Prysmian — Investor Presentation 2020

Mar 10, 2021

FY2020 Financial Results

Milan, 10 March 2021

2020 Highlights

GROUP OVERVIEW OUTLOOK

Financial Results

Appendix

2020 Priorities

Protecting Value while Investing in the Future

PEOPLE & CUSTOMERS FIRST

/ Protecting employees also through widespread and continuous tests, distribution of sanitary material and PPE

/ + 17 mln€ investments in HSE

/ Continued strategic focus on Customer Centricity: On time delivery >94%

INNOVATE TO BUILD THE FUTURE

/ Two 525kV HVDC Technologies (P Laser and XLPE)

/ High depth 3 core submarine cable installed at >900m with Crete-Peloponnese

/ Sirocco Extreme world's smallest diameter microduct optical cable using 180µm fiber

/ FlexRibbonTM cable with the highest density of fibers inside

/ Alesea smart virtual assistant for cable drums management PROTECTING THE BUSINESS

the customers

/ Cash flow protection Rigorous working capital management Stricter Capex discipline / Effective cost control Fixed & Variable Costs reduction / Relentless focus on serving

69% RECYCLED WASTE vs 63% in 2019

84%

product families covered by carbon footprint measurement vs 70% in 2019

48% of revenues from LOW CARBON enabling products

LABEL "ECO CABLE" for green cables in response to new market trends

/ Pikkala cable plant to become GROUP'S FIRST NET-ZERO FACTORY

/ 450 €M investment by 2022 to support Sustainability, Energy Transition and Digitalization

/ FLU VACCINATIONS for employees and families

/ Confirmed with IMPROVING SCORES in Dow Jones Sustainability Index: second ranked in the Sector; Ecovadis platinum score

2020 Financial highlights

ORGANIC GROWTH*

SALES

ADJ. EBITDA

SALES

-8.3% 10.02 €B

ADJ. EBITDA 840 €M ADJ. EBITDA MARGIN

8.4%

FREE CASH FLOW

NET DEBT

1,986€M

SEQUENTIAL IMPROVEMENT RESILIENT MARGINS RECORD FREE CASH FLOW

-4.8% in Q4, showing sequential improvement

-14.1%Telecom (-3.8% in Q4)

-7.5% E&I with a sequential improvement in H2 (-4.0% in Q4)

Positive trends in Renewables and Onshore Wind (USA)

supported by strong and timely actions on fixed and variable costs and by business mix improvement

Negative Forex impact (-32 €M)

Sound deleverage

487 €M

FCF

487 €M of FCF excluding Antitrust Cash-Out (112 €M)

Significantly higher than guidance

2020 Financial highlights Euro Millions, % on Sales

2020 Organic growth y-o-y; excluding Projects segment

Sales & Adj. EBITDA by Business Euro Millions, % on Sales

Sales & Adj. EBITDA by Geography Euro Millions, % on Sales

© Prysmian Group 2020

FY 2020 organic growth including Projects segment: Group -10.3%; EMEA -11.9%; North America -7.1%; Latin America -9.0%; Asia Pacific -13.0%

2020 Highlights

GROUP OVERVIEW OUTLOOK

Financial Results

© Prysmian Group 2020 10

Appendix

2021 Outlook: a promising start in a still uncertain environment

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

Focused on generating Shareholders Value

Dividend proposal to the next AGM

(1) Based on 2020 average price (€ 21.81)

(2) Based on closing prices as of 3 May 2007 (€ 15.36) and 31 December 2020 (€ 29.08)

2020 Highlights

GROUP OVERVIEW OUTLOOK

Financial Results

Appendix

14

Profit and Loss Statement Euro Millions

	2020	2019
SALES YoY total growth YoY organic growth	10,016 (13.0%) (10.3%)	11,519
Adj.EBITDA	840	1,007
% on sales	8.4%	8.7%
of which share of net income	18	24
Adjustments	(59)	(100)
EBITDA	781	907
% on sales	7.8%	7.9%
Adj.EBIT	515	689
% on sales	5.1%	6.0%
Adjustments	(59)	(100)
Special items	(103)	(20)
EBIT	353	569
% on sales	3.5%	4.9%
Financial charges	(101)	(125)
EBT	252	444
% on sales	2.5%	3.9%
Taxes	(78)	(148)
% on EBT	31.0%	33.3%
NET INCOME	174	296
% on sales	1.7%	2.6%
Minorities	(4)	4
GROUP NET INCOME	178	292
% on sales	1.8%	2.5%

