Prysmian — Earnings Release 2021

May 13, 2021

1Q 2021 Highlights

Financial Results

Appendix

2

1Q 2021: A Solid Start of the Year

SOLID START OF THE YEAR: +4.6% Organic Growth*

Strong recovery of Telecom and Energy Business demand driven by construction and renewables

RESILIENT MARGINS: 7.6% Adj EBITDA Margin

Solid volume trend, cost efficiency and price management to balance raw materials cost inflation.

Negative forex impact (-14 €M).

SOUND FREE CASH FLOW GENERATION

553 €M of FCF LTM excluding antitrust cash-out

PROJECTS: EXECUTION & INTAKE

Sofia offshore wind project award worth over 200 €M

Completion of Crete-Peloponnese interconnection

The new vessel "Leonardo Da Vinci" to enter in operation in Q3, on time for Viking installation

1Q 2021 Financial highlights

SALES

SALES +4.6% ORGANIC GROWTH* 2,810 €M

ADJ. EBITDA

ADJ. EBITDA 213 €M ADJ. EBITDA MARGIN

7.6%

FREE CASH FLOW

NET DEBT

2,325€M

SOLID ORGANIC GROWTH RESILIENT MARGINS FREE CASH FLOW

+11.4% Telecom, with strong sequential improvement

+3.5% E&I, mainly driven by construction

+3.5% Industrial & NWC driven by OEM and renewables

Energy Business margins higher than pre-Covid 19 level, despite raw material increase

Sound volume in Telecom and strong efficiency measures

Negative forex impact (-14 €M)

FCF LTM

553 €M

553 €M of FCF LTM excluding antitrust cash-out

Sound performance in Energy and Telecom; phasing affecting Projects

Energy and Telecom: a promising recovery path

Monthly volume evolution baseline: Jan 2019 Optical cable business only in Telecom

© Prysmian Group 2021 7

Energy Business better than Pre-pandemic level

Euro Millions, % on Sales

A global recovery: the value of a wide geographical presence

Main takeaways and priorities

ENERGY

Keep protecting profitability: coping with cost inflation and raw material availability

Leveraging on volume rebound and cost actions to balance price pressure

TELECOM PROJECTS

Solid market outlook: focus on tendering activity and smooth execution

A CABLE SOLUTIONS PROVIDER

WITH A

Complete and balanced business portfolio

Wide geographical presence

Wide and integrated customer base

2021 OUTLOOK: INCREASED CONFIDENCE IN THE GUIDANCE

1Q 2021 Highlights

Financial Results

Appendix

Profit and Loss Statement Euro Millions

	1Q 2021	1Q 2020
SALES YoY total growth YoY organic growth	2,810 8.6% 3.0%	2,587
Adj.EBITDA	213	197
% on sales	7.6%	7.6%
of which share of net income	6	1
Adjustments	(14)	(14)
EBITDA	199	183
% on sales	7.1%	7.1%
Adj.EBIT	135	117
% on sales	4.8%	4.5%
Adjustments	(14)	(14)
Special items	2	(45)
EBIT	123	58
% on sales	4.4%	2.2%
Financial charges	(13)	(27)
EBT	110	31
% on sales	3.9%	1.2%
Taxes	(32)	(11)
% on EBT	29.1%	35.5%
NET INCOME	78	20
% on sales	2.8%	0.8%
Minorities	2	(3)
GROUP NET INCOME	76	23
% on sales	2.7%	0.9%

Adj. EBITDA Bridge
	Q1
ADJ. EBITDA 2020	197
Projects	(7)
Energy	13
Telecom (ex-share of net income)	5
share of net income	5
ADJ. EBITDA 2021	213
of which Forex effect	(14)

	Financial Charges

	1Q 2021	1Q 2020
Net interest expenses	(23)	(23)
of which non-cash conv.bond interest exp.	(5)	(2)
Financial costs IFRS 16	(1)	(1)
Bank fees amortization	(1)	(1)
Gain/(loss) on exchange rates and derivatives	(3)	(1)
Non recurring and other effects	15	(1)
Net financial charges	(13)	(27)

