Prysmian — Investor Presentation 2023

Mar 9, 2023

FY 2022 Integrated Results

© Prysmian Group 2021 1

March 9th, 2023

CONSISTENT OVERDELIVERY: RESULTS ABOVE ALL GUIDANCES

Over 50% increase in Adj. Ebitda and cash generation

2022 KEY HIGHLIGHTS: BEST YEAR EVER

RECORD RESULTS DRIVEN BY STRONG CUSTOMER FOCUS, BROAD BUSINESS PORTFOLIO AND OPERATIONAL DISCIPLINE

HIGH EXPOSURE TO SECULAR TRENDS

1,417€M

NET DEBT

2022 FINANCIAL HIGHLIGHTS

SALES

ADJ. EBITDA

1,488 €M

ADJ. EBITDA

FREE CASH FLOW

SALES 14.4% ORGANIC GROWTH 16,067€M

SOLID ORGANIC GROWTH MARGINS EXPANSION FREE CASH FLOW

• 30.3% growth in Projects driven by Submarine
• +14.7% E&I, with PD particularly strong (18.8%)
• +8.7% Industrial & NWC, with excellent performance in Renewables
• +10.9% Telecom, with sound growth in Optical

▪ 50% increase in Adj. Ebitda at 1,488 €M vs 976 €M in 2021

9.3%

ADJ. EBITDA MARGIN

▪ 9.3% Adj Ebitda margin in 2022: 160 bps improvement vs 7.7% in 2021

FCF(1)

559 €M

• Sound deleverage continued: 343 €M net debt reduction vs. last year
• 0.95x Net debt /Adj. Ebitda ratio
• FCF(1) yield at 6.8%

SOLID ORDER INTAKE AND RECORD BACKLOG

PROJECTS AWARDED IN 2022

~	3.4	€Bn

7 projects

• Project Lightning installation, Middle East (~ 60 €M)
• Interconnection in Greek Cyclades islands (~ 150 €M)
• Dolwin4 & Borwin4 offshore wind farm (~ 800 €M)
• Neuconnect interconnection (~ 1.2 €Bn)
• Extension of the Suedostlink project (~ 700 €M)
• Two submarine interconnections in Spain (~ 250 €M)

▪ North Sea Link interconnection between UK and Norway ▪ Submarine telecom cable system connecting Arica to Puerto

▪ Two submarine links between Cebu and Negros, Philippines

▪ Project Lightning in the Middle East (~ 220 €M)

▪ Saint Nazaire offshore wind farm in France ▪ Lanzarote- Fuerteventura interconnection in Spain

▪ Hornsea 2 offshore wind farm in the UK

PROJECTS COMPLETED IN 2022

Montt in Chile

~	1	€Bn

6 projects

© Prysmian Group 2021 20235

€1.8 BN IJMUIDEN OFFSHORE WIND PROJECT AWARDED IN 2023

Firm backlog jumped at approx. 8.4 €Bn

• €1.8 billion order by TenneT in March 2023
• Grid connection for two future offshore wind farms in the Netherlands: Ijmuiden Ver Alpha and Nederwiek 1
• First ever 525 KV XLPE HVDC submarine cable systems to deliver in total 4 GW of clean energy
• Over 390 km of route length (of which about 372 km offshore)
• Delivery of the first connection scheduled for 2029, second for 2030.

