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Partner of the world's key players

Results at 31 December 2020

Performance by Geographical area: Solid Performance of Energy & INfrastructure in North America driven by Power Distribution and Overhead transmission lines

Sales in the EMEA area amounted to €5,344 million in 2020, with a -8.9% organic change (excluding the Project segment). Adjusted EBITDA was €370 million (compared to €491 million in 2019). Adjusted EBITDA ratio to sales was 6.9% compared to 7.9% in 2019.
This organic growth performance is attributable to the negative performance recorded particularly in Q2 2020 in South Europe, the UK and the Middle East, following the outbreak of the Covid-19 pandemic. The performance of the Projects and Telecom business also contributed to the geographical area’s results.
As of the second half of 2020, there was a gradual improvement in the E&I business, which reached a slightly positive organic growth in Q4.

Sales in this area amounted to €3,084 million, with -6.5% organic change compared to 2019 (excluding the Projects segment). Adjusted EBITDA amounted to €354 million (compared to €352 million in 2019), thus confirming a stable trend. The ratio of Adjusted EBITDA to sales was 11.5% compared to 10.2% in 2019. The Energy & Infrastructure business recorded a solid performance, mainly attributable to Power Distribution (less marked in the second half of 2020) and Overhead Transmission Lines, as well as to the ongoing improvement in the optical fibre cable business. Margins were supported by a favourable business mix and cost-cutting measures.

Sales of the LatAm area totalled €775 million, with a -10.4% organic change (excluding the Projects segment). Adjusted EBITDA was €68 million, slightly declining compared to €102 million in 2019. The ratio of Adjusted EBITDA to sales was 8.8% compared to 10.9% in 2019. The Region was highly impacted by the negative effects of the Covid-19 pandemic in Q2 2020, but it strongly recovered in the second half of the year. Positive organic growth was recorded in Q4, mainly driven by the Trade & Installers, Overhead Transmission Line and Telecom segments.

Sales in the Asia Pacific area amounted to €813 million in 2020, with a -10.1% organic change (excluding the Projects segment). Adjusted EBITDA was €48 million (compared to €62 million in 2019). The ratio of Adjusted EBITDA to sales was 6% compared to 6.5% in 2019. A significant recovery occurred in Q4, thanks to the Energy segment (especially the Trade & Installers, Renewables and Elevators businesses), albeit partially mitigated by the Telecom performance.

Our Business Model

 Prysmian Group promotes a business model based on the concept of shared value through a strategic approach that considers the following elements to be key: listening to and actively involving all internal and external stakeholders, dedicating constant attention to the evolving global and industry context, and planning for the future in a responsible manner that considers the environment and society.
  1. We are a public company and, as such, it is fundamental to align the interests of the Group with those of our stakeholders. We have always maintained open and transparent dialogue with our shareholders, employees, customers and suppliers, the institutions and the communities in which we work. In order to ensure their confidence and support, we strive to maintain high governance standards and practices: for example, 67% of Board members are independent. As a public company, the shareholders’ meetings of the Prysmian Group provide an important opportunity for discussion, involvement and agreement among all shareholders.
 
  1. We strive to align the management objectives of the Group with the sustainability KPIs and, to this end, we have adopted a scorecard that enables us to manage social, economic and environmental matters as a part of our business activities. The Prysmian Group’s scorecard comprises 14 objectives with a business impact. These are clear and measurable objectives identified with reference to 3 parameters: the 17 Sustainable Development Goals for 2030 (SDGs) defined by the United Nations, requests from major International Sustainability Indexes and the needs and expectations of our stakeholders, which are mapped each year via the Group’s stakeholder engagement initiatives.
 
  1. The incentive scheme for all managers within the Prysmian Group is linked to the achievement of objectives for the improvement of our ESG parameters. The 2020 Remuneration Policy adopted by the Group includes a system of variable remuneration based partly on performance on sustainability matters and, in particular, on the positioning of the Group in the three main sustainability indexes - Dow Jones Sustainability Index, CDP Index, EcoVadis Index - and partly on the progress made on implementing the action plans for three matters of importance to the business: the level of gender diversity in management, the reduction of CO2 emissions and occupational health and safety.