Adj. EBITDA Bridge
	Q1	Q2	Q3	Q4		FY
ADJ. EBITDA 2019	231	290	252	234		1,007
Projects	(3)	(14)	(5)	(20)		(42)
Energy	1	(22)	(15)	(29)		(65)
Telecom (ex-share of net income)	(25)	(30)	(5)	8		(52)
share of net income	(7)	(2)	1	-		(8)
ADJ. EBITDA 2020	197	222	228	193		840
of which Forex effect	-	(3)	(12)	(17)		(32)

Adjustments and Special Items on EBIT

	2020	2,019
Non-recurring Items (Antitrust investigation)	(9)	32
Restructuring	(32)	(85)
Other Non-operating Income / (Expenses)	(18)	(47)
EBITDA adjustments	(59)	(100)
Special items	(103)	(20)
Gain/(loss) on metal derivatives	(4)	15
Assets impairment	(68)	(36)
Share-based compensation	(31)	1
EBIT adjustments	(162)	(120)

Profit and Loss Statement Euro Millions

	2020	2019
SALES YoY total growth YoY organic growth	10,016 (13.0%) (10.3%)	11,519
Adj.EBITDA	840	1,007
% on sales	8.4%	8.7%
of which share of net income	18	24
Adjustments	(59)	(100)
EBITDA	781	907
% on sales	7.8%	7.9%
Adj.EBIT	515	689
% on sales	5.1%	6.0%
Adjustments	(59)	(100)
Special items	(103)	(20)
EBIT	353	569
% on sales	3.5%	4.9%
Financial charges	(101)	(125)
EBT	252	444
% on sales	2.5%	3.9%
Taxes	(78)	(148)
% on EBT	31.0%	33.3%
NET INCOME	174	296
% on sales	1.7%	2.6%
Minorities	(4)	4
GROUP NET INCOME	178	292
% on sales	1.8%	2.5%

Financial Charges

	2020	2019
Net interest expenses	(77)	(88)
of which non-cash conv.bond interest exp.	(10)	(10)
Financial costs IFRS 16	(5)	(5)
Bank fees amortization	(6)	(7)
Gain/(loss) on exchange rates and derivatives	(9)	(24)
Non recurring and other effects	(3)	1
Impact Hyperinflationary economies	(1)	(2)
Net financial charges	(101)	(125)

Statement of financial position (Balance Sheet) Euro Millions

	31 Dec 2020	31 Dec 2019
Net fixed assets	4,971	5,301
of which: goodwill	1,508	1,590
Net working capital	523	755
of which: derivatives assets/(liabilities)	91	6
of which: Operative Net working capital	432	749
Provisions & deferred taxes	(579)	(820)
Net Capital Employed	4,915	5,236
Employee provisions	506	494
Shareholders' equity	2,423	2,602
of which: attributable to minority interest	164	187
Net financial debt	1,986	2,140
Total Financing and Equity	4,915	5,236

Cash Flow Euro Millions

NET DEBT EVOLUTION

+375 €M Free Cash Flow

Prysmian Group Liquidity and Debt Profile

COMFORTABLE LIQUIDITY POSITION:

/ Average debt maturity increased to 3.8 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 affiliated and debt coming from IFRS 16 (113 €M and 186 €M respectively at 31.12.2020)

2020 Highlights

GROUP OVERVIEW OUTLOOK

Financial Results

Appendix

2020 Organic growth y-o-y; excluding Projects segment

A solid pipeline of projects Expected market by segment (b€/yr, ordering date)

The highest installation capabilities Enabling Energy Transition

LEONARDO DA VINCI: THE MOST ADVANCED CABLE-LAYING VESSEL IN THE WORLD

/ With 171-metre, Leonardo da Vinci will CONSOLIDATE THE GROUP'S LEADERSHIP and boost the capability of submarine cable operations

