Results for the first nine months of 2021 recovered sharply

PRESS RELEASE

RESULTS FOR THE FIRST NINE MONTHS OF 2021 RECOVERED SHARPLY

RECORD ORDER BOOK AT €4 BILLION

ORDER INTAKE AT €2.3 BILLION YTD, WITH AN ACCELERATION IN THE USA

• SALES AT €9,294M, ORGANIC GROWTH AT +11.4%1 VS 9M 2020 (+1.5% VS 2019)
• TREND ACCELERATED IN Q3, WITH +13.2% ORGANIC GROWTH
• ADJUSTED EBITDA JUMPED TO €725M (+12.1%)
• ENERGY ADJ EBITDA SIGNIFICANTLY ABOVE 2019 PRE-PANDEMIC LEVELS
• GROUP'S NET PROFIT UP SOARED TO €255M (+82.1%)
• ACCELERATION TO NET ZERO: CO2 EMISSION TARGET INCREASED IN THE LTI PLAN
• CONFIDENT OF ACHIEVING HIGH-END OF THE FY2021 ADJ EBITDA RANGE (€920M-€970M)

Milan, 11/11/2021. The Board of Directors of Prysmian S.p.A. has approved today the Group's consolidated results for the first nine months of 2021.

"The results for the first nine months of 2021 confirmed we have returned to pre-pandemic levels," commented Chief Executive Officer Valerio Battista. "The recovery was positive across all businesses at a global level, with signs of further improvement in the third quarter. In particular, the Energy segment continued to show resilience and good recovery capacity. Telecom improved as well, driven by the demand recovery, chiefly in the USA, and by a better demand-supply balance in China. Projects resumed positive organic growth, with projections for a strong recovery in the fourth quarter. The strong organic sales growth was accompanied by a marked increase in Adjusted EBITDA and an improvement of margins, achieved also thanks to our customer focus and operating efficiencies that limited the impact of the increase in raw material prices and shipping costs. The recent mega projects in the United States have brought the total value of projects acquired year-to-date to €2.3 billion, confirming the leading role our Group is playing in the energy infrastructure development and upgrade plans. Although we confirm the prudence inherent in our management approach, I am confident we will be able to achieve the high end of the Adjusted EBITDA target range (€920 million-€970 million) set for FY 2021".

FINANCIAL RESULTS

Group Sales amounted to €9,294 million, showing a +11.4% organic change compared to the first nine months of 2020, excluding the Projects segment2, with a sharp recovery across all businesses and in almost all geographical areas. The sales growth trend was solid enough to also exceed pre-pandemic levels, with a +1.5% organic change compared to the first nine months of 2019. This trend was also confirmed by the acceleration reported in Q3 2021, when sales showed a +13.2% organic change compared to the same period of 2020. In particular, the Energy segment confirmed the resilience and growth potential it had shown in 2020. The Telecom segment also recovered, mainly driven by the demand for optical cables in the USA. The

1. Excluding the Projects segment.
2. +10.0% including the Projects segment.
   This press release is available on the company website at www.prysmiangroup.comand in the mechanism for the central storage of regulated information provided by Spafid Connect S.p.A. at www.emarketstorage.com

Projects segment was also back on a positive trend, reporting the first signs of recovery in Q3, with acceleration prospects for the fourth quarter fuelled by submarine project execution.

Adjusted EBITDA grew by 12.1% to €725 million. The operating efficiencies achieved, along with thorough price management, helped to offset the impact on profitability of cost inflation (raw materials and metals) and the exchange rate effect (negative by €19 million for the first nine months of 2021) on the result. The ratio of Adjusted EBITDA to sales was 7.8%, equivalent to 9.0% when considering the price of metals on a like- for-like basis compared with 2020, an increase compared to 8.6% of the previous year. In detail, the Adjusted EBITDA of the Energy segment exceeded pre-pandemic levels, confirming its crucial contribution to the Group's stability and growth potential.

EBITDA grew to €700 million (€601 million in the first nine months of 2020) including net expenses for company reorganisation, net non-recurring expenses and other net non-operating expenses totalling €25 million (€46 million in the first nine months of 2020). Operating Income jumped to €488 million compared to €294 million in the first nine months of 2020.

Net Profit attributable to owners of the parent rose by +82.1% to €255 million compared to €140 million for the same period of 2020.