ALL-TIME HIGH BACKLOG

SOUND PERFORMANCE ACROSS SEGMENTS

Euro Millions, % on Sales

ORGANIC GROWTH ACROSS REGIONS

The value of a wide geographical presence

Data excluding Projects Business

▪ Adj. Ebitda improvement driven by E&I and Renewables

▪ YOFC recovery supporting growth

region

LEADING INNOVATION TO DRIVE SUSTAINABLE GROWTH

FOCUSING ON HIGH TECHNOLOGY PRODUCTS SERVING SECULAR GROWTH TRENDS

GRID HARDENING ENERGY TRANSITION

E3X® Technology Subsea Systems Sirocco Extreme

• 30% lower losses CO2
• 25% higher capacity

RENEWABLES

• 525kV HVDC 2GW
• 275kV HVAC 3Core

PRYSOLAR

• Higher endurance to extreme climate conditions

• 30+yrs lifetime

• Record 50% diameter reduction

• Highest fiber density

DISCIPLINED INVESTMENTS TO FUEL SUSTAINABLE GROWTH

Selective step up in capex to capture secular trends

© Prysmian Group 2021 1010 2023

2023 OUTLOOK

2023 OUTLOOK

Starting to benefit from higher level of backlog, solid execution and full capacity utilization PROJECTS TELECOM

Demand growth in Optical cable Margins in Europe affected by higher energy costs

No relevant Covid disruption on current trend, no further deterioration of geopolitical crisis related to Ukraine, no significant disruption in supply chains and no extreme price movement of raw materials. Assumed no cash-out related to Antitrust rulings and claims; 1.08 Eur/USD average 2023 exchange rate assumed

AGENDA

Financial Results

PROFIT AND LOSS STATEMENT Euro Millions

	2022	2021
SALES YoY total growth YoY organic growth	16 067 , 26 2% 14 4%	12 736 ,
Adj EBITDA	1 488 ,	976
% sales on	9 3%	7 7%
of of which share net income	46	18
Adjustments	(101)	(49)
EBITDA	1 387 ,	927
% sales on	8 6%	7 3%
Adj EBIT	1 119 ,	647
% sales on	7 0%	5 1%
Adjustments	(101)	(49)
Non monetary items	(169)	(26)
EBIT	849	572
% sales on	5 3%	4 5%
Financial charges	(110)	(96)
EBT	739	476
Taxes	(230)	(166)
% EBT on	31 1%	34 9%
INCOME NET	509	310
Minorities	5	2
INCOME GROUP NET	504	308
% sales on	3 1%	2 4%

Adj. EBITDA Bridge

	Q1	Q2	Q3	Q4	FY
ADJ. EBITDA 2021	213	257	255	251	976
Projects	3	8	14	8	33
Energy	63	140	135	90	428
Telecom (ex-share of income) net	6	4	12	3	25
share of income net	3	2	16	5	26
ADJ. EBITDA 2022	288	411	432	357	1 488 ,
of which Forex effect	15	33	39	23	110

Financial Charges

	2022	2021
Net interest expenses	(74)	(77)
of which non-cash conv.bond interest exp.	(9)	(13)
Financial IFRS 16 costs	(6)	(5)
Bank fees amortization	(6)	(8)
Gain/(loss) exchange and derivatives rates on	(20)	(12)
Non recurring and other effects	(4)	6
Net financial charges	(110)	(96)

© Prysmian Group 2021 14 2023

STATEMENT OF FINANCIAL POSITION (BALANCE SHEET)

Euro Millions

31 Dec 2022	(6) 31 Dec 2021
5 583 ,	5 307 ,
1 691 ,	1 635 ,
614	650
5	174
609	476
(680)	(662)
5 517 ,	5 295 ,
329	446
3 771 ,	3 089 ,
186	174
1 417 ,	1 760 ,
5 517 ,	5 295 ,