/ 2 rotating platforms of 7,000 and 10,000 tons to ensure the HIGHEST CAROUSEL CAPACITY IN THE MARKET

/ The capstan capacity of up to 100 tons IS DOUBLE THE INDUSTRY AVERAGE. / Bollard pull of about 200 tons has the HIGHEST PULLING/TOWING CAPACITY in its class / Equipped to carry out the deepest power cable installations of up to 3,000 METRES / All technical features can lead to a REDUCED TRANSPORTATION TIME from the factory to the site, IMPROVING OVERALL PROJECT EFFICIENCY

GIULIO VERNE CABLE ENTERPRISE ULISSE

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

Performance by Segment Euro Millions, % on Sales

Projects Euro Millions, % on Sales

HIGHLIGHTS

SUBMARINE

/ Unfavorable projects mix and undersaturation of extruded capacity affecting Submarine trend / Tendering activity ongoing, with a solid pipeline of projects (interconnections and off-shore wind farms)

UNDERGROUND HIGH VOLTAGE

/ Negative organic growth driven by APAC

/ COVID constraints affecting production and HV installation, recovery in Q4

/ Overall Prysmian awarded more than 1.8 billion euro in German Corridors projects, confirming its leadership position

Adj. EBITDA / % of Sales(1)

ORDERS BACKLOG EVOLUTION (€M)

	DEC '13	DEC '14	DEC '15	DEC '16	DEC '17	DEC '18	DEC '19	DEC '20
Underground HV	~450	~450	~600	~350	~400	~435	~310	~1,980
Submarine	~2,050	~2,350	~2,600	~2,050	~2,050	~1,465	~1,730	~1,510
Group	~2,500	~2,800	~3,200	~2,400	~2,450	~1,900	~2,040	~3,490

Energy & Infrastructure Euro Millions, % on Sales

* Org. Growth

SALES HIGHLIGHTS

TRADE & INSTALLERS

/ Negative performance mainly in Q2 driven by EMEA (South Europe, UK & MEAT) and LATAM / Sound growth in Q4 in LATAM and APAC

POWER DISTRIBUTION

/ Solid performance in North America driven by Onshore Wind / Profitability improvement thanks to geographical mix and operational efficiency

OVERHEAD

/ Sound organic growth and margin improvement in Latin America and North America

^{108 128 154 130 207} 308 275 4.1% 4.6% 5.1% 4.0% 3.8% 5.8% 5.8% 2014 2015 2016 2017 2018 2019 2020 Adj.Ebitda Adj.Ebitda margin ^±X.X% = YoY Sales Organic growth +2.7% +3.0% -3.1% -0.2% +2.1% +0.7% -7.5%

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

Industrial & Network Components Euro Millions, % on Sales

SALES

* Org. Growth

Adj. EBITDA / % of Sales(1)

SPECIALTIES, OEM & RENEWABLES

/ Overall positive performance and resilience to Covid-19. Very good performances of Railways, Wind and Nuclear and important progress in Solar.

HIGHLIGHTS

/ Mining and Infrastructures suffered the economy slow down and the market constrains connected to the pandemic situation.

ELEVATOR

/ Good performance and margins resilience

/ In January 2021, completed the acquisition of EHC Global, leading manufacturer of strategic components and integrated solutions for the vertical transportation industry.

AUTOMOTIVE

/ Organic decline further worsened due to COVID-19 crisis / Strong recovery after the material drop in Q2, with a positive organic growth in Q4

OIL & GAS

/ Declining results impacted by COVID-19 and oil price reduction

NETWORK COMPONENTS

/ Lower results reflecting Covid-19 pandemic

Telecom Euro Millions, % on Sales

Cash Flow Statement

Euro Millions

	31 Dec 2020	31 Dec 2019
Adj.EBITDA	840	1,007
Adjustments	(59)	(100)
EBITDA	781	907
Net Change in provisions & others	(183)	(73)
Share of income from investments in op.activities	(18)	(24)
Cash flow from operations (before WC changes)	580	810
Working Capital changes	259	67
Dividends received	8	9
Paid Income Taxes	(142)	(111)
Cash flow from operations	705	775
Acquisitions/Disposals	(5)	(7)
Net Operative CAPEX	(244)	(248)
Free Cash Flow (unlevered)	456	520
Financial charges	(86)	(94)
Free Cash Flow (levered)	370	426
Free Cash Flow (levered) excl. Acquisitions & Disposals	375	433
Dividends	(70)	(119)
Capital increase, Shares buy-back & other equity movements	1	2
Net Cash Flow	301	309
Net Financial Debt beginning of the period	(2,140)	(2,222)
Net cash flow	301	309
NFD increase due to IFRS16	(79)	(211)
Other variations	(68)	(16)
Net Financial Debt end of the period	(1,986)	(2,140)

Financial Highlights Euro Millions

			Adj.EBITDA
		FY 2020	FY 2019	FY 2020			FY 2019
	€M	organic growth	€M	€M	Adj.EBITDA Margin	€M	Adj.EBITDA Margin
PROJECTS	1,438	-20.6%	1,844	186	13.0%	228	12.4%
Energy & Infrastructure	4,735	-7.5%	5,285	275	5.8%	308	5.8%
Industrial & Network Components	2,252	-7.0%	2,492	166	7.4%	196	7.9%
Other	220	0.0%	250	(1)	-0.5%	1	0.5%
ENERGY	7,207	-7.1%	8,027	440	6.1%	505	6.3%
TELECOM	1,371	-14.1%	1,648	214	15.6%	274	16.6%
Total Group	10,016	-10.3%	11,519	840	8.4%	1,007	8.7%

Bridge Consolidation Sales Euro Millions

Integration completed ahead of time: the Value of General Cable

SOUND VALUE CREATION FURTHER ENHANCING PRYSMIAN'S WORLDWIDE LEADERSHIP

Energy Transition Prysmian awarded approx. 50% of the overall German HV projects

Overall Prysmian awarded more than 1.8 billion euro in German Corridors projects, confirming its leadership position

SuedOstLink

1,100 km cable 5 lots

A-Nord

4 lots

1,280 km cable

/ Client: TenneT TSO GmbH / Type of cable: 525 kV extruded / Completion date: early 2026

/ Client: AMPRION GmbH

/ Completion date: Q2 2028

/ Type of cable: 525 kV extruded

€500 M

Prysmian awarded contract; ~50% of project

€500 M

Prysmian awarded contract; 50% of project

SuedLink 2,750 km cable 4 lots

/ Client: TenneT TSO GmbH & TransnetBW GmbH

/ Type of cable: 525 kV extruded

/ Completion date: 2H 2026

Prysmian awarded contract; >40% of project €800 M

Driving innovation in a reliable and sustainable manner

P-LASER ADVANTAGES

Prysmian developed WORLD CLASS COMPETENCES AND EXPERTISE IN HVDC over the last 10yr innovation investment horizon,

Increased focus on INDUSTRIALIZATION OF NEW TECHNOLOGIES to ensure high quality product and service to customers

SUSTAINABLE: 100% recyclable, 40% lower CO2 emissions

PERFORMANCE: Higher operating temperature, Better polarity reversal

OPERATIONS: Single step process, No by-products

Prysmian group at a glance 2020 Financial Results

SALES BREAKDOWN BY BUSINESS

SALES BREAKDOWN BY GEOGRAPHY

Projects 2020 sales breakdown

High Voltage 44% Offshore specialities 4% Submarine TLC 2% Submarine Energy 50% North America 5% LatAm 3% APAC 5% EMEA 87% €1.4 BN €1.4 BN

SALES BREAKDOWN BY BUSINESS SALES BREAKDOWN BY GEOGRAPHY

Energy & Infrastructure 2020 sales breakdown

SALES BREAKDOWN BY BUSINESS SALES BREAKDOWN BY GEOGRAPHY

Industrial & Network Components 2020 sales breakdown

SALES BREAKDOWN BY BUSINESS SALES BREAKDOWN BY GEOGRAPHY

Telecom 2020 sales breakdown

SALES BREAKDOWN BY BUSINESS SALES BREAKDOWN BY GEOGRAPHY

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;

Share of net income include Management estimate of YOFC Q4 results.

Disclaimer

• The managers responsible for preparing the company's financial reports, A.Brunetti and C.Soprano, 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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