In the past twelve months, the Group generated a Free Cash Flow of €282 million (excluding €80 million cash out for the dispute with antitrust authorities and €81 million relating to acquisitions). The increase in operating net working capital in the past twelve months remains limited, despite the strong negative impact of the increase in prices of metal and other raw materials.

The main factors that enabled the generation of the Free Cash Flow were:

• net operating cash flows (before changes in net working capital) amounting to €825 million;
• net cash flows generated by the €56 million increase in net working capital;
• net cash flows for payments related to restructuring amounting to €37 million;
• cash outflows for net investments amounting to €248 million;
• net finance costs paid amounting to €77 million;
• taxes paid amounting to €133 million.

Net Financial Debt at the end of September 2021 amounted to €2,663 million (€2,669 million at 30 September 2020)

CONSOLIDATED HIGHLIGHTS (in millions of Euro)

	9 months 2021	9 months 2020	Change %	% organic
				sales (*)
Sales	9,294	7,488	24.1%	11.4%
Adjusted EBITDA before share of net	712	632	12.7%
profit/(loss) of equity-accounted companies
Adjusted EBITDA	725	647	12.1%
EBITDA	700	601	16.5%
Adjusted operating income	483	401	20.4%
Operating income	448	294
Profit/(Loss) before taxes	379	215
Net profit/(loss) for the period	257	137
Net profit attributable to owners of the parent	255	140

*excluding Projects

This press release is available on the company website at www.prysmiangroup.comand in the mechanism for the central storage of regulated information provided by Spafid Connect S.p.A. at www.emarketstorage.com

(in millions of Euro)

	30 September	30 September	Change	31 December
	2021	2020		2020
Net fixed assets	5,160	5,035	125	4,971
Net working capital	1,443	1,260	183	523
Provisions and net deferred taxes	(565)	(689)	124	(579)
Net Capital Employed	6,038	5,606	432	4,915
Employee provisions	484	493	(9)	506
Shareholders' equity	2,891	2,444	447	2,423
of which: attributable to minority interest	171	171	-	164
Net financial debt	2,663	2,669	(6)	1,986
Total financing and equity	6,038	5,606	432	4,915

Challenges and opportunities posed by the energy transition and digitalisation

Network infrastructures for power transmission and distribution and broadband and ultra-broadband telecommunications play an essential role in the global decarbonisation process. The Green Deal in Europe and President Biden's Plan in the USA represent a strategic growth opportunity for Prysmian Group, with cable and optical fibre technologies able to satisfy the need for upgrading and developing network infrastructures. Forecasts call for significant growth in the demand for power transmission cables and systems, until reaching an average of over €7 billion projects a year in the 2020-2030 period, compared to an average of about €2.4 billion in the 2015-2019 period. In order to face the major technological and industrial challenges ahead and grasp the related opportunities, the Group is planning important investments (CAPEX) of up to €350 million on average a year from 2021 to 2025, to include building a new submarine cable plant in the USA. Technology innovation, supported by R&D costs of over €100 million a year, is a distinctive strength of Prysmian, which is committed to developing environmentally sustainable cable systems with higher transmission capacity and able to cover record distances and sea depths.

This press release is available on the company website at www.prysmiangroup.comand in the mechanism for the central storage of regulated information provided by Spafid Connect S.p.A. at www.emarketstorage.com

PROJECTS

• PROJECTS RESUMED GROWTH, WITH AN EXPECTED ACCELERATION IN Q4 THANKS TO THE SUBMARINE BUSINESS
• RECORD ORDER BOOK AT €4 BN. 2021 ORDER INTAKE AT €2.3 BN WITH IMPORTANT PROJECTS IN THE USA
• CABLE PRODUCTION FOR THE GERMAN CORRIDORS LAUNCHED IN Q3

Sales in the Projects segment amounted to €1,071 million, with a positive +1.3% organic change compared to the first nine months of 2020. Adjusted EBITDA was €124 million (€130 million for the first nine months of 2020), with a ratio to sales of 11.5% compared to 12.3% for the same period of 2020.

The positive organic growth in the Projects segment's was attributable to an initial recovery in the third quarter (+11.1% compared to the same period of the previous year), triggered by optimal execution of the main projects in portfolio, and a further acceleration is forecast as of the fourth quarter.

The key projects underway in the Submarine Power Cable business were: the Crete-Peloponnese region and Crete-Attica interconnection projects in Greece; the Viking Link (Great Britain-Denmark), which saw the new cable-laying vessel Leonardo da Vinci starting operations; and the Wind Offshore projects in France and Germany (Dolwin5).