Acceleration on Climate Change. "Zero Emission" Prysmian by 2040 (Scope 1 and 2)

Prysmian Group confirms its ambition to be one of the leading technology players in the transition to the use of renewable energy sources and to a decarbonised economy. 48% of the Group’s sales are attributable to business segments and products that contribute to a low-carbon economy . With the goal of supporting the expected acceleration of the development of new submarine and underground power interconnections (chiefly links and interconnections of offshore wind farms), the Group has planned investments in the range of €450 million by 2022 (over 50% of total investments), which are also intended to further improve the sustainability of its organisation and supply chain.

Prysmian Group has also announced a new ambitious climate strategy adopting science-based targets, in line with the requirements of the Paris Agreement, and endorsing the Business Ambition (1.5°C) with the “net zero” target expected to be achieved between 2035 and 2040 with regard to the emissions generated by its operations (Scope 1 and 2) and by 2050 for emissions generated by the value chain (Scope 3). Among the most important initiatives in this area is the Group’s Pikkala plant, chiefly dedicated to the production of cables for offshore wind farms, which will become the first net zero plant, where 100% of the energy used will be obtained from certified renewable sources.

Acceleration on Climate Change.

Stakeholders value creation

Prysmian Group’s strategy is founded on the sustainability principles on which the Group’s ESG identity is based. These principles are applied at each phase of Prysmian’s value chain and are managed through the ESG governance model. Within the Group, value creation is boosted by the significant inputs generated by Prysmian’s approach in reference to three pillars of the corporate identity: People, Culture & Organisation, Sustainable Innovation & Lean Manufacturing and Extended Value Chain. These inputs feed the Group’s value chain and allow Prysmian to create outputs that have the potential to generate an impact outside the organisation, helping to achieve specific Sustainable Development Goals. The Group’s value creation cannot overlook the external drivers that impact on Prysmian’s business and outputs, such as energy transition, digitalisation, scarcity of resources and social issues.

PEOPLE. CULTURE & ORGANIZATION SUSTAINABLE INNOVATION & LEAN MANUFACTURING EXTENDED VALUE CHAIN
+29% investments in health and safety
Sustainability at the heart of our innovation strategy
On Time Delivery at above 94%
Safety in work environments: ongoing tests; distribution of healthcare materials and PPEs
Innovative P-Laser 525 kV HVDC cable
Re-design of procurement flows
Promotion of remote working and its extension to all employees
FlexRibbonTM cable, ultracompact outside plant cable design that contains bend insensitive fibres
Emergency management of the logistics
Diversity in terms of gender and age and focus on culture
Alesea, smart virtual assistant for cable drums
Continuity of the supply chain
Citizenship and social responsibility
PG Connect, digital and sustainable solution based on the “Augmented Reality technology”
Constant dialogue with customers
Digitalisation of the Academy’s activities
Kablee, digital platform to provide sustainable services, as connectivity in rural areas
German Corridors, installation project of 2,300 km of high voltage undergrounds electrical cables, from the North Sea to the south of the Germany
Remuneration policy aligned with ESG objectives
Submarine interconnection project between Crete and the Peloponnese region

Broadening horizons for Energy Projects

We’re breaking boundaries in cable projects delivery. Our execution capabilities, production capacity and equipment investments mean we’re second to none. We provide state-of-the-art solutions for High Voltage Underground and Submarine cable links in some of the world’s most challenging environments.

Whether it’s turnkey services for the construction of submarine power links for large offshore wind farm hubs in Germany, or installing submarine cables up to 2,000 metres depth using Giulio Verne, one of the largest and most technologically advanced cable-laying ships in the world, we’re pushing possibility forward in all areas, across the world.

