QUARTERLY OVERVIEW
6
Prysmian Group Insight
Stabilisation seen continuing in 2014
FY profitability expected in line with previous year excluding
Western Link and forex effects
Growing orders intake boosting backlog at peak level (€3 bn)
Record visibility in Submarine and good coverage for HV sales
2014 Outlook – Confirming profitability increase Vs 2013 excl. Forex
and WL despite still tough demand and pricing
FY 2014 Adj. EBITDA Target Vs FY 2013 (€613 million)
The macroeconomic environment
in the first part of 2014 continued
showing signs of stabilisation.
In such a context, the Group is
forecasting for 2014 that demand for
medium voltage cables for utilities
will follow the current slowing
trend and that building wires will
make a gradual recovery over
the course of coming quarters. It
also confirms the positive trend in
demand in the high value-added
businesses of power transmission
and offshore Oil & Gas, as well as
the steady recovery of demand for
optical fibre cables from the record
lows reported in 2013. Based on
the order book and considering the
negative impact of the technical
problems with the manufacture of
cables for the Western Link project,
as well as negative exchange rate
effects, the Group is forecasting
Adjusted EBITDA for FY 2014 in the
range of
€
506-556 million (
€
600-
650 million excluding the negative
impact of the Western Link project
estimated at
€
94 million for FY
2014) compared with
€
613 million
in 2013. The Group will work during
2014 to integrate and rationalise
activities with the goal of achieving
the projected cost synergies and of
further strengthening its presence in
all its areas of business.
Dec’ 09 Jun’ 10 Dec’ 10 Jun’ 11 Dec’ 11 Jun’ 12 Dec’ 12 Jun’ 13 Dec’ 13 Jun’ 14
LTM H1’14
~650 ~800 ~900 ~1,000 ~1,050
~1,700
~1,900
~2,050
~2,500
~2,300
~250
~300
~650 ~650 ~650
~650
~550
~450
~500
~500
~750
~900
~1,100
~1,550 ~1,650 ~1,700
~2,350 ~2,450
~2,500
~3,000
~1,250
~2,800
Transmission - Orders Backlog (Euro million)
Transmission - Sales (Euro million)
1.0x
3.3x
~500
HV
Submarine
Initial expected
Adj.EBITDA FY Target
Current Adj. EBITDA
FY Target
Western Link FY 2014 effect
– €94 million
600
506
650
556