The order intake amounted to €2.3 billion year-to-date, due to the acquisition of several major projects such as the mega land power cable SOO Green HVDC Link, the first of its kind in the USA; the Egypt-Saudi and Turkish Crossing submarine power cable links; and the cabling of the Sofia, Gode Wind Burkum & Riffgrund 3 and Grussian offshore wind farms. There was a further boost in recent weeks with the €630 million project for cabling the Coastal Virginia Offshore Wind Farm, the largest submarine cable project ever awarded in the USA. This project confirmed the Group's leadership in the US energy transition and supported by the Biden administration's plans.

At 30 September 2021, the order book exceeded €4 billion for the first time ever.

(in millions of Euro)

	9 months 2021	9 months 2020	Change %
Sales	1,071	1,056	1.4%
% organic sales change	1.3%
Adjusted EBITDA	124	130	-4.8%
% of sales	11.5%	12.3%

This press release is available on the company website at www.prysmiangroup.comand in the mechanism for the central storage of regulated information provided by Spafid Connect S.p.A. at www.emarketstorage.com

ENERGY

• SALES IMPROVED SHARPLY, EXCEEDING PRE-PANDEMIC LEVELS
• PROFITABILITY IMPROVEMENT (AT LFL 2020 METAL PRICES) DESPITE THE INCREASE IN RAW MATERIAL PRICES
• PROFITABILITY IMPROVEMENT AND STRONG VOLUME RECOVERY IN THE CONSTRUCTION CABLES SECTOR
• INDUSTRIAL: POSITIVE PERFORMANCE OF SPECIALTIES, OEM AND RENEWABLES; IMPROVEMENT OF AUTOMOTIVE

Sales of the Energy segment amounted to €7,019 million, with a +11.0% organic growth compared to the first nine months of 2020, further accelerating in Q3 (+13.9%) and exceeding pre-pandemic levels. Adjusted EBITDA improved markedly to €423 million (€355 million for the same period of 2020), driven by resumed volumes and the efficiencies achieved. The ratio of Adjusted EBITDA to sales was 6.0% (6.6% for the first nine months of 2020).

(in millions of Euro)

	9 months 2021	9 months 2020	Change %
Sales	7,019	5,385	30.3%
% organic sales change	11.0%
Adjusted EBITDA	423	355	19.2%
% of sales	6.0%	6.6%

Energy & Infrastructure

Energy & Infrastructure sales totalled €4,708 million for the first nine months of 2021, with a +12.3% organic change compared to the same period of 2020. Adjusted EBITDA rose to €269 million (€224 million for the same period of 2020) with stable margins (ratio of Adjusted EBITDA to sales at 5.7% for the first nine months of 2021 compared to 6.3% for the same period of 2020). The ratio of Adjusted EBITDA to sales valued based on the 2020 metal prices would have been 7.0%.

The positive organic change in the Trade & Installers market was due to higher volumes and price management, which allowed the Group to offset the effects of the increase in raw material prices and of shipping. In the construction cables market, performance varied across geographical areas, with a sharp recovery in the LATAM region, North America, South Europe and the United Kingdom. This positive trend continued in the third quarter as well.

The Power Distribution market returned to normal levels with a slightly positive organic change in the first nine months of 2021, following the slowdown recorded in the first two quarters of the year compared to the peak reached in 2020, which was driven by the North American onshore wind industry. Profitability declined marginally due to the negative effect of exchange rates and the product mix, mainly in North America.

Industrial & Network Components

Industrial & Network Componentssales amounted to €2,074 million, with a positive +9.2% organic change compared to the first nine months of 2020, markedly reversing the trend. Adjusted EBITDA was €150 million (€130 million for the first nine months of 2020), with good margin resilience. The ratio of Adjusted EBITDA to sales valued based on the 2020 metal prices would have been 8.1%, an improvement compared to 7.8% for the same period of the previous year.

The Specialties, OEM and Renewables segments performed well, particularly in the Infrastructure, Renewables and Mining markets. In the first nine months of 2021, the Automotive business reported a positive organic growth across all geographical areas, recovering in both its volumes and profitability, as seen in the fourth quarter of 2020. Network Components also showed a positive result, driven by the USA and Europe.

This press release is available on the company website at www.prysmiangroup.comand in the mechanism for the central storage of regulated information provided by Spafid Connect S.p.A. at www.emarketstorage.com