Broadening horizons for Energy Projects

Market share & Competitors

The first seven months of 2021 saw a strong recovery in the global economy, after a 2020 heavily penalised by the Covid-19 pandemic with unprecedented negative effects on the global macroeconomic framework. This recovery was also sustained by national plans supporting the development of infrastructure and digitalisation projects. According to the most recent estimates by the International Monetary Fund, the global economy is expected to grow by 6.0% in 2021 after contracting by 3.2% in 2020. At the geographical level, the United States — with estimated growth of 7.0% — are expected to return to the levels of activity seen at the end of 2019 as early as this year, whereas in the Eurozone and the United Kingdom this recovery is expected to occur in the following year. The Chinese economy — the only major economy to close 2020 on a positive note (+2.3%) — is expected to pick up pace, with estimated growth of 8.1% in 2021. In 2020, the extraordinary impacts of the Covid-19 pandemic also affected Prysmian Group’s results, above all in businesses relating to the construction sector (Trade & Installers) and characterised by significant installation activities. The gradual recovery of business, accompanied by timely cost management, an extremely flexible supply chain and a highly-focused level of customer service, enabled management to protect the Group’s performance and limit the impact of the pandemic on the Group’s margins. These positive trends were consolidated in H1 2021, with the Energy business reaching pre-pandemic levels and recording improved margins (excluding the effect arising from the price increase of metals), and with Telecom volumes up considerably at the global level, although there remains a high level of uncertainty, heightened by the effects of the pandemic on the availability and prices of raw materials. In light of the H1 2021 results, and considering the current business context, Prysmian Group expects demand in the construction and industrial cable businesses to sharply recover in 2021, compared to the previous year. In the Submarine Cables and Systems business, the Group, as demonstrated by its strong order intake in H1, is committed to confirming its leadership in a market expected to grow, thanks to the development of the offshore wind farms and interconnections necessary to the development of renewable energy in support of the energy transition. For this segment, the Group expects results to grow compared to last year, with the second half of the year clearly improving compared to H1, thanks both to greater use of capacity in the submarine cable business and the start of the execution phase of the German Corridors projects. In the Telecom segment, the Group expects volumes to increase in the optical business and price pressure to continue, particularly in Europe. Prysmian Group continues to pursue long-term growth drivers mainly relating to the energy transition to renewable sources, the upgrade of telecommunications networks (digitalisation) and the electrification process. The Group may also rely on broad diversification by business and geographical area, a solid financial structure, an efficient, flexible supply chain and a lean organisation — all factors enabling the Group to face the emergency with confidence. In light of the above considerations and in addition to the Group’s solid performance in the first half of the year, the Group revised its guidance for the FY upwards compared to that announced in March. Adjusted EBITDA for FY 2021 is expected in the range of €920-970 million, up from the €870-940 million range previously announced. The cash generation target has remained unchanged, as according to which the Group expects to generate cash flows of approximately €300 million ± 20% (FCF before acquisitions and disposals) in 2021. These projections are based on the absence of significant changes in the evolution of the health emergency and of possible further discontinuities and slowdowns in the global economic activities. In addition, these forecasts are based on the Company’s current business scope and do not include antitrust-related impacts on cash flow. In 2021 as well, the translation effect resulting from the conversion of the subsidiaries’ results into the reporting currency used in the consolidated accounts is expected to generate a negative impact on the Group’s operating income for approximately €20-25 million. The (expected) cumulative amount of the negative impact of exchange rates in the two-year period 2020-2021 is estimated at around €55 million.

Projects Financial Results

(EURO MILLION) 2016 2017 2018 2019 2020
SALES
1,634
1,490
1,751
1,844
1,438
ADJ. EBITDA
260
266
101
228
186

Diverse and innovative Energy Products

We offer one of the most complete and extensive product ranges in the world. And we’re always evolving to meet the needs of our customers, enhancing operations and boosting profitable growth. Delivered by our Energy & Infrastructure businesses (including Power Distribution and Trade & Installers), and Industrial & Network Components businesses (including Specialties & OEM, Elevators, Automotive and Network Components), we’re positioned to drive constant progress in the provision of power around the world.

Diverse and innovative Energy Products

Energy Financial Results

(EURO MILLION) 2016 2017 2018 2019 2020
SALES
4,469
4,880
8,139
8,027
7,207
ADJ. EBITDA
280
244
372
505
440

Pioneering solutions for Telecom

We’re one of the world’s largest producers of telecoms cables, delivering optical fibre, optical and copper cabling solutions. We’re at the heart of many of the planet’s leading telecoms operators.

Advances in technological solutions and innovation for broadband, alongside the continuing successes of our three business units –Telecom Solutions, Optical Fibre and Multimedia – are creating opportunities for new growth, connections and enhancements to living and working everywhere.

Telecom Financial Results

(EURO MILLION) 2016 2017 2018 2019 2020
SALES
1,164
1,258
1,634
1,648
1,371
ADJ. EBITDA
163
214
295
274
214

2020 Sales by Business Area

2020 Sales by Business Area

2020 Sales by Geographical Area

2020 Sales by Geographical Area

Competitors

Nexans, Southwire, Sumitomo Electronic, CommScope, Jangsu Shanshang, LS Cable, Furukawa, Leoni, NKT Cables