Slides
Page 1
March 26th, 2025New York City CAPITAL MARKETS DAY 2025
Page 2
Agenda HIGHLIGHTS ACCELERATING GROWTH CLOSING REMARKS ACCELERATING VALUE CREATION Massimo Battaini Massimo Battaini Srini Siripurapu Maria Cristina Bifulco Pierfrancesco Facchini Massimo Battaini
Page 3
HIGHLIGHTS
Page 4
2027 EBITDA Target €2bn 1
Page 5
€2.1bn 2024 EBITDA 2
Page 6
New Prysmian. New leadership style.
Page 7
CONSISTENTLY DELIVERING SUPERIOR PERFORMANCE
Page 8
ACCELERATING GROWTH
Page 9
20221 9.3% 20242 11.6% 20271 (2023 CMD Target) 10.4% 0.5 1.0 1.5 2.0 2.5 Margin 2007 10.3% CAGR 7% CAGR 20% Draka | General Cable CAGR 6% Encore Wire 1.5 2.1 2.00.5Adjusted EBITDA (€bn) Old Target: 2022-2027
Page 10
PROFITABILITY ENHANCEMENT AGILITY IN M&A ACTIVITIES STRONG MARKET DEMAND
Page 11
LIKE NO ONE ELSE IN THE INDUSTRY
Page 12
Competitor 1 Competitor 2 Competitor 3 Competitor 4 EBITDA 3 1.0 €bn 1.5 €bn 2.0 €bn0.5 €bn0 €bn Prysmian 2024 2007
Page 13
Competitor 1 Competitor 2 Competitor 3 Competitor 4 Prysmian2 2024 2007 3x the first competitor EBITDA 3 1.0 €bn 1.5 €bn 2.0 €bn0.5 €bn0 €bn
Page 14
GLOBAL LEADER, CONTINUOSLY ENHANCED PORTFOLIO
Page 15
Global Champion European Centric 2007 2024Geographic Reach
Page 16
European Centric Exposure in North America Global Champion 2007 2024Geographic Reach
Page 17
Global Champion Exposure in North America 10 % 2007 2024US Exposure
Page 18
Global Champion Pure Cable Manufacturer Exposure in North America 2007 2024US Exposure % ~50
Page 19
World-Class Solutions Provider Exposure in North America Pure Cable Manufacturer 2007 2024Status
Page 20
Pure Cable Manufacturer 2007 2024 World-Class Solutions Provider Status
Page 21
EXTRAORDINARY VALUE CREATION, ACCELERATED SINCE 2023 CMD
Page 22
€2.7 bn 2007 2010 2015 Market Cap CMD Oct 2023 ~ €9 bn Prysmian Competitor 1 Competitor 4 EURO STOXX 600 Market Cap May 2007 Market Cap Mar 2025 ~ €18 bn 2020 20252023
Page 23
Total Shareholder Return +470% Since ‘23 CMD +75% Market Cap Mar 2025 ~ €18 bn
Page 24
Prysmian Competitor 1 Competitor 4 EURO STOXX 600 €2.7 bn 2007 2010 2015 2020 20252023 Market Cap May 2007 Market Cap CMD Oct 2023 ~ €9 bn Market Cap Mar 2025 ~ €18 bn + 470% TSR Since ‘23 CMD + 75%
Page 25
SECULAR TAILWINDS RESHAPING THE CABLE INDUSTRY
Page 26
Accelerating transition to renewable energy Secular Tailwinds From 30% to 70% Renewable sources by 2050
Page 27
Electricity demand+2x Electricity consumption growth Secular Tailwinds
Page 28
Annual investments2x Power grid enhancement Secular Tailwinds
Page 29
Premises and towers fiberized+2.5x Digital transformation Secular Tailwinds
Page 30
Power grid enhancement Power Grid Electricity consumption growth Digital transformation Electrification Digital Solutions Accelerating transition to renewable energy Transmission
Page 31
ACCELERATING GROWTH 2028 TARGETS
Page 32
to 3 AmbitionFrom 2
Page 33
2 Ambitionto 3 From
Page 34
Profitability enhancement Strong cash flow generation Superior shareholder return Solutions provider 2.95-3.15 Adj. EBITDA (€bn) 1.5-1.7 Free cash flow (€bn) 15-19% 2024-2028E EPS CAGR 55% Solutions (as % of Revenue) 20282024Targets
Page 35
ACCELERATING GROWTH
