Prysmian S.p.a. Results at 31 December 2018

• Combined sales (including General Cable for full year 2018) at €11,524M with +2.8% organic growth
• Adjusted combined EBITDA (including General Cable for full year 2018) at €767M including WL Project provisions totalling €165M FY 2018
• Reported adjusted ebitda (including General Cable for the 7 months from June to December 2018) at 693M, of which €123M attributable to General Cable
• Net Financial Debt confirmed at €2,222m (€436M at 31/12/2017), including €2,601M attributable to the acquisition of General Cable
• FY19 Guidance confirmed, adjusted combined EBITDA expected to grow in the range of €950M-€1,020M
• FY 2019 Free Cash Flows forecast confirmed at €300M ±10% after payment of €90M restructuring costs
• Proposed dividend pay-out of €0.43 per share confirmed

WesternLink submarine interconnection

On 6 April 2019, a fault was detected on the WesternLink submarine interconnection that caused the Link to be out of operation. Investigation work located the fault, which took place during the commissioning tests, in the offshore portion of the cable. In light of this further issue and based on the technicians’ analysis, the Board of Directors decided to allocate a €70 million provision. The allocation takes into account the contractual penalties and the repair and ancillary costs associated with the issue which occurred on 6 April 2019, as well as additional repairs that might be necessary in the foreseeable future.  

 Compensation claims for anti-competitive damages

Between the end of March and the beginning of April 2019, some Group companies received compensation claims for damages by certain customers as a result of the European Commission’s decision dated April 2014 on alleged anti-competitive behaviours in the land and submarine HV cable market. Based also on the advice of its legal experts, the Board of Directors decided to allocate a €25 million provision.

Main consolidated financial results impacted by the aforementioned events and diverging from the results reported on 5 March 2019

• Group’s sales decreased by €53 million, wholly attributable to the Projects operating segment, due to the WesternLink project provisions. On the basis of this change, organic growth was 2.8% (compared to 3.3% reported on 5 March).
• Revenues of the Projects operating segment decreased by €53 million, with a +1.7% organic growth (compared to 4.7% reported on 5 March).
• Adjusted EBITDA decreased by €70 million, wholly attributable to the Projects operating segment, due to the WesternLink project provisions.
• EBITDA declined by €95 million, of which €70 million attributable to the WesternLink project provisions and €25 million to the provisions for anti-competitive issues.
• Net profit decreased by €72 million to €58 million as a consequence of the foregoing and taking into account the related tax effects.
• Net Capital Employed and equity decreased by €72 million.
• Net Financial Debt and free cash flow remained unchanged.

Net profit of the Parent Company Prysmian S.p.A. declined by €4 million to €96 million due to the effects arising from the Italian companies’ tax consolidation.

(*) The consolidated financial statements and draft separate financial statements are currently being audited; as of today’s date, audit is still underway.