MILAN - The Board of Directors of Prysmian S.p.A. approved today the Group's consolidated results for the first half of 20223

'The acceleration in recent months, after an excellent start to the year, has allowed us to record the best ever first half period, marked by robust sales growth and constantly improving profitability,' commented CEO Valerio Battista. 'The efficient management of operations and supply chain and our market and customer focus are confirmed as a strength, even in the uncertain macroeconomic scenario. Most of our markets of operation are highly exposed the energy transition and electrification long-term growth drivers.

Energy's positive performance is attributable to the strengthening and expansion of power grids, a trend that is only partly affected by economic cycles. The energy transition is already benefiting the Projects segment, which in the first half alone acquired orders exceeding EUR2.4 billion, bringing the visibility of total orders to over EUR10 billion. As regards Telecom, digitalisation passes through optical fibre, where our range of products has proved to be highly competitive. The excellent results achieved are supported by a sound and sustainable financial structure. The 1H record performances have led to a significant improvement of our FY expectations, with an upwards revision of 30% of our Adjusted EBITDA target,' added Battista.

Financial highlights

Group Sales amounted to EUR7,949 million, with a +12.5% organic change excluding Projects[ +14.3% including the Projects segment.], accelerating in 2Q, with sales organic growth at +13.5% compared to 2Q 2021. The Energy segment reported outstanding performance with a +13.6% organic growth; cables for Power Distribution grew sharply in 2Q, as did Renewables and OEM. Over 50% of the Energy product portfolio is linked to the structural energy transition and electrification drivers. Telecom's +6.6% organic growth was mostly driven by the positive performance of the optical cable market in North America. The Projects segment - land and submarine power interconnections and wind farm cables - continued to record improving sales (+28.4% organic growth). An even higher and more relevant contribution is expected from Projects in the second half of the year.

Adjusted EBITDA soared by +48.7% to EUR699 million, with the ratio to Sales improving to 8.8% (+9.4% ratio to sales at 2021 metal prices) compared to 7.8% in 1H 2021. 2Q saw an excellent acceleration when the Group achieved an Adjusted EBITDA of EUR411 million, with the crucial contribution of the Energy segment, which benefited from exposure to long-term trends linked to decarbonisation and electrification. Telecom profitability remained stable, whereas Projects' reported double-digit margins in 2Q, thanks to the positive progress of order execution. Our market and customer focus, our product portfolio management and the efficient management of operations and supply chain allow the Group to best grasp the opportunities generated by the current market phase.

EBITDA grew to EUR665 million (EUR444 million in 1H 2021) including net expenses for company reorganisation, net non-recurring expenses and other net non-operating expenses totalling EUR34 million (EUR26 million in the first six months of 2021).

Operating Income rose to EUR423 million compared to EUR278 million in 1H 2021, while Net Profit attributable to owners of the parent jumped to EUR259 million compared to EUR162 million in the same period of 2021.

The effective management of net working capital, despite the impact caused by the rise in raw material prices, led to a Free Cash Flow generation of EUR174 million in the past twelve months (excluding the EUR19 million cash out for acquisitions and an inflow of EUR57 million mainly due to settlement agreements reached with third-party counterparties).

Contact:

Lorenzo Caruso

Tel: +39 02 6449.1

Email: lorenzo.caruso@prysmiangroup.com

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