Page 36
LEADERSHIP TO DRIVE GROWTH
Page 37
0.5 1.0 1.5 2.0 2.5 Leadership to drive growth 3.0 Mid Single-Digits High Double-Digits Mid Single-Digits Double Digits CAGR 2024 - 2028 Digital SolutionPower Grid ElectrificationTransmission 9.3% 11.3%Margin Adjusted EBITDA (€bn) 1.5 1.9 ~ 12.5% 3.05CAGR 12.2% 2022 2024 2028
Page 38
0.5 1.0 1.5 2.0 2.5 Leadership to drive growth 3.0 Margin 3.05 2028 ~ 12.5% M&A Digital Solution Channell €150mln Adjusted EBITDA (€bn) Organic Adjusted EBITDA Margin €2.9bn 12%
Page 39
Confidential - Not for Public Consumption or Distribution TRANSMISSION
Page 40
2017–2020 2021–2024 2025–2030 Market value (€bn) 4 ~€3bn €13bn €15-20bn Market – Tangible Opportunities TRANSMISSION 5 10 15 20 25 Submarine Interconnectors Land Offshore Wind Americas APACEMEA
Page 41
Right to succeed. Unmatched. TRANSMISSION TECHNOLOGICAL LEADERSHIP TECHNOLOGICAL LEADERSHIP FULLY VERTICAL INTEGRATION UNIQUE INSPECTION, MAINTENANCE AND REPAIR SOLUTION
Page 42
De-risked growth profile TRANSMISSION Backlog €4bn €6bn €11bn €16bn €3bn Dec 2021 Dec 2022 Dec 2023 Mar 2025 90% 86% Order awarded but not included in backlog TSO EMEA CAGR ~ 25-28% EBITDA 2024 EBITDA 2028 €361M Better projects margin Capacity expansion
Page 43
Confidential - Not for Public Consumption or Distribution POWER GRID
Page 44
HIGH VOLTAGE ALTERNATE CURRENT POWER DISTRIBUTION SMART GRID DEVICE AND MONITORING Cable Solutions High Voltage cables Low & Medium Voltage cables Connecting energy to our lives POWER GRID Asset Monitoring OVERHEAD LINE
Page 45
Growth POWER GRID Margin Adjusted EBITDA (€bn) 2022 5.4% 194 2023 390 11.5% 2024 474 13.4% CMD Target 2027 410 2028
Page 46
Right to succeed. Unmatched. POWER GRID TECHNOLOGICAL LEADERSHIP LEADING INNOVATION & SUSTAINABILITY BEYOND THE VALUE CHAIN GLOBAL LEADER WITH LOCAL PRESENCE SCOPE 3 SCOPE 4
Page 47
Confidential - Not for Public Consumption or Distribution ELECTRIFICATION
Page 48
Everywhere for everyone. ELECTRIFICATION Data Centers I&C Industrial & Construction Specialties Renewables OEMs
Page 49
20% 45% Electricity Oil, Bioenergy, Heat, Coal, Gas 2030 2050Unprecedented electricity demand ELECTRIFICATION
Page 50
20% 45% 2030 2050Unprecedented electricity demand ELECTRIFICATION Electricity Oil, Bioenergy, Heat, Coal, Gas
Page 51
BOOST FROM NEW APPLICATIONS 2020 2030 6% 14% 89 215 US Today US 2030 Unprecedented cable demand ELECTRIFICATION – Data centers consumption (GW) SHARE OF TOTAL POWER DEMAND FROM DATA CENTERS:
Page 52
UNIQUE INSPECTION, MAINTENANCE AND REPAIR SOLUTION Growth ELECTRIFICATION Margin Adjusted EBITDA (€bn) 20282022 8.9% 797 2023 825 9.9% 2024 931 9.6% CMD Target 2027 700
Page 53
Right to succeed. Unmatched. ELECTRIFICATION TECHNOLOGICAL LEADERSHIP UNIQUE SERVICE MODEL INNOVATIVE & SUSTAINABLE SOLUTIONS
Page 54
Encore Wire ELECTRIFICATION ENHANCED ACCESS TO ALL ELECTRIFICATION VERTICALS Industrial Renewables Residential Data Centers SERVICE ORIENTED BUSINESS MODEL Operational agility Speed to market Increased customer knowledge, experience
Page 55
Commercial Run rate synergiesby category Encore Wire ELECTRIFICATION €140m Multiple sources of synergies achieved by 2026 ~70% Run rate Pre-Tax EBITDA Synergies Organisation Operations
