QUARTERLY OVERVIEW
Group sales and EBITDA eased
in the quarter
4
Prysmian Group Insight
In the first quarter of 2013 Group
Sales amounted to
€
1,711 million,
compared with
€
1,874 million in
the first quarter 2012. The Energy
business suffered from the general
decline in volumes for building wires
and for renewables, only partially
offset by strong performance in
the power transmission market,
particularly by the submarine
cables business line. The Telecom
business recorded a drop in demand
for optical cables in the American
continent because of the ending
of broadband stimulus plans in
North America and the temporary
suspension of similar plans in South
America, which are expected to
recover in the next few quarters.
Adjusted EBITDA amounted to
€
115 million, compared with
€
130
million in the corresponding period
of 2012. The integration with Draka
has enabled the Group to reduce
its cost structure, and so limit the
impact of poor performance by
the Energy business’s lower value-
added segments and by the Telecom
business as a whole. Net financial
charges reported a negative
balance of
€
47 million, compared
to
€
28 million in the corresponding
prior-year period. The increase of
€
19 million is due to a number of
extraordinary non-monetary effects,
mostly connected with the partial
refinancing of the Term Loan by
issuing the convertible equity-linked
bond. Adjusted net profit amounted
to
€
39 million, down from
€
45
million in the first quarter of 2012.
Net financial position at the end of
March 2013 amounted to
€
1,213
million, compared with
€
918 million
at 31 December 2012 (down from
€
1,273 million at 31 March 2012),
having been affected by the positive
cash flow from operating activities
of
€
72 million and the negative
impact of
€
351 million from changes
in working capital, mainly due to the
seasonality of the business.
New upgrade in synergies plan with additional actions to face the continuous downturn
Synergies target increased – Increasing efforts
on production rationalization
Update on Synergies Plan 2011-15 (€ mln)
FY11
Target
FY11
Achieved
FY12
Target
FY12
Achieved
FY13
Target
FY14
Achieved
FY15 Old
Target
FY15 New
Achieved
• Strong
decrease in cyclical
demand require new
actions to limit
overcapacity in Europe
• Selective production
rationalization to
improve ROCE in
cyclical segments
• Additional synergies
mainly generated in
Operations
Overheads (Fixed costs)
46
120
250
650
10
45
100
125-150
150
65
13
6
30
60-70
60-70
30
5
7
175
30-40
40-60
30-40
70-80
Procurement
Operations
Restructuring costs
Demand for building
wires and renewables
still under pressure in
Europe
Positive performance
for submarine cables
and systems
Reduced demand for
optical cables in the
Americas
Profitability expected
to recover in next
quarters