Statement of financial position (Balance Sheet) Euro Millions

	31 Mar 2021	31 Mar 2020	31 Dec 2020
Net fixed assets	5,110	5,258	4,971
of which: goodwill	1,607	1,612	1,508
Net working capital	1,071	1,122	523
of which: derivatives assets/(liabilities)	171	(61)	91
of which: Operative Net working capital	900	1,183	432
Provisions & deferred taxes	(597)	(737)	(579)
Net Capital Employed	5,584	5,643	4,915
Employee provisions	511	487	506
Shareholders' equity	2,748	2,550	2,423
of which: attributable to minority interest	171	180	164
Net financial debt	2,325	2,606	1,986
Total Financing and Equity	5,584	5,643	4,915

Cash Flow Euro Millions

NET DEBT EVOLUTION

1Q 2021 Highlights

Financial Results

Appendix

Energy and Telecom: a recovery path to pre-pandemic levels

INDUSTRIAL & NWC

A global recovery

1Q 2021 Financial highlights Euro Millions, % on Sales

* Organic growth

Profit and Loss Statement Euro Millions

	1Q 2021	1Q 2020
SALES YoY total growth YoY organic growth	2,810 8.6% 3.0%	2,587
Adj.EBITDA	213	197
% on sales	7.6%	7.6%
of which share of net income	6	1
Adjustments	(14)	(14)
EBITDA	199	183
% on sales	7.1%	7.1%
Adj.EBIT	135	117
% on sales	4.8%	4.5%
Adjustments	(14)	(14)
Special items	2	(45)
EBIT	123	58
% on sales	4.4%	2.2%
Financial charges	(13)	(27)
EBT	110	31
% on sales	3.9%	1.2%
Taxes	(32)	(11)
% on EBT	29.1%	35.5%
NET INCOME	78	20
% on sales	2.8%	0.8%
Minorities	2	(3)
GROUP NET INCOME	76	23
% on sales	2.7%	0.9%

Adjustments and Special Items on EBIT
	1Q 2021	1Q 2020
Non-recurring Items	(2)	-
Restructuring	(5)	(6)
Other Non-operating Income / (Expenses)	(7)	(8)

EBITDA adjustments	(14)	(14)
Special items	2	(45)
Gain/(loss) on metal derivatives	10	(36)
Share-based compensation	(8)	(9)
EBIT adjustments	(12)	(59)

© Prysmian Group 2021 © Prysmian Group 2021 19

Projects Business: Enabling Energy Transition

WELL POSITION TO CAPTURE MARKET OPPORTUNITIES: 7.2 €BN ORDERS/YEAR EXPECTED

BACKLOG AT THE HIGHEST LEVEL: € 3.8 BILLION

OFFSHORE WIND: FROM GW INSTALLED TO €M CABLE VALUE

Indicative shares of capital cost by component Split based on historical figures and projecting the cost per GW

1 GW of offshore wind requires:

• Submarine Transmission cable (AC or DC)
• Land Transmission Cable (AC or DC)
• Interarray cables (MV 33 or 66kV)
• Installation for all

Approx. value for all these items on average 300 € million

Projects Euro Millions, % on Sales

Adj. EBITDA / % of Sales(1)

ORDERS BACKLOG EVOLUTION (€M)

Energy & Infrastructure Euro Millions, % on Sales

* Org. Growth

SALES HIGHLIGHTS

TRADE & INSTALLERS

/ Strong organic growth driven by EMEA (mainly Southern Europe, CEE and North Europe), APAC and LATAM / Margins improvement driven by volume and costs efficiency offsetting raw material costs increase

POWER DISTRIBUTION

/ PD normalizing as expected, after 2020 onshore wind subsidies spurring growth

OVERHEAD

/ Sound organic growth in North America.

Adj. EBITDA / % of Sales(1) ADJ.EBITDA AND % SALES

© Prysmian Group 2021 22

+3.5%

Industrial & Network Components Euro Millions, % on Sales

HIGHLIGHTS

SPECIALTIES, OEM & RENEWABLES Overall positive performance and resilience to Covid-19. Solid performances of Railways, Infrastructure Wind and Solar, partially offset by Rolling Stock del Cranes e del Nuclear.

ELEVATOR Completed the acquisition of EHC Global, leading manufacturer of strategic components and integrated solutions for the vertical transportation industry.

AUTOMOTIVE Positive trend confirmed in Q1 after the material drop in Q2 2020, with volume recovery mainly driven by EMEA

OIL & GAS Declining volume driven by EMEA and North America, partially offset by APAC e LATAM

NETWORK COMPONENTS Improving results mainly driven by HV and EHV in Southern Europe. Stable MV.