Page 56
Confidential - Not for Public Consumption or Distribution DIGITAL SOLUTIONS
Page 57
Chase market demand DIGITAL SOLUTIONS GB consumption per mobile user 10x GB consumption per household 4x Of premises covered by FTTH 80x Investment in data centersin 2022-2030 $330bn
Page 58
Accelerating Growth DIGITAL SOLUTIONS Margin Adjusted EBITDA (€M) 2028CMD Target 2027 290 2022 271 14.5% 2023 140 9.4% 2024 161 12.3% 2021 220 13.9%
Page 59
Right to succeed. Unmatched. DIGITAL SOLUTIONS TECHNOLOGICAL LEADERSHIP PORTFOLIO EXPANSION WITH INTEGRATED SOLUTIONS UNRIVALLED PREMIUM FIBER AND OPTICAL CABLE SOLUTIONS
Page 60
Confidential - Not for Public Consumption or Distribution Channell DIGITAL SOLUTIONS VERTICAL INTEGRATED U.S. MANUFACTURER OF PASSIVE EQUIPMENT FOR TELECOMMUNICATION Prysmian’s first major acquisition in Digital Solutions. → 2024 REVENUES BREAKDOWN By segment Vaults Fiber Optics Thermoplastic Enclosures Metal Enclosures +90% USA
Page 61
Channell: strategic advantages DIGITAL SOLUTIONS EXPOSURE TO NORTH AMERICAINNOVATION SYNERGIES THANKS TO EXTENDED COMMERCIAL REACH STRENGTHEN POSITIONING AS A DIGITAL SOLUTIONS PROVIDER
Page 62
ACCELERATING LEADERSHIP
Page 63
Accelerating Growth TALENTED AND COMMITTED PEOPLE UNMATCHED SYNERGISTIC PORTFOLIO GROWTH-ORIENTED INNOVATIVE AND SUSTAINABLE SOLUTIONS
Page 64
Accelerating Growth UNMATCHED SYNERGISTIC PORTFOLIO
Page 65
INTEGRATED INNOVATIVE SOLUTIONS CAPTURING GROWTH, FASTER THAN COMPETITION ADDRESS DIFFERENT MARKET NEEDS Transmission Power Grid Electrification Digital Solutions
Page 66
Electrification Digital SolutionsPower Grid Synergistic Portfolio Transmission
Page 67
Accelerating Growth TALENTED AND COMMITTED PEOPLE
Page 68
UNLOCK THE FULL POTENTIAL OF INTEGRATION M&A-fuelled Diversity and Know-how Draka General Cable Culture Know-how Performance driven mindset Talented and committed people
Page 69
PASSION INNOVATION TEAM PLAY
Page 70
To the worldclass solutions provider Accelerating Growth GROWTH-ORIENTED INNOVATIVE AND SUSTAINABLE SOLUTIONS
Page 71
Growth-oriented innovative and sustainable solutions 18% 28% 55% 2024 20282010 as % of Revenue
Page 72
Confidential - Not for Public Consumption or Distribution INNOVATION AT PRYSMIAN
Page 73
Performance on Product Vitality 5 % 2007 2024
Page 74
24 % Adding focus on sustainable innovation with industry leading 24% New Product and Solutions Vitality 20242007
Page 75
2007 2024 7 R&D Centers In Europe 27 R&D Centers Worldwide
Page 76
2007 2024 27 R&D Centers Worldwide
Page 77
Professionals with world class expertise in all BUs. Professionals with expertise in Energy cables 2007 2024 400
Page 78
Professionals with expertise in Energy cables. Professionals with world class expertise in all BUs 2007 2024 1100
Page 79
20282024 24 % Industry leading 24% New Product and Solutions Vitality
Page 80
Leading to a New Product and Solutions Vitality target of 30% in 2028 2024 2028 30 %5
Page 81
OUR MAIN STRENGTH IS THE STRONG CONNECTION WITH OUR CUSTOMERS
Page 82
ACCELERATING TRANSFORMATION INTO A SOLUTIONS PROVIDER