CASH FLOW

+559 €M Free Cash Flow

CONTINUING TO RETURN VALUE TO SHAREHOLDERS

Dividend proposal to the next AGM: €/share 0.60

CLOSING REMARKS

Outstanding performance across businesses and geo portfolio

High exposure to secular trends

Solid cash generation and financial deleverage

Flawless execution, high visibility and capex growth driving Projects

AGENDA

ESG

2023 – 2025 SUSTAINABILITY SCORECARD

SDGs	Category	KPI	Included in	BASELINE 2022	TARGET 2025	TARGET 2030
	Impacts on	Enable access to green electricity to households		21m	110m
	Society	Enable fast digital access to households		3m	15m
		Percentage reduction of Scope 1&2 GHG Emissions vs baseline 2019	LTI	-24%	-35-37%	-46%
	Climate	Percentage reduction of Scope 3 GHG Emissions vs baseline 2019	-7.5%	-11.5-15%	-28%
	Green &	Share of revenues linked to Sustainable Products – in EU / RoW		52% / 5%	57% / 19%
Circular Economy		Share of recycled content on PE jacket and copper	MBO / LTI	10%	15-16%
	Diversity	Percentage of Desk Workers women hired	MBO	44.9%	46-49%	50%
	& Inclusion	Percentage of Executive women	LTI	15.7%	21-24%	>30%
	People	Safety Assessment Plan	MBO	-	2.75-5
Wellbeing		Leadership Impact Index	LTI	55%	57-61%	>70%
	Solid	Percentage of shareholders employee		37%	44-45%	>50%
	Governance & Ownership	Completion rate for compliance e-learnings promoting ethics and integrity		75%	90%

2020 – 2022 SUSTAINABILITY SCORECARD RESULTS

GOAL	KPI		BASELINE 2019	ACTUAL 2021	ACTUAL 2022	TARGET 2022
	Percentage of product families (cables) covered by carbon footprint		70%	89%	92%	85%
	Percentage of annual revenues from low carbon-enabling products		48%	44%	45%	48% to 50%
	Percentage reduction of GHG (Scope 1 and 2) vs baseline 2019	LTI	870 ktCO2	-22.1%	- 24%	-16% to -21%
	Percentage reduction of energy consumption vs baseline 2019		9845 TJ	-2.9%	-7.7%	-3%
	Percentage of plants certified ISO 14001		83%	90%	97%	95%
	Percentage of total waste recycled	LTI	63%	69%	70.8%	65%
	Percentage of drums (tons) reused annually		46%	50%	50%	Maintain
	Audits on supply chain sustainability risk		15	27	30	30
	Percentage of cables assessed under Prysmian internal Ecolabel criteria		0%	20.9%	37%	20%
	Employee Engagement Index (EI)		65%	60%	61%	67% to 70%
	Leadership Impact Index (LI)	LTI & MBO	57%	54%	55%	59% to 65%
	Percentage of women in executive positions	LTI	12%	13.5%	15.7%	14% to 18%
	Injuries Frequency Rate	MBO	IF: 1.32	1.55	1.40	IF: 1.2
	Injuries Severity Rate		IG: 41.83	47.19	53.46	IG: 41
	Percentage of white-collar women with permanent contracts	MBO	33%	39%	44.9%	40%
	Average hours of training per year per employee		26	18	29	30 hours

GROUP'S PRIORITIES

Solid Governance

Value Chain Downstream Waste Management Standardize Waste Source Recycled Material

Internal Waste Management

Reduce and Standardize Scrap

Management

THE SUSTAINABILITY ACADEMY

Long-lasting positive impact on the communities. Initiatives in Oman, Colombia,

Brazil and Thailand

Allow customers to choose the greener option

Design solutions fit for sustainability

Leverage on innovation to decarbonize our customer's operations

CLIMATE CHANGE AMBITION - Upgrade of our Targets

Prysmian has Near-Term-Targets approved by SBTi & awaiting approval for Net Zero ones

Our Commitment

• Decarbonize 90% of our Scope 1&2 carbon footprint by 2035 1
• phasing out SF⁶ emissions
• 100% renewable energy
• Decarbonize 90% of our Scope 3 carbon 2 footprint by 2050
• 3 Offset the remaining emissions

Our Performance on Scope 1&2

REDUCING OUR CUSTOMER'S CO2

Digitalizing the Supply Chain

Visibility over cable-related emissions & Optimization in the usage & transportation

First Eco Label in the Industry

6 measurable and recognized sustainability criteria in line with the EU Eco-label's

Recyclability of materials

Offering full recyclability and superior transmission performances

PryID

RFID technology to the full suite of critical information including cable type, length, origin

Digital Sales

A place for Prysmian's customers to market their leftovers & facilitates the reuse of short lengths