Adj. EBITDA / % of Sales(1)

ADJ.EBITDA AND % SALES

© Prysmian Group 2021 23

Telecom Euro Millions, % on Sales

2014 2015 2016 2017 2018 2019 2020 1Q 2021 LTM

2021 Outlook confirmed

Assuming no relevant Covid disruption on current trend; Assumed no cash-out related to Antitrust rulings and related claims; Negative impact from Forex: ASSUMPTIONS cumulated effect 2020A-2021E approx. 55 €M

Prysmian Climate Change Ambition and Targets

OUR NET ZERO CLIMATE AMBITION

Prysmian Group has set carbon reduction targets aligned with the Science Based Targets initiative and Net Zero ambition

Net Zero between 2035 and 2040 for our Scope 1&2 emissions, and by 2050 for our Scope 3 emissions Interim 2030 science-based targets, against a 2019 baseline Signed the Business Ambition for 1.5C Commitment Letter(1)

Already working for an earlier delivery on carbon reduction targets

• Decarbonise 80% of our Scope 1&2 carbon footprint 1 2
• phasing out SF6 emissions

• 100% renewable energy for electricity

• Over the next ten years

• Across our global operations of over 130 sites

Telecom Business Secular growth drivers

MARKET OPPORTUNITIES & CUSTOMER NEEDS OUR APPROACH & SOLUTIONS

RELIABILITY / FUTUREPROOFNESS

/ Easy-to-install products for all rights of way / No compromise on quality

FIBER DENSITY

/ More fiber per mm² / Ubiquity by optimizing the roll-out Capex

SUSTAINABILITY

• / Optical networks consume less energy
• / Less invasive products
• / Less plastic material in miniaturized cables
• / Use of recycled materials
• / Shorter supply chains for lighter products

AND MINIATURIZATION

for BEND INSENSITIVITY

SUSTAINABILITY

/ Product miniaturization

/ Local presence and shorter supply chains / Development of specifically sustainable solutions

The acceleration of digitalization requests sustainable, reliable and ubiquitous fiber networks, to support the 5G and all the new technologies to come

Metal Price Impact on Profitability

Supply Contract	Main Application	Metal Influence on Cable Price	Metal Fluctuation Management
		Impact	Impact
Predetermined delivery date	Projects (Energy transmission) Cables for industrial applications (eg. OGP)	Technology and design content are the main elements of the "solution" offered Pricing little affected by metals	Pricing locked-in at order intake Profitability protection through systematic hedging (long order- to-delivery cycle)
Frame contracts	Cables for energy utilities (e.g. power distribution cables)	Pricing defined as hollow, thus mechanical price adjustment through formulas linked to metal publicly available quotation	Price adjusted through formulas linked to metal publicly available quotation (average last month, …) Profitability protection through systematic hedging (short order-to-delivery cycle)
Spot orders	Cables for construction and civil engineering	Standard products, high copper content, limited value added	Pricing managed through price lists, thus leading to some delay Competitive pressure may impact on delay of price adjustment Hedging based on forecasted volumes rather than orders
High Low			Metal price fluctuations are normally offset through systematic application of hedging strategies

© Prysmian Group 2021 28

Prysmian Group World leader in the energy and telecom cable systems industry

PROJECTS BUSINESS ENERGY BUSINESS TELECOM BUSINESS

Comprising high-tech and high value-added businesses focused on the design, production and customisation of HV and EHV cabling systems for terrestrial and submarine applications.

Prysmian Group also offers advanced services for terrestrial and submarine interconnections between various countries and between offshore wind farms and the mainland, used for both the generation and distribution of electricity.

Comprising high and medium voltage cable systems to connect industrial and residential buildings to primary distribution grids and low voltage ones used within residential and commercial buildings.

Specialties, OEM & Renewables include cable systems for many specific industrial applications such as Cranes, Mining, Railways, Rolling Stock, Marine and Renewables - cables for the solar energy industry and for the operation of wind turbines).

The product range is completed with accessories and components for connecting cables and other elements contained in networks.

Comprising businesses devoted to making the cabling systems and connectivity products used in TLC networks.The Group is also among the leaders in the production of optical fibre - the essential component of all types of optical cables.

In both cables and connectivity, the Group focuses on the design of products that provided greater density in a smaller diameter, with ease of use and optimal fibre management.

