - Other - (1) Net financial charges (49) (37) 1) Includes currency and interest rate derivatives H Financial Results 17

18 Statement f financial psitin (Balance Sheet) Eur Millins 30 Jun Jun Dec 2016 Net fixed assets f which: gdwill f which: intangible assets f which: prperty, plants & equipment Net wrking capital f which: derivatives assets/(liabilities) 9 (16) 7 f which: Operative Net wrking capital Prvisins & deferred taxes (357) (299) (360) Net Capital Emplyed Emplyee prvisins Sharehlders' equity f which: attributable t minrity interest Net financial debt Ttal Financing and Equity H Financial Results 18

19 Cash Flw Eur Millins H H Mnths (frm 1/7/2016 t 30/6/2017) Adj.EBITDA Adjustments (31) (25) (72) EBITDA Net Change in prvisins & thers 4 (14) 18 Share f incme frm investments in p.activities (19) (14) (36) Cash Flw frm peratins (bef. WC changes) Wrking Capital changes (432) (291) (74) Dividends received Paid Incme Taxes (36) (38) (74) Cash flw frm peratins (149) (33) 499 Acquisitins & Dispsals Net Operative CAPEX (111) (101) (237) f which acquisitins f assets f ShenHuan (35) - (46) Free Cash Flw (unlevered) (260) (134) 293 Financial charges (45) (42) (71) Free Cash Flw (levered) (305) (176) 222 Free Cash Flw (levered) excl. Acquisitins & Dispsals* (270) (176) 237 Dividends (101) (101) (102) Treasury shares buy-back & ther equity mvements (99) - (99) Net Cash Flw (505) (277) 21 Net financial debt beginning f the perid (537) (750) (1.031) Net cash flw (505) (277) 21 Equity cmpnent f cnvertible bnd Other variatins (6) (4) (38) Net financial debt end f the perid (1.000) (1.031) (1.000) * Calculated as FCF (levered) excluding acquisitins f assets f ShenHuan and Acquisitins & Dispsals. H Financial Results 19

20 Agenda H Highlights Grup verview Results by business Outlk Financial results Appendix H Financial Results 20

21 Bridge Cnslidated Sales Eur Millins Energy Prjects E&I Industrial & NWC ( 40 ) 5 ( 5 ) ( 36 ) ( 52 ) 147 ( 4 ) Org.grwth -5.3% Org.grwth -3.3% Org.grwth +2.5% 739 Oil & Gas Telecm Ttal Cnslidated ( 23 ) ( 55 ) ( 24 ) 156 Org.grwth -14.8% Org.grwth +7.5% Org.grwth -1.5% H Financial Results 21

22 Prfit and Lss Statement Eur Millins H H1 2016* Sales YY ttal grwth 4,0% 0,0% YY rganic grwth (1,5%) 0,0% Adj.EBITDA % n sales 9,2% 9,2% f which share f net incme Adjustments (31) (25) EBITDA % n sales 8,4% 8,5% Adj.EBIT % n sales 7,0% 6,9% Adjustments (31) (25) Special items (36) (19) EBIT % n sales 5,3% 5,8% Financial charges (49) (37) EBT % n sales 4,0% 4,8% Taxes (45) (56) % n EBT (28,5%) (31,1%) Net Incme % n sales 2,9% 3,3% Minrities - 9 Grup Net Incme % n sales 2,9% 3,0% * Restated figures H Financial Results 22

23 Energy Prjects Segment Prfit and Lss Statement Eur Millins H H Sales t Third Parties YY ttal grwth (10,0%) 19,3% YY rganic grwth (5,3%) 22,7% Adj. EBITDA % n sales 17,0% 14,6% Adj. EBIT % n sales 14,0% 12,4% H Financial Results 23

24 Adj. EBIT Adj. EBITDA Sales t Third Parties Energy Prducts Segment Prfit and Lss Statement Eur Millins H H E&I YY ttal grwth 5,8% YY rganic grwth (3,3%) Industrial & Netw. Cmp YY ttal grwth 8,5% YY rganic grwth 2,5% Other YY ttal grwth 41,9% YY rganic grwth (0,1%) ENERGY PRODUCTS YY ttal grwth 7,4% YY rganic grwth (1,5%) E&I % n sales 4,5% 5,5% Industrial & Netw. Cmp % n sales 8,3% 9,4% Other (1) - % n sales (1,1%) ENERGY PRODUCTS % n sales 5,5% 6,6% E&I % n sales 2,8% 3,5% Industrial & Netw. Cmp % n sales 6,9% 8,0% Other (1) - % n sales (1,7%) ENERGY PRODUCTS % n sales 3,9% 4,8% H Financial Results 24

25 Oil&Gas Segment Prfit and Lss Statement Eur Millins H H Sales t Third Parties YY ttal grwth (11,7%) YY rganic grwth (14,8%) Adj. EBITDA 2 7 % n sales 1,1% 4,2% Adj. EBIT (7) (1) % n sales (5,1%) (0,8%) H Financial Results 25

26 Telecm Segment Prfit and Lss Statement Eur Millins H H Sales t Third Parties YY ttal grwth 13,4% (1,5%) YY rganic grwth 7,5% 5,8% Adj. EBITDA % n sales 16,8% 13,7% Adj. EBIT % n sales 13,7% 10,3% H Financial Results 26

27 Reference Scenari Cmmdities & Frex Brent Cpper Aluminium 150 Brent $/bbl Brent /bbl Cpper $/tn Cpper /tn Aluminium $/tn Aluminium /tn EUR / USD EUR / GBP EUR / BRL 1,60 1,50 1,40 1,30 1,20 1,10 1, ,95 0,90 0,85 0,80 0,75 0, ,50 4,00 3,50 3,00 2,50 2, Based n mnthly average data Surce: Nasdaq OMX H Financial Results 27

28 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. H Financial Results 28