Cable Coating Technologies

Increased transmission efficiency, Sustainability boost, reduce costs, increased safety and resilience

Monitoring and Sensing

Preventing equipment failures and extend components' life

MV Splicing Robot

Working prototype by 2024

Appendix

A SOLID AND SUSTAINABLE FINANCIAL STRUCTURE

• Average debt maturity of 4.0 years after 120 €M new Cdp Loan drawn down on 15th Feb. 2023
• 1.0 €Bn of committed Revolving Credit Facility fully unutilized as of 31st December 2022
• Approx. 1.5 €Bn cash on balance as of 31st December 2022

CURRENT FINANCIAL DEBT MATURITY PROFILE(9)

SOUND GROWTH ACROSS BUSINESSES AND REGIONS

4Q/FY 2022 y-o-y org. growth excluding Projects segment

SALES AT STANDARD METAL PRICES

EMARKET DIR CERTIFIED

	Sales current			Sales standard
		Sales €M	Adj Ebitda €M	Adj Ebitda margin	Sales €M	Adj Ebitda €M	Adj Ebitda margin
	PROJECTS	2 161 ,	243	11 2%	2 117 ,	243	11 5%
FY	ENERGY	12 033 ,	974	8 1%	10 070 ,	974	9 7%
2022	TELECOM	1 873 ,	271	14 5%	1 792 ,	271	15 1%
	Total Group	16 067 ,	1 488 ,	9 3%	13 980 ,	1 488 ,	10 6%
	PROJECTS	1 594 ,	210	13 2%	1 561 ,	210	13 4%
FY	ENERGY	9 557 ,	546	5 7%	8 205 ,	546	6 7%
2021	TELECOM	1 585 ,	220	13 9%	1 519 ,	220	14 5%
	Total Group	12 736 ,	976	7 7%	11 285 ,	976	8 6%

2022 FINANCIAL HIGHLIGHTS Euro Millions, % on Sales

SUSTAINING LEADERSHIP IN THE PROJECTS BUSINESS

Matching installation capacity with increasing production capacity

A new cable-laying vessel ordered, similar to the recently Leonardo da Vinci vessel

Leonardo da Vinci cable-laying vessel

• The new vessel to CONSOLIDATE THE GROUP'S LEADERSHIP and boost the capability of submarine cable operations
• Equipped to carry out the deepest power cable installations of up to 3,000 METRES
• Improving environmental footprint, by replacing the oldest vessel Giulio Verne
• New vessel to enter into operations by beginning of 2025

Prysmian becomes the first in the industry to complete the Prequalification in August 2022

* Source: KEMA Labs

525kV HVDC 2GW SUBMARINE CABLE SYSTEM

• Prysmian reaches key milestone in the field of Power Grids for Energy Transition
• Breakthrough innovation in cable technology will enable 2GW transmission for large scale offshore wind deployment
• Successful development and testing of 525kV extruded submarine full cable system for HVDC applications
• Leveraged extensive knowledge of high performance materials and optimized a reliable industrial process
• Providing an entire system of cable and accessories with best dielectric properties including flexible factory joints, rigid repair joints and sea-land joints
• Prequalification testing carried per international standards and witnessed by a third-party certification body

PROJECTS Euro Millions, % on Sales

1,594 2,161 2021 2022 +30.3%* * Org. Growth. SALES Adj. EBITDA / % of Sales(10) SUBMARINE / Strong organic growth confirmed in Q4. Mix of sales and cost inflation diluting margins in 2022 / Tendering activity ongoing, with a solid pipeline of projects (interconnections and off-shore wind farms) / More than €3.4 billion of new orders in 2022. €1.8 Bn Ijmuiden offshore wind project awarded in 2023 UNDERGROUND HIGH VOLTAGE / Cables production for German Corridors progressing on track / Awarded extension of the Suedostlink project in Germany for approx. 700 €M HIGHLIGHTS ORDERS BACKLOG EVOLUTION (€M)