Financial Highlights Euro Millions

	Sales		Adj.EBITDA
		1Q 2021	1Q 2020		1Q 2021		1Q 2020
	€M	organic growth	€M	€M	Adj.EBITDA Margin	€M	Adj.EBITDA Margin
PROJECTS	314	-7.9%	347	29	9.3%	36	10.4%
Energy & Infrastructure	1,400	3.5%	1,239	75	5.3%	68	5.5%
Industrial & Network Components	648	3.5%	598	49	7.6%	45	7.5%
Other	66	0.0%	51	2	3.1%	-	-
ENERGY	2,114	3.4%	1,888	126	6.0%	113	6.0%
TELECOM	382	11.4%	352	58	15.2%	48	13.6%
Total Group	2,810	3.0%	2,587	213	7.6%	197	7.6%

Cash Flow Statement

Euro Millions
---------------

	31 Mar 2021	31 Mar 2020	12 Months (from 1/4/2020 to 31/3/2021)
Adj.EBITDA	213	197	856
Adjustments	(14)	(14)	(59)
EBITDA	199	183	797
Net Change in provisions & others	(10)	(44)	(149)
Share of income from investments in op.activities	(6)	(1)	(23)
Cash flow from operations (before WC changes)	183	138	625
Working Capital changes	(477)	(473)	255
Dividends received	3	2	9
Paid Income Taxes	(10)	(15)	(137)
Cash flow from operations	(301)	(348)	752
Acquisitions/Disposals	(73)	-	(78)
Net Operative CAPEX	(29)	(52)	(221)
Free Cash Flow (unlevered)	(403)	(400)	453
Financial charges	(13)	(9)	(90)
Free Cash Flow (levered)	(416)	(409)	363
Free Cash Flow (levered) excl. Acquisitions & Disposals	(343)	(409)	441
Dividends	-	-	(70)
Capital increase, Shares buy-back & other equity movements	-	-	1
Net Cash Flow	(416)	(409)	294
Net Financial Debt beginning of the period	(1,986)	(2,140)	(2,606)
Net cash flow	(416)	(409)	294
Equity component of Convertible Bond 2021	49	-	65
Partial Redemption of the 2017 Convertible Bond	(13)	-	(13)
Consolidation of EHC Net Financial Debt	9	-	9
NFD increase due to IFRS16	(5)	-	(84)
Other variations	37	(57)	10
Net Financial Debt end of the period	(2,325)	(2,606)	(2,325)

Prysmian Group liquidity and debt profile

COMFORTABLE LIQUIDITY POSITION:

/ Average debt maturity increased to 3.5 years after 750 €M Equity Linked Bonds issued on 2nd February 2021 / 1,0 €Bn of committed Revolving Credit Facility fully unutilized

CURRENT FINANCIAL DEBT MATURITY PROFILE(*)

(*) excluding debt held by local affiliates and debt coming from IFRS 16 (126 €M and 180 €M respectively) at 31.03.2021

Bridge Consolidation Sales Euro Millions

Notes

1) Adjusted excluding restructuring, non-operating income/expenses and non-recurring income / expenses; 2) Defined as NWC excluding derivatives; % on annualized last quarter sales;

Disclaimer

• 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.
• Certain information included in this document is forward looking and is subject to important risks and uncertainties that could cause actual results to differ materially. The Company's businesses include its Projects, Energy and Telecom Operating Segments, and its outlook is predominantly based on its interpretation of what it considers to be the key economic factors affecting these businesses.
• Any estimates or forward-looking statements contained in this document are referred to the current date and, therefore, any of the assumptions underlying this document or any of the circumstances or data mentioned in this document may change. Prysmian S.p.A. expressly disclaims and does not assume any liability in connection with any inaccuracies in any of these estimates or forward-looking statements or in connection with any use by any third party of such estimates or forward-looking statements. This document does not represent investment advice or a recommendation for the purchase or sale of financial products and/or of any kind of financial services. Finally, this document does not represent an investment solicitation in Italy, pursuant to Section 1, letter (t) of Legislative Decree no. 58 of February 24, 1998, or in any other country or state.
• In addition to the standard financial reporting formats and indicators required under IFRS, this document contains a number of reclassified tables and alternative performance indicators. The purpose is to help users better evaluate the Group's economic and financial performance. However, these tables and indicators should not be treated as a substitute for the standard ones required by IFRS.

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