Page 83
Ground-breaking technological platforms Technologies Comprehensive high-tech solutions Systems Cutting-edge solutions for advanced monitoring Sensing Customer needs at the heart of our mission Services From cable manufacturer, to solutions provider
Page 84
SIROCCO • 160µm fiber • Hollow Core fiber • Densification Technologies Systems Sensing ServicesFrom cable manufacturer, to solutions provider CL ADVANTAGE • Light-weight & smaller • Lower losses • Reduced Carbon Footprint LIFELINE • Fire Safety • Components • Installation E PATH • Low impact solutions • Circular Economy • Data transparency
Page 85
Confidential - Not for Public Consumption or Distribution Ground-breaking technological platforms Technologies Comprehensive high-tech solutions Systems Cutting-edge solutions for advanced monitoring Sensing Customer needs at the heart of our mission Services From cable manufacturer, to solutions provider
Page 86
Confidential - Not for Public Consumption or Distribution VESSELS FLEET The most advanced fleet for extended installation campaigns From cable manufacturer, to solutions provider 525kV DC Land & Submarine P-Laser & XLPE cable & accessories 245kV AC DYNAMIC Full suite of components to boost floating wind farms market Technologies Systems Sensing Services ULTRA HIGH DEPTH Synthetic armors cables & ancillaries up to 3000m under sea
Page 87
Ground-breaking technological platforms Technologies Comprehensive high-tech solutions Systems Cutting-edge solutions for advanced monitoring Sensing Customer needs at the heart of our mission Services From cable manufacturer, to solutions provider
Page 88
ADDED VALUE • Alesea • Pry-ID • EVywhere From cable manufacturer, to solutions provider SUBMARINE • Live Performance • Fault location • Intrusion detection BUILDINGS • Safety • Energy consumption • EV interface Technologies Systems Sensing Services TERRESTRIAL • Network monitoring • Preventive maintenance • Fault location
Page 89
Ground-breaking technological platforms Technologies Comprehensive high-tech solutions Systems Cutting-edge solutions for advanced monitoring Sensing Customer needs at the heart of our mission Services From cable manufacturer, to solutions provider
Page 90
DATA CENTERS Reliable energy supply and secure data connections From cable manufacturer, to solutions provider RENEWABLE PLUS • Cable • Accessories • PRY-CAM & Alesea ADVANCED PACKAGING JOBSITE PRODUCTIVITY • Reel Payoff • Barrel Pack & Mega Coil Technologies Systems Sensing Services SMART INSTALLATION HV & MV CABLES Pre-terminated cables & accessories for faster and safer field installation
Page 91
Confidential - Not for Public Consumption or Distribution SUSTAINABILITY AT PRYSMIAN
Page 92
Confidential - Not for Public Consumption or Distribution Sustainability is key to out innovation goals Innovation is key to out sustainability goals
Page 93
Confidential - Not for Public Consumption or Distribution To sustain our customers growth and innovation.
Page 94
Confidential - Not for Public Consumption or Distribution Aiming for a net gain on the environment and society. Leaving a lasting mark beyond the value chain.
Page 95
Confidential - Not for Public Consumption or Distribution Accelerating Sustainability Climate Biodiversity
Page 96
Confidential - Not for Public Consumption or Distribution BASELINE 2019 2022-2023 920kton870kton 2024 1,050kton6 M&A & Organic related Growth +20% Accelerating Sustainability SCOPE 1&2 +5.7% +14% Same Ambition More Responsability Growth Impact BASELINE 2019 EVOLUTION
Page 97
Confidential - Not for Public Consumption or Distribution Accelerating Sustainability SCOPE 1&2 BASELINE 1,050kton Carbon Emission Reduction % 2024 2030 2035 -37% -60% 90% CO2 reduction In line with 1.50C trajectory
Page 98
ACCELERATING SUSTAINABILITY THROUGH INNOVATION
Page 99
Confidential - Not for Public Consumption or Distribution SF6 reduction & elimination In operations & new accessories SCOPE 1 & 2
Page 100
Confidential - Not for Public Consumption or Distribution Energy Efficiency Acceleration SCOPE 1 & 2
Page 101
Confidential - Not for Public Consumption or Distribution True impact across the entire value chain– Baseline 2019 SCOPE 3 Upstream7 SCOPE 1&2 Own Operations SCOPE 3 Downstream7 ~12,947 ktCO2e 1,050 ktCO2e ~236,073 ktCO2e ~5.2% ~0.4% ~94.4%
Page 102
Confidential - Not for Public Consumption or Distribution Accelerating Sustainability SCOPE 3 DOWNSTREAM 102 Mton SCOPE 3 Downstream 2024-57%2024 236 Mton SCOPE 3 Downstream BASELINE 2019
Page 103
Confidential - Not for Public Consumption or Distribution Grid Decarbonization SCOPE 3
Page 104
Confidential - Not for Public Consumption or Distribution SCOPE 3 Innovative Solutions
Page 105
Confidential - Not for Public Consumption or Distribution AmpacityUp to +25% E3X Technology SCOPE 3 & 4 LossesUp to -20% → Reduced Sag & Icing
Page 106
Confidential - Not for Public Consumption or Distribution From 80 % SCOPE 3 & 4 Automated splicing machine → Reduced MV network failures
Page 107
Confidential - Not for Public Consumption or Distribution Automated splicing machine 5 % SCOPE 3 & 4 To → Reduced MV network failures
Page 108
Confidential - Not for Public Consumption or Distribution Materials Accelerating Sustainability SCOPE 3 Re-used / Recycled PE Bio-Polymers Low Carbon Aluminum Recycled Copper
Page 109
Confidential - Not for Public Consumption or Distribution 249 Mton 2030 Accelerating Sustainability SCOPE 3 well below 20C pathway SCOPE 3 Baseline 2050 Net Zero 2035 90% CO2 reduction Carbon Emission Reduction % -28%
Page 110
Confidential - Not for Public Consumption or Distribution 249 Mton 2030 Accelerating Sustainability SCOPE 3 well below 20C pathway SCOPE 3 Baseline 2035 90% CO2 reduction 2050 Net Zero In line with 1.50C trajectory Carbon Emission Reduction % -65%
Page 111
Confidential - Not for Public Consumption or Distribution NET ZERO 2050 Targets SCOPE 1,2 & 3 2025 2030 2035 2040 2045 2050
Page 112
Confidential - Not for Public Consumption or Distribution NET ZERO IN LINE WITH 1.50°C TRAJECTORY 2035 Both upstream and downstream Targets SCOPE 1,2 & 3 2025 2030 2035 2040 2045 2050
Page 113
Confidential - Not for Public Consumption or Distribution Accelerating Sustainability Climate Biodiversity
Page 114
From Do Not Harm Net GainTo Targets Achieve biodiversity goal Approach
Page 115
From Do Not Harm Net Gain To Achieve biodiversity goal Targets Approach
Page 116
Achieve biodiversity goal Biodiversity in action Targets NET GAIN BY 2035
Page 117
Sustainable Impact Promote the nesting of protected species. NEU CONNECT Ensure to protect and to prevent damage to plants along the 40 km submarine route. ELBA PIOMBINO Monitoring the presence of marine mammals during operations. BISCAY BAY
Page 118
Confidential - Not for Public Consumption or Distribution VALUE FOR THE COMMUNITIES Our Holistic approach VALUE FOR OUR CUSTOMERS VALUE FOR THE ECOSYSTEM Climate Circular economy Biodiversity Social Impact
Page 119
Confidential - Not for Public Consumption or Distribution Innovation Our Holistic approach Homes powered by clean energy CO2 avoided emissions Up to 4M Up to -90% Wildlife monitoring system with AI→ Up to 500 Training & volunteer activities hours Homes powered by clean energy Net reduction in carbon emissions over 25 years Bird nesting deterrence & species identification Involvement of young local students Up to 1.5M 13 MtCO2 → → EGL 1-2 by 2030 NeuConnect
Page 120
Confidential - Not for Public Consumption or Distribution Total % of Revenues linked to sustainable solutions Sustainable Revenues Accelerating Sustainability 2022 2023 2024 2028 55%43%37%19%
Page 121
Climate Sustainable RevenuesBiodiversity Employee Share Targets Net Zero By 2035 55% by 2028 Net Gain By 2035 +50% Employees holding shares by 2028
Page 122
ACCELERATING VALUE CREATION
Page 123
15% 2022-2024 EPS CAGR 1.5 2.10.5 0.6 1.00.2 Long history of delivery CAGR 7% CAGR 20% Free Cash Flow (Levered) (€bn) Adjusted EBITDA (€bn) 9.3% 11.6%10.3%Margin 2022 2024 PF 22007 2022 20242007 CAGR 6% CAGR 35%
Page 124
Reinforcing capital efficiency 2025 – 2028E2020 - 2023 2024 – 2027E (CMD Oct. 23) 2.1 €400m €530m €650m 1.6 Cumulative CAPEX (€bn) 0.5 1.0 1.5 2.0 2.5 Yearly avg. 2.6 Encore Wire & Channel (0.5)
Page 125
Delivering our target Delivering our target EPS DILUTED (REPORTED) 8 ROCE (%) EPS DILUTED (ADJUSTED) 9 Free Cash Flow (€m) % EBITDA Conversion into Free Cash Flow 20282024 2025 Guidance Adjusted EBITDA (€m) 2.52 ps ~4.40-5.00 ps 2.81 ps ~4.60-5.20 ps ~15-19% 2024-2028E CAGR 1,011 ~52% 950 – 1,050 1,500 – 1,700 >50% 1,927 2,250 – 2,350 2,950-3,150 16% 20% - 22%
Page 126
2025-28E Cumulative Free Cash Flow From 2027 M&A and/or Enhance Shareholders Remuneration Combining growth and strengthening financial structure ~€2.6bn10 ~€5.0bn Dividends +12% 2024-2028 DPS CAGR ~23% of Cumulative Free Cash Flow ~€1.1bn Deleverage ~1.0 – 1.5 x Run-rate Target Leverage ~€1.3bn
Page 127
CLOSING REMARKS
Page 128
Several Pathways
Page 129
Several Pathways Positioning as an electrical and digital solutions provider
Page 130
Several Pathways Accelerating through agility and flexibility
Page 131
Several Pathways Unmatched innovation and technological leadership
Page 132
Several Pathways Commitment to delivering performance
Page 133
Targets 2028 2.95-3.15 Adj. EBITDA (€bn) €1.5-1.7bn Free Cash Flow (€bn) 15-19% 2024-2028E EPS CAGR 55% Solutions (as % of Revenue) Profitability enhancement Strong cash flow generation Superior shareholder return Solutions provider
Page 134
APPENDIX
Page 135
DISCLAIMER This Presentation may contain "forward-looking statements", which includes all statements that do not relate solely to historical or current facts and which are therefore inherently uncertain. All forward-looking statements rely on a number of assumptions, expectations, projections and provisional data concerning future events and are subject to a number of uncertainties and other factors, many of which are outside the control of Prysmian S.p.A. (the "Company"). There are a variety of factors that may cause actual results and performance to be materially different from the explicit or implicit contents of any forward-looking statements and thus, such forward-looking statements are not a reliable indicator of future performance and cannot be interpreted as a promise or guarantee of whatsoever nature. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable law. The information and opinions contained in this Presentation are provided as at the date hereof and are subject to change without notice. Neither this Presentation nor any part of it nor the fact of its distribution may form the basis of, or be relied on or in connection with, any contract or investment decision. Prysmian S.p.A. and its representative do not assume any and all liability relating to or resulting from the use of the Presentation, reliance on the information contained herein, or the distribution or possession of the Presentation. The information, statements and opinions contained in this Presentation are for information purposes only and do not constitute a public offer under any applicable legislation or an offer to sell or solicitation of an offer to purchase or subscribe for securities or financial instruments or any advice or recommendation with respect to such securities or other financial instruments. Distribution of this document in oth er jurisdictions may be prohibited, and recipients into whose possession this document comes shall be solely responsible for informing themselves about and observing any such restrictions. The managers responsible for preparing the company's financial reports, A. Brunetti and S.Invernici, declare, pursuant to paragraph 2 of Article 154- bis of the Consolidated Financial Act, that the accounting information contained in this presentation corresponds to the results documented in the books, accounting and other records of the Company. This presentation may contain summarized information or information that has not been audited or independently verified by any third party, and its recipients are invited to consult the documentation and public information made available by Prysmian S.p.A. For the aforementioned purposes, "Presentation" means this document, and any oral presentation, any question-and-answer session and any written or oral material discussed following the distribution of this document. By participating to this presentation and accepting a copy of this presentation, you agree to be bound by the foregoing limitations regarding the information disclosed in the presentation.
Page 136
Exchange rate Assumed USD/EUR exchange rate at 1.07 Interest rates Europe & US: progressively declining from 2025 onwards Materials and Raw materials Assumed stable metals (CU, AL) and non -metal raw materials prices vs 2024 Assumed no effect from import duties and tariffs in US Assumed no significant impact of geo -political scenarios on key raw material availability, energy prices and supply chain contin uity KEY ASSUMPTIONS
Page 137
GLOSSARY SALES ORGANIC GROWTH Variation of Net Sales compared to same period of previous year, calculated excluding: changes in consolidation perimeter, changes in metal prices and exchange rate translation effects ADJ. EBITDA Adjusted excluding restructuring expenses, non -operating income/expenses and non -recurring income/expenses; also excluding impairment cost, share -based compensation and fair value changes of metal derivatives FREE CASH FLOW (FCF) Free Cash Flow, levered, after tax, excluding Acquisitions & Disposals and excluding Antitrust in/out -flows EBITDA CONVERSION IN FCF Free Cash Flow divided by Adj. EBITDA CAPEX Net capital expenditure, i.e. additions of tangible and intangible assets, less disposals RETURN ON CAPITAL EMPLOYED (ROCE) Ratio between Adjusted EBIT and Net Capital Employed: – Adjusted EBIT before taxes and share -based compensation (same adjustments as in Adj. EBITDA) – Net Capital Employed excluding ( i) FV of Metals derivatives (ii) Antitrust provisions (iii) Tax receivables/payables and deferred tax assets/liabilities and (iv) Investment in associates BACKLOG Related to Transmission; residual sales value of firm orders not yet completed; it refers to orders in execution phase and/or having received the notice to proceed ORDER AWARDED BUT NOT INCLUDED IN BACKLOG Related to Transmission; Contracted orders with no notice to proceed yet SUSTAINABLE REVENUES Percentage of total revenues coming from the sale of environmentally friendly products SOLUTIONS REVENUES Percentage of total revenues coming from the sale of comprehensive package of products and integrated services tailored to address customers’ specific challenges or needs
Page 138
NOTES 1 2022 and 2027 “Connect to Lead” Target based on comparable perimeter. 2 2024 financials Pro Forma for Encore Wire acquisition. 3 Source: Factset. 4 Assumes worldwide market excluding China and mega projects: Green Vein, Sun Cable (AAPL), Xlink 5 New Product Vitality is revenues calculated on a 3 -years basis 6 SCOPE 1&2 - The values do not correspond to the ones published in 2024 Annual Integrated Report due to the recent approval by SB Ti of the enlarged 2019 baseline. 7 SCOPE 3 - The value does not correspond to the one published in the 2024 Annual Integrated Report due to validation received by SBTI after the publication of the Annual Integrated Report of: • the restated baseline to take into account the integration of EW; • the grid factors. 8 EPS DILUTED (REPORTED): Calculated on a fully diluted basis 9 EPS DILUTED (ADJUSTED): Calculated on a fully diluted basis and adjusted to exclude the amortization of intangible assets rel ated to Purchase Price Accounting of to -date Acquisitions; 2025 Adjusted EPS also excludes the effect of the inventory step up reversal related to Enco re Purchase Price Allocation 10 Includes €0.5bn IFRS 16 effect