DEC '13 DEC '14 DEC '15 DEC '16 DEC '17 DEC '18 DEC '19 DEC '20 DEC '21 DEC' 22 Underground HV ~450 ~450 ~600 ~350 ~400 ~435 ~310 ~1,980 ~1,970 ~2,345 Submarine ~2,050 ~2,350 ~2,600 ~2,050 ~2,050 ~1,465 ~1,730 ~1,510 ~2,330 ~3,980 GROUP(4) ~2,560 ~2,900 ~3,300 ~2,430 ~2,480 ~1,900 ~2,070 ~3,550 ~4,440 ~6,600

ENERGY & INFRASTRUCTURE Euro Millions, % on Sales

* Org. Growth

TRADE & INSTALLERS

/ Excellent performance driven by secular trends and non-residential construction market / Solid demand and price management drives margins improvement

POWER DISTRIBUTION

/ Double digit organic growth across all regions

Adj. EBITDA / % of Sales(10) ADJ.EBITDA AND % SALES

INDUSTRIAL & NETWORK COMPONENTS Euro Millions, % on Sales

SPECIALTIES, OEM & RENEWABLES

/ Strong result in OEM & Renewables with a double-digit organic growth. / Overall good performances across all applications, in particular in Mining and Railway

ELEVATOR

/ Overall stable results, with positive performance in Americas and EMEA partially offset by APAC (China)

HIGHLIGHTS

AUTOMOTIVE

/ Recovery continued in Q4 with a positive organic growth across regions

Adj. EBITDA / % of Sales(10)

© Prysmian Group 2021 202334

TELECOM Euro Millions, % on Sales

© Prysmian Group 2021 202335

FINANCIAL HIGHLIGHTS Euro Millions

		Sales				Adj	EBITDA
		2022			2022			2021
	€M	organic growth	€M		€M	Adj EBITDA Margin	€M	Adj EBITDA Margin
PROJECTS	2 161 ,	30 3%	1 594 ,		243	11 2%	210	13 2%
Energy & Infrastructure	8 196 ,	14 7%	6 361 ,		736	9 0%	356	5 6%
Components Industrial & Network	3 442 ,	8 7%	2 838 ,		252	7 3%	196	6 9%
Other	395	0 0%	358		(14)	-3 5%	(6)	-1 8%
ENERGY	12 033 ,	12 3%	9 557 ,		974	8 1%	546	5 7%
TELECOM	1 873 ,	10 9%	1 585 ,		271	14 5%	220	13 9%
Total Group	16 067 ,	14 4%	12 736 ,		1 488 ,	9 3%	976	7 7%

PRYSMIAN GROUP AT A GLANCE 2022 Financial Results

PROJECTS 2022 sales breakdown

© Prysmian Group 2020 2023 38

ENERGY & INFRASTRUCTURE 2022 sales breakdown

SALES BREAKDOWN BY GEOGRAPHY

INDUSTRIAL & NETWORK COMPONENTS 2022 sales breakdown

© Prysmian Group 2020 40

TELECOM 2022 sales breakdown

SALES BREAKDOWN BY BUSINESS

SALES BREAKDOWN BY GEOGRAPHY

PROFIT AND LOSS STATEMENT Euro Millions

	2022	2021
SALES	16 067 ,	12 736 ,
YoY total growth	26 2%
YoY organic growth	14 4%
Adj EBITDA	1 488 ,	976
% sales on	9 3%	7% 7
of which share of income net	46	18
Adjustments	(101)	(49)
EBITDA	1 387 ,	927
% sales on	8 6%	7 3%
Adj EBIT	1 119 ,	647
% sales on	0% 7	1% 5
Adjustments	(101)	(49)
Non items monetary	(169)	(26)
EBIT	849	572
% sales on	5 3%	4 5%
Financial charges	(110)	(96)
EBT	739	476
Taxes	(230)	(166)
% EBT on	31 1%	34 9%
NET INCOME	509	310
Minorities	5	2
GROUP NET INCOME	504	308
% sales on	3 1%	2 4%

Adjustments and non monetary items on EBIT

	2022	2021
Non-recurring Items	(47)	(2)
Restructuring	(11)	(21)
Other Non-operating Income / (Expenses)	(43)	(26)
EBITDA adjustments	(101)	(49)
Non monetary items	(169)	(26)
Gain/(loss) on derivatives on commodities	(31)	13
Assets impairment	(34)	(6)
Share-based compensation	(104)	(33)
EBIT adjustments	(270)	(75)

© Prysmian Group 2021 42 2023

CASH FLOW STATEMENT Euro Millions

	31 Dec 2022	31 Dec 2021
Adj.EBITDA	1,488	976
Adjustments	(101)	(49)
EBITDA	1,387	927
Net Change in provisions & others	14	17
Share of income from investments in op.activities	(47)	(27)
Cash flow from operations (before WC changes)	1,354	917
Working Capital changes	(105)	(28)
Dividends received	10	8
Paid Income Taxes	(221)	(120)
Cash flow from operations	1,038	777
Acquisitions/Disposals	(7)	(93)
Net Operative CAPEX	(452)	(275)
Free Cash Flow (unlevered)	579	409
Financial charges	(71)	(79)
Free Cash Flow (levered)	508	330
Free Cash Flow (levered) excl. Acquisitions & Disposals	515	423
Dividends	(148)	(134)
Capital increase, Shares buy-back & other equity movements	-	1
Net Cash Flow	360	197
Net Financial Debt beginning of the period	(1,760)	(1,986)
Net cash flow	360	197
Equity component of Convertible Bond 2021	-	49
Partial Redemption of the 2017 Convertible Bond	-	(13)
Net Financial Debt from acquisition & disposals	-	8
NFD increase due to IFRS16	(58)	(63)
Other variations	41	48
Net Financial Debt end of the period	(1,417)	(1,760)

BRIDGE CONSOLIDATION SALES Euro Millions

NOTES

1) FCF excluding Acquisitions & Disposals and Antitrust impact;

• 2) GHG emissions reduction vs. 2019;
• 3) Share of recycled content on PE Jackets & Copper: Percentage on weight of the recycled content of the purchased amount of selected materials. The scope includes 1) all the copper purchased by the group excluding non-recurring suppliers and semifinished products, 2) the polyethylene used for sheathing purposes, excluding those applications where customers are not allowing secondary materials;
• 4) Total Backlog including SURF and Submarine Telecom
• 5) ROCE calculation:
• Adjusted Operating Income excluding Share of Net income
• Net Capital Employeed excluding:
• FV of Metals derivatives,
• Antitrust provisions,
• tax receivables/payables and deferred tax assets/liabilities,
• investment in associates
• 2018 Adjusted Operating Income redetermined for: Western link accrual impacts of 165M€ and for the difference between reported and full combined with GC for 74 M€;
• 6) The 2021 figures have been restated due to definition of the purchase price allocation for Omnisens and Eksa, conducted in accordance with the procedures and timing established by IFRS 3 - Business Combinations
• 7) Dividend Yield: Based on 2022 average price (€ 30.69)
• 8) TSR IPO: Based on closing prices as of 3 May 2007 31 Dec 2022
• 9) Current financial debt maturity profile (Excluding debt held by local affiliates and debt coming from IFRS 16 (89 €M and 206 €M respectively) at 31.12.2022):
• 2023: UNICREDIT TL (200 €M)
• 2024: CDP 2019 (100 €M); INTESA TL (150 €M); MEDIOBANCA TL (100 €M); EIB 2017 (110 €M)
• 2025: CDP 2021 (75 €M)
• 2029: EIB 2022 (135 €M); CDP 2023 (120 €M)
• 10) Adjusted excluding restructuring, non-operating income/expenses and non-recurring income / expenses

• 11) Defined as NWC excluding derivatives; % on annualized last quarter sales

• 